@GoldenFleece and @Shelby59 - no, in this case the default...

@GoldenFleece and @Shelby59 - no, in this case the default conditions have enabled the directors to elect to 'take back' and cancel the shares at zero cost. The result is the employees got out of any obligation to the loan of these shares to them by the company, the shares are cancelled on the register (reverses previous dilution but will have minimal impact).

It's in accordance with the conditions (as @garyjj highlighted) but not a great look. Typically these STI and LTI schemes are in place to incentivise the management to drive the company performance and share price up as high as possible and create themselves a bonus. Clearly it didn't have that effect in this case.