Common use of Payment for Option Clause in Contracts

Payment for Option. Optionee shall pay Optionor the sum of Eight Hundred Twenty-five Dollars ($825.00) per month on the first of each month commencing August 1, 2006, and on the first of each month thereafter. Said payment shall be in consideration for the Option granted to Optionee. The payment will not be applied to the purchase price in the event Optionee exercises this Option. In the event Optionee fails to exercise the Option according to its terms, Optionor shall retain all sums paid under the terms of this Option Agreement.