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 grants someone the right to buy shares at a later date, subject to certain conditions.
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When should you use a option agreement?

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

It should include details on the option premium, exercise price, expiry date, method of exercise, rights and duties, and what happens if the option is not exercised.
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Frequently asked questions

What is a option agreement?

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When should you use a option agreement?

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What should be in a option agreement?

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Does this agreement apply to ASX-listed companies?

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What are the main risks involved?

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What protections does this agreement provide?

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What steps are required to complete the process?

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Option Agreement

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