Put Option Agreement: shares

When do I use this document?

• for the grant of a put option over shares in a private limited company
• where the agreement does not include a corresponding call option

What are the key features?

• 24 clauses over 14 pages
• grant of the put option, with related definitions of option shares, exercise conditions and exercise period
• put option exercise and form of exercise notice
• mechanics for sale and purchase of option shares
• warranties and undertakings from the seller

What else do I need to know?

The principal matters which the parties to a put option agreement will need to negotiate include:

• option shares: the number of option shares
• exercise conditions: whether the put option exercise is subject to satisfaction of any pre-conditions
• exercise period: the time period during which the seller may exercise the put option
• exercise price: the price payable for the shares

Guidance that comes with this template will help you negotiate these matters.

What other docs are available?

For alternative option agreements over shares, see:

• Call Option Agreement – shares
• Put and Call Option Agreement – shares