Call option agreement Template for Denmark

A Call option agreement gives someone the right to buy specific assets, like company shares or property, at a set price within an agreed timeframe. In Danish business practice, these agreements often follow standardized terms from the Danish Companies Act (Selskabsloven), particularly for share-based arrangements.

Call options play a vital role in Danish corporate transactions, from employee incentive schemes to strategic business acquisitions. They protect buyers by locking in future purchase prices while giving sellers immediate compensation through option premiums. The Danish Financial Supervisory Authority oversees these agreements when they involve regulated securities or financial instruments.

Consider using a Call option agreement when you need to secure future buying rights while managing current cash flow. This tool proves especially valuable for Danish startups offering employee stock options, where it helps attract and retain talent within the framework of Selskabsloven (Danish Companies Act).

The agreement makes sense when acquiring business assets gradually, like buying out a retiring partner's shares over time. It's also crucial for strategic investments where immediate purchase isn't feasible but locking in the price matters. Danish companies often use these agreements during mergers and acquisitions, particularly when coordinating with earn-out arrangements or staged ownership transfers.

• Standard Share Call Options: Used for employee stock ownership plans in Danish companies, with vesting schedules and exercise conditions aligned with Selskabsloven requirements
• Property Call Options: Common in real estate transactions, giving buyers the right to purchase property at preset terms within a specific timeframe
• Corporate Acquisition Options: Structured for business purchases, often including earnout provisions and compliance with Danish M&A regulations
• Financial Instrument Options: Regulated by the Danish FSA, these sophisticated agreements cover securities and other financial assets

• Company Boards: Authorize and oversee Call option agreements, especially for employee stock programs under Danish corporate law
• Legal Counsel: Draft and review agreements to ensure compliance with Selskabsloven and Danish FSA regulations
• Corporate Executives: Negotiate terms and often receive options as part of compensation packages
• Employees: Receive stock options as incentives, particularly in Danish startups and tech companies
• Investment Banks: Structure option agreements for mergers, acquisitions, and financial instruments
• Business Owners: Use options for staged ownership transfers or succession planning

• Asset Details: Identify exact shares, property, or assets covered by the option, including current market value
• Price Structure: Determine strike price, option premium, and payment terms under Danish valuation rules
• Timeline Elements: Set exercise period, vesting schedules, and key milestone dates
• Party Information: Gather legal names, company registration numbers, and authorized signatories
• Regulatory Review: Check compliance with Selskabsloven and FSA requirements for your specific option type
• Documentation: Collect board resolutions, company articles, and shareholder agreements that might affect the option

• Option Terms: Clear description of the asset, strike price, and exercise period under Danish law
• Party Details: Full legal names, addresses, and registration numbers of option holder and grantor
• Exercise Mechanics: Detailed process for executing the option, including notice requirements and payment terms
• Transfer Rights: Conditions for assigning or transferring the option rights to third parties
• Termination Clauses: Specific events triggering early termination or expiration
• Governing Law: Explicit reference to Danish law and jurisdiction
• Dispute Resolution: Preferred method for resolving conflicts under Danish arbitration rules

A Call option agreement differs significantly from a Stock Option Agreement, though they're often confused in Danish business practice. While both involve rights to purchase assets, their scope and application vary considerably under Danish law.

• Scope and Flexibility: Call options can cover any asset type (property, shares, bonds), while Stock Option Agreements specifically deal with company shares
• Legal Framework: Stock Option Agreements must comply with specific employee compensation rules in Selskabsloven, while Call options have broader regulatory flexibility
• Purpose: Stock options typically serve as employee incentives, whereas Call options often facilitate strategic business transactions or investments
• Exercise Terms: Stock options usually include vesting periods and employment conditions, while Call options generally have simpler exercise requirements focused on price and timing