How to terminate a grant, create an exercise window and publish an exercise

An overview of how to allow for exercises of vested options or warrants using our online exercise and terminate online features

You (an administrator) can allow grantholders to exercise their equity (options or warrants). You can either:

  1. 'Terminate a grant' (i.e. the grantholder is a leaver/leaving the company) which will lapse the unvested equity. The vested equity will then be available for the grantholder to exercise. 
  2. 'Create an exercise window' to provide the opportunity for a grantholder to exercise their vested equity.

In both cases, you will need to approve the exercise before it is published.


1. How to terminate a grant
2. How to create an exercise window
3. How to approve an exercise

Terminate a grant

Using option grant as an example, go to 'Options' (under Equity Awards) -> Grants -> search for the grant that you would like to terminate -> click the action button (3 dots) -> 'Terminate Grant (Exercise)'.

Screenshot 2021-05-24 at 13.28.01

You may see the page below, if so you will need to correct one of the problems highlighted in the error message. If you need help, please contact support.

online exercise not supported

Proceeding without any problems, a summary of the grant will appear at the top of the page.

Select the 'Terminate Date' to state when you would like the exercise window to begin, this ought to be the same date as the notice period ends.

Below this, select if you would like to cancel all unvested options as of the termination date or if you would like to cancel the unvested and more.

e.g if you wanted to cancel the 100 unvested options and then 50 vested options, record '50' in the second setting. In both fields, the options will cancel once the exercise window concludes.

Screenshot 2021-05-24 at 14.44.37



Once you have selected the date that the exercise window is to open, select the exercise window end date. You can select a fixed window (such as a 90-day window, which is common for EMI) or you can input a customised date.

Screenshot 2021-05-24 at 14.58.28

Screenshot 2021-05-24 at 14.56.09


Lastly, add payment instructions and any other additional information you'd like your grantholder to read.

Once you are ready to start this process for the optionholder, click the green 'Start Termination' button.

Screenshot 2021-05-24 at 14.58.37

 

Once completed, you will receive the following verification message.

Screenshot 2021-05-24 at 14.57.40

The optionholder will now look to complete the exercise order and once complete, the exercise will need to be published.


How to create an exercise window

Using an option grant as an example, go to 'Options' (under Equity Awards) -> Grants -> search for the grant that you would like to create an exercise window for -> click the action button (3 dots) -> 'Create Exercise Window'.

Screenshot 2021-05-24 at 13.28.01

At the top of the page, you will find a summary of the grant, detailing the vested and unvested quantities.

Choose the exercise window start date and exercise window end date, optionholders will be able to exercise their vested options during this time.

Lastly, add payment instructions and any other additional information you'd like your grantholder to read.


Once ready, click the green 'Create exercise window' button.

Screenshot 2021-05-27 at 08.11.14

The optionholder will now look to complete the exercise order and once complete, the exercise will need to be published.

How to publish an exercise

To follow the status of the exercise, go to 'Options' (under Equity Awards) -> Online Exercises. This page will give a summary of the grants undertaking this process and how it is progressing (if the optionholder has paid for the exercise and who is to sign the exercise notice - see Status column). 

Screenshot 2021-05-24 at 15.01.10

There are four statuses the grant can have:

  1. Stakeholder signing - This implies that the grantholder needs to state how many equity to exercise and to sign the relevant documentation i.e. Exercise notice.
  2. Issuer signing - The grantholder has completed the above and it is now for the company signatory to countersign the relevant documentation. Here is an article on how to configure a signatory.

    If the status is 'Issuer signing' then you can sign the exercise notice. To do this, click the action button -> 'Sign'. You will then be redirected to DocuSign to complete the signing process and once completed, the following notification will appear. 


    Screenshot 2021-05-24 at 15.09.31
  3. Ready to publish - All documentation has been completed and a company administrator needs to approve and publish the exercise. Here is an article on how to establish an exercise publisher ('Publishing exercises' section).
  4. Published - All steps are complete and the exercise has been completed. The optionholder will be able to find all documentation and details of the exercise in their portfolio and the exercise will also be reflected in the company cap table.

If you have received the funds of the exercise, find the grant -> click the action button (3 dots) of the grant -> 'Mark as paid'.

Screenshot 2021-05-24 at 15.06.28

Then, record the details of the payment.

Screenshot 2021-05-24 at 15.07.20

The exercise should then be in the 'Published' state and it is now all completed.


If you need further assistance, you can reach out to us by submitting a support ticket here.