Process terminations and related transactions
This section explains how to create termination through Holders screen in Diligent Equity
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In the Holders screen, select the Optionee's name in the shareholder table or type the name in the shareholder search box and then select it.
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In the Personal Information tab, check the Terminated box and enter the termination of service date.
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After you have checked Employment Terminated, Termination tab will appeared on the left pane and complete the steps listed below.
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Start date, End Date and Total work time: These fields populate automatically.
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Time to exercise – This field will pre-populate with a number based on your Option Plan Settings. You can enter a different value to this field as needed.
All grants that have been awarded to this employee will be listed in the Termination Tab. You will want to process the cancellation of options here.
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(IMPORTANT) Check Cancel unvested options – these shares will be cancelled on the termination date.
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(IMPORTANT) Check Cancel all un-exercised options – automatically cancel vested shares that are still unexercised at the end of the post-termination exercise period here.
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Exercise options – exercise shares that are vested on termination here.
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Repurchase shares – if the option had an early exercise provision, repurchase unvested exercised shares here.
Note
You do not need to process an Exercise Transaction at the same time as a Termination. If the employee exercises their options at another time/date you can add these details later.
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Repeat Set 3 for all Grants that have been awarded for this terminated employee. Once you have checked both the Cancel unvested options and Cancel all un-exercised boxes, select Close to complete the Termination process.
Note
After the exercise period has ended, the vested, unexercised options will be automatically cancelled and return to the pool.
