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Option Agreement

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FORM OF OPTION AGREEMENT

THIS OPTION AGREEMENT (the "Agreement") dated as of the day of , by and between Computer Marketplace, Inc., a Delaware corporation (hereinafter the "Company"), and (the "Optionholder").

W I T N E S S E T H:

WHEREAS, the Optionholder is an employee of the Company; and

WHEREAS, the Company desires to compensate the Optionholder for exemplary services rendered to the Company and to provide the Optionholder with an incentive to assist in the Company's continued prosperity; and

WHEREAS, the Company would like to grant to the Optionholder an option (the "Option") to acquire shares of common stock of the Company (the "Option Shares"), pursuant to the terms herein.

NOW, THEREFORE, in consideration of the mutual covenants, conditions and premises contained herein, the parties hereto agree, subject to the terms and conditions herein, as follows:

1. THE OPTION GRANT.

(a) The Company hereby grants, subject to vesting described in Section 1(b) below, to the Optionholder the right and option to purchase ( ) Option Shares (adjusted to reflect any stock splits, reverse splits recapitalization or other business combinations), at an exercise price of per Option Share (the "Exercise Price").

(b) The Option shall vest over a three (3) year period from the date hereof. One-third of the total amount of Option Shares shall vest on the first anniversary of this Option Agreement; One-third of the total amount of Option Shares shall vest on the second anniversary of this Option Agreement; and one-third of the total amount of Option Shares shall vest on the third anniversary of this Option Agreement. There shall be no proration for any portion of any year.

(c) The Option shall be exercisable for a period of ten (10) years from the date hereof; provided however, that in the event that the Optionholder ceases to be employed by the Company, for any reason whatsoever, then vesting shall cease on date of termination or resignation and this Option Agreement shall terminate 90 days following the date of such termination, or resignation, as the case may be, and the Optionholder shall have no further rights under this Option Agreement.

2. METHOD OF EXERCISE.

The Option may be exercised in whole or in part in accordance with the provisions of this Agreement by the Optionholder's tendering the Exercise Price (or a proportionate part thereof if the Option is partially exercised) in immediately available funds. The Company shall cooperate to the extent reasonably possible with the Optionholder in an exercise pursuant to which all or part of the Option Shares will be sold simultaneously with the exercise of this with the broker-dealer participating in such sale being irrevocably instructed to remit the proceeds from the exercise of the Option to the Company upon settlement of the sale of the underlying Option Shares.

The Optionee may exercise part or all of the Option by tender to the Company of a written notice of exercise together with advice of the delivery of an order to a broker to sell part or all of the Option Shares, subject to such exercise notice and an irrevocable order to such broker to deliver to the Company (or its transfer agent) sufficient proceeds from the sale of such Option Shares to pay the Exercise Price and any withholding taxes. All documentation and procedures to be followed in connection with such a "cashless exercise" shall be approved in advance by the Company.

3. STOCKHOLDER RIGHTS.

Neither the Optionholder nor any other person legally entitled to exercise the Option shall be entitled to any of the rights or privileges of a stockbroker of the Company with respect to any Option Shares issuable upon any exercise of the Option unless and until the Option is exercised.

4. NO WAIVER.

The failure of any of the parties hereto to enforce any provisions hereof on any occasion shall not be deemed to be a waiver of any privilege given by any provision of this Agreement.

5. ENTIRE AGREEMENT.

This Agreement constitutes the entire agreement on the understanding of the parties hereto, and no amendment, modification or waiver of any provision herein shall be effective, unless in writing, executed by the party charged therewith.

6. GOVERNING LAW.

This Agreement shall be construed and interpreted and enforced in accordance with and shall be governed by the internal laws of the State of Delaware.

7. Binding Effect; Assignment.

This Agreement shall be binding upon, and inure to the benefit of the parties and their successors and assigns. This Agreement may not be assigned without the prior written consent of the Company.

8. PARAGRAPH HEADINGS.

The paragraph headings herein have been inserted for convenience of reference only and shall no way modify or restrict any of the terms of the provisions hereof.

9. NOTICES.

Any notice required or permitted to be delivered hereunder shall be deemed effective five (5) days after mailing when sent by United States mail, postage prepaid, certified mail, return receipt requested, addressed to Optionholder or the Company, as the case may be, at the addresses set forth below:

If to Optionholder:

Name

Address

With a copy to:

If to the Company:

Computer Marketplace, Inc.
1490 Railroad Street
Corona, CA 91720
Attention: L. Wayne Kiley

With a copy to:

Bernstein & Wasserman, LLP
950 Third Avenue
New York, NY 10022

10. UNENFORCEABILITY AND SEVERABILITY.

If any provision of this Agreement is found to be void or unenforceable by a court of competent jurisdiction, then the remaining provisions of this Agreement shall nevertheless be binding upon the parties with the same force and effect as though the unenforceable part has been severed and deleted.

11. COUNTERPARTS.

This Agreement may be executed in counterparts, all of which shall be deemed to be duplicate originals.

12. FURTHER ASSURANCES.

The Company and Optionholder agrees to execute and deliver to each other such documents as the other party shall reasonably request to effectuate the purposes of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

COMPANY

COMPUTER MARKETPLACE, INC.

By:



OPTIONHOLDER

Name:



Signature:

Enter text✕

What an Option Agreement Is and when it applies

An Option Agreement is a legally binding contract that gives one party the right, but not the obligation, to buy or sell specified assets or property at predetermined terms within a set period. Typical uses include real estate purchase options, stock or share options, and rights to acquire intellectual property or business assets. The agreement specifies the option period, exercise price, consideration paid for the option, conditions to exercise, and post-exercise obligations. Properly drafted, it allocates risk, sets notice procedures, and defines remedies if a party fails to perform.

Why an Option Agreement matters for transactions

An Option Agreement creates a controlled window to secure future rights without immediate transfer of ownership. It preserves negotiating leverage, clarifies price and timing, and limits execution risk. For buyers, it secures exclusivity; for sellers, it can provide nonrefundable consideration and a predictable schedule for performance or sale.

Why an Option Agreement matters for transactions

Who typically drafts, signs, or reviews an Option Agreement

Several roles are commonly involved in preparing and approving an Option Agreement depending on the asset and industry.

  • Buyers and investors seeking exclusive purchase rights for property or securities.
  • Sellers, issuers, or property owners granting conditional rights to a counterparty.
  • Attorneys, corporate counsel, or transaction managers who draft terms and confirm enforceability.

Ensure decision-makers, authorized signers, and any required corporate officers are identified before signing to avoid execution defects.

Essential components to include in a professional Option Agreement

A complete Option Agreement defines the parties, what is being optioned, the option period, exercise mechanics, consideration, conditions precedent, and remedies. Include clear procedures for notice and delivery, dispute resolution, and governing law.

Parties

Full legal names and entity types of grantor and grantee, including state of organization and contact details for notices.

Optioned Asset

Precise description of the asset or property, including legal descriptions, units of stock, or attached schedules identifying serial numbers or parcel IDs.

Option Period

Start and end dates expressed as MM/DD/YYYY with any renewal windows and time-of-day cutoffs for exercise.

Exercise Terms

How to exercise (written notice, deposit, form), required deposits or escrow, and timing for closing after exercise.

Consideration

Amount or consideration paid for the option, refundability, credit toward purchase price, and handling of forfeiture.

Governing Law

Specify the state law that governs interpretation, and whether disputes go to arbitration or court with venue identified.

Key security and compliance items to track

Encryption: TLS 1.2/1.3 in transit
Data at Rest: AES-256 encrypted storage
Certifications: SOC 2 Type II available
Regulatory: ESIGN and UETA compliant
Health Data: HIPAA with BAA available
Audit Trail: Detailed signer event logs

Step-by-step: how to complete an Option Agreement

Follow a consistent sequence to reduce errors: verify parties, confirm the asset, set dates and amounts, and collect authorized signatures and proof of authority.

  • 01
    Verify parties: Confirm legal entity names and officer authority
  • 02
    Describe asset: Use precise legal or parcel descriptions
  • 03
    Set terms: Enter option period, exercise method, and price
  • 04
    Execute: Obtain signatures and required notarization

Customizing the online workflow for an Option Agreement

Configure routing, authentication, and conditional fields so the Option Agreement executes cleanly and enforces required approvals.

Field Configuration
Signing Order Set sequential or parallel routing
Authentication Level Select email, SMS code, or advanced auth
Conditional Fields Display fields only after prerequisites complete
Document Retention Enable audit trail and secure storage

Digital signing and delivery considerations

Confirm platform features and signer authentication before sending the agreement to preserve legal validity and auditability.

  • File formats: PDF, DOCX supported
  • Integrations: CRM and storage connectors
  • Auth options: Email, SMS, or KBA

Choose a platform that supports audit trails, optional notarization or RON, and secure long-term storage to meet legal and industry requirements.

Common timing and deadline considerations

Option Agreements hinge on strict timing. Note the effective, expiration, exercise, notice, and closing deadlines and format them clearly to avoid disputes.

Effective Date:

When the option rights begin, shown as MM/DD/YYYY

Expiration Deadline:

Final date and time by which exercise notice must be received

Exercise Window:

Period during which the option can be validly exercised

Notice Period:

Time required between notice and closing, if specified

Closing Date:

Date by which purchase must be completed after exercise

Penalties and risks from errors or omissions

Lost Rights: Missed expiry forfeits option
Forfeited Consideration: Option fee may be nonrefundable
Enforceability Risk: Ambiguous terms invite litigation
Tax Exposure: Improper reporting creates liabilities
Authority Defect: Unsigned officer signatures invalid
Recordkeeping Failure: Loss of proof of execution

Real-world examples of Option Agreement use

Below are two representative use cases drawn from organizations that use digital signing and structured option terms.

Martin Properties

A small property manager used an option to secure a future purchase while marketing a building.

  • The option fee reserved purchase rights pending due diligence.
  • By documenting exercise mechanics and using clear closing timelines, the manager avoided competing offers and completed the sale within the stated window while preserving tenant stability.

Tech Data

A distributor negotiated an option on exclusive supply of hardware for a new territory.

  • The option granted first refusal and set price bands.
  • With defined notice procedures and automated reminders, parties executed exercise notices on time and settled payment terms according to the contract schedule.

Typical routing and filing steps after execution

After signatures are collected, follow a clear routing plan to finalize recordkeeping and any public filings.

  • Deliver executed copies: Send signed PDFs to all parties and counsel
  • Upload to repository: Store in secure document management system
  • Record or escrow: Record instrument or place funds in escrow if required
  • Set reminders: Schedule expiration and exercise alerts

Practical tips to reduce disputes and improve enforceability

Adopt consistent drafting and execution practices to limit later disagreement and to support electronic execution where permitted.

Use precise, objective language
Draft the asset description, pricing, and timing in unambiguous, measurable terms. Replace vague references (for example, "reasonable efforts") with defined standards or timelines to reduce interpretation disputes and protect enforceability.
Specify notice and exercise method
State the required delivery method and address for exercise notices, including whether email is acceptable and the effective time of receipt; clarify how to compute notice periods in business days and time zones.
Confirm signing authority
Require a corporate resolution or officer certificate for entity signers when appropriate, and include capacity statements in signature blocks to prevent challenges to authority later.
Preserve the audit trail
Keep timestamps, IP addresses, signer authentication records, and version history. These records support attribution and consent elements for e-signature validity under ESIGN and UETA.

Key milestones from option grant through closing

Track milestones as numbered steps to keep the option lifecycle on schedule and preserve rights.

01

Grant Date

Option becomes effective and consideration is paid

02

Due Diligence Period

Buyer inspects asset and satisfies contingencies

03

Exercise Notice

Buyer delivers formal notice per agreement terms

04

Closing

Purchase completes and title or assets transfer

Comparing common eSignature vendors for Option Agreement workflows

Basic pricing and feature availability vary across eSignature providers; signNow is listed first per comparison conventions below.

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 Yes, 7-day trial Varies by plan Varies by plan Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions about Option Agreements and e-signatures

Questions and concise answers addressing enforceability, amendment, notarization, revocation, and recordkeeping for Option Agreements.


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