Rule 2 - Definitions. - Unlisted Companies (Issue of Sweat Equity Shares) Rules, 2003

Definitions. 02. In these rules, unless otherwise defined, (i) "Asset" means a resource controlled by the company and from which future economic benefits are expected to flow to the company; (ii) "employee" means: (a) a permanent employee of the company working in India or out of India; or (b) a director of the company, employed as a whole time director or executive director of a company; (iii) "intangible Asset" means an identifiable non-monetary asset, without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; (iv) "share price" means price of a share on a given date arrived on the net worth basis; (v) "value addition" means anticipated economic benefits derived by the enterprise from expert and/or professional for providing know-how or making available rights in the nature of intellectual property rights, by such person to whom sweat equity is issued for which the consideration is not paid or included in (a) the normal remuneration payable under the contract of employment, in the case of an employee and/or; (b) monetary consideration payable under any other contract, in the case of non-employee.