Louisiana Stock Option Agreement

State:
Multi-State
Control #:
US-CC-18-379C
Format:
Word; 
Rich Text
Instant download

Description

This sample form, a detailed Stock Option Agreement document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.
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FAQ

Before options can be written, a stock must be properly registered, have a sufficient number of shares, be held by enough shareholders, have sufficient volume, and be priced high enough. The specifics of these rules can change, but the general idea is to protect investors.

An option contract is a promise to keep an offer open for another party to accept within a period of time. With an option contract, the offeror is not permitted to revoke the offer within the stated period of time. Most option contracts require consideration and other contract formalities in order to be enforceable.

Now, as with any contract, consideration, or an exchange of something of value, is necessary for the contract to be enforceable. This means that the buyer must give the seller a deposit, or a small amount of money, to secure the sale. Sometimes this is called earnest money.

Holders of share purchase rights may or may not buy an agreed number of shares of stock at a pre-determined price, but only if they are an existing stockholder. Options, on the other hand, are the right to buy or sell stocks at a pre-set price called the strike price.

These options, which are contracts, give an employee the right to buy, or exercise, a set number of shares of the company stock at a preset price, also known as the grant price. This offer doesn't last forever, though. You have a set amount of time to exercise your options before they expire.

In option trading, there are three different things that could happen once you are long a contract. You can go to the marketplace and sell to close your position, let your contract go to expiration, or you can exercise your contract.

An option is a contract giving the buyer the right?but not the obligation?to buy (in the case of a call) or sell (in the case of a put) the underlying asset at a specific price on or before a certain date. People use options for income, to speculate, and to hedge risk.

An options contract is an agreement between two parties to facilitate a potential transaction on an underlying security at a preset price, referred to as the strike price, prior to or on the expiration date.

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Louisiana Stock Option Agreement