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Option to Buy Agreement - Shares

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Option to Buy Agreement - Shares Powered By Docstoc
					Reward a preferred buyer or lock in a great price with this Option to Buy Agreement for
Stock. This document sets out an option for the purchaser to purchase shares from the
vendor in the capital stock of the company for certain consideration. The option set forth
in the agreement is for a specific period of time where the purchaser will have the option
to purchase shares from the vender or such option will expire and the option offer to the
purchaser will become null and void. The terms and conditions of this document are
customizable to suit the user's situation. Use this when wanting to grant an individual
the option to buy shares in a company.
                       OPTION TO BUY AGREEMENT
      THIS OPTION TO BUY AGREEMENT (the “Agreement”) made this ____ day of
_______, 2_____ (the “Effective Date”) among _________________ (the “Vendor”),
___________ (the “Purchaser”) and ______________ (the “Company”).

       WHEREAS the Vendor is desirous to sell to the Purchaser and the Purchaser is desirous
to purchase from the Vendor certain shares in the capital stock of the Company owned by the
Vendor at the Effective Date pursuant to the terms and conditions contained herein.

        NOW THEREFORE in consideration of the mutual promises and covenants contained
herein and the payment of _______ ($______) Dollar by each of the parties hereto, and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto hereby acknowledge and agree as follows:

1.00   DEFINITIONS

1.01 In this Agreement, unless otherwise stated, the following words and expressions shall
have the following meanings ascribed to them:

       (i)     “Closing Date” shall mean the day which is ______ (___) days following the
               delivery of the Option Notice by the Purchaser;

       (ii)    “Option” shall mean the option offered to the Purchaser contained in this
               Agreement;

       (iii)   “Option Notice” shall mean a notice delivered by the Purchaser to the Vendor
               and the Company indicating that the Purchaser is exercising its/his/her Option;

       (iv)    “Purchase Price” shall mean the sum of __________ ($________) Dollars;

       (v)     “Shares” shall mean __________ (___) issued and outstanding ________ shares
               owned by the Vendor in the capital stock of the Company; and

       (vi)    “Termination Date” shall mean the ___ day of ______, 2_____.

1.02 The headings used in this Agreement are for convenience of reference only, and shall not
affect the interpretation of this Agreement.

1.03   Unless otherwise stated herein, all money amounts shall be in _______ dollars.
2.00    PURCHASER’S OPTION

2.01 The Vendor hereby grants to the Purchaser the option (the “Option”) to purchase the Shares
owned by the Vendor at the Effective Date, at the Purchase Price set forth herein.

2.02 The Purchaser may choose to exercise the Option granted to it/him/her by the Vendor in
whole at any time up to and including the Termination Date in respect of the Shares, provided that
the Purchaser has provided an Option Notice to the Vendor indicating the Purchaser’s desire to
exercise the Option in the form annexed hereto as Schedule “A”.

2.03 At the time the Purchaser delivers the Option Notice to the Vendor in respect of the Shares,
the Purchaser shall also deliver to the Vendor or the Vendor’s attorney, a certified check or bank
draft representing no less than _______ (__%) (the “Deposit”) of the Purchase Price payable for the
Shares. The Deposit paid to the Vendor or the Vendor’s attorney by the Purchaser shall be applied
against the balance owing to the Vendor for the Shares.

3.00    PAYMENT OF PURCHASE PRICE

3.01 On the Closing Date, the Purchaser shall deliver to the Vendor or the Vendor’s attorney, the
balance of the Purchase Price by way of certified check, bank draft, wir
				
DOCUMENT INFO
Description: Reward a preferred buyer or lock in a great price with this Option to Buy Agreement for Stock. This document sets out an option for the purchaser to purchase shares from the vendor in the capital stock of the company for certain consideration. The option set forth in the agreement is for a specific period of time where the purchaser will have the option to purchase shares from the vender or such option will expire and the option offer to the purchaser will become null and void. The terms and conditions of this document are customizable to suit the user's situation. Use this when wanting to grant an individual the option to buy shares in a company.
This document is also part of a package Stock & Equity Planning Starter Kit 14 Documents Included