Option and Purchase Agreement: Definition, Terms, Example
Jump to Section
Quick Facts — Option And Purchase Agreement Lawyers
- Avg cost to draft a Purchase Agreement: $850.00
- Avg cost to review a Purchase Agreement: $670.00
- Lawyers available: 245 financial lawyers
- Clients helped: 520 recent option and purchase agreement projects
- Avg lawyer rating: 4.92 (68 reviews)
What is an Option And Purchase Agreement?
An option and purchase agreement is a contract between a company and an individual that wishes to purchase stock options in the company. The contract states who each party is, how many options they intend to purchase, and what the monetary value of each option it. It also outlines when the stock options can be exercised and what terms and conditions must be met in order for a shareholder to exercise their stock options.
The purpose of an option and purchase agreement is to ensure that companies and shareholders mutually agree on the terms and conditions that govern their relationship.
Common Sections in Option And Purchase Agreements
Below is a list of common sections included in Option And Purchase Agreements. These sections are linked to the below sample agreement for you to explore.
Option And Purchase Agreement Sample
EXHIBIT 10.1
OPTION AND PURCHASE AGREEMENT
THIS AGREEMENT, effective as of June 28 th, 2017, is made by and between Thomas Archer (“Producer”) and Regnum Corp. (“Owner”) concerning the rights to a Screenplay entitled “Hot Sands” and the materials upon which it is based. The following terms and conditions shall apply:
1. DEFINITION OF “WORK”: For purposes of this Agreement, “Work” means the Screenplay entitled “Hot Sands” owned by Regnum Corp. and any and all other literary materials, titles, themes, formats, formulas, incidents, action, story, dialogue, ideas, plots, phrases, slogans, catchwords, art, designs, compositions, sketches, drawings, characters, characterizations, names, and trademarks now contained therein, as well as such elements as may at any time hereafter be added or incorporated therein, and all versions thereof in any form.
2. GRANT OF OPTION: In consideration of the mutual promises contained herein, and the payment to Owner of $2,500.00 (the “Option Price”), which shall be applicable against the Purchase Price, Owner hereby grants to Producer the exclusive, irrevocable right and option (the “Option”) for 12 months (the “Option Period”) to acquire the exclusive motion picture, television, videocassette, and all subsidiary, allied, and ancillary rights in and to the Work pursuant to the terms set forth below.
3. EXTENSION OF OPTION :
|
|
(a) | Producer shall have the right to extend the Option Period for one (1) period of 12 months for $2,500.00 which shall be non-applicable against the Purchase Price. For the right to the extension of the first Option Period there must be one of the following: |
|
|
(i) | letter of commitment to direct from a director; |
|
|
|
|
|
|
(ii) | the project is set up at a company or studio able to fund the project; |
|
|
|
|
|
|
(iii) | substantial negotiations in progress for complete financing of the film; |
|
|
|
|
|
|
(iv) | letter of commitment to act in the film from one actor; or |
|
|
|
|
|
|
(v) | a full-length feature-film script has been completed. |
|
|
(b) |
Producer shall have the right to extend the Option Period for one (1) additional 12 month period for $2,500.00 which shall be non-applicable against the Purchase Price. In order to have a right to a second extension, Producer must secure at least two (2) of the above five (5) items. |
| 1 |
|
|
4. EXERCISE OF OPTION: Producer may exercise this Option at any time during the Option Period, as it may be extended, by giving written notice of such exercise to Owner and delivery to Owner of the minimum Purchase Price as set forth below. In the event Producer does not exercise said Option during the period as it may be extended, this Agreement shall be of no further force or effect whatsoever. All rights granted hereunder become property of Owner.
5. PENDING EXERCISE OF OPTION: Producer shall have the right to engage in all customary development and pre-production activities during the Option Period as it may be extended.
6. GRANT OF RIGHTS: Effective upon Producer’s exercise of the Option, Owner hereby exclusively sells, grants and assigns to Producer, Producer’s successors, licenses and assigns all rights in and to the Work, throughout the universe, in perpetuity, in any and all media and by any means now known or hereafter devised, including, without limitation, all forms of theatrical and non-theatrical distribution and exhibition (including without limitation, free broadcast, pay television, cable, subscription, pay-per-view, video-on-demand, DVD and Internet), including without limitation the following: all motion picture rights, including the right to make remakes, new versions or adaptations of the Work or any part thereof; to make series and serials of the Work or any part thereof; the right, for advertising and publicity purposes only, to prepare, broadcast, exhibit and publish in any form or media, any synopses, excerpts, novelizations, serializations, dramatizations, summaries and stories of the Work, or any part thereof; and all rights of every kind and character whatsoever in and to the Work and all the characters and elements contained therein.
7. PURCHASE PRICE: As consideration for all rights and property herein granted, and all warranties and covenants herein made by Owner, Producer agrees to pay Owner the following sums not later than the commencement of principal photography of a production:
|
|
(a) | $32,500. if the final budget for the motion picture (less contingencies, financing costs, and bank fees) based on the Work does not exceed two million dollars ($2,000,000), less any moneys paid as option exercise money and less the option payment for the initial period; |
|
|
|
|
|
|
(b) | If the final budget exceeds two million dollars ($2,000,000), one percent (1%) of the final budget for the motion picture (less contingencies, financing costs, and bank fees) based on the Work less any amounts paid for option exercise; however, in no event shall the amount of such payment exceed fifty-thousand dollars ($50,000). |
8. CREDITS:
|
|
(a) | In the event a motion picture based substantially on the Work is produced hereunder, Owner shall receive credit. |
|
|
|
|
|
|
(b) |
Such credit shall be accorded on a single card in the main titles on all positive prints of the picture and in all paid advertising in which the director has received credit, subject to Producer’s and any distributor’s usual and customary exclusions. All other matters regarding prominence, placement, size, style and color of said credits shall be in Producer’s sole discretion. Nothing herein shall be construed to prevent so-called award or congratulatory or other similar advertising with respect to the material or Picture which omits the name of the Writer. |
| 2 |
|
|
9. NO OBLIGATION TO PRODUCE : While Producer shall use best efforts to effect a production hereunder, nothing herein shall be construed to obligate Producer to produce, distribute, release, perform or exhibit a film based upon the Work, in whole or in part, or otherwise to exercise, exploit or make any use of the rights, license, privileges or property gained herein to Producer.
10. REPRESENTATIONS AND WARRANTIES :
|
|
(a) | The Work itself is original with Owner and no part of the Work is in the public domain other than the extent to which historical facts are, by their nature, in the public domain; |
|
|
|
|
|
|
(b) | Owner has the right, authority and legal capacity to grant the rights granted to Producer herein; |
|
|
|
|
|
|
(c) | The work is not subject to any claim, arbitration, mediation, or litigation; |
|
|
|
|
|
|
(d) | The Work does not, and no use thereof will, infringe upon or violate any personal, proprietary or other right of any third party, including, without limitation, defamation, libel, slander or violation of any right of privacy or publicity or any copyright in underlying material; and |
|
|
|
|
|
|
(e) | Owner shall not exploit the Work in a manner inconsistent with the terms of this Agreement, specifically, to not sell, license, exploit or transfer any rights in the Work. |
11. REMEDIES: Owner recognizes and confirms that in the event of a failure or omission by Producer constituting a breach of its obligations under this Agreement, whether or not material, the damage, if any, caused Owner is not irreparable or sufficient to entitle Owner to injunctive or other equitable relief. Consequently, Owner’s rights and remedies shall be limited to the right, if any, to obtain damages at law and Owner shall not have any right in such event to terminate or rescind this Agreement or any of the rights granted to Producer hereunder or to enjoin or restrain the development, production, advertising, promotion, distribution, exhibition or exploitation of the Picture and/or any of Producer’s rights pursuant to this Agreement.
12. MISCELLANEOUS :
|
|
(a) | Arbitration. Disputes under this Agreement shall be settled pursuant to binding arbitration under the rules of the Independent Film and Television Alliance (“IFTA”) in California. The prevailing party will be entitled to reasonable attorney fees and costs. |
| 3 |
|
|
|
|
(b) | Indemnification. Owner shall indemnify and defend Producer from and against any and all claims and damages arising from the breach of any representation or warranty of Owner hereunder to the extent such claim or damage does not arise out of a breach by Producer hereunder. Producer shall indemnify and defend Owner from and against any and all claims and damages arising from the production, distribution, exhibition or exploitation of the Picture, or any element thereof, to the extent such claim or damage does not arise out of a breach by Owner hereunder. |
|
|
|
|
|
|
(c) | Accounting. Producer agrees to keep and maintain complete and accurate books and records relating to the Picture and the proceeds derived therefrom. |
|
|
|
|
|
|
(d) | Assignment. Owner may not assign its rights or obligations hereunder. Producer may freely assign its rights and obligations hereunder. |
|
|
|
|
|
|
(e) | Choice of Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada. |
|
|
|
|
|
|
(f) | Notices. All notices under this Agreement shall be in writing and may be served by facsimile or electronic mail. The date of receipt by facsimile or electronic mail, as the case may be, shall be the date of service of notice. |
|
|
|
|
|
|
(g) | This agreement may be signed in counterparts. Facsimile and scanned copies shall be deemed originals for all purposes. |
|
|
|
|
|
|
(h) | This Agreement constitutes the entire agreement between the parties hereto with respect to all of the matters herein and its execution has not been induced by, nor do any of the parties hereto rely upon or regard as material, any representations or writing whatsoever not incorporated herein and made a part hereof. No amendment or modification hereto shall be valid unless set forth in a writing signed by both parties. | <
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.
| PRODUCER | OWNER | |||
|
|
|
|
|
|
| /s/ Thomas Archer | /s/ Tiffani Jones | |||
|
Thomas Archer |
Regnum Corp |
|
4 |
Reference:
Security Exchange Commission - Edgar Database, EX-10.1 3 regnum_ex101.htm OPTION AND PURCHASE AGREEMENT, Viewed March 7, 2023, View Source on SEC.
Who Helps With Option And Purchase Agreements?
Lawyers with backgrounds working on option and purchase agreements work with clients to help. Do you need help with an option and purchase agreement?
Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate option and purchase agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.
See Real Purchase Agreement Projects
California Company I hold a small portion of stock in is being bought out and I have been advised to have a lawyer review the purchase contract. Review
- California
- 5 lawyer bids
- $1 - $1,000
California Hair Salon and Spa Purchase Agreement Review
- California
- 4 lawyer bids
- $500 - $1,595
California Need a purchase sale agreement for a buyout of a manufacturing company and real estate located in Erie PA Drafting
- California
- 9 lawyer bids
- $450 - $2,500
See all Purchase Agreement projects
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Need help with an Option And Purchase Agreement?
Meet some of our Option And Purchase Agreement Lawyers
Michael K.
A business-oriented, proactive, and problem-solving corporate lawyer with in-house counsel experience, ensuring the legality of commercial transactions and contracts. Michael is adept in reviewing, drafting, negotiating, and generally overseeing policies, procedures, handbooks, corporate documents, and more importantly, contracts. He has a proven track record of helping lead domestic and international companies by ensuring they are functioning in complete compliance with local and international rules and regulations.
"Michael was an absolute pleasure to work with. He explained everything thoroughly and in a way a non-lawyer can understand, answered all my questions and gave sound legal advice. I would definitely be working with Michael in the future for all of my legal needs. Thank you Michael!"
Tiffany O.
Tiffany received her Juris Doctorate from the J. Reuben Clark Law School, Magna Cum Laude. She is admitted to the Utah State Bar and the New Mexico State Bar. She practices in the areas of real estate, general business, business formation, employment agreements, and civil litigation.
"Overall great experience, Tiffany was very easy to work with even though we are in different time zones."
Anna C.
I am a business attorney focused on practical, efficient contract drafting, review, and negotiation for healthcare organizations and growth-stage and established businesses. My work includes commercial agreements such as NDAs, MSAs/SOWs, leases, vendor and services agreements, SaaS, and employment and severance agreements. I partner closely with clients to identify key legal and business risks, deliver clear, business-minded redlines with concise issue summaries, and keep transactions moving. Clients value my responsive turnaround, judgment, and ability to balance risk with commercial objectives.
"Anna's work is exceptional. I am very pleased with all of the documents that she prepared for my business. Thanks so much Anna!"
Fabian G.
Fabian Garcia Villanueva is the Managing Attorney and Founder of GV Law PLLC, a premier boutique law firm delivering Big Law level representation to clients across corporate, transactional, and regulatory matters. At GV Law, Mr. Garcia leads a multidisciplinary team that advises business owners, investors, and professionals on complex transactions, strategic growth initiatives, and compliance across multiple sectors including healthcare, finance, real estate, technology, and international business. The firm handles everything from business formations and cross-border transactions to mergers and acquisitions, private offerings, commercial agreements, and ongoing legal operations support. Known for precision, strategic thinking, and relentless attention to detail, Mr. Garcia brings the rigor of top-tier law firms into a modern, agile practice. GV Law’s clients include emerging ventures, established corporations, and high-net-worth individuals seeking first-class legal partnership built on trust, efficiency, and results.
"Good work, on time, good communications - very smooth process."
Paul S.
I focus my practice on startups and small to mid-size businesses, because they have unique needs that mid-size and large law firms aren't well-equipped to service. In addition to practicing law, I have started and run other businesses, and have an MBA in marketing from Indiana University. I combine my business experience with my legal expertise, to provide practical advice to my clients. I am licensed in Ohio and California, and I leverage the latest in technology to provide top quality legal services to a nationwide client-base. This enables me to serve my clients in a cost-effective manner that doesn't skimp on personal service.
"Was my great pleasure working with Paul. He is very knowledgeable about startups/companies, professional, wise, and supportive. I would highly recommend him."
Christina S.
I am an attorney who has been practicing for over a decade, experienced in multiple areas of law, both from a litigation and more procedural side. The great thing about my practice is that it has trained me to deal with so many different types of problems and to find solutions in a variety of legal scenarios that are almost never similar.
"Christina was prompt and friendly and walked me through the steps I needed to take to file for my name change! She made the process much less intimidating and I highly recommend her services."
November 2, 2022
Maigan W.
Maigan is a registered nurse and attorney with tech, start-up, and blockchain legal experience. Maigan acted as general counsel for a software-as-a-service company for three years. Maigan has a unique understanding of crypto and smart contracts. As a registered nurse, Maigan is in a unique position to understand health law issues and graduated with a concentration in health law distinction. Maigan is happy to help you create a business entity, draft and negotiate contracts and agreements, apply for trademarks, draft terms of service and privacy notices, assist with fundraising, and act as a consultant for other attorneys looking for someone who understands blockchian/crypto. Maigan speaks conversational Spanish.
Find the best lawyer for your project
Browse Lawyers NowLawyer Reviews for Option And Purchase Agreement Projects
Limited-Scope Review of Temporary Refinance and Property Sale Agreement (Indiana)
"Very receptive and kind. Made sure to think of every possible loop and made me aware of what my outcomes could be."
ContractsCounsel User
Cash land purchase contract
"Excellent and quick turnaround time for the project."
ContractsCounsel User
Residential Purchase Agreement
"Easy to work with and offered guidance as requested!"
ContractsCounsel User
Seller-Side Review & Negotiation of Purchase Agreement for CT LLC Sale
"Will work with Jane on future projects. She's very in tune to her clients needs."
ContractsCounsel User
Georgia Attorney Needed to Review Purchase and Sale Contract for Barber Salon
"Very satisfied."
ContractsCounsel User
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewNeed help with an Option And Purchase Agreement?
Financial lawyers by top cities
- Austin Financial Lawyers
- Boston Financial Lawyers
- Chicago Financial Lawyers
- Dallas Financial Lawyers
- Denver Financial Lawyers
- Houston Financial Lawyers
- Los Angeles Financial Lawyers
- New York Financial Lawyers
- Phoenix Financial Lawyers
- San Diego Financial Lawyers
- Tampa Financial Lawyers
Option And Purchase Agreement lawyers by city
- Austin Option And Purchase Agreement Lawyers
- Boston Option And Purchase Agreement Lawyers
- Chicago Option And Purchase Agreement Lawyers
- Dallas Option And Purchase Agreement Lawyers
- Denver Option And Purchase Agreement Lawyers
- Houston Option And Purchase Agreement Lawyers
- Los Angeles Option And Purchase Agreement Lawyers
- New York Option And Purchase Agreement Lawyers
- Phoenix Option And Purchase Agreement Lawyers
- San Diego Option And Purchase Agreement Lawyers
- Tampa Option And Purchase Agreement Lawyers
ContractsCounsel User
Purchasing a new business and I drafted a 5 page Purchasing Agreement so I would like it reviewed to make sure all my interest's are covered.
Location: Colorado
Turnaround: A week
Service: Drafting
Doc Type: Purchase Agreement
Number of Bids: 5
Bid Range: $550 - $1,495
ContractsCounsel User