The Arizona Option to Purchase Stock — Long Form is a legal agreement that outlines the terms and conditions under which the buyer or holder of stock is granted the option to purchase additional stock from a company at a predetermined price. This contractual agreement is designed to provide the buyer with the flexibility to exercise their option and acquire additional stock at a future date. Keywords: Arizona Option to Purchase Stock, Long Form, stock agreement, stock option, buyer, holder, predetermined price, contractual agreement, exercise option, acquire stock, future date. In Arizona, there are two main types of Option to Purchase Stock — Long Form contracts commonly used: 1. Employee Stock Option Agreement: This type of long form agreement is typically used by companies to grant their employees the right to purchase company stock at a specified price within a certain time frame. It serves as an incentive for employees to contribute to the company's growth and success while also providing them with a potential financial benefit. 2. Investor Stock Option Agreement: This long form agreement is entered into between an existing shareholder or investor and the company. It outlines the terms upon which the shareholder has the option to purchase additional stock in the company. This type of agreement is often utilized when companies seek additional capital or when existing shareholders want to increase their ownership stake in the company. Key provisions typically included in the Arizona Option to Purchase Stock — Long Form agreement: 1. Exercise Price: The agreement specifies the predetermined price at which the option holder can purchase the stock. This price may be set at the time the agreement is executed or determined by a formula based on certain factors. 2. Expiration Date: The agreement states the date by which the option must be exercised. If the option is not exercised within the specified time frame, it generally becomes null and void. 3. Vesting Schedule: In employee stock option agreements, a vesting schedule may be included that outlines the timeline over which the employee earns the right to exercise their options. This is often used to incentivize and retain employees over a certain period. 4. Non-Transferability: The agreement typically restricts the transfer of the option to purchase stock to prevent unauthorized sales or transfers of the rights granted under the agreement. 5. Terms of Payment: The agreement may specify the terms of payment for exercising the option, such as cash payment, stock swap, or a combination of both. 6. Governing Law: The agreement outlines that it is subject to the laws of the State of Arizona, ensuring that any legal actions will be governed by the state's jurisdiction. In conclusion, the Arizona Option to Purchase Stock — Long Form is a legal agreement that enables buyers or holders of stock to acquire additional shares at a predetermined price. It is commonly used in employee and investor stock option agreements, offering flexibility and potential financial benefits for the parties involved.