(This is a general framework for an agreement for an option to purchase stock not purchased on a stock exchange.)
OPTION TO PURCHASE STOCK
[Name], referred to as OWNER, and [Name], referred to as OPTION HOLDER, in consideration of $------ (& no/100 dollars) paid by OPTION HOLDER to OWNER agree:
OWNER grants to OPTION HOLDER the right to purchase 500 shares of common stock of [Name], Inc., referred to as ISSUER at a purchase price of $------ (& no/100 dollars) per share, on or before _______, 20 _. In the event that a stock dividend, split or other recapitalization takes place prior to the exercise of the option, the purchase price per share shall be adjusted to the equivalent amount, and the number of shares adjusted to the same number of shares.
Prior to the shares being delivered, the OPTION HOLDER shall execute the shareholder's agreement dated ________, 20 _.
The shares to be conveyed herein are not registered with the United States Securities and Exchange Commission, nor that of any other state.
OPTION HOLDER shall be required prior to delivery of the shares to certify that the shares are not being purchased for resale and that OPTION HOLDER's purchase shall not result in the necessity of the registration of the securities. OPTION HOLDER shall be required to comply with any other restrictions which may be now, or in the future, set by ISSUER.
OPTION HOLDER shall not be entitled to a refund should it be unable to purchase the shares, and prior to the execution of this agreement, OPTION HOLDER should confirm its eligibility to purchase through ISSUER.