Document:

GILD 2013.05.08 Ex. 10.50

Exhibit 10.50

REVENUE PERFORMANCE GOAL

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 herein or in the attached Appendix A.
NOW, THEREFORE, it is hereby agreed as follows:
1.Grant of Performance Shares.  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 for those shares.  The number of Performance Shares subject to this Award. the applicable performance-vesting and service-vesting requirements for each separate Tranche of those Performance Shares, the date or dates on which the shares of Common Stock  that vest hereunder shall become issuable and the remaining terms and conditions governing the Award, including the applicable vesting acceleration provisions, shall be as set forth in this Agreement.

AWARD SUMMARY
	
		
	Participant
	[FIRST NAME MIDDLE NAME LAST NAME]

	Award Date:
	[GRANT DATE]

	Designated Number of Performance 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 performance-vesting and service-vesting provisions of attached Schedule I. For purposes of the applicable calculations under Schedule I, the total designated number of Performance Shares to be utilized is [SHARES] shares (the” Performance Shares”).        

	 
	The Performance Shares shall be divided into three separate Tranches, and one third of the total number of Performance Shares shall be allocated to each such Tranche.

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	Vesting Schedule:
	Normal Vesting. Each Tranche of Performance Shares shall be subject to the performance-vesting and service-vesting requirements set forth for that particular Tranche in attached Schedule I.   
Change in Control Vesting.  The shares of Common Stock underlying each Tranche of Performance Shares may also vest on an accelerated basis in accordance with the applicable provisions of Paragraph 4 of this Agreement  should a Change in Control occur after the start but prior to the completion of the Performance Period or Service Period applicable to that particular Tranche.

	Issuance Date:
	The shares of Common Stock which actually vest and become issuable pursuant to each Tranche of Performance Shares 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.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. 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 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 for those shares, the phantom dividend equivalents credited to those particular shares in the book account shall vest, and those vested dividend equivalents 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.  To the extent any phantom dividend equivalents are to be distributed in shares of Common Stock, the following conversion process will be in effect.  For each such 

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dividend or distribution that is to be converted into shares of Common Stock, the aggregate dollar value of the cash, securities or other property that would have been paid as an actual dividend or distribution on the shares of Common Stock subject to this Award had they been actually issued and outstanding shares at the time of such dividend or distribution will be divided by the Fair Market Value per share of Common Stock measured as of the date on which such dividend or distribution was paid on the outstanding Common Stock, with any fractional share of Common Stock rounded down to the next whole share of Common Stock.  The Administrator shall have the sole discretion to determine the dollar value of any such dividend or distribution paid other than in the form of cash, and its determination shall be controlling.   
(b)To the extent the maximum number of shares of Common Stock that can qualify as Performance-Qualified Shares under any Tranche of this Award is not in fact earned by reason of the level at which the Performance Goal applicable to that Tranche is 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.
(c)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 this Agreement and the attached Schedule I), 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.
4.Change in Control.  The following provisions shall apply only to the extent a Change in Control is consummated prior to the completion of the one or more separate Service Periods that are in effect at the time of such Change in Control with respect to the individual Tranches into which the Performance Shares are divided in accordance with the provisions of Paragraph 1 of this Agreement and attached Schedule I:  
(a)Should (i) the Change in Control occur during a Performance Period that is in effect at the time with respect to a particular Tranche of Performance Shares but prior to the completion of that 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 allocated to that particular Tranche in accordance with Paragraph 1 of this Agreement and the provisions of attached Schedule I, without any measurement of Performance Goal attainment to date with respect to that particular Tranche. To the extent a Performance Period for a particular Tranche of Performance Shares has not commenced prior to the effective date of the Change in Control, the Performance Shares allocated to that Tranche in accordance with Paragraph 1 of this Agreement and the provisions of attached Schedule I shall be cancelled, and Participant shall not have any further right or entitlement to receive any shares of Common Stock with respect to those cancelled Performance Shares. 
(b)Should (i) the Change in Control occur at any time on or after the completion of the Performance Period applicable to a particular Tranche of Performance Shares but prior to the completion of the Service Period specified for that Tranche in attached Schedule I and (ii) Participant remain in Continuous Service through the effective date of that Change in Control, then Participant shall immediately vest in the number of shares of Common Stock equal to the number of Performance-Qualified Shares (if any) at the time subject to that Tranche by reason of the level at which the Revenue Performance Goal for that Tranche was in fact attained for the  Performance Period applicable to that Tranche.

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(c)Subparagraphs (a) and (b) of this Paragraph 4 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 4 if the Change in Control is not in fact consummated.
(d)Should Participant cease Continuous Service by reason of Retirement, death or Permanent Disability during one or more Service Periods that are, pursuant to the provisions of attached Schedule I, in effect at that time with respect to one or more Tranches of Performance Shares and a Change in Control subsequently occur prior to the completion of each such applicable Service Period, then 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 (if any) determined for each such Tranche in accordance with the applicable provisions of subparagraphs (a) and (b) of this Paragraph 4 by (ii) a fraction, the numerator of which is the number of months of Continuous Service actually completed by Participant in the applicable Service Period for such Tranche (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 that Service Period ending with the effective date of the Change in Control.
(e)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 4 shall be converted into the right to receive for each such share 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 on the earlier of (i) the tenth (10th) business day following the effective date of the Change in Control, provided such Change in Control also constitutes a Qualifying Change in Control, or (ii) the date those shares would have been issued to Participant in accordance with Paragraph 6 in the absence of such Change in Control, unless a later issuance date is in effect for those shares pursuant to any deferral election made by Participant pursuant to Paragraph 7.  Each issuance or distribution made under this Paragraph 4(e) shall be subject to the Corporation's collection of the applicable Withholding Taxes.
(f)Except for the actual number of shares of Common Stock in which Participant vests in accordance with this Paragraph 4, Participant shall 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.
5.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 3(a) 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 4 shall be controlling.

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6.Issuance or Distribution of Vested Shares or Other Amounts.
(a)Except as otherwise provided in Paragraph 4 or Paragraph 7, the shares of Common Stock in which Participant vests pursuant to the performance-vesting and Continuous Service vesting provisions of attached Schedule I shall be issued in accordance with the following provisions:  
-    The shares of Common Stock underlying each particular Tranche of Performance Shares shall be effected during the period beginning with the first business day of the calendar year immediately succeeding the end of the Service Period specified for that Tranche in attached Schedule I and ending no later than March 15 of that calendar year.
(b)The Corporation shall, on the applicable issuance date, issue to or on behalf of Participant a certificate in electronic form for the shares of Common Stock in which Participant vests pursuant to the performance-vesting and Continuous Service vesting provisions of attached Schedule I and shall concurrently distribute to Participant any phantom dividend equivalents with respect to those Shares.  In lieu of such electronic delivery of the shares, Participant may request actual stock certificates for those shares.
(c)Except as otherwise provided in Paragraph 4, no shares of Common Stock shall be issued prior to the completion of the Service Period applicable to those shares.  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)Regardless of any action the Corporation and/or the Employer take with respect to any or all Withholding Taxes related to Participant's participation in the Plan and legally applicable to Participant, Participant acknowledges that the ultimate liability for all Withholding Taxes is and remains Participant's responsibility and may exceed the amount actually withheld by the Corporation or the Employer.  Participant further acknowledges that the Corporation and/or the Employer (i) make no representations or undertakings regarding the treatment of any Withholding Taxes in connection with any aspect of the Award, including the grant, vesting or settlement of the Award, the issuance of shares of Common Stock or other property in settlement of the Award, the subsequent sale of the shares of Common Stock acquired pursuant to such issuance and the receipt of any dividends and/or phantom dividend equivalents and (ii) do not commit to, and are under no obligation to, structure the terms of the grant or any aspect of the Award to reduce or eliminate Participant's liability for Withholding Taxes or achieve any particular tax result.  Further, if Participant has become subject to Withholding Taxes in more than one jurisdiction between the Award Date and the date of any relevant taxable or tax withholding event (as applicable), Participant acknowledges that the Corporation and/or the Employer (or former employer, as applicable) may be required to withhold or account for Withholding Taxes in more than one jurisdiction.  
(e)The Corporation shall collect, and Participant hereby authorizes the Corporation to collect, the Withholding Taxes with respect to the shares of Common Stock issued under this Agreement (including shares of Common Stock issued in settlement of phantom dividend equivalents) through an automatic share withholding procedure pursuant to which the Corporation will withhold, immediately as the shares of Common Stock are issued under the Award, a portion of those shares with a Fair Market Value (measured as of the issuance date) equal to the amount of such Withholding Taxes (the “Share Withholding Method”).  Notwithstanding the foregoing, the Share Withholding Method shall not be utilized if (i) such method is not permissible or advisable under local law or (ii) the Corporation otherwise decides no longer to utilize such method and provides Participant with notice to such effect.  

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(f)If the Share Withholding Method is to be utilized for the collection of Withholding Taxes, then the Corporation shall withhold the number of otherwise issuable shares of Common Stock necessary to satisfy the applicable Withholding Taxes based on the applicable minimum statutory rate or other applicable withholding rate.  If the obligation for Withholding Taxes is satisfied by using the Share Withholding Method, then Participant will, for tax purposes, be deemed to have been issued the full number of shares of Common Stock subject to the vested Award, notwithstanding that a number of shares of Common Stock are withheld solely for the purpose of paying the applicable Withholding Taxes.
(g)The Corporation shall have sole discretion to determine whether or not the Share Withholding Method shall be utilized for the collection of the applicable Withholding Taxes.  Participant shall be notified (in writing or through the Corporation's electronic mail system) in the event the Corporation no longer intends to utilize the Share Withholding Method. Should any shares of Common Stock become issuable under the Award (including shares of Common Stock issued in settlement of phantom dividend equivalents) at a time when the Share Withholding Method is not being utilized by the Corporation, then the Withholding Taxes shall be collected from Participant through a sale-to-cover transaction authorized by Participant, pursuant to which an immediate open-market sale of a portion of the shares of Common Stock issued to Participant will be effected, for and on behalf of Participant, by the Corporation's designated broker to cover the Withholding Tax liability estimated by the Corporation to be applicable to such issuance. Participant shall, promptly upon request from the Corporation, execute (whether manually or through electronic acceptance) an appropriate sales authorization (in form and substance reasonably satisfactory to the Corporation) that authorizes and directs the broker to effect such open-market, sale-to-cover transactions and remit the sale proceeds, net of brokerage fees and other applicable charges, to the Corporation in satisfaction of the applicable Withholding Taxes. However, no sale-to-cover transaction shall be effected unless (i) such a sale is at the time permissible under the Corporation's insider trading policies governing the sale of Common Stock and (ii) the transaction is not otherwise deemed to constitute a prohibited loan under Section 402 of the Sarbanes-Oxley Act of 2002.
(h)If the Corporation determines that such sale-to-cover transaction is not permissible or advisable at the time or if Participant otherwise fails to effect a timely sales authorization as required by this Agreement, then the Corporation may, in its sole discretion, elect either to defer the issuance of the shares of Common Stock until such sale-to-cover transaction can be effected in accordance with Participant's executed sale directive or to collect the applicable Withholding Taxes through a wire transfer of funds from Participant to the Corporation in the amount of such Withholding Taxes or by withholding such amount from other wages payable to Participant. In no event shall any shares of Common Stock be issued in the absence of an arrangement reasonably satisfactory to the Corporation for the satisfaction of the applicable Withholding Taxes, and any such arrangement must be in compliance with any applicable requirements of Code Section 409A.
(i)The Corporation shall collect the Withholding Taxes with respect to the  phantom dividend equivalents distributed in a form other than shares of Common Stock 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, or through such other tax withholding arrangement as the Corporation deems appropriate
(j)Notwithstanding the foregoing provisions of Paragraphs 6(d) through 6(h), 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 

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other amounts is to occur in a year subsequent to the calendar year in which those shares or other amounts vest, 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 (or a wire transfer of funds to the Corporation) 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 6(j) shall be applicable only to the extent necessary to comply with the applicable tax withholding requirements of Code Section 3121(v).
(k)Except as otherwise provided in Paragraph 4 or this Paragraph 6, the settlement of all Performance Shares or Performance-Qualified Shares which vest under the Award shall be made solely in shares of Common Stock.
7.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 6 and any other eligibility requirements established by the Administrator for a deferral election hereunder, Participant may elect to defer the issuance date 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) applicable to the shares for which the deferral election is made, and any deferral election submitted within that six (6)-month period or after the performance-based compensation subject to that election has become ascertainable shall have no force and effect.  The deferral election must specify one or more deferred issuance dates or events that qualify as permissible distribution events under Code Section 409A and the Treasury Regulations thereunder.  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.    
8.Leaves of Absence.  For purposes of 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 Service status during the period of that leave, except to the extent otherwise required under employment laws in the jurisdiction where Participant is employed 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.

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9.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.
10.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.
11.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.
12.Code Section 409A      
(a)It is the intention of the parties that the provisions of this Agreement shall, to the maximum extent permissible, comply with the requirements of the short-term deferral exception to Section 409A of the Code and Treasury Regulations Section 1.409A-1(b)(4) with respect to each Tranche of Performance Shares under this Award.  Accordingly, to the extent there is any ambiguity as to whether one or more provisions of this Agreement would otherwise contravene the requirements or limitations of Code Section 409A applicable to such short-term deferral exception, then those provisions, as they apply to each Tranche, shall be interpreted and applied in a manner that does not result in a violation of the requirements or limitations of Code Section 409A and the Treasury Regulations thereunder that apply to such exception.
(b)However, to the extent this Agreement should be deemed to create a deferred compensation arrangement subject to the requirements of Code Section 409A with respect to one or more Tranches of the Performance Shares,  whether by reason of any  deferral election made pursuant to Paragraph 7 above or the pro-rata service-vesting provisions of this Agreement, then the following provisions shall apply with respect to any such Tranche, notwithstanding anything to the contrary set forth herein: 
-    No shares of Common Stock or other amounts which become issuable or distributable with respect to such Tranche 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 with respect to such Tranche 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 

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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 of Common Stock 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.
-    No amounts that vest and become payable under Paragraph 4 of this Agreement with respect to that Tranche by reason of a Change in Control shall be distributed to Participant at the time of such Change in Control, unless that transaction also constitutes a Qualifying Change in Control.  In the absence of such a Qualifying Change in Control, the distribution shall not be made until the date on which the shares to which those amounts pertain would have become issuable in accordance with the provisions of Paragraph 6(a) of this Agreement. 
-    If Participant has made a deferral election under Paragraph 7 of this Agreement with respect to any Tranche of Performance Shares under this Award, no amounts that vest and become payable under Paragraph 4 with respect to that particular Tranche by reason of a Change in Control shall be distributed to Participant at the time of that Change in Control unless (i) the transaction also constitutes a Qualifying Change in Control and (ii) such deferral election provides for a distribution upon such an event.  In the absence of such a Qualifying Change in Control or distribution election tied thereto, the distribution shall not be made until the date on which the shares of Common Stock to which those amounts pertain would have become issuable in accordance with Participant's deferral election under Paragraph 7 of this Agreement. 
-     The shares of Common Stock that are issuable pursuant to each Tranche of Performance Shares in accordance with the provisions of this Agreement and attached Schedule I shall be deemed a separate payment for purposes of Code Section 409A.
13.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.
14.Governing Law/Venue.  The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without resort to that State's conflict-of-laws rules.  For purposes of any action, lawsuit or other proceedings brought to enforce this Agreement or otherwise relating to or arising from this Agreement, the parties hereby submit to and consent to the sole and exclusive jurisdiction of the courts of San Mateo County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this grant is made and/or to be performed.
15.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 

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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.
16.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 Plan Services at stockplanservices@gilead.com.
17.Electronic Delivery and Acceptance.  The Corporation may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Corporation or a third party designated by the Corporation.
18.Severability.  The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
19.Waiver.  Participant acknowledges that a waiver by the Corporation of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach of this Agreement.
20.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 (or other securities or property distributed) under this Agreement 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 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 

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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.  The Administrator shall have the exclusive discretion to determine when Participant ceases Continuous Service for purposes of the Award.
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.

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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.    Employer shall mean the Corporation or any Related Entity employing Participant.
R.    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 is no reported closing price or 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.
S.    1934 Act shall mean the Securities Exchange Act of 1934, as amended from time to time.
T.    Participant shall mean the person to whom the Award is made pursuant to the Agreement.
U.    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.
V.    Performance Goal shall, with respect to each separate Tranche of Performance Shares, mean the net product revenue performance goal established or to be established for that Tranche at one or more designated levels of attainment in accordance with the provisions of attached Schedule I (the “Revenue Performance Goal”) that must be subsequently attained in order to satisfy the performance-vesting requirement for the shares of Common Stock allocated to that particular Tranche. 
W.    Performance Period shall mean the one-year period specified on attached Schedule I for each separate Tranche of Performance Shares over which the attainment of the Revenue Performance Goal applicable to that particular Tranche is to be measured.
X.    Performance-Qualified Shares shall, with respect to each separate Tranche of Performance Shares, mean the maximum number of shares of Common Stock in which Participant can vest based on the level at which the Performance Goal applicable to that particular Tranche is in fact attained and shall be calculated in accordance with the provisions of attached Schedule I.  Each Performance-Qualified Share that vests pursuant to the terms of the Award shall entitle Participant to receive one share of Common Stock.
Y.    Performance Shares shall mean the number of phantom shares of Common Stock that shall be applied to the calculation of the maximum number of Performance-Qualified Shares (if any)  based on the level at which the Performance Goal for each Tranche of Performance Shares is in fact attained over the applicable Performance Period for that Tranche. 

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Z.    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.
AA.    Plan shall mean the Corporation's 2004 Equity Incentive Plan, as amended.
BB.    Qualifying Change in Control shall mean a change in control of ownership of the Corporation effected by one or more of the following transactions:
(i)a merger or consolidation in which the Corporation is not the surviving entity and in which one person or a group of related persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) acquires ownership of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities or constituting more than fifty percent (50%) of the total fair market value of the Corporation's outstanding securities;
(ii)the sale, transfer or other disposition of all or substantially all of the assets of the Corporation in complete liquidation or dissolution of the Corporation; 
(iii)any reverse merger in which the Corporation is the surviving entity but in which one person or a group of related persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) acquires ownership of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities or constituting more than fifty percent (50%) of the total fair market value of the Corporation's outstanding securities;
(iv)the acquisition, directly or indirectly, by any person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's  outstanding securities or constituting more than fifty percent (50%) of the total fair market value of the Corporation's outstanding securities pursuant to a tender or exchange offer made directly to the Corporation's stockholders; or
(v)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. 
The foregoing definition of Qualifying Change in Control shall in all instances be applied and interpreted in such manner that the applicable Qualifying Change in Control transaction that serves as an issuance event for the shares of Common Stock subject to this Award (or distribution event for any amounts relating to those shares) that vest upon the occurrence of a Change in Control and are otherwise at the time subject to the issuance or distribution restrictions of Code Section 409A will also qualify as: (i) a change in the ownership of the Corporation, as determined in accordance with  Section 1.409A-3(i)(5)(v) of the Treasury 

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Regulations, (ii) a change in the effective control of the Corporation, as determined in accordance with Section 1.409A-3(i)(5)(vi) of the Treasury Regulations, or (iii) a change in the ownership of a substantial portion of the assets of the Corporation, as determined in accordance with  Section 1.409A-3(i)(5)(vii) of the Treasury Regulations.
CC.    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.
DD.    Retirement shall mean 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.
EE.    Separation from Service shall mean Participant's cessation of Employee status by reason of his or her death, retirement or termination of employment.  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.
FF.    Service Period shall, with respect to each Tranche of Performance Shares, mean the applicable service period specified for that particular Tranche in attached Schedule I over which the Continuous Service vesting requirement in effect for that Tranche is to be measured.
GG.    Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global or Global Select Market or the New York Stock Exchange.
HH.    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.

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II.    Tranche shall mean the three separate tranches (Tranche One, Tranche Two and Tranche Three) into which the Performance Shares subject to this Award are divided in accordance with the provisions of Paragraph 1 of this Agreement and attached Schedule I.  
JJ.    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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SCHEDULE I
PERFORMANCE GOALS AND PERFORMANCE PERIODS FOR THE THREE TRANCHES OF PERFORMANCE SHARES 
ESTABLISHMENT OF SEPARATE TRANCHES
The number of Performance Shares subject to the Award has, in accordance with Paragraph 1 of this Agreement, been divided into three (3) separate Tranches: Tranche One, Tranche Two and Tranche Three.  Each such separate Tranche shall cover one-third of the number of Performance Shares subject to this Award and shall have its own separate Performance Period and Service Period. 
PERFORMANCE PERIOD FOR TRANCHE ONE
The measurement period for the Performance Goal for the Performance Shares allocated to Tranche One shall be the one-year period coincident with the Corporation's 2013 calendar fiscal year (the “Tranche One Performance Period”).
SERVICE PERIOD FOR TRANCHE ONE
The applicable Service Period to which the Performance Goal for Tranche One relates shall be the three (3)-year period beginning January 1, 2013 and ending December 31, 2015.
PERFORMANCE GOAL FOR PERFORMANCE VESTING FOR TRANCHE ONE
Performance Goal for Tranche One: The performance-vesting requirement for the Performance Shares allocated to Tranche One shall be tied to the Corporation's recognition of net product revenue for the Tranche One Performance Period in a dollar amount ranging from $9.6 Billion at twenty percent (20%) threshold level attainment to $10 Billion at target level attainment and to $10.2 Billion at maximum level attainment, with the net product revenue goal at any other point within such range  to be in the dollar amount determined on a straight-line interpolated basis pursuant to the 2013 Fiscal Year Revenue Goal/Revenue Payout Slope set forth below. For purposes of determining whether such Revenue Performance Goal is attained, the actual level of net product revenue recognized by the Corporation for the Tranche One Performance Period shall be the net product revenue of the Corporation and its consolidated subsidiaries that is reported on a consolidated basis in the Corporation's audited consolidated financial statements for the calendar fiscal year coincident with the Tranche One Performance Period, adjusted, however, to factor out the effect of any changes in applicable accounting principles that occur after the start of such period.
Performance-Qualified Shares: Within sixty-five (65) days after the completion of the Tranche One Performance Period, the Administrator shall determine and certify the actual dollar amount of net product revenue recognized by the Corporation on a consolidated basis for the Tranche One Performance Period.  The actual number of Performance-Qualified Shares that results from such certification (the “Tranche One Performance-Qualified Shares”) may range from 0% to 200% of the number of Performance Shares allocated to Tranche One in accordance with  Paragraph 1 of this Agreement, with the actual percentage to be determined on the basis of the dollar amount of net product revenue that the Administrator certifies has in fact been recognized for the Tranche One Performance Period, as measured and reported on a consolidated  basis with the Corporation's subsidiaries in accordance with the Corporation's audited consolidated financial statements for the Corporation's calendar fiscal year coincident with the Tranche One Performance Period; provided, however, that the maximum number of the shares of Common Stock that may qualify as Tranche One Performance-Qualified Shares may not exceed 200% of the number of Performance Shares allocated to Tranche One in accordance with Paragraph 1 of this Agreement.

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Payout Slope for Determining Number of Performance-Qualified Shares Based on Attained Level of Tranche One Performance Goal: The number of shares of Common Stock that may qualify as Tranche One Performance-Qualified Shares on the basis of the certified dollar amount of net product revenue recognized by the Corporation on a consolidated basis for the Tranche One Performance Period shall be calculated by multiplying the number of Performance Shares allocated to Tranche One in accordance with  Paragraph 1 of this Agreement by the applicable percentage determined in accordance with the following revenue goal/payout slope for the Tranche One Performance Goal (with appropriate straight-line interpolation for any attained level within two otherwise designated levels in such slope): 
PERFORMANCE PERIOD FOR TRANCHE TWO
The measurement period for the Performance Goal for the Performance Shares allocated to Tranche Two shall be the one-year period coincident with the Corporation's 2014 calendar fiscal year (the “Tranche Two Performance Period”).
SERVICE PERIOD FOR TRANCHE TWO
The applicable Service Period to which the Revenue Performance Goal for Tranche Two relates shall be the two (2)-year period beginning January 1, 2014 and ending December 31, 2015.
PERFORMANCE GOAL FOR PERFORMANCE VESTING FOR TRANCHE TWO
Performance Goal for Tranche Two: The performance-vesting requirement for the Performance Shares allocated to Tranche Two shall be tied to the Corporation's recognition of net product revenue for the Tranche Two Performance Period in the dollar amounts (at threshold, target and maximum levels, with appropriate straight-line interpolation between any two such designated levels) to be set by the Administrator no later than ninety (90) days after the start of that performance period, with the actual level of Revenue Performance Goal attainment for the Tranche Two Performance Period to be as measured and reported on a consolidated basis with the Corporation's subsidiaries in the Corporation's audited consolidated financial statements for the calendar fiscal year coincident with the Tranche Two Performance Period, adjusted, however, to factor out the effect of any changes in applicable accounting principles that occur after the start of such performance period. Promptly following the Administrator's establishment of the applicable Revenue Performance Goal for the Tranche Two Performance Period, Participant shall be provided with written notice of the applicable revenue goal levels and payout slope approved by the Administrator with respect to that goal.  
Performance-Qualified Shares: Within sixty-five (65) days after the completion of the Tranche Two Performance Period, the Administrator shall determine and certify the actual dollar amount of net product revenue recognized by the Corporation on a consolidated basis for the Tranche Two Performance Period.  The actual number of Performance-Qualified Shares that results from such certification (the “Tranche Two Performance-Qualified Shares”) may range from 0% to 200% of the number of Performance Shares allocated to Tranche Two in accordance with  Paragraph 1 of this Agreement, with the actual percentage to be determined on the basis of the dollar amount of net product revenue that the Administrator certifies has in fact been recognized for the Tranche Two Performance Period, as measured and reported on a consolidated  basis with the Corporation's subsidiaries in accordance with the Corporation's audited consolidated financial statements for the Corporation's calendar fiscal year coincident with the Tranche Two Performance Period; provided, however, that the maximum number of the shares of Common Stock that may qualify as Tranche Two 

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Performance-Qualified Shares may not exceed 200% of the number of Performance Shares allocated to Tranche Two in accordance with Paragraph 1 of this Agreement.
Payout Slope for Determining Number of Performance-Qualified Shares Based on Attained Level of Tranche Two Performance Goal: The number of shares of Common Stock that may qualify as Tranche Two Performance-Qualified Shares on the basis of the certified dollar amount of net product revenue recognized by the Corporation on a consolidated basis for the Tranche Two Performance Period shall be calculated by multiplying the number of Performance Shares allocated to Tranche Two in accordance with  Paragraph 1 of this Agreement by the applicable percentage determined in accordance with the payout slope (with appropriate straight-line interpolation for any attained level within two otherwise designated  levels in such slope) approved by the Administrator at the same time it establishes the applicable Revenue Performance Goal for the Tranche Two Performance Period. 
PERFORMANCE PERIOD FOR TRANCHE THREE 
The measurement period for the Performance Goal for the Performance Shares allocated to Tranche Three shall be the one-year period coincident with the Corporation's 2015 calendar fiscal year (the “Tranche Three Performance Period”).
SERVICE PERIOD FOR TRANCHE THREE 
The applicable Service Period to which the Revenue Performance Goal for Tranche Three relates shall be the one (1)-year period beginning January 1, 2015 and ending December 31, 2015.
PERFORMANCE GOAL FOR PERFORMANCE VESTING FOR TRANCHE THREE
Performance Goal for Tranche Three: The performance-vesting requirement for the Performance Shares allocated to Tranche Three shall be tied to the Corporation's recognition of net product revenue for the Tranche Three Performance Period in the dollar amounts (at threshold, target and maximum levels, with appropriate straight-line interpolation  between any two such designated levels) to be set by the Administrator no later than ninety (90) days after the start of that performance period, with the actual level of Revenue Performance Goal attainment for the Tranche Three Performance Period to be as measured and reported on a consolidated basis with the Corporation's subsidiaries in the Corporation's audited consolidated financial statements for the calendar fiscal year coincident with the Tranche Three Performance Period, adjusted, however, to factor out the effect of any changes in applicable accounting principles that occur after the start of such performance period. Promptly following the Administrator's establishment of the applicable Revenue Performance Goal for the Tranche Three Performance Period, Participant shall be provided with written notice of that goal and the applicable payout slope approved by the Administrator with respect to that goal.
Performance-Qualified Shares: Within sixty-five (65) days after the completion of the Tranche Three Performance Period, the Administrator shall determine and certify the actual dollar amount of net product revenue recognized by the Corporation on a consolidated basis for the Tranche Three Performance Period.  The actual number of Performance-Qualified Shares that results from such certification (the “Tranche Three Performance-Qualified Shares”) may range from 0% to 200% of the number of Performance Shares allocated to Tranche Three in accordance with  Paragraph 1 of this Agreement, with the actual percentage to be determined on the basis of the dollar amount of net product revenue that the Administrator certifies has in fact been recognized for the Tranche Three Performance Period, as measured on a consolidated  basis with the Corporation's subsidiaries in accordance with the Corporation's audited consolidated financial statements for the Corporation's calendar fiscal year coincident with the Tranche Three Performance Period; provided, however, that the maximum number of the shares of Common Stock that may qualify as Tranche Three 

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Performance-Qualified Shares may not exceed 200% of the number of Performance Shares allocated to Tranche Three in accordance with Paragraph 1 of this Agreement.
Payout Slope for Determining Number of Performance-Qualified Shares Based on Attained Level of Tranche Three Performance Goal: The number of shares of Common Stock that may qualify as Tranche Three Performance-Qualified Shares on the basis of the certified dollar amount of net product revenue recognized by the Corporation on a consolidated basis for the Tranche Three Performance Period shall be calculated by multiplying the number of Performance Shares allocated to Tranche Three in accordance with  Paragraph 1 of this Agreement by the applicable percentage determined in accordance with the payout slope (with appropriate straight-line interpolation for any attained level within two otherwise designated levels in such slope) approved by the Administrator at the same time it establishes the applicable Revenue Performance Goal for the Tranche Three Performance Period. 
CONTINUOUS SERVICE VESTING REQUIREMENT FOR PERFORMANCE-QUALIFIED SHARES 
The number of shares of Common Stock in which Participant may actually vest on the basis of the number of Performance-Qualified Shares certified by the Administrator for each separate Tranche of Performance Shares in accordance with the foregoing provisions shall be tied to his or her completion of the following Continuous Service vesting requirement applicable to each such Tranche: 
-    If Participant remains in Continuous Service through the last day of the applicable Service Period specified above for that Tranche, then Participant shall vest in one hundred percent (100%) of the Performance-Qualified Shares certified by the Administrator for that Tranche.
-    If Participant's Continuous Service terminates prior to the last day of the applicable Service Period specified above for that Tranche by reason of Retirement, death or Permanent Disability, then Participant shall, following the completion of the applicable Service Period for that Tranche, 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 under that particular Tranche, based on the actual level at which the Revenue Performance Goal for that Tranche is attained and certified, by a fraction the numerator of which is the number of months of Continuous Service actually completed by Participant in the applicable Service Period for that Tranche (rounded to the closest whole month) and the denominator of which is the number of months (rounded to the closest whole number) constituting the  Service Period specified above for that Tranche. 
-    If Participant's Continuous Service ceases for any other reason (including, without limitation, any deemed cessation of Continuous Service under Paragraph 8 of this Agreement) prior to the completion of the applicable Service Period specified above for that Tranche, then Participant shall not vest in any of the Performance-Qualified Shares covered by that Tranche, and all of Participant's right, title and interest to the shares of Common Stock underlying that Tranche shall immediately terminate; provided, however, that should a Change in Control occur prior to the completion of the applicable Service Period for that Tranche, then the provisions of Paragraph 4 of the Agreement shall govern the vesting of the Performance Shares (if any) allocated to that Tranche. 
-    Notwithstanding anything to the contrary in the foregoing provisions of this Continuous Service section, should Participant's Continuous Service cease for any 

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reason prior to the start of the Service Period specified above for any particular Tranche of Performance Shares, then Participant shall not vest in any of the Performance Shares allocated to that Tranche, and all of Participant's right, title and interest to the shares of Common Stock underlying that Tranche shall immediately terminate.

22GILD 2013.05.08 Ex. 10.95

Exhibit 10.95

AMENDED AND RESTATED SECOND AMENDMENT TO THE
LICENSE AND COLLABORATION AGREEMENT
This Amended and Restated Second Amendment to the License and Collaboration Agreement (this “Amended and Restated Second Amendment”) is made as of February 7, 2013 (the “Restated Second Amendment Effective Date”), by and among Gilead Sciences, Inc., a corporation organized and existing under the laws of the State of Delaware and having its principal place of business at 333 Lakeside Drive, Foster City, California 94404 (“Gilead Parent”), Gilead Sciences Limited, a corporation existing under the laws of Ireland and wholly-owned subsidiary of Gilead Parent having its principal place of business at IDA Business & Technology Park, Carrigtohill, Co. Cork, Ireland (“Gilead Sub” and, collectively with Gilead Parent, “Gilead”) and Janssen R&D Ireland, a company organized and existing under the laws of Ireland, having its principal place of business at Eastgate Village, Eastgate, Little Island, County Cork, Ireland (“Janssen”).  Each of Gilead and Janssen is sometimes referred to individually herein as a “Party” and collectively as the “Parties.”
WHEREAS, Gilead and Janssen previously entered into that certain License and Collaboration Agreement, dated as of July 16, 2009 (as amended from time to time, the “Agreement”); 
WHEREAS, Gilead and Janssen previously entered into that certain First Amendment to the Agreement, dated as of September 14, 2010 (the “First Amendment”); 
WHEREAS, Gilead and Janssen previously entered into that certain original Second Amendment to the Agreement (the “Original Second Amendment”), dated as of July 1, 2011 (the “Second Amendment Effective Date”); 
WHEREAS, Janssen was formerly Tibotec Pharmaceuticals and has now changed its name to Janssen R&D Ireland and wishes to reflect this change in entity name; and 
WHEREAS, Gilead and Janssen desire to amend and restate the Original Second Amendment to modify certain approaches to the sale of Combination Product in certain additional countries, reallocate the Parties' responsibilities with respect to certain countries and modify certain payment and distribution terms in such countries as between the Parties. 
WHEREAS, Gilead and Janssen further desire to amend and restate the Original Second Amendment to clarify the Parties' responsibilities with respect to the [*].
NOW THEREFORE, in consideration of the premises and the mutual covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree to amend the Agreement as follows:  
SECTION 1.Additional Definitions.  The following new definitions shall be inserted into the Agreement:

13.1“Branded Region B/C Combination Product” shall mean any Territory Combination Product that is Manufactured by or on behalf of Gilead or its Affiliates (or by or on behalf of Janssen or its Affiliates pursuant to Section 8.5) in accordance with the Branded Region B/C Combination Product specifications set forth in Annex Z (including the tablet color and shape set forth therein) which specifications describe a product intended by the Parties to be sold or otherwise Distributed (or Manufactured for sale or other Distribution) exclusively in Region B or Region C.

13.2“Branded Region B/C Combination Product Trade Dress” shall have the meaning set forth in Section 6.8.
13.3“Early Period” shall have the meaning set forth in Section 10.6(a)(ii).
13.4“Existing Region” shall mean the Territory excluding Region A, Region B and Region C.  
13.5“Expanded Existing Region” shall mean the Existing Region, including Russia, Mexico and Argentina.
13.6“Final TCP Invoice” shall mean an invoice or credit note issued to Janssen or its designated Affiliate in accordance with this Agreement at the end of the applicable Calendar Year for Triggering Sales of Territory Combination Product with respect to the Janssen Countries as set forth in Annex BB.
13.7“Final TMC278 Invoice” shall mean the invoice or credit note issued to Gilead or its designated Affiliate in accordance with this Agreement at the end of the applicable Calendar Year for the Regional TMC278 Annual True-Up with respect to the Gilead Countries as set forth in Annex N.
13.8“Generic Exception” shall have the meaning set forth in Section 17.2(a).
13.9“Generic Manufacturing Agreement” shall mean any agreement between Janssen or a Janssen Affiliate and a Gilead Licensee pursuant to which Janssen or its Affiliates grants such Gilead Licensee the right under intellectual property Controlled by Janssen and its Affiliates to Manufacture or commercialize Generic Region C Combination Product.
13.10“Generic Region C Combination Product” shall mean any generic Combination Product.  For clarity, Generic Region C Combination Product does not constitute Territory Combination Product.
13.11“Gilead Licensee” shall mean, at a given time, any Third Party that is a party to an agreement with Gilead or any of its Affiliates under which Gilead or such Affiliate has granted to such Third Party rights to Manufacture and sell TDF, FTC or both (as API or in the form of a generic product) in the Field in Region C.  
13.12“Gilead Region C Know-How” shall mean any and all Gilead Know-How necessary to make the Generic Region C Combination Product from TDF, FTC and TMC278.
13.13“Interim TCP Invoice” shall mean the invoice for Territory Combination Product issued to Janssen or its designated Affiliate in accordance with this Agreement that is calculated based on the TCP Interim Supply Price with respect to the Janssen Countries as set forth in Annex BB.
13.14“Janssen Licensee” shall mean, at a given time, any Third Party that is a party to an agreement with Janssen or any of its Affiliates under which Janssen or such Affiliate has granted to such Third Party rights to Manufacture and sell 27.5 mg TMC278 in combination with 300 mg TDF and 200 mg FTC in the Field in Region C. 
13.15 “Joint Region C Know-How” shall mean any and all Joint Know-How necessary to make the Generic Region C Combination Product from TDF, FTC and TMC278. 
13.16“Licensed Generic Manufacturer” shall have the meaning set forth in Section 6.12(a).
13.17“Limited Region A” shall mean Region A, excluding Russia, Mexico and Argentina.

13.18“Major Market Combination Product” shall mean any Territory Combination Product that is manufactured by Gilead in accordance with the Major Market Combination Product specifications set forth in Annex Z which specifications describe a product intended by the Parties to be sold or otherwise Distributed (or Manufactured for sale or other Distribution) in the Territory outside of Region B or Region C, which shall, for the avoidance of doubt, exclude any Region B/C Combination Product.
13.19“Major Market Trade Dress” shall mean the tablet color, embossing and printing on the tablet, and the label, packaging and package insert for the Major Market Combination Product, in each case that has been approved by the applicable Regulatory Authorities, from time-to-time.
13.20“Region A” shall mean those countries designated in Annex AA as Region A countries.  
13.21“Region B” shall mean those countries designated in Annex AA as Region B countries.
13.22“Region B/C CMO” shall have the meaning set forth in Section 8.5.
13.23“Region B/C Combination Product” shall mean Generic Region C Combination Product and Branded Region B/C Combination Product.
13.24“Region C” shall mean those countries designated in Annex AA as Region C countries.
13.25“Revaluation TCP Invoice” shall mean the invoice or credit note for revaluation of Interim TCP Invoices in accordance with Annex DD.
13.26“TCP Invoice” shall mean an Interim TCP Invoice, Revaluation TCP Invoice or a Final TCP Invoice, as applicable.
13.27“Third Party Component Distributor” shall mean a Third Party distributor that (a) purchases Truvada (or Viread and Emtriva in countries where Truvada is not sold) or the TMC278 Product, as applicable, from a Party or its Affiliates for distribution in a country in the Territory and (b) has the right to conduct the marketing, promotion, distribution, selling and other activities for the commercialization of such product.
SECTION 2.Combination Product and Gilead and Janssen Countries Definition.  
2.1.Section 1.44 of the Agreement is hereby replaced in its entirety as follows:  “Combination Product” shall mean the fixed-dose co-formulated product in oral dosage form containing, as its only APIs per single daily dose, 300 mg TDF, 200 mg FTC and 27.5 mg TMC 278, intended for adult and adolescent use, and once-daily administration.  The “adolescent” population shall be determined by industry standards (generally, age twelve (12) years to adult or equivalent weight ranges), clinical data and Approvals by the Regulatory Authorities.  Notwithstanding the foregoing, in no event shall the failure to secure Approval for an adolescent indication cause such product to fall outside of this definition.
2.2.Section 1.100 of the Agreement is hereby replaced in its entirety as follows: “Gilead Countries” shall mean all countries in the Territory, other than any Janssen Countries, as set forth in Annex AA.
2.3.Section 1.236 of the Agreement is hereby replaced in its entirety as follows: “Janssen Countries” shall mean those countries indicated as Janssen Countries in Annex AA.
2.4.Section 1.250 of the Agreement is hereby replaced in its entirety as follows;  “TMC278 Product” shall mean that certain pharmaceutical product in oral form containing 27.5 mg TMC278 (which is equivalent 

to 25 mg of rilpivirine) as its only active ingredient that was under development by Tibotec as of the Effective Date.
SECTION 3.27.5 mg of TMC278 and Associated Calculations.  
3.1.Sections 1.63 and 17.2(a) are hereby amended by replacing the word “25 mg” where it appears in each such Section with the word “27.5 mg”.
3.2.Annex J is hereby amended by replacing the word “25 mg” where it appears in such Annex with the word “27.5 mg”.
3.3.Annex P is hereby amended by replacing all references to [*].
SECTION 4.Region Definition. Section 1.202 of the Agreement is hereby replaced in its entirety as follows:
“Region” shall mean, as applicable, the Existing Region, Expanded Existing Region, Limited Region A, Region A, Region B, Region C or Japan, or any combination of the foregoing, defined subdivision of the foregoing or defined grouping of subdivisions of the foregoing, as the case may be; provided, however, that Region as used in Sections 19.5(d), 19.5(e), 19.6(d) and 19.6(e) shall mean either (a) the United States and Canada, or (b) all countries in the Territory other than the United States and Canada, as the case may be.
SECTION 5.Selling Party Definition.  Section 1.214 of the Agreement is hereby replaced in its entirety as follows:
“Selling Party” shall mean (a) Janssen in the case of the Janssen Countries and (b) Gilead in the case of the Gilead Countries.
SECTION 6.Specified Percentage Definition.  Section 1.219 of the Agreement is hereby replaced in its entirety as follows:
“Specified Percentage” shall mean (a) in the case of all countries in the Territory other than the countries in [*], subject to adjustment, on a country-by-country basis, pursuant to Section 11.6, and (b) in the case of countries in [*].
SECTION 7.Territory Definition.  Section 1.227 of the Agreement is hereby replaced in its entirety as follows:
“Territory” shall mean all countries of the world.
SECTION 8.Territory Combination Product Definition.  Section 1.228 of the Agreement is hereby replaced in its entirety as follows:
“Territory Combination Product” shall mean any Combination Product sold or otherwise distributed (or Manufactured for sale or other distribution) pursuant to this Agreement or any Ancillary Agreement, excluding, for the avoidance of doubt, any Generic Region C Combination Product.
SECTION 9.Janssen Distributor Agreement Definition.  Section 1.237 of the Agreement is hereby replaced in its entirety as follows:
“Janssen Distributor Agreement” shall mean, as applicable, Annex Z or any agreements entered into by Gilead and Janssen, or their respective Affiliates which the Parties agree supersede Annex Z with respect to 

country(ies) in which Janssen is the Selling Party and pursuant to which Gilead sells the Territory Combination Product to Janssen, in bulk or bottled form, for Distribution in one or more Janssen Countries.
SECTION 10.Access Agreement Removal.  
Section 1.4 of the Agreement is hereby deleted in its entirety.
SECTION 11.Change from Tibotec to Janssen.
All references and uses of the term “Tibotec” in the Agreement, whether alone or as part of the name of another defined term, are hereby replaced with the term “Janssen”.
SECTION 12.Other Combination Product Clinical Trials.  Section 3.2(b)(iii) of the Agreement is hereby amended by deleting the text “or Japan” from the Section.
SECTION 13.Regulatory Matters
13.1Registration Plan Creation.  Section 4.2(a) of the Agreement is hereby amended by inserting the following sentence at the end of such Section:  Within sixty (60) days after the Second Amendment Effective Date, the Parties shall update the Registration Plan to cover the countries in Region A, Region B and Region C in which a Party or its applicable Affiliate or Third Party Distributor intends to launch the Branded Region B/C Combination Product.
13.2MA Holder.  Section 4.4(a) of the Agreement is hereby amended and replaced in its entirety with the following:  MA Holder. With respect to each country in the Territory, unless otherwise agreed to in writing by the Parties or prohibited by Applicable Law, Gilead, or its designated Affiliate or Third Party Distributor, shall hold the marketing authorization with respect to the Combination Product with respect to such country.   Notwithstanding the foregoing, the Parties have agreed that Janssen, or its designated Affiliate or Third Party Distributor, will hold the marketing authorization with respect to the Combination Product in the countries set forth in the letter agreement entered into by the Parties, a copy of which is attached as Annex EE.  In those countries in which the Parties have agreed in writing that Janssen, or its designated Affiliate or Third Party Distributor, will hold the marketing authorization with respect to the Combination Product, as well as in those countries in which Janssen as the Selling Party, or its designated Affiliate or Third Party Distributor, is required by Applicable Law to hold the marketing authorization, Janssen, or its designated Affiliate or Third Party Distributor shall hold the marketing authorization.  [*].
SECTION 14.Product Information; Medical Affairs and Medical Communications.
14.1.Section 5.1(a) of the Agreement is hereby amended by inserting the words “and Section 6.3(b)” following the words “Section 5” in the first sentence.
14.2.Section 5.1(b) of the agreement is hereby amended by inserting the words “Subject to Section 6.3(b),” at the beginning of the first sentence.
SECTION 15.Distribution Rights and Related Matters.  Section 6.1 of the Agreement is hereby replaced in its entirety as follows:
6.1    Janssen Distribution Rights and Related Matters.
(a)General Restrictions on Distribution of Territory Combination Products.

(i)Major Market Combination Product.  Each Party and its Affiliates (A) may and shall only sell, offer for sale, or assist Third Parties in selling Major Market Combination Product in Region A for end use in the Field and in countries in Region A in which such Party is the Selling Party, and (B) shall not sell and shall prohibit its distributors and their respective wholesalers and distributors (if any are permitted pursuant to this Agreement) from selling Major Market Combination Product in Region B or Region C or from assisting any Third Party in doing so.
(ii)Branded Region B/C Combination Products.  Each Party and its Affiliates (A) may and shall only sell, offer for sale, or assist Third Parties in selling Branded Region B/C Combination Product in Region B or Region C for end use in the Field and in countries in Region B or Region C in which such Party is the Selling Party, and (B) shall not sell and shall prohibit its distributors and their respective wholesalers and distributors (if any are permitted pursuant to this Agreement) from selling a Branded Region B/C Combination Product outside of Region B or Region C or from assisting any Third Party in doing so.
(iii)Generic Region C Combination Products.  Each Party and its Affiliates (A) shall only sell, offer for sale, or assist Third Parties in selling Generic Region C Combination Product in Region C for end use in the Field, and (B) shall not sell and shall prohibit its distributors and their respective wholesalers and distributors (if any are permitted pursuant to this Agreement) from selling a Generic Region C Combination Product outside of Region C or from assisting any Third Party in doing so.  
(b)Notification of Generic Sale for Region C.  It is anticipated that Janssen (or its Affiliates or Third Party Distributors) may initially Distribute Branded Region B/C Combination Product in Region C where Janssen is the Selling Party.  If at any time Janssen or any of its Affiliates or Third Party Distributors determines that it desires to sell Generic Region C Combination Product in a Janssen Country in Region C, Janssen shall promptly provide advance notice to Gilead of such election and specify in which Janssen Countries in Region C it intends to sell Generic Region C Combination Product.
(c)Non-Region B/C Combination Product.  Neither Party nor any of its Affiliates shall be permitted to Distribute any Combination Product in Region C other than Region B/C Combination Product.
(d)Gilead Third Party Distributor Purchases in Region C.  Nothing in this Agreement shall prevent Gilead's Third Party Distributors in Region C from purchasing Generic Region C Combination Product from a Licensed Generic Manufacturer and selling such Generic Region C Combination Product in those Region C countries where Gilead is the Selling Party.  
SECTION 16.Specific Commercialization Obligations.  Section 6.2(b)(iii) is amended by inserting the following sentence at the end of the Section:  “Notwithstanding anything contained herein to the contrary, the Parties may from time to time mutually agree in writing on adjustments to the number of Details set forth in Annex F.”
SECTION 17.Detailing Election.  Section 6.3(a) of the Agreement is hereby amended by replacing the word “Territory” in the first sentence with “Expanded Existing Region”.
SECTION 18.Other Promotion by Parties.  Section 6.3(b) of the Agreement is hereby replaced in its entirety as follows:
(b)    Responses to Unsolicited Questions and Related Matters.  

(i)For any country in the Existing Region, Janssen and its Affiliates may not market or promote (other than Detail) the Territory Combination Product, but may in connection with their activities relating to the TMC278 Product respond to unsolicited questions that they receive with respect to the Territory Combination Product.  Gilead may elect to provide Janssen with an approved slide deck or other background materials for use in responding to such questions.  In the event that Gilead does elect to provide such materials, Janssen and its Affiliates shall respond to any unsolicited questions that they receive with respect to the Territory Combination Product in a manner consistent with such materials (unless Janssen or its applicable Affiliate believes in good faith that such materials are inconsistent with Applicable Law or its corporate policies).  
(ii)For any country in Region A, the non-Selling Party with respect to such country may respond to unsolicited questions solely in accordance with Applicable Law and based solely upon the Product Label and Insert for the Territory Combination Product in such country in Region A and any approved materials the Selling Party provides to the non-Selling Party for responding to such questions in such country, which approved materials may be withdrawn from use by the Selling Party at any time.
(iii)For any country in Region B or Region C, the non-Selling Party with respect to such country and its Affiliates shall not respond to any unsolicited question that they receive with respect to the Territory Combination Product and shall use reasonable efforts to refer any such unsolicited questions to the Selling Party for such country.  
SECTION 19.Detailing of the TMC278 Product.  Section 6.4 of the Agreement is hereby amended by inserting the phrase “, excluding any countries in Region A, Region B or Region C,” following the word “Territory” in the first sentence.
SECTION 20.Branded Region B/C Combination Product Trade Dress.  Section 6.8 of the Agreement is hereby amended by:
20.1.Changing all references to “Combination Product” in such Section to “Territory Combination Product”; and
20.2.Inserting the following at the end of such Section:  “All Branded Region B/C Combination Products shall have a different tablet color and tablet design and packaging than the Major Market Combination Product.  Without limitation of the foregoing provisions of this Section 6.8, Gilead shall designate such tablet color and design and shall design the packaging for the Branded Region B/C Combination Product, which packaging (and only such packaging) shall be used by Janssen and its Affiliates and Third Party Distributors (the “Branded Region B/C Combination Product Trade Dress”); provided, however, that Janssen shall modify such packaging as required to comply with local Applicable Law and shall translate such packaging to the local language as necessary.  Janssen shall notify Gilead and obtain Gilead's prior written approval of any such packaging modifications with respect to the Branded Region B/C Combination Product.”
SECTION 21.Licensed of Joint Technology to Generic Manufacturers.  Section 6.12 of the Agreement is hereby inserted as follows:
6.12    Generic Region C Combination Product Licensed Manufacturers.  
(a)Subject to the terms of this Agreement, notwithstanding Section 14.1(d) of this Agreement, Janssen shall have the right to license the Gilead Licensees under Janssen's interest in the Joint Technology and any intellectual property and other rights in and to TMC278 owned or otherwise 

Controlled by Janssen and its Affiliates, in each case, to Manufacture and otherwise Exploit Generic Region C Combination Products solely in Region C (or any countries therein) (each Gilead Licensee so licensed by Janssen, a “Licensed Generic Manufacturer”).  For clarity, Janssen and its Affiliates are not themselves licensed by Gilead to Exploit TDF or FTC (other than in the Territory Combination Product) and therefore shall not have the right to grant any licenses under Gilead's intellectual property with respect to TDF or FTC.  
(b)Each Party (i) represents and warrants that as of the Second Amendment Effective Date it has provided the other Party with a list of Janssen Licensees or Gilead Licensees, as applicable, that is complete and accurate as of the Second Amendment Effective Date and each Party shall, from time to time, provide the other Party a written update of such list to reflect any modifications to its Janssen Licensees or Gilead Licensees, as the case may be and (ii) from time to time, as requested by the other Party, shall provide a true and correct copy of [*] of this Agreement.  Notwithstanding anything to the contrary hereunder or in any Ancillary Agreement, neither Gilead nor Janssen shall be liable for, nor be obligated to indemnify, hold harmless or defend the other Party or any of its Indemnified Persons with respect to any act or omission of any Gilead Licensee or Janssen Licensee, respectively, and any Losses or Proceedings arising therefrom provided that such Party has complied with its obligations hereunder with respect to such Gilead Licensee or Janssen Licensee.  
SECTION 22.Trademark and Patent Lists for Region A, B and C.  Section 6.13 of the Agreement is hereby inserted as follows:
6.13    Updated Trademark and Patent Lists.  For the countries in Region A, Region B and Region C, at reasonable intervals, the Selling Party may request from the non-Selling Party updates to Annexes A and B to include the Patents and Trademarks covered thereby for such countries, in which case the non-Selling Party shall provide such update for its applicable Patents and Trademarks within a reasonable time following such request.
SECTION 23.Technology Transfer; Generic Licensees.  Section 6.14 of the Agreement is hereby inserted as follows:
6.14    Technology Transfer Package.  Upon the written request of Janssen, Gilead shall prepare a written technology transfer package of Gilead Region C Know-How and Joint Region C Know-How available to Gilead (the “Generic Technology Transfer Package”).  If Janssen notifies Gilead of any [*].
SECTION 24.Modified Pricing.  Section 7.7 of the Agreement is hereby inserted as follows:
7.7    Limited Region A, Region B and Region C Modified Pricing.  Notwithstanding anything in this Agreement to the contrary, the pricing and discounting provisions for Limited Region A, Region B and Region C shall be governed by the provisions set forth in Annex Y (and not the other provisions of this Section 7 unless expressly provided for in Annex Y).
SECTION 25.Territory Combination Product Supply to Janssen.  Section 8.2 of the Agreement is hereby replaced in its entirety and Section 8.5 is added as follows:
8.2    Territory Combination Product Supply to Janssen.  The supply of Territory Combination Product to Janssen for Distribution in the Janssen Countries and the Distribution of such Territory Combination Product by Janssen shall be governed by the terms of this Agreement, including those set forth in Annex Z.  The terms set forth in Annex Z shall constitute the Janssen Distribution Agreement for purposes of this Agreement.
8.5    [*].

SECTION 26.Retained Rights.  Section 9.5 of the Agreement is hereby amended by inserting the following two (2) sentences at the end of such Section “Notwithstanding anything contained in this Section 9.5, none of the licenses granted under this Agreement apply to Generic Region C Combination Product.  Notwithstanding any exclusivity or co-exclusivity granted in this Section 9, but subject to the terms of this Agreement, each Party and its Affiliates retains all rights under any intellectual property owned or Controlled by such Party or its Affiliates (other than Controlled as a result of the licenses granted in this Section 9), including its interest in the Joint Technology, to exercise its rights under such Party's Generic Exception.”
SECTION 27.Section 10.4 and Annex J.  A new Section 10.4(e) of the Agreement is hereby inserted as follows: 
(e)    Notwithstanding anything else in this Section 10.4 or Annex J, the provisions of this Section 10.4 and Annex J do not apply to any [*]. 
SECTION 28.Expired and Returned Product.  Section 10.6 of the Agreement is hereby replaced in its entirety with the following:
10.6    Expired and Returned Product.
(a)Gilead Countries.
(i)If Gilead (or its applicable Affiliate) is unable to sell any quantities of Territory Combination Product packaged and labeled for countries in the Territory in which Gilead is the Selling Party in its reasonable discretion on account of product expiry (or short remaining shelf-life, as applicable), or such Combination Product is otherwise returned by a Customer (and such Customer is entitled to a credit in connection with such return pursuant to Gilead's (or its Affiliate's) applicable standard return policy (published and in effect immediately prior to such return)) to Gilead (or its applicable Affiliate), and cannot be resold (any such Combination Product that cannot be so sold or is so returned and cannot be resold, “Gilead Expired/Short-Dated Product”), then (A) Gilead shall destroy such Combination Product (which destruction shall be in accordance with Applicable Law), (B) within ten (10) Business Days following the end of each calendar month, Gilead shall notify Janssen of the quantity, if any, of Gilead Expired/Short-Dated Product designated, during such calendar month, for destruction (pursuant to Gilead's standard operating procedures), and (C) with respect to any Gilead Expired/Short-Dated Product, (1) notwithstanding anything in this Agreement or any Ancillary Agreement, the Manufacturing Fees that were incurred for any Gilead Expired/Short-Dated Product shall be borne, [*].  
(ii)Notwithstanding anything preceding in Section 10.6(a)(i), during the period of time when Major Market Combination Product or Branded Region B/C Combination Product has [*].  The Parties shall coordinate in good faith to determine the timing and mechanics for effecting the foregoing adjustments and payments.
(b)Janssen Countries.  Subject to Section 2.2 of the Janssen Distributor Agreement and Annex Z, Section 10.6(a)(i) shall apply to (i) Janssen as the Selling Party, mutatis mutandis, and (ii) any Territory Combination Product that was Delivered (as defined in Annex Z) to Janssen under the Janssen Distributor Agreement, which Territory Combination Product Janssen is [*].
SECTION 29.Taxes.  Section 10.11 of the Agreement is hereby replaced in its entirety with the following:
10.11    Tax.

(a)Subject to Section 10.11(b), each Party shall be responsible for any and all sales, use, excise, value added, goods and services and similar taxes and charges imposed with respect to any payments to such Party by the other Party pursuant to this Section 10, and each Party shall be responsible for any taxes (including any such taxes imposed by way of withholding) in the nature of income or franchise taxes or based on or measured by gross or net income imposed with respect to its income.  Subject to Section 10.11(b), each Party shall pay to the proper taxing authority any and all withholding taxes or similar charges imposed by any governmental unit that are required to be withheld from any amounts due to the other Party pursuant to this Section 10, and proof of payment of such taxes or charges shall be secured and sent to such other Party as evidence of such payment.  All amounts withheld and paid by a Party pursuant to the immediately preceding sentence with respect to taxes for which the other Party is responsible pursuant to the first sentence of this Section 10.11 shall be paid for the account of such other Party and deducted from the amounts due from the paying Party to such other Party pursuant to this Section 10.  
(b)If Janssen [*].  
SECTION 30.Establishment/Adjustment of the Supply Prices.  Section 11.5 of the Agreement is hereby replaced in its entirety with the following:
11.5    Establishment/Adjustment of the Supply Prices in the Janssen Countries and Gilead Countries.  
(a)TMC278.  Subject to the other terms and conditions of this Agreement, the TMC278 Supply Agreement shall provide that, with respect to any quantity of Supplied TMC278 ultimately used in Combination Product sold in the Territory, Janssen shall issue, and Gilead shall pay, a Pre-Conversion Invoice and, solely in the case of the Gilead Countries if there is a Triggering Sale, a Post-Conversion Invoice in accordance with the terms and procedures set forth on Annexes M and N such that Gilead pays to Janssen (i) the Pre-Conversion Supply Price and the Post-Conversion Supply Price for such Supplied TMC278 in the case of the Gilead Countries and (ii) in all other cases, [*].  On a monthly basis, no later than the tenth (10th) Business Day after the end of each month, Gilead shall calculate the Post-Conversion Supply Price for such Supplied TMC278 corresponding to Combination Product for which Triggering Sales occurred in Gilead Countries in such month in accordance with Annex N, and shall provide such Post-Conversion Supply Price to Janssen.  All Pre-Conversion Supply Prices and Post-Conversion Supply Prices shall be calculated in U.S. Dollars.  For the avoidance of doubt, to the extent the TMC278 Supply Agreement is inconsistent with Annex M and Annex N of this Agreement, as amended, the terms of Annex M and Annex N shall supersede the terms of the TMC278 Supply Agreement (including, for clarity, the limitation in Annex M and Annex N that [*].
(b)Territory Combination Product.  The issuance of invoices and payment terms for Territory Combination Product sold by Gilead to Janssen or its Affiliates shall be determined according to the provisions set forth in Annex BB.
SECTION 31.Payment Terms for Region A, Region B and Region C.  Section 11.6 of the Agreement is hereby amended by inserting the following sentence at the end of the Section: “The provisions of this Section 11.6 shall not apply to any of the countries in Region A, Region B or Region C.” 
SECTION 32.Payment Term and Related Matters.  Section 11.7(d) of the Agreement is hereby amended be inserting “Solely with respect to the Expanded Existing Region and any Triggering Sales occurring therein,” at the beginning of the first sentence of the section.

SECTION 33.Payment Terms for Region A, Region B and Region C.  Section 11.7(e) of the Agreement is hereby replaced in its entirety with the following:
11.7(e)        Notwithstanding anything else in this Section 11.7, the payment terms for (i) Supplied TMC278 ultimately used in Combination Product sold in Region A, Region B and Region C are set forth in Annex M which, in the case of such Supplied TMC278, shall apply in lieu of the provisions in this Section 11.7 and (ii) Territory Combination Product sold to Janssen are set forth in Annex BB.
SECTION 34.A new Section 11.10 is added to the Agreement as follows:
11.10        Certain Shared Fees.  The Parties agree that [*].
SECTION 35.Financial Records and Audit.  
35.1.Section 12.1 of the Agreement is hereby replaced in its entirety with the following:
12.1    Financial Records.  Each Party shall, and shall cause its applicable Affiliates, Third Party Distributors and any third party distributors of Truvada or the TMC278 Product, as applicable, to, keep complete and accurate books and records pertaining to information provided to the other Party pursuant to Section 7.4(a), 11.5 or 11.9 (or required to determine that the DCPs provided by such Party comply with the terms of this Agreement).  Each Party shall keep, and shall cause its applicable Affiliates to keep, complete and accurate books and records pertaining to the determination of the Manufacturing Fees, the determination of any API Replacement Cost and any other amounts that one Party (or its Affiliates) may owe to the other Party (or its Affiliates) hereunder or under any Ancillary Agreement.  Each Party shall, and shall cause its applicable Affiliates, Third Party Distributors and third party distributors of Truvada or the TMC278 Product, as applicable, to, keep such books and records for the longer of (a) five (5) years after the Calendar Quarter in which the applicable sales occurred or such costs and expenses were invoiced, (b) the expiration of the applicable statute of limitations for tax purposes (or any expiration thereof) or (c) such longer period as may be required by Applicable Law.
35.2.Sections 12.2(b) and (c) of the Agreement are hereby replaced in their entirety with the following:
(b)    Mutually Agreed Audits.  Unless otherwise agreed by the Parties in writing, the Parties shall engage an Independent Accounting Expert to confirm, for each Calendar Year during the term of this Agreement, the accuracy of (i) any calculation by the Discount Committee, (ii) any pricing or discounting information provided to the Discount Committee or to either Party by the other Party pursuant to Section 7.4 or Annex R, (iii) any information of a Party or its Affiliates that is required to determine that the DCPs provided by such Party comply with the terms of this Agreement (including, for any Calendar Quarter up to and including the [*], (iv) the calculation of the TCP Final Supply Price for Major Market Combination Product Delivered for the Janssen Countries [*] and (v) the calculation of the Regional TMC278 Annual True-Up and the Post-Conversion Supply Price for Territory Combination Product with respect to the [*]; provided, however, that the foregoing shall not permit either Party to audit any Third Party Component Distributor, such audit being permitted solely as and to the extent provided in Section 12.2(c).  The Parties shall mutually agree in writing on the desired scope of such audit.  The Independent Accounting Expert shall conduct such other audits as mutually determined by the Parties in writing to confirm the accuracy of any financial data provided by or on behalf of either Party pursuant to Section 11.9.
(c)    Party Initiated Audits.  Without limitation of Section 12.2(b), upon the request of either Party (the “Initiating Party”), the Independent Accounting Expert shall audit the other Party (the “Audited Party”) and its applicable Affiliates to examine (subject to Section 12.2(d)) the books and records maintained by 

such Person pursuant to Section 12.1 to verify (i) any amounts reimbursable by the auditing Party hereunder or under any Ancillary Agreement, (ii) the determination of any API Replacement Cost, (iii) in the case of Gilead as the Audited Party, the Manufacturing Fees, (iv) any calculations required to be made pursuant to this Agreement, (v) any information or reports of such other Party provided pursuant to this Agreement, (vi) any information subject to the annual audit contemplated in Section 12.2(b), including the accuracy of such information from time to time with respect to one or more Customers, (vii) the accuracy of any information provided by or on behalf of any Party pursuant to Section 11.9 to the other Party to the extent that such information is used in any calculation hereunder with respect to the portion of costs and expenses borne, or revenue obtained, by the Initiating Party or any of its Affiliates hereunder or under any Ancillary Agreement and (viii) not more than one (1) time per Calendar Year and solely with respect to [*] is used in the calculations set forth in the Annexes hereto during the audited period.  The Initiating Party shall conduct an audit the scope of which is commensurate with the underlying matters being audited as itemized in this Section 12.2(c) clauses (i) - (viii); provided, however, that any audits under clause (viii) shall be conducted solely by the Party that is party to the applicable agreement with such Third Party Component Distributor and in accordance with terms and conditions of such agreement using the Independent Audit Expert or other mutually acceptable certified or chartered accountant (in each case as permitted by the terms and conditions of such agreement) and the other Party shall only have the right to review the results of such audit generated by the contracting Party and such Independent Audit Expert or accountant to the extent such audit results may be revealed pursuant to the applicable Third Party Component Distributor agreement; provided, further, that this Section 12.2(c) shall not confer rights to any Party that exceed those rights set forth in the applicable agreement with such Third Party Component Distributor.
SECTION 36.Consequences of Inaccurate DCPs and Component Prices.  Section 12.2(e) of the Agreement is hereby replaced in its entirety with the following:
(e)    Consequences of Inaccurate DCPs and Component Prices.  
(i)    NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN THE CASE OF THE EXPANDED EXISTING REGION (A) NEITHER PARTY SHALL HAVE ANY LIABILITY TO THE OTHER PARTY FOR DAMAGES AND (B) NO ADJUSTMENTS SHALL BE MADE PURSUANT TO SECTION 12.2(i), IN EITHER CASE DUE TO THE PROVISION OF INACCURATE PRICING OR DISCOUNT INFORMATION TO THE DISCOUNT COMMITTEE (OR, FOR ANY CALENDAR QUARTER UP TO AND INCLUDING THE [*]), EXCEPT TO THE EXTENT THAT SUCH BREACH OR LACK OF COMPLIANCE AROSE FROM THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF SUCH PARTY OR ITS AFFILIATES.  
(ii)    NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN THE CASE OF LIMITED REGION A, REGION B AND REGION C (A) THE SELLING PARTY SHALL HAVE NO LIABILITY TO THE NON-SELLING PARTY FOR DAMAGES AND (B) [*]. 
SECTION 37.Adjustments.  Section 12.2(i) of the Agreement is hereby replaced in its entirety with the following:  
(i)    Adjustments.
(i)The following shall apply to the Expanded Existing Region:  Except as otherwise provided in Section 12.2(e), in the event that the Independent Accounting Expert determines, pursuant to this Section 12.2, that any Party provided any inaccurate information, the Parties shall coordinate to recalculate any amounts due hereunder or under any Ancillary Agreement based on the corrected data, as 

provided by the Independent Accounting Expert, and to make any payments that may be required to ensure that costs and expenses and revenues are shared in accordance with such recalculations (and the other applicable terms of this Agreement or such Ancillary Agreement); provided, however, that if either Party provided inaccurate pricing or discount information to the Discount Committee (or, for any Calendar Quarter up to and including the [*] due to its or any of its Affiliates' gross negligence or intentional misconduct, and such inaccurate information (or non-compliant DCP) resulted in a higher selling price for the Combination Product than would have been permitted hereunder had the proper information (or DCP) been provided, then with respect to any Triggering Sales of Combination Product that were sold at a higher price that reflected such inaccurate price information of such Party (or non-compliant DCP), the Parties' respective revenue shares shall be adjusted as follows:  the Selling Party shall determine, for the Units of Combination Product sold in such Triggering Sales (the “At-Issue Units”), (a) [*].  Other than the foregoing reapportionment, no other adjustments are intended to be made to account for, or as a result of, the Corrected Revenue Share (e.g., no adjustments to the Actual Percentages).  
(ii)The following shall apply to the Limited Region A, Region B and Region C:  Except as otherwise provided in Section 12.2(e), in the event that it is determined, pursuant to this Section 12.2, that any Party provided any inaccurate information, the Parties shall coordinate to recalculate any amounts due hereunder or under any Ancillary Agreement based on the corrected data, as has been determined pursuant to this Section 12.2, and to make any payments that may be required to ensure that costs and expenses and revenues are shared in accordance with such recalculations (and the other applicable terms of this Agreement or such Ancillary Agreement)
SECTION 38.Trademark Registration Costs.  Section 14.6(c)(i) of the Agreement is hereby replaced in its entirety with the following: 
14.6(c)(i)    Registration.  Subject to the licenses granted in Section 9.4(c), the Parties agree that, as between Gilead and Janssen and their respective Affiliates, Gilead (or its designee) shall own all right, title and interest in and to the Combination Product Trademarks.  Gilead (or its designee) shall have the sole right, at its sole expense, to search, clear, file, register, prosecute and maintain the Combination Product Trademarks anywhere in the world in the name of Gilead (or its designee); provided, however, that [*].
SECTION 39.Additional Representations, Warranties and Covenants.  
39.1.Section 17.1(l) of the Agreement is hereby  replaced in its entirety  as follows: 
(a)Cooperation with In-License Agreement Compliance.  Such Party, at the request of the other Party, will reasonably cooperate with such other Party, including by complying with Annex W, to enable the other Party (or any of its Affiliates) to comply with such other Party's obligations under any agreement between such other Party or its Affiliate, on the one hand, and a Third Party, on the other hand, pursuant to which such other Party or such Affiliate obtained from such Third Party a license or similar grant of rights with respect to any of (i) in the case of Gilead as the other Party, the Gilead Patents, and (ii) in the case of Tibotec as the other Party, the Tibotec Patents (each such agreement, an “In-License Agreement”).  Each Party acknowledges that if the failure by a Party to provide such reasonable cooperation to the other Party results in a breach of such agreement, such failure to cooperate may give rise to a termination right by the Third Party that is party to the In-License Agreement.
39.2.Section 17.2(a) of the Agreement is hereby amended by:
(a)Deleting from the Section the following text “; provided, that this sentence shall not apply to Japan or any of the countries in the Access Territory from and after [*] or for such longer period as 

Gilead is negotiating in good faith with Janssen to enter into an agreement with respect to the Commercialization of the Combination Product in Japan or such Access Territory country, as the case may be”; and 
(b)Inserting in place of the deleted text the following text “; provided, however, that Janssen and its Affiliates shall not be precluded by the foregoing from granting licenses or other rights under their intellectual property to allow any generic manufacturer to Exploit, solely in and for sale in one or more countries in Region C, Combination Product; provided that the agreement between such generic manufacturer and Janssen or its applicable Affiliate granting such rights complies with Sections 17.2(d) and (e) (the right to grant such licenses to generic manufacturers described in this Section 17.2(a) and the analogous right of Gilead under Section 17.3(c) are collectively, the 'Generic Exception').”
39.3.A new Section 17.2(d) of the Agreement is hereby inserted as follows:
Requirements for Janssen Licensees.  For (x) each Janssen Licensee that enters into an agreement with Janssen following the Second Amendment Effective Date, Janssen shall ensure such agreement includes, by way of a covenant or a condition on or limitation in the scope of the rights or licenses granted, each of the following provisions (or substantially similar or more restrictive provisions) and (y) each current Janssen Licensee, [*]:
(i)All Generic Region C Combination Product manufactured by the Janssen Licensees shall only be manufactured in facilities located in Region C or, at Janssen's discretion, a subset of countries contained within Region C.  
(ii)The Janssen Licensee shall not sell and shall prohibit its Affiliates, distributors and their respective wholesalers and distributors from selling any Generic Region C Combination Product outside of Region C or from assisting any Third Party in doing so.  
(iii)The Janssen Licensee shall use a trade dress for the Generic Region C Combination Product that has a tablet color, embossing and printing on the tablet and packaging that is sufficiently different than both the Major Market Trade Dress and the Branded Region B/C Trade Dress so that there will be no likelihood of confusion.  Janssen shall review and approve exemplars of each Generic Region C Combination Product to be Manufactured by the Janssen Licensees to ensure compliance with this subsection.
39.4.A new Section 17.2(e) of the Agreement is hereby inserted as follows:
Janssen shall as soon as reasonably possible, and [*].
		
	SECTION 40.
	Additional Representations, Warranties and Covenants of Gilead.  

40.1.Section 17.3(c) of the Agreement is hereby amended by:

(a)Deleting from the Section the following text “; provided, that this sentence shall not apply to Japan or any of the countries in the Access Territory from and after [*] or for such longer period as Gilead is negotiating in good faith with Janssen to enter into an agreement with respect to the Commercialization of the Combination Product in Japan or such Access Territory country, as the case may be”; and 
(b)Inserting in place of the deleted text the following text “; provided, however, that Gilead and its Affiliates shall not be precluded by the foregoing from granting licenses or other rights under their 

intellectual property to allow any generic manufacturer to Exploit, solely in and for sale in one or more countries in Region C, Combination Product or Derivative Combination Product, provided that the agreement between such generic manufacturer and Gilead or its applicable Affiliate granting such rights complies with Sections 17.3(d) and (e).
40.2.A new Section 17.3(d) of the Agreement is hereby inserted as follows:
Requirements for Gilead Licensees.  For (x) each Gilead Licensee that enters into an agreement with Gilead following the Second Amendment Effective Date, Gilead shall ensure such agreement includes, by way of a covenant or a condition on or limitation in the scope of the rights or licenses granted, each of the following provisions (or substantially similar or more restrictive provisions) and (y) each current Gilead Licensee, [*]:
(i)All Generic Region C Combination Product manufactured by the Gilead Licensees shall only be manufactured in facilities located in Region C or, at Gilead's discretion, a subset of countries contained within Region C.
(ii)The Gilead Licensee shall not sell and shall prohibit its Affiliates, distributors and their respective wholesalers and distributors from selling any Generic Region C Combination Product outside of Region C or from assisting any Third Party in doing so.  
(iii)The Gilead Licensee shall use a trade dress for the Generic Region C Combination Product that has a tablet color, embossing and printing on the tablet and packaging that is sufficiently different than both the Major Market Trade Dress and the Branded Region B/C Trade Dress so that there will be no likelihood of confusion.  Gilead shall review and approve exemplars of each Generic Region C Combination Product to be Manufactured by the Gilead Licensees to ensure compliance with this subsection.
40.3.A new Section 17.3(e) of the Agreement is hereby inserted as follows:
17.3(e)        Gilead shall as soon as reasonably possible, and [*].
SECTION 41.Consequences of Termination.
Section 19.6(d)(vi) is hereby amended by inserting “, Annex Y” following the words “Section 7”.
SECTION 42.Survival.  Section 19.7(b) of the Agreement is hereby amended and replaced in its entirety with the following:
19.7(b)    Without limiting anything contained in Section 19.6, in the event of any termination of this Agreement for any reason, this Section 19.7 and Sections 1, 2.4, 3.4, 3.6 , 4.5, 6.1(a)(i), 6.1(a)(ii), 7 (to the extent relating to the calculation of the Parties' respective share of revenue from the sale of the Territory Combination Product that contains Supplied TMC278 shipped to Gilead (or its Affiliate) in the Expanded Existing Region during the term of this Agreement), 7.2(a) through (c) (to the extent relating to preventing the unauthorized use and disclosure of a Party's Territory Pricing Information), 7.4(c), 7.4(g), 8 (to the extent relating to payment by Gilead to Janssen for TMC278 API shipped to Gilead (or its Affiliate) during the term of this Agreement), 9.1(a)(iii), 9.1(b)(ii), 9.3(c) (to the extent relating to 9.1(a)(iii) and 9.1(b)(ii)), 9.4(d), 9.5 (only the first sentence and the last two sentences),10.2, 10.3 (solely with respect to any adjustments to the payment obligations that have accrued prior to the effective date of termination), 10.5 through 10.11, 10.12 (solely with respect to any royalties payable with respect to Territory Combination Product sold by the Selling Party or its Affiliates during the period in which Janssen is 

supplying Supplied TMC278 under the TMC278 Supply Agreement), 11.1, 11.5 through 11.7 (to the extent relating to payment by Gilead to Janssen for TMC278 API shipped to Gilead (or its Affiliate) or relating to payment by Janssen to Gilead for Territory Combination Product Delivered to Janssen (or its Affiliate), in each case during the term of this Agreement) during the term of this Agreement), 11.8 (solely for purposes of a final yield adjustment), 11.9 (solely for the purposes of final calculations under this Agreement, 11.10 (solely for the purposes of final calculations under this Agreement), 12, 13 (to the extent the matters described therein are reasonably likely to affect the Territory Combination Product), 14.1, 14.3, 14.4(d) and (f), 14.5 (other than the last sentence of 14.5), 14.6(a) through (c)(i), 15, 16.3 (solely as the matters prohibited therein relate to this Agreement), 17 (solely with respect to the representations and not with respect to any covenants set forth therein), 17.4, 18, 19.6, 20.1 through 20.15 and the Annexes to the extent applicable to the other surviving terms of this Agreement, shall survive such termination (with respect to the terminated Region, if applicable).  For the avoidance of doubt, the survival of certain terms of Annex Z are set forth in Annez Z. 
SECTION 43.Annexes I, L, M, N, Q, R, W, and Y.  Each of Annexes I, L, M, N, Q, R, W, and Y are hereby replaced in their entirety with the attached Exhibits I, L, M, N, Q, R, W, and Y, respectively.
SECTION 44.Annex Y:  Region A, Region C and Region B Alternate Pricing and Discount Rules.  Annex Y of the Agreement is hereby inserted with the attached Exhibit Y.
SECTION 45.Annex Z:  Territory Combination Product Supply to Janssen.  Annex Z of the Agreement is hereby inserted with the attached Exhibit Z.
SECTION 46.Annex AA:  Selling Party and Regions.  Annex AA of the Agreement is hereby inserted with the attached Exhibit AA.
SECTION 47.Annex BB:  Invoices and Payment Terms for Janssen Countries.  Annex BB of the Agreement is hereby inserted with the attached Exhibit BB.
SECTION 48.Annex CC:  Exchange Rates and Currency Conversion True-Up Principles.  Annex CC of the Agreement is hereby inserted with the attached Exhibit CC.
SECTION 49.Annex DD:  Calendar Year End Revaluation TCP Invoices.  Annex DD of the Agreement is hereby inserted with the attached Exhibit DD.
SECTION 50.Annex EE:  Letter Agreement Regarding Marketing Authorization for Combination Product.  Annex EE of the Agreement is hereby inserted with the attached Exhibit EE.
SECTION 51.Definitions.  All capitalized terms used, but not defined, in this Amended and Restated Second Amendment shall have their respective meanings set forth in the Agreement.
SECTION 52.Construction.  The principles set forth in Section 20.12 of the Agreement shall apply to this Amended and Restated Second Amendment.
SECTION 53.Effective Date; Incorporation of Terms; Continuing Effect.  This Amended and Restated Second Amendment shall be deemed effective for all purposes as of the Second Amendment Effective Date.  The amendment set forth in this Amended and Restated Second Amendment shall be deemed to be incorporated in, and made a part of, the Agreement, and the Agreement, the First Amendment and this Amended and Restated Second Amendment shall be read, taken and construed as one and the same agreement (including with respect to the provisions set forth in Section 20 (Miscellaneous) of the Agreement which shall, as applicable, be deemed to apply to this Amended and Restated Second 

Amendment (including with respect to the governing law).  Except as otherwise expressly amended by this Amended and Restated Second Amendment, the Agreement shall remain in full force and effect in accordance with its terms and conditions.  
SECTION 54.Counterparts.  This Amended and Restated Second Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which, taken together, shall constitute one and the same instrument.  

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the parties, intending to be bound, have caused this Amended and Restated Second Amendment to be executed on their behalf by their duly authorized agent as of the day and year first above written.

	
		
	JANSSEN R&D IRELAND

	 
	 

	By:
	/s/ Margaret Dunlea
Name: Margaret Dunlea
Title: Managing Director
          Janssen R&D Ireland

[Remainder of page intentionally left blank]

Signature Page to Amended and Restated Second Amendment

	
		
	GILEAD SCIENCES, INC.

	 
	 

	By:
	/s/ John F. Milligan
Name: John F. Milligan, Ph.D.
Title: President and Chief Operating Officer

	GILEAD SCIENCES LIMITED

	 
	 

	By:
	/s/ John F. Milligan
Name: John F. Milligan, Ph.D.
Title: Director

Signature Page to Amended and Restated Second Amendment

		
	I.
	Annex I: Calculation of Actual Percentages

		
	II.
	Annex L:  Annual Adjustments to Account for Actual Yield

		
	III.
	Annex M: Payment Terms for TMC278 Invoices

		
	IV.
	Annex N:  Post-Conversion Supply Price

		
	V.
	Annex Q:  Additional Financial Reporting

		
	VI.
	Annex R:  Discount Rules and Related Matters

		
	VII.
	Annex W:  In-License Agreement Compliance

		
	VIII.
	Annex Y: Limited Region A, Region B and Region C Pricing and Discounts

		
	IX.
	Annex Z: Territory Combination Product Supply to Janssen

		
	X.
	Annex AA:  Selling Party and Country List for Region A, Region B and Region C

		
	XI.
	Annex BB:  Invoice and Payment Terms for Territory Combination Product in Janssen Countries

		
	XII.
	Annex CC:  Exchange Rates and Currency Conversion True-Up Principles

		
	XIII.
	Annex DD:  Calendar Year End Invoice Adjustment for Janssen Countries

		
	XIV.
	Annex EE:  Letter Agreement Regarding Marketing Authorization for Combination Product.

		
	I.
	Annex I: Calculation of Actual Percentages

Capitalized terms not defined in this Annex shall have the meanings set forth in the agreement to which this Annex is attached (the “Agreement”).

For each Calendar Year, (a) an actual percentage for each Party shall be established for the Territory as a whole (each an “Actual Percentage”) in accordance with this Annex I and (b) an actual percentage for each Party shall be established on a Regional basis (as described below) in accordance with this Annex I (each a “Regional Actual Percentage”). 
 
For each Calendar Year, up to and including the Calendar Year prior to the Calendar Year in which the first Launch of the Territory Combination Product in the Territory occurs, the Actual Percentage of Gilead shall equal the Working Percentage of Gilead for such Calendar Year and the Actual Percentage of Janssen shall equal the Working Percentage of Janssen for such Calendar Year and for such period each Regional Actual Percentage of each Party shall equal the Actual Percentage of such Party. 

For each Calendar Year from and after the Calendar Year in which the first Launch of the Combination Product in the Territory occurs:

		
	A.
	Territory-Wide Percentages.

For a given Calendar Year, the Actual Percentage of Janssen shall [*].  The Actual Percentage of Gilead shall equal one hundred percent (100%) less the Actual Percentage of Janssen for such Calendar Year, i.e.:

	
	
	100% - Actual Percentage of Janssen for such Calendar Year

	 

The Actual Percentages shall be calculated by Gilead and notified to Janssen no later than January 31st of such Calendar Year. 

		
	B.
	Regional Percentages   

		
	B.1.
	Expanded Existing Region

The Regional Actual Percentage of Janssen for the Expanded Existing Region shall equal [*]:
	
	
	[*]

	[*]

The Regional Actual Percentage of Gilead for the Expanded Existing Region shall equal one hundred percent (100%) less the Regional Actual Percentage of Janssen for such Region for such Calendar Year, i.e.:

	
	
	100% - Regional Actual Percentage of Janssen for such Calendar Year

	 

Such Regional Actual Percentages shall be calculated by Gilead and notified to Janssen no later than January 31st of such Calendar Year. 

		
	B.2.
	Limited Region A, Region B and Region C.

For each of the Limited Region A, Region B and Region C, the Regional Actual Percentage [*]. 

An example of the calculation of the Actual Percentages and Regional Actual Percentages as described above, provided for illustrative purposes only, is set forth below.  

[*]

		
	II.
	Annex L:  Annual Adjustments to Account for Actual Yield

Capitalized terms not defined in this Annex shall have the meanings set forth in the agreement to which this Annex is attached (the “Agreement”).  

		
	1.
	At the end of each Calendar Year, Gilead shall determine [*], Gilead shall use reasonable efforts to provide such determinations to Janssen by February 15 after the end of the applicable Calendar Year and shall provide such determinations no later than March 1 after the end of such Calendar Year. 

		
	2.
	For each Calendar Year, no later than thirty (30) days after the applicable notification is provided pursuant to Paragraph 1 of this Annex L, (a) [*].

		
	3.
	For clarification, there shall be [*].  

An example of the calculation of the Quantity Differential and associated Calendar Year-end balance sheet adjustments pursuant to paragraph 2 above (as if it were a single Region), provided for illustrative purposes only, is attached below.

[*]

		
	III.
	Annex M: Payment Terms for TMC278 Invoices

Capitalized terms not defined in this Annex shall have the meanings set forth in the agreement to which this Annex is attached (the “Agreement”).  The payment terms for each of the Regions, for the applicable Party are as follow:

		
	A.
	Gilead Countries in the Expanded Existing Region

For the avoidance of doubt, references to the Region in this Section A are deemed to mean the Gilead Countries in the Expanded Existing Region.

		
	A.1.
	Determination of the Annual Forecast Payment Term

No later than November 15th of each Calendar Year (in conjunction with the establishment of the Pre-Conversion Supply Price), Gilead shall propose, for the upcoming Calendar Year with respect to the Gilead Countries of the Region a payment term for the payment of TMC278 Invoices (the “Annual Forecast Payment Term”) in the Region.  Gilead shall provide Janssen with a basis for its proposed payment term, which shall reflect [*].

In the event that agreement on the Annual Forecast Payment Term for the Gilead Countries in the Region cannot be reached by the Parties for a given Calendar Year by the commencement of such Calendar Year, the Annual Forecast Payment Term for such Calendar Year shall be [*] (the “Annual Default Payment Term”).  Gilead shall calculate and promptly notify Janssen of the Annual Default Payment Term for the Region. 

The Default Payment Terms and the TPD Default Payment Terms shall be determined as follows for the Region:

		
	1)
	On a country-by-country basis, for each Gilead Country [*] (each a “Default Payment Term”).  Gilead shall promptly notify Janssen of the Default Payment Term for each applicable country, once calculated.

		
	2)
	On a country-by-country basis, for each Gilead Country [*] (each a “TPD Default Payment Term”).  

		
	A.2.
	Deviation from Annual Forecast Payment Term. 

On a quarterly basis for the Region, Gilead shall calculate and report to Janssen [*]

		
	A.3.
	Payment Terms

		
	a)
	TMC278 Invoices.

For any Triggering Sales of Territory Combination Product that occur in a given calendar month in the Region, any corresponding (as determined below) TMC278 Invoices (or portions thereof) shall be due [*]

		
	B.
	Limited Region A Gilead Countries

[*]

An example of the calculation of the payment term with respect to the Gilead Countries in Limited Region A is included below:

[*]

		
	C.
	Region B and Region C Gilead Countries

The term “Region” as used in this Section C shall refer to the Gilead Countries in both Region B and Region C collectively.  [*]. 

		
	D.
	Region A, Region B and Region C Janssen Countries

For a given month, for any (a) Triggering Sales with respect to Territory Combination Product sold under an Interim TCP Invoice for Region A Janssen Countries; or (b) Delivery (as defined in Annex Z) of Territory Combination Product to Janssen for Region B or Region C Janssen Countries under an Interim TCP Invoice, Gilead shall establish due dates for the Pre-Conversion Invoices corresponding to such Interim TCP Invoice [*].

IV.    Annex N:  Post-Conversion Supply Price
Capitalized terms not defined in this Annex shall have the meanings set forth in the agreement to which this Annex is attached (the “Agreement”).  The Post-Conversion Supply Price for the applicable Region and Selling Party shall be as follows:

		
	A.
	The Gilead Countries in the Expanded Existing Region 

For purposes of this Section A, Region shall mean the Gilead Countries in the Expanded Existing Region.  The Post-Conversion Supply Price [*] 

An example of the calculation of the Post-Conversion Supply Price and the Additional Supply Price, provided for illustrative purposes only, is set forth below.
[*] 

An example of the revenue share report for the United States provided for illustrative purposes only, is set forth below.
[*] 

		
	B.
	Janssen Countries

For the avoidance of doubt, [*]
		
	C.
	Gilead Countries in Limited Region A, Region B and Region C

The term “Region” as used in this Section C shall refer to (i) the Gilead Countries in Limited Region A and (ii) the Gilead Countries in both Region B and Region C collectively.  For the avoidance of doubt, [*]
		
	C.1.
	Post-Conversion Supply Price

The Post-Conversion Supply Price for a given Calendar Year (per kilogram of Supplied TMC278) with respect to the applicable Region shall equal:
[*]
An example of the calculation of the Post-Conversion Supply Price based on certain estimates with respect to TMC278 in the Gilead Countries in the Limited Region A is included below.

[*]

		
	C.2.
	Regional TMC278 Annual True-Up

The following Regional TMC278 Annual True-Up shall be calculated [*]  
An example of the calculation of Regional Actual Net Selling Price and the Regional TMC278 Annual True-Up in the Limited Region A is included below.

[*] 

V.    Annex Q:  Additional Financial Reporting

Capitalized terms used in this Annex and not defined herein shall have the meaning set forth in the agreement to which this Annex is attached (the “Agreement”).  Section references used in this Annex shall refer to Sections in the Agreement except as otherwise provided.  

I.  Review of Calculations.  Without limitation of a Party's audit rights under Sections 12.2(b) and (c) of the Agreement, each Party may review any calculation provided by the other Party under this Annex Q with respect to the Limited Region A, Region B and Region C.  If the reviewing Party disagrees with the other Party's calculations, the reviewing Party shall promptly notify the other Party and the Parties' respective finance representatives shall confer to discuss such disagreement.  If they are unable to resolve such dispute within ten (10) Business Days, to the extent such dispute regards the calculation itself (rather than a dispute regarding an interpretation of the Agreement (including this Annex or any other Annexes) or those matters covered by Section 12.2(b) or (c)), then the reviewing Party may refer such dispute to an Independent Accounting Expert.  The determination of such Independent Accounting Expert shall be deemed binding upon the Parties absent an agreement to the contrary.  For clarity, any dispute regarding the interpretation of the Agreement (including this Annex or any other Annexes) shall be subject to the dispute resolution provisions set forth in the Agreement.  For the avoidance of doubt, this provision is intended to apply only to review of the calculations performed pursuant to this Annex Q, and shall not entitle either Party to audit the underlying information utilized in such calculations, which audit right is exclusively provided pursuant to Section 12.2(b) and (c) of the Agreement.

II.  Expanded Existing Region.  This Section II applies only with respect to the Expanded Existing Region.  The Parties shall exchange information as follows:

Each Party shall provide the other Party with the following information at the times set forth below.  Reporting pursuant to Section II of this Annex Q shall be on a country-by-country basis and, where appropriate in light of the calculations to be made under the Agreement or any Ancillary Agreements, in the aggregate for all countries reported by the applicable Party in the Expanded Existing Region.  Furthermore, to the extent applicable to the reporting contemplated in Section II of this Annex Q, the Parties shall coordinate in good faith to establish categories into which the reporting Party may group Customers based on discounts and other factors deemed relevant by the Parties (“Customer Groups”) in order to limit the level of administrative burden to the Selling Party, and such Customer Groups may change from time to time as the result of changes in Customers' respective discounts or changes in such other factors.  Once agreed by the Parties, such Customer Groups may be used by Gilead for purposes of determining the Post-Conversion Supply Price pursuant to Annex N for the Expanded Existing Region.

A.    [*]

VI.    Annex R:  Discount Rules and Related Matters
Capitalized terms not defined in this Annex shall have the meanings set forth in the agreement to which this Annex is attached (the “Agreement”).  “Representative” shall mean, with respect to a Party, either the Business Representative or the Attorney Representative of such Party. 

[*]

VII.    Annex W:  In-License Agreement Compliance
[*]

* The entity, Tibotec Pharmaceuticals, was formerly Tibotec Pharmaceuticals Limited.

VIII.    Annex Y: Limited Region A, Region B and Region C Pricing and Discounts

Capitalized terms not defined in this Annex shall have the meanings set forth in the agreement to which this Annex is attached (the “Agreement”).

		
	A.
	Generally.

The provisions set forth in this Annex Y shall apply to the pricing of Territory Combination Product sold by the Selling Party or any of its applicable Affiliates to any Third Party, including a Third Party Distributor, in any country outside the Expanded Existing Region.  For clarity, the Discount Committee described in Section 7 of the Agreements shall not govern the pricing activities under this Annex Y.
   
		
	B.
	Pricing Principles Outside the Expanded Existing Region.

		
	1.
	The Selling Party shall have discretion as to the price that it offers to sell the Territory Combination Product unless otherwise specifically provided in this Annex Y.  Except as otherwise agreed by the Parties in writing, with respect to any Price Approval Country, the Selling Party shall be responsible for managing the negotiation with the applicable authority(ies) in each such country in the Territory to obtain and maintain pricing approval.

		
	2.
	Upon request of one Party, the other Party shall make available to such requesting Party, solely to the extent allowed by Applicable Law, such information Controlled by such other Party and its Affiliates as is required in order to obtain pricing and reimbursement approvals for the Territory Combination Product.

		
	3.
	The following shall apply to Price Approval Countries in Limited Region A or Region B.  If, following the Launch of the Territory Combination Product in a given Price Approval Country, [*]

		
	4.
	As between the Parties (and their respective Affiliates), the Selling Party (and its Affiliates) (or its Third Party Distributor) shall have sole responsibility for conducting pricing and discounting negotiations (and all other contracting matters) with respect to the Territory Combination Product with Customers in the applicable country in the Territory in accordance with this Annex Y.  

		
	5.
	Gilead and Janssen shall each retain sole discretion with respect to price-setting and discounts for its respective Single Agent Products and Double Agent Product.  Notwithstanding the foregoing, [*]

		
	C.
	Disputes.

In the event that interpretation or application of this Annex Y is necessary to implement the provisions of this Annex Y, the Alliance Managers shall discuss the matter and attempt to resolve the matter by consensus. 

To the extent any of the above procedures is not permitted by Applicable Law, the Parties shall promptly agree on alternative procedures to replace such procedures.

IX.    Annex Z: Territory Combination Product Supply to Janssen

[See Separate Document]

X.    Annex AA:  Selling Party and Country List for Region A, Region B and Region C

This list shall automatically include any country that is derived from the territory of a country listed below (for example, the independent country of Southern Sudan from Sudan).

	
		
	Region A

	 
	 

	Country
	Selling Party

	Albania
	Gilead

	Argentina
	Janssen

	Bahrain
	Janssen

	Bosnia-Herzegovina
	Gilead

	Chile
	Gilead

	Colombia
	Gilead

	Costa Rica
	Gilead

	Hong Kong
	Janssen

	Israel
	Janssen

	Japan
	Janssen

	Kosovo
	Gilead

	Kuwait
	Janssen

	Lebanon
	Janssen

	Macau
	Janssen

	Malaysia
	Janssen

	Mexico
	Janssen

	Montenegro
	Gilead

	Oman
	Janssen

	Qatar
	Janssen

	Russia
	Janssen

	Saudi Arabia
	Janssen

	Serbia
	Gilead

	Singapore
	Janssen

	South Korea
	Janssen

	Taiwan
	Janssen

	United Arab Emirates
	Janssen

	Uruguay
	Gilead

	Venezuela
	Gilead

	
		
	Region B

	 
	 

	Country
	Selling Party

	Algeria
	Janssen

	Azerbaijan
	Janssen

	Belarus
	Janssen

	Cayman Islands
	Gilead

	Curacao
	Gilead

	China (Mainland)
	Janssen

	Egypt
	Janssen

	Iran
	Janssen

	Iraq
	Janssen

	Jordan
	Janssen

	Libya
	Janssen

	Morocco
	Janssen

	Panama
	Gilead

	Paraguay
	Gilead

	Peru
	Gilead

	Philippines
	Janssen

	Sint Maarten
	Gilead

	Tunisia
	Janssen

	Ukraine
	Janssen

	
		
	Region C

	 
	 

	Country
	Selling Party

	Afghanistan
	Janssen

	Angola
	Janssen

	Anguilla
	Gilead

	Antigua and Barbuda
	Gilead

	Armenia
	Janssen

	Aruba
	Gilead

	Bahamas
	Gilead

	Bangladesh
	Janssen

	Barbados
	Gilead

	Belize
	Gilead

	Benin
	Janssen

	Bhutan
	Janssen

	Bolivia
	Gilead

	Botswana
	Janssen

	British Virgin Islands
	Gilead

	Burkina Faso
	Janssen

	Burundi
	Janssen

	Cambodia
	Janssen

	Cameroon
	Janssen

	Cape Verde
	Janssen

	Central African Republic
	Janssen

	Chad
	Janssen

	Comoros
	Janssen

	Congo
	Janssen

	Congo, Dem. Rep. of the
	Janssen

	Cote d'Ivoire
	Janssen

	Cuba
	Gilead

	Djibouti
	Janssen

	Dominica
	Gilead

	Dominican Republic
	Gilead

	Ecuador
	Gilead

	El Salvador
	Gilead

	Equatorial Guinea
	Janssen

	Eritrea
	Janssen

	Ethiopia
	Janssen

	Fiji
	Janssen

	Gabon
	Janssen

	Gambia
	Janssen

	Georgia
	Janssen

	Ghana
	Janssen

	Grenada
	Gilead

	Guatemala
	Gilead

	Guinea
	Janssen

	Guinea-Bissau
	Janssen

	Guyana
	Gilead

	Haiti
	Gilead

	Honduras
	Gilead

	
		
	India
	Janssen

	Indonesia
	Janssen

	Jamaica
	Gilead

	Kazakhstan
	Janssen

	Kenya
	Janssen

	Kiribati
	Janssen

	Korea, Dem. People's Rep of
	Janssen

	Kyrgyzstan
	Janssen

	Lao, People's Dem. Rep.
	Janssen

	Lesotho
	Janssen

	Liberia
	Janssen

	Madagascar
	Janssen

	Malawi
	Janssen

	Maldives
	Janssen

	Mali
	Janssen

	Mauritania
	Janssen

	Mauritius
	Janssen

	Moldova, Rep. of
	Janssen

	Mongolia
	Janssen

	Montserrat
	Gilead

	Mozambique
	Janssen

	Myanmar
	Janssen

	Namibia
	Janssen

	Nauru
	Janssen

	Nepal
	Janssen

	Nicaragua
	Gilead

	Niger
	Janssen

	Nigeria
	Janssen

	Pakistan
	Janssen

	Palau
	Janssen

	Papua New Guinea
	Janssen

	Rwanda
	Janssen

	Saint Kitts and Nevis
	Gilead

	Saint Lucia
	Gilead

	Saint Vincent and the Grenadines
	Gilead

	Samoa
	Janssen

	Sao Tome and Principe
	Janssen

	Senegal
	Janssen

	Seychelles
	Janssen

	Sierra Leone
	Janssen

	Solomon Islands
	Janssen

	Somalia
	Janssen

	South Africa
	Janssen

	South Sudan
	Janssen

	Sri Lanka
	Janssen

	Sudan
	Janssen

	Suriname
	Gilead

	Swaziland
	Janssen

	Syria
	Janssen

	Tajikistan
	Janssen

	
		
	Tanzania, U. Rep. of
	Janssen

	Thailand
	Janssen

	Timor-Leste
	Janssen

	Togo
	Janssen

	Tonga
	Janssen

	Trinidad and Tobago
	Gilead

	Turkmenistan
	Janssen

	Turks and Caicos
	Gilead

	Tuvalu
	Janssen

	Uganda
	Janssen

	Uzbekistan
	Janssen

	Vanuatu
	Janssen

	Vietnam
	Janssen

	Yemen
	Janssen

	Zambia
	Janssen

	Zimbabwe
	Janssen

		
	XI.
	Annex BB:  Invoice and Payment Terms for Territory Combination Product in Janssen Countries

Capitalized terms not defined in this Annex shall have the meanings set forth in the agreement to which this Annex is attached (the “Agreement”).

Gilead shall issue to Janssen an Interim TCP Invoice upon shipment of Territory Combination Product pursuant to the Janssen Distributor Agreement.  Each such Interim TCP Invoice shall state the invoiced amount and quantity of Territory Combination Product covered by such invoice.  Janssen shall pay each such Interim TCP Invoice in accordance with the payment terms and calculations set forth in this Annex BB of the Agreement.

[*]   

		
	A.
	Janssen Country Combination Product Invoicing

All TCP Invoices shall be issued and paid in U.S. Dollars on the date set forth below.  

		
	A.1.
	Invoicing and Payment in Region A Janssen Countries 

For purposes of this section the Janssen Countries in Region A are collectively the “Region” for purposes of this Section A.1, such that there shall be a single Average Janssen Region Payment Term for all of the Janssen Countries in Region A.

[*]

An example of the calculation of the payment term with respect to the Janssen Countries in Region A is included below. 

[*]

[*]

		
	A.
	Janssen Country Combination Product Interim Supply Price

[*]

An example of the calculation of the TCP Interim Supply Price with respect to Territory Combination Product in Region A Janssen Countries (excluding [*]) is included below. 

[*] 

		
	B.1.
	Region B and Region C Janssen Countries

During a Calendar Year, Gilead shall supply each Unit of Branded Region B/C Combination Product to Janssen or its designated Affiliate at the TCP Interim Supply Price calculated for the Region B and Region C Janssen Countries (collectively, the Janssen Countries of Region B and Region C shall constitute a “Region” for purposes of this Section B.2) during such Calendar Year. 

[*]

[*]

		
	C.
	 Janssen Country Combination Product Annual True-Up

		
	C.1.
	Region A Janssen Countries Excluding [*]

Within ninety (90) days following the end of each Calendar Year, Gilead shall provide Janssen with a Final TCP Invoice with respect to each Interim TCP Invoice (or portion thereof) for the Janssen Countries in Region A (excluding [*]) (collectively, the “Region” for purposes of this Section C.1).  [*]
An example of the calculation of the TCP Annual True-Up is included below.  

[*]

		
	C.2.
	Region B and Region C Janssen Countries 

The following TCP Annual True-Up calculations shall be calculated collectively for the Janssen Countries of Region B and Region C (which are collectively the “Region” for purposes of this Section C.2) such that there shall be a single TCP Annual True-Up for Region B and Region C.
Within ninety (90) days following the end of each Calendar Year, Gilead shall provide Janssen with a Final TCP Invoice with respect to each Interim TCP Invoice (or portion thereof) for the Region.  [*]

XII.    Annex CC:  Exchange Rates and Currency Conversion True-Up Principles

Capitalized terms not defined in this Annex shall have the meanings set forth in the agreement to which this Annex is attached (the “Agreement”).
		
	A.
	Estimated Net Selling Price and TCP Interim Supply Price Currency Conversions

With respect to the calculation of the TMC278 Post-Conversion Supply Price in Annex N with respect to the Limited Region A, Region B and Region C and the TCP Interim Supply Price in Annex BB with respect to the Janssen Countries and the calculations associated therewith, the conversion of currency values used in such calculations with respect to a country from the local currency into U.S. Dollars shall be calculated utilizing the applicable Intra-Year Conversion Rate for such country during such Calendar Year.
“Intra-Year Conversion Rate” shall mean, with respect to a Calendar Year and a country, the daily exchange rate between the applicable country's currency and U.S. Dollars reported by the Bloomberg Professional service application on the last Business Day during the month of October in the previous Calendar Year.
		
	B.
	Regional TMC278 Annual True-Up and TCP Annual True-Up

Notwithstanding Section 10.9 of the Agreement and except as otherwise specified in Annex BB Section C.1 with regard to the DCP and Combination Product Actual Net Selling Price values in Argentina, Mexico and Russia, with respect to the calculation of the Regional TMC278 Annual True-Up in Annex N and the TCP Annual True-Up in Annex BB, the conversion of currency values used in such calculations with respect to a country from the local currency into U.S. Dollars shall be calculated utilizing the applicable Final Year Conversion Rate for such country for such Calendar Year with respect to which the Regional TMC278 Annual True-Up and TCP Annual True-Up, as applicable, is being calculated.
“Final Year Conversion Rate” shall mean, with respect to a Calendar Year and a country, the weighted average of the applicable country's Monthly Average Exchange Rate for each of the months in such Calendar Year, weighted by the corresponding Actual Unit Sales, as applicable, with respect to such country for such calendar month.
“Monthly Average Exchange Rate” shall mean, with respect to a country and a calendar month, the actual average daily exchange rate for such month for converting the applicable country's currency into U.S. Dollars, as such rate is reported in Bloomberg Professional service application.
“Actual Unit Sales” shall mean, with respect to a country and a calendar month, the actual number of Units of Territory Combination Product for which a Triggering Sale by Gilead and its Affiliates or Janssen and its Affiliates, as applicable, has occurred in such country for such calendar month.
An example of the calculation of the Final Year Conversion Rate for the TCP Annual True-Up in the Janssen Countries is included below.  

[*] 

XIII.    Annex DD:  Calendar Year End Invoice Adjustment for Janssen Countries

For purposes of this Annex DD, “Region” shall be deemed to mean each of (a) Region A (excluding [*]), (b) Region B and Region C collectively (such that there shall be one calculation for all Janssen Countries in Region B and Region C) and (c) [*]
An example of the calculation of the Revaluation TCP Invoice with respect to the Janssen Countries is included below.

[*] 

		
	XIV.
	Annex EE:  Letter Agreement Regarding Marketing Authorization for Combination Product.

February 7, 2013

John F. Milligan, Ph.D.
President and Chief Operating Officer
Gilead Sciences, Inc.
333 Lakeside Drive
Foster City, CA  94404

Re:  Marketing Authorization Holder for Combination Product

Dear Dr. Milligan,

Janssen R&D Ireland (formerly known as Tibotec Pharmaceuticals), Gilead Sciences Limited, and Gilead Sciences, Inc. entered into a License and Collaboration Agreement, dated as of July 16, 2009 (as amended, the “Agreement”) relating to the development and commercialization of the Combination Product in the Field.  (Capitalized terms used, but not defined, in this letter shall have their respective means set forth in the Agreement.)  

In accordance with Section 4.4(a) of the Agreement, Gilead, or its designated Affiliate or Third Party Distributor, shall hold the marketing authorization with respect to the Combination Product with respect to each country in the Territory, unless otherwise agreed to in writing by the Parties or prohibited by Applicable Law.  

The Parties hereby agree that Janssen, or its designated Affiliate or Third Party Distributor, will hold the marketing authorization with respect to the Combination Product in the countries listed in Attachment 1 attached hereto.  For clarity, the Parties agree that Janssen is the Selling Party for the Combination Product in Russia and China (Mainland), but Gilead, or its designated Affiliate or Third Party Distributor, shall hold the marketing authorization with respect thereto in Russia and the Import Drug License (IDL) with respect thereto in China (Mainland).

This letter shall be subject in all respects to the terms and conditions of the Agreement.  In the event of any conflict between the provisions of this letter and the provisions of the Agreement, the provisions of the Agreement shall control except with respect to the identification of the MA Holder, paragraph 3 of this letter shall control.

If you are in agreement with the principles set forth in this letter, please sign and return the enclosed copy to my attention.

Gilead Sciences Inc.

/s/ John F. Milligan_________
(Signature)

By:  John F. Milligan, Ph.D.
Title:  President and Chief Operating Officer

Date:  ___________________

Janssen R&D Ireland

/s/ Margaret Dunlea_________
(Signature)

By:  Margaret Dunlea
Title:  Managing Director, Janssen R&D Ireland

Date:  ___________________

Attachment 1
Region A
Country    
	
	
	Argentina

	Bahrain

	Hong Kong

	Israel

	Japan

	Kuwait

	Lebanon

	Macau

	Malaysia

	Mexico

	Oman

	Qatar

	Saudi Arabia

	Singapore

	South Korea

	Taiwan

	United Arab Emirates

Region B
Country    
	
	
	Algeria

	Azerbaijan

	Belarus

	Egypt

	Iran

	Iraq

	Jordan

	Libya

	Morocco

	Philippines

	Tunisia

	Ukraine

Region C
Country                                    
	
	
	Afghanistan

	Angola

	Armenia

	Bangladesh

	Benin

	Bhutan

	Botswana

	Burkina Faso

	Burundi

	Cambodia

	Cameroon

	Cape Verde

	Central African Republic

	Chad

	Comoros

	Congo

	Congo, Dem. Rep. of  the

	Cote d'lvoire

	Djibouti

	Equatorial Guinea

	Eritrea

	Ethiopia

	Fiji

	Gabon

	Gambia

	Georgia

	Ghana

	Guinea

	Guinea-Bissau

	India

	Indonesia

	Kazakhstan

	Kenya

	Kiribati

	Korea, Denim. People's Rep. of

	Kyrgyzstan

	Lao, People's Dem. Rep.

	Lesotho

	Liberia

	Madagascar

	Malawi

	Maldives

	Mali

	Mauritania

	Mauritius

	Moldova, Rep. of

	Mongolia

	Mozambique

	
	
	Myanmar

	Namibia

	Nauru

	Nepal

	Niger

	Nigeria

	Pakistan

	Palau

	Papua New Guinea

	Rwanda

	Samoa

	Sao Tome and Principe

	Senegal

	Seychelles

	Sierra Leone

	Solomon Islands

	Somalia

	South Africa

	South Sudan

	Sri Lanka

	Sudan

	Swaziland

	Syria

	Tajikistan

	Tanzania, U. Rep. of

	Thailand

	Timor-Leste

	Togo

	Tonga

	Turkmenistan

	Tuvalu

	Uganda

	Uzbekistan

	Vanuatu

	Vietnam

	Yemen

	Zambia

	Zimbabwe

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended

Annex Z: Territory Combination Product Supply to Tibotec 
(this “Tibotec Distributor Agreement” or “TDA”)

	
		
	Provision
	Term

	1    Defined Terms
	Capitalized terms used and not defined in this TDA have the respective meanings assigned to them in the Collaboration Agreement.  For clarity, this TDA shall be deemed part of the Collaboration Agreement.  Unless otherwise indicated, all section cross-references in this TDA are to the Sections of this TDA and not the Collaboration Agreement.
“Contract Manufacturer” or “CMO” shall mean any Third Party contract manufacturer with which (a) Gilead or its Affiliates contracts for the Manufacture of Territory Combination Product to fulfill its obligations hereunder, or (b) Tibotec or its Affiliates contracts for the labeling, packaging, handling or storage of Territory Combination Product. 
“Gilead Manufacturer” shall mean a Person that Manufactures Territory Combination Product supplied hereunder by or on behalf of Gilead and its Affiliates, whether it be Gilead, an Affiliate of Gilead or a Contract Manufacturer of Gilead (or an Affiliate of Gilead).
“Supply Committee” shall have the meaning set forth in the TMC278 Supply Agreement.
“Territory Combination Product Specifications” shall mean the specifications for Major Market Combination Product and Branded Region B/C Combination Product, as applicable, in each case as provided by Gilead to Tibotec promptly following NDA approval in the United States, as amended from time to time in accordance with this TDA. 
“Tibotec Packager” shall mean a Person that packages or labels Territory Combination Product supplied hereunder by or on behalf of Tibotec and its Affiliates, whether it be Tibotec, an Affiliate of Tibotec or a Contract Manufacturer of Tibotec (or an Affiliate of Tibotec).

	
		
	2     Supply of Territory Combination Product; Minimum Shelf Life
	2.1     Generally.  Subject to the terms and conditions of the Collaboration Agreement, during the term of this TDA, Gilead shall sell to Tibotec, and Tibotec shall purchase exclusively from Gilead, pursuant to Firm Orders properly submitted to Gilead hereunder, all of Tibotec's requirements of Territory Combination Product in unlabeled bottles of Major Market Combination Product or Branded Region B/C Combination Product, as applicable, for use solely as permitted under the Collaboration Agreement.  The Supply Committee shall determine the commencement date for Manufacture and sale to Tibotec under this TDA of Branded Region B/C Combination Product, including any required Manufacture of validation batches required by Applicable Law; provided that the Parties understand and agree that Gilead shall require [*] 
2.1     Minimum Shelf Life.  
2.2.1     [*]
2.2.2     [*] and for clarity Section 10.6(b) of the Collaboration Agreement shall apply.  

	
		
	3     Forecasts and Orders
	3.1     Generally.  On or before the first day of each month (the “Forecast Date”) during the term of this TDA, commencing as of the date specified in Section 3.2 or 3.3 of this TDA as applicable, Tibotec shall submit to Gilead, a forecast of the quantity of Major Market Combination Product and Branded Region B/C Combination Product that Tibotec expects to order [*] following the applicable Forecast Date (each, a “Forecast”).  Each forecast shall be prepared in good faith consultation with Gilead.  In addition, Tibotec shall, prior to the end of each Calendar Year during the Term, provide Gilead with Tibotec's good faith estimate of its annual requirements for Major Market Combination Product and Branded Region B/C Combination Product for [*] following the Calendar Year in which such estimate is given; provided, however, that, in the case of [*]
3.2     Major Market Combination Product.  Commencing [*] before the anticipated Launch in the first (1st) Tibotec Country where Tibotec will be selling the Major Market Combination Product, Tibotec shall submit to Gilead a Forecast of the quantity of Major Market Combination Product that Tibotec expects to order for [*] following the applicable Forecast Date.  The quantity of the Major Market Combination Product set forth in a given Forecast for [*] shall be binding.  Except as provided in the foregoing sentence, Forecasts shall be considered non-binding.
3.3     Branded Region B/C Combination Product.  Commencing [*] before the anticipated Launch in the first Tibotec Country where Tibotec will be selling the Branded Region B/C Combination Product, Tibotec shall submit to Gilead a Forecast of the quantity of Branded Region B/C Combination Product that Tibotec expects to order for [*] following the applicable Forecast Date.  Branded Region B/C Combination Product set forth in a given Forecast for [*] shall be binding.  Except as provided in the foregoing sentence, Forecasts shall be considered non-binding.  
3.4     Orders and Non-Binding Period.  
3.4.1   Firm Orders.  Tibotec shall notify Gilead, in the form of a purchase order or other form agreed by the Parties (each a “Firm Order”), of the Units of each of Major Market Combination Product and Branded Region B/C Combination Product to be Delivered to satisfy Tibotec's requirements at least [*] prior to the date on which such Territory Combination Product is to be Delivered.  Each Firm Order shall (a) be consistent with the quantity set forth in the applicable binding portion of the Forecast; (b) be denominated in Units, unless otherwise mutually agreed by the Parties and (c) specify the Delivery date and any reasonable delivery instructions set forth in the Firm Order.  Each Firm Order for Branded Region B/C Combination Product shall be [*] and, provided, further, that Tibotec acknowledges and agrees that production yield rates for Branded Region B/C Combination Product may inherently vary and that as a result Delivered lot sizes may inherently vary from the estimated lot size and the Parties' obligations as to such inherent variation are detailed in Section 6.1.2 of this TDA.  
3.4.2   Non-Binding Forecasts [*] and by Supply Committee Determination.  Notwithstanding Section 3.4.1, any Forecasts provided by Tibotec for [*] shall be deemed non-binding and the quantities of such Combination Product to be Delivered to Tibotec and timing of any such deliveries shall be determined by the Supply Committee and such determination of quantities and timing by the Supply Committee shall be binding on both Parties.
3.5   Russia.  Tibotec shall place separate forecasts and Firm Orders for Major Market Combination Product that will be Distributed in Russia in accordance with Section 3.2 and 3.4.
3.6   Japan.  Tibotec shall place separate forecasts and Firm Orders for Major Market Combination Product that will be Distributed in Japan in accordance with Section 3.2 and 3.4; provided, however, that such forecasts shall be [*]
3.7   Acceptance of Firm Orders.  Within [*] of initial receipt of a Firm Order from Tibotec, Gilead shall notify Tibotec whether it accepts or rejects such Firm Order.  Gilead shall accept any such Firm Order from Tibotec to the extent that such Firm Order complies with the requirements above.
3.8   Supply Committee.  The roles and responsibilities of the Supply Committee shall include the supply of Major Market Combination Product and Branded Region B/C Combination Product, including issues related to supply for Japan and Russia and those responsibilities that are set forth in Section 2.2(c) of the TMC278 Supply Agreement but as applied to the Territory Combination Product rather than TMC278. 
3.9   Distribution Limitation.  Tibotec shall not Distribute (a) in Russia or Japan any Territory Combination Product ordered and Delivered for a country other than Russia or Japan, respectively, or (b) outside of Russia or Japan any Territory Combination Product ordered and Delivered for Russia or Japan, respectively.

	
		
	4     Deviations from Firm Orders
	4.1   [*] notify Tibotec of the quantities of Major Market Combination Product or Branded Region B/C Combination Product, as applicable, that Gilead expects to be able to Deliver by the delivery date specified in the applicable Firm Order.  
4.2   Reduced Order Quantity.  In the event that Tibotec places a Firm Order that is less than the binding Forecast for such period, [*]

	5     Non-Conforming Product
	5.1   Notice of Nonconformity.  Tibotec shall notify Gilead in writing of any claim that any Territory Combination Product supplied under this TDA is not in conformance with the warranties set forth herein (“Nonconforming”) [*]  Tibotec shall promptly provide Gilead with a sample of such Nonconforming Territory Combination Product, if available, and all relevant reports, data, and laboratory test results indicating that such Territory Combination Product is Nonconforming.  Tibotec shall [*]  If Gilead and Tibotec disagree as to whether Units of Territory Combination Product are Nonconforming, Gilead and Tibotec shall designate an independent testing laboratory reasonably acceptable to both Parties to make a determination, which determination shall be binding on the Parties, absent manifest error.  Gilead shall [*]  
5.2   [*] Nonconforming Territory Combination Product.  If the independent testing laboratory (as set forth above) determines that the Territory Combination Product was Nonconforming or the Parties agree that the Territory Combination Product was Nonconforming, then [*]  
5.3   Destruction of Nonconforming Territory Combination Product.  Tibotec shall arrange for the destruction, return or other disposal, at Gilead's election, of any Nonconforming Territory Combination Product in compliance with Gilead's instructions and Applicable Law.  [*]

	
		
	6     Territory Combination Product Shortage; Failure to Supply
	6.1   Inadequate Delivered Quantity of Territory Combination Product.  
6.1.1   Tibotec shall notify Gilead in writing of any failure to Deliver Major Market Combination Product or a shortage in quantity in any shipment of Major Market Combination Product (as compared with the amount specified for Delivery in the applicable Firm Order given by Tibotec (as set forth above)) [*] days after Delivery (or scheduled Delivery) thereof.  In the event Gilead disagrees with any claim of shortage by Tibotec, each Party shall designate a representative to be present at the inventorying of the at-issue Major Market Combination Product, the results of which shall be binding on the Parties, absent manifest error (and Gilead shall invoice Tibotec solely based on such binding inventory).  Gilead shall use its Commercially Reasonable Efforts to promptly Deliver any shortage amount (as agreed upon by the Parties or determined by the inventory) of Major Market Combination Product as promptly as possible.  [*]  
6.1.2   For Firm Orders of Branded Region B/C Combination Product, Gilead's obligation to Deliver shall be deemed fulfilled if Gilead delivers [*]  
6.2   Shortage of Territory Combination Product.  If Gilead is unable to supply the full quantities of Territory Combination Product set forth in the Firm Orders from Tibotec and its Affiliates together with the amounts of Territory Combination Product needed by Gilead and its Affiliates, then Gilead shall allocate the available supply of Territory Combination Product [*]  
6.3   Notification and Cure.  If Gilead fails to supply Territory Combination Product for which it has received a Firm Order in accordance with this TDA, [*] then the matter shall be referred to the Executives for resolution pursuant to Section 2.4 of the Collaboration Agreement; provided that subsection 2.4(b) thereof shall not apply to such resolution.  
6.4   Other Remedies.  Subject to the express limitations set forth herein, the remedies set forth in this Section 6 for a material breach by Gilead shall be in addition to any other remedies Tibotec may have under this TDA, the Collaboration Agreement, or at law.  

	7     Territory Combination Product Packaging by Gilead
	7.1   Labeling.  Gilead shall supply Tibotec with Units of unlabeled bottles of Territory Combination Product.
7.2   Packaging.  Each shipment shall be packed, sealed, and shipped in accordance with Gilead's customary packaging practices and GMP.  

	8     Packaging, Labeling and Storage Technology Transfer; Packaging and Labeling Requirements
	8.1   Gilead shall assist Tibotec in establishing proper procedures with respect to packaging, labeling and storage of Territory Combination Product.
8.2   Gilead shall provide Tibotec with the core secondary packaging  and packaging insert artwork with respect to the Territory Combination Product (“Core Materials” ) for use by Tibotec in packaging and labeling Territory Combination Product.  Tibotec shall use the Core Materials to package and label the Territory Combination Product, but shall modify the Core Materials as required by Applicable Law and shall provide any necessary translations.  Gilead shall have the right, but not the obligation, to review and approve in advance the Core Materials, as so modified, for any country for which Tibotec is the Selling Party.

	
		
	9     Territory Combination Product Delivery
	9.1   Delivery shall be [*]
9.2   The shipment shall be labeled with a traceable batch number.  The bill of lading shall list the gross weight and net weight of the shipment.  Concurrent with each shipment of Territory Combination Product, Gilead shall provide Tibotec with an electronic copy of the certificate of analysis confirming that such batch meets the applicable Specifications.  In addition, upon delivery to Tibotec's carrier, Gilead shall provide Tibotec with notice that the shipment has been delivered, including the quantity of Territory Combination Product delivered.  If Tibotec requests, Gilead shall provide a written certificate of compliance for a batch or batches of Territory Combination Product delivered to Tibotec.

	10     Safety Stock
	10.1   Safety Stocks.  [*] 

	
		
	11     Quality Control
	11.1   Warranty on Territory Combination Product.  Gilead represents and warrants that, at the time of Delivery, the Territory Combination Product supplied hereunder, other than as a result of any defect or condition of the Supplied TMC278 included therein, including any breach of any warranty with respect to the Supplied TMC278 made by Tibotec in the TMC278 Supply Agreement (a) shall have been Manufactured in accordance with GMP and Applicable Law, and (b) shall conform to the Territory Combination Product Specifications for Major Market Combination Product or Branded Region B/C Combination Product, as applicable, and the applicable certificate of analysis.
11.2   Changes to Territory Combination Product Specifications.
          11.2.1   Changes to Territory Combination Product Specifications that are an Additional Requirement, shall be governed by Section 8.4 of the Collaboration Agreement.  All other changes to the Territory Combination Product Specifications for Major Market Combination Product or Branded Region B/C Combination Product shall be subject to the provisions in this TDA.  
11.2.2   If Gilead wishes to amend the Territory Combination Product Specifications, Gilead shall provide written notice thereof to the Tibotec.  [*]  Prior to delivery of Territory Combination Product to Tibotec pursuant to this TDA and solely to the extent not provided in the Product Specifications, Gilead shall establish and provide to Tibotec the specifications for bottle size and shape with respect to the supplied Territory Combination Product.  Any changes to such bottle size and shape specifications shall be treated in accordance with the process for changing the Product Specifications.
11.3   Territory Combination Product Manufacturing-Related Changes.  Manufacturing-related changes that are an Additional Requirement shall be governed by Section 8.4 of the Collaboration Agreement.  Subject to the requirements above, other manufacturing-related changes with respect to Territory Combination Product, [*]  Any Manufacturing-Related Changes made with respect to Territory Combination Product shall, in each case, comply with GMP and Applicable Law.  In the event of any such change, Gilead shall (i) be responsible to ensure that all Territory Combination Product Manufactured under the changed Manufacturing process by or on behalf of Gilead or its Affiliates meets the applicable Territory Combination Product Specifications, and (ii) provide Tibotec in a timely manner with all information reasonably needed to make corresponding amendments to the applicable regulatory filings in the Territory maintained by Tibotec with respect to the Territory Combination Product (including amending Approvals in the Territory), to the extent necessary. 
11.4   Quality Agreements.  
11.4.1   Between Gilead and its CMOs.  During the term of this TDA, Gilead shall have quality agreements in place with each of its Contract Manufacturers that Manufacture Territory Combination Product for supply hereunder.  Such quality agreements shall, at a minimum, have terms governing GMP compliance as are customary in the pharmaceutical industry.  
11.4.2   Between Gilead and Tibotec.  Prior to the shipment of any Territory Combination Product hereunder, the Parties shall enter into an agreement which sets out the policies, procedures, and standards by which the Parties shall coordinate and implement the operational and quality assurance activities and regulatory compliance objectives contemplated under this TDA with respect to the Territory Combination Product and the subsequent labeling, packaging and storage of such Territory Combination Product by Tibotec (the “Quality Agreement”).  Any amendment to the Quality Agreement shall require the written agreement of the Parties.  
11.4.3   Between Tibotec and its CMOs.  During the term of this TDA, Tibotec shall have quality agreements in place with each of its CMOs that package, label or handle Territory Combination Product purchased hereunder.  Such quality agreements shall, at a minimum, have terms governing GMP compliance as are customary in the pharmaceutical industry.  

	
		
	12     Combination Product Inspections
	12.1   [*] Inspections.  During the term of this TDA and no more than [*]  (a) Tibotec and/or its agents may inspect, during regular business hours, [*] to ascertain compliance with GMP, Applicable Law, the Territory Combination Product Specifications and the terms of this TDA in the Manufacture, handling and shipping of Territory Combination Product; and (b) Gilead and/or its agents may inspect, during regular business hours, [*] to ascertain compliance with GMP, Applicable Law, the Territory Combination Product Specifications and the terms of this TDA.  
Any such inspection of a Contract Manufacturer, a Gilead Manufacturer or a Tibotec Packager shall be coordinated with inspections thereof conducted by or on behalf of the other Party or its Affiliates, and may be conditioned on the execution of a customary confidentiality agreement between the inspecting Party (or its agent) and such Contract Manufacturer, Gilead Manufacturer or Tibotec Packager.  As part of any inspection conducted pursuant to this Section, the inspecting Party and/or its agents may inspect, as applicable, [*] (such activities, an “Inspection”).  
12.2   “For Cause” Inspection.  
12.2.1   Tibotec may conduct an Inspection of the relevant facilities of any Gilead Manufacturer that supplies Territory Combination Product hereunder, if such an Inspection is a reasonable response to a Regulatory Authority audit notice or inquiry regarding any Territory Combination Product, an unresolved deviation in the Manufacture of the Territory Combination Product, or customer complaints or adverse events regarding the Territory Combination Product.  Tibotec and Gilead shall coordinate in good faith as to the timing of any Inspection of a Contract Manufacturer conducted pursuant to this Section and Gilead or its designee shall be present at any such Inspection.
12.2.2   Gilead may conduct an Inspection of the relevant facilities of any Tibotec Packager, if such an Inspection is a reasonable response to a Regulatory Authority audit notice or inquiry regarding any Territory Combination Product, an unresolved deviation in the packaging, labeling or storage of the Territory Combination Product, or customer complaints or adverse events regarding the Territory Combination Product.  Tibotec and Gilead shall coordinate in good faith as to the timing of any Inspection of a Contract Manufacturer conducted pursuant to this Section and Tibotec or its designee shall be present at any such Inspection.
12.3   Remedial Efforts.  Following any Inspection conducted (as described above), the Parties shall meet to discuss the inspecting Party's findings, and [*]

	
		
	13     Payments
	13.1   Territory Combination Product.  Subject to the terms and conditions of this TDA and the Collaboration Agreement, for Territory Combination Product Delivered by Gilead to Tibotec hereunder, Gilead shall issue to Tibotec an invoice upon shipment of the Territory Combination Product as provided in Annex BB of the Collaboration Agreement.  Each such invoice shall state the quantity of Major Market Combination Product and Branded Region B/C Combination Product covered by such invoice and specify all amounts due in United States Dollars.  Subject to the terms and conditions of this TDA and the Collaboration Agreement, Tibotec shall pay each such invoice in accordance with the payment terms set forth in Annex BB of the Collaboration Agreement.  
13.2   Expenses.  Any expenses and/or losses hereunder which are deemed in this TDA to be included in the Manufacturing Fee shall be calculated and invoiced in accordance with Section 10.2 of the Collaboration Agreement.  Unless otherwise agreed by the Parties (including in the preceding sentence and in Section 10 of the Collaboration Agreement), (a) each Party promptly shall invoice the other Party for any amounts due under this TDA and (b) each Party shall pay any valid invoice provided by the other Party pursuant to this TDA within [*] after receipt of such invoice.

	
		
	14     Tibotec Representations, Warranties and Covenants
	14.1   Warranty on Distributed Territory Combination Product.  Tibotec represents and warrants that, at the time of distribution or sale of Territory Combination Product supplied hereunder to Third Parties, that such Territory Combination Product shall not be expired or otherwise unfit for sale as a result of Tibotec's packaging, labeling, handling or storage of such Territory Combination Product and such Territory Combination Product shall be in conformance with the Territory Combination Product Specifications and Applicable Law with respect to packaging and labeling.
14.2   Permits.  Tibotec shall obtain and maintain, all necessary permits for the packaging, labeling, receipt, storage, handling and distribution of Territory Combination Product at the facility(ies) where Territory Combination Product supplied hereunder is packaged, labeled and/or stored by or on behalf of Tibotec or its Affiliates. 
14.3   Manufacturing and Storage Records.  Tibotec shall maintain complete and accurate records relating to the receipt, handling, storage, use, packaging, labeling and disposal by or on behalf of Tibotec or its Affiliates of the Territory Combination Product supplied hereunder and standard operating procedures for the foregoing in accordance with Applicable Law and GMP and shall provide a written account of any discrepancies.  Gilead shall have the right to review such records upon the reasonable request of Gilead. 
14.4   Packaging and Labeling Specifications.  Tibotec shall label and package the Territory Combination Product in accordance with GMP and Applicable Law for the country or region in which such Territory Combination Product will be sold, released or distributed.  If any Territory Combination Product intended for release, sale or distribution by Tibotec fails to comply with the labeling and packaging requirements in accordance with the Territory Combination Product Specifications or Applicable Law for the country or region in which such Territory Combination Product will be sold, released or distributed, then Tibotec shall not release, sell or distribute such Territory Combination Product. 
14.5   Tibotec Packagers.  Tibotec shall, or shall cause the Tibotec Packagers to, maintain the facilities, equipment and machinery used in connection with the labeling and packaging of Territory Combination Product in a state of repair and operating efficiency that enables it to meet the applicable Territory Combination Product Specifications.  Tibotec shall, or shall cause such Tibotec Packagers to, validate the equipment and the labeling and packaging process and any other appropriate steps performed at such facilities and validate/calibrate all instruments used in testing such equipment and machinery, in each case to the extent used in connection with the labeling or packaging of Territory Combination Product and as required by GMP and Applicable Law.
14.6   Handling and Storage.  Tibotec shall at all times handle, store and transport Territory Combination Product in accordance with Applicable Law, GMP and GDP and in a manner and with a level of care consistent with Tibotec's handling, storage and transport of similar pharmaceutical products.

	
		
	15     Consequences of Termination
	15.1   Consequences of Termination.  In the event the Collaboration Agreement terminates or upon Tibotec ceasing to Distribute Territory Collaboration Product and/or there ceasing to be any Tibotec Countries, the following provisions shall apply:
15.1.1   Prior Orders.  [*]
15.1.2   Territory Combination Product.  Upon termination of the Collaboration Agreement by Tibotec for a Material Breach by Gilead, [*]

	16     Survival
	The following provisions of this TDA shall survive the expiry or termination of the Collaboration Agreement (which expiration or termination shall automatically terminate this TDA): Sections 1, 3.9, 9 (with respect to any Territory Combination Product Delivered following termination of this TDA), 11.1, 11.4.3, 14.3 (to the extent such records are required for a period of three (3) years following termination), 15, 16, 17 and 18.  In addition to any other Sections which may survive pursuant to this Section 16, the provisions of Sections 2.2, 3.8, 5 (provided that there shall be no obligation to replace Nonconforming Territory Combination Product), 6 (provided that there shall be no obligation to [*]), 8.2 (solely with respect to Tibotec's packaging and labeling obligations), 13 and 14 shall survive, in each case solely with regard to the Territory Combination Product Delivered by Gilead.

	17     Subcontracting
	Subject to the terms and conditions of this TDA, Gilead may subcontract the Manufacture of Territory Combination Product to one or more Contract Manufacturers.  Gilead shall have the right to select such Contract Manufacturers in its sole discretion.  In the event that Gilead delegates any of its obligations under this TDA to a subcontractor, Gilead shall remain primarily (and not secondarily or derivatively) liable for the full and timely performance by such subcontractor of all its obligations under this TDA.  Notwithstanding anything to the contrary contained herein, if Gilead engages a subcontractor to fulfill any of Gilead's obligations hereunder, Gilead shall cause such subcontractor to comply with the provisions of this TDA.

	18     Incorporation with Collaboration Agreement; Interpretation
	This TDA is incorporated into and subject to the terms of the Collaboration Agreement.  If there is any inconsistency between the provisions of this TDA and the provisions of the Collaboration Agreement, the provisions of the Collaboration Agreement shall control.  If there is any inconsistency between the provisions of this TDA and the Quality Agreement, or any purchase order, confirmation, or other document passing between the Parties relating to supply of Territory Combination Product by Gilead to Tibotec or the subsequent packaging, handling or storage of the Territory Combination Product by Tibotec hereunder, the provisions of this TDA shall control except that the Quality Agreement controls with respect to procedures for verifying compliance with quality requirements.

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