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LSDefine

Simple English definitions for legal terms

option agreement

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A quick definition of option agreement:

An option agreement is a type of contract that restricts a shareholder from selling their shares until a specific event occurs. This contract obligates the shareholder to sell their shares at a predetermined price, but it does not require the corporation or other shareholders to buy those shares. It is similar to a buy-sell agreement, but with the added option for the shareholder to sell their shares at a fixed price.

A more thorough explanation:

An option agreement is a legal contract that restricts a shareholder from selling their shares to anyone else except for a specific buyer at a predetermined price. This agreement is usually made between the shareholder and the corporation or other shareholders.

For example, let's say John owns 50% of a company and wants to sell his shares. The other shareholders, however, want to maintain control of the company and do not want John to sell his shares to an outsider. They can enter into an option agreement that gives them the right to buy John's shares at a fixed price if he decides to sell.

Another example is when a company wants to acquire another company. They can enter into an option agreement with the shareholders of the target company, giving them the right to buy their shares at a fixed price if the acquisition goes through.

Option agreements are commonly used in business to protect the interests of shareholders and ensure the stability of the company's ownership structure.

opt in | optional completeness, rule of

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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