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Stock Option Cancellation Agreement
I need a Stock Option Cancellation Agreement under Danish law for cancelling unvested options of our departing CTO, who holds 10,000 options granted in January 2025, with no consideration being paid for the cancellation.
1. Parties: Identification of the option holder and the company
2. Background: Context of the original option grant and reason for cancellation
3. Definitions: Key terms used in the agreement including 'Options', 'Original Grant Date', 'Exercise Price', etc.
4. Cancellation of Options: Clear statement of which options are being cancelled and the effective date
5. Consideration: Details of any payment or other consideration for the cancellation
6. Tax Matters: Handling of tax obligations and responsibilities related to the cancellation
7. Representations and Warranties: Statements by both parties about their authority and understanding
8. Mutual Release: Release of claims related to the cancelled options
9. Governing Law and Jurisdiction: Specification of Danish law and jurisdiction
10. Counterparts and Execution: Provisions for signing and executing the agreement
1. Surviving Employment Terms: Used when the option holder remains employed - confirms continuation of employment terms
2. Multiple Tranches: Used when only some options are being cancelled while others remain
3. Confidentiality: Used when parties want to keep the cancellation terms confidential
4. Board Approval: Used when board approval is required for the cancellation
5. Market Abuse Regulations: Required for listed companies to address insider trading concerns
6. Future Options: Used to address eligibility for future option grants
1. Schedule 1 - Cancelled Options Details: Detailed description of the options being cancelled including grant dates, vesting schedules, and exercise prices
2. Schedule 2 - Consideration Calculation: If applicable, methodology for calculating any consideration paid for the cancellation
3. Schedule 3 - Tax Calculations: Details of tax implications and calculations
4. Appendix A - Copy of Original Option Agreement: Reference copy of the original option grant agreement
5. Appendix B - Board Resolution: If applicable, copy of board resolution approving the cancellation
Authors
Options
Original Option Agreement
Company
Option Holder
Grant Date
Cancellation Date
Exercise Price
Option Shares
Consideration
Business Day
Board
Articles of Association
Confidential Information
Danish Companies Act
Danish Stock Options Act
Original Vesting Schedule
Share Capital
Option Plan
Encumbrance
Group
Subsidiary
Parent Company
Tax Authority
Market Abuse Regulation
Applicable Law
Working Day
Representatives
Effective Date
Outstanding Options
Cancelled Options
Remaining Options
Vested Options
Unvested Options
Share Price
Fair Market Value
Consideration
Tax
Representations and Warranties
Release and Waiver
Acknowledgments
Further Assurance
Confidentiality
Data Protection
Assignment
Amendment
Severability
Entire Agreement
Notices
Third Party Rights
Force Majeure
Governing Law
Jurisdiction
Compliance
Authority
Board Approval
Market Abuse
Costs
Counterparts
Surviving Provisions
Electronic Execution
Technology
Financial Services
Professional Services
Manufacturing
Biotechnology
Retail
Energy
Telecommunications
Healthcare
Software
Consulting
Start-ups
Legal
Human Resources
Finance
Tax
Corporate Governance
Executive Management
Board Secretariat
Compensation & Benefits
Corporate Development
Chief Executive Officer
Chief Financial Officer
General Counsel
HR Director
Compensation Manager
Corporate Secretary
Legal Counsel
Finance Director
Board Member
Stock Plan Administrator
Equity Compensation Specialist
HR Business Partner
Tax Manager
Company Director
Executive Compensation Specialist
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