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Exhibit 10.37  

 
 

CPR SELECT    
    
    THE CORPORATEPLAN FOR
  RETIREMENT SELECT PLAN
  
    ADOPTION AGREEMENT    
  

IMPORTANT NOTE  

This document is not an IRS approved Prototype Plan. An Adopting Employer may not rely solely on this Plan to ensure that the Plan is "unfunded and maintained primarily for the
purpose of providing deferred compensation to a select group of management or highly compensated employees" and exempt from Parts 2 through 4 of Title I of the Employee Retirement Income Security Act
of 1974 with respect to the Employer's particular situation. Fidelity Management Trust Company, its affiliates and employees may not provide you with legal advice in connection with the execution of
this document. This document should be reviewed by your attorney and/or accountant prior to execution.

 

	1.	 	ADOPTION AGREEMENT
	

 	
 	
1.1	
 	

PLAN INFORMATION.
	

 	
 	

 	
 	
(a)	
 	
Name of Plan:
	

 	
 	

 	
 	

 	
 	

This is the Gilead Sciences, Inc. Deferred Compensation Plan (the "Plan").
	

 	
 	

 	
 	
(b)	
 	
Name of Plan Administrator, if not the Employer:
	

 	
 	

 	
 	

 	
 	

	

 	
 	

 	
 	

 	
 	

Address:

	

 	
 	

 	
 	

 	
 	

Phone Number:

	

 	
 	

 	
 	

The Plan Administrator is the agent for service of legal process for the Plan.
	

 	
 	

 	
 	
(c)	
 	
Three Digit Plan Number: N/A
	

 	
 	

 	
 	
(d)	
 	
Plan Year End (month/day): December 31
	

 	
 	

 	
 	
(e)	
 	
Plan Status (check one):

	 	 	 	 	 	 	(1)	 	ý	 	Effective Date of new Plan: January 1, 2002
	

 	
 	

 	
 	

 	
 	
(2)	
 	

o	
 	

Amendment Effective Date:

	

 	
 	

 	
 	

 	
 	

The original effective date of the Plan:

	

 	
 	
1.2	
 	

EMPLOYER
	

 	
 	

 	
 	
(a)	
 	
The Employer is: Gilead Sciences, Inc.
	

 	
 	

 	
 	

 	
 	

 	
 	

Address:	
 	

333 Lakeside Drive

Foster City, CA 94404
	

 	
 	

 	
 	

 	
 	

Contact's Name: Marsha Roberts
	

 	
 	

 	
 	

 	
 	

Telephone Number: 1 (800) GILEAD 5
	

 	
 	

 	
 	

 	
 	
(1)	
 	

Employer's Tax Identification Number: 94-3047598
	

 	
 	

 	
 	

 	
 	
(2)	
 	

Business form of Employer (check one):
	

 	
 	

 	
 	

 	
 	

 	
 	
(A)	
 	

ý  Corporation
	

 	
 	

 	
 	

 	
 	

 	
 	
(B)	
 	

o  Sole proprietor or partnership
	

 	
 	

 	
 	

 	
 	

 	
 	
(C)	
 	

o  Subchapter S Corporation
	

 	
 	

 	
 	

 	
 	
(3)	
 	

Employer's fiscal year
end:                                        
                    
	

 	
 	

 	
 	
(b)	
 	
The term "Employer" includes the following Related Employer(s) (as defined in Section 2.01(a)(21)):
	

 	
 	

 	
 	

 	
 	

 	
 	

None

	

 	
 	

 	
 	

 	
 	

 	
 	

	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

1

 

	

 	
 	

 	
 	

 	
 	

 	
 	

	

 	
 	
1.3	
 	
COVERAGE.
	

 	
 	

 	
 	
(a)	
 	
Only those Employees listed in Attachment A will be eligible to participate in the Plan.
	

 	
 	

 	
 	
(b)	
 	
The Entry Date(s) shall be (check one):
	

 	
 	

 	
 	

 	
 	
(1)	
 	

ý	
 	

the first day of each Plan Year.
	

 	
 	

 	
 	

 	
 	
(2)	
 	

o	
 	

the first day of each Plan Year and the date six months later.
	

 	
 	

 	
 	

 	
 	
(3)	
 	

o	
 	

the first day of each Plan Year and the first day of the fourth, seventh and tenth months.
	

 	
 	

 	
 	

 	
 	
(4)	
 	

o	
 	

the first day of each month.
	

 	
 	
1.4	
 	
COMPENSATION.
	

 	
 	

 	
 	
For purposes of determining Contributions under the Plan, Compensation shall be as defined in Section 2.01(a)(6), but excluding (check the appropriate box(es)):
	

 	
 	

 	
 	
(a)	
 	

o	
 	

Overtime Pay.
	

 	
 	

 	
 	
(b)	
 	

o	
 	

Bonuses.
	

 	
 	

 	
 	
(c)	
 	

o	
 	

Commissions.
	

 	
 	

 	
 	
(d)	
 	

o	
 	

The value of a qualified or a non-qualified stock option granted to an Employee by the Employer to the extent such value is includable in the Employee's taxable income.
	

 	
 	

 	
 	
(e)	
 	

o	
 	

No exclusions.

	 	 	1.5	 	CONTRIBUTIONS.
	

 	
 	

 	
 	
(a)	
 	
Deferral Contributions. The Employer shall make a Deferral Contribution in accordance with Section 4.01 on behalf of each Participant who has an executed salary reduction agreement in effect with the Employer for
the Plan Year (or portion of the Plan Year) in question, not to exceed      % [see Addendum] of Compensation for that Plan Year.
	

 	
 	

 	
 	
(b)	
 	

o	
 	
Matching Contributions
	

 	
 	

 	
 	

 	
 	
(1)	
 	
The Employer shall make a Matching Contribution on behalf of each Participant in an amount equal to the following percentage of a Participant's Deferral Contributions during the Plan Year (check one)
:
	

 	
 	

 	
 	

 	
 	

 	
 	
(A)	
 	

o	
 	

50%
	

 	
 	

 	
 	

 	
 	

 	
 	
(B)	
 	

o	
 	

100%
	

 	
 	

 	
 	

 	
 	

 	
 	
(C)	
 	

o	
 	

      %
	

 	
 	

 	
 	

 	
 	

 	
 	
(D)	
 	

o	
 	

(Tiered Match)      % of the first      % of the Participant's Compensation contributed to the Plan,
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

      % of the next      % of the Participant's Compensation contributed to the Plan,
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

      % of the next      % of the Participant's Compensation contributed to the Plan.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

2

 

	

 	
 	

 	
 	

 	
 	

 	
 	
(E)	
 	

o	
 	

The percentage declared for the year, if any, by a Board of Directors' resolution.
	

 	
 	

 	
 	

 	
 	

 	
 	
(F)	
 	

o	
 	

Other:

	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

	

 	
 	

 	
 	

 	
 	
(2)	
 	

o	
 	
Matching Contribution Limits (check the appropriate box(es)):
	

 	
 	

 	
 	

 	
 	

 	
 	
(A)	
 	

o	
 	

Deferral Contributions in excess of      % of the Participant's Compensation for the period in question shall not be considered for Matching Contributions.
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

Note:	
 	

If the Employer elects a percentage limit in (A) above and requests the Trustee to account separately for matched and unmatched Deferral Contributions, the Matching Contributions allocated to each Participant must be computed, and the percentage
limit applied, based upon each period.
	

 	
 	

 	
 	

 	
 	

 	
 	
(B)	
 	

o	
 	

Matching Contributions for each Participant for each Plan Year shall be limited to $                  .
	

 	
 	

 	
 	

 	
 	
(3)	
 	
Eligibility Requirement(s) for Matching Contributions
	

 	
 	

 	
 	

 	
 	

 	
 	

A Participant who makes Deferral Contributions during the Plan Year under Section 1.05(a) shall be entitled to Matching Contributions for that Plan Year if the Participant satisfies the following requirement(s) (Check the appropriate box(es). Options
(B) and (C) may not be elected together):
	

 	
 	

 	
 	

 	
 	

 	
 	
(A)	
 	

o	
 	

Is employed by the Employer on the last day of the Plan Year.
	

 	
 	

 	
 	

 	
 	

 	
 	
(B)	
 	

o	
 	

Earns at least 500 Hours of Service during the Plan Year.
	

 	
 	

 	
 	

 	
 	

 	
 	
(C)	
 	

o	
 	

Earns at least 1,000 Hours of Service during the Plan Year.
	

 	
 	

 	
 	

 	
 	

 	
 	
(D)	
 	

o	
 	

No requirements.
	

 	
 	

 	
 	

 	
 	

 	
 	

Note:	
 	

If option (A), (B) or (C) above is selected then Matching Contributions can only be made by the Employer after the Plan Year ends. Any Matching Contribution made before Plan Year end shall not be subject
to the eligibility requirements of this Section 1.05(b)(3)).
	

 	
 	
1.6	
 	
DISTRIBUTION DATES. See Addendum.
	

 	
 	

 	
 	

A Participant may elect to receive a distribution or commence distributions from his Account pursuant to Section 8.02 upon the following date(s) (check the appropriate box(es). If Option (c) is elected, then options (a) and (b) may not be
elected):
	

 	
 	

 	
 	
(a)	
 	

o	
 	
Attainment of Normal Retirement Age. Normal Retirement Age under the Plan is (check one):
	

 	
 	

 	
 	

 	
 	

(1)	
 	

o	
 	

age 65.
	

 	
 	

 	
 	

 	
 	

(2)	
 	

o	
 	

age            (specify from 55 through 64).
	

 	
 	

 	
 	

 	
 	

(3)	
 	

o	
 	

later of the age            (can not exceed 65) or the fifth anniversary of the Participant's Commencement Date.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

3

 

	

 	
 	

 	
 	
(b)	
 	

o	
 	
Attainment of Early Retirement Age. Early Retirement Age is the first day of the month after the Participant attains age            (specify 55 or
greater) and completes            Years of Service for Vesting.
	

 	
 	

 	
 	
(c)	
 	

o	
 	
Termination of employment with the Employer.
	

 	
 	
1.7	
 	
VESTING SCHEDULE.
	

 	
 	

 	
 	
(a)	
 	
The Participant's vested percentage in Matching Contributions elected in Section 1.05(b) shall be based upon the schedule(s) selected below.
	

 	
 	

 	
 	

 	
 	
(1)	
 	

ý	
 	

N/A—No Matching Contributions
	

 	
 	

 	
 	

 	
 	
(2)	
 	

o	
 	

100% Vesting immediately
	

 	
 	

 	
 	

 	
 	
(3)	
 	

o	
 	

3 year cliff (see C below)
	

 	
 	

 	
 	

 	
 	
(4)	
 	

o	
 	

5 year cliff (see D below)
	

 	
 	

 	
 	

 	
 	
(5)	
 	

o	
 	

6 year graduated (see E below)
	

 	
 	

 	
 	

 	
 	
(6)	
 	

o	
 	

7 year graduated (see F below)
	

 	
 	

 	
 	

 	
 	
(7)	
 	

o	
 	

G below
	

 	
 	

 	
 	

 	
 	
(8)	
 	

o	
 	

Other (Attachment "B")

	 
	 	Vesting Schedule
	 
	Years of

Service for

Vesting
	 
	 	C
	 	D
	 	E
	 	F
	 	G
	 
	0	 	    0	%	    0	%	    0	%	    0	%	—	 
	1	 	    0	%	    0	%	    0	%	    0	%	—	 
	2	 	    0	%	    0	%	  20	%	    0	%	—	 
	3	 	100	%	    0	%	  40	%	  20	%	—	 
	4	 	100	%	    0	%	  60	%	  40	%	—	 
	5	 	100	%	100	%	  80	%	  60	%	—	 
	6	 	100	%	100	%	100	%	  80	%	—	 
	7	 	100	%	100	%	100	%	100	%	100	%

	 	 	 	 	(b)	 	o	 	Years of Service for Vesting shall exclude (check one):
	

 	
 	

 	
 	

 	
 	
(1)	
 	

o	
 	

for new plans, service prior to the Effective Date as defined in Section 1.01(e)(1).
	

 	
 	

 	
 	

 	
 	
(2)	
 	

o	
 	

for existing plans converting from another plan document, service prior to the original Effective Date as defined in Section 1.01(e)(2).
	

 	
 	

 	
 	
(c)	
 	

o	
 	

A Participant will forfeit his Matching Contributions upon the occurrence of the following event (s):
	

 	
 	

 	
 	

 	
 	

 	
 	

	

 	
 	

 	
 	

 	
 	

 	
 	

	

 	
 	

 	
 	

 	
 	

 	
 	

	

 	
 	

 	
 	
(d)	
 	

A Participant will be 100% vested in his Matching Contributions upon (check the appropriate box(es), if any):
	

 	
 	

 	
 	

 	
 	
(1)	
 	

o	
 	

Normal Retirement Age (as defined in Section 1.06(a)).
	

 	
 	

 	
 	

 	
 	
(2)	
 	

o	
 	

Early Retirement Age (as defined in Section 1.06(b)).
	

 	
 	

 	
 	

 	
 	
(3)	
 	

o	
 	

Death.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

4

 

	

 	
 	
1.8	
 	
PREDECESSOR EMPLOYER SERVICE.
	

 	
 	

 	
 	

o	
 	
Service for purposes of vesting in Section 1.07(a) shall include service with the following employer(s):
	

 	
 	

 	
 	
(a)

	

 	
 	

 	
 	
(b)

	

 	
 	

 	
 	
(c)

	

 	
 	

 	
 	
(d)

	

 	
 	
1.9	
 	
HARDSHIP WITHDRAWALS.
	

 	
 	

 	
 	
Participant withdrawals for hardship prior to termination of employment (check one):
	

 	
 	

 	
 	
(a)	
 	

ý	
 	
will be allowed in accordance with Section 7.07, subject to a $1,000 minimum amount. (Must be at least $1,000.)
	

 	
 	

 	
 	
(b)	
 	

o	
 	
will not be allowed.
	

 	
 	
1.10	
 	
DISTRIBUTIONS.
	

 	
 	

 	
 	
Subject to Articles 7 and 8, distributions under the Plan will be paid (check the appropriate box(es)):
	

 	
 	

 	
 	
(a)	
 	

o	
 	
as a lump sum.
	

 	
 	

 	
 	
(b)	
 	

ý	
 	
under a systematic withdrawal plan (installments) not to exceed 10 years.
	

 	
 	
1.11	
 	
INVESTMENT DECISIONS.
	

 	
 	

 	
 	
(a)	
 	
Investment Directions
	

 	
 	

 	
 	

 	
 	

Investments in which the Accounts of Participants shall be treated as invested and reinvested shall be directed (check one):
	

 	
 	

 	
 	

 	
 	
(1)	
 	

o	
 	

by the Employer among the options listed in (b) below.
	

 	
 	

 	
 	

 	
 	
(2)	
 	

o	
 	

by each Participant among the options listed in (b) below.
	

 	
 	

 	
 	

 	
 	
(3)	
 	

o	
 	

by each Participant with respect to Deferral Contributions and by the Employer with respect to Employer Matching Contributions. The Employer must direct the Employer Matching Contributions among the same investment options made available for
Participant directed sources listed in (b) below.
	
 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

5

 

	

 	
 	

 	
 	
(b)	
 	
Plan Investment Options
	

 	
 	

 	
 	

 	
 	

Participant Accounts will be treated as invested among the Fidelity Funds listed below pursuant to Participant and/or Employer directions.

	Fund Name
 
	 	Fund Number

	(1)	 	Fidelity Managed Income Portfolio	 	

	(2)	 	Fidelity Intermediate Bond Fund	 	

	(3)	 	Fidelity Equity-Income Fund	 	

	(4)	 	Fidelity Growth & Income Portfolio	 	

	(5)	 	Spartan U.S. Equity Index Fund	 	

	(6)	 	Fidelity Growth Company Fund	 	

	(7)	 	Fidelity Independence Fund	 	

	(8)	 	Fidelity Low Priced Stock Fund	 	

	(9)	 	Janus Twenty Fund	 	

	(10)	 	Fidelity Diversified Investment Fund	 	

	(11)	 	Fidelity Freedom Income Fund	 	

	(12)	 	Fidelity Freedom 2000 Fund	 	

	(13)	 	Fidelity Freedom 2010 Fund	 	

	(14)	 	Fidelity Freedom 2020 Fund	 	

	(15)	 	Fidelity Freedom 2030 Fund	 	

	(16)	 	Fidelity Freedom 2040 Fund	 	

	Note:	 	An additional annual recordkeeping fee will be charged for each fund in excess of five funds.
	Note:	 	The method and frequency for change of investments will be determined under the rules applicable to the selected funds. Information will be provided regarding expenses, if any, for changes in investment
options.

	 	 	1.12	 	RELIANCE ON PLAN.
	

 	
 	

 	
 	

An adopting Employer may not rely solely on this Plan to ensure that the Plan is "unfunded and maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees" and exempt from
Parts 2 through 4 of Title I of the Employee Retirement Income Security Act of 1974 with respect to the Employer's particular situation. This Agreement must be reviewed by your attorney and/or accountant before it is executed.
	

 	
 	

 	
 	

This Adoption Agreement may be used only in conjunction with the CORPORATEplan for Retirement Select Basic Plan Document.

6

 
 
 

EXECUTION PAGE
  (Fidelity's Copy)    
  

        IN WITNESS WHEREOF, the Employer has caused this Adoption Agreement to be executed this 7th day of September, 2001. 

	 	 	Employer	 	Gilead Sciences, Inc

	

 	
 	

By	
 	

/s/ Marsha Roberts

	

 	
 	

Title	
 	

V.P. Human Resources

	

 	

 	

Employer	

 	

Gilead Sciences, Inc

	

 	
 	

By	
 	

/s/ Gregg Alton

	

 	
 	

Title	
 	

V.P. & General Counsel

7

 
 
 

EXECUTION PAGE
  (Employer's Copy)    
  

        IN WITNESS WHEREOF, the Employer has caused this Adoption Agreement to be executed this 7th day of September, 2001. 

	 	 	Employer	 	Gilead Sciences, Inc

	

 	
 	

By	
 	

/s/ Marsha Roberts

	

 	
 	

Title	
 	

V.P. Human Resources

	

 	

 	

Employer	

 	

Gilead Sciences, Inc

	

 	
 	

By	
 	

/s/ Gregg Alton

	

 	
 	

Title	
 	

V.P. & General Counsel

	

 	

 	

Employer	

 	

	

 	

 	

By	

 	

	

 	

 	

Title	

 	

	

 	

 	

Date	

 	

	Note:	 	The Employer must revise Attachment A to add employees as they become eligible or delete employees who are no longer eligible.

8

 
 

ATTACHMENT A    
  

Pursuant to Section 1.03(a), the following are the Employees who are eligible to participate in the Plan:

Gilead Employees and Non-Employee Directors

Gilead VP's & Above:  

	John Martin	 	CEO	 	President & CEO
	Mark Perry	 	EVP	 	Operations
	Norbert Bischofberger	 	EVP	 	Research & Development
	Sharon Surrey-Barbari	 	CFO	 	Chief Financial Officer
	Bill Lee	 	SVP	 	Research & Product Development
	Mike Inouye	 	SVP	 	Sales & Marketing
	Howard Jaffe	 	VP	 	Clinical Research
	Alan Taylor	 	VP	 	Regulatory Affairs
	Carol Brosgart	 	VP	 	Clinical Research
	Bruno Delagneau	 	VP	 	Global Marketing
	Choung Kim	 	VP	 	Research
	Ernie Prisbe	 	VP	 	Process Development
	Gregg Alton	 	VP	 	General Counsel
	Jay Toole	 	VP	 	Clinical Research
	Jim Rooney	 	VP	 	Clinical Research
	John Milligan	 	VP	 	Corporate Dev.
	Marsha Roberts	 	VP	 	Human Resources
	Max Hensley	 	VP	 	Intellectual Property
	Mick Hitchcock	 	VP	 	Research
	Michael Wulfsohn	 	VP	 	Biostatistics & Data Mgmt
	Taiyin Yang	 	VP	 	Research
	Crispin Eley	 	SVP	 	Pharmaceutical Operations
	Tony Caracciolo	 	VP	 	Manufacturing

Board Members:  

Paul
Berg

George P. Shultz

Etienne F. Davignon

James M. Denny

Gordon E. Moore

Cordell Hull 

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EXECUTION PAGE (Fidelity's Copy)

EXECUTION PAGE (Employer's Copy)

ATTACHMENT AQuickLinks
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Exhibit 10.38  

 
 

ADDENDUM TO THE    
    GILEAD SCIENCES, INC.    
    DEFERRED COMPENSATION PLAN    
    JULY 19, 2001    
  

        This Addendum to the Gilead Sciences, Inc. Deferred Compensation Plan (the "Plan") and its Adoption Agreement (the "Adoption Agreement") is effective
concurrent with the initial adoption of the Plan by the Board of Directs of Gilead Sciences, Inc. and is intended to set forth certain provisions of the Plan and the Adoption Agreement. The
Addendum has been prepared as a separate document at the request and for the convenience of the Plan's recordkeeper and not for any legal or regulatory reason. 

Adoption Agreement  

        1.    Section 1.3(a)
of the Adoption Agreement is deleted in its entirety and replaced with the following: 

        (a)    Only those Employees and Non-Employee Directors listed in Attachment A will be
eligible to participate in the Plan.    

        2.    Section 1.4
of the Adoption Agreement is amended by adding the following new paragraphs at the end of the section: 

        For purposes of determining Contributions under the Plan, Annual Retainer shall be defined in Section 2.1(a)(28).

        For purposes of determining Contributions under the Plan, Bonus shall be defined in Section 2.1(a)(29).

        For purposes of determining Contributions under the Plan, Salary shall be defined in Section 2.1(a)(31).

        3.    Section 1.5(a)
of the Adoption Agreement is deleted in its entirety and replaced with the following: 

        (a)    Deferral Contributions.    The Employer
shall make a Deferral Contribution in accordance with Section 4.1 on behalf of each Participant who has an executed Salary/Bonus/Annual Retainer reduction agreement in effect with the Employer
for the Plan Year (or portion of the Plan Year) in question, not to exceed:

	(1)
	70% of Salary for that Plan Year; and/or

	(2)
	100% of Bonus for that Plan Year; and/or

	(3)
	100% of the Annual Retainer for that Plan Year.

        4.    Section 1.6
of the Adoption Agreement is deleted in its entirety and replaced with the following: 

        (a)    Normal Distribution.    A Participant
may elect to receive a distribution or commence distributions from his Account pursuant to Section 8.2 upon attainment of one of the following ages and may further elect to receive a
distribution from his Account pursuant to Section 8.2 either (i) five (5) years following the date of the Participant's termination of service with the Employer, (ii) two  

1

 

 (2) years following the date of such termination or (iii) immediately following the date of such termination:

75

70

65

60

55

50

        (b)    Early Distribution.    Notwithstanding
a Participant's election to receive a distribution as set forth in Section 1.6(a) above, pursuant to Section 7.9 of the Plan a Participant may elect at any time to receive an Early
Distribution of all or a portion of his Account; provided, however, that a Participant will receive only 90% of the portion of his Account balance requested to be distributed, and the remaining 10%
will be forfeited permanently to the Employer; provided further, however, that if a Participant withdraws any portion of his Account balance, he will be barred from further participation in the Plan
until the first day of the Plan Year following the conclusion of a twelve (12) month period beginning on the date the early distribution occurs.

Plan Document  

        5.    The
Table of Contents is revised in accordance with this Addendum to the Gilead Sciences, Inc. Deferred Compensation Plan. 

        6.    The
Preamble of the Plan is deleted in its entirety and replaced with the following: 

        It is the intention of the Employer to establish herein an unfunded plan maintained solely for the purpose of providing deferred compensation for
non-employee members of the Board of Directors and a select group of management or highly compensated employees for purposes of Title I of ERISA.

        7.    Section 2.1(a)(6)
of the Plan is amended by replacing "402(a)(8)" with "402(e)(3)." Section 2.1(a)(6) of the Plan is further amended by adding the following
new sentence at the end of the first paragraph: 

        Notwithstanding the foregoing, Compensation shall not include employee referral awards or severance payments.

        8.    Section 2.1(a)(15)
of the Plan is deleted in its entirety and replaced with the following: 

	(15)
	[Reserved.]

        9.    Section 2.1(a)(17)
of the Plan is deleted in its entirety and replaced with the following: 

	(17)
	"Participant" means any Employee or Non-Employee Director who participates in the Plan in accordance with Article 3
hereof.

        10.  A
new Section 2.1(a)(28) of the Plan is added as follows: 

	(28)
	"Annual Retainer" means the annual retainer paid to a Non-Employee Director.

        11.  A
new Section 2.1(a)(29) of the Plan is added as follows: 

	(29)
	"Bonus" means an Employee's bonus paid pursuant to the Company's Management Bonus Plan.

        12.  A
new Section 2.1(a)(30) of the Plan is added as follows: 

	(30)
	"Non-Employee Director" means a non-employee member of the Board of Directors of the Employer.

2

 

        13.  A
new Section 2.1(a)(31) of the Plan is added as follows: 

	(31)
	"Salary" means an Employee's base salary.

        14.  A
new Section 3.4 of the Plan is added as follows: 

        3.4    Director Participation.    An eligible
Non-Employee Director (as set forth in Section 1.3(a)) will become a Participant in the Plan on the first Entry Date after which he becomes an eligible Non-Employee
Director if he has filed an election pursuant to Section 4.1. If the eligible Non-Employee Director does not file an election pursuant to Section 4.1 prior to his first Entry
Date, then the eligible Non-Employee Director will become a Participant in the Plan as of the first day of a Plan Year for which he has filed an election.

        15.  Section 4.1
of the Plan is deleted in its entirety and replaced with the following: 

        4.1    Deferral Contributions.    Each
Participant may elect to execute a Salary/Bonus/Annual Retainer reduction agreement with the Employer to reduce his Compensation or Annual Retainer by a specified percentage not exceeding the
percentage set forth in Section 1.5(a) and equal to a whole number multiple of one (1) percent. Such agreement shall become effective on the first day of the period as set forth in the
Participant's election. The election will be effective to defer Compensation or Annual Retainer relating to all services performed in the Plan Year. A new election must be made prior to each Plan Year
in order for a Participant to continue participation in the Plan for that Plan Year. A new election, other than the Participant's initial election under the Plan, will be effective as of the first day
of the following Plan Year and will apply only to Compensation or Annual Retainers payable with respect to services rendered after such date. Amounts credited to a Participant's Account prior to the
effective date of any new election will not be affected and will be paid in accordance with that prior election. The Employer shall credit an amount to the Account maintained on behalf of the
Participant corresponding to the amount of the Compensation or Annual Retainer reduction. Under no circumstances may a Salary/Bonus/Annual Retainer reduction agreement be adopted retroactively. A
Participant may not revoke a Salary/Bonus/Annual Retainer reduction agreement for a Plan Year during that year.

        16.  Section 7.1
of the Plan is deleted in its entirety and replaced with the following: 

        7.1    Distribution Election.    Each
Participant shall designate on his Salary/Bonus/Annual Retainer reduction agreement election form timing and method of the distribution of Plan benefits as provided in Article 8
hereof.

        17.  A
new Section 7.8 of the Plan is added as follows: 

        7.8    Definition of Hardship.    "Hardship"
means any severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or the Participant's dependent (as defined in Section 152(a)
of the Code), loss of the Participant's property due to casualty, or other similar extraordinary and unforeseen circumstances arising as a result of events beyond the control of the Participant. The
circumstances that will constitute an unforeseeable emergency will depend on the facts of each case, but, in any case, payment may not be made to the extent that such hardship is or may be relieved
(i) through reimbursement or compensation by insurance or otherwise; (ii) by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause
severe financial hardship; or (iii) by cessation of deferrals under the Plan. Furthermore, examples of events that would not be considered unforeseeable emergencies include the need to send a
Participant's child to college or the desire to purchase a home.

        18.  A
new Section 7.9 of the Plan is added as follows: 

        7.9    Effect of Early Distribution.    If a
Participant, pursuant to Section 1.6(d), elects to receive a distribution of all or a portion of his Account on a date prior to that established under the Plan, including the Adoption Agreement
and the Participant's election form, the amount distributed shall equal 90% of the portion of the Participant's Account balance requested to be distributed, and the remaining  

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 portion shall be treated as forfeited by the Participant; provided, however, that if a Participant withdraws any portion of his Account balance, he will be barred from further participation in the
Plan until the first day of the Plan Year following the conclusion of a twelve (12) month period beginning on the date the early distribution occurs.

        19.  Section 8.1
of the Plan is deleted in its entirety and replaced with the following: 

        8.1    Distribution of Benefits to Participants and Beneficiaries.    

	(a)
	Distributions under the Plan to a Participant or to the Beneficiary of the Participant shall be made under a systematic withdrawal plan (installment(s)) not
exceeding 10 years or, if elected by the Employer in Section 1.10 and specified in the Participant's deferral election, in a lump sum.

	(b)
	Distributions under a systematic withdrawal plan must be made in substantially equal annual, or more frequent, installments, in cash over a period certain
which does not exceed 10 years. A systematic withdrawal plan may include a plan whereby one installment is elected.

        20.  Section 8.2
of the Plan is deleted in its entirety and replaced with the following: 

        8.2    Determination of Timing and Method of
Distribution.    The Participant will elect the timing and method of distribution of Plan benefits to himself and the timing and method of
distribution to his Beneficiary. Such election will be made at the time the Participant makes a deferral election. Such election shall apply to all amounts deferred in the applicable Plan Year. A
Participant may modify the election made under this Section 8.2 by submitting a completed and executed form provided for such purpose; provided, however, that such change shall not be given any
effect unless a full calendar year passes between the date on which such election form is submitted and the date of the distribution designated on such form. If the Participant does not elect the
method of distribution to him or his Beneficiary, the method shall be a single installment payment. If the Participant does not elect the timing of distribution to him or his Beneficiary, the
Participant's account balance will be distributed upon his termination of service with the Company.

        21.  Section 9.4
of the Plan is deleted in its entirety and replaced with the following: 

        9.4    Distribution upon Termination of the
Plan.    Upon termination of the Plan, no further Deferral Contributions or Matching Contributions shall be made under the Plan. In addition,
upon termination of the Plan, the Board of Directors of the Employer may, in its sole discretion, determine whether or not Participants' Accounts maintained under the Plan will be immediately
distributed in a single lump sum or continue to be governed by the terms of the Plan until paid out in accordance with the terms of the Plan and each Participant's election under Section 7.1 of
the Plan.

        22.  A
new Section 10.8 of the Plan is added as follows: 

        10.8    Establishment of Trust.    The
Employer shall be responsible for the payment of all benefits under the Plan. At its discretion, the Employer may establish one or more grantor trusts for the purpose of providing for the payment of
benefits under the Plan; provided, however, that the establishment of such a trust shall not affect the status of the Plan as an unfunded plan. Such trust or trusts may be irrevocable, but the assets
thereof shall be subject to the claims of the Employer's creditors in the event of its bankruptcy or insolvency. Benefits paid to the Participants from any such trust shall be considered paid by the
Employer for purposes of meeting the obligations of the Employer under the Plan. Notwithstanding the establishment of a trust, the Employer reserves the right at any time and from time to time to pay
Plan benefits to Participants or their Beneficiaries in whole or in part from sources other than the Trust, in which case upon the Employer's request, the Employer shall receive a distribution from
the Trust in an amount equal to the amount paid by the Employer from sources other than the Trust to the Participant in satisfaction of its obligations under the Plan, provided that such distribution
shall not exceed the amount of Trust assets previously allocated to such Participant or Beneficiary.

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ADDENDUM TO THE GILEAD SCIENCES, INC. DEFERRED COMPENSATION PLAN JULY 19, 2001

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