A performance condition upon which the exercise price, vesting or exercisability of an equity instrument depends that is related to the market price (or value) of the entity’s equity instruments (or the equity instruments of another entity in the same group), such as:
- attaining a specified share price or a specified amount of intrinsic value of a share option; or
- achieving a specified target that is based on the market price (or value) of the entity’s equity instruments (or the equity instruments of another entity in the same group) relative to an index of market prices of equity instruments of other entities.
A market condition requires the counterparty to complete a specified period of service (ie a service condition); the service requirement can be explicit or implicit.
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