An individual who is no longer able to exercise his or her rights to acquire securities under an agreement and by virtue of the cessation of those rights is not considered to have transferred or disposed of the rights, and who has received an amount in exchange for the cessation of the rights, is deemed to have disposed of his or her rights at the time the amount was received and to have received the amount as consideration for the disposition. Consequently, the individual is deemed to have received a benefit equal to the amount received, minus the amount he or she paid to acquire the rights.

However, if on more than one occasion the individual received amounts for the cessation of his or her rights, all of the amounts that the individual received previously for the cessation must be subtracted from the amount that the individual is deemed to have paid to acquire the rights in question.