Document:

Exhibit 10.25

 

 

 

ADAPTIMMUNE THERAPEUTICS PLC

 

Company Share Option Plan

Adopted by the Company on 16 March 2015

Amended on 15 April 2015

 

 

 

Table of Contents

 

	
Clause
    	
 
    	
Subject Matter
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Interpretation
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Grant of Options
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Vesting Schedule and Performance   Conditions
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3A.
    	
 
    	
Scheme Limit
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Individual Limits on Grants
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Lapse and Suspension Of Options
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Exercise of Options
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
Manner of Exercise Of Options
    	
 
    	
19
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
Tax Liabilities
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.
    	
 
    	
Relationship with Employment   Contract
    	
 
    	
21
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
Takeovers
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
Rollover of Options
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.
    	
 
    	
Sale
    	
 
    	
25
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
13.
    	
 
    	
Listing
    	
 
    	
25
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
14.
    	
 
    	
Variation of Share Capital
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
15.
    	
 
    	
Notices
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
16.
    	
 
    	
Administration and Amendment
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
17.
    	
 
    	
Governing Law
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
18.
    	
 
    	
Jurisdiction
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
19.
    	
 
    	
Third Party Rights
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
20.
    	
 
    	
Data Protection
    	
 
    	
31
    

 

2

 

Rules of the Adaptimmune Therapeutics plc Company Share Option Plan

 

1.                                      Interpretation

 

1.1                               The following definitions and rules of interpretation apply in the Plan.

 

	
Adoption Date
    	
 
    	
the date of the adoption of the Plan by the   Company;
    
	
 
    	
 
    	
 
    
	
Aim Rules
    	
 
    	
means London Stock Exchange PLC’s rules relating   to AIM as in force at the date of this Plan or, where the context requires,   as amended or modified after the date of this agreement;
    
	
 
    	
 
    	
 
    
	
Associate
    	
 
    	
has the meaning given in paragraph 12 of Schedule   4;
    
	
 
    	
 
    	
 
    
	
Associated Company
    	
 
    	
has the meaning given in paragraph 35 of Schedule   4;
    
	
 
    	
 
    	
 
    
	
Board
    	
 
    	
the board of directors of the Company or a   committee of directors appointed by that board to carry out any of its   functions under the Plan;
    
	
 
    	
 
    	
 
    
	
Business Day
    	
 
    	
a day other than a Saturday, Sunday or public holiday   in England when banks in London are open for business;
    
	
 
    	
 
    	
 
    
	
Company
    	
 
    	
Adaptimmune Therapeutics plc, a company   incorporated and registered in England with number 9338148;
    
	
 
    	
 
    	
 
    
	
Connected
    	
 
    	
has the meaning given in section 718 of ITEPA   2003;
    
	
 
    	
 
    	
 
    
	
Constituent Company
    	
 
    	
any of the following:

 

(a)                                 the Company; and

 

(b)                                 any Eligible Company nominated by the Board to be a Constituent   Company at the relevant time;
    
	
 
    	
 
    	
 
    
	
Control
    	
 
    	
has the meaning given in section 719 of ITEPA   2003;
    
	
 
    	
 
    	
 
    
	
Date of Grant
    	
 
    	
the date on which an Option is granted under the   Plan;
    

 

3

 

	
Eligible Company
    	
 
    	
any Subsidiary of the Company of which the   Company has Control;
    
	
 
    	
 
    	
 
    
	
Eligible Employee
    	
 
    	
any Employee who:  

 

(a)           does   not have a Material Interest (either on his own or together with one or more   of his Associates), and has not had such an interest in the last 12 months;   and  

 

(b)           has   no Associate or Associates that has or (taken together) have a Material   Interest, or had such an interest in the last 12 months; and  

 

(c)           is   either:  

 

(i)            not   a director of any Constituent Company; or  

 

(ii)           a director of a Constituent Company   who is required to devote at least 25 hours per week (excluding meal breaks)   to his duties;
    
	
 
    	
 
    	
 
    
	
Employee
    	
 
    	
a bona fide employee of a Constituent Company;
    
	
 
    	
 
    	
 
    
	
Employer NICs
    	
 
    	
Secondary class 1 (employer) NICs (or any similar   liability for social security contributions in any jurisdiction) that are   included in any Tax Liability (or that would be included in any Tax Liability   if an election of the type referred to in rule 8.2.2 had not been made)   and that may be lawfully recovered from the Option Holder;
    
	
 
    	
 
    	
 
    
	
Exercise Price
    	
 
    	
the price at which each Share subject to an   Option may be acquired on the exercise of that Option, which (subject to rule 14):

 

(d)                                 if Shares are to be newly issued to satisfy the exercise of the   Option, may not be less than the nominal value of a Share;

 

(e)                                  may not be less than the Market Value of a Share on the Date of Grant;
    
	
 
    	
 
    	
 
    
	
Existing CSOP Options
    	
 
    	
all:

 

(f)                                   Options; and

 

(g)                                 options granted under any other Schedule 4 CSOP that has been   established by the Company or any of its Associated Companies,
    

 

4

 

	
 
    	
 
    	
that can still be exercised;
    
	
 
    	
 
    	
 
    
	
Existing EMI Options
    	
 
    	
all qualifying options (as defined in section 527   of ITEPA 2003) that have been granted as a result of employment with the   Company (or any other member of a group of companies to which the Company   belongs) that can still be exercised;
    
	
 
    	
 
    	
 
    
	
Existing Option
    	
 
    	
an option or any other right to acquire or   receive Shares granted under any Share Incentive Scheme (including the Plan),   that remains capable of exercise, or in the case of options or rights that do   not require exercise, remains capable of satisfaction;
    
	
 
    	
 
    	
 
    
	
Grantor
    	
 
    	
the person granting an Option, that may be:

 

(h)                                 the Company; or

 

(i)                                     the trustees of an employee benefit trust authorised by the Board to   grant Options at the relevant time; or

 

(j)                                    any other person so authorised;
    
	
 
    	
 
    	
 
    
	
Group
    	
 
    	
the Company and any other Constituent Companies   from time to time;
    
	
 
    	
 
    	
 
    
	
HMRC
    	
 
    	
HM Revenue & Customs;
    
	
 
    	
 
    	
 
    
	
ITEPA 2003
    	
 
    	
the Income Tax (Earnings and Pensions) Act 2003;
    
	
 
    	
 
    	
 
    
	
Key Feature
    	
 
    	
any provision of the Plan that is necessary to   meet the requirements of Schedule 4;
    
	
 
    	
 
    	
 
    
	
Listing
    	
 
    	
the listing of the securities of the Company on   the London Stock Exchange (including the AIM Market) or any recognised   investment exchange (as defined in section 285 of the financial Services and   Market Act 2000) including NASDAQ and NASDAQ Europe and their respective   share dealing markets and the Listing shall be treated as occurring on the   day on which trading of the securities of the Company begins;
    
	
 
    	
 
    	
 
    
	
Listing Rules
    	
 
    	
the Listing Rules issued by the United   Kingdom Listing Authority, as amended from time to time;
    
	
 
    	
 
    	
 
    
	
Market Value
    	
 
    	
market value determined in accordance with the   applicable provisions of Part 8 of the Taxation of Chargeable Gains Act   1992, provided that if Shares are subject to a Relevant Restriction, Market   Value of those Shares shall be determined 
    

 

5

 

	
 
    	
 
    	
as if they were not subject to a Relevant   Restriction;
    
	
 
    	
 
    	
 
    
	
Material Interest
    	
 
    	
has the meaning given in paragraph 10 of Schedule   4;
    
	
 
    	
 
    	
 
    
	
Model Code
    	
 
    	
the model code on dealings in shares set out in   the Listing Rules;
    
	
 
    	
 
    	
 
    
	
Option
    	
 
    	
a right to acquire Shares granted under the Plan;
    
	
 
    	
 
    	
 
    
	
Option Certificate
    	
 
    	
a certificate setting out the terms of an Option,   issued under rule 2.3 which shall be substantially in the form set out   in Appendix 1 to the rules or in such other form as approved by the   Board from time to time;
    
	
 
    	
 
    	
 
    
	
Option Holder
    	
 
    	
an individual who holds an Option or, where   applicable, his personal representatives;
    
	
 
    	
 
    	
 
    
	
Option Shares
    	
 
    	
the Shares over which an Option subsists;
    
	
 
    	
 
    	
 
    
	
Performance Condition
    	
 
    	
any condition set under rule 3 that:

 

(k)                                 must be met before an Option can be exercised at all; and/or

 

(l)                                     provides that the extent to which an Option becomes capable of   exercise shall be determined by reference to performance over a certain   period measured against specified targets;
    
	
 
    	
 
    	
 
    
	
Personal Data
    	
 
    	
any personal information which could identify an   Option Holder including Options held under the Plan or under any other   employee share scheme operated by the Company;
    
	
 
    	
 
    	
 
    
	
Personal Representatives
    	
 
    	
in relation to an Option Holder, the personal   representatives of the Option Holder (being either the executors of his will   to whom a valid grant of probate has been made or, if he dies intestate, the   duly appointed administrator(s) of his estate) who have produced to the   Company evidence of their appointment as such;
    
	
 
    	
 
    	
 
    
	
Plan
    	
 
    	
the employee share option plan constituted and   governed by these rules, as amended from time to time;
    
	
 
    	
 
    	
 
    
	
Qualifying Shares
    	
 
    	
Shares which satisfy the conditions specified in   paragraphs 16 to 18 and 20 of Schedule 4;
    
	
 
    	
 
    	
 
    
	
Reorganisation
    	
 
    	
the obtaining of Control of the Company after the   
    

 

6

 

	
 
    	
 
    	
Date of Grant by a company owned substantially by   the same persons after the obtaining of Control as owned the Company prior to   the change of Control;
    
	
 
    	
 
    	
 
    
	
Relevant CSOP Options
    	
 
    	
all Options granted under the Plan (and any other   Schedule 4 CSOP as a result of employment with the Company (or any other   member of a group of companies to which the Company belongs) that can still   be exercised;
    
	
 
    	
 
    	
 
    
	
Relevant Event
    	
 
    	
has the meaning given in paragraph 25A(7C) of   Schedule 4;
    
	
 
    	
 
    	
 
    
	
Relevant Offer
    	
 
    	
either:

 

(a)                                a general offer to acquire the whole of the issued 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 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, and it does not matter whether the offer   is made to different shareholders by different means;
    
	
 
    	
 
    	
 
    
	
Relevant Restriction
    	
 
    	
any provision included in any contract,   agreement, arrangement or condition to which any of sections 423(2),   423(3) and 423(4) of ITEPA 2003 would apply if references in those   sections to employment-related securities were references to Shares;
    
	
 
    	
 
    	
 
    
	
Rollover Period
    	
 
    	
any period during which Options may be exchanged   for options over shares in another company (under paragraph 26 of Schedule 4,   rule 11);
    
	
 
    	
 
    	
 
    
	
Sale
    	
 
    	
an unconditional agreement being entered into for   the sale to a person other than a Constituent Company, of the whole, or   substantially the whole, of the business and assets of the Company;
    
	
 
    	
 
    	
 
    
	
Schedule 4
    	
 
    	
Schedule 4 to ITEPA 2003;
    
	
 
    	
 
    	
 
    
	
Schedule 4 CSOP
    	
 
    	
a share plan that meets the requirements of 
    

 

7

 

	
 
    	
 
    	
Schedule 4 to ITEPA 2003;
    
	
 
    	
 
    	
 
    
	
Share Incentive Scheme
    	
 
    	
any arrangement to provide employees and/or   directors with shares;
    
	
 
    	
 
    	
 
    
	
Shares
    	
 
    	
£0.001 ordinary shares in the Company (subject to   rules 11 and 14);
    
	
 
    	
 
    	
 
    
	
Subsidiary
    	
 
    	
has the meaning given in section 1159 of the   Companies Act 2006;
    
	
 
    	
 
    	
 
    
	
Sufficient Shares
    	
 
    	
the smallest number of Shares that, when sold,   will produce an amount at least equal to the relevant Tax Liability (after   deduction of brokerage and any other charges or taxes on the sale);
    
	
 
    	
 
    	
 
    
	
Takeover
    	
 
    	
the company coming under the Control of a person   or persons as mentioned in rule 10.1;
    
	
 
    	
 
    	
 
    
	
Tax Liability
    	
 
    	
the total of:

 

(m)                             any PAYE income tax and primary class 1 (employee) national insurance   contributions (or any similar liability to withhold amounts in respect of   income tax or social security contribution in any jurisdiction) that any   employer (or former employer) of an Option Holder is liable to account for as   a result of the exercise of an Option; and

 

(n)                                 if the relevant Option includes the requirement specified in rule 8.2   any Employer NICs that any employer (or former employer) of an Option Holder   is liable to pay as a result of the exercise of an Option;
    
	
 
    	
 
    	
 
    
	
United Kingdom Listing   Authority
    	
 
    	
the Financial Conduct Authority (or any successor   body carrying out the same functions), acting in its capacity as the   competent authority for the purposes of Part VI of the Financial   Services and Markets Act 2000;
    
	
 
    	
 
    	
 
    
	
Vested Shares
    	
 
    	
Shares which, subject to the following   rules of this Scheme, may at the relevant time be acquired by the   exercise of an Option in accordance with these Rules in consequence of   the conditions set out in any applicable Vesting Schedule or Performance   Conditions being met; and
    
	
 
    	
 
    	
 
    
	
Vesting Schedule
    	
 
    	
such one or more time-based conditions as may be   specified by the Board in the Option Certificate as mentioned in   rules 3.1 and 3.2.
    

 

8

 

1.2                               Rule headings shall not affect the interpretation of the Plan.

 

1.3                               Unless the context otherwise requires, words in the singular shall include the plural and in the plural shall include the singular.

 

1.4                               Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders.

 

1.5                               A reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted from time to time.

 

1.6                               A reference to a statute or statutory provision shall include all subordinate legislation made from time to time under that statute or statutory provision.

 

1.7                               A reference to writing or written includes fax and e-mail.

 

1.8                               Any obligation on a party not to do something includes an obligation not to allow that thing to be done.

 

1.9                               A reference to the Plan or to any other agreement or document referred to in the Plan is a reference to the Plan or such other agreement or document as varied or novated (in each case, other than in breach of the provisions of the Plan) from time to time.

 

1.10                        References to rules are to the rules of the Plan.

 

1.11                        Any words following the terms including, include, in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms.

 

2.                                      Grant of Options

 

2.1                              Subject to the rules of the Plan, any Grantor may grant Options to any Eligible Employee it chooses at its absolute discretion.

 

2.2                               Options may not be granted:

 

2.2.1                                        at any time when that grant would be prohibited by, or in breach of any:

 

(a)              law; or

 

(b)              regulation with the force of law; or

 

(c)               rule of an investment exchange on which Shares are listed or traded, part of the Model Code or any other non-statutory rule with a purpose 

 

9

 

similar to any part of the Model Code that binds the Company or with which the Board has resolved to comply; or

 

2.2.2                                        at any time when Shares are not Qualifying Shares.

 

2.3                               An Option shall be granted by the Grantor executing an Option Certificate. Each Option Certificate shall be sent to the relevant Option Holder and shall specify (without limitation):

 

2.3.1                                        the Date of Grant of the Option;

 

2.3.2                                        the number and class of the Shares over which the Option is granted;

 

2.3.3                                        the Exercise Price;

 

2.3.4                                        the date(s) after which the Option, or part of the Option, may be exercised, unless an earlier event occurs to cause the Option to lapse or to become exercisable, in whole or in part.

 

2.3.5                                        the date when the Option will lapse, assuming that the Option is not exercised earlier and no event occurs to cause the Option to lapse earlier.

 

2.3.6                                        any Performance Conditions , and the method by which the Performance Conditions may be varied or waived;

 

2.3.7                                        a statement that:

 

(a)              the Option is subject to these rules, Schedule 4 and any other legislation applying to Schedule 4 CSOPs; and

 

(b)              the provisions listed in rule 2.3.7(a) shall prevail over any conflicting statement relating to the Option’s terms; and

 

2.3.8                                        whether or not the shares are subject to any Relevant Restrictions and, if so, the nature of the Relevant Restrictions.

 

2.4                               No amount shall be paid for the grant of an Option.

 

3.                                      Vesting Schedule and Performance Conditions

 

3.1                               An Option may be granted subject to either, or both, a Vesting Schedule and Performance Conditions as the Board shall determine.

 

10

 

3.2                               An Option may be granted on terms that different proportions of the Option Shares shall respectively become Vested Shares if the Option Holder holds continuous employment within the Group throughout such different periods, beginning with the Date of Grant, as the Board shall specify in the Option Certificate.

 

3.3                               An Option may be granted on terms that the extent to which the Option Shares become Vested Shares shall depend upon the extent to which one or more Performance Conditions specified in the Option Certificate is attained (so that if and insofar as any such Performance Condition is not attained, the Option shall then lapse and cease to be exercisable in respect of the proportion of Option Shares which does not then become Vested Shares).

 

3.4                               A Performance Condition may be specified to apply to the whole or part only of an Option.

 

3.5                               After an Option has been granted the Board may (with the consent of the Grantor, where appropriate) amend a Vesting Schedule so as to bring forward the time at which any Option Shares shall become Vested Shares or vary any Performance Condition imposed pursuant to rule 3.1 PROVIDED THAT no such variation shall be made unless an event has occurred or events have occurred in consequence of which the Board reasonably considers that the terms of the existing Performance Conditions should be so varied for the purpose of ensuring that either the objective criteria against which the performance of the Group and/or any Constituent Company and/or any division and/or the Option Holder will then be measured will be, in the reasonable opinion of the Board, a fairer measure of such performance or that any varied Performance Condition will afford a more effective incentive to Option Holders and will be no more difficult to satisfy than was the Performance Condition when first set.

 

3.6                               After an Option has been granted the Board may (with the consent of the Grantor, if appropriate), waive in whole or in part any requirement that a Performance Condition be met as a condition of exercise of an Option PROVIDED THAT no such waiver shall be made unless an event or events have occurred in consequence of which the Board reasonably considers that the terms of the existing Performance Condition no longer afford an effective incentive to the Option Holder.

 

3.7                               The Board shall determine whether, and to what extent, any Performance Conditions have been satisfied.

 

11

 

3.8                               If an Option is subject to any Performance Condition, the Board shall notify the Option Holder (and the Grantor, if not the Company) within a reasonable time after the Board becomes aware of the relevant information:

 

3.8.1                                        whether (and, if relevant, to what extent) the Performance Condition has been satisfied and the relevant Option has therefore vested;

 

3.8.2                                        of any subsequent change in whether, or the extent to which, the Performance Condition has been satisfied;

 

3.8.3                                        when that Performance Condition has become incapable of being satisfied in whole or in part; and

 

3.8.4                                        of any waiver or variation of that Performance Condition under rule 3.5 or rule 3.6.

 

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

 

3.8.6                                        If, in consequence of a Performance Condition being met, an Option becomes vested in respect of some but not all of the Option Shares, it shall thereupon lapse and cease to be exercisable in respect of the balance of the Option Shares if such Performance Condition is incapable of being met in respect of the balance of such Option Shares.

 

3A.                             SCHEME LIMIT

 

3A.1                      In the event of a Listing, no Option may be granted if, immediately following the grant, it would make the aggregate number of Shares subject to awards made following the Listing under the Scheme and any other incentive plans for directors, employees and/or consultants adopted by the Company or any subsidiary of the Company exceed the Scheme Limit at that time.

 

3A.2                      The “Scheme Limit” at any time shall be 8% of the number of Shares comprised in the Initial Fully Diluted Share Capital plus any Annual Increments by which the Scheme Limit has increased prior to that time in accordance with Rule 3A.4.

 

3A.3                      The “Initial Fully Diluted Share Capital” shall be the issued share capital of the Company immediately following the Listing plus the number of shares which would be issued if all options to acquire Shares granted by the Company to directors or employees of or consultants to the Company or any subsidiary of the Company 

 

12

 

(whether or not still in that capacity at the time of the Listing) which were outstanding at the time of the Listing were exercised in full and satisfied by the issue of new Shares by the Company.

 

3A.4                      On 1 July in each year, commencing with 1 July 2016, the Scheme Limit shall automatically increase by 4% of the number of shares comprised in the issued share capital of the Company at the end of the immediately preceding 30 June, or, in each case, such lower number as the Board may prior to that 1 July determine.  Each such increase shall be an “Annual Increment”.

 

3A.5                      For the purposes of Rule 3A.1, Shares subject to awards which have been satisfied (in whole or in part) shall be included (to the extent that the relevant award has been satisfied), and Shares subject to awards which (in whole or in part) have lapsed or otherwise become incapable of exercise (other than by reason of the satisfaction thereof) shall not be included (to the extent that the relevant award has lapsed or otherwise become incapable of exercise).

 

3A.6                      In the event that there is more than one Listing in relation to the Company, the term “Listing” in Rules 3A.1 and 3A.3 shall be interpreted as a reference to the first such Listing.

 

4.                                      Individual Limits on Grants

 

4.1                               References to Market Value in this rule 4 are to the Market Value on the date on which the relevant option was granted.

 

4.2                               If the grant of any share option intended to be an Option (referred to in this rule 4.2 as the Excess Option) would cause the total Market Value of shares subject to:

 

4.2.1                                        the Excess Option; and

 

4.2.2                                        all Existing CSOP Options held by the relevant Eligible Employee,

 

to exceed £30,000 (or any other amount specified in paragraph 6 of Schedule 4 at the relevant time), the whole of that Excess Option shall take effect as a share option granted outside the Plan (but subject to the same terms and conditions as if it were an Option) and without the tax advantages available for Options.

 

4.3                               If the grant of any share option intended to be an Option (referred to in this rule 4.3 as the Excess Option) would cause the total Market Value of shares subject to:

 

13

 

4.3.1                                        the Excess Option; and

 

4.3.2                                        all Relevant CSOP Options held by the relevant Eligible Employee; and

 

4.3.3                                        all Existing EMI Options held by the relevant Eligible Employee,

 

to exceed £250,000 (or any other amount specified in section 536(1)(e) of ITEPA 2003 at the relevant time), the whole of that Excess Option shall take effect as a share option granted outside the Plan (but subject to the same terms and conditions as if it were an Option) and without the tax advantages available for Options.

 

5.                                      Lapse and Suspension Of Options

 

5.1                               Options may not be transferred or assigned or have any charge or other security interest created over them. An Option shall lapse if the relevant Option Holder attempts to do any of those things. But, the transfer of an Option to an Option Holder’s Personal Representatives on the death of the Option Holder will not cause an Option to lapse.

 

5.2                               Subject to rule 6.10, an Option shall lapse on the earliest of the following:

 

5.2.1                                        any attempted action by the Option Holder falling within rule 5.1; or

 

5.2.2                                        when a Performance Condition applying to the whole Option becomes incapable of being met, as a result of which no part of the Option can be exercised; or

 

5.2.3                                        the date on which the Option shall lapse, as specified in the Option Certificate; or

 

5.2.4                                        the first anniversary of the Option Holder’s death; or

 

5.2.5                                        the expiry of any time limit for the exercise of an Option specified in rule 6;

 

5.2.6                                        if rule 5.4 applies, the earliest applicable event specified in rule 5.8; or

 

5.2.7                                        if rule 10 or rule 12 applies, the time specified for the lapse of the Option under the relevant rule; or

 

5.2.8                                        if a New Option is offered in exchange for an Old Option in accordance with rule 11 where the Acquiring Company obtains Control of the Company pursuant to a Reorganisation, the Old Option shall lapse 40 days from the 

 

14

 

later of the date of the Reorganisation or the date the New Option is offered; or

 

5.2.9                                        when the Option Holder becomes bankrupt under Part IX of the Insolvency Act 1986, or applies for an interim order under Part VIII of the Insolvency Act 1986, or proposes or makes a voluntary arrangement under Part VIII of the Insolvency Act 1986, or takes similar steps, or is similarly affected, under laws of any jurisdiction that correspond to those provisions of the Insolvency Act.

 

5.3                               Part of an Option shall lapse where:

 

5.3.1                                        a Performance Condition set for that Option has been met in such a way that the Option has become, and shall remain, exercisable only in part; or

 

5.3.2                                        a Performance Condition set for part of that Option becomes incapable of being met, as a result of which that part of the Option cannot be exercised; or

 

5.3.3                                        Rule 5.4 applies and the Board has determined under rule 6.4 that the Option may be exercised, but only in part.

 

5.4                               Subject to rules 5.6, 6.4 and 6.10, an Option (in these rules, the Suspended Option) cannot be exercised under any rule of the Plan after the Option Holder has ceased employment with any Eligible Company for any reason (other than those specified in rule 6.3) unless:

 

5.4.1                                        the Option Holder becomes (or remains) an employee of another Eligible Company at (or about) the same time; or

 

5.4.2                                        the Board decides to permit the exercise of the Suspended Option under rule 6.4.

 

5.5                               The Board shall notify the relevant Grantor (if the Grantor is not the Company) of any Option to which rule 5.4 applies, within a reasonable time after the Board becomes aware of that fact.

 

5.6                               If:

 

5.6.1                                        notice to terminate employment is given by or to an Option Holder; and

 

5.6.2                                        that termination falls within rule 5.4,

 

15

 

the time the notice is given shall be treated under rule 5.4 (but not rule 5.8.2(a)) as the time at which the relevant employment ends. If this rule 5.6 applies, an Option Holder will not be able to exercise his Option after the giving of notice by or to him, subject to rule 6.4.

 

5.7                               A Suspended Option shall not become exercisable under these rules unless the Board decides to permit its exercise under rule 6.4.

 

5.8                               Unless it lapses earlier under rule 5.2, a Suspended Option shall lapse:

 

5.8.1                                        if the Board has decided that the Suspended Option may be exercised in whole or in part under rule 6.4, at the end of the period during which it may be exercised under that Board decision; or

 

5.8.2                                        if the Board has not decided that the Suspended Option may be exercised in whole or in part under rule 6.4, on the earlier of:

 

(a)              the date falling 90 days after the relevant cessation of employment; or

 

(b)              any date on which the Board determines that it will not allow exercise of the Suspended Option under rule 6.4.

 

6.                                      Exercise of Options

 

6.1                               Subject to rule 6.10, an Option may not in any event be exercised after the tenth anniversary of the Date of Grant.

 

6.2                               Subject to rules 10.2 and 12.2 an Option may only ever be exercised in respect of Vested Shares.

 

6.3                               If the Option Holder ceases to be an employee of any Eligible Company (so that he is no longer an employee of any such company) by reason of injury, disability, redundancy, retirement, a company ceasing to be an Eligible Company or a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006, his Option(s) may be exercised during the 90 days after the relevant cessation of employment.

 

6.4                               If rule 5.4 applies:

 

6.4.1                                        At any time during the 90 days after the relevant cessation of employment, the Board may, acting fairly and reasonably, decide that all or any part of the Suspended Option may be exercised.

 

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6.4.2                                        The Board may specify a period for the exercise of a Suspended Option under this rule 6.4 that begins and/or ends before the period for exercise specified in the Option Certificate.

 

6.4.3                                        Any period specified by the Board for the exercise of a Suspended Option under this rule 6.4 may not end later than:

 

(a)              the latest date on which that Option could have been exercised under the Option Certificate if it had not become a Suspended Option; and

 

(b)              the date falling 12 months after the relevant cessation of employment if the reason for the cessation is the death of the Option Holder.

 

6.4.4                                        An Option to which this rule 6.4 applies:

 

(a)              may be exercised in accordance with the terms of any decision of the Board to permit its exercise under this rule 6.4, subject to rule 5.8; and

 

(b)              shall lapse according to rule 5.3.3 (if applicable) and rule 5.8.

 

6.4.5                                        Unless otherwise specified by the Board exercise of an Option to which this rule 6.4 applies shall continue to be subject to rule 6.2.

 

6.4.6                                        The Board shall notify the relevant Option Holder (and the relevant Grantor, if not the Company) of any decision made under this rule 6.4, including any decision not to permit the exercise of a Suspended Option, within a reasonable time after making it.

 

6.5                               No Option may be exercised when its exercise is prohibited by, or would be a breach of, any of the following that then apply:

 

6.5.1                                        the Model Code; or

 

6.5.2                                        the AIM rules; or

 

6.5.3                                        any other rule, code or set of guidelines (such as a personal dealing code adopted by the Company) with a similar purpose and effect to any part of the Model Code; or

 

6.5.4                                        any law or regulation with the force of law.

 

6.6                               No Option may be exercised at any time when the Option Holder:

 

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6.6.1                                        has a Material Interest (any interests of the Option Holder’s Associates being treated as belonging to the Option Holder for this purpose); or

 

6.6.2                                        had a Material Interest in the 12 months before that time (any interests of the Option Holder’s Associates being treated as having belonged to the Option Holder for this purpose).

 

6.7                               Exercise of the Option is conditional upon the Option Holder executing, if so required by the Company, a deed of adherence (in such form as may be required by the Company) with the Company and all persons who are holders of shares in the capital of the Company at the date of exercise of the Option whereby the Option Holder becomes a party to any shareholders’ agreement or other document having a similar effect which is in force between the Company and all persons who, at the date of exercise of the Option, are holders of shares in the capital of the Company.

 

6.8                               An Option may only be exercised to the extent that any Performance Conditions have been met.

 

6.9                               An Option may only be exercised if the Option Holder has:

 

6.9.1                                        confirmed his agreement to rule 8 in writing (this confirmation may be included in the exercise notice); and

 

6.9.2                                        made any arrangements, or entered into any agreements, required under rule 8.

 

6.10                        If an Option Holder dies before the lapse of his Option, the Option may be exercised by his Personal Representatives at any time during the period of 12 months after the date of death, notwithstanding any contrary provision in the Plan save to the extent that contrary provision would not breach paragraph 25 of Schedule 4.

 

6.11                        Subject to Rule 6.12, no Option may be exercised at any time when the Shares to which the Option relates are not Qualifying Shares.

 

6.12                        If, in consequence of a Relevant Event, the Shares to which an Option relates are no longer Qualifying Shares, Options may be exercised under Rule 10 no later than 20 days after the day on which the Relevant Event occurs, notwithstanding that the Shares no longer meet those conditions (but not at any time when exercise would not be permitted under Rule 10, even if those conditions were met).

 

6.13                        Options may be granted on terms requiring the Option Holder to be bound by such restrictions on sale or other disposition of the Shares acquired on exercise of the 

 

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Option as the Board may require in relation to the Company’s first underwritten public offering of Shares under the US Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (or any such offering of a company which acquires the Company pursuant to a Reorganisation).

 

7.                                      Manner of Exercise Of Options

 

7.1                               Where an Option is exercised in part, the Grantor shall issue a new Option Certificate for the Shares that are still subject to the Option.

 

7.2                               An Option shall be exercised by the Option Holder giving a written exercise notice to the Company (acting as agent for the Grantor if the Grantor is not the Company), that shall:

 

7.2.1                                        set out the number of Shares over which the Option Holder wishes to exercise the Option. If that number exceeds the number over which the Option may be validly exercised at the time:

 

(a)              the Option shall be treated as exercised only in respect of that lesser number; and

 

(b)              any excess amount paid to exercise the Option or meet any Tax Liability shall be refunded; and

 

7.2.2                                        be made using a form that the Board will approve ;

 

7.2.3                                        include a power of attorney appointing the Company as the Option Holder’s agent and attorney for the purposes of rule 8.2.2, rule 8.4 and rule 8.6; and

 

7.2.4                                        include the confirmation required under rule 6.9.1 (unless this has been provided separately).

 

7.3                               Any exercise notice shall be accompanied by:

 

7.3.1                                        payment of an amount equal to the Exercise Price multiplied by the number of Shares specified in the notice; and

 

7.3.2                                        any payment required under rule 8; and/or

 

7.3.3                                        any documents relating to arrangements or agreements required under rules 6.7, 6.13 and 8.

 

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7.4                               Any exercise notice shall be invalid:

 

7.4.1                                        to the extent that it is inconsistent with the Option Holder’s rights under these rules and the Option Certificate; or

 

7.4.2                                        if any of the requirements of rule 7.2 or rule 7.3 are not met; or

 

7.4.3                                        if any payment referred to in rule 7.3 is made by a cheque that is not honoured on first presentation or in any other manner that fails to transfer the expected value to the Grantor.

 

The Grantor may permit the Option Holder to correct any defect referred to in rule 7.4 (but shall not be obliged to do so). The date of any corrected exercise notice shall be the date of the correction rather than the original notice date for all other purposes of the Plan.

 

7.5                               Shares shall be allotted and issued (or transferred, as appropriate) within 30 days after a valid Option exercise, subject to the other rules of the Plan.

 

7.6                               Except for any rights determined by reference to a date before the date of allotment, Shares allotted and issued in satisfaction of the exercise of an Option shall rank equally in all respects with the other shares of the same class in issue at the date of allotment.

 

8.                                      Tax Liabilities

 

8.1                               Each Option shall include a requirement that the Option Holder irrevocably agrees to:

 

8.1.1                                        pay to the Company, his employer or former employer (as appropriate) the amount of any Tax Liability; or

 

8.1.2                                        enter into arrangements to the satisfaction of the Company, his employer or former employer (as appropriate) for payment of any Tax Liability.

 

8.2                               Unless the Constituent Company that employs the relevant Eligible Employee directs that it shall not, each Option shall include a requirement that the Option Holder irrevocably agrees that:

 

8.2.1                                        the Company, his employer or former employer (as appropriate) may recover the whole or any part of any Employer NICs from the Option Holder; or

 

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8.2.2                                        at the request of the Company, his employer or former employer, the Option Holder shall elect (using a form approved by HMRC) that the whole or any part of the liability for Employer NICs shall be transferred to the Option Holder.

 

8.3                               An Option Holder’s employer or former employer may decide to release the Option Holder from, or not to enforce, any part of the Option Holder’s obligations in respect of Employer NICs under rule 8.1 and rule 8.2.

 

8.4                               If an Option Holder does not fulfil his obligations under either rule 8.1.1 or rule 8.1.2 in respect of any Tax Liability arising from the exercise of an Option within seven days after the date of exercise and Shares are readily saleable at that time, the Grantor shall withhold Sufficient Shares from the Shares that would otherwise be delivered to the Option Holder. From the net proceeds of sale of those withheld Shares, the Grantor shall pay to the Company, employer or former employer an amount equal to the Tax Liability and shall pay any balance to the Option Holder.

 

8.5                               Option Holders shall have no rights to compensation or damages on account of any loss in respect of Options or the Plan where such loss arises (or is claimed to arise), in whole or in part, from the Plan ceasing to be a Schedule 4 CSOP.

 

8.6                               Each Option shall include a requirement that the Option Holder irrevocably agrees to enter into a joint election under section 431(1) or section 431(2) of ITEPA 2003, if required to do so by the Company, his employer or former employer, on or before the date of exercise of the Option.

 

9.                                      Relationship with Employment Contract

 

9.1                               The rights and obligations of any Option Holder under the terms of his office or employment with the Company (or any Eligible Company or former Eligible Company) shall not be affected by being an Option Holder.

 

9.2                               The value of any benefit realised under the Plan by Option Holders shall not be taken into account in determining any pension or similar entitlements.

 

9.3                               Option Holders and Employees shall have no rights to compensation or damages on account of any loss in respect of Options or the Plan where such loss arises (or is claimed to arise), in whole or in part, from:

 

9.3.1                                        termination of office or employment with; or

 

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9.3.2                                        notice to terminate office or employment given by or to,

 

the Company, any Eligible Company or any former Eligible Company. This exclusion of liability shall apply however termination of office or employment, or the giving of notice, is caused and however compensation or damages may be claimed.

 

9.4                               Option Holders and Employees shall have no rights to compensation or damages from the Company, any Constituent Company or any former Constituent Company on account of any loss in respect of Options or the Plan where such loss arises (or is claimed to arise), in whole or in part, from:

 

9.4.1                                        any company ceasing to be a Constituent Company; or

 

9.4.2                                        the transfer of any business from a Constituent Company to any person that is not a Constituent Company.

 

This exclusion of liability shall apply however the change of status of the relevant Constituent Company, or the transfer of the relevant business, is caused, and however compensation or damages may be claimed.

 

9.5                               An Employee shall not have any right to receive Options, whether or not he has previously been granted any.

 

10.                               Takeovers

 

10.1                        Subject to rules 6.1 and 10.2, if any person (“the Controller”) acquires Control of the Company as a result of a Relevant Offer, or entering into a share sale and purchase agreement which will result in the Controller obtaining Control of the Company upon completion (on its own account or acting together with others); the Option Holder shall, whether or not he subsequently or in consequence of the change in control ceases to be employed by any Constituent Company for any reason but subject to the provisions of rule 6.2, be entitled to exercise his Option in relation to Vested Shares within the period of 40 days beginning with the date when the Controller has obtained Control of the Company and (if relevant) any condition subject to which the offer is made has been satisfied and to the extent that the Option is not exercised within such period it shall lapse and cease to be exercisable.  This clause 10 shall not apply where the Controller acquires Control of the Company as a result of a Reorganisation.

 

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10.2                        Notwithstanding rule 10.1, if a person makes a Relevant Offer or negotiates a share sale and purchase agreement with the shareholders of the Company which will result in a change in Control, the Board may, in its absolute discretion and by notice in writing to all Option Holders, declare all outstanding Options to be exercisable in respect of all Option Shares which would become Vested Shares upon such change of Control in anticipation of the change in Control during a reasonable limited period specified by the Board in the notice (which period shall end immediately before the Controller obtains Control of the Company if it has not already ended). If the Board so declares, all outstanding Options may be exercised at any time during such period. If not exercised, the Options shall lapse immediately upon expiry of such period.

 

10.3                        Subject to rule 6.1 if under s899 Companies Act the court sanctions a compromise or arrangement (other than in connection with a Reorganisation) applicable to or affecting:

 

10.3.1                                 all the ordinary share capital of the Company, or all the Shares; or

 

10.3.2                                 all the ordinary share capital of the Company, or all the Shares, 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 CSOP Scheme,

 

the Option Holder shall, whether or not he subsequently or in consequence of the compromise or arrangement ceases to be employed by any Constituent Company for any reason but subject to the provisions of rules 6.2, be entitled to exercise his Option in whole or in part within the period of 40 days beginning with the date the court sanctions the arrangement and to the extent that the Option is not exercised within such period it shall lapse and cease to be exercisable.

 

10.4                        In this rule 10 a person shall be deemed to have obtained Control of a company if he, and others acting with him, have obtained Control of it together.

 

11.                               Rollover of Options

 

11.1                        If a company has obtained Control of the Company as a result of company reorganisation (within the meaning of paragraph 26 of Schedule 4) affecting the Company, each Option Holder may, by agreement with that company (Acquiring Company) within the Rollover Period, release each Option (Old Option) for a

 

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replacement option (New Option). A New Option shall be equivalent to the Old Option within the meaning of paragraph 27 of Schedule 4 and accordingly it shall:

 

11.1.1                                 be over shares that satisfy the requirements of paragraphs 16 to 20 of Schedule 4 in the Acquiring Company (or some other company falling within paragraph 27(2)(b) of Schedule 4); and

 

11.1.2                                 be a right to acquire such number of those shares as have, immediately after grant of the New Option, a total Market Value substantially the same as the total Market Value of the shares subject to the Old Option immediately before its release (and for these purposes Market Value shall be determined using a methodology agreed by HMRC); and

 

11.1.3                                 have an exercise price per share such that the total price payable on complete exercise of the New Option is substantially the same as the total price that would have been payable on complete exercise of the Old Option; and

 

11.1.4                                 be exercisable in the same manner as the Old Option and subject to the provisions of the Plan as it had effect immediately before the Old Option’s release.

 

11.2                        Any Rollover Period shall have the same duration as the applicable appropriate period defined in paragraph 26(3) of Schedule 4.

 

11.3                        Any New Option granted under rule 11 shall be treated as having been acquired at the same time as the relevant Old Option for all other purposes of the Plan.

 

11.4                        The Plan shall be interpreted in relation to any New Options as if references to:

 

11.4.1                                 the Company (except for those in the definitions of Constituent Company and Eligible Company) were references to the Acquiring Company (or to any other company whose shares are subject to the New Options, as the context may require); and

 

11.4.2                                 the Shares were references to the shares subject to the New Options.

 

11.5                        The Company will remain the scheme organiser of the Plan (as defined in paragraph 2(2) of Schedule 4) following the release of Options and the grant of New Options under rule 11.

 

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11.6                        The Acquiring Company shall issue (or procure the issue of) an Option Certificate for each New Option.

 

12.                               Sale

 

12.1                        In the event of a Sale, Options may be exercised in respect of Vested Shares whether or not the relevant Option Holder shall have ceased to be employed by a Constituent Company subsequently to or in consequence of that Sale within the period of 40 days beginning with the date of the Sale and shall lapse and cease to be exercisable at the end of that period.

 

12.2                        If the Board anticipates that a Sale may occur, it may invite Option Holders to exercise Options in respect of Option Shares which would become Vested Shares upon such Sale within such period preceding such Sale as the Board may specify and, if an Option is not then exercised, it shall, unless the Board otherwise determines, lapse and cease to be exercisable at the end of that period.

 

13.                               Listing

 

13.1                        In the event of a Listing, Options may be exercised in respect of Vested Shares within such one or more periods after the Listing as the Board shall determine and notify to Option Holders before the Listing PROVIDED THAT:

 

13.1.1                                 no such period shall be less than 7 days long; and

 

13.1.2                                 the first such period shall begin within the period of 14 days beginning with the date of Listing; and

 

13.1.3                                 if no exercise period has been specified by the Board, Options may be exercised after the Listing; and

 

13.1.4                                 if more than one exercise period has been specified by the Board, Options shall in any event be exercisable in respect of not less than one-third of the Vested Shares at any time within the first such period; and

 

13.1.5                                 the Board shall specify in writing to the Option Holders, at the same time as issuing notice of the first exercise period, the number and dates of any further exercise periods.

 

13.2                        Subject to rule 13.3 if, pursuant to rule 13.1 an Option becomes exercisable in consequence of a Listing, then the Company shall have the right not to issue and

 

25

 

allot Shares upon the exercise of such Option unless the Option Holder has first agreed with the Company (in such form as the Board shall determine) that the Option Holder shall not sell or otherwise dispose of the Shares acquired upon the exercise of such Option within such period or periods (not extending beyond the second anniversary of the date of Listing) as the Board may specify in a notice in writing to the Option Holder.

 

13.3                        No such agreement as is mentioned in rule 13.2 shall prevent an Option Holder from immediately disposing of such number of the Shares so acquired (by way of sale for a consideration in cash which is not less than the best consideration which may be obtained at the time of sale) as is sufficient to enable the Option Holder (after deduction of costs and expenses of sale) to recover the cost of the aggregate Option Price paid and any income tax and National Insurance contributions due in consequence of such exercise of such Option.

 

14.                               Variation of Share Capital

 

14.1                        If there is any variation of the share capital of the Company (whether that variation is a capitalisation issue (other than a scrip dividend), rights issue, consolidation, subdivision or reduction of capital or otherwise) that affects (or may affect) the value of Options to Option Holders, the Board may adjust the number and description of Shares subject to each Option and/or the Exercise Price of each Option in a manner that the Board, in its reasonable opinion, considers to be fair and appropriate. However:

 

14.1.1                                 such adjustments may only be made in accordance with the provisions of paragraph 22 of Schedule 4;

 

14.1.2                                 the amendment of any Option granted by a Grantor other than the Company shall require the consent of that Grantor (which shall not be unreasonably withheld);

 

14.1.3                                 the Exercise Price for a Share to be newly issued on the exercise of any Option shall not be reduced below its nominal value (unless the Board resolves to capitalise, from reserves, an amount equal to the amount by which the total nominal value of the relevant Shares exceeds the total adjusted Exercise Price, and to apply such amount to pay-up the relevant Shares in full).

 

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15.                               Notices

 

15.1                        Any notice or other communication given under or in connection with the Plan shall be in writing and shall be:

 

15.1.1                                 delivered by hand or by pre-paid first-class post or other next working day delivery service at the appropriate address;

 

For the purposes of this rule 15, the appropriate address means:

 

(a)              in the case of the Company, its registered office, provided the notice is marked for the attention of the Company Secretary;

 

(b)              in the case of an Option Holder, his home address;

 

(c)               if the Option Holder has died, and notice of the appointment of personal representatives has been given to the Company, any contact address they have specified in such notice; and

 

(d)              in the case of any other Grantor, its registered office or such other address as has been notified in writing by the Grantor to the sender, provided the notice is marked for the attention of the person notified in writing to the sender,

 

15.1.2                                 sent by fax to the fax number notified in writing by the recipient to the sender; or

 

15.1.3                                 sent by email to the appropriate email address.

 

For the purposes of this rule 15, appropriate email address means:

 

(a)              in the case of the Company, the Company Secretary (margaret.henry@adaptimmune.com);

 

(b)              in the case of the Option Holder, if he is permitted to receive personal emails at work, his work email address; and

 

(c)               in the case of any other Grantor, any email address notified in writing by the Grantor to the sender.

 

15.2                        Any notice or other communication given under this rule 15 shall be deemed to have been received:

 

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15.2.1                                 if delivered by hand, on signature of a delivery receipt, or at the time the notice is left at the proper address;

 

15.2.2                                 if sent by pre-paid first-class post or other next working day delivery service, at 9.00am on the second Business Day after posting, or at the time recorded by the delivery service;

 

15.2.3                                 if send by fax, at 9.00am on the next Business Day after transmission; and

 

15.2.4                                 if sent by email, at 9.00am on the next Business Day after sending.

 

15.3                        This rule 15 does not apply to:

 

15.3.1                                 the service of any notice of exercise pursuant to rule 7.2; and

 

15.3.2                                 the service of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution.

 

16.                               Administration and Amendment

 

16.1                        The Plan shall be administered by the Board.

 

16.2                        The Board may amend the Plan from time to time, but:

 

16.2.1                                 no amendment may be made to a Key Feature of the Plan if, as a result of the amendment, the Plan would no longer be a Schedule 4 CSOP;

 

16.2.2                                 no material amendment may apply to Options granted before the amendment was made:

 

(a)              if the Grantor is not the Company, without the consent of the Grantor (which shall not be unreasonably withheld); and

 

(b)              if the amendment will have a material adverse impact on  the rights of the Option Holder:

 

(i)                  without the prior written consent of such number of Option Holders as hold Option under the Plan to acquire 75 per cent of the Shares which would be issued or transferred if all Options granted and subsisting under the Plan were at that time exercised; or

 

28

 

(ii)               Without a resolution at a meeting of Option Holders passed by not less than 75 per cent of the Option Holders who attend and vote either in person or by proxy, and for the purposes of this rule 16.2.2(b)(ii) the Option Holders shall be treated as a separate class of share capital and the provisions of the articles of association of the Company relating to class meetings shall apply mutatis mutandis.

 

16.2.3                                 no amendment may be made without the prior approval of the Company in general meeting if it would:

 

(a)              make the terms on which Options may be granted materially more generous; or

 

(b)              increase any of the limits specified in rule 4; or

 

(c)               change the definition of Eligible Employee to expand the class of potential Option Holders,

 

unless it is a minor amendment to benefit the administration of the Plan, to take account of a change in legislation or to obtain or maintain favourable tax, exchange control or regulatory treatment for Option Holders or for the Company or any Eligible Company;

 

16.3                        The cost of setting up and operating the Plan shall be borne by the Constituent Companies in proportions determined by the Board.

 

16.4                        Each Grantor other than the Company shall at all times:

 

16.4.1                                 keep sufficient issued Shares available; and/or

 

16.4.2                                 hold sufficient enforceable rights to subscribe for Shares, or to acquire issued Shares,

 

to satisfy the exercise of all Options granted by that Grantor.

 

16.5                        The Board shall determine any question of interpretation and settle any dispute arising under the Plan. In such matters, the Board’s decision shall be final.

 

16.6                        The Company and any other Grantor shall not be obliged to notify any Option Holder of any vesting of an Option or if an Option becomes exercisable or if an Option is due to lapse.

 

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16.7                        The Company, any other Grantor shall not be obliged to provide Option Holders with copies of any materials sent to the holders of Shares.

 

17.                               Governing Law

 

The Plan and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.

 

18.                               Jurisdiction

 

18.1                        Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with the Plan or its subject matter or formation (including non-contractual disputes or claims).

 

18.2                        Each party irrevocably consents to any process in any legal action or proceedings under rule 18.1 above being served on it in accordance with the provisions of the Plan relating to service of notices. Nothing contained in the Plan shall affect the right to serve process in any other manner permitted by law.

 

19.                               Third Party Rights

 

19.1                        A person who is not a party to the Option shall not have any rights under or in connection with it as a result of the Contracts (Rights of Third Parties) Act 1999 except where such rights arise under any provision of the Plan for any employer or former employer of the Option Holder which is not a party.

 

This does not affect any right or remedy of a third party which exists, or is available, apart from that Act.

 

19.2                        The rights of the parties to an Option to surrender, terminate or rescind it, or agree any variation, waiver or settlement of it, are not subject to the consent of any person that is not a party to the Option as a result of the Contracts (Rights of Third Parties) Act 1999.

 

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20.                               Data Protection

 

20.1                        In accepting the grant of an Option each Option Holder consents to the collection, holding, processing and transfer of his Personal Data by the Company, any Grantor or any Constituent Company for all purposes connected with the operation of the Plan.

 

20.2                        The purposes of the Plan referred to in rule 20.1 include, but are not limited to:

 

20.2.1                                 holding and maintaining details of the Option Holder’s Options;

 

20.2.2                                 transferring the Option Holder’s Personal Data to the trustee of an employee benefit trust, the Company’s registrars or brokers or any administrators of the Plan; and

 

20.2.3                                 transferring the Option Holder’s Personal Data to a bona fide prospective buyer of the Company or the Option Holder’s employer company or business unit (or the prospective buyer’s advisers), provided that the prospective buyer, and its advisers, irrevocably agree to use the Option Holder’s Personal Data only in connection with the proposed transaction and in accordance with the data protection principles set out in the Data Protection Act 1998; and

 

20.2.4                                 transferring the Option Holder’s Personal Data under rule 20.2.2 or rule 20.2.3 to a person who is resident in a country or territory outside the European Economic Area that may not provide the same statutory protection for the information as countries within the European Economic Area.

 

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Appendix 1

 

	
Dated
    	
201[*]
    

 

 

OPTION CERTIFICATE

 

 

 

 

THIS DEED dated             [DATE]

 

This is a deed of Adaptimmune Therapeutics plc incorporated and registered in England and Wales with company number 9338148 whose registered office is at 91 Park Drive, Milton Park, Abingdon, Oxon, OX14 4RY (the Company).

 

Background:

 

A.                                    The Company has adopted the Adaptimmune Therapeutics plc Company Share Option Plan (Plan).

 

B.                                    The Plan is a Schedule 4 CSOP scheme (as defined in paragraph 1(A1) of Schedule 4 to the Income Tax (Earnings and Pensions) Act 2003).

 

C.                                    The Company wishes to grant an option under the Plan to [NAME OF EMPLOYEE] of [ADDRESS OF EMPLOYEE] (Option Holder), on the terms specified in this Deed (Option Certificate).

 

1.                                      Interpretation

 

1.1                               Terms defined in the rules of the Plan (but not defined in this Option Certificate) shall have the same meaning in this Option Certificate as in the rules of the Plan, unless the context requires otherwise. The rules of interpretation in the Plan also apply to the Option Certificate.

 

1.2                               A copy of the rules of the Plan may be obtained from the intranet of the Company.

 

1.3                               Terms in the Option Certificate such as you or your refer to and address the Option Holder.

 

2.                                      Grant Of Option

 

2.1                               Subject to the other terms of the Option Certificate and the rules of the Plan, the Company grants You an option (Option) to acquire [NUMBER OF SHARES] Ordinary Shares (Option Shares) in the Company.

 

2.2                               The Date of Grant of the Option is the date of execution of this Deed.

 

2.3                               The Exercise Price of the Option is £[x] per Option Share.

 

3.                                      Vesting Dates

 

3.1                               The Shares subject to your Option will vest and become Vested Shares as follows:

 

 

3.1.1                                        in respect of [·] Shares (being 25% of the Option Shares rounded down to the nearest whole number), on the first anniversary of the Date of Grant;

 

3.1.2                                        in respect of a further [·] Shares (being 1/36 of the remainder rounded down to the nearest whole number) at the end of each of the 35 months following the first anniversary of the Date of Grant;

 

3.1.3                                        in respect of a further [·] Shares (being the remainder of the Option Shares) on the fourth anniversary of the Date of Grant;

 

provided that no further vesting shall occur after you have ceased to be an Employee.

 

3.2                               You may lose the ability to exercise the Option and/or the Option may lapse before any date specified in clause 3.1 if certain events occur, in accordance with the rules of the Plan.

 

4.                                      Performance Condition

 

You may only exercise the Option following the occurrence of a Sale, Listing or Takeover (other than a Reorganisation), unless the Board, acting fairly and reasonably, allows you to exercise prior to any such event pursuant to rule 6.3, 6.4 or 6.10.  For the avoidance of doubt “Listing”, as defined in the rules of the Plan, shall include the listing of American Depositary Shares (ADSs) representing Shares on NASDAQ or any other recognised investment exchange (as defined in section 285 of the financial Services and Market Act 2000).

 

5.                                      Exercise within three years

 

If you exercise the Option before the date which is three years from the Date of Grant other than in certain defined events, You may not benefit from the special tax treatment for CSOP options. It is Your responsibility to take Your own tax advice in relation to any exercise of the Option.

 

6.                                      Latest Exercise Date

 

6.1                               Subject to rule 6.10 of the Plan, You may not exercise the Option after 5:00pm on the day immediately preceding the tenth anniversary of the Date of Grant and it will lapse on that date if it has not lapsed or been exercised in full before then.

 

 

6.2                               You may lose the ability to exercise the Option and/or the Option may lapse before the date specified in clause 6.1 if certain events occur, in accordance with the rules of the Plan.

 

7.                                      Restrictions Applying To The Option Shares

 

The Option Shares are subject to the Relevant Restrictions in Schedule 1.

 

8.                                      Terms of Option

 

8.1                               The Option is subject to:

 

8.1.1                                        Schedule 4 to the Income Tax (Earnings and Pensions) Act 2003 (Schedule 4);

 

8.1.2                                        any other legislation applying to Schedule 4 CSOP schemes; and

 

8.1.3                                        the rules of the Plan.

 

8.2                               The provisions referred to in clause 8.1 shall take precedence over any conflicting statement about the terms of the Option.

 

8.3                               Without limitation clause 3.2, clause 6.2, clause 9, clause 10, clause 11, clause 12 and clause 13 are included only as a summary of certain important provisions of the Plan, to draw these to your attention.

 

9.                                      Restrictions on Transfer and Charging

 

9.1                               You may not transfer the Option and it will lapse if You attempt to do so. However, the Option will not lapse if and when it passes to your personal representatives on your death.

 

9.2                               You may not make the Option subject to a charge or any other security interest. For example, You cannot use the Option as security for a loan. The Option will lapse if You attempt to do so.

 

9.3                               The Option will lapse if You are declared bankrupt.

 

10.                               Exercise After Cessation Of Employment

 

10.1                        After You cease holding office or employment with the Company or any other company of which the Company has control, You may only exercise the Option if, and to the extent that, exercise is then permitted under the rules of the Plan.

 

 

10.2                        In certain circumstances, after You give or receive notice to terminate employment with the Company or any other company of which the Company has Control, You may only exercise the Option if, and to the extent that, exercise is then permitted under the rules of the Plan.

 

11.                              Terms of Your Employment

 

11.1                        The grant and existence of the Option shall not affect the terms of your employment with the Company or any other company of which the Company has (or had) Control.

 

11.2                        You shall have no rights to compensation or damages on account of any loss concerning the Option or the Plan that arises (or is claimed to arise), in whole or in part, from:

 

11.2.1                                 the termination of any office or employment held by You; or

 

11.2.2                                 any notice to terminate office or employment given by or to You; or

 

11.2.3                                 any company ceasing to be a Constituent Company of the Plan; or

 

11.2.4                                 the transfer of any business to a person which is not a Constituent Company of the Plan; or

 

11.2.5                                 a determination by HMRC that the Plan is no longer a Schedule 4 CSOP scheme.

 

This clause 11.2 applies however the relevant circumstances are caused and however damages or compensation may be claimed.

 

11.3                        The grant of the Option does not give You any right to receive further options under the Plan, or any other share incentives or bonuses.

 

11.4                        The value of any benefit realised from the Option shall not be taken into account in determining your entitlement to any pension or similar benefit.

 

12.                               Income Tax And National Insurance Contributions

 

12.1                        Depending on the circumstances, on exercise of the Option You may have an income tax liability under PAYE and You may be required to pay national insurance contributions (NICs). If so, then:

 

12.1.1                                 the Company or your employer may require You to pay amounts in respect of your PAYE and NICs liability, or enter into some other arrangement specified by the Company for the payment of these amounts;

 

 

12.1.2                                 You may be required to:

 

(a)              pay; or

 

(b)              enter into a joint election to transfer; or

 

(c)               enter into an arrangement or agreement for the payment of

 

 

some or all of your employer’s secondary class 1 NICs liability arising from exercise of the Option; and

 

12.1.3                                 in some circumstances, the Company may withhold the number of Option Shares required to meet your liabilities in respect of PAYE, and primary (employee) class 1 NICs and secondary (employer) class 1 NICs.

 

12.2                        The Option may only be exercised if You:

 

12.2.1                                 confirm (in writing) that You agree to the requirements of the Plan relating to PAYE and NICs (Rule 8). This may be done at the time of exercise; and

 

12.2.2                                 make any arrangements, or enter into any agreements, that may be required under Rule 8.

 

13.                               Lock Up Agreement

 

Without prejudice to the generality of rule 13.2 of the Plan, the Company may require you as a condition of exercise to enter into a lock up agreement substantially similar to the requirements of subsection 2.11 of the Investors’ Rights Agreement in relation to the Company dated 23 February 2015, a copy of which Investors’ Rights Agreement will be supplied to you on request.

 

14.                               Exercise Of Option

 

14.1                        To exercise the Option, you should fill in and sign an exercise notice and submit it to the Company.

 

14.2                        You may also be required to enter into a deed of adherence, as referred to in rule 6.7 of the Plan.

 

14.3                        An exercise notice form is attached to this Option Certificate.

 

 

This document has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it.

 

 

Schedule 1

 

Relevant Restrictions

 

(A)                                                  Articles of Association

 

There are Relevant Restrictions contained in the Company’s Articles of Association. The details of these restrictions are set out below. In addition You will be provided with a copy of the Articles of Association so that You can refer to the full provisions containing these Relevant Restrictions.

 

Articles 7 to 11

 

Under the provisions of Article 7 to 10 of the Articles of Association of the Company, there is a general prohibition on transfers of Ordinary Shares other than to a Privileged Relation or a Family Trust. The definitions for these permitted transfers are copied below. This prohibition is subject to the provisions in Article 11 which allows a transfer to take place provided that the shares are first offered to the existing shareholders.

 

Privileged Relation:

 

in relation to an individual member or deceased or former individual member, means the husband or wife or the widower or widow of such member and all the lineal descendants and ascendants in direct line of such member and the brothers and sisters of such member and their lineal descendants and a husband or wife or widower or widow of any of the above persons and for the purposes aforesaid a step-child or adopted child or illegitimate child of any person shall be deemed to be his or her lineal descendant;

 

Family Trust:

 

as regards any particular individual member or deceased or former individual member, means a trust (whether arising under a settlement, declaration of trust or other instrument by whomsoever or wheresoever made or under a testamentary disposition or on an intestacy) under which no immediate beneficial interest in any of the Shares in question is for the time being vested in any person other than that individual and/or Privileged Relations of that individual; and so that for this purpose a person shall be considered to be beneficially interested in a Share if such Share or the income thereof is or may become liable to be transferred or paid or applied or appointed to or for the benefit of such person or any voting or other rights attaching thereto are or may become liable to be exercisable by or as directed by such person pursuant to the terms of the relevant trust or in consequence of an exercise of a power or discretion conferred thereby on any person or persons;

 

Article 12

 

If a holder of Ordinary Shares wishes to sell those shares in accordance with the terms of Article 11, they must first notify the Major Investors (as defined in the articles), who then have the right to elect to sell some of their shares on the relevant terms in lieu of a proportion of the shares to be sold by the original selling holder.

 

Article 13

 

Compulsory transfer (forfeiture) provisions apply where the individual is adjudicated bankrupt, if shares are not voluntarily transferred within a year of the individual’s death, or if the employee ceases to be employed by the Company. Fair value will be paid for a transfer arising under this Article and there is a mechanism for determining fair value in Article 13.

 

 

Article 14

 

No transfer of shares to a Non-Financial Buyer (as defined in the Articles) will be registered if it would result in the transferee (together with persons connected with it) holding or beneficially owning shares which give it more than 50% of the voting rights of the Company unless the transferee offers to buy the other shares at a specified price.

 

Article 15

 

In a case where shareholders are proposing to sell shares holding at least 75% of the voting rights in the Company, Article 14 enables them to force the minority to sell their shares for consideration specified in Article 14.

 

(B)                                                  Shareholders’ Agreement

 

There is a provision in rule 6.7 of the Plan pursuant to which you may be required on exercise of the Option to enter into a deed of adherence to a shareholders’ agreement entered into between the shareholders of the Company, under which you would agree to be bound by that agreement as though you were a party to it.  It is possible that such an agreement could contain Relevant Restrictions.  Details of certain restrictions on transfer set out in the existing shareholders’ agreement are set out below.  In addition, on request You will be provided with a copy of the relevant sections of the existing shareholders’ agreement so that You can refer to the full provisions containing these Relevant Restrictions.

 

Clause 7

 

No party to the shareholders’ agreement may transfer shares:

 

·                  unless the transferee enters into a deed of adherence;

 

·                  if the transferee is a competitor of the Company (unless pursuant to an offer under Article 15 of the Articles of Association of the Company).

 

(C)                                                  Lock Up Agreement

 

The Shares may be subject to restrictions contained in a lock up agreement as referred to in Rule 13.2 or clause 13 of the Option Certificate if You are required to enter into such an agreement, which would, inter alia, restrict Your ability to sell the Shares during certain periods in connection with a Listing.

 

 

	
Executed as a deed by 
    	
 
    
	
Adaptimmune Therapeutics plc 
    	
 
    
	
acting by:
    	
 
    
	
 
    	
[SIGNATURE OF FIRST DIRECTOR]  
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Director  
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[SIGNATURE OF SECOND DIRECTOR OR SECRETARY]  
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[Director OR Secretary]
    

 

 

	
DATED                                                201[*]
    	
 
    

 

 

ADAPTIMMUNE THERAPEUTICS PLC

COMPANY SHARE OPTION PLAN - NOTICE OF
  EXERCISE OF OPTION

 

 

 

THIS DEED dated                [DATE]                        is made by:

 

This notice is given by me,                                                       (write your full name here) (Option Holder).

 

15.                               Option Exercise

 

I wish to exercise the option (Option) granted to me on                                      (write date of grant here) by Adaptimmune Therapeutics plc (Company) under the rules of the Adaptimmune Therapeutics plc Company Share Option Plan (Plan).  I agree to the terms of the Plan and my Option Certificate in relation to the Option.

 

16.                               Number Of Shares To Be Acquired

 

I wish to exercise the Option to acquire:

 

·                  All

 

·                                    (if exercising only in part, write number of shares here)

 

(Delete one of the bullet points above, as appropriate.)

 

of the shares subject to the Option (the Shares) and I request that the Shares be allotted or transferred to me under the Plan and the articles of association of the Company.

 

(Note that you may exercise the Option in whole or in part)

 

17.                               Agreements About My Tax Liabilities

 

17.1                        I irrevocably agree to:

 

17.1.1                                 pay to the Company, my employer or former employer amounts equal to any PAYE income tax and primary class 1 (employee) National Insurance contributions (NICs) (or any similar liability for tax or social security contribution arising in any jurisdiction outside the United Kingdom) for which the Company, my employer or former employer is liable to account on the exercise of the Option or the sale of any Shares (or any other taxable event in relation to the Shares); or

 

17.1.2                                 enter into arrangements satisfactory to the Company to secure the payment of the amounts specified in clause 17.1.1.

 

 

17.2                        I irrevocably agree:

 

17.2.1                                 to pay to the Company, my employer or former employer amounts equal to any secondary class 1 (employer) NICs (or any similar liability for social security contribution arising in any jurisdiction outside the United Kingdom) which the Company, my employer or former employer is liable to pay on the exercise of the Option or the sale of any Shares (or any other taxable event in relation to the Shares) and which may be lawfully recovered from me;

 

17.2.2                                 to enter into arrangements satisfactory to the Company to secure the payment of the amounts specified in clause 17.2.1; or

 

17.2.3                                 if requested to do so by the Company, my employer or former employer, to enter into a joint election to transfer to me liability for the whole or any part of the amounts specified in clause 17.2.1.

 

17.3                        I understand and agree that, if I do not fulfil any obligation I then have under clause 17.1 and clause 17.2 within seven days after the date of this exercise, the Company may retain and sell enough of the Shares to satisfy my liabilities under clause 17.1 and clause 17.2, together with any costs arising from that sale. I shall be entitled to any balance of the sale proceeds.

 

17.4                        I irrevocably agree to enter into a joint election in respect of the Shares under section 431(1) or section 431(2) of the Income Tax (Earnings and Pensions) Act 2003, if required to do so by the Company, my employer or former employer at any time up to the date falling 14 days after I acquire the Shares.

 

17.5                        I appoint the Company (acting by any of its directors from time to time) as my agent and attorney to:

 

17.5.1                                 sell Shares and deal with the proceeds of sale as specified in clause 3.3  (if relevant, as modified by my direction in clause 18); and,

 

17.5.2                                 execute joint elections of the types specified in clause 17.2.3 and clause 17.4,

 

in my name and on my behalf.

 

The Company may appoint one or more persons to act as substitute agent(s) and attorney(s) for me and to exercise one or more of the powers conferred on the Company by this power of attorney, other than the power to appoint a substitute attorney. The Company may subsequently revoke any such appointment.

 

 

This power of attorney shall be irrevocable, except with the consent of the Company, and is given by way of security to secure the interest of the Company (for itself and as trustee under the Option on behalf of any employer or former employer of mine) as a person liable to account for or pay any relevant PAYE or NICs liability.

 

I declare that a person who deals in good faith with the Company or any substitute attorney as my attorney appointed under this Deed may accept a written statement signed by that person to the effect that this power of attorney has not been revoked as conclusive evidence of that fact.

 

18.                               Directions About My Tax And NICs Liabilities

 

(The Option was granted as an tax-advantaged CSOP option. As a result, income tax and NICs liabilities will only arise on exercise if certain limited circumstances.

 

If you have any doubt as to whether tax and NICs will be due on exercise, you should ask the Company Secretary to confirm the position before you exercise the Option.)

 

PAYE income tax and NICs (as specified in clause 17.1 and clause 17.2) (Tax Liability) may arise on this exercise. If a Tax Liability arises, I wish to pay my Tax Liability by the following method:

 

·                  I authorise my employer to deduct the Tax Liability under PAYE from my next salary payment.

 

·                  I have included payment for the Tax Liability in the enclosed cheque.

 

·                  I wish the Company to retain and sell enough Shares to meet the Tax Liability, as specified in clause 3.3 (but without being required to wait until seven days after this exercise before doing so).

 

·                  I have entered into other arrangements (which are satisfactory to the Company) to meet the Tax Liability.

 

Delete all but one of the bullet points above, as appropriate. If you do not select a method of settling your Tax Liability, the Company will sell a number of shares to meet your Tax Liability, as specified in clause 3.3.

 

19.                               Payment

 

19.1                        I enclose a cheque for                               (write amount here) which includes:

 

·                  The aggregate exercise price payable under the Option for the Shares.

 

 

·                  The amount due in respect of my PAYE and NICs liabilities (as specified in clause 17.1 and clause 17.2) arising on exercise. (Delete this bullet point, if it does not apply.)

 

19.2                       I enclose completed documentation relating to other arrangements (which are satisfactory to the Company) to meet my PAYE and NICs liabilities arising on exercise (as specified in clause 17.1 and clause 17.2). (Delete this clause, if it does not apply.)

 

19.3                        I enclose a completed deed of adherence in accordance with rule 6.8 of the Plan. (Delete this clause if it does not apply.)

 

19.4                        I enclose a completed lock up agreement as referred to in the Option Certificate (Delete this clause if it does not apply.)

 

This document has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it.

 

 

	
Signed as a deed by [NAME OF OPTION HOLDER] in   the presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[SIGNATURE OF OPTION HOLDER]
    
	
 
    	
 
    	
 
    
	
[SIGNATURE OF WITNESS]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[NAME, ADDRESS [AND OCCUPATION] OF WITNESS]Exhibit 10.26

 

DATED 24 April 2015

 

(1) ADAPTIMMUNE THERAPEUTICS PLC

 

and

 

(2) J.J. NOBLE

 

 

SERVICE AGREEMENT

 

 

 

Table of Contents

 

	
1.
    	
INTERPRETATION
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
APPOINTMENT
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
DURATION AND WARRANTIES
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
SCOPE OF THE EMPLOYMENT
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
HOURS AND PLACE OF WORK
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
REMUNERATION
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
PENSION AND OTHER BENEFITS
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
BONUS
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
EXPENSES
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
HOLIDAY
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
INCAPACITY
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
DEDUCTIONS
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
RESTRICTIONS ON OTHER   ACTIVITIES BY THE EXECUTIVE
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
CONFIDENTIALITY
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
DATA PROTECTION
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
INVENTIONS AND INTELLECTUAL   PROPERTY RIGHTS
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
17.
    	
TERMINATION OF EMPLOYMENT
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
GARDEN LEAVE
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
19.
    	
DIRECTORSHIP
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
20.
    	
POST TERMINATION OBLIGATIONS   OF THE EXECUTIVE
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
21.
    	
AMALGAMATION AND   RECONSTRUCTION
    	
 
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
22.
    	
DISCIPLINARY AND GRIEVANCE   PROCEDURES
    	
 
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
23.
    	
NOTICES
    	
 
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
24.
    	
ENTIRE AGREEMENT AND FORMER   SERVICE AGREEMENT(S)
    	
 
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
25.
    	
GOVERNING LAW AND   JURISDICTION
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
26.
    	
THIRD PARTY RIGHTS
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
27.
    	
GENERAL
    	
 
    	
20
    

 

2

 

THIS AGREEMENT is made the 24th day of April 2015

 

BETWEEN

 

1                               ADAPTIMMUNE THERAPEUTICS PLC, a company incorporated and registered in England and Wales under company number 09338148 whose registered office is at 91 Park Drive, Milton Park, Abingdon, Oxfordshire OX14 4RY (“the Company”);

 

2                               JAMES JULIAN NOBLE, of Flat 12, Victoria Gardens, 15 Marston Ferry Road, Oxford, OX2 7EF (“the Executive”)

 

The Board  has approved the terms of this Agreement under which the Executive is to be employed.

 

1.                                      INTERPRETATION

 

1.1                               In this Agreement the following words and expressions have the following meanings unless inconsistent with the context:

 

	
the “Board”
    	
 
    	
means the board of   directors from time to time of the Company and includes any committee of the   board of directors duly appointed by it;
    
	
 
    	
 
    	
 
    
	
the “Companies Acts”
    	
 
    	
means the Companies Act   1985, the Companies Act 1989 and the Companies Act 2006;
    
	
 
    	
 
    	
 
    
	
“Competitor or Potential   Competitor”
    	
 
    	
any organisation   involved in the discovery, development and application of TCR or T Cell   technologies or competing with any other aspect of the Company’s business   where such competition is based on technologies being developed or applied by   the Company from time to time and in which the Executive has been   substantially involved in the 12 months prior to any approach or attempt to   solicit;
    
	
 
    	
 
    	
 
    
	
the “Employment”
    	
 
    	
means the Executive’s   employment under this Agreement;
    
	
 
    	
 
    	
 
    
	
the “ERA”  
    	
 
    	
means the Employment   Rights Act 1996;
    
	
 
    	
 
    	
 
    
	
“Group Company”
    	
 
    	
means any firm,   company, corporation or other organisation which is a holding company from   time to time of the Company or any subsidiary from time to time of the   Company or any such holding company (for which purpose the expressions   ‘holding company’ and ‘subsidiary’ shall have the meanings given to them by   Section 1159 Companies Act 2006);
    
	
 
    	
 
    	
 
    
	
“Intellectual Property Rights”
    	
 
    	
means patents, rights   to inventions, copyright and related rights, trade marks, trade names and   domain names, rights in get-up, rights in goodwill or to sue for passing off,   unfair competition rights, rights in designs, rights in computer software,   database rights, topography rights,
    

 

3

 

	
 
    	
 
    	
rights in confidential   information (including know-how and trade secrets) and any other intellectual   property rights, in each case whether registered or unregistered and   including all applications (or rights to apply) for, and renewals or   extensions of, such rights and all similar or equivalent rights or forms of   protection which subsist or will subsist now or in the future in any part of   the world;
    
	
 
    	
 
    	
 
    
	
“Nasdaq”
    	
 
    	
means the Nasdaq Global   Select Market;
    
	
 
    	
 
    	
 
    
	
“Pre-Contractual Statement”  
    	
 
    	
means any undertaking,   promise, assurance, statement, representation or warranty (whether in writing   or not) of any person relating to the Employment which is not expressly set   out in this Agreement; and
    
	
 
    	
 
    	
 
    
	
the “Regulations”
    	
 
    	
means the Working Time   Regulations 1998.
    

 

1.2                               References to clauses, sub clauses and schedules are, unless otherwise stated, references to clauses and sub clauses of and schedules to this Agreement.

 

1.3                               The headings to the clauses are for convenience only and shall not affect the construction or interpretation of this Agreement.

 

1.4                               References to persons shall include bodies corporate, unincorporated associations and partnerships.

 

1.5                               Words and expressions defined in or for the purpose of the Companies Acts shall have the same meaning unless the context otherwise requires.

 

2.                                     APPOINTMENT

 

The Company shall employ the Executive and the Executive agrees to serve the Company as Chief Executive Officer of the Company on and subject to the terms and conditions in this Agreement.

 

3.                                      DURATION AND WARRANTIES

 

3.1                               The Employment shall commence on, and is conditional upon, the admission of the Company’s securities to dealing on Nasdaq (the “Commencement Date”).  Subject to clause 17, the Employment shall continue until terminated by either party giving to the other not less than 6 months’ notice in writing. The Executive’s previous employment with Immunocore Limited and Adaptimmune Limited counts as part of his period of continuous employment and therefore the Employment shall be deemed to have begun on 1 October 2008.

 

3.2                               The Company shall be entitled at its sole and absolute discretion lawfully to terminate the Executive’s employment at any time and with immediate effect by written notification to the Executive and to pay within one month following the date of such termination a payment in lieu of notice (“PILON”) to the Executive.  For the avoidance of doubt, the termination of the Executive’s employment shall be effective on such written notification and shall not be deferred until the PILON is paid.  The total PILON will be equal to the basic salary due under clause 6.1. which the Executive would have been entitled to receive under this Agreement during the notice period referred to at clause 3.1 (or, if notice has already been

 

4

 

given, during the remainder of such notice period) subject to statutory deductions.

 

3.3                               Notwithstanding clause 3.2, the Executive shall not be entitled to any PILON if the Company would otherwise have been entitled to terminate the Executive’s employment without notice in accordance with clause 17.1  In that case the Company shall also be entitled to recover from the Executive any PILON already made.

 

3.4                               The Executive represents and warrants that, in entering into and performing his duties under this Agreement:

 

3.4.1                                             he is not subject to any restriction that might hinder or prevent him from performing any of his duties in full;

 

3.4.2                                             he will not be in breach of any other contract of employment or any other obligation to any third party; and

 

3.4.3                                             save for his non-executive engagements with Immunocore Limited and GW Pharmaceuticals Plc, this Employment is and shall remain his sole and exclusive employment.

 

3.5                               The Executive further warrants that he has no unspent criminal convictions and has never been disqualified from being a company director.

 

4.                                      SCOPE OF THE EMPLOYMENT

 

4.1                               Save as specifically agreed with the Board (and, in particular, in relation to the Executive’s engagements with Immunocore Limited and GW Pharmaceuticals Plc), the Executive shall:

 

4.1.1                                             devote the whole of his time, attention, ability and skills to his duties;

 

4.1.2                                             faithfully and diligently perform such duties and exercise such powers consistent with his position as may from time to time be assigned to or vested in him by the Board;

 

4.1.3                                             obey all reasonable and lawful directions of the Board;

 

4.1.4                                             comply with all the Company’s articles of association, rules,  regulations, policies and procedures and all provisions of the shareholders agreement (if applicable) from time to time in force;

 

4.1.5                                             comply with the rules of any securities or investment exchange or regulatory or governmental body to which the Company is subject from time to time (including the US Securities and Exchange Commission, Nasdaq and the City Code on Takeovers and Mergers);

 

4.1.6                                             promptly give the Company such information as the Company may require to enable it to comply with its legal obligations, or the requirements of Nasdaq or any other applicable stock exchange;

 

4.1.7                                             comply, and will procure, so far as he is able, that his spouse or civil partner and dependent children (if any), or any trust in which he, his spouse or civil partner or dependent children may be concerned or interested in as trustee or beneficiary, will comply with any code of

 

5

 

conduct relating to securities transactions by directors and specified employees applicable in the Company or any Group Company;

 

4.1.8                                             comply with the general duties of directors set out in sections 171-177 of the Companies Act 2006, as well as any other applicable common law or statutory duties owed by directors to their company;

 

4.1.9                                             exercise his duties in compliance with the requirements of the Bribery Act 2010 and use all reasonable endeavours to assist the Company in preventing bribery from being conducted on its behalf in contravention of that Act.

 

4.1.10                                      at all times act in the best interests of the Company and use his best endeavours to promote and protect the interests of the Company, any of its Group Companies and their employees;

 

4.1.11                                      keep the Board at all times promptly and fully informed (in writing if so requested) of his conduct of the business of the Company and any Group Company and provide such explanations in connection with such conduct as the Board may from time to time require; and

 

4.1.12                                      act as a model for all other employees of the Group.

 

4.2                              Subject to clause 4.3 the Company reserves the right to assign the Executive duties of a different nature on a permanent or temporary basis either in addition to or instead of those referred to in clause 4.1 above, it being understood that he will not be assigned duties which he cannot reasonably perform or which are inconsistent with his position and status.

 

4.3                               During any period of notice of termination (whether given by the Company or the Executive), the Company shall be at liberty to assign the Executive such other duties consistent with his status, role and experience as the Company shall determine in its absolute discretion.

 

4.4                               The Executive shall not, without the prior consent of the Board:-

 

4.4.1                                             on behalf of the Company, incur any capital expenditure in excess of such sum as may be authorised from time to time; and

 

4.4.2                                             on behalf of the Company, enter into any commitment, contract or arrangement otherwise than in the normal course of business or outside the scope of his normal duties, or of an unusual, onerous or long term nature.

 

For the avoidance of doubt, nothing in this clause prevents the Executive acting within any limits of authority or budgets agreed by the Board from time to time.

 

4.5                               The Executive shall if and so long as the Company requires without further remuneration:

 

4.5.1                                             carry out his duties as instructed by the Company on behalf of any Group Company; and

 

4.5.2                                             act as a director, officer or consultant of the Company and/or any Group Company.

 

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4.6                               The Executive confirms that he has disclosed to the Company all circumstances in respect of which there is, or there might be, a conflict or possible conflict of interest between the Company or any Group Company and the Executive and he agrees to disclose fully to the Company any such circumstances that might arise during the Employment. For the avoidance of doubt, this includes but is not limited to, disclosing to the Company any activity by a third party or the Executive himself which might reasonably be expected to harm the Company or its business.

 

4.7                               The Executive shall disclose to the Chairman any direct or indirect approach or solicitation by any Competitor or Potential Competitor intended to encourage him to terminate his employment.

 

5.                                      HOURS AND PLACE OF WORK

 

5.1                               The Executive shall be required to work such hours as are necessary for the proper performance of his duties.

 

5.2                               The Executive agrees that in his capacity as Chief Executive Officer he may choose or determine the duration of his working time and that the working time limits set out in Part II of the Regulations do not apply to the Employment.

 

5.3                               The Executive’s principal place of work will be in the Company’s offices at Milton Park, Abingdon, or any such place within 20 miles of Oxford as the Company shall from time to time direct. The Executive will be given reasonable notice of any change in his place of work.

 

5.4                               The Executive may be required to travel throughout the United Kingdom and overseas in the performance of his duties.

 

6.                                      REMUNERATION

 

6.1                               The Company shall pay to the Executive a basic salary at the rate of £300,000 per annum, payable by equal monthly instalments in arrears, by credit transfer to a bank account nominated by the Executive.

 

6.2                               The Executive’s salary will be reviewed annually by the Board in its absolute discretion in December of each year. Any increase in salary will take effect from 1 January each year.

 

6.3                               Subject always to the rules of the Company Share Option Scheme from time to time in force (the “Share Scheme”) and to the Executive’s eligibility to participate in the Share Scheme, the Executive may at the absolute discretion of the Company be entitled to share options under the Share Scheme. Where the Employment is terminated for whatever reason and whether or not in breach of contract he shall not be entitled, and by applying for an option the Executive shall be deemed irrevocably to have waived any entitlement, by way of compensation for loss of office or otherwise to any sum or other benefits to compensate him for the loss of any rights under the Share Scheme.

 

7.                                      PENSION AND OTHER BENEFITS

 

7.1                               The Company will comply with the employer pension duties in respect of the Executive in accordance with Part 1 of the Pensions Act 2008. The Executive will be entitled to become a member of the Company’s or any Group Company’s Group Personal Pension Scheme (as directed by the Company), subject always to the rules of the scheme from time to time.

 

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7.2                               It is recognised that the benefits payable under the Group Personal Pension Scheme may be varied or, the Group Personal Pension Scheme may be terminated or substituted by another pension scheme at anytime.

 

7.3                               The Group Personal Pension Scheme is not a contracted-out scheme for the purpose of the Pensions Schemes Act 1993.

 

7.4                               The Executive shall be eligible to participate, as directed by the Company, in the private health care scheme and permanent health insurance schemes which the Company or any Group Company may maintain for the benefit of its senior executives (the “Schemes”) subject to the rules of the Schemes and the terms of any related policy of insurance from time to time in force. This is for information only and should not be regarded as any guarantee of benefits which may be paid under the Scheme.

 

7.5                               The Executive’s participation in either or both of the Schemes does not affect the ability of any Group Company, at its absolute discretion, to change the Schemes’ providers, to amend the terms of the Schemes (including but not limited to the level of benefits), to terminate the Schemes without replacement, to substitute another scheme for either of the Schemes and to remove the Executive from membership of either or both Schemes.

 

7.6                               The Company shall be under no obligation to make any payment under either Scheme to the Executive unless and until it has received the relevant payment from the Scheme’s provider. If any Scheme provider refuses for any reason (whether based on its own interpretation of the terms of the insurance policy or otherwise) to provide any benefits to the Executive, the Company shall not be liable to provide replacement benefits itself or any compensation in lieu and shall be under no obligation to pursue a claim for unpaid benefits on behalf of the Executive against the Schemes’ provider.

 

7.7                               The Company reserves the right to terminate the Executive’s employment, where it has good cause to do so (including but not limited to where the Executive is redundant or has committed misconduct), notwithstanding that the Executive is receiving benefits under either Scheme and that such termination may result in those benefits being discontinued. The Executive agrees that he shall have no claim against the Company for damages in respect of the loss of benefits under either Scheme in such circumstances.

 

7.8                               In the event that the Executive is absent by reason of ill-health he will continue to co-operate with and act in good faith towards the Company including but not limited to staying in regular contact with the Company and providing it with such information about their health, prognosis and progress as the Company may require.

 

7.9                               In accordance with the current rules of each Scheme, participation in either Scheme is subject to the condition that the Executive has notified the Company on or before the commencement of the Employment of any pre-existing medical conditions that he may have.

 

7.10                        If the Executive is receiving benefits under either Scheme:

 

7.10.1                                      he shall resign as a director of the Company if so requested by the Company; and

 

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7.10.2                                      the Company shall be entitled to appoint a replacement to perform all or any of the Executive’s duties on either a temporary or permanent basis.

 

8.                                      BONUS

 

8.1                               The Company may in its absolute discretion pay the Executive a bonus of such amount, at such intervals and subject to such conditions as the Company may in its absolute discretion determine from time to time.

 

8.2                               Any bonus payment to the Executive shall be purely discretionary and shall not form part of the Executive’s contractual remuneration under this Agreement. If the Company makes a bonus payment to the Executive in respect of a particular financial year of the Company, it shall not be obliged to make subsequent bonus payments in respect of subsequent financial years of the Company.

 

8.3                               Notwithstanding clause 8.2, the Executive shall in any event have no right to a bonus or a time-apportioned bonus if:

 

8.3.1                                             he has not been employed throughout the whole of the relevant financial year of the Company or any Group Company; or

 

8.3.2                                             his employment terminates for any reason or he is under notice of termination (whether given by the Executive or the Company) at or prior to the date when a bonus might otherwise have been payable.

 

9.                                      EXPENSES

 

The Company shall reimburse the Executive in respect of all expenses reasonably incurred by him in the proper performance of his duties, subject to the Executive providing such receipts or other evidence that the Company may require.

 

10.                               HOLIDAY

 

10.1                        The Executive shall be entitled to receive his normal remuneration for all bank and public holidays normally observed in England and a further 30 working days holiday in each holiday year, being the period from 1 January to 31 December. The Executive may only take his holiday at such times as are notified to the Chairman.

 

10.2                        In the holiday year in which the Employment commences, the Executive will be informed of his holiday entitlement for that year by the Company. His holiday entitlement with the Company for 2015 will, when combined with any holiday taken by the Executive in 2015 whilst employed by Adaptimmune Limited, amount to 30 days plus all bank and public holidays normally observed in England.

 

10.3                        In the holiday year in which the Employment terminates, the Executive’s entitlement to holiday shall accrue on a pro-rata basis for each complete month of service during the relevant year.

 

10.4                        If, on the termination of the Employment, the Executive has exceeded his accrued holiday entitlement, the excess may be deducted from any sums due to him. If the Executive has any unused holiday entitlement, the Board may either require the Executive to take such unused holiday during any notice period or

 

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accept payment in lieu. Any payment in lieu shall only be made in respect of holiday accrued in accordance with clause 10.2 above during the Executive’s final holiday year and the Executive shall be deemed to have taken their statutory holiday first, during that year.

 

10.5                        The Executive may carry forward to the following calendar year up to 5 days’ unused holiday entitlement but he must take any holiday which is carried over before the end of March in that year.

 

11.                               INCAPACITY

 

11.1                        Subject to the Executive’s compliance with the Company’s rules from time to time in force regarding sickness notification and doctor’s certificates, and subject to the Company’s right to terminate the Employment for any reason including without limitation incapacity, if the Executive is at any time absent on medical grounds the Company shall pay to the Executive in each calendar year his normal basic salary for a maximum of 13 weeks, followed by a further period of 13 weeks at half his normal basic salary (“Company Sick Pay”).

 

11.2                        The Company reserves the right to require the Executive to undergo a medical examination by a doctor or consultant nominated by it, at any time including at any stage of absence at the Company’s expense, and the Executive agrees that he will undergo any requisite tests and examinations and will fully co-operate with the relevant medical practitioner and shall authorise him or her to disclose to and discuss with the Company the results of any examination and any matters which arise from it.

 

11.3                        Payment of Company Sick Pay to the Executive pursuant to clause 11.1 shall be inclusive of any Statutory Sick Pay and any Social Security Sickness Benefit or other benefits to which the Executive may be entitled, whether or not claimed.

 

11.4                        If the Executive’s absence shall be caused by the actionable negligence of a third party in respect of which damages are recoverable, then all sums paid by the Company shall constitute loans to the Executive, who shall:

 

11.4.1                                      immediately notify the Company of all the relevant circumstances and of any claim, compromise, settlement or judgement made or awarded;

 

11.4.2                                      if the Board so requires, refund to the Company such sum as the Board may determine, not exceeding the lesser of:

 

(a)                                 the amount of damages recovered by him under such compromise, settlement or judgement; and

 

(b)                                 the sums advanced to him in respect of the period of incapacity.

 

11.5                        Any actual or prospective entitlement to Company Sick Pay or private medical insurance or long term disability benefits shall not limit or prevent the Company from exercising its right to terminate the Employment in accordance with clauses 3.2 or 17 or otherwise and the Company shall not be liable for any loss arising from such termination.

 

11.6                        If the Executive is prevented by incapacity from properly performing his duties under this Agreement for a consecutive period of 30 working days the Board may appoint another person or persons to perform those duties until such time as the Executive is able to resume fully the performance of his duties.

 

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12.                               DEDUCTIONS

 

For the purposes of the ERA, the Executive hereby authorises the Company or any Group Company to deduct from his remuneration any sums due from him to the Company or any Group Company, including, without limitation, any overpayments of salary, overpayments of holiday pay whether in respect of holiday taken in excess of that accrued during the holiday year or otherwise, loans or advances made to him by the Company or any Group Company, any fines incurred by the Executive and paid by the Company or any Group Company, the cost of repairing any damage or loss to the Company’s or any Group Company’s property caused by him and all losses suffered by the Company as a result of any negligence or breach of duty by the Executive.

 

13.                               RESTRICTIONS ON OTHER ACTIVITIES BY THE EXECUTIVE

 

13.1                        During the Employment the Executive shall not, without the prior consent of the Board, directly or indirectly be employed, engaged, concerned or interested in any other business or undertaking or be involved in any activity which the Board reasonably considers may be, or become, harmful to the interests of the Company or any Group Company or which might reasonably be considered to interfere with the performance of the Executive’s duties under this Agreement provided that this clause 13.1 shall not prohibit the engagements referred to in clause 3.4.3 and the holding of shares or other securities in Immunocore Limited, and/or any subsidiary or holding company of Immunocore Limited, and the holding (directly or through nominees) of investments listed on any recognised stock exchange as long as not more than 5 per cent of the issued shares or other securities of any class of any one company shall be so held

 

13.2                        Subject to any regulations issued by the Company, the Executive shall not be entitled to receive or obtain directly or indirectly any discount, rebate or commission in respect of any sale or purchase of goods effected or other business transacted (whether or not by him by or on behalf of the Company) and if he (or any firm or company in which he is interested) shall obtain any such discount, rebate or commission, he shall account to the Company for the amount received by him (or a due proportion of the amount received by such company or firm having regard to the extent of his interest in it).

 

14.                               CONFIDENTIALITY

 

14.1                        The Executive shall neither during the Employment (except in the proper performance of his duties) nor at any time (without limit) after the termination of the Employment:

 

14.1.1                                      divulge or communicate to any person, company, business entity or other organisation;

 

14.1.2                                      use for his own purposes or for any purposes other than those of the Company or any Group Company; or

 

14.1.3                                      through any failure to exercise due care and diligence, permit or cause any unauthorised disclosure of;

 

any Confidential Information, provided that these restrictions shall cease to apply to any information which shall become available to the public generally otherwise than through an unauthorised disclosure by the Executive or any other person.

 

14.2                        For the purposes of this Agreement “Confidential Information” shall mean, in relation to the Company or any Group Company:

 

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14.2.1                                      trade secrets;

 

14.2.2                                      information relating to research activities, inventions, discoveries, secret processes, designs, know how, technical specifications and processes, formulae, intellectual property rights, computer software, product lines and any other technical information relating to the creation, production or supply of any past, present or future product or service,

 

14.2.3                                      any inventions or improvements which the Executive may make or discover during the Employment;

 

14.2.4                                      any information relating to the business or prospective business,

 

14.2.5                                      details of suppliers, their services and their terms of business,

 

14.2.6                                      details of customers and their requirements, the prices charged to them and their terms of business,

 

14.2.7                                      pitching material, marketing plans and sales forecasts of any past, present or future products or services,

 

14.2.8                                      information relating to the business, corporate plans, management systems, accounts, finances and other financial information, results and forecasts (save to the extent that these are included in published audited accounts),

 

14.2.9                                      proposals relating to the acquisition or disposal of a company or business or any part thereof;

 

14.2.10                               proposals for expansion or contraction of activities, or any other proposals relating to the future;

 

14.2.11                               details of employees and officers and of the remuneration and other benefits paid to them,

 

14.2.12                               information given in confidence by clients, customers suppliers or any other person;

 

14.2.13                               any other information which the Executive is notified is confidential; and

 

14.2.14                               any other information which the Company (or relevant Group Company) could reasonably be expected to regard as confidential, whether or not such information is reduced to a tangible form or marked in writing as “confidential”, including but not limited to, information which is commercially sensitive, which comes into the Executive’s possession by virtue of the Employment and which is not in the public domain and all information which has been or may be derived or obtained from any such information.

 

14.3                        The Executive acknowledges that all notes, memoranda, records, lists of customers and suppliers and employees, correspondence, documents, computer and other discs and tapes, data listings, databases, codes, designs and drawings and any other documents and material whatsoever (whether made or created by the Executive or otherwise) relating to the business of the Company and any 

 

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Group Company (and any copies of the same) or which is created or stored on the Company’s or Executive’s equipment and/or systems:

 

14.3.1                                      shall be and remain the property of the Company or the relevant Group Company; and

 

14.3.2                                      shall be handed over by the Executive to the Company or the relevant Group Company on demand and in any event on the termination of the Employment and the Executive shall certify that all such property has been so handed over and that no copies or extracts (whether physical or electronic) have been retained (whether directly or indirectly).

 

14.4                        Clause 14.1 shall only bind the Employee to the extent allowed by law and nothing in this clause shall prevent the Employee from making a statutory disclosure.

 

15.                               DATA PROTECTION

 

The Executive consents to the Company or any Group Company holding and processing, both electronically and manually, the data it collects in relation to the Executive in the course of the Employment including, without limitation the Executive’s employment application, references, bank details, appraisals, holiday and sickness records, salary reviews and remuneration details and other records which may include sensitive personal data relating to his health for the purposes of the Company’s or any Group Company’s administration and management of its employees and its business and for compliance with applicable procedures, laws and regulations and to the transfer, storage and processing by the Company or any Group Company of such data in the Company’s or any Group Company’s offices outside the European Economic Area.

 

16.                              INVENTIONS AND INTELLECTUAL PROPERTY RIGHTS

 

16.1                        For the purposes of this clause 16 the following definitions apply:

 

16.1.1                                      “Employment Inventions” means any Invention which is made wholly or partially by the Executive at any time during the course of his duties to the Company (whether or not during working hours or using Company premises or resources, and whether or not recorded in material form).

 

16.1.2                                      “Employment IPRs” means Intellectual Property Rights created by the Executive in the course of his employment with the Company (whether or not during working hours or using Company premises or resources).

 

16.1.3                                      “Invention” means any invention, idea, discovery, development, improvement or innovation, whether or not patentable or capable of registration, and whether or not recorded in any medium.

 

16.2                        The Executive acknowledges that all Employment IPRs, Employment Inventions and all materials embodying them shall belong to the Company to the fullest extent permitted by law and hereby assigns, (and to the extent not capable of immediate or prospective assignment, agrees to assign) all such Employment IPRs and Employment Inventions to the Company.

 

16.3                        The Executive acknowledges that, because of the nature of his duties and the particular responsibilities arising from the nature of his duties, he has, and shall 

 

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have at all times while he is employed by the Company, a special obligation to further the interests of the Company.

 

16.4                        To the extent that title in any Employment IPRs or Employment Inventions do not belong the Company by virtue of clause 16.2, the Executive agrees, immediately upon creation of such rights and inventions, to offer to the Company in writing a right of first refusal to acquire them on arm’s length terms to be agreed between the parties. If the parties cannot agree on such terms within 30 days of the Company receiving the offer, the Company shall refer the dispute to a mutually acceptable independent expert (or, if agreement is not reached within five Business Days of either party giving notice to the other that it wishes to refer a matter to an independent expert, such independent expert as may be nominated by an appropriate authority, which the parties shall seek in good faith to agree) (the “Expert”). In relation to matters referred to the Expert:

 

16.4.1                                      the parties are entitled to make submissions to the Expert and will provide (or procure that others provide) the Expert with all such assistance and documents as the Expert may reasonably require for the purpose of reaching a decision. Each party shall with reasonable promptness supply each other with all information and give each other access to all documentation and personnel as the other party reasonably requires to make a submission under this clause;

 

16.4.2                                      the parties agree that the Expert may in its reasonable discretion determine such other procedures to assist with the conduct of the determination as it considers appropriate;

 

16.4.3                                      the Expert shall act as an expert and not as an arbitrator.  The Expert’s decision shall be final and binding on the parties in the absence of fraud or manifest error; and

 

16.4.4                                      the Expert’s fees and any costs properly incurred by him in arriving at his determination (including any fees and costs of any advisers appointed by the Independent Expert) shall be borne by the parties in equal shares or in such proportions as the Independent Expert shall direct.

 

The Executive agrees that the provisions of this clause 16 shall apply to all Employment IPRs and Employment Inventions offered to the Company under this clause 16.4 until such time as the Company has agreed in writing that the Executive may offer them for sale to a third party.

 

16.5                        The Executive agrees:

 

16.5.1                                      to give the Company full written details of all Employment Inventions and Employment IPRs which relate to or are capable of being used in the business of the Company or any Group Company promptly on their creation;

 

16.5.2                                      at the Company’s request and in any event on the termination of his employment to give to the Company all originals and copies of correspondence, documents, papers and records on all media which record or relate to any of the Employment IPRs;

 

16.5.3                                      not to attempt to register any Employment IPR nor patent any Employment Invention unless requested to do so by the Company; and

 

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16.5.4                                      to keep confidential each Employment Invention and Employment IPR unless the Company has consented in writing to its disclosure by the Executive.

 

16.6                        The Executive waives all his present and future moral rights which arise under sections 77 and 80 of the Copyright Designs and Patents Act 1988, and all similar rights in other jurisdictions relating to any copyright work which forms part of the Employment IPRs, and agrees not to support, maintain nor permit any claim for infringement of moral rights in such copyright works.

 

16.7                        The Executive acknowledges that, except as provided by law, no further remuneration or compensation other than that provided for in this agreement is or may become due to the Executive in respect of his compliance with this clause 16. This is without prejudice to the Executive’s rights under the Patents Act 1977.

 

16.8                        The Executive undertakes to execute all documents and do all acts both during and after his employment by the Company as may, in the opinion of the Board, be necessary or desirable to vest the Employment IPRs in the Company, to register them in the name of the Company and to protect and maintain the Employment IPRs and the Employment Inventions. Such documents may, at the Company’s request, include waivers of all and any statutory moral rights relating to any copyright works which form part of the Employment IPRs. The Company agrees to reimburse the Executive’s reasonable expenses of complying with this clause 16.8.

 

16.9                        The Executive agrees to give all assistance reasonably requested by the Company to enable it to enforce its Intellectual Property Rights against third parties, to defend claims for infringement of third party Intellectual Property Rights and to apply for registration of Intellectual Property Rights, where appropriate throughout the world, and for the full term of those rights.

 

16.10                 The Executive hereby irrevocably appoints the Chief Financial Officer of the Company (from time to time) to be his attorney to execute and do any such instrument or thing and generally to use his name for the purpose of giving the Company or its nominee the benefit of this clause 16. The Executive acknowledges in favour of a third party that a certificate in writing signed by any Director or the Secretary of the Company that any instrument or act falls within the authority conferred by this clause 16 shall be conclusive evidence that such is the case.

 

17.                               TERMINATION OF EMPLOYMENT

 

17.1                        The Company may terminate the Employment immediately by notice in writing if the Executive shall have:

 

17.1.1                                      committed any serious breach or repeated or continued breach of his obligations under this Agreement; or

 

17.1.2                                      committed any breach of the securities rules as set out at Clause 4.1.5; or

 

17.1.3                                      been guilty of conduct tending to bring him or the Company or any Group Company into disrepute; or

 

17.1.4                                      become bankrupt or had an interim order made against him under the Insolvency Act 1986 or compounded with his creditors generally; or

 

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17.1.5                                      failed to perform his duties to a satisfactory standard; or

 

17.1.6                                      been disqualified from being a director by reason of any order made under the Companies Directors Disqualification Act 1986 or any other enactment; or

 

17.1.7                                      been convicted of an offence under any statutory enactment or regulation (including the criminal offence of insider dealing under the Criminal Justice Act 1993 or any similar conviction in the United States, but excluding a motoring offence for which no custodial sentence is given); or

 

17.1.8                                      during the Employment, committed any material breach of clauses 13, 14 and/or 16.

 

Any delay by the Company in exercising such right of termination shall not constitute a waiver thereof.

 

17.2                        The Company reserves the right to suspend the Executive on full pay for so long as it may think fit in order to conduct any disciplinary investigation into any alleged acts or omissions by the Executive.

 

18.                               GARDEN LEAVE

 

18.1                        During any period of notice of termination (whether given by the Company or the Executive), the Company shall be under no obligation to assign any duties to the Executive and shall be entitled to exclude him from its premises, and require the Executive not to contact any customers, suppliers or employees provided that this shall not affect the Executive’s entitlement to receive his normal salary and contractual benefits.  During any such period of exclusion the Executive will continue to be bound by all the provisions of this Agreement and shall at all times conduct himself with good faith towards the Company.

 

19.                               DIRECTORSHIP

 

19.1                        If (a) the Company shall remove the Executive from the office of Director of the Company or (b) under the Articles of Association for the time being of the Company the Executive shall be obliged to retire by rotation or otherwise and the Company in general meeting shall fail to re-elect the Executive as a Director of the Company (either such case being referred to in this clause 19.1 as an “Event”), then the Executive’s employment under this Agreement shall automatically terminate with effect from the date of the Event.

 

19.2                        On the termination of the Employment (however arising) or on either the Company or the Executive having served notice of such termination, the Executive shall:

 

19.2.1                                      at the request of the Company resign as a Director of the Company and from all offices held by him in any Group Company and shall transfer without payment to the Company or as the Company may direct any nominee shares provided by it, provided however that such resignation shall be without prejudice to any claims which the Executive may have against the Company or any Group Company arising out of the termination of the Employment; and

 

19.2.2                                      immediately deliver to the Company all materials within the scope of clause 14.3 and all credit cards, motor cars, car keys and other 

 

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property of or relating to the business of the Company or of any Group Company which may be in his possession or under his power or control, and if the Executive should fail to do so the Company is hereby irrevocably authorised to appoint another person to sign any documents and/or do any other things necessary on his behalf in order to give effect to the Executive’s undertaking in this clause 19.2.

 

19.3                        The appointment of the Executive as a director of the Company or any Group Company is not a term of this Agreement and the Company reserves the right to remove the Executive from any such directorship at any time and for any reason. Where the Company exercises this right, this shall not amount to a breach of this Agreement and shall not give rise to a claim for damages or compensation.

 

20.                               POST TERMINATION OBLIGATIONS OF THE EXECUTIVE

 

20.1                        For the purposes of this clause 20 the following definitions apply:

 

20.1.1                                      “Restricted Business” means any business (as defined by the technologies from time to time developed and applied by the Company or any Group Company, such technologies at the date of the Agreement being TCR or T Cell technologies) carried out by the Company or any Group Company or which the Company or and Group Company intends to carry out at the Termination Date, in each case with which the Executive was involved to a material extent during the twelve months immediately preceding the Termination Date;

 

20.1.2                                      “Restricted Customer” means any person, firm, company or other organisation who, at any time during the twelve months immediately preceding the Termination Date was a customer of or in the habit of dealing with the Company or any Group Company and with whom the Executive had personal dealings in the course of his employment or for whom the Executive was responsible on behalf of the Company or any Group Company during that period;

 

20.1.3                                      “Restricted Employee” means any person who, at the Termination Date, was employed as an employee of the Company or Group Company who could materially damage the interests of the Company or any Group Company if he became employed in any competing business and with whom the Executive worked closely or was responsible for in the twelve months immediately preceding the Termination Date;

 

20.1.4                                      “Restriction Date” means the earlier of the Termination Date and the start of any period of Garden Leave in accordance with Clause 18;

 

20.1.5                                      “Termination Date” means the date of termination of the Employment (howsoever caused).

 

20.2                        The Executive acknowledges that by reason of the Employment he will have access to trade secrets, confidential information, business connections and the workforce of the Company and the Group Companies and that in order to protect their legitimate business interests it is reasonable for him to enter into these post termination restrictive covenants and, the Executive agrees that the restrictions contained in this clause 20 (each of which constitutes an entirely separate, severable and independent restriction) are reasonable.

 

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20.3                        Reference in this clause 20.3 to “the Company” shall apply as though there were included reference to any relevant Group Company.  The Executive covenants with the Company for itself and as trustee and agent for each Group Company that he will not without the prior written consent of the Company:

 

20.3.1                                      for twelve months after the Restriction Date solicit or endeavour to entice away from the Company the business or custom of a Restricted Customer with a view to providing goods or services in competition with any Restricted Business;

 

20.3.2                                      for twelve months after the Restriction Date,  provide goods or services to, or otherwise have any business dealings with, any Restricted Customer in the course of any business concern which is in competition with any Restricted Business;

 

20.3.3                                      for twelve months after the Restriction Date in the course of any business concern which is in competition with any Restricted Business offer to employ or engage or otherwise endeavour to entice away from the Company any Restricted Employee;

 

20.3.4                                      for twelve months after the Restriction Date be engaged or concerned in any capacity in any business concern which is in competition with the Restricted Business.

 

20.4                        For the avoidance of doubt, nothing in this clause 20 shall prevent the Executive from:

 

20.4.1                                      holding as an investment by way of shares or other securities not more that 5% of the total issued share capital of any company listed on a recognised stock exchange; or

 

20.4.2                                      being engaged or concerned in any business concern where the Executive’s work or duties relate solely to geographical areas where the business concern is not in competition with the Restricted Business; or

 

20.4.3                                      being engaged or concerned in any business concern where the Executive’s work or duties relate solely to services or activities of a kind with which the Executive was not concerned to a material extent in twelve months before the Termination Date.

 

20.5                        The obligations undertaken by the Executive pursuant to this clause 20 extend to him acting not only on his own account but also on behalf of any other firm, company or other person and shall apply whether he acts directly or indirectly.

 

20.6                        The Executive hereby undertakes with the Company that he will not at any time after the termination of the Employment in the course of carrying on any trade or business, claim, represent or otherwise indicate any present association with the Company or any Group Company or for the purpose of carrying on or retaining any business or custom, claim, represent or otherwise indicate any past association with the Company or any Group Company to its detriment.

 

20.7                        While the restrictions in this clause 20 are considered by the parties to be reasonable in all the circumstances, it is agreed that if any such restrictions, by themselves, or taken together, shall be found to go beyond what is reasonable in all the circumstances for the protection of the legitimate interests of the Company or any Group Company but would be considered reasonable if part or parts of the

 

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wording of such restrictions were deleted, the relevant restriction or restrictions shall apply with such deletion(s) as may be necessary to make it or them valid and effective.

 

20.8                        If the Executive accepts alternative employment or engagement with any third party during the period of any of the restrictions in this clause 20 he will provide the third party with full details of these restrictions.

 

21.                               AMALGAMATION AND RECONSTRUCTION

 

21.1                        If the Company is wound up for the purposes of reconstruction or amalgamation the Executive shall not as a result or by reason of any termination of the Employment or the redefinition of his duties within the Company or any Group Company arising or resulting from any reorganisation of the Group have any claim against the Company for damages for termination of the Employment or otherwise so long as he shall be offered employment with any concern or undertaking resulting from such reconstruction, reorganisation or amalgamation on terms and conditions no less favourable to the Executive than the terms contained in this Agreement.

 

21.2                        If the Executive shall at any time have been offered but shall have unreasonably refused or failed to agree to the transfer of this Agreement by way of novation to a company which has acquired or agreed to acquire the whole or substantially the whole of the undertaking and assets or not less than 50 per cent of the equity share capital of the Company the Company may terminate the Employment by such notice as is required by s.86 of the ERA within one month of such offer being refused by the Executive.

 

22.                               DISCIPLINARY AND GRIEVANCE PROCEDURES

 

22.1                        The Company’s Grievance and Disciplinary Procedures, or alternatively in the absence of such procedures, Adaptimmune Limited’s Grievance and Disciplinary Procedures will apply to the Executive. Such procedures are non-contractual and the Company reserves the right to leave out any stage of the procedures and failure to follow a procedure (or part of it) shall not constitute a breach of this Agreement.

 

23.                               NOTICES

 

23.1                        Any notice or other document to be given under this Agreement shall be in writing and may be given personally to the Executive or to the Secretary of the Company (as the case may be) or may be sent by first class post or by facsimile transmission to, in the case of the Company, its registered office for the time being and in the case of the Executive either to his address shown on the face of this Agreement or to his last known place of residence.

 

23.2                        Any such notice shall (unless the contrary is proved) be deemed served when in the ordinary course of the means of transmission it would first be received by the addressee in normal business hours. In proving such service it shall be sufficient to prove, where appropriate, that the notice was addressed properly and posted or that the facsimile transmission was dispatched.

 

24.                               ENTIRE AGREEMENT AND FORMER SERVICE AGREEMENT(S)

 

This Agreement constitutes the entire agreement between the parties and shall be in substitution for any previous letters of appointment, agreements or arrangements, (whether written, oral or implied), relating to the employment of the Executive, which

 

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shall be deemed to have been terminated by mutual consent (including, for the avoidance of doubt, the Executive’s service agreement with Adaptimmune Limited, dated 25 March 2014). The Executive acknowledges that as at the date of this Agreement he has no outstanding claim of any kind against the Company and/or any Group Company and in entering into this Agreement he has not relied on any Pre-Contractual Statement.

 

25.                               GOVERNING LAW AND JURISDICTION

 

This Agreement shall be governed by and interpreted in accordance with English law and the parties irrevocably agree to the exclusive jurisdiction of the English Courts.

 

26.                               THIRD PARTY RIGHTS

 

26.1                        This Agreement is entered into by the Company for itself and in trust for each Group Company with the intention that each company will be entitled to enforce the terms of this Agreement directly against the Executive.

 

26.2                        The Contracts (Rights of Third Parties) Act 1999 will not create any rights in favour of the Executive in relation to the benefits granted now or at any time in connection with his employment.

 

27.                               GENERAL

 

27.1                        There are no collective agreements affecting the terms and conditions of the Executive’s employment.

 

27.2                        This Agreement constitutes the written statement of the terms of Employment of the Executive provided in compliance with part 1 of the ERA.

 

27.3                        The Executive agrees to consider diligently and promptly any reasonable changes proposed by the Company to this Agreement and, in particular, will not withhold consent to any changes required as a result of amendments to legislation or current established working practices.

 

27.4                        The expiration or termination of this Agreement, however arising, shall not operate to affect such of the provisions of this Agreement as are expressed to operate or have effect after that time and shall be without prejudice to any accrued rights or remedies of the parties.

 

27.5                        The various provisions and sub-provisions of this Agreement are severable and if any provision or any identifiable part of any provision is held to be unenforceable by any court of competent jurisdiction then such unenforceability shall not affect the enforceability of the remaining provisions or identifiable parts of them.

 

20

 

	
Signed   as a deed by
    	
 
    	
/s/ James Julian Noble
    	
(signature)
    
	
JAMES   JULIAN NOBLE
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
James Julian Noble
    	
 (print name)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
in the presence of a Witness 
    	
 
    	
/s/   M. Henry
    
	
 
    	
 
    	
Signature of Witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Margaret Henry
    	
 
    
	
 
    	
 
    	
Name of Witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
64   THE PHELPS, KIDLINGTON
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
OXON OXS ISY
    	
 
    
	
 
    	
 
    	
Address of Witness 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed   as a deed by
    	
 
    	
/s/ Ian Michael Laing
    	
 (signature)
    
	
ADAPTIMMUNE   THERAPEUTICS PLC
    	
 
    	
 
    	
 
    
	
acting   by director
    	
 
    	
Ian Michael Laing
    	
 (print name)
    
	
 
    	
 
    	
Director
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
in the presence of a Witness
    	
 
    	
/s/ Paul Newey
    	
 
    
	
 
    	
 
    	
Signature of Witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Paul Newey
    	
 
    
	
 
    	
 
    	
Name of Witness
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Oakleigh House, Reading Road
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Harwell Village 0X11 OLU
    	
 
    
	
 
    	
 
    	
Address of Witness

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