Grant termination means that the vesting of stock options will be stopped.
In the case of a Good Leaver*, all vested options remain with the Stakeholder, and all unvested options will be returned to the share pool.
In the case of a Bad Leaver**, all options (both vested and unvested) will be returned to the share pool.
* Good leaver – an option holder whose employment is terminated under acceptable to the company circumstances, such as retirement, disability, or death. Usually, in such cases, the option holder is entitled to all vested options, but all unvested share options shall be forfeited.
** Bad leaver – an option holder whose employment or service agreement is terminated under unfavourable circumstances, typically because its acts or combinations of acts are material breaches of laws or contracts with the company. Usually, in such cases, the share options terminate completely and entirely, even with respect to the vested portion of the share options.