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Stock Option Agreement Definition

There is no obligation for the worker to exercise the option, in which case the option is extinguished. Another common option agreement exists in the real estate market. The option agreement sets out the conditions under which a party is entitled to the first chance to purchase land at a specified price at a later date. There are several definitions of an option agreement in the financial and business environment. Typically, an option agreement is an agreement between two persons, a company, or a combination of both, that defines the terms of each party. However, in 2002, only 8.5% of large state-owned enterprises that granted executive options provided only a portion of the options granted. .

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