This template put option agreement is a legally-binding agreement between two parties, the buyer and the seller, governing the terms of a put option. The put option binds two parties to an option to exchange an agreed quantity of assets, for example shares in a company, at a specified price, by a predetermined date, and this template also allows predefined criteria to be specified if necessary. The owner of the put option has the right, but not an obligation, to sell the predefined assets at the agreed price by the future date, while the buyer has the obligation to buy if the seller exercises the option.
A put option such as this is often used to hedge financial risk associated with securities such as shares in a company. This put option agreement template, which is downloadable instantly (no sign-up required), covers all standard put option terms and conditions, for example the put option period, the quantity and price of the assets or securities, and the consideration, as well as some additional clauses, for example the right to exercise parts of the put option over time (rather than in one transaction), the closing terms, and the warranties upon which the put option is being granted. The template put option is designed to be editable and expandable easily if you need to edit or add terms based on specific requirements.
Contents of the Put Option Agreement Template
- Title, date, parties, recitals
- Definitions and interpretation
- Put option particulars, including the granting of rights, consideration and price, quantity, an option to define specific conditions precedent, partial exercising, and closing terms
- Representations and warranties, for example a warranty that the seller will have the right to sell the shares, and that representations and warranties provided will be fulfilled down to the closing date
- Miscellaneous, for example methods of notice, statement of entire understanding, waiver, enforceability, and jurisdiction
FREE Sample of the Put Option Agreement Template
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