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Option Agreement

An Option Agreement allows a company to grant an option to a party to acquire shares in the company at a later date.

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4.0 (4 reviews)

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Under 10 minutes

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Suitable for Australia

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Document Overview

This is a basic agreement for a company to grant an option to a party to acquire shares in the company that will be issued in the name of the buyer if the option is exercised. If the option isn't exercised, the shares are not issued. This agreement only applies to shares in a company not listed on the ASX. For listed companies an option must comply with the ASX Listing Rules.

Use this Option Agreement if:

  • You are looking to grant an option to purchase shares at a later date

What does the Option Agreement cover?

  • Detailed provisions on the key components of an option agreement, including the premium, exercise price, expiry date and method of exercise
  • Provisions on the terms of exercise
  • Duties of the company and grantee
  • Grantee’s rights
  • Other provisions on adjustments, acts of default, termination and notices
  • A notice of exercise that the grantee can fill in at a future date

What is an Option Agreement also called?

  • Share call option
  • Company share call option

Further information:

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