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, if you would like to know how to issue warrants, you can do so here.

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 share 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 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 chose 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, please choose the relevant one. From here you will have to input the warrant plan you will like to add onto the agreement (it will appear on the drop down). If it does not appear in the drop down, please create the plan first. 

    Screenshot 2020-04-22 at 16.35.35

    You will need to input a 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 in 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 who 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.

    Screenshot 2020-04-22 at 16.52.33

    After this, you will be asked to upload the document. Please note that there are a number of Capdesk placeholders that needs 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. However, 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:

    Please ensure you have selected the default signatory (the person who will sign documents on behalf of the company). You can learn more about how to do this here.

    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 telling them to sign the agreement. If you would like to view this email and potentially edit it, click Email Templates (under Settings) -> corresponding action button -> View/Edit.

    Screenshot 2021-02-04 Warrant online issuance email template

    2. Executing Grants (for warrant signing) on Capdesk:

    This part of the article covers how to execute grants for warrant signing. 
    The first point of action will be to navigate to the "Online issuances" tab on the warrants page. Then click on the green "Issue Grant Online" button.


    Screenshot 2020-04-28 at 15.04.32


    This will prompt you to select the stakeholder to whom you wish to issue the grant. Select a stakeholder from the recommendations list shown, or start typing a name in the search bar to find the person you're looking for. If the person you're issuing the grant is not already a warrantholder in your company, click the " Or Add New Warrant holder Instead Button" to create their warrantholder profile.

    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 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 drop down. 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 warrantholder) 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 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.


    Right before this stage it may be useful for you to review the email template which will be sent to the grant holder. The grantholder will receive an email telling them to sign the agreement. If you would like to view this email and potentially edit it, click Email Templates (under Settings) -> corresponding action button -> View/Edit.


    20210122 - warrant grant email template

    If you select save draft, this will allow you to view the document before it is sent for signing.

    Screenshot 2020-05-06 at 16.06.59


    Now you have to wait for the grant recipient and their witness (which the grantholder will provide themselves) to sign the grant agreement before you and your own witness can do so too.

    [N.B. please ensure you have selected the default signatory (the person who will sign documents on behalf of the company). You can learn more about how to do this here.]

    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

    If you would like to see the current status of the warrant, you can click on the online issuances tab of the warrants page and then you can see the status. You can filter these to see which ones still need signing and therefore speed up the process. 

    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. It will be on the Companies side to sign the document when you see the status is: 
    "Issuer signing awaiting Signatures"
    From here you can actually configure the signatories incase someone else needs to sign it. See more about changing signatories.

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

    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.

    You will now be shown a reminder that you and your witness needs to be in the same physical location when signing (to render the signing ceremony valid under UK law). Please note that the platform will not let you or your witness sign the document before you are both logged in and found in the same location.


    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 official. 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".

    Finally, if you wish to download the signed warrant agreement in the future, navigate to "Warrant" in the left-hand side menu, and locate the name of the grant holder under "Online Issuances". Click on the "View" button next to their name, on the right-hand side a tab called "Warrant Grant" will open, scroll down to the bottom and you'll find it under "Grant Documents".


    Screenshot 2020-04-28 at 16.15.31


    Thank you for reading this support article, if you are interested to read other articles that relate to managing your account, please see this page of articles:

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