(1) In this section -
'director' and 'employee' have the meanings, respectively, given to them by section 770(1);
'market value' shall be construed in accordance with section 548;
'forfeitable shares' shall be construed in accordance with subsection (3);
'shares' includes stock.
(2) This section applies where -
(a) a director or employee acquires shares (including shares acquired on the exercise of a right to which section 128 applies) in a company as a director or employee of that company or of another company, and
(b) at the time of acquisition, the shares are forfeitable shares.
(3) Subject to subsection (4), for the purposes of this section, shares are forfeitable shares if -
(a) there is a written contract or agreement in place under the terms of which -
(i) there will be a forfeiture of the shares, if certain circumstances arise or do not arise,
(ii) as a result of the forfeiture, the director or employee will cease to have any beneficial interest in the shares, and
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