(1) A scheme must provide for adjustment of the subscription or option price or the number or amount of securities under the scheme not already allotted, in the event of a bonus issue and other circumstances (e.g. rights issue, capital reduction, subdivision or consolidation of shares or distribution).

(2) The adjustment must be made in such a way that a participant will not receive a benefit that a shareholder does not receive.

(3) The issue of securities as consideration for an acquisition will normally not be regarded as a circumstance requiring adjustment.

(4) Adjustments other than on a bonus issue must be confirmed in writing by the company's auditors to be fair and reasonable.