Document:

2006 Corporate Bonus Plan

 Exhibit 10.3 
  
 

 
  
 Gilead Sciences Corporate
Bonus Plan – US Employees 
 Effective January 1, 2006 
  
 Plan Objectives 
  
 The objectives of the Corporate Bonus Plan (the “Plan”) are to: 
  

	 	•	 	provide a link between compensation and performance 

  

	 	•	 	motivate participants to achieve individual and company objectives 

  

	 	•	 	enable the company to attract and retain high quality employees 

  
 Eligibility 
  
 All Gilead Sciences employees are eligible to participate in the Plan for each performance year, subject to the following exceptions: 
  

	 	•	 	Field sales employees and medical science liaisons are not eligible for the Plan, as they participate in incentive plans tailored to their positions. 

  

	 	•	 	Employees at the level of Senior Vice President and above are not eligible for the Plan, as they participate in Gilead’s 162(m) Plan as described under “Other
Provisions” below. Bonuses awarded under the 162(m) Plan are determined in part by reference to the terms of this Plan. 

  

	 	•	 	Employees who receive a performance rating of 5 (“Unsatisfactory Performance”) for their most recent performance review prior to the bonus payment date are not eligible
for a bonus award. 

  

	 	•	 	Employees whose initial hire date is in November or December of a performance year first become eligible the following year. 

  
 An employee who joins the company before November of the performance year may be eligible for
a prorated bonus, depending on their length of service that year. An employee who changes job grades during the performance year may be eligible for a bonus based on the length of time in each grade, and the respective bonus target that would apply.

  
 Unless the terms of an applicable severance plan provide otherwise, a
participant who terminates employment (or gives notice of his or her intent to terminate) for reasons other than death or disability prior to the payment date (normally in March following the performance year) will not be eligible for a bonus award.

  
 For individuals with direct management responsibility, the payment of
individual bonuses is contingent on submission to HR, completed and signed performance evaluations for the participant’s direct reports at least two weeks prior to the bonus payment date. Participants who are responsible for submitting direct
report performance evaluations and fail to submit those evaluations by March 31 in the year of payment, will not be eligible for a bonus award. 
  
 Target Bonus Awards 
  
 Target bonus awards are determined and communicated to eligible employees annually. The Chief Executive Officer determines target bonus awards for employees at the level
of Vice President and below, and the Board of Directors or its Compensation Committee (the “Board”) determines target bonus awards for employees at the level of Senior Vice President and above. Target bonus awards may be modified from time
to time. 
  
 Award Determination 
  
 Actual bonus payouts can range from 0 to 1.5 times target,
based on individual and company performance. 

 Following are the weightings of the individual and company performance components used for US employees in determining
the actual bonus award amounts: 
  

					
	 Title

	  	Weighting of Company
Performance Component

	 	Weighting of Individual
Performance Component

	 CEO
	  	100%	 	N/A
	 EVP and SVP
	  	75%	 	25%
	 VP
	  	50%	 	50%
	 Below VP
	  	25%	 	75%

  
 Individual performance is evaluated
based on achievement of goals and objectives as reflected in the employee’s written performance objectives for the year. Individuals who have people management responsibility (e.g., one or more direct reports) will have a portion of their bonus
payment based on their performance as a manager. These requirements are listed on the annual Gilead G&O form and are valued at 20% of the person’s Goals and Objectives. 
  
 Criteria for assessing company performance will be determined and approved by the Board at the beginning of each Plan year. After the end of
each Plan year, the Board will assess the extent to which corporate goals have been met, identify any unplanned achievements that have been accomplished and approve an overall percentage of goals achieved with respect to the corporate component of
the Plan. This percentage of corporate goal achievement, together with the percentage of achievement for the individual component, will be used to calculate bonus payouts for individuals who participate in the Plan. 
  
 An individual must achieve at least 50% of his or her individual objectives to be eligible
for the corporate component payout. Gilead Sciences must achieve at least 50% of the company objectives in order for the corporate component payout to occur. Gilead’s senior management (or, in the case of bonuses potentially payable to
employees at the level of Senior Vice President and above, the Board) has discretion in determining whether each of these thresholds has been achieved. 
  
 Employees who have elected to participate in Gilead’s Employee Stock Purchase Plan and/or 401(k) Plan will have the applicable funds withheld from their bonus
payment. 
  
 Other Provisions 
  
 The Board reserves the right to interpret, modify, suspend
or terminate this Plan at any time. 
  
 The designation of an employee as a
participant will not give the employee any right to be retained in the employ of Gilead Sciences and its affiliates and the ability of Gilead Sciences and its affiliates to dismiss or discharge the employee at any time and for any reason is
specifically reserved. 
  
 No participant will have the right to alienate, assign,
encumber, hypothecate or pledge his or her interest in any award under the Plan, voluntarily or involuntarily, and any attempt to so dispose of any such interest will be void. 
  
 Employees at the level of Senior Vice President and above participate in the Gilead Sciences, Inc. Code Section 162(m) Bonus Plan (the
“162(m) Plan”) rather than this Plan. As provided in the 162(m) Plan, bonuses awarded under that plan will be determined by reference to the terms and conditions of this Plan, provided that if the terms and conditions of the two plans
conflict, bonuses under the 162(m) Plan will be governed by the terms and conditions of the 162(m) Plan and Section 162(m) of the Internal Revenue Code. Accordingly, this Plan makes reference to employees at the level of Senior Vice President
and above solely for purposes of administration of the 162(m) Plan. Any bonuses determined under the 162(m) Plan but administered by reference to this Plan (including the application of the provisions under “Award Determination” above
pursuant to which the maximum award determined under the 162(m) Plan may be reduced by the Board) will be paid under the 162(m) Plan. If the 162(m) Plan is not approved by Gilead’s stockholders, it will not become effective, and employees at
the level of Senior Vice President and above will not be eligible for annual bonuses under either the 162(m) Plan or this Plan.Code Section 162(m) Bonus Plan

 Exhibit 10.4 
  
 GILEAD SCIENCES, INC. 
  
 CODE SECTION 162(m) BONUS PLAN 
  
 Effective January 1, 2006 
 To Be Submitted
to Stockholders for Approval May 10, 2006 
  
 1. Purpose
of the Plan. The purpose of the Plan is to provide a link between compensation and performance, to motivate participants to achieve corporate performance objectives and to enable the Company to attract and retain high quality Eligible Employees.

  
 2. Definitions. As used herein, the following
definitions shall apply: 
  
 (a) “Board” means
the Board of Directors of the Company. 
  
 (b)
“Bonus” means a cash payment made pursuant to the Plan. 
  
 (c) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (d) “Committee” means the Compensation Committee of the Board. 
  
 (e) “Company” means Gilead Sciences, Inc., a Delaware corporation. 
  
 (f) “Corporate Bonus Plan” means the Gilead Sciences, Inc.
Corporate Bonus Plan, as amended from time to time. 
  
 (g)
“Covered Employee” means an Employee who is a “covered employee” under Section 162(m) of the Code. 
  
 (h) “Director” means a member of the Board. 
  
 (i) “Eligible Employee” means an Employee who holds the title of Senior Vice President or above and, but for having the title of Senior
Vice President or above, would be eligible to participate in the Corporate Bonus Plan. 
  
 (j) “Employee” means any person who is in the employ of the Company, subject to the control and direction of the Company as to both the work to be performed and the manner and method of performance.
Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 
  
 (k) “Performance-Based Compensation” means compensation qualifying as “performance-based compensation” under
Section 162(m) of the Code. 
  
 (l) “Performance
Goal” means any measurable criterion tied to the success of the Company and based on one or more of the business criteria described in Section 7. 
  

(m) “Plan” means the Gilead Sciences, Inc. Code Section 162(m) Bonus Plan. 

 3. Administration of the Plan. 
  
 (a) The Committee. The Plan shall be administered by the Committee (or a subcommittee of the Committee) which
shall be comprised solely of two or more Directors eligible to serve on a committee awarding Bonus payments qualifying as Performance-Based Compensation. 
  
 (b) Powers of the Committee. Subject the provisions of the Plan (including any other powers given to the Committee hereunder), the Committee shall
have the authority, in its discretion: 
  
 (i) to establish
Performance Goals; 
  
 (ii) to construe and interpret the terms
of the Plan and Bonuses awarded under the Plan; 
  
 (iii) to
establish additional terms, conditions, rules or procedures for the administration of the Plan; provided, however, that no Bonus shall be awarded under any such additional terms, conditions, rules or procedures with terms or conditions which are
inconsistent with the provisions of the Plan; and 
  
 (iv) to
take such other action, not inconsistent with the terms of the Plan, as the Committee deems appropriate. 
  
 (c) Indemnification. In addition to such other rights of indemnification as they may have as members of the Board, members of the Committee who
administer the Plan shall be defended and indemnified by the Company to the extent permitted by law on an after-tax basis against all reasonable expenses (including attorneys’ fees), actually and necessarily incurred in connection with the
defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any Bonus
awarded hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such claim, investigation, action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that within 30 days after the
institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at the Company’s expense to handle and defend the same. 
  
 4. Coverage. Eligible Employees are covered by the Plan. 

 
 5. Coordination with Corporate Bonus Plan; No Duplication of
Benefits. While this Plan is in effect, Eligible Employees shall not be eligible to participate in the Corporate Bonus Plan. Bonuses awarded under this Plan shall be determined by reference to the terms and conditions of the Corporate Bonus
Plan, but such reference is intended solely as a means of administering this Plan and the Corporate Bonus Plan in a similar manner, subject, however, to all of the limitations on and procedures applicable to Bonuses set forth in this Plan document.
To 

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the extent the terms and conditions set forth in this Plan document are in conflict with those of the Corporate Bonus Plan or are required to apply in order
for Bonuses to qualify as Performance-Based Compensation, the terms and conditions set forth in this Plan document shall control. 
  
 6. Terms and Conditions of Bonus Awards. 
  
 (a) Pre-Established Performance Goals. Payment of Bonuses shall be based solely on account of the attainment of one or more pre-established,
objective Performance Goals. The Committee shall establish one or more objective Performance Goals with respect to each Eligible Employee in writing not later than 90 days after the commencement of the period of service to which the Performance
Goals relate, provided that the outcome of the Performance Goals is substantially uncertain at the time of their establishment. Performance Goals shall be based solely on one or more of the business criteria described in the Section 7.

  
 (b) Committee Discretion. The Committee, in determining
the amount of Bonus actually paid to an Eligible Employee, shall not have the discretion to increase the amount of the Bonus that otherwise would be payable upon the attainment of the Performance Goals but may decrease the amount of such Bonus in
its sole discretion. The exercise of such discretion to decrease the amount of a Bonus may be based on such performance criteria as may have been established under the Corporate Bonus Plan or on such other criteria as the Committee may choose to
apply. 
  
 (c) Committee Certification. Prior to the
payment of any Bonus, the Committee shall certify in writing that the Performance Goals were satisfied. 
  
 (d) Individual Limitations on Awards. Notwithstanding any other provision of the Plan, the maximum amount of any Bonus paid to a Covered Employee
in any fiscal year is $5,000,000. 
  
 7. Business Criteria.

  
 (a) Permitted Criteria. Performance Goals established
by the Committee may be based on any one of, or combination of, the following: (i) revenue, (ii) achievement of specified milestones in the discovery and development of one or more of the Company’s products, (iii) achievement of
specified milestones in the commercialization of one or more of the Company’s products, (iv) achievement of specified milestones in the manufacturing of one or more of the Company’s products, (v) expense targets, (vi) share
price (including, but not limited to, growth measures and total shareholder return), (vii) earnings per share, (viii) operating margin, (ix) gross margin, (x) return measures (including, but not limited to, return on assets,
capital, equity, or sales), (xi) net sales growth, (xii) productivity ratios, (xiii) operating income, (xiv) net operating profit, (xv) net earnings or net income (before or after taxes), (xvi) cash flow (including, but
not limited to, operating cash flow, free cash flow, and cash flow return on capital), (xvii) earnings before or after interest, taxes, depreciation, and/or amortization, (xviii) economic value added, (xix) market share, and
(xx) working capital targets. 
  
 (b) Authorized
Adjustments. The Committee is authorized to make adjustments in the method of calculating the attainment of Performance Goals for a Performance 

  

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Period as follows: (i) to exclude restructuring and/or other non-recurring charges; (ii) to exclude exchange rate effects, as applicable, for
non-U.S. dollar denominated net sales and operating earnings; (iii) to exclude the effects of changes to generally accepted accounting principles required by the Financial Accounting Standards Board; (iv) to exclude the effects of
statutory adjustments to corporate tax rates; (v) to exclude the effects of “extraordinary items” as determined under generally accepted accounting principles; (vi) to exclude any other unusual, non-recurring gain or loss or
other extraordinary item; (vii) to respond to, or in anticipation of, any unusual or extraordinary corporate item, transaction, event or development; (viii) to respond to, or in anticipation of, changes in applicable laws, regulations,
accounting principles or business conditions; (ix) to exclude the dilutive effects of acquisitions or joint ventures; (x) to assume that any business divested by the Company achieved Performance Goals at targeted levels during the balance
of a Performance Period following such divestiture; (xi) to exclude the effect of any change in the outstanding shares of common stock of the Company by reason of any stock dividend or split, stock repurchase, reorganization, recapitalization,
merger, consolidation, spin-off, combination or exchange of shares or other similar corporate change, or any distribution to common stockholders other than regular cash dividends; (xii) to reflect a corporate transaction, such as a merger,
consolidation, separation (including spin-off or other distribution of stock or property by a corporation), or reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code); and
(xiii) to reflect any partial or complete corporate liquidation. 
  
 8. Effective Date and Term of Plan. The Plan shall become effective on January 1, 2006, but only if approved by the Company stockholders at the 2006 annual meeting. Assuming that such stockholder approval is obtained, the Plan
shall continue in effect until the Board terminates it or until stockholder approval again is required for the Plan to meet the requirements of Code Section 162(m) but is not obtained. 
  
 9. Amendment, Suspension or Termination of the Plan. The Board may at
any time amend, suspend or terminate the Plan at any time. 
  
 10.
Unfunded Obligation. Eligible Employees eligible to participate in the Plan shall have the status of general unsecured creditors of the Company. Any amounts payable to such Employees pursuant to the Plan shall be unfunded and unsecured
obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. The Company shall not be required to segregate any monies from its general funds, or to create any trusts, or
establish any special accounts with respect to such obligations. Employees shall have no claim against the Company for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan. 
  

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