Document:

Exhibit 10.63

 

GILEAD SCIENCES, INC.

 

SEVERANCE PLAN

 

(as adopted effective January 29, 2003)

 

 

TABLE OF CONTENTS

 

	
  I.

  	
  INTRODUCTION

  
	
   

  	
   

  
	
  II.

  	
  COMMENCEMENT OF PARTICIPATION

  
	
   

  	
   

  
	
  III.

  	
  TERMINATION OF PARTICIPATION

  
	
   

  	
   

  
	
  IV.

  	
  SEVERANCE PAY BENEFIT

  
	
   

  	
   

  
	
  V.

  	
  FORM OF SEVERANCE PAY BENEFIT

  
	
   

  	
   

  
	
  VI.

  	
  DEATH OF A PARTICIPANT

  
	
   

  	
   

  
	
  VII.

  	
  AMENDMENT AND TERMINATION

  
	
   

  	
   

  
	
  VIII.

  	
  NON-ALIENATION OF BENEFITS

  
	
   

  	
   

  
	
  IX.

  	
  SUCCESSORS AND ASSIGNS

  
	
   

  	
   

  
	
  X.

  	
  LEGAL CONSTRUCTION

  
	
   

  	
   

  
	
  XI.

  	
  ADMINISTRATION AND OPERATION OF THE PLAN

  
	
   

  	
   

  
	
  XII.

  	
  CLAIMS, INQUIRIES AND APPEALS

  
	
   

  	
   

  
	
  XIII.

  	
  BASIS OF PAYMENTS TO AND FROM PLAN

  
	
   

  	
   

  
	
  XIV.

  	
  OTHER PLAN INFORMATION

  
	
   

  	
   

  
	
  XV.

  	
  STATEMENT OF ERISA RIGHTS

  
	
   

  	
   

  
	
  XVI.

  	
  AVAILABILITY OF PLAN DOCUMENTS FOR
  EXAMINATION

  
	
   

  	
   

  
	
  XVII.

  	
  DEFINITIONS

  
	
   

  	
   

  
	
  XVIII.

  	
  EXECUTION

  

 

i

 

GILEAD SCIENCES, INC.

 

SEVERANCE PLAN

 

(As adopted effective January 29, 2003)

 

I.              INTRODUCTION

 

The Gilead Sciences, Inc.
Severance Plan (the “Plan”) was adopted by the Company effective January 29,
2003.  The Plan replaces all severance
or similar plans or programs of the Company previously in effect.  The Company has no severance or similar plan
or program other than this Plan. 
However, the Triangle Pharmaceuticals, Inc. Severance Program (the
“Triangle Program”) shall remain in effect until January 23, 2004 and shall
provide benefits to current and former employees of Triangle Pharmaceuticals,
Inc. who are involuntarily terminated prior to such date as set forth in
Section XVII(h) of this Plan.

 

The purpose of the Plan is to
provide a Severance Pay Benefit to certain Eligible Employees whose employment
with the Company terminates.  The
Company is the Plan Administrator for purposes of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”).

 

Capitalized terms used in this
Plan shall have the meaning set forth in Section XVII.

 

II.            COMMENCEMENT OF
PARTICIPATION

 

An Eligible Employee shall
commence participation in the Plan upon the later of (i) January 29, 2003, or
(ii) his or her date of hire.

 

III.           TERMINATION OF
PARTICIPATION

 

A Participant’s participation
in the Plan shall terminate upon the occurrence of the earliest of the
following:

 

(a)           The Participant’s
employment terminates without meeting the requirements of Section IV(a)(i)(1);
or

 

(b)           The Participant’s
employment terminates with a provision of Section IV(a)(ii) being applicable.

 

(c)           The Participant fails
to meet the requirements of Section IV(a)(i)(2).

 

(d)           The Participant has
received a complete distribution of his or her Severance Pay Benefit.

 

(e)           The Participant ceases
to be an Eligible Employee (other than by reason of termination of his or her
employment with the Company).

 

(f)            The Plan terminates.

 

1

 

IV.           SEVERANCE PAY BENEFIT

 

(a)           Eligibility for
Severance Pay Benefit

 

(i)            Subject to Section
IV(a)(ii), a Participant shall be eligible for a Severance Pay Benefit only if
the Participant meets the requirements of Section IV(a)(i)(1) and Section
IV(a)(i)(2).

 

(1)           The Participant’s
employment is involuntarily terminated by the Company on a date determined by
the Company in its sole discretion because of a Company-wide or departmental
reorganization or a significant restructuring of the Eligible Employee’s job
duties; provided, however, that a Participant shall be deemed to have been
involuntarily terminated by the Company if 
he or she resigns because of (A) a transfer to a new work location that
is more than 50 miles from his or her previous work location, and (B) in the
case of a Participant whose Severance Pay Benefit is determined with reference
to Appendix A, B or C, a Constructive Termination (as defined in Section 10(c)
of the  Gilead Sciences, Inc. 1991 Stock
Option Plan) following a Change in Control and within the time specified in
Appendix A, B or C, as applicable.

 

(2)           The Participant
executes the Release within the time prescribed therein (or such extension as
may be granted by the Company in its sole discretion) and the period (if any
such period is prescribed in the Release) for revoking the execution of the Release
under the Older Workers’ Benefit Protection Act, 29 U.S.C. § 626(f), has
expired.

 

Under no
circumstances shall a Participant be construed as having terminated employment
or be eligible for a Severance Pay Benefit because he or she terminates
employment with the Company for the purpose of accepting employment with the
entity that effectuates a Change in Control, its subsidiaries or affiliates.

 

(ii)           Notwithstanding Section
IV(a)(i), a Participant shall be disqualified from receiving a Severance Pay
Benefit upon the occurrence of any of the following:

 

(1)           The Participant
voluntarily terminates employment with the Company for any reason prior to the
termination date set by the Company;

 

(2)           The Participant’s
employment with the Company is terminated by death or for cause (including,
without limitation, gross misconduct or dereliction of duty) or for failure to
meet performance goals or objectives as determined by the Company;

 

(3)           If the Participant is
receiving short-term sick leave benefits on the date of termination, the
Participant fails to execute a written waiver of any short-term sick leave
benefits that might otherwise be payable after employment 

 

2

 

terminates;

 

(4)           The Participant
terminates employment with the Company in order to accept employment with an
organization that is wholly or partly owned (directly or indirectly) by the
Company or an Affiliate;

 

(5)           The Participant accepts
any job with a Buyer or Outsourcing Supplier;

 

(6)           The Participant is
offered full-time employment with a Buyer or Outsourcing Supplier at a new work
location when such position is 50 miles or less from his or her previous  work location with the Company and taking
such position would not result in a reduction in Regular Earnings; or

 

(7)           Except in the case of a
Severance Pay Benefit payable on account of a Change in Control of the Company,
if the Participant received a severance benefit in connection with an
acquisition by the Company within 24 months prior to his or her termination of
employment.

 

(8)           Except in the case of a
Severance Pay Benefit payable on account of a Change in Control of the Company,
if the Participant has not completed six months of Continuous Service as of the
date of his or her termination of employment with all members of the Affiliated
Group.

 

The business
decisions that may result in a Participant qualifying for a Severance Pay
Benefit are decisions to be made by the Company in its sole discretion.  In making these decisions, similarly
situated organizations, locations, functions, classifications, and/or
Participants need not be treated in the same manner.  The date selected by the Company to terminate the Participant’s
employment is within its sole discretion.

 

(b)           Amount of Severance Pay
Benefit

 

(i)            Subject to Section
IV(b)(ii), the Severance Pay Benefit payable to a Participant shall be as set
forth in the applicable Appendix:

 

(1)           Appendix A – Chief
Executive Officer

 

(2)           Appendix B – Executive
Vice Presidents and Senior Vice Presidents

 

(3)           Appendix C – Vice
Presidents and Senior Advisors

 

(4)           Appendix D – All
Eligible Employees not covered by Appendix A, B or C

 

(ii)           Notwithstanding Section
IV(b)(i), any Severance Pay Benefit otherwise payable under that section shall
be reduced (but not below zero) as follows:

 

3

 

(1)           If a Participant is
reemployed by the Company or an Affiliate within the number of weeks after the
termination that is equal to the number of weeks taken into consideration in calculating
the Severance Plan Benefit, the Severance Pay Benefit shall be reduced to the
amount that the Participant’s Regular Earnings would have been for the period
from the date of termination to the date of reemployment.  In all cases, the reduced benefit will be
based on the Participant’s Regular Earnings used to calculate such
Participant’s Severance Pay Benefit under the Plan.  A Participant will be considered “reemployed” under the Plan for
purposes of the repayment provision in this Section IV(b)(ii)(1) if retained at
a Company facility as or through a contractor for more than a full-time
equivalent of more than 45 work days.

 

(2)           If a Participant is
employed by a Buyer or Outsourcing Vendor within the number of weeks after
termination that is equal to the number of weeks taken into consideration in
calculating the Severance Plan Benefit, the Severance Pay Benefit shall be
reduced to the amount that the Participant’s Regular Earnings would have been
for the period from the date of termination to the date of employment with the
Buyer or Outsourcing Vendor.

 

This Section
IV(b)(ii)(2) may be waived in writing by the Company in its sole discretion.

 

(3)           By severance pay or
other similar benefits payable under any other plan or policy of the Company or
an Affiliate or government required payment (other than unemployment
compensation under United States law), including, but not limited to, any
benefit enhancement program that may be adopted as part of a pension plan.

 

(4)           By any amounts payable
pursuant to the Worker Adjustment and Retraining Notification Act (“WARN”) or
any other similar federal, state or local statute.

 

(5)           By the amount of any
indebtedness to the Company.

 

(c)           Repayment of the
Severance Pay Benefit

 

If the
Participant has received payment under the Plan in excess of the Severance Pay
Benefit, as reduced in Section IV(b)(ii), the Participant must agree as a
condition of reemployment that such excess will be repaid to the Company.

 

V.            FORM OF SEVERANCE PAY BENEFIT

 

(a)           Subject to Section
V(b), the Severance Pay Benefit under the Plan may take any one of the
following forms of distribution as elected by the Participant:

 

4

 

(i)            a lump sum payment on
or before December 31 of the year in which employment terminates;

 

(ii)           a lump sum payment
after December 31 of the year in which employment terminates, but within 24
months after the termination of employment;

 

(iii)          a maximum of two
installment payments over a period not to exceed 24 months from the termination
date.  The amount and timing of each
installment may be different; or

 

(iv)          Installment payments
over the period with respect to which the Severance Pay Benefit is determined,
payable on the regularly scheduled pay dates for the Participant’s former job
and location.

 

(b)           Interest

 

No interest shall be paid on a Severance Pay Benefit.

 

VI.           DEATH OF A PARTICIPANT

 

If a
Participant dies after qualifying for a Severance Pay Benefit but before such
benefit is  completely paid, the balance
of the Severance Pay Benefit shall be paid in a lump sum to the Participant’s
Beneficiary.

 

VII.          AMENDMENT AND
TERMINATION

 

(a)           General Rule.

 

Although the
Company expects to continue the Plan indefinitely, inasmuch as future
conditions cannot be foreseen, (subject to Sections VII(b) and (c)) the Company
reserves the right to amend or terminate the Plan at any time by action of its
board of directors or by action of a committee or individual(s) acting pursuant
to a valid delegation of authority of the board of directors.  However, no amendment or termination shall
adversely affect the right to:

 

(i)            Any unpaid Severance
Pay Benefit; or

 

(ii)           Qualify for a Severance
Pay Benefit by the timely execution of the Release after such amendment or
termination.

 

(b)           Restrictions on
Amendments.

 

Notwithstanding
Section VII(a) of the Plan, and except to the extent required to comply with
applicable law, no termination of the Plan and no amendment described below
shall be effective if adopted within six months before or at any time after the
public announcement of an event or proposed transaction which would constitute
a Change in 

 

5

 

Control (as
such term is defined prior to such amendment); provided, however, that such an
amendment or termination of the Plan may be effected, even if adopted after
such a public announcement, if (a) the amendment or termination has been
adopted after any plans have been abandoned to cause the event or effect the
transaction which, if effected, would have constituted the Change in Control,
and the event which would have constituted the Change in Control has not
occurred, and (b) within a period of six months after such adoption, no other
event constituting a Change in Control has occurred, and no public announcement
of a proposed transaction which would constitute a Change in Control has been
made, unless thereafter any plans to effect the Change in Control have been
abandoned and the event which would have constituted the Change in Control has
not occurred.

 

The amendments
prohibited by this Section VII(b) include any amendment which is executed (or
would otherwise become effective) at the request of a third party who
effectuates a Change in Control or any amendment which, if adopted and given
effect would:

 

(i)            Deprive any individual
who is an Eligible Employee as of the Change in Control of coverage under the
Plan as constituted at the time of such amendment;

 

(ii)           Limit eligibility for
or reduce the amount of any Severance Pay Benefit; or

 

(iii)          Amend Section VII, IX,
or the definitions of the terms “Change in Control” or “Successors and Assigns”
in Section XVII of the Plan.

 

For purposes
of this Section VII(b), approval by the Company shall mean written approval (by
a person or entity within the Company that has authority to do so) of the
subsequent execution of such Plan amendment or termination.

 

No person
shall take any action that would directly or indirectly have the same effect as
any of the prohibited amendments or termination described in this Section
VII(b).

 

VIII.        NON-ALIENATION OF BENEFITS

 

To the full
extent permitted by law and except as provided in the Plan, no Severance Pay
Benefit shall be subject to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge, and any attempt to do so shall be
void.

 

IX.           SUCCESSORS AND ASSIGNS

 

The Plan shall
be binding upon the Company, its Successors and Assigns.  Notwithstanding that the Plan may be binding
upon such Successors and Assigns by operation of law, the Company shall require
any Successor or Assign to expressly assume and agree to be bound by the Plan
in the same manner and to the same extent that the Company would be if no
succession or assignment had taken place.

 

6

 

X.            LEGAL CONSTRUCTION

 

This Plan is
governed by and shall be construed in accordance with ERISA and, to the extent
not preempted by ERISA, with the laws of the State of California.

 

XI.           ADMINISTRATION AND
OPERATION OF THE PLAN

 

(a)           Plan Sponsor and Plan
Administrator.

 

The Company is
the “Plan Sponsor” and the “Plan Administrator” of the Plan as such terms are
used in ERISA.

 

(b)           Administrative Power
and Responsibility.

 

The Company in
its capacity as Plan Administrator of the Plan is the named fiduciary that has
the authority to control and manage the operation and administration of the
Plan.  The Company shall make such
rules, regulations, interpretations and computations and shall take such other
action to administer the Plan as it may deem appropriate.  The Company shall have the sole discretion
to interpret the provisions of the Plan and to determine eligibility for
benefits pursuant to the objective criteria set forth in the Plan.  In administering the Plan, the Company shall
at all times discharge its duties with respect to the Plan in accordance with
the standards set forth in section 404(a)(l) of ERISA.  The Company may engage the services of such
persons or organizations to render advice or perform services with respect to
its responsibilities under the Plan as it shall determine to be necessary or
appropriate.  Such persons or
organizations may include (without limitation) actuaries, attorneys,
accountants and consultants.

 

(c)           Review Panel.

 

Upon receipt
of a request for review, the Company shall appoint a Review Panel that shall
consist of three or more individuals. 
The Review Panel shall be the named fiduciary that shall have authority
to act with respect to appeals from denial of benefits under the Plan.

 

(d)           Service in More Than
One Fiduciary Capacity.

 

Any person or
group of persons may serve in more than one fiduciary capacity with respect to
the Plan.

 

(e)           Performance of
Responsibilities.

 

The
responsibilities of the Company under the Plan shall be carried out on its
behalf by its officers, employees and agents. 
The Company may delegate any of its fiduciary responsibilities under the
Plan to another person or persons pursuant to a written instrument that
specifies the fiduciary responsibilities so delegated to each such person.

 

7

 

(f)            Employee
Communications and Other Plan Activities.

 

In
communications with its employees and in any other activities relating to the
Plan, the Company shall comply with the rules, regulations, interpretations,
computations and instructions that were issued to administer the Plan.  With respect to matters relating to the
Plan, directors, officers and employees of the Company shall act on behalf or
in the name of the Company in their capacity as directors, officers and employees
and not as individual fiduciaries.

 

XII.         CLAIMS, INQUIRIES AND
APPEALS

 

(a)           Claims for Benefits and
Inquiries.

 

All claims for
benefits and all inquiries concerning the Plan or present or future rights to
benefits under the Plan, shall be submitted to the Plan Administrator in
writing and addressed as follows: 
“Gilead Sciences, Inc., Plan Administrator under the Gilead Sciences,
Inc. Severance Plan, 333 Lakeside Drive, Foster City, CA 94404 “ or such other location
as communicated to the Participant.  A
claim for benefits shall be signed by the Participant, or if a Participant is
deceased, by such Participant’s spouse, designated beneficiary or estate, as
the case may be.

 

(b)           Denials of Claims.

 

In the event
that any claim for benefits is denied, in whole or in part, the Plan
Administrator shall notify the claimant in writing of such denial and of the
right to a review thereof.  Such written
notice shall set forth in a manner calculated to be understood by the claimant,
specific reasons for such denial, specific references to the Plan provision on
which such denial is based, a description of any information or material
necessary to perfect the claim, an explanation of why such material is
necessary and an explanation of the Plan’s review procedure and a statement
regarding the claimant’s right to bring a civil action under ERISA section
502(a) following an adverse benefit determination on review.  Such written notice shall be given to the
claimant within 90 days after the Plan Administrator receives the claim, unless
special circumstances require an extension of time of up to an additional 90
days for processing the claim.  If such
an extension of time for processing is required, written notice of the
extension shall be furnished to the claimant prior to the termination of the
initial 90-day period.  This notice of
extension shall indicate the special circumstances requiring the extension of
time and the date by which the Plan Administrator expects to render its
decision on the claim for benefits.  The
claimant shall be permitted to appeal such denial in accordance with the Review
Procedure set forth below.

 

(c)           Review Panel.

 

The Plan
Administrator shall appoint a “Review Panel,” consisting of three or more
individuals who may (but need not) be employees of the Company.  The Review Panel shall be the named
fiduciary that has the authority to act with respect to any appeal from a
denial of benefits.

 

8

 

(d)           Requests for a Review.

 

Any person
whose claim for benefits is denied in whole or in part, or such person’s duly
authorized representative, may appeal from such denial by submitting a request
for a review of the claim to the Review Panel within 60 days after receiving
written notice of such denial from the Plan Administrator.  A request for review shall be in writing and
shall be addressed as follows:  “Review
Panel under the Gilead Sciences, Inc. Severance Plan, 333 Lakeside Drive,
Foster City, CA 94404” or such other location as communicated to the Participant.  A request for review shall set forth all of
the grounds on which it is based, all facts in support of the request and any
other matters that the claimant deems pertinent.  As part of the review procedure, the claimant or the claimant’s
duly authorized representative may submit written comments, documents, records
and other information related to the claim. 
The Review Panel will consider all comments, documents, records and
other information submitted by the claimant or the claimant’s duly authorized
representative relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit
determination.  The claimant will be
provided, upon request and free of charge, reasonable access to and copies of
all documents, records or other information (all of which must not be
privileged) relevant to the benefit claim. 
The Review Panel may require the claimant to submit such additional
facts, documents or other material as it may deem necessary or appropriate in making
its review.

 

(e)           Decision on Review.

 

The Review
Panel shall act on each request for review and notify the claimant within 60
days after receipt thereof unless special circumstances require an extension of
time, up to an additional 60 days, for processing the request.  If such an extension for review is required,
written notice of the extension shall be furnished to the claimant within the
initial 60-day period.  The Review Panel
shall give prompt, written notice of its decision to the claimant and to the
Plan Administrator.  In the event that
the Review Panel confirms the denial of the claim for benefits, in whole or in
part, such notice shall set forth, in a manner calculated to be understood by
the claimant, the specific reasons for such denial, specific references to the
Plan provisions on which the decision is based, a statement that the claimant
is entitled to receive, upon request and free of charge, reasonable access to
and copies of all documents, records and other information relevant to the benefit
claim, a statement describing any voluntary appeal procedures offered by the
Plan and the claimant’s right to obtain information about such procedures, and
a statement informing the claimant of his or her right to bring a civil action
under ERISA section 502(a).

 

(f)            Rules and Procedures.

 

The Review
Panel shall establish such rules and procedures, consistent with the Plan and
with ERISA, as it may deem necessary or appropriate in carrying out its
responsibilities under this Section XII. 
The Review Panel may require a claimant who wishes to submit 

 

9

 

additional
information in connection with an appeal from the denial of benefits to do so
at the claimant’s own expense.

 

(g)           Exhaustion of Remedies.

 

No legal
action for benefits under the Plan shall be brought unless and until the
claimant:

 

(i)            has submitted a
written claim for benefits in accordance with Section XII(a);

 

(ii)           has been notified by
the Plan Administrator that the claim is denied;

 

(iii)          has filed a written
request for a review of the claim in accordance with Section XII(d); and

 

(iv)          has been notified in
writing that the Review Panel has affirmed the denial of the claim.

 

XIII.        BASIS OF PAYMENTS TO AND
FROM PLAN

 

All Severance
Pay Benefits under the Plan shall be paid by the Company.  The Plan shall be unfunded and benefits
hereunder shall be paid only from the general assets of the Company.

 

XIV.        OTHER PLAN INFORMATION

 

(a)           Plan Identification
Numbers.

 

The Employer
Identification Number (EIN) assigned to the Plan Sponsor (Gilead Sciences,
Inc.) by the Internal Revenue Service is 94-3047598.  The Plan Number (PN) assigned to the Plan by the Plan Sponsor
pursuant to instructions of the Internal Revenue Service is 508.

 

(b)           Ending Date of the
Plan’s Fiscal Year.

 

The date of
the end of the year for the purpose of maintaining the Plan’s fiscal records is
December 31.

 

(c)           Agent for the Service
of Legal Process.

 

The agent for
the service of legal process with respect to the Plan is the Secretary of
Gilead Sciences, Inc., 333 Lakeside Drive, Foster City, CA 94404.  The service of legal process may also be
made on the Plan by serving the Plan Administrator.

 

(d)           Plan Sponsor and
Administrator.

 

The “Plan
Sponsor” and the “Plan Administrator” of the Plan is Gilead Sciences, Inc., 333
Lakeside Drive, Foster City, CA 94404; 650-522-5800 or such other location as 

 

10

 

communicated
to the Participant.  The Plan
Administrator is the named fiduciary charged with responsibility for
administering the Plan.

 

XV.         STATEMENT OF ERISA RIGHTS

 

(a)           As a participant in
this Plan (which is a welfare plan sponsored by the Company), you are entitled
to the following rights and protection under ERISA:

 

(b)           Examine, without
charge, at the Plan Administrator’s office and at other specified locations
such as work sites, all Plan documents, collective bargaining agreements and
copies of all documents filed by the Plan with the U.S. Department of Labor.

 

(c)           Obtain copies of all
Plan documents and other Plan information upon written request to the Plan
Administrator.  The Plan Administrator
may make a reasonable charge for the copies.

 

(d)           In addition to creating
rights for Plan Participants, ERISA imposes duties upon the people responsible
for the operation of the employee benefit Plan.  The people who operate your Plan, called “fiduciaries” of the
Plan, have a duty to do so prudently and in the interest of you and other Plan
Participants and Beneficiaries.

 

(e)           No one, including your
employer, your union, nor any other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a Plan
benefit or exercising your rights under ERISA. 
If your claim for a Plan benefit is denied in whole or in part, you must
receive a written explanation of the reason for the denial.  You have the right to have the claim
reviewed and reconsidered.

 

(f)            Under ERISA, there are
steps you can take to enforce the above rights.  For instance, if you request materials from the Plan and do not
receive them within 30 days, you may file suit in a federal court.  In such a case, the court may require the
Plan Administrator to provide the materials and pay you up to $110 a day until
you receive the materials, unless the materials were not sent because of
reasons beyond the control of the Plan Administrator.  If you have a claim for benefits which is denied or ignored, in
whole or in part, you may file suit in a state or federal court.  If it should happen that the Plan fiduciaries
misuse the Plan’s money, or if you are discriminated against for asserting your
rights, you may seek assistance from the U.S. Department of Labor, or you may
file suit in a federal court.  The court
will decide who should pay court costs and legal fees.  If you are successful, the court may order
the person you have sued to pay these costs and fees. If you lose, the court
may order you to pay these costs and fees, for example, if it finds your claim
is frivolous.

 

(g)           If you have any
questions about your Plan, you should contact the Plan Administrator.  If you have any questions about this
statement or about your rights under ERISA, you should contact the nearest
office of the U.S. Labor-Management Services Administration, Department of
Labor.

 

11

 

XVI.        AVAILABILITY OF PLAN
DOCUMENTS FOR EXAMINATION

 

ERISA requires
Gilead Sciences, Inc., as the Plan Administrator of a benefit plan sponsored by
the Company, to make available for your examination the Plan documents under
which the Plan is established and operated.

 

The pertinent
Plan documents include official Plan texts and any other documents under which
the Plan is established or operated, and applicable collective bargaining
agreements.

 

These Plan documents
are available for your examination at the Plan Administrator’s office, 333
Lakeside Drive, Foster City, CA 94404, and at certain other locations such as
the Company’s Human Resources offices.

 

XVII.       DEFINITIONS

 

(a)           “Affiliate” means a
member of the Affiliated Group other than Gilead Sciences, Inc. and any
Subsidiary.

 

(b)           “Affiliated Group”
means Gilead Sciences, Inc., each Subsidiary and each other entity that has
been designated in writing as a member of the Affiliated Group by the Company.

 

(c)           “Beneficiary” means the
person or persons so designated by a Participant. A Participant may change or
revoke a designation of a Beneficiary at any time.  To be effective, any designation of a Beneficiary, or any change
or revocation thereof, must be made in writing on the prescribed form, must be
received by the Company (in a form acceptable to the Company) before the
Participant’s death.  If a Participant
fails to make a valid designation of a Beneficiary, or if the validly
designated Beneficiary is not living when a payment is to be made to a
Beneficiary hereunder, the Participant’s Beneficiary shall be the Participant’s
spouse if then living or, if not, the Participant’s then living children in
equal shares or, if none, the Participant’s estate.

 

(d)           “Buyer” means an entity
that purchases (or has purchased) some or all of the Affiliated Group’s
interest applicable to the operation in which the Participant is employed, or
an entity that is a direct or indirect successor in ownership or management of
the operation in which the Participant is employed.  Notwithstanding the above, Buyer shall not include the entity
that effectuates a Change in Control.

 

(e)           “Change in Control”
means a change in control of the Company as defined in Section 10(b) of the
Gilead Sciences, Inc. 1991 Stock Option Plan, as it may be amended from time to
time or any successor to such provision.

 

(f)            “Company” means Gilead
Sciences, Inc.  Where the context
requires, “Company” also includes its Subsidiaries, and any of their Successors
and Assigns.

 

12

 

(g)           “Continuous
Service” means the sum of the following:

 

(i)            Any
period of time during which a person qualifies as an Eligible Employee or,
having once so qualified, is on a leave of absence with pay, a paid vacation or
holiday or is receiving benefits under the Company’s short-term disability
plan; or;

 

(ii)           Any other period that
constitutes Continuous Service under written rules or procedures adopted from
time to time by the Company, subject to such terms and conditions as the
Company may establish; and any period of time while employed by Company’s
Successor or Assigns that that would have constituted Continuous Service if the
service had been with the Company prior to the Change in Control.

 

If an Eligible
Employee’s Continuous Service is interrupted and the Eligible Employee
subsequently returns to a status that constitutes Continuous Service, such
prior Continuous Service shall be disregarded for all purposes of the Plan
except that if an Eligible Employee is reemployed within one year following
termination of Continuous Service, all prior Continuous Service and the time
period between the date of  termination
and reemployment will be considered Continuous Service.

 

(h)           “Eligible Employee” means
any common law employee on the U.S. dollar payroll of the Company who (i) is
not on the payroll of a person other than the Company and who for any reason is
deemed to be a common law employee of the Company; (ii) is not considered to be
an independent contractor by the Company in its sole discretion regardless of
whether the individual is in fact a common law employee of the Company; and
(iii) who at termination of employment with the Company is not on a Leave of
Absence Without Pay.  An individual’s status
as an Eligible Employee shall be determined by the Company in its sole
discretion, and such determination shall be conclusively binding on all
persons.  Notwithstanding the foregoing,
any current or former employee of Triangle Pharmaceuticals, Inc. whose
employment with all members of the Affiliated Group is involuntarily terminated
as a result of the Company’s acquisition of Triangle Pharmaceuticals, Inc.
prior to January 23, 2004 shall be covered by the terms of the Triangle
Pharmaceuticals, Inc. Severance Program and shall not be an “Eligible Employee”
for purposes of this Plan nor eligible to receive any benefits under this
Plan.  In addition, “Eligible Employee”
does not include an employee or former employee of an entity the stock or
assets of which are acquired by the Company, unless and until the Company’s
management determines that the Plan shall be applicable to such employees or
former employees.

 

(i)             “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time-to-time.

 

(j)             “Family Leave” means
a leave under the Company’s family leave policy.

 

(k)           “Leave of Absence
Without Pay” means a leave of absence without pay under the Company’s leave of
absence policy.

 

13

 

(l)            “Outsourcing Supplier”
means an entity to whom the Company outsources a function performed by Eligible
Employees where the Company agrees with such entity in the outsourcing
agreement that it will offer jobs to current Eligible Employees performing that
function for the Company.

 

(m)          “Participant” means any
Eligible Employee who has commenced participation in the Plan pursuant to
Section II and whose participation has not terminated pursuant to Section III.

 

(n)           “Plan” means the Gilead
Sciences, Inc. Severance Plan.

 

(o)           “Plan Administrator”
means the Company.

 

(p)           “Regular Earnings”
means straight-time wages or salary paid to a Participant by any entity within
the Affiliated Group for working a regular work schedule or for a leave of
absence with pay, and shall include any amount that is contributed to any
employee benefit plan on behalf of the Participant by any entity within the
Affiliated Group under a salary reduction agreement entered into pursuant to
such plan and that is excluded from the Participant’s gross income under
section 125, 132(f), or 402(a)(8) of the Internal Revenue Code of 1986, as
amended.

 

(q)           “Release” means a
Release in the form prescribed by the Company in its sole discretion. Pursuant
to such Release, the Participant shall waive all employment-related claims in
connection with his or her employment with the Company other than claims for
benefits under the actual terms of an employee benefit plan and worker’s
compensation.  For employees subject to
the Age discrimination in Employment Act, such Release shall be construed to
comply with the requirements of the Older Workers’ Benefit Protection Act, 29
U.S.C. § 626(f).  The form of Release
may vary among categories of employees and from employee to employee within any
category of employees.

 

(r)            “Severance Pay
Benefit” means a benefit provided by the Plan, as determined pursuant to
Section IV.

 

(s)           “Subsidiary” means any
corporation with respect to which Gilead Sciences, Inc., one or more
Subsidiaries, or Gilead Sciences, Inc., together with one or more Subsidiaries,
own not less than 80% of the total combined voting power of all classes of
stock entitled to vote, or not less than 80% of the total value of al shares of
all classes of stock.

 

(t)            “Successors and
Assigns” means a corporation or other entity acquiring all or substantially all
the assets and business of the Company (including the Plan) whether by
operation of law or otherwise.

 

(u)           “Year of Continuous
Service” means the number of full months (as defined by the Company in written
rules adopted by it from time to time) of Continuous Service, divided by 12.

 

14

 

XVIII.     EXECUTION

 

Pursuant to
the authority granted by resolutions adopted by the board of directors of
Gilead Sciences, Inc. on January 29, 2003, the Company has caused its
authorized officer to execute the foregoing Plan as adopted effective as of
that date.

 

 

	
   

  	
  GILEAD
  SCIENCES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ John C.
  Martin

  	
   

  
	
   

  	
  By:

  	
  John C.
  Martin, President and

  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  January 29,
  2003

  	
   

  
					

 

15

 

APPENDIX A

 

Chief Executive Officer

Severance Benefits

 

 

A.            If
termination of employment with all members of the Affiliated Group occurs
within 24 months following a Change in Control, then the Severance Pay Benefit
shall be:

 

1.             Three
times annual Regular Earnings, plus three times the greater of (a) the last
bonus paid under the Management Bonus Plan or (b) the target bonus under the
Management Bonus Plan for the bonus year in which employment terminates.

 

2.             If
the Participant has elected to receive payment of his or her Severance Pay
Benefit in the form provided in Section V (a) (iv), then the Participant shall
be eligible for continuation of coverage under and Company contributions toward
the cost of the Company’s health and welfare plans for 36 months following the
date of termination of employment.  Such
continuation period shall reduce the number of months of COBRA coverage to which
the Participant is entitled.

 

3.             Outplacement
services for 12 months following the date of termination of employment.

 

4.             An
additional payment in an amount such that after payment by the Eligible
Employee of all taxes (including, without limitation, any income and employment
taxes and any interest and penalties imposed thereon) and the excise tax
imposed on such additional payment pursuant to section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”), the Eligible Employee retains an
amount equal to the excise tax imposed on the Severance Pay Benefit pursuant to
section 4999 of the Code.  All
calculations required pursuant to this provision shall be performed by the
independent accountants retained by the Company most recently prior to the
Change in Control, based on information supplied by the Company and the
Eligible Employee.  Such calculations
shall be conclusive and binding on all interested persons.

 

B.            If
termination of employment with all members of the Affiliated Group occurs at
any time other than within 24 months following a Change in Control and upon
completion of six or more months of Continuous Service, then the Severance Pay
Benefit shall be:

 

1.             Two
times annual Regular Earnings plus two times the target bonus under the
Management Bonus Plan for the bonus year in which employment terminates,
prorated for the number of months of employment in the bonus year.

 

2.             If
the Participant has elected to receive payment of his or her Severance Pay
Benefit in the form provided in Section V (a) (iv), then the Participant shall
be eligible for continuation of coverage under and Company contributions toward
the cost of the Company’s health and welfare plans for 24 months following the
date 

 

16

 

of termination
of employment.  Such continuation period
shall reduce the number of months of COBRA coverage to which the Participant is
entitled.

 

3.             Outplacement
services for 12 months following the date of termination of employment.

 

17

 

APPENDIX B

 

Executive Vice President and

Senior Vice President

Severance Benefits

 

 

A.            If
termination of employment with all members of the Affiliated Group occurs
within 18 months following a Change in Control, then the Severance Pay Benefit
shall be:

 

1.             2.5
times annual Regular Earnings, plus 2.5 times the greater of (a) the last bonus
paid under the Management Bonus Plan or (b) the target bonus under the
Management Bonus Plan for the bonus year in which employment terminates.

 

2.             If
the Participant has elected to receive payment of his or her Severance Pay
Benefit in the form provided in Section V (a) (iv), then the Participant shall
be eligible for continuation of coverage under and Company contributions toward
the cost of the Company’s health and welfare plans for 30 months following the
date of termination of employment.  Such
continuation period shall reduce the number of months of COBRA coverage to
which the Participant is entitled.

 

3.             Outplacement
services for 6 months following the date of termination of employment.

 

4.             An
additional payment in an amount such that after payment by the Eligible
Employee of all taxes (including, without limitation, any income and employment
taxes and any interest and penalties imposed thereon) and the excise tax imposed
on such additional payment pursuant to section 4999 of the Internal Revenue
Code of 1986, as amended (the “Code”), the Eligible Employee retains an amount
equal to the excise tax imposed on the Severance Pay Benefit pursuant to
section 4999 of the Code.  All
calculations required pursuant to this provision shall be performed by the
independent accountants retained by the Company most recently prior to the
Change in Control, based on information supplied by the Company and the
Eligible Employee.  Such calculations
shall be conclusive and binding on all interested persons.

 

B.            If
termination of employment with all members of the Affiliated Group occurs at
any time other than within 18 months following a Change in Control and upon
completion of six or more months of Continuous Service, then the Severance Pay
Benefit shall be:

 

1.             1.5
times annual Regular Earnings plus 1.5 times the target bonus under the
Management Bonus Plan for the bonus year in which employment terminates,
prorated for the number of months of employment in the bonus year.

 

2.             If
the Participant has elected to receive payment of his or her Severance Pay
Benefit in the form provided in Section V (a) (iv), then the Participant shall
be eligible for continuation of coverage under and Company contributions toward
the 

 

18

 

cost of the
Company’s health and welfare plans for 18 months following the date of
termination of employment.  Such
continuation period shall reduce the number of months of COBRA coverage to
which the Participant is entitled.

 

3.             Outplacement
services for 6 months following the date of termination of employment.

 

19

 

APPENDIX C

 

Vice President and Senior Advisor

Severance Benefits

 

 

A.            For
Vice Presidents and Senior Advisors, if termination of employment with all
members of the Affiliated Group occurs within 12 months following a Change in
Control, then the Severance Pay Benefit shall be:

 

1.             Two
times annual Regular Earnings, plus two times the greater of (a) the last bonus
paid under the Management Bonus Plan or (b) the target bonus under the
Management Bonus Plan for the bonus year in which employment terminates.

 

2.             If
the Participant has elected to receive payment of his or her Severance Pay
Benefit in the form provided in Section V (a) (iv), then the Participant shall
be eligible for continuation of coverage under and Company contributions toward
the cost of the Company’s health and welfare plans for 24 months following the
date of termination of employment.  Such
continuation period shall reduce the number of months of COBRA coverage to
which the Participant is entitled.

 

3.             Outplacement
services for 6 months following the date of termination of employment.

 

4.             An
additional payment in an amount such that after payment by the Eligible
Employee of all taxes (including, without limitation, any income and employment
taxes and any interest and penalties imposed thereon) and the excise tax
imposed on such additional payment pursuant to section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”), the Eligible Employee retains an
amount equal to the excise tax imposed on the Severance Pay Benefit pursuant to
section 4999 of the Code.  All
calculations required pursuant to this provision shall be performed by the
independent accountants retained by the Company most recently prior to the
Change in Control, based on information supplied by the Company and the
Eligible Employee.  Such calculations
shall be conclusive and binding on all interested persons.

 

B.            For
Vice Presidents, if termination of employment with all members of the
Affiliated Group occurs at any time other than within 12 months following a
Change in Control and upon completion of six or more months of Continuous Service,
then the Severance Pay Benefit shall be:

 

1.             One
time annual Regular Earnings, plus one time the target bonus under the
Management Bonus Plan for the bonus year in which employment terminates,
prorated for the number of months of employment in the bonus year.

 

2.             If
the Participant has elected to receive payment of his or her Severance Pay
Benefit in the form provided in Section V (a) (iv), then the Participant shall
be 

 

20

 

eligible for
continuation of coverage under and Company contributions toward the cost of the
Company’s health and welfare plans for 12 months following the date of
termination of employment.  Such
continuation period shall reduce the number of months of COBRA coverage to
which the Participant is entitled.

 

3.             Outplacement
services for 6 months following the date of termination of employment.

 

Senior Advisors shall not be
entitled to any benefits under Section B of this Appendix C.

 

21

 

APPENDIX D

 

Severance Benefits for Eligible Employees

other than Chief Executive Officer,

Executive Vice President, Senior Vice
President,

Vice President and Senior Advisor

 

 

A.            Eligible
Employees in Grades 9 through 11 Who Have Completed Six or More Months of
Continuous Service:

 

1.             Three
weeks of Regular Earnings times Years of Continuous Service, with a maximum of
52 weeks of Regular Earnings and a minimum of 22 weeks of Regular Earnings.

 

2.             Outplacement
services for six months following the date of termination of employment.

 

3.             If
the Participant has elected to receive payment of his or her Severance Pay
Benefit in the form provided in Section V (a) (iv), then the Participant shall
be eligible for continuation of coverage under and Company contributions toward
the cost of the Company’s health and welfare plans for the period of severance
pay.  Such continuation period shall
reduce the period of COBRA coverage to which the Participant is entitled.

 

B.            Eligible
Employees in Grades 5 through 8 Who Have Completed Six or More Months of
Continuous Service:

 

1.             Three
weeks of Regular Earnings times Years of Continuous Service, with a maximum of
39 weeks of Regular Earnings and a minimum of 13 weeks of Regular Earnings.

 

2.             If
the Participant has elected to receive payment of his or her Severance Pay
Benefit in the form provided in Section V (a) (iv), then the Participant shall
be eligible for continuation of coverage under and Company contributions toward
the cost of the Company’s health and welfare plans for the period of severance
pay.  Such continuation period shall
reduce the period of COBRA coverage to which the Participant is entitled.

 

3.             Outplacement
services for 3 months following the date of termination of employment.

 

C.            Eligible
Employees in Grades 1 through 4 Who Have Completed Six or More Months of
Continuous Service:

 

1.             Three
weeks of Regular Earnings times Years of Continuous Service, with a maximum of
26 weeks of Regular Earnings and a minimum of nine weeks of Regular Earnings.

 

22

 

2.             If
the Participant has elected to receive payment of his or her Severance Pay
Benefit in the form provided in Section V (a) (iv), then the Participant shall
be eligible for continuation of coverage under and Company contributions toward
the cost of the Company’s health and welfare plans for the period of severance
pay.  Such continuation period shall
reduce the period of COBRA coverage to which the Participant is entitled.

 

3.             Group
outplacement services for a week or less following the date of termination of
employment.

 

D.            Eligible
Employees Who Have Not Completed Six or More Months of Continuous Service and
who have terminated employment with all members of the Affiliated Group within
12 months following a Change in Control:

 

1.             Three
weeks of Regular Earnings.

 

2.             If
the Participant has elected to receive payment of his or her Severance Pay
Benefit in the form provided in Section V (a) (iv), then the Participant shall
be eligible for continuation of coverage under and Company contributions toward
the cost of the Company’s health and welfare plans for the period of severance
pay.  Such continuation period shall
reduce the period of COBRA coverage to which the Participant is entitled.

 

3.             Outplacement
services as provided in A.2, B.3, or C.3 above, determined with reference to
the Eligible Employee’s Grade.

 

Note:  An Employee who has not completed six or
more months of Continuous Service and whose employment with all members of the
Affiliated Group has terminated other than 12 months following a Change in
Control is not entitled to any benefits under the Plan.

 

23Exhibit
10.64

 

THIRD AMENDMENT TO LICENSE AGREEMENT

 

This Third Amendment to License Agreement (“Third
Amendment”) is effective as of the 31st day of May, 2002 (the “Effective
Date”), by and among Triangle Pharmaceuticals, Inc., a Delaware corporation
with principal offices located at 4 University Place, 4611 University Drive,
Durham, North Carolina 27707 (“COMPANY”) and Emory University, a not-for-profit
Georgia corporation with offices at 1380 South Oxford Road, N.E., Atlanta,
Georgia 30322 (“LICENSOR”), and amends certain terms of that certain License
Agreement, dated April 17, 1996, between LICENSOR and COMPANY, as amended by
the First Amendment to License Agreement, dated May 6, 1999 (“First Amendment”)
and as further amended by the Second Amendment to License Agreement dated July
10, 2000 (“Second Amendment”) (such License Agreement as amended by the First
Amendment and the Second Amendment is referred to herein as the “Agreement”).

 

RECITALS:

 

A.            LICENSOR and COMPANY
have previously entered into the Agreement, pursuant to which LICENSOR has
licensed certain patent rights and know-how owned or controlled by LICENSOR to
COMPANY relating to FTC (as defined in the Agreement);

 

B.            LICENSOR has entered a
SETTLEMENT AND EXCLUSIVE LICENSE AGREEMENT with SMITHKLINE-BEECHAM CORP. d/b/a
GLAXOSMITHKLINE, GLAXO GROUP LIMITED, GLAXOSMITHKLINE, Inc. (collectively
“GSK”), SHIRE PHARMACEUTICALS GROUP PLC and SHIRE BIOCHEM, INC. (collectively
“SHIRE”) dated May 31, 2002 (the “GSK/SHIRE AGREEMENT”), pursuant to which LICENSOR
obtained rights under certain patents and patent applications owned or
controlled by SHIRE and relating to FTC;

 

C.            LICENSOR and COMPANY
desire to amend the Agreement to reflect the sublicensing by LICENSOR to
COMPANY of the patents and patent applications licensed to LICENSOR pursuant to
the GSK/SHIRE AGREEMENT; and

 

D.            LICENSOR and COMPANY
have agreed to the modification of certain of the milestone provisions of the
Agreement and desire to amend the Agreement to reflect these modifications.

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are acknowledged by each of the parties,
COMPANY and LICENSOR hereby agree as follows:

 

1

 

1.             Definitions.

 

1.1       Use of Existing
Definitions. All terms used in this Third Amendment and not otherwise
defined herein shall have the same meanings ascribed to them in the Agreement.

 

1.2       Amendment of Definitions.
The Agreement is hereby amended to provide that:

 

1.2.1            The term “GSK/SHIRE
AGREEMENT” shall mean the SETTLEMENT AND EXCLUSIVE LICENSE AGREEMENT between
LICENSOR and SMITHKLINE-BEECHAM CORP. d/b/a GLAXOSMITHKLINE, GLAXO GROUP
LIMITED, GLAXOSMITHKLINE, Inc., SHIRE PHARMACEUTICALS GROUP PLC and SHIRE
BIOCHEM, INC. dated May 31, 2002.

 

1.2.2            The term “Licensed
Patents” (defined in Section 1.13 of the Agreement) shall mean all of the
patents and patent applications included within “Licensed Patents,” as defined
in the Agreement before this Third Amendment, together with all of the patents
and patent applications included within “Shire FTC-Only Patents” and the “Shire
FTC-Plus Patents,” as defined in Sections 1.15 and 1.16 respectively of the
GSK/SHIRE AGREEMENT.

 

1.2.3            The term “Yale
Agreement” (defined in Section 1.28 of the Agreement) shall mean the License
Agreement between LICENSOR and Yale University dated as of May 26, 1993, as
amended and restated effective May 6, 1999, true and correct copies of both the
original and the amended and restated agreements having been provided by
LICENSOR to COMPANY.

 

2.     Amendment of Other
Provisions of the Agreement. The provisions of the Agreement, other than
definitions, are hereby amended as follows:

 

2.1       Appendix A. Appendix
A is replaced with Appendix A to this Third Amendment.

 

2.2       Section 2.1 is deleted in
its entirety and replaced with the following:

 

“Insofar as it is
permitted to do so under the GSK/SHIRE AGREEMENT with respect to the “Shire
FTC-Only Patents” and the “Shire FTC-Plus Patents,” as defined in Sections 1.15
and 1.16 of such agreement, respectively, LICENSOR hereby grants COMPANY and
its Affiliates the exclusive right and license to practice the Licensed Patents
and the Licensed Technology to make, have made, use, import, offer for sale and
sell Licensed Products within the Field of Use in the Licensed Territory during
the term of this Agreement. COMPANY acknowledges that it has received a copy of
the GSK/SHIRE AGREEMENT and agrees to the confidentiality obligations imposed
on sublicensees under Article 9 and Section 13.3 of the GSK/SHIRE AGREEMENT.”

 

2

 

2.3       Amendment of Section 3.2.

 

2.3.1            Subsection 3.2(a) is
deleted in its entirety and replaced with the following:

 

“(a) Subject to the
provisions of Section 6.2 below, COMPANY shall pay LICENSOR a milestone payment
(“Milestone Payment”) in the amount specified below no later than the
corresponding date specified below or, when no date is specified, *** after the
occurrence of the corresponding event designated below, unless COMPANY has
given LICENSOR notice of termination prior to such due date:

 

 

***

 

Total Milestone Payments                                                 ***

 

2.3.2            Subsection 3.2(b) is
deleted in its entirety.

 

2.4       Amendment of Section
3.13.

 

2.4.1            The title of Section
3.13 is amended to read: “Maintenance of Third-Party Agreements.”

 

2.4.2            The following new
Subsection (c) is added to Section 3.13:

 

“(c)        LICENSOR covenants that, during the term
of this Agreement, it will:

 

(i)        fulfill all of its
obligations under the GSK/SHIRE AGREEMENT;

 

(ii)       take no action or omit to
take any action which would cause it to be in breach of any provision of the
GSK/SHIRE AGREEMENT; and

 

(iii)      immediately notify COMPANY
in the event LICENSOR receives notice from GSK or SHIRE that LICENSOR is in
breach or default under the GSK/SHIRE AGREEMENT. In the event of any default of
the type described in this clause (iii), LICENSOR agrees that if it fails or
does not intend to cure such default, COMPANY may, at COMPANY’s option, do so
and may offset any reasonable expenses COMPANY incurs in curing such default.”

 

*** Portions of this page have been omitted pursuant
to a request for Confidential Treatment and filed separately with the
Commission.

 

3

 

2.5       Amendment of Subsection
6.2(a). Subsection 6.2(a) is deleted in its entirety and replaced with the
following:

 

“(a)              For purposes of this
Agreement, “best efforts” shall mean that COMPANY shall use reasonable efforts
including, to the extent appropriate, pursuing sublicenses and corporate
alliances consistent with those used by comparable pharmaceutical companies in
the United States in research and development projects for therapeutic methods
or compositions deemed to have commercial value comparable to the Licensed
Products. COMPANY’s best efforts obligations set forth in this Article 6 and
implied by law shall be deemed to have been fulfilled if COMPANY: (i) files an
NDA for a Licensed Product for
***         in a Major Market Country
by the end of the ***    after the date of this Agreement;
and (ii) diligently pursues such Registrations for
      ***; and (iii) commences marketing at least
one Licensed Product within
***        following such Registration.
COMPANY shall be entitled to obtain three consecutive extensions of time for
meeting its obligations to file an NDA for
***        in a Major Market Country by
paying LICENSOR ***        for a first
extension of ***        duration
(which, subsequent to the Effective Date, has been paid by COMPANY to
LICENSOR), ***         for a second
extension of ***        duration, and
        ***        for
a third extension up to        ***.  In the event that COMPANY has not filed an
NDA for ***        in a Major Market
Country
        ***        and
has not given notice of termination prior to         ***,
COMPANY shall pay the Milestone Payment of
        ***        as
set forth in Subsection 3.2(a)(vi) above, which shall accrue
        ***        and
shall be payable in
***        installments to be received
by the LICENSOR on or before the ***        of
each month commencing on ***        and
ending on ***, provided further that, should COMPANY file the NDA prior to ***,
the balance of such Milestone Payment shall be paid to LICENSOR within
***        business days of such
filing. Such payments shall extend the date set forth above in Subsection
3.2(a)(vi) for filing an NDA for
***        in a Major Market Country
until         ***. If COMPANY has not
filed such an NDA by ***        and has
not given notice of termination prior to
        ***, COMPANY may obtain a
further ***        extension of the
time for doing so upon paying
        ***        
to LICENSOR. Payment for any such extension discussed in this section must be
received by LICENSOR within ***        
business days following the expiration of the period during which any diligence
obligation was required to be met. COMPANY shall provide reports to LICENSOR
every *** days following its NDA filing(s) concerning the status of such
filing(s) until final approval thereof. Each such report shall describe the
status of the COMPANY’s NDA and disclose any request for additional information
or data received by COMPANY from the FDA during 

 

*** Portions of this page have been omitted pursuant
to a request for Confidential Treatment and filed separately with the
Commission.

 

4

 

the reporting
period and COMPANY’s plans for complying with such request. COMPANY shall
immediately notify LICENSOR if COMPANY determines that it is unwilling to
comply with any FDA requirement the failure with which to comply would result
in the given Licensed Product being unapprovable by the FDA (which notice is
hereinafter referred to as a “Failure of Diligence Notice”). Upon receipt of
such Failure of Diligence Notice, COMPANY shall be deemed to have failed to
meet its diligence obligations, and LICENSOR may thereafter invoke any remedy
provided for in this Article without any further notice to COMPANY.”

 

2.6       Amendment of Section
8.1. Section 8.1 is amended by adding the following clause at the beginning
of the second sentence: “Subject to the rights of SHIRE with respect to patents
owned or controlled by SHIRE,”.

 

3.             General Terms.

 

3.1        Unamended Terms of
Agreement Remain in Effect. Except as expressly amended hereby, the
remaining terms of the Agreement shall remain in full force and effect.

 

3.2        Entire Agreement.
The Agreement, as amended by this Third Amendment, constitutes the entire
agreement between LICENSOR and COMPANY regarding the subject matters contained
herein.

 

3.3        Conflicts. In the
event of any conflict between the provisions of the Agreement and this Third
Amendment, the provisions of this Third Amendment shall govern and control.

 

3.4        Governing Law. This
Third Amendment shall be governed by, and construed in accordance with, the
laws of the State of Georgia without regard to its conflicts of laws
principles.

 

3.5        Counterparts. This
Third Amendment may be executed in any number of counterparts, each of which
shall be deemed an original and all of which shall constitute one and the same
instrument.

 

3.6        Survival of Provisions.
If any provision of this Third Amendment is for any reason held to be
ineffective, unenforceable or illegal, such condition shall not affect the
validity or enforceability of any of the remaining portions hereof; provided,
further, that the parties shall negotiate in good faith to replace any
ineffective, unenforceable or illegal provision with an effective replacement
as soon as is practical.

 

[Signature page follows]

 

5

 

IN WITNESS WHEREOF, LICENSOR and COMPANY have each executed this Third
Amendment through an authorized officer as of the date first written above.

 

 

	
   

  	
  EMORY UNIVERSITY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary L. Severson

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Assistant Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  January 16, 2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TRIANGLE PHARMACEUTICALS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Andrew Finkle

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Executive Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  January 17, 2003

  	
   

  

 

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