Document:

Exhibit 10.4

 

INDEMNIFICATION AGREEMENT

 

This Agreement, made and
entered into effective as of the ___ day of _____, 2020 (“Agreement”), by and between Northern Genesis Acquisition
Corp., a Delaware corporation (“Company”), and ____________ (“Indemnitee”).

 

WHEREAS, the adoption of
the Sarbanes-Oxley Act of 2002 and other laws, rules and regulations being promulgated have increased the potential for liability
of officers and directors; and

 

WHEREAS, the Board of Directors
of the Company (“Board”) has determined that the ability to attract and retain such persons is in the best interests
of the Company’s shareholders; and

 

WHEREAS, it is reasonable,
prudent and necessary for the Company to obligate itself contractually to indemnify such persons to the fullest extent permitted
by applicable law so that such persons will serve or continue to serve the Company free from undue concern that they will not be
adequately indemnified; and

 

WHEREAS, this Agreement
is a supplement to and in furtherance of Article VII of the Bylaws of the Company, and Article Eighth of the Amended and Restated
Certificate of Incorporation of the Company and any resolutions adopted pursuant thereto and shall neither be deemed to be a substitute
therefor nor to diminish or abrogate any rights of Indemnitee thereunder; and

 

WHEREAS, Indemnitee is
willing to serve on behalf of the Company on the condition that he be indemnified according to the terms of this Agreement;

 

NOW, THEREFORE, in consideration
of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

1. Definitions. For purposes of
this Agreement:

 

1.1 “Change
in Control” means a change in control of the Company occurring after the date hereof of a nature that would be required to
be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule
or form) promulgated under the Securities Exchange Act of 1934, as amended (“Act”), whether or not the Company is then
subject to such reporting requirement provided, however, that, without limitation, such a Change in Control shall be deemed to
have occurred if after the date hereof (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Act),
other than a person who is an officer or director of the Company on the date hereof (and any of such person’s affiliates),
is or becomes “beneficial owner” (as defined in Rule 13d-3 under the Act), directly or indirectly, of securities of
the Company representing 50% or more of the combined voting power of the then outstanding securities of the Company without the
prior approval of at least two-thirds of the members of the Board in office immediately prior to such person attaining such percentage
interest; (ii) the Company is a party to a merger, consolidation, sale of assets or other reorganization, or a proxy contest, as
a consequence of which (A) members of the Board in office immediately prior to such transaction or event constitute less than a
majority of the Board thereafter or (B) the voting securities of the Company outstanding immediately prior to such transaction
do not continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity)
more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such
transaction with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;
or (iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board (including
for this purpose any new director whose election or nomination for election by the Company’s shareholders was approved by
a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any reason to constitute at least a majority of the Board.

 

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1.2 “Corporate
Status” means the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of
any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was
serving at the request of the Company. In addition, service at the actual request of the Company, for purposes of this Agreement,
Indemnitee shall be deemed to be serving or to have served at the request of the Company as a director, officer, employee, agent
or fiduciary of any other enterprise if Indemnitee is or was serving as a director, officer, employee, agent or fiduciary of such
enterprise and (A) such enterprise is or at the time of such service was an affiliate of the Company, (B) such enterprise is or
at the time of such service was an employee benefit plan (or related trust) sponsored or maintained by the Company or an affiliate
of the Company or (C) the Company or an affiliate of the Company directly or indirectly caused Indemnitee to be nominated, elected,
appointed, designated, employed, engaged or selected to serve in such capacity

 

1.3 “Disinterested
Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
is sought by Indemnitee.

 

1.4 “Expenses”
means all reasonable attorneys’ fees, retainers, court costs (including trial and appeals), transcript costs, fees of experts,
witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees,
federal, state, local, or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement,
and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing
to prosecute or defend, appealing, preparing to appeal, investigating, or being or preparing to be a witness in a Proceeding.

 

1.5 “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently
is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any other matter material to either
such party, or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” does not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. Except as provided in the first sentence of Section 9.3 hereof, Independent Counsel
shall be selected by (a) the Disinterested Directors or (b) a committee of the Board consisting of two or more Disinterested Directors
or if (a) and (b) above are not possible, then by a majority of the full Board.

 

1.6 “Proceeding”
means any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other
proceeding, , whether conducted by or on behalf of the Company or any other party, whether civil, criminal, administrative or investigative,
except one initiated by an Indemnitee pursuant to Section 11 of this Agreement to enforce his rights under this Agreement.

 

2. Services by Indemnitee.

 

Indemnitee agrees to serve
as a director, officer or employee of the Company. Indemnitee may at any time and for any reason resign from such position (subject
to any other contractual obligation or any obligation imposed by operation of law).

 

3. Indemnification - General.

 

The Company shall indemnify,
and, subject to Section 26 hereof, advance Expenses to, Indemnitee as provided in this Agreement to the fullest extent permitted
by applicable law in effect on the date hereof and to such greater extent as any amendment to or interpretation of applicable law
may thereafter from time to time permit. The rights of Indemnitee provided under the preceding sentence shall include, but shall
not be limited to, the rights set forth in the other Sections of this Agreement.

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The Company shall purchase
and maintain directors’ and officers’ liability insurance with limits of not less than US $5,000,000 million while
the Indemnitee is a director, officer or employee of the Company (an “Executive”), which shall include outside director
liability coverage for the benefit of the Indemnitee while acting as an Executive. Following the Indemnitee ceasing to be an Executive
or serving in a similar capacity of the Company, for any reason whatsoever, the Company shall maintain for the benefit of the Indemnitee,
and his or her heirs and legal representatives, directors’ and officers’ liability insurance with at least the same
insurance coverage and limits as that provided for the benefit of any other past, present and future Executive of the Company.
The Company shall pay for and on behalf of the Indemnitee any and all deductibles or retentions to which the directors’ and
officers’ liability insurance policy makes the Company or the Indemnitee subject. The Company shall provide the Indemnitee,
where reasonably practicable, with 30 days advance notice of any proposed material change in, cancellation, termination or lapse
in coverage of any directors’ and officers’ liability insurance policy of the Company for the benefit of any Executive
of the Company, and shall provide details of any claim made under such policy. The Company shall purchase any available extended
reporting period available under such cancelled or terminated policy and any available run-off policy, with the same insurance
coverage and limits as the cancelled or terminated policy, and which shall be for a term of not less than six years, prepaid and
non-cancellable. The Company shall promptly notify insurers of any claim and comply with applicable policy terms and conditions
with respect to such notification. In the event of an investigation order made by a regulatory authority that is confidential and
subject to non-disclosure obligations, the Company shall promptly bring such applications as are necessary for an order from the
regulatory authority to enable all required notifications and provision of information to insurers concerning such claim.

 

For greater certainty,
a claim subject to indemnification hereunder shall include any taxes, including any assessment, reassessment, claim or other amount
for taxes, charges, duties, levies, imposts or similar amounts, including any interest and penalties in respect thereof, to which
the Indemnitee may be subject or which the Indemnitee may suffer or incur as a result of, in respect of, arising out of or referable
to any indemnification of the Indemnitee by the Company pursuant to this Agreement, including the payment of insurance premiums
or any payment made by an insurer under an insurance policy, if such payment is deemed to constitute a taxable benefit or otherwise
be or become subject to any tax or levy.

 

4. Proceedings Other Than Proceedings
by or in the Right of the Company.

 

Indemnitee shall be entitled
to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he is, was or is threatened
to be made, a party to any threatened, pending or completed Proceeding, other than a Proceeding by or in the right of the Company.
Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against Expenses, judgments, penalties,
fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf in connection with any such Proceeding
or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Company, and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct
was unlawful.

 

5. Proceedings by or in the Right of
the Company.

 

Indemnitee shall be entitled
to the rights of indemnification provided in this Agreement if, by reason of his Corporate Status, he was or is threatened to be
made, a party to any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment
in its favor. Pursuant to this Agreement, subject to Section 26 hereof, Indemnitee shall be indemnified against amounts paid in
settlement and Expenses actually and reasonably incurred by him or on his behalf in connection with the defense or settlement of
any such Proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests
of the Company. Notwithstanding the foregoing, no indemnification under this paragraph shall be made in respect of (1) a threatened
or pending Proceeding which is settled or otherwise disposed of, or (2) any claim, issue or matter as to which such person shall
have been adjudged to be liable to the Company, unless and only to the extent that the court in which such Proceeding shall have
been brought, was brought or is pending, shall determine, upon application, that Indemnitee is fairly and reasonably entitled to
indemnity for such portion of the settlement amount and Expenses as the court deems proper.

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6. Indemnification for Expenses of
Party Who is Wholly or Partly Successful.

 

Notwithstanding any other
provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status,
a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified against all Expenses (and,
when eligible hereunder, amounts paid in settlement) actually and reasonably incurred by him or on his behalf in connection therewith.
If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses (and, when
eligible hereunder, amount paid in settlement) actually and reasonably incurred by him or on his behalf in connection with each
successfully resolved claim, issue or matter. For purposes of this Agreement, the term “successful, on the merits or otherwise,”
includes, but is not limited to, (i) any termination, withdrawal, or dismissal (with or without prejudice) of any Proceeding against
the Indemnitee without any express finding of liability or guilt against him, and (ii) the expiration of 90 days after the making
of any claim or threat of a Proceeding without the institution of the same and without any promise or payment made to induce a
settlement.

 

7. Indemnification for Expenses as
a Witness.

 

Notwithstanding any other
provision of this Agreement except for Section 26 hereof, to the extent that Indemnitee is, by reason of his Corporate Status,
a witness in any Proceeding, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf
in connection therewith.

 

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8. Advancement of Expenses and Other
Amounts.

 

Subject to Section 26 hereof,
the Company shall advance all Expenses, judgments, penalties, fines and, when eligible hereunder, amounts paid in settlement, incurred
by or on behalf of Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the Company of a statement
or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition
of such Proceeding. Such statement or statements shall reasonably evidence the Expenses, judgments, penalties, fines and amounts
paid in settlement, incurred by Indemnitee and shall include or be preceded or accompanied by an agreement by or on behalf of Indemnitee
to repay any Expenses, judgments, penalties, fines and amounts paid in settlement advanced if it shall ultimately be determined
that Indemnitee is not entitled to be indemnified against such Expenses, judgments, penalties, fines and, when eligible hereunder,
amounts paid in settlement. In connection with any request for advancement of Expenses, judgments, penalties, fines and amounts
paid in settlement, Indemnitee shall not be required to provide any documentation or information to the extent that the provision
thereof would undermine or otherwise jeopardize attorney-client privilege. The Company’s obligation in respect of the advancement
of Expenses, judgments, penalties, fines and amounts paid in settlement in connection with a criminal Proceeding in which Indemnitee
is a defendant shall terminate at such time as Indemnitee pleads guilty or is convicted after trial and such conviction becomes
final and no longer subject to appeal. Advances shall be unsecured and interest free. Advances shall be made without regard to
Indemnitee’s ability to repay such amounts and without regard to Indemnitee’s ultimate entitlement to indemnification
under the other provisions of this Agreement.

 

9. Procedure for Determination of Entitlement
to Indemnification.

 

9.1 To obtain indemnification
under this Agreement in connection with any Proceeding, and for the duration thereof, Indemnitee shall submit to the Company a
written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and
is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the
Company shall, promptly upon receipt of any such request for indemnification, advise the Board in writing that Indemnitee has
requested indemnification.

 

9.2 Upon written request
by Indemnitee for indemnification pursuant to Section 9.1 hereof, a determination, if required by applicable law, with respect
to Indemnitee’s entitlement thereto shall be made in such case: (i) if a Change in Control shall have occurred, by Independent
Counsel (unless Indemnitee shall request that such determination be made by the Board or the shareholders, in which case in the
manner provided for in clauses (ii) or (iii) of this Section 9.2) in a written opinion to the Board, a copy of which shall be delivered
to Indemnitee; (ii) if a Change of Control shall not have occurred, at the election of the Company, (A) by the Board by a majority
vote of a quorum consisting of Disinterested Directors, or (B) if a quorum of the Board consisting of Disinterested Directors is
not obtainable, by a majority of a committee of the Board consisting of two or more Disinterested Directors, or (C) by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (D) by the shareholders of the
Company, by a majority vote of a quorum consisting of shareholders who are not parties to the proceeding, or if no such quorum
is obtainable, by a majority vote of shareholders who are not parties to such proceeding; or (iii) as provided in Section 10.2
of this Agreement. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within
ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable
advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees
and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall
be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company
hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

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9.3 If a Change of
Control shall have occurred, Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection
be made by the Board), and Indemnitee (or the Board, as the case may be) shall give written notice to the other party advising
it of the identity of Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within
seven days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case
may be, a written objection to such selection. Such objection may be asserted only on the ground that Independent Counsel so selected
does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection
shall set forth with particularity the factual basis of such assertion. If such written objection is made, Independent Counsel
so selected may not serve as Independent Counsel unless and until a court has determined that such objection is without merit.
If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 9.1 hereof, no
Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent
jurisdiction, for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection
of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person
as such court shall designate, and the person with respect to whom an objection is so resolved or the person so appointed shall
act as Independent Counsel under Section 9.2 hereof. The Company shall pay any and all reasonable fees and expenses of Independent
Counsel incurred by such Independent Counsel in connection with its actions pursuant to this Agreement, and the Company shall
pay all reasonable fees and expenses incident to the procedures of this Section 9.3, regardless of the manner in which such Independent
Counsel was selected or appointed. Upon the due commencement date of any judicial proceeding pursuant to Section 11.1(iii) of
this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to
the applicable standards of professional conduct then prevailing).

 

10. Presumptions and Effects of Certain
Proceedings.

 

10.1 In making a determination
with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume
that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in
accordance with Section 9.1 of this Agreement, and the Company shall have the burden of proof to overcome that presumption by clear
and convincing evidence in connection with the making by any person, persons or entity of any determination contrary to that presumption.

 

10.2 If the person,
persons or entity empowered or selected under Section 9 of this Agreement to determine whether Indemnitee is entitled to indemnification
shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification,
absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification
under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional
thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good
faith require(s) such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and
provided, further, however, that the foregoing provisions of this Section 10.2 shall not apply (i) if the determination of entitlement
to indemnification is to be made by the shareholders pursuant to Section 9.2 of this Agreement and if (A) within 15 days after
receipt by the Company of the request for such determination the Board has resolved to submit such determination to the shareholders
for their consideration at an annual meeting thereof to be held within 75 days after such receipt and such determination is made
thereat, or (B) a special meeting of shareholders is called within 15 days after such receipt for the purpose of making such determination,
such meeting is held for such purpose within 60 days after having been so called and such determination is made thereat, or (ii)
if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement.
In connection with each meeting at which a shareholder determination will be made, the Company shall solicit proxies that expressly
include a proposal to indemnify or reimburse the Indemnitee. The Company shall afford the Indemnitee ample opportunity to present
evidence of the facts upon which the Indemnitee relies for indemnification in any Company proxy statement relating to such shareholder
determination. Subject to the fiduciary duties of its members under applicable law, the Board will not recommend against indemnification
or reimbursement in any proxy statement relating to the proposal to indemnify or reimburse the Indemnitee.

 

10.3 The termination
of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo
contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect
the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which
he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that his conduct was unlawful.

 

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10.4 Reliance as
Safe Harbor.

 

For purposes of this Agreement,
the Indemnitee shall be deemed to have acted in good faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the Company, or, with respect to any criminal Proceeding, to have had no reasonable cause to believe his conduct
was unlawful, if his action is based on (i) the records or books of account of the Company, or another enterprise, including financial
statements, (ii) information supplied to him by the officers of the Company or another enterprise in the course of their duties,
(iii) the advice of legal counsel for the Company or another enterprise, or of an independent certified public accountant or an
appraiser or other expert selected with reasonable care by the Company or another enterprise. The term “another enterprise”
as used in this Section shall mean any other corporation or any partnership, joint venture, trust, employee benefit plan or other
enterprise of which the Indemnitee is or was serving at the request of the Company as a director, officer, partner, trustee, employee
or agent. The provisions of this Section shall not be deemed to be exclusive or to limit in any way the other circumstances in
which the Indemnitee may be deemed to have met the applicable standard of conduct set forth herein. Whether or not the foregoing
provisions of this Section 10.4 are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good
faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to
any criminal Proceeding, to have had no reasonable cause to believe Indemnitee’s conduct was unlawful. Anyone seeking to
overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

 

11. Remedies of Indemnitee.

 

11.1 In the event
that (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under
this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) the determination
of indemnification is to be made by Independent Counsel pursuant to Section 9.2 of this Agreement and such determination shall
not have been made and delivered in a written opinion within sixty (60) days after receipt by the Company of the request for indemnification,
(iv) payment of indemnification is not made pursuant to Section 7 of this Agreement within thirty (30) days after receipt by the
Company of a written request therefor, or (v) payment of indemnification is not made within thirty (30) days after a determination
has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section
9 or 10 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of New York, or
in any other court of competent jurisdiction, of his entitlement to such indemnification or advancement of Expenses, judgments,
penalties, fines or, when eligible hereunder, amounts paid in settlement. The Company shall not oppose Indemnitee’s right
to seek any such adjudication.

 

11.2 In the event
that a determination shall have been made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification,
any judicial proceeding commenced pursuant to this Section shall be conducted in all respects as a de novo trial on the merits
and Indemnitee shall not be prejudiced by reason of that adverse determination.

 

11.3 If a determination
shall have been made or deemed to have been made pursuant to Section 9 or 10 of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or (ii) prohibition of such indemnification under applicable law.

 

11.4 The Company shall
be precluded from asserting in any judicial proceeding commenced pursuant to this Section that the procedures and presumptions
of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all
the provisions of this Agreement.

 

11.5 In the event
that Indemnitee, pursuant to this Section, seeks a judicial adjudication of his rights under, or to recover damages for breach
of, this Agreement or any other agreement, including any other indemnification, contribution or advancement agreement, or any provision
of the certificate of incorporation or by-laws of the Company now or hereafter in effect, or for recovery under directors’
and officers’ liability insurance policies maintained by the Company, Indemnitee shall be entitled to recover from the Company,
and shall be indemnified by the Company against, any and all expenses (of the kinds described in the definition of Expenses) actually
and reasonably incurred by him in such judicial adjudication, but only if he prevails therein. If it shall be determined in such
judicial adjudication that Indemnitee is entitled to receive less than all of the indemnification or advancement of expenses sought,
the expenses incurred by Indemnitee in connection with such judicial adjudication shall be appropriately prorated. In addition,
the Company shall, if so requested by Indemnitee, advance the foregoing expenses to Indemnitee, subject to and in accordance with
Section 8.

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12. Procedure Regarding Indemnification.

 

With respect to any Proceedings,
the Indemnitee, prior to taking any action with respect to such Proceeding, shall consult with the Company as to the procedure
to be followed in defending, settling, or compromising the Proceeding and may not consent to any settlement or compromise of the
Proceeding without the written consent of the Company (which consent may not be unreasonably withheld or delayed). The Company
shall be entitled to participate in defending, settling or compromising any Proceeding and to assume the defense of such Proceeding
with counsel of its choice and shall assume such defense if requested by the Indemnitee. Notwithstanding the election by, or obligation
of, the Company to assume the defense of a Proceeding, the Indemnitee shall have the right to participate in the defense of such
Proceeding and to employ counsel of Indemnitee's choice, but the fees and expenses of such counsel shall be at the expense of
the Indemnitee unless (i) the employment of such counsel has been authorized in writing by the Company, or (ii) the Indemnitee
has reasonably concluded that there may be defenses available to him which are different from or additional to those available
to the Company (in which latter case the Company shall not have the right to direct the defense of such Proceeding on behalf of
the Indemnitee), in either of which events the fees and expenses of not more than one additional firm of attorneys selected by
the Indemnitee shall be borne by the Company. If the Company assumes the defense of a Proceeding, then counsel for the Company
and Indemnitee shall keep Indemnitee reasonably informed of the status of the Proceeding and promptly send to Indemnitee copies
of all documents filed or produced in the Proceeding, and the Company shall not compromise or settle any such Proceeding without
the written consent of the Indemnitee (which consent may not be unreasonably withheld or delayed) if the relief provided shall
be other than monetary damages and shall promptly notify the Indemnitee of any settlement and the amount thereof.

 

13. Non-Exclusivity; Survival of Rights;
Insurance; Subrogation; Contribution.

 

13.1 The rights of
indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other
rights to which Indemnitee may at any time be entitled under applicable law, the certificate of incorporation or by-laws of the
Company, any agreement, a vote of shareholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of
this Agreement or any provision hereof shall be effective as to any Indemnitee with respect to any action taken or omitted by such
Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.

 

13.2 To the extent
that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, agents
or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise
which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with
its or their terms to the maximum extent of the coverage available for any such director, officer, employee, agent or fiduciary
under such policy or policies.

 

13.3 In the event
of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery
of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of
such documents as are reasonably necessary to enable the Company to bring suit to enforce such rights.

 

13.4 The Company
shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent
that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

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13.5 If a determination
is made that Indemnitee is not entitled to indemnification, after Indemnitee submits a written request therefor, under this Agreement,
then in respect of any threatened, pending or completed Proceeding in which the Company is jointly liability with the Indemnitee
(or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts
paid in settlement by the Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the
Company on the one hand and the Indemnitee on the other hand from the transaction from which Proceeding arose, and (ii) the relative
fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events that resulted in such
Expenses, judgments, fines or amounts paid in settlement, as well as any other relevant equitable considerations. The relative
fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things,
the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting
in such Expenses, judgments, fines or amounts paid in settlement. The Company agrees that it would not be just and equitable if
contribution pursuant to this Section were determined by pro rata allocation or any other method of allocation that does not take
into account the foregoing equitable considerations. The determination as to the amount of the contribution, if any, shall be made
by: (i) a court of competent jurisdiction upon the application of both the Indemnitee and the Company (if the Proceeding had been
brought in, and final determination had been rendered by such court); (ii) the Board by a majority vote of a quorum consisting
of Disinterested Directors; or (iii) Independent Counsel, if a quorum is not obtainable for purpose of (ii) above, or, even if
obtainable, a quorum of Disinterested Directors so directs.

 

14. Duration of Agreement.

 

This Agreement shall continue
until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director
and/or officer of the Company, or (b) the final termination of all pending Proceedings in respect of which Indemnitee is granted
rights of indemnification or advancement of Expenses, judgments, penalties, fines or amounts paid in settlement hereunder and
or any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement. This Agreement shall be binding upon the Company
and its successors and assigns and shall inure to the benefit of Indemnitee and his spouse, heirs, executors, personal representatives
and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation,
or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement
in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform if no such succession had taken place.

 

15. Severability.

 

If any provision or provisions
of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this
Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the
intent manifested by the provision held invalid, illegal or unenforceable.

 

16. Entire Agreement.

 

This Agreement constitutes
the entire agreement between the Company and the Indemnitee with respect to the subject matter hereof and supersedes all prior
agreements, understanding, negotiations and discussion, both written and oral, between the parties hereto with respect to such
subject matter (the “Prior Agreements”); provided, however, that if this Agreement shall ever be held void or unenforceable
for any reasons whatsoever, and is not reformed pursuant to Section 15 hereof, then (i) this Agreement shall not be deemed to have
superseded any Prior Agreements; (ii) all of such Prior Agreements shall be deemed to be in full force and effect notwithstanding
the execution of this Agreement; and (iii) the Indemnitee shall be entitled to maximum indemnification benefits provided under
any Prior Agreements, as well as those provided under applicable law, the certificate of incorporation or by-laws of the Company,
a vote of shareholders or resolution of directors.

    9 

     

    

 

17. Exception to Right of Indemnification
or Advancement of Expenses.

 

17.1 Except as provided
in Section 11.5, Indemnitee shall not be entitled to indemnification or advancement of Expenses, judgments, penalties, fines and
amounts paid in settlement under this Agreement with respect to any Proceeding, or any claim therein, brought or made by him against
the Company.

 

17.2 Indemnitee shall
not be entitled to indemnification or advancement of Expenses under this Agreement with respect to any Proceeding, or any claim
therein, arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Exchange Act or Company
similar successor statute.

 

18. Covenant Not to Sue; Limitation
of Actions; Release of Claims.

 

No legal action shall be
brought and no cause of action shall be asserted by or on behalf of the Company (or any of its subsidiaries) against the Indemnitee,
his spouse, heirs, executors, personal representatives or administrators after the expiration of two (2) years from the date of
accrual of such cause of action and any claim or cause of action of the Company (or any of its subsidiaries) shall be extinguished
and deemed released unless asserted by the filing of a legal action within such two (2) year period; provided, however, that if
any shorter period of limitation is otherwise applicable to any such cause of action, such shorter period shall govern.

 

19. Identical Counterparts.

 

This Agreement may be executed
in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute
one and the same Agreement.

 

20. Headings.

 

The headings of the paragraphs
of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

 

21. Modification and Waiver.

 

No supplement, modification
or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar)
nor shall such waiver constitute a continuing waiver.

 

22. Notice by Indemnitee.

 

Indemnitee agrees promptly
to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or
other document relating any Proceeding or matter which may be subject to indemnification or advancement of Expenses, judgments,
penalties, fines or amounts paid in settlement covered hereunder. The failure to notify the Company on a timely basis shall not
constitute a waiver of Indemnitee’s rights under this Agreement, except to the extent that such failure or delay (i) causes
the amounts paid or to be paid by the Company to be greater than they otherwise would have been, (ii) adversely affects the Company’s
ability to obtain for itself or Indemnitee coverage or proceeds under any insurance policy available to the Company or Indemnitee,
or (iii) otherwise results in prejudice to the Company.

    10 

     

    

 

23. Notices.

 

All notices, requests,
demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by
hand and receipted for by the party to whom such notice or other communication shall have been directed, or (ii) mailed by certified
or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

 

If to Indemnitee, to:

 

If to the Company, to:

 

Northern Genesis Acquisition
Corp.

4801 Main Street, Suite
1000

Kansas City, MO 64112

 

or to such other address or such other person
as Indemnitee or the Company shall designate in writing in accordance with this Section, except that notices regarding changes
in notices shall be effective only upon receipt.

 

24. Governing Law.

 

The parties agree that
this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable
to contracts made and performed in that state without giving effect to the principles of conflicts of laws. The Company and Indemnitee
each hereby irrevocably consents to the jurisdiction of the courts of the State of New York and the federal courts within the State
for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement and agrees that any
action instituted under this Agreement shall be brought only in the United States District Court for the Southern District of New
York and any New York State court within that District.

 

25. Mutual Acknowledgment.

 

Both the Company and Indemnitee
acknowledge that, in certain instances, Federal law or applicable public policy may prohibit the Company from indemnifying its
directors and officers under this Agreement or otherwise. Indemnitee understands and acknowledges that the Company has undertaken
or may be required in the future in certain circumstances to undertake with the Securities and Exchange Commission to submit the
question of indemnification to a court for a determination of the Company’s right under public policy to indemnify Indemnitee.

 

26. Waiver of Claims to Trust Account.

 

Indemnitee hereby agrees
that it does not have any right, title, interest or claim of any kind (each, a “Claim”) in or to any monies in the
trust account established in connection with the Company’s initial public offering for the benefit of the Company and holders
of shares issued in such offering, and hereby waives any Claim it may have in the future as a result of, or arising out of, any
services provided to the Company and will not seek recourse against such trust account for any reason whatsoever.

 

27. Miscellaneous.

 

Use of the masculine pronoun shall be deemed
to include usage of the feminine pronoun where appropriate.

 

[Signature Page Follows]

 

    11 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the day and year first above written.

 

	 	NORTHERN GENESIS ACQUISITION CORP.

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	INDEMNITEE
	 	 
	 	 

 

[Signature Page to Indemnification Agreement]cik0001479615-ex101_167.htm

EXHIBIT 10.1

 

	
 
	
 

	
 
	
Silence 
Therapeutics plc 

The Silence Therapeutics plc 2018
Employee Long Term 
Incentive Plan

	
 

 

	
	
 

	
Board adoption:

February 2nd, 2018

Plan expires:

February 1st, 2028

Shareholder approval:

23 July 2020

 

 

 

	

	
 

	
 

	
PricewaterhouseCoopers LLP, The Atrium, 1 Harefield Road, Uxbridge, Middlesex, UB8 1EX 

T: +44 (0) 1895 522 000, F: +44 (0) 1895 522 020, www.pwc.co.uk 

PricewaterhouseCoopers LLP is a limited liability partnership registered in England with registered number OC303525. The registered office of PricewaterhouseCoopers LLP is 1 Embankment Place, London WC2N 6RH.PricewaterhouseCoopers LLP is authorised and regulated by theFinancial Conduct Authority for designated investment business.

 

The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

 

	
 
	
 
	
 

	
Table of contents
	
 

	
1.
	
Grant of Awards
	
1

	
2.
	
Plan limits
	
3

	
3.
	
Individual limit
	
4

	
4.
	
Award Price
	
4

	
5.
	
Performance Target and conditions
	
5

	
6.
	
Malus
	
5

	
7.
	
Clawback
	
6

	
8.
	
Vesting of Awards (and exercise of Options)
	
9

	
9.
	
Holding Period
	
12

	
10.
	
Vesting of Awards (and exercise of Options) in special circumstances
	
13

	
11.
	
Takeover and other corporate events
	
15

	
12.
	
Exchange of Awards
	
17

	
13.
	
Lapse of Awards
	
18

	
14.
	
Adjustment of Awards on Reorganisation
	
18

	
15.
	
Tax and social security withholding
	
18

	
16.
	
Rights and listing of Plan Shares
	
19

	
17.
	
Relationship of the Plan to contract of employment
	
19

	
18.
	
Administration of the Plan
	
20

	
19.
	
Amendment of the Plan
	
21

	
20.
	
Notices
	
21

	
21.
	
Governing law and jurisdiction
	
21

	
22.
	
Interpretation
	
22

 

 

 

The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
1.
	
Grant of Awards

	
1.1.
	
Awards granted by Grantor

Subject to Rules 1.5, 1.6, 1.7 and 18.3, the Grantor may from time to time grant Awards to Eligible Employees.

	
1.2.
	
Terms of Awards and Directors’ Remuneration Policy limitations

Subject to the Rules, the Grantor will in its absolute discretion decide whether or not any Awards are to be granted at any particular time and, if they are, to whom they are granted and the terms of such Awards. Where Awards are not granted by the Board, the terms must be approved in advance by the Board.

Where the Company has in place a binding Directors’ Remuneration Policy approved by the Company in a general meeting, the terms of an Award to be granted to an Eligible Employee who is a director of the Company must fall within the scope of the Directors’ Remuneration Policy most recently approved by the Company in a general meeting. Such terms may include by way of example but without limitation any relevant individual limit in Rule 3 and any Performance Target set under Rule 5.

	
1.3.
	
Procedure for grant of Awards and Award Date

An Award shall be granted by the Grantor passing a resolution. The Award Date shall be the date on which the Grantor passes the resolution or any later date specified in the resolution and allowed by Rule 1.5. The grant of an Award shall be evidenced by a deed executed by or on behalf of the person granting the Award. 

An Award Certificate or a Restricted Share Agreement (as applicable) shall be issued to each Award Holder as soon as reasonably practicable following the grant of the Award setting out details of the Award determined in accordance with Rule 1.4 and, where applicable, Rule 1.12.

	
1.4.
	
Terms and conditions set at grant

The Grantor shall, at the time of grant, determine:

	
1.
	
whether the Award comprises an Option, a Conditional Share Award or Restricted Shares;

	
2.
	
the Award Date;

	
3.
	
the number of Plan Shares subject to the Award or the basis on which the number of Plan Shares will be calculated;

	
4.
	
the Award Price (if any);

	
5.
	
the date or dates on which the Award will normally Vest;

	
6.
	
whether or not any dividend equivalents will be payable under Rule 8.9;

	
7.
	
in the case of an Option, the Exercise Period;

	
8.
	
any Performance Target; 

	
9.
	
any Holding Period;

	
10.
	
whether Rule 6 (Malus) and/or Rule 7 (Clawback) shall apply to the Award; 

	
11.
	
any other conditions of the Award; and

	
12.
	
where the Award comprises Restricted Shares, any provisions which must be determined under Rule 1.12.

	
1.5.
	
When Awards may be granted

Subject to Rule 1.6, the Grantor may grant Awards at any time after the date of adoption of the Plan. 

	
1.6.
	
When Awards may not be granted

Awards may not be granted:

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
1.
	
when prevented by any Dealing Restrictions; or

	
2.
	
after the 10th anniversary of adoption of the Plan.

	
1.7.
	
Who can be granted Awards

An Award may only be granted to an individual who is an Eligible Employee at the Award Date. Unless the Board decides otherwise, an Award will not be granted to an Eligible Employee who on or before the Award Date has given or received notice of termination of employment (whether or not lawful).

	
1.8.
	
Confirmation of acceptance of Award

The Grantor may require an Eligible Employee who is (or is to be) granted an Award to confirm his acceptance of the Rules and the terms of any Award granted to him by a specified date. Such confirmation will be in a form set by the Grantor (which may require the Eligible Employee to execute a document). The Grantor may provide that the Award will lapse (and as a result be treated as never having been granted) if the confirmation of acceptance is not provided by the specified date. 

	
1.9.
	
Right to refuse Award

An Award Holder may by notice in writing to the Company within 30 days after the Award Date say he does not want his Award in whole or part. In such a case, the Award shall to that extent be treated as never having been granted. 

	
1.10.
	
No payment for an Award

An Award Holder shall not be required to make payment for the grant of an Award unless the Board determines otherwise. Where an Award Holder refuses his Award pursuant to the terms of Rule 1.9, no payment in connection with the refusal is required from the Award Holder or the Grantor.

	
1.11.
	
Awards non-transferable

An Award shall be personal to the Award Holder and, except in the case of the death of an Award Holder, an Award shall not be capable of being transferred, charged or otherwise alienated and shall lapse immediately if the Award Holder purports to transfer, charge or otherwise alienate the Award.

	
1.12.
	
Awards which are Restricted Shares

This Rule 1.12 sets out specific provisions in relation to Restricted Shares.

	
1.
	
An Eligible Employee who is to be granted Restricted Shares must enter into a Restricted Share Agreement with the Grantor providing that to the extent the Award lapses, the Restricted Shares are forfeit and the Restricted Shares will immediately be transferred for no (or nominal) consideration to any person specified by the Grantor. The Restricted Share Agreement will also provide that, except for transfer on death of the Award Holder to his personal representatives or to the extent agreed by the Grantor (and subject to such conditions as it may decide), the Award Holder will not transfer or assign the Restricted Shares subject to his Award during the Vesting Period.

	
2.
	
The Award Holder must sign any document (including a blank stock transfer form) requested by the Grantor relating to the Restricted Shares. The Grantor may provide that the Award will lapse if any such document is not signed within any specified period.

	
3.
	
On or as soon as practicable after the Award Date of Restricted Shares the Grantor will procure that the relevant number of Restricted Shares are transferred (including out of treasury or otherwise) to the Award Holder or another person to be held for the benefit of the Award Holder.

	
4.
	
Except to the extent set out in the Restricted Share Agreement, the Award Holder shall have all the rights in respect of Restricted Shares from the date of transfer until any date on which the Award comprising the Restricted Shares lapses (whether in whole or in part).

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
2.
	
Plan limits

	
2.1.
	
Share Reserve

Subject to the terms of this Rule 2, Awards may be made under the Plan and the Non-Employee LTIP (taking account of Relevant Awards outstanding as at the Plan Restatement Date, but excluding any Relevant Awards that have been settled by the issuance of Plan Shares prior to the Plan Restatement Date) in an aggregate amount up to 8,700,000 Plan Shares (the Share Reserve). For the avoidance of doubt, the Plan and the Non-Employee LTIP shall be treated as a single equity award grant program for purposes of the Share Reserve, such that a grant under either the Plan or the Non-Employee LTIP shall be made from this single Share Reserve.

In addition, the Share Reserve will automatically increase on January 1st each year from 2021 and ending on (and including) January 1, 2028, in an amount equal to 5% of the total number of ordinary shares outstanding on December 31st of the preceding calendar year. Notwithstanding the foregoing, the Board may act prior to January 1st of a given year to provide that there will be no January 1st increase in the Share Reserve for such year or that the increase in the Share Reserve for such year will be a lesser number of Plan Shares than would otherwise occur pursuant to the preceding sentence.

Any increase to the Share Reserve (other than as set forth in the immediately preceding paragraph) must be approved by the passing of an ordinary resolution of the Company in general meeting, if required by applicable law.

	
2.2.
	
Plan Share Recycling

If all or any part of a Relevant Award (whether granted before, on, or after the Plan Restatement Date) expires, lapses or is terminated, exchanged for cash, surrendered, repurchased or cancelled without having been fully exercised, in each case after the Plan Restatement Date, the unused Plan Shares covered by such Relevant Award will return to the Share Reserve and again be available for Awards.  The following actions do not result in an issuance of Plan Shares and accordingly do not reduce the number of Plan Shares subject to the Share Reserve and available for issuance under the Plan: (i) the withholding of Plan Shares that would otherwise be issued to satisfy the exercise, strike or purchase price of an Award; or (ii) the withholding of shares that would otherwise be issued to satisfy a tax withholding obligation in connection with an Award.

	
2.3.
	
Adjustment

The Share Reserve shall be subject to such adjustment as the Board may determine to be appropriate upon any Reorganisation. 

	
2.4.
	
Scaling down

If the granting of an Award would cause the limits in this Rule 2 to be exceeded, such Award shall take effect as an Award over the maximum number of Plan Shares which does not cause the limit to be exceeded. If more than one Award is granted on the same Award Date, the number of Plan Shares which would otherwise be subject to each Award shall be reduced pro rata.

	
3.
	
Individual limit

	
3.1.
	
General

The terms of Awards which may be made to any one Eligible Employee shall be limited as set out in this Rule 3.

	
3.2.
	
Limit

A New Award must not be granted to an Eligible Employee if the result of granting the New Award would be that, at the proposed Award Date, the Market Value of the Plan Shares subject to that Award, when aggregated with the Market Value of the Plan Shares subject to any other New Award granted to him, that Time Vest in each Time Vesting Year in relation to the proposed New Award, would exceed 250% of his Annual Remuneration, subject to the Board determining that exceptional circumstances exist which justify the grant of an Award in excess of such limit in which case the limit shall be extended to not more than 300% of the relevant Eligible Employee’s Annual Remuneration.

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

For the purpose of this Rule 3.2: 

	
1.
	
Annual Remuneration means the higher of:

	
 
	
a.
	
basic salary paid by the Group expressed as an annual rate as at the Award Date; and

	
 
	
b.
	
basic salary paid by the Group for the period of 12 months ending on the last day of the month immediately preceding the month in which the Award Date occurs.

	
2.
	
The Market Value of Plan Shares subject to a New Award shall be measured on the date on which that Award was granted. 

	
3.
	
Time Vest in relation to Plan Shares subject to a New Award means that those Plan Shares reach the date on which they normally Vest (disregarding any Performance Target).

	
4.
	
Time Vesting Year in relation to a New Award means each calendar year ending on each anniversary of the Award Date of the New Award.

	
5.
	
To the extent that a New Award is granted on terms that it is Time Vested on the Award Date, that New Award shall be deemed to Time Vest in the first Time Vesting Year in relation to that New Award.

	
6.
	
To the extent a New Award has become incapable of exercise for any reason in relation to Plan Shares subject to it, those Plan Shares shall not subsequently Time Vest (and accordingly shall no longer be taken into account for the purposes of this Rule 3.2 in connection with further New Awards proposed to be granted to the relevant Eligible Employee).

	
3.3.
	
Scaling down

If the grant of an Award would cause the limit in Rule 3.2 to be exceeded, such Award shall take effect as an Award over the maximum number of Plan Shares which does not cause the limit to be exceeded.

	
4.
	
Award Price

The Award Price (if any) shall be determined by the Grantor and may be any price. 

Where the Grantor has determined that an Award will be satisfied by the issue of new shares and the Award Price per Plan Share is less than the nominal value of a Plan Share, the Company will ensure that at the time of the issue of the Plan Shares arrangements are in place to pay up at least the nominal value of the relevant Plan Shares.

	
5.
	
Performance Target and conditions

	
5.1.
	
Setting of Performance Target and conditions

The Vesting of an Award and the extent to which it Vests will be subject to the satisfaction of any applicable Performance Target and any other conditions set by the Grantor on or before the Award Date.

	
5.2.
	
Nature of Performance Target and conditions

Any Performance Target and any other conditions imposed under Rule 5.1 shall be:

	
1.
	
objective; and

	
2.
	
set out in, or attached in the form of a schedule to, the Award Certificate or Restricted Share Agreement, (as applicable).

	
5.3.
	
Substitution, variation or waiver of Performance Target and conditions

If an event occurs which causes the Grantor to consider that any Performance Target and/or any other conditions imposed under Rule 5.1 subject to which an Award has been granted is no longer appropriate, the Grantor may substitute, vary or waive that Performance Target and/or any other conditions in such manner (and make such consequential amendments to the Rules) as:

	
1.
	
is reasonable in the circumstances; and

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
2.
	
except in the case of waiver, produces a fairer measure of performance and is not materially less difficult to satisfy than if the event had not occurred.

The Award shall then take effect subject to the Performance Target and any other conditions as substituted, varied or waived.

	
5.4.
	
Notification of Award Holders

The Grantor shall, as soon as practicable, notify each Award Holder concerned of any determination made by it under this Rule 5.

	
6.
	
Malus 

Notwithstanding any other provision of the Rules, the Board may, at (or at any time before) the Vesting of an Award to which the Grantor has specified under Rule 1.4 that this Rule 6 applies, reduce the number of Plan Shares subject to an Award in whole or in part (including, for the avoidance of doubt, to nil) in the following circumstances:

	
1.
	
discovery of a material misstatement resulting in an adjustment in the audited consolidated accounts of the Company or the audited accounts of any Group Member; and/or

	
2.
	
the assessment of any Performance Target or condition in respect of an Award was based on error, or inaccurate or misleading information; and/or

	
3.
	
the discovery that any information used to determine the number of Plan Shares subject to an Award was based on error, or inaccurate or misleading information; and/or

	
4.
	
action or conduct of an Award Holder which, in the reasonable opinion of the Board, amounts to negligence, fraud or serious misconduct and results or is reasonably likely to result in:

	
 
	
a.
	
the censure of a Group Member by a regulatory authority; or

	
 
	
b.
	
have had a significant detrimental impact on the reputation of any Group Member provided that the Board is satisfied that the relevant Award Holder was responsible for the censure or reputational damage and that the censure or reputational damage is attributable to him; or 

	
 
	
c.
	
a material adverse effect on the financial position of the Company, any Group Member or to a relevant business unit (as appropriate); or

	
 
	
d.
	
a material adverse effect on the business opportunities and prospects for sustained performance or profitability of the Company, any Group Member or relevant business unit (as appropriate); 

and/or

	
5.
	
if the Award Holder (except in the proper course of his duties) uses or discloses to any third party (or permits or acquiesces to the publication or disclosure of) any Confidential Information, unless: such use or disclosure is authorised by the Company or compelled by law; or the information is already in, or comes into, the publication domain or otherwise than through the Award Holder unauthorised disclosure. 

In determining any reduction which should be applied under this Rule 6, the Board shall act fairly and reasonably but its decision shall be final and binding.

For the avoidance of doubt, any reduction under this Rule 6 may be applied on an individual basis as determined by the Board. Whenever a reduction is made under this Rule 6, the relevant Award shall be treated as having lapsed to that extent.

	
7.
	
Clawback

	
7.1.
	
Trigger Events

In this Rule 7, Trigger Events means: 

	
1.
	
discovery of a material misstatement resulting in an adjustment in the audited consolidated accounts of the Company or the audited accounts of any Group Member for a period that was wholly or partly 

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

		
before the end of the period over which the Performance Target applicable to an Award was assessed; and/or

	
2.
	
the discovery that the assessment of any Performance Target or condition in respect of an Award was based on error, or inaccurate or misleading information; and/or

	
3.
	
the discovery that any information used to determine the number of Plan Shares subject to an Award was based on error, or inaccurate or misleading information; and/or

	
4.
	
action or conduct of an Award Holder which, in the reasonable opinion of the Board, amounts to negligence, fraud or serious misconduct and results or is reasonably likely to result in:

	
 
	
a.
	
the censure of a Group Member by a regulatory authority; or

	
 
	
b.
	
have had a significant detrimental impact on the reputation of any Group Member provided that the Board is satisfied that the relevant Award Holder was responsible for the censure or reputational damage and that the censure or reputational damage is attributable to him; or 

	
 
	
c.
	
a material adverse effect on the financial position of the Company, any Group Member or to a relevant business unit (as appropriate); or

	
 
	
d.
	
a material adverse effect on the business opportunities and prospects for sustained performance or profitability of the Company, any Group Member or relevant business unit (as appropriate); 

and/or

	
5.
	
if the Award Holder (except in the proper course of his duties) uses or discloses to any third party (or permits or acquiesces to the publication or disclosure of) any Confidential Information, unless: such use or disclosure is authorised by the Company or compelled by law; or the information is already in, or comes into, the publication domain or otherwise than through the Award Holder’s unauthorised disclosure. 

	
7.2.
	
Application

Notwithstanding any other provision of the Rules, if at any time during the period of two years (or such longer period as the Board considers is appropriate and has been notified to the Award Holder) following the Vesting of an Award to which the Board has specified under Rule 1.4 that this Rule 7 applies a Trigger Event occurs, then: 

	
1.
	
Rules 7.3 to 7.7 and 7.9 shall apply; and

	
2.
	
where the Award takes the form of an Option and the Award Holder has not exercised such Option, Rule 7.8 shall also apply.

	
7.3.
	
Clawback methods

Where Rule 7.2 applies, the Board may in its absolute discretion require the relevant Award Holder to:

	
1.
	
transfer to the Company (or, if required by the Company, any other person specified by the Company) all or some of the Plan Shares acquired by the Award Holder (or his nominee) pursuant to the Vesting of the Award or, in the case of an Award which is an Option, the exercise of that Option; and/or

	
2.
	
pay to the Company (or if required by the Company, any other person specified by the Company) an amount equivalent to all or part of the proceeds of sale or, in the event of a disposal of the Plan Shares at a price which the Board reasonably determines was less than market value at the time of disposal and where the disposal was not made at arm’s length, an amount equivalent to the market value (as reasonably determined by the Board) at the time of disposal of all or some of the Plan Shares acquired pursuant to the Vesting of the Award or, in the case of an Award that is an Option, the exercise of that Option; and/or

	
3.
	
pay to the Company (or, if required by the Company, any other person specified by the Company) an amount equivalent to all or part of the amount of any cash in respect of an Award paid to or for the benefit of the Award Holder; and/or

	
4.
	
pay to the Company (or, if required by the Company, any other person specified by the Company) an amount equivalent to all or part of any benefit or value derived from or attributable to the Plan Shares referred to in paragraph 1 above (including but not limited to any special dividend or additional or replacement shares) on such terms as the Board may reasonably direct, 

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less in each case the amount of tax and social security contributions actually paid (or due to be paid) by the Award Holder in respect of the acquisition of the Plan Shares and/or payment of cash in respect of an Award.

	
7.4.
	
Award Holder’s obligation to recover tax

In addition to the obligation of the Award Holder as described above, the Award Holder shall use his best endeavours to seek and obtain repayment or credit from HMRC or any relevant overseas tax authority of the tax and social security contributions paid on the Award Holder’s behalf in relation to the Award as soon as reasonably practicable and to notify the Company of such claim and/or receipt of any credit or payment by HMRC (or any relevant overseas tax authority) in this regard. Following such notification the Company will be entitled to require the Award Holder to make a payment to it within 30 days of an amount equivalent to the amount of any payment or credit received from HMRC (or any relevant overseas tax authority).

	
7.5.
	
Authorisation of deductions

By accepting the grant of an Award, the Award Holder authorises the Company or such other Group Member as may be the employer of the Award Holder to make deductions from any payment owing to him including but not limited to salary, bonus, holiday pay or otherwise in respect of any sum which would otherwise be payable by the Award Holder under this Rule 7.

	
7.6.
	
Timing of transfers, payments and repayments

Any transfers, payments or repayments to be made by the Award Holder under this Rule 7 shall be made within 30 days of the date the Award Holder is notified in writing of the transfer required or the amount due, as appropriate.

	
7.7.
	
Additional methods of effecting clawback

In addition to or in substitution for the actions described above that the Board may take under Rule 7.3 (the Actions), the Board may:

	
1.
	
reduce the amount (including, for the avoidance of doubt, to nil) of any future bonus payable to the Award Holder; and/or

	
2.
	
determine that the number of Plan Shares over which an award or right to acquire Plan Shares that may otherwise be granted to the Award Holder under any Employees’ Share Scheme operated by any Group Member (other than any tax-advantaged employee share plan that complies with the requirements of Schedules 2 or 3 of ITEPA 2003) shall be reduced by such number as the Board may determine (including for the avoidance of doubt to nil); and/or

	
3.
	
reduce the number of Plan Shares (including, for the avoidance of doubt, to nil) subject to any award or right to acquire Plan Shares which has been granted to the Award Holder under any Employees’ Share Scheme operated by any Group Member (other than any tax-advantaged employee share plan that complies with the requirements of Schedules 2 to 4 of ITEPA 2003) before the date on which the relevant award or right vests or becomes exercisable by such number as the Board may determine; and/or

	
4.
	
reduce the number of Plan Shares (including, for the avoidance of doubt, to nil) subject to any option to acquire Plan Shares which has been granted to the Award Holder under any Employees’ Share Scheme operated by any Group Member (other than any tax-advantaged employee share plan that complies with the requirements of Schedules 2 to 4 of ITEPA 2003) which has vested but not yet been exercised by such number as the Board may determine,

provided that the total amount represented by:

	
5.
	
reductions under this Rule 7.7;

	
6.
	
reductions under Rule 7.8; and

	
7.
	
the amount represented by any transfer and any amount or value payable under Rule 7.3,

shall not, in the Board’s reasonable opinion, exceed the amount represented by any transfer and any amount or value which would have been due if the Board had only carried out the Actions.

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7.8.
	
Reduction of unexercised Option

Where Rule 7.2 applies and the Award takes the form of an Option which the Award Holder has not exercised in full, the Board may in its absolute discretion reduce the number of Plan Shares subject to such Option (including, for the avoidance of doubt, to nil). In addition to or in substitution for reducing such Option, the Board may take any of the actions set out in Rules 7.7.1 to 7.7.4 provided that the total amount represented by reductions under Rules 7.7.1 to 7.7.4 and any reduction of the Option under this Rule 7.8 shall not, in the Board’s reasonable opinion, exceed the amount which would have been represented by the reduction of the Option only.

	
7.9.
	
General provisions

In carrying out any action under this Rule 7, the Board shall act fairly and reasonably but its decision shall be final and binding.

For the avoidance of doubt, any action carried out under this Rule 7 may be applied on an individual basis as determined by the Board. Whenever a reduction of an award, right to acquire Plan Shares or option is made under this Rule 7, the relevant award, right to acquire Plan Shares or option shall be treated to that extent as having lapsed.

	
7.10.
	
Interaction with other plans

The Board may determine at any time to reduce the number of Plan Shares subject to an Award (including, for the avoidance of doubt, to nil) either:

	
1.
	
to give effect to one or more provisions of any form which are equivalent to those in Rule 7 (Clawback Provisions) contained in any Employees’ Share Scheme operated by any Group Member (other than the Plan) or any bonus plan operated by any Group Member; or 

	
2.
	
as an alternative to giving effect to any such Clawback Provisions.  

The value of any reduction under Rule 7.10.1 shall be determined in accordance with the terms of the relevant Clawback Provisions in the relevant Employees’ Share Scheme or bonus plan as interpreted by the Board in its absolute discretion.

The value of any reduction under Rule 7.10.2 shall be determined as if the terms of the relevant Clawback Provisions in the relevant Employees’ Share Scheme or bonus plan applied as interpreted by the Board in its absolute discretion.

	
8.
	
Vesting of Awards (and exercise of Options)

	
8.1.
	
Earliest date for Vesting of Awards

Subject to Rules 5, 10 and 11, an Award will Vest on the later of:

	
1.
	
the relevant date specified under Rule 1.4.5; and

	
2.
	
the date on which the Board determines that the Performance Target and/or any other conditions imposed under Rule 1.4.11 or Rule 5.1 have been satisfied.

The Grantor may determine that Vesting of the Award shall be delayed until any relevant investigation or other procedure relevant to an event falling within the scope of Rule 6 or Rule 7.10  has been completed.

	
8.2.
	
Effect of Award Vesting

Subject to the Rules, the effect of an Award Vesting shall be:

	
1.
	
in the case of an Option, that the Award Holder is entitled to exercise the Option at any time during the Exercise Period to the extent that it has Vested;

	
2.
	
in the case of a Conditional Share Award, that the Award Holder shall become entitled to the Plan Shares to the extent that the Award has Vested; and

	
3.
	
in the case of Restricted Shares, the restrictions set out in the relevant Restricted Share Agreement shall cease to apply to the extent that the Award has Vested.

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8.3.
	
No Vesting or exercise while Dealing Restrictions apply

Where the Vesting of an Award is prevented by any Dealing Restriction, the Vesting of that Award shall be delayed until the Dealing Restriction no longer prevents it. Plan Shares may not be issued or transferred to an Award Holder while Dealing Restrictions prevent such issue or transfer.  In the case of an Option, the Option may not be exercised while Dealing Restrictions prevent such exercise.

	
8.4.
	
Effect of cessation of Relevant Employment

	
1.
	
Subject to Rule 10, an Old Award shall Vest and an Old Option may be exercised only while the Award Holder is in Relevant Employment and if an Award Holder ceases to be in Relevant Employment, any Old Award granted to him shall lapse on cessation. 

	
2.
	
An Award Holder who has given or received notice of termination of Relevant Employment (whether or not lawful) may not exercise an Old Option during any period when the notice is effective and an Old Award granted to him shall not Vest during this period, unless the Board determines otherwise. If an Old Award would otherwise have Vested during this period, and the notice is withdrawn by the relevant party, subject to the Rules the Old Award will Vest when the notice is withdrawn.

	
3.
	
A New Award shall only Vest while the Award Holder is in Relevant Employment and if an Award Holder ceases to be in Relevant Employment, any part of a New Award granted to him that has not Vested at the date of cessation shall lapse on cessation.

	
4.
	
Where an Award Holder ceases to be in Relevant Employment for any of the reasons set out in Rule 10.2.1 to 10.2.4 or because of termination by a Group Member of his Relevant Employment (other than summary dismissal or termination for "cause" as defined in his employment agreement with the relevant Group Member) or death (each a Good Leaver Reason), he (or, following his death, his personal representatives, having established title to the satisfaction of the Company) shall be entitled to exercise any part of a New Option that has Vested at the date of cessation for the period of one year following that cessation (or such longer or shorter period, not less than 90 days, that the Board may determine).  To the extent not exercised at the end of that period the New Option shall lapse.  Where an Award Holder ceases to be in Relevant Employment for any reason other than a Good Leaver Reason any part of a New Option that has not been exercised shall lapse on the date of cessation.

	
5.
	
This Rule 8.4 shall apply where the Award Holder ceases to be in Relevant Employment in any circumstances (including, in particular, but not by way of limitation, where the Award Holder is dismissed unfairly, wrongfully, in breach of contract or otherwise).

	
8.5.
	
Options may be exercised in whole or in part

Subject to Rules 8.3, 8.4 and 15, a Vested Option may be exercised in whole or in part at any time. If exercised in part, the unexercised part of the Option shall not lapse as a result and shall remain exercisable until such time as it lapses in accordance with the Rules.

	
8.6.
	
Procedure for exercise of Options

An Option shall be exercised by the Award Holder giving notice to the Grantor (or any person appointed by the Grantor) in the form from time to time prescribed by the Board, which may include (for the avoidance of doubt) any electronic and/or online notification.  Such notice shall specify the number of Plan Shares in respect of which the Option is being exercised, and be accompanied by either the Award Price (if any) in full or confirmation of arrangements satisfactory to the Grantor for the payment of the Award Price, together with any payment and/or documentation required under Rule 15 and, if required, the Award Certificate.

For the avoidance of doubt, the date of exercise of an Option shall be the later of the date of receipt of a duly completed valid notice of exercise (or any later date as may be specified in that notice of exercise) and the date of compliance with the requirements of the first paragraph of this Rule 8.6.

	
8.7.
	
Issue or transfer of Plan Shares

Subject to Rules 8.3, 8.8 and 15 and to any necessary consents and to compliance by the Award Holder with the Rules, the Grantor shall as soon as reasonably practicable and in any event not later than 30 days after:

	
1.
	
the exercise date, in the case of an Option, arrange for the issue or transfer to the Award Holder (or a nominee specified or permitted by the Company) of the number of Plan Shares specified in the notice of 

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exercise and provide to the Award Holder, in the case of the partial exercise of an Option, an Award Certificate in respect of, or the original Award Certificate updated to show, the unexercised part of the Option; and

	
2.
	
the Vesting of an Award, in the case of a Conditional Share Award, arrange for the issue or transfer to the Award Holder (or a nominee specified or permitted by the Company) of the number of Plan Shares in respect of which the Award has Vested.

	
8.8.
	
Net or cash settling

Subject to Rule 15, the Grantor may on exercise of an Option:

	
1.
	
make a cash payment to the Award Holder equal to the Gain on the date of exercise of the Option; or

	
2.
	
arrange for the issue or transfer to the Award Holder of Plan Shares with a Market Value equal to the Gain on the date of exercise of the Option (rounded down to the nearest whole Plan Share). The Award Holder shall not be required to make payment for these Plan Shares.

Subject to Rule 15, the Grantor may on the Vesting of a Conditional Share Award make a cash payment to the Award Holder equal to the Market Value of the Plan Shares in respect of which the Conditional Share Award has Vested, less the Award Price (if any).

Where the Company settles an Award in the manner described in this Rule 8.8, this shall be in full and final satisfaction of the Award Holder’s rights under the Award.

	
8.9.
	
Dividend equivalents

An Award (except an Award comprising Restricted Shares where the right to dividends has not been waived) may include the right to receive an amount in Plan Shares or cash on or following Vesting equal in value to the dividends which were payable on the number of Plan Shares in respect of which the Award has Vested during the period between the Award Date and the date of Vesting (or in the case of an Option the number of Plan Shares subject to the Option shall be increased as at the date of Vesting by the relevant value in Plan Shares). 

The Grantor may determine at its absolute discretion whether or not the method used to calculate the value of dividends shall assume that such dividends have been reinvested into Plan Shares.

The Grantor may decide at any time not to apply this Rule 8.9 to all or any part of a special dividend or dividend in specie.

	
8.10.
	
US Taxpayers

This Rule 8.10 shall apply to US Taxpayers to the extent necessary to avoid taxation under Section 409A of the US Internal Revenue Code of 1986, as amended, including any applicable regulations and guidance thereunder. Notwithstanding anything to the contrary contained in the Plan, no Option may be exercised later than 2.5 calendar months after the end of the Taxable Year in which the Option first becomes exercisable, provided that the Option shall lapse on the date it would have lapsed had this rule not applied. The Rules shall be interpreted accordingly. 

For the purposes of this Rule 8.10, Taxable Year means the 12 month period in respect of which the Award Holder is obliged to pay US Tax or, if it would result in a longer exercise period, the 12 month period in respect of which the Award Holder’s employing company is obliged to pay tax. US Taxpayer means a person who is subject to taxation under the tax rules of the United States of America which does not include an Award Holder who is a non-resident alien throughout the period of participation in the Plan and who has no US workdays during such participation.

	
9.
	
Holding Period

	
9.1.
	
Definitions

In this Rule 9:

Holding Period Holder means a trustee or nominee designated by the Grantor in accordance with this Rule 9; and

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Holding Period Shares means Plan Shares which are or were the subject of an Award to which a Holding Period applies and in respect of which the Holding Period has not ended in accordance with this Rule 9.

	
9.2.
	
Application

This Rule 9 applies to the extent that some or all of the Plan Shares acquired on Vesting of an Award (or exercise of an Option) are subject to a Holding Period. 

	
9.3.
	
Issue or transfer to Holding Period Holder

Instead of arranging for the issue or transfer of the Holding Period Shares to the Award Holder on Vesting of a Conditional Share Award or exercise of an Option under Rule 8.7, the Board may arrange for the Holding Period Shares to be issued or transferred to the Holding Period Holder, as designated by the Board, to be held for the benefit of the Award Holder. Any balance of the Plan Shares in respect of which an Award Vests or is exercised will be issued or transferred as described in Rule 8.7.

If the Award took the form of Restricted Shares, the Holding Period Shares will be transferred to (or continue to be held by) the Holding Period Holder on the terms of this Rule 9.

	
9.4.
	
No transfer during Holding Period

The Award Holder or Holding Period Holder may not transfer, assign or otherwise dispose of any of the Holding Period Shares or any interest in them (and the Award Holder may not instruct the Holding Period Holder to do so) during the Holding Period except in the following circumstances:

	
1.
	
the sale of sufficient entitlements nil-paid in relation to  Holding Period Shares to take up the balance of the entitlements under a rights issue; and

	
2.
	
the sale of sufficient Holding Period Shares to satisfy any liability to tax or employee social security contributions (or where Rule 15.2 applies, Employer’s NIC) arising in relation to Holding Period Shares.

	
9.5.
	
Shareholder rights during Holding Period

	
1.
	
Unless the Board decides otherwise, the restrictions in this Rule 9 will apply to any cash or assets (other than ordinary dividends) received in respect of the Holding Period Shares and such cash or assets will be held by the Holding Period Holder until the end of the Holding Period.

	
2.
	
During the Holding Period, the Holding Period Holder will be entitled to vote and have all other rights of a shareholder in respect of the Holding Period Shares.

	
9.6.
	
Ceasing Relevant Employment during the Holding Period

Ceasing Relevant Employment during the Holding Period will have no impact on the provisions of this Rule 9, unless the Board decides otherwise, save where cessation is by reason of death in which case the Holding Period shall immediately be deemed to have ended.

	
9.7.
	
Clawback

For the avoidance of doubt, Rule 7 shall apply to the Holding Period Shares in the same way that it applies to any Plan Shares acquired by an Award Holder following Vesting of an Award or exercise of an Option which are not Holding Period Shares.

	
9.8.
	
End of Holding Period

Subject to the provisions of this Rule 9, the Holding Period will end on the earliest of the following:

	
1.
	
the date set as the end of the Holding Period under Rule 1.4; 

	
2.
	
subject to Rule 12.1, the relevant date on which an Award would have Vested under Rules 11.1 to 11.4;

	
3.
	
if the Board so allows, the circumstances in which any event described in Rule 11.5 would apply; and

	
4.
	
any other circumstances in the absolute discretion of the Board. Where this paragraph 4 applies, the Board may additionally determine that the Holding Period shall end only for such number of Holding Period Shares as it may specify.

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10.
	
Vesting of Awards (and exercise of Options) in special circumstances

	
10.1.
	
Death: Old Awards

If an Award Holder dies, a proportion of each Old Award held by him which has not Vested will Vest immediately. The proportion of each Old Award which shall Vest shall be determined by the Board at its absolute discretion taking into account such factors as the Board may consider relevant including, but not limited to, the satisfaction of any Performance Target as at the date of death and any other conditions imposed under Rule 5.1. 

Alternatively, the Board may decide that an Old Award held by the Award Holder which has not yet Vested will continue until the normal time of Vesting in which case any Performance Target and/or any other conditions imposed under Rule 5.1 shall be considered at the time of Vesting.

In the case of an Old Option, if an Award Holder dies, his personal representatives (having established title to the satisfaction of the Company) shall be entitled to exercise the Vested proportion of his Option (whether Vested under this Rule or otherwise) at any time during the 12 month period following death, or, if later, following Vesting or, in either case, during such other period as the Board determines. The Option shall lapse at the end of such period.

	
10.2.
	
Injury, disability, redundancy, retirement etc.: Old Awards

If an Award Holder ceases to be in Relevant Employment by reason of:

	
1.
	
injury, ill-health or disability evidenced to the satisfaction of the Board;

	
2.
	
the Award Holder being employed by a company which ceases to be a Group Member;

	
3.
	
the Award Holder being employed in an undertaking or part of an undertaking which is transferred to a person who is not a Group Member; or 

	
4.
	
any other circumstances if the Board decides in any particular case, except where the Award Holder is summarily dismissed,

any Old Award held by him which has not Vested will continue until the normal time of Vesting and the Performance Target and/or any other conditions imposed under Rule 5.1 shall be considered at the time of Vesting. 

Alternatively, the Board may decide that an Old Award will Vest immediately in which case the proportion of the Award which shall Vest will be determined by the Board in its absolute discretion taking into account such factors as the Board may consider relevant including, but not limited to, the satisfaction of any Performance Target as at the time of cessation and any other conditions imposed under Rule 5.1.

In the case of an Old Option, the Award Holder shall be entitled to exercise the Vested proportion of his Option (whether Vested under this Rule or otherwise) at any time during the period ending 90 days following cessation of Relevant Employment or, if later, following Vesting or, in either case, during such other period as the Board determines. The Option shall lapse at the end of such period.

	
10.3.
	
Award Holder relocated abroad

If it is proposed that an Award Holder, while continuing to be in Relevant Employment, should work in a country other than the country in which he is currently working and, by reason of the change, the Award Holder would:

	
1.
	
suffer less favourable tax treatment in respect of his Award; or

	
2.
	
become subject to a restriction on his ability to exercise an Option, to have issued or transferred to him the Plan Shares subject to an Award or to hold or deal in such Plan Shares or the proceeds of sale of such Plan Shares,

an Award may, at the absolute discretion of the Board, Vest immediately either in full or to the extent determined by the Board in its absolute discretion and subject to such conditions as it may require taking into account such factors as the Board may consider relevant including, but not limited to, the period of time the relevant Award has been held and the extent to which any Performance Target and any other conditions imposed under Rule 5.1 have been met. Where the Award is an Option and has become Vested pursuant to this 

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Rule 10.3, the Award Holder may exercise his Vested Option at any time during the period beginning 3 months before the proposed date of his transfer and ending 3 months after the date of his actual transfer. If not so exercised, the Option shall not lapse but shall cease to be treated as having Vested and shall continue in force in accordance with the Rules.

	
10.4.
	
Meaning of ceasing to be in Relevant Employment

For the purposes of the Plan, an Award Holder shall not be treated as ceasing to be in Relevant Employment until he no longer holds any office or employment with any Group Member. In addition, unless the Board otherwise decides an Award Holder shall not be treated as so ceasing if within 7 days he recommences employment or becomes an office holder with any Group Member.

The Board may determine that an Award Holder will be treated as ceasing to be in Relevant Employment when he gives or receives notice of termination of his employment (whether or not lawful).

	
10.5.
	
Interaction of Rules

In the case of an Option:

	
1.
	
if the Option has become exercisable under Rule 10.2 and, during the period allowed for the exercise of the Option under Rule 10.2 the Award Holder dies, the period allowed for the exercise of the Option shall be the period allowed by Rule 10.1; and

	
2.
	
if the Option has become exercisable under Rule 8.4.4 or Rule 10 and, during the period allowed for the exercise of the Option under the relevant Rule, the Option becomes exercisable under Rule 11 also (or vice versa), the period allowed for the exercise of the Option shall end on the earlier of the end of the period allowed by Rule 8.4.4 or Rule 10 (as applicable) and the end of the period allowed by Rule 11.

	
11.
	
Takeover and other corporate events

	
11.1.
	
Takeover

Subject to Rule 12, where a person obtains Control of the Company as a result of making an offer to acquire Plan Shares, Awards shall Vest on the date the person obtains Control as set out below. Should a person (either alone or together with any person acting in concert with him) already have Control of the Company and makes an offer to acquire all of the ordinary shares in the capital of the company (or any shares representing them), other than those which are already owned by him, and such offer becomes wholly unconditional, Awards shall Vest on the date the offer becomes unconditional also as set out below.

The proportion of an Award which shall Vest will be determined by the Board in its absolute discretion taking into account such factors as the Board may consider relevant including, but not limited to, the time the Award has been held by the Award Holder and having regard to any Performance Target and/or any other conditions imposed under Rule 5.1. The proportion of an Award that the Board determines shall not Vest will lapse immediately except in the circumstances set out below. 

In the case of an Option, the Vested proportion of the Option (whether Vested under this Rule 11.1 or otherwise) may be exercised at any time during the period of one month (or, if the Board determines a longer period shall apply, that period) beginning with the time when the person making the offer has obtained Control, or if the person already has Control, at the time when the offer to acquire all of the ordinary shares in the capital of the company (or any shares representing them) becomes wholly unconditional. The Option shall lapse at the end of such period unless the Board determines that a longer period for exercise shall apply, in which case the Option shall continue in force until the end of such extended period or until it otherwise lapses in accordance with the Rules.

If the extent of Vesting of an Award which Vests under this Rule 11.1 has been reduced by the Board to reflect the period of time that the Award has been held by the Award Holder, the Board may determine that Rule 12 shall apply to the proportion of the Award reflecting such reduction which has not Vested. 

	
11.2.
	
Compulsory acquisition of shares in the Company

Subject to Rule 12, if a person becomes entitled or bound to acquire shares in the Company under sections 979 to 982 of the Companies Act 2006, Awards shall Vest as set out below.

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The proportion of an Award which shall Vest will be determined by the Board in its absolute discretion taking into account such factors as the Board may consider relevant including, but not limited to, the time the Award has been held by the Award Holder and having regard to any Performance Target and/or any other conditions imposed under Rule 5.1.

In the case of an Option, the Vested proportion of the Option (whether Vested under this Rule 11.2 or otherwise) may be exercised at any time during the period beginning with the date the person serves a notice under section 979 and ending 7 clear days before the date on which the person ceases to be entitled to serve such a notice. The Option shall lapse at the end of the 7 days.

If the extent of Vesting of an Award which Vests under this Rule 11.2 has been reduced by the Board to reflect the period of time that the Award has been held by the Award Holder, the Board may determine that Rule 12 shall apply to the proportion of the Award reflecting such reduction which has not Vested.

	
11.3.
	
Scheme of arrangement

Subject to Rule 12, if a person proposes to obtain Control of the Company in pursuance of a compromise or arrangement sanctioned by the court under section 899 of the Companies Act 2006 Awards shall Vest on the date of the court sanction as set out below.

The proportion of an Award which shall Vest will be determined by the Board in its absolute discretion taking into account such factors as the Board may consider relevant including, but not limited to, the time the Award has been held by the Award Holder and having regard to any Performance Target and/or any other conditions imposed under Rule 5.1.

In the case of an Option, the Vested proportion of the Option (whether Vested under this Rule 11.3 or otherwise) may be exercised at any time during the period of one month (or, if the Board determines a longer period shall apply, that period) from the compromise or arrangement being sanctioned by the court. The Option shall lapse at the end of such period.

If the extent of Vesting of an Award which Vests under this Rule 11.3 has been reduced by the Board to reflect the period of time that the Award has been held by the Award Holder, the Board may determine that Rule 12 shall apply to the proportion of the Award reflecting such reduction which has not Vested.

	
11.4.
	
Winding-up of the Company

If notice is given of a resolution for the voluntary winding-up of the Company, Awards shall Vest on the date notice is given.

The proportion of an Award which shall Vest will be determined by the Board in its absolute discretion taking into account such factors as the Board may consider relevant including, but not limited to, the time the Award has been held by the Award Holder and having regard to any Performance Target and/or any other conditions imposed under Rule 5.1.

In the case of an Option, the Vested proportion of the Option (whether Vested under this Rule 11.4 or otherwise) may be exercised at any time during the period of 6 months from the date of the notice or, if earlier, on completion of the winding up. The Option shall lapse at the end of such period.

	
11.5.
	
Demergers and other events

The Board may determine that Awards Vest if it becomes aware that the Company will be affected by a demerger, distribution (which is not an ordinary dividend) or other transaction not otherwise covered by the Rules.

The proportion of an Award which shall Vest will be determined by the Board in its absolute discretion subject to such conditions as it may require taking into account such factors as the Board may consider relevant including, but not limited to, the time the Award has been held by the Award Holder and having regard to any Performance Target and/or any other conditions imposed under Rule 5.1.

In the case of an Option, the Vested proportion of the Option (whether Vested under this Rule 11.5 or otherwise) may be exercised at any time during a period as shall be determined by the Board. The Option shall lapse at the end of such period.

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If the extent of Vesting of an Award which Vests under this Rule 11.5 has been reduced by the Board to reflect the period of time that the Award has been held by the Award Holder, the Board may determine that Rule 12 shall apply to the proportion of the Award reflecting such reduction which has not Vested.

	
11.6.
	
Meaning of “obtains Control of the Company”

For the purpose of Rule 11 a person shall be deemed to have obtained Control of the Company if he and others Acting In Concert with him have together obtained Control of it.

	
11.7.
	
References to Board within this Rule 11

For the purposes of this Rule 11, any reference to the Board shall be taken to be a reference to those individuals who were members of the Board immediately before the event by virtue of which this Rule 11 applies.

	
11.8.
	
Notification of Award Holders

The Grantor shall, as soon as reasonably practicable, notify each Award Holder of the occurrence of any of the events referred to in this Rule 11 and explain how this affects his position under the Plan.

	
11.9.
	
Vesting of Awards in advance of a corporate event

Where the Board is aware that an event is likely to occur under Rule 11:

	
1.
	
in respect of which Awards will Vest in circumstances where the conditions for relief under Part 12 of the Corporation Tax Act 2009 may not be satisfied; or

	
2.
	
if the Board in its absolute discretion considers it appropriate,

the Board may, in its absolute discretion and by notice in writing to all Award Holders, declare that all Awards that are expected to Vest as a result of the relevant event shall Vest (and in the case of any such Award which is an Option, shall be exercisable) in accordance with Rule 11 during such period prior to the relevant event as determined by the Board.

	
12.
	
Exchange of Awards

	
12.1.
	
Where exchange applies

An Award will not Vest under Rule 11 but will be exchanged for a new award (New Award) under this Rule to the extent that:

	
1.
	
an offer to exchange the Award for a New Award is made and accepted by the Award Holder; or

	
2.
	
the Board, with the consent of the persons acquiring Control if relevant, decides that Awards will be automatically exchanged for New Awards. The circumstances in which the Board may make such a decision include (but are not limited to) where an event occurs under Rules 11.1, 11.2, or 11.3 and:

	
 
	
a.
	
the shareholders of the acquiring company, immediately after it has obtained Control, are substantially the same as the shareholders of the Company immediately before the event; or

	
 
	
b.
	
the obtaining of Control amounts in the opinion of the Board to a merger with the Company.

	
12.2.
	
Terms of exchange

The following applies in respect of the New Award:

	
1.
	
The Award Date of the New Award shall be deemed to be the same as the Award Date of the Award.

	
2.
	
The New Award will be in respect of the shares in a company determined by the Board.

	
3.
	
In the application of the Plan to the New Award, where appropriate, references to “Company” and “Plan Shares” shall be read as if they were references to the company to whose shares the New Award relates.

	
4.
	
The New Award must be equivalent to the Award, in the opinion of the Board, and subject to paragraph 5 below it will Vest at the same time and in the same manner as the Award.

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
5.
	
Either the Vesting of the New Award must be subject to performance conditions and/or any other conditions which are so far as possible, in the opinion of the Board, equivalent to any Performance Target and/or any other conditions applying to the Award or no performance conditions will apply but the value of shares comprised in the New Award shall have substantially the same value of the number of Plan Shares which would have Vested under Rule 11 as applicable.

	
13.
	
Lapse of Awards

Notwithstanding any other provision of the Rules, an Award shall lapse on the earliest of:

	
1.
	
in the case of Options, the expiry of the Exercise Period;

	
2.
	
the Board determining that any Performance Target and/or any other conditions imposed under Rule 5.1 has not been satisfied either in whole or in part in respect of the Award and can no longer be satisfied in whole or in part in which case the Award shall lapse to the extent that the Performance Target and/or any other conditions imposed under Rule 5.1 can no longer be satisfied;

	
3.
	
subject to Rule 10 and Rule 8.4.4, the Award Holder ceasing to be in Relevant Employment;

	
4.
	
any date for lapse provided for under these Rules; and

	
5.
	
the date on which the Award Holder becomes bankrupt or enters into a compromise with his creditors generally.

	
14.
	
Adjustment of Awards on Reorganisation

	
14.1.
	
Power to adjust Awards

In the event of a Reorganisation, the number of Plan Shares subject to an Award which is an Option or a Conditional Share Award, the description of the Plan Shares, the Award Price or any one or more of these shall be adjusted in such manner as the Grantor, together with the Board where relevant, shall determine.

In the case of Restricted Shares, subject to the relevant Restricted Share Agreement, the Award Holder shall have the same rights as any other shareholder in respect of Restricted Shares in the event of a Reorganisation. Any shares, securities or other rights allotted to an Award Holder for no consideration or with the proceeds of sale of such rights (but not with new consideration provided by the Award Holder) as a result of such Reorganisation shall be treated as if they were awarded to the Award Holder at the same time as the Restricted Shares in respect of which the rights were conferred and subject to the Rules and the terms of the Restricted Share Agreement.

	
14.2.
	
Award Price

No adjustment shall be made to the Award Price which would result in the Plan Shares subject to an Option or Conditional Share Award being issued at a price per Plan Share lower than the nominal value of a Plan Share except where the Grantor puts in place arrangements to pay up the nominal value at the date of issue of the Plan Shares (or the difference between the adjusted Award Price and the nominal value as the case may be).

	
14.3.
	
Notification of Award Holders

The Grantor shall, as soon as reasonably practicable, notify each Award Holder of any adjustment made under this Rule 14 and explain how this affects his position under the Plan.

	
15.
	
Tax and social security withholding

	
15.1.
	
Deductions

Unless the Award Holder discharges any liability that may arise himself, the Grantor, the Company or any Group Member or former Group Member (as the case may be) may withhold such amount, or make such other arrangements as it may determine appropriate, for example to sell or withhold Plan Shares, to meet any liability to taxes or social security contributions in respect of Awards, including, where applicable, Employer’s NIC 

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

transferred under 15.2. The Award Holder will be responsible for all taxes, social security contributions and other liabilities arising in respect of the Award Holder’s Awards.

	
15.2.
	
Transfer of Employer’s NIC

The Grantor may, at its discretion and to the extent permitted by law, require the Award Holder to pay all or any part of the Employer’s NIC in relation to an Award.

	
15.3.
	
Execution of document by Award Holder

The Grantor may require an Award Holder to execute a document in order to bind himself contractually to any such arrangement as is referred to in Rules 15.1 and 15.2 and return the executed document to the Company by a specified date. It shall be a condition of Vesting, and where applicable exercise, of the Award that the executed document be returned by the specified date unless the Grantor determines otherwise.

	
15.4.
	
Tax elections

The Board may, at its discretion, determine that an Option may not be exercised and/or the Plan Shares subject to a Conditional Share Award and/or the Plan Shares the subject of an Award comprising Restricted Shares may not be issued or transferred to the Award Holder (or for his benefit) unless the Award Holder has beforehand signed an election under Chapter 2 of Part 7 of ITEPA 2003 and/or section 165 of the Taxation of Chargeable Gains Act 1992 or entered into broadly similar local arrangements.

	
16.
	
Rights and listing of Plan Shares

	
16.1.
	
Rights attaching to Plan Shares

Except as set out in Rule 1.12 (Restricted Shares), all Plan Shares issued or transferred under the Plan shall, as to voting, dividend, transfer and other rights, including those arising on a liquidation of the Company, rank equally in all respects and as one class with the shares of the same class in issue at the date of issue or transfer save as regards any rights attaching to such Plan Shares by reference to a record date prior to the date of such issue or transfer.

	
16.2.
	
Listing and admission to trading of Plan Shares

If and so long as Plan Shares are listed on the Official List and traded on the London Stock Exchange, the Company will apply for the listing and admission to trading of any Plan Shares issued under the Plan as soon as reasonably practicable.

	
17.
	
Relationship of the Plan to contract of employment

	
17.1.
	
Contractual provisions

Notwithstanding any other provision of the Plan:

	
1.
	
the Plan shall not form part of any contract of employment between any Group Member and an Eligible Employee;

	
2.
	
unless expressly so provided in his contract of employment, an Eligible Employee has no right to be granted an Award and the receipt of an Award in one year (and the calculation of the Award Price in a particular way) is no indication that the Award Holder will be granted any subsequent Awards (or that the calculations of the Award Price will be made in the same or a similar way);

	
3.
	
the Plan does not entitle any Award Holder to the exercise of any discretion in his favour;

	
4.
	
the benefit to an Eligible Employee of participation in the Plan (including, in particular but not by way of limitation, any Awards held by him) shall not form any part of his remuneration or count as his remuneration for any purpose and shall not be pensionable; and

	
5.
	
if an Eligible Employee ceases to be in Relevant Employment for any reason, he shall not be entitled to compensation for the loss or diminution in value of any right or benefit or prospective right or benefit 

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

		
under the Plan (including, in particular but not by way of limitation, any Awards held by him which lapse by reason of his ceasing to be in Relevant Employment) whether by way of damages for unfair dismissal, wrongful dismissal, breach of contract or otherwise or anything analogous thereto in any jurisdiction.

	
17.2.
	
Deemed agreement

By accepting the grant of an Award, an Award Holder is deemed to have agreed to the provisions of these Rules, including this Rule 17.

	
18.
	
Administration of the Plan

	
18.1.
	
Responsibility for administration

The Board (and the Grantor, where appropriate) shall be responsible for, and shall have the conduct of, the administration of the Plan. The Board may from time to time make, amend or rescind regulations for the administration of the Plan provided that such regulations shall not be inconsistent with the Rules.

	
18.2.
	
Board’s decision final and binding

The decision of the Board shall be final and binding in all matters relating to the Plan, including but not limited to the resolution of any dispute concerning, or any inconsistency or ambiguity in the Rules or any document used in connection with the Plan.

	
18.3.
	
Grantor to consult with the Board 

Where the Grantor is not the Company and has granted, or proposes to grant, an Award, the Grantor shall consult with, and take into account the wishes of, the Board before making any determination or exercising any power or discretion under the Plan.

	
18.4.
	
Discretionary nature of Awards

All Awards shall be granted entirely at the discretion of the Grantor.

	
18.5.
	
Provision of information

An Award Holder and, where the Grantor is not the Company, the Grantor shall provide to the Company or any Group Member as soon as reasonably practicable such information as the Company reasonably requests for the purpose of complying with its obligations under section 421J of ITEPA 2003 or similar requirements of local tax legislation.

	
18.6.
	
Cost of the Plan

The cost of introducing and administering the Plan shall be met by the Company. The Company shall be entitled, if it wishes, to charge an appropriate part of such cost and/or the costs of an Award to a Subsidiary or the Grantor.

	
18.7.
	
Data protection

The Company and any Group Member will process an Award Holder’s personal data in accordance with the applicable data privacy policy or policies adopted by the Company and any data privacy notice(s) provided to an Award Holder covering the processing of the Award Holder’s data in connection with the Plan. 

	
18.8.
	
Third party rights

Nothing in these Rules confers any benefit, right or expectation on a person who is not an Award Holder. No such third party has any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any terms of these Rules.

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
19.
	
Amendment of the Plan

	
19.1.
	
Power to amend the Plan

Subject to Rule 19.2, the Board may from time to time amend the Rules (including, for the purposes of establishing a sub-plan for the benefit of employees located overseas).

	
19.2.
	
Rights of existing Award Holders

An amendment may not materially adversely affect the rights of an existing Award Holder except:

	
1.
	
where the amendment is made to take account of any matter or circumstance which the Board reasonably considers is a legal or regulatory requirement which the Board reasonably considers is relevant and requires an amendment to be made in order for any Group Member to comply with such requirement; or

	
2.
	
where the Award Holder affected by the change has been notified of such amendment and the majority of Award Holders affected by the change who have responded to such notification have approved the amendment.

	
20.
	
Notices

	
20.1.
	
Notice by the Grantor

Save as provided for by law, any notice, document or other communication given by, or on behalf of, the Grantor or to any person in connection with the Plan shall be deemed to have been duly given if delivered to him at his place of work, if he is in Relevant Employment, if sent by e-mail to such e-mail address as may be specified by him from time to time or, in the case of an Award Holder who remains in Relevant Employment, to such e-mail address as is allocated to him by any Group Member, or sent through the post in a pre-paid envelope to the postal address last known to the Company to be his address and, if so sent, shall be deemed to have been duly given on the date of posting.

	
20.2.
	
Deceased Award Holders

Save as provided for by law, any notice, document or other communication so sent to an Award Holder shall be deemed to have been duly given notwithstanding that such Award Holder is then deceased (and whether or not the Company has notice of his death) except where his personal representatives have established title to the satisfaction of the Company and supplied to the Company an e-mail or postal address to which notices, documents and other communications are to be sent.

	
20.3.
	
Notice to the Grantor

Save as provided for by law any notice, document or other communication given to the Grantor (or any relevant person appointed by the Grantor) in connection with the Plan shall be delivered by hand or sent by email, fax or post to the Company Secretary (or any relevant person appointed by the Grantor) at the Company’s registered office (or such other e-mail or postal address as may from time to time be notified to Award Holders) but shall not in any event be duly given unless it is actually received at the registered office or such e-mail or postal address.

	
21.
	
Governing law and jurisdiction

	
21.1.
	
Plan governed by English law

The formation, existence, construction, performance, validity and all aspects whatsoever of the Plan, any term of the Plan and any Award granted under it shall be governed by English law.

	
21.2.
	
English courts to have jurisdiction

The English courts shall have jurisdiction to settle any dispute which may arise out of, or in connection with, the Plan.

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
21.3.
	
Jurisdiction agreement for benefit of the Company

The jurisdiction agreement contained in this Rule 21 is made for the benefit of the Company only, which accordingly retains the right to bring proceedings in any other court of competent jurisdiction.

	
21.4.
	
Award Holder deemed to submit to such jurisdiction

By accepting the grant of an Award, an Award Holder is deemed to have agreed to submit to such jurisdiction.

	
22.
	
Interpretation

	
22.1.
	
Definitions

In this Plan, unless the context otherwise requires, the following words and expressions have the following meanings:

Acting In Concert has the meaning given to that expression in The City Code on Takeovers and Mergers in its present form or as amended from time to time;

Award means an Option, a Conditional Share Award or Restricted Shares granted under the Plan;

Award Certificate means a statement in a form, which may include an electronic form, determined by the Company setting out details of an Award which is an Option or a Conditional Share Award determined in accordance with Rule 1.4;

Award Date means the date on which an Award is granted in accordance with Rule 1.3;

Award Holder means an individual who holds an Award or, where the context permits, his legal personal representatives. Where relevant, Award Holder(s) shall include reference to former Award Holder(s);

Award Price means the amount (if any), expressed either as an amount per Plan Share or a total amount, payable in respect of the exercise of an Option 0r Vesting of a Conditional Share Award or for the acquisition of Restricted Shares under a Restricted Share Agreement, determined in accordance with Rule 4;

Board means, subject to Rule 11.7, the board of directors of the Company or a duly authorised committee of it or a person duly authorised by the board of directors of the Company or such committee;

Company means Silence Therapeutics plc incorporated in England and Wales under company number 02992058;

Conditional Share Award means a conditional right under the Plan to acquire Plan Shares;

Confidential Information means all information of a confidential nature, whether provided before or after the date of adoption of the Plan, relating to a Group Member, whether in writing, orally communicated, in electronic format or otherwise, and including any such information obtained through discussions with directors, officers, members of management or employees of a Group Member together with any reports, analyses, compilations, studies, copies, databases or other materials or documents prepared by the party receiving such information to the extent incorporating such information (or any part of such confidential information). 

Control has the meaning given to it by section 995 of ITA 2007;

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

Dealing Restrictions means any restrictions imposed by legislation, regulation or any other code or guidance on share dealing with which the Company seeks to comply;

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

Directors’ Remuneration Policy has the meaning given to it by section 422A(6) of the Companies Act 2006;

Eligible Employee means an individual who at the Award Date is an employee of a Group Member;

Employees’ Share Scheme has the meaning set out in section 1166 of the Companies Act 2006;

Employer’s NIC means employer’s secondary class 1 National Insurance contributions liability or any local equivalent;

Exercise Period means the period set by the Board on the Award Date during which an Option may be exercised, ending no later than the 10th anniversary of the Award Date;

Financial Conduct Authority means the “competent authority” as that expression is defined in Part VI of the Financial Services and Markets Act 2000;

Gain means the difference between (i) the Market Value of a Plan Share on the date of exercise of an Option and (ii) the Award Price, multiplied by the number of Plan Shares in respect of which the Option is being exercised;

Grantor means:

	
1.
	
in relation to an Award granted by the Company, the Board;

	
2.
	
in relation to an Award granted by the Trustees, the Trustees; and 

	
3.
	
in relation to an Award granted by any other person which the Board authorises to grant an Award, that person;

Group means the Company and its Subsidiaries from time to time and Group Member shall be interpreted accordingly;

HMRC means Her Majesty’s Revenue & Customs;

Holding Period means the period (if any) specified under paragraph 9 of Rule 1.4 (commencing from the Vesting Date of the relevant Award) during which the restrictions contained in Rule 9 apply;

ITA 2007 means the Income Tax Act 2007;

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

London Stock Exchange means the London Stock Exchange plc or any successor body;

Market Value on any day means:

	
1.
	
if at the relevant time Plan Shares are listed on the Official List (or on any other recognised stock exchange within the meaning of section 1005 of ITA 2007 or the Alternative Investment Market of the London Stock Exchange), the closing middle market quotation (as derived from the Daily Official List of the London Stock Exchange or the equivalent list or record for the recognised stock exchange on which the Plan Shares are listed) or, if the Board so decides, the closing price on the preceding Dealing Day; or

	
2.
	
where Plan Shares are not so listed, the market value of a Plan Share calculated as described in the Taxation of Chargeable Gains Act 1992;

New Award means an Award granted on or after 1 October 2019;

New Option means an Option granted on or after 1 October 2019;

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

Non-Employee LTIP means the Silence Therapeutics plc 2018 Non-Employee Long Term Incentive Plan and the US Sub-Plan thereto;

Official List means the list maintained by the Financial Conduct Authority in accordance with section 74(1) of the Financial Services and Markets Act 2000 for the purposes of Part VI of the Act;

Old Award means an Award granted before 1 October 2019;

Old Option means an Option granted before 1 October 2019;

Option means a right to acquire Plan Shares granted under the Plan;

Performance Target means a performance target imposed as a condition of the Vesting of an Award under Rule 5.1 and as substituted or varied in accordance with Rule 5.3;

Plan means the Silence Therapeutics plc 2018 Long Term Incentive Plan as amended from time to time;

Plan Restatement Date means 23 July 2020; 

Plan Shares means ordinary shares in the capital of the Company (or any shares representing them);

Regulatory Information Service means a service that is approved by the Financial Conduct Authority on meeting the Primary Information Provider criteria and is on the list of Regulatory Information Services maintained by the Financial Conduct Authority (or any overseas equivalent);

Relevant Employment means employment with any Group Member;

Relevant Award means (i) an Award granted under the Plan, the Schedule, and the US Sub-Plan to the Plan; and/or (ii) an Award granted under the Non-Employee LTIP;

Reorganisation means any variation in the share capital of the Company, including but without limitation a capitalisation issue, rights issue, demerger or other distribution, a special dividend or distribution, rights offer or bonus issue and a sub-division, consolidation or reduction in the capital of the Company;

Restricted Shares means Shares where the Award Holder is the beneficial owner of the Plan Shares from the Award Date subject to the Restricted Share Agreement;

Restricted Share Agreement means the agreement referred to in Rule 1.12;

Rules mean the rules of the Plan;

Share Reserve has the meaning given to it in Rule 2.1;

Subsidiary has the meaning set out in section 1159 of the Companies Act 2006;

Trustees means the trustees of any trust created by a Group Member which, when taken together with the Plan, constitutes an Employees’ Share Scheme; 

Vest means:

	
1.
	
in relation to an Option, the Award Holder becoming entitled to exercise the Option;

	
2.
	
in relation to a Conditional Share Award, the Award Holder becoming entitled to have the Plan Shares issued or transferred to him (or to a nominee specified or permitted by the Company); and 

	
3.
	
in relation to Restricted Shares means the restrictions set out in the Restricted Share Agreement ceasing to have effect; and

Vesting Period means the period from the Award Date to the normal date of Vesting.

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
22.2.
	
Interpretation

In the Plan, unless otherwise specified:

	
1.
	
save as provided for by law a reference to writing includes any mode of reproducing words in a legible form and reduced to paper or electronic format or communication including, for the avoidance of doubt, correspondence via e-mail; and

	
2.
	
the Interpretation Act 1978 applies to the Plan in the same way as it applies to an enactment.

 

 

 

 

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

SCHEDULE

CSOP Options

The purpose of this Schedule is to provide, in accordance with Schedule 4, benefits for employees in the form of CSOP Options. The Board may, when granting an Option to a CSOP Employee, designate it as a CSOP Option. If they do so, the provisions of the Silence Therapeutics plc 2018 Long Term Incentive Plan (the “Plan”) will apply to it, as amended by this Schedule.

	
1
	
Definitions

Words used in this Schedule have the same meaning as in the Plan unless amended as stated below:

Award Date has the meaning given in paragraph 3.2 of this Schedule; 

Control has the meaning given in s995 Income Tax Act 2007 of the United Kingdom;

CSOP Employee means an employee of a Participating Company but does not include anyone who is:

	
 
	
a)
	
excluded from participation because of paragraph 9 of Schedule 4 (material interests provisions); or

	
 
	
b)
	
a director who is required to work less than 25 hours a week (excluding meal breaks);

CSOP Market Value in relation to a Share on a particular day means:

	
 
	
a)
	
if the Shares are listed on a Recognised Stock Exchange, the closing price of the shares on the immediately preceding day (or if more than one price is shown, the lower price plus one half the difference between the two figures) if the exchange is open on that day, and if the exchange is not open on that day the relevant price for the latest previous day it was open; and

	
 
	
b)
	
if the Shares are not listed on a Recognised Stock Exchange, the market value determined in accordance with the applicable provisions of Part VIII of the Taxation of Chargeable Gains Act 1992 of the United Kingdom, and any relevant published HMRC guidance, on the relevant day, 

and any restriction referred to in paragraph 4(c) will be ignored when determining CSOP Market Value;

CSOP Option means an Option to which this Schedule applies;

HMRC means Her Majesty’s Revenue and Customs of the United Kingdom;

ordinary share capital has the meaning given in s989 Income Tax Act of the United Kingdom;

Participating Company means:

	
 
	
a)
	
the Company and any Subsidiary; 

	
 
	
b)
	
any jointly-owned company (within the meaning of paragraph 34 of Schedule 4) designated by the Board; and

	
 
	
c)
	
any other entity designated by the Board so long its participation would not prevent the Plan as amended by this Schedule from being a Schedule 4 Plan;

24

 

The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

Recognised Stock Exchange has the meaning given in s1005 of the Income Tax Act 2007 of the United Kingdom1;

Schedule 4 means Schedule 4 to the Income Tax (Earnings and Pensions) Act 2003 of the United Kingdom;

Schedule 4 Plan means a plan in relation to which the requirements of Parts 2 to 6 of Schedule 4 are (and are being) met;

Shares means, subject to paragraph 2, ordinary shares in the capital of the Company which satisfy paragraphs 16 to 20 of Schedule 4; 

Subsidiary means a company which is a subsidiary of the Company within the meaning of s1159 Companies Act 2006 of the United Kingdom which is under the Control of the Company; and

Takeover Offer means either: 

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

	
 
	
b)
	
a general offer to acquire all the Shares,

and for these purposes the reference to the "whole of the issued ordinary share capital" and "all the Shares" shall not be taken to include any capital or Shares held by the person making the offer or a person connected with that person (within the meaning of s718 Income Tax (Earnings and Pensions) Act 2003 of the United Kingdom), and it does not matter whether the offer is made to different shareholders by different means. 

	
2
	
Shares

If any Shares which are subject to a CSOP Option cease to satisfy paragraphs 16 to 20 of Schedule 4 and this Schedule is to cease to be a Schedule 4 Plan, or the CSOP Options become exercisable pursuant to paragraph 10.5, the definition of “Shares” above is changed automatically to “ordinary shares in the capital of the Company”.  A CSOP Option may not otherwise be exercised after the Shares to which it is subject cease to satisfy paragraphs 16 to 20 of Schedule 4.

	
3
	
Restrictions on terms of CSOP Options

	
3.1
	
A CSOP Option may only be granted to an Eligible Employee who is also a CSOP Employee at the Award Date.

	
3.2
	
Notwithstanding Rule 1.3 (Procedure for grant of Awards and Award Date) of the Plan, the grant of a CSOP Option shall be effected by the deed referred to in Rule 1.3.  The Award Date of a CSOP Option shall be the date that deed is executed, and not, if different, the date of the resolution referred to in that Rule.

	
3.3
	
Rules 8.8 (Net or cash settling) and 8.9 (Dividend equivalents) shall not apply to CSOP Options.

	
	 

	
1     
	
Note: as at the date of adoption, this would not include AIM, but would include any exchange registered with the Securities and Exchange Commission of the United States (SEC) as a national securities exchange under section 6 of the Securities Exchange Act of 1934 (which we understand includes NASDAQ).

25

 

The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
3.4
	
If the Award Price of a CSOP Option is funded by the sale of Shares acquired on exercise, the Shares must first be acquired by the Participant, and cannot be sold before the exercise of the Option.

	
3.5
	
A CSOP Option cannot be transferred during the Participant’s life, although they may be transmitted to the Participant’s personal representatives on the Participant’s death.

	
3.6
	
Any provisions in the Award Certificate for a CSOP Option shall comply with the requirements of Schedule 4.

	
4
	
Notification of terms of CSOP Option

The Company will ensure that the Participant is notified of the following as soon as practicable after grant of a CSOP Option:

	
 
	
(a)
	
the number and description of the Shares subject to the Option;

	
 
	
(b)
	
the Award Price;

	
 
	
(c)
	
whether or not the Shares subject to the Option are subject to any restriction (as defined in paragraph 36(3) of Schedule 4) and, if so, the details of any such restrictions; 

	
 
	
(d)
	
the times at which the Option may be exercised (in whole or in part);

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

	
 
	
(f)
	
any mechanism (including any Performance Measure) by way of which any terms referred to in sub-paragraphs (a) and (c) to (e) above can be changed.

The notification may be given wholly or partly through the Award Certificate relating to the CSOP Option.

	
5
	
Award Price

The Award Price of a CSOP Option will not be less than CSOP Market Value of a Share on the date of grant.

	
6
	
HMRC limit

The aggregate CSOP Market Value of: 

	
 
	
(a)
	
the Shares subject to a CSOP Option; and

	
 
	
(b)
	
the Shares which the Participant may acquire on exercising other CSOP Options; and 

	
 
	
(c)
	
the shares which he may acquire on exercising his options under any other Schedule 4 Plan established by the Company or by any of its associated companies (as defined in paragraph 35 of Schedule 4) must not be more than the amount permitted under paragraph 6(1) of Schedule 4 (currently £30,000). For the purposes of this paragraph, CSOP Market Value is calculated as at the date of grant of the relevant option.

	
7
	
Adjustment of Options

Adjustments may be made to CSOP Options under Rule 14 (Adjustment of Awards on Reorganisation) only where there is a variation of the share capital of which Shares form part and:

	
 
	
(a)
	
the total Award Price after adjustment must be substantially the same as before adjustment; and 

	
 
	
(b)
	
the total CSOP Market Value of the Shares subject to the Option must remain substantially the same; and 

26

 

The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
 
	
(c)
	
the Plan (as amended by this Schedule) must continue to be a Schedule 4 Plan.

An annual return relating to the Plan (as amended by this Schedule) submitted to HMRC following any such adjustment must include a declaration that the Plan (as amended by this Schedule) continues to comply with Schedule 4.

	
8
	
Material interest

A Participant may not exercise a CSOP Option while he is excluded from participation in a Schedule 4 Plan under paragraph 9 of Schedule 4 (material interest provisions).

	
9
	
Exercise – additional provisions

	
9.1
	
Save to the extent otherwise prohibited by any other provision of the Plan (as amended by this Schedule), including for the avoidance of doubt Rule 8.4 (Effect of cessation of Relevant Employment), a Participant may exercise a CSOP Option after ceasing to be a CSOP Employee.

	
9.2
	
If a Participant dies before the lapse of a CSOP Option, Rule 10.1 (Death) shall apply with the deletion of the wording "or, if later, following Vesting or, in either case, during such other period as the Board determines", and his CSOP Option may be exercised by his personal representatives at any time within 12 months after his death, notwithstanding any earlier lapse in accordance with the rules of the Plan.

	
10
	
Corporate events

	
10.1
	
Corporate events

The provisions of this paragraph 10 have effect in addition to any provisions in Rule 11 (Takeover and other corporate events). Notwithstanding the foregoing, no such provision provided in Rule 11 shall have effect if it would affect the status of the Plan as amended by this Schedule as a Schedule 4 Plan unless it is determined that the Plan as amended by this Schedule should cease to be a Schedule 4 Plan.

	
10.2
	
Takeover Offer

If any person obtains Control of the Company as a result of making a Takeover Offer the Vested proportion of any CSOP Options (whether Vested under Rule 11.1 (Takeover) or otherwise) may, subject to paragraph 10.4, be exercised within one month (or, if the Board determines a longer period not exceeding six months shall apply, that period) after the time when the person making the offer has obtained Control of the Company and any conditions subject to which the Takeover Offer is made have been satisfied.

	
10.3
	
Scheme of arrangement

If the court sanctions under s899 Companies Act 2006 a compromise or arrangement applicable to or affecting:

	
 
	
(a)
	
all the ordinary share capital of the Company or all the shares of the same class as the shares to which the CSOP Options relate; or 

	
 
	
(b)
	
all the shares, or all the shares of that same class, which are held by a class of shareholders identified otherwise than by reference to their employment or directorships, or their participation in a Schedule 4 Plan,

the Vested proportion of any CSOP Options (whether Vested under Rule 11.3 (Scheme of arrangement) or otherwise) may, subject to paragraph 10.4, be exercised within one month (or, if the Board determines a longer period not exceeding six months shall apply, that period) after the date of that court sanction.

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The Silence Therapeutics plc 2018 Employee Long Term Incentive Plan

	
10.4
	
Option exchange

	
 
	
(a)
	
If, as a result of the events specified in paragraph 10.2 or 10.3, a company has obtained Control of the Company, the Participant may, by agreement with that other company (the "Acquiring Company"), within the applicable period provided in paragraph 26(3) of Schedule 3, release each Option (the "Old Option") in consideration of the grant of an Option (the "New Option") which satisfies the conditions set out in paragraph 27 of Schedule 4.

	
 
	
(b)
	
Where, in accordance with this paragraph 10.4, Options are released and New Options granted, the New Options shall not be exercisable in accordance with paragraph 10.2 or 10.3 above by virtue of the event by reason of which the New Options were granted. 

	
 
	
(c)
	
Where New Options are, or are to be, offered in exchange for the release of Old Options in accordance with the above provisions of this paragraph 10.4, the Board may determine that the Old Options will not become exercisable or lapse as a result of the relevant event under paragraph 10.2 or 10.3.  In such cases the Old Options will, if the Board so specifies, lapse at the end of the period for acceptance of the offer, provided that Option Holders have a period of at least 14 days in which to accept the offer.

	
10.5
	
Shares ceasing to be subject to Schedule 4

If paragraph 10.2 or 10.3 applies and, as a result of the event by virtue of which that paragraph applies, Shares in the Company would no longer meet the requirements of Part 4 of Schedule 4, the Board, acting fairly and reasonably, may decide that the CSOP Options may be exercised under that paragraph only within a 20 day period after the relevant event.

	
10.6
	
Lapse following corporate event

Where a CSOP Option becomes exercisable pursuant to this paragraph 10, if it is not exercised by the end of the period specified for exercise it shall then lapse (save where paragraph 9.2 applies).

	
11
	
Board’s powers

The Board’s powers under the Plan are further restricted in relation to CSOP Options as described in this paragraph.

	
11.1
	
No amendment to the Plan or this Schedule shall apply in relation to CSOP Options if it would result in the Plan as amended by this Schedule ceasing to be a Schedule 4 Plan, unless it is determined that it should so cease.

	
11.2
	
This Schedule, and the Plan as amended by this Schedule, shall at all times be interpreted in a manner consistent with Schedule 4 and any other legislative provisions applying to Schedule 4 Plans, save where it is determined that the Plan as amended by this Schedule should cease to be a Schedule 4 Plan. 

	
11.3
	
Any exercise of discretion in relation to an outstanding CSOP Option must be done in a fair and reasonable manner.

	
11.4
	
An annual return submitted to HMRC following any change to a term of a CSOP Option which is necessary to comply with Parts 2 to 6 of Schedule 4 must include a declaration that the Plan continues to comply with Schedule 4 from the date of the change.

 

 

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