Reload feature definition
/What is a Reload Feature?
A reload feature automatically grants additional stock options whenever an option holder exercises previously granted options using an entity's shares to satisfy the exercise price. New stock options granted under this feature have the same expiry date as the old options. The exercise price of the reloaded stock options is set at the market price of the underlying shares on the date when the reload feature is triggered.
Accounting for a Reload Feature
If a stock option contains a reload feature, do not include it in the estimate of the fair value of options granted. Instead, it is to be accounted for as a new option grant.