INNOVIVA,INC. (NASDAQ:INVA) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 9.01
Departure of Directors or Principal Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On December19, 2017, in connection with the expected issuance of the final order and judgement (the “Final Order”) by the Delaware Court of Chancery (the “Court”) with respect to the Verified Complaint to Section225 of the Delaware General Corporation Law (the “DGCL”) and for Specific Performance, captioned Sarissa Capital Domestic Fund LP, et al. v. Innoviva,Inc. (“Innoviva”), C.A. No.2017-0309-JRS (the “Specific Performance Litigation”), to resolutions approved by the Board of Directors of Innoviva (the “Board”), the total number of directors constituting the Board was increased from six (6)to eight (8)directors in accordance with Section3.2 of Innoviva’s Amended and Restated Bylaws, and George W. Bickerstaff,III and Odysseas Kostas, M.D. were appointed as directors to serve until Innoviva’s 2018 annual meeting of stockholders or until their respective successors have been duly elected and qualified. On December19, 2017,Innoviva issued a press release announcing the implementation of the Final Order and the appointment of Mr.Bickerstaff and Dr.Kostas as directors. A copy of the press release is attached as Exhibit99.1 to this Current Report on Form8-K.
to Innoviva’s non-employee director compensation program, upon their respective appointment, each of Mr.Bickerstaff and Dr.Kostas received (i)a restricted stock unit award covering 9,071 shares of Innoviva common stock (the “Initial RSU”) and (ii) a restricted stock unit award covering 5,442 shares of Innoviva common stock (the “Pro Rata RSU”). The Initial RSU vests in two equal annual installments and the Pro Rata RSU vests in a single installment at the earlier of the next annual meeting of stockholders or one-year grant anniversary, in each case subject to the respective director’s continuous service through the applicable vesting date, except that in the event of the respective director’s death or disability or in the event of a change of control prior to their termination of services, the Initial RSU and the Pro Rata RSU will immediately vest in full. Each of Mr.Bickerstaff and Dr.Kostas will also receive an annual cash retainer of $50,000 for his role as a Board member.
Each of Mr.Bickerstaff and Dr.Kostas have entered into an indemnification agreement with Innoviva requiring Innoviva to indemnify him to the fullest extent permitted under Delaware law with respect to his services as a director. The indemnification agreement is in the form entered into with Innoviva’s other directors and executive officers. This form of indemnification agreement is attached hereto as Exhibit99.2 to this Current Report on Form8-K.
The Board has determined that each of Mr.Bickerstaff and Dr.Kostas qualifies as an independent director of the Board under the applicable independence rulesof (A)the Securities and Exchange Commission and (B)the Nasdaq Global Select Market listing standards. Additionally, there are no transactions involving Mr.Bickerstaff or Dr.Kostas that are required to be disclosed to Item 404(a)of Regulation S-K.
Item 9.01 Regulation FD Disclosure.
Following the entry of the Final Order, the complaint filed by Sarissa Capital Domestic Fund LP and certain of its affiliates under Section220 of the DGCL, captioned Sarissa Capital Domestic Fund LP v. Innoviva,Inc., C.A. No.2017-0216-JRS, will be dismissed with prejudice.
The information in Item 9.01 of this Current Report on Form8-K is being furnished and shall not be deemed “filed” for the purposes of Section18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.