Option to Purchase Stock


OPTION TO PURCHASE STOCK

     THIS OPTION IS ENTERED INTO ON THE    __   day of       _______    , 20  __    by and between            ______                  , hereafter “      ____                “, and                  ______________     , hereafter “           ____           “, on the terms and for the purposes hereafter set forth.

     Whereas,                  ________     is the owner of          __   per cent (     __   %) of the issued and outstanding shares of           __                                _____       corporation, hereafter “the corporation”, and            ___________      is the owner of       ______   per cent (    ___ %) of the issued and outstanding shares in the corporation, and 

    Whereas,               _______        desires to purchase the shares held by            _________          and                ________       desires to sell said shares to                 _____     on theterms provided for herein.

     THEREFORE, FOR AND IN CONSIDERATION OF TEN DOLLARS ($10.00) and other good and valuable consideration the undersigned                       __________      does hereby grant and convey unto _______                     an irrevocable option to purchase all of the shares of the corporation owned by         ________            on the following terms:

     1.   PURCHASE PRICE:  the purchase price of said shares shall be One Million Dollars ($1,000,000.00) plus an amount equal to twenty per cent (20%) of the undistributed earnings of the corporation as of the sale date which are taxable to __________                      .

  1. SALE DATE:  this option is exercisable at any time from the date hereof until                       effects a sale of the corporation or its assets to third parties. _________                          may exercise this option by giving           ________             three (3) days notice of the sale date to be determined by                             .  At closing      _______                        shall deliver said shares to                          in exchange for the Purhase Price.
  2. CONDITION PRECEDENT:  In no event shall __________                      be obligated to sell said shares on the terms hereof unless simultaneous with the sale of said shares the corporation pays in full the corporation’s outstanding promissory note held by                       plus all accrued interest.

Upon payment of said note         _____________             agrees to release all security interests in the collateral securing said note including the assets of the corporation and the shares owned by                _____________       .

  1. COOPERATION IN SALE:        ______________                agrees during the term of this option to vote his shares and the shares of             ___________         pledged to      ___________                 in a manner consistent with                      ‘s desires to sell the corporation or its assets.  However, in no event shall such sale require              __________         to make or provide the purchaser with any representations, warranties or indemnifications.
  2. NOTICE:  Notice to         __________             of intent to exercise this option shall be deemed given if given personally to         _____________                     in writing or three (3) days after deposit of written notice in the U. S. Mail postage prepaid, certified, return receipt requested  addressed to       ___________ ___ at _______________     .

     IN WITNESS WHEREOF THE PARTIES HAVE EXECUTED THIS OPTION ON THE DATE FIRST MENTIONED.

 

 _________________________                          _______________________

 

_________________________                           _______________________

 

STATE OF        __________________

COUNTY OF       ________________

 

     PERSONALLY appeared before me, the undersigned authority in and for the county and state aforesaid, the within named _________________     , who acknowledged to me that he signed and delivered the above and foregoing instrument on the date and year therein mentioned.

GIVEN under my hand and official seal, this the    ___  day of             ____       , 20   ___  .

                       _______________________

NOTARY PUBLIC

MY COMMISSION EXPIRES:

                  ________________________

 

STATE OF               ____________________      

COUNTY OF         _______________________

 

     PERSONALLY appeared before me, the undersigned authority in and for the county and state aforesaid, the within named ___________                      , who acknowledged to me that he signed and delivered the above and foregoing instrument on the date and year therein mentioned.

     GIVEN under my hand and official seal, this the   __    day of            ___        , 20  ___   .

                     ____________________  

NOTARY PUBLIC

MY COMMISSION EXPIRES:

                 _____________________ 

 

State Specific Option Forms

–For State Specific Option Forms you can download in Word format, go to

http://www.uslegalforms.com/options/