Sample Put and Call Option Agreement

A put and call option agreement is a financial contract between two parties, typically referred to as the option buyer and the option seller. This agreement outlines the terms under which one party has the right, but not the obligation, to buy or sell an underlying asset at a specified price within a defined period. Below is a detailed sample of such an agreement, including typical clauses and their implications.

1. Introduction This Put and Call Option Agreement (the "Agreement") is made and entered into as of [Date], by and between [Party A Name], a [Type of Entity] with its principal place of business at [Address] ("Option Seller"), and [Party B Name], a [Type of Entity] with its principal place of business at [Address] ("Option Buyer").

2. Definitions a. Option: Refers to the right granted under this Agreement to buy or sell the Underlying Asset. b. Underlying Asset: The asset that is the subject of the option, described as [Asset Description]. c. Exercise Price: The price at which the Underlying Asset may be bought or sold, set forth in this Agreement as [Price]. d. Option Period: The time frame during which the Option may be exercised, starting from [Start Date] and ending on [End Date].

3. Grant of Option a. Call Option: The Option Seller grants to the Option Buyer the right to purchase the Underlying Asset at the Exercise Price during the Option Period. b. Put Option: The Option Seller grants to the Option Buyer the right to sell the Underlying Asset at the Exercise Price during the Option Period.

4. Exercise of Option a. Call Option Exercise: To exercise the Call Option, the Option Buyer must provide written notice to the Option Seller at least [Number] days prior to the expiration of the Option Period, specifying the number of units of the Underlying Asset to be purchased. b. Put Option Exercise: To exercise the Put Option, the Option Buyer must provide written notice to the Option Seller at least [Number] days prior to the expiration of the Option Period, specifying the number of units of the Underlying Asset to be sold.

5. Settlement a. Call Option Settlement: Upon exercise of the Call Option, the Option Seller shall deliver the Underlying Asset to the Option Buyer against payment of the Exercise Price. b. Put Option Settlement: Upon exercise of the Put Option, the Option Seller shall purchase the Underlying Asset from the Option Buyer at the Exercise Price.

6. Representations and Warranties Each party represents and warrants to the other that: a. It has the power and authority to enter into this Agreement. b. This Agreement constitutes a valid and legally binding obligation of such party.

7. Covenants a. Option Seller Covenants: The Option Seller agrees to not encumber or dispose of the Underlying Asset during the Option Period. b. Option Buyer Covenants: The Option Buyer agrees to pay the Exercise Price in accordance with the terms of this Agreement.

8. Indemnification Each party agrees to indemnify and hold harmless the other from any claims, damages, or liabilities arising from a breach of this Agreement.

9. Governing Law This Agreement shall be governed by and construed in accordance with the laws of [State/Country].

10. Miscellaneous a. Amendments: This Agreement may only be amended in writing signed by both parties. b. Notices: Any notices required under this Agreement must be in writing and delivered to the addresses specified above.

IN WITNESS WHEREOF, the parties hereto have executed this Put and Call Option Agreement as of the day and year first above written.

[Party A Name] By: __________________________ Name: [Name] Title: [Title]

[Party B Name] By: __________________________ Name: [Name] Title: [Title]