Before you can record a grant, you will need to:
- Enable the relevant equity add-on - Once enabled, you should find it under 'Equity Awards' and click on the equity page that you would like to record a grant for.
- Create an incentive pool / add an authorisation
- Add an equity plan -This is the plan the equity will be issued from.
On Capdesk, you can issue option grants for your stakeholders in two ways:
- Offline option grant issuance - an offline issuance can be used when the signing process has taken place or will be signed outside Capdesk
- Online option grant issuance - an online issuance can be used when you want to get the agreement issued and signed via Capdesk. a) How to sign the option grant agreement b) Access and download signed agreement
1. Offline option grant issuance
|n.b. You can find a step by step interactive product demo tour here.|
Go to Options (left-side menu) then 'Grants' tab and click the 'Issue grant' button, then 'Register Offline Issuance'.
You will then either choose a stakeholder from the pre-existing list (those that are already registered on Capdesk) or select 'Add New Optionholder Instead'. If the latter choice, you will need to enter details of the optionholder (name, email, etc).
After you've chosen or created a stakeholder, you will then need to enter the details of the option grant. Some details are dependent on the equity type.
The details can include:
- Plan - This is the plan of the grant
- Grant date - The date of when the grant was issued (not vesting start date)
- Exercise price (only applicable for options and warrants) - Exercise price per share
- Options (only applicable to option grants)- Number of options granted
- Expires - The date of when the grant expires
- Vesting Schedule
Once you've entered the relevant details, select either the 'Save Draft' or 'Publish and Notify' (if applicable) button.
If the option grant is still in 'Draft' you can edit the grant by clicking on the action button (...) to the right-hand side of the award and then 'Edit'.
If you want to publish option grants that are in a Draft state, you will need to click on Options - Grants - click on the action button (...) - Publish and notify.
Once the option grant has been registered it will appear on the 'Grants' tab as shown below.
For detailed information about the equity grant click on 'View' by the relevant award.
2. Online option grant issuance
Before you can start executing option grants for signing, you will need to:
a) Add the option agreement template on Capdesk. Please note your account will also need to be live to issue and sign agreements on Capdesk.
b) Select the default signatory (the person who will sign documents on behalf of the company)
|Using any of online signing features (share certificates, option grant signing, etc) on Capdesk will, by default, use our DocuSign account and this will cost you £2.50 per document to cover the cost of signing. However, we allow you to log in to your own DocuSign account so there is no additional cost for you.|
Once you have added the option agreement template and selected the signatory, navigate to the left-hand-side menu and select 'Online Issuances' tab on the 'Options' page. Then click on the green 'Issue Grant Online' button.
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 an optionholder in your company, click the 'Or Add New Optionholder Instead' button to create the optionholders' profile.
Once you've selected your optionholder, you'll need to fill out some details on the grant, as shown below.
When you have added all the necessary information, click 'Save Draft' if you want to review and send at a later date or 'Send for Signing'.
|Please note if your option plan pulls shares from an incentive pool, that pool must have enough available shares to cover the options to be granted.|
Now you have to wait for the grant recipient and their witness, (which the grant holder will provide themselves) to sign the grant agreement before you and your own witness can do so too.
You will then be able to see the stage at which your grant is at the moment under 'Status'. You can also filter this section to check any completed, cancelled or in signing option grants.
|Please note, there is a default time limit imposed by DocuSign of 120 days to complete the signing from the day the grant has been issued. If you wish to amend the time limit, please refer to this support guide.|
a) How to sign the option grant agreement
This is also where you will be able to see when it's time for you and your witness to sign the document, so when in the signing process, make sure to check this tab regularly. When the status will turn to 'In Progress Issuer Signing (Awaiting Signature(s))' the designated signatory on behalf of the company will need to sign the document.
Click on the action button '...' on the far right of your name section and select 'Review and Sign'
You'll then be asked to select a witness if required.
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.
Your witness will receive an email inviting them to log in to Capdesk and sign the option agreement.
When both parties are ready to sign, you will be shown the grant agreement.
You must read the agreement to ensure all details are correct. Then click 'Start' on the left-hand side.
This will take you to the relevant page of the document, where you'll be required to add an electronic signature indicated by the yellow and black icon shown below:
To sign, click on the icon. This will automatically sign the agreement.
To finalise the signing, select the 'Finish' button at the top of your screen.
Now that all parties have signed, the grant issuance is complete and issued. 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 'Completed'.
b) Access and download signed agreement
Finally, if you wish to download the signed option agreement, navigate to 'Options' on 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 'Option Grant' will open, scroll down to the bottom and you'll find it under 'Grant Documents'.