Document:

Exhibit 10.3

 

SERVICING AGREEMENT

 

 

dated as of February 28, 2020

 

 

between

 

 

TRIPLE ROYALTY SUB II LLC

 

 

and

 

 

THERAVANCE BIOPHARMA US, INC.

 

 

    

     

    

 

Table of Contents

 

	 	 	Page
	ARTICLE
    I 

    RULES OF CONSTRUCTION AND DEFINED TERMS	 	 
	 	 	 
	Section
    1.1     Defined Terms and Rules of Construction	 	 	1
	 	 	 	 
	ARTICLE
    II 

    SERVICING FEES AND EXPENSES	 	 	 
	 	 	 	 
	Section
    2.1     Servicing Fee	 	 	2
	Section
    2.2     Servicer Expenses	 	 	2
	 	 	 	 
	ARTICLE
    III 

    SERVICING	 	 	 
	 	 	 	 
	Section
    3.1     Designation and Duties of Servicer; Issuer as Replacement Servicer	 	 	2
	Section
    3.2     Rights of Servicer	 	 	8
	Section
    3.3     Responsibilities of Servicer	 	 	8
	 	 	 	 
	ARTICLE
    IV 

    REPRESENTATIONS AND WARRANTIES	 	 	 
	 	 	 	 
	Section
    4.1     Representations and Warranties of Servicer	 	 	9
	Section
    4.2     Representations and Warranties of Issuer	 	 	11
	 	 	 	 
	ARTICLE
    V 

    INDEMNIFICATION	 	 	 
	 	 	 	 
	Section
    5.1     Indemnification by Servicer	 	 	12
	 	 	 	 
	ARTICLE
    VI 

    MISCELLANEOUS	 	 	 
	 	 	 	 
	Section
    6.1     Notices	 	 	12
	Section
    6.2     GOVERNING LAW	 	 	14
	Section
    6.3     Waiver of Jury Trial	 	 	14
	Section
    6.4     Counterparts	 	 	14
	Section
    6.5     Amendment	 	 	15
	Section
    6.6     Severability of Provisions	 	 	15
	Section
    6.7     Binding Effect; Assignability; Survival	 	 	15
	Section
    6.8     Acknowledgement and Agreement	 	 	15
	Section
    6.9     Cumulative Remedies	 	 	16
	Section
    6.10   Costs and Expenses	 	 	16
	Section
    6.11   No Proceedings	 	 	16
	Section
    6.12   Consent to Jurisdiction	 	 	16

 

    i

     

    

 

	Section
    6.13   Termination	 	 	17
	Section
    6.14   Limited Recourse	 	 	17
	Section
    6.15   Table of Contents and Headings	 	 	18
	Section
    6.16   Distribution Reports	 	 	18
	 	 	 	 

	Annex A	 	Rules of Construction and Defined Terms

 

    ii

     

    

 

SERVICING AGREEMENT

 

This SERVICING AGREEMENT,
dated as of February 28, 2020 (this “Servicing Agreement”), is entered into between Triple Royalty Sub II LLC,
a Delaware limited liability company, as the issuer (the “Issuer”), and Theravance Biopharma US, Inc. (“Theravance
Biopharma US”), a Delaware corporation, as the servicer (together with its permitted successors and assigns in such capacity,
the “Servicer”).

 

W I T N E S S E T H

 

WHEREAS, the Issuer
is a party to the Sale and Contribution Agreement, dated as of the Closing Date, by and among Theravance Biopharma R&D, Inc.
(“Theravance Biopharma R&D”), as the transferor (in such capacity, the “Transferor”),
the Issuer, as the transferee (in such capacity, the “Transferee”), and solely with respect to Articles V and
IX and Sections 6.7, 8.2, 8.3 and 8.4 thereof, Theravance Biopharma, Inc. (“Theravance Biopharma”), a Cayman
Islands exempted company, pursuant to which the Transferor has sold and contributed to the Transferee all of the Transferor’s
right, title and interest as a holder of the Issuer Class C Units, including the Issuer Class C Units and any and all of the economic
rights and governance, voting and other consensual rights that may arise as a holder of the Issuer Class C Units under the TRC
LLC Agreement; provided, however, that the distribution of net cash payments to the Issuer from Theravance Respiratory
Company, LLC, a Delaware limited liability company (“TRC LLC”), will commence with the payment related to the
payment of royalties by GSK to TRC LLC in the first fiscal quarter of 2020; and

 

WHEREAS, the Issuer
desires that Theravance Biopharma US act as the Servicer and monitor, manage and administer, on behalf of the Issuer, the Issuer’s
rights and obligations as a holder of the Issuer Class C Units in TRC LLC and the collection of all of the Class C Distributions
pursuant to the TRC LLC Agreement, on the terms and conditions set forth in this Servicing Agreement; and Theravance Biopharma
US desires to perform such duties subject to the terms and conditions hereof.

 

NOW, THEREFORE, in
consideration of the premises and the mutual agreements set forth herein and of other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto covenant and agree as follows:

 

ARTICLE
I

RULES OF CONSTRUCTION AND DEFINED TERMS

 

Section 1.1     Defined Terms and Rules of Construction. Capitalized terms used but not otherwise defined in this Servicing Agreement
shall have the respective meanings given to such terms in Annex A attached hereto, which is hereby incorporated by reference
herein. The rules of construction set forth in Annex A attached hereto shall apply to this Servicing Agreement and are hereby
incorporated by reference herein. Not all terms defined in Annex A are used in this Servicing Agreement.

 

    

     

    

 

ARTICLE
II

SERVICING FEES AND EXPENSES

 

Section 2.1     Servicing Fee. The fee to be paid for the Servicer’s performance of the services to be performed under this
Servicing Agreement (“Servicing Fee”) is equal to $25,000 per calendar quarter, payable out of the Available
Collections Amount in accordance with the terms of the Indenture, which the Servicer and the Issuer agree is fair consideration
for the services to be performed under this Servicing Agreement as agreed at arm’s length by the Servicer and the Issuer.
On each Payment Date, pursuant to Section 3.6 of the Indenture, the Issuer shall pay to the Servicer the Servicing Fee for the
performance by the Servicer of the services to be performed under this Servicing Agreement; provided, that any Servicing
Fee payable on any Payment Date following less than a full quarter shall be payable on a pro rata basis.

 

Section 2.2     Servicer Expenses. On each Payment Date, the Issuer shall, in addition to the payment of the Servicing Fee pursuant
to Section 2.1, reimburse the Servicer for any reasonable and documented out-of-pocket costs and expenses that are incurred
by the Servicer in the performance of its servicing obligations, which shall constitute Administrative Expenses under the Transaction
Documents and shall be paid to the Servicer or third parties pursuant to Section 3.6 of the Indenture following presentation by
the Servicer to the Calculation Agent (with copies to the Trustee) of documentation supporting the incurrence and amount of such
expenses.

 

ARTICLE
III

SERVICING

 

Section 3.1      Designation and Duties of Servicer; Issuer as Replacement Servicer.

 

(a)      The Issuer hereby designates Theravance Biopharma US as initial Servicer, and Theravance Biopharma US hereby agrees to perform
the duties and obligations of the Servicer on the terms and conditions of this Servicing Agreement.

 

(b)      The Issuer hereby appoints the Servicer, from time to time designated pursuant to this Section 3.1, as agent to monitor,
manage and administer, on behalf of the Issuer, the Issuer’s rights and obligations as a holder of the Issuer Class C Units
in TRC LLC and the collection of all of the Class C Distributions pursuant to the TRC LLC Agreement, the enforcement of the Issuer’s
rights and interests in the Issuer’s rights and obligations under the TRC LLC Agreement, and the exercise of the authority
granted by the Issuer to the Servicer pursuant to Section 3.2.

 

(c)      The Issuer (for so long as the Notes are Outstanding, only with the consent of the Trustee, who shall consent only upon
the Direction of the Controlling Party) or the Trustee (who shall act only upon the Direction of the Controlling Party) shall,
at any time upon the occurrence of a Servicer Termination Event, designate the Issuer as replacement Servicer and the Issuer shall
assume the role of Servicer; provided, that the Issuer shall be permitted to hire employees, including employees of the
initial Servicer to perform the duties and obligations of the Servicer in accordance with this Servicing Agreement. A “Servicer
Termination Event” shall mean any one of the following events:

 

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(i)       Theravance Biopharma US or any wholly-owned subsidiary of Theravance Biopharma that has become the Servicer in accordance
with this Servicing Agreement, including in connection with the Restructuring, resigns as Servicer in accordance with the terms
of this Servicing Agreement other than in connection with the assumption of the role of Servicer by any other wholly-owned subsidiary
of Theravance Biopharma;

 

(ii)      the
Servicer fails to pay any amount when due under this Servicing Agreement and such failure continues unremedied for five Business
Days;

 

(iii)     the
Servicer fails to deliver the Distribution Report and the other required accompanying materials with respect to any Payment Date
in accordance with the provisions of this Servicing Agreement within five Business Days of the date such Distribution Report and
the other required accompanying materials are required to be delivered under this Servicing Agreement; provided, however,
that the Servicer shall have received in a timely manner any Calculation Report (unless the failure to receive such Calculation
Report was due to the breach by the Servicer of Section 3.1(f)(iv));

 

(iv)     the
Servicer fails to carry out its obligations under Section 3.1(f)(ii) that shall have or reasonably be expected to have
a material adverse effect on the Noteholders;

 

(v)     the
Servicer fails to carry out its obligations under Section 3.1(f)(vi) or Section 3.1(f)(vii);

 

(vi)    the Servicer fails to observe or perform in any material respect any of the covenants or agreements on the part of the Servicer
contained in this Servicing Agreement (other than any for which provision is made in clauses (i) through (v) above) and such failure
continues unremedied for a period of thirty (30) days after the date on which written notice of such failure requiring the same
to be remedied shall have been given to the Servicer by the Trustee, and such failure continues to materially adversely affect
the Noteholders for such period;

 

(vii)   (A)
an admission in writing by the Servicer of its inability to pay its debts generally or a general assignment by the Servicer for
the benefit of creditors, (B) the filing of any petition or answer by the Servicer seeking to adjudicate itself as bankrupt or
insolvent, or seeking for itself any liquidation, winding-up, reorganization, arrangement, adjustment, protection, relief or composition
of the Servicer or its debts under any Applicable Law relating to bankruptcy, insolvency, receivership, winding-up, liquidation,
reorganization, examination, relief of debtors or other similar Applicable Law now or hereafter in effect, or seeking, consenting
to or acquiescing in the entry of an order for relief in any case under any such Applicable Law, or the appointment of or taking
possession by a receiver, trustee, custodian, liquidator, examiner, assignee, sequestrator or other similar official for the Servicer
or for any substantial part of its property, or (C) corporate or other action taken by the Servicer to authorize any of the actions
set forth in clause (A) or clause (B) above;

 

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(viii)  without
the consent or acquiescence of the Servicer, the entering of an order for relief or approving a petition for relief or reorganization
or any other petition seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or other similar
relief under any present or future bankruptcy, insolvency or similar Applicable Law, or the filing of any such petition against
the Servicer, or, without the consent or acquiescence of the Servicer, the entering of an order appointing a trustee, custodian,
receiver or liquidator of the Servicer or of all or any substantial part of the property of the Servicer, in each case where such
petition or order shall remain unstayed or shall not have been stayed or dismissed within 90 days from entry thereof;

 

(ix)      the Servicer’s business activities are terminated by any Governmental Authority;

 

(x)      a
material adverse change occurs in the financial condition or operations of the Servicer that is a Material Adverse Change with
respect to the ability of the Servicer to perform its obligations under this Servicing Agreement; provided, that no transfer
or disposition in connection with the Restructuring shall constitute a material adverse change in the financial condition or operations
of the Servicer that is a Material Adverse Change with respect to the ability of the Servicer to perform its obligations under
this Servicing Agreement;

 

(xi)     an Event of Default has occurred, other than an Event of Default solely caused by the Trustee, the Calculation Agent, the
Paying Agent, the Transfer Agent or the Registrar failing to perform any of its respective obligations under any Transaction Document;
or

 

(xii)    so
long as Theravance Biopharma US is the Servicer, Theravance Biopharma or Theravance Biopharma R&D sells, contributes, assigns,
transfers or conveys any of the Capital Securities in Theravance Biopharma US or the Issuer, as applicable, to another Person
or Persons that are not wholly-owned by Theravance Biopharma; provided, that it will not be a Servicer Termination Event
if all of the Capital Securities in the Issuer are transferred in connection with the Restructuring or are owned by a Person who
succeeds to all or substantially all of the assets of Theravance Biopharma whether by merger, sale of stock, sale of assets or
other similar transaction.

 

(d)      If the Issuer or a wholly-owned subsidiary of Theravance Biopharma is designated as the replacement Servicer, Theravance
Biopharma US shall deliver to such replacement Servicer, and Theravance Biopharma US shall segregate and hold in trust for such
replacement Servicer, all records that evidence or relate to the servicing of the Issuer’s rights and obligations under the
TRC LLC Agreement. Theravance Biopharma US shall indemnify the replacement Servicer for the reasonable fees incurred in connection
with the performance of the services specified in this Servicing Agreement, in each case solely to the extent in excess of the
Servicing Fee.

 

(e)      On
and after the Closing Date, the Servicer shall perform the following cash management duties:

 

    4

     

    

 

(i)       direct Innoviva to cause TRC LLC to deposit into the Collection Account the Class C Distributions;

 

(ii)      establish
and maintain in the name and on behalf of the Issuer with the Trustee pursuant to Section 3.1 of the Indenture, subject to the
Liens established under the Indenture, (i) the Collection Account and (ii) any additional accounts the establishment of which
is set forth in a Resolution delivered by the Issuer to the Servicer and the Trustee, in each case at such time as is set forth
in Section 3.1 of the Indenture or in such Resolution; provided, that each Account shall be established and maintained
as an Eligible Account so as to create, perfect and establish the priority of the Liens established under the Indenture in such
Account and all cash, Eligible Investments and other property from time to time deposited therein and otherwise to effectuate
the Liens under the Indenture;

 

(iii)     if
at any time any Class C Distribution is deposited into any account under the control of the Servicer other than the Collection
Account, the Servicer shall withdraw such funds within two (2) Business Days and deposit them into the Collection Account; and

 

(iv)     if at any time any amount is deposited into the Collection Account in error, the Servicer shall withdraw such funds within
two (2) Business Days.

 

(f)       The Servicer shall monitor, manage and administer on behalf of the Issuer the Issuer’s rights and obligations under
the Indenture, including:

 

(i)       prepare the Distribution Reports described in Section 2.13(a) of the Indenture as and when required by the Indenture and
the analysis of Collection Account activity described in Section 2.13(b) of the Indenture, using the Calculation Report provided
by the Calculation Agent pursuant to Section 3.4(b) of the Indenture, and, not later than 3:00 p.m., New York City time, on the
Business Day immediately preceding each Payment Date, make copies of such Distribution Reports and analysis available to the Issuer
and to the Trustee (by electronic mail or through a secure password-protected website) for distribution only to Noteholders and
Beneficial Holders that have executed and delivered to the Registrar a Confidentiality Agreement that includes the certification
that they are not Restricted Parties; provided, however, that the Servicer’s obligations under this Section
3.1(f)(i) shall be subject to the condition precedent that the Servicer shall have received in a timely manner such Calculation
Report (unless the failure to receive such Calculation Report was due to the breach by the Servicer of Section 3.1(f)(iv));

 

(ii)      accept
all reports, Notices, requests, demands, certificates, financial statements or other instruments, information and other materials
provided to the Servicer pursuant to Section 5.3 of the Indenture and, subject to applicable confidentiality obligations, to the
extent not otherwise provided by the Issuer, provide to the Trustee summaries and/or copies of such reports, Notices, requests,
demands, certificates, financial statements or other instruments, information and other materials for inclusion with the Distribution
Reports;

 

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(iii)     provide the investment directions to the Trustee contemplated by Section 3.2 of the Indenture and advise the Trustee in
writing of any depositary institution or trust company described in the proviso to the definition of Eligible Investments;

 

(iv)    provide the Calculation Agent with the amount on deposit in the Collection Account on each Calculation Date and the calculation
of the amount of Administrative Expenses and Taxes owed by the Issuer, if any, to be made on any Payment Date (or any other date),
together with supporting documentation used in determining such Administrative Expenses and Taxes owed by the Issuer, as applicable;

 

(v)     on
behalf of the Issuer, in accordance with Section 5.2(v) of the Indenture, during any period in which Theravance Biopharma, Theravance
Biopharma US or the Issuer is not subject to Section 13 or 15(d) of the Exchange Act, make available to any Noteholder or Beneficial
Holder in connection with any sale of any or all of its Notes and any prospective purchaser of such Notes from such Noteholder
or Beneficial Holder the information required by Rule 144A(d)(4) under the Securities Act, to the extent in the possession of
the Servicer; provided, that such Noteholder, Beneficial Holder or prospective purchaser, as applicable, has executed a
Confidentiality Agreement that includes a certification that such Noteholder, Beneficial Holder or prospective purchaser, as applicable,
is not a Restricted Party;

 

(vi)    upon receipt of a Confidentiality Agreement from the Registrar pursuant to Section 2.11(k) of the Indenture that includes
the certification from the proposed transferee named therein that they are not Restricted Parties, promptly (but in no event later
than three (3) Business Days thereafter) send to the proposed transferee a copy of any offering material used in respect of any
issuance of Subordinated Notes or Refinancing Notes, which shall not be updated, on behalf of the potential selling Noteholder;

 

(vii)   subject to applicable confidentiality obligations, upon written request, furnish to each requesting Beneficial Holder that
has executed and delivered to the Registrar a Confidentiality Agreement that includes the certification that it is not a Restricted
Party, at the cost and expense of such requesting Beneficial Holder, promptly upon receipt thereof, duplicates or copies of all
reports, Notices, requests, demands, certificates, financial statements and other instruments furnished to the Servicer under this
Servicing Agreement;

 

(viii)  exercise
the Issuer’s rights and perform the Issuer’s obligations (other than payment obligations) under the other Transaction
Documents, including the Issuer’s obligation to comply with Section 5.2(y) of the Indenture; and

 

(ix)     take such other actions as shall be reasonably necessary or appropriate to perform the foregoing duties.

 

(g)      The
Servicer shall monitor, manage and administer on behalf of the Issuer the Issuer’s rights and obligations as a holder of
the Issuer Class C Units in TRC LLC under the TRC LLC Agreement, including:

 

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(i)       monitoring the timing and amount of the payments distributed or paid to the Issuer by TRC LLC pursuant to the TRC LLC Agreement;

 

(ii)      monitoring
the performance by TRC LLC of its other obligations under the TRC LLC Agreement;

 

(iii)     monitoring
the performance by Innoviva, as manager of TRC LLC, of its rights and obligations under the TRC LLC Agreement, including the obligation
of Innoviva to direct TRC LLC to deposit into the Collection Account the Class C Distributions; and

 

(iv)    ensuring
that the Issuer (A) enforces its rights and remedies under the TRC LLC Agreement and (B) performs its obligations under the TRC
LLC Agreement in a timely manner, in each case only to the extent that the failure to do so would be reasonably expected to have
a direct or indirect material and adverse effect on Theravance Biopharma’s or its permitted transferees’, successors’
and permitted assigns’ (as applicable), including Theravance Biopharma R&D’s and the Issuer’s rights or
obligations under the TRC LLC Agreement to the extent relating to the Issuer Class C Units.

 

(h)      The
Servicer shall monitor, manage and administer on behalf of the Issuer the Issuer’s rights and obligations relating to the
transactions contemplated by any Transaction Document, the Transferred Assets or the TRC LLC Agreement, including:

 

(i)       subject to applicable confidentiality obligations, promptly (but in no event more than five (5) Business Days) after receipt
by the Servicer of notice of any action, suit, claim, demand, dispute, investigation, arbitration or other proceeding (commenced
or threatened) relating to the transactions contemplated by any Transaction Document, the Transferred Assets or the TRC LLC Agreement
or any default or termination by Innoviva under the TRC LLC Agreement, the Servicer shall (A) inform the Issuer in writing of the
receipt of such notice and the substance thereof and (B) if such notice is in writing, furnish the Issuer with a copy of such notice
and any related materials with respect thereto;

 

(ii)      the
Servicer shall keep and maintain, or cause to be kept and maintained, at all times full and accurate books and records adequate
to reflect accurately all financial information it has received, and all amounts paid or received under the TRC LLC Agreement,
with respect to the Class C Distributions;

 

(iii)     subject
to applicable confidentiality obligations, promptly (but in no event more than five (5) Business Days) following receipt by the
Servicer of any written notice, certificate, offer, proposal, correspondence, report or other communication relating to the TRC
LLC Agreement or the Transferred Assets, the Servicer shall (A) inform the Issuer in writing of such receipt and (B) furnish the
Issuer with a copy of such notice, certificate, offer, proposal, correspondence, report or other communication;

 

(iv)    the
Servicer shall provide the Issuer with written notice as promptly as practicable (and in any event within five (5) Business Days)
after becoming aware of any of the following: (A) the occurrence of a bankruptcy event in respect of the Servicer; (B) subject
to applicable confidentiality obligations, any breach or default by the Servicer of or under any covenant, agreement or other
provision of any Transaction Document to which it is party; (C) subject to applicable confidentiality obligations, any representation
or warranty made by the Servicer in any of the Transaction Documents or in any certificate delivered to the Issuer pursuant to
the Sale and Contribution Agreement shall prove to be untrue or inaccurate in any material respect on the date as of which made;
or (D) subject to applicable confidentiality obligations, any change, effect, event, occurrence, state of facts, development or
condition that would be a Material Adverse Change; and

 

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(v)     subject
to applicable confidentiality restrictions and Applicable Laws relating to securities matters, the Servicer shall make available
such other information as the Issuer may, from time to time, reasonably request with respect to (A) the Transferred Assets
or (B) the condition or operations, financial or otherwise, of the Servicer that are reasonably likely to impact or affect the
performance of the Servicer’s obligations hereunder or the Servicer’s compliance with the terms, provisions and conditions
of the Sale and Contribution Agreement.

 

(i)       After
the occurrence of any Servicer Termination Event, (x) if such event is capable of being cured, within thirty (30) days of failure
to so cure or waive such event, or (y) if such event is not capable of being cured, as soon as possible after (and in any
event within five (5) Business Days of) the occurrence thereof, the Servicer shall furnish to the Trustee a statement of an officer
of the Servicer setting forth the details of such Servicer Termination Event and the action that the Servicer has taken and proposes
to take with respect thereto.

 

Section 3.2     Rights of Servicer.

 

(a)      The
Issuer hereby authorizes the Servicer or its designees to take any and all steps in the Issuer’s name necessary or desirable,
in its determination, to collect all amounts due under or in respect of any and all of the Transferred Assets, including endorsing
the name of the Issuer on checks and other instruments representing the Class C Distributions and, to the extent that it is permitted
and necessary to do so in the Issuer’s name, enforcing the provisions of the TRC LLC Agreement that concern payment and/or
enforcement of rights to payment.

 

(b)      The Issuer hereby grants to the Servicer an irrevocable power of attorney, with full power of substitution, coupled with
an interest, to take in the name of the Issuer all steps necessary or advisable to endorse, negotiate or otherwise realize on any
instrument or writing or other right of any kind held or transmitted by the Issuer, or transmitted or received by the Issuer, in
connection with any of the Transferred Assets.

 

Section 3.3     Responsibilities
of Servicer. Anything herein to the contrary notwithstanding:

 

(a)      the Servicer shall perform its obligations hereunder, and the exercise by the Issuer or its designee of its rights hereunder
shall not relieve the Servicer from such obligations;

 

(b)      the Servicer shall not have any obligation or liability to TRC LLC or Innoviva or any other Person other than the Issuer
and, except as expressly provided for hereunder, with respect to any of the Issuer’s rights and obligations under the TRC
LLC Agreement or any related agreements, nor shall the Servicer be obligated to perform any of the obligations of any of them thereunder;

 

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(c)      the
Servicer agrees to be bound by the provisions of the Sale and Contribution Agreement to the extent it receives Confidential Information
pursuant to this Servicing Agreement or any other Transaction Document;

 

(d)      the Servicer shall perform its obligations under this Servicing Agreement in accordance with its reasonable and prudent
servicing procedures for servicing assets comparable to the Issuer’s rights and obligations under the TRC LLC Agreement for
its own account or for others and in any event with such care as a reasonably prudent servicer would use to service and administer
the Issuer’s rights and obligations under the TRC LLC Agreement and not in violation of the Issuer’s obligations under
the Transaction Documents; provided, however, the Servicer shall not be obligated to use separate servicing procedures,
offices, employees or accounts for servicing the Issuer’s rights and obligations under the TRC LLC Agreement from the procedures,
offices, employees and accounts used by the Servicer in connection with servicing other assets comparable to the Issuer’s
rights and obligations under the TRC LLC Agreement; and

 

(e)      the
Servicer and any member, director, officer, employee or agent of the Servicer may rely in good faith on any document of any kind
prima facie properly executed and submitted by the appropriate Person respecting any matters arising under the Transaction Documents.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES

 

Section 4.1     Representations
and Warranties of Servicer. The Servicer hereby represents and warrants to the Issuer as of the date hereof as follows:

 

(a)      Organization. The Servicer has been duly incorporated with limited liability and is validly existing and in good standing
under the laws of the Cayman Islands and has all power and authority, and all licenses, permits, franchises, authorizations, consents
and approvals of all Governmental Authorities, required to own its property and conduct its business as now conducted and to exercise
its rights and to perform its obligations under this Servicing Agreement. The Servicer is duly qualified to transact business and
is in good standing in every jurisdiction in which such qualification or good standing is required by Applicable Law (except where
the failure to be so qualified or in good standing would not have a Material Adverse Effect).

 

(b)      No
Conflicts. None of the execution and delivery by the Servicer of any of the Transaction Documents to which the Servicer is party,
the performance by the Servicer of the obligations contemplated hereby or thereby or the consummation of the transactions contemplated
hereby or thereby will: (i) contravene, conflict with, result in a breach, violation, cancellation or termination of, constitute
a default (with or without notice or lapse of time, or both) under, require prepayment under, give any Person the right to exercise
any remedy or obtain any additional rights under, or accelerate the maturity or performance of or payment under, in any respect,
(A) any Applicable Law or any judgment, order, writ, decree, permit or license of any Governmental Authority to or by which the
Servicer or any of its assets or properties may be subject or bound, except where such violation would not have a Material Adverse
Effect, (B) any contract, agreement, indenture, lease, license, deed, binding obligation or instrument to which the Servicer is
a party or by which the Servicer or any of its assets or properties is bound, except where such violation would not have a Material
Adverse Effect or (C) the memorandum and articles of association of the Servicer; (ii) give rise to any additional right of termination,
cancellation or acceleration of any right or obligation of the Servicer, except where such additional right of termination, cancellation
or acceleration would not have a Material Adverse Effect; or (iii) except as provided in any of the Transaction Documents to which
it is party, result in or require the creation or imposition of any Lien by the Servicer on any assets or properties of the Servicer
and the Servicer’s rights thereunder.

 

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(c)      Authorization.
The Servicer has all power and authority to execute and deliver, and perform its obligations under, the Transaction Documents
to which it is party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of each of
the Transaction Documents to which the Servicer is party and the performance by the Servicer of its obligations hereunder and
thereunder have been duly authorized by the Servicer. Each of the Transaction Documents to which the Servicer is party has been
duly executed and delivered by the Servicer. Each of the Transaction Documents to which the Servicer is party constitutes the
legal, valid and binding obligation of the Servicer, enforceable against the Servicer in accordance with its respective terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar Applicable Laws affecting creditors’
rights generally, general equitable principles and principles of public policy.

 

(d)      Governmental
and Third Party Authorizations. The execution and delivery by the Servicer of the Transaction Documents to which the Servicer
is party, the performance by the Servicer of its obligations hereunder and thereunder and the consummation of any of the transactions
contemplated hereunder and thereunder do not require any consent, approval, license, order, authorization or declaration from,
notice to, action or registration by or filing with any Governmental Authority, except for the filing of a Current Report on Form
8-K with the SEC, the filing of UCC financing statements and those previously obtained.

 

(e)      Investment
Company Status. Assuming the accuracy of the representations and warranties of the initial purchasers of the Original Notes in
the Note Purchase Agreements and compliance by the initial purchasers of the Original Notes and any subsequent purchaser of the
Original Notes with the requirements set forth in the Indenture, the Servicer is not, and, after giving effect to the use of proceeds
as contemplated by the applicable Transaction Documents, would not be, required to register as an investment company under the
Investment Company Act.

 

(f)       No Litigation. There is no action, suit, arbitration proceeding, claim, demand, citation, summons, subpoena, other proceeding
or, to the knowledge of the Servicer, investigation pending or, to the knowledge of the Servicer, threatened that challenges or
seeks to prevent or delay the consummation of the transactions contemplated by the Transaction Documents to which the Servicer
is party.

 

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Section 4.2     Representations and Warranties of Issuer. The Issuer hereby represents and warrants to the Servicer as of the date
hereof as follows:

 

(a)      Organization.
The Issuer is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware
and has all power and authority, and all licenses, permits, franchises, authorizations, consents and approvals of all Governmental
Authorities, required to own its property and conduct its business as now conducted and to exercise its rights and to perform
its obligations under the TRC LLC Agreement. The Issuer is duly qualified to transact business and is in good standing in every
jurisdiction in which such qualification or good standing is required by Applicable Law (except where the failure to be so qualified
or in good standing would not have a Material Adverse Effect).

 

(b)      No Conflicts. None of the execution and delivery by the Issuer of any of the Transaction Documents to which the Issuer is
party, the performance by the Issuer of the obligations contemplated hereby or thereby or the consummation of the transactions
contemplated hereby or thereby will (i) contravene, conflict with, result in a breach, violation, cancellation or termination of,
constitute a default (with or without notice or lapse of time, or both) under, require prepayment under, give any Person the right
to exercise any remedy or obtain any additional rights under, or accelerate the maturity or performance of or payment under, in
any respect, (A) any Applicable Law or any judgment, order, writ, decree, permit or license of any Governmental Authority to or
by which the Issuer or any of its assets or properties may be subject or bound, except where such violation would not have a Material
Adverse Effect, (B) any contract, agreement, indenture, lease, license, deed, binding obligation or instrument to which the Issuer
is a party or by which the Issuer or any of its assets or properties is bound, except where such violation would not have a Material
Adverse Effect or (C) any of the organizational documents of the Issuer; or (ii) give rise to any additional right of termination,
cancellation or acceleration of any right or obligation of the Issuer, except where such additional right of termination, cancellation
or acceleration would not have a Material Adverse Effect.

 

(c)      Authorization.
The Issuer has all power and authority to execute and deliver, and perform its obligations under, the Transaction Documents to
which the Issuer is party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of each
of the Transaction Documents to which the Issuer is party and the performance by the Issuer of its obligations hereunder and thereunder
have been duly authorized by the Issuer. Each of the Transaction Documents to which the Issuer is party has been duly executed
and delivered by the Issuer. Each of the Transaction Documents to which the Issuer is party constitutes the legal, valid and binding
obligation of the Issuer, enforceable against the Issuer in accordance with its respective terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or similar Applicable Laws affecting creditors’ rights generally, general equitable
principles and principles of public policy.

 

(d)      Governmental
and Third Party Authorizations. The execution and delivery by the Issuer of the Transaction Documents to which the Issuer is party,
the performance by the Issuer of its obligations hereunder and thereunder and the consummation of any of the transactions contemplated
hereunder and thereunder do not require any consent, approval, license, order, authorization or declaration from, notice to, action
or registration by or filing with any Governmental Authority, except for the filing of UCC financing statements and those previously
obtained.

 

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(e)      No
Litigation. There is no action, suit, arbitration proceeding, claim, demand, citation, summons, subpoena, other proceeding or,
to the knowledge of the Issuer, investigation pending or, to the knowledge of the Issuer, threatened that challenges or seeks
to prevent or delay the consummation of the transactions contemplated by the Transaction Documents to which the Issuer is a party.

 

ARTICLE
V

INDEMNIFICATION

 

Section 5.1     Indemnification
by Servicer. Without limiting any other rights that the Issuer may have hereunder or under Applicable Law, the Servicer hereby
agrees to indemnify each Transferee Indemnified Party from and against any and all Losses (including attorneys’ fees) awarded
against or incurred by any of them arising out of or as a result of the failure of the Servicer to perform its obligations under
this Servicing Agreement, excluding, however, (a) Losses to the extent resulting from bad faith, gross negligence or willful
misconduct on the part of any Transferee Indemnified Party, (b) any Tax based upon or measured by net income or gross receipts,
(c) normal and customary expenses incurred in the ordinary course of business in the administration of this Servicing Agreement,
(d) where such failure of the Servicer results from the failure of any Person other than the Servicer to perform any of its obligations
under any of the Transaction Documents or (e) Losses resulting from the Servicer’s acts or omissions based upon written
instructions from any other Person.

 

ARTICLE
VI

MISCELLANEOUS

 

Section 6.1     Notices. All Notices shall be in writing and shall be effective (a) upon receipt when sent through the mails,
registered or certified mail, return receipt requested, postage prepaid, with such receipt to be effective the date of delivery
indicated on the return receipt, (b) upon receipt when sent by an overnight courier, (c) on the date personally delivered to an
authorized officer of the party to which sent, (d) on the date transmitted by facsimile or other electronic transmission with a
confirmation of receipt or (e) in the case of any report that is of a routine nature, on the date sent by first class mail or overnight
courier or transmitted by facsimile or other electronic transmission, in all cases, with a copy emailed to the recipient at the
applicable address, addressed to the recipient as follows:

 

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if to the Issuer, to:

Triple Royalty Sub II LLC

c/o Theravance Biopharma US, Inc.

901 Gateway Boulevard

South San Francisco, CA 94080

Attention: Brett A. Grimaud, Vice President and Assistant Secretary

Telephone: (650) 808-3785

Facsimile: (650) 808-6095

Email: BGrimaud@theravance.com

 

With a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, NY 10036

Attention: Andrew M. Faulkner

Telephone: (212) 735-2853

Facsimile: (917) 777-2853

E-Mail: andrew.faulkner@skadden.com

 

Skadden, Arps, Slate, Meagher & Flom LLP

525 University Ave

Palo Alto, CA 94301

Attention: Amr Razzak

Telephone: (650) 470-4533

Facsimile: (650) 798-6504

E-Mail: amr.razzak@skadden.com

 

if to the Servicer, to:

Theravance Biopharma US, Inc.

901 Gateway Boulevard

South San Francisco, CA 94080

Attention: Brett A. Grimaud, Assistant Secretary, Vice President & Assistant General Counsel

Telephone: (650) 808-3785

Facsimile: (650) 808-6095

Email: BGrimaud@theravance.com

 

With a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, NY 10036

Attention: Andrew M. Faulkner

Telephone: (212) 735-2853

Facsimile: (917) 777-2853

E-Mail: andrew.faulkner@skadden.com

Skadden, Arps, Slate, Meagher & Flom LLP

525 University Ave

Palo Alto, CA 94301

Attention: Amr Razzak

Telephone: (650) 470-4533

Facsimile: (650) 798-6504

E-Mail: amr.razzak@skadden.com

 

Each party hereto may, by notice given
in accordance herewith to the other party hereto, designate any further or different address to which subsequent Notices shall
be sent.

 

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Section 6.2     GOVERNING
LAW. THIS SERVICING AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF THE
STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

 

Section 6.3     Waiver
of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SERVICING AGREEMENT, OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY HERETO
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS SERVICING AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 6.3.

 

Section 6.4     Counterparts. This Servicing Agreement may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument. Any counterpart
may be executed by facsimile or other electronic transmission, and such facsimile or other electronic transmission shall be deemed
an original.

 

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Section 6.5     Amendment.

 

(a)      The provisions of this Servicing Agreement may from time to time be amended, modified, supplemented, restated or waived,
if such amendment, modification, supplement, restatement or waiver is in writing and consented to by each of the parties hereto;
provided, that unless (i) the amendment or other modification is solely for purposes of correcting a technical error, inconsistency
or ambiguity, adding to the covenants or agreements to be observed by the Issuer for the benefit of the Noteholders, or complying
with the requirements of the SEC or any other regulatory body or any Applicable Law or (ii) the amendment or the modification does
not adversely affect the interests of the Noteholders in any material respect as confirmed, except in the case of the Restructuring,
in an Officer’s Certificate of the Issuer, the Issuer shall provide at least ten (10) Business Days’ prior written
notice of the amendment or the modification to the Noteholders and that such amendment or the modification shall not be effective
if the Controlling Party notifies the Issuer within such ten (10) Business Day period that it would be materially adversely affected
by the amendment or the modification and does not consent to the amendment or the modification. The Noteholders shall be third
party beneficiaries of this Servicing Agreement for purposes of this provision.

 

(b)      No failure or delay on the part of the Issuer, the Servicer or any Person specified in Section 6.8 in exercising
any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right
preclude any other or further exercise thereof or the exercise of any other power or right. No notice to or demand on the Issuer
or the Servicer in any case shall entitle it to any notice or demand in similar or other circumstances. No waiver or approval by
the Issuer under this Servicing Agreement shall, except as may otherwise be stated in such waiver or approval, be applicable to
subsequent transactions. No waiver or approval under this Servicing Agreement shall require any similar or dissimilar waiver or
approval thereafter to be granted hereunder.

 

(c)      The
Transaction Documents contain a final and complete integration of all prior expressions by the parties hereto and thereto with
respect to the subject matter hereof and thereof and shall constitute the entire agreement among the parties hereto and thereto
with respect to the subject matter hereof and thereof, superseding all prior oral or written understandings.

 

Section 6.6     Severability
of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Servicing Agreement shall be for
any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Servicing Agreement and shall in no way affect the validity or enforceability
of the other covenants, agreements, provisions or terms of this Servicing Agreement.

 

Section 6.7     Binding Effect; Assignability; Survival. This Servicing Agreement shall be binding upon and inure to the benefit
of the Issuer, the Servicer, the Trustee and their respective successors and permitted assigns. Neither the Servicer nor the Issuer
may assign any of its rights hereunder or any interest herein without the prior written consent of the other party and, so long
as the Notes are Outstanding, the Trustee, except in connection with the Restructuring and as otherwise herein specifically provided;
provided, however, that a Change of Control shall not by itself be deemed an assignment for purposes of this Section
6.7. This Servicing Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with
its terms, and shall remain in full force and effect until, with respect to the various parties, terminated pursuant to Section
6.13. Section 5.1, Section 6.2, Section 6.3, Section 6.9, Section 6.10, Section 6.11,
Section 6.12 and Section 6.14 shall be continuing and shall survive any termination of this Servicing Agreement.

 

Section 6.8     Acknowledgement and Agreement. The Servicer expressly acknowledges and agrees that all of the Issuer’s right,
title and interest in, to and under this Servicing Agreement shall be pledged and assigned to the Trustee as collateral by the
Issuer pursuant to the Indenture, and the Servicer consents to such pledge and assignment. Each of the parties hereto acknowledges
and agrees that the Trustee, acting on behalf of the Noteholders, is a third party beneficiary of the rights of the Issuer arising
hereunder that have been assigned and pledged to the Trustee under the Indenture, which rights may be enforced by the Trustee only
so long as an Event of Default has occurred and is continuing and the Trustee is exercising remedies under the Indenture, in each
case (if required thereunder) at the Direction of the Controlling Party. In all other cases, the Issuer shall have the right to
give and withhold consents and exercise or refrain from exercising rights and remedies hereunder. The Trustee and the Calculation
Agent shall also be third party beneficiaries of this Servicing Agreement in order to permit such Persons to exercise such other
rights as are granted to such Persons hereunder.

 

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Section 6.9     Cumulative
Remedies. The remedies herein provided are cumulative and not exclusive of any remedies provided by Applicable Law. Without
limiting the foregoing, the Servicer hereby authorizes the Issuer, at any time and from time to time, to the fullest extent permitted
by Applicable Law, to offset any amounts payable by the Issuer to, or for the account of, the Servicer against any obligations
of the Servicer to the Issuer arising in connection with the Transaction Documents (including amounts payable pursuant to Section
5.1) that are then due and payable.

 

Section 6.10    Costs and Expenses. In addition to the obligations of the Servicer under Article V, the Servicer agrees to
pay to the Issuer on demand all reasonable costs and expenses incurred by the Issuer in connection with the enforcement of this
Servicing Agreement against the Servicer, but not in connection with any enforcement against any other Person.

 

Section 6.11   No Proceedings. The Servicer hereby agrees that it shall not institute against the Issuer, or join any Person in
instituting against the Issuer, any insolvency or similar proceeding (namely, any Involuntary Bankruptcy) until one year and one
day after the date on which the Notes have been paid in full.

 

Section 6.12    Consent to Jurisdiction.

 

(a)      Each
of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction
of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern
District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Servicing Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York
State court or, to the extent permitted by Applicable Law, in such federal court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by Applicable Law.

 

(b)      Each
of the parties hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so,
any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating
to this Servicing Agreement in any court referred to in Section 6.12(a). Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court.

 

(c)      Each
of the parties hereto irrevocably consents to service of process in the manner provided for notices in Section 6.1.
Nothing in this Servicing Agreement will affect the right of any party hereto to serve process in any other manner permitted by
Applicable Law. Each of the parties hereto waives personal service of any summons, complaint or other process, which may be made
by any other means permitted by New York law.

 

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(d)      If, for the purpose of obtaining a judgment or order in any court, it is necessary to convert a sum due hereunder from Dollars
into another currency, each of the Issuer and the Servicer has agreed, to the fullest extent that they may effectively do so, that
the rate of exchange used shall be that at which, in accordance with normal banking procedures, such party could purchase Dollars
with such other currency in the Borough of Manhattan, The City of New York on the Business Day preceding the day on which final
judgment is given.

 

(e)      The
obligation of the Servicer in respect of any sum payable by it to any Person hereunder shall, notwithstanding any judgment or
order in a Judgment Currency, be discharged only to the extent that, on the Business Day following receipt by such Person of any
sum adjudged to be so due in the Judgment Currency, such Person may in accordance with normal banking procedures purchase Dollars
with the Judgment Currency. If the amount of Dollars so purchased is less than the sum originally due to such Person in the Judgment
Currency (determined in the manner set forth in Section 6.12(d)), the Servicer agrees, as a separate obligation and notwithstanding
any such judgment, to indemnify such Person against such loss, and, if the amount of the Dollars so purchased exceeds the sum
originally due to such Person, such Person shall remit to the Servicer such excess, provided that such Person shall have no obligation
to remit any such excess as long as the Servicer shall have failed to pay such Person any obligations due and payable to such
Person hereunder, in which case such excess may be applied to such obligations of the Servicer in accordance with the terms hereof.
The foregoing indemnity shall constitute a separate and independent obligation of the Servicer and shall continue in full force
and effect notwithstanding any such judgment or order as aforesaid.

 

(f)       To the extent that the Servicer may in any jurisdiction claim for itself or its assets immunity (to the extent such immunity
may now or hereafter exist, whether on the grounds of sovereign immunity or otherwise) from suit, execution, attachment (whether
in aid of execution, before judgment or otherwise) or other legal process (whether through service or notice or otherwise), and
to the extent that in any such jurisdiction there may be attributed to itself or its assets such immunity (whether or not claimed),
the Servicer irrevocably agrees with respect to any matter arising under this Servicing Agreement for the benefit of the Issuer
not to claim, and irrevocably waives, such immunity to the full extent permitted by the laws of such jurisdiction.

 

Section 6.13    Termination. Except as otherwise expressly provided herein, this Servicing Agreement shall terminate on the earlier
of (a) with respect to the Servicer, the date of the earlier of (i) a Servicer Termination Event whereby such Servicer is replaced
by the Issuer as replacement Servicer pursuant to the terms of this Servicing Agreement and (ii) written agreement of the Issuer
to the resignation of the Servicer and written acceptance of a successor servicer of the obligations under this Servicing Agreement
in accordance with the terms and conditions hereof and (b) with respect to this Servicing Agreement, the date on which the Notes
have been repaid, redeemed, repurchased or defeased and the Indenture has been satisfied and discharged.

 

Section 6.14    Limited Recourse. The Servicer accepts that the enforceability against the Issuer of any obligations of the Issuer
hereunder shall be limited to the Collateral and the Issuer Pledged Collateral. Once all such Collateral and Issuer Pledged Collateral
has been realized upon and such Collateral and Issuer Pledged Collateral has been applied in accordance with Article III of the
Indenture, any outstanding obligations of the Issuer to the Servicer hereunder shall be extinguished. The Servicer further agrees
that it shall take no action against any employee, director, manager, officer or administrator of the Issuer in relation to this
Servicing Agreement; provided, that nothing herein shall limit the Issuer (or its permitted successors or assigns) from
pursuing claims, if any, against any such Person; provided, further, that the foregoing shall not in any way limit,
impair or otherwise affect any rights of the Servicer to proceed against any employee, director, manager, officer or administrator
of the Issuer (a) for intentional and willful fraud or intentional and willful misrepresentations on the part of or by such employee,
director, officer or administrator or (b) for the receipt of any distributions or payments to which the Servicer or any successor
in interest is entitled, other than distributions expressly permitted pursuant to the other Transaction Documents.

 

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Section 6.15   Table of Contents and Headings. The Table of Contents and headings of the Articles and Sections of this Servicing
Agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify
or restrict any of the terms or provisions hereof.

 

Section 6.16   Distribution Reports. Each party hereto acknowledges and agrees that the Trustee may effect delivery of any Distribution
Report (including the materials accompanying such Distribution Report) by making such Distribution Report and accompanying materials
available by posting such Distribution Report and accompanying materials on Debt Domain or a substantially similar electronic transmission
system. Subject to the conditions set forth in the proviso in the preceding sentence, nothing in this Section 6.16 shall
prejudice the right of the Trustee to make such Distribution Report and accompanying materials available in any other manner specified
in the Transaction Documents.

 

[REMAINDER OF THE PAGE INTENTIONALLY LEFT
BLANK]

 

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IN WITNESS WHEREOF, the
parties hereto have executed this Servicing Agreement as of the day and year first written above.

 

	 	TRIPLE ROYALTY SUB II LLC
	 	 
	 	 
	 	By:	/s/ Brett A. Grimaud
	 	 	Name:	Brett A. Grimaud
	 	 	Title:	 Vice President and Assistant Secretary
	 	 
	 	 
	 	THERAVANCE BIOPHARMA US, INC., as Servicer
	 	 
	 	 
	 	By:	/s/ Brett A. Grimaud
	 	 	Name:	 Brett A. Grimaud
	 	 	Title:	Assistant Secretary, Vice President
    and Assistant General Counsel

 

 

 

TRIPLE
ROYALTY SUB II LLC

Servicing AgreementExhibit 10.4

 

ACCOUNT CONTROL AGREEMENT

 

This Account Control
Agreement (this “Agreement”), dated as of February 28, 2020, is entered into by and among (i) Triple Royalty
Sub II LLC, a Delaware limited liability company, as the grantor (the “Grantor”), (ii) Theravance Biopharma
US, Inc., a Delaware corporation, as the servicer (the “Servicer”), (iii) U.S. Bank National Association, a
national banking association, as the secured party (the “Secured Party”), and (iv) U.S. Bank National Association
in its additional capacities as a “securities intermediary” as defined in Section 8-102(a)(14) of the UCC and a “bank”
as defined in Section 9-102(a)(8) of the UCC (in such capacities, the “Financial Institution”). The rules of
construction set forth in Annex A to the Indenture, dated as of the date hereof, by and between Triple Royalty Sub II LLC,
as the Issuer, U.S. Bank National Association, as the Trustee, and solely with respect to Sections 2.11(o) and 2.11(p) thereof,
Theravance Biopharma, Inc., a Cayman Islands exempted company, shall apply to this Agreement and are hereby incorporated by reference
into this Agreement as if set forth fully in this Agreement. Capitalized terms used but not otherwise defined in this Agreement
shall have the respective meanings given to such terms in such Annex A, which is hereby incorporated by reference herein.
Not all terms defined in such Annex A are used in this Agreement. All references herein to the “UCC”
shall mean the Uniform Commercial Code as in effect, from time to time, in the State of New York.

 

NOW THEREFORE, in consideration
of the premises and the mutual covenants and agreements hereinafter set forth, the parties hereto agree as follows:

 

Section 1.      Establishment of the Collateral Account. The Financial Institution hereby confirms and agrees that:

 

(a)   Description
of Account. The Financial Institution has established the Collection Account with account number 173103321092.
The Collection Account and any successor accounts, as such accounts may be renumbered or retitled, are referred to herein collectively
as the “Collateral Account.”

 

(b)   Account Modifications. Neither the Financial Institution nor the Grantor shall change the name or account
number of the Collateral Account without the prior written consent of the Secured Party.

 

(c)   Type of Account. The Collateral Account is, and shall be maintained as, either (i) a “securities account”
(as defined in Section 8-501(a) of the UCC) or (ii) a “deposit account” (as defined in Section 9-102(a)(29) of the
UCC).

 

(d)   Securities
Account Provisions. If and to the extent the Collateral Account is a securities account (within the meaning of Section
8-501(a) of the UCC):

 

(i)    all securities, financial assets or other property credited to the Collateral Account, other than cash, shall be registered
in the name of the Financial Institution, indorsed to the Financial Institution or in blank or credited to another securities account
maintained in the name of the Financial Institution. In no case shall any financial asset credited to the Collateral Account be
registered in the name of the Grantor, payable to the order of the Grantor or specially indorsed to the Grantor unless the foregoing
have been specially indorsed to the Financial Institution or in blank;

 

     

     

    

 

(ii)   all
financial assets delivered to the Financial Institution pursuant to the Indenture shall be promptly credited to the Collateral
Account; and

 

(iii)  the
Financial Institution hereby agrees that each item of property (whether investment property, financial asset, security, instrument
or cash) credited to the Collateral Account (to the extent that it constitutes a “securities account” (as defined
in Section 8-501 of the UCC)) shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of
the UCC.

 

Section 2.      Secured Party Control.

 

(a)   Control
for Purposes of UCC. The Financial Institution shall comply with written instructions or orders originated by the Secured
Party (i) directing disposition of funds in the Collateral Account or (ii) directing transfer or redemption of the financial assets
relating to the Collateral Account, without further consent by the Grantor or any other Person.

 

(b)   Conflicting Orders or Instructions. Notwithstanding anything to the contrary contained herein, if at any time
the Financial Institution receives conflicting orders or instructions from the Secured Party and the Grantor, the Financial Institution
shall be required to follow the orders or instructions of the Secured Party and not the Grantor.

 

(c)   Reliance
by Financial Institution. The Financial Institution shall be entitled to rely upon any order, judgment, certification,
demand, notice, instrument or other writing delivered to it hereunder without being required to determine the authenticity or
the correctness of any fact stated therein or the propriety or validity or the service thereof. The Financial Institution may
act in reliance upon any instrument or signature believed by it to be genuine and may assume that any Person purporting to give
receipt or advice or make any statement or execute any document in connection with the provisions hereof has been duly authorized
to do so.

 

Section 3.      Governing Law. 

 

(a)   Jurisdiction
of Financial Institution. Regardless of any provision in any other agreement, for purposes of the UCC, New York shall
be the jurisdiction of the Financial Institution in its capacity as bank for purposes of Sections 9-301, 9-304 and 9-307 of the
UCC and the Financial Institution in its capacity as securities intermediary for purposes of Sections 9-301, 9-307, and 8-110(e)
of the UCC.

 

(b)   Law Governing this Agreement and the Collateral Account. This Agreement and the Collateral Account shall be
governed by and construed in accordance with the laws of the State of New York including Sections 5-1401 and 5-1402 of the General
Obligations Law of the State of New York, but otherwise without regard to conflicts of laws principles.

 

    2

     

    

 

Section 4.      Waiver of Lien: Waiver of Set-off. For so long as this Agreement remains in effect, the Financial Institution
subordinates all security interests, encumbrances, claims and rights of set-off it may have now or in the future against the Collateral
Account, any financial asset credited thereto or any funds in the Collateral Account to the rights of the Secured Party; provided,
that nothing herein constitutes a subordination or waiver of, and the Financial Institution expressly reserves all of, its present
and future rights (whether described as rights of set-off, banker’s lien, chargeback or otherwise and whether available to
the Financial Institution at law, in equity, or under the UCC) under any other agreement between the Financial Institution and
the Grantor concerning the Collateral Account with respect to (a) items (any checks, electronic or paper drafts, electronic payment
orders and credits or other instruments for the payment of money (as used in this Agreement, each, an “Item”
and collectively, “Items”) payable or endorsed to the Grantor, to the Secured Party or to any of them) deposited
into the Collateral Account that are returned unpaid, whether for insufficient funds or for any other reason; (b) overdrafts in
the Collateral Account; and (c) the Financial Institution’s usual and customary charges for services rendered in connection
with the Collateral Account (including obligations and liabilities arising out of any cash management services provided by the
Financial Institution or any third party vendors with respect to the Collateral Account, including Automated Clearing House transactions,
in each case, solely to the extent any such services are being provided with respect to the Collateral Account). Each of the parties
hereto acknowledges and agrees that the security interest of the Secured Party on behalf of the Noteholders in the Collateral Account
is subordinate to the rights reserved by the Financial Institution in this paragraph.

 

Section 5.      Possible Conflict with Other Agreements.

 

(a)   Conflict With Other Agreements. In the event of any conflict between this Agreement (or any portion thereof)
and any other agreement now existing or hereafter entered into between the Financial Institution and the Grantor with respect to
the Collateral Account, the terms of this Agreement shall prevail.

 

(b)   Complete Agreement; Amendment. This Agreement and the orders, instructions and notices required or permitted
to be executed and delivered hereunder, together with the other Transaction Documents, set forth the entire agreement of the parties
with respect to the subject matter hereof, and, subject to Section 5(a), supersede any prior agreement and contemporaneous
oral agreements of the parties concerning its subject matter. No amendment, modification or (except as otherwise specified in Section
13) termination of this Agreement, nor any assignment of any rights hereunder (except to the extent contemplated under Section
11), shall be binding on any party hereto unless it is in writing and is signed by all of the parties hereto, and any attempt
to so amend, modify, terminate or assign, except pursuant to such writing, shall be null and void; provided, that unless
(i) the amendment or the modification is solely for purposes of correcting a technical error, inconsistency or ambiguity, adding
to the covenants or agreements to be observed by the Issuer for the benefit of the Noteholders, or complying with the requirements
of the SEC or any other regulatory body or any Applicable Law or (ii) the amendment or the modification does not adversely affect
the interests of the Noteholders in any material respect as confirmed in an Officer’s Certificate of the Issuer, the Issuer
shall provide at least ten (10) Business Days’ prior written notice of the amendment or other modification to the Noteholders
and the amendment or the modification shall not be effective if the Controlling Party notifies the Issuer within such ten (10)
Business Day period that it would be materially adversely affected by the amendment or the modification and does not consent to
the amendment or the modification. The Noteholders shall be third party beneficiaries of this Agreement for purposes of this provision.

 

    3

     

    

 

(c)   Existence
of Other Agreements. The Financial Institution hereby confirms and agrees that:

 

(i)    There
are no other agreements entered into between the Financial Institution and the Grantor with respect to the Collateral Account;

 

(ii)   The Financial Institution has not entered into, and until the termination of this Agreement shall not enter into, any agreement
with any other Person (other than the Secured Party) relating to the Collateral Account pursuant to which it has agreed, or shall
agree, to comply with entitlement orders (as defined in Section 8-102(a)(8) of the UCC) or instructions (within the meaning of
Section 9-104 of the UCC) of such other Person; and

 

(iii)  The
Financial Institution has not entered into, and until the termination of this Agreement shall not enter into, any agreement purporting
to limit or condition the obligation of the Financial Institution to comply with entitlement orders or instructions as set forth
in Section 2(a).

 

Section 6.      Adverse
Claims.

 

(a)   Adverse
Claim. Except for the claims and interests of the Secured Party and the Grantor, the Financial Institution does not know
of any lien on, or claim to, or interest in the Collateral Account or in any “financial asset” (as defined in Section
8-102(a) of the UCC), cash or funds credited thereto.

 

(b)   Notice. If any Person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment,
warrant of attachment, execution or similar process) against the Collateral Account (or in any financial asset, cash or funds carried
therein), the Financial Institution shall promptly notify the Secured Party thereof in writing.

 

Section 7.      Notice of Exclusive Control; Eligible Investments.

 

(a)   Notice of Exclusive Control. The Financial Institution may comply with instructions directing the disposition
of funds in the Collateral Account originated by the Grantor or the Servicer (collectively, the “Authorized
Parties”), or their respective authorized representatives (including directions by the Servicer with respect to
the selection of investments constituting Eligible Investments), until such time as the Secured Party delivers a written notice
to the Financial Institution substantially in the form set forth in Exhibit A (such notice, a “Notice
of Exclusive Control”) that the Secured Party is thereby exercising exclusive control over the Collateral Account.
The Secured Party may at any time deliver a Notice of Exclusive Control to the Financial Institution and after the Financial Institution
receives a Notice of Exclusive Control, it shall cease complying with instructions or other directions concerning the Collateral
Account or funds on deposit therein originated by the Authorized Parties or their representatives and neither the Authorized Parties
nor any Person acting through or under the Authorized Parties shall have access to the Collateral Account unless and until the
Financial Institution has received written notice from the Secured Party that the Collateral Account has been released from the
security interest pursuant to the Indenture or that such Notice of Exclusive Control otherwise has been rescinded. The Grantor
and the Servicer hereby agree with the Secured Party that they shall not provide any instructions hereunder unless such instructions
are expressly permitted by the Indenture or the Servicing Agreement.

 

    4

     

    

 

(b)   Eligible Investments. Subject to Section 7(a), the Financial Institution shall honor any instruction from
the Servicer with respect to investments but only to the extent the requested investment constitutes an Eligible Investment.

 

Section 8.      Maintenance of the Collateral Account.

 

(a)   Correspondence, Statements and Confirmations. The Financial Institution shall promptly send copies of all
statements, confirmations and other correspondence concerning the Collateral Account and, if applicable, any financial assets credited
thereto, to the Grantor, the Secured Party and the Servicer at the address for each set forth in Section 12. The Servicer,
on behalf of the Issuer, hereby agrees to pay all reasonable and customary fees and expenses of the Financial Institution in connection
with this Section 8(a).

 

(b)   Tax Reporting. All items of income, gain, expense and loss, if any, recognized in the Collateral Account and
all interest, if any, relating to the Collateral Account, shall be reported to the IRS and all state and local taxing authorities
under the name and taxpayer identification number of the Grantor. All such reporting shall be solely the responsibility of the
Grantor and not the Secured Party or the Financial Institution.

 

Section 9.      Representations of the Financial Institution. The Financial Institution hereby represents that:

 

(a)   the Financial Institution is a national banking association, duly organized, validly existing and in good standing under
the laws of the United States;

 

(b)   this
Agreement has been duly authorized by all necessary corporate action on the part of the Financial Institution;

 

(c)   the
Financial Institution has all requisite corporate power and authority to execute and deliver this Agreement;

 

(d)   this Agreement has been duly executed and delivered by the Financial Institution;

 

(e)   the
Collateral Account has been established as set forth in Section 1 and the Collateral Account shall be maintained in the
manner set forth herein until termination of this Agreement;

 

    5

     

    

 

(f)    the
Collateral Account is either (i) a “securities account” (as defined in Section 8-501(a) of the UCC) or (ii) a “deposit
account” (as defined in Section 9-102(a)(29) of the UCC);

 

(g)   the Financial Institution is a “securities intermediary” within the meaning of Section 8-102(a)(14) of the UCC
and a “bank” within the meaning of Section 9-102(a)(8) of the UCC;

 

(h)   the Financial Institution is not a “clearing corporation” within the meaning of Section 8-102(a)(5) of the UCC;
and

 

(i)    this
Agreement is the valid and legally binding obligation of the Financial Institution.

 

Section 10.   Release; Indemnification. 

 

(a)   Release. Except for acting on instructions in violation of Section 2, or to the extent arising from
the Financial Institution’s gross negligence or willful misconduct, the Financial Institution shall have no responsibility
or liability to the Secured Party for complying with instructions concerning the Collateral Account from the Grantor or the Grantor’s
authorized representatives which are received by the Financial Institution before the Financial Institution receives a Notice of
Exclusive Control. Subject to the preceding sentence, the Grantor and the Secured Party hereby agree that the Financial Institution
is released from any and all liabilities to the Grantor and the Secured Party arising from the terms of this Agreement and the
compliance of the Financial Institution with the terms hereof, except to the extent that such liabilities arise from the Financial
Institution’s gross negligence or willful misconduct.

 

(b)   Indemnification. The Grantor shall at all times indemnify and save harmless the Financial Institution from
and against any and all claims, actions and suits of others arising out of the terms of this Agreement or the compliance of the
Financial Institution with the terms hereof and from and against any and all liabilities, losses, damages, costs, charges, reasonable
counsel fees and other expenses of every nature and character arising by reason of the same, except to the extent that such indemnification
arises from the Financial Institution’s gross negligence or willful misconduct. The provisions of this Section 10(b)
shall survive the resignation or removal of the Financial Institution and the termination of this Agreement.

 

Section 11.    Successors;
Assigns. 

 

(a)   Successors and Assigns. The terms of this Agreement shall be binding upon, and shall be for the benefit of,
the parties hereto and their respective corporate or limited liability company successors, assigns or heirs and personal representatives
who obtain such rights solely by operation of law. Any corporation or association into which the Financial Institution may be merged
or converted or with which it may be consolidated, or any corporation or association to which all or substantially all the business
of the Financial Institution’s corporate trust line of business, including all of the rights and obligations of the Financial
Institution under this Agreement, may be transferred, shall be the successor Financial Institution under this Agreement without
any further act.

 

    6

     

    

 

(b)   Assignment. Each party other than the Financial Institution may assign its rights hereunder, solely to the
extent that its rights in its respective capacities may be assigned under the terms of the Transaction Documents; provided,
that a prior written notice of such assignment is given by the assigning party to the Financial Institution and the other parties
to this Agreement.

 

(c)   Successor Account. The terms of this Agreement shall be binding on and shall apply to any successor account
to the Collateral Account.

 

Section 12.   Notices. Any notice, order, instruction, request or other communication required or permitted to be given under
this Agreement shall be in writing and deemed to have been properly given when delivered in person, or when sent by telecopy or
other electronic means and electronic confirmation of error free receipt is received upon receipt of notice by certified or registered
United States mail, return receipt requested, postage prepaid, addressed to the party at the address set forth below.

 

Grantor:

Triple Royalty Sub II LLC

c/o Theravance Biopharma US, Inc.

901 Gateway Boulevard

South San Francisco, CA 94080

Attention: Brett A. Grimaud, Vice President and Assistant Secretary

Telephone: (650) 808-3785

Facsimile: (650) 808-6095

Email: BGrimaud@theravance.com

 

With a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, NY 10036

Attention: Andrew M. Faulkner

Telephone: (212) 735-2853

Facsimile: (917) 777-2853

E-Mail: andrew.faulkner@skadden.com

 

Skadden, Arps, Slate, Meagher & Flom LLP

525 University Ave

Palo Alto, CA 94301

Attention: Amr Razzak

Telephone: (650) 470-4533

Facsimile: (650) 798-6504

E-Mail: amr.razzak@skadden.com

 

    7

     

    

 

Servicer:

Theravance Biopharma US, Inc.

901 Gateway Boulevard

South San Francisco, CA 94080

Attention: Brett A. Grimaud, Assistant Secretary, Vice President & Assistant General Counsel

Telephone: (650) 808-3785

Facsimile: (650) 808-6095

Email: BGrimaud@theravance.com

 

With a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, NY 10036

Attention: Andrew M. Faulkner

Telephone: (212) 735-2853

Facsimile: (917) 777-2853

E-Mail: andrew.faulkner@skadden.com

 

Skadden, Arps, Slate, Meagher & Flom LLP

525 University Ave

Palo Alto, CA 94301

Attention: Amr Razzak

Telephone: (650) 470-4533

Facsimile: (650) 798-6504

E-Mail: amr.razzak@skadden.com

 

Secured Party:

U.S. Bank National Association

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

Attention: Corporate Trust Services (Triple Royalty Sub II LLC)

Telephone: 617-603-6553

Facsimile: 617-603-6683

Financial Institution:

U.S. Bank National Association

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

Attention: Corporate Trust Services (Triple Royalty Sub II LLC)

Telephone: 617-603-6553

Facsimile: 617-603-6683

 

Any party may change its address for notices
in the manner set forth above.

 

    8

     

    

 

Section 13.   Termination. The obligations of the Financial Institution to the Secured Party pursuant to this Agreement shall
continue in effect until the security interest of the Secured Party in the Collateral Account has been terminated pursuant to the
terms of the Indenture and the Secured Party has notified the Financial Institution of such termination in a written notice substantially
in the form of Exhibit B. Notwithstanding the previous sentence, this Agreement may be terminated by the Secured Party at
any time, with or without cause, five (5) days following its delivery of written notice thereof to each of the parties hereto.
This Agreement may be terminated by the Financial Institution at any time on not less than thirty (30) days’ prior written
notice delivered to the Grantor and the Secured Party; provided, that all property and funds in the Collateral Account will be
delivered to or as directed by the Secured Party upon the termination of this Agreement if the Secured Party delivers written direction
to the Financial Institution directing the delivery of all property and funds in the Collateral Account within such thirty (30)
day period. In the absence of such direction, all property and funds in the Collateral Account shall be delivered to the Secured
Party upon the expiration of such thirty (30) day period. The termination of this Agreement shall not terminate the Collateral
Account or alter the obligations of the Financial Institution to the Grantor pursuant to any other agreement with respect to the
Collateral Account.

 

Section 14.   Counterparts. This Agreement may be executed in any number of counterparts, all of which shall constitute one
and the same instrument, and any party hereto may execute this Agreement by signing and delivering one or more counterparts. Delivery
of an executed signature page to this Agreement by facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof.

 

Section 15.   Severability. To the extent a provision of this Agreement is unenforceable, this Agreement shall be construed
as if the unenforceable provision were omitted.

 

Section 16.   Consequential
Damages. In no event shall the Financial Institution be liable for special, indirect or consequential loss or damage
of any kind whatsoever (including lost profits), even if the Financial Institution has been advised of the likelihood of such
loss or damage and regardless of the form of action.

 

Section 17.   Limitation of Liability of Financial Institution. The duties of the Financial Institution shall be determined
solely by the express provisions of this Agreement and no implied duties, covenants or obligations shall be read into this Agreement
against the Financial Institution. The Financial Institution shall exercise at least the level of care it exercises with respect
to its own funds and, in all events, reasonable care, in administering and accounting for amounts credited to the Collateral Account.
The Financial Institution shall be permitted to conclusively rely and act upon any notice, order, request, waiver, consent, receipt
or other paper or document (whether in its original or facsimile form) reasonably believed by the Financial Institution to be signed
by the Secured Party or any other Authorized Party. The Financial Institution shall not be liable for any error of judgment or
for any act done or step taken or omitted by it in good faith or for any mistake of fact or law or for anything which the Financial
Institution may do or refrain from doing in connection herewith, except its own negligence or willful misconduct. The Financial
Institution shall have duties only as set forth herein and duties of a “bank” or “securities intermediary”,
as applicable, pursuant to the UCC.

 

[REMAINDER OF THE PAGE INTENTIONALLY LEFT
BLANK]

 

    9

     

    

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the day and year first written above.

 

	 	TRIPLE ROYALTY SUB II LLC, as Grantor
	 	 
	 	 
	 	By:	 /s/ Brett A. Grimaud
	 	 	Name:	 Brett A. Grimaud
	 	 	Title:	 Vice President and Assistant Secretary
	 	 
	 	THERAVANCE BIOPHARMA US, INC., as Servicer
	 	 
	 	 
	 	By:	 /s/ Brett A. Grimaud
	 	 	Name:	 Brett A. Grimaud
	 	 	Title:	Assistant Secretary, Vice President and Assistant General Counsel
	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Secured Party
	 	 
	 	 
	 	By:	/s/ Alison D.B. Nadeau
	 	 	Name:	 Alison D.B. Nadeau
	 	 	Title:	Vice President
	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Financial Institution
	 	 
	 	 
	 	By:	/s/ Alison D.B. Nadeau
	 	 	Name:	Alison D.B. Nadeau
	 	 	Title:	Vice President

 

TRIPLE
ROYALTY SUB II LLC

Account Control Agreement

 

     

     

    

 

Exhibit A

 

[Letterhead of Secured Party]

 

[Date]

 

U.S. Bank National Association

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

Attention: Corporate Trust Services (Triple
Royalty Sub II LLC)

 

Re:    Notice of
Exclusive Control

 

As referenced in Section
7(a) of the Account Control Agreement, dated as of February 28, 2020 (the “Control Agreement”), by and among
you, as Financial Institution, Triple Royalty Sub II LLC, as the Grantor, Theravance Biopharma US, Inc., as the Servicer and the
undersigned, as Secured Party (a copy of which is attached) we hereby give you notice of our exclusive control over the Collateral
Account (as defined in the Control Agreement) and all financial assets or other property credited thereto. You are hereby instructed
not to accept any direction, instruction or entitlement order with respect to the Collateral Account or the financial assets or
other property credited thereto from any person other than the undersigned.

 

You are instructed
to deliver a copy of this notice by facsimile transmission to Triple Royalty Sub II LLC at (650) 808-6171.

 

	 	Very truly yours,
	 	 
	 	 
	 	U.S. Bank National Association, as Secured Party
	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

 

	cc:	Triple Royalty Sub II LLC
	 	Skadden, Arps, Slate, Meagher & Flom LLP, Attention: Andrew M. Faulkner

 

    
Exhibit A

     

    

 

Exhibit B

 

[Letterhead of Secured Party]

 

[Date]

 

U.S. Bank National Association,

as Financial Institution

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

 

Attention: Corporate Trust Services (Triple
Royalty Sub II LLC)

 

Re:     Termination
of Account Control Agreement

 

You are hereby notified
that the Account Control Agreement, dated as of February 28, 2020 (the “Control Agreement”), by and among you,
as Financial Institution, Triple Royalty Sub II LLC, as the Grantor, Theravance Biopharma US, Inc., as the Servicer and the undersigned,
as Secured Party (a copy of which is attached) is terminated and you have no further obligations to the undersigned pursuant to
such agreement. Notwithstanding any previous instructions to you, you are hereby instructed to accept all future directions with
respect to the Collateral Account identified in such agreement solely from the Grantor. This notice terminates any obligations
you may have to the undersigned with respect to the Collateral Account; however nothing contained in this notice shall alter any
obligations which you may otherwise owe to the Grantor pursuant to any other agreement. Capitalized terms used but not otherwise
defined herein shall have the respective meanings given to such terms in the Control Agreement.

 

	 	Very truly yours,
	 	 
	 	 
	 	U.S. Bank National Association, as Secured Party
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	cc:	Triple Royalty Sub II LLC
	 	Skadden, Arps, Slate, Meagher & Flom LLP, Attention: Andrew M. Faulkner

 

    
Exhibit B

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