Document:

Exhibit
        10.4

   

  August
      5, 2021

      Riverview Acquisition Corp.

      510 South Mendenhall Road, Suite 200

  

  Memphis,
      TN 38117

   

  		Re:	Initial
            Public Offering

   

  Ladies
      and Gentlemen:

   

  This
      letter (this “Letter Agreement”) is being delivered to you in accordance with the Underwriting Agreement
      (the “Underwriting Agreement”) entered into by and among Riverview Acquisition Corp., a Delaware corporation
      (the “Company”), Cantor Fitzgerald & Co. (“Cantor”) and Stephens Inc.
      (“Stephens”, or collectively with Cantor, the “Underwriters”), relating to
      an underwritten initial public offering (the “Public Offering”), of up to 28,750,000 of the Company’s
      units (including up to 3,750,000 units that may be purchased to cover over-allotments, if any) (the “Units”),
      each comprised of one share of the Company’s Class A common stock, par value $0.001 per share (the “Class A
          Common Stock”), and one-half of one redeemable warrant. Each whole warrant (each, a “Warrant”)
      entitles the holder thereof to purchase one share of Class A Common Stock at a price of $11.50 per share, subject to adjustment
      as described in the Prospectus (as defined below). The Units will be sold in the Public Offering pursuant to a registration statement
      on Form S-1 and prospectus (the “Prospectus”) filed by the Company with the U.S. Securities and Exchange
      Commission (the “Commission”) and the Units have been approved for listing on the Nasdaq Capital Market.
      Certain capitalized terms used herein are defined in paragraph 11 hereof.

   

  In
      order to induce the Company and the Underwriters to enter into the Underwriting Agreement and to proceed with the Public Offering
      and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of Riverview
      Sponsor Partners, LLC (the “Sponsor”) and the undersigned individuals, each of whom is a member of the
      Company’s board of directors and/or management team (each of the undersigned individuals, an “Insider”
      and collectively, the “Insiders”), hereby agrees with the Company as follows:

   

  		1.	The Sponsor and each Insider agrees that if the Company seeks stockholder approval of a proposed Business Combination, then in connection with
            such proposed Business Combination, it, he or she shall (i) vote any shares of Common Stock (as defined below) owned by it, him or her in favor of any proposed Business Combination and (ii) not redeem any shares of Common Stock owned by it, him
            or her in connection with such stockholder approval. If the Company seeks to consummate a proposed Business Combination by engaging in a tender offer, the Sponsor and each Insider agrees that it, he or she will not sell or tender any shares of
            Common Stock owned by it, him or her in connection therewith.

   

   

  
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  		2.	The Sponsor and each Insider hereby agrees that in the event that the Company fails to consummate a Business Combination within 18 months from
            the closing of the Public Offering, or such later period approved by the Company’s stockholders in accordance with the Company’s amended and restated certificate of incorporation (as it may be amended from time to time, the “Charter”),
            the Sponsor and each Insider shall take all reasonable steps to cause the Company to (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem
            100% of the shares of Class A Common Stock sold as part of the Units in the Public Offering (the “Offering Shares”), at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account (as
            defined below), including interest earned on the funds held in the Trust Account (which interest shall be net of taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Offering
            Shares, which redemption will completely extinguish all Public Stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such
            redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, liquidate and dissolve, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors
            and other requirements of applicable law. The Sponsor and each Insider agrees to not propose any amendment to the Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the Offering Shares if the Company does
            not complete a Business Combination within the required time period set forth in the Charter or with respect to any other material provisions relating to stockholders’ rights or pre-initial business combination activity, unless the Company
            provides its Public Stockholders with the opportunity to redeem their Offering Shares upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including
            interest earned on the funds held in the Trust Account (which interest shall be net of taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Offering Shares.

            

            The Sponsor and each Insider acknowledges that it, he or she has no right, title, interest or claim of any kind in or to any monies held in the Trust Account or any other asset of the Company as a result of any liquidation of the Company with
            respect to the Founder Shares held by it, him or her. The Sponsor and each Insider hereby further waives, with respect to any shares of Common Stock held by it, him or her, if any, any redemption rights it, he or she may have in connection with
            (A) the consummation of a Business Combination, including, without limitation, any such rights available in the context of a stockholder vote to approve such Business Combination, or (B) a stockholder vote to approve an amendment to the Charter
            to modify the substance or timing of the Company’s obligation to redeem 100% of the Offering Shares if the Company has not consummated a Business Combination within the time period set forth in the Charter or with respect to any other material
            provisions relating to stockholders’ rights or pre-initial business combination activity or in the context of a tender offer made by the Company to purchase Offering Shares (although the Sponsor, the Insiders and their respective affiliates
            shall be entitled to redemption and liquidation rights with respect to any Offering Shares it or they hold if the Company fails to consummate a Business Combination within the time period set forth in the Charter).

   

   

  
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  		3.	During the period commencing on the effective date of the Underwriting Agreement and ending 180 days after such date, the Sponsor and each
            Insider shall not, without the prior written consent of the Representative, (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or
            indirectly, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the
            rules and regulations of the Commission promulgated thereunder, with respect to, any Units, shares of Common Stock (including, but not limited to, Founder Shares), Warrants or any securities convertible into, or exercisable, or exchangeable
            for, shares of Common Stock owned by it, him or her, (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any Units, shares of Common Stock (including,
            but not limited to, Founder Shares), Warrants or any securities convertible into, or exercisable, or exchangeable for, shares of Common Stock owned by it, him or her, whether any such transaction is to be settled by delivery of such securities,
            in cash or otherwise, or (iii) publicly announce any intention to effect any transaction specified in clause (i) or (ii). Each of the Insiders and the Sponsor acknowledges and agrees that, prior to the effective date of any release or waiver,
            of the restrictions set forth in this paragraph 3 or paragraph 7 below, the Company shall announce the impending release or waiver by press release through a major news service at least two business days before the effective date of the release
            or waiver. Any release or waiver granted shall only be effective two business days after the publication date of such press release. The provisions of this paragraph will not apply if the release or waiver is effected solely to permit a
            transfer not for consideration and the transferee has agreed in writing to be bound by the same terms described in this Letter Agreement to the extent and for the duration that such terms remain in effect at the time of the transfer.

   

  		4.	In the event of the liquidation of the Trust Account upon the failure of the Company to consummate its initial Business Combination within the
            time period set forth in the Charter, the Sponsor (the “Indemnitor”) agrees to indemnify and hold harmless the Company against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any
            and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, whether pending or threatened) to which the Company may become subject as a result of any claim by (i) any third party for
            services rendered or products sold to the Company or (ii) any prospective target business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or Business Combination agreement (a “Target”);

            provided, however, that such indemnification of the Company by the Indemnitor (x) shall apply only to the extent necessary to ensure that such claims by a third party or a Target do not reduce the amount of funds in the Trust Account to below
            the lesser of (i) $10.00 per Offering Share and (ii) the actual amount per Offering Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per Offering Share is then held in the Trust Account
            due to reductions in the value of the trust assets, less taxes payable, (y) shall not apply to any claims by a third party or a Target which executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such
            waiver is enforceable) and (z) shall not apply to any claims under the Company’s indemnity of the Underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended. The Indemnitor shall have the right
            to defend against any such claim with counsel of its choice reasonably satisfactory to the Company if, within 15 days following written receipt of notice of the claim to the Indemnitor, the Indemnitor notifies the Company in writing that it
            shall undertake such defense.

   

   

  
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  		5.	To the extent that the Underwriters do not exercise their over-allotment option to purchase up to an additional 3,750,000 Units within 45 days
            from the date of the Prospectus (and as further described in the Prospectus), the Sponsor agrees to forfeit, at no cost, a number of Founder Shares in the aggregate equal to 937,500 multiplied by a fraction, (i) the numerator of which is
            3,750,000 minus the number of Units purchased by the Underwriters upon the exercise of their over-allotment option, and (ii) the denominator of which is 3,750,000. The forfeiture will be adjusted to the extent that the over-allotment option is
            not exercised in full by the Underwriters so that the Founder Shares will represent an aggregate of 20% of the Company’s issued and outstanding shares of Class A Common Stock after the Public Offering (not including shares of Class A Common
            Stock underlying the Warrants or Private Placement Warrants (as defined below)). The Sponsor further agrees that to the extent that the size of the Public Offering is increased or decreased, the Company will purchase or sell Units or effect a
            share repurchase or share capitalization, as applicable, immediately prior to the consummation of the Public Offering in such amount as to maintain the ownership of the initial shareholders prior to the Public Offering at 20% of its issued and
            outstanding Capital Shares upon the consummation of the Public Offering. In connection with such increase or decrease in the size of the Public Offering, then (A) the references to 3,750,000 in the numerator and denominator of the formula in
            the first sentence of this paragraph shall be changed to a number equal to 20% of the number of Public Shares included in the Units issued in the Public Offering and (B) the reference to 937,500 in the formula set forth in the first sentence of
            this paragraph shall be adjusted to such number of Founder Shares that the Sponsor would have to surrender to the Company in order for the initial shareholders to hold an aggregate of 20% of the Company’s issued and outstanding shares of Class
            A Common Stock after the Public Offering (not including shares of Class A Common Stock underlying the Warrants or Private Placement Warrants).

   

  		6.	The Sponsor and each Insider hereby agrees and acknowledges that: (i) the Underwriters and the Company would be irreparably injured in the
            event of a breach by such Sponsor or an Insider of its, his or her obligations under paragraphs 1, 2, 3, 4, 5, 7(a), 7(b) and 9, as applicable, of this Letter Agreement (ii) monetary damages may not be an adequate remedy for such breach and
            (iii) the non-breaching party shall be entitled to injunctive relief, in addition to any other remedy that such party may have in law or in equity, in the event of such breach.

   

   

  
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  		7.	(a) The Sponsor and each Insider agrees that it, he or she shall not Transfer any Founder Shares (or any shares of Class A Common Stock
            issuable upon conversion thereof) until the earlier of (A) one year after the completion of the Company’s initial Business Combination and (B) subsequent to the Business Combination, (x) if the closing price of the Class A Common Stock equals
            or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Company’s initial
            Business Combination or (y) the date on which the Company completes a liquidation, merger, capital stock exchange, reorganization or other similar transaction that results in all of the Company’s stockholders having the right to exchange their
            shares of Class A Common Stock for cash, securities or other property (the “Founder Shares Lock-up Period”).

   

  (b)
      The Sponsor and each Insider agrees that it, he or she shall not Transfer any Private Placement Warrants (or any share of Class
      A Common Stock issued or issuable upon the exercise of the Private Placement Warrants), until 30 days after the completion of
      a Business Combination (the “Private Placement Warrants Lock-up Period”, together with the Founder Shares
      Lock-up Period, the “Lock-up Periods”).

   

  (c)
      Notwithstanding the provisions set forth in paragraphs 7(a) and (b), Transfers of the Founder Shares, Private Placement Warrants
      and shares of Class A Common Stock issued or issuable upon the exercise or conversion of the Private Placement Warrants or the
      Founder Shares that are held by the Sponsor, any Insider or any of their permitted transferees (that have complied with this paragraph
      7(c)), are permitted (a) to the Company’s officers or directors, any affiliate or family member of any of the Company’s
      officers or directors, any affiliate of the Sponsor or to any members of the Sponsor or any of their affiliates; (b) in the case
      of an individual, by gift to a member of such individual’s immediate family or to a trust, the beneficiary of which is a
      member of such individual’s immediate family, an affiliate of such individual or to a charitable organization; (c) in the
      case of an individual, by virtue of laws of descent and distribution upon death of such individual; (d) in the case of an individual,
      pursuant to a qualified domestic relations order; (e) by private sales or transfers made in connection with any forward purchase
      agreement or similar arrangement or in connection with the consummation of an initial Business Combination at prices no greater
      than the price at which the securities were originally purchased; (f) in the event of the Company’s liquidation prior to
      the completion of an initial Business Combination; (g) by virtue of the laws of the State of Delaware or the Sponsor’s limited
      liability company agreement upon dissolution of the Sponsor; or (h) in the event of the Company’s liquidation, merger, capital
      stock exchange or other similar transaction which results in all of the Company’s stockholders having the right to exchange
      their shares of Class A Common Stock for cash, securities or other property subsequent to the Company’s completion of an
      initial Business Combination; provided, however, that in the case of clauses (a) through (f), these permitted transferees must
      enter into a written agreement with the Company agreeing to be bound by the transfer restrictions herein and the other restrictions
      contained in this Agreement (including provisions relating to voting, the Trust Account and liquidating distributions).

   

   

  
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  		8.	The Sponsor and each Insider represents and warrants that it, he or she has never been suspended or expelled from membership in any securities
            or commodities exchange or association or had a securities or commodities license or registration denied, suspended or revoked. Each Insider’s biographical information furnished to the Company (including any such information included in the
            Prospectus) is true and accurate in all respects and does not omit any material information with respect to the Insider’s background. The Sponsor and each Insider’s questionnaire furnished to the Company is true and accurate in all respects.
            The Sponsor and each Insider represents and warrants that: it, he or she is not subject to or a respondent in any legal action for, any injunction, cease-and-desist order or order or stipulation to desist or refrain from any act or practice
            relating to the offering of securities in any jurisdiction; it, he or she has never been convicted of, or pleaded guilty to, any crime (i) involving fraud, (ii) relating to any financial transaction or handling of funds of another person, or
            (iii) pertaining to any dealings in any securities and it, he or she is not currently a defendant in any such criminal proceeding.

   

  		9.	Except as disclosed in the Prospectus, neither the Sponsor nor any officer, nor any affiliate of the Sponsor or any officer, nor any director
            of the Company, shall receive from the Company any finder’s fee, reimbursement, consulting fee, non-cash payments, monies in respect of any repayment of a loan or other compensation prior to, or in connection with any services rendered in order
            to effectuate, the consummation of the Company’s initial Business Combination (regardless of the type of transaction that it is), other than the following, none of which will be made from the proceeds held in the Trust Account prior to the
            completion of the initial Business Combination: repayment of a loan and advances up to an aggregate of $300,000 made to the Company by the Sponsor; payments to the Sponsor for certain secretarial and administrative services as may be reasonably
            required by the Company of up to $5,000 per month; subject to the approval by the Company’s board of directors, payment of up to $15,000 per month to members of our management team in connection with services rendered to the Company;
            reimbursement for any reasonable out-of-pocket expenses related to identifying, investigating, negotiating and completing an initial Business Combination, and repayment of loans, if any, and on such terms as to be determined by the Company from
            time to time, made by the Sponsor or an affiliate of the Sponsor or any of the Company’s officers or directors to finance transaction costs in connection with an intended initial Business Combination, provided, that, if the Company does not
            consummate an initial Business Combination, a portion of the working capital held outside the Trust Account may be used by the Company to repay such loaned amounts so long as no proceeds from the Trust Account are used for such repayment. Up to
            $1,500,000 of such loans may be convertible into warrants at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants, including as to exercise price, exercisability and
            exercise period.

   

   

  
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  		10.	The Sponsor and each Insider has full right and power, without violating any agreement to which it is bound (including, without limitation,
            any non-competition or non-solicitation agreement with any employer or former employer), to enter into this Letter Agreement and, as applicable, to serve as an officer and/or director on the board of directors of the Company and hereby consents
            to being named in the Prospectus as an officer and/or director of the Company.

   

  		11.	As used herein, (i) “Business Combination” shall mean a merger, capital stock exchange, asset acquisition, stock purchase,
            reorganization or similar business combination, involving the Company and one or more businesses; (ii) “Common Stock” shall mean the Class A common stock and Class B common stock, par value $0.001 per share (“Class B Common
                Stock”); (iii) “Founder Shares” shall mean the 7,187,500 shares of Class B common stock issued and outstanding (up to 937,500 Shares of which are subject to complete or partial forfeiture if the over-allotment option
            is not exercised by the Underwriters); (iv) “Initial Stockholders” shall mean the Sponsor and any Insider that holds Founder Shares; (v) “Private Placement Warrants” shall mean the 7,400,000 Warrants that the Sponsor
            has agreed to purchase for an aggregate purchase price of $7,400,000, or $1.00 per Warrant, in a private placement that shall occur simultaneously with the consummation of the Public Offering; (vi) “Public Stockholders” shall mean
            the holders of securities issued in the Public Offering; (vii) “Trust Account” shall mean the trust fund into which a portion of the net proceeds of the Public Offering and the sale of the Private Placement Warrants shall be
            deposited; (viii) “Transfer” shall mean the (a) sale of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to purchase or otherwise dispose of or agreement to dispose of, directly or
            indirectly, or establishment or increase of a put equivalent position or liquidation with respect to or decrease of a call equivalent position within the meaning of Section 16 of the Exchange Act, and the rules and regulations of the Commission
            promulgated thereunder with respect to, any security, (b) entry into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any security, whether any such transaction is to
            be settled by delivery of such securities, in cash or otherwise, or (c) public announcement of any intention to effect any transaction specified in clause (a) or (b); and (ix) “Warrants” shall mean the Private Placement Warrants
            and public warrants.

   

  		12.	The Company will maintain an insurance policy or policies providing directors’ and officers’ liability insurance, and each Director 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 of the Company’s directors or officers.

   

  		13.	This Letter Agreement constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and
            supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby. This Letter
            Agreement may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument executed by all parties hereto.

   

   

  
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  		14.	No party hereto may assign either this Letter Agreement or any of its rights, interests, or obligations hereunder without the prior written
            consent of the other parties. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee. This Letter Agreement shall be
            binding on the Sponsor and each Insider and their respective successors, heirs and assigns and permitted transferees.

   

  		15.	Nothing in this Letter Agreement shall be construed to confer upon, or give to, any person or corporation other than the parties hereto any
            right, remedy or claim under or by reason of this Letter Agreement or of any covenant, condition, stipulation, promise or agreement hereof. All covenants, conditions, stipulations, promises and agreements contained in this Letter Agreement
            shall be for the sole and exclusive benefit of the parties hereto and their successors, heirs, personal representatives and assigns and permitted transferees.

   

  		16.	This Letter Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes
            be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

   

  		17.	This Letter Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the
            validity or enforceability of this Letter Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this
            Letter Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

   

  		18.	This Letter Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York without giving
            effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The parties hereto (i) all agree that any action, proceeding, claim or dispute arising out of, or relating in any way
            to, this Letter Agreement shall be brought and enforced in the courts of New York City, in the State of New York, and irrevocably submit to such jurisdiction and venue, which jurisdiction and venue shall be exclusive and (ii) waive any
            objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient forum.

   

  		19.	Any notice, consent or request to be given in connection with any of the terms or provisions of this Letter Agreement shall be in writing and
            shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery or facsimile transmission.

   

   

  
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  		20.	This Letter Agreement shall terminate on the earlier of (i) the expiration of the Lock-up Periods or (ii) the liquidation of the Company;
            provided, however, that this Letter Agreement shall earlier terminate in the event that the Public Offering is not consummated by December 31, 2021; provided further that paragraph 4 of this Letter Agreement shall survive such liquidation.

   

  [Signature
      Page Follows]

   

   

  
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  	 	Sincerely,
	 	 	 
	 	RIVERVIEW SPONSOR PARTNERS, LLC
	 	 	 
	 	By:	/s/ Scott Imorde
	 	 	Name: 	Scott Imorde
	 	 	Title:	President and Chief Executive Officer

   

  

  	 	By:	/s/ R. Brad Martin
	 	 	Name: 	 R. Brad Martin

   

  

  	 	By:	/s/ Charles K. Slatery
	 	 	Name: 	 Charles K. Slatery

    

  	 	By:	/s/ William V. Thompson
	 	 	Name: 	William V. Thompson

  

   

  

  	 	By:	/s/ Willie Gregory
	 	 	Name: 	Willie Gregory

   

  

  	 	By:	/s/ Mark Edmunds
	 	 	Name: 	Mark Edmunds

   

  

  	 	By:	/s/ Leslie Starr-Keating
	 	 	Name: 	Leslie Starr-Keating

   

   

    

   

    

   

    

  

  [Signature
        Page to Letter Agreement – Riverview Acquisition Corp.]

  
     

    
      

    

  

    

   

  	Acknowledged and Agreed:	 
	 	 	 
	RIVERVIEW ACQUISITION CORP.	 
	 	 	 
	 	 	 
	By:	/s/ R. Brad Martin	 
	 	Name: R. Brad Martin	 
	 	Title: Chairman and Chief Executive Officer	 

  

   

  

    

  

   

  [Signature Page to Letter Agreement –
      Riverview Acquisition Corp.]Exhibti 10.1

 

Verona
Pharma plc

(the “Company”)

 

EMPLOYEE CHANGE IN CONTROL SEVERANCE BENEFIT PLAN

 

Adopted by the Remuneration Committee on August 9,
2021

 

 Section 1.             Introduction.

 

This Verona Pharma Employee
Change in Control Severance Benefit Plan (the “Plan”) is hereby adopted effective as of August 9, 2021
(the “Effective Date”). The purpose of the Plan is to provide for the payment of severance benefits to certain
eligible employees of Verona Pharma plc (the “Company”) and its Affiliates that have been designated by the
Company on the attached Appendix A as eligible to participate in the Plan (each of the Company and any such Affiliate, a “Participating
Employer” and collectively, the “Participating Employers”) in the event such persons incur a qualifying
involuntary termination of employment with a Participating Employer in connection with a change in control of the Company in accordance
with the terms of this Plan and who meet the additional criteria set forth in Section 3 of the Plan (each an “Eligible
Employee” and collectively “Eligible Employees”). This Plan supplements and does not supersede
any other change in control related severance benefit plan, policy or practice maintained by the Company or any Affiliate of the Company
for Eligible Employees. In particular this Plan does not replace or supersede any change in control entitlements in the contract of employment
of any Eligible Employee to the extent that the entitlement in the Eligible Employee’s contract of employment is more generous than
the payments and benefits envisaged in this Plan. However, the payments and benefits received under this Plan and any plan, contract (including
any offer letter or contract of employment), agreement, practice, policy or program maintained by the Company or any Affiliate of the
Company (an “Other Arrangement”) shall not be duplicative, and an Eligible Employee will not be entitled to
receive any payments or benefits under this Plan to the extent that they are duplicative of any payments or benefits under an Other Arrangement.
This Plan document also is the Summary Plan Description for the Plan.

 

Section 2.             Definitions.

 

For purposes of this Plan,
the following capitalized terms shall have the meanings set forth below:

 

(a)            “Affiliate”
means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in
Rule 405 promulgated under the Securities Act.

 

(b)           “Base
Salary” shall mean the Eligible Employee’s base pay (excluding incentive pay, premium pay, commissions, overtime,
bonuses and other forms of variable compensation or pension contributions), at the rate in effect during the last regularly scheduled
payroll period immediately preceding the date of the Eligible Employee’s Qualifying Termination but without giving effect to any
reduction in base pay which occurs following a Change in Control.

 

(c)            “Board”
means the Company’s Board of Directors.

 

    1.

     

    

 

(d)           “Cause”
shall have the meaning ascribed to such term (or listed as a summary dismissal event) in any written employment or similar agreement between
the employee and the Participating Employer defining such term, but in the absence of such agreement such term shall mean, with respect
to an employee, the occurrence of any of the following events: (i) the employee’s conviction of any felony or any crime involving
fraud or dishonesty; (ii) the employee’s participation in a fraud, act of dishonesty or other act of gross misconduct that
adversely affects the Company; (iii) conduct by the employee that demonstrates the employee’s gross unfitness to serve under
circumstances that materially and adversely affect the Company; (iv) the employee’s violation of any statutory or fiduciary
duty, or duty of loyalty, owed to the Company; (v) the employee’s breach of any material term of any contract between such
employee and the Company; and/or (vi) the employee’s serious violation of a material Company policy. The determination that
a termination of employment of an employee is either for Cause or without Cause shall be made by the Plan Administrator, in its sole discretion.

 

(e)            “Change
in Control” has the meaning ascribed to such term in the Equity Plan.

 

(f)          “Change
in Control Related Termination” with respect to an Eligible Employee means such Eligible Employee’s Qualifying Termination
that occurs upon or during the twelve (12) month period immediately following a Change in Control.

 

(g)            “COBRA”
means the Consolidated Omnibus Budget Reconciliation Act of 1985.

 

(h)            “Code”
means the Internal Revenue Code of 1986, as amended.

 

(i)            “Equity
Plan” means the Verona Pharma plc Incentive Award Plan 2017 as amended from time to time.

 

(j)            “Plan
Administrator” has the meaning set forth in Section 12(a).

 

(k)          “Position”
means the last position held by the Eligible Employee prior to the Qualifying Termination, as determined without giving effect to
any reduction in position that occurs following a Change in Control.

 

(l)            “Qualified
Plan” means a plan sponsored by a Participating Employer that is intended to be qualified under Section 401(a) of
the Code.

 

(m)          “Qualifying
Resignation” means a voluntary resignation under the terms of any voluntary reduction in force program established by the
Plan Administrator (if any) pursuant to which participants are eligible to voluntarily resign and receive Plan benefits.

 

(n)           “Qualifying
Termination” means either (i) a Qualifying Resignation, or (ii) an involuntary termination of employment by the
Company or a Participating Employer that is for a reason other than Cause or the employee’s job performance. An employee’s
termination of employment on account of the employee’s death, disability, or resignation for any reason other than a Qualifying
Resignation shall not be considered a Qualifying Termination. The occurrence of (i) an involuntary termination of a Company employee
for a job performance reason at or about the same time as (ii) the involuntary termination of one or more other Company employees
that constitutes a Qualifying Termination shall not be a basis for the involuntary termination described in (i) to be regarded as
a Qualifying Termination. The Plan Administrator, in its sole discretion, shall determine whether or not a Qualifying Termination has
occurred.

 

    2.

     

    

 

(o)          “Target
Bonus” means with respect to an Eligible Employee, the amount of bonus payable
under the annual cash bonus plan applicable to such Eligible Employee for the year in which the termination of employment occurs determined
as if all the applicable performance goals  for such year were attained at a level of 100%.

 

Section 3.              Eligibility
For Benefits.

 

(a)          General
Rules. Subject to the requirements set forth in this Plan, the Company will grant severance benefits under the Plan to Eligible Employees.

 

(1)            Definition
of “Eligible Employee.”  A person is eligible to participate in the Plan if (i) such person is a regular full-time
employee of a Participating Employer who is not listed on Appendix B hereto; and (ii) such person’s employment with the Participating
Employer terminates due to a Change in Control Related Termination. The determination of whether a person is an Eligible Employee shall
be made by the Plan Administrator, in its sole discretion, and such determination shall be binding and conclusive on all persons.

 

(2)           In
order to be eligible to receive benefits under the Plan, the employee must remain on the job until his or her date of termination as scheduled
by the Participating Employer.

 

(3)            In
order to be eligible to receive benefits under the Plan, the employee also must execute (and not revoke) and deliver to the Company a
general waiver and release in the form determined by the Plan Administrator (the “Release”), within the applicable
time period set forth therein, but in no event more than sixty (60) days following the date of termination, and such Release must become
effective in accordance with its terms. The form of required Release may be incorporated into a separation or settlement agreement or
other agreement with the employee, and the form of which will be provided to the otherwise Eligible Employee by the Company no more than
five (5) days following the date of Qualifying Termination.

 

(4)            If
required by the Company in its discretion, in order to be eligible to receive benefits under the Plan, the employee also must execute
and deliver to the Company a form of Proprietary Information and Inventions Agreement and/or any other proprietary information, confidentiality
or non-solicitation or non-competition agreement (collectively the “PIIA”) no later than sixty (60) days following
the date of termination. Any form of required PIIA must be approved by the Plan Administrator prior to a Change in Control. If any PIIA
is required to be provided by an Eligible Employee in order to be eligible to receive benefits under the Plan, the Company will notify
the Eligible Employee and provide the required PIAA no more than five (5) days following the date of Qualifying Termination.

 

(b)           Exceptions
to Benefit Entitlement. An employee who otherwise is an Eligible Employee, will not receive benefits under the Plan (or will receive
reduced benefits under the Plan) in the following circumstances, as determined by the Plan Administrator in its sole discretion:

 

(1)            The
employee has executed an individually negotiated employment contract or agreement with a Participating Employer relating to severance
benefits that is in effect on his or her termination date, in which case such employee’s severance benefit, if any, shall be governed
by the terms of such individually negotiated employment contract or agreement and shall be governed by this Plan only to the extent that
the reduction pursuant to Section 4(c) below does not entirely eliminate benefits under this Plan.

 

    3.

     

    

 

(2)         The
employee voluntarily terminates employment with the Participating Employer other than due to a Qualifying Resignation. Such voluntary
terminations include, but are not limited to retirement or failure to return from a leave of absence on the scheduled date.

 

(3)             The
employee terminates employment due to death or disability.

 

(4)            The
employee terminates employment in order to accept employment with another entity that is wholly or partly owned (directly or indirectly)
by the Company or an Affiliate.

 

(5)             The
employee is offered an identical or substantially equivalent or comparable position with the Company or an Affiliate. For purposes of
the foregoing, a “substantially equivalent or comparable position” is one that offers the employee substantially the same
level of responsibility, the same or greater level of base pay, and is located at a worksite that is no greater than fifty (50) miles
from the Eligible Employee’s prior worksite.

 

(6)           The
employee is offered immediate reemployment or continued employment by a successor to the Company or by a purchaser of its assets, as the
case may be. For purposes of the foregoing, “immediate reemployment or continued employment” means that the employee’s
employment with the successor to the Company or the purchaser of its assets, as the case may be, results in uninterrupted employment such
that the employee does not incur a lapse in pay as a result of the change in ownership of the Company or the sale of its assets and which
offers the employee substantially the same level of responsibility, the same or greater level of base pay, and is located at a worksite
that is no greater than fifty (50) miles from the Eligible Employee’s prior worksite.

 

(7)           The
employee is rehired by the Company or an Affiliate prior to the date benefits under the Plan are scheduled to commence on terms which
offer the employee substantially the same level of responsibility, the same or greater level of base pay, and is located at a worksite
that is no greater than fifty (50) miles from the Eligible Employee’s prior worksite.

 

(8)             Benefits
under this Plan shall terminate immediately if the employee, at any time, violates any provision of the PIIA or any other proprietary
information, confidentiality, non-competition or non-solicitation obligation to which the employee is subject.

 

Section 4.             Amount
Of Benefit.

 

(a)          Severance
Benefits. Severance benefits under the Plan, if any, shall be provided to Eligible Employees who are terminated in a Change in Control
Related Termination as specified on Appendix C.

 

(b)          Additional
Benefits. The Board may, in its sole discretion, provide benefits (i) in addition to those pursuant to Section 4(a) to
Eligible Employees or (ii) to employees who are not Eligible Employees (“Non-Eligible Employees”) chosen
by the Board, in its sole discretion, and the provision of any such benefits to an Eligible Employee or a Non-Eligible Employee shall
in no way obligate the Company or the Board to provide such benefits to any other Eligible Employee or to any other Non-Eligible Employee,
even if similarly situated. If benefits under the Plan are provided to a Non-Eligible Employee, references in the Plan to “Eligible
Employee” shall be deemed to refer to such Non-Eligible Employee.

 

    4.

     

    

 

(c)          Certain
Reductions.

 

(1)            Mandatory
Reductions. Severance benefits provided under the Plan will be reduced, in whole or in part, by other similar benefits payable to
the Eligible Employee by the Company and/or the Participating Employer that become payable in connection with the Eligible Employee’s
termination pursuant to any Other Arrangement.

 

(2)            Discretionary
Reductions. The Company, in its sole discretion, shall have the authority to reduce an Eligible Employee’s severance benefits,
in whole or in part, by any other severance benefits, pay and benefits provided during a period following written notice of a plant closing
or mass layoff, pay and benefits in lieu of such notice, or other similar benefits payable to the Eligible Employee by the Company and/or
a Participating Employer that become payable in connection with the Eligible Employee’s termination of employment pursuant to (i) any
applicable legal requirement, including, without limitation, the Worker Adjustment and Retraining Notification Act or any other similar
state law, or (ii) any Company policy or practice providing for the Eligible Employee to remain on the payroll for a limited period
of time after being given notice of the termination of the Eligible Employee’s employment, and the Plan Administrator shall so construe
and implement the terms of the Plan. Any such reductions that the Company determines to make pursuant to this Section 4(c) shall
be made such that any benefit under the Plan shall be reduced solely by any similar type of benefit under such legal requirement, policy
or practice (i.e., any cash severance benefits under the Plan shall be reduced solely by any cash payments or severance benefits
under such legal requirement, policy or practice, and any continued insurance benefits under the Plan shall be reduced solely by any continued
insurance benefits under such legal requirement, policy or practice). The Company’s decision to apply such reductions to the severance
benefits of one Eligible Employee and the amount of such reductions shall in no way obligate the Company to apply the same reductions
in the same amounts to the severance benefits of any other Eligible Employee, even if similarly situated. In the Company’s sole
discretion, such reductions may be applied on a retroactive basis, with severance benefits previously paid being re-characterized as payments
pursuant to the Company’s statutory obligation.

 

(d)           Continued
Group Health Plan Benefits. Each Eligible Employee who is enrolled in a health, dental, or vision plan sponsored by the Participating
Employer may be eligible to continue coverage under such health, dental, or vision plan (or to convert to an individual policy), at the
time of the Eligible Employee’s termination of employment, under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”).
The Company will notify the Eligible Employee of any such right to continue such coverage at the time of termination pursuant to COBRA.
No provision of this Plan will affect the continuation coverage rules under COBRA, except that the Company’s payment, if any,
of applicable insurance premiums will be credited, as payment by the Eligible Employee for purposes of the Eligible Employee’s payment
required under COBRA. Therefore, the period during which an Eligible Employee may elect to continue the Company’s or its affiliate’s
health, dental, or vision plan coverage at his or her own expense under COBRA, the length of time during which COBRA coverage will be
made available to the Eligible Employee, and all other rights and obligations of the Eligible Employee under COBRA (except the obligation
to pay insurance premiums) will be applied in the same manner that such rules would apply in the absence of this Plan.

 

(e)           Non-Duplication
of Benefits. No Eligible Employee is eligible to receive benefits under this Plan more than one time, and no Eligible Employee will
be eligible to receive any payments or benefits under this Plan to the extent that they are duplicative of any payments or benefits under
an Other Arrangement.

 

    5.

     

    

 

Section 5.             Return
of Company Property.

 

An Eligible Employee will not
be entitled to any severance benefit under the Plan unless and until the Eligible Employee returns all Company Property. For this purpose,
 “Company Property” means all Company and Affiliate documents (and all copies thereof) and other Company and
Affiliate property which the Eligible Employee had in his or her possession at any time, including, but not limited to, Company and Participating
Employer files, notes, drawings, records, plans, forecasts, reports, studies, analyses, proposals, agreements, financial information,
research and development information, sales and marketing information, operational and personnel information, specifications, code, software,
databases, computer-recorded information, tangible property and equipment (including, but not limited to, computers, facsimile machines,
mobile telephones, servers), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or
embody any proprietary or confidential information of the Company or any Affiliate (and all reproductions thereof in whole or in part).

 

Section 6.             Time
Of Payment And Form Of Benefit.

 

The timing of payment of severance
benefits will be as set forth on Appendix C, subject to the provisions of this Section 6. All severance benefits provided under the
Plan are intended to comply with or satisfy the requirements for an exemption from application of Section 409A of the Code and the
regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”)
and any ambiguities herein shall be interpreted accordingly. Notwithstanding any provision of this Plan to the contrary, in the event
that the Plan Administrator determines that any amounts payable hereunder will be immediately taxable to any Eligible Employee under Section 409A,
the Plan Administrator may (without any obligation to do so or to indemnify the Eligible Employee for failure to do so) (A) adopt
such amendments to this Plan or adopt such other policies and procedures (including amendments, policies and procedures with retroactive
effect) that it determines to be necessary or appropriate to preserve the intended tax treatment of the benefits provided by this Plan
or the economic benefits of this Plan and (B) take such other actions it determines to be necessary or appropriate to exempt the
amounts payable hereunder from Section 409A or to comply with the requirements of Section 409A and thereby avoid the application
of penalty taxes thereunder.

 

Notwithstanding anything to
the contrary set forth herein or on Appendix C, any payments and benefits provided under the Plan that constitute “deferred compensation”
within the meaning of Section 409A shall not commence in connection with an Eligible Employee’s termination of employment unless
and until the Eligible Employee has also incurred a “separation from service,” as such term is defined in Treasury Regulations
Section 1.409A-1(h) (“Separation from Service”), unless the Company reasonably determines that such
amounts may be provided to the Eligible Employee without causing the Eligible Employee to incur the adverse personal tax consequences
under Section 409A.

 

It is intended that (i) each
installment of any benefits payable under the Plan to an Eligible Employee be regarded as a separate “payment” for purposes
of Treasury Regulations Section 1.409A-2(b)(2)(i), (ii) all payments of any such benefits under the Plan satisfy, to the greatest
extent possible, the exemptions from the application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4),
1.409A-1(b)(5) and 1.409A-1(b)(9)(iii), and (iii) any such benefits consisting of COBRA premiums also satisfy, to the greatest
extent possible, the exemption from the application of Section 409A provided under Treasury Regulations Section 1.409A-1(b)(9)(v).
However, if the Company determines that any such benefits payable under the Plan constitute “deferred compensation” under
Section 409A and the Eligible Employee is a “specified employee” of the Company, as such term is defined in Section 409A(a)(2)(B)(i),
then, solely to the extent necessary to avoid the imposition of the adverse personal tax consequences under Section 409A, (A) the
timing of such benefit payments shall be delayed until the earlier of (1) the date that is six (6) months and one (1) day
after the Eligible Employee’s Separation from Service and (2) the date of the Eligible Employee’s death (such applicable
date, the “Delayed Initial Payment Date”), and (B) the Company shall (1) pay the Eligible Employee
a lump sum amount equal to the sum of the benefit payments that the Eligible Employee would otherwise have received through the Delayed
Initial Payment Date if the commencement of the payment of the benefits had not been delayed pursuant to this paragraph and (2) commence
paying the balance, if any, of the benefits in accordance with the applicable payment schedule.

 

    6.

     

    

 

In no event shall payment of
any benefits under the Plan be made prior to an Eligible Employee’s termination date or prior to the effective date of the Release.
Additionally, if the Company determines that any payments or benefits provided under the Plan constitute “deferred compensation”
under Section 409A, and the Eligible Employee’s Separation from Service occurs at a time during the calendar year when the
Release could become effective in the calendar year following the calendar year in which the Eligible Employee’s Separation from
Service occurs, then regardless of when the Release is returned to the Company and becomes effective, the Release will not be deemed effective
any earlier than the latest permitted effective date for purposes of determining the timing of payment of severance benefits.

 

All severance payments under
the Plan shall be subject to applicable withholding for federal, state and local taxes. If an Eligible Employee is indebted to the Company
at his or her termination date, the Company reserves the right to offset any severance payments under the Plan by the amount of such indebtedness.

 

Section 7.             Application
of Internal Revenue Code Section 280G.

 

(a)           If
any payment or benefit an Eligible Employee would receive under the Plan from the Company pursuant to a Change in Control or otherwise
(“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G
of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise
Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the
largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest
portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and
local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Eligible
Employee’s receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment
may be subject to the Excise Tax. If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is
determined pursuant to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction
Method”) that results in the greatest economic benefit for the Eligible Employee. If more than one method of reduction will
result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).

 

    7.

     

    

 

(b)            Notwithstanding
any provision of paragraph (a) to the contrary, if the Reduction Method or the Pro Rata Reduction Method would result in any portion
of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant
to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified
so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification
shall preserve to the greatest extent possible, the greatest economic benefit for the Eligible Employee as determined on an after-tax
basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced
(or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are “deferred
compensation” within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not
deferred compensation within the meaning of Section 409A of the Code.

  

(c)            In
the event it is subsequently determined by the Internal Revenue Service that some portion of the Reduced Amount as determined pursuant
to clause (x) in paragraph (a) is subject to the Excise Tax, the Eligible Employee agrees to promptly return to the Company
a sufficient amount of the Payment so that no portion of the Reduced Amount is subject to the Excise Tax. For the avoidance of doubt,
if the Reduced Amount is determined pursuant to clause (y) in paragraph (a), the Eligible Employee will have no obligation to return
any portion of the Payment pursuant to the preceding sentence.

 

(d)           The
accounting firm engaged by the Company for general tax compliance purposes as of the day prior to the effective date of the Change in
Control shall perform the foregoing calculations unless otherwise determined by the Company. If the accounting firm so engaged by the
Company is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint
a nationally recognized accounting or consulting firm to make the determinations required hereunder. The Company shall bear all expenses
with respect to the determinations by such accounting or consulting firm required to be made hereunder.

 

(e)          The
Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide
its calculations, together with detailed supporting documentation, within fifteen (15) calendar days after the date on which the Eligible
Employee’s right to a Payment is triggered or such other time as requested by the Company.

 

Section 8.             Reemployment.

 

In the event of an Eligible
Employee’s reemployment by the Company or an Affiliate during the period of time in respect of which severance benefits provided
under the Plan have been paid, the Company, in its sole and absolute discretion, may cease payment of future severance benefits under
the Plan as a condition of reemployment.

 

Section 9.             Right
To Interpret Plan; Amendment and Termination.

 

(a)          Exclusive
Discretion. The Plan Administrator shall have the exclusive discretion and authority to establish rules, forms, and procedures for
the administration of the Plan and to construe and interpret the Plan and to decide any and all questions of fact, interpretation, definition,
computation or administration arising in connection with the operation of the Plan, including, but not limited to, the eligibility to
participate in the Plan and amount of benefits paid under the Plan. The rules, interpretations, computations and other actions of the
Plan Administrator shall be binding and conclusive on all persons.

 

(b)            Amendment
or Termination. The Company reserves the right to amend or terminate this Plan (including Appendix A, Appendix B, Appendix C and any
form of required PIIA) or the benefits to be provided hereunder, in each case, at any time prior to a Change in Control. Any action amending
or terminating the Plan or adopting or amending any form of required PIIA shall be in writing and approved by the Plan Administrator prior
to a Change in Control. The Plan and any form of required PIIA may not be amended or terminated following a Change in Control.

 

    8.

     

    

 

Section 10.           No
Implied Employment Contract.

 

The Plan shall not be deemed
(i) to give any employee or other person any right to be retained in the employ of the Company or a Participating Employer or (ii) to
interfere with the right of a Participating Employer to discharge any employee or other person at any time, with or without cause, which
right is hereby reserved.

 

Section 11.           Legal
Construction.

 

This Plan is intended to be
governed by and shall be construed in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”)
and, to the extent not preempted by ERISA, the laws of the State of North Carolina. This Plan is designed to be an “employee welfare
benefit plan,” as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

 

Section 12.           Claims, Inquiries
And Appeals.

 

(a)          Applications
for Benefits and Inquiries. Any application for benefits, inquiries about the Plan or inquiries about present or future rights under
the Plan must be submitted to the Plan Administrator in writing by an applicant (or his or her authorized representative). The Plan Administrator
is:

 

Verona Pharma

3 More London Riverside

London SE1 2RE UK

 

The Plan Administrator may at any time delegate
to any other named person or body, or reassume therefrom, any of its administrative duties with respect to this Plan.

 

(b)          Denial
of Claims. In the event that any application for benefits is denied in whole or in part, the Plan Administrator must provide the applicant
with written or electronic notice of the denial of the application, and of the applicant’s right to review the denial. Any electronic
notice will comply with the regulations of the U.S. Department of Labor. The notice of denial will be set forth in a manner designed to
be understood by the applicant and will include the following:

 

(1)            the
specific reason or reasons for the denial;

 

(2)            references
to the specific Plan provisions upon which the denial is based;

 

(3)           a
description of any additional information or material that the Plan Administrator needs to complete the review and an explanation of why
such information or material is necessary; and

 

(4)            an
explanation of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the applicant’s
right to bring a civil action under Section 502(a) of ERISA following a denial on review of the claim, as described in Section 10(d) below.

 

    9.

     

    

 

This notice of denial will be
given to the applicant within ninety (90) days after the Plan Administrator receives the application, unless special circumstances require
an extension of time, in which case, the Plan Administrator has up to an additional ninety (90) days for processing the application. If
an extension of time for processing is required, written notice of the extension will be furnished to the applicant before the end of
the initial ninety (90) day period.

 

This notice of extension will
describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision
on the application.

 

(c)          Request
for a Review. Any person (or that person’s authorized representative) for whom an application for benefits is denied, in whole
or in part, may appeal the denial by submitting a request for a review to the Plan Administrator within sixty-five (65) days after the
receipt of a notification that an application is denied. A request for a review shall be in writing and shall be addressed to:

 

Verona Pharma

3 More London Riverside

London SE1 2RE UK

 

A
request for review must set forth all of the grounds on which it is based, all facts in support of the request and any other matters that
the applicant feels are pertinent. The applicant (or his or her representative) shall have the opportunity to submit (or the Plan
Administrator may require the applicant to submit) written comments, documents, records, and other information relating to his or her
claim. The applicant (or his or her representative) shall be provided, upon request and free of charge, reasonable access to, and copies
of, all documents, records and other information relevant to his or her claim. The review shall take into account all comments, documents,
records and other information submitted by the applicant (or his or her representative) relating to the claim, without regard to whether
such information was submitted or considered in the initial benefit determination.

 

(d)          Decision
on Review. The Plan Administrator will act on each request for review within a reasonable period but not later than sixty (60) days
after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional sixty (60) days),
for processing the request for a review. If an extension for review is required, written notice of the extension will be furnished to
the applicant within the initial sixty (60) day period. This notice of extension will describe the special circumstances necessitating
the additional time and the date by which the Plan Administrator is to render its decision on the review. The Plan Administrator will
give prompt, written or electronic notice of its decision to the applicant. Any electronic notice will comply with the regulations of
the U.S. Department of Labor. In the event that the Plan Administrator confirms the denial of the application for benefits in whole or
in part, the notice will set forth, in a manner calculated to be understood by the applicant, the following:

 

(1)            the
specific reason or reasons for the denial;

 

(2)            references
to the specific Plan provisions upon which the denial is based;

 

(3)            a
statement that the applicant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents,
records and other information relevant to his or her claim; and

 

    10.

     

    

 

(4)            a
statement of the applicant’s right to bring a civil action under Section 502(a) of ERISA.

 

(e)         Rules and
Procedures. The Plan Administrator will establish rules and procedures, consistent with the Plan and with ERISA, as necessary
and appropriate in carrying out its responsibilities in reviewing benefit claims. The Plan Administrator may require an applicant who
wishes to submit additional information in connection with an appeal from the denial of benefits to do so at the applicant’s own
expense.

 

(f)          Exhaustion
of Remedies. No legal action for benefits under the Plan may be brought until the applicant (i) has submitted a written application
for benefits in accordance with the procedures described by Section 12(a) above, (ii) has been notified by the Plan Administrator
that the application is denied, (iii) has filed a written request for a review of the application in accordance with the appeal procedure
described in Section 12(c) above, and (iv) has been notified that the Plan Administrator has denied the appeal. Notwithstanding
the foregoing, if the Plan Administrator does not respond to a Participant’s claim or appeal within the relevant time limits specified
in this Section 12, the Participant may bring legal action for benefits under the Plan pursuant to Section 502(a) of ERISA.

 

Section 13.           Basis
Of Payments To And From Plan.

 

The Plan shall be unfunded,
and all cash payments under the Plan shall be paid only from the general assets of the Company.

 

Section 14.           Other
Plan Information.

 

(a)          Employer
and Plan Identification Numbers. The Employer Identification Number assigned to Verona Pharma (which is the “Plan Sponsor”
as that term is used in ERISA) by the Internal Revenue Service is 47-3149114. The Plan Number assigned to the Plan by the Plan Sponsor
pursuant to the instructions of the Internal Revenue Service is 501.

 

(b)         Ending
Date for Plan’s Fiscal Year. The date of the end of the fiscal year for the purpose of maintaining the Plan’s records
is December 31.

 

(c)          Agent
for the Service of Legal Process. The agent for the service of legal process with respect to the Plan is:

 

General Counsel

Verona Pharma

3 More London Riverside

London SE1 2RE UK

 

In addition, service of legal process may be made
upon the Plan Administrator.

 

    11.

     

    

 

(d)           Plan
Sponsor and Administrator. The “Plan Sponsor” and the “Plan Administrator” of the Plan is:

 

Verona Pharma

3 More London Riverside

London SE1 2RE UK

 

The Plan Sponsor’s and
Plan Administrator’s telephone number is +44 203 283 4200.

 

Section 15.           Statement
Of ERISA Rights.

 

Participants in this Plan (which
is a welfare benefit plan sponsored by Verona Pharma) are entitled to certain rights and protections under ERISA. If you are an Eligible
Employee, you are considered a participant in the Plan and, under ERISA, you are entitled to:

 

(a)            Receive
Information About Your Plan and Benefits

 

(1)           Examine,
without charge, at the Plan Administrator’s office and at other specified locations, such as worksites, all documents governing
the Plan and a copy of the latest annual report (Form 5500 Series), if applicable, filed by the Plan with the U.S. Department of
Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration;

 

(2)           Obtain,
upon written request to the Plan Administrator, copies of documents governing the operation of the Plan and copies of the latest annual
report (Form 5500 Series), if applicable, and an updated (as necessary) Summary Plan Description. The Administrator may make a reasonable
charge for the copies; and

 

(3)            Receive
a summary of the Plan’s annual financial report, if applicable. The Plan Administrator is required by law to furnish each participant
with a copy of this summary annual report.

 

(b)          Enforce
Your Rights. If your claim for a Plan benefit is denied or ignored, in whole or in part, you have a right to know why this was done,
to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

 

Under ERISA, there are steps
you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan,
if applicable, and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the
Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not
sent because of reasons beyond the control of the Plan Administrator.

 

If you have a claim for benefits
which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. In addition, if you disagree with the
Plan's decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may
file suit in Federal court.

 

If you are discriminated against
for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court
will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these
costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

 

    12.

     

    

 

(c)            Assistance
with Your Questions. If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions
about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you
should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone
directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor,
200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities
under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

 

    13.

     

    

 

Appendix
A

 

Verona
Pharma

Employee
Change in Control Severance Benefit Plan

 

The Participating Employer entities in the Employee
Change in Control Severance Benefit Plan are as follows:

 

Verona Pharma plc

All majority-owned subsidiaries of the
Company that are incorporated in the United States and which were not acquired by the Company in exchange for consideration in a share
purchase, merger, or similar corporate transaction.

 

A complete list of the employers sponsoring the
Plan may be obtained by participants and beneficiaries upon written request to the Plan Administrator, and is available for examination
by participants and beneficiaries. The foregoing list of Participating Employers is subject to such change as the Company, pursuant to
Section 9 of the Plan, may determine in its sole and absolute discretion at any time prior to a Change in Control. Any such change
to the Participating Employers shall be set forth in a revised version of this Appendix A approved by the Company’s Chief Executive
Officer or Chief Financial Officer. This Appendix A may not be amended at any time following a Change in Control.

 

     

     

    

 

Appendix
B

 

Excluded
Participants

 

David Zaccardelli

 

Mark Hahn

 

     

     

    

 

Appendix
C

 

Verona
Pharma

Employee
Change in Control Severance Benefit Plan

 

Change
in Control Related Termination Benefits

 

Capitalized
terms used herein have the definitions set forth in the Plan. Subject to the exceptions set forth in Section 3(b) of
the Plan, each Eligible Employee who is terminated in a Change in Control Related Termination and meets all the requirements set forth
in Sections 3(a) and 5 of the Plan, including, without limitation, timely provision of an effective Release and any required PIIA,
shall receive severance benefits as set forth in this Appendix C.

 

		1.	Cash Severance Benefits.

 

		a.	Base Salary. A cash severance benefit equal to the number of months of the Eligible Employee’s
Base Salary as determined based on the Eligible Employee’s position with the Company, as set forth below. Such cash severance benefit
will be paid in equal installments in accordance with the Participating Employer’s regular payroll procedures over the monthly period
following the date of the Change in Control Related Termination as indicated in the table below (the “Severance Period”),
subject to any delay in payment required by Section 6 of the Plan including any delay necessary so that no payments are made prior
to the effectiveness of the Release or provision of any required PIIA; provided, however, that to the extent such cash severance benefits
are exempt from Section 409A, the Company retains the right to elect to instead pay such amounts in a single lump sum within the
30 day period following the later of effectiveness of the Release or provision of any required PIIA to the extent approved by the Plan
Administrator.

 

	Position	Months
	Executive Officer	12
	Vice President and above	9
	Director – Executive, Senior, Associate	6
	Sr. Manager and below	3

 

		b.	Bonus. A cash
severance benefit equal to the Eligible Employee’s Target Bonus, pro-rated based on the number of days in the performance year preceding
the Change in Control Related Termination. Such cash severance benefit will be paid in a single lump sum cash payment on the first payroll
period following the date of the Change in Control Related Termination, subject to any delay in payment required by Section 6 of
the Plan including any delay necessary so that no payments are made prior to the effectiveness of the Release.

 

     

     

    

 

		2.	COBRA Premium Benefit. If the Eligible Employee timely elects continued coverage under COBRA, the
Participating Employer shall pay the full amount of the Eligible Employee’s COBRA premiums, or shall provide coverage under any
self-funded plan, on behalf of the Eligible Employee for the Eligible Employee’s continued coverage under the Participating Employer’s
group health plans, including coverage for the Eligible Employee’s eligible dependents, for the period commencing with the first
calendar month following the Change in Control Related Termination and continuing through the end of the calendar month that includes
the last day of the Severance Period (the “COBRA Payment Period”); provided, however, that no such premium payments
shall be made, and no coverage shall be provided under any self-funded group health plan, following the Eligible Employee’s death
or the effective date of the Eligible Employee’s coverage by a group health plan of a subsequent employer. Each Eligible Employee
shall be required to notify the Participating Employer immediately if the Eligible Employee becomes covered by a group health plan of
a subsequent employer. Upon the conclusion of such period of insurance premium payments made by the Participating Employer, or the provision
of coverage under a self-funded group health plan, the Eligible Employee will be responsible for the entire payment of premiums required
under COBRA for the duration of the COBRA period.

 

Notwithstanding the foregoing, if the
Participating Employer determines, in its sole discretion, that the Participating Employer cannot provide the COBRA premium benefits without
potentially incurring financial costs or penalties under applicable law (including, without limitation, Section 2716 of the Public
Health Service Act), the Participating Employer shall in lieu thereof pay the Eligible Employee a taxable cash amount, which payment shall
be made regardless of whether the Eligible Employee or his or her eligible dependents elect health care continuation coverage (the “Health
Care Benefit Payment”). The Health Care Benefit Payment shall be paid in monthly or bi-weekly installments on the same schedule
that the COBRA premiums would otherwise have been paid to the insurer. The Health Care Benefit Payment shall be equal to the amount that
the Participating Employer otherwise would have paid for COBRA insurance premiums (which amount shall be calculated based on the premium
for the first month of coverage), and shall be paid until the earlier of (i) the expiration of the COBRA Payment Period, or (ii) the
effective date of the Eligible Employee’s coverage by a group health plan of a subsequent employer.

 

For purposes of this Section 2,
(i) references to COBRA shall be deemed to refer also to analogous provisions of state law and (ii) any applicable insurance
premiums that are paid by the Participating Employer shall not include any amounts payable by the Eligible Employee under an Internal
Revenue Code Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of the Eligible Employee.

 

		3.	Relocation Reimbursement. If the Eligible Employee previously received relocation benefits from
the Company in connection with his or her employment with the Company and such Eligible Employee’s relocation of his or her primary
residence with respect to which such relocation benefits were provided occurred within twelve (12) months immediately prior to the Change
in Control Related Termination, notwithstanding anything to the contrary set forth in the Eligible Employee’s employment offer letter
or Other Arrangement setting forth the terms of such relocation benefits, the Eligible Employee will not be required to reimburse the
Company for the cost of any such relocation benefits.

 

     

     

    

 

		4.	Outplacement Services. The Eligible Employee will receive outplacement services suitable to the
Eligible Employee’s position from a provider selected by the Company until the earlier of (A) the end of the Severance Period
and (B) the Eligible Employee’s acceptance of an offer of full-time employment from a subsequent employer.

 

		5.	Reductions Pursuant to Section 4(c) of the Plan. The severance benefits set forth in
this Appendix C are subject to certain reductions under Section 4(c) of the Plan. Furthermore, no payment and/or benefits shall
be payable under this Plan if the Company reasonably determines (taking into account the intended economic benefits of this Plan) that
such severance payments and/or benefits under this Plan would give rise to any adverse tax consequences under Section 409A.

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