Can this be signed electronically?

Yes. Electronic signatures are binding under the federal ESIGN Act (15 U.S.C. ch. 96) and most states’ UETA statutes if intent, consent, attribution, and retention are satisfied.

Is notarization required?

Not usually for corporate governance changes, but state or plan rules may require notarization for certain deeds or conveyances; verify with counsel or the state recorder.

Who may sign for the company?

An authorized officer or an individual with delegated authority per corporate bylaws or a board resolution; attach proof of delegation when appropriate.

What if the signer name differs?

If the signer’s name does not match formation records, provide identification and a reconciliation document to avoid acceptance delays.

Can updates be revised later?

Yes. Prepare a subsequent update or amendment that references and supersedes the prior document; maintain a clear chain of amendments.

How long to retain signed updates?

Retain for the active term plus at least three years; follow IRS, HIPAA, and industry-specific retention rules as applicable.

Electronic Signature
Templates
Miscellaneous
Business Option Update

Business Option Update

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Business Option Update

Parties

Optionor Name: Optionor Address: Optionee Name: Optionee Address:

Recitals

WHEREAS, Optionor and Optionee entered into an Option Agreement dated (the Agreement) concerning the option described below; and

WHEREAS, the parties wish to amend certain terms of the Agreement to reflect the changes set forth in this Business Option Update; and

WHEREAS, capitalized terms used but not defined in this Update have the meanings given to them in the Agreement.

Option Reference

Reference/Agreement ID:

Scope of Update

The Agreement is amended as set forth in this Business Option Update. The parties confirm and agree that the following modifications, clarifications, and additional obligations shall apply:

Describe update (scope, affected provisions, and intent):

Payment Terms

In consideration for the amendments set forth herein, Optionee shall pay Optionor the amounts and on the schedule set forth below.

Update Fee - Total Amount: Payment Schedule / Milestones: Late Payment Fee:

Term and Termination

The term of the amended option provisions shall commence on the Effective Date and continue as provided below unless earlier terminated in accordance with this Update or the Agreement.

Effective Date: Term Expiration Date:

Notice Period for Termination (days):

Either party may terminate this Update upon written notice to the other party if the other party materially breaches any obligation under this Update or the Agreement and fails to cure such breach within the notice period specified above. Termination of this Update shall not relieve the breaching party of liabilities accrued prior to termination.

Additional Amendments

The parties agree the following specific provisions of the Agreement are amended as indicated. If a change below is not applicable, leave blank.

Exercise Price (if modified): Option Quantity / Units (if modified):

Select updates included: Extend term Modify exercise price Modify assignability

Confidentiality

Each party shall maintain in confidence all nonpublic information received from the other party relating to the Agreement or this Update and shall not disclose such information to any third party except to its employees, agents, counsel, or advisors on a need-to-know basis and who are bound by confidentiality obligations no less protective than those contained herein. This confidentiality obligation shall survive termination or expiration of the Agreement and this Update for a period of three (3) years, or longer if required by applicable law or the original Agreement.

Notices

All notices required or permitted under this Update shall be in writing and delivered to the addresses set forth below (or to such other address as a party may designate by written notice), and shall be deemed given upon receipt.

Notice Address for Optionor: Notice Address for Optionee:

Governing Law; Jurisdiction

This Update shall be governed by and construed in accordance with the laws of the state identified below without regard to conflicts of laws principles. The parties submit to the exclusive jurisdiction of the courts located in the chosen jurisdiction for resolution of disputes.

Governing State:

Miscellaneous Provisions

Entire Agreement. Except as expressly provided in this Update, the Agreement remains in full force and effect. This Update, together with the Agreement, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior understandings and agreements between the parties relating thereto.

No Waiver; Severability. No failure or delay by either party in exercising any right shall operate as a waiver. If any provision of this Update is held invalid or unenforceable, the remaining provisions shall remain effective.

Counterparts and Electronic Signatures. This Update may be executed in counterparts and may be executed by electronic signature, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

Execution

The parties have executed this Business Option Update as of the dates set forth below. Except as expressly amended herein, the Agreement remains unmodified and in full force and effect.

Optionor - Printed Name:

By:

Date:

Optionee - Printed Name:

By:

Date:

What the Business Option Update Is and when it applies

A Business Option Update is a written amendment or notice used by a company to modify, confirm, or communicate choices related to governance, ownership allocations, option grants, or contractual election terms. It documents the parties involved, the specific option or provision being changed, the effective date, and any consideration or conditions tied to the change. Organizations use this form to create a clear, auditable record of choices that affect equity, rights, or operational permissions. When completed correctly it supports internal control, external reporting, and later review by auditors or legal counsel.

Why a clear Business Option Update matters legally and operationally

A concise Business Option Update reduces ambiguity about rights and timing, supports enforceability under ESIGN and UETA, preserves tax and financial accuracy, and creates an audit-ready record for internal and external stakeholders.

Which roles typically prepare or approve a Business Option Update

Final signatories should be authorized representatives named in corporate governance documents or persons with delegated signing authority.

Corporate counsel or general counsel: drafts legal language, confirms compliance, and recommends governing law.
Chief financial officer or controller: verifies tax, accounting treatment, and reporting implications.
Equity administrators or HR: records option grant details, vesting schedules, and beneficiary data.

Core components to include in a professional Business Option Update

A complete update contains standardized sections so recipients and downstream systems can process it reliably. Including clear headings and defined fields reduces disputes and data entry errors during filing or reconciliation.

Identification

Company name, entity type, and primary contact details for the update.

Subject Option

Unique grant or option identifier, grant date, and plan reference.

Amendment Detail

Precise description of the change being made and prior text replaced.

Effective Date

Date the change takes effect, in MM/DD/YYYY format.

Consideration

Monetary or non-monetary consideration, if applicable, with amounts.

Signatures

Authorized signer blocks for company and counterparty with dates.

Required data fields and short-format checklist

Entity Name: Full legal name

Option ID: Grant or agreement ID

Effective Date: MM/DD/YYYY

Amount or Units: Number and class

Signatory: Name and title

Supporting Doc: Plan or board resolution

Step-by-step: preparing and submitting an update

Follow this sequence to prepare a Business Option Update that minimizes review cycles and legal risk.

01

Draft: Record the precise change and link prior language for reviewers.
02

Review: Legal and finance confirm tax and governance impacts.
03

Sign: Authorized parties execute and date the document.
04

File: Store in corporate records and notify relevant teams.

Configuring an online completion workflow

Design the digital workflow so each step enforces required fields and routes for approval automatically.

Field	Configuration
Required Fields	Mark legal name, effective date, and signature mandatory
Signer Order	Set sequential or parallel routing per governance
Authentication	Use email or SMS code; escalate to KBA if needed
Notifications	Set reminders and completion notices to stakeholders

Typical routing and processing flow

A standard electronic process reduces turnaround and creates a complete audit trail for each action related to the update.

Upload: Sender uploads the update document to the signing platform
Prepare: Place required fields and assign signers
Authenticate: Signers confirm identity and consent electronically
Complete: System stores signed copy and audit trail

Technical considerations for digital signing and eSubmission

Confirm the platform offers audit logging, optional advanced authentication, and any necessary compliance features such as a BAA for healthcare-related records.

File formats: PDF, DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Security: TLS and AES-256 encryption

Comparing eSignature pricing and key plan features

Basic vendor pricing and feature differences can affect your total cost and the compliance capabilities you need for Business Option Update workflows.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA required)	Yes	Yes	No	No

Common preparation mistakes that slow or invalidate an update

Mismatched names between the update and corporate formation documents, which can cause acceptance delays and require corrective filings.
Missing or incorrect effective dates that lead to disputes over when rights or vesting changes took effect with financial reporting consequences.
Failing to attach required supporting resolutions or plan excerpts, forcing reviewers to request re-submission and extending processing time.
Using insufficient signer authentication or lacking evidence of consent, creating admissibility challenges and undermining enforceability.

Consequences of incorrect or late Business Option Updates

Tax Penalties: IRC §6721 penalties for incorrect information returns

Withholding Risk: Backup withholding may apply for incorrect TINs

Contract Disputes: Ambiguous terms can lead to litigation

Regulatory Exposure: Industry regulators may assess fines

Recordkeeping Violations: Noncompliance with retention rules

Notarization Errors: Invalid acknowledgements may void changes

Timing considerations and related external filing deadlines

Some Business Option Updates trigger tax or reporting deadlines; track associated information returns and corporate filing requirements.

W-9 Provision:

Provide on request; no fixed IRS deadline

1099-NEC Reporting:

File recipient and IRS copies by January 31 each year

Form 1040 Deadline:

April 15 is the standard personal tax filing deadline

Extension Filings:

Use Form 4868 for a six-month tax filing extension

I-9 Retention:

Keep for 3 years after hire or 1 year after termination

Frequently asked questions about completing a Business Option Update

Answers to common issues that arise during preparation, signing, and storage of Business Option Updates for U.S. companies.

Need help? Contact support

Can this be signed electronically?
Yes. Electronic signatures are binding under the federal ESIGN Act (15 U.S.C. ch. 96) and most states’ UETA statutes if intent, consent, attribution, and retention are satisfied.
Is notarization required?
Not usually for corporate governance changes, but state or plan rules may require notarization for certain deeds or conveyances; verify with counsel or the state recorder.
Who may sign for the company?
An authorized officer or an individual with delegated authority per corporate bylaws or a board resolution; attach proof of delegation when appropriate.
What if the signer name differs?
If the signer’s name does not match formation records, provide identification and a reconciliation document to avoid acceptance delays.
Can updates be revised later?
Yes. Prepare a subsequent update or amendment that references and supersedes the prior document; maintain a clear chain of amendments.
How long to retain signed updates?
Retain for the active term plus at least three years; follow IRS, HIPAA, and industry-specific retention rules as applicable.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now