Document:

EX-4.1

 Exhibit 4.1 

[Form of Note] 
 (FACE OF
NOTE) 
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR
A NOMINEE OF A DEPOSITORY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM IN ACCORDANCE WITH THE PROVISIONS OF THE INDENTURE AND THE TERMS OF THE SECURITIES, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT
AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITORY. 
 AT&T INC. 

2.900% Global Notes due 2026 

ISIN NO. [•] 
 No. I-[•] 
 £750,000,000 

AT&T Inc., a corporation duly organized and existing under the laws of the State of Delaware (herein called “AT&T”, which
term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to The Bank of New York Depository (Nominee) Limited (the “Depository”), or registered assigns, the principal sum
of pound sterling appearing on the attached Schedule of Increases and Decreases on December 4, 2026 (the “Maturity Date”), and to pay interest on said principal sum from September 11, 2018 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, annually in arrears on December 4 of each year, commencing on December 4, 2018 (each an “Interest Payment Date”) and on the Maturity Date, at the interest rate of 2.900%
per annum, until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name
this Note (or one or more predecessor Notes) is registered at the close of business on the Regular Record Date for such interest, which shall be the close of business on the business day preceding the Interest Payment Date (each, a “Regular
Record Date”). Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more predecessor
Notes) is registered at the close of business on a special record date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes not less than 15 days prior to such special record date,
or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said
Indenture. 

 Any money that AT&T deposits with the Trustee or its Paying Agent for the payment of
principal or any interest on this Note that remains unclaimed for two years after the date upon which the principal and interest are due and payable, will be repaid to AT&T upon AT&T’s request unless otherwise required by mandatory
provisions of any applicable unclaimed property law. After that time, unless otherwise required by mandatory provisions of any unclaimed property law, the Holder of this Note will be able to seek any payment to which such Holder may be entitled to
collect only from AT&T. 
 If the Notes are issued in definitive form, payment of the principal and interest on this Note due at the
Maturity Date or upon redemption will be made at the Maturity Date or upon redemption, as the case may be, upon presentation of this Note, in immediately available funds, at the office of The Bank of New York Mellon, London Branch, the Paying Agent
for the Notes, currently located at One Canada Square, London E14 5AL. The Transfer Agent and Registrar for the Notes is The Bank of New York Mellon Trust Company, N.A., currently located at 601 Travis Street, 16th Floor, Houston, Texas 77002. 
 Payment of interest on this Note due on an Interest
Payment Date, other than interest at maturity or upon redemption, may be paid by check mailed to the address of the Holder entitled thereto as such address shall appear in the Note register. Notwithstanding the foregoing, (1) the Depository as
Holder of the Notes or (2) a Holder of more than £5,000,000 in aggregate principal amount of Notes in definitive form is entitled to require the Paying Agent to make payments of interest, other than interest due at maturity or upon
redemption, by wire transfer of immediately available funds into an account maintained by the Holder in the United States, by sending appropriate wire transfer instructions as long as the Paying Agent receives the instructions not less than ten days
prior to the applicable Interest Payment Date. The principal and interest payable in pound sterling on any of the Notes at maturity, or upon redemption, will be paid by wire transfer of immediately available funds against presentation of a Note at
the office of the Paying Agent. 
 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 2 

 IN WITNESS WHEREOF, AT&T INC. has caused this instrument to be signed in its corporate
name, manually or by facsimile, by its duly authorized officers and has caused its corporate seal to be imprinted hereon. 
  

							
	Dated: September 11, 2018	 		 	AT&T INC.
			
	[SEAL]	 		 	
				
		 		 	By:	 	 
		 		 		 	George B. Goeke
		 		 		 	Senior Vice President and Treasurer
				
		 		 	By:	 	 
		 		 		 	Julianne K. Galloway
		 		 		 	Vice President and Assistant Treasurer

 Trustee’s Certificate of Authentication 

This is one of the 2.900% Global Notes due 2026 
 of the series
designated herein referred to 
 in the within-mentioned Indenture. 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 
 as
Trustee 
  

									
				
	By:	 	  
	 		 	Dated: September 11, 2018
		 	Authorized Signatory	 		 		 	

 REVERSE OF NOTE 

This Note is one of a duly authorized issue of debt securities of AT&T of the series specified on the face hereof, issued under and
pursuant to an Indenture, dated as of May 15, 2013, between AT&T and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee,” which term includes any successor Trustee under the Indenture), to which
indenture and all indentures supplemental thereto (collectively, the “Indenture”) reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, AT&T and
the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. The Notes will be issued in fully registered form only and in minimum denominations of £100,000 and integral multiples of
£1,000 in excess thereof. This Note is one of the series designated on the face hereof initially limited in aggregate principal amount to £750,000,000. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of AT&T and the rights of the Holders of the Notes under the Indenture at any time by AT&T and the Trustee with the consent of the Holders of a majority in principal amount of the Notes at the time outstanding. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount of the Notes at the time outstanding to waive compliance by AT&T with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or
in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
 No reference herein to the Indenture and no
provision of this Note or of the Indenture shall alter or impair the obligation of AT&T, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein
prescribed. 
 Principal and interest payments in respect of the Notes are payable by AT&T in pound sterling. Interest will be computed
on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the Notes (or September 11, 2018 if no interest has been
paid on the Notes), to but excluding the next scheduled interest payment date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association. 

 Registrar and Paying Agent 

The Paying Agent for the Notes is The Bank of New York Mellon, London Branch currently located at One Canada Square, London E14 5AL
(“Paying Agent”). In addition, AT&T shall maintain in the Borough of Manhattan, The City of New York, an office or agency where Notes may be surrendered for registration of transfer or exchange (“Registrar”). AT&T has
initially appointed an affiliate of the Trustee, The Bank of New York Mellon, London Branch, as its Paying Agent. AT&T may vary or terminate the appointment of any of its paying or transfer agencies, and may appoint additional paying or transfer
agencies. 
 Optional Redemption by AT&T 

At any time prior to September 4, 2026, the Notes may be redeemed, as a whole or in part, at AT&T’s option, at any time and from
time to time on at least 30 days’, but not more than 60 days’, prior notice sent to the registered address of each Holder of the Notes to be redeemed. The redemption price will be calculated by AT&T and will be equal to the greater of
(1) 100% of the principal amount of the Notes to be redeemed or (2) the sum of the present values of the Remaining Scheduled Payments discounted to the redemption date, on an annual basis (ACTUAL/ACTUAL (ICMA)), at a rate equal to the
Treasury Rate plus 25 basis points. In the case of each of clauses (1) and (2), accrued but unpaid interest will be payable to the redemption date. At any time on or after September 4, 2026, the Notes may be redeemed, as a whole or in
part, at AT&T’s option, at any time and from time to time on at least 30 days’, but not more than 60 days’, prior notice sent to the registered address of each Holder of the Notes, at a redemption price equal to 100% of
the principal amount of the Notes to be redeemed. Accrued but unpaid interest will be payable to the redemption date. 
 “Treasury
Rate” means the price, expressed as a percentage, at which the gross redemption yield on the Notes, if they were to be purchased at such price on the third dealing day prior to the date fixed for redemption, would be equal to the gross
redemption yield on such dealing day of the Reference Bond on the basis of the middle market price of the Reference Bond prevailing at 11:00 a.m. (London time) on such dealing day as determined by AT&T or an investment bank appointed by
AT&T. 
 “Reference Bond” means, in relation to any Treasury Rate calculation, a United Kingdom government bond whose maturity
is closest to the maturity of the Notes, or if AT&T or an investment bank appointed by AT&T considers that such similar bond is not in issue, such other United Kingdom government bond as AT&T or an investment bank appointed by AT&T,
with the advice of three brokers of, and/or market makers in, United Kingdom government bonds selected by AT&T or an investment bank appointed by AT&T, determine to be appropriate for determining such Treasury Rate. 

“Remaining Scheduled Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of principal and
interest on such Note that would be due after the related redemption date but for the redemption. If that redemption date is not an Interest Payment Date with respect to the Note, the amount of the next succeeding scheduled interest payment on the
Note will be reduced by the amount of interest accrued on the Note to the redemption date. 

  
 2 

 On and after the redemption date, interest will cease to accrue on the Notes or any portion
of the Notes called for redemption unless AT&T defaults in the payment of the redemption price and accrued interest. On or before the redemption date, AT&T will deposit with its Paying Agent or the Trustee money sufficient to pay the
redemption price of and accrued interest on the Notes to be redeemed on that date. In the case of any partial redemption, selection of the Notes to be redeemed will be made by the Trustee by lot or pursuant to applicable depositary procedures. 

Payment of Additional Amounts 

AT&T will, subject to the exceptions and limitations set forth below, pay as additional interest on this Note such additional amounts
(“Additional Amounts”) as are necessary so that the net payment by AT&T or its Paying Agent of the principal of and interest on this Note to a person that is a United States Alien, after deduction for any present or future tax,
assessment or governmental charge of the United States or a political subdivision or taxing authority thereof or therein, imposed by withholding with respect to the payment, will not be less than the amount that would have been payable in respect of
this Note had no withholding or deduction been required. As used herein, “United States Alien” means any person who, for United States federal income tax purposes, is a foreign corporation, a
non-resident alien individual, a non-resident alien fiduciary of a foreign estate or trust, or a foreign partnership one or more of the members of which is, for United
States federal income tax purposes, a foreign corporation, a non-resident alien individual or a non-resident alien fiduciary of a foreign estate or trust. 

The foregoing obligation to pay Additional Amounts shall not apply: 

(1) to any tax, assessment or governmental charge that is imposed or withheld solely because the beneficial owner, or a fiduciary, settlor,
beneficiary or member of the beneficial owner if the beneficial owner is an estate, trust or partnership, or a person holding a power over an estate or trust administered by a fiduciary holder: 

(a) is or was present or engaged in a trade or business in the United States, has or had a permanent establishment in the
United States, or has any other present or former connection with the United States or any political subdivision or taxing authority thereof or therein; 

(b) is or was a citizen or resident or is or was treated as a resident of the United States; 

(c) is or was a foreign or domestic personal holding company, a passive foreign investment company or a controlled foreign
corporation with respect to the United States or is or was a corporation that has accumulated earnings to avoid United States federal income tax; 

(d) is or was a bank receiving interest described in Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended
(the “Code”); or 

  
 3 

 (e) is or was an actual or constructive owner of 10% or more of the total
combined voting power of all classes of stock of AT&T entitled to vote; 
 (2) to any Holder that is not the sole beneficial owner of
the Notes, or a portion thereof, or that is a fiduciary or partnership, but only to the extent that the beneficial owner, a beneficiary or settlor with respect to the fiduciary, or a member of the partnership would not have been entitled to the
payment of an Additional Amount had such beneficial owner, beneficiary, settlor or member received directly its beneficial or distributive share of the payment; 

(3) to any tax, assessment or governmental charge that is imposed or withheld solely because the beneficial owner or any other person failed
to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity or connection with the United States of the Holder or beneficial owner of the Notes, if compliance is required by
statute, by regulation of the United States Treasury Department or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge; 

(4) to any tax, assessment or governmental charge that is imposed other than by deduction or withholding by AT&T or a Paying Agent from
the payment; 
 (5) to any tax, assessment or governmental charge that is imposed or withheld solely because of a change in law, regulation,
or administrative or judicial interpretation that is announced or becomes effective after the day on which the payment becomes due or is duly provided for, whichever occurs later; 

(6) to an estate, inheritance, gift, sales, excise, transfer, wealth or personal property tax or any similar tax, assessment or governmental
charge; 
 (7) to any tax, assessment or other governmental charge any paying agent (which term may include AT&T) must withhold from any
payment of principal of or interest on any Note, if such payment can be made without such withholding by any other paying agent; or 
 (8)
in the case of any combination of the above items. 
 In addition, any amounts to be paid on this Note will be paid net of any deduction or
withholding imposed or required pursuant to Sections 1471 through 1474 of the Code, any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or
regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code, and no Additional Amounts will be required to be paid on account of any
such deduction or withholding. 
 The Notes are subject in all cases to any tax, fiscal or other law or regulation or administrative or
judicial interpretation applicable. Except as specifically provided under this section entitled “Payment of Additional Amounts” and under the heading “Redemption Upon a Tax Event”, AT&T shall not have to make any payment with
respect to any tax, assessment or governmental charge imposed by any government or a political subdivision or taxing authority. 

  
 4 

 Any reference in the terms of the Notes to any amounts in respect of the Notes shall be
deemed also to refer to any Additional Amounts which may be payable under this provision. 
 Redemption Upon a Tax Event 

If (a) AT&T becomes or will become obligated to pay Additional Amounts as a result of any change in, or amendment to, the laws (or any
regulations or rulings promulgated thereunder) of the United States (or any political subdivision or taxing authority thereof or therein), or any change in, or amendments to, any official position regarding the application or interpretation of such
laws, regulations or rulings, which change or amendment is announced or becomes effective, on or after September 6, 2018 or (b) a taxing authority of the United States takes an action on or after September 6, 2018, whether or not with
respect to AT&T or any of its affiliates, that results in a substantial probability that AT&T will or may be required to pay such Additional Amounts, then AT&T may, at its option, redeem, as a whole, but not in part, the Notes on any
Interest Payment Date on not less than 30 nor more than 60 calendar days’ prior notice, at a redemption price equal to 100% of their principal amount, together with interest accrued thereon to the date fixed for redemption. No redemption
pursuant to (b) above may be made unless AT&T shall have received an opinion of independent counsel to the effect that an act taken by a taxing authority of the United States results in a substantial probability that AT&T will or may be
required to pay the Additional Amounts and AT&T shall have delivered to the Trustee a certificate, signed by a duly authorized officer, stating that based on such opinion, AT&T is entitled to redeem the Notes pursuant to their terms. 

Further Issues 
 AT&T
reserves the right from time to time, without notice to or the consent of the Holders of the Notes, to create and issue further notes ranking equally and ratably with the Notes in all respects, or in all respects except for the payment of interest
accruing prior to the issue date or except for the first payment of interest following the issue date of those further notes. Any further notes will have the same terms as to status, redemption or otherwise as, and will be fungible for United States
federal income tax purposes with, the Notes. Any further notes shall be issued pursuant to a resolution of the board of directors of AT&T, a supplement to the Indenture, or under an officers’ certificate pursuant to the Indenture. 

Notes in Definitive Form 

If (1) an Event of Default has occurred with regard to the Notes represented by this Note and has not been cured or waived in accordance
with the Indenture, or (2) the Depository is at any time unwilling or unable to continue as depository and a successor depository is not appointed by AT&T within 90 days, AT&T may issue notes in definitive form in exchange for this
Note. In either instance, an owner of a beneficial interest in the Notes will be entitled to the physical delivery in definitive form in exchange for this Note, equal in principal amount to such beneficial interest and to have such Notes registered
in its name. 

  
 5 

 Notes so issued in definitive form will be issued as registered notes in minimum
denominations of £100,000 and integral multiples of £1,000, unless otherwise specified by AT&T. 
 Notes so issued in
definitive form may be transferred by presentation for registration to the Registrar at its New York office and must be duly endorsed by the Holder or the Holder’s attorney duly authorized in writing, or accompanied by a written instrument or
instruments of transfer in form satisfactory to AT&T or the Trustee duly executed by the Holder or his attorney duly authorized in writing. 

AT&T may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any
exchange or registration of transfer of definitive Notes. 
 Default 

In case an Event of Default, as defined in the Indenture, shall have occurred and be continuing, the principal hereof may be declared, and upon
such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture. 

Miscellaneous 
 For
purposes of the Notes, the term “business day” means a business day in the City of New York or the City of London. 
 No director,
officer, employee or stockholder, as such, of AT&T shall have any liability for any obligations of AT&T under this Note, the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Holder
by accepting this Note waives and releases all such liability. The waiver and release are part of the consideration for the issue of this Note. 

The Notes are the unsecured and unsubordinated obligations of AT&T and will rank pari passu with all other evidences of
indebtedness issued in accordance with the Indenture. 
 Notices to holders of the Notes will be given only to the depositary, in accordance
with its applicable policies as in effect from time to time. 
 Prior to due presentment of this Note for registration of transfer,
AT&T, the Trustee and any agent of AT&T or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither AT&T, the Trustee nor any such agent
shall be affected by notice to the contrary. 

  
 6 

 All terms used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.  
 The Indenture and this Note shall be governed by and construed in accordance with the laws
of the State of New York. 

  
 7 

 SCHEDULE OF INCREASES OR DECREASES 

The initial principal amount of this Global Note is £750,000,000. The following increases or decreases in this Global Note have been
made: 
  

									
	 Date of
Exchange
	  	
Amount of
decrease in
Principal
Amount of this
Global Note
	  	
Amount of
increase in
Principal
Amount of this
Global Note
	  	 Principal amount
of this Global
Note
following
such decrease or
increase
	  	 Signature of
authorized
signatory of
Trustee
or
Securities
Custodian

	        	  		  		  		  	

  
 8Exhibit 10.1

 

 

 

 

 

Innoviva, Inc.

2000 Sierra Point Parkway, Suite 500

Brisbane, CA 94005

Marianne Zhen

[Address Intentionally Omitted]

September 7, 2018

Dear Marianne,

The purpose of this letter is to set forth the terms of the mutual understanding between Innoviva, Inc. (“Innoviva” or the “Company”) and you regarding the details of your promotion to the position of Chief Accounting Officer, reporting to Geoffrey Hulme.  Your salary on an annualized basis will be $275,000 effective as of July 27, 2018.  You will be eligible to receive an annual discretionary bonus of up to 45% of your annual salary, based on the Company’s performance against its annual goals and a review of your individual performance, and determined at the sole discretion of the Company’s Board of Directors (the “Board”) or its Compensation Committee (the “Committee”).  You must be an active employee in good standing at the time the bonus is paid in order to receive the bonus.  The Company’s bonus percentage targets may change from time to time at the sole discretion of the Board or the Committee.

In addition, you will have the opportunity to earn an aggregate of $12,500 in cash retention bonuses (together, the “Retention Bonus”).  The Retention Bonus will be earned upon the following Company filings with the Securities and Exchange Commission: (i) $5,000.00 upon the Company’s filing of the Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 and (ii) $7,500.00 upon the Company’s filing of the Annual Report on Form 10-K for the year ended December 31, 2018 (each such filing, a “Retention Date”), subject to your continuous employment with the Company through the applicable Retention Date.  To the extent earned, each bonus will be paid in a lump sum with the Company’s next regularly scheduled payroll following the applicable Retention Date.  This Retention Bonus opportunity will cease upon the earlier of your termination of employment (except as provided for below) or upon payment of the portion of the Retention Bonus for the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Subject to the approval of the appropriate committee of the Board and in consideration of services to be rendered by you, you will also be granted a restricted stock award (the “Restricted Stock Award”) for that number of shares of Innoviva’s Common Stock equal to $25,000 divided by the average closing price of Innoviva’s Common Stock for the fifteen (15) trading days ending August 28, 2018.  The Restricted Stock Award will be subject to the terms and conditions applicable to shares awarded under the Company’s 2012 Equity Incentive Plan (the “Plan”), as described in the Plan and the applicable Restricted Stock Agreement.  The shares underlying the Restricted Stock Award will vest in a series of installments as follows: 25% of the shares will vest on February 20, 2019 and the balance of the shares will vest in twelve (12) equal installments on each Company Vesting Date thereafter, provided you remain in continuous service through each such vesting date, and as described in the applicable Restricted Stock Agreement.  A “Company Vesting Date” means February 20, May 20, August 20 or November 20.

 

 

 

You will continue to be subject to the Company’s Proprietary Information and Inventions Agreement, which you previously signed, as well as the terms of the Company’s Employee Handbook.

While we hope that your employment with the Company will continue to be mutually satisfactory, your employment status will remain “at-will.”  As a result, both you and the Company are free to terminate the employment relationship at any time for any reason, with or without cause.  This is the full and complete agreement between us with respect to the nature of your employment status.  Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures to which you will be subject, may change from time to time, the “at-will” nature of your employment may only be changed in an express writing signed by you and a Director of the Company.  Notwithstanding the foregoing, in the event that you undergo an Involuntary Termination (as defined below) within three (3) months before or twenty-four (24) months after a Change in Control (as defined in the Plan), you will be eligible to receive: (i) 100% of your combined annual salary and target bonus; (ii) a pro-rata portion of your current target bonus based on the number of full months of employment completed in the applicable period on the date of termination in such year of termination; (iii) payment by the Company of your monthly premium under COBRA until the earlier of twelve (12) months following the month of termination, expiration of the COBRA continuation coverage or the date when you obtain new employment offering comparable health insurance coverage; (iv) full vesting of all of your unvested restricted stock and stock option awards; and (v) a lump sum payment of any then unpaid Retention Bonus (collectively, the “CIC Severance”).

Alternatively, in the event that your employment is terminated by the Company other than for Misconduct (as defined below) or by you with Good Reason (as defined below) and such termination, in either case, does not entitle you to the CIC Severance (i.e., such termination does not occur within three (3) months before or twenty-four (24) months after a Change in Control), you will be eligible to receive (i) a lump sum payment equal to 100% of your annual salary, payable within sixty (60) days after your employment terminates (or, if such period spans calendar years, then the payment will be made in the second calendar year); (ii) continued eligibility to receive a pro-rata bonus (based on the number of full months of employment completed in the year of termination) for the year of termination, subject to the terms and conditions of the Company’s bonus program in effect at the time of termination (other than continued employment) including the achievement of any performance conditions, payable at the same time as bonuses are paid to active employees; (iii) payment by the Company of your monthly premium under COBRA until the earlier of twelve (12) months following the month of termination, expiration of the COBRA continuation coverage or the date when you obtain new employment offering comparable health insurance coverage; and (iv) a lump sum payment of any then unpaid Retention Bonus (together with the CIC Severance, the “Severance”).

 

 

2

Your receipt of the Severance will be conditioned upon your execution, delivery to the Company and non-revocation of a general release of claims in a form acceptable to the Company within sixty (60) days following the date of your separation.  If you fail to return the release on or before the deadline set forth in the form of release, or if you revoke the release, then you will not be entitled to any Severance.  For the avoidance of doubt, your entitlement to the Severance, if any, pursuant to this letter is in lieu of, and not in addition to, any other severance that you may be eligible to receive pursuant to any other agreement, plan or policy of the Company or any of its affiliates.

For purposes of the above severance provisions, “separation” means a “separation from service,” as defined in the regulations under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).  To the extent the severance payment described in this letter is deemed to be nonqualified deferred compensation that is subject to Section 409A of the Code and if the Company determines that you are a “specified employee” under Section 409A(a)(2)(B)(i) of the Code at the time of your separation, then the severance payment will be made on the first business day following (i) expiration of the six (6) month period measured from your separation or (ii) the date of your death.

The following definitions will apply for purposes of this letter:

	
(a)

	
“Good Reason” shall mean, without your consent, the relocation of your principal place of employment to a location that is more than fifty (50) miles from [address intentionally omitted]; provided, however, that in order to terminate your employment with Good Reason, you must provide the Company thirty (30) days’ written notice, which written notice, to be effective, must be provided to the Company within thirty (30) days of the occurrence of the event that constitutes Good Reason.  During such thirty (30) day notice period, the Company shall have a cure right, and if not cured within such period, your termination will be effective upon the expiration of such cure period.

	
(b)

	
“Involuntary Termination” shall mean a termination of your employment which occurs by reason of:

	
·

	
your involuntary dismissal or discharge by the Company for reasons other than Misconduct, or

	
·

	
your voluntary resignation following, without your consent, (i) a material diminution in your authority, duties or responsibilities, (ii) a material reduction in your base compensation, (iii) relocation of your principal place of employment to a location that is more than fifty (50) miles from [address intentionally omitted] or (iv) any other action or inaction that constitutes a material breach by the Company of this letter agreement; provided, however, that in order to terminate your employment under this clause, you must provide the Company thirty (30) days’ written notice, which written notice, to be effective, must be provided to the Company within thirty (30) days of the occurrence of the event that constitutes one or more of the conditions set forth in subclauses (i) through (iv).  During such thirty (30) day notice period, the Company shall have a cure right, and if not cured within such period, your termination will be effective upon the expiration of such cure period.

 

 

3

 

 

	
(c)

	
“Misconduct” shall mean the commission of any material act of fraud, embezzlement or dishonesty by you, any material unauthorized use or disclosure by you of confidential information or trade secrets of the Company (or any parent or subsidiary of the Company), or any other intentional material misconduct by you adversely affecting the business or affairs of the Company (or any parent or subsidiary of the Company).

* * *

[Remainder of Page Intentionally Blank]

 

 

 

 

 

4

This letter sets forth the terms of your employment with us and supersedes any prior representations or agreements, whether written or oral.  A duplicate original of this letter is enclosed for your records.  To accept these terms, please sign and return this letter to me.

Sincerely,

Innoviva, Inc.

_/s/ Geoffrey Hulme   __________________

By:  Geoffrey Hulme

Title:  Interim Principal Executive Officer

Acknowledged and Agreed as of this 7th day of September, 2018:

Signature: /s/ Marianne Zhen                            

                 Marianne Zhen

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