Document ID: chunk:federal_register_of_legislation:F2022C00493:reg:59b:p4
Version: federal_register_of_legislation:F2022C00493
Segment Type: reg
Provision Reference: reg 59B (pt 4/25)
Character Range: 66445–69949

of the service period; and
                                                 (b) may start before the service period on the condition that the commencement date of the performance target is not substantially before the commencement of the service period.
                                                 A performance target is defined by reference to:
                                                 (a) the entity's own operations (or activities) or the operations or activities of another entity in the same group (ie a non-market condition); or
                                                 (b) the price (or value) of the entity's equity instruments or the equity instruments of another entity in the same group (including shares and share options) (ie a market condition).
                                                 A performance target might relate either to the performance of the entity as a whole or to some part of the entity (or part of the group), such as a division or an individual employee.
reload feature                                   A feature that provides for an automatic grant of additional share options whenever the option holder exercises previously granted options using the entity's shares, rather than cash, to satisfy the exercise price.
reload option                                    A new share option granted when a share is used to satisfy the exercise price of a previous share option.
service condition                                A vesting condition that requires the counterparty to complete a specified period of service during which services are provided to the entity. If the counterparty, regardless of the reason, ceases to provide service during the vesting period, it has failed to satisfy the condition. A service condition does not require a performance target to be met.
share-based payment arrangement                  An agreement between the entity (or another group[7]  entity or any shareholder of any group entity) and another party (including an employee) that entitles the other party to receive
                                                 (a) cash or other assets of the entity for amounts that are based on the price (or value) of equity instruments (including shares or share options) of the entity or another group entity, or
                                                 (b) equity instruments (including shares or share options) of the entity or another group entity,
                                                 provided the specified vesting conditions, if any, are met.
share-based payment transaction                  A transaction in which the entity
                                                 (a) receives goods or services from the supplier of those goods or services (including an employee) in a share-based payment arrangement, or
                                                 (b) incurs an obligation to settle the transaction with the supplier in a share-based payment arrangement when another group entity receives those goods or services.
share option                                     A contract that gives the holder the right, but not the obligation, to subscribe to the entity's shares at a fixed or determinable price for a specified period of time.
vest                                             To become an entitlement. Under a share-based payment arrangement, a counterparty's right to receive cash, other assets or equity instruments of the entity vests when the counterparty's