How to set up and execute warrant grants

This article breaks down the steps required to set up, execute and sign a warrant grant

This guide is a follow up to the "How to issue warrants on Capdesk" support article.

A couple of things to note:

  • Your company will need to be live to use this feature
  • You can log in to your own DocuSign account (for the electronic signatures) otherwise you can use Capdesks' account but you will incur a fee of £2.50 per signed document. 
  • If the warrant grants are being issued out of an incentive pool, you will need to ensure you have enough available to grant.

You will need to set up the warrant agreement on Capdesk, issue the warrants that you would like to be signed and allow for all relevant parties to complete the signing:

    1. Setting up your warrant agreement 

    2. Executing warrants for signing 

    3. Signing the agreement 

    1. Setting up the agreement 

    Setting up consists of:

    1. Uploading share grant agreement template
    2. Provide admin signing access
    3. Modify email template (optional)

    Uploading agreement template

    The first part of executing a warrant signing is to upload your warrant agreement that you want your warrant holder to sign, navigate to the "Online Document Templates" tab found on the warrants page and then click on the green "Add Template" button, shown below:

    Screenshot 2020-04-21 at 15.12.37

    You will be asked to select the type of agreement, you can choose whether the grant issuance is for an individual or a corporate stakeholder. This essentially means whether the document is to be assigned to an individual stakeholder or a corporate stakeholder, choose the relevant one.

    From here you will have to input the warrant plan you like to add to the agreement (it will appear on the drop-down). If it does not appear in the drop-down, create the plan first. 

    Screenshot 2020-04-22 at 16.35.35

    You will need to input the name of the warrant template (to make it easier to identify in the future). 

    Next, click on the 'Add Dynamic Document' button. This refers to your actual agreement template, and it's referred to as dynamic because every time you issue a new grant on Capdesk, the platform will automatically fill out the template with the data that is relevant on each occasion (eg. the name of each new grantholder, date, etc.). The system will ask you to select the type of agreement your document is, select "Grant agreement".

    Dynamic document contain placeholders similar to <<capdesk:Grantholder:Name>>. These placeholders are the "dynamic" parts of the document which are later substituted with the participant's information.

    For example, you can use the same Grant Agreement for several employees and Capdesk will output a personalised version for each one including their name, vesting dates, exercise price, etc. 

    The next field to choose will be the type, this involves whom you would like to sign the agreement, please select the relevant one for you. The options are whether to have it signed by the grantholder and issuer, just the issuer or an agreement without signatures.

    2021-03-25 - Warrant signing

    After this, you will be asked to upload the document. Please note that there are a number of Capdesk placeholders that need to be included in the template you provide, in order for it to be compatible with Capdesk. You can see a list of these by clicking on 'View available placeholders'. See here to understand what each placeholder means.


    Screenshot 2020-04-24 at 11.11.43

    For your convenience, Capdesk provides a sample template available for download.

    Please note that this is a very basic sample template, intended to give you an understanding of what a template might look like with the Capdesk placeholders. It is not intended for use. If you do not already have a warrant agreement of your own, we recommend you consult your legal adviser.

    Once you have uploaded your warrant agreement that includes the Capdesk placeholders, you should be able to see it in a narrow green box on the right side of your screen, as shown below. When you are ready, click the green 'Upload' button on the right.

    Screenshot 2020-04-24 at 11.26.47

    After clicking upload, you will be taken back to the "New warrant template" page. 
    If you wish, you can also upload static documents (i.e. documents that will be sent to all grantholders when they receive a grant, without any adjustments made to them). To do so, click the drop-down menu under 'Static Documents', and select the type of document you wish to add. Then click 'Upload' to attach the relevant document.


    Screenshot 2020-04-24 at 11.31.28

    When you've completed the process, click the green 'Save' button at the bottom right of your screen.

    This will take you back to the 'Document Templates' section of your 'Warrants' tab, where you should now be able to see the new template under the name you gave it earlier on.


    Screenshot 2020-04-24 at 11.39.21


    Provide Admin signing access:

    Ensure you have selected the default signatory (the person who will sign documents on behalf of the company). 

    You will need to go to User Access -> Edit access (for admin) -> make this admin default signatory.


    Modify email template (optional)

    The grantholder will receive an email invitation inviting them to accept the grant. If you would like to view this email and edit it, click Email Templates (under Settings) -> corresponding action button -> Edit.

    You can also send yourself a preview of what the email would look like in your inbox, you can do so by clicking on 'Send' from the action button.

    Screenshot 2021-02-04 Warrant online issuance email template

    2. Executing warrant grants

    To issue warrant grants, go to Warrants (under Equity Awards) -> Online Issuances -> Issue Grant Online.

    Screenshot 2020-04-28 at 15.04.32


    Then, select the grantholder that you would like to issue the warrant grant to. If the grantholder is not currently recorded on Capdesk, click 'Or Add New grantholder Instead' and enter their corresponding details to register them. 

    Screenshot 2020-04-28 at 15.09.00

    Once you have chosen the specific stakeholder (or added a new one), you now need to enter the details of the warrant grant.

    Screenshot 2020-04-28 at 15.14.54


    As you can see, the template we inputted before has now appeared on the dropdown.

    Also, the "Expected Grant Date" field asks you for the date you expect the grant agreement to be signed by all parties. However, if signing is not completed by this date Capdesk will automatically adjust both the agreement and user interface to the date all parties (company and warrant holder) have signed the agreement.

    Screenshot 2020-04-28 at 15.20.49

    Screenshot 2020-04-28 at 15.27.03

    Screenshot 2020-04-28 at 15.27.22

    When you have added all the necessary information, click "Send for Signing" or "Save draft". 

    If you have chosen to save the grant as a draft, it will appear on the 'Online Issuances' page. To review the agreement to see what it looks like, click 'View' and see the 'Documents' section.

    Screenshot 2020-05-06 at 16.06.59

    When you are ready to sign the share grant, click the corresponding action button -> 'Send for Signing'.

    If you need to update the warrant grant details, you will need to delete the warrant then issue the grant again for the agreement to be updated.

    If you edit the warrant, the updated information will not be reflected in the agreement.

    Once sent for signing, you will see the status of the share grant will change to 'In Progress' and highlights who needs to sign the agreement (in the 'Assignee' column). 


    You can cancel your warrant grant signing by going back into the "Warrants'" and "Online Issuances" tabs, finding the name of your grantholder, and clicking on the action button (...) on the far right of their name section.

    Screenshot 2020-04-28 at 15.32.51


    3. Signing the agreement

    Screenshot 2020-04-28 at 15.35.27

    This page will also tell you when the signing has been done by the witness and the warrant holder, so it is important to keep checking this page regularly to know when it is your turn to sign. The company will need to sign when you see the status "Issuer signing awaiting Signatures".

    Click on the action button (...) on the far right and select "Review and Sign".

    From here you may notice the 'Configure Signatories' option, this is if you have more than one default signatory (i.e other people can sign the documents). Read more about how to change signatories.
    Screenshot 2020-04-28 at 15.43.28

    (Depending on if you require a witness), you'll then be asked to select a witness or add a witness.

    Selecting add new witness will bring you to the page below where you can enter the personal information of the person you wish to be your witness. When you are done, click "Finish".

    Your witness will receive an email inviting them to log in to Capdesk and sign the warrant agreement.

    When both parties are ready to sign, you will be shown the grant agreement but will not be allowed to see it in full before you select the "Continue Button". If you wish to take a different action (eg. sign later, decline a.o.) you can do so by choosing the relevant option in "More Options".

    Screenshot 2020-04-28 at 16.01.17

    If you clicked continue, you must read the first page of the agreement to ensure all details are correct. Then click 'Start' on the left-hand side.

    Screenshot 2020-04-28 at 16.01.39

    This will take you to the last page of the document, where you'll be required to add an electronic signature indicated by the yellow and red icon shown below:Screenshot 2020-04-28 at 16.02.08

    To sign, click on the icon. This will automatically offer you two options of a virtual signature to choose from. Click on the one you prefer and select "Adopt and Sign" to add it to the document.

    To finalise the signing, click on the finish button at the top of your screen: 

    Screenshot 2020-04-28 at 16.02.31

    Now that all parties have signed, the grant issuance is complete. If you navigate back to your "Online Issuances" tab, you should be able to see that the "Status" section of your grant has changed to "Complete".

    If you would like to view the signed document, click View -> Grant Documents. Here you will find the document which you can download.

    Screenshot 2020-04-28 at 16.15.31


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