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|                            |                                         | Page |
|---------------------------------|----------------------------------------------|------|
| SECTION 1      DEFINITIONS | 2                                            |
| 1.1                             | Account      or Participant’s Account  | 2    |
| 1.2                             | Affiliate                                    | 3    |
| 1.3                             | Alternate      Payee                         | 4    |
| 1.4                             | Beneficiary                                  | 4    |
| 1.5                             | Board      of Directors                      | 4    |
| 1.6                             | Catch-Up      Contributions                  | 4    |
| 1.7                             | Code                                         | 4    |
| 1.8                             | Committee                                    | 4    |
| 1.9                             | Company                                      | 4    |
| 1.10                            | Company      Match Contributions             | 4    |
| 1.11                            | Company      Stock                           | 5    |
| 1.12                            | Company      Stock Fund                      | 5    |
| 1.13                            | Compensation                                 | 5    |
| 1.14                            | Compensation      Limit                      | 5    |
| 1.15                            | Disability                                   | 6    |
| 1.16                            | Elective      Deferrals                      | 6    |
| 1.17                            | Eligible      Bonus                          | 6    |
| 1.18                            | Eligible      Commissions                    | 6    |
| 1.19                            | Eligible      Employee                       | 6    |
| 1.20                            | Employee                                     | 7    |
| 1.21                            | Employee      Pre-Tax Catch-Up Contributions | 7    |
| 1.22                            | Employee      Pre-Tax Contributions          | 7    |
| 1.23                            | Employer                                     | 8    |
| 1.24                            | Employer      Contributions                  | 8    |
| 1.25                            | Entry      Date                              | 8    |
| 1.26                            | ERISA                                        | 8    |
| 1.27                            | Highly      Compensated Employee or HCE      | 8    |
| 1.28                            | Investment      Funds                        | 9    |
| 1.29                            | Investment      Manager                      | 9    |
| 1.30                            | Leased      Employee                         | 9    |
| 1.31                            | Leave      of Absence                        | 9    |
| 1.32                            | 1934      Act                                | 10   |
| 1.33                            | Non-Elective      Contributions              | 10   |
| 1.34                            | Normal      Retirement Age                   | 10   |
| 1.35                            | Participant                                  | 10   |
| 1.36                            | Plan                                         | 10   |
| 1.37                            | Plan      Year                               | 11   |
| 1.38                            | Rollover      Contributions                  | 11   |
| 1.39                            | Roth      Basic Contributions                | 11   |
| 1.40                            | Roth      Catch-Up Contributions             | 11   |

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|                                                            |                                                             | Page |
|-----------------------------------------------------------------|------------------------------------------------------------------|------|
| 1.41                                                            | Roth      Rollover Contributions                                 | 11   |
| 1.42                                                            | Trust      Agreement                                             | 11   |
| 1.43                                                            | Trust      Fund                                                  | 11   |
| 1.44                                                            | Trustee                                                          | 11   |
| 1.45                                                            | Valuation      Date                                              | 12   |
| SECTION 2      ELIGIBILITY AND PARTICIPATION               | 12                                                               |
| 2.1                                                             | Initial      Eligibility                                         | 12   |
| 2.2                                                             | Employer      Aggregation                                        | 12   |
| 2.3                                                             | Participation                                                    | 12   |
| 2.4                                                             | Voluntary      Suspension                                        | 13   |
| 2.5                                                             | Mandatory      Suspension                                        | 13   |
| 2.6                                                             | Provision      of Information                                    | 14   |
| 2.7                                                             | Termination      of Participation                                | 14   |
| 2.8                                                             | Acquisitions                                                     | 14   |
| 2.9                                                             | Erroneous      Participation                                     | 15   |
| SECTION 3      ELECTIVE DEFERRALS                          | 15                                                               |
| 3.1                                                             | Employee      Pre-Tax Contributions and Roth Basic Contributions | 15   |
| 3.2                                                             | Catch-Up      Contributions                                      | 19   |
| 3.3                                                             | Deferral      Elections                                          | 19   |
| 3.4                                                             | Payment      of Elective Deferrals                               | 22   |
| SECTION 4      EMPLOYER CONTRIBUTIONS                      | 23                                                               |
| 4.1                                                             | Company      Match Contributions                                 | 23   |
| 4.2                                                             | Non-Elective      Contributions                                  | 26   |
| 4.3                                                             | Timing                                                           | 26   |
| 4.4                                                             | Periodic      Contributions                                      | 27   |
| 4.5                                                             | Reinstatements                                                   | 27   |
| 4.6                                                             | Profits      Not Required                                        | 27   |
| SECTION 5      ALLOCATION OF CONTRIBUTIONS AND INVESTMENTS | 27                                                               |
| 5.1                                                             | Elective      Deferrals                                          | 27   |
| 5.2                                                             | Company      Match Contributions                                 | 28   |
| 5.3                                                             | Non-Elective      Contributions                                  | 28   |
| 5.4                                                             | Investment                                                       | 28   |
| 5.5                                                             | Limitations      on Allocations                                  | 29   |
| SECTION 6      PARTICIPANT ACCOUNTS AND INVESTMENT FUNDS   | 31                                                               |
| 6.1                                                             | Participant      Accounts                                        | 31   |
| 6.2                                                             | Trust      Fund Assets                                           | 32   |
| 6.3                                                             | Investment      Funds                                            | 33   |

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|                                                                     |                                                                | Page |
|--------------------------------------------------------------------------|---------------------------------------------------------------------|------|
| 6.4                                                                      | Valuation      of Participants’ Accounts                      | 34   |
| 6.5                                                                      | Valuation      of Shares                                            | 35   |
| 6.6                                                                      | Statements      of Account                                          | 35   |
| 6.7                                                                      | Vesting      of Participants’ Accounts                        | 35   |
| 6.8                                                                      | Forfeitures                                                         | 35   |
| SECTION 7      DISTRIBUTIONS                                        | 36                                                                  |
| 7.1                                                                      | Events      Permitting Distribution                                 | 36   |
| 7.2                                                                      | Times      for Distribution                                         | 37   |
| 7.3                                                                      | Consent      Requirement and Immediate Distributions                | 38   |
| 7.4                                                                      | Form      of Distribution                                           | 39   |
| 7.5                                                                      | Company      Stock Restrictions                                     | 41   |
| 7.6                                                                      | Beneficiary      Designations                                       | 41   |
| 7.7                                                                      | Payments      to Minors or Incompetents                             | 42   |
| 7.8                                                                      | Undistributable      Accounts                                       | 43   |
| SECTION 8      WITHDRAWALS, LOANS AND DOMESTIC RELATIONS ORDERS     | 43                                                                  |
| 8.1                                                                      | General      Rules                                                  | 43   |
| 8.2                                                                      | Hardship      Withdrawal                                            | 44   |
| 8.3                                                                      | Age      59½ Withdrawal                                        | 46   |
| 8.4                                                                      | Withdrawal      From Company Match Account at Normal Retirement Age | 46   |
| 8.5                                                                      | Withdrawal      From Rollover Contributions Accounts                | 46   |
| 8.6                                                                      | Loans      to Participants                                          | 46   |
| 8.7                                                                      | Qualified      Domestic Relations Orders                            | 50   |
| 8.8                                                                      | Qualified      Reservist Distribution                               | 51   |
| SECTION 9      ADMINISTRATION OF THE PLAN                           | 51                                                                  |
| 9.1                                                                      | Plan      Administrator                                             | 51   |
| 9.2                                                                      | Committee                                                           | 52   |
| 9.3                                                                      | Actions      by Committee                                           | 52   |
| 9.4                                                                      | Powers      of Committee                                            | 52   |
| 9.5                                                                      | Fiduciary      Responsibilities                                     | 54   |
| 9.6                                                                      | Investment      Responsibilities                                    | 54   |
| 9.7                                                                      | Voting      and Tender Offer Rights in Company Stock                | 55   |
| 9.8                                                                      | Decisions      of Committee                                         | 55   |
| 9.9                                                                      | Administrative      Expenses                                        | 55   |
| 9.10                                                                     | Eligibility      to Participate                                     | 56   |
| 9.11                                                                     | Indemnification                                                     | 56   |
| SECTION 10      TRUST FUND, ROLLOVER CONTRIBUTIONS AND PLAN MERGERS | 57                                                                  |
| 10.1                                                                     | Trust      Fund                                                     | 57   |
| 10.2                                                                     | No      Diversion of Assets                                         | 57   |

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|                                                                                 |                                                               | Page   |
|--------------------------------------------------------------------------------------|--------------------------------------------------------------------|--------|
| 10.3                                                                                 | Continuing      Conditions                                         | 57     |
| 10.4                                                                                 | Change      of Investment Alternatives                             | 58     |
| 10.5                                                                                 | Rollover      Contributions                                        | 59     |
| 10.6                                                                                 | Merger      of Other Plans                                         | 60     |
| SECTION 11      MODIFICATION OR TERMINATION OF PLAN                             | 61                                                                 |
| 11.1                                                                                 | Employers’      Obligations Limited                          | 61     |
| 11.2                                                                                 | Right      to Amend or Terminate                                   | 61     |
| 11.3                                                                                 | Effect      of Termination                                         | 62     |
| SECTION 12      TOP-HEAVY PLAN                                                  | 62                                                                 |
| 12.1                                                                                 | Top-Heavy      Plan Status                                         | 62     |
| 12.2                                                                                 | Top-Heavy      Plan Provisions                                     | 63     |
| SECTION 13      GENERAL PROVISIONS                                              | 64                                                                 |
| 13.1                                                                                 | Plan      Information                                              | 64     |
| 13.2                                                                                 | Inalienability                                                     | 65     |
| 13.3                                                                                 | Rights      and Duties                                             | 65     |
| 13.4                                                                                 | No      Enlargement of Employment Rights                           | 65     |
| 13.5                                                                                 | Apportionment      of Duties                                       | 65     |
| 13.6                                                                                 | Merger,      Consolidation or Transfer                             | 66     |
| 13.7                                                                                 | Military      Service                                              | 66     |
| 13.8                                                                                 | Applicable      Law                                                | 66     |
| 13.9                                                                                 | Severability                                                       | 66     |
| 13.10                                                                                | Exhaustion      of Claims Procedure and Right to Bring Legal Claim | 67     |
| 13.11                                                                                | Captions                                                           | 67     |
|                                                                                 |                                                               |   |
| APPENDIX      A – Puerto Rico Supplement                                       | A-1                                                                |
| APPENDIX      B – Plan-to-Plan Transfer of Tanox, Inc. 401(k) Plan    Accounts | B-1                                                                |

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| If      the ADP for the Non-HCEParticipants      (“NHCEs’ ADP”) is: | Then      the Maximum ADP for the      HCE Participants is:                  |
|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Less      than 2%2%      to 8%More      than 8%                                       | 2.0      x NHCEs’ ADPNHCEs’      ADP + 2%1.25      x NHCEs’ ADP |

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| If      the ACP for the Non-HCEParticipants      (“NHCEs’ ACP”) is: | Then      the Maximum ACP forthe      HCE Participants is                         |
|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Less      than 2%2%      to 8%More      than 8%                                       | 2.0      x NHCEs’ ACPNHCEs’      ACP + 2%1.25      x NHCEs’ ACP |

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|   | GENENTECH,      INC. |
|--------|----------------------|
|   |                 |   |
|   | By                   | /s/      MARKUS GEMUEND |
|   | Title                | Senior      Vice President Biochemical Manufacturing |
|   | Dated                | December      20, 2007 |
|   |                 |   |
|   | By                   | /s/      MICHAEL D. VARNEY |
|   | Title                | Vice      President Small Molecule Drug Discovery |
|   | Dated                | December      20, 2007 |

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