If you have an active grant of call options and you depart the company then the company's ESOP Rules (or Deed) will specify what happens to your options. Check the option rules for the scheme you're a part of to find out what applies to you. A copy of the ESOP Rules can be found under Supporting Documents on your option grant in Orchestra. If not, contact your company ESOP administrator for a copy of the rules.
Some ESOP rules may specify different conditions depending on whether you are a:
- good leaver (you're leaving the company on good terms)
- bad leaver (you're leaving the company on bad terms, eg. being dismissed for breach of employment conditions)
One common scenario for good leavers is:
- unvested options lapse
- vested options have a set time frame in which you may choose to exercise them (eg. 2-3 months from the date of cessation of employment) and if not exercised during that time then they expire and lapse
Lapse: options are removed from the option holder and returned to the company option pool where they are available for reallocation as part of a new grant of options.