Put option agreements are usually used in risk management strategies to ensure losses on said assets don’t exceed a large amount. Put options may be used to speculate on downside price action or for hedging purposes. If the stock or investment results in a downside, the investor can sell their stock at the strike price.
This Put Option Agreement, hereby known as the “Agreement,” is made this (month) (date), (year), hereby known as the “Effective Date,” by and between [Sender.FirstName] [Sender.LastName] of [Sender.Company] , hereby known as the “Company” and [Shareholder.FirstName] [Shareholder.LastName] (of [Shareholder.Company] ), hereby known as the “Shareholder” and collectively known as “Parties.”
WHEREAS, the Company agrees to grant the Shareholder a put option to sell to the Company all or a portion of the (assets in written form “three hundred”) (number of assets in numerical form “300”) previously-issued shares of (asset), hereby known as “Put Assets” owned by the Shareholder, pursuant to the terms and conditions set forth herein.
NOW, THEREFORE, it is agreed as follows: