An options agreement or a buy/sell agreement as they are often called refers to an agreement between business owners stating what is to occur to an owner’s interest in the business if an event was to happen to one of the owners.

For example, on the death of a shareholder, that shareholder’s interest must be fist offered to the remaining shareholders rather than merely falling into his or her estate or being sold to a third party. Such agreements also commonly contain an option where an owner becomes permanently disabled and can also be drafted to cover other scenarios.