How to Exercise / Lapse Options on Capdesk

After you have importing your options / manually added your options on Capdesk, you are then able to exercise and lapse your options via Capdesk.

To exercise:

Exercising options will convert the options into shares and make the optionholder a shareholder in the company.

To exercise your options you need to click on the “Options” tab (under Equity Awards) -> action button on your specific optionholder (far right button with the 3 dots) -> “Exercise”.

Note: If you can't see the "EQUITY AWARDS" tab, you may need to go into "Settings and Add-ons" and tick "Options Addon"

You’ll then be directed to the page where you input the exercise details.

“EXERCISE DATE” - the date your options are exercised (converted into shares).

Choose one of the three below:

  • “Exercise vested options” - to exercise the amount of options that have vested as of exercise date e.g. 5,000 options vested as of 19/02/2019 and 15,000 options yet to vest.

  • “Exercise all outstanding options including any options yet to vest” - to exercise every option in the agreement.

  • “Specify a number of options to exercise” - choose specifically how many options to exercise regardless of the vesting schedule.

“REGISTRATION DATE” - the official date of entry into the shareholder register.

“SHARES SOLD OR SALES INSTRUCTED?” - here you can either choose if the shares were sold on the same day or if the grantholder was given instructions on the sales of their options. Can be left blank.

“Taxable” - tick this for if the options falls under tax regulation.

“NOTE” - Add any additional information about the exercise if applicable.

“Advanced”:

“Documents”:

  • “Upload” - we recommend you to add a signed exercise agreement. You can also choose a section 431 election if convenient.

After you have uploaded, click on Add document.

Once you have completed all the exercise details, click on Save Draft.

To lapse:

Lapsing options will return the options from the optionholder to the option plan.

To lapse your options you need to click on the “Options” tab (under Equity Awards) -> action button on your specific optionholder (far right button with the 3 dots) -> “Cancel”.

Note: If you can't see the "EQUITY AWARDS" tab, you may need to go into "Settings and Add-ons" and tick "Options Addon"

You’ll then be directed to the page where you input the lapse (cancellation) details.

“CANCELLATION REASON” - reason for the lapse such as the grantholder leaving or the grandholder’s death.

“CANCELLATION DATE” - the date your options are lapsed.

“EXPIRES” - here you can optional set a new expire date for the grant.

Choose one of the three below:

  • “Cancel options yet to vest” - to lapse the amount of options that have not vested as of exercise date e.g. 15,000 options yet to vest as of 19/02/2019 and 5,000 options vested.

  • “Cancel all outstanding options including any vested options” - to lapse every option in the agreement regardless of the vesting schedule.

  • “Specify a number of options to lapse” - choose specifically how many options to lapse regardless of the vesting schedule.

“Money or Value Received” - tick this is if the grantholder has received anything of direct monetary value or anything that can be converted into money or direct monetary value.

“NOTE” - you will need to write a note explaining the cancellation e.g. the optionholder has left and decided to lapse all of his remaining options.

“Advanced”:

“Documents”:

  • “Upload” - we recommend you to add a cancellation agreement.

After you have uploaded, click on Add document.

Once you have completed all the cancellation details, click on Save Draft.

You’ll then be redirected to the “Options” page.

From here you can then view your exercises and lapses by clicking on your grantholder’s transactions (see screenshots below).

You'll then be able to view all your transactions including your exercises and lapses.

If you click on the Transaction (Exercise), a side panel will appear with more information about the exercise.

If you click on the Transaction (Cancellation), a side panel will appear with more information about the cancellation.