A put and call option agreement for use by a private limited company where the seller grants the buyer a call option over shares and the buyer grants the seller a put option over the same shares.
A Put and Call Option Agreement can be considered as an alternative to a standard sale contract in circumstances where the parties wish to delay the formation of the contract for stamp duty or tax reasons.
How do I create a Shareholder Agreement? Step 1: Provide details about the corporation. Step 2: Include details about the shareholders. Step 3: Provide details about share ownership. Step 4: Outline share information including class and number. Step 5: Determine how the corporation's directors will be appointed.
There are two main types of options: call options, which give the holder (buyer) the right to buy the underlying asset, and put options, which give the holder (buyer) the right to sell the underlying asset.
We have 5 steps. Step 1: Decide on the issues the agreement should cover. Step 2: Identify the interests of shareholders. Step 3: Identify shareholder value. Step 4: Identify who will make decisions - shareholders or directors. Step 5: Decide how voting power of shareholders should add up.