Document:

Exhibit 10.13

 

***Text Omitted and Filed Separately with the Securities and Exchange Commission.

Confidential Treatment Requested under 17 C.F.R. Sections 200.80(b)(4) and 230.406

 

SERVICES AGREEMENT

 

This Services Agreement (the “Agreement”) dated as of December 13, 2012 (the “Effective Date”) is by and among ADAPTIMMUNE LIMITED (“Adaptimmune”), a limited company registered in England and Wales having its principal office at 57c Milton Park, Abingdon, Oxon OX14 4RX, United Kingdom, ADAPTIMMUNE, LLC (“Adaptimmune LLC”), a Delaware limited liability company having its principal office at University City Science Center, 3711 Market Street, 6th Floor, Philadelphia, PA  19104 (Adaptimmune and Adaptimmune LLC jointly and severally, the “Client”) and PROGENITOR CELL THERAPY, LLC, a Delaware limited liability company having its principal office at 4 Pearl Court, Suite C, Allendale, New Jersey 07401 (“PCT”). Each of Client and PCT are referred to herein a “Party” and are collectively referred to as the “Parties”.  This Agreement incorporates by reference the terms and conditions set forth in Attachment B (“Attachment B”) attached hereto and made a part hereof.  Capitalized terms not otherwise defined herein will have the meaning set forth in Attachment B.

 

DESCRIPTION AND SCOPE OF WORK

 

Client is developing products containing engineered T cell receptors (“TCRs”) such that T cells have been transduced with ***

 

.  While this Agreement currently and specifically pertains to the NY-ESO TCR, it is the intention of the Parties that additional products may be manufactured under either this Agreement pursuant to the execution of a Program Amendment Order or other writing or the Parties agreeing to execute a separate services agreement addressing such additional product(s).

 

The initial program under this Services Agreement contemplates Adaptimmune’s NYESO-1c259-T cell therapy product (the “Product”) for the trials submitted under Client’s Investigational New Drug application IND 14603 (“IND”) currently on file with FDA.  In connection with Adaptimmune’s U. S. trials under the IND, PCT intends to transfer and qualify Adaptimmune’s GMP manufacturing process (the “Client Manufacturing Process”) to and at one or more of PCT’s Facilities (as defined in Attachment B). Unless the Parties otherwise agree in writing, the below described services (the “Services”) will be performed at PCT’s Facility in Allendale, New Jersey.                                                .

 

REQUIREMENTS FOR SERVICE

 

As more particularly described in the below stages, Client requires the following Services:

 

(A)       ***

 

.

 

(B)       ***

 

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.

 

(C)       ***

 

.

 

(D)       ***                                                                             .

 

(E)        ***

 

.

 

(F)         ***                                                               .

 

Client acknowledges and agrees that PCT’s performance of the Services set forth in this Agreement and the various Stages (as defined below) is subject to Client fully cooperating with PCT to enable PCT to timely perform the Services described herein which cooperation includes, but is not limited to, Client providing PCT, in a timely manner, the following (the “Client Preconditions”):

 

(1)         ***                                                                   :

 

(i)             ***                                                                   ;

(ii)          ***                                                                     ;

(iii)       ***

;

(iv)      ***

;

(v)         ***                                               ;

(vi)      ***                                                  ;

(vii)         ***                                   ;

(viii)            ***.

 

(2)         ***                                                                                    .

 

(3)         ***.

 

SCOPE OF WORK

 

PCT will provide Services in various stages (each a “Stage”) as set forth below.  ***                                    .

 

PRE-STAGE SERVICES ***

 

(A)       ***

 

.

 

(B)       ***

 

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.

 

(C)       ***

 

.

 

(D)       ***

 

.

 

(E)        ***

 

.

 

(F)         ***

 

.

 

STAGE 1 —KICK-OFF AND ***

 

During Stage 1, ***

 

. Specifically during Stage 1 PCT will:

 

(A)       ***

 

.

 

(B)       ***

 

.

 

(C)       ***

 

.

 

(D)       ***

 

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.

 

(E)        ***

 

.

 

(F)         ***

 

.

 

(G)       ***

 

.

 

(H)      ***

 

.

 

(I)           ***

 

(i)             ***

 

.

 

(ii)          ***

 

(1)         ***                         ;

(2)         ***                                     ;

(3)         ***                                              ;

(4)         ***

 

;

 

(5)         ***                          ;

(6)         ***                              ;

(7)         ***                                  ;

(8)         ***

(9)         ***                                .

 

(J)           ***

 

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.

 

(K)      ***

 

.

 

DELIVERABLES FOR STAGE 1:  ***

 

(collectively, the “Stage 1 Deliverables”).

 

STAGE 2 —***

 

During Stage 2, ***

 

.  The Stage 2 Services include:

 

(A)       ***

 

.

 

(B)       ***

 

.

 

(C)       ***

 

.

 

(D)       ***

 

.

 

(E)        ***

 

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.

 

DELIVERABLES FOR STAGE 2: ***

 

(collectively the “Stage 2 Deliverables”), ***

 

.

 

STAGE 3 — ***

 

During Stage 3, ***

 

.  The Services provided by PCT in Stage 3 are:

 

(A)       ***

 

.

 

(B)       ***

 

.

 

(C)       ***

 

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.

 

(D)       ***

 

:

 

(i)             ***                                  .

(ii)          ***                                                                 .

(iii)       ***                                                 .

(iv)      ***                                                     .

(v)         ***                                                         .

(vi)      ***                                                                    .

(vii)   ***                                                                     .

(viii)      ***                                                                    .

(ix)            ***                                                              .

(x)               ***                                     .

(xi)            ***                                                          .

(xii)         ***                                    .

(xiii)      ***                                                           .

(xiv)     ***                                                                      .

 

(E)        ***

 

.

 

(F)         ***                                                              .

 

(G)       ***

 

.

 

(H)      ***

 

.

 

(I)           ***

 

.

 

(J)           ***

 

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.

 

(K)      ***

 

.

 

(L)        ***

 

.

 

(M)          ***

 

.

 

(N)       ***

 

:

 

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(i)             ***

 

.

 

(ii)          ***

 

.

 

(iii)       ***

 

.

 

(iv)      ***

 

.

 

(v)         ***

 

.

 

***

 

DELIVERABLES FOR STAGE 3:  ***

 

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.

 

STAGE 4 — ***

 

(A)       ***

 

.

 

(B)       Definitions.

 

***

 

.

 

***

 

.

 

“Business Day” means any day at PCT’s Facility other than a Saturday, Sunday, the Friday after Thanksgiving or state and federal holidays.

 

“Business Hours” are (1) 8:30 a.m. — 5:00 p.m. on any Business Day.

 

***

 

***

 

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(C)       Stage 4 Services.

 

(i)             ***

 

(ii)          ***

 

(iii)       ***

 

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(iv)      ***

 

(v)         ***

 

(vi)      ***

 

(vii)   ***

 

(viii)            ***

 

(ix)      ***

 

(x)         ***

 

(xi)      ***

 

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DELIVERABLES FOR STAGE 4.  ***

 

STAGE 5 —***

 

***

 

GENERAL PROVISIONS APPLICABLE TO VARIOUS STAGES

 

(A)       ***

 

(B)       Client agrees that it will use commercially reasonable efforts to fully and timely cooperate with PCT in enabling PCT to perform its obligations under the various Stages of this Agreement, including but not limited to using commercially reasonable efforts to, as Client elects, review and approve all DELIVERABLES FOR EACH STAGE.

 

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(C)       ***

 

ESTIMATED DURATION OF VARIOUS ABOVE STAGES:  The Parties agree that the timeframes for completion of the various below Stages are estimates based on (a) the assumptions set forth in this Agreement, (b) the Client Preconditions being satisfied, and (c) the Client fully cooperating with PCT in connection with PCT’s performance of the Services set forth in this Agreement, including but not limited to, Client being responsive to PCT and providing responses in an expeditious manner as well as causing appropriate ***  personnel to be available to enable PCT personnel to observe and have explained ***                                                        .  The Parties acknowledge that if such assumptions are not correct, there is a delay in Client satisfying the Client Preconditions or Client is either non-responsive or if responsive is not responsive in an expeditious manner, the timeframes set forth below for PCT’s completion of the various Stages (and the related Services) may be affected and delay bringing the Product into production and, therefore, materially adversely affect the conduct of Client’s trial plans.  PCT will advise Client if it becomes aware that an assumption is not correct and/or that Client Preconditions remain unsatisfied and/or if Client has not been responsive and/or is not responsive in a timely manner to PCT requests and any of the preceding has the potential of affecting the timeframes below.  ***

 

                                               PCT with the full and timely cooperation of the Client, including the satisfaction of Client Preconditions, will use its commercially reasonable efforts to complete the Stages within the contemplated time periods.  ***

 

(A)       Pre-Stage Services ***.  ***

 

(B)       Stage 1 ***

 

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(C)       Stage 2 ***

 

(D)       Stage 3 ***

 

(E)        Stage 4 ***

 

(F)         Stage 5 ***

 

FEES FOR VARIOUS STAGES. As consideration for PCT’s performance of the Services set forth in the Stages above and in addition to the reimbursable amounts payable by Client to PCT pursuant to Section 4(b) of Attachment B and subject to the terms of this Agreement (including Attachment B), Client will pay to PCT a fee (the “Fee”) for the performance of each Stage as provided below:

 

(A)       Pre-Stage Services (Observation of Client Manufacturing Process at Observation Site)                                                                                                .

 

(i)             Client will pay for the Pre-Stage Services provided by PCT ***

 

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(ii)          PCT will, ***            provide invoices to Adaptimmune for Expenses ***

 

(B)       Stage 1 ***                     .  $*** payable by Client ***                                            .

 

(C)       Stage 2 ***                          .  $***                     payable by Client as follows:

 

(i)             ***

 

(ii)          ***

 

(D)       Stage 3 ***                                               .  $*** payable by Client as follows:

 

(i)             ***

 

(ii)          ***

 

(iii)       ***

 

(iv)      ***

 

(E)        Stage 4 ***                      .

 

(i)             *** :

 

(1)         As consideration for PCT providing the ***      , ***

 

                              , Client shall pay PCT a ***

 

(2)         ***

 

(3)         ***

 

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(ii)          ***                        If Client properly requests ***   and/or  ***   and PCT commences such ***             , as applicable, Client will pay PCT a fee for each ***                             .  The ***                               is dependent upon the ***                         then in existence and the dollar amount of the applicable ***                                                         .  PCT will invoice Adaptimmune for each ***                                     which PCT commences.

 

(iii)       ***

 

(F)         Stage 5 ***          . $***payable by Client as follows:

 

(i)             ***

 

(ii)          ***

 

***

 

The various Fees are payable by Client as provided above and the applicable Stage Fee ***

 

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***

 

MISCELLANEOUS:

 

(1)         The Point of Contact at Client for PCT is ***                               , or any other individual designated in writing from Client to PCT.  Client’s Point of Contact shall have responsibility over all matters relating to the performance of the Services on behalf of both Adaptimmune and Adaptimmune LLC without PCT having any responsibility to communicate with and/or contact any other person at either Client.  PCT may deal with Client’s Point of Contact as to a particular matter or concern relating to either Client, provided that invoicing shall be delivered to Adaptimmune.  The Client Point of Contract has sole responsibility for keeping both Clients informed of all matters which PCT has contacted the Point of Contact.  In the event of PCT’s receipt of conflicting notices/communications from the Client, PCT shall rely on the notice or communication received from Client’s Point of Contact (or if not from the Client’s Point of Contact, then Adaptimmune).

(2)         All communications between PCT and the Clients shall be addressed to or routed through each Party’s Point of Contact (in the case of the Clients, PCT shall endeavor to address any communication to each Client, provided, however, failure to provide notices to both Clients will not affect the validity of PCT’s communication to the Clients if PCT’s communication was addressed to or routed through Client’s Point of Contract).

(3)         The terms and conditions set forth in Attachment B attached hereto are incorporated herein by reference in their entirety, shall be deemed to be a part hereof to the same extent as if such terms and conditions had been set forth in full herein and by executing this Agreement Client acknowledges that it has read Attachment B and that the terms and provisions of Attachment B are an integral part of this Agreement.

 

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NO FURTHER TEXT ON THIS PAGE — SIGNATURE PAGE FOLLOWS

 

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This AGREEMENT has been duly executed by the Parties as of the Effective Date.

 

 

	
PROGENITOR CELL THERAPY, LLC
    	
 
    	
ADAPTIMMUNE LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ illegible
    	
 
    	
By:
    	
/s/ Helen K. Taytan-Martin
    
	
Name:
    	
 
    	
Name: Helen K. Taytan-Martin
    
	
Title:
    	
 
    	
Title: Chief Operating Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ADAPTIMMUNE, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Gwendolyn Binder
    
	
 
    	
 
    	
Name: /s Gwendolyn Binder
    
	
 
    	
 
    	
Title: Executive VP
    

 

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ATTACHMENT A

 

LIST OF ***

 

	
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Available ***
    
	
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ATTACHMENT B

 

TERMS AND CONDITIONS

 

Terms not defined herein have the meaning in the Agreement.

 

1.              Services. Client has approved the services set forth in the Agreement. PCT’s performance of Services is based on information provided to PCT. Timelines and cost figures are estimates made by PCT based upon such information and are not guarantees that the services can be performed within such estimates. Services, time durations and fees may need to be adjusted pursuant to a document (a “Program Amendment Order”) ***                                     . No Program Amendment Order shall be effective unless executed by both Parties. ****             .  Nothing in this Agreement shall be interpreted as a requirements contract; Client shall have the right to manufacture Product itself or utilizing one or more third parties.

 

2.              Conduct of Services to be Performed.

 

a.  Subject to Section 11(a)(ii) and 11(b) below, PCT will comply, in all material respects, with all United States laws and regulations of any state, federal or local governmental or regulatory agency (“Regulatory Agency”) that governs the Services (the “Applicable Laws”) including without limitation those concerning current Good Manufacturing Practice (“GMP”) regulations, as set forth in the U.S. Code of Federal Regulations Title 21 (21 C.F.R. §§ 210 and 211) and state and federal laws and regulations ***

 

.

 

b.  PCT shall perform the services at one or more of PCT’s facilities located in the United States, as determined by PCT and Client (the “Facilities”).

 

c.   ***                                         , the Parties will negotiate in good faith to execute a document (a “Quality Agreement”) setting forth the (i) responsibilities of each Party’s personnel in relation to quality assurance matters and (ii) responsibilities for material compliance with Applicable Laws, including GMP as appropriate. Failure to execute a Quality Agreement will not be a default nor be the basis of a termination of the Agreement. If there is a discrepancy between the Quality Agreement and Agreement, the Agreement shall control.

 

d.  Unless otherwise provided in the Agreement, PCT’s designated point of contact (the “Point of Contact”) at PCT for Client is ***                                              or any other individual designated in writing from PCT to Client.

 

e.   The Points of Contact will coordinate performance of Services with one another. Communications regarding the conduct of Services shall be addressed to or routed through each Party’s Point of Contact.

 

f.    Client will provide PCT with sufficient amounts of product and materials with which to perform Services to the extent specifically identified in the Agreement and/or applicable SOPs as being provided by Client, as well as all documentation and other data as may be available to apprise PCT of the stability of such product and materials, describe process characteristics, processing, and proper storage and safety requirements.

 

g.   No breach of the Agreement exists if a Party fails to fulfill its obligation due to the action or inaction by (i) the other Party or (ii) any person or entity, ***

 

h.  ***                                    PCT may subcontract the performance of certain Services related obligations of PCT pursuant to the Agreement to a third party including an Affiliate of PCT or a qualified non-Affiliate third party; provided that such third party performs those Services in a manner consistent with the terms and conditions of the Agreement.  ***

 

.  Notwithstanding anything to the contrary in this paragraph, PCT is not required to obtain prior written consent for use of subcontractors who are generally used by PCT to maintain and operate PCT’s Facility or provide services, ***              that are generally applicable to services provided to other clients of PCT.

 

i.      PCT will keep complete and accurate Records (as defined below).  Records will be available for inspection, examination and copying by or on behalf of Client during Business Hours upon reasonable notice provided by Client to PCT.  Records will be retained by PCT as required by Applicable Laws and the Quality Agreement.  ***

 

Subject to the need to retain Records pursuant to Applicable Laws or for insurance purposes PCT, at Client’s direction and written instruction and at Client’s cost and expense, will dispose of the Records, provided, further that PCT may retain one (1) copy of such Records as evidence of PCT’s obligations under the Agreement ***

 

***                           Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.

 

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j.     All materials provided by or on behalf of Client to PCT or generated by PCT in connection with the Agreement, including without limitation all apheresis and Product (collectively “Materials”), shall be used by PCT only as necessary to perform the Services in accordance with the Agreement.  ***

 

Upon completion or termination of the Services, PCT shall, at Client’s cost and expense, return any unused Materials to Client or its designee or destroy such Materials, as directed by Client. ***

 

3.              Defective Product. ***

 

Client shall notify PCT in writing of any Product which has not been manufactured, tested, packaged, labeled, quality control tested, released, stored or shipped in compliance with GMP and/or in accordance with the Manufacturing Process for such Product or failed to satisfy Product release criteria (“Defective Product”) within ***

 

If a dispute as to whether product is a Defective Product exists, either Party may request an investigation to determine whether a product is a Defective Product. ***

 

If a Defective Product ***

 

4.              Payment for Services, Other Costs.

 

a.  The amount and timing of payments are set forth in the Agreement and all amounts are payable in United States Dollars.

 

b.  Client shall pay and PCT will separately invoice Adaptimmune for all ***        costs and expenses incurred by PCT in performing the Services, including, but not limited to:

 

(i)                                     ***

 

(ii)                                  ***

 

(iii)                               ***

 

(iv)                              ***

 

(v)                                 ***

 

(vi)                              ***

 

(vii)                           ***

 

(viii)                        ***

 

(ix)                              ***

 

(x)                                 ***

 

(xi)                              ***

 

(xii)                           ***

 

(xiii)                        ***

 

(xiv)                       ***

 

(xv)                          ***

 

(xvi)                       ***

 

The costs associated for clauses (vii) and (ix) through (xvi) immediately above, if not separately provided in a Program Amendment Order or writing will be invoiced as an Additional Service as defined below.

 

c.   In connection with the above ***

 

.

 

d.  Except for any payments due on the Effective Date or payments that are due on the commencement of a particular Stage or prior to the commencement of a particular Stage milestone which are payable as provided in the Agreement, payments are due no later ***

 

. Payments which remain unpaid after the due date accrue interest at the rate of ***

 

e.   If a Quality Agreement does not exist or does not address the disposal of product, Client is responsible for such reasonable costs.

 

f.    Payments and Fees ***

 

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5.              Confidential Information.

 

a.  “Confidential Information” is information received by one Party (the “Receiving Party”) from or on behalf of the other Party (the “Disclosing Party”) ***

 

Confidential Information includes any and all non-public scientific, technical, financial, regulatory or business information, or data or trade secrets in whatever form (written, oral or visual) that is furnished or made available by or on behalf of the Disclosing Party to the Receiving Party or developed by either Party under the Agreement.  ***

 

Confidential Information does not include information which (i) is or becomes a part of the public domain through no act or omission of the Receiving Party, (ii) is or was in the Receiving Party’s lawful possession prior to the disclosure by or on behalf of the Disclosing Party, (iii) is disclosed to the Receiving Party by a third party entitled to disclose such Confidential Information other than disclosure on behalf of the Disclosing Party, or (iv) was independently developed by the Receiving Party without use of or access or reference to the Confidential Information of the Disclosing Party.

 

b.  Receiving Party may disclose Confidential Information to (i) ***

 

If disclosure is requested by legal process, the Receiving Party will make reasonable efforts to notify the Disclosing Party prior to disclosure to permit Disclosing Party to oppose such disclosure or seek confidential treatment, at Disclosing Party’s cost by appropriate legal action, ***

 

.  If Receiving Party becomes obligated to disclose such Confidential Information in any legal or administrative proceeding ***

 

then Disclosing Party shall reimburse Receiving Party all of Receiving Party’s reasonable out of pocket or other costs and expenses related thereto.

 

c.   Receiving Party shall not use or disclose Disclosing Party’s Confidential Information except to perform obligations or as otherwise expressly permitted under the Agreement.  ***

 

d.  Upon termination of the Agreement, Receiving Party shall, except to the extent otherwise expressly permitted under the Agreement (i) immediately cease using the Confidential Information and (ii) at the written request of Disclosing Party, promptly, at the Disclosing Party’s cost, destroy or return the tangible embodiments of such Confidential Information. Receiving Party may retain one (1) copy of Confidential Information for the purpose of determining its obligations under the Agreement. The confidentiality and non-use obligations shall continue for a period of ***  after the termination of the Agreement.

 

e.   ***

 

f.    ***

 

***                           Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.

 

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6.              Disclosure; Intellectual Property.

 

a.  ***

 

All such documentation and disclosure will constitute Confidential Information within the meaning of section 5(a) of these Terms and Conditions.

 

b.  PCT shall retain ownership of all of PCT know-how, processes and procedures ***

 

c.  ***

 

d.  ***

 

e.   ***

 

f.    ***

 

g.   ***

 

h.  ***

 

7.              Relationship of Parties. The Agreement does not create an employer-employee relationship between Client and PCT. Neither Party shall hold itself out as an agent or representative of the other. PCT shall perform the Services as an independent contractor of Client and has complete and exclusive control over its Facilities, equipment, employees and agents. Nothing in the Agreement shall constitute PCT, or anyone furnished or used by PCT in the performance of the Services, as an employee, joint venturer, partner, or servant of Client.

 

***                           Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.

 

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8.              Representations, Warranties and Covenants.

 

a.  General Representations, Warranties and Covenants. Each Party has the necessary right and authority to enter into the Agreement. Neither Party makes any representation, warranty or covenant except as specified in the Agreement or Quality Agreement.

 

b.  Representations, Warranties and Covenants of PCT.

 

(i)                       ***

 

(ii)                    ***

 

(iii)                 ***

 

(iv)                ***

 

(v)                   ***

 

c.                         Representations, Warranties and Covenants of Client.

 

(i)                       Except for those permits, licenses and authorization possessed by PCT, or would ordinarily be expected to be possessed by PCT, and necessary for PCT to perform the Services, Client has all necessary permits, licenses and authorizations with respect to the use, distribution and/or transfer of product which is the subject of the Agreement and to permit PCT to provide Services pursuant to the Agreement, to the extent such permits, licenses and authorizations are necessary with respect to the above.

 

(ii)                    Client is not party to any agreement, instrument or understanding, oral or written, that would conflict with or interfere with PCT’s rendering of Services.

 

(iii)                 Client (a) shall not knowingly infringe upon any U.S. or foreign copyright, patent, trademark, trade secret or other proprietary right, or misappropriate any trade secret of any third party in any manner that would cause any liability, loss or damage to PCT; and (b) has neither assigned nor entered into any agreement assigning or transferring any right, title or interest to any technology or Intellectual Property that would conflict with its obligations under the Agreement.

 

(iv)                Client has the unlimited and unrestricted right to deliver to PCT all documentation, including SOPs, development/qualification/audit reports, Master Production Records and PNSs or has obtained the necessary permission to make such transfer and/or delivery to PCT.

 

(v)                   All products, materials and reagents required for the Services can be sourced and are of a grade/nature/origin acceptable for their intended use in accordance with the Agreement and, as applicable, for human administration according to all Applicable Laws.

 

d.                        ***

 

e.                         ***

 

9.              Duration, Default and Termination.

 

a.                        The Agreement expires as provided in the Agreement or, if silent, on completion of the Services as provided therein. The obligations in Sections ***                          hereof shall survive expiration or termination of the Agreement.

 

b.                        PCT’s default. If PCT defaults with respect to material obligations under the Agreement, Client may notify PCT’s Point of Contact by certified mail, return receipt requested or by internationally recognized express courier (“Written Notice”) of such material default. PCT has ***   from receipt of such Written Notice within which to cure such default. If PCT fails to cure such default as identified in the Written Notice, then the Agreement and Quality Agreement may, at Client’s option, terminate upon delivery to PCT of a Written Notice terminating the Agreement and applicable Quality Agreement. Upon receipt of such Written Notice of termination, PCT shall terminate the Services, ***

 

.

 

c.                         Client’s default. If Client defaults with respect to material obligations under the Agreement, PCT may provide Client’s Point of Contact with Written Notice of such material default. Client has ***  from receipt of such Written Notice by Client’s Point of Contact within

 

***                           Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.

 

5

 

which to cure such default. If Client fails to cure such default as identified in the Written Notice, then, at PCT’s option, the Agreement, Quality Agreement and all other agreement(s) then in existence between the parties may be terminated upon delivery to Client of a Written Notice terminating the same and/or PCT may immediately cease performing Services under the Agreement.

 

d.                        Other Termination Rights. ***

 

e.                         Payments Upon Termination. No later than the date of termination of the Agreement, Client will pay PCT (i) all amounts to be paid through the date of termination plus ***      costs and expenses incurred by PCT ***                 for which Client is liable to reimburse PCT, (ii) ***        , if any, set forth in the Agreement and (iii) ***         costs and expenses for Services which PCT is irrevocably obligated to pay ***

 

.

 

f.                          No default caused by Force Majeure (as defined in Section 15 below) shall constitute a default under the Agreement.

 

g.                         The Agreement may be automatically and immediately terminated by either Party, upon providing Written Notice to the other Party that such termination is the result of the other Party having a liquidator, receiver, manager, or administrator appointed in bankruptcy.

 

h.                        ***

 

10.       Indemnification and Limitation of Liability.

 

a.                        ***

 

b.                        ***

 

c.                         ***

 

d.                        ***

 

e.                         ***

 

f.                          ***

 

g.                         ***

 

11.       Prospective Events.

 

a.                        ***

 

***                           Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.

 

6

 

b.                        ***

 

12.       Regulatory Assistance.

 

a.                        PCT and Client shall permit Regulatory Agencies to conduct inspections of the Facility(ies) where Services are performed and PCT shall cooperate, at Client’s cost ***

 

, with such Regulatory Agencies. Each Party shall give the other prior written notice, to the extent practicable, of such inspections and keep the other Party informed about the progress, results and conclusions of each regulatory inspection. If prior notice is not possible, PCT shall, ***                   inform Client of a regulatory inspection relating to or that may reasonably affect Services under the Agreement.

 

b.                        PCT shall, ***                      , promptly provide to Client copies of correspondence received from any Regulatory Agencies in connection with such inspections or relating to any Product, the Facility (if it relates to or affects the Services and/or Product) or the Manufacturing Process, ***

 

13.       Facility Obligations.

 

a.                        ***                         once during each ***                period, Client may conduct a compliance audit (an “Audit”) at any Facility where Services are performed at a time agreed to by the Parties.

 

b.                        Each Audit shall be at Client’s cost ***                                   .

 

c.                         Additional Audits (an “Additional Audit”) may be requested at the Facility where Services are provided, ***                               and Client pays PCT a ***      Dollar ($***      ) fee prior to such Additional Audit.  ***

 

d.                        ***

 

e.                         ***

 

f.                          ***

 

14.       Insurance.

 

a.                        During the Agreement and ***                   after the termination of the Agreement, each Party shall maintain, at its own expense fully paid insurance coverage for:

 

(i)                       Comprehensive General Liability (including coverage for bodily injury and property damage) ***

 

and

 

***                           Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.

 

7

 

(ii)                    Workers Compensation with limits no less than the minimum statutory amounts under Applicable Laws.

 

b.                        ***

 

c.                         ***

 

d.                        As requested, each Party shall furnish the other a certificate of insurance evidencing the required insurance set forth above, which certificate shall provide that should the policies be cancelled before the expiration date thereof, notice of such cancellation will be delivered to each Party.

 

15.       Force Majeure. Either Party shall be excused from performing its obligations under the Agreement if performance or performance by a person or entity under the control of such Party is delayed or prevented by Force Majeure, provided that such performance shall be excused only to the extent of and during such disability. “Force Majeure” means any cause beyond the reasonable control of the Party ***

 

in question, including, without limitation, governmental actions, wars, riots, terrorism, criminal acts of third parties, civil commotions, fires, floods, earthquakes, epidemics, pandemics, labor disputes (excluding labor disputes involving the work force or any part thereof of the Party in question), embargoes, trade restrictions, acts of God or nature, shortages in supplies as a result of vendor/supplier delays in shipping supplies (provided such shortages are not the result of such Party’s non-payment for such supplies and is otherwise beyond the reasonable control of such Party) and prolonged losses of one or more utilities to the applicable Facility(ies). ***

 

If the Party suffering a Force Majeure is unable to perform for a period in excess of ***                           , then the Parties agree to negotiate in good faith a mutually satisfactory approach to resolve the delay resulting from the Force Majeure. If no agreement is reached, then either Party may terminate the Agreement upon providing the other Party with no less than ***                      written notice of termination of the Agreement as a result of the continuing Force Majeure event.

 

16.       Governing Law: Jurisdiction; Service of Process. The Agreement and the Quality Agreement are each governed by the laws of New York without reference to choice of law principles. Any legal action may be brought in any State or Federal court located in the County and State of New York. Each Party submits to the jurisdiction of the aforesaid courts. Each Party irrevocably consents to service of process in any such action by the mailing of copies thereof by registered or certified mail, postage prepaid, to the Party at its address set forth in the Agreement (and in the case of Adaptimmune by internationally recognized courier). Adaptimmune further hereby irrevocably appoints and designates Adaptimmune LLC as its duly authorized agent for service of legal process and Adaptimmune agrees that service of such process upon Adaptimmune LLC shall constitute personal service of such process upon Adaptimmune (regardless of whether Adaptimmune LLC provides notice of such service of process to Adaptimmune) and that service of any summons and complaint and/or other process in any action may be made by registered or certified mail directed to Adaptimmune LLC on both Clients. Each Party further hereby irrevocably appoints and designates the Secretary of State of the State of New York as such Party’s duly authorized agent for service of legal process and each Party agrees that service of such process upon the New York Secretary of State shall constitute personal service of such process upon such Party (regardless of whether the Secretary of State provides notice of such service of process to such Party) and that service of any summons and complaint and/or other process in any action may be made by registered or certified mail directed to the New York Secretary of State, each Party hereby waiving personal service thereof.  ***

 

Service of legal process will be complete on the date such process is delivered to the Client (and in the case of Adaptimmune, upon Adaptimmune LLC as Adaptimmune’s agent authorized to receive such legal process) or New York Secretary of State, as applicable.  The foregoing, however, shall not limit PCT’s rights to serve process in any other manner permitted by law.  Each Party irrevocably waives (i) any objection it may now or hereafter have to the laying of venue of any action and (ii) any claim that New York is not a convenient forum for such action.

 

17.       Miscellaneous.

 

a.  Conflicting Terms. To the extent the terms or provisions of the Agreement conflict with the terms and provisions of Attachment B, the terms and provisions of the Agreement control.

 

b.  Return of Materials. All supplies, reagents, materials and equipment for which Client has reimbursed PCT, data, reports, Records and documents and related to Products or the Manufacturing Process associated with such Product will be promptly delivered to Client upon expiration or termination of the Agreement if requested by Client as provided in the Agreement.

 

c.   Notices. Except for Written Notices, notices shall be in writing and be sent (i) by registered or certified mail, postage prepaid with a return receipt requested, or (ii) by a overnight express delivery service, addressed to the other Party at the address provided in the Agreement or at such other address for which such Party gives notice herein. Notice shall be effective upon the date received.  PCT shall endeavor to address all notices, including Written Notice to both Clients, provided, however, failure to provide notices to both Clients will not affect the validity of the notice provided such notice has been sent to the Client Point of Contact.  ***

 

***                           Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.

 

8

 

Clients agree that any notices provided by PCT to the Client Point of Contact or to any one Client is deemed notice provided to both Clients

 

d.                        Assignment.

 

1.  The Agreement may not be assigned in whole or in part by either Party without the prior written consent of the other Party which consent will not be unreasonably withheld, delayed or conditioned, provided however, that no such consent shall be required in the case of an assignment to (A) an Affiliate or (B) a third party with which either Party merges or that purchases substantially all of the assets of such Party. “Affiliate” shall mean a present or future entity that controls, is controlled by or under common control of such Party, where “control” means (i) the legal or beneficial ownership of (i) more than fifty percent (50%) of the outstanding voting stock of a corporation, (ii) more than fifty percent (50%) of the voting equity of a limited liability company, partnership, or joint venture or (iii) more than a fifty percent (50%) voting general partnership interest in a partnership or joint venture; or (iv) the power to exercise a controlling influence over the management or policies of a legal entity.  Any purported transfer, assignment or delegation in violation of the foregoing will be null and void and of no force or effect. Client shall give PCT notice of any proposed permitted assignment within a reasonable time thereafter.

 

2.  Any permitted assignee will assume the rights and obligations of its assignor under this Agreement without releasing the assignor therefrom.

 

3.  The Agreement shall be binding upon the successors and permitted assigns of the Parties.

 

e.   Publicity. The Parties shall treat the existence and material terms of this Agreement as confidential and shall not disclose such information to third parties without the prior written consent of the other Party or except as provided in Section 5 of the Terms and Conditions or this Section.  Except as permitted in the preceding sentences or otherwise required by applicable law or applicable stock exchange requirements, neither Party shall issue or cause the publication of any other press release or public announcement with respect to the subject matter of this Agreement without the express prior approval of the other Party.

 

f.    Non-Solicitation. As long as the Agreement remains in effect and for a period of ***            after the expiration or termination of this Agreement, neither Party will , directly or indirectly, alone (including through any affiliate, officer, employee, director or agent) or in concert with others, solicit or encourage any employee or consultant of the other Party or the other Party’s affiliates to leave his or her employment or terminate his or her consultancy. ***

 

g.   Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter thereof and supersedes all prior or contemporaneous negotiations, promises or agreements ***

 

of every nature with respect thereto. No modification to the Agreement shall be effective unless it is in writing signed by each Party.

 

h.  Waiver and Construction. No waiver of any provision of the Agreement in any one or more instances, shall be deemed to be or be construed as a further or continuing waiver of any such provision. No waiver shall be effective unless made in writing and signed by the waiving Party. If any provision of the Agreement is declared void or unenforceable, such provision will be severed and the balance of the Agreement will remain in full force and effect.

 

i.      Signatures and Counterparts. The Agreement may be executed by an original, facsimile or electronic signature from a duly authorized person of the respective Parties, and be in two or more counterparts, with such counterparts constituting one instrument.

 

j.                Additional Fees:

 

(i)                         Client will pay PCT ***        Dollars ($***  ) for each Additional Audit subject to the terms of Section 13 above.

 

(ii)    If Client requests PCT to perform Services of any kind which are not expressly covered by the Agreement or which PCT reasonably determines are beyond the scope of the Services of the Agreement (collectively, “Additional Services”), such Additional Services will be provided pursuant to a Program Amendment Order to the Agreement executed by the Parties or other writing executed by the Parties. If Additional Services are requested and the Parties either elect not to execute or fail to execute a Program Amendment Order or other writing reflecting the Additional Services and payment thereof (including any Asset Use (as defined below)), ***

 

Client agrees that, in addition to reimbursing PCT for amounts provided in Section 4 of Attachment B, Client will pay the actual time incurred by PCT in providing such Additional Services which will be based upon PCT’s hourly rates set forth in the table below which hourly rates will be dependent on the PCT staff providing the applicable Additional Services as well as the cost of any Asset Use as discussed by the Parties. PCT will reasonably determine the appropriate PCT staff to provide such Additional Services and whether Asset Use is necessary. Upon written notice to Client, PCT may notify Client of changes in the below hourly rates, which revisions to the hourly rates will be effective immediately upon Client’s receipt of such written notification and will apply to requested Additional Services rendered after the effective date thereof, ***

 

. Hourly charges are applied to the total time devoted to the performance of such Additional Services, including any related travel.

 

	
PCT Staff
    	
 
    	
Rates
    	
 
    
	
***
    	
 
    	
$
    	
***
    	
 
    
	
***
    	
 
    	
$
    	
***
    	
 
    
	
***
    	
 
    	
$
    	
***
    	
 
    

 

***                           Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.

 

9

 

In addition, if in connection with the performance of Additional Services, PCT requires the use (“Asset Use”) of a Facility, equipment or other tangible PCT assets in order to perform such Additional Services. PCT will advise Client of the need for such Asset Use and an estimate of costs associated with such Asset Use.  Client will pay PCT, on an invoice basis, such Asset Use on an as used basis, at PCT’s then current rates offered by PCT to other clients when services to them requires an Asset Use. PCT will invoice Adaptimmune for Additional Services and Asset Use (plus all reasonable out of pocket and pass through costs and expenses) incurred by PCT.

 

k.  WAIVER OF JURY TRIAL. PCT AND CLIENT WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THE AGREEMENT. PCT AND CLIENT AGREE THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

 

10Exhibit 10.14

 

 

RULES of the ADAPTIMMUNE LIMITED

SHARE OPTION SCHEME

(INCORPORATING MANAGEMENT

INCENTIVE OPTIONS)

 

 

 

Manches LLP

9400 Garsington Road

Oxford Business Park

Oxford

OX4 2HN

 

Tel: 01865 722106

Fax: 01865 201012

www.manches.com

 

 

RULES OF THE ADAPTIMMUNE LIMITED SHARE OPTION SCHEME

(INCORPORATING ENTERPRISE MANAGEMENT INCENTIVE OPTIONS)

 

DEFINITIONS

 

1.                                      In these Rules

 

(A)                               The following words or expressions bear the following meanings:-

 

“the Act”                                                                                                                                                                   means the Income and Corporation Taxes Act 1988;

 

“the 2003 Act”                                                                                                                                    means the Income Tax (Earnings and Pensions) Act 2003;

 

“Associated Company”                                                                                    has the meaning given thereto by Section 416 of the Act;

 

“the Auditors”                                                                                                                                     means the auditors for the time being of the Company or in the event of there being joint auditors such one of them as the Directors shall select;

 

“the Company”                                                                                                                               means Adaptimmune Limited registered in England under No 6456741;

 

“Connected”                                                                                                                                               means that the relevant individual is an employee or a director of, or a Consultant to, a Group Company;

 

“Consultant”                                                                                                                                             means any person who is providing consultancy services to a Group Company including, without prejudice to the generality of the foregoing, any member of any Scientific Advisory Board that may from time to time be established by the Company;

 

 

“control”                                                                                                                                                                 has the meaning given thereto by Section 840 of the Act;

 

“Date of Grant”                                                                                                                            means the date on which an Option is granted under Rule 3;

 

“Dealing Day”                                                                                                                                    means a day on which the London Stock Exchange is open for the transaction of business;

 

“the Directors”                                                                                                                                 means the Board of Directors for the time being of the Company or a duly authorised Committee thereof;

 

“Disqualifying Event”                                                                                         has the meaning given thereto by sections 533 to 539 of the 2003 Act;

 

“Eligible Person”                                                                                                                   means, in relation to the grant of an Option which is not an EMI Option, any employee or Director of a Group Company or any Consultant and in relation to the grant of an EMI Option, a person who satisfies the eligibility criteria set out in Rule 2;

 

“EMI Option”                                                                                                                                      means an Option which is a qualifying option to acquire shares for the purposes of Chapter 9 of Part 7 of the 2003 Act;

 

“Existing Share Option”                                                                             means a right to acquire Shares already in issue pursuant to this Scheme and for the time being subsisting;

 

“the Grantor”                                                                                                                                       means the person by whom an Option has been granted pursuant to the Rules of this Scheme;

 

“the Group”                                                                                                                                                 means the Company and its subsidiaries;

 

2

 

“Group Company”                                                                                                           means a company which is a member of the Group and includes the Company, whether or not it has any subsidiaries at the relevant time;

 

“HMRC”                                                                                                                                                                  means HM Revenue & Customs;

 

“the London Stock Exchange”                                             means London Stock Exchange plc;

 

“Market Value”                                                                                                                            (a)                                 in respect of any shares which are admitted to the Official List of the London Stock Exchange, means the average (rounded up where necessary to the nearest whole penny) of the middle market quotations of such a share as derived from the Daily Official List of the London Stock Exchange for the three Dealing Days immediately preceding the relevant Date of Grant; and

 

(b)                                 in respect of any other shares, has the same meaning as in Part VIII of the Taxation of Chargeable Gains Act 1992 and where such shares comprise Shares in respect of which it is proposed that an Option be granted, their value shall be determined prior to, and for the purposes of, such grant by the Directors;

 

“New Share Option”                                                                                                    means a right to subscribe for Shares pursuant to this Scheme and for the time being subsisting;

 

“N.I. Regulations”                                                                                                                means the laws, regulations and practices currently in force relating to liability for and

 

3

 

the collection of National Insurance contributions;

 

“Option”                                                                                                                                                                   means a New Share Option or an Existing Share Option;

 

“Option Agreement”                                                                                                  means the agreement executed in respect of the grant of an Option pursuant to Rule 3(D);

 

“Option Holder”                                                                                                                        means a person holding an Option, including, where the context so admits, his Personal Representatives;

 

“Option Holder’s Employer”                                                   means such member of the Group as is the Option Holder’s employer or, if he has ceased to be employed within the Group, was his employer or such other member of the Group, or other person as, under the PAYE Regulations or, as the case may be, the N.I. Regulations, or any other statutory or regulatory enactment (whether in the United Kingdom or otherwise), is obliged to account for any Option Tax Liability;

 

“Option Price”                                                                                                                                  means the price per Share payable on the exercise of an Option as determined by the Directors under these Rules;

 

“Option Shares”                                                                                                                          means the Shares over which an Option subsists;

 

“Option Tax Liability”                                                                                    means, in relation to an Option Holder, any liability of the Option Holder’s Employer to account to HMRC or any other tax authority for any amount of, or representing, income tax or National Insurance contributions (including employer’s secondary

 

4

 

contributions) or any other tax, charge, levy or other sum whether under the laws of the United Kingdom or otherwise which may arise on the grant, exercise, assignment or release of the Option or the acquisition of Shares under this Scheme;

 

“ordinary share capital”                                                                           means all the issued share capital (by whatever name called) of a company other than capital the holders whereof have a right to a dividend at a fixed rate but have no other right to share in the profits of the company;

 

“the PAYE Regulations”                                                                             means the regulations made under section 684 of the 2003 Act or any legislation in force prior to the 2003 Act coming into force;

 

“Performance Option”                                                                                     means an Option the exercise of which is normally subject to attainment of a Performance Target;

 

“the Performance Period”                                                                  means, in relation to a Performance Option, the period over which the performance of the Company and/or any other condition is to be measured as mentioned in Rule 6(A) for the purposes of determining whether and to what extent the Performance Target is met;

 

“the Performance Target”                                                                 means the condition or conditions imposed on the exercise of an Option pursuant to Rule 6 as amended and varied from time to time;

 

“Personal Representatives”                                                            means, in relation to an Option Holder, the personal representatives of the Option Holder (being either the executors of his will to whom a valid grant of probate has been made or, if he dies intestate, the duly

 

5

 

appointed administrator(s) of his estate) who have produced to the Company evidence of their appointment as such;

 

“Qualifying Subsidiary”                                                                            means a subsidiary which satisfies the conditions of paragraph 11 of Schedule 5 to the 2003 Act;

 

“SSCBA”                                                                                                                                                                 means the Social Security Contributions and Benefits Act 1992;

 

“this Scheme”                                                                                                                                        means this scheme as constituted in accordance with these Rules as from time to time amended in accordance with these Rules;

 

“Shares”                                                                                                                                                                    means fully paid irredeemable ordinary shares in the capital of the Company for the time being; and

 

“subsidiary”                                                                                                                                               means a company which is both under the control of the Company and which is a subsidiary of the Company within the meaning of Section 736 of the Companies Act 1985.

 

(B)                               Where the context so admits or requires the singular includes the plural and the masculine includes the feminine and neuter and vice versa.

 

(C)                               References to Rules are to Rules of this Scheme.

 

(D)                               A reference to any Act, statute or statutory provision shall include a reference to any statutory modification, amendment or re-enactment thereof.

 

(E)                                For the purposes of this Scheme, unless the context otherwise requires:

 

6

 

(1)                                 a Performance Option shall be deemed to have become vested when the notice referred to in Rule 8(C) has been given to the Option Holder by the Directors in respect of that Performance Option, and

 

(2)                                 any Option other than a Performance Option shall be deemed to have become vested on the first date on which it is exercisable pursuant to Rule 8(B).

 

2.                                      ELIGIBILITY FOR EMI OPTIONS

 

(A)                               A person is eligible to be granted an EMI Option if (and only if) he is an employee of the Company or a Qualifying Subsidiary and his committed time to the relevant company amounts to at least 25 hours a week, or if less, 75% of his working time, in compliance with paragraph 26 of Schedule 5 to the 2003 Act.

 

(B)                               A person is not eligible to be granted an EMI Option at any time when he is not eligible to participate in the Scheme by virtue of paragraph 28 of Schedule 5 to the 2003 Act (no material interest requirement).

 

3.                                      GRANT OF OPTIONS

 

(A)                               The Grantor may, on such dates as it shall determine, grant Options to such Eligible Persons as it may in its absolute discretion select.

 

(B)                               The Grantor may impose a condition preventing the exercise of an Option unless the Option Holder shall have entered into a Deed of Adherence (in such form as may be required by the Company) with the Company and all persons who at the date of exercise of the Option are holders of shares in the capital of the Company whereby the Option Holder becomes a party to any Shareholders’ Agreement or other document having a similar effect which is in force between the Company and all persons who at the date of exercise of the Option are holders of shares in the capital of the Company.

 

(C)                               The Grantor may also specify that the exercise of any Option shall be subject to such objective conditions (in addition to any Performance Target and any condition imposed pursuant to Rule 3(B)) as it may think fit.

 

7

 

(D)                               An Option shall be granted by the Grantor and the Option Holder executing as a Deed an agreement which shall specify the following:-

 

(1)                                 if such be the case, that the Option is to be an EMI Option granted in accordance with the provisions of Schedule 5 to the 2003 Act;

 

(2)                                 the Date of Grant;

 

(3)                                 the Grantor;

 

(4)                                 the number of Option Shares;

 

(5)                                 the Option Price;

 

(6)                                 any Performance Target and Performance Period imposed pursuant to Rule 6 and any other condition imposed under Rule 3(B) or Rule 3(C);

 

(7)                                 that it is a term of the Option that the Option Holder agrees to indemnify the Grantor and the Option Holder’s Employer in respect of any Option Tax Liability and against any liability of the Option Holder’s Employer to account to HMRC or any other tax authority for any amounts of, or representing, income tax or National Insurance contributions (including employer’s second Class 1 contributions to the extent permitted by law from time to time) which may arise as a result of the operation of Part 7 of the 2003 Act in relation to any shares acquired pursuant to the exercise of the Option;

 

(8)                                 the first date on which the Option may be exercised in whole or in part pursuant to Rule 8(B);

 

(9)                                 the last date on which the Option may be exercised by reason of Rule 8(A);

 

(10)                          how the Option may be exercised; and

 

(11)                          details of any restrictions attaching to the Option Shares;

 

8

 

and shall otherwise be in such form as the Grantor may from time to time determine.

 

(E)                                The Grantor may require that, subject to Rule 3(F), the Option Holder shall agree and undertake with the Company or with any other company which is the Option Holder’s Employer that:

 

(1)                                         he shall join with the Option Holder’s Employer in making an election , in such terms and such form as the Option Holder’s Employer may require, subject to approval by HMRC as provided in paragraphs 3A and 3B of Schedule 1 to the SSCBA for the transfer to him of the whole of any liability of the Option Holder’s Employer to employer’s secondary Class I National Insurance contributions payable in respect of any gain realised upon the exercise, assignment or release of the Option;

 

(2)                                         he shall join with the Option Holder’s Employer in making an election , in such terms and such form as the Option Holder’s Employer may require, subject to such approval by HMRC as may from time to time be required by law , for the transfer to him of the whole of any liability of the Option Holder’s Employer to employer’s secondary Class I National Insurance contributions payable in respect of any relevant employment income (as defined in the SSCBA) of the Option Holder;

 

(3)                                         he shall, if so required by the Company by notice in writing at any time before the Option is exercised, join with the Option Holder’s Employer in making an election , in such terms and such form as the Option Holder’s Employer may require, subject to such approval by HMRC as may from time to time be required by law, prior to the acquisition of any Shares on the exercise of the Option, under Section 431 of the 2003 Act for the full disapplication of Chapter 2 of the 2003 Act in relation to any shares acquired on the exercise of the Option.

 

(F)                                 The provisions of Rule 3(E) shall not have effect on any occasion if to do so would contravene the provisions of the SSCBA or of any regulations made under that Act.

 

(G)                               The date of the agreement executed pursuant to Rule 3(D) shall be taken for all purposes of this Scheme as the Date of Grant in respect of the relevant Option.

 

9

 

(H)                              An Option shall not be granted by any person other than the Company without the prior approval of the Directors.

 

4.                                      OPTION PRICE

 

(A)                               Subject to Rule 4(B) and any adjustment being made pursuant to Rule 14, the Option Price shall be determined by the Directors (with the prior consent of the Grantor, where appropriate).

 

(B)                               In the case of a New Share Option, the Option Price shall not be less than the nominal value of a Share.

 

5.                                      NON-TRANSFERABILITY OF OPTIONS

 

(A)                               During his lifetime only the individual to whom an Option is granted may exercise that Option.

 

(B)                               An Option shall immediately cease to be exercisable and shall lapse if:-

 

(1)                                 it is transferred or assigned (other than to the Personal Representatives of the Option Holder), mortgaged, charged or otherwise disposed of by the Option Holder; or

 

(2)                                 the Option Holder is adjudged bankrupt or an interim order is made because he intends to propose a voluntary arrangement to his creditors under the Insolvency Act 1986; or

 

(3)                                 the Option Holder makes or proposes a voluntary arrangement under the Insolvency Act 1986, or any other scheme or arrangement in relation to his debts, with his creditors or any section of them; or

 

(4)                                 the Option Holder is otherwise deprived (except on death) of the legal or beneficial ownership of the Option by operation of law or by doing or omitting to do anything which causes him to be so deprived.

 

10

 

6.                                      PERFORMANCE TARGETS

 

(A)                               If the Directors (with the prior consent of the Grantor, where appropriate) so determine, the exercise of an Option shall be conditional upon the performance of any one or more of the Company, any other Group Company, the Group, any division of the Company or any other Group Company or the Option Holder or some other objective condition measured over a Performance Period and against such objective criteria as may be determined by the Directors.

 

(B)                               Any such Performance Target and the Performance Period applicable shall be specified in the relevant Option Agreement.

 

(C)                               Any such Performance Target may provide that the Option shall become vested in respect of a given number or proportion of the Option Shares according to whether, and the extent to which, any given Performance Target is met or exceeded.

 

(D)                               After an Option has been granted the Directors may (with the consent of the Grantor, where appropriate) in appropriate circumstances, amend the Performance Target imposed pursuant to Rule 6(A) (and/or any other conditions(s) imposed under Rule 3(B) or Rule 3(C) (together “the Targets”)) PROVIDED THAT no such amendment shall be made unless an event has occurred or events have occurred in consequence of which the Directors reasonably consider that the terms of the existing Targets should be so amended for the purpose of ensuring that either the objective criteria against which the performance of the Group and/or any Group Company and/or any division and/or the Option Holder will then be measured will be a fairer measure of such performance or that any amended Targets will afford a more effective incentive to Option Holders and will be no more difficult to satisfy than were the Targets when first set.

 

(E)                                After an Option has been granted the Directors (with the consent of the Grantor, where appropriate) may, in appropriate circumstances, waive altogether any requirement that Targets be met as a condition of exercise of an Option PROVIDED THAT no such waiver shall be made unless an event or events have occurred in consequence of which the Directors reasonably consider that the terms of the existing Targets no longer afford an effective incentive to the Option Holder.

 

11

 

(F)                                 The provisions of Rules 6(D) and 6(E) shall not detract from, and shall be subject to, the provisions of Rule 10(D).

 

(G)                               If, in consequence of a Performance Target being met, an Option becomes vested in respect of some but not all of the Option Shares, it shall thereupon lapse and cease to be exercisable in respect of the balance of the Option Shares.

 

(H)                              The number of Shares in respect of which an Option shall become vested on any occasion shall be rounded to the nearest whole number.

 

7.                                      LIMITS

 

(A)                               Unless permitted by Schedule 5 to the 2003 Act or such other legislation as may from time to time govern the granting of EMI Options, no person shall be granted EMI Options which would, at the time they are granted, result in that person exceeding the £120,000 maximum entitlement as prescribed in paragraph 5 of Schedule 5 to the 2003 Act.

 

(B)                               Unless permitted by Schedule 5 to the 2003 Act or such other legislation as may from time to time govern the granting of EMI Options, no person shall be granted EMI Options which would, at the time that they are granted, result in the Company exceeding the £3,000,000 maximum value of shares prescribed in paragraph 7 of Schedule 5 to the 2003 Act.

 

(C)                               A Grantor may only grant EMI Options whilst the requirements of Schedule 5 to the 2003 Act are met and if any of the requirements are not met, the Option shall continue to subsist but not as an EMI Option.

 

(D)                               For the avoidance of doubt, the limitations under this Rule 7 do not apply to Options which are not EMI Options.

 

8.                                      EXERCISE OF OPTIONS

 

(A)                               An Option shall not in any event be exercised later than the day immediately preceding the tenth anniversary of the Date of Grant or such earlier date as may be specified in the relevant Option Agreement.

 

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(B)                               Subject to the following provisions of this Rule and Rules 10, 12 and 13, an Option may not be exercised earlier than such time or times shall be specified in the relevant Option Agreement.

 

(C)                               Save as otherwise provided in the following provisions of this Rule and Rules 10, 12 and 13, a Performance Option may only be exercised after the Company has notified the Option Holder that such Option has become vested in respect of such number or proportion of the Option Shares as the Company shall specify in such notice. Within 10 working days of receipt of a written request from an Option Holder the Company shall confirm to the Option Holder by notice in writing whether and to what extent any Option held by him has become vested.

 

(D)                               Except as mentioned in Rules 8(E), 8(F) and 8(G) and 10 an Option may not be exercised at any time, unless the Option Holder is then Connected with a Director of a Group Company.

 

(E)                                If an Option Holder ceases to be Connected with a Group Company by reason of:-

 

(1)                                 retirement on or after reaching the age of 65 or the age at which the Option Holder is anticipated to retire in accordance with the terms of his contract of employment; or

 

(2)                                 injury, ill-health or disability (evidenced to the satisfaction of the Directors; or

 

(3)                                 the transfer of a business or part of a business to a person who is not a member of the Group; or

 

(4)                                 the fact that the company by which he is employed is no longer a member of the Group.

 

then, subject to Rule 10, an Option granted to him may be exercised during the six month period beginning with the date of cessation and if not then exercised shall lapse, provided that, subject to the provisions of Rule 10(D):-

 

(i)                                     a Performance Option may be exercised only in respect of such proportion of the Option Shares (if any) in respect of which the Option had become

 

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vested at the date on which the Option Holder ceased to be Connected with a Group Company or such greater proportion as the Directors may determine and notify to the Option Holder in writing prior to the expiry of the six month period referred to above;

 

(ii)                               an Option the exercise of which is subject to the satisfaction of a condition imposed pursuant to Rule 3(C) may only be exercised if such condition has been satisfied or, if it has not been satisfied, to the extent that the Directors may determine and notify to the Option Holder in writing prior to the expiry of the six month period referred to above; and

 

(iii)                          an Option which is neither a Performance Option nor an Option the exercise of which is subject to the satisfaction of a condition imposed pursuant to Rule 3(C) may be exercised only in respect of such number of Shares in respect of which it had become vested at the date on which the Option Holder ceased to be Connected with a Group Company or such greater number of Shares as the Directors may determine and notify to the Option Holder in writing prior to the expiry of the six month period referred to above.

 

(F)                                 Subject to Rule 8(A) if an Option Holder dies whilst he is Connected with a Group Company an Option granted to him may be exercised by his Personal Representatives within the period of twelve months beginning with the date of his death, and, if and insofar as the Option is not then exercised, it shall lapse and cease to be exercisable at the end of that period, provided that, subject to the provisions of Rule 10(D):-

 

(i)                                  a Performance Option may be exercised only in respect of such proportion of the Option Shares (if any) in respect of which the Option had become vested at the date of death of the Option Holder or such greater proportion as the Directors may determine and notify to the Option Holder’s Personal Representatives in writing prior to the expiry of the twelve month period referred to above;

 

(ii)                               an Option the exercise of which is subject to the satisfaction of a condition imposed pursuant to Rule 3(C) may only be exercised if such condition had been satisfied at the date of the Option Holder’s death or, if it has not been satisfied, to the extent that the Directors may determine

 

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and notify to the Option Holder’s Personal Representatives in writing prior to the expiry of the twelve month period referred to above;

 

(iii)                            an Option which is neither a Performance Option nor an Option the exercise of which is subject to the satisfaction of a condition imposed pursuant to Rule 3(C) may be exercised only in respect of such number of Shares in respect of which it had become vested at the date of the Option Holder’s death or such greater number of Shares as the Directors may determine and notify to the Option Holder’s Personal Representatives in writing prior to the expiry of the twelve month period referred to above.

 

(G)                               If an Option Holder gives or receives notice to terminate his employment by, or consultancy with, any member of the Group or ceases to be Connected with any member of the Group for any reason other than those set out in Rule 8(E) or Rule 8(F) then an Option granted to him may only be exercised (if at all) in relation to such proportion of the Option Shares, and (subject to Rule 8(A)) within such period, as the Directors shall (with the consent of the Grantor, where appropriate) determine and notify to the Option Holder and shall otherwise lapse and cease to be exercisable on the date of cessation, or, if earlier, the date of the notice of such cessation PROVIDED THAT unless such determinations are made by the Directors within the period of three months beginning with the date on which the Option Holder so ceases (or, if earlier gives or is given notice of such cessation) then such Option may not be exercised and shall be deemed to have lapsed and ceased to be exercisable as from the date of such cessation or, if earlier, the date on which notice of such termination was given or received.

 

(H)                              A female Option Holder whose employment has been terminated in circumstances such that, pursuant to the Employment Rights Act 1996, she has a right to return to work, shall be deemed for the purposes of this Rule 8 as not having ceased to be employed within the Group until such time as she is no longer capable, pursuant to that Act, of exercising a right to return to work and shall be deemed not to have ceased to be employed if she exercises that right.

 

(I)                                   Notwithstanding Rule 8(B), if a Disqualifying Event occurs which would result in an Option ceasing to be an EMI Option, the Directors, may, at their discretion, allow the Option Holder to exercise the Option during the period ending 40 days after the occurrence of the Disqualifying Event. To the extent not so exercised,

 

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the Option shall remain exercisable (subject to the rules of the Scheme) but shall no longer be an EMI Option.

 

9.                                      MANNER OF EXERCISE OF OPTIONS

 

(A)                               In order to exercise an Option in whole or in part, the Option Holder (or, as the case may be, his Personal Representatives) must deliver to the Company (acting as agent of the Grantor) a notice in writing (in the form prescribed by the Company) specifying the number of Shares in respect of which the Option is being exercised. Such notice shall be accompanied by the relevant Option Agreement and by payment in full for those shares in respect of which the Option is exercised.

 

(B)                               In the event of an Option being exercised in part only, the balance of the Option not thereby exercised shall continue to be exercisable in accordance with these Rules and the Grantor shall endorse on the Option Agreement a statement to the effect that the Agreement remains valid in respect of that part of his Option which the Option Holder shall have elected not to exercise.

 

(C)                               The Grantor shall not be obliged to issue, transfer or procure the transfer of any Shares or any interest in any Shares under this Scheme unless and until the Option Holder has paid to the Grantor or the Option Holder’s Employer such sum as is, in the opinion of the Grantor or Option Holder’s Employer (as appropriate), sufficient to indemnify the Grantor or the Option Holder’s Employer in full against any Option Tax Liability or has made such other arrangement as, in the opinion of the Grantor, will ensure that the Option Holder will satisfy his liability under such indemnity.

 

(D)                               The Grantor shall have the right not to issue, transfer or procure the transfer to or to the order of an Option Holder the aggregate number of Shares to which the Option Holder would otherwise be entitled but to retain out of such aggregate number of Shares such number of Shares as, in the opinion of the Grantor, will enable the Grantor to sell as agent for the Option Holder (at the best price which can reasonably be expected to be obtained at the time of sale) and to pay over to the Option Holder’s Employer sufficient monies out of the net proceeds of sale, after deduction of all fees, commissions and expenses incurred in relation to such sale, to satisfy the Option Holder’s liability under such indemnity.

 

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(E)                                The provisions of Rules 9(C) and 9(D) shall not apply in relation to the issue or transfer of Shares on any occasion if, before the date of issue or transfer, the Option Holder has either:-

 

(1)                                 paid to the Option Holder’s Employer a sum which in the opinion of the Option Holder’s Employer is, or will be, sufficient to satisfy the Option Holder’s liability under the indemnity referred to in Rule 9(C); or

 

(2)                                 entered into arrangements with the Option Holder’s Employer which, in the opinion of the Option Holder’s Employer, will ensure that such liability is satisfied within such period as the Option Holder’s Employer may determine.

 

(F)                                 The Company shall be entitled to satisfy any New Share Option in whole or in part by procuring that the relevant number of Shares are transferred to the Option Holder upon the exercise of his Option.

 

(G)                               Subject to Rules 9(C) to (E), as soon as practicable and in any event not more than thirty days after receipt by the Company of a notice exercising a New Share Option accompanied by the relevant Option Agreement and the appropriate payment, the Shares in respect of which the New Share Option has been exercised and in respect of which the Company has not exercised its rights pursuant to Rule 9(F) shall be issued by the Company upon definitive Share Certificates.

 

(H)                              Subject to Rules 9(C) to (E), as soon as practicable and in any event not more than thirty days after receipt by the Grantor of a notice exercising an Existing Share Option or (where the Company has exercised its rights pursuant to Rule 9(F) ) by the Company of a notice exercising a New Share Option, accompanied in each case by the relevant Option Agreement and the appropriate payment, the person transferring shares to the Option Holder shall lodge with the Company a transfer of the number of Shares which are to be transferred to the Option Holder pursuant to the exercise of his Option together with a certificate covering such Shares.

 

(I)                                   The Company shall be responsible for any stamp duty payable by an Option Holder in respect of the transfer of any Shares to him pursuant to the exercise of an Option.

 

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(J)                                   If, under the terms of a resolution passed or an announcement made by the Company prior to the date of exercise of an Option, a dividend is to be paid or is proposed to be paid to the holders of Shares on the register of members in respect of a record date prior to such date of exercise, any Shares to be allotted upon such exercise shall not rank for such dividend and any dividend payable upon Shares which are to be transferred pursuant to such exercise shall be retained by the transferor. Subject as aforesaid, the Shares so allotted shall be identical to and shall rank pari passu in all respects with the fully paid shares of the same class in issue on the date of such exercise.

 

(K)                              All allotments and issues of Shares shall be subject to any necessary consents of HM Treasury or other authorities in the United Kingdom or elsewhere under enactments or regulations for the time being in force and it shall be the responsibility of the Option Holder to comply with any requirements to be fulfilled in order to obtain or obviate the necessity for any such consent.

 

(L)                                If Shares are at the date of exercise of an Option listed on the London Stock Exchange or are dealt in on some other public securities market the Company shall at its own expense make the appropriate application for the Shares allotted pursuant to the exercise of such Option to be admitted to the Official List of the London Stock Exchange or to be dealt in on the relevant public securities market (as the case may be).

 

10.                               TAKEOVERS

 

(A)                               Subject to Rules 8(A), 10(C), 10(D) and 11, if, as a result of either:-

 

(1)                                 a general offer to acquire the whole of the ordinary share capital of the Company which is made on a condition such that if it is satisfied the person making the offer will have control of the Company; or

 

(2)                                 a general offer to acquire all the shares in the Company of the same class as the Shares

 

the Company shall come under the control of another person or persons, the Option Holder shall, whether or not he subsequently or in consequence of the change in control ceases to be Connected with any member of the Group for any

 

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reason, be entitled to exercise his Option within the period of four months of the date when the person making the offer has obtained control of the Company and any condition subject to which the offer is made has been satisfied to the extent that his Option shall have vested at such date and to the extent that the Option is not exercised it shall lapse and cease to be exercisable.

 

(B)                               For the purposes of the preceding provisions of this Rule a person shall be deemed to have control of the Company if he and others acting in concert with him have together obtained control of it.

 

(C)                               An Option Holder shall be entitled to exercise in accordance with Rule 10(A) any Performance Option which has been granted to him unless the Option Agreement pursuant to which such Performance Option was granted provides that such Performance Option may only be exercised pursuant to Rule 10(A) to the extent that it shall have vested at the date on which control of the Company is obtained.

 

(D)                               Notwithstanding Rules 10(A) and 10(C), if a person makes such an offer as is referred to in Rule 10(A) or an offer to acquire the whole or substantially the whole of the Company’s business, the Directors may, in their absolute discretion and by notice in writing to all Option Holders, declare all outstanding Options to be exercisable during a limited period specified by the Directors in the notice, whether or not any Performance Targets or conditions imposed under Rules 3(B) or 3(C) have been satisfied and whether or not Options shall have vested. If the Directors so declare, all outstanding Options may be exercised at any time during such period. If not exercised, the Options shall lapse immediately upon the expiry of such period.

 

11.                               QUALIFYING EXCHANGE OF SHARES

 

(A)                               The provisions of Rule 11(B) shall have effect, and Rule 10(A) shall not apply if another company obtains all the shares of the Company as a result of a “qualifying exchange of shares” (as mentioned in paragraph 40 of Schedule 5 to the 2003 Act) and the Option Holder is invited to release his rights under his Option in consideration of the grant to him of rights (“the New Option”) which are equivalent but relate to shares in the acquiring company and the requirements of paragraphs 42 and 43 of Schedule 5 to the 2003 Act would be met in relation to the New Option.

 

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(B)                               If the Option Holder does not agree to release his rights under his Option in consideration of the grant to him of such New Option then his Option shall lapse and cease to be exercisable at the end of the period within which the Option Holder could have accepted such invitation.

 

12.                               DEMERGERS AND RECONSTRUCTIONS

 

(A)                               Subject to Rule 8(A), if notice is given to shareholders of the Company of a proposed demerger of any member of the Group, Options which are not capable of immediate exercise may then be exercised (notwithstanding that any Performance Target or other condition imposed under Rule 3(B) or 3(C) is not then satisfied) over such number or proportion of the Option Shares as the Directors (with the consent of the Grantor, if it is not the Company) may then determine and notify to Option Holders and within such period as the Directors may specify in such notice to Option Holders SAVE THAT no such notice to Option Holders shall be given unless the Auditors have confirmed in writing to the Grantor that (disregarding any Performance Target subject to which any Option is then exercisable) the interests of Option Holders would or might be substantially prejudiced if before the proposed demerger has effect Option Holders could not exercise their Options and be registered as the holders of the Shares thereupon acquired and to the extent Options are not exercised they shall lapse at the end of the specified period.

 

(B)                               Subject to Rule 8(A), if the court sanctions a compromise or arrangement proposed for the purposes of or in connection with a scheme for the reconstruction of the Company or its amalgamation pursuant to section 425 of the Companies Act 1985 Options which are not capable of immediate exercise may, within the period of commencing on the date on which the court sanctions the compromise or arrangement and ending with the date upon which it becomes effective, be exercised (notwithstanding that any Performance Target or other condition imposed under Rule 3(B) or Rule 3(C) is not then satisfied) over such number or proportion of the Option Shares as the Directors (with the consent of the Grantor, if not the Company) may then determine and notify to Option Holders and to the extent that Options remain unexercised when the compromise or arrangement becomes effective, all Options shall lapse.

 

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13.                               WINDING-UP

 

(A)                               Subject to Rule 8(A), if notice is duly given of a General Meeting at which a resolution will be proposed for a voluntary winding-up of the Company except for the purposes of reconstruction or amalgamation, any Option which shall have vested at the date of such notice shall be exercisable in whole or in part (but so that any exercise hereunder shall be conditional upon such resolution being passed) at any time thereafter until the resolution is duly passed or defeated or the Meeting concluded or adjourned sine die, whichever shall first occur. If such resolution is duly passed an Option shall, to the extent that it has not been exercised, thereupon lapse.

 

(B)                               An Option shall lapse immediately in the event of the Company being wound-up otherwise than in the event of a voluntary winding-up.

 

14.                               VARIATION OF CAPITAL

 

(A)                               In the event of any increase or variation of the share capital of the Company by way of capitalisation or rights issue, sub-division, consolidation or reduction, the Company shall make such adjustments as it considers fair and reasonable.

 

(B)                               An adjustment made under this Rule shall be to one or more of the following:-

 

(1)                                 the number and nominal value of Shares in respect of which any Option may be exercised;

 

(2)                                 the Option Price;

 

(3)                                 where an Option has been exercised but no Shares have been allotted, the number of Shares which may be allotted and the subscription price payable for each Share.

 

(C)                               No adjustment shall be made such as to result in the subscription price payable for any Share under any New Share Option being reduced to less than the nominal value of that Share.

 

(D)                               As soon as reasonably practicable after making any adjustment, the Company shall give notice in writing thereof to any Option Holder affected thereby.

 

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15.                               GENERAL

 

(A)                               The provisions contained or incorporated in the Company’s Articles of Association for the time being with regard to the service of notices on members shall apply mutatis mutandis to any notice to be given under this Scheme to an Option Holder.

 

(B)                               The Company shall at all times keep available for issue sufficient authorised and unissued Shares to satisfy all rights from time to time subsisting under Options granted pursuant to this Scheme, taking account of any other obligations of the Company to allot and issue unissued Shares.

 

(C)                               The decision of the Directors in any disputes relating to an Option or matter relating to this Scheme shall be final and conclusive.

 

(D)                               The costs of introducing and administering this Scheme shall be borne by the Company.

 

(E)                                The Directors shall have power from time to time to make or vary regulations for the administration and operation of this Scheme provided that such regulations are not inconsistent with these Rules.

 

(F)                                 This Scheme shall not form part of any contract of employment or consultancy agreement between any Eligible Person and any Group Company and shall not confer on any Eligible Person any legal or equitable rights whatsoever against any such company nor give rise to any claim or cause of action at common law under statute or in equity.

 

(G)                               The grant of an option shall not form part of the Option Holder’s entitlement to remuneration or benefits pursuant to his contract of employment or count as wages or remuneration for pension purposes nor does the existence of a contract of employment between any person and any Group Company give such person any right or entitlement to have an Option granted to him in respect of any number of Shares or any expectation that an Option might be granted to him whether subject to any conditions or at all.

 

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(H)                              The rights and obligations of an Option Holder under the terms of his contract of employment shall not be affected by the grant of an Option or his participation in this Scheme.

 

(I)                                   The rights granted to an Option Holder upon the grant of an Option shall not afford the Option Holder any rights or additional rights to compensation or damages in consequence of the loss or termination of his office or employment or consultancy with any Group Company for any reason whatsoever (whether or not such termination is ultimately held to be wrongful or unfair).

 

16.                               VARIATIONS AND TERMINATION

 

(A)                               The Directors may from time to time in their absolute discretion subject to paragraphs (B) and (C) of this Rule with the prior sanction of the Company in General Meeting waive or amend such of the Rules of this Scheme as they deem desirable.

 

(B)                               No modification or alteration shall be made which would abrogate or alter adversely the subsisting rights of Option Holders unless it is made:

 

(1)                                 with the consent in writing of such number of Option Holders as hold Options under the Scheme to acquire 75 per cent of the Shares which would be issued or transferred if all Options granted and subsisting under the Scheme were exercised; or

 

(2)                                 by a resolution at a meeting of Option Holders passed by not less than 75 per cent of the Option Holders who attend and vote either in person or by proxy, and for the purposes of this Rule 17(B) the Option Holders shall be treated as a separate class of share capital and the provisions of the Articles of Association of the Company relating to class meetings shall apply mutatis mutandis.

 

(C)                               The Directors may terminate this Scheme at any time, but Options granted prior to such termination shall continue to be valid and exercisable in accordance with these Rules.

 

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17.                               HMRC REQUESTS

 

The Company shall provide to HMRC (within such time limit as the HMRC directs) any information in relation to this Scheme or the grant of Options under it and an Option Holder shall:-

 

(1)                                 promptly provide to the Company such information as it may reasonably request; and

 

(2)                                 consent to the Company providing such information concerning him to HMRC for the purpose of complying with such request from HMRC.

 

18.                               EMI

 

(A)                               Except as described in this Rule, the Rules of this Scheme shall apply to EMI Options in exactly the same way as they apply to other Options.

 

(B)                               The Company shall give notice to HMRC within 92 days of the Date of Grant of an EMI Option in a form complying with paragraph 44 of Schedule 5 to the 2003 Act.

 

(C)                               No warranty, representation or undertaking of any nature is given to the holder of an EMI Option that the EMI Option is a qualifying option for the purposes of the 2003 Act or that a disqualifying event will not occur in relation to an EMI Option. Neither the Directors, the Company nor any other person shall be liable to the Option Holder for any loss of whatsoever nature resulting from the failure for any reason of an Option granted as an EMI Option to meet the conditions of Schedule 5 to the 2003 Act, whether such failure results from the inadvertent or deliberate act of the Directors, the Company or any other person or for any other reason whatsoever.

 

19.                               GOVERNING LAW

 

This Scheme and all Options granted hereunder shall be governed by and construed in accordance with English law.

 

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