Deed of Surrender of Option

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

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. However, the options may prove to be of very little value, the company may want to start a new share incentives programme and therefore wishes to clear out any existing options or there is a sale of the company and part of the sale involves cancelling any existing options as a buyer will wish to avoid a situation where there are outstanding options over shares in the company after acquisition.

Share options can be cancelled for cash or no cash consideration. This template has been drafted based on no consideration and has therefore been drafted as a deed. Should consideration be payable (even nominal consideration), the wording of the template should be adjusted accordingly and as there may be tax and national insurance implications, an accountant or tax specialist will need to be consulted and the appropriate wording added to the template. This is beyond the scope of this template.

Requisite details should be inserted into the highlighted fields or the wording can be adjusted to suit your purposes. Wording in square brackets is optional. If it is required, then the brackets should be deleted and the wording within them retained. If the wording is not required, then it can be deleted.

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Deed of Surrender of Option is part of Corporate Documents. Just £35.00 + VAT provides unlimited downloads from Corporate Documents for 1 year.