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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Last updated January 22, 2025

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Suitable for Australia

Option Agreement

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What is a option agreement?

An option agreement is a contract where a company gives someone the right to buy shares at a later date, usually for a set price, if they choose to exercise that right.
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When should you use a option agreement?

Use an option agreement when you want to grant someone the right, but not the obligation, to purchase shares in a private company at a future time.
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What should be in a option agreement?

A good option agreement should include the option premium, exercise price, expiry date, method of exercise, and terms covering rights, duties, and what happens if the option is not exercised.
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Frequently asked questions

Who can use this agreement?

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What protections does this agreement offer?

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Are there any key limitations to be aware of?

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Does this agreement apply to ASX-listed companies?

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What are the main steps to complete the agreement?

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Option Agreement

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Senator Conroy announced this week that the government would launch a review into the way Employee Share Option Plans are taxed.

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Knowing how unvested shares work is important if you are issuing shares as an employer or company founder. Find out how they work here.

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By Taeisha Dou|Dec 1, 2025

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Litigiation is an expensive and time consuming exercise. These are the most effective alternative dispute resolution options for your business.

How Do Binary Options Work?
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