Income Tax (Earnings and Pensions) Act 2003

This section has no associated Explanatory Notes

[F121A(1)The following terms of a share option which is granted under the scheme must be stated at the time the option is granted—U.K.

(a)the price at which shares may be acquired by the exercise of the option,

(b)the number and description of the shares which may be acquired by the exercise of the option,

(c)the restrictions to which those shares may be subject,

(d)the times at which the option may be exercised (in whole or in part), and

(e)the circumstances under which the option will lapse or be cancelled (in whole or in part), including any conditions to which the exercise of the option is subject (in whole or in part).

(2)Terms stated as required by sub-paragraph (1) may be varied after the grant of the option, but—

(a)in the case of the price, only as provided for in paragraph 22,

(b)in the case of the number or description of shares, only as provided for in paragraph 22 or by way of a mechanism which is stated at the time the option is granted, and

(c)in any other case, only by way of a mechanism which is stated at the time the option is granted.

(3)Any mechanism stated for the purposes of sub-paragraph (2)(b) or (c) must be applied in a way that is fair and reasonable.

(4)Terms stated as required by sub-paragraph (1), and any mechanism stated for the purposes of sub-paragraph (2)(b) or (c), must be notified to the participant as soon as practicable after the grant of the option.]

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