Exhibit 10.3

 

THERAVANCE, INC.

POLICY FOR NON-EMPLOYEE DIRECTOR STOCK OPTIONS

EFFECTIVE JUNE 2, 2014

 

This policy applies to stock options granted by Theravance, Inc. (the “Company”)
to its non-employee directors who resign from the Company’s board of directors
in connection with the Company’s spin-off of Theravance Biopharma, Inc.
(“Biopharma”) and who continue to serve as non-employee members of the board of
directors of Biopharma (each, a “Biopharma Director”) to the extent such options
are outstanding immediately prior to the spin-off (“Eligible Theravance
Options”).

 

Following the spin-off, the continued service by a former non-employee director
of the Company as a Biopharma Director will constitute “service” for all
purposes of the Biopharma Director’s Eligible Theravance Options, other than
with respect to the vesting of such stock options.

 

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