Terms of option to be agreed in writing
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.
(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.
(4)The agreement must contain details of any restrictions attaching to the shares.
(5)Where the shares that may be acquired by the employee are subject to risk of forfeiture, the agreement must contain details of the conditions.
(6)For the purposes of sub-paragraph (5) shares are “subject to risk of forfeiture” if the interest that may be acquired is only conditional within the meaning of section 424 (conditional interests in shares).