An agreement between the entity or another group entity or any shareholder of the group entity and another party (including an employee) that entitles the other party to receive:

1. 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
2. equity instruments (including shares or share options) of the entity or another group entity, provided the specified vesting conditions, if any, are met.

(According to International Accounting Standards IFRS 2)