Document:

Exhibit 10.8

 

		 Dated151 November2017 4D PHARMA PLC RICHARD AVISON Employment Contract 

 

     

     

    

		Contents ClausePage Interpretation1 Term of Appointment2 Employee Warranties3 Duties3 Place of Work4 Hours of Work4 Salary5 8Expenses5 9Bon5 Holidays5 lncapacity6 Confidential Information6 Intellectual Property7 Payment in Lieu of Notice7 Termination Without Notice8 Garden Leave9 Obligations on Termination9 Post-termination Restrictions10 Disciplinary and Grievance Procedures11 Pensions12 Data Protection12 Collective Agreements12 Reconstruction and Amalgamation12 Notices13 Entire Agreement13 Variation14 Counterparts14 Third Party Rights14 Governing Law14 Jurisdiction14 

 

     

     

    

		This Agreement is made the 1st November 2017 Parties 4D PHARMA PLC incorporated and registered in England and Wales with company number 08840579 whose registered office is at 9 Bond Court, Leeds LS1 2JZ (the Company) RICHARD AVISON of 7 Huyton Avenue, St. Helens, Merseyside, WA10 6LU (the Employee). Operative Provisions 1Interpretation 1.1The definitions and rules of interpretation in this clause 1 apply in this Agreement. Appointment means the employment of the Employee by the Company on the terms of this Agreement. Associated Employer has the meaning given to it in the Employment Rights Act 1996. Board means the board of directors of the Company (including any committee of the board duly appointed by it). Capacity means as agent, consultant, director, employee, owner, partner, shareholder or in any other capacity. Commencement Date means 1st November 2017. Company Polices means such policies and procedures that the Company may in in force from time to time and to include the Employee Handbook. Confidential Information means information (whether or not recorded in documentary form, or stored on any magnetic or optical disk or memory) relating to the business, products, affairs and finances of any Group Company for the time being confidential to any Group Company and trade secrets including, without limitation, technical data and know-how relating to the business of any Group Company or any of their business contacts. Employee Handbook means the Company's staff handbook as amended from time to time. Garden Leave means any period during which the Company has exercised its rights under clause 16. Group Company means the Company, its Subsidiaries or Holding Companies from time to time and any Subsidiary of any Holding Company from time to time. Incapacity means any sickness, injury or other medical disorder or condition which prevents the Employee from carrying out his duties. Intellectual Property Rights means patents, rights to Inventions, copyright and related rights, trademarks, 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, 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. 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. Restricted Business means any business engaged to any material extent in the 12 months before Termination in the field of live biotherapeutics (human and/or veterinary) and/or associated diagnostics for human and animal disease. Restricted Person means anyone employed by the Company or any Group Company and who could materially damage the interests of the Company or any Group Company if they were involved in any Capacity in any Restricted Business, and with whom the Employee dealt with in the 12 months before Termination in the course of his employment. Subsidiary and Holding Company means in relation to a company mean "subsidiary" and "holding company" as defined in section 1159 of the Companies Act 2006. Termination means the termination of the employment of the Employee with the Company however caused or arising. The headings in this Agreement are inserted for convenience only and shall not affect its construction. A reference to a particular law is a reference to it as it is in force for the time being taking account of any amendment, extension, or re-enactment and includes any subordinate legislation for the time being in force made under it. Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders. Unless the context otherwise requires, words in the singular include the plural and in the plural include the singular. Term of Appointment The Appointment shall commence on the Commencement Date and shall continue, subject to the remaining terms of this Agreement, until terminated by either party giving the other not less than three months' prior notice in writing. No employment with a previous employer counts towards the Employee's period of continuous employment with the Company. 

 

     

     

    

		The Employee consents to the transfer of his employment under this Agreement to an Associated Employer at any time during the Appointment. Employee Warranties The Employee represents and warrants to the Company that, by entering into this Agreement or performing any of his obligations under it, he will not be in breach of any court order or any express or implied terms of any contract or other obligation binding on him and undertakes to indemnify the Company against any claims, costs, damages, liabilities or expenses which the Company may incur as a result if he is in breach of any such obligations. The Employee warrants that he is entitled to work in the United Kingdom without any additional approvals and will notify the Company immediately if he ceases to be so entitled during the Appointment. Duties The Employee shall serve the Company as Group Finance Officer or such other role as the Company reasonably considers appropriate. During the Appointment the Employee shall: comply with all requirements or regulations of all regulatory authorities relevant to any Group Company and any code of practice issued by the Company (as amended from time to time) relating to dealing in the securities of the Company; comply with the requirements under both legislation and regulation as to the disclosure of inside information; comply with the anti-corruption and bribery policy and related procedures of the Company; unless prevented by Incapacity, devote the whole of his time, attention and abilities during his normal working hours to the business of the Company; faithfully and diligently exercise such powers and perform such duties as may from time to time be assigned to him by the Company together with such person or persons as the Company may appoint to act jointly with them; comply with all reasonable and lawful directions given to him by the Company; promptly make such reports to the Board in connection with the affairs of the Company or Group Company on such matters and at such times as are reasonably required; report his own wrongdoing and any wrongdoing or proposed wrongdoing of any other employee or director of the Company to the Board immediately on becoming aware of it; 

 

     

     

    

		use his best endeavours to promote, protect, develop and extend the business of any Group Company; and consent to the Company monitoring and recording any use that he makes of the Company's electronic communications systems for the purpose of ensuring that the Company's rules are being complied with and for legitimate business purposes. The Employee shall comply with any rules, policies and procedures set out in the Company Policies. The Employee Handbook does not form part of this Agreement and the Company may amend it at any time. To the extent that there is any conflict between the terms of this Agreement and the Employee Handbook, this Agreement shall prevail. All documents, manuals, hardware and software provided for the Employee's use by the Company, and any data or documents (including copies) produced, maintained or stored on the Company's computer systems or other electronic equipment (including mobile phones), remain the property of the Company. The Employee shall disclose to the Board all business interests other than those of the Company and shall not, without the prior written approval of the Board, be directly or indirectly involved in any Capacity with any business concern which is similar to or competitive with any business for the time being carried on by the Company or where such involvement might give rise to a potential or actual conflict of interest or conflict with any of his other obligations under this Agreement. Place of Work The Employee's normal place of work is the Company's premises at Bond Court, Leeds or such other place which the Company may reasonably require for the proper performance and exercise of his duties. The Employee agrees to travel on the Company's or any Group Company's business (both within the United Kingdom or abroad) as may be reasonably required for the proper performance of his duties under the Appointment. During the Appointment the Employee shall not be required to work outside the United Kingdom for any continuous period of more than one month. Hours of Work The Employee's normal working hours shall be 9am to 5.30pm on Mondays to Fridays, with one hour for lunch which should be taken between 12.00 noon and 2.00 pm; and such additional hours as are necessary for the proper performance of his duties. The Employee acknowledges that he shall not receive further remuneration in respect of such additional hours. 

 

     

     

    

		Salary The Employee shall be paid an initial salary of £60,000 per annum with a £5,000 bonus payable on completion of 12 months service and thereafter a salary of £65,000 per annum. The Employee's salary shall accrue from day to day and be payable monthly in arrears on the 28th day of each month in accordance with the Company Policies directly into the Employee's bank or building society. The Employee's salary shall be reviewed annually. The Company is under no obligation to award an increase following a salary review. There will be no review of the salary after notice has been given by either party to terminate the Appointment. The Company may deduct from the salary, or any other sums owed to the Employee, any money owed to the Company or any Group Company by the Employee. Expenses The Company shall reimburse (or procure the reimbursement of) all reasonable expenses wholly, properly and necessarily incurred by the Employee in the course of the Appointment, subject to production of VAT receipts or other appropriate evidence of payment. The Employee shall abide by the Company's policies on expenses as set out in the Employee Handbook from time to time. Any credit card supplied to the Employee by the Company shall be used only for expenses incurred by him in the course of the Appointment. Bonus The Company may in its absolute discretion pay the Employee 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. Any bonus payment to the Employee shall be purely discretionary and shall not form part of the contractual remuneration of the Employee under this Agreement. If the Company makes a bonus payment to the Employee, it shall not be obliged to make subsequent bonus payments. Any bonus payment shall not be pensionable. Holidays The Employee shall be entitled to 25 days' paid holiday in each holiday year together with public holidays as laid out in the Employee Handbook and determined by the Company from time to time. The Company's holiday year runs between 1st January and 31st December. If the Appointment commences or terminates part way through a holiday year, the Employee's entitlement during that holiday year shall be calculated on a pro-rata basis. 

 

     

     

    

		Holiday shall be taken at such time or times as shall be approved in advance by the Employee's line manager. The Employee shall not except as provided for in the Employee Handbook, without the consent of his line manager carry forward any accrued but untaken holiday entitlement to a subsequent holiday year. The Employee shall have no entitlement to any payment in lieu of accrued but untaken holiday except on Termination. The amount of such payment in lieu shall be 1/260th of the Employee's salary for each untaken day of the entitlement under clause 10.1 for the holiday year in which Termination takes place and any untaken days carried forward from the preceding holiday year. If on Termination the Employee has taken in excess of his accrued holiday entitlement, the Company shall be entitled to recover from the Employee by way of deduction from any payments due to the Employee or otherwise one day's pay calculated at 1/260th of the Employee's for each excess day. If either party has served notice to terminate the Appointment, the Company may require the Employee to take any accrued but unused holiday entitlement during the notice period. Any accrued but unused holiday entitlement shall be deemed to be taken during any period of Garden Leave under clause 16. Incapacity Subject to the Employee's compliance with this Agreement and the Company's sickness absence procedures, the Employee shall be paid any statutory sick pay due in accordance with applicable legislation in force at the time of absence. The Employee agrees to consent to medical examinations (at the Company's expense) by a doctor nominated by the Company should the Company so require. The Employee agrees that any report produced in connection with any such examination may be disclosed to the Company and the Company may discuss the contents of the report with the relevant doctor. Confidential Information The Employee acknowledges that in the course of the Appointment he will have access to Confidential Information. The Employee has therefore agreed to accept the restrictions in this clause 12. The Employee shall not (except in the proper course of his duties), either during the Appointment or at any time after Termination, use or disclose to any person, company or other organisation whatsoever (and shall use his best endeavours to prevent the publication or disclosure of) any Confidential Information. This shall not apply to: any use or disclosure authorised by the Board or required by law or by the requirements or regulations of any applicable regulatory authority; or any information which is already in, or comes into, the public domain other than through the Employee's unauthorised disclosure; or 

 

     

     

    

		any protected disclosure within the meaning of section 43A of the Employment Rights Act 1996. Intellectual Property The Employee shall give the Company full written details of all Inventions and of all works embodying Intellectual Property Rights made wholly or partially by him at any time during the course of the Appointment which relate to, or are capable of being used in, the business of any Group Company. The Employee acknowledges that all Intellectual Property Rights subsisting (or which may in the future subsist) in all such Inventions and works shall automatically, on creation, vest in the Company absolutely. To the extent that they do not vest automatically, the Employee holds them on trust for the Company. The Employee agrees promptly to execute all documents and do all acts as may, in the opinion of the Company, be necessary to give effect to this clause 13.1. The Employee irrevocably waives all moral rights under the Copyright, Designs and Patents Act 1988 (and all similar rights in other jurisdictions) which he has or will have in any existing or future works referred to in clause 13.1. The Employee irrevocably appoints the Company 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 13. The Employee 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 13 shall be conclusive evidence that such is the case. Payment in Lieu of Notice Notwithstanding clause 2, the Company may, in its sole and absolute discretion, terminate the Appointment at any time and with immediate effect by notifying the Employee that the Company is exercising its right under this clause and that it will make within 28 days a payment in lieu of notice (Payment in Lieu) equal to the basic salary (as at the date of Termination) which the Employee would have been entitled to receive under this Agreement during the notice period referred to at clause 2 (or, if notice has already been given, during the remainder of the notice period) less income tax and National Insurance contributions. For the avoidance of doubt, the Payment in Lieu shall not include any element in relation to: any bonus or commission payments that might otherwise have been due during the period for which the Payment in Lieu is made; any payment in respect of benefits which the Employee would have been entitled to receive during the period for which the Payment in Lieu is made; and any payment in respect of any holiday entitlement that would have accrued during the period for which the Payment in Lieu is made. The Company may pay any sums due under clause 14.1 in equal monthly instalments until the date on which the notice period referred to at clause 2 would have expired if notice had 

 

     

     

    

		been given. The Employee shall be obliged to seek alternative income during this period and to notify the Company of any income so received. The instalment payments shall then be reduced by the amount of such income. The Employee shall have no right to receive a Payment in Lieu unless the Company has exercised its discretion in clause 14.1. Notwithstanding clause 14.1 the Employee shall not be entitled to any Payment in Lieu if the Company would otherwise have been entitled to terminate the Appointment without notice in accordance with clause 15. In that case the Company shall also be entitled to recover from the Employee any Payment in Lieu (or instalments thereof) already made. Termination Without Notice The Company may also terminate the Appointment with immediate effect without notice and with no liability to make any further payment to the Employee (other than in respect of amounts accrued due at the date of Termination) if the Employee: 15.1.1 15.1.2 15.1.3 15.1.4 15.1.5 15.1.6 15.1.7 15.1.8 15.1.9 is guilty of any gross misconduct affecting the business of any Group Company; or commits any serious or repeated breach or non-observance of any of the provisions of this Agreement or refuses or neglects to comply with any reasonable and lawful directions of the Company; or is, in the reasonable opinion of the Board, negligent and incompetent in the performance of his duties; or is convicted of any criminal offence (other than an offence under any road traffic legislation in the United Kingdom or elsewhere for which a fine or non-custodial penalty is imposed) or any offence under any regulation or legislation relating to insider dealing; or is declared bankrupt or makes any arrangement with or for the benefit of their creditors or has an administration order made against them; or becomes of unsound mind (which includes lacking capacity under the Mental Capacity Act 2005), or a patient under any statute relating to mental health; or ceases to be eligible to work in the United Kingdom; or is guilty of any fraud or dishonesty or acts in any manner which in the opinion of the Board brings or is likely to bring the Employee or any Group Company into disrepute or is materially adverse to the interests of any Group Company; or is in breach of the Company's anti-corruption and bribery policy and related procedures; or 

 

     

     

    

		15.1.10is guilty of a serious breach of any rules issued by the Company from time to time regarding its electronic communications systems. 15.2The rights of the Company under clause 15.1 are without prejudice to any other rights that it might have at law to terminate the Appointment or to accept any breach of this Agreement by the Employee as having brought the agreement to an end. Any delay by the Company in exercising its rights to terminate shall not constitute a waiver thereof. Garden Leave Following service of notice to terminate the Appointment by either party, or if the Employee purports to terminate the Appointment in breach of contract, the Company may by written notice place the Employee on Garden Leave for the whole or part of the remainder of the Appointment. During any period of Garden Leave: 16.2.1 16.2.2 16.2.3 16.2.4 16.2.5 16.2.6 16.2.7 the Company shall be under no obligation to provide any work to the Employee and may revoke any powers the Employee holds on behalf of the Company or any Group Company; the Company may require the Employee to carry out alternative duties or to only perform such specific duties as are expressly assigned to the Employee, at such location (including the Employee's home) as the Company may decide; the Employee shall continue to receive his basic salary and all contractual benefits in the usual way and subject to the terms of any benefit arrangement; the Employee shall remain an employee of the Company and bound by the terms of this Agreement; the Employee shall ensure that the Chief Executive knows where he will be and how he can be contacted during each working day (except during any periods taken as holiday in the usual way); the Company may exclude the Employee from any premises of the Company or any Group Company; and the Company may require the Employee not to contact or deal with (or attempt to contact or deal with) any officer, employee, consultant, client, customer, supplier, agent, distributor, shareholder, adviser or other business contact of the Company or any Group Company. Obligations on Termination On Termination or, if earlier, at the start of a period of Garden Leave following the service of notice or purported Termination of the Appointment by the Employee, the Employee shall: 

 

     

     

    

		17.1.1 17.1.2 17.1.3 17.1.4 resign immediately without compensation from any office or trusteeship that he holds in or on behalf of any Group Company; subject to clause 17.2 if applicable, immediately deliver to the Company all documents, books, materials, records, correspondence, papers and information (on whatever media and wherever located) relating to the business or affairs of any Group Company or its business contacts, any keys, credit card and any other property of any Group Company, which is in his possession or under his control; irretrievably delete any information relating to the business of any Group Company stored on any magnetic or optical disk or memory and all matter derived from such sources which is in his possession or under his control outside the Company's premises; and provide a signed statement that he has complied fully with his obligations under this clause 17.1 together with such reasonable evidence of compliance as the Company may request. Where the Employee has been placed on Garden Leave he shall not be required by clause 17.1 to return until the end of the Garden Leave period any property provided to him as a contractual benefit for use during the Appointment. On Termination the Employee shall not be entitled to any compensation for the loss of any rights or benefits under any share option, bonus, long-term incentive plan or other profit sharing scheme operated by the Company or any Group Company in which they may participate. Post-termination Restrictions In order to protect the Confidential Information, trade secrets and business connections of the Company and each Group Company to which he has access as a result of the Appointment, the Employee covenants with the Company (for itself and as trustee and agent for each Group Company) that he shall not: 18.1.1 18.1.2 18.1.3 for 12 months after Termination in the course of any Restricted Business, offer to employ or engage or otherwise endeavour to entice away from the Company or any Group Company any Restricted Person; or for 12 months after Termination in the course of any Restricted Business, employ or engage or otherwise facilitate the employment or engagement of any Restricted Person, whether or not such person would be in breach of contract as a result of such employment or engagement; or for 12 months after Termination, be involved in any Capacity with any Restricted Business; or 

 

     

     

    

		18.1.4at any time after Termination, represent himself as connected with the Company or any Group Company in any Capacity, other than as a former employee, or use any registered business names or trading names associated with the Company or any Group Company. None of the restrictions in clause 18.1 shall prevent the Employee from: 18.2.1 18.2.2 holding an investment by way of shares or other securities of not more than 5% of the total issued share capital of any company, whether or not it is listed or dealt in on a recognised stock exchange; or being engaged or concerned in any business concern, provided that the duties of the Employee or work shall relate solely to services or activities of a kind with which the Employee was not concerned with to a material extent in the 12 months before Termination. The restrictions imposed on the Employee by this clause 18 apply to him acting: 18.3.1 18.3.2 directly or indirectly; and on his own behalf or on behalf of, or in conjunction with, any firm, company or person. The periods for which the restrictions in clause 18.1 apply shall be reduced by any period that the Employee spends on Garden Leave immediately before Termination. If the Employee receives an offer to be involved in a business concern in any Capacity during the Appointment, or before the expiry of the last of the covenants in this clause 18, the Employee shall give the person making the offer a copy of this clause 18. The Company and the Employee entered into the restrictions in this clause 18 having been separately legally advised. Each of the restrictions in this clause 18 is intended to be separate and severable. If any of the restrictions shall be held to be void but would be valid if part of their wording were deleted, such restriction shall apply with such deletion as may be necessary to make it valid or effective. Disciplinary and Grievance Procedures The Employee is subject to the Company's disciplinary and grievance procedures, copies of which are in the Employee Handbook. These procedures do not form part of the Employee's contract of employment. If the Employee wants to raise a grievance, he may apply in writing to his line manager in accordance with the Company's grievance procedure. If the Employee wishes to appeal against a disciplinary decision he may apply in writing in accordance with the Company's disciplinary procedure. 

 

     

     

    

		The Company may suspend the Employee from any or all of his duties during any period in which the Company is investigating any disciplinary matter involving the Employee or while any disciplinary procedure against the Employee is outstanding. Pensions The Company will comply with the auto enrolment legislation. The Employee will be invited to join the Company's group personal pension scheme (or such other registered pension scheme as may be set up by the Company to replace such scheme). A contracting-out certificate is not in force in respect of the Appointment. Data Protection The Employee consents to the Company or any Group Company processing data relating to the Employee for legal, personnel, administrative and management purposes and in particular to the processing of any sensitive personal data (as defined in the Data Protection Act 1998) relating to the Employee, including, as appropriate: information about the Employee's physical or mental health or condition in order to monitor sick leave and take decisions as to the Employee's fitness for work; the Employee's racial or ethnic origin or religious or similar information in order to monitor compliance with equal opportunities legislation; information relating to any criminal proceedings in which the Employee has been involved for insurance purposes and in order to comply with legal requirements and obligations to third parties; and any other sensitive data to be processed. Collective Agreements There is no collective agreement which directly affects the Appointment. Reconstruction and Amalgamation If the Appointment is terminated at any time by reason of any reconstruction or amalgamation of the Company or any Group Company, whether by winding up or otherwise, and the Employee is offered employment with any concern or undertaking involved in or resulting from the reconstruction or amalgamation on terms which (considered in their entirety) are no less favourable to any material extent than the terms of this Agreement, the Employee shall have no claim against the Company or any such undertaking arising out of or connected with the termination. 

 

     

     

    

		Notices A notice given to a party under this Agreement shall be in writing in the English language and signed by or on behalf of the party giving it It shall be delivered by hand or sent to the party at the address given in this Agreement or as otherwise notified in writing to the other party. Any such notice shall be deemed to have been received: if delivered by hand, at the time the notice is left at the address or given to the addressee; and in the case of pre-paid first class UK post or other next working day delivery service, at 9.00 am on the second business day after posting or at the time recorded by the delivery service. A notice shall have effect from the earlier of its actual or deemed receipt by the addressee. For the purpose of calculating deemed receipt: all references to time are to local time in the place of deemed receipt; and if deemed receipt would occur on a Saturday or Sunday or a public holiday when banks are not open for business, deemed receipt is at 9.00 am on the next business day. A notice required to be given under this Agreement shall not be validly given if sent by e mail. This clause does not apply to the service of any proceedings or other documents in any legal action. Entire Agreement This Agreement and any document referred to in it constitutes the entire agreement between the parties and supersedes and extinguishes all previous agreements, promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to its subject matter. Each party acknowledges that in entering into this Agreement it does not rely on, and shall have no remedies in respect of, any statement, representation, assurance or warranty (whether made innocently or negligently) that is not set out in this Agreement Each party agrees that its only liability in respect of those representations and warranties that are set out in this Agreement (whether made innocently or negligently) shall be for breach of contract 25-4Nothing in this Agreement shall limit or exclude any liability for fraud. 

 

     

     

    

		Variation No variation or agreed termination of this Agreement shall be effective unless it is in writing and signed by the parties (or their authorised representatives). Counterparts This Agreement may be executed in any number of counterparts, each of which when executed shall constitute a duplicate original, but all the counterparts shall together constitute the one agreement. Third Party Rights Except as provided in this clause, no one other than a party to this Agreement shall have any right to enforce any of its terms. Each Group Company may in its own right enforce the provisions of clauses 12 and 18 subject to, and in accordance with, the Contracts (Rights of Third Parties) Act 1999. The parties to this Agreement may terminate or rescind this Agreement, or agree to any variation, waiver or settlement in connection with it, without the consent of any third party, whether or not it extinguishes or alters any entitlement it may have under its right to enforce any of the provisions of this Agreement. Governing Law This Agreement 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. 30Jurisdiction 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 this Agreement or its subject matter or formation (including non-contractual disputes or claims). This Agreement has been entered into on the date stated at the beginning of this Agreement. 

 

     

     

    

		Executed (but not delivered until the date hereof) as a deed by 40 pharma pie acting by a director inthepr/f: - ········································ ·-······ Signature of witness Name ... /'!.0...../.?.......... Address ...W C?...f.""/.?.8..!?5?<-?....f!:!.?!-:«K ....!.:. -< <!..t&Jc!Cv!7( ........... ······ ....116...?...... JY.!................................... . Executed (but not delivered until the date hereof) as a deed by Ri Avison · ····················'-:······1·······............ Signature of wilrres""s Name .....S7I ......D.\J\":.l.................... Address ..... .....Y.!./..-L...K.. Af:....... c') ,'leJ,J ··················p; ·······i·· _g································· .....<YL................. . Director 

 

     

     

    

		 Fifth Floor 9 Bond Court Leeds LS1 2JZ Tel: 0113 895 0130 Richard Avison 7 Huyton Avenue St Helens Merseyside WA10 6LU www.4dpharmaplc.com 29 August 2019 LETTER OF VARIATION No. 1 Dear Richard, Re: SERVICE AGREEMENT DATED 1st November 2017 (“AGREEMENT”) We are pleased to confirm the following amendments from the 1st January 2019. This letter confirms that the following two (2) sections of the Agreement are amended in accordance with Section 25 of the Agreement as follows: Section 7 : Salary: is amended And replaced with Section 7 : Salary: 7.1The Employee shall be paid an initial salary of £75,000 per annum. All other sub-sections within Section 7 in the Agreement remain unchanged. All other terms and conditions of the Agreement remain in full force and effect. For and on behalf of 4D PHARMA PLC Signed: Date: 29 August 2019_ Name :Tamar Minty Title: Registered Office: 4D pharma plc Third Floor, 9 Bond Court Leeds LS1 2JZ United Kingdom Registered In England and Wales, Company Number 08840579 

 

     

     

    

		 For and on behalf of Richard Avison Signed: Name : Richard Avison Date: 29/08/19 Title: Group Finance DirectorExhibit 10.10

 

4D Pharma

plc

 

2015 Long Term Incentive

Plan

Adopted on

17 September 2015

 

 

 

KPMG LLP

1 The Embankment

Neville Street Leeds,

LS1 4DW

 

     

     

    

 

4D Pharma plc

2015 Long Term Incentive Plan

KPMG LLP

 

Contents

 

	1	Interpretation	3
	 	 	 
	2	Grant of Options	7
	 	 	 
	3	Plan limits	10
	 	 	 
	4	Right to exercise Options	10
	 	 	 
	5	Change of Control and winding-up	13
	 	 	 
	6	Replacement Options	15
	 	 	 
	7	Manner of exercise	16
	 	 	 
	8	Lapse of Options	18
	 	 	 
	9	Variation of share capital	19
	 	 	 
	10	Tax Liability	20
	 	 	 
	11	Administration	21
	 	 	 
	12	Amendment	22
	 	 	 
	13	Miscellaneous	22

 

     

     

    

 

1            Interpretation

 

Definitions

 

		1.1	In these Rules, unless the context otherwise requires, the following words and expressions shall have the following meanings:

	 	 	 
	“Acceptance Notice”	 	a notice from a Participant accepting
    an Option, in such form as the Committee may from time to time determine;
	 	 	 
	“Acquiring Company”	 	an acquiring Company as defined in Rule 6.1;
	 	 	 
	“Adoption Date”	 	the date this Plan is adopted by the Board;
	 	 	 
	“Board”	 	the board of directors for the time being of the Company or the directors present at a duly convened meeting of the directors or a duly appointed committee of the board of directors at which a quorum is present;
	 	 	 
	“Committee	 	the duly appointed remuneration committee of the board of directors of the Company at which a quorum is present save that, for the purposes of the definition of Internal Reconstruction and Rule 6, it means the remuneration committee as constituted immediately before the change of Control of the Company;
	 	 	 
	“Company”	 	4D Pharma plc registered in England and Wales with company number 08840579;
	 	 	 
	“Control”	 	the same meaning as in Section 995 of the Income Tax Act 2007;
	 	 	 
	“Daily Official List”	 	the daily record setting out the prices of all trades in shares and other securities conducted on the London Stock Exchange;
	 	 	 
	“Date of Grant”	 	the date the Grantor grants an Option under this Plan in accordance with Rule 2.6;
	 	 	 
	“Dealing Day”	 	a day on which the London Stock Exchange is open for the transaction of business;
	 	 	 
	“Dealing Restriction”	 	a restriction on dealings in Shares imposed by any law, regulation, order or directive or by the rules applying to any listing of the Company and/or any other code adopted by the Company;
	 	 	 
	“Exercise Date”	 	the date that an Option is exercised as defined in Rules 7.4 and 7.5;
	 	 	 
	“Exercise Notice”	 	an exercise notice given by a Participant in accordance with Rule 7, in such form as the Committee may from time to time determine;

  

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	                “Exercise Price”	 	the price (if any) at which a Share under
    Option may be acquired as determined by the Committee (with the Trustee’s consent where the Option is to be granted by the Trustee) at the Date of Grant of an Option, being at least the nominal value of a Share if the Shares under Option are to be subscribed for;
	 	 	 
	“General Offer”	 	a general offer to acquire:
	 	 	 
		 	(a)  all of the issued ordinary share capital of the Company other than that which is already owned by the person making the offer or any persons acting in concert with the offeror, or
	 	 	 
		 	(b)  all of the shares of the same class as the Shares other than those which are already owned by the person making the offer or any persons acting in concert with the offeror
	 	 	 
		 	which, in either case, is related to and/or conditional on the person making the offer, either alone or together with persons acting in concert with him, acquiring Control of the Company;
	 	 	 
	“Good Leaver”	 	a Participant who is a Good Leaver as defined in Rule 4.9;
	 	 	 
	“Grant Letter”	 	a letter notifying a Participant of the grant of an Option issued in accordance with Rule 2.14, in such form as the Committee may from time to time determine;
	 	 	 
	“Grantor”	 	the Company acting by the Committee or the Trustee, as the context requires;
	 	 	 
	“Grant Period”	 	a period of 42 days commencing on the Dealing Day after the Company announces its results for any period;
	 	 	 
	“Group Company”	 	the Company or a subsidiary of the Company within
    the meaning of Section 1159 of the Companies Act 2006 and “Group” shall be construed accordingly;
	 	 	 
	“Group Employee”	 	an executive director or employee of any Group Company;
	 	 	 
	“Internal Reconstruction”	 	an event which will result in:
	 	 	 
	 	 	(a)   the Company coming under the Control of another company; or
	 	 	 
	 	 	(b)   the business of the Company being carried on by another company
	 	 	 
	 	 	in circumstances where the Committee considers that
the persons who directly or indirectly own the shares in the Company before the event will be substantially the same as the persons
who will directly or indirectly own the shares in that other company after the event;

 

			

 

    	 	4

     

    

 

	“Listed”	 	the Shares are Listed at any time that they are traded on the main market of the London Stock Exchange or any Recognised Exchange including the AIM Market of the London Stock Exchange;
	 	 	 
	“London Stock Exchange”	 	London Stock Exchange plc or any successor body thereto;
	 	 	 
	“Market Value”	 	on any day:
	 	 	 
		 	(a)   if the Shares are Listed, an amount equal to the middle market quotation of a Share as derived, where relevant, from the Daily Official List for the immediately preceding Dealing Day; or
	 	 	 
		 	(b)   if the Shares are not Listed, the market value of a Share determined by the Committee in accordance with the provisions of Part VIII of the Taxation of Chargeable Gains Act 1992;
	 	 	 
	“Option”	 	a right to acquire Shares granted to a Group Employee under this Plan (or where the context so requires, a right to acquire Shares so to be granted);
	 	 	 
	“Option Certificate”	 	a certificate evidencing an Option issued in accordance with Rule 2.14, in such form as the Committee may from time to time determine;
	 	 	 
	“NIC”	 	National Insurance Contributions
	 	 	 
	“NIC Agreement”	 	an agreement under paragraph 3A(2) of Schedule 1 to the Social Security Contributions and Benefits Act 1992;
	 	 	 
	“NIC Election”	 	An election under paragraph 3B(1) of Schedule 1 to the Social Security Contributions and Benefits Act 1992;
	 	 	 
	“Participant”	 	a person who holds an Option or, if the context requires, his personal representatives;
	 	 	 
	“Performance Condition”	 	a condition determined by the Committee, which must be satisfied for an Option to become exercisable;
	 	 	 
	“Performance Period”	 	the period over which any Performance Condition is measured;
	 	 	 
	this “Plan”	 	the 4D Pharma plc 2015 Long Term Incentive Plan as set out in these Rules;
	 	 	 
	“Recognised Exchange”	 	an exchange that is:
	 	 	 
	 	 	(a)   a recognised stock exchange for the purposes
    of Section 1005 of the Income Tax Act 2007; and/or
	 	 	 
	 	 	(b)   a recognised investment exchange for the
    purposes of Section 285(1)(a) of the Financial Services and Markets Act 2000;

 

 

			

 

    	 	5

     

    

 

 

	“Relevant Shares”	 	Relevant Shares as defined in Rule 3.2;
	 	 	 
	“Remuneration”	 	the annual salary of the Participant under his contract of employment with the Company or a subsidiary of the Company before tax and excluding benefits in kind, bonuses and interests under this Plan and other incentive plans and employer’s pension contributions;
	 	 	 
	“Replacement Option”	 	a new option granted in consideration of the release of an Option in accordance with Rule 6;
	 	 	 
	“Rules”	 	the rules of this Plan as amended from
    time to time under Rule 12 and “Rule” shall be construed accordingly;
	 	 	 
	“Scheme of Arrangement”	 	a court sanctioned compromise or arrangement made under Part 26 of the Companies Act 2006;
	 	 	 
	“Shares”	 	ordinary shares of 0.25p each in the capital of the Company or, as the context may require, shares for the time being representing or deriving from the same following a reorganisation or increase of the Company’s share capital;
	 	 	 
	“Tax”	 	any tax, duties, social security contributions, social taxes and/or similar liabilities (but excluding employer’s NIC unless the right to exercise an Option is conditional on a NIC Agreement or NIC Election being made);
	 	 	 
	“Tax Liability”	 	any Tax relating to:
	 	 	 
		 	(a)   an individual’s participation in this Plan; or
	 	 	 
		 	(b)   Shares obtained under this Plan
	 	 	 
		 	to the extent that any person other than the Participant is liable to account to the appropriate authorities for the Tax or may suffer a disadvantage if it does not do so;
	 	 	 
	“Termination Date”	 	the date on which this Plan terminates in accordance with Rule 13.9;
	 	 	 
	“Trust”	 	any employee benefit trust that the Committee from time to time nominates for the purposes of this Plan; and
	 	 	 
	“Trustee”	 	the trustee or trustees for the time being of the Trust.
	 	 	 
	General	 	 

 

		1.2	In these Rules, except insofar as the context otherwise
requires:

 

		(a)	words denoting the singular shall include the plural
and vice versa;

 

    	 	6

     

    

 

		(b)	words importing a gender shall include every gender;

 

		(c)	references to a person shall include bodies corporate
and unincorporated and any successors or assignees;

 

		(d)	reference to any enactment or statutory provision shall
be construed to include a reference to the corresponding provisions of any earlier statue (whether repealed or not) directly or
indirectly amended, consolidated, extended or replaced by those provisions (or re-enacted in those provisions) and that enactment
or provision as from time to time amended, re-enacted or replaced and shall include any subordinate legislation made under the
enactment;

 

		(e)	headings are provided for reference only and shall not
be considered as part of this Plan; and

 

		(f)	a reference to writing or written form shall include
any legible format capable of being reproduced on paper, irrespective of the medium used.

 

		1.3	The
Company holds the benefit of any agreement or consent given by a Participant under these Rules for itself and as trustee
and agent for any Group Company or other person who benefits from the agreement or consent. The Company may assign the benefit
of such agreement or consent to such Group Company or other person.

 

		1.4	Each provision in these Rules is entirely separate and independent from the other provisions. If any provision is found
to be invalid, it shall be deemed never to have been part of these Rules and this shall not affect the validity or enforceability
of any of the remaining provisions of this Plan.

 

		2	Grant of Options

 

Persons to whom Options may be granted

 

		2.1	Options may be granted to Group Employees selected by the Committee.

 

		2.2	No person shall be entitled as of right to be granted an Option.

 

Period for granting Options

 

		2.3	Options may be granted within a period of 42 days commencing on the Adoption Date.

 

		2.4	Except for Options granted under Rule 2.3 and Replacement Options granted under Rule 6, Options may only be granted
in a Grant Period unless:

 

		(a)	the Grantor is prevented from granting Options in a Grant Period by a Dealing Restriction; or

 

		(b)	there are exceptional circumstances that the Committee considers justify granting Options outside a Grant Period

 

in which case the Grantor may grant Options within
the 42 day period commencing on the Dealing Date immediately following the lifting of such Dealing Restriction or within the 42
day period commencing on the occurrence of the exceptional circumstances.

 

		2.5	Options may not be granted after the Termination Date.

 

    	 	7

     

    

 

Procedure for granting Options

 

		2.6	Options shall be granted by either resolution, contract or deed of the Grantor. If the Option is granted by deed, the Date
of Grant shall be the date the deed is executed. If the Option is granted by resolution or contract, the Date of Grant shall be
the date the Acceptance Notice is signed.

 

		2.7	If an Option is granted by resolution, the Grantor shall either execute the Option Certificate as a deed or by way of a contract
between the Grantor and the Participant.

 

		2.8	A Participant shall not be required to pay for the grant of an Option unless entered into as a contract, in which case, the
manner of any payment is to be decided by agreement between the Grantor and Participant.

 

		2.9	The Grantor may determine, on or before the Date of Grant, that the right to exercise an Option is conditional on the Participant:

 

		(a)	entering into a NIC Agreement; or

 

		(b)	entering into a NIC Election.

 

		2.10	The Grantor may determine, on or before the Date of Grant, that the Participant’s ability to transfer the Shares that
they acquire on the exercise of their Option will be restricted. Any restrictions imposed pursuant to this Rule 2.10 must
be fair and reasonable and must not prevent the Participant from selling such number of Shares as may be necessary to satisfy the
Exercise Price (if applicable) and/or the Tax Liability.

 

Option may be subject to conditions

 

		2.11	The right to exercise an Option may be subject to the satisfaction of one or more Performance Conditions or other conditions.

 

		2.12	Any Performance Conditions or other conditions must be determined by the Committee on or before the Date of Grant and, in the
case of any Performance Conditions, should be objective.

 

		2.13	The Grantor may waive or vary a Performance Condition or other condition if events happen which cause the Committee to consider
that the Performance Condition or other condition has ceased to be a fair measure of performance. The varied Performance Condition
or other condition must, in the opinion of the Committee, be materially no more or less difficult to satisfy.

 

Option Certificate

 

		2.14	The Grantor shall as soon as reasonably practicable send the following to each Participant to whom an Option has been granted:

 

		(a)	a Grant Letter;

 

		(b)	an Option Certificate; and

 

		(c)	an Acceptance Notice.

 

	2	.15	The Option Certificate shall contain the following information:

 

    	 	8

     

    

 

		(a)	the Date of Grant;

 

		(b)	the number of Shares subject to the Option;

 

		(c)	the Exercise Price, if applicable;

 

		(d)	details of any Performance Conditions, the Performance Period and any other conditions that must be met before the Option can
be exercised;

 

		(e)	details of when the Option may be exercised;

 

		(f)	a statement that the Option may not be transferred, assigned or charged;

 

		(g)	details of the agreement in respect of the Tax Liability that a Participant who accepts an Option is making under Rule 10;

 

		(h)	reference to any NIC Agreement or NIC Election that needs to be made under Rule 2.9;

 

		(i)	details of the consents in respect of data protection law and provision of information that a Participant who accepts an Option
is making under Rule 11;

 

		(j)	details of any restrictions which may be imposed on the Participant’s ability to transfer any of the Shares that they
acquire on the exercise of their Option.

 

		2.16	The Grant Letter shall state the address and deadline for returning the Acceptance Notice.

 

Non-transferability of Options

 

		2.17	No Option may be transferred, assigned or charged and any purported transfer, assignment or charge shall cause the Option to
lapse immediately.

 

		2.18	Rule 2.17 shall not prevent the Option of a deceased Participant being exercisable by his personal representatives.

 

Renunciation of Options

 

		2.19	A Participant may renounce his Option in whole or in part at any time by giving notice to that effect and returning the relevant
Option Certificate to the Grantor.

 

		2.20	A renounced Option shall lapse immediately.

 

		2.21	Where a Participant renounces an Option within 30 days of the Date of Grant, the Option shall be treated for all purposes as
if it was never granted.

 

Options void unless accepted

 

		2.22	Where a Participant does not return a signed Acceptance Notice to the Grantor within 30 days of the Grantor sending him his
Option Certificate, his Option shall be treated as renounced for the purposes of this Plan, unless the Grantor determines otherwise
before that date.

 

    	 	9

     

    

 

		3	Plan limits

 

10 percent in 10 years dilution limit

 

		3.1	A Grantor may not grant an Option if it would cause the total number of Relevant Shares to exceed 10 percent of the issued
ordinary share capital of the Company.

 

Definitions used in dilution limits

 

		3.2	Relevant Shares means all shares that have been issued or are issuable by the Company in satisfaction of:

 

		(a)	Options granted under this Plan in the preceding 10 years; and

 

		(b)	options granted or awards made in the preceding 10 years under any other employees’ share scheme adopted by the Company.

 

		3.3	Rule 3.2 includes shares issued or issuable to the trustees of an employee trust in order for the trustees to satisfy
options or awards.

 

		3.4	Treasury shares shall be treated as issued or issuable unless the Investment Management Association amends its guidelines on
remuneration so that the guidelines no longer state that companies should take account of treasury shares for the purposes of dilution
limits.

 

Individual limit

 

		3.5	Subject to Rule 3.6, an Option shall be limited and take effect so that no Participant is granted Options in any financial
year of the Company over Shares with an aggregate Market Value in excess of 200% of his Remuneration at the relevant Date of Grant.

 

		3.6	If there are exceptional circumstances that the Committee considers justify granting Options in excess of the limit referred
to in Rule 3.5, a Participant may be granted Options in a financial year of the Company over Shares with an aggregate Market
Value in excess of the said limit.

 

		3.7	In determining the aggregate Market Value of Shares under Option for the purpose of Rules 3.5 and 3.6, the Market Value
shall be measured as at the Date of Grant of each Option, by reference to the number of Shares over which that Option is granted.

 

		4	Right to exercise Options

 

Events giving a right to exercise

 

		4.1	Subject to this Rule 4 and to Rules 5, 7.1 and 7.2, an Option may be exercised by the Participant at the time of
or following the earliest of the following events:

 

		(a)	the third anniversary of the Date of Grant or such other date or dates as is specified in the Option Certificate;

 

		(b)	if (and only if) the Committee so determines under Rule 4.7, the Participant becoming a Good Leaver;

 

		(c)	subject to Rule 6.4, an event specified in Rule 5; and

  

		(d)	the occurrence of any other event that the Committee considers justifies the Option becoming exercisable early.

 

    	 	10

     

    

 

Performance Conditions

 

		4.2	An Option may only be exercised to the extent that any applicable Performance Conditions and/or other conditions imposed under
Rule 2.11 (as amended, if relevant, under Rule 2.13) have been satisfied. Any part of the Option that does not become
exercisable, as a result of a Performance Condition or other condition not being satisfied in full, shall lapse.

 

		4.3	Subject to Rule 4.4, the Committee shall determine the extent to which any applicable Performance Conditions and/or conditions
imposed under Rule 2.11 (as amended, if relevant, under Rule 2.13) have been satisfied as soon as practicable following
the end of the Performance Period or where an Option has become capable of exercise pursuant to Rule 4.1 prior to the end
of the Performance Period relating to the Option, the event triggering early exercise of the Option and shall notify a Participant
of its determination as soon as reasonably practicable thereafter.

 

		4.4	Where the Committee considers it likely that an Option will become exercisable as a result of an event specified in Rule 5,
it may make its determination for the purposes of Rule 4.3 prior to and conditional on the relevant event occurring.

 

		4.5	Where an Option becomes capable of exercise pursuant to Rule 4.1 prior to the end of the Performance Period relating to
the Option the Committee shall assess the Performance Conditions and/or conditions imposed under Rule 2.11 (as amended, if
relevant, under Rule 2.13) on such modified basis as it reasonably thinks fit taking into account the curtailed Performance
Period.

 

Pro-rating on early exercise

 

		4.6	Subject to Rule 4.8, if an Option becomes exercisable under Rules 4.1(c) or 4.1(d) prior to the end of
the Performance Period relating to the Option, the Option shall be pro-rated (unless otherwise determined by the Committee), so
that after having regard to any applicable Performance Conditions and/or other conditions imposed under Rule 2.11, the proportion
of the Option, if any, that becomes exercisable corresponds to the proportion that the period of time that has elapsed between
the Date of Grant and the date of the event which triggers early exercise of the Option bears to the period of time between the
Date of Grant of the Option and the date that the Option would normally have become exercisable under Rule 4.1(a).

 

Good Leavers

 

		4.7	The Committee may determine, in relation to any particular Option that becoming a Good Leaver causes the Option to become exercisable
early under Rule 4.1(b). Any such determination must be made and notified in writing to the Participant within 30 days of
the Participant becoming a Good Leaver. Where no such determination is made under this Rule 4.7, if a Participant with an
Option that is not yet exercisable becomes a Good Leaver, he shall retain the Option until the lapse date specified in Rule 8.
A Good Leaver’s Option may become exercisable under Rule 4.1(a), 4.1(c) or 4.1(d) after he has ceased to be
a Group Employee.

 

		4.8	Where a Good Leaver’s Option becomes exercisable after he has ceased to be a Group Employee, the Option shall
                                                           (unless otherwise determined by the Committee) be pro-rated so that, after having regard to any applicable Performance
                                                           Conditions and/or other conditions imposed under Rule 2.11 (as amended, if relevant, under Rule 2.13), the
                                                           proportion of the Option,
if any, that becomes exercisable corresponds to the proportion that the period of time that has elapsed between the Date of Grant
and the date when the Participant ceased to be a Group Employee (determined in accordance with Rules 4.10 and 4.11) bears
to the period of time between the Date of Grant of the Option and:

 

    11 

     

    

 

		(a)	the date the Option becomes exercisable under Rule 4.1(a), where the Option becomes exercisable under Rule 4.1 (a);
or

 

		(b)	the date the Option would normally have become exercisable under Rule 4.1(a), where the Option becomes capable of exercise
under Rule 4.1(b), 4.1(c) or 4.1(d).

 

Meaning of Good Leaver

 

		4.9	For the purposes of this Plan, a Good Leaver is a Participant who ceases to be a Group Employee:

 

		(a)	by reason of death;

 

		(b)	by reason of injury, ill-health or disability provided that the Committee is satisfied, on production of such evidence as it
may reasonably require, that:

 

		(i)	the individual has ceased to exercise and, by reason of injury, ill-health or disability, is incapable of exercising that employment
(and not as the result of drug or alcohol abuse); and

 

		(ii)	the individual is likely to remain so incapable for the foreseeable future; or

 

		(c)	for a reason other than provided elsewhere in this Rule 4.9 if the Committee determines within 30 days of his cessation
of employment that he should be treated as a Good Leaver.

 

		4.10	For the purposes of this Plan, a Participant shall cease to be a Group Employee when he gives notice or is given notice of
the termination of his employment such that he will no longer be a Group Employee, provided that there are no arrangements for
him to commence a new employment with any Group Company.

 

		4.11	A female Participant only ceases to be a Group Employee due to pregnancy when she no longer has any right to return to work.

 

Determination of Good Leaver status

 

		4.12	If a Participant ceases to be a Group Employee for a reason other than those stated in Rules 4.9(a) and 4.9(b) his
Option shall:

 

		(a)	become incapable of exercise with effect from the date of cessation of employment; and

 

		(b)	remain incapable of exercise unless and until the Committee determines that, and notifies the Participant in writing that,
he is to be treated as a Good Leaver under Rule 4.9(c).

 

Notification to the Trustee

 

		4.13	If the Grantor is the Trustee, the Committee shall send a copy of any notification given to Participants under this Rule 4
to the Trustee.

 

    12 

     

    

 

		5	Change of Control and winding-up

 

Right to exercise on change of Control

 

		5.1	Subject to Rule 6.4, an Option shall become exercisable under Rule 4.1(c) as a result of an event specified
in Rule 5.2, but only to the extent the Performance Condition and/or other conditions imposed by Rule 2.11 (and as amended,
if relevant, under Rule 2.13) are satisfied and to the extent provided by Rule 4.6 or Rule 4.8, as appropriate.
Any part of the Option that does not become exercisable as a result of a Performance Condition and/or other condition not being
satisfied in full and/or the application of Rules 4.6 or 4.8, as appropriate, shall lapse.

 

		5.2	For the purposes of Rule 5.1, the events specified are where:

 

		(a)	a General Offer becomes or is declared unconditional in all respects;

 

		(b)	the court sanctions a Scheme of Arrangement pursuant to which a person will acquire Control of the Company or substantially
the whole of the Company’s undertaking and property;

 

		(c)	a person becomes bound or entitled to acquire shares in the Company under Sections 979 to 982 of the Companies Act 2006; or

 

		(d)	a person (either alone or together with persons acting in concert with him) otherwise obtains Control of the Company.

 

Exercise period on a change of Control

 

		5.3	Subject to Rule 5.5, on the occurrence of an event specified in Rule 5.2, an Option exercisable in accordance with
Rule 5.1 shall become exercisable on the following date:

 

		(a)	where Rule 5.2(a) applies, on the date that the General Offer becomes or is declared unconditional in all respects;

 

		(b)	where Rule 5.2(b) applies, on the date that the court sanctions the Scheme of Arrangement, provided that an Option
exercise shall be deemed never to have taken place if the Scheme of Arrangement does not become effective;

 

		(c)	where Rule 5.2(c) applies, on the date that the relevant person becomes bound or entitled to acquire shares in the
Company under Sections 979 to 982 of the Companies Act; or

 

		(d)	where Rule 5.2(d) applies, on the date that the relevant person obtains Control of the Company.

 

		5.4	Except for Replacement Options granted under Rule 6, all Options that do not lapse earlier under any other provision of
this Plan shall lapse and become incapable of exercise on the earliest of the dates falling:

 

		(a)	six months after an event specified in Rule 5.2(a) or 5.2(d);

 

		(b)	two months after an event specified in Rule 5.2(a) or 5.2(d) in the case of an Internal Reconstruction;

 

		(c)	42 days after a Scheme of Arrangement as a result of which any person acquires Control of the Company or substantially the
whole of the Company’s undertaking and property becomes effective; and

 

    13 

     

    

 

		(d)	30 days after the date of service of the first notice of compulsory acquisition where any person becomes bound or entitled
to acquire shares in the Company under Sections 979 to 982 of the Companies Act 2006.

 

Advance Exercise Notice

 

		5.5	Where the Committee considers it likely that an event specified in Rule 5.2 will occur, the Committee may request in writing
that Participants give an Exercise Notice in advance of the relevant event.

 

		5.6	Where an Exercise Notice is given in advance of a relevant event following receipt of a request made by the Committee pursuant
to Rule 5.5, the Option exercise shall only take effect immediately before the relevant event occurs or, if earlier, immediately
before a related change of Control of the Company.

 

		5.7	If a Participant fails to give an advance Exercise Notice after being requested to do so under Rule 5.5, his Option shall
lapse on the relevant event occurring.

 

		5.8	If an Exercise Notice is given following a request made by the Committee pursuant to Rule 5.5 and the relevant event in
question does not occur, such Exercise Notice shall be deemed never to have been given.

 

Right to exercise on a winding-up

 

		5.9	Subject to Rules 5.10 to 5.15, where notice is given of a general meeting of the Company at which a resolution for the
voluntary winding-up of the Company will be proposed or notice is given of an equivalent written resolution, an Option shall become
exercisable under Rule 4.1(c) but only to the extent the Performance Condition and/or other conditions imposed by Rule 2.11
(and as amended, if relevant, under Rule 2.13) are satisfied and to the extent provided by Rule 4.6 or Rule 4.8,
as appropriate.

 

		5.10	At the same time that the Company sends notice to members calling the meeting to consider such resolution or sends notice of
the written resolution, the Company shall notify all Participants and invite them to give an Exercise Notice on or after the date
of such notice and in advance of the passing of the resolution. If applicable, the Company shall also notify the Trustee.

 

		5.11	If an Exercise Notice is received by the Company following an invitation made by the Company pursuant to Rule 5.10 and
the resolution for voluntary winding-up is duly passed the Option exercise shall take effect immediately before the resolution
for the voluntary winding-up of the Company is passed.

 

		5.12	If an Exercise Notice is received by the Company following an invitation made by the Company pursuant to Rule 5.10 and
the resolution for voluntary winding-up is defeated or withdrawn or the general meeting is cancelled or adjourned to an unspecified
future date, then such Exercise Notice shall be deemed never to have been given and the Option shall cease to be exercisable as
a result of Rule 5.9

 

		5.13	If an Exercise Notice is received by the Company following an invitation made by the Company pursuant to Rule 5.10 and
a general meeting is adjourned to a specified future date, if the resolution for voluntary winding-up is duly passed at the adjourned
meeting, the Option exercise shall take effect immediately before the resolution for the voluntary winding-up of the Company is
passed.

 

    14 

     

    

 

		5.14	If a general meeting is adjourned to an unspecified future date, the Company must give a further notification to Participants
and, if applicable, the Trustee under Rule 5.10 at the same time that notice of the adjourned meeting is given to members.

 

		5.15	Unless it lapses earlier under any other provision of this Plan, an Option shall lapse on the date that a resolution for the
voluntary winding-up of the Company is passed.

 

		6	Replacement Options

 

Grant of Replacement Options

 

		6.1	A Replacement Option may be granted if another company (referred to as the Acquiring Company):

 

		(a)	obtains Control of the Company as a result of making a General Offer;

 

		(b)	obtains Control of the Company or substantially the whole of the Company’s undertaking and property pursuant to a Scheme
of Arrangement; or

 

		(c)	otherwise obtains Control of the Company (either alone or together with persons acting in concert with him).

 

		6.2	A Replacement Option over shares in the Acquiring Company or another body corporate determined by the Acquiring Company may
only be granted if the Acquiring Company, the Committee, the Trustee, if applicable, and the Participant all consent.

 

		6.3	To the extent reasonably practicable, an Acquiring Company shall determine whether Replacement Options shall be offered on
or before:

 

		(a)	the date the Acquiring Company obtains control of the Company as a result of a General Offer and any condition subject to which
the General Offer was made has been satisfied;

 

		(b)	the date the Acquiring Company obtains control of the Company or substantially the whole of the Company’s undertaking
and property as a result of a Scheme of Arrangement; or

 

		(c)	the date the Acquiring Company otherwise obtains Control of the Company

 

and in any event, it shall make any such determination
within the 30 days following such event.

 

Lapse of Option unless Replacement Option accepted

 

		6.4	If a Participant is or will be offered a Replacement Option, the Committee may notify a Participant in writing that his Option
may not be exercised under Rule 4.1(c).

 

		6.5	If a Participant is offered a Replacement Option the original Option shall lapse on the expiry of 30 days following the date
the offer of the Replacement Option is made in writing to the Participant unless the Replacement Option is accepted.

 

    15 

     

    

 

Terms of Replacement Options

 

		6.6	Unless the Acquiring Company determines otherwise, if the original Option was subject to any Performance Conditions, the
                                                           Replacement Option shall be subject to performance conditions that, in the reasonable opinion of the Acquiring Company, are
                                                           equivalent, so far as practicable, to any original Performance Conditions.

 

		6.7	In the case of an Internal Reconstruction, if the original Option was subject to any Performance Conditions the Replacement
Option must be subject to replacement performance conditions.

 

		6.8	The Committee and the Acquiring Company, acting reasonably, shall determine the number of shares subject to any Replacement
Option taking into account:

 

		(a)	the Market Value of the Shares subject to the Option; and

 

		(b)	the market value of the shares subject to the Replacement Option.

 

		6.9	Unless the context otherwise requires, the Replacement Option shall be exercisable in the same manner as the original Option
and shall be governed by these Rules as if:

 

		(a)	references to Shares were references to the shares subject to the Replacement Option; and

 

		(b)	references to the Company, except for the purposes of Rules 2 and 12, were references to the Acquiring Company or to the
body corporate whose shares are subject to the Replacement Option.

 

		6.10	If a Replacement Option is granted, a Participant’s rights in respect of the original Option shall lapse.

 

		6.11	The Replacement Option shall be treated as granted at the same time as the original Option and shall be treated as the same
option except that the Replacement Option shall not become exercisable or lapse by reason of the event pursuant to which it was
granted.

 

Replacement Option certificate

 

		6.12	Where a Replacement Option is granted, the Acquiring Company shall, as soon as reasonably practicable, send or procure the
sending of a Replacement Option certificate to each Participant to whom a Replacement Option has been granted.

 

		6.13	The Replacement Option certificate shall contain the information required to be included in an Option Certificate except that
no Acceptance Notice is required.

 

		7	Manner of exercise

 

Restrictions on exercise

 

		7.1	An Option that has become exercisable under Rule 4 may be exercised at any time provided that:

 

		(a)	a Participant has complied with any requirement to enter into a NIC Agreement or NIC Election imposed by Rule 2.9;

 

		(b)	a Participant has made arrangements, satisfactory to the Committee, to satisfy the Tax Liability that arises as a result of
the exercise of the Option (where applicable);

 

		(c)	exercise is not prevented by a Dealing Restriction; and

 

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		(d)	the Option has not lapsed under Rule 8.

 

		7.2	Unless the Grantor permits otherwise, an Option can only be exercised in full.

 

Procedure for Exercise

 

		7.3	In order to exercise an Option the Participant shall deliver to the Grantor (or other person nominated by the Committee for
this purpose) an Exercise Notice and, if an Exercise Price is payable, the aggregate Exercise Price payable for all the Shares
over which the Option has been exercised, unless the Participant has elected for cashless exercise under Rule 7.14.

 

Exercise Date

 

		7.4	Where the Option is exercised following the receipt of a request from the Company pursuant to Rule 5.5 or 5.10, the Exercise
Date will be the date specified in Rule 5.6 or Rule 5.11 or Rule 5.13, as applicable.

 

		7.5	Where the Option is being exercised in any circumstances other than those mentioned in Rule 7.4, the Exercise Date will
be the date that the Grantor or other person nominated for this purpose receives:

 

		(a)	a validly completed and submitted Exercise Notice; and

 

		(b)	where an Exercise Price is payable, satisfactory payment of the aggregate Exercise Price payable on the exercise of the Option
unless the Participant elects for cashless exercise under Rule 7.14.

 

Period for satisfying exercised Options

 

		7.6	Subject to Rules 7.7 and 8.4 and provided the Participant meets his obligations under Rule 10 in relation to the
Tax Liability, the Grantor shall satisfy an Option as soon as reasonably practicable following, and in any event within 30 days
of, the Exercise Date.

 

		7.7	If the Grantor is prevented from satisfying an Option in accordance with the time period prescribed in Rule 7.6 by a Dealing
Restriction, the Grantor shall satisfy an Option as soon as reasonably practicable following, and in any event within 14 days of,
the lifting of that Dealing Restriction.

 

Manner of satisfying exercised Options

 

		7.8	The Grantor shall satisfy an Option by issuing or transferring or procuring the issue or transfer of Shares to the Participant.

 

		7.9	The number of Shares issued or transferred shall, subject to Rules 7.14 and 10, be equal to the number of Shares in respect
of which the Option has been exercised.

 

		7.10	The Grantor shall be responsible for the payment of any stamp duty or stamp duty reserve tax that may arise on any transfer
of Shares.

 

		7.11	The Grantor shall arrange for the delivery of evidence of title to any Shares issued or transferred to the Participant as soon
as reasonably practicable.

 

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		7.12	All Shares allotted under this Plan shall rank equally in all respects with Shares of the same
class then in issue except for any rights attaching to Shares by reference to a record date prior to the date of allotment. Shares
transferred on the exercise of an Option shall be transferred without the benefit of any rights attaching to the Shares by reference
to a record date preceding the date of such exercise.

 

		7.13	If necessary, the Company shall apply for Shares issued to a Participant to be admitted to trading on the relevant Recognised
Exchange.

 

Cashless exercise

 

		7.14	The Company may establish a cashless exercise facility to enable a Participant to provide funds to pay the Exercise Price and/or
the Tax Liability. Such arrangements may include, without limitation, authorising the sale on the Participant’s behalf of
such number of Shares as will be required, net of selling costs, to cover the aggregate Exercise Price and/or the Tax Liability.

 

		7.15	Any excess of such sale proceeds over and above the aggregate Exercise Price and/or Tax Liability shall be refunded to the
Participant promptly and in any event within 30 days of the sale.

 

		8	Lapse of Options

 

General

 

		8.1	An Option shall lapse and become incapable of exercise on the earliest of the following dates:

 

		(a)	if the Participant becomes a Good Leaver and the Committee has exercised its discretion to allow the Option to be exercised
early under Rule 4.1(b), the date falling six months after the date of cessation of employment, determined in accordance with
Rules 4.10 and 4.11;

 

		(b)	if the Participant becomes a Good Leaver and the Committee has not exercised its discretion to allow the Option to be exercised
early under Rule 4.1(b), the date falling six months after the date the Option first became exercisable;

 

		(c)	the last date on which the Committee may determine that the Participant is a Good Leaver under Rule 4.11(d), where no
such determination is made and the Participant has ceased to be a Group Employee for a reason other than those stated in Rules 4.9(a) and
4.9(b);

 

		(d)	on the occurrence of an event specified in Rule 5.2:

 

		a.	the relevant lapse date specified in Rule 5.4, unless a Replacement Option is granted;

 

		b.	the lapse date specified in Rule 5.7 if a Participant fails to give an advance Exercise Notice by the relevant date; or

 

		c.	the lapse date specified in Rule 6.5 and a Replacement Option is offered but is not accepted;

 

		(e)	a resolution for the voluntary winding-up of the Company being passed, as specified in Rule 5.15 or an order being made
by the court for the compulsory winding-up of the Company;

 

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		(f)	where there is an event that the Committee considers justifies Options becoming exercisable for the purposes of Rule 4.1(d),
a lapse date that the Committee determines to be reasonable, having regard to the event in question;

 

		(g)	the date that the Option is renounced by the Participant;

 

		(h)	the date of any purported transfer, assignment or charge of the Option by the Participant;

 

		(i)	the date that the Participant is adjudicated bankrupt or does or omits to do anything as a result of which he is deprived of
the legal and beneficial ownership of the Option; and

 

		(j)	the tenth anniversary of the Date of Grant or such earlier date determined by the Committee and specified in the Option Certificate.

 

		8.2	The balance of an Option shall lapse to the extent that the whole or any part does not become exercisable due to the provisions
in Rules 4.2, 4.6 or 4.8.

 

Exercise prevented by a Dealing Restriction

 

		8.3	If a Dealing Restriction prevents the Participant exercising his Option at any time before it lapses under Rule 8.1(a),
(b), (d), (e) or (f), it shall not lapse until 14 days after such Dealing Restriction is lifted, provided that the latest
date on which an Option lapses shall be the tenth anniversary of the Date of Grant.

 

Lapse of leaver’s Option for misconduct

 

		8.4	An Option shall lapse and shall not be exercisable or satisfied if a Participant who has ceased to be a Group Employee commits
or has at any time committed a material breach of his contract of employment or any compromise agreement entered into in relation
to his cessation of employment.

 

		9	Variation of share capital

 

Adjustment to Options

 

		9.1	If there is:

 

		(a)	a variation of the share capital of the Company including, without limitation, any capitalisation, rights issue, open offer,
consolidation, sub-division or reduction of capital; or

 

		(b)	a capital distribution, special dividend, distribution in specie, demerger or other event having a material impact on the value
of the Shares

 

subject to Rule 9.2, the Grantor may make such
adjustment to the number of Shares subject to an Option and/or to the Exercise Price, as the Committee reasonably considers appropriate.

 

		9.2	An adjustment under Rule 9.1 may only reduce the Exercise Price to less than the nominal value of any Shares to be issued
if and to the extent that arrangements to issue the Shares paid up as to nominal value are made.

 

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Effective date of adjustment

 

		9.3	Any adjustment to an Option made pursuant to Rule 9.1 shall take effect from the record date on which the respective variation
applied to Shares or, as applicable, the date on which the demerger or other event occurred.

 

		9.4	Any Options that are exercised within the period from the effective date to the date when the Options are adjusted shall be
subject to the variation.

 

Notification of adjustment

 

		9.5	The Grantor shall take such steps as it considers necessary to notify Participants of any adjustment made under this Rule 9
and may call in, cancel, endorse or reissue any Option Certificate.

 

		10	Tax Liability

 

Liability of Participant

 

		10.1	It is a condition of exercise of the Option that the Participant agrees to pay to the Company or other person nominated for
this purpose an amount equal to the Tax Liability.

 

Arrangements for satisfying the Tax Liability

 

		10.2	Unless the Participant agrees to meet the Tax Liability using a cashless exercise facility under Rule 7.14, the Participant
agrees to pay the Tax Liability within 14 days of the Exercise Date.

 

		10.3	If the Participant fails to make a payment required by Rule 10.2, in order to make good the due amount the Grantor or
other relevant person may withhold such amount or make such other arrangements as it reasonably considers necessary to obtain an
amount equal to the Tax Liability. Such arrangements may include without limitation:

 

		(a)	the sale of Shares resulting from the exercise of the Option on behalf of a Participant; and

 

		(b)	making deductions within 90 days of the Exercise Date of the necessary amount from the Participant’s salary payments
or other sums due to him.

 

		10.4	As a condition of exercise of the Option the Participant is deemed to give all necessary consents and authorisations and agrees
to do any other thing required in relation to Rule 10.3.

 

Restricted security elections

 

		10.5	It is a condition of exercise of the Option that the Participant agrees, in relation to Shares obtained under this Plan, to
comply within the requisite time period with any request from the Company to enter into a restricted security election under Chapter
2 of Part 7 of the Income Tax (Earnings and Pensions) Act 2003.

 

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		11	Administration

 

Notices

 

		11.1	Any notice or other document given to a Group Employee or Participant shall be delivered personally or sent by post, email
or fax or given via an intranet communications system or other electronic means to such address or number as the person giving
the notice or document considers appropriate.

 

		11.2	Any notice or other document which has to be given to any other person under or in connection with this Plan shall be delivered
personally or sent by post, email or fax or given via an intranet communications system or by such other method as the Committee
determines. It shall be sent to such address or number as is notified for this purpose and shall be marked for the attention of
the designated person.

 

		11.3	References to post include, where relevant, an organisation’s internal post system. Items sent by external post shall
be pre-paid and shall be deemed to have been received 72 hours after posting or, if posted overseas, 7 days after posting or at
such earlier time as receipt is acknowledged.

 

		11.4	Notices sent by any method other than external post, in the absence of evidence to the contrary, shall be deemed to have been
received on the day after sending.

 

Disputes

 

		11.5	The Committee’s decision on all disputes relating to the interpretation of this Plan or as to any question or right related
to this Plan shall be final and conclusive.

 

Costs

 

		11.6	The costs of establishing and operating this Plan shall be borne by the Group Companies in such proportions as the Committee
determines, to the extent permitted by Chapter 2 of Part 18 of the Companies Act 2006.

 

		11.7	Any Group Company may provide money to the Trustee to enable it to acquire and hold Shares for the purposes of this Plan and
may enter into any guarantee or indemnity for those purposes, to the extent permitted by Chapter 2 of Part 18 of the Companies
Act 2006.

 

Power to delegate functions and appoint
specialists

 

		11.8	The Committee may delegate the exercise of its powers or discretions in relation to this Plan to any one or more persons including,
but not restricted to, a sub-committee of the Committee for such period and on such conditions as the Committee may determine.

 

		11.9	The Committee may at any time appoint or engage specialist service providers for the operation and administration of this Plan.

 

Data protection

 

		11.10	By accepting any benefit in respect of the right to exercise an Option, a Participant agrees to the holding of personal information
about him. He authorises the Grantor and its agents and advisers or agents or advisers of the Group to use such information for
all purposes relating to the operation of this Plan including, without limitation,
making information available to HM Revenue & Customs or to any other person as the Grantor or other person considers reasonable.

 

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		11.11	By accepting any benefit in respect of an Option, a Participant further agrees that agents of the Grantor or the Group, wherever
located, may process data concerning his participation in this Plan and transmit it outside the United Kingdom.

 

Participant to provide information

 

		11.12	By accepting any benefit in respect of the right to exercise an Option, a Participant agrees to provide promptly any information
or do any other thing reasonably required by the Grantor or other relevant person in relation to this Plan, an Option or Shares
acquired under this Plan for the purpose of:

 

		(a)	compliance by that person with its tax affairs or other legal or regulatory obligations; or

 

		(b)	facilitating the operation of this Plan.

 

		12	Amendment

 

Power to amend

 

		12.1	Subject to Rule 12.2, the Board may from time to time amend these Rules as it sees fit.

 

		12.2	No amendment may have a material adverse effect on a Participant with a subsisting Option except with the consent of either:

 

		(a)	that Participant; or

 

		(b)	Participants who hold a majority, by number of Shares subject to Option, of Options affected by the amendment.

 

Power to create sub-plans for other jurisdictions

 

		12.3	Subject to Rule 12.2, the Board may make such amendments to the Rules as it considers necessary or desirable to take
account of local tax, exchange control or securities law in order to operate this Plan in any jurisdictions in which Group Employees
are situated. The Board may implement such amendments in the form of schedules or sub-plans to this Plan applicable to the specified
jurisdiction.

 

		13	Miscellaneous

 

No employment rights

 

		13.1	The rights of any individual under the terms of his office or employment with any Group Company or former Group Company are
entirely separate from and shall not be affected in any respect by his participation or prospective participation in this Plan.

 

		13.2	In particular but without limiting the generality of Rule 13.1, an individual is not entitled and waives any rights he
may have to compensation or damages in consequence of ceasing to have rights or benefits or prospective rights or benefits under
this Plan following:

 

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		(a)	the termination of his office or employment or the giving of notice of termination, whether lawfully or unlawfully, for any
reason;

 

		(b)	the exercise of a discretion or a decision taken under these Rules or any failure to exercise a discretion or take a decision
even if this could be regarded as capricious or unreasonable, or could be regarded as in breach of any implied term between an
individual and his employer, including any implied duty of trust and confidence; or

 

		(c)	the operation, suspension, termination or amendment of these Rules.

 

		13.3	No benefit that may accrue to a Participant under this Plan shall form part of that Participant’s pensionable remuneration
for the purposes of any pension plan or similar arrangement that may be operated by any Group Company or former Group Company.

 

		13.4	The grant of Options on a particular basis or to a particular individual in any year does not create any right or expectation
of the grant of Options on the same basis, or at all, or to any particular individual in that or any subsequent year.

 

No rights of a shareholder

 

		13.5	A Participant shall not be entitled to vote, to receive dividends or to have any other rights of a shareholder in respect of
Shares subject to an Option until the issue or transfer of the Shares to him.

 

No limit on the Company’s powers

 

		13.6	This Plan and the rights of any Participants under this Plan shall not restrict the rights and powers of any Group Company
or the directors or shareholders of any Group Company to take any decision or to effect or authorise any corporate act or proceeding.

 

Third party rights

 

		13.7	Subject to Rules 1.3 and 2.18, nothing in these Rules confers any benefit, right or expectation on a person who is
not a Participant.

 

		13.8	No third party has any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any terms of these Rules.

 

Termination

 

		13.9	This Plan shall terminate on the tenth anniversary of the Adoption Date provided that the Board may resolve to terminate it
on an earlier date.

 

		13.10	The subsisting rights of Participants shall not be affected by the termination of this Plan.

 

Governing law

 

		13.11	This Plan and all Options granted under it shall be governed by and construed in accordance with the laws of England and Wales.

 

		13.12	Any dispute concerning the operation of this Plan shall be subject to the exclusive jurisdiction of the English courts.

 

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