37(1)The option must take the form of a written agreement between the person granting the option and the employee which meets the following requirements.U.K.
(2)The agreement must state—
(a)the date on which the option is granted;
(b)that it is granted under the provisions of this Schedule;
(c)the number, or maximum number, of shares that may be acquired;
(d)the price (if any) payable by the employee to acquire them, or the method by which that price is to be determined; and
(e)when and how the option may be exercised.
(3)The agreement must set out any conditions, such as performance conditions, affecting the terms or extent of the employee’s entitlement.
[F1(4)Where the shares that may be acquired by the employee are restricted shares, the agreement must contain details of the restrictions.
(5)For the purposes of sub-paragraph (4)—
(a)shares are “restricted shares” if there is any contract, agreement, arrangement or condition which makes provision to which any of subsections (2) to (4) of section 423 (restricted securities) would apply if the references in those subsections to the employment-related securities were to the shares, and
(b)“restrictions” means that provision.]
F1(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Sch. 5 para. 37(4)(5) substituted for Sch. 5 para. 37(4)-(6) (1.9.2003) by Finance Act 2003 (c. 14), Sch. 22 para. 45(3)(4); S.I. 2003/1997, art. 2