Option to Purchase
_____________, referred
to as SELLER, and _______________, referred to as OPTION HOLDER, agree:
In consideration of
$____ (_______________&___/100 dollars), paid by OPTION HOLDER to SELLER,
the receipt of which is acknowledged, the SELLER grants to OPTION HOLDER, the
exclusive option to acquire the following business: ___________, located at
__________________ for a period of ________ months.
Should the OPTION
HOLDER exercise the option, the following assets will be conveyed to OPTION
HOLDER by SELLER:
business located at
above address, with all inventory and trade names.
OPTION HOLDER may
exercise the option by written notice to SELLER, specifying a date for closing
which shall be no more than _______ after the notice of intention to exercise.
The option price shall
be $ ___ (____________________ & ___/100 dollars) payable as follows:
_______________________________________________________________
If, prior to exercise
of the option, or during the period between notice of intention to close and
closing, any part of the business shall be destroyed or damaged by fire, theft
or other peril, the option price shall be reduced in a sum sufficient to
compensate OPTION HOLDER for the loss. In the event that there are insurance
proceeds to reconstruct the loss and provide for business interruption loss,
and SELLER assigns the same to OPTION HOLDER, or SELLER reconstructs the same
prior to closing, no abatement of purchase price shall occur.
During the term of the
option, the SELLER shall carry on the business in the usual and ordinary manner
up to and including the closing date of the sale, and will not enter into any
agreements not in the ordinary course of its business. Further, SELLER shall
not enter into any unusual agreements or make unusual commitments affecting the
operation of the business, without prior approval of OPTION HOLDER.
In no event shall
OPTION HOLDER cancel, alter or amend its obligations under the following
agreements, nor shall it fail to perform the obligations related to the
following agreements:
If OPTION HOLDER
exercises its right to purchase, then ____ per cent of the option price shall
be applied towards the purchase price.
The parties have
negotiated this agreement between themselves, and there are no brokers or
agents entitled to compensation. In the event that any brokers or agents seek
compensation herein, the parties shall each indemnify the other from any
damage, expense including counsel fees, which either may suffer as a result of
the claim of a broker or agent, and the party who is determined to have
breached this representation shall be responsible for payment of indemnity and
the obligation to the broker or other agent.
This writing accurately
sets forth the agreement between the parties and this agreement may only be
amended in writing signed by both parties.
Dated:
________________________
_____________________________________________________
Seller
_____________________________________________________
Option Holder
Option to Purchase
Review List
This review list is provided to inform you about this
document in question and assist you in its preparation. Option agreements are standard in many areas
of business. Adapt this one to your
purposes.
1.
Make
multiple copies. Give one to each
signatory. Keep one in the relevant
transaction file.
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