Share Option Deed of Surrender

This template is a short and simple share option cancellation agreement. It documents the surrender of share options where the company has decided to cancel the options.

When option cancellation may be relevant

Employees may have been given share options under, for example, a Company Share Option Plan (CSOP) or as part of an Enterprise Management Incentive (EMI) scheme.

Options may prove to be of very little value, the company may wish to start a new share incentives programme and clear out existing options, or a sale of the company may require existing options to be cancelled to avoid outstanding options remaining after acquisition.

Cancellation with or without consideration

Share options can be cancelled for cash or no cash consideration. This template has been drafted on the basis of no consideration and has therefore been drafted as a deed.

Where consideration is payable (even nominal consideration), the wording should be adjusted accordingly. As there may be tax and National Insurance implications, an accountant or tax specialist will need to be consulted and the appropriate wording added. This is beyond the scope of this template.

Share Option Deed of Surrender is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.