# Share Option Plan(s)

> the share option plan(s) of the Company, the terms of which have been approved by an Investor Majority;

**Term:** Share Option Plan(s)  
**Last updated:** 2026-07-29

## Definition

## What Share Option Plan(s) Means in a Contract

Share Option Plan(s), as a defined term, refers to the company's formal arrangements for granting share options to its workforce or advisors. These plans set out who is eligible, how many shares may be issued, the exercise price, vesting schedule, and the circumstances in which options lapse or accelerate. In an investment or shareholders' agreement, the phrase is usually qualified by a requirement that the terms of any such plan have been approved by a specified body, most commonly an investor majority or the board, before the company can adopt or materially amend it.

The purpose of referencing Share Option Plan(s) in a contract is to give investors and existing shareholders visibility and control over how much of the company's equity is set aside for incentive purposes. Because option pools dilute existing holders, investors typically want assurance that new plans, or increases to existing pools, cannot be introduced unilaterally by management or the founders without their consent.

This is closely related to, but distinct from, a [Stock Option Plan](https://www.genieai.co/en-us/template-type/stock-option-plan) or an [Equity Incentive Plan](https://www.genieai.co/en-us/template-type/equity-incentive-plan), which are the underlying documents actually establishing the scheme. The contract definition of Share Option Plan(s) usually points back to those documents and imposes a governance gate on their creation or modification.

## How Share Option Plan(s) Is Defined or Measured

Definitions of Share Option Plan(s) are typically drafted broadly to capture any scheme, whether formal or informal, under which the company grants rights to acquire shares. This can include approved and unapproved plans, growth share plans, or bespoke option agreements entered into outside a formal plan document. Precision matters because a narrow definition might inadvertently exclude a scheme that functions like a share option plan but is labeled differently.

The defining feature in most investment agreements is the approval mechanism attached to the term. Rather than measuring the plan itself in quantitative terms, the contract measures whether the correct consent, an investor majority, board approval, or shareholder resolution, was obtained before the plan came into effect or was amended. This shifts the practical question from.

## Context

### Relevant circumstances

- When a company maintains formal plans for granting share options
- If investor consent is needed before adopting or amending an option plan
- Where the rules governing employee equity awards need to be referenced

### Relevant sectors

- Investment
- Legal Services
- Business Services

## Relevant contract types

- [Stock Option Plan](https://www.genieai.co/en-us/template-type/stock-option-plan)
- [Equity Incentive Plan](https://www.genieai.co/en-us/template-type/equity-incentive-plan)

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