Create a bespoke document in minutes,聽or upload and review your own.
Get your first 2 documents free
Your data doesn't train Genie's AI
You keep IP ownership聽of your information
Option Agreement
I need an option agreement for granting stock options to a key employee, with a vesting schedule of 4 years and a 1-year cliff, including provisions for accelerated vesting in the event of a company acquisition and compliance with Swiss tax regulations.
What is an Option Agreement?
An Option Agreement gives someone the right to buy or sell something specific - like shares, property, or other assets - at a set price within a certain timeframe in Switzerland. It's a binding contract that creates flexibility without forcing an immediate purchase or sale.
Under Swiss Code of Obligations Article 216, these agreements must clearly state the essential terms: the asset involved, the strike price, and the expiration date. They're commonly used in Swiss real estate deals, corporate mergers, and startup funding rounds where parties need time to evaluate opportunities while securing their rights. If the option holder doesn't exercise their rights by the deadline, the agreement simply expires.
When should you use an Option Agreement?
Option Agreements prove invaluable when you need to secure future opportunities without committing to an immediate purchase. They're particularly useful in Swiss real estate developments where you want to lock in the right to buy land at today's prices while arranging financing or obtaining permits.
These agreements also help startups manage equity distribution, letting key employees earn the right to buy shares at predetermined prices. In mergers and acquisitions, they give buyers time to complete due diligence while preventing sellers from accepting other offers. Swiss law requires clear terms on price, timeframe, and asset details to make these agreements enforceable.
What are the different types of Option Agreement?
- Lease To Own Land Agreement: Combines rental payments with a future purchase option, popular in Swiss real estate development
- Right Of First Refusal Agreement: Gives priority rights to purchase before others, common in business partnerships
- Lease To Own Business Contract: Enables gradual business acquisition through rental payments plus purchase option
- Buy Back Option Contract: Allows sellers to repurchase assets under specified conditions
- Extend Lease Agreement: Provides option to continue lease terms beyond initial period
Who should typically use an Option Agreement?
- Property Developers: Use Option Agreements to secure land for future development while arranging financing and permits
- Business Owners: Create employee stock options or structure business succession plans with clear purchase rights
- Legal Counsel: Draft and review agreements to ensure compliance with Swiss Code of Obligations requirements
- Real Estate Investors: Secure future purchase rights while conducting due diligence or arranging funding
- Startup Founders: Structure equity arrangements and investor rights for future funding rounds
- Swiss Notaries: Authenticate and register Option Agreements, particularly for real estate transactions
How do you write an Option Agreement?
- Asset Details: Document precise descriptions of property, shares, or rights being optioned, including current market value
- Strike Price: Set the agreed purchase or sale price, considering Swiss market conditions and future valuations
- Timeline: Establish clear exercise dates, expiration terms, and any conditions that trigger the option
- Party Information: Gather full legal names, addresses, and signing authority for all involved parties
- Payment Terms: Define option fees, deposit requirements, and payment methods accepted
- Conditions: List any prerequisites like due diligence, regulatory approvals, or financing requirements
- Authentication: Determine if notarization is needed, especially for real estate options under Swiss law
What should be included in an Option Agreement?
- Parties Section: Full legal names and addresses of option grantor and holder, with signing authority details
- Asset Description: Precise identification of the optioned property or rights per Swiss Code of Obligations
- Option Terms: Clear strike price, exercise period, and execution conditions
- Consideration Clause: Specified option premium or other valid consideration under Swiss law
- Exercise Mechanism: Detailed process for activating the option rights
- Default Provisions: Consequences of breach and remedies available to parties
- Governing Law: Explicit reference to Swiss law and jurisdiction
- Authentication Requirements: Notarization provisions when required by Swiss law
What's the difference between an Option Agreement and a Buy-Sell Agreement?
An Option Agreement differs significantly from a Buy-Sell Agreement in several key aspects under Swiss law. While both deal with future asset transfers, they serve distinct purposes and operate differently in practice.
- Timing of Obligation: Option Agreements create a right but not an obligation to buy/sell, while Buy-Sell Agreements establish an immediate mutual commitment to transfer ownership
- Price Structure: Options typically require a premium payment for the right itself, separate from the asset price. Buy-Sell Agreements only involve the direct purchase price
- Flexibility: Option holders can walk away by letting the option expire, whereas Buy-Sell parties must complete the transaction or face breach consequences
- Term Length: Options have specific exercise windows and expiration dates, while Buy-Sell Agreements usually specify immediate or near-term closings
- Risk Distribution: Options shift market risk to the grantor, as the holder can choose to exercise based on favorable conditions
Download our whitepaper on the future of AI in Legal
骋别苍颈别鈥檚 Security Promise
Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; 骋别苍颈别鈥檚 AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
Our bank-grade security infrastructure undergoes regular external audits
We are ISO27001 certified, so your data is secure
Organizational security
You retain IP ownership of your documents
You have full control over your data and who gets to see it
Innovation in privacy:
Genie partnered with the Computational Privacy Department at Imperial College London
Together, we ran a 拢1 million research project on privacy and anonymity in legal contracts
Want to know more?
Visit our for more details and real-time security updates.
Read our Privacy Policy.