Document:

Form of Employee Proprietary Information and Invention Agreement

 Exhibit 10.3 
 GILEAD SCIENCES, INC. 
 EMPLOYEE
CONFIDENTIAL INFORMATION AND INVENTIONS AGREEMENT 
 This Employee
Confidential Information and Inventions Agreement (the “Agreement”) is effective as of [date] (the “Effective Date”) between me and Gilead Sciences, Inc., a Delaware corporation (together with its
affiliates and subsidiaries, “Gilead”). As a material part of the consideration for my employment or continued employment by Gilead and as a condition of my employment or continued employment by Gilead and the compensation and
benefits that I am paid by Gilead, I agree as follows: 
 1. GENERAL. I understand that during the term of my employment I will have
access to confidential and proprietary information of Gilead, including inventions that I may conceive, make or reduce to practice alone or with other Gilead employees and consultants in the course of my work as well as confidential and proprietary
information of third party business partners of Gilead. I understand that my employment creates a relationship of confidence and trust with Gilead and I agree to comply with all the terms of this Agreement. 
 2. CONFIDENTIAL INFORMATION.  
 (a) Definition. Confidential and proprietary information (“Confidential Information”) means any non-public information of Gilead in any form. I understand that all of the following types of non-public
information of Gilead on the list below are Confidential Information and that such list is provided to help me better understand what constitutes Confidential Information and is not a comprehensive list of all types of Confidential Information:

  

	 	(i)	Inventions, including without limitation Gilead Inventions (as the term is defined in Section 3(c)); 

  

	 	(ii)	business strategies and projections; 

  

	 	(iii)	research, development or commercialization plans; 

	 	(iv)	patent strategies or other information regarding Gilead’s marketed products, products or services in development, and related market information; 

  

	 	(v)	customer lists, including without limitation information about existing and potential customers of Gilead; 

  

	 	(vi)	formulas, analyses, designs, databases or other compilations of technical information, data or statistics, including without limitation data related to Gilead’s clinical and
preclinical studies and clinical and preclinical studies of Gilead’s partners and grantees; 

  

	 	(vii)	methods or processes to identify, validate, to produce or purify biological or chemical materials, organisms, proteins, genes, gene sequences, chemical structures, expression
vectors and data, targets, product specifications and compound structures; 

  

	 	(viii)	information relating to the regulatory status, approval or pricing of Gilead’s investigational new drugs or marketed products, including without limitation communications and
correspondence with regulatory agencies; 

	 	(ix)	financial information of Gilead, including without limitation identities of its third party partners, financial terms of wholesales, distributors and collaboration arrangements,
forecasts, tax planning, budgets, financial analyses, pricing strategies, financial audit information, employee compensation and benefits and costs of third-party services and goods; 

  

	 	(x)	information relating to Gilead’s employees, contractors or other service providers; 

  

	 	(xi)	information relating to the facilities, infrastructure, machinery, equipment, computer and telephone systems, real property or other assets of Gilead; and 

 

	 	(xii)	information relating to Gilead’s manufacturing processes, supply chain, distribution network, and sales channels. 

 (b) Use of Confidential Information. I will hold all Confidential Information in the strictest confidence, will not disclose to any person who is
not a Gilead employee, consultant, attorney or accountant, and except with the written permission of a duly authorized officer of Gilead, will not use any Confidential Information for the benefit of anyone (including myself) other than Gilead. I
will notify an officer of Gilead immediately if I become aware of any unauthorized use or disclosure of Confidential Information. I assign to Gilead any and all rights I may have or acquire in Confidential Information and recognize that all
Confidential Information and all tangible materials containing Confidential Information are and shall remain the sole property of Gilead. 
 (c) Former Employer Information. I represent and warrant that my employment by Gilead does not and will not breach any agreement with any of my former employers, including any non-compete agreement or any agreement or duty to keep in
confidence or refrain from using information acquired by me prior to my employment by Gilead. I will not improperly use, disclose or bring into Gilead’s facilities or store on any Gilead computer any non-public, confidential or proprietary
information or trade secrets of any former employer or any other person or entity to whom I have an obligation to keep in confidence such information (“Former Employer Information”) without the express prior written consent of both
such former employer, person or entity and Gilead. 
 (d) Third Party Information. I understand that in the course of business from
time to time Gilead receives confidential or proprietary information from third parties (“Third-Party Information”) and that such Third-Party Information may be subject to an agreement by Gilead to maintain the confidentiality of
such Third-Party Information and to use it only for certain limited purposes. I will hold Third-Party Information in the strictest confidence, and will not disclose or use Third-Party Information except as expressly permitted by the agreement
between Gilead and such third party. If required by the terms of the agreement between Gilead and a third party, I will limit internal disclosure of Third-Party Information to other Gilead personnel who need to know such information to perform
his/her duties at Gilead and who are aware of Gilead’s agreement with such third party. I will notify an officer of Gilead immediately if I become aware of any unauthorized use or disclosure of Third-Party Information. 
  

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 (e) Return of Gilead Confidential Information. Upon termination of my employment at Gilead
for any reason, or earlier upon Gilead’s request at any time, I will deliver to Gilead all Confidential Information and all materials, documentation and other properties of Gilead, as well as any copies, extracts, summaries or derivative works
thereof, and any other materials that may embody or contain any Confidential Information or Third-Party Information, in my possession or under my control, including without limitation, those records maintained by me pursuant to Section 3(e),
except that I may keep personal copies of (i) my compensation records, (ii) materials distributed to stockholders generally and (iii) this Agreement. I also recognize and agree that I have no expectation of privacy with respect to
Gilead’s telecommunications, networking or information processing systems (including without limitation, stored computer files, email messages and voice messages) and that my activity and any files or messages on or using any of those systems
may be subject to inspections or monitoring by Gilead’s personnel at any time without notice. If I perform any work for Gilead or related to my employment using a personal computer or storage device, I agree to notify Gilead of such use.
Immediately upon termination of employment or request by Gilead, I will follow Gilead’s instructions to enable Gilead personnel to remove any Confidential Information from such computer or storage device, by the methods or processes directed by
Gilead. Under no circumstance will I take any Confidential Information or Third Party Information with me when I leave Gilead. If requested, I will certify in writing to Gilead that I have complied with the obligations under this
Section 2(e) within 10 days of Gilead’s request. 
 3. Inventions.  
 (a) Inventions. As used in this Agreement, the term “Inventions” means any ideas, concepts, information, materials, methods,
processes, data, programs, know-how (including without limitation negative know-how), improvements, discoveries, developments, formulae, media, protocol, assays, specifications, designs, artwork, and other copyrightable work and techniques, together
with all Intellectual Property Rights in any of the items listed above. The term “Intellectual Property Rights” means all trade secrets rights, copyrights, trademark rights, patent rights and other intellectual property rights
recognized at any time by the laws (including statutes and common law) of any state, country or other jurisdictions. 
 (b) Inventions
Retained and Licensed. I represent and agree that I have listed on Exhibit A to this Agreement, in a manner that does not violate any third party rights, a complete list of all Inventions that I conceived, reduced to practice,
created, or otherwise developed prior to my employment with Gilead (collectively referred to as “Prior Inventions”), that belong to me (solely or jointly) and that relate to Gilead’s existing or reasonably contemplated
business, products or research and development, and that are not assigned by me to Gilead under this Agreement. If I have not listed any Prior Inventions on Exhibit A, I represent and warrant that there are no Prior Inventions. Without limiting any
of the other provisions in this Agreement or Gilead’s other rights and remedies, if in the course of my employment with Gilead, I incorporate into a Gilead product compound, product, candidate, method, process, database, program or service a
Prior Invention owned by me or in which I have an interest, or if I disclose to Gilead my own or any third party’s confidential information or intellectual property (or if the performance of my work at Gilead requires the incorporation of such
Prior Inventions), Gilead shall have and I hereby grant Gilead a nonexclusive, royalty-free, fully paid-up, irrevocable, perpetual, freely sublicensable and transferable through multiple tiers, worldwide right and license to use Prior 

  

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Inventions and all such confidential information and intellectual property rights for any purpose whatsoever, including but not limited to, the right to
make, have made, modify, use, import, offer for sale, sell, copy, reproduce, distribute, reverse engineer, decompile, publicly display on any media and prepare derivative works of such Prior Invention as part of or in connection with the research,
development or commercialization of such product, compound, product, candidate, method, process, database, program or service, and to practice any method related thereto. 
 (c) Gilead Inventions. The term “Gilead Inventions” means any and all Inventions that I may make, create, conceive, or reduce to practice, or cause to be made, created, conceived or
reduced to practice, either solely or jointly, during my term of employment with Gilead to and only to the fullest extent allowed by Section 2870 of the California Labor Code (hereinafter “Section 2870”), which is attached
to this Agreement as Exhibit B and incorporated herein. I acknowledge and represent that I have reviewed the provisions of Section 2870 set forth in Exhibit B (the “Limited Exclusion Notification”) and I
agree that my signature on the Limited Exclusion Notification acknowledges receipt of the notification. The term “Gilead Inventions” does not include Prior Inventions, if any. 
 (d) Assignment of Gilead Inventions. I will promptly disclose all Gilead Inventions to Gilead. I hereby irrevocably and unconditionally assign to
Gilead Sciences, Inc., or its designee, and agree never to assert against Gilead, all my right, title, and interest in and to any and all Gilead Inventions. I understand and agree that the decision whether or not to commercialize or market any
Gilead Invention is within Gilead’s sole discretion and for Gilead’s sole benefit and that no royalty will be due to me as a result of Gilead’s efforts to commercialize or market any such Gilead Invention. I understand that this
Agreement does not require my assignment to Gilead of an Invention which qualifies fully for protection under Section 2870. During my employment at Gilead, I will promptly and fully disclose to Gilead in writing of any Inventions made during my
employment at Gilead that I believe meet the criteria in Section 2870 and were not otherwise disclosed on Exhibit A. 
 (e)
Gilead Inventions Assigned to the United States or Third Party. If requested by Gilead, I will assign to any third party designated by Gilead, including the United States government, all my right, title, and interest in and to any particular
Gilead Invention. 
 (f) Maintenance of Records. I will comply with all policies and procedures of Gilead relating to disclosure,
documentation, storage, retention and corroboration of inventive and creative activity with which I may be involved, and I will keep and maintain adequate and current records of all Inventions made by me during the period of my employment by Gilead.
The records will be available to and remain the sole property of Gilead at all times. 
 (g) Cooperation. I will assist Gilead in
every way both during and after my employment with Gilead to obtain, maintain, enforce and defend Intellectual Property Rights arising from Gilead Inventions in any and all countries, states and other jurisdiction. I will execute, verify and deliver
such documents and perform such other acts (including appearances as a witness) as Gilead may reasonably request for use in applying for, obtaining, sustaining, enforcing and defending such Intellectual Property Rights relating to Gilead Inventions.
I hereby irrevocably designate and appoint Gilead and each of its duly authorized officers, employees and representatives as my agent and attorney-in-fact, coupled with an interest and 

  

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with full power of substitution, to act for and on my behalf to execute and file any document and to do all other lawfully permitted acts to further the
purposes of the foregoing with the same legal force and effect as if executed, filed or done by me. My obligation to assist Gilead under this Section 3(g) in obtaining and enforcing Intellectual Property Rights and protections relating to
Gilead Inventions will continue beyond the termination of my employment, but Gilead will compensate me at a reasonable rate for the time actually spent by me at Gilead’s request on such cooperation after my termination of employment.

 4. CONFLICTING EMPLOYMENT AND OTHER OBLIGATIONS. I represent and warrant
that I have not entered into, and I agree that during my employment with Gilead I will not enter into, any agreement, whether written or oral, in conflict with this Agreement or my employment with Gilead. During my employment with Gilead, I will not
engage in any other employment, occupation, consulting or activity that is competitive or may be reasonably perceived to be in any way competitive with the business or demonstrably anticipated business of Gilead, nor will I assist any other person
or organization in competing or in preparing to compete with any business or demonstrably anticipated business of Gilead. For the avoidance of any doubt regarding what may be a conflict with my obligations to Gilead or what may be considered
competitive with the business or demonstrably anticipated business of Gilead, I agree to discuss with my Gilead supervisor and obtain Gilead’s approval in advance of accepting any offer of employment, consulting engagement or other work with
any pharmaceutical or biotechnology company. 
 5. NON-SOLICITATION. During my employment with Gilead and for one
(1) year following termination of my employment with Gilead for any reason, with or without cause, I will not, directly or indirectly, induce, solicit, recruit for employment or encourage any of Gilead’s employees or consultants to leave
Gilead, either for myself or for any other entity. 
 6. NOTIFICATION OF NEW EMPLOYER.
When my employment with Gilead ends (for any reason), I hereby consent to Gilead’s notification of my new employer about my rights and obligations under this Agreement. 
 7. EQUITABLE RELIEF. I acknowledge that any actual or threatened breach of this Agreement may cause Gilead immediate and irreparable harm that cannot be adequately compensated by
monetary damages, and I agree that Gilead shall not be required to demonstrate irreparable harm or post bond in order to seek or obtain injunctive relief for my actual or threatened breach of this Agreement. In addition to any injunctive relief,
Gilead may seek any other remedies available to it at law or equity. 
 8. GENERAL. 
 (a) Entire Agreement. This Agreement constitutes my entire agreement relating to the subject matter of this Agreement with Gilead and supersedes
any previous oral or written communications, representations, understandings or agreements with Gilead or any officer or representative of Gilead. 
  

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 (b) Binding Agreement. This Agreement shall survive the termination of my employment at Gilead and
shall inure to the benefit of the subsidiaries, successors and assigns of Gilead and shall be binding upon my heirs, executors, assigns and administrators. 
 (c) Severability; Waiver. To the extent that any word, phrase, clause, or sentence in this Agreement is found to be illegal or unenforceable to the maximum extent for any reason, such illegal or unenforceable
portion(s) shall be modified or deleted to the minimum extent required so as to make the Agreement, as modified, legal and enforceable under applicable laws. No waiver of any right or remedy under this Agreement will be binding on Gilead unless it
is in writing and has been signed by an authorized officer of Gilead. 
 (d) Governing Law. This Agreement shall be governed by the
laws of the state of California, without regard to its choice of law provisions. Any claim arising under this Agreement will be submitted to the exclusive jurisdiction of the U.S. federal or California state courts within the California counties of
San Mateo or Santa Clara and I hereby submit to, and waive any objection to, personal jurisdiction and venue in these courts for the resolution of any Claim. 
 (e) Modifications. This Agreement may not be changed, modified, released, discharged, abandoned, or otherwise amended, in whole or in part, except in writing and signed and delivered by me and a duly authorized
officer of Gilead. 
 9. EMPLOYMENT AT WILL. I understand and acknowledge that my employment with Gilead
is for an unspecified duration and constitutes “at-will” employment. I also understand that any representation to the contrary by anyone is unauthorized and invalid unless in writing and signed by a duly authorized officer of Gilead. I
acknowledge that I have the right to resign and Gilead has the right to terminate my employment at any time, for any or no reason, with or without cause, by me or by Gilead, with or without notice. In addition, this Agreement does not purport to set
forth all of the terms and conditions of my employment, and, as an employee of Gilead, I have rights from and obligations to Gilead that are not set forth in this Agreement. However, the terms of this Agreement shall control over any inconsistent
terms in any other agreement or document. 
  

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 I HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT
RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE WITH THE UNDERSTANDING THAT THE COMPANY WILL RETAIN ONE COUNTERPART AND THE OTHER
COUNTERPART WILL BE RETAINED BY ME. 
  

					
	 ACCEPTED AND AGREED TO:

			
	 EMPLOYEE:
	 		 	
	 Dated:
	 		 	
	 (Signature)
	 	  

	 (Print name)
	 	  

	 (Address)
	 	  

	
	 GILEAD SCIENCES, INC.:

	 Dated:
	 		 	
	 (Signature)
	 	  

	 (Print name)
	 	  

	 (Title)
	 	  

	 (Address)
	 	  

  

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 EXHIBIT A 
 PRIOR INVENTIONS 
  

	1.	LIST OF PRIOR INVENTIONS. (as defined in Section 3(a) of this Agreement) 

  

	 	[    ]	I represent that I have NO Prior Inventions to disclose. 

  

	 	[    ]	I represent that I have DO HAVE Prior Inventions to disclose to Gilead and I further represent and warrant that that the following is a complete list of those Prior Inventions
relevant to the subject matter of my employment by Gilead that have been conceived, reduced to practice, created, or otherwise developed by me alone or jointly with others prior to my engagement by Gilead. To the extent that there are any issued
patents or pending patent applications, or any copyright registrations or pending copyright registration applications, covering a Prior Invention listed below, I have included the applicable patent or copyright registration number, or the number of
the applicable pending application, along with such Prior Invention. [Note to Employee: If a pending patent application number is confidential information of your prior employer and has not been made publicly available, you are required to state
that such an application has been filed and identify the country wherein filed, but you are not required to identify the patent application number.] 

 List of my Prior Inventions: 
  

	
	  

	  

	  

	  

	  

	  

  

	 	[    ]	Additional sheets attached. 

  

	2.	FORMER EMPLOYER INFORMATION. (as defined in Section 2(d) of this Agreement) 

  

	 	[    ]	I have NO materials of any former employer. 

  

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	 	[    ]	I have NO documents of any former employer. 

  

	 	[    ]	I propose to bring to my employment at Gilead the following devices, materials and documents of my former employer, listed in a manner that does not violate the rights of my former
employer, which materials and documents are not generally available to the public and may be used in my employment pursuant to the express written authorization of my former employer (a copy of which is attached hereto): 

 List of Documents and Materials of Former Employer: 
  

	 	[    ]	Additional sheets attached. 

  

					
	 EMPLOYEE:
	 		 	
	 Dated:
	 	  
	 	
	 (Signature)
	 	  
	 	
	 (Print name)
	 	  
	 	

  

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 EXHIBIT B 
 LIMITED EXCLUSION NOTIFICATION 
 CALIFORNIA LABOR
CODE SECTION 2870 
 EMPLOYMENT AGREEMENTS; ASSIGNMENT
OF RIGHTS 
 “(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to
assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret
information except for those inventions that either: 
  

	 	(1)	Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the
employer; or 

  

	 	(2)	Result from any work performed by the employee for the employer. 

 (b) To
the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is
unenforceable.” 
  

	
	 ACKNOWLEDGEMENT OF RECEIPT:

	
	                                       
                                        
                         

	 Employee’s Signature

	
	 Printed Name:                                   
                                       
 

	
	 Dated:                                     
                                        ,
 20Form of Performance Share Award Agreement

 Exhibit 10.65 
  

 PERFORMANCE SHARE AWARD AGREEMENT 
 Performance Share Award #<<Performance Shares>>«NUM» 

 «First_Name» «Middle_Name» «Last_Name», Grantee: 
 GILEAD SCIENCES,
INC. (the “Company”), pursuant to its 2004 Equity Incentive Plan, as amended (the “Plan”), and this Performance Share Award Agreement (the “Agreement”), has this day granted to you, the grantee named above
(“Grantee”), an award of performance shares (“Performance Share Award”), subject to the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. Any terms not defined herein shall have the meaning
set forth in the Plan. 
 The Performance Share Award represents the Company’s unfunded and unsecured promise to issue shares of Common
Stock at a future date, subject to the terms of this Agreement and the Plan. You have no rights under the Performance Share Award other than the rights of a general unsecured creditor of the Company. 
 The details of your Performance Share Award are as follows: 
 1. The allotted number of shares of Common Stock subject to this Performance Share Award is «Performance Shares_Granted» (the “Allotted Performance Shares”). Allotted Performance Shares are used solely to
calculate the actual number of Performance Shares that may be issued to you under this Agreement (“Actual Performance Shares”). Actual Performance Shares will be calculated at the end of each performance period to the extent the
performance goals set forth in Appendix A to this Agreement are determined to have been met. Actual Performance Shares may be adjusted pursuant to Section 10 of the Plan (Adjustments Upon Changes In Capitalization) as a result of stock splits,
recapitalizations or similar changes to the Company’s capital structure. You will not be entitled to receive more than a maximum of 200% of the Allotted Performance Shares noted above. 
 Actual Performance Shares are calculated by multiplying the Allotted Performance Shares by a performance percentage ranging from 0% to 200%. Such
performance percentage is calculated in accordance with the methodology set forth in Appendix A and measures the performance of the Company over the particular performance period described in Appendix A. Performance of the Company is measured
relative to external peers using the AMEX Biotech-Pharmaceutical Index (AMEX:^BPI). 
 The Company will issue the Performance Shares to you
as soon as practicable after the Performance Shares vest in accordance with paragraph 2 below. 
 2. Subject to paragraphs 9 and 10
below, Performance Shares will vest when a Committee (or subcommittee) of the Company’s Board of Directors, which is comprised solely of two or more Directors eligible to serve on a committee making Awards qualifying as Performance-Based
Compensation, has determined that the performance goals set forth in Appendix A have been satisfied for a particular performance period. Performance Shares shall vest, if at all, as follows: 
 (i) On the date on which the satisfaction of the performance goals for the 2007 fiscal year (FY) performance period has been certified, which shall
be no later than Monday, March 17, 2008 (the “First Vesting Date”), twenty-five percent (25%) of the Performance Shares will vest. 
  

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 (ii) On the date on which the satisfaction of the performance goals for the 2008 FY performance
period has been certified, which shall be no later than Monday, March 16, 2009 (the “Second Vesting Date”), another twenty-five percent (25%) of the Performance Shares will vest. 
 (iii) On the date on which the satisfaction of the performance goals for the 2009 FY performance period has been certified, which shall be no later
than Monday, March 15, 2010 (the “Third Vesting Date”), the remaining fifty percent (50%) of the Performance Shares will vest. 
 3. Consideration of not less than the par value of the Common Stock, or $0.001 per share, has been paid by you to the Company for the Performance Share Award in the form of services rendered. 
 4. In the event a fractional portion of a Performance Share vests, such fractional Performance Share will be rounded down to the nearest whole
number. 
 5. By accepting the Performance Share Award, you agree not to sell any of the shares of Common Stock received under this
Award at a time when Applicable Laws or Company policies prohibit a sale. 
 6. Until the shares of Common Stock subject to this
Performance Share Award are issued to you, as evidenced by a stock certificate, appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company, or other appropriate means, you shall have no right to vote or
receive any rights and privileges of a stockholder of the Company with respect to such shares, notwithstanding the vesting of the Performance Shares. 
 7. Provided you are a U.S. tax resident and subject to the satisfaction of any tax withholding obligations described in paragraph 11 below, you may elect to defer the receipt of any shares of Common Stock
issuable pursuant to this Performance Share Award by submitting to the Company a deferral election in the form provided to you by the Company. In the event you intend to defer the receipt of any shares of Common Stock, you must submit to the Company
a completed deferral election form (i) by June 30, 2007 with respect to Performance Shares which may vest on the First Vesting Date, (ii) by June 30, 2008 with respect to Performance Shares which may vest on the Second Vesting
Date, and (iii) by June 30, 2009 with respect to Performance Shares which may vest on the Third Vesting Date. By submitting such deferral election, you represent that you understand the effect of any such deferral under relevant federal,
state and local tax and social security laws, including, but not limited to, the fact that social security contributions may be due upon the vesting of the Performance Share Award notwithstanding your deferral election. 
 8. This Performance Share Award and any interest therein may not be transferred, except by will or by the laws of descent and distribution. Any
attempt to transfer any portion of this Performance Share Award shall be null and void and without effect. 
 9. Except as otherwise
specified in paragraph 10 below, in the event of termination of your Continuous Active Service, any unvested Performance Shares shall be forfeited and any rights with respect to such Performance Shares will terminate as of the date of termination of
your Continuous Active Service. 
  

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 10. Notwithstanding the provisions of paragraph 9 above, in the event of termination of Continuous
Active Service due to your death or your permanent and total disability (as determined by the Company in its sole discretion), then the following shall apply: 
 (i) If such termination of your Continuous Active Service occurs prior to the First Vesting Date, you or your legal representatives or heirs, as the case may be, are eligible to receive a pro-rata portion of
the Performance Shares that may vest on this date. The Administrator will determine the pro-rata portion of the Performance Shares under the following formula: (A) [Number of Performance Shares that would have vested on the First Vesting Date
(if any)] multiplied by (B) [Number of calendar months worked by you during FY 2007] Divided by 12. You shall be deemed to have worked a calendar month if you have worked any portion of that month. The remaining Performance Shares
that may have vested in 2009 and 2010 shall be forfeited and any rights with respect to such Performance Shares will terminate. 
 (ii) If such termination of your Continuous Active Service occurs between the First Vesting Date and the Second Vesting Date, any Performance Shares subject to the FY 2007 performance period will have already vested. In addition, you
or your legal representatives or heirs, as the case may be, are eligible to receive a pro-rata portion of the Performance Shares that may vest on the Second Vesting Date. The Committee will determine the pro-rata portion of the Performance Shares
under the following formula: (A) [Number of Performance Shares that would have vested on the Second Vesting Date (if any) multiplied by (B) [Number of calendar months worked by you during FY 2007 and FY 2008] Divided by 24.
You shall be deemed to have worked a calendar month if you have worked any portion of that month. The remaining Performance Shares that may have vested in 2010 shall be forfeited and any rights with respect to such Performance Shares will terminate.

 (iii) If such termination of your Continuous Active Service occurs between the Second Vesting Date and the Third Vesting Date, any
Performance Shares subject to the FY 2007 and FY 2008 performance periods will have already vested. In addition, you or your legal representatives or heirs, as the case may be, are eligible to receive a pro-rata portion of the Performance Shares
that may vest on the Third Vesting Date. The Committee will determine the pro-rata portion of the Performance Shares under the following formula: (A) [Number of Performance Shares that would have vested on the Third Vesting Date (if any)]
multiplied by (B) [Number of calendar months worked by you during FY 2007, FY 2008 and FY 2009] Divided by 36. You shall be deemed to have worked a calendar month if you have worked any portion of that month. 
 If you are entitled to receive a pro-rata portion of the Performance Shares pursuant to this paragraph, the shares of Common Stock subject to such
Performance Shares will be issued on the original vesting date in accordance with paragraph 6 above, and not on the date of termination of your Continuous Active Service. 
 11. Regardless of any action the Company or, if different, your actual employer (the “Employer”) takes with respect to any or all income tax (including federal, state and local taxes), social
insurance, payroll tax or other tax-related withholding (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items legally payable by you is and remains your responsibility and that the Company and/or the
Employer: (i) make no representations or undertakings regarding the 

  

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treatment of any Tax-Related Items in connection with any aspect of this Performance Share Award, including, but not limited to, the grant or vesting of
Performance Shares and the subsequent sale of shares of Common Stock acquired following vesting of the Performance Shares; and (ii) do not commit to structure the terms of this Performance Share Award or any aspect of the Performance Shares to
reduce or eliminate your liability for Tax-Related Items. 
 At any time not less than thirty (30) days before the relevant taxable
event, you may notify the Company of your election to pay Tax-Related Items. In such case, you may satisfy your Tax-Related Items by paying to the Company on such date as the Company shall specify an amount that the Company determines is sufficient
to satisfy the expected Tax-Related Items by (i) wire transfer to such account as the Company may direct, (ii) delivery of a cashier’s check payable to the Company, or (iii) such other means as the Company may establish or
permit. 
 If you do not elect to pay your Tax-Related Items by wire transfer, cashier’s check or other means permitted by the Company,
you agree that the Company may satisfy its obligation for Tax-Related Items by selling or arranging for the sale of shares acquired under this Performance Share Award. In the event that the Shares cannot be sold due to applicable legal, regulatory,
listing or other restrictions, or otherwise, the Company or the Employer may satisfy such obligation by any of one or a combination of the following methods: (i) by withholding a number of shares of Common Stock from the shares of Common Stock
otherwise issuable to you under this Performance Share Award, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum withholding amount (or such other amount as is required to avoid adverse accounting
implications); or (ii) by withholding from proceeds of the sale of shares acquired under this Performance Share Award. If the Company satisfies the Tax-Related Item withholding obligation by withholding a number of shares of Common Stock as
described herein, you will be deemed to have been issued the full number of shares of Common Stock under this Performance Share Award, notwithstanding that a number of the shares of Common Stock is held back solely for the purpose of such
Tax-Related Items. 
 Finally, in the unlikely event that the Company or the Employer is not able to satisfy its obligation for Tax-Related
Items by any of the means described above, regardless of whether you elect to do so, you will have to pay to the Company or the Employer any amount of Tax-Related Items that has not been satisfied. The Company may refuse to deliver the shares of
Common Stock subject to this Performance Share Award if you fail to pay the Company or the Employer for the Tax-Related Items as described herein. 
 12. This Agreement is not an employment or service contract and nothing in this Agreement shall be deemed to create in any way whatsoever any obligation on your part to continue in the service of the Company, Employer or Related
Entity, or of the Company, Employer or Related Entity to continue your service with the Company, Employer or Related Entity. In the event that this Performance Share Award is granted to you in connection with the performance of services as a
Consultant or a Director, references to employment, Employee and similar terms shall be deemed to include the performance of services as a Consultant or a Director, as the case may be, provided, however, that no rights as an Employee shall arise by
reason of the use of such terms. 
 13. Notwithstanding any provision in this Agreement, the Administrator reserves the right, to the
extent it deems necessary or advisable in its sole discretion, to unilaterally alter or modify this Agreement and any Performance Shares awarded thereunder to ensure all Performance Shares awarded to Grantees who are U.S. taxpayers are made in such
a manner that either qualifies for exemption from or complies with Section 409A of the Code; provided, however that no such alteration or modification 

  

 4 

 
shall alter or modify the performance goals meant to satisfy the requirements of Performance-Based Compensation for Covered Employees and that the Company
makes no representations that the Plan or this Performance Share Award will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to the Plan or any
Performance Share Award granted thereunder. 
 14. Notwithstanding Section 11 of the Plan, in the event of a Change in Control,
unless the acquiring company assumes the Performance Share Award, the vesting of the Performance Share Award will be accelerated, and you will be entitled to receive the greater of (i) the Allotted Performance Shares (as set forth in paragraph
1 above), or (ii) the Actual Performance Shares calculated based on a performance percentage calculated in accordance with the methodology set forth in Appendix A. 
 15. Any notices provided for in this Agreement or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five
(5) days after deposit in the United States mail, postage prepaid, addressed to you at the address specified below or at such other address as you hereafter designate by written notice to the Company. 
 16. This Agreement is subject to all the provisions of the Plan, a copy of which is attached hereto and its provisions are hereby made a part of
this Agreement, including without limitation the provisions of Sections 5, 6, 7, 8 and 9 of the Plan relating to Performance Share Awards, and is further subject to all interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of this Agreement and those of the Plan, the provisions of the Plan shall control. 
 17. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in
whole or in part, the remaining provisions shall nevertheless be binding and enforceable. 
 18. Notwithstanding any provision in this
Agreement to the contrary, the Performance Share Award shall be subject to any special terms and conditions as set forth in the Addendum to this Agreement for your country of residence, if any. The Addendum, if any, constitutes part of this
Agreement. 
 19. This Agreement, Appendix A, any Addendum and the Plan set forth all of the rights and liabilities with respect to
this Performance Share Award. 
 20. This Agreement shall be governed by and construed in accordance with the laws of the State of
California (with the exception of its conflict of law provisions). For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by the Performance Share Award, the parties hereby submit to
and consent to the exclusive jurisdiction of the State of California and agree that such litigation shall be conducted only in the courts of San Mateo County, California, or the federal courts for the United States for the Northern District of
California, and no other courts, where this grant is made and/or to be performed. 
 21. This Agreement, Appendix A, any Addendum and
the Plan is the entire understanding between you and the Company, Employer and Related Entities regarding the acquisition of shares of Common Stock in the Company and supersedes all prior oral and written agreements on that subject with the
exception of any Awards previously granted to you under the Plan, the Company’s 1987 Stock 

  

 5 

 
Purchase Plan, the Company’s Incentive Stock Option Plan, the Company’s 1987 Supplemental Stock Option Plan, the Company’s 1991 Stock Option
Plan, the Company’s 1995 Non-Employee Directors’ Stock Option Plan, the rights to purchase stock granted to you under the Company’s 1991 Employee Stock Purchase Plan or any Awards originally granted to the you under the Vestar, Inc.
1988 Stock Option Plan, the NeXstar Pharmaceuticals, Inc. 1993 Incentive Stock Plan, the Triangle Pharmaceuticals, Inc. 1996 Stock Incentive Plan, the Corus Pharma, Inc. 2001 Stock Plan or the Myogen, Inc. 2003 Equity Incentive Plan. 
 Dated «Performance Share Award_Date» 
  

			
	 Very truly yours,
 GILEAD SCIENCES,
INC.

		
	By	 	  

		 	 John C. Martin
 President and CEO

 ATTACHMENTS: 
  
 2004 Equity Incentive Plan 
 Appendix A

 Country Addendum (if any) 
  

 6 

 APPENDIX A 
 PERFORMANCE SHARE AWARD AGREEMENT 
 FOR 2007 GRANT 
 Performance Share Measures 
 Subject to the provisions of the Performance Share Award Agreement (the “Agreement”), the Actual Performance Shares which may vest after the end of each FY
performance period, if any, will be based on the Company’s performance during the FY performance period against two measures, each weighted equally: 
 1. The Company’s total shareholder return (TSR) vs. the AMEX Biotech-Pharmaceutical Index (AMEX:^BPI) 
  

	 	•	 	 TSR is a measure of stock price performance and is defined by the following formula: 

 TSR = (Ending Stock Price – Beginning Stock Price + Dividends) 
 Beginning Stock Price 
  

	 	•	 	 “Beginning Stock Price” is determined by averaging the daily closing stock price on each trading day in 2006. The Beginning Stock Price for the Company is
$61.91. 

  

	 	•	 	 “Ending Stock Price” for a particular fiscal period is determined by averaging the daily closing stock price on each trading day in the particular FY
performance period and on each trading day in a FY after 2006 up to and including the FY to which the FY performance period relates. For example, for the 2007 performance period, the Ending Stock Price will be determined by averaging the daily
closing stock price on each trading day in 2007, and for the 2009 performance period, the Ending Stock Price will be determined by averaging the daily closing stock price on each trading day in 2007, 2008 and 2009. 

  

	 	•	 	 For companies in the AMEX Biotech-Pharmaceutical Index which are not on a calendar fiscal year, TSR will be measured with respect to the four fiscal quarters which
coincide with the Company’s FY. 

  

	 	•	 	 In the event of a Change in Control pursuant to paragraph 14 of the Agreement, to calculate the Actual Performance Shares in case the Performance Share Award is not
assumed, “Ending Stock Price” will be determined by averaging the daily closing stock price on each trading day after 2006 up to and including the last full fiscal quarter immediately preceding the Change in Control.

  

 1 

	 	•	 	 The Beginning Stock Price and Ending Stock Price will be adjusted for stock splits, recapitalizations and similar events. 

  

	 	2.	The Company’s revenue growth vs. the AMEX Biotech-Pharmaceutical Index 

  

	 	•	 	 Revenue Growth = (Ending Revenue –Beginning Revenue) 

                           Beginning Revenue 
  

	 	•	 	 “Beginning Revenue” is determined by calculating the annual revenue for 2006. The Beginning Revenue for the Company is $3.03 Billion

  

	 	•	 	 “Ending Revenue” is determined by calculating the annual revenue for the particular FY performance period. 

  

	 	•	 	 Revenue growth for the Company and the companies in the AMEX Biotech-Pharmaceutical Index will be measured on the full year ended December 31 (regardless of
whether the company is on a calendar fiscal year). 

  

	 	•	 	 In the event of a Change in Control pursuant to paragraph 14 of the Agreement, to calculate the Actual Performance Shares in case the Performance Share Award is not
assumed, “Ending Revenue” will be the product of (A) the quarterly revenue for the last full fiscal quarter immediately preceding the Change in Control multiplied by (B) four (4). 

  

	 	3.	The Company will measure its performance relative to the companies which are part of the AMEX Biotech-Pharmaceutical Index as of the last day of the particular performance period

  

 2 

 Performance Percentage Determination 
 Subject to the provisions of the Agreement, the Actual Performance Shares that may vest and be issued to you, if
any, will be determined after the end of the particular performance period based on the Company’s percentile ranking for both TSR and revenue growth relative to the AMEX Biotech-Pharmaceutical Index. If any of the companies in the AMEX
Biotech-Pharmaceutical Index has not released its earnings for a particular FY performance period by March 14th
of the year immediately following the particular FY performance period, the Company will use the most recently published financial data of such company to measure the company’s performance during the last full four fiscal quarters for which
such financial data is available. 
 Company TSR vs. AMEX Biotech-Pharmaceutical Index 
  

																
	 > 80th %ile
	  	100.0	%	 	110.0	%	 	150.0	%	 	175.0	%	 	200.0	%
	 60th to 79th %ile
	  	75.0	%	 	85.0	%	 	125.0	%	 	150.0	%	 	175.0	%
	 40th to 59th %ile
	  	50.0	%	 	60.0	%	 	100.0	%	 	125.0	%	 	150.0	%
	 20th to 39th %ile
	  	10.0	%	 	20.0	%	 	60.0	%	 	85.0	%	 	110.0	%
	 < 20th %ile
	  	0.0	%	 	10.0	%	 	50.0	%	 	75.0	%	 	100.0	%
		  	< 20th 	%ile	 	20th to 39th 	%ile	 	40th to 59th 	%ile	 	60th to 79th 	%ile	 	> 80th 	%ile

 Gilead Revenue Growth vs. AMEX Biotech-Pharmaceutical Index 
  

	 	•	 	 Percentages represent the percent of Allotted Performance Shares eligible for vesting at the end of the particular FY performance period based on the Company’s
percentile ranking for both revenue growth and TSR relative to the AMEX Biotech-Pharmaceutical Index, subject to the provisions of the Agreement. 

  

	 	•	 	 For example, if at the end of the particular FY performance period the Company’s revenue growth is at the 85th percentile relative to the AMEX
Biotech-Pharmaceutical Index and TSR is at the 50th percentile relative to the AMEX Biotech-Pharmaceutical Index, you would be eligible to vest in 150% of the Allotted Performance Shares, subject to the provisions of the Agreement.

  

 3 

	 	•	 	 Performance at or above 80th percentile of the AMEX Biotech-Pharmaceutical Index for both TSR and revenue growth for the particular FY performance period results in
Allotted Performance Shares eligible for vesting that are equal to the maximum award opportunity of 200% of the Allotted Performance Shares. 

  

	 	•	 	 Performance below the 20th percentile of the AMEX Biotech-Pharmaceutical Index for both TSR and revenue growth for the particular FY performance period results in a
0% vesting of the Allotted Performance Shares eligible for vesting. 

 4

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