¶¶Òõ¶ÌÊÓÆµ

Stock Option Cancellation Agreement Template for England and Wales

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Stock Option Cancellation Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Stock Option Cancellation Agreement

"I need a Stock Option Cancellation Agreement for our Series B startup to cancel unvested options for 5 departing employees, with a nominal consideration of £1 each, to be effective from March 1, 2025."

Document background
The Stock Option Cancellation Agreement is essential when companies need to terminate existing stock option arrangements, whether due to corporate restructuring, employee departure, or strategic changes. Under English and Welsh law, this document provides a clear framework for unwinding option positions, addressing tax implications, and ensuring regulatory compliance. It typically includes details of the original grant, cancellation terms, consideration (if any), and releases, while adhering to UK company law and financial services regulations.
Suggested Sections

1. Parties: Identifies the company and option holder(s)

2. Background: Details of original option grant and reason for cancellation

3. Definitions: Key terms used throughout the agreement

4. Cancellation: Terms of option cancellation and effective date

5. Consideration: Details of any payment or compensation for cancellation

6. Release and Waiver: Mutual release of rights and obligations under original option agreement

7. Tax Obligations: Responsibility for taxes arising from cancellation

Optional Sections

1. Confidentiality: Provisions for maintaining confidentiality of the agreement terms and sensitive information

2. Non-Competition: Restrictions on future activities when cancellation is part of employment termination

3. Continuing Obligations: Specification of any surviving obligations from the original agreement

Suggested Schedules

1. Original Option Agreement: Copy of the agreement being cancelled

2. Calculation of Consideration: Detailed calculation methodology for any payment being made

3. Tax Treatment Summary: Overview of tax implications and treatment of the cancellation

4. Board Resolution: Copy of board approval authorizing the cancellation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


























Clauses




















Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company operations, including share capital, share options, directors' duties, and company record-keeping requirements

Employment Rights Act 1996: Legislation protecting employee rights and governing employment terms, relevant when stock options are part of employment compensation

Financial Services and Markets Act 2000: Regulatory framework for financial services, including securities regulations, financial promotion rules, and market abuse provisions

Income Tax (Earnings and Pensions) Act 2003: Tax legislation governing the treatment of employment-related securities, including tax implications of cancelling options and reporting requirements

Corporation Tax Act 2009: Legislative framework for corporate taxation, including tax treatment of option cancellations and deductibility of related payments

UK Listing Rules and Market Abuse Regulation: Regulatory requirements for listed companies, including insider dealing provisions and market notification obligations

Data Protection Act 2018 and UK GDPR: Privacy and data protection legislation governing the handling of personal data in contractual relationships

Common Law Contract Principles: Fundamental legal principles governing contract formation, consideration, and capacity to contract under English law

Articles of Association: Company's constitutional document containing provisions related to share capital, option schemes, and corporate authority requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Stock Cancellation Agreement

find out more

Share Repurchase Agreement

find out more

Share Buyback Contract

find out more

Phantom Unit Award Agreement

find out more

Contract For Shares Of A Company

find out more

Buffer Stock Agreement

find out more

Stock Rental Agreement

A legally binding agreement under English and Welsh law governing the temporary transfer of stocks between parties, including terms, conditions, and obligations.

find out more

Share Purchase Agreement Short Form

A simplified legal agreement for share transfers in private companies, governed by English and Welsh law.

find out more

Founder Repurchase Agreement

An English law agreement governing the repurchase of shares from a company founder by the company.

find out more

Simple Stock Purchase Agreement Between Shareholders

An English law agreement governing the sale and purchase of shares between shareholders in a private company.

find out more

Stock Pledge And Security Agreement

An English law agreement creating security over shares in favor of a secured party, establishing terms for share pledges and enforcement rights.

find out more

Stock Surrender Agreement

A legal agreement under English and Welsh law facilitating the voluntary surrender of shares back to a company.

find out more

Right Of First Refusal Stock Purchase Agreement

An English law agreement granting existing shareholders priority rights to purchase shares before third-party sales are permitted.

find out more

Phantom Unit Agreement

An English law agreement establishing synthetic equity units that provide economic benefits of share ownership without transferring actual equity.

find out more

Stock Compensation Agreement

A legal agreement under English and Welsh law governing the grant of company shares or stock options to employees or other eligible recipients.

find out more

Stock Option Exercise Agreement

An English law agreement documenting the exercise of stock options and conversion into shares.

find out more

Startup Employee Equity Agreement

An English law agreement defining terms for employee equity participation in startups, including vesting and exercise conditions.

find out more

Incentive Stock Option Agreement

An English law agreement governing the grant of share options to employees or consultants (typically structured as EMI or CSOP in the UK).

find out more

Stock Award Agreement

A legal agreement under English and Welsh law documenting the terms of company stock awards to employees or contractors.

find out more

Agreement To Transfer Shares Of Private Limited Company

A legally binding agreement under English and Welsh law for transferring shares in a private limited company between parties.

find out more

Share Block Sale Agreement

A legal agreement under English and Welsh law facilitating the transfer of a substantial block of shares between parties.

find out more

Stock Warrant Agreement

A legal agreement under English and Welsh law granting rights to purchase company shares at specified terms and conditions.

find out more

Stock Lease Agreement

A legally binding agreement under English and Welsh law governing the temporary transfer of stocks between parties for specified consideration.

find out more

Contract For Sale Of Shares In A Private Company

An English law agreement documenting the sale and transfer of shares in a private company between seller and buyer.

find out more

Share Vesting Agreement

An English law agreement governing the gradual acquisition of company shares over time through a vesting schedule.

find out more

Stock Grant Agreement

An English law agreement documenting the award of company shares to a recipient, including terms, conditions, and vesting requirements.

find out more

Share Purchase Agreement And Shareholders Agreement

An English law agreement governing both share transfer and ongoing shareholder relationships in a company.

find out more

Business Shares Agreement

A legally binding agreement under English and Welsh law governing the transfer or sale of business shares between parties.

find out more

Stock Redemption Agreement

An agreement governed by English and Welsh law that establishes terms for a company to repurchase its own shares from shareholders.

find out more

Stock Option Award Agreement

A legal agreement under English and Welsh law governing the grant of stock options to individuals, specifying terms, conditions, and exercise rights.

find out more

Partnership Share Transfer Agreement

An English law agreement facilitating the transfer of partnership interests between parties, governed by the laws of England and Wales.

find out more

Preferred Stock Purchase Agreement

A legal agreement governed by English and Welsh law for the purchase of preferred shares, establishing investor rights and company obligations.

find out more

Stock Option Cancellation Agreement

An English law agreement that documents the cancellation of stock options and settles related rights and obligations between parties.

find out more

Share Ownership Agreement

A legally binding agreement under English and Welsh law that governs the ownership, transfer, and management of company shares.

find out more

Share Cancellation Agreement

An English law agreement documenting the terms and conditions for cancelling shares in a company.

find out more

Phantom Stock Agreement

An English law agreement granting synthetic equity rights that mirror stock ownership benefits without issuing actual shares.

find out more

Share Buyout Agreement

An English law agreement governing the purchase of shares by a company from its existing shareholders.

find out more

Share Issue Agreement

An English law agreement documenting the terms and conditions for issuing new shares in a company to subscribers.

find out more

Share Contribution Agreement

An English law agreement governing the contribution of shares from a shareholder to a company.

find out more

Restricted Stock Agreement

An English law agreement governing the grant of restricted company shares to employees or service providers, subject to vesting conditions and transfer restrictions.

find out more

Share Exchange Agreement

A legally binding agreement under English and Welsh law facilitating the exchange of shares between parties, typically used in corporate restructuring or M&A transactions.

find out more

Share Swap Agreement

An English law agreement governing the exchange of shares between parties, setting out terms, valuations, and settlement procedures.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

³Ò±ð²Ô¾±±ð’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ³Ò±ð²Ô¾±±ð’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.