Document:

Form of employee stock option agreement used under 2004 EIP

 Exhibit 10.16 
 GILEAD SCIENCES, INC. 
 STOCK OPTION AGREEMENT

 RECITALS 
 A.        Optionee is to render valuable services to the Corporation (or a Related Entity), and this Agreement is executed pursuant to, and is intended to carry out
the purposes of, the Plan in connection with the Corporation’s grant of an option to Optionee. 
 B.        All capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 
    NOW, THEREFORE, the Corporation hereby grants an option to Optionee upon the following terms and conditions: 
    1.        Grant of
Option.    The Corporation hereby grants to the person identified on attached Schedule I (the “Optionee”) an option to purchase shares of Common Stock under the Plan. The date on which this option is granted
(the “Grant Date”), the number of shares of Common Stock purchasable under this option (the “Option Shares”), the exercise price payable per share (the “Exercise Price”), the applicable vesting schedule by which this
option shall vest and become exercisable incrementally for the Option Shares (the “Vesting Schedule”) and the date to be used to measure the maximum term of this option (the “Expiration Date”) are also indicated on attached
Schedule I to this Agreement. The option is a non-statutory option under the U.S. federal income tax laws. The remaining terms and conditions governing this option shall be as set forth in this Agreement. 
    2.        Option Term.    The
term of this option shall commence on the Grant Date and continue to be in effect until the close of business on the last business day prior to the Expiration Date specified in attached Schedule I, unless sooner terminated in accordance with
Paragraph 5 or 6 below. 
    3.        Limited
Transferability. 
               (a)        This option may be assigned in whole or in part during Optionee’s lifetime to a Living Trust. The
assigned portion may only be exercised by the Living Trust. The terms applicable to the assigned portion shall be the same as those in effect for the option immediately prior to such assignment and shall be set forth in such documents to be executed
by the Optionee and the Living Trust as the Corporation may deem appropriate. 
               (b)        Except for the limited transferability provided under Paragraph 3(a), this option shall be neither
transferable nor assignable by Optionee other than by will or the laws of inheritance following Optionee’s death and may be exercised, during Optionee’s lifetime, only by Optionee. However, Optionee may designate one or more persons as the
beneficiary or beneficiaries of this option by completing the Corporation’s Universal Beneficiary Designation form and filing the completed form with the Corporation’s Human Resources Department. Should Optionee file such Universal
Beneficiary Designation form and die while holding this option, then this option shall automatically be transferred to the designated

 
beneficiary or beneficiaries. Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of this Agreement, including (without limitation) the
limited time period during which this option may, pursuant to Paragraph 5 below, be exercised following Optionee’s death. 
    4.        Dates of Exercise.    This option shall vest and become exercisable for the Option Shares in a series
of installments in accordance with the Vesting Schedule set forth in attached Schedule I. As the option vests and becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the
accumulated installments until the last business day prior to the Expiration Date or any sooner termination of the option term under Paragraph 5 or 6 below. 
    5.        Cessation of Service.    The option term specified in Paragraph 2 above shall
terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: 
               (a)        Except as otherwise expressly provided in subparagraphs
(b) through (f) of this Paragraph 5, should Optionee cease to remain in Continuous Service for any reason while this option is outstanding, then Optionee shall have until the close of business on the last business day prior to the
expiration of the three (3)-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of
Optionee’s cessation of Continuous Service, but in no event shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date. 
               (b)        In the event Optionee ceases Continuous Service by reason of his or her death while this option is
outstanding, then this option may be exercised, for any or all of the Option Shares for which this option is vested and exercisable at the time of Optionee’s cessation of Continuous Service, by (i) the personal representative of
Optionee’s estate or (ii) the person or persons to whom the option is transferred pursuant to Optionee’s will or the laws of inheritance following Optionee’s death. However, if Optionee dies while holding this option and has an
effective beneficiary designation in effect for this option at the time of his or her death, then the designated beneficiary or beneficiaries shall have the exclusive right to exercise this option following Optionee’s death. Any such right to
exercise this option shall lapse, and this option shall cease to be outstanding, upon the close of business on the last business day prior to the earlier of (i) the expiration of the twelve (12)-month period measured from the date
of Optionee’s death or (ii) the Expiration Date. Upon the expiration of such limited exercise period, this option shall terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been
exercised. 
               (c)        Should Optionee cease Continuous Service by reason of Permanent Disability while this option is
outstanding, then Optionee shall have until the close of business on the last business day prior to the expiration of the twelve (12)-month period measured from the date of such cessation of Continuous Service during which to exercise this option
for any or all of the Option Shares for which this option is vested and exercisable at the time of such cessation of Continuous Service. In no event, however, shall this option be exercisable at any time after the close of business on the last
business day prior to the Expiration Date. 
  

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               (d)        Except as otherwise precluded by Applicable Laws, should (i) Optionee cease Continuous Service after
completion of at least three (3) years of Continuous Service and (ii) the sum of Optionee’s attained age and completed years of Continuous Service at the time of such cessation of service equals or exceeds seventy (70) years,
then Optionee shall have until the close of business on the last business day prior to the expiration of the thirty-six (36)-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or
all of the Option Shares for which this option is vested and exercisable at the time of such cessation of Continuous Service. In no event, however, shall this option be exercisable at any time after the close of business on the last business day
prior to the Expiration Date. 
               (e)        The applicable period of post-service exercisability in effect pursuant to the foregoing provisions of
this Paragraph 5 shall automatically be extended by an additional period of time equal in duration to any interval within such post-service exercise period during which the exercise of this option or the immediate sale of the Option Shares acquired
under this option cannot be effected in compliance with applicable federal and state securities laws, but in no event shall such an extension result in the continuation of this option beyond the close of business on the last business day prior to
the Expiration Date. 
               (f)        Should Optionee’s Continuous Service be terminated for Cause, or should Optionee engage in any other
conduct, while in Continuous Service or following cessation of Continuous Service, that is materially detrimental to the business or affairs of the Corporation (or any Related Entity), as determined in the sole discretion of the Administrator, then
this option, whether or not vested and exercisable at the time, shall terminate immediately and cease to be outstanding. 
               (g)        During the limited period of post-service exercisability provided
under this Paragraph 5, this option may not be exercised in the aggregate for more than the number of Option Shares for which this option is at the time vested and exercisable. Except to the extent (if any) specifically authorized by the
Administrator pursuant to an express written agreement with the Optionee, this option shall not vest or become exercisable for any additional Option Shares, whether pursuant to the normal Vesting Schedule set forth in attached Schedule I or the
special vesting acceleration provisions of Paragraph 6 below, following Optionee’s cessation of Continuous Service. Upon the expiration of such limited exercise period or (if earlier) upon the close of business on the last business day prior to
the Expiration Date, this option shall terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been exercised. 
    6.        Special Acceleration of Option. 
               (a)        This option, to the extent outstanding at the time of an actual Change in Control but not otherwise fully
exercisable, shall automatically accelerate so that this option shall, immediately prior to the effective date of such Change in Control, become exercisable for all of the Option Shares at the time subject to this option and may be exercised for any
or all of those Option Shares as fully vested shares of Common Stock. However, this option shall not become exercisable on such an accelerated basis if and to the extent: (i) this

  

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option is to be assumed by the successor corporation (or parent thereof) or is otherwise to continue in full force and effect pursuant to the terms of the Change in Control transaction,
(ii) this option is to be replaced with an economically-equivalent substitute equity award or (iii) this option is to be replaced with a cash retention program of the successor corporation which preserves the spread existing at the time of
the Change in Control on any Option Shares for which this option is not otherwise at that time vested and exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and provides
for the subsequent vesting and concurrent payout of that spread in accordance with the same Vesting Schedule for those Option Shares as set forth in attached Schedule I. Notwithstanding the foregoing, no such cash retention program shall be
established for this option (or any other option granted to Optionee under the Plan) to the extent such program would otherwise be deemed to constitute a deferred compensation arrangement subject to the requirements of Code Section 409A and the
Treasury Regulations thereunder. 
               (b)        Immediately following the consummation of the Change in Control, this option shall terminate and cease to
be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in effect pursuant to the terms of the Change in Control transaction. 
               (c)        If this option is assumed in connection with a Change in Control or otherwise continued in effect, then
this option shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities into which the shares of Common Stock subject to this option would have been converted in consummation of such
Change in Control had those shares actually been outstanding at the time. Appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the extent the actual holders of the
Corporation’s outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation may, in connection with the assumption or continuation of this option but subject to
the Administrator’s approval, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in Control, provided such common stock is readily
tradable on an established U.S. securities exchange or market. 
               (d)        If this option is assumed or otherwise continued in effect in connection with a Change in Control or
replaced with an economically-equivalent equity award or a cash retention program in accordance with Paragraph 6(a) above, then: 
             (i)        the option (or such economically equivalent award) shall vest and become
immediately exercisable for all of the Option Shares or other securities at the time subject to the option (or such award) and may, within the applicable exercise period under Paragraph 5, be exercised for any or all of those Option Shares or other
securities as fully vested shares or securities, or 
             (ii)        the balance credited to Optionee under any cash retention program established in accordance with Paragraph 6(a)
shall immediately be paid to Optionee in a lump sum, subject to the Corporation’s collection of all applicable Withholding Taxes; 
  

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 if, within the period beginning with the execution date of the definitive agreement for the
Change in Control transaction and ending with the earlier of (i) the termination of that definitive agreement without the consummation of such Change in Control or (ii) the expiration of the Applicable Acceleration Period following the
consummation of such Change in Control, Optionee’s Continuous Service terminates due to an involuntary termination (other than for death or Permanent Disability) without Cause or a voluntary termination by Optionee due to Constructive
Termination. 
               (e)        This Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize
or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
    7.        Adjustment in Option Shares.    Should any change be made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares, spin-off transaction, or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration,
or should the value of outstanding shares of Common Stock be substantially reduced as a result of a spin-off transaction or an extraordinary dividend or distribution, or should there occur any merger, consolidation or other reorganization, then
equitable and proportional adjustments shall be made by the Administrator to (i) the total number and/or class of securities subject to this option and (ii) the Exercise Price. The adjustments shall be made in such manner as the
Administrator deems appropriate in order to reflect such change and thereby prevent the dilution or enlargement of benefits hereunder, and those adjustments shall be final, binding and conclusive upon Optionee and any other person or persons having
an interest in the option. In the event of any Change in Control transaction, the adjustment provisions of Paragraph 6(c) above shall be controlling. 
    8.        Stockholder Rights.    The holder of this option shall not have any stockholder rights with respect to
the Option Shares until such person shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased shares. 
    9.        Manner of Exercising Option. 
               (a)        In order to exercise this option with respect
to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions: 
             (i)        Execute and deliver to the Corporation a Notice of Exercise as to the Option Shares for which the option is exercised
or comply with such other procedures as the Corporation may establish for notifying the Corporation, either directly or through an on-line internet transaction with a brokerage firm authorized by the Corporation to effect such option exercises, of
the exercise of this option for one or more Option Shares. Copies of the Notice of Exercise may be obtained from the Corporation’s intranet at http://gnet/finance/doc/noe.doc. 
  

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             (ii)        Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms: 
         (A)        cash or
check made payable to the Corporation; or 
         (B)        through a special sale and remittance procedure pursuant to which Optionee (or any other person or persons exercising the option) shall
concurrently provide irrevocable instructions (i) to a brokerage firm (reasonably satisfactory to the Corporation for purposes of administering such procedure in accordance with the Corporation’s pre-clearance/pre-notification policies) to
effect the immediate sale of all or a sufficient portion of the purchased shares so that such brokerage firm can remit to the Corporation, on the settlement date, sufficient funds out of the resulting sale proceeds to cover the aggregate Exercise
Price payable for all the purchased shares plus all applicable Withholding Taxes and (ii) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm on such settlement date. 
 Except to the extent the sale and remittance procedure is utilized in connection with the option exercise,
payment of the Exercise Price must accompany the Notice of Exercise (or other notification procedure) delivered to the Corporation in connection with the option exercise. 
             (iii)        Furnish to the Corporation appropriate documentation that the person or persons exercising the option (if other
than Optionee) have the right to exercise this option. 
             (iv)        Make appropriate arrangements with the Corporation (or Parent or Subsidiary employing or retaining Optionee) for the
satisfaction of all applicable Withholding Taxes. 
               (b)        As soon as practical after the Exercise Date, the Corporation shall issue to or on behalf of Optionee (or
any other person or persons exercising this option) a certificate for the purchased Option Shares (either in paper or electronic form), with the appropriate legends affixed thereto. 
               (c)        In no event may this option be exercised for any fractional shares. 
     10.      Compliance with Laws and Regulations.

               (a)        The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to
compliance by the Corporation and Optionee with all Applicable Laws relating thereto. 
  

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            (b)        The inability of the Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to
be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Corporation of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been
obtained. The Corporation, however, shall use its best efforts to obtain all such approvals. 
 11.        Successors and Assigns.    Except to the extent otherwise provided in Paragraphs 3 and 6 above, the provisions of this Agreement shall inure to the benefit
of and be binding upon the Corporation and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this option designated by Optionee.

 12.        Notices.    Any notice
required to be given or delivered to the Corporation under the terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in
writing and addressed to Optionee at the most current address then indicated for Optionee on the Corporation’s employee records or shall be delivered electronically to Optionee through the Corporation’s electronic mail system or through an
on-line brokerage firm authorized by the Corporation to effect option exercises through the internet. All notices shall be deemed effective upon personal delivery or delivery through the Corporation’s electronic mail system or upon deposit in
the U.S. mail, postage prepaid and properly addressed to the party to be notified. 
 13.        Construction.    This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to
the terms of the Plan. In the event of any conflict between the provisions of this Agreement and the terms of the Plan, the terms of the Plan shall be controlling. All decisions of the Administrator with respect to any question or issue arising
under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option. 
 14.        Governing Law.    The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of California without resort
to California’s conflict-of-laws rules. 
 15.        Excess
Shares.    If the Option Shares covered by this Agreement exceed, as of the Grant Date, the number of shares of Common Stock which may without stockholder approval be issued under the Plan, then this option shall be void
with respect to those excess shares, unless stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the provisions of the Plan. In no event shall the
option be exercisable with respect to any of the excess Option Shares unless and until such stockholder approval is obtained. 
 16.        Leaves of Absence.    The following provisions shall govern leaves of absence, except to the extent the application of
such provisions to Optionee would contravene Applicable Laws. 
  

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 (a)       For purposes of this
Agreement, Optionee’s Continuous Service shall not be deemed to cease during any period for which Optionee is on a military leave, sick leave or other personal leave approved by the Corporation. However, Optionee shall not receive any
Continuous Service credit, for purposes of vesting in this option and the Option Shares pursuant to the Vesting Schedule set forth in attached Schedule I, for any period of such leave of absence, except to the extent otherwise required by law or
pursuant to the following policy: 
  

			
	   -        Optionee shall receive Continuous Service credit for such
vesting purposes for (i) the first three (3) months of an approved personal leave of absence or (ii) the first seven (7) months of any bona fide leave of absence (other than an approved personal leave), but in no event beyond the
expiration date of such leave of absence.

 (b)        In no event shall Optionee be deemed to remain in Continuous Service at any time after the earlier of (i) the expiration date of his or her leave of absence, unless Optionee returns to
active Continuous Service on or before that date, or (ii) the date Optionee’s Continuous Service actually terminates by reason of his or her voluntary or involuntary termination or by reason of his or her death or disability. 

17.        Employment at Will.    Nothing in
this Agreement or in the Plan shall confer upon Optionee any right to remain in Employee status for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Related Entity employing
Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Employee status at any time for any reason, with or without Cause. 
 18.        Plan Prospectus.    The official prospectus for the Plan is available on the Corporation’s
intranet at: http://gnet/ HR/stocks_new.asp. Optionee may also obtain a printed copy of the prospectus by contacting Stock Administration either through the internet at stockadministration@gilead.com or by telephoning 650-522-5517.

 19.        Optionee
Acceptance.    Optionee must accept the terms and conditions of this Agreement either electronically through the electronic acceptance procedure established by the Corporation or through a written acceptance delivered to
the Corporation in a form satisfactory to the Corporation. In no event shall this option be exercised in the absence of such acceptance. 
  

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 IN WITNESS WHEREOF, Gilead Sciences, Inc. has caused this Agreement
to be executed on its behalf by its duly-authorized officer on the day and year first indicated above. 
  

			
	 GILEAD SCIENCES, INC.

		
	 By:
	 	 
		
	 Title:
	 	 

  

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 APPENDIX 
 The following definitions shall be in effect under the Agreement: 
 A.        Administrator  shall mean the Compensation Committee of the Board (or a subcommittee thereof) acting in its capacity as
administrator of the Plan. 
 B.        Agreement  shall mean this Stock Option Agreement. 
 C.        Applicable Acceleration Period  shall have the meaning assigned to such term in Section 2(b) of the Plan and shall be
determined on the basis of Optionee’s status on the Grant Date. 
 D.        Applicable Laws  shall mean the legal requirements related to the Plan and the option under applicable provisions of the federal securities laws, state corporate and
state securities laws, the Code, the rules of any applicable Stock Exchange on which the Common Stock is listed for trading, and the rules of any non-U.S. jurisdiction applicable to options granted to residents therein. 
 E.        Board  shall mean the Corporation’s Board of
Directors. 
 F.        Cause  shall, for
purposes of Paragraph 5 of the Agreement, mean the termination of Optionee’s Continuous Service as a result of Optionee’s (i) performance of any act, or failure to perform any act, in bad faith and to the detriment of the Corporation
or a Related Entity; (ii) dishonesty, intentional misconduct, material violation of any applicable Corporation or Related Entity policy, or material breach of any agreement with the Corporation or a Related Entity; or (iii) commission of a
crime involving dishonesty, breach of trust, or physical or emotional harm to any person. However, for purposes of Paragraph 6(d) of the Agreement, Cause shall mean the termination of Optionee’s Continuous Service as a result of
Optionee’s (a) conviction of, a guilty plea with respect to, or a plea of nolo contendere to, a charge that Optionee has committed a felony under the laws of the United States or of any State or a crime involving moral turpitude,
including (without limitation) fraud, theft, embezzlement or any crime that results in or is intended to result in personal enrichment to Optionee at the expense of the Corporation or a Related Entity; (b) material breach of any agreement
entered into between Optionee and the Corporation or a Related Entity that impairs the Corporation’s or the Related Entity’s interest therein; (c) willful misconduct, significant failure to perform his or her duties or gross neglect
of his or her duties; or (d) engagement in any activity that constitutes a material conflict of interest with the Corporation or a Related Entity. 
 G.        Change in Control  shall mean a change in ownership or control of the Corporation effected through any of the following
transactions: 
   (i)        a merger,
consolidation or other reorganization approved by the Corporation’s stockholders, unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the

  

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successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Corporation’s
outstanding voting securities immediately prior to such transaction; 
   (ii)        a sale, transfer or other disposition of all or substantially all of the Corporation’s assets; 
   (iii)        the closing of any transaction or series
of related transactions pursuant to which any person or any group of persons comprising a “group” within the meaning of Rule 13d-5(b)(1) of the 1934 Act (other than the Corporation or a person that, prior to such transaction or series of
related transactions, directly or indirectly controls, is controlled by or is under common control with the Corporation) becomes directly or indirectly (whether as a result of a single acquisition or by reason of one or more acquisitions within the
twelve- (12) month period ending with the most recent acquisition) the beneficial owner (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing (or convertible into or exercisable for securities possessing) more than fifty
percent (50%) of the total combined voting power of the Corporation’s outstanding securities (as measured in terms of the power to vote with respect to the election of Board members) outstanding immediately after the consummation of such
transaction or series of related transactions, whether such transaction involves a direct issuance from the Corporation or the acquisition of outstanding securities held by one or more of the Corporation’s existing stockholders; or 

  (iv)        a change in the composition of the Board
over a period of twelve (12) consecutive months or less such that a majority of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (a) have been Board
members continuously since the beginning of such period or (b) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) above who were still in
office at the time the Board approved such election or nomination. 
 In no event, however, shall a Change in Control be deemed
to occur upon a merger, consolidation or other reorganization effected primarily to change the State of the Corporation’s incorporation or to create a holding company structure pursuant to which the Corporation becomes a wholly-owned subsidiary
of an entity whose outstanding voting securities immediately after its formation are beneficially owned, directly or indirectly, and in substantially the same proportion, by the persons who beneficially owned the Corporation’s outstanding
voting securities immediately prior to the formation of such entity. 
 H.        Code  shall mean the Internal Revenue Code of 1986, as amended. 
 I.         Common Stock  shall mean shares of the Corporation’s common stock. 
  

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 J.        Constructive
Termination  shall have the meaning assigned to such term in Section 11(d) of the Plan. 
 K.        Consultant  shall mean any person, including an advisor, who is compensated by the Corporation or any Related Entity for services performed as a non-employee
consultant; provided, however, that the term “Consultant” shall not include non-employee Directors serving in their capacity as Board members. The term “Consultant” shall include a member of the board of directors
of a Related Entity. 
 L.        Continuous
Service  shall mean the performance of services for the Corporation or a Related Entity (whether now existing or subsequently established) by a person in the capacity of an Employee, Director or Consultant. For purposes of this
Agreement, Optionee shall be deemed to cease Continuous Service immediately upon the occurrence of either of the following events: (i) Optionee no longer performs services in any of the foregoing capacities for the Corporation or any Related
Entity or (ii) the entity for which Optionee is performing such services ceases to remain a Related Entity of the Corporation, even though Optionee may subsequently continue to perform services for that entity. In jurisdictions requiring notice
in advance of an effective termination of Optionee’s service as an Employee, Director or Consultant, Continuous Service shall be deemed terminated upon the actual cessation of such service to the Corporation or a Related Entity notwithstanding
any required notice period that must be fulfilled before Optionee’s termination as an Employee, Director or Consultant can be effective under Applicable Laws. 
 M.        Corporation  shall mean Gilead Sciences, Inc., a Delaware corporation, and any successor corporation to all
or substantially all of the assets or voting stock of Gilead Sciences, Inc. which shall by appropriate action adopt the Plan. 
 N.        Director  shall mean a member of the Board. 
 O.        Employee  shall mean an individual who is in the employ of the Corporation (or any Related Entity), subject
to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 
 P.        Exercise Date  shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of the Agreement.

 Q.        Exercise Price  shall mean the
exercise price payable per Option Share as specified in attached Schedule I. 
 R.        Expiration Date  shall mean the date specified on attached Schedule I for measuring the maximum term for which the option may remain outstanding. 
 S.        Fair Market Value  per share of Common Stock on
any relevant date shall be the closing price per share of Common Stock (or the closing bid, if no sales were reported) on that date, as quoted on the Stock Exchange that is at the time serving as the primary trading market for the Common Stock;
provided, however, that if there no reported closing price or

  

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closing bid for that date, then the closing price or closing bid, as applicable, for the last trading date on which such closing price or closing bid was quoted shall be determinative of such
Fair Market Value. The applicable quoted price shall be as reported in The Wall Street Journal or such other source as the Administrator deems reliable. 
 T.        Grant Date   shall mean the date on which the option is granted, as specified on attached Schedule I.

 U.        Living Trust   shall mean a
revocable living trust established by Optionee or by Optionee and his or her spouse of which Optionee is the sole trustee (or sole co-trustee with his or her spouse) and sole beneficiary (or sole co-beneficiary with his or her spouse) during
Optionee’s lifetime. 
 V.        1934
Act  shall mean the Securities Exchange Act of 1934, as amended from time to time. 
 W.        Non-Statutory Option  shall mean an option not intended to satisfy the requirements of Code Section 422. 
 X.        Notice of Exercise  shall mean the notice of
option exercise in the form authorized by the Corporation. 
 Y.        Option Shares  shall mean the number of shares of Common Stock subject to the option as specified in attached Schedule I. 
 Z.        Optionee  shall mean the person identified in
attached Schedule I to whom the option is granted pursuant to the Agreement. 
 AA.     Parent  shall mean a “parent corporation,” whether now existing or hereafter established, as defined in Section 424(e) of the Code. 
 BB.     Permanent Disability  shall mean the inability of Optionee to
engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which is expected to result in death or to be of continuous duration of twelve (12) months or more. 
 CC.     Plan  shall mean the Corporation’s 2004 Equity Incentive
Plan, as amended from time to time. 
 DD.     Related
Entity  shall mean (i) any Parent or Subsidiary of the Corporation and (ii) any corporation in an unbroken chain of corporations beginning with the Corporation and ending with the corporation in the chain for which
Optionee provides services as an Employee, Director or Consultant, provided each corporation in such chain owns securities representing at least twenty percent (20%) of the total outstanding voting power of the outstanding securities of another
corporation or entity in such chain and there is a legitimate non-tax business purpose for making this option grant to Optionee. 
  

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 EE.     Stock
Exchange  shall mean the American Stock Exchange, the Nasdaq Global or Global Select Market or the New York Stock Exchange. 
 FF.     Subsidiary  shall mean a “subsidiary corporation,” whether now existing or hereafter established, as defined in Section 424(f) of
the Code. 
 GG.     Vesting Schedule  shall mean the schedule
set forth in attached Schedule I, pursuant to which the option is to vest and become exercisable for the Option Shares in a series of installments over Optionee’s period of Continuous Service. 
 HH.     Withholding Taxes  shall mean the federal, state, local and/or
foreign income taxes and the employee portion of the federal, state, local and/or foreign employment taxes required to be withheld by the Corporation in connection with the exercise of the option. 
  

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 SCHEDULE I 
 OPTION GRANT SPECIFICS 
 Name of Optionee:
«FIRST_NAME» «MIDDLE_NAME» «LAST_NAME» 
 Grant Date: «DATE»
«MONTH» «YEAR» 
 Total Number of Option Shares: «SHARES_GRANTED» 
 Exercise Price: «OPTION_PRICE» 
 Vesting Schedule: 
  

							
	 Shares
	  	Vest Type	  	Full Vest Date	  	Expiration Date
	 «SHARES_PERIOD_1»
	  	«VEST_TYPE_PERIOD_1»	  	«VEST_DATE_PERIOD_1»	  	«EXPIRATION_DATE_PERIOD_1»
	 «SHARES_PERIOD_2»
	  	«VEST_TYPE_PERIOD_2»	  	«VEST_DATE_PERIOD_2»	  	«EXPIRATION_DATE_PERIOD_2»
	 «SHARES_PERIOD_3»
	  	«VEST_TYPE_PERIOD_3»	  	«VEST_DATE_PERIOD_3»	  	«EXPIRATION_DATE_PERIOD_3»
	 «SHARES_PERIOD_4»
	  	«VEST_TYPE_PERIOD_4»	  	«VEST_DATE_PERIOD_4»	  	«EXPIRATION_DATE_PERIOD_4»
	 «SHARES_PERIOD_5»
	  	«VEST_TYPE_PERIOD_5»	  	«VEST_DATE_PERIOD_5»	  	«EXPIRATION_DATE_PERIOD_5»

 The option will vest and become exercisable for the number of Option Shares noted on the first line above on the first anniversary of the Grant Date, as noted by the date listed under “Full Vest
Date.” With respect to each subsequent line, the option will vest and become exercisable for the listed Option Shares in equal quarterly installments, beginning one quarter after the Full Vest Date on the previous line and ending on the
corresponding Full Vest Date for the listed Option Shares at issue. Fractional shares will be rounded down to the nearest whole number.Form of performance share award agreement used under the 2004 EIP

 Exhibit 10.26 
 SECTION 16 OFFICERS 
 GILEAD
SCIENCES, INC. 
 PERFORMANCE SHARE AWARD AGREEMENT 
 RECITALS 
 A.        The Corporation has implemented the Plan for the purpose of providing incentives to attract, retain and motivate eligible Employees, Directors and Consultants to continue their service
relationship with the Corporation. 
 B.        Participant is to
render valuable services to the Corporation (or a Related Entity), and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Corporation’s issuance of shares of Common Stock to
Participant thereunder. 
 C.        All capitalized terms in this
Agreement shall have the meaning assigned to them in the attached Appendix A. 
 NOW, THEREFORE, it is hereby agreed as
follows: 
 1.        Grant of Restricted Stock
Units.      The Corporation hereby awards to Participant, as of the Award Date indicated below, an award (the “Award”) of Performance Shares under the Corporation’s 2004 Equity Incentive Plan, as
amended (the “Plan”). Each Performance Share which vests pursuant to the terms of this Agreement shall provide Participant with the right to receive one or more shares of Common Stock on the designated issuance date. The number of shares
of Common Stock subject to the awarded Performance Shares, the applicable performance vesting requirement for those shares, the date on which those vested shares of Common Stock shall become issuable and the remaining terms and conditions governing
the Award, including the applicable service vesting requirement, shall be as set forth in this Agreement. 
 AWARD SUMMARY

  

					
	 Participant
	  	 ___________________________________________________

		
	 Award Date:
	  	 _______________, 200  

		
	 Designated Number of Per-formance Shares:
	  	 The actual number of shares of Common Stock that may become issuable pursuant to the Performance Shares awarded under this Agreement shall be
determined in accordance with the Vesting Schedule below. For purposes of the percentage calculations set forth in the Performance Vesting section of such schedule, the designated number of Performance Shares to be utilized
is                                    
shares.

			
	 Vesting Schedule:
	  	 The number of shares of Common Stock which may actually vest and become issuable pursuant to the Award shall be
determined pursuant to a two-step process: (i) first the maximum number of shares of Common Stock in which Participant can vest under the Performance Vesting section below shall be calculated on the basis of the level at which each of the
Performance Goals specified on attached Schedule I is actually attained and (ii) then the number of shares calculated under clause (i) in which Participant may actually vest shall be determined on the basis of his or her completion of the applicable
Continuous Service vesting requirements set forth in Paragraph 3 of this Agreement.
  
 Performance Vesting: Attached Schedule I specifies the two Performance Goals to be attained for the specified Performance Period. Within sixty-five (65) days after the completion of that
Performance Period, the Administrator shall determine and certify the actual level of attainment for each Performance Goal. On the basis of that certified level of attainment, the number of Performance Shares will be multiplied by the applicable
percentage (which may range from 0% to 200%) determined in accordance with the percentile matrix set forth in Schedule I. The number of shares resulting from such calculation shall constitute the maximum number of shares of Common Stock in which
Participant may vest under this Award and shall be designated the “Performance-Qualified Shares.” In no event may the number of such Performance-Qualified Shares exceed 200% of the number of Performance Shares specified in the Number of
Performance Shares section above.
  
 To the
extent any Performance Goal is attained at a level below the twentieth percentile, a portion of the Performance Shares, as determined in accordance with the percentile matrix set forth in Schedule I, may be forfeited, and any such forfeited
Performance Shares shall be immediately cancelled. Participant shall thereupon cease to have any further right, title or interest in the shares of Common Stock underlying those cancelled Performance Shares.
  
 Continuous Service
Vesting.    The number of Performance-Qualified Shares in which Participant actually vests shall be determined on the basis of his or her satisfaction of the Continuous-Service vesting requirements set forth in Paragraph
3.
  
 Change in Control
Vesting.    The shares of Common Stock underlying the Performance Shares subject to this Award may also vest on an accelerated basis in accordance with Paragraph 5 should a Change in Control occur prior to the completion
of the Performance Period.

  

 2 

			
	 Issuance Date:
	  	 The shares of Common Stock which actually vest and become issuable pursuant to the terms of this Agreement shall be issued in accordance with the provisions
of this Agreement applicable to the particular circumstances under which such vesting occurs.

 2.        Limited Transferability.  Prior to the actual issuance of the shares of Common Stock which vest hereunder, Participant may not transfer any interest in the
Performance Shares subject to this Award or the underlying shares of Common Stock or pledge or otherwise hedge the sale of those Performance Shares or underlying shares, including (without limitation) any short sale or any acquisition or disposition
of any put or call option or other instrument tied to the value of the underlying shares of Common Stock. However, any shares of Common Stock which vest hereunder but otherwise remain unissued at the time of Participant’s death may be
transferred pursuant to the provisions of Participant’s will or the laws of inheritance or to Participant’s designated beneficiary or beneficiaries of this Award. Participant may also direct the Corporation to record the ownership of any
shares of Common Stock which in fact vest and become issuable hereunder in the name of a revocable living trust established for the exclusive benefit of Participant or Participant and his or her spouse. Participant may make such a beneficiary
designation or ownership directive at any time by completing the Corporation’s Universal Beneficiary Designation form and filing the completed form with the Plan Administrator or its designee. 
 3.        Continuous Service Requirement.  The number of
Performance-Qualified Shares calculated in accordance with the Performance-Vesting provisions of Paragraph 1 and attached Schedule I represent the maximum number of shares of Common Stock in which Participant can vest hereunder. The actual number of
shares of Common Stock in which Participant shall vest shall be determined as follows: 
 -        If Participant remains in Continuous Service through the date following the completion of the Performance Period on which the Administrator certifies the attained level of the Performance
Goals for that Performance Period, Participant shall vest in one hundred percent (100%) of the Performance-Qualified Shares. 
 -        If Participant’s Continuous Service terminates prior to the completion of the Performance Period (or after the completion of the Performance Period
but before the date the Administrator certifies the attained level of the Performance Goals for that Performance Period) by reason of death or Permanent Disability, then Participant shall, following the completion of the Performance Period, vest in
that number of shares of Common Stock (if any) determined by multiplying the maximum number of Performance-Qualified Shares in which Participant could vest, based on the actual level at which the Performance Goals are attained and certified for the
Performance Period, by a fraction, the numerator

  

 3 

 
of which is the number of months of Continuous Service actually completed by Participant in such Performance Period (rounded to the closest whole month), and the denominator of which is the
number of months (rounded to the closest whole number) constituting the entire Performance Period. 
 -        If Participant’s Continuous Service terminates by reason of his or her Retirement at any time after the completion of the first twelve (12) months of the Performance Period but
prior to the completion of the entire Performance Period, then Participant shall, following the completion of the Performance Period, vest in that number of shares of Common Stock (if any) determined by multiplying the maximum number of
Performance-Qualified Shares in which Participant could vest, based on the actual level at which the Performance Goals are attained and certified for the Performance Period, by a fraction, the numerator of which is the number of months of Continuous
Service actually completed by Participant in such Performance Period prior to his or her Retirement (rounded to the closest whole month), and the denominator of which is the number of months (rounded to the closest whole number) constituting the
entire Performance Period. 
 -        If
Participant’s Continuous Service ceases for any other reason (including, without limitation, any deemed cessation of Continuous Service under Paragraph 10) prior to the completion of the Performance Period or prior to the date on which the
Administrator certifies the attained level of the Performance Goals for that Performance Period, then Participant shall not vest in any of the Performance-Qualified Shares, and all of Participant’s right, title and interest to the shares of
Common Stock subject to this Award shall immediately terminate; provided, however, that should a Change in Control occur prior to the completion of the Performance Period, then the provisions of Paragraph 5 shall govern the vesting of
the Performance Shares. 
 4.        Stockholder Rights and
Dividend Equivalents 
 (a)        The holder of this Award
shall not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the shares of Common Stock subject to the Award until Participant becomes the record holder of those shares upon their actual issuance following
the Corporation’s collection of the applicable Withholding Taxes. 
 (b)        Notwithstanding the foregoing, should any dividend or other distribution, whether regular or extraordinary and whether payable in cash, securities (other than Common Stock) or other
property, be declared and paid on the outstanding Common Stock while one or more Performance Shares remain subject to this Award (i.e., the underlying shares of Common Stock are not otherwise issued and outstanding for purposes of entitlement to the
dividend or distribution), then a special book account shall be established for Participant and credited with a phantom dividend equivalent to the actual dividend or distribution that would have been paid on the maximum number of shares of Common
Stock that can qualify as Performance-Qualified Shares under this Award, had that number of shares been issued and

  

 4 

 
outstanding and entitled to that dividend or distribution. As one or more shares of Common Stock subsequently vest hereunder upon the satisfaction of the applicable vesting requirements, the
phantom dividend equivalents credited to those particular shares in the book account shall vest and shall be distributed to Participant (in the same form the actual dividend or distribution was paid to the holders of the Common Stock entitled to
that dividend or distribution or in such other form as the Administrator deems appropriate under the circumstances) concurrently with the issuance of those vested shares. However, such distribution shall be subject to the Corporation’s
collection of the Withholding Taxes applicable to that distribution. 
 (c)        To the extent the maximum number of shares of Common Stock that can qualify as Performance-Qualified Shares under this Award are not in fact earned by reason of the levels at which the
Performance Goals are actually attained, then the phantom dividend equivalents credited to those unearned shares shall be cancelled, and Participant shall cease to have any right or entitlement to receive any distributions or other amounts with
respect to those cancelled dividend equivalents. 
 (d)        Should
Participant cease Continuous Service without vesting in one or more of the shares of Common Stock subject to this Award (including any shares which do not otherwise vest at that time after taking into account any applicable vesting acceleration
provisions set forth in Paragraphs 3 and 5 of this Agreement), then the phantom dividend equivalents credited to those unvested shares shall be cancelled, and Participant shall thereupon cease to have any further right or entitlement to those
cancelled amounts. 
 5.        Change in
Control.    The following provisions shall apply only to the extent a Change in Control is consummated prior to the completion of the Performance Period and shall have no force or effect in the event the effective date of
the Change in Control occurs after the completion of such Performance Period. 
 (a)        Should (i) the Change in Control occur within the first twelve (12) months of the Performance Period and (ii) Participant remain in Continuous Service through the effective
date of that Change in Control, then Participant shall immediately vest in that number of shares of Common Stock equal to the designated number of Performance Shares set forth in Paragraph 1, without any measurement of Performance Goal attainment to
date. 
 (b)        Should (i) the Change in Control occur at any
time on or after the completion of the first twelve (12) months of the Performance Period and (ii) Participant remain in Continuous Service through the effective date of that Change in Control, then Participant shall immediately vest in
that number of shares of Common Stock equal to the greater of: 
     (i)        the designated number of Performance Shares set forth in Paragraph 1, or 
     (ii)        the number of
Performance-Qualified Shares determined by multiplying (A) the number of Performance Shares set forth in Paragraph 1 by (B) the applicable percentage (determined in accordance with the percentile matrix in attached Schedule I) for the
levels at which the Performance

  

 5 

 
Goals are attained over an abbreviated Performance Period ending with the close of the Corporation’s fiscal quarter coincident with or immediately preceding the effective date of the Change
in Control. 
 (c)        The provisions of subparagraphs (a) and
(b) of this Paragraph 5 shall also apply should Participant’s Continuous Service terminate, by reason of an involuntary termination other than for Cause or his or her resignation due to Constructive Termination, at any time during the
period beginning with the execution date of the definitive agreement for the Change in Control transaction and ending with the earlier of (i) the effective date of that Change in Control or (ii) the termination of the
definitive agreement without the consummation of the Change in Control; provided, however, that in no event shall Participant become entitled to any shares of Common Stock pursuant to this Paragraph 5 if the Change in Control is not in
fact consummated. 
 (d)        Should Participant cease Continuous
Service during the Performance Period by reason of death or Permanent Disability and a Change in Control subsequently occur prior to the completion of that Performance Period, then the Participant shall, at the time of such Change in Control, vest
in a pro-rated number of shares of Common Stock calculated by multiplying (i) the number of Performance Shares or Performance-Qualified Shares determined in accordance with the applicable provisions of subparagraphs (a) and (b) of
this Paragraph 5 by (ii) a fraction, the numerator of which is the number of months of Continuous Service actually completed by Participant in such Performance Period (rounded to the closest whole month), and the denominator of which is the
number of months (rounded to the closest whole number) comprising the portion of the Performance Period ending with the earlier of (i) the effective date of the Change in Control or (ii) the last day of the abbreviated Performance Period
(if any) taken into account under Paragraph 5(b)(ii). 
 (e)        Should Participant cease Continuous Service by reason of his or her Retirement at any time after the completion of the first twelve (12) months of the Performance Period but prior to
the completion of the entire Performance Period and a Change in Control subsequently occur prior to the completion of that Performance Period, then the Participant shall, at the time of such Change in Control, vest in a pro-rated number of shares of
Common Stock calculated by multiplying (i) the number of Performance Shares or Performance-Qualified Shares determined in accordance with the provisions of subparagraph (b) of this Paragraph 5 by (ii) a fraction, the numerator of
which is the number of months of Continuous Service actually completed by Participant in such Performance Period prior to his or her Retirement (rounded to the closest whole month), and the denominator of which is the number of months (rounded to
the closest whole number) comprising the portion of the Performance Period ending with the last day of the abbreviated Performance Period (if any) taken into account under Paragraph 5(b)(ii). 
 (f)        The number of shares of Common Stock in which Participant vests on the
basis of the Performance Shares or Performance-Qualified Shares determined in accordance with the foregoing provisions of this Paragraph 5 shall be issued on the effective date of such Change in Control or as soon as administratively practicable
thereafter, but in no event more than fifteen (15) business days after such effective date. Alternatively, those vested shares

  

 6 

 
of Common Stock shall be converted into the right to receive the same consideration per share of Common Stock payable to the other stockholders of the Corporation in consummation of the Change in
Control, and such consideration shall be distributed to Participant within fifteen (15) business days following the effective date of that Change in Control. Each issuance or distribution made under this Paragraph 5(f) shall be subject to the
Corporation’s collection of the applicable Withholding Taxes. 
 (g)        Except for the actual number of shares of Common Stock in which Participant vests in accordance with this Paragraph 5, Participant shall have cease to have any further right or entitlement
to any additional shares of Common Stock under this Agreement following the effective date of the Change in Control. 
 (h)        This Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate,
dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 6.        Adjustment in Shares.     Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of
shares, exchange of shares, spin-off transaction, extraordinary dividend or distribution or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, or should the value of the
outstanding shares of Common Stock be substantially reduced as a result of a spin-off transaction or an extraordinary dividend or distribution, or should there occur any merger, consolidation or other reorganization, then equitable adjustments shall
be made by the Administrator to the total number and/or class of securities issuable pursuant to this Award in order to reflect such change. In making such equitable adjustments, the Administrator shall take into account any amounts credited to
Participant’s book account under Paragraph 4(b) in connection with the transaction, and the determination of the Administrator shall be final, binding and conclusive. In the event of any Change in Control transaction, the provisions of
Paragraph 5 shall be controlling. 
 7.        Issuance or
Distribution of Vested Shares or Other Amounts. 
 (a)        Except as otherwise provided in Paragraph 5, the shares of Common Stock in which Participant vests pursuant to the Performance and Continuous Service vesting provisions of Paragraphs 1 and
3 shall be issued following the completion of the Performance Period, in accordance with the following provisions: 
 (i)        If the applicable Performance Period is coincidental with one or more successive complete calendar years, the issuance shall be effected during the
period beginning with the first business day of the calendar year immediately succeeding the end of the Performance Period and ending no later than March 15 of that year. 
  

 7 

 (ii)        If the
applicable Performance Period ends on a date other than the last day of the calendar year, then the issuance shall be effected as soon as administratively practicable following the completion of that Performance Period, but no later than the
later of (A) the last day of the calendar year in which such Performance Period ends or (B the fifteenth (15th) day of third (3rd) calendar month following the last of day of such Performance Period. 
 (b)        The Corporation shall, on the applicable issuance date, issue to or on
behalf of Participant a certificate (which may be in electronic form) for the shares of Common Stock in which Participant vests pursuant to the Performance and Continuous Service vesting provisions of Paragraphs 1 and 3 or the special vesting
provisions of Paragraph 5 and shall concurrently distribute to the Participant any phantom dividend equivalents with respect to those Shares. 
 (c)        Except as otherwise provided in Paragraph 5, no shares of Common Stock shall be issued prior to the completion of the Performance Period. No fractional
shares of Common Stock shall be issued pursuant to this Award, and any fractional share resulting from any calculation made in accordance with the terms of this Agreement shall be rounded down to the next whole share. 
 (d)        The Corporation shall collect the Withholding Taxes with respect to each
distribution of phantom dividend equivalents by withholding a portion of that distribution equal to the amount of the applicable Withholding Taxes, with the cash portion of the distribution to be the first portion so withheld. 
 (e)        Unless Participant (i) otherwise makes satisfactory arrangements
with the Corporation’s Human Resources Department, not later than forty-five (45) days prior to the applicable issuance date of the shares of Common Stock which vest and become issuable hereunder, to pay the applicable Withholding Taxes
through the delivery of a check payable to the Corporation in the amount of such Withholding Taxes and (ii) in fact delivers such check to the Corporation not later than that issuance date, the Corporation shall collect the applicable
Withholding Taxes through the following automatic share withholding method: 
 -        On the applicable issuance date, the Corporation shall withhold, from the vested shares of Common Stock otherwise issuable to Participant at that time, a portion of those shares with a Fair
Market Value (measured as of the issuance date) equal to the applicable Withholding Taxes; provided, however, that the number of shares of Common Stock which the Corporation shall be required to so withhold shall not exceed in Fair
Market Value the amount necessary to satisfy the Corporation’s required tax withholding obligations using the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to supplemental
taxable income. 
  

 8 

 (f)        Notwithstanding the
foregoing provisions of Paragraphs 7(d) and 7(e), the employee portion of the federal, state and local employment taxes required to be withheld by the Corporation in connection with the vesting of the shares of Common Stock or any other amounts
hereunder (the “Employment Taxes”) shall in all events be collected from Participant no later than the last business day of the calendar year in which those shares or other amounts vest hereunder. Accordingly, to the extent the applicable
issuance date for one or more vested shares of Common Stock or the distribution date for such other amounts is to occur in a year subsequent to the calendar year in which those shares or other amounts vest, the Participant shall, on or before the
last business day of the calendar year in which such shares or other amounts vest, deliver to the Corporation a check payable to its order in the dollar amount equal to the Employment Taxes required to be withheld with respect to those shares or
other amounts. The provisions of this Paragraph 7(f) shall be applicable only to the extent necessary to comply with the applicable tax withholding requirements of Code Section 3121(v). 
 (g)        Except as otherwise provided in Paragraph 5 or this Paragraph 7, the
settlement of all Performance or Performance-Qualified Shares which vest under the Award shall be made solely in shares of Common Stock. 
 8.        Special Deferral Election.     Provided Participant is a U.S. tax resident and subject to Participant’s
satisfaction of any applicable Withholding Tax obligations under Paragraph 7, Participant may elect to defer the receipt of any shares of Common Stock which may become issuable to Participant pursuant to the terms of this Agreement, by submitting to
the Corporation on a timely basis a deferral election in the form provided for such purpose. Such deferral election must be submitted to the Corporation prior to the last six (6) months of the Performance Period (including any abbreviated
Performance Period), and any deferral election submitted within that six (6)-month period shall have no force and effect. In submitting such deferral election, Participant must represent that he or she understands the effect of such deferral under
relevant federal, state and local income and employment tax laws, including (without limitation) the fact that Social Security, Medicare and other taxes may be due upon the vesting of the shares of Common Stock notwithstanding the deferral election.
In no event may such a deferral election be made after Participant’s cessation of Continuous Service, and no deferral election shall have any force or effect unless such election complies with all applicable requirements of Code
Section 409A and the Treasury Regulations thereunder. 
 In the absence of a valid deferral election filed
in accordance with this Paragraph 8, this Agreement shall be administered and interpreted in a manner that complies with the short-term deferral exception to Code Section 409A. Accordingly, any ambiguity in the terms and provisions of this
Agreement shall be interpreted and applied so as to comply with the short-term deferral exception standards under Code Section 409A and the Treasury Regulations thereunder. 
 9.        Deferred Issuance
Date.    Notwithstanding any provision to the contrary in this Agreement, to the extent this Award may be deemed to create a deferred compensation arrangement under Code Section 409A by reason of a deferral election
made pursuant to Paragraph 8 above or otherwise, then the following limitations shall apply: 
  

 9 

 -        No shares
of Common Stock or other amounts which become issuable or distributable under this Agreement by reason of Participant’s cessation of Continuous Service shall actually be issued or distributed to Participant until the date of Participant’s
Separation from Service or as soon thereafter as administratively practicable, but in no event later than the later of (i) the close of the calendar year in which such Separation from Service occurs or (ii) the fifteenth day
of the third calendar month following the date of such Separation from Service. 
 -        No shares of Common Stock or other amounts which become issuable or distributable under this Agreement by reason of Participant’s cessation of Continuous Service shall actually be issued
or distributed to Participant prior to the earlier of (i) the first day of the seventh (7th) month following the date of Participant’s Separation from Service or (ii) the date of Participant’s death, if
Participant is deemed at the time of such Separation from Service to be a specified employee under Section 1.409A-1(i) of the Treasury Regulations issued under Code Section 409A, as determined by the Administrator in accordance with
consistent and uniform standards applied to all other Code Section 409A arrangements of the Corporation, and such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2). The
deferred Shares or other distributable amount shall be issued or distributed in a lump sum on the first day of the seventh (7th) month following the date of Participant’s Separation from Service or, if earlier, the first day of the month
immediately following the date the Corporation receives proof of Participant’s death. 
 10.    Leaves of Absence.    For purposes of the applying the various Continuous Service vesting provisions of this Agreement, Participant shall be deemed to cease Continuous Service on
the commencement date of any leave of absence and not to remain in Continuous Status during the period of that leave, except to the extent otherwise required by law or pursuant to the following policy: 
 -        Participant shall be deemed to remain in Continuous
Service status during (i) the first three (3) months of an approved personal leave of absence or (ii) the first seven (7) months of any bona fide leave of absence (other than an approved personal leave) and shall be deemed to
cease Continuous Service upon the expiration of the applicable three (3)-month or seven (7)-month period. 
 -        In no event, however, shall Participant be deemed, for vesting purposes hereunder, to remain in Continuous Service beyond the earlier of
(i) the expiration date of that leave of absence, unless Participant returns to active Continuous Service or Employee status on or before that date or (ii) the date Participant’s Continuous Service or Employee status actually
terminates by reason of his or her voluntary or involuntary termination or by reason of his or her death or disability. 
  

 10 

 11.      Compliance with Laws and
Regulations.  The issuance of shares of Common Stock pursuant to the Award shall be subject to compliance by the Corporation and Participant with all Applicable Laws relating thereto. 
 12.      Notices.  Any notice required to be given or delivered to
the Corporation under the terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Participant shall be in writing and addressed to Participant
at the most current address then indicated for Participant on the Corporation’s employee records or shall be delivered electronically to Participant through the Corporation’s electronic mail system or through an on-line brokerage firm
authorized by the Corporation to effect sales of the Common Stock issued hereunder. All notices shall be deemed effective upon personal delivery or delivery through the Corporation’s electronic mail system or upon deposit in the U.S. mail,
postage prepaid and properly addressed to the party to be notified. 
 13.      Successors and Assigns.  Except to the extent otherwise provided in this Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the
Corporation and its successors and assigns and Participant, Participant’s assigns, the legal representatives, heirs and legatees of Participant’s estate and any beneficiaries of the Award designated by Participant. 
 14.      Construction.  This Agreement and the Award evidenced hereby
are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. In the event of any conflict between the provisions of this Agreement and the terms of the Plan, the terms of the Plan shall be
controlling. All decisions of the Administrator with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in the Award. 
 15.      Governing Law.  The interpretation, performance and
enforcement of this Agreement shall be governed by the laws of the State of California without resort to that State’s conflict-of-laws rules. 
 16.      Employment at Will.  Nothing in this Agreement or in the Plan shall confer upon Participant any right to remain in Continuous Service for any
period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Related Entity employing or retaining Participant) or of Participant, which rights are hereby expressly reserved by each, to
terminate Participant’s Continuous Service at any time for any reason, with or without Cause. 
 17.      Plan Prospectus.  The official prospectus for the Plan is available on the Corporation’s intranet at: http://gnet/ HR/stocks_new.asp. Participant may also obtain a
printed copy of the prospectus by contacting Stock Administration either through the internet at stockadministration@gilead.com or by telephoning 650-522-5517. 
  

 11 

 18.      Participant
Acceptance.  Participant must accept the terms and conditions of this Agreement either electronically through the electronic acceptance procedure established by the Corporation or through a written acceptance delivered to the
Corporation in a form satisfactory to the Corporation. In no event shall any shares of Common Stock be issued under this Agreement in the absence of such acceptance. 
 IN WITNESS WHEREOF, Gilead Sciences, Inc. has caused this Agreement to be executed on its behalf by its duly-authorized officer on the day and year first indicated above.

  

			
	 GILEAD SCIENCES, INC.

		
	 By:
	 	 
		
	 Title:
	 	 

  

 12 

 APPENDIX A  
 DEFINITIONS 
 The following
definitions shall be in effect under the Agreement: 
 A.      Administrator shall mean the Compensation Committee of the Board acting in its capacity as administrator of the Plan. 
 B.      Agreement shall mean this Performance Share Award Agreement.

 C.      Applicable Laws shall mean the legal requirements
related to the Plan and the Award under applicable provisions of the federal securities laws, state corporate and securities laws, the Code, the rules of any applicable Stock Exchange on which the Common Stock is listed for trading, and the rules of
any non-U.S. jurisdiction applicable to Awards granted to residents therein. 
 D.      Award shall mean the award of Performance Shares made to Participant pursuant to the terms of this Agreement. 
 E.      Award Date shall mean the date the Performance Shares are awarded to Participant pursuant to the Agreement and shall be the date
indicated in Paragraph 1 of the Agreement. 
 F.      Board shall
mean the Corporation’s Board of Directors. 
 G.      Cause
shall have the meaning assigned to such term in Section 11(c) of the Plan. 
 H.      Change in Control shall mean a change in ownership or control of the Corporation effected through the consummation of any of the following transactions: 
  (i)      a merger, consolidation or other reorganization approved by
the Corporation’s stockholders, unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned,
directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Corporation’s outstanding voting securities immediately prior to such transaction; 
  (ii)      a sale, transfer or other disposition of all or substantially
all of the Corporation’s assets; 

  (iii)    the closing of any
transaction or series of related transactions pursuant to which any person or any group of persons comprising a “group” within the meaning of Rule 13d-5(b)(1) of the 1934 Act (other than the Corporation or a person that, prior to such
transaction or series of related transactions, directly or indirectly controls, is controlled by or is under common control with, the Corporation) becomes directly or indirectly (whether as a result of a single acquisition or by reason of one or
more acquisitions within the twelve (12)-month period ending with the most recent acquisition) the beneficial owner (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing (or convertible into or exercisable for securities
possessing) more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities (as measured in terms of the power to vote with respect to the election of Board members) outstanding immediately
after the consummation of such transaction or series of related transactions, whether such transaction involves a direct issuance from the Corporation or the acquisition of outstanding securities held by one or more of the Corporation’s
existing stockholders; or 
  (iv)    a change in the composition of
the Board over a period of twelve (12) consecutive months or less such that a majority of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been
Board members continuously since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in
office at the time the Board approved such election or nomination. 
 In no event, however, shall a Change in
Control be deemed to occur upon a merger, consolidation or other reorganization effected primarily to change the State of the Corporation’s incorporation or to create a holding company structure pursuant to which the Corporation becomes a
wholly-owned subsidiary of an entity whose outstanding voting securities immediately after its formation are beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the
Corporation’s outstanding voting securities immediately prior to the formation of such entity. Should such holding company structure or other Parent entity be established for the Corporation, then subparagraph (iv) shall be applied solely
to the board of directors of that holding company or Parent entity. 
 I.        Code shall mean the Internal Revenue Code of 1986, as amended. 
 J.        Common Stock shall mean shares of the Corporation’s common stock. 
 K.       Constructive Termination shall have the meaning assigned to such
term in Section 11(d) of the Plan. 

 L.        Consultant
shall mean any person, including an advisor, who is compensated by the Corporation or any Related Entity for services performed as a non-employee consultant; provided, however, that the term “Consultant” shall not include
non-employee Directors serving in their capacity as Board members. The term “Consultant” shall include a member of the board of directors of a Related Entity. 
 M.        Continuous Service shall mean the performance of services for the Corporation or a Related Entity (whether now
existing or subsequently established) by a person in the capacity of an Employee, Director or Consultant. For purposes of this Agreement, Participant shall be deemed to cease Continuous Service immediately upon the occurrence of either of the
following events: (i) Participant no longer performs services in any of the foregoing capacities for the Corporation or any Related Entity or (ii) the entity for which Participant is performing such services ceases to remain a Related
Entity of the Corporation, even though Participant may subsequently continue to perform services for that entity. In jurisdictions requiring notice in advance of an effective termination of Participant’s service as an Employee, Director or
Consultant, Continuous Service shall be deemed to terminate upon the actual cessation of such service to the Corporation or a Related Entity notwithstanding any required notice period that must be fulfilled before Participant’s termination as
an Employee, Director or Consultant can be effective under Applicable Laws. 
 N.        Corporation shall mean Gilead Sciences, Inc., a Delaware corporation, and any successor corporation to all or substantially all of the assets or voting stock of Gilead
Sciences, Inc. which shall by appropriate action adopt the Plan. 
 O.        Director shall mean a member of the Board. 
 P.        Employee shall mean an individual who is in the employ of the Corporation (or any Related Entity), subject to the control and direction of the employer entity as to both the
work to be performed and the manner and method of performance. 
 Q.        Fair Market Value per share of Common Stock on any relevant date shall be the closing price per share of Common Stock (or the closing bid, if no sales were reported), as quoted
on the Stock Exchange serving as the primary trading market for the Common Stock, on the last market trading day prior to the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems
reliable. 
 R.        1934 Act shall mean the Securities
Exchange Act of 1934, as amended from time to time. 
 S.        Participant shall mean the person to whom the Award is made pursuant to the Agreement. 

 T.        Parent
shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock
possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
 U.        Performance Goals shall mean the performance goals specified on attached Schedule I which must be attained in order to satisfy the
performance vesting requirements for the shares of Common Stock subject to this Award. 
 V.        Performance Period shall mean the period specified on attached Schedule I over which the attainment of the Performance Goals is to be measured. 
 W.        Performance-Qualified Shares shall mean the maximum number
of shares of Common Stock in which Participant can vest based on the level at which the Performance Goals for the Performance Period are attained and shall be calculated in accordance with the provisions of this Agreement. In no event shall the
number of such Performance-Qualified Shares exceed two hundred percent (200%) of the number of Performance Shares designated in Paragraph 1 of this Agreement. 
 X.        Performance Share shall mean the phantom shares of Common Stock awarded under this Agreement which will entitle
Participant to receive one or more actual shares of Common Stock pursuant to this Award upon the satisfaction of the performance and Continuous Service vesting requirements applicable to such Award. 
 Y.        Permanent Disability shall mean the inability of
Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12) months or more. 
 Z.        Plan shall mean the Corporation’s 2004 Equity
Incentive Plan, as amended. 
 AA.    Related Entity shall mean (i) any
Parent or Subsidiary of the Corporation and (ii) any corporation in an unbroken chain of corporations beginning with the Corporation and ending with the corporation in the chain for which Participant provides services as an Employee, Director
or Consultant, provided each corporation in such chain owns securities representing at least fifty percent (50%) of the total outstanding voting power of the outstanding securities of another corporation or entity in such chain. 
 BB.    Retirement shall mean the Participant’s cessation of Employee status on or
after the date on which his or her combined age and years of Continuous Service equal or exceed seventy (70) years. 

 CC.    Separation from Service shall mean
the Participant’s cessation of Employee status by reason of his or her death, retirement or termination of employment. The Participant shall be deemed to have terminated employment for such purpose at such time as the level of his or her bona
fide services to be performed as an Employee (or as a consultant or independent contractor) permanently decreases to a level that is not more than twenty percent (20%) of the average level of services he or she rendered as an Employee during
the immediately preceding thirty-six (36) months (or such shorter period for which he or she may have rendered such services). Solely for purposes of determining when a Separation from Service occurs, Participant will be deemed to continue in
“Employee” status for so long as he or she remains in the employ of one or more members of the Employer Group, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of
performance. “Employer Group” means the Corporation and any Parent or Subsidiary and any other corporation or business controlled by, controlling or under common control with, the Corporation, as determined in accordance with Sections
414(b) and (c) of the Code and the Treasury Regulations thereunder, except that in applying Sections 1563(1), (2) and (3) of the Code for purposes of determining the controlled group of corporations under Section 414(b), the
phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place the latter phrase appears in such sections and in applying Section 1.414(c)-2 of the Treasury Regulations for purposes of determining
trades or businesses that are under common control for purposes of Section 414(c), the phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place the latter phrase appears in
Section 1.414(c)-2 of the Treasury Regulations. Any such determination as to Separation from Service, however, shall be made in accordance with the applicable standards of the Treasury Regulations issued under Section 409A of the Code.

 DD.    Stock Exchange shall mean the American Stock Exchange, the Nasdaq
Global or Global Select Market or the New York Stock Exchange. 
 EE.    Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each corporation (other than the last corporation) in
the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
 FF.    Vesting Schedule shall mean the schedule set forth in Paragraph 1 of the
Agreement, pursuant to which the Performance Shares and the underlying shares of Common Stock are to vest upon the satisfaction of the performance and Continuous Service vesting requirements applicable to this Award. 
 GG.    Withholding Taxes shall mean the federal, state and local income taxes and the
employee portion of the federal, state and local employment taxes required to be withheld by the Corporation in connection with the vesting and issuance of the shares of Common Stock which vest under of the Award, any phantom dividend equivalents
distributed with respect to those shares and any other amounts distributable in replacement or substitution of such shares.

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