You can terminate an optionholder's grant when they leave your company or your collaboration with them has ended. This will then allow the optionholder to exercise their options (if applicable) on Capdesk.
Before you can terminate an option grant online, you will need to:
- Verify your identity
- Verify company’s identity
- Input bank account details
- Assign an exercise approver
- Add exercise document template
- Enable exercise on the option plan
Once you have done all of the above, then you will be able to terminate an option grant online.
To terminate an option grant, go to the 'Options' page, find the option grant you wish to terminate, and click the action button (3 dots far right of option grant). Select the 'Terminate Online' option from the drop-down menu.
If you try to terminate an option grant but do not succeed, this could be due to:
- Draft data
- Grantholder type (e.g. we do not support online termination if the option grant is held by a company)o
- Online exercises not enabled for the option plan
- Failed identity verification
Find more information in the screenshot below. If you are still unsure why your online termination is not supported, please contact support at email@example.com.
If your online termination is successful, you will be shown the page below:
Please make sure you review the grantholder's email address here and ensure that they will have access to it throughout the process.
You will need to input:
- Termination start date (date of cancellation) - this date can only be a past or today’s date. We do not support a future termination date
- Termination end date (usually the end of the exercise period) - the optionholder have the possibility to exercise options up until and including this date. This date needs to be later than the start date and set in the future.
You will then need to select on the termination start date whether to:
- Cancel all unvested
- Cancel unvested and more
If you need to cancel part of the unvested and accelerate vesting for the rest, please contact support for further help at firstname.lastname@example.org.
Please note that once you start the termination, you will be unable to cancel this process, so make sure you check the information on this page before you click on 'Start Termination'.
Once you are done, click on the “Start Termination” green button. This will then start the termination process. You can see that the option grants' status is now 'Terminating'.
The optionholder will receive an email notification that they can exercise their options. Read here if you want to find out how optionholders can exercise their options.
You can review the 'Tasks section' (under 'Status') to find out what the status is for any potential exercises.
These are the different statuses you might encounter:
- Grantholder signing - grantholder can exercise their options and will need to sign the exercise document(s).
- Grantholder funding - once the grantholder has signed the exercise document(s), they will need to pay for the options.
- Issuer Approving - an administrator needs to approve the exercise.
- Transferring Money - the exercise is in progress and money is being transferred to the company.
- Completed - exercise is completed and shares issued.
- Failed - this could be due to grantholder rejecting signing the exercise documents. If you inspect the exercise, you will see detailed information as to why, it has a failed status. Still unsure? please contact support at email@example.com.