Put Option Settlement Clause Samples
The Put Option Settlement clause defines the process and terms under which a party holding a put option can exercise their right to sell an asset back to the counterparty. Typically, this clause outlines the method for notifying the other party of the intent to exercise the option, the timeline for settlement, and the calculation of the settlement amount or price. For example, it may specify that payment must be made within a certain number of days after notice is given, and detail how the asset transfer will occur. The core function of this clause is to ensure a clear, predictable mechanism for completing the transaction when the put option is exercised, thereby reducing uncertainty and potential disputes between the parties.
Put Option Settlement. The sale and purchase of the Put Option Shares shall take place at the Settlement Place on the Settlement Date. At the Settlement Date (a) MCC shall pay to the Minority Shareholder the Option Price through a deposit of the Option Price in a bank account to be indicated by the Minority Shareholder to MCC within 30 days before the Settlement Date, in immediately available funds, provided that on the Settlement Date the Minority Shareholder delivers to MCC, free and clear of any liens and other encumbrances, the certificate or certificates representing the Put Option Shares, together with such instruments of transfer as required by law, duly signed and executed by the Minority Shareholder and its witnesses (traspaso de acciones) and simultaneously the Put Option Shares are registered under the name of MCC in the Registry of Shareholders of the respective Companies, with no limitations. CLAUSE X: Call Option.