ETASSUM47180 - Schedule 4 Company Share Option Plan (CSOP): Supplementary and defined terms: Scheme amendment flowchart

The following process illustrates where amendments to Schedule 4 CSOP scheme may be accepted.

Step 1

Does the amendment take effect from before the date it was made?

  • yes – amendment will not meet the needs of the requirements of schedule 4
  • no – go to step 2

Step 2

Would the amended rules be acceptable as part of a new scheme?

  • yes – go to step 3
  • no – amendment will not meet the needs of the requirements of schedule 4

Step 3

Does the amendment alter the terms of existing options?

  • yes – go to step 4
  • no – amendment will meet the requirements of schedule 4

Step 4

Does the amendment change any of the three fundamental terms – exercise period, number of shares or option price?

  • yes – go to step 5
  • no – amendment may meet the requirements of schedule 4

Step 5

Will the amendment only reduce the exercise period or number of shares, or increase the option price?

  • yes – amendment may meet the requirements of schedule 4
  • no – go to step 6

Step 6

Is the amendment to the exercise period?

  • yes – go to step 7
  • no – will need to be referred to ESSU to consider whether or not the amendment is 'de-minimus'

Step 7

Does the amendment only result in the option holder not ceasing to have a right he previously had?

  • yes – amendment may meet the requirements of schedule 4
  • no – will need to be referred to ESSU to consider whether or not the amendment is 'de-minimus'