Document:

abqq_ex104.htm

EXHIBIT 10.4
  
 AB International Group, Corp.
  
 CHIEF OPERATING OFFICER EMPLOYMENT AGREEMENT (Agreement)
  
 This agreement is made July 31, 2018 (Effective Date) by and between AB International Group, Corp. located at 16th Floor, Rich Towers, 2 Blenheim Avenue, Kowloon, Hong Kong SAR (Employer) and Ian Wright of Suite 303, East Ocean Centre, 98 Granville Road, TST East, Kowloon, Hong Kong SAR (Executive) and supersedes any prior employment-related conversations or agreements between the Employer and Executive. Employer and Executive are sometimes collectively referred to herein as the “Parties” or, individually, as “Party.”
  
 Statement of Agreement:
  
 FOR AND IN CONSIDERATION of the mutual promises and covenants set forth herein, each of the Employer, directly or through its subsidiaries, and Executive hereby agrees to the employment of Executive on the following terms and conditions and, except to the extent specifically superseded by this Agreement, subject to all of the Employer’s policies and procedures regarding its employees:
  
 1. POSITION. Commencing on the Effective Date, Executive shall serve as the chief operating officer of Employer with all authority and corresponding responsibility of a chief operating officer of a corporation under Nevada law, subject to the overall authority of Employer’s Board of Directors, collectively and individually, the articles of incorporation, regulations, and other governing documents.
  
 2. ROLES & RESPONSIBILITIES. Not in limitation of the authority and responsibility of the position as described in section 1, Executive shall:
  
 a. Perform to the best of his abilities, experience and talents while providing investment guidance and raising capital for Employer;
  
 b. Exercise overall authority and responsibility to hire, discharge and determine the compensation and duties of employment of all personnel of Employer (other than members of the Board in their capacity as Directors);
  
 c. Attend no more than five in-person Board meetings per year and report out to the Board, its Executive Committee and its duly authorized committees as they shall require. Executive will detail the services rendered in connection with the operation of Employer, employment of personnel and acquisition and disposition of assets.
  
 d. Supervise and implement Employer’s policies and operating programs, budgets, procedures, and directions established or as changed from time to time (collectively, Policies and Programs) adopted by the Board;
  
 e. Direct the management and conduct of the operations of the Employer in the ordinary course of its business pursuant to the Policies and Programs of Employer; and
  
 f. Enter into transactions, agreements and take actions in the ordinary course of the Employer’s business and not contrary to the Policies and Programs.
  
 AB International Group, Corp. | 16th Floor, Rich Towers, 2 Blenheim Avenue, Kowloon, Hong Kong SAR | www.abqqs.com
  
  	 
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 g. All official agreements/contracts must have the Employer’s board’s or president’s approval prior to signing by Executive.
  
 3. TERM, NOTICE AND DISCHARGE FOR CAUSE. The term of employment shall be for six years from the Effective Date. The Agreement can be renewed or terminated for Cause or by resignation or death. Executive must provide to the Chairman or other person serving as chair of the Board written notice of resignation at least 30 days before the effective date of termination. If Executive fails to raise at least US $20,000,000 in capital for Employer within 12 months of this agreement, Employer reserves the right to terminate this employment agreement with no prior notice following the expiration of the 12 months.
  
 4. COMPENSATION. Employer agrees to pay or cause to be paid the following to Executive for his services during the term of this Employment Agreement: 
  
 a. Shares. 10,000,000 shares in Employer up front for the six-year period of this Agreement. The shares will have a restriction removal pre-dated for six months when the shares will become tradeable.
  
 b. Annual Bonus. On January 1st of each calendar year the Agreement is in effect, Employer, under direction of its Board, may pay or cause to be paid a cash bonus to Executive of one percent of the monies raised by Executive prior to all taxes and required withholdings.
  
 5. BENEFITS & PERQUISITES. Executive shall be entitled to participate in all employee benefit plans, practices, and programs maintained by the Employer and made available to senior executives. Not in limitation of the foregoing, Executive shall also be entitled to the following:
  
 a. Vacation. Executive shall be entitled to unlimited vacation per calendar year.
  
 b. Insurance. Employer shall provide the following insurances to Executive:
  
 i. Directors & Officer Liability in an amount appropriate for Employer’s business based on a determination of its Legal Counsel.
  
 ii. Health Insurance – Employer shall pay the full cost of health insurance for Executive and Executive’s family either in accordance with whatever plan the Employer maintains for its employees or one that Executive finds acceptable during this Agreement. The insurance needs to have international coverage due to the necessity of Executive’s travel.
  
 iii. Dental Insurance - Employer shall pay the full cost of dental insurance for Executive and Executive’s family either in accordance with whatever plan the Employer maintains for its employees or one that Executive finds acceptable during this Agreement.
  
 iv. Vision Insurance - Employer shall pay the full cost of vision insurance for Executive and Executive’s family either in accordance with whatever plan the Employer maintains for its employees or one that Executive finds acceptable during this Agreement.
  
 AB International Group, Corp. | 16th Floor, Rich Towers, 2 Blenheim Avenue, Kowloon, Hong Kong SAR | www.abqqs.com
  
  	 
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 c. Business Expenses.
  
 i. Travel - Employer acknowledges Executive will be required to travel for board meetings and in order for the Executive to fulfill his role and responsibilities. As such, Employer agrees to reimburse Executive for all expenses related to travel, including but not limited to, business class airfare, hotel accommodations (to include wifi, dry cleaning for travel in excess of five business days, access to fitness facilities), transportation expenses, currency transaction fees and meals.
  
 All expenses must have pre-approval of the president or board of Employer.
  
 d. Moving & Relocation Expenses. Should the Parties decide that Executive needs to spend at least 50% his time in Hong Kong, Employer shall pay for all expenses such as suitable living space and transportation. If Parties decide Executive needs to move to Hong Kong, Employer will pay for all of Executives relocation expenses for him and his family, including but not limited to, moving all their personal belongings, suitable housing, transportation and school fees.
  
 6. SUPPLMENTAL RETIREMENT BENEFIT. If Executive’s employment is terminated due to disability or death, Employer shall pay Executive or, in the case of his death, to his designated beneficiary, a supplemental retirement benefit US $1,000,000 prior to all taxes and other withholdings.
  
 7. SEVERANCE PAY, BENEFITS & LIQUDATED DAMAGES.
  
 a. Severance Payments for Death; Discharge without Cause; or Resignation for Good Reason. If Executive’s employment is terminated by death, Employer discharges Executive for anything other than for Cause, or Executive resigns for Good Reason, Executive shall be entitled to, and the Employer shall pay Executive severance pay in the amount of US $1,000,000 each year for the period of three calendar years (Continuation Period). Severance shall be reduced by the gross rate of all other compensation for services, if any, earned and received by Executive from any source other than Employer during the same period. Upon request, Executive shall provide Employer with copies of (i) any Forms W-2 or 1099 received, or (ii) copies of Executive's income tax returns, for any period including any part of the foregoing period. Notwithstanding the forgoing, the continued payments during the Continuation Period shall be subject to Executive’s being available upon advance reasonable request by the Employer to advise the Employer or its agents during regular business hours regarding matters believed to be within Executive’s knowledge because of his positions with the Employer. Notwithstanding the forgoing, Executive's right to severance pay shall be subject to forfeiture and repayment as provided in Section 9.
  
 b. Medical Benefits. During the Continuation Period, or, if shorter, the period of time that Executive would be entitled to continuation coverage under a group health plan of the Employer under section 4980B of the Code (COBRA) if Executive elected such coverage and paid the applicable premiums, the Employer will pay to Executive as supplemental compensation an amount equal to 1.30 times each payment of the expenses substantiated as actually paid by Executive for coverage in any program providing for welfare benefits in which Executive was a participant on the date of termination that are not otherwise reimbursed by any other person and that are otherwise allowable as a deduction under section 213 of the Code (without regard to any limitations on deductibility). Premiums paid for welfare benefits that may be reimbursed under this section include, but are not limited to, health, medical, dental, vision, and disability.
  
 AB International Group, Corp. | 16th Floor, Rich Towers, 2 Blenheim Avenue, Kowloon, Hong Kong SAR | www.abqqs.com
  
  	 
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 c. Liquidated Damages upon Failure to Give Notice of Resignation. Notwithstanding any provision to the contrary in this Agreement, if Executive quits other than for Good Reason without giving proper notice, Executive shall pay to the Employer as liquidated damages immediately due upon such termination the amount of US $50,000, plus any costs, including attorney fees, incurred by Employer in enforcement of such notice provision or in collection of such liquidated damages. Employer shall have the right to set off against any other amount owed Executive pursuant to this Agreement, such amount of liquidated damages and pursue collection of any remaining balance of such liquidated damages.
  
 d. Dispute as to Existence of Cause or Good Reason. Any discharge claimed for Cause or resignation claimed for Good Reason shall be so stated in the notice thereof, and any dispute between the Employer and Executive as to the existence of Cause or Good Reason shall be resolved as provided in Section 11. 
  
 e. Cause shall exist if Executive:
  
 i. Is convicted of, or pleads guilty or nolo contendere to, a felony or any act amounting to embezzlement, fraud, or theft or involving moral turpitude;
  
 ii. Is convicted of, or pleads guilty or nolo contendere to, in a court of competent jurisdiction, a felony resulting in death, substantial bodily, psychological harm to or other act of moral turpitude harming, any person;
  
 iii. Willfully engages in conduct materially injurious to the goodwill and reputation of Employer;
  
 iv. Willfully causes Employer, other than pursuant to the advice of Employer legal counsel, to violate a law which, in the opinion of Employer legal counsel, is reasonable grounds for civil or criminal penalties against Employer or its Board;
  
 v. Willfully engages in conduct which constitutes a violation of Employers written Policies or Procedures regarding the conduct of its employees, including policies regarding sexual harassment of employees and the use of illegal drugs or substances;
  
 vi. Without due cause, fails within 30 days after receipt of notice to follow any lawful order given by or under direction of the Board;
  
 vii. Does not correct within 30 days after receipt of notice any act or omission that, in the opinion of the Employer’s legal counsel, gives rise to a cause of action by Employer or its Board personally against Executive to specifically enforce or restrain some action for purpose of avoiding or recovering losses or damages, for an amount in excess of $10,000; and
  
 viii. Does not correct within 30 days after receipt of notice any act of dishonesty against Employer;
  
 f. Good Reason shall exist in the absence of Cause if:
  
 i. Executive ceases to hold position and title of chief operating officer as contemplated in this
  
 Agreement, or a position and title of a more senior position which Executive accepts;
  
 ii. Executive is assigned, without Executive’s consent, authority or responsibility materially inconsistent with authority and responsibility contemplated in this Agreement, including material diminution of Executive’s authority and responsibility for supervision and compensation of all Employer personnel or change in reporting requirements to anyone other than the Board or its duly authorized committees;
  
 AB International Group, Corp. | 16th Floor, Rich Towers, 2 Blenheim Avenue, Kowloon, Hong Kong SAR | www.abqqs.com
  
  	 
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 iii. Executive becomes disabled to the extent that Executive cannot, with reasonable accommodation, effectively perform the requirements of Executive’s position and is unable to effectively exercise Executive’s authority and perform Executive’s responsibility under this Agreement;
  
 iv. Employer fails to obtain an agreement from any successor or assign of the Employer to assume and agree to perform the obligations of the Employer under this Agreement; and
  
 v. Employer does not correct within 30 days after receipt of notice any act or omission that gives rise to a cause of action by Executive personally against the Employer to specifically enforce or restrain some action for purpose of avoiding or recovering losses or damages, for an amount in excess of US $10,000.
  
 g. Termination:
  
 In the case that the agreement is terminated after 12 months of the date of this agreement due to Executive not raising US $20,000,000 within 12 months of the agreement, Executive must return 8,333,333 shares to Employer.
  
 8. EXECUTIVE COVENANTS. Without the prior written consent of the Employer, Executive shall not engage in the following:
  
 a. No Unauthorized Competition. For a period of six months thereafter, Executive will not compete against Employer in Hong Kong.
  
 b. No Disloyal Act. During the term of Executive’s employment, take any action regarding the Employer, its operations or property, that in good faith Executive knows or should reasonably know is opposed to the best interests of the Employer;
  
 c. No Unauthorized Usurpation of Employer Opportunity. During Executive’s employment, take advantage of any Employer opportunity without first offering full disclosure of the opportunity to Employer and receiving notice that the Employer has declined such opportunity. For this purpose, “Employer opportunity” means any opportunity to engage in a business activity: (1) of which Executive becomes aware (A) by virtue of Executive’s relationship with, or in connection with performing functions in the business of, or in using facilities or other resources of the Employer, and (B) under circumstances that should reasonably lead Executive to believe that the person offering the opportunity expects it to be offered to the Employer; or (2) which Executive knows is closely related to a business in which the Employer is engaged or expected to engage;
  
 d. No Unauthorized Disclosure. During the term of Executive’s employment and thereafter, make or cause to be made any unauthorized disclosure of Employer’s confidential information or its activities and operations, except to the extent reasonably necessary or appropriate in connection with the performance of Executive’s authority and responsibility under this Agreement or as may be legally required; provided, however, that nothing herein contained shall preclude the use or disclosure of any information known generally to the public;
  
 AB International Group, Corp. | 16th Floor, Rich Towers, 2 Blenheim Avenue, Kowloon, Hong Kong SAR | www.abqqs.com
  
  	 
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 e. No Unauthorized Solicitation. During the term of Executive’s employment and for a period of one year thereafter or, if longer, during any Continuation Period, attempt to or interfere with the Employer’s (or any of its subsidiaries or affiliates) relationship with, including prospective or current employees of Employer (or any of its subsidiaries or affiliates);
  
 f. No Disparagement. During the term of Executive’s employment and during any Continuation Period, Executive will not criticize, ridicule or make any disparaging or derogatory statement about Employer or any person affiliated with Employer in any communications with any customer or client, vendor or supplier of Employer or in any public statement; or
  
 g. No Failure to Return Property. Upon termination of employment, Executive will immediately return all Employer property in Executive’s possession or control, tangible or intangible, including without limitation trade secrets, confidential and proprietary information and intellectual property in whatever embodiment or form, and all copies and other reproductions and extracts thereof, including those prepared by Executive.
  
 9. FORFEITURE. Notwithstanding any other provision to the contrary contained herein, the right of Executive or his estate or other beneficiaries shall forfeit all rights to receive or retain all payments and benefits if :
  
 a. Executive breaches any of this Agreement;
  
 b. Executive makes, except as required by law, any disparaging remark, orally or in writing, about Employer, except to those persons who have a need to know and have a corresponding fiduciary or contractual obligation to keep such conversations confidential, provided that this obligation shall not prohibit Executive from enforcing or defending any legal right he may have at law or in equity in appropriate legal proceedings against any other person;
  
 c. Cause is found to exist within the meaning of Section 7 for termination of Executive or, if Executive resigns pursuant to Section 7 claiming Good Reason and Good Reason is found not to exist, even if such finding is after Executive’s termination; or
  
 d. Employer materially fails to maintain or has falsified (1) books, records, and accounts in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Employer, and (2) a system of internal accounting controls sufficient to provide reasonable assurances that transactions (i) are executed in accordance with management's general or specific authorization, and (ii) are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles.
  
 10. SPECIFIC ENFORCEMENT. Executive acknowledges that any breach of the covenants in Section 8 may result in irreparable injury and damage to Employer for which it may have no adequate remedy at law. Accordingly, Executive agrees that in the event of any such breach or any threat of breach:
  
 a. Employer shall, in addition to any other remedies or damages available to it at law or in equity, be entitled to immediate and permanent specific performance injunctive relief restraining such breach or threatened breach, without having to prove damages. In addition, the Employer shall be entitled to all costs and expenses, including reasonable attorneys’ fees and costs in enforcing the covenants of Section 8. The covenants of Section 8 and the remedies of the Employer under this section 10 shall survive any termination of this Agreement. Further, the existence of any claim or cause of action by Executive against Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of the covenants of section 8.
  
 AB International Group, Corp. | 16th Floor, Rich Towers, 2 Blenheim Avenue, Kowloon, Hong Kong SAR | www.abqqs.com
  
  	 
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 11. RESOLUTION OF DISPUTES. Any disputes arising under or related to this Agreement or regarding the legal rights or obligations of any of the parties to this Agreement, including any dispute between the Employer and Executive as to the existence of Cause or Good Reason, shall be resolved as follows:
  
 a. Negotiation. Employer and Executive shall attempt in good faith to resolve any such dispute promptly by negotiation. Either may give the other written notice of any dispute not resolved in the normal course of business, stating that party’s position and designating a representative of that party to proceed with negotiations. Within 10 days after delivery of the notice, the receiving party shall submit to the other a written response, stating the responding party's position and designating a representative of the responding party to proceed with negotiations. Within 20 days after delivery of the disputing party's notice, the designated representative of each party to the dispute shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to attempt to resolve the dispute. All reasonable requests for information made by one party to the other will be honored.
  
 b. Arbitration. If any issues in dispute are not resolved by such negotiation (or if any party fails to participate in such negotiation), any party may, by written notice to the other, demand that the dispute be resolved by binding arbitration in Reno, Nevada, before a single arbitrator pursuant to the national rules for the resolution of employment disputes of the American Arbitration Association (“AAA”). The arbitrator shall be instructed, and the parties shall cooperate, with completing the arbitration with a ruling, if possible, in writing on each issue in dispute within 120 days of the arbitrator’s appointment by the AAA. The arbitrator shall have the power to award damages, equitable relief, reasonable attorney's fees and expenses, and the fees and expenses of the arbitrator and of the AAA, to any party consistent with Federal Rule of Civil Procedure 54(d) or successor Rule. The arbitrator’s rulings and awards shall be final and binding upon the parties and judgment thereon may be entered in any court having competent jurisdiction. Except and unless otherwise awarded by the arbitrator, Employer shall pay the fees and expenses of the arbitrator and of the AAA.
  
 12. MISCELLANEOUS.
  
 a. Representation as to Limitations. Executive represents and warrants that Executive is not under any contractual or legal restraint that prevents or prohibits Executive from entering into this Agreement or performing the duties and obligations described in this Agreement.
  
 b. Successors and Assigns. This agreement shall be binding upon and inure to the benefit of Employer, its successors and assigns and shall be binding upon Executive, Executive’s administrators, executors, legatees, heirs, and other legal representatives. Employer shall require any successor or assign to expressly assume and agree to perform this Agreement in the same manner and to the same extent that Employer would be required to perform it if no such succession or assignment had taken place. Except to the extent the context otherwise requires, the term “Employer” as used herein shall include any such successors and assigns to Employer’s operations or assets. Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by Executive, Executive’s administrators, executors, legatees, heirs, and other legal representatives, except by will or by the laws of descent and distribution.
  
 c. Notices. Any notice to be given to a Party hereunder shall be given by email.
  
 d. Amendment/Waiver. No amendment or waiver of any provision of this Agreement shall be implied by any failure of any Party to enforce any remedy upon the violation of such provision, even if such violation is continued or repeated subsequently, and in no event shall any amendment or waiver of any provision of this Agreement be effective against any party hereto unless expressed in writing signed by that party. No express waiver shall affect any provision other than the one specified in such waiver, and that only for the time and in the manner specifically stated.
  
 AB International Group, Corp. | 16th Floor, Rich Towers, 2 Blenheim Avenue, Kowloon, Hong Kong SAR | www.abqqs.com 
  
  	 
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 e. Severability. If any provision of this Agreement is or becomes invalid, illegal, or unenforceable in any jurisdiction for any reason, such invalidity, illegality, or unenforceability shall not affect the remainder of this Agreement, and the remainder of this Agreement shall be construed and enforced as if such invalid, illegal, or unenforceable portion were not contained herein.
  
 f. Governing Law. This Agreement shall be construed and enforced under and in accordance with the laws of the State of Nevada without giving effect to the conflict of law principles thereof.
  
 Signatures:
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first written above.
  
  	 AB International Group, Corp.
	 	Ian Wright 	 
	  
	  
	  
	  
	  

	 By:
	  
 
	 	By:	  
	 
	  
		 	 		 
	 Title:
	President	 	Title:	COO	 

  
 AB International Group, Corp. | 16th Floor, Rich Towers, 2 Blenheim Avenue, Kowloon, Hong Kong SAR | www.abqqs.com
  
  
  	 page 8 of 8Exhibit 10.1

 

SEPARATION AGREEMENT AND RELEASE

 

This Separation Agreement dated as of August 6, 2018 (the “Separation Agreement”), which provides for a Mutual General Release and a Supplemental Release (together, the “Releases” and this Separation Agreement, the General Releases and the Supplemental Release collectively shall be referred to as the “Agreement”), is made between John F. Milligan, Ph.D. (“Milligan”) and Gilead Sciences, Inc., on its behalf and on behalf of any parent, subsidiary or affiliated corporation or related entity of Gilead Sciences, Inc., (collectively, “Gilead”).  A copy of this Agreement, including the Releases attached hereto, was delivered to Milligan on August 3, 2018.

 

1.              Milligan shall continue to serve as Gilead’s Chief Executive Officer through the earlier of (a) the day before the day on which Milligan’s successor as Chief Executive Officer is appointed and commences service in such role or (b) December 31, 2018 (the earliest such date, the “Transition Date”).  From the date hereof through the Transition Date, Milligan shall, in good faith, continue to perform the customary duties associated with the Chief Executive Officer Position, consistent with the nature and scope of his service prior to the date of this Separation Agreement.  On the Transition Date, Milligan shall resign from Gilead’s Board of Directors (the “Board”).  Milligan shall serve as a non-executive, part-time employee in the role of senior advisor to Gilead from the Transition Date through February 28, 2019 (the “Separation Date”).    From the Transition Date through the Separation Date, Milligan shall, in good faith, perform such transitional duties as are reasonably requested by the Board, subject to the limitations of Section 2(b). The Separation Date shall be Milligan’s last day to report to work as an employee, and thereafter Milligan will no longer perform any further job duties with Gilead or render services in any other capacity to Gilead.  Accordingly, on the Separation Date, Milligan shall incur a “separation from service” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code” and such section “Section 409A”).  For the avoidance of doubt, in no event may Gilead terminate Milligan’s employment prior to the Separation Date other than for Cause.  For purposes hereof, “Cause” shall mean Milligan’s: (i) performance of any act, or failure to perform any act, in bad faith and to the detriment of Gilead; (ii) dishonesty, intentional misconduct, material violation of any Gilead policy, or material breach of any agreement with Gilead (including refusal to perform services in good faith under this Separation Agreement); or (iii) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person.

 

2.              In consideration for the promises contained in this Agreement, Gilead agrees to the following:

 

(a)                                       From the date hereof through the Transition Date, Milligan shall continue to be paid his base salary at an annualized rate of $1,591,000 in accordance with Gilead’s standard payroll procedures.  On the Separation Date, Milligan shall be paid all earned but unpaid base salary and all accrued but unpaid vacation pay.  Following the Transition Date, Milligan shall be paid a lump sum cash payment equal to Milligan’s actual annual bonus for 2018, payable when such annual bonuses are paid to other executive employees of Gilead, and in all events prior to March 15, 2019.  Notwithstanding the foregoing, any compensation deferred by Milligan pursuant to one or more non-qualified deferred compensation plans of Gilead subject to Section 409A shall be paid at such time and in such form of payment as set forth in each applicable plan governing the payment of any such deferred amounts.

 

(b)                                       From the Transition Date through the Separation Date, it is anticipated and expected that Milligan shall provide services to Gilead two (2) days per week, as reasonably requested by the Board, and, accordingly, shall be paid two-fifths (2/5) of his base salary at an annualized rate of $1,591,000, in

 

 

accordance with Gilead’s standard payroll procedures.  In the event the services reasonably requested by the Board require Milligan to provide services for more than two (2) days in any week and Milligan agrees to provide such excess services, then Gilead shall pay to Milligan a per diem amount equal to one additional day’s salary for each additional day on which such requested services are provided.  In addition, Milligan shall receive a 2019 bonus in the form of a lump sum cash payment in the amount of $1,500,000, payable within 30 days following the Separation Date.  Milligan shall not be eligible to receive any other payment in respect of 2019 under Gilead’s annual bonus plan and shall not participate in any additional bonus or incentive compensation arrangements.

 

(c)                            On and as of the Separation Date:

 

(i)                                     Milligan’s outstanding stock option awards shall vest in full and, based upon Milligan’s status as a retirement-eligible employee under the terms of such awards, shall remain outstanding in accordance with the terms of the applicable Stock Option Agreements; and

 

(ii)                                  Milligan’s outstanding performance shares shall cease to be subject to the Continuous Service vesting requirement (as such term is defined in the applicable Performance Share Award Agreements), such that Milligan shall vest in one-hundred percent (100%) of the performance-qualified shares earned as certified for the applicable performance period based on the actual level at which the applicable performance metrics are attained.  The shares with respect to which Milligan vests as of the applicable certification dates shall be issued at the same time shares are issued with respect to similar awards to executive employees of Gilead.

 

(d)                                 If Milligan (i) counter-signs and delivers to Gilead the Mutual General Release, in the form set forth in Attachment A hereto (the “General Release”), within twenty-one (21) calendar days following the date hereof and does not subsequently revoke the General Release within the time period set forth therein; and (ii) signs and delivers to Gilead the Supplemental Release in the form set forth as Attachment B hereto (the “Supplemental Release”) on the Separation Date and does not subsequently revoke the Supplemental Release within the time period set forth therein, Gilead will provide Milligan with the following benefits:

 

(A)                               cash severance payments consistent with the Gilead Severance Plan, payable in the form of salary continuation payments, in an aggregate amount of $8,285,000, representing the sum of (i) twenty-four (24) months of base pay at Milligan’s rate of base pay in effect as of the date of this Separation Agreement of $132,583.33 per month, plus (ii) the amount of $5,103,000, which Milligan agrees is equal to two-times the average of the actual bonuses paid to Milligan (or otherwise earned but deferred in whole in part) under Gilead’s annual bonus plan for the three fiscal years preceding the date of this Separation Agreement.  Such aggregate severance amount shall be paid in a series of successive equal periodic installments over the twenty-four (24) months following the Separation Date, except that the first installment(s) shall be paid on the first regularly-scheduled payday for Gilead salaried employees following the Separation Date on which the Supplemental Release is effective and enforceable in accordance with applicable law following the expiration of the maximum review and revocation periods provided for therein, or as soon as administratively practicable thereafter in Gilead’s sole discretion, but in no event later than sixty (60) days following the Separation Date.  Each subsequent installment will be paid on a successive basis on each regularly-scheduled pay date for Gilead salaried employees over the remaining salary continuation period.  For the avoidance of doubt, the severance benefit payable pursuant to this Paragraph 2(d)(i) shall be deemed to be a series of separate payments, with each installment of the benefit to be treated as a separate payment consistent with Section V(b) of the Gilead Sciences, Inc. Severance Plan (the “Severance Plan”). Each such payment shall be subject to Gilead’s collection of all applicable withholding taxes. Benefits such as 401(k) plan deferrals and employer matching contributions, short and long term disability insurance, life insurance, vesting in stock options, performance shares or restricted stock unit awards, participation in the employee stock purchase plan and further accrual of vacation will all terminate on and as of the Separation Date, except as otherwise expressly provided under the applicable benefit plans or this Agreement;

 

2

 

(B)                               a lump sum cash payment intended to partially offset costs of Milligan’s health care continuation coverage as if Milligan were electing coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) for twenty-four (24) months (the “COBRA Payment”).  To be eligible to receive the COBRA Payment, Milligan must also be a participant in Gilead’s group health care plan as of the Separation Date.  The COBRA Payment amount, if applicable, will be equal to twenty-four (24) times (1) the monthly health care continuation coverage cost as if Milligan were electing coverage under COBRA for Milligan and Milligan’s eligible dependents covered as of the Separation Date minus (2) the monthly health care premium cost payable by Milligan for the same coverage as if Milligan were an active employee, and that subtotal will be less applicable withholdings and standard deductions.  For the avoidance of doubt, Milligan will not be provided the COBRA Payment if Milligan is no longer a participant in Gilead’s group health care plan as of the Separation Date.  If applicable, the COBRA Payment will be paid within thirty (30) days following the Separation Date, and will be included on an applicable W-2 Form issued by Gilead; and

 

(iii)                               outplacement services through a Gilead-contracted provider for a period of twelve (12) months following the Separation Date.

 

(e)                               Gilead shall reimburse, or directly pay on Milligan’s behalf, all legal fees incurred by Milligan in negotiating and documenting his separation and this Agreement, but not to exceed $35,000.  Such reimbursement or payment shall be made in accordance with Gilead’s standard reimbursement or payment policies and, in any event, within thirty days of the submission of reasonable documentation of such fees.

 

3.              Notwithstanding any provision in this Agreement to the contrary, no payment or benefit under this Agreement that constitutes an item of deferred compensation under Section 409A that is payable as a result of Milligan’s separation from service with Gilead will be made to Milligan prior to the earlier of (i) the first day of the seventh (7th) month following the Separation Date or (ii) the date of Milligan’s death, if and only to the extent that Gilead determines that such delayed commencement is required in order to avoid a prohibited distribution under Section 409A(a)(2) as a result of Milligan being a specified employee on the Separation Date under Section 1.409A-1(i) of the Treasury Regulations issued under Section 409A.  Upon the expiration of the applicable deferral period, if any, all payments and benefits deferred pursuant to this Paragraph 3 (whether they would have otherwise been payable in a single sum or in installments in the absence of such deferral) shall be paid or provided to Milligan in a lump sum on the first day of the seventh (7th) month after the Separation Date or, if earlier, the first day of the month immediately following the date Gilead receives proof of Milligan’s death, and any remaining payments or benefit under this Agreement shall be made in accordance with its otherwise applicable payment provisions.

 

4.              Milligan hereby acknowledges and agrees that (i) the severance benefits set forth in Paragraph 2(d) above are subject to and conditioned upon Milligan (or in the event of Milligan’s death or permanent disability, Milligan’s or Milligan’s estate’s legal representative) signing and not revoking the General Release and signing and not revoking the Supplemental Release, in each case, as set forth herein and therein, and (ii) all benefits and compensation set forth in Paragraph 2 above are subject to Milligan’s employment with Gilead not being terminated by Gilead for Cause or by Milligan for any reason, in each case, prior to the Separation Date.  For the avoidance of doubt, should Milligan voluntarily resign or Gilead terminate Milligan’s employment for Cause, in each case, prior to the Separation Date, or if Milligan materially breaches this Separation Agreement (including any of Sections 5 through 8 of this Separation Agreement) or violates the Releases either before or after the Separation Date, Gilead may

 

3

 

immediately terminate the provision of any ongoing benefits and compensation provided for under Paragraph 2.  For further avoidance of doubt, in the event Milligan dies or becomes permanently disabled (within the meaning of Section 22(e) of the Code) prior to the Separation Date, Milligan shall be deemed to have continued to be employed hereunder through the Separation Date and Milligan or Milligan’s estate, as the case may be, shall be entitled to all of the payments and benefits provided hereunder, with any release requirement being deemed satisfied by delivery thereof by an authorized representative of Milligan or Milligan’s estate.  Notwithstanding anything herein to the contrary, in the event the Transition Date occurs during a Change in Control Period (as defined in the Severance Plan), then the severance benefits payable under Paragraphs 2(d)(i) and 2(d)(ii) shall be increased to the amounts payable under Paragraphs A(1) and A(2) of Appendix A of the Severance Plan.

 

5.              Milligan agrees that, for a period of one (1) year following the Separation Date, Milligan will not solicit, directly or indirectly, any employee of Gilead to terminate or cease employment with Gilead.  Notwithstanding the foregoing, this Paragraph 5 shall not apply to any solicitation of the individual who serves as Milligan’s Executive Assistant as of the date of this Agreement.

 

6.              Milligan agrees that Milligan will not make disparaging or derogatory remarks about Gilead.  Gilead agrees that Gilead will not, and will instruct its officers and directors to not, make disparaging or derogatory remarks about Milligan.  In response to any inquiries by prospective employers, Gilead will provide verification of the dates of Milligan’s employment, job title, and salary upon Milligan’s authorization.

 

7.              Without superseding any other agreements, including the Releases, and obligations Milligan has with respect thereto, Milligan agrees not to divulge any information that might be of a confidential or proprietary nature relative to Gilead except to the extent (a) Gilead consents in writing to disclosure, (b) Milligan is required by process of law to make such disclosure and Milligan promptly notifies Gilead of receipt by Milligan of such process, or (c) such information previously shall have become publicly available other than by breach hereof on the part of Milligan.  Milligan shall not use any such information in connection with any other business or employment without the prior written consent of Gilead.   Nothing contained herein shall restrict Milligan from seeking and obtaining employment within the pharmaceutical field or any other field of employment.  Furthermore, in accordance with the Defend Trade Secrets Act of 2016, Milligan will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (x) is made (i) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (y) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

8.              Except to the extent required by law, Milligan shall keep confidential all communications made during the negotiation of this Agreement, and shall not directly or indirectly, whether orally or in writing, disclose such confidential information to any person or entity (including, but not limited to, any current or former employee, agent, partner, or contractor of Gilead).  Notwithstanding the foregoing, Milligan may disclose such information to his spouse, personal attorneys and tax advisors without violating the prohibition on disclosure of confidential information, provided that Milligan shall inform them of the confidential nature of this Agreement and the penalties for breach of its confidentiality.  Any impermissible disclosure of such information or of the information described in Paragraph 7 shall be considered a material breach of this Agreement.  Except to the extent required by law, Gilead shall also keep confidential all communications made during the negotiation of this Agreement, and shall not directly or indirectly, whether orally or in writing, disclose such confidential information to any person or entity within Gilead without the need to know of the existence or terms of this Agreement for legitimate business purposes.

 

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9.              It is the intention of Milligan and Gilead in executing the General Release and the Supplemental Release that they shall be effective as a bar to each and every claim, demand, grievance and cause of action specified in the General Release and the Supplemental Release.  In furtherance of this intention, Milligan and Gilead hereby expressly consent that this Separation Agreement and the Releases shall be given full force and effect according to each and all of their express terms and provisions (including, with respect to Milligan’s releases, those relating to unknown and unsuspected claims, demands and causes of action, if any, as well as those relating to any other claims, demands and causes of action specified therein, and elects to assume all risks for claims that at the time of execution of such Release exist in Milligan’s favor, known or unknown, that are released under the Releases).  Milligan acknowledges that Milligan may subsequent to execution of the Releases discover facts different from, or in addition to, those now known or believed to be true with respect to the claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, wages, obligations, debts, expenses, damages, judgments, orders and liabilities therein released, and agrees the Releases shall be and remain in effect in all respects as a complete and general release as to all matters released therein, notwithstanding any such different or additional facts.

 

10.       Milligan and Gilead represent and warrant that he or it has not heretofore assigned or transferred or purported to assign or transfer and will not assign or transfer to any person, firm or corporation any claim, demand, right, damage, liability, debt, account, action, cause of action, or any other matter released under the Releases.

 

11.       Gilead acknowledges that this Separation Agreement is not the result of any known or alleged claims against Milligan.  Milligan represents that he is not aware of any claims other than the claims that are released by the Releases.  Milligan acknowledges that he is familiar with the provisions of California Civil Code Section 1542, which states as follows:

 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

 

Being aware of such code section, Milligan hereby knowingly and voluntarily agrees to waive any rights Milligan may have thereunder, as well as under any other statute or common law principle of similar effect.

 

12.       Milligan and Gilead acknowledge and agree that nothing in this Separation Agreement or the Releases nor anything in the offer, execution, delivery, or acceptance thereof shall be construed as an admission by Gilead or Milligan of any kind, and this Agreement shall not be admissible as evidence in any proceeding except to enforce this Separation Agreement or the Releases.  Neither this Separation Agreement nor the Releases constitute an adjudication or finding on the merits and are not, and shall not be construed as, an admission by Gilead or Milligan of any violation of Gilead policies, procedures, state or federal laws or regulations.  Notwithstanding the foregoing, this Separation Agreement and each of the Releases may be introduced pursuant to an order protecting their confidentiality in any proceeding to enforce this Separation Agreement or either of the Releases.

 

13.       Milligan and Gilead agree that any and all disputes relating to, or in any way connected with the Agreement, as well as any and all disputes relating to, or in any way connected with, Milligan’s employment with Gilead, or with any of its former subsidiaries, divisions and affiliates and Milligan’s separation from such employment, to the extent such disputes do not otherwise relate to claims released pursuant to the Releases, shall be submitted to final and binding arbitration pursuant to the arbitration procedures set forth in the American Arbitration Association’s National Rules for the Resolution of Employment Disputes.  Gilead will bear the arbitrator’s fee and any other type of expense or cost that

 

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Milligan would not be required to bear if Milligan were free to bring the dispute(s) or claim(s) in court as well as any other expense or cost that is unique to arbitration.  Milligan and Gilead shall each bear their own attorneys’ fees incurred in connection with the arbitration.  The arbitrator will not have authority to award attorneys’ fees unless a statute or contract at issue in the dispute authorizes the award of attorneys’ fees to the prevailing party, in which case the arbitrator shall have the authority to make an award of attorneys’ fees as required or permitted by applicable law.  If there is a dispute as to whether Gilead or Milligan is the prevailing party in the arbitration, the Arbitrator will decide this issue.

 

14.       Milligan and Gilead agree that the prevailing party in any arbitration to enforce the terms of this Agreement shall be entitled to recover all costs and expenses incurred by such party in connection therewith, including reasonable attorneys’ fees.

 

15.       If Milligan timely revokes either of the Releases, the provisions of Paragraph 2(d) of this Separation Agreement shall not be effective or enforceable.  Regardless of whether Milligan revokes the Releases in the time periods specified therein, the Separation Agreement as it relates to all matters other than the Releases shall become effective on the date it is signed by Milligan.

 

16.       Nothing in this Agreement shall be construed to prohibit Milligan from filing a charge with, or participating in any investigation or proceeding conducted by, the Equal Employment Opportunity Commission and/or any federal, state or local agency.  Notwithstanding the foregoing, Milligan waives all rights to recover monetary damages in any charge, complaint or lawsuit filed by Milligan or by anyone else on Milligan’s behalf in connection with the matters encompassed in this Agreement.

 

17.       This Agreement was entered into in California and the laws of said State shall apply to it.

 

18.       If any provision of this Agreement or application thereof is held invalid, the invalidity shall not affect other provisions or applications of the Agreement which can be given effect without the invalid provision or application.  To this end, the provisions of this Agreement are severable.

 

19.       The Agreement, including the Releases, constitutes and contains the entire agreement and understanding between the parties concerning Milligan’s separation from employment with Gilead, and the other subjects addressed herein.  This Agreement supersedes and replaces all prior negotiations and agreements, proposed or otherwise, whether written or oral, concerning the subject matters of this Agreement, with the exception of any confidentiality agreement or stock option agreement(s) or other equity award agreement(s) previously signed by Milligan.  Any such confidentiality agreement or stock option or equity award agreement(s) are herein incorporated by reference and remain fully enforceable as part of this integrated document.

 

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EXECUTED this 6th day of August 2018, at Foster City, California.
    	
 
    
	
 
    	
 
    
	
/s/ John F.   Milligan
    	
 
    
	
John F.   Milligan, Ph.D.
    	
 
    
	
 
    	
 
    
	
EXECUTED this 6th day of August 2018, at Foster City,   California.
    	
 
    
	
 
    	
 
    
	
Gilead Sciences, Inc.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Katie Watson
    	
 
    
	
 
    	
Katie Watson,   Executive Vice President, Human Resources
    	
 
    

 

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PLEASE READ CAREFULLY.  THIS AGREEMENT CONTAINS A GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

MUTUAL GENERAL RELEASE OF CLAIMS

 

This Mutual General Release (this “General Release”), is made between John F. Milligan, Ph.D. (“Milligan”) and Gilead Sciences, Inc., on its behalf and on behalf of any parent, subsidiary or affiliated corporation or related entity of Gilead Sciences, Inc., (collectively, “Gilead”) pursuant to the Separation Agreement dated August 6, 2018 by and between Milligan and Gilead (the “Separation Agreement”).  Milligan and Gilead are collectively referred to herein as the “Parties.”

 

1.                                Milligan’s Release of Claims.

 

(a)                                 In consideration of the severance benefits which Milligan will receive in accordance with Paragraph 2(d) of the Separation Agreement, the sufficiency of which Milligan hereby acknowledges, Milligan hereby agrees not to sue and fully, finally, completely and generally releases, absolves and discharges Gilead, its predecessors, successors, subsidiaries, parents, related companies and business concerns, affiliates, partners, trustees, directors, officers, agents, attorneys, servants, representatives and employees, past and present, and each of them (hereinafter collectively referred to as “Gilead Releasees”) from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, grievances, arbitrations, unfair labor practice charges, wages, vacation payments, severance payments, obligations, commissions, overtime payments, debts, profit sharing or bonus claims, expenses, damages, judgments, orders and/or liabilities of whatever kind or nature in law, equity or otherwise, anywhere in the world whether known or unknown to Milligan which Milligan now owns or holds or has at any time owned or held as against the Gilead Releasees, or any of them through the date Milligan executes this General Release (“Claims”), including specifically but not exclusively and without limiting the generality of the foregoing, any and all Claims arising out of or in any way connected to Milligan’s employment with or separation of employment from Gilead including any Claims based on contract, tort, wrongful discharge, fraud, breach of fiduciary duty, attorneys’ fees and costs, discrimination in employment, any and all acts or omissions in contravention of any federal or state or foreign laws or statutes (including, but not limited to, federal or state securities laws, any deceptive trades practices act or any similar act in any other state and the Racketeer Influenced and Corrupt Organizations Act), and any right to recovery based on state or federal age, sex, pregnancy, race, color, national origin, marital status, religion, veteran status, disability, sexual orientation, medical condition, union affiliation or other anti-discrimination laws, including, without limitation, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the National Labor Relations Act, the California Fair Employment and Housing Act, and any similar act in effect in any jurisdiction applicable to Milligan or Gilead, all as amended, whether such claim be based upon an action filed by Milligan or by a governmental agency.  However, the following claims are specifically and expressly excluded from the foregoing release: (i) claims for workers’ compensation benefits, (ii) claims for unemployment compensation, (ii) claims under the Fair Labor Standards Act, (iv) health insurance benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA) or (v) claims with respect to vested benefits under a plan governed by the Employee Retirement Income Security Act (ERISA).

 

(b)                                 Milligan represents that Milligan is not aware of any claims other than the claims that are released by this instrument.  Milligan acknowledges that Milligan is familiar with the provisions of California Civil Code Section 1542, which states as follows:

 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

 

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Milligan, being aware of such code section, hereby knowingly and voluntarily agrees to waive any rights Milligan may have thereunder, as well as under any other statute or common law principle of similar effect.

 

(c)                                  The law requires that Milligan be advised and Gilead hereby advises Milligan in writing to consult with an attorney and discuss this General Release before executing it.  Milligan acknowledges Gilead has offered Milligan the opportunity to evaluate the terms of this General Release for not less than twenty-one (21) calendar days prior to Milligan’s signing of this General Release.

 

Should Milligan decide not to use the full twenty-one (21) days, then Milligan knowingly and voluntarily waives any claims that Milligan was not in fact given that period of time or did not use the entire twenty-one (21) days to consult an attorney and/or consider this General Release.  Milligan acknowledges that Milligan may revoke this General Release for up to seven (7) calendar days following Milligan’s execution of this General Release and that it shall not become effective or enforceable until such revocation period has expired.  Milligan further acknowledges and agrees that such revocation must be in writing and delivered to “Katie Watson, Executive Vice President, Human Resources, Gilead Sciences, 333 Lakeside Drive, Foster City, CA  94404” and received by Gilead not later than midnight on the seventh (7th) day following Milligan’s execution of this General Release.  If Milligan revokes this General Release, it shall not be effective or enforceable, and Milligan will not receive the monies and benefits provided under Paragraph 2(d) of the Separation Agreement.  If Milligan does not revoke this General Release in the time specified above, it shall be effective once it is signed by Milligan.

 

(d)                                 Nothing in this General Release shall be construed to prohibit Milligan from filing a charge with, or participating in any investigation or proceeding conducted by, the Equal Employment Opportunity Commission and/or any federal, state or local agency.  Notwithstanding the foregoing, Milligan waives all rights to recover monetary damages in any charge, complaint or lawsuit filed by Milligan or by anyone else on Milligan’s behalf in connection with the matters encompassed in this General Release.

 

(e)                                  This General Release was entered into in California and the laws of said State shall apply to it.

 

2.                    Gilead’s Release of Claims.

 

(a)                                 In consideration of Milligan’s agreement to provide continued services in accordance with Paragraph 1 of the Separation Agreement, and of Milligan’s releases of claims, the sufficiency of which Gilead hereby acknowledges, Gilead hereby agrees not to sue and fully, finally, completely and generally releases, absolves and discharges Milligan and his heirs, administrators, executors, assigns, agents, attorneys, servants and representatives, past and present, and each of them (hereinafter collectively referred to as “Milligan Releasees”) from any and all Claims actually known by any other executive officers or members of the Board of Directors of Gilead, including specifically but not exclusively and without limiting the generality of the foregoing, any and all such Claims which Gilead now owns or holds or has at any time owned or held as against the Milligan Releasees, or any of them arising out of or in any way connected to Milligan’s employment with or services to Gilead.

 

(b)                                 Gilead represents that as of the date hereof Gilead is not aware of any claims other than the claims that are released by this instrument.

 

(c)                                  This General Release was entered into in California by a representative with authority to bind Gilead, and the laws of the State of California shall apply to it.

 

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3.                                      All Other Terms and Conditions.

 

Upon its execution and effectiveness, this General Release shall constitute a part of the Separation Agreement entered into by and between Gilead and Milligan, which is referenced and incorporated in full herein.  Except as otherwise set forth in this General Release, this General Release shall be governed by the terms and conditions of the Separation Agreement.

 

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

 

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The Parties have read and understood the foregoing General Release, have been advised to and have had the opportunity to discuss it with anyone the Parties desire, including an attorney of their own choice, and accept and agree to its terms, acknowledge receipt of a copy of the same and the sufficiency of the monies and benefits described above, and hereby execute this General Release voluntarily and with full understanding of its consequences.

 

	
EXECUTED this 6th day of August 2018, at Foster City, California.
    	
 
    
	
 
    	
 
    
	
/s/ John F.   Milligan
    	
 
    
	
John F.   Milligan, Ph.D.
    	
 
    
	
 
    	
 
    
	
EXECUTED this 6th day of August 2018, at Foster City,   California.
    	
 
    
	
 
    	
 
    
	
Gilead   Sciences, Inc.
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Katie Watson
    	
 
    
	
 
    	
Katie Watson
    	
 
    
	
 
    	
Executive Vice   President, Human Resources
    	
 
    

 

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PLEASE READ CAREFULLY.  THIS AGREEMENT CONTAINS A GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

SUPPLEMENTAL RELEASE OF CLAIMS

 

This Supplemental Release (this “Supplemental Release”), is made between John F. Milligan, Ph.D. (“Milligan”) and Gilead Sciences, Inc., on its behalf and on behalf of any parent, subsidiary or affiliated corporation or related entity of Gilead Sciences, Inc., (collectively, “Gilead”) pursuant to the Separation Agreement dated August 6, 2018 by and between Milligan and Gilead (the “Separation Agreement”).

 

1.              Milligan’s Release of Claims.

 

(a)                                 In consideration of the severance benefits which Milligan will receive in accordance with Paragraph 2(d) of the Separation Agreement, the sufficiency of which Milligan hereby acknowledges, Milligan hereby agrees not to sue and fully, finally, completely and generally releases, absolves and discharges Gilead, its predecessors, successors, subsidiaries, parents, related companies and business concerns, affiliates, partners, trustees, directors, officers, agents, attorneys, servants, representatives and employees, past and present, and each of them (hereinafter collectively referred to as “Gilead Releasees”) from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, grievances, arbitrations, unfair labor practice charges, wages, vacation payments, severance payments, obligations, commissions, overtime payments, debts, profit sharing or bonus claims, expenses, damages, judgments, orders and/or liabilities of whatever kind or nature in law, equity or otherwise, anywhere in the world whether known or unknown to Milligan which Milligan now owns or holds or has at any time owned or held as against Gilead Releasees, or any of them through the date Milligan executes this Supplemental Release (“Claims”), including specifically but not exclusively and without limiting the generality of the foregoing, any and all Claims arising out of or in any way connected to Milligan’s employment with or separation of employment from Gilead including any Claims based on contract, tort, wrongful discharge, fraud, breach of fiduciary duty, attorneys’ fees and costs, discrimination in employment, any and all acts or omissions in contravention of any federal or state or foreign laws or statutes (including, but not limited to, federal or state securities laws, any deceptive trades practices act or any similar act in any other state and the Racketeer Influenced and Corrupt Organizations Act), and any right to recovery based on state or federal age, sex, pregnancy, race, color, national origin, marital status, religion, veteran status, disability, sexual orientation, medical condition, union affiliation or other anti-discrimination laws, including, without limitation, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the National Labor Relations Act, the California Fair Employment and Housing Act, and any similar act in effect in any jurisdiction applicable to Milligan or Gilead, all as amended, whether such claim be based upon an action filed by Milligan or by a governmental agency.  However, the following claims are specifically and expressly excluded from the foregoing release: (i) claims for workers’ compensation benefits, (ii) claims for unemployment compensation, (ii) claims under the Fair Labor Standards Act, (iv) health insurance benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA) or (v) claims with respect to vested benefits under a plan governed by the Employee Retirement Income Security Act (ERISA).

 

(b)                                 Milligan represents that Milligan is not aware of any claims other than the claims that are released by this instrument.  Milligan acknowledges that Milligan is familiar with the provisions of California Civil Code Section 1542, which states as follows:

 

1

 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

 

Milligan, being aware of such code section, hereby knowingly and voluntarily agrees to waive any rights Milligan may have thereunder, as well as under any other statute or common law principle of similar effect.

 

(c)                                  The law requires that Milligan be advised and Gilead hereby advises Milligan in writing to consult with an attorney and discuss this Supplemental Release before executing it.  Milligan acknowledges Gilead has offered Milligan the opportunity to evaluate the terms of this Supplemental Release for not less than twenty-one (21) calendar days prior to Milligan’s signing of this Supplemental Release.

 

Should Milligan decide not to use the full twenty-one (21) days, then Milligan knowingly and voluntarily waives any claims that Milligan was not in fact given that period of time or did not use the entire twenty-one (21) days to consult an attorney and/or consider this Supplemental Release.  Milligan acknowledges that Milligan may revoke this Supplemental Release for up to seven (7) calendar days following Milligan’s execution of this Supplemental Release and that it shall not become effective or enforceable until such revocation period has expired.  Milligan further acknowledges and agrees that such revocation must be in writing and delivered to “Katie Watson, Executive Vice President, Human Resources, Gilead Sciences, 333 Lakeside Drive, Foster City, CA  94404” and received by Gilead not later than midnight on the seventh (7th) day following Milligan’s execution of this Supplemental Release.  If Milligan revokes this Supplemental Release, it shall not be effective or enforceable, and Milligan will not receive the monies and benefits provided under Paragraph 2(d) of the Separation Agreement.  If Milligan does not revoke this Supplemental Release in the time specified above, it shall be effective once it is signed by Milligan.

 

(d)                                 Nothing in this Supplemental Release shall be construed to prohibit Milligan from filing a charge with, or participating in any investigation or proceeding conducted by, the Equal Employment Opportunity Commission and/or any federal, state or local agency.  Notwithstanding the foregoing, Milligan waives all rights to recover monetary damages in any charge, complaint or lawsuit filed by Milligan or by anyone else on Milligan’s behalf in connection with the matters encompassed in this Supplemental Release.

 

(e)                                  This Supplemental Release was entered into in California and the laws of said State shall apply to it.

 

2.                                      All Other Terms and Conditions.

 

Upon its execution and effectiveness, this Supplemental Release shall constitute a part of the Separation Agreement entered into by and between Gilead and Milligan, which is referenced and incorporated in full herein.  Except as otherwise set forth in this Supplemental Release, this Supplemental Release shall be governed by the terms and conditions of the Separation Agreement.

 

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

 

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I have read and understood the foregoing Supplemental Release, have been advised to and have had the opportunity to discuss it with anyone I desire, including an attorney of my own choice, and I accept and agree to its terms, acknowledge receipt of a copy of the same and the sufficiency of the monies and benefits described above, and hereby execute this Supplemental Release voluntarily and with full understanding of its consequences.

 

EXECUTED this             day of            , 2019, at                 .

 

	
 
    	
 
    
	
John F.   Milligan, Ph.D.
    	
 
    
	
 
    	
 
    
	
EXECUTED this            day of               2019, at   Foster City, California.
    	
 
    
	
 
    	
 
    
	
Gilead   Sciences, Inc.
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Katie Watson
    	
 
    
	
 
    	
Executive Vice   President, Human Resources
    	
 
    

 

3

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