Document:

Ex. 10.49 - Restricted Stock Unit Stock Issuance Agreement

Exhibit 10.49

NON-EMPLOYEE DIRECTOR AWARD

GILEAD SCIENCES, INC.
RESTRICTED STOCK UNIT ISSUANCE AGREEMENT

RECITALS

A.    The Board has adopted the Plan for the purpose of providing incentives to attract, retain and motivate eligible Employees, Directors and Consultants.
B.    Participant is to render valuable services to the Corporation as a non-employee Director, and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Corporation’s issuance of shares of Common Stock to Participant thereunder.
C.    All capitalized terms used in this Agreement shall have the meaning assigned to them herein and in the attached Appendix A.
NOW, THEREFORE, the Corporation hereby awards Restricted Stock Units to Participant upon the following terms and conditions: 
1.Grant of Restricted Stock Units.  The Corporation hereby awards to Participant, as of the Award Date indicated below, Restricted Stock Units under the Plan.  Each Restricted Stock Unit that vests hereunder will entitle Participant to receive one share of Common Stock on the specified issuance date for that unit.  The number of Shares subject to the awarded Restricted Stock Units, the applicable vesting schedule for those Shares, the date or dates on which those vested Shares shall become issuable to Participant and the remaining terms and conditions governing the Award shall be as set forth in this Agreement. 
AWARD SUMMARY
	
		
	Participant:
	____________________________________

	Award Date:
	______________________, 20___

	Number of Shares Subject to Award:
	______________ Shares 

	Vesting Schedule:
	The Shares shall vest upon the earlier of (i) Participant’s completion of one (1) year of Continuous Service measured from the Award Date or (ii) the day immediately preceding the next regular annual stockholders meeting following the Award Date provided Participant remains in Continuous Service through such day (the earlier of (i) or (ii), the “Normal Vesting Date”).  However, the Shares may be subject to accelerated vesting in accordance with the provisions of Paragraph 5 of this Agreement. 

	Issuance Schedule:
	Unless Participant has made a timely Deferral Election with respect to the Award prior to the start of the calendar year in which the Award Date occurs, the Shares in which Participant vests on the Normal Vesting Date shall become issuable immediately upon vesting, and will be issued no later than the later of (i) the close of the calendar year in which the Normal Vesting Date occurs or (ii) the fifteenth (15th) day of the third (3rd) calendar month following the Normal Vesting Date.  However, if Participant has made a timely Deferral Election, then the Shares in which Participant vests on the Normal Vesting Date shall be issued in accordance with the terms and provisions of such Deferral Election, including the applicable distribution event and method of distribution.  In the event of a Change in Control, the distribution provisions of Paragraph 5 shall apply.

2.Limited Transferability.  Prior to actual receipt of the Shares which vest hereunder, Participant may not transfer any interest in the Award or the underlying Shares.  Any Shares which vest hereunder but which otherwise remain unissued at the time of Participant’s death may be transferred pursuant to the provisions of Participant’s will or the laws of inheritance or to Participant’s designated beneficiary or beneficiaries of the Award.  Participant may also direct the Corporation to re-issue the stock certificates (which may be in electronic form) for any Shares which in fact vest and become issuable under the Award during his or her lifetime to one or more designated members of Participant’s Immediate Family or a trust established for Participant and/or the members of his or her Immediate Family.  However, the actual issuance of such Shares pursuant to the foregoing provisions of this Paragraph 2 shall be subject to the issuance and distribution provisions of any Deferral Election in effect for the Award.
3.Cessation of Service.  Except as otherwise provided in Paragraph 5 below, should Participant cease Continuous Service for any reason prior to the Normal Vesting Date, then the Award will be immediately cancelled with respect to those unvested Shares, and the number of Restricted Stock Units will be reduced accordingly.  Participant shall thereupon cease to have any right or entitlement to receive any Shares under those cancelled units.  However, for purposes of this Agreement, Participant shall not be deemed to cease Continuous Service if Participant continues to serve the Corporation as a Director Emeritus immediately following his or her cessation of service as a Board member without an intervening break in Continuous Service.
4.Stockholder Rights and Dividend Equivalents.
(a)The holder of the Award shall not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the Shares subject to the Award until Participant becomes the record holder of those Shares upon their actual issuance following the Corporation’s collection of the applicable Withholding Taxes.
(b)Notwithstanding the foregoing, should any dividend or other distribution, whether regular or extraordinary and whether payable in cash, securities (other than Common Stock) or other property, be declared and paid on the outstanding Common Stock while one or more Shares remain subject to the Award (i.e., those Shares are not otherwise issued and outstanding for purposes of entitlement to the dividend or distribution), then a special book account shall be established for Participant and credited with a phantom dividend equivalent to the actual dividend or distribution which would have been paid on the Shares at the time subject to the Award had they been issued and outstanding and entitled to that dividend or distribution. As the Shares subsequently vest hereunder, the phantom dividend equivalents so credited to those Shares in the book account shall vest and those vested dividend equivalents shall be distributed to Participant (in the same form the actual dividend or distribution was paid to the holders of the Common Stock entitled to that dividend or distribution or in such other form as the Administrator deems appropriate under the circumstances) concurrently with the issuance of the vested Shares to which those phantom dividend equivalents relate, whether those vested Shares are to be issued in accordance with the Issuance Schedule or distribution provisions set forth in this Agreement or the distribution provisions set forth in Participant’s Deferral Election (if any).  Each such distribution shall be subject to the Corporation’s collection of all applicable Withholding Taxes.
(c)Should Participant cease Continuous Service without vesting in one or more of the Shares subject to the Award (including any Shares which do not otherwise vest at that time after taking into account any applicable vesting acceleration provisions set forth in Paragraph 5 of this Agreement), then the phantom dividend equivalents credited to those unvested Shares shall be cancelled, and Participant shall thereupon cease to have any further right or entitlement to those cancelled amounts.
5.Change in Control.
(a)Should Participant remain in Continuous Service until the effective date of a Change in Control, then the Restricted Stock Units at the time subject to the Award will vest immediately prior to the closing of the Change in Control.  The Shares subject to those vested units shall be converted into the right to receive the same consideration per share of Common Stock payable to the other stockholders of the Corporation in consummation of that Change in Control, and such consideration per Share shall be distributed to Participant at the same time as such 

shareholder payments, but such distribution to Participant shall in all events be completed no later than the later of (i) the close of the calendar year in which such Change in Control is effected or (ii) the fifteenth (15th) day of the third (3rd) calendar month following the effective date of that Change in Control.  However, if Participant has made a timely Deferral Election with respect to the Award, then the consideration payable per Share in consummation of the Change in Control shall be distributed to Participant in accordance with the distribution provisions of that Deferral Election, and those provisions shall supersede anything to the contrary in this Paragraph 5.  Each such issuance shall be subject to the Corporation’s collection of all applicable Withholding Taxes.
(b)This Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.
6.Adjustment in Shares.  Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares, spin-off transaction or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, or should the value of the outstanding shares of Common Stock be substantially reduced as a result of a spin-off transaction or an extraordinary dividend or distribution, or should there occur any merger, consolidation or other reorganization, then equitable adjustments shall be made by the Administrator to the total number and/or class of securities issuable pursuant to the Award in order to reflect such change.  In making such adjustments, the Administrator shall take into account any amounts to be credited to Participant’s book account under Paragraph 4(b) in connection with the transaction, and the determination of the Administrator shall be final, binding and conclusive.  In the event of a Change in Control, the provisions of Paragraph 5 shall be controlling. 
7.Issuance of Shares or Other Amounts.
(a)On each date on which one or more Shares are to be issued in accordance with the express provisions of this Agreement or, if the Administrator permits Participant to file a Deferral Election and Participant files a Deferral Election, the distribution provisions of Participant’s Deferral Election, which shall have priority over the terms of this Agreement, the Corporation shall issue to or on behalf of Participant a stock certificate (which may be in electronic form) for those Shares and shall concurrently distribute to Participant any phantom dividend equivalents with respect to those Shares, subject in each instance to the Corporation’s collection of the applicable Withholding Taxes.  Unless otherwise permitted by the Administrator, only non-employee Directors in the United States may file a Deferral Election.
(b)Except as otherwise provided in Paragraph 5, the settlement of all Restricted Stock Units which vest under the Award shall be made solely in Shares.  In no event, however, shall any fractional Shares be issued.  Accordingly, the total number of Shares to be issued at the time the Award vests shall, to the extent necessary, be rounded down to the next whole Share in order to avoid the issuance of a fractional Share.
8.Compliance with Laws and Regulations.  
(a)The issuance of Shares pursuant to the Award shall be subject to compliance by the Corporation and Participant with all Applicable Laws relating thereto.
(b)The sale of the Shares issued under the Plan must comply with all Applicable Laws relating thereto, including U.S. securities laws that impose restrictions on insider trading, which may affect Participant’s ability to sell Shares acquired pursuant to the Award.  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable insider trading policy of the Corporation.  Participant is solely responsible for ensuring compliance with all Applicable Laws and should consult a legal advisor in this regard.
9.Notices.  Any notice required to be given or delivered to the Corporation under the terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate offices.  Any notice required to be given or delivered to Participant shall be in writing and addressed to Participant at the most current 

address then indicated for Participant on the Corporation’s records or shall be delivered electronically to Participant through the Corporation’s electronic mail system.  All notices shall be deemed effective upon personal delivery or delivery through the Corporation’s electronic mail system or upon deposit in the U.S. or local country mail, postage prepaid and properly addressed to the party to be notified.
10.Successors and Assigns.  Except to the extent otherwise provided in this Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and Participant, the legal representatives, heirs and legatees of Participant’s estate and, if the Administrator permits Participant to designate beneficiaries of the Award, all designated beneficiaries.
11.Construction.  This Agreement and the Award evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan.  In the event of any conflict between the provisions of this Agreement and the terms of the Plan, the terms of the Plan shall be controlling.  All decisions of the Administrator with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in the Award.
12.Governing Law and Venue.
(a)The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without resort to that State’s conflict-of-laws rules.
(b)For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by the Award and this Agreement, 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 Northern District of California, and no other courts where the grant of the Restricted Stock Units is made and/or to be performed. 
13.Severability.  The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
14.Waiver.  Participant acknowledges that a waiver by the Corporation of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach of this Agreement.
15.Code Section 409A.  If Participant is a U.S. taxpayer, the following provisions apply to Participant’s Award:
(a)It is the intention of the parties that in the absence of a timely-made Deferral Election with respect to the Award, the provisions of this Agreement shall, to the maximum extent permissible, comply with the requirements of the short-term deferral exception to Section 409A of the Code and Treasury Regulations Section 1.409A-1(b)(4). Accordingly, to the extent there is any ambiguity as to whether one or more provisions of this Agreement would otherwise contravene the requirements or limitations of Code Section 409A applicable to such short-term deferral exception, then those provisions shall be interpreted and applied in a manner that does not result in a violation of the requirements or limitations of Code Section 409A and the Treasury Regulations thereunder that apply to such exception.
(b)However, if Participant makes a timely Deferral Election with respect to the Award, then this Agreement will create a deferred compensation arrangement subject to the requirements of Code Section 409.  In that event, the terms and provisions of this Agreement shall be applied and interpreted in a manner that complies with all applicable requirements of Code Section 409A and the Treasure Regulations thereunder.  Accordingly, to the extent there is any ambiguity as to whether one or more provisions of this Agreement would otherwise contravene the applicable requirements or limitations of Code Section 409A, then those provisions shall be interpreted and applied in a manner that does not result in a violation of the applicable requirements or limitations of Code Section 409A and the Treasury Regulations thereunder.

16.  No Advice Regarding Grant.  The Corporation is not providing any tax, legal or financial advice, nor is the Corporation making any recommendations regarding Participant’s participation in the Plan or Participant’s acquisition or sale of the underlying Shares.  Participant is hereby advised to consult with his or her personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
17.No Impairment of Rights.  This Agreement shall not in any way be construed or interpreted so as to affect adversely or otherwise impair the right of the Corporation or its stockholders to remove Participant from the Board at any time in accordance with the provisions of applicable law.
18.Plan Prospectus.  The official prospectus for the Plan is attached if the Award is the first Restricted Stock Unit award made to Participant under the Plan.  Participant may obtain an additional printed copy of the prospectus by contacting Stock Plan Services through the internet at stockplanservices@gilead.com.
19.Electronic Delivery and Acceptance.  The Corporation may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  Participant hereby consents to receive such documents by electronic delivery.
20.Participant Acceptance.  Participant must accept the terms and conditions of this Agreement either electronically through the electronic acceptance procedure established by the Corporation or through a written acceptance delivered to the Corporation in a form satisfactory to the Corporation.  In no event shall any Shares be issued under this Agreement in the absence of such acceptance.
21.Appendices B and C.  Notwithstanding any provision of this Agreement to the contrary, if Participant resides in a country outside the United States or is otherwise subject to the laws of a country other than the United States, the Award and any Shares acquired under the Plan shall be subject to the additional terms and conditions set forth in Appendix B to this Agreement and to any special terms and provisions as set forth in Appendix C for Participant’s country, if any.  Moreover, if Participant relocates to one of the countries included in Appendix C, the special terms and conditions for such country will apply to Participant, to the extent the Corporation determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  Appendices B and C constitute part of this Agreement.
22.Imposition of Other Requirements.  The Corporation reserves the right to impose other requirements on Participant’s participation in the Plan, on the Award and on any Shares acquired under the Plan, to the extent the Corporation determines it is necessary or advisable for legal or administrative reasons, and to require Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

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

	 
	 

	By:
	 

	Title:
	SVP Human Resources

	
		
	PARTICIPANT

	 
	 

	By:
	 

APPENDIX A

DEFINITIONS

The following definitions shall be in effect under the Agreement:
A.Administrator shall mean the Compensation Committee of the Board in its capacity as administrator of the Plan.
B.Agreement shall mean this Restricted Stock Unit Issuance Agreement.
C.Applicable Laws shall mean the legal requirements related to the Plan and the Award under applicable provisions of the federal securities laws, state corporate and securities laws, the Code, the rules of any applicable Stock Exchange on which the Common Stock is listed for trading, and the rules of any non-U.S. jurisdiction applicable to Awards granted to residents therein.
D.Award shall mean the award of Restricted Stock Units made to Participant pursuant to the terms of this Agreement.
E.Award Date shall mean the date the Restricted Stock Units are awarded to Participant pursuant to the Agreement and shall be the date indicated in Paragraph 1 of the Agreement.
F.Board shall mean the Corporation’s Board of Directors.
G.Cause shall mean the termination of Participant’s Continuous Service as a result of his or her (i) performance of any act, or failure to perform any act, in bad faith and to the detriment of the Corporation; (ii) dishonesty, intentional misconduct, material breach of any fiduciary duty owed to the Corporation; (iii) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person; or (iv) reasons that are comparable to “cause” under labor laws in the jurisdiction where Participant is providing service or the terms of Participant’s service agreement, if any.
H.Change in Control shall mean a change in ownership or control of the Corporation effected through the consummation of any of the following transactions:
(ii)a merger, consolidation or other reorganization approved by the Corporation’s stockholders, unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Corporation’s outstanding voting securities immediately prior to such transaction;
(iii)a sale, transfer or other disposition of all or substantially all of the Corporation’s assets;
(iv)the closing of any transaction or series of related transactions pursuant to which any person or any group of persons comprising a “group” within the meaning of Rule 13d-5(b)(1) of the 1934 Act (other than the Corporation or a person that, prior to such transaction or series of related transactions, directly or indirectly controls, is controlled by or is under common control with, the Corporation) becomes directly or indirectly (whether as a result of a single acquisition or by reason of one or more acquisitions within the twelve (12)-month period ending with the most recent acquisition) the beneficial owner (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing (or convertible into or exercisable for securities possessing) more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities (as measured in terms of the power to vote with respect to the election of Board members) outstanding immediately after the consummation of such transaction or series of related transactions, whether such transaction 

involves a direct issuance from the Corporation or the acquisition of outstanding securities held by one or more of the Corporation’s existing stockholders; or
(v)a change in the composition of the Board over a period of twelve (12) consecutive months or less such that a majority of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office at the time the Board approved such election or nomination.
In no event, however, shall a Change in Control be deemed to occur upon a merger, consolidation or other reorganization effected primarily to change the State of the Corporation’s incorporation or to create a holding company structure pursuant to which the Corporation becomes a wholly-owned subsidiary of an entity whose outstanding voting securities immediately after its formation are beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Corporation’s outstanding voting securities immediately prior to the formation of such entity.
I.Code shall mean the U.S. Internal Revenue Code of 1986, as amended.
J.Common Stock or Shares shall mean shares of the Corporation’s common stock.
K.Consultant shall mean any person, including an advisor, who is compensated by the Corporation or any Related Entity for services performed as a non-employee consultant; provided, however, that the term “Consultant” shall not include non-employee Directors serving in their capacity as Board members.  The term “Consultant” shall include (i) a former Board member during his or her period of service as Director Emeritus immediately following his or her cessation of service as a Board member, without an intervening break in Continuous Service, or (ii) an individual serving as a member of the board of directors of a Related Entity.
L.Continuous Service shall mean the performance of services for the Corporation or a Related Entity (whether now existing or subsequently established) by a person in the capacity of an Employee, Director or Consultant.  For purposes of this Agreement, Participant shall be deemed to cease Continuous Service immediately upon the occurrence of either of the following events: (i) Participant no longer performs services in any of the foregoing capacities for the Corporation or any Related Entity or (ii) the entity for which Participant is performing such services ceases to remain a Related Entity of the Corporation, even though Participant may subsequently continue to perform services for that entity. The Administrator shall have the exclusive discretion to determine when Participant ceases Continuous Service for purposes of the Award.
M.Corporation shall mean Gilead Sciences, Inc., a Delaware corporation, and any successor corporation to all or substantially all of the assets or voting stock of Gilead Sciences, Inc. which shall by appropriate action adopt the Plan. 
N.Deferral Election shall mean an election filed by Participant with the Corporation prior to the start of the calendar year in which the Award Date occurs pursuant to which Participant elects, in accordance with the applicable requirements of Code Section 409A, to defer the issuance of the Shares that vest under this Agreement or the distribution of the consideration payable per Share in a Change in Control transaction to one or more designated issuance or distribution dates or events beyond the vesting date for those Shares.
O.Director shall mean a member of the Board or a Director Emeritus.
P.Domestic Partner shall mean a person who meets and continues to meet all of the criteria detailed in the Gilead Sciences Affidavit of Domestic Partnership when the Domestic Partnership has been internally registered with the Corporation by filing with the Corporation an original, properly completed, notarized Gilead Sciences Affidavit of Domestic Partnership.

Q.Employee shall mean any person who is in the employ of the Corporation (or any Related Entity), subject to the control and direction of the Corporation or Related Entity as to both the work to be performed and the manner and method of performance.
R.Fair Market Value per share of Common Stock on any relevant date shall be the closing price per share of Common Stock (or the closing bid, if no sales were reported) on that date, as quoted on the Stock Exchange that is at the time serving as the primary trading market for the Common Stock; provided, however, that if there is no reported closing price or closing bid for that date, then the closing price or closing bid, as applicable, for the last trading date on which such closing price or closing bid was quoted shall be determinative of such Fair Market Value.  The applicable quoted price shall be as reported in The Wall Street Journal or such other source as the Administrator deems reliable.
S.Immediate Family shall mean, with respect to Participant, any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law including adoptive relationships, Domestic Partner, a trust in which such persons (or person) have more than fifty percent (50%) of the beneficial interest, a foundation in which such persons (or person) control the management of the entity’s assets, or any other entity in which such persons (or person) own more than fifty percent (50%) of the voting interests.
T.1934 Act shall mean the U.S. Securities Exchange Act of 1934, as amended from time to time.
U.Normal Vesting Date shall mean the date (as set forth in Paragraph 1 of the Agreement) on which the Restricted Stock Units and the underlying Shares vest.
V.Parent shall mean a “parent corporation,” whether now existing or hereafter established, as defined in Section 424(e) of the Code.
W.Participant shall mean the person to whom the Award is made pursuant to the Agreement. 
X.Plan shall mean the Corporation’s 2004 Equity Incentive Plan, as amended and restated from time to time.
Y.Related Entity shall mean (i) any Parent or Subsidiary of the Corporation and (ii) any corporation in an unbroken chain of corporations beginning with the Corporation and ending with the corporation in the chain for which Participant provides services as an Employee, Director or Consultant, provided each corporation in such chain owns securities representing at least twenty percent (20%) of the total outstanding voting power of the outstanding securities of another corporation or entity in such chain and there is a legitimate non-tax business purpose for making the Award to Participant. 
Z.Restricted Stock Unit shall mean the Award in the form of a contractual right to receive Shares under this Agreement which will entitle Participant to receive one actual share of Common Stock per Restricted Stock Unit upon the satisfaction of the Continuous Service vesting requirements applicable to such Award.
AA.Share Withholding Method shall mean an automatic Share withholding procedure pursuant to which the Corporation will withhold, immediately as the Shares are issued under the Award, a portion of those Shares with a Fair Market Value (measured as of the issuance date) equal to the amount of the applicable Withholding Taxes.
BB.    Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global or Global Select Market or the New York Stock Exchange.
CC.    Subsidiary shall mean a “subsidiary corporation,” whether now existing or hereafter established, as defined in Section 424(f) of the Code.

DD.    Withholding Taxes shall mean any and all U.S. federal, state, local and/or foreign income taxes and Participant’s portion of the federal, state, local and/or foreign employment taxes (including social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items), in each case, required to be withheld by the Corporation and/or any Related Entity in connection with any taxable event attributable to the Award or Participant’s participation in the Plan.

APPENDIX B

TERMS AND CONDITIONS FOR NON-U.S. PARTICIPANTS

The provisions in this Appendix B apply to Participants that reside in a country outside the United States or who are otherwise subject to the laws of a country other than the United States and supplement, amend or replace the provisions in the Agreement, as applicable:

1.Transferability.  The following replaces Paragraph 2 of the Agreement in its entirety:
Prior to actual receipt of the Shares which vest hereunder, Participant may not transfer any interest in the Award or the underlying Shares.  Any Shares which vest hereunder but which otherwise remain unissued at the time of Participant’s death may be transferred pursuant to the provisions of Participant’s will or the laws of inheritance.
2.Acknowledgment of Nature of Plan and Award.  In accepting the Award, Participant acknowledges, understands and agrees that:
(a)the Plan is established voluntarily by the Corporation, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Corporation at any time, to the extent permitted by the Plan;
(b)the Award is voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been granted in the past;
(c)all decisions with respect to future Awards or other grants, if any, will be at the sole discretion of the Corporation;
(d)Participant’s participation in the Plan is voluntary;
(e)the Award and the Shares subject to the Award are for future services and should not be considered as compensation for, or relating in any way to, past services for the Corporation (or any Related Entity);
(f)the Award and Participant’s participation in the Plan will not be interpreted to form an employment relationship with the Corporation (or any Related Entity);
(g)the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with any certainty; 
(h)no claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from termination of Participant’s Continuous Service by the Corporation (for any reason whatsoever, whether or not later found to be invalid or in breach of the terms of Participant’s service agreement, if any), and in consideration of the grant of the Restricted Stock Units to which Participant is otherwise not entitled, Participant irrevocably agrees never to institute any claim against the Corporation (or any Related Entity), waives his or her ability, if any, to bring any such claim, and releases the Corporation (or any Related Entity) from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Participant shall be deemed irrevocably to have agreed not to pursue such claim and to execute any and all documents necessary to request dismissal or withdrawal of such claim; 
(i)unless otherwise provided for in the Plan or by the Corporation in its discretion, the grant of Restricted Stock Units and the benefits evidenced by this Agreement do not create any entitlement to have the Restricted Stock Units or any such benefits transferred to or assumed by another company nor to be exchanged, cashed out or substituted for in connection with any corporation transaction affecting the shares of the Corporation; and

(j)neither the Corporation nor any Related Entity shall be liable for any exchange rate fluctuation between Participant’s local currency and the United States Dollar that may affect the value of the Restricted Stock Units or of any amounts due to Participant pursuant to the settlement of the Restricted Stock Units or the subsequent sale of any Shares acquired upon settlement.
3.Data Privacy.
(a)Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participant’s personal data as described in this Agreement and any other grant materials (“Data”) by and among, as applicable, the Corporation and any Related Entity for the exclusive purpose of implementing, administering and managing Participant’s participation in the Plan.
(b)Participant understands that the Corporation and any Related Entity may hold certain personal information about Participant, including, but not limited to, Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or directorships held in the Corporation, details of all Restricted Stock Units or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in Participant’s favor, for the exclusive purpose of implementing, administering and managing the Plan.
(c)Participant understands that Data may be transferred to E*Trade Financial Services, Inc. or such other stock plan service provider as may be selected by the Corporation in the future, which is assisting the Corporation with the implementation, administration and management of the Plan.  Participant understands that the recipients of the Data may be located in the United States, or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than Participant’s country.  Participant understands that Participant may request a list with the names and addresses of any potential recipients of the Data by contacting Participant’s local human resources representative.  Participant authorizes the Corporation, E*Trade Financial Services, Inc. and any other possible recipients which may assist the Corporation (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing Participant’s participation in the Plan.  Participant understands that Data will be held only as long as is necessary to implement, administer and manage Participant’s participation in the Plan.  Participant understands that Participant may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing Participant’s local human resources representative.  Further, Participant understands that Participant is providing the consents herein on a purely voluntary basis.  If Participant does not consent, or if Participant later revokes his or her consent, Participant’s service status with the Corporation or Related Entity will not be adversely affected; the only adverse consequence of refusing or withdrawing Participant’s consent is that the Corporation would not be able to grant Participant Restricted Stock Units or other equity awards or administer or maintain such awards.  Participant understands, however, that refusing or withdrawing Participant’s consent may affect Participant’s ability to participate in the Plan.  For more information on the consequences of Participant’s refusal to consent or withdrawal of consent, Participant understands that Participant may contact Participant’s local human resources representative.
4.Responsibility for Taxes.
(a)Regardless of any action the Corporation and/or any Related Entity take with respect to any or all Withholding Taxes related to Participant’s participation in the Plan and legally applicable to Participant, Participant acknowledges that the ultimate liability for all Withholding Taxes is and remains Participant’s responsibility and may exceed the amount actually withheld by the Corporation or any Related Entity.  Participant further acknowledges that the Corporation and/or any Related Entity (i) make no representations or undertakings regarding the treatment of any Withholding Taxes in connection with any aspect of the Award, including the grant, vesting or settlement of the Award, the issuance of Shares upon settlement of the Award, the subsequent sale of Shares acquired pursuant to such issuance and the receipt of any dividends and/or phantom dividend equivalents; and (ii) do not commit to, and are under no obligation to, structure the terms of the grant or any aspect of the Award to reduce or eliminate 

Participant’s liability for Withholding Taxes or achieve any particular tax result.  Further, if Participant has become subject to Withholding Taxes in more than one jurisdiction, Participant acknowledges that the Corporation and/or any Related Entity may be required to withhold or account for Withholding Taxes in more than one jurisdiction.
(b)Unless Participant elects to remit to the Corporation the amount of Withholding Taxes due in connection with the Award by submitting the election form to the Corporation within 45 days prior to the Normal Vesting Date,  the Corporation shall collect, and Participant authorizes the Corporation to collect, the Withholding Taxes with respect to the issued Shares through an automatic Share Withholding Method pursuant to which the Corporation will withhold, immediately as the Shares are issued under the Award, a portion of those Shares with a Fair Market Value (measured as of the issuance date) equal to the amount of such Withholding Taxes.  Participant shall be notified (in writing or through the Corporation’s electronic mail system) in the event the Corporation no longer intends to utilize the Share Withholding Method.
(c)Should any Shares become issuable under the Award at a time when the Share Withholding Method is no longer utilized, then the Withholding Taxes shall be collected from Participant through either of the following alternatives: 
•Participant’s delivery of his or her separate check payable to the Corporation in the amount of such Withholding Taxes or a wire transfer from Participant of sufficient funds to the Corporation to cover the amount of such Withholding Taxes, or
•the use of the proceeds from a next-day sale of the Shares issued or issuable to Participant, provided and only if (i) such a sale is permissible under the Corporation’s trading policies governing the sale of Common Stock, (ii) Participant makes an irrevocable commitment, on or before the issuance date for those Shares, to effect such sale of the Shares and (iii) the transaction is not otherwise deemed to constitute a prohibited loan under Section 402 of the Sarbanes-Oxley Act of 2002. 
(d)If the Share Withholding Method is to be utilized for the collection of Withholding Taxes, then the Corporation shall withhold the number of otherwise issuable Shares necessary to satisfy the applicable Withholding Taxes based on the applicable minimum withholding amount or other applicable withholding rate.  Participant shall have no right to the Common Stock equivalent of any Shares withheld to satisfy the applicable Withholding Taxes.    Participant may seek a refund from the applicable tax authorities for any over-withheld amount.   If the obligation for Withholding Taxes is satisfied by using the Share Withholding Method, for tax purposes, Participant will be deemed to have been issued the full number of Shares subject to the vested Award, notwithstanding that a number of the Shares are withheld solely for the purpose of paying the Withholding Taxes due as a result of Participant’s participation in the Plan.  Participant shall pay to the Corporation and/or any Related Entity any amount of Withholding Taxes that the Corporation and/or any Related Entity may be required to withhold or account for as a result of Participant’s participation in the Plan that cannot be satisfied by the means previously described.  The Corporation may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if Participant fails to comply with Participant’s obligations in connection with the Withholding Taxes.
(e)Notwithstanding the above, the Corporation shall collect the Withholding Taxes with respect to the distributed phantom dividend equivalents by withholding a portion of that distribution equal to the amount of the applicable Withholding Taxes, with the cash portion of the distribution to be the first portion so withheld.
5.Insider Trading Restrictions/Market Abuse Laws.  Depending on Participant’s country of residence, Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect Participant’s ability to acquire or sell Shares or rights to Shares (e.g., the Award) under the Plan during such times as Participant is considered to have “inside information” regarding the Corporation (as defined by the laws in Participant’s country).  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable insider trading policy of the Corporation.  Participant is solely responsible for ensuring compliance with any applicable restrictions and should consult a legal advisor in this regard.

6.Language.  If Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
    

Appendix C
Country-Specific Provisions
Terms and Conditions
This Appendix C includes special terms and conditions that govern the Restricted Stock Units granted to Participant if Participant resides in the countries listed herein.  Capitalized terms used but not defined herein shall have the meanings assigned to them in the Agreement (of which this Appendix C is a part) and the Plan. 
Notifications
This Appendix C may also include information regarding exchange controls and certain other issues of which Participant should be aware with respect to Participant’s participation in the Plan.  The information is based on the securities, exchange control and other laws in effect in the respective countries as of April 2014.  Such laws are often complex and change frequently.  As a result, the Corporation strongly recommends that Participant not rely on the information noted herein as the only source of information relating to the consequences of Participant’s participation in the Plan because the information may be out of date at the time Participant vests in the Restricted Stock Units or sells Shares he or she acquires under the Plan. 
In addition, the information is general in nature and may not apply to Participant’s particular situation, and the Corporation is not in a position to assure Participant of any particular result.  Accordingly, Participant is strongly advised to seek appropriate professional advice as to how the relevant laws in Participant’s country apply to his or her specific situation.
If Participant is a citizen or resident of another country, relocated to another country after the Award Date, or is considered a resident of another country for local law purposes, the information contained in this Appendix C may not be applicable to him or her.
Belgium
Notifications
Foreign Asset/Account Reporting Notification.  If Participant is a Belgian resident, Participant is required to report any security (e.g., Shares acquired under the Plan), bank or brokerage accounts held outside of Belgium on Participant’s annual tax return.  

Malta
Terms and Conditions
Securities Law Warning.  Participant acknowledges, understands and agrees that the Award, the Agreement, the Plan and all other materials Participant may receive regarding his or her participation in the Plan do not constitute advertising or an offering of securities in Malta and are deemed accepted by Participant only upon receipt of Participant’s electronic or written acceptance in the United States.  The issuance of the Shares under the Plan has not and will not be registered in Malta and, therefore, the Shares described in any Plan documents may not be offered or placed in public circulation in Malta.  
Participant further acknowledges, understands and agrees that in no event will Shares acquired upon vesting or settlement of the Award be delivered to Participant in Malta; all Shares acquired upon vesting or settlement of the Award will be maintained on Participant’s behalf in the United States.Ex. 10.102 - Janssen 3rd Amendment

Exhibit 10.102

[*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

THIRD AMENDMENT TO THE
LICENSE AND COLLABORATION AGREEMENT
This Third Amendment to the License and Collaboration Agreement (this “Third Amendment”) is made as of June 18, 2014 (the “Third Amendment Effective Date”), by and among Gilead Sciences, Inc., a corporation organized and existing under the laws of the State of Delaware and having its principal place of business at 333 Lakeside Drive, Foster City, California 94404 (“Gilead Parent”), Gilead Sciences Limited, a corporation existing under the laws of Ireland and wholly-owned subsidiary of Gilead Parent having its principal place of business at IDA Business & Technology Park, Carrigtohill, Co. Cork, Ireland (“Gilead Sub” and, collectively with Gilead Parent, “Gilead”) and Janssen R&D Ireland (formerly known as Tibotec Pharmaceuticals), a company organized and existing under the laws of Ireland, having its principal place of business at Eastgate Village, Eastgate, Little Island, County Cork, Ireland (“Janssen”).  Each of Gilead and Janssen is sometimes referred to individually herein as a “Party” and collectively as the “Parties.”
WHEREAS, Gilead and Janssen previously entered into that certain License and Collaboration Agreement, dated as of July 16, 2009 (as amended from time to time, the “Agreement”);
WHEREAS, Gilead and Janssen previously entered into that certain First Amendment to the Agreement, dated as of September 14, 2010 (the “First Amendment”);
WHEREAS, Gilead and Janssen previously entered into that certain original Second Amendment to the Agreement, dated as of July 1, 2011 (the “Original Second Amendment”);
WHEREAS, Gilead and Janssen previously entered into that certain Amended and Restated Second Amendment to the Agreement, dated as of February 7, 2013 (the “A&R Second Amendment”);
WHEREAS, Gilead and Janssen desire to amend the Agreement to modify the revenue share calculation for the United States for Triggering Sales on and after July 1, 2013 and for Limited Region A Revenue Share Exceptions (defined herein), Region B and Region C for Triggering Sales on and after January 1, 2014; and
WHEREAS, Gilead and Janssen further desire to amend certain other provisions of the Agreement as provided in this Amendment.
NOW THEREFORE, in consideration of the premises and the mutual covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

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SECTION 1.Additional Definitions.  The following new definitions shall be inserted into the Agreement:
“Canada Co-Detailing LOA” shall mean that certain Letter Agreement, dated as of November 30, 2011, by and between Gilead Sciences Canada, Inc. and Janssen Inc., setting forth principles for Detailing by Janssen, Inc. in Canada, as such agreement is amended from time to time.
“Co-Detailing LOA’s” shall mean, collectively, the Canada Co-Detailing LOA, the International Co-Detailing LOA and the U.S. Co-Detailing LOA.
“Commercialization Election” shall mean an election by either Party, as provided under Section 6.9(a), to engage in Commercialization Activities for the Combination Product (either by the Party making the election or through a Third Party Distributor) in a Non-Assigned Country.
“Data Sharing LOA” shall mean, collectively, (a) that certain Letter Agreement, dated as of March 21, 2011, by and between Tibotec Pharmaceuticals, Gilead Sciences, Inc., and Gilead Sciences Limited, and (b) that certain Letter Agreement, dated as of November 21, 2011, by and between Tibotec Pharmaceuticals, Gilead Sciences, Inc., and Gilead Sciences Limited, both (a) and (b), [*], as such agreement is amended from time to time.
“International Co-Detailing LOA” shall mean that certain Amended and Restated Letter Agreement, dated as of November 4, 2013, by and between Janssen R&D Ireland and Gilead Sciences, Inc., which sets forth Detailing principles for the Co-Detailing Territory (defined therein), as such agreement is amended from time to time.
“Limited Region A Revenue Share Exceptions” shall mean [*].
“NCP Exclusion LOA” shall mean that certain Letter Agreement, dated as of May 1, 2014, by and between Janssen R&D Ireland and Gilead Sciences, Inc., which sets forth certain inclusions and exclusions to the Net Component Price for certain countries.
“Revaluation Pre-Conversion Invoice” shall mean the invoice or credit note for revaluation of Pre-Conversion Invoices in accordance with Annex DD.
“Revenue Share Effective Date” shall mean the commencement date for application of the modifications to the calculation of the parties’ respective revenue shares made under this Third Amendment, which date shall be: (a) in the case of Triggering Sales in the United States, July 1, 2013 and (b) in the case of Triggering Sales in Region B, Region C, and the Limited Region A Revenue Share Exceptions, January 1, 2014.
“Revenue Share Effective Period” shall mean the period beginning on the Revenue Share Effective Date for the United States and ending on the last day of the month prior to the month when data described in Annex X, [*] is made available to the Parties.  For example, 

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if data described in Annex X relevant for the United States, which indicates that [*] immediately prior to when such data was made available.
“Second Amendment Effective Date” shall mean July 1, 2011.
“Tender Rules and Procedures Agreement” shall mean that certain agreement, dated as of November 25, 2011, by and between Tibotec Pharmaceuticals and Gilead Sciences, Inc., developed pursuant to Section 7.4(a)(ii)(D) of this Agreement.
“Third Amendment” shall mean that certain amendment to the Agreement dated as of the Third Amendment Effective Date.
“Third Amendment Effective Date” shall mean June 18, 2014.
“US Co-Detailing LOA” shall mean that certain Letter Agreement, dated as of August 16, 2011, by and between Gilead Sciences, Inc. and Janssen Products, LP, acting through its Janssen Therapeutics Division, setting forth Detailing responsibilities for Janssen Therapeutics Division in the United States, as such agreement is amended from time to time.
SECTION 2.    Expanded Existing Region Definition.  The definition of “Expanded Existing Region” is hereby replaced in its entirety with the following:
“Expanded Existing Region” shall mean the Existing Region, Russia and Mexico.
SECTION 3.    Limited Region A Definition.  The definition of “Limited Region A” is hereby replaced in its entirety with the following:
“Limited Region A” shall mean Region A, excluding Russia and Mexico.
SECTION 4.    Final TMC278 Invoice Definition.  The definition of “Final TMC278 Invoice” is hereby replaced in its entirety with the following:
“Final TMC278 Invoice” shall mean the invoice or credit note issued to Gilead or its designated Affiliate in accordance with this Agreement at the end of the applicable Calendar Year for the [*] as set forth in Annex N.
SECTION 5.    Ancillary Agreement.  The definition of “Ancillary Agreement” is hereby replaced in its entirety with the following:
“Ancillary Agreements” shall mean, collectively, any Janssen Distributor Agreement, the SDEA, the Quality Agreement(s) (provided that the Quality Agreement(s) shall be deemed to be Ancillary Agreements solely for the purpose of Sections 15 and 4.3(c)), the TMC278 Supply Agreement, the Co-Detailing LOA’s, the Data Sharing LOA, the NCP Exclusion LOA, the Tender Rules and Procedures Agreement, and any other agreement that is now or in the future designated in writing to be an Ancillary Agreement by the Parties.
SECTION 6.    Access Territory.

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The definition of “Access Territory” in the Agreement, and Section 2.6 and Annex D of the Agreement are hereby deleted in their entirety.
SECTION 7.    Actual Annual Yield Rate Definition.
The definition of “Actual Annual Yield Rate” in the Agreement is hereby deleted in its entirety.
SECTION 8.    Aided Physician Awareness Definition.
The definition of “Aided Physician Awareness” in the Agreement is hereby deleted in its entirety.
SECTION 9.    MA Holder.  The second sentence of Section 4.4(a) of the Agreement is hereby replaced in its entirety with the following:
Notwithstanding the foregoing, the Parties have agreed that Janssen, or its designated Affiliate or Third Party Distributor, will hold the marketing authorization with respect to the Combination Product in the Janssen Countries for which Annex AA specifies Janssen as the holder of the marketing authorization, or as otherwise provided by the mutual written agreement of the Parties.
SECTION 10.    Pre-Approval Order Fulfillment in Janssen Countries.  Section 6.1 is hereby amended by inserting the following as Sub-Section 6.1(e):
Pre-Approval Order Fulfillment in Janssen Countries.  Notwithstanding anything in this Section 6.1 to the contrary, in any country where Janssen is the Selling Party and Approval of the Combination Product has not yet been obtained, subject to the Parties’ mutual agreement in accordance with this Section 6.1(e), Gilead shall have the right to fulfill orders for the Territory Combination Product from such country made by certain Customers (including tenders and other government purchases) using Territory Combination Product with an appropriate label suitable for importation into such country.  For the first such order in a given country, the Parties shall negotiate in good faith to agree in writing on all material terms therefor (the “Initial Pre-Approval Order Agreement”).  For all subsequent orders in such country (whether or not such orders are placed by the same Customer as concerns the Initial Pre-Approval Order Agreement in such country) that are placed prior to the time that Approval of the Combination Product in such country is obtained and prior to delivery by Janssen of a Non-Commercialization Notice for such country pursuant to Section 6.9(a) (after which Section 6.9 shall apply),  Gilead shall promptly notify Janssen’s Alliance Manager of such orders.  Gilead may fulfill such orders for the Territory Combination Product according to the terms of the Initial Pre-Approval Order Agreement; provided, however, [*].  Notwithstanding the foregoing, Gilead shall set the price of all orders that it is permitted to fill under this Section 6.1(e) in its sole discretion and, unless the Parties agree otherwise as provided by this Section 6.1(e), revenue shall be shared from all such orders in accordance with Annex N, including [*] set forth therein; provided that for all such orders in a Janssen Country in Region A, upon the request of Gilead, [*] which shall be used to determine the 

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Parties’ respective revenue shares from such orders in accordance with Section C of Annex N in the same manner as if such country were a Gilead Country.  For the avoidance of doubt, however, Janssen shall remain the Selling Party for such country and Gilead shall not have any liability hereunder for a failure to fill such an order.
SECTION 11.    Specific Commercialization Obligations.
		
	(a)
	Section 6.2(b)(ii) is hereby replaced in its entirety with the following:

Reserved
		
	(b)
	The second sentence of Section 6.2(b)(iii) is hereby replaced in its entirety with the following:

Gilead shall [*] that may impact the ability of Gilead to fulfill such obligation.
(c)    Section 6.2(b)(iv) is hereby amended by replacing the words “subsections (i) through (iii)” with “subsections (i) and (iii)”.
(d)    Section 6.2(b)(v)(A) is hereby amended by inserting the word “and” at the end of such Section.
(e)    Section 6.2(b)(v)(B) is hereby deleted in its entirety.
SECTION 12.    Detailing in the Co-Detailing Territory.  Section 6.2 is hereby amended by inserting the following as Sub-Section 6.2(d):
The Parties acknowledge and agree that the Parties (or their Affiliates) currently have (or may in the future have) certain additional rights and obligations with respect to the Detailing of the Combination Product, as set forth in the Co-Detailing LOA’s for the applicable countries in each Co-Detailing LOA, or as may be set forth from time to time by other separate written agreements between the Parties.
SECTION 13.    Marketing Materials.
(a)    Local Promotional Materials.  The first sentence of Section 6.7(b) is hereby     replaced in its entirety with the following:
Except as otherwise provided in the Co-Detailing LOA’s, all advertising and promotional materials, if any, to be used in connection with the marketing and promotion, including Detailing, of the Territory Combination Product in a given country in the Territory (such advertising and promotional materials for each such country, the “Local Promotional Materials”) shall be developed by the Party using such materials at its cost and expense and shall be (i) consistent with the Key Selling Messages (if any), (ii) consistent with the Product Label and Insert for the Combination Product approved by the applicable Regulatory Authority, (iii) consistent with Applicable Law, and (iv) in the case of Janssen, consistent 

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with the branding guidance provided by Gilead from time to time, with deviation solely to the extent required by Applicable Law.
(b)    Regulatory Approval for Promotional Materials.  Section 6.7(c) is hereby     replaced in its entirety with the following:
For clarity, in any interactions with a Regulatory Authority with respect to the Local Promotional Materials, the allocation of the Parties’ rights and responsibilities shall be as set forth in Section 4.4, except as otherwise provided in the Co-Detailing LOA’s, or in any other written agreement between the Parties.
SECTION 14.    Abandonment of Countries.  Section 6.9 is hereby replaced in its entirety with the following:
(a)    Abandonment of Countries.  Without limiting the obligations of the Selling Party pursuant to Sections 6.2 and 6.6 (and without limiting any rights or remedies the non-Selling Party may have in connection with a failure of the Selling Party to comply with such obligations), in the event the Selling Party determines, in its sole discretion, to abandon all Commercialization Activities (or not to file for Approval in the Field) for the Combination Product in a country in the Territory, the Selling Party shall promptly notify the other Party of such determination in writing, which notice shall include a reasonable description (including, supporting data, if applicable) of the justifications for such determination (each, a “Non-Commercialization Notice”).  Upon such notification, such country shall be deemed a “Non-Assigned Country” and neither Party shall be deemed the Selling Party with respect to such country.  This right to abandon all Commercialization Activities (or not to file for Approval of the Combination Product in the Field) shall not apply to any Major Market.  Thereafter, the non-Selling Party shall have the right, but not the obligation, to make a Commercialization Election with respect to such country by delivery of written notice to the other Party within [*] after receipt of the applicable Non-Commercialization Notice or thereafter as described below.  For any Commercialization Election under this Section 6.9(a) by Janssen, Gilead shall have the right to consent to any designation of Janssen as the Selling Party, such consent not to be unreasonably withheld (unless the country requested by Janssen is a Designated Country, in which case, Gilead may withhold its consent in its sole discretion); and provided, however, that if such Designated Country is in the European Union and the Combination Product has been launched in such country, then the Parties shall discuss in good faith the conditions under which Janssen (or its Affiliates) might assume responsibility for Commercialization Activities in such country.  Subject to such consent right, in the event a Party makes the Commercialization Election for a country, then for purposes of this Agreement (and any Ancillary Agreement), such Party shall thereafter be deemed to be the Selling Party with respect to such country, such country shall no longer be deemed a Non-Assigned Country and shall be deemed a Gilead Country or a Janssen Country, as applicable, and in each case, to the extent applicable, the Parties shall work together in good faith to effectuate the transfer of responsibilities in connection with the foregoing to the other Party or a Third Party Distributor.  For any Non-Assigned Country, the original non-Selling Party shall have the exclusive right to make the Commercialization 

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Election within the [*] period specified above in this Section 6.9(a).  If the original non-Selling Party does not provide notice of such Commercialization Election during such [*] period or provides written notice to the other Party that it does not wish to make the Commercialization Election in such country, then either Party shall have the right, but not the obligation, to make the Commercialization Election for such Non-Assigned Country; provided, however, that, in this case, if the original non-Selling Party for such country provides such Commercialization Election notice, then the original Selling Party shall, for [*] following its receipt of such notice, have the first right to make the Commercialization Election and be deemed the Selling Party, and otherwise the original non-Selling Party shall become the Selling Party under this Agreement.  For purposes of this Section 6.9(a), the original Selling Party is indicated in the second column of Annex AA and the original non-Selling Party shall be the Party that is not indicated to be the original Selling Party.
(b)    Order Fulfillment in Non-Assigned Countries.  If Janssen delivers a Non-Commercialization Notice for a country for which it is the Selling Party as provided in Section 6.9(a), for the period that such country is a Non-Assigned Country, Gilead shall have the right to fulfill orders for the Territory Combination Product from such country made by certain Customers (including tenders and other government purchases) using Territory Combination Product with an appropriate label suitable for importation into such country and at a price set by Gilead.  Unless the Parties agree otherwise, revenue shall be shared from all orders under this Section 6.9(b) in accordance with Annex N, including the true-up provisions set forth therein; provided that for all such orders in a Janssen Country in Region A, upon the request of Gilead, Janssen shall convey to the Discount Committee the [*] which shall be used to determine the Parties’ respective revenue shares from such orders in accordance with Section C of Annex N in the same manner as if such country were a Gilead Country.  For the avoidance of doubt, however, Gilead shall not have any liability hereunder for a failure to fill such an order.
SECTION 15.    Price Approval Countries.
		
	(a)
	Minimum Target Price.  The last sentence of Section 7.3(c)(i) is hereby replaced in its entirety with the following:

At Launch and thereafter, unless modified as below, the Country Price for the Territory Combination Product shall be the Approved Price for Price Approval Countries.
		
	(b)
	Base Price Setting.  Section 7.4(a)(i) is hereby amended by inserting the following sentence at the end of such Section:

If the Approved Price for the Territory Combination Product is different than the Base Price in a Price Approval Country, then notwithstanding the other provisions of this Section 7.4(a)(i), the Selling Party shall sell at such Approved Price, unless a discount is permitted pursuant to this Agreement or an Ancillary Agreement.  For purposes of a Price Approval Country, a Discounted Price shall mean any price that is lower than the Approved Price for the Territory Combination Product.  For purposes of Annex R, for Price Approval Countries, references to the “Base Price” shall be references to the “Approved Price”.

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SECTION 16.    Financial Records and Audit.  The first sentence of Section 12.2(b) is hereby replaced in its entirety with the following:
Unless otherwise agreed by the Parties in writing, the Parties shall engage an Independent Accounting Expert to confirm, for each Calendar Year during the term of this Agreement, the accuracy of (i) any calculation by the Discount Committee, (ii) any pricing or discounting information provided to the Discount Committee or to either Party by the other Party pursuant to Section 7.4 or Annex R, (iii) any information of a Party or its Affiliates that is required to determine that the DCPs provided by such Party comply with the terms of this Agreement (including, for any Calendar Quarter up to and including the [*]), (iv) the calculation of the TCP Final Supply Price for Major Market Combination Product Delivered for the Janssen Countries [*]), (v) the calculation of the Limited Region A TMC278 Annual True Up for Territory Combination Product with respect to the applicable Gilead Countries in the Limited Region A and the component calculations thereof, including the determination of the [*] for such Gilead Countries, (vi) the calculation of the [*], (vii) the calculation of the Post-Conversion Supply Price for the Gilead Countries in all Regions and (viii) the calculation of the TCP Actual Supply Price for the Janssen Countries in Region B and Region C; provided, however, that the foregoing shall not permit either Party to audit any Third Party Component Distributor, such audit being permitted solely as and to the extent provided in Section 12.2(c).
SECTION 17.    Audit; Independent Accounting Expert.
(a)    Consequences of Inaccurate DCPs and Component Prices.  Section 12.2(e)(i) is hereby replaced in its entirety with the following:
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN THE CASE OF THE EXPANDED EXISTING REGION, OTHER THAN THE UNITED STATES WITH RESPECT TO THE NET SELLING PRICE OF THE STAND-ALONE PRODUCTS DURING THE REVENUE SHARE EFFECTIVE PERIOD, (A) NEITHER PARTY SHALL HAVE ANY LIABILITY TO THE OTHER PARTY FOR DAMAGES AND (B) NO ADJUSTMENTS SHALL BE MADE PURSUANT TO SECTION 12.2(i), IN EITHER CASE DUE TO THE PROVISION OF INACCURATE PRICING OR DISCOUNT INFORMATION TO THE DISCOUNT COMMITTEE (OR, FOR ANY CALENDAR QUARTER UP TO AND INCLUDING THE [*]), EXCEPT TO THE EXTENT THAT SUCH BREACH OR LACK OF COMPLIANCE AROSE FROM THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF SUCH PARTY OR ITS AFFILIATES.
(b)    Consequences of Inaccurate DCPs and Component Prices.  Section 12.2(e)(ii) is hereby replaced in its entirety with the following:
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN THE CASE OF LIMITED REGION A (EXCLUDING THE LIMITED REGION A REVENUE SHARE EXCEPTIONS ON AND AFTER THE REVENUE SHARE EFFECTIVE DATE THEREFOR) AND, PRIOR TO THE REVENUE SHARE EFFECTIVE DATE 

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THEREFOR, REGION B AND REGION C, (A) THE SELLING PARTY SHALL HAVE NO LIABILITY TO THE NON-SELLING PARTY FOR DAMAGES AND (B) [*].
(c)    Adjustments.  The first sentence of Section 12.2(i)(i) is hereby replaced in its entirety with the following:
The following shall apply to the Expanded Existing Region, excluding the United States during the Revenue Share Effective Period:  Except as otherwise provided in Section 12.2(e), in the event that the Independent Accounting Expert determines, pursuant to this Section 12.2, that any Party provided any inaccurate information, the Parties shall coordinate to recalculate any amounts due hereunder or under any Ancillary Agreement based on the corrected data, as provided by the Independent Accounting Expert, and to make any payments that may be required to ensure that costs and expenses and revenues are shared in accordance with such recalculations (and the other applicable terms of this Agreement or such Ancillary Agreement); provided, however, that if either Party provided inaccurate pricing or discount information to the Discount Committee (or, for any Calendar Quarter up to and including the [*] due to its or any of its Affiliates’ gross negligence or intentional misconduct, and such inaccurate information (or non-compliant DCP) resulted in a higher selling price for the Combination Product than would have been permitted hereunder had the proper information (or DCP) been provided, then with respect to any Triggering Sales of Combination Product that were sold at a higher price that reflected such inaccurate price information of such Party (or non-compliant DCP), the Parties’ respective revenue shares shall be adjusted as follows:  the Selling Party shall determine, for the Units of Combination Product sold in such Triggering Sales (the “At-Issue Units”), (a) [*]).
(d)    Adjustments.  Section 12.2(i)(ii) is hereby replaced in its entirety with the following:
The following shall apply to the United States during the Revenue Share Effective Period, Limited Region A, Region B and Region C:  Except as otherwise provided in Section 12.2(e), in the event that it is determined, pursuant to this Section 12.2, that any Party provided any inaccurate information, including that with regards to the Net Selling Price of the Party’s Stand-Alone Product in the United States, the Parties shall coordinate to recalculate any amounts due hereunder or under any Ancillary Agreement based on the corrected data, as has been determined pursuant to this Section 12.2, and to make any payments that may be required to ensure that costs and expenses and revenues are shared in accordance with such recalculations (and the other applicable terms of this Agreement or such Ancillary Agreement).
SECTION 18.    Medicaid.
(a)    Revenue Share.  Section 7.4(a)(ii)(C)(6) of the Agreement is hereby replaced in its entirety with the following:
Revenue Share.  For the avoidance of doubt, each Party’s share of revenues from Medicaid Sales to a Customer that is a Medicaid entity shall be determined in accordance with Section A of Annex N.

9

(b)    Rebates to Medicaid Customers.  Section 7.4(a)(ii)(C)(4) of the Agreement is hereby replaced in its entirety with the following:
Rebates to Medicaid Customers.  Gilead shall provide to Customers that are Medicaid entities any required Medicaid discounts for the Combination Product.
(c)    [*].  Section 7.4(a)(ii)(C)(5) of the Agreement is hereby replaced in its entirety with the following:
[*]
SECTION 19.    Modified Pricing.  Section 7.4(f) of the Agreement is hereby replaced in its entirety with the following:
(f)    Shared Revenue Reduction Events.
With respect to Triggering Sales for which the Parties’ respective shares of revenue hereunder is based on the Parties’ respective DCPs (i.e., the Expanded Existing Region, but excluding the United States during the Revenue Share Effective Period), this clause (f) shall apply:  In the event and to the extent that (i) any Mandatory Reduction occurs as contemplated by Section 7.3(c)(iv), or (ii) a government purchaser imposes a purchase price for the Territory Combination Product that is lower than the Base Price with respect to such purchaser pursuant to Section 7.4(e) (each, a “Revenue Reduction Event”), then each Party’s DCP for Territory Combination Product sales affected by the Revenue Reduction Event shall be [*]
SECTION 20.    Annex G.  Calculation of Net Sales and Net Selling Prices.  The third sentence in Paragraph 1 of Annex G is hereby replaced in its entirety with the following:
Any of the deductions listed above that involves a payment by such Party shall not be taken as a deduction prior to the date accrued in accordance with GAAP.
SECTION 21.    Annex EE.  Letter Agreement Regarding Marketing Authorization for Combination Product.
Annex EE of the Agreement is hereby deleted in its entirety.
SECTION 22.    Annexes  A-1, A-2, F, L, M, N, P, Q, V, Y, AA, BB, CC and DD.  Each of Annexes A-1, A-2, F, L, M, N, P, Q, V, Y, AA, BB, CC and DD are hereby replaced in their entirety with the attached Exhibits A-1, A-2, F, L, M, N, P, Q, V, Y, AA, BB, CC and DD, respectively.
SECTION 23.    Definitions.  All capitalized terms used, but not defined, in this Third Amendment shall have their respective meanings set forth in the Agreement.

10

SECTION 24.    Construction.  The principles set forth in Section 20.12 of the Agreement shall apply to this Third Amendment.
SECTION 25.    Effective Date; Incorporation of Terms; Continuing Effect.  Except to the extent otherwise expressly provided in this Third Amendment, this Third Amendment shall be deemed effective for all purposes as of the Third Amendment Effective Date.  The amendment set forth in this Third Amendment shall be deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Third Amendment shall be read, taken and construed as one and the same agreement (including with respect to the provisions set forth in Section 20 (General Provisions) of the Agreement which shall, as applicable, be deemed to apply to this Third Amendment (including with respect to the governing law)).  Except as otherwise expressly amended by this Third Amendment, the Agreement shall remain in full force and effect in accordance with its terms and conditions.
SECTION 26.    Entire Agreement.  The Agreement, as expressly amended by this Third Amendment, shall constitute the entire agreement, and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter of the Agreement, except that the Parties agree that no letter agreements between the Parties relating to the Agreement are intended to be superseded except (a) the letter dated July 23, 2013 relating to certain revenue sharing issues and (b) the letter agreement dated February 7, 2013 relating to the holder of the marketing authorization for Territory Combination Product, both of which are hereby superseded.
SECTION 27.    Counterparts.  This Third Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which, taken together, shall constitute one and the same instrument.

[Remainder of page intentionally left blank]

11

IN WITNESS WHEREOF, the parties, intending to be bound, have caused this Third Amendment to be executed on their behalf by their duly authorized agent as of the day and year first above written.
	
		
	JANSSEN R&D IRELAND

	By:
	 
/s/ Margaret Dulea             
Name: Margaret Dunlea

Title:   Managing Director

	Date:
	June 18, 2014

Signature Page to the Third Amendment

	
		
	GILEAD SCIENCES, INC.

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

Title:   President and Chief Operating Officer

	Date:
	 
June 18, 2014   

	GILEAD SCIENCES LIMITED

	By:

 
Date:
	 
/s/ John F. Milligan   
Name: John F. Milligan, Ph.D.

Title:   Director 
 
June 18, 2014   

Signature Page to the Third Amendment

Exhibit A-1
Annex A-1:  Gilead Licensed Trademarks
Janssen Countries

	
						
	COUNTRY

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Annex A-1  Page 1

	
						
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Annex A-1  Page 2

[*]

	
						
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*A European Union trademark registration is fully enforceable in all 28 member countries of the European Union, that is, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden and United Kingdom

Annex A-1  Page 3

Exhibit A-2

Annex A-2:  Janssen Licensed Trademarks
Gilead Countries
	
		
	 
	EDURANT

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Annex A-2  Page 1

	
		
	 
	EDURANT

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Annex A-2  Page 2

	
		
	 
	EDURANT

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Annex A-2  Page 3

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

Required Minimum Details

1.    Minimum Details.  For each Major Market, for each applicable Detailing Year, through the Calendar Quarter that includes the last day of the Launch Period, Gilead shall perform the number of Details of the Combination Product in such Major Market as set forth below (which amounts shall be prorated for any partial Detailing Year):

i.United States        [*]
ii.France            [*]
iii.Germany            [*]
iv.Italy                [*]
v.Spain            [*]
vi.United Kingdom        [*]

The Minimum Details obligations set forth in this Section for the following countries shall apply retroactively to periods prior to the Third Amendment Effective Date:  (a) for [*], the Minimum Details obligation of [*] shall apply retroactively beginning with the first Calendar Quarter of 2014; prior to that, a Minimum Details obligation of [*] applied retroactively beginning with the fourth Calendar Quarter of 2012; and (b) for [*], the Minimum Details obligation shall apply retroactively beginning with the first Calendar Quarter of 2012.

2.    Records and Reports.  Gilead shall require its sales representatives who Detail the Combination Product to keep records of their Detailing efforts in accordance with industry standards for the applicable Major Market and sufficient to determine whether or not the required number of Details are achieved and that the requirements of Section 6.2(b)(iii) are satisfied.  Within thirty (30) days after the end of each Detailing Year, Gilead shall provide Janssen with a written report stating the number of Details for each Major Market.

3.    Audit.  Notwithstanding any provision of Section 12 to the contrary, with reasonable advance notice and not more often than once each Calendar Year for each Major Market, Janssen may audit Gilead’s records in order to verify (a) the number of Details in each Calendar Quarter of a Detailing Year made by Gilead in a Major Market applicable to meeting the requirements of this Annex F and (b) whether or not the other requirements of Section 6.2(b)(iii) are satisfied.  Any such audit shall be conducted during normal business hours at Gilead’s facilities by a reputable independent Third Party selected by Janssen and reasonably acceptable to Gilead (the “Auditor”).  Such Auditor shall sign a confidentiality agreement in a form reasonably satisfactory to Gilead, and shall not disclose to Janssen or any other person any information, except the number of Details made by Gilead per Major Market for each applicable quarter of a Detailing 

Annex F  Page 1

Year determined by such audit, and the Auditor’s findings as to whether or not the other requirements of Section 6.2(b)(iii) are satisfied.  Such audit shall be at Janssen’s expense, unless the Auditor determines (absent manifest error on the part of the Auditor) that Gilead incorrectly over-reported (i) the number of Details made by Gilead for a particular Major Market and Detailing Year and did not meet the number of Details required for such Major Market and Detailing Year, and/or (ii) meeting the requirements of Section 6.2(b)(iii), in either of which cases Gilead shall be responsible for reimbursing Janssen for the fees and expenses charged by the Auditor in connection with such audit that are applicable to such Major Market and Detailing Year.
    

Annex F  Page 2

CONFIDENTIAL

Exhibit L
Annex L:  Annual Adjustments to Account for Actual Yield

Section 1 of this Annex L shall apply retroactively to the Effective Date.  Capitalized terms not defined in this Annex shall have the meanings set forth in the agreement to which this Annex is attached (the “Agreement”).

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

		
	2.
	For each Calendar Year, no later than thirty (30) days after the applicable notification is provided pursuant to Paragraph 1 of this Annex L, (a) Gilead shall adjust its balance sheet (e.g., inventory of Supplied TMC278 and accounts payable) and (b) Janssen shall adjust its balance sheet (e.g., accounts receivable and deferred revenue), in each case (a) and (b), to reflect the Quantity Differential moved into or out of Gilead’s inventory multiplied by the Pre-Conversion Supply Price for the Calendar Year then-ended. 

		
	3.
	For clarification, there shall be no Post-Conversion Invoice issued and no Additional Supply Price paid by Gilead with respect to Combination Product sold in the Janssen Countries.  

 

Annex L  Page 1

CONFIDENTIAL

Exhibit M
Annex M:  Payment Terms for TMC278 Invoices 

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

A.Gilead Countries in the Expanded Existing Region
For the avoidance of doubt, references to the Region in this Section A are deemed to mean the Gilead Countries in the Expanded Existing Region.
A.1.    Determination of the Annual Forecast Payment Term
No later than November 15th of each Calendar Year (in conjunction with the establishment of the Pre-Conversion Supply Price), Gilead shall propose, for the upcoming Calendar Year with respect to the Gilead Countries of the Region a payment term for the payment of TMC278 Invoices (the “Annual Forecast Payment Term”) in the Region.  Gilead shall provide Janssen with a basis for its proposed payment term, which shall reflect [*]

Annex M  Page 1

CONFIDENTIAL

B.    Limited Region A Gilead Countries, Excluding Limited Region A Revenue     Share Exceptions
		
	i.
	The term “Region” as used in this Section B shall refer to the Gilead Countries in Limited Region A, excluding Limited Region A Revenue Share Exceptions on and after the Revenue Share Effective Date therefor.  [*]

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

Annex M  Page 2

CONFIDENTIAL

[*]

Annex M  Page 3

CONFIDENTIAL

C.    Region B and Region C Gilead Countries and Limited Region A Revenue Share     Exceptions
The term “Region” as used in this Section C shall refer, on and after the Revenue Share Effective Date therefor, to the Gilead Countries in both Region B and Region C and the Limited Region A Revenue Share Exceptions, collectively.  [*] 

D.    Region A Janssen Countries and, Prior to the Revenue Share Effective Date,     Region B and Region C Janssen Countries
The term “Region” as used in this Section D shall collectively refer to the Janssen Countries in Region A and, prior to the Revenue Share Effective Date therefor, the Janssen Countries in both Region B and Region C.  [*] 

Such Pre-Conversion Invoice due date shall be [*]

For the avoidance of doubt, there shall be no Post-Conversion Invoices issued and no Additional Supply Price paid by Gilead with respect to Combination Product sold, in accordance with the terms of this Agreement, in the Region A Janssen Countries and, prior to the Revenue Share Effective Date, the Region B and Region C Janssen Countries.

E.    Region B and Region C Janssen Countries (on and after the Revenue Share     Effective Date therefor)
The term “Region” as used in this Section E shall collectively refer to, on and after the Revenue Share Effective Date therefor, the Janssen Countries in both Region B and Region C.  [*]

For the avoidance of doubt, there shall be no Post-Conversion Invoices issued and no Additional Supply Price paid by Gilead with respect to Combination Product sold, in accordance with the terms of this Agreement, in the Region B or Region C Janssen Countries on and after the Revenue Share Effective Date therefor.    

Annex M  Page 9

CONFIDENTIAL

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

This amended Exhibit N applies to all Triggering Sales on or after the applicable Revenue Share Effective Date for the applicable Region or Country; the prior Exhibit N shall apply for any Triggering Sales prior to such date.

A.    The Gilead Countries in the Expanded Existing Region
For purposes of this Section A, Region shall mean the Gilead Countries in the Expanded Existing Region.

A.1.    Post-Conversion Supply Price

The Post-Conversion Supply Price for a given month (per kilogram of Supplied TMC278) with respect to the Region shall equal:
	
	
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Annex N  Page 1

CONFIDENTIAL

[*]

Annex N  Page 2

CONFIDENTIAL

A.2.    Calculation of [*]

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Annex N  Page 3

CONFIDENTIAL

An example of the calculation of the [*] in the Limited Region A Revenue Share Exceptions and Gilead Countries in Region B and Region C is below.

[*]

Annex N  Page 4

CONFIDENTIAL

B.    Janssen Countries
For the avoidance of doubt, [*].
C.    Gilead Countries in Limited Region A
C.1.    Post-Conversion Supply Price
The term “Region” as used in this Section C.1 shall refer to the Gilead Countries in Limited Region A, except that such term shall not include the Limited Region A Revenue Share Exceptions on and after the Revenue Share Effective Date therefor.
The Post-Conversion Supply Price for a given Calendar Year (per kilogram of Supplied TMC278) with respect to the Region shall equal:
	
	
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An example of the calculation of the Post-Conversion Supply Price based on certain estimates with respect to TMC278 in the Gilead Countries in the Limited Region A is included below.

Annex N  Page 5

CONFIDENTIAL

[*]

Annex N  Page 6

CONFIDENTIAL

C.2.    Limited Region A TMC278 Annual True Up; Pre Revenue Share Effective Date True Up for Regions B and C.
The following adjustment (the “Limited Region A TMC278 Annual True Up”) shall be performed separately for (i) the Gilead Countries in Limited Region A (excluding the Limited Region A Revenue Share Exceptions) for all periods and (ii) solely for the purpose of conducting a true up for Triggering Sales of Territory Combination Product therein prior to the Revenue Share Effective Date therefor, the Gilead Countries in Region B and Region C and the Limited Region A Revenue Share Exceptions (each of (i) and (ii),  a “Region” for purposes of this Section).
[*]

Annex N  Page 7

CONFIDENTIAL

An example of the calculation of the Limited Region A TMC278 Annual True Up in the Limited Region A is included below.
[*]

Annex N  Page 8

CONFIDENTIAL

D.    Gilead Countries in Region B and Region C and Limited Region A Revenue Share     Exceptions
The term “Region” as used in this Section D shall refer to the Gilead Countries in both Region B and Region C and the Limited Region A Revenue Share Exceptions, on and after the Revenue Share Effective Date therefor, collectively.  For clarity, the Post-Conversion Supply Price and the US TMC278 Ratio True Up for the Region shall be calculated for all Gilead Countries in the Region collectively.
D.1.    Post-Conversion Supply Price
The Post-Conversion Supply Price for a given month (per kilogram of Supplied TMC278) with respect to the applicable Gilead Country shall equal:
	
	
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Annex N  Page 9

CONFIDENTIAL

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

[*]

Annex N  Page 10

CONFIDENTIAL

D.2.    Calculation of [*]

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Annex N  Page 11

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

Estimated Yield Rate 

The Estimated Yield Rate with respect to Supplied TMC278 for a given Calendar Year shall be as mutually agreed by the Parties, taking into account relevant factors, including [*].  If the Parties are unable to agree on an Estimated Yield Rate for a given Calendar Year by the preceding September 30, the dispute shall be referred for resolution to the Manufacturing Executives (as defined below).  If the Manufacturing Executives are unable to reach agreement on such Estimated Yield Rate within ten (10) Business Days after such referral, then such dispute shall constitute an Arbitration Matter and the arbitrator shall determine the Estimated Yield Rate for such Calendar Year based on the foregoing principles and following any such determination the Estimated Yield Rate determined by the arbitrator shall be binding on the Parties for such Calendar Year.   

The Estimated Yield Rate shall be used in the calculation of the Post-Conversion Supply Price for such Calendar Year.

“Manufacturing Executives” shall mean (a) with respect to Janssen, a Senior Vice President of Pharmaceutical Manufacturing or any direct report designated by the foregoing and (b) with respect to Gilead, Gilead Parent’s Senior Vice President of Manufacturing or any direct report designated by the foregoing.

Annual Yield Rate

[*]

Annex P – Page 1

Exhibit Q
Annex Q:  Additional Financial Reporting

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

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

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

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

A.    [*]

Annex Q – Page 1

[*]

Annex Q – Page 2

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

	
			
	[*]
	 
	 

	[*]

	 
	 
	 

	[*]
	 
	[*]

	 
	 
	 

	[*]
	 
	[*]

	[*]
	 
	[*]

	 
	 
	 

	[*]
	 
	 

	[*]
	 
	[*]

	[*]
	 
	[*]

	[*]
	 
	[*]

	[*]
	 
	[*]

	[*]
	 
	[*]

	[*]
	 
	[*]

	[*]
	 
	[*]

	[*]
	 
	[*]

	[*]
	 
	[*]

Annex Q – Page 3

Exhibit V
[*]

[*]

Annex V  Page 1

[*]

Annex V  Page 2

[*]

Annex V  Page 3

[*]

Annex V  Page 4

Annex V  Page 5

[*]

Annex V  Page 6

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

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

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

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

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

		
	3.
	The following shall apply to Price Approval Countries in Limited Region A other than Limited Region A Revenue Share Exceptions.  If, following the Launch of the Territory Combination Product in any such country, [*]

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

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

Annex Y – Page 1

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

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

Annex Y – Page 2

Exhibit AA
Annex AA:  Selling Party and Country List for Region A, Region B and Region C
This list shall automatically include any country that is derived from the territory of a country listed below (for example, the independent country of Southern Sudan from Sudan).  For clarity, the column entitled “Janssen as Holder of Marketing Authorization” indicates for each country whether Janssen holds the Marketing Authorization in accordance with Section 4.4(a) of the Agreement.
	
				
	Region A
	 
	 

	Country
	Original Selling Party
(Prior to April 25. 2014)
	Selling Party
(As of April 25, 2014 and as of the Third Amendment Effective Date)
	Janssen as Holder of Marketing Authorization

	Albania
	Gilead
	Gilead
	No

	Argentina
	Gilead
	Gilead
	No

	Bahrain
	Janssen
	Non-Assigned
	No

	Bosnia-Herzegovina
	Gilead
	Gilead
	No

	Chile
	Gilead
	Gilead
	No

	Colombia
	Gilead
	Gilead
	No

	Costa Rica
	Gilead
	Gilead
	No

	FYR Macedonia
	Gilead
	Gilead
	No

	Hong Kong
	Janssen
	Janssen
	Yes

	Israel
	Janssen
	Janssen
	Yes

	Japan
	Janssen
	Janssen
	Yes

	Kosovo
	Gilead
	Gilead
	No

	Kuwait
	Janssen
	Non-Assigned
	No

	Lebanon
	Janssen
	Janssen
	Yes

	Macau
	Janssen
	Janssen
	Yes

	Malaysia
	Janssen
	Janssen
	Yes

	Mexico
	Janssen
	Janssen
	Yes

	Montenegro
	Gilead
	Gilead
	No

	Oman
	Janssen
	Non-Assigned
	No

	Qatar
	Janssen
	Non-Assigned
	No

	Russia
	Janssen
	Janssen
	No

	Saudi Arabia
	Janssen
	Non-Assigned
	No

	Serbia
	Gilead
	Gilead
	No

	Singapore
	Janssen
	Janssen
	Yes

	South Korea
	Janssen
	Janssen
	Yes

	Taiwan
	Janssen
	Janssen
	Yes

	United Arab Emirates
	Janssen
	Non-Assigned
	No

	Uruguay
	Gilead
	Gilead
	No

	Venezuela
	Gilead
	Gilead
	No

Annex AA – Page 1

	
				
	Region B
	 
	 

	 
	 
	 
	 

	Country
	Original Selling Party
(Prior to April 25. 2014)
	Selling Party
(As of April 25, 2014 and as of the Third Amendment Effective Date)
	Janssen as Holder of Marketing Authorization

	Algeria
	Janssen
	Janssen
	Yes

	Azerbaijan
	Janssen
	Janssen
	Yes

	Belarus
	Janssen
	Janssen
	Yes

	Cayman Islands
	Gilead
	Gilead
	No

	Curacao
	Gilead
	Gilead
	No

	China (Mainland)
	Janssen
	Janssen
	No

	Egypt
	Janssen
	Janssen
	Yes

	Iran
	Janssen
	Non-Assigned
	No

	Iraq
	Janssen
	Non-Assigned
	No

	Jordan
	Janssen
	Janssen
	Yes

	Libya
	Janssen
	Janssen
	Yes

	Morocco
	Janssen
	Non-Assigned
	No

	Panama
	Gilead
	Gilead
	No

	Paraguay
	Gilead
	Gilead
	No

	Peru
	Gilead
	Gilead
	No

	Philippines
	Janssen
	Janssen
	Yes

	Sint Maarten
	Gilead
	Gilead
	No

	Tunisia
	Janssen
	Non-Assigned
	No

	Ukraine
	Janssen
	Janssen
	Yes

Annex AA – Page 2

	
				
	Region C
	 
	 

	 
	 
	 
	 

	Country
	Original Selling Party
(Prior to April 25. 2014)
	Selling Party
(As of April 25, 2014 and as of the Third Amendment Effective Date)
	Janssen as Holder of Marketing Authorization

	Afghanistan
	Janssen
	Non-Assigned
	No

	Angola
	Janssen
	Non-Assigned
	No

	Anguilla
	Gilead
	Gilead
	No

	Antigua and Barbuda
	Gilead
	Gilead
	No

	Armenia
	Janssen
	Janssen
	Yes

	Aruba
	Gilead
	Gilead
	No

	Bahamas
	Gilead
	Gilead
	No

	Bangladesh
	Janssen
	Non-Assigned
	No

	Barbados
	Gilead
	Gilead
	No

	Belize
	Gilead
	Gilead
	No

	Benin
	Janssen
	Non-Assigned
	No

	Bhutan
	Janssen
	Non-Assigned
	No

	Bolivia
	Gilead
	Gilead
	No

	Botswana
	Janssen
	Gilead
	No

	British Virgin Islands
	Gilead
	Gilead
	No

	Burkina Faso
	Janssen
	Non-Assigned
	No

	Burundi
	Janssen
	Non-Assigned
	No

	Cambodia
	Janssen
	Non-Assigned
	No

	Cameroon
	Janssen
	Non-Assigned
	No

	Cape Verde
	Janssen
	Non-Assigned
	No

	Central African Republic
	Janssen
	Non-Assigned
	No

	Chad
	Janssen
	Non-Assigned
	No

	Comoros
	Janssen
	Non-Assigned
	No

	Congo
	Janssen
	Non-Assigned
	No

	Congo, Dem. Rep. of the
	Janssen
	Non-Assigned
	No

	Cote d'Ivoire
	Janssen
	Non-Assigned
	No

	Cuba
	Gilead
	Gilead
	No

	Djibouti
	Janssen
	Non-Assigned
	No

	Dominica
	Gilead
	Gilead
	No

	Dominican Republic
	Gilead
	Gilead
	No

	Ecuador
	Gilead
	Gilead
	No

	El Salvador
	Gilead
	Gilead
	No

	Equatorial Guinea
	Janssen
	Non-Assigned
	No

	Eritrea
	Janssen
	Non-Assigned
	No

	Ethiopia
	Janssen
	Non-Assigned
	No

	Fiji
	Janssen
	Non-Assigned
	No

Annex AA – Page 3

	
				
	Gabon
	Janssen
	Non-Assigned
	No

	Gambia
	Janssen
	Non-Assigned
	No

	Georgia
	Janssen
	Non-Assigned
	No

	Ghana
	Janssen
	Non-Assigned
	No

	Grenada
	Gilead
	Gilead
	No

	Guatemala
	Gilead
	Gilead
	No

	Guinea
	Janssen
	Non-Assigned
	No

	Guinea-Bissau
	Janssen
	Non-Assigned
	No

	Guyana
	Gilead
	Gilead
	No

	Haiti
	Gilead
	Gilead
	No

	Honduras
	Gilead
	Gilead
	No

	India
	Janssen
	Non-Assigned
	No

	Indonesia
	Janssen
	Non-Assigned
	No

	Jamaica
	Gilead
	Gilead
	No

	Kazakhstan
	Janssen
	Janssen
	Yes

	Kenya
	Janssen
	Non-Assigned
	No

	Kiribati
	Janssen
	Non-Assigned
	No

	Korea, Dem. People’s Rep of
	Janssen
	Non-Assigned
	No

	Kyrgyzstan
	Janssen
	Janssen
	Yes

	Lao, People’s Dem. Rep.
	Janssen
	Non-Assigned
	No

	Lesotho
	Janssen
	Gilead
	No

	Liberia
	Janssen
	Non-Assigned
	No

	Madagascar
	Janssen
	Non-Assigned
	No

	Malawi
	Janssen
	Non-Assigned
	No

	Maldives
	Janssen
	Non-Assigned
	No

	Mali
	Janssen
	Non-Assigned
	No

	Mauritania
	Janssen
	Non-Assigned
	No

	Mauritius
	Janssen
	Non-Assigned
	No

	Moldova, Rep. of
	Janssen
	Non-Assigned
	No

	Mongolia
	Janssen
	Non-Assigned
	No

	Montserrat
	Gilead
	Gilead
	No

	Mozambique
	Janssen
	Non-Assigned
	No

	Myanmar
	Janssen
	Non-Assigned
	No

	Namibia
	Janssen
	Non-Assigned
	No

	Nauru
	Janssen
	Non-Assigned
	No

	Nepal
	Janssen
	Non-Assigned
	No

	Nicaragua
	Gilead
	Gilead
	No

	Niger
	Janssen
	Non-Assigned
	No

	Nigeria
	Janssen
	Non-Assigned
	No

	Pakistan
	Janssen
	Non-Assigned
	No

Annex AA – Page 4

	
				
	Palau
	Janssen
	Non-Assigned
	No

	Papua New Guinea
	Janssen
	Non-Assigned
	No

	Rwanda
	Janssen
	Non-Assigned
	No

	Saint Kitts and Nevis
	Gilead
	Gilead
	No

	Saint Lucia
	Gilead
	Gilead
	No

	Saint Vincent and the Grenadines
	Gilead
	Gilead
	No

	Samoa
	Janssen
	Non-Assigned
	No

	Sao Tome and Principe
	Janssen
	Non-Assigned
	No

	Senegal
	Janssen
	Non-Assigned
	No

	Seychelles
	Janssen
	Non-Assigned
	No

	Sierra Leone
	Janssen
	Non-Assigned
	No

	Solomon Islands
	Janssen
	Non-Assigned
	No

	Somalia
	Janssen
	Non-Assigned
	No

	South Africa
	Janssen
	Gilead
	No

	South Sudan
	Janssen
	Non-Assigned
	No

	Sri Lanka
	Janssen
	Non-Assigned
	No

	Sudan
	Janssen
	Non-Assigned
	No

	Suriname
	Gilead
	Gilead
	No

	Swaziland
	Janssen
	Gilead
	No

	Syria
	Janssen
	Non-Assigned
	No

	Tajikistan
	Janssen
	Janssen
	Yes

	Tanzania, U. Rep. of
	Janssen
	Non-Assigned
	No

	Thailand
	Janssen
	Non-Assigned
	No

	Timor-Leste
	Janssen
	Non-Assigned
	No

	Togo
	Janssen
	Non-Assigned
	No

	Tonga
	Janssen
	Non-Assigned
	No

	Trinidad and Tobago
	Gilead
	Gilead
	No

	Turkmenistan
	Janssen
	Non-Assigned
	No

	Turks and Caicos
	Gilead
	Gilead
	No

	Tuvalu
	Janssen
	Non-Assigned
	No

	Uganda
	Janssen
	Non-Assigned
	No

	Uzbekistan
	Janssen
	Janssen
	Yes

	Vanuatu
	Janssen
	Non-Assigned
	No

	Vietnam
	Janssen
	Non-Assigned
	No

	Yemen
	Janssen
	Non-Assigned
	No

	Zambia
	Janssen
	Non-Assigned
	No

	Zimbabwe
	Janssen
	Non-Assigned
	No

Annex AA – Page 5

Exhibit BB

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

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

With respect to Region A Janssen Countries, including Japan, Gilead shall issue to Janssen an Interim TCP Invoice for the TCP Interim Supply Price upon shipment of Territory Combination Product pursuant to the Janssen Distributor Agreement.

With respect to Region B and Region C Janssen Countries, Gilead shall issue to Janssen an Interim TCP Invoice for the TCP Interim Supply Price upon shipment of Territory Combination Product pursuant to the Janssen Distributor Agreement, and Gilead shall issue to Janssen a Final TCP Invoice within [*]  Each such Interim TCP Invoice or Final TCP Invoice shall state the invoiced amount and quantity of Territory Combination Product covered by such invoice.  Janssen shall pay each such invoice in accordance with the payment terms and calculations set forth in this Annex BB of the Agreement.

[*]

A.    Janssen Country Territory Combination Product Invoicing
All TCP Invoices shall be issued and paid in U.S. Dollars on the date set forth below.  
A.2.    Invoicing and Payment in Region A Janssen Countries 
The Janssen Countries in Region A are collectively the “Region” for purposes of this Section A.1, such that there shall be a single Average Janssen Region Payment Term for all of the Janssen Countries in Region A.

[*]

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

Annex BB – Page 1

[*]

Annex BB – Page 2

[*]

B.    Janssen Country Territory Combination Product Interim Supply Price
[*]

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

Annex BB – Page 3

[*]

Annex BB – Page 4

B.1.    Region B and Region C Janssen Countries

Subject to the true up described in Section C.2 of this Annex BB, Gilead shall supply each Unit of Branded Region B/C Combination Product to Janssen or its designated Affiliate at [*] (collectively, the Janssen Countries of Region B and Region C shall constitute a single “Region” for purposes of this Section B.2).  The invoiced amount for the Final TCP Invoice for a given month shall equal the product of:  [*]

Annex BB – Page 5

[*]

Annex BB – Page 6

B.3    [*]
[*]

Annex BB – Page 7

[*]

Annex BB – Page 8

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

Annex BB – Page 9

[*]

Annex BB – Page 10

[*]

Annex BB – Page 11

C.2    Region B and Region C:  Calculation of [*]
[*]

Annex BB – Page 12

[*]

Annex BB – Page 13

C.3    [*]
[*]

Annex BB – Page 14

CONFIDENTIAL    

Exhibit CC
Annex CC:  Exchange Rates and Currency Conversion True Up Principles
Capitalized terms not defined in this Annex shall have the meanings set forth in the agreement to which this Annex is attached (the “Agreement”).

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

Notwithstanding Section 10.9(a) of the Agreement and except as otherwise specified in Annex BB Section C.1 with regard to the DCP and Combination Product Actual Net Selling Price values in Mexico and Russia, with respect to the calculation of the Limited Region A TMC278 Annual True Up in Annex N and the TCP Annual True Up in Annex BB with respect to Region A (including Japan), the conversion of currency values used in such calculations with respect to a country from the local currency into U.S. Dollars shall be calculated utilizing the applicable Final Year Conversion Rate for such country for such Calendar Year with respect to which the applicable true up is being calculated.
“Final Year Conversion Rate” shall mean, with respect to a Calendar Year and a country, the weighted average of the applicable country’s Monthly Average Exchange Rate for each of the months in such Calendar Year, weighted by the corresponding Actual Unit Sales, as applicable, with respect to such country for such calendar month.
“Monthly Average Exchange Rate” shall mean, with respect to a country and a calendar month, the actual average daily exchange rate for such month for converting the applicable country’s currency into U.S. Dollars, as such rate is reported in Bloomberg Professional <R> service application.
“Actual Unit Sales” shall mean, with respect to a country and a calendar month, the actual number of Units of Territory Combination Product for which a Triggering Sale by Gilead and its 

Annex CC - 1

CONFIDENTIAL    

Affiliates or Janssen and its Affiliates, as applicable, has occurred in such country for such calendar month.
An example of the calculation of the Final Year Conversion Rate for the TCP Annual True Up in the Janssen Countries is included below.

Annex CC - 2

CONFIDENTIAL    

[*]

Annex CC - 3

CONFIDENTIAL    

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

Annex DD - 1

CONFIDENTIAL    

[Note: Example was updated by the A&R Second Amendment]

Annex DD - 2

CONFIDENTIAL    

[*]

Annex DD - 3

CONFIDENTIAL    

B.    TMC278 Invoices
Section B of this Annex DD shall apply retroactively to the Effective Date.  [*]

Annex DD - 4

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