Document:

Form of employee stock option agreement

 EXHIBIT 10.42 
 GILEAD SCIENCES, INC. 
 STOCK OPTION AGREEMENT 

RECITALS 
 A. Optionee is to render valuable services to the Corporation (or a Related Entity), and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with
the Corporation’s grant of an option to Optionee. 
 B. All capitalized terms in this Agreement shall have
the meaning assigned to them in the attached Appendix. 
 NOW, THEREFORE, the Corporation
hereby grants an option to Optionee upon the following terms and conditions: 
 1. Grant of
Option. The Corporation hereby grants to the person identified on attached Schedule I (the “Optionee”) an option to purchase shares of Common Stock under the Plan. The date on which this option is granted (the “Grant
Date”), the number of shares of Common Stock purchasable under this option (the “Option Shares”), the exercise price payable per share (the “Exercise Price”), the applicable vesting schedule by which this option shall vest
and become exercisable incrementally for the Option Shares (the “Vesting Schedule”) and the date to be used to measure the maximum term of this option (the “Expiration Date”) are also indicated on attached Schedule I to this
Agreement. The option is a non-statutory option under the U.S. federal income tax laws. The remaining terms and conditions governing this option shall be as set forth in this Agreement. 

2. Option Term. The term of this option shall commence on the Grant Date and continue to be
in effect until the close of business on the last business day prior to the Expiration Date specified in attached Schedule I, unless sooner terminated in accordance with Paragraph 5 or 6 below. 

3. Limited Transferability. 

(a) This option may be assigned in whole or in part during Optionee’s lifetime to a Living Trust. The
assigned portion may only be exercised by the Living Trust. The terms applicable to the assigned portion shall be the same as those in effect for the option immediately prior to such assignment and shall be set forth in such documents to be executed
by the Optionee and the Living Trust as the Corporation may deem appropriate. 
 (b) Except for
the limited transferability provided under Paragraph 3(a), this option shall be neither transferable nor assignable by Optionee other than by will or the laws of inheritance following Optionee’s death and may be exercised, during
Optionee’s lifetime, only by Optionee. However, Optionee may designate one or more persons as the beneficiary or beneficiaries of this option by completing the Corporation’s Universal Beneficiary Designation form and filing the completed
form with the Corporation’s Human Resources Department. Should Optionee file such Universal Beneficiary Designation form and die while holding this option, then this option shall automatically be transferred to the designated

 
beneficiary or beneficiaries. Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of this Agreement, including (without limitation) the
limited time period during which this option may, pursuant to Paragraph 5 below, be exercised following Optionee’s death. 
 4. Dates of Exercise. This option shall vest and become exercisable for the Option Shares in a series of installments in accordance with the Vesting Schedule set forth in attached Schedule
I. As the option vests and becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the last business day prior to the Expiration Date or any
sooner termination of the option term under Paragraph 5 or 6 below. 
 5. Cessation of
Service. The option term specified in Paragraph 2 above shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: 

(a) Except as otherwise expressly provided in subparagraphs (b) through (f) of this Paragraph 5,
should Optionee cease to remain in Continuous Service for any reason while this option is outstanding, then Optionee shall have until the close of business on the last business day prior to the expiration of the three (3)-month period measured from
the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of Optionee’s cessation of Continuous Service, but in no event
shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date. 
 (b) In the event Optionee ceases Continuous Service by reason of his or her death while this option is outstanding, then this option may be exercised, for any or all of the Option Shares for which this
option is vested and exercisable at the time of Optionee’s cessation of Continuous Service, by (i) the personal representative of Optionee’s estate or (ii) the person or persons to whom the option is transferred pursuant to
Optionee’s will or the laws of inheritance following Optionee’s death. However, if Optionee dies while holding this option and has an effective beneficiary designation in effect for this option at the time of his or her death, then the
designated beneficiary or beneficiaries shall have the exclusive right to exercise this option following Optionee’s death. Any such right to exercise this option shall lapse, and this option shall cease to be outstanding, upon the close of
business on the last business day prior to the earlier of (i) the expiration of the twelve (12)-month period measured from the date of Optionee’s death or (ii) the Expiration Date. Upon the expiration of such limited
exercise period, this option shall terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been exercised. 

(c) Should Optionee cease Continuous Service by reason of Permanent Disability while this option is
outstanding, then Optionee shall have until the close of business on the last business day prior to the expiration of the twelve (12)-month period measured from the date of such cessation of Continuous Service during which to exercise this option
for any or all of the Option Shares for which this option is vested and exercisable at the time of such cessation of Continuous Service. In no event, however, shall this option be exercisable at any time after the close of business on the last
business day prior to the Expiration Date. 

  
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 (d) Except as otherwise precluded by Applicable Laws, should
(i) Optionee cease Continuous Service after completion of at least three (3) years of Continuous Service and (ii) the sum of Optionee’s attained age and completed years of Continuous Service at the time of such cessation of
service equals or exceeds seventy (70) years, then Optionee shall have until the close of business on the last business day prior to the expiration of the thirty-six (36)-month period measured from the date of such cessation of Continuous
Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of such cessation of Continuous Service. In no event, however, shall this option be exercisable at any time
after the close of business on the last business day prior to the Expiration Date. 
 (e) The
applicable period of post-service exercisability in effect pursuant to the foregoing provisions of this Paragraph 5 shall automatically be extended by an additional period of time equal in duration to any interval within such post-service exercise
period during which the exercise of this option or the immediate sale of the Option Shares acquired under this option cannot be effected in compliance with applicable federal and state securities laws, but in no event shall such an extension result
in the continuation of this option beyond the close of business on the last business day prior to the Expiration Date. 
 (f) Should Optionee’s Continuous Service be terminated for Cause, or should Optionee engage in any other conduct, while in Continuous Service or following cessation of Continuous Service, that is
materially detrimental to the business or affairs of the Corporation (or any Related Entity), as determined in the sole discretion of the Administrator, then this option, whether or not vested and exercisable at the time, shall terminate immediately
and cease to be outstanding. 
 (g) During the limited period of post-service exercisability
provided under this Paragraph 5, this option may not be exercised in the aggregate for more than the number of Option Shares for which this option is at the time vested and exercisable. Except to the extent (if any) specifically authorized by the
Administrator pursuant to an express written agreement with the Optionee, this option shall not vest or become exercisable for any additional Option Shares, whether pursuant to the normal Vesting Schedule set forth in attached Schedule I or the
special vesting acceleration provisions of Paragraph 6 below, following Optionee’s cessation of Continuous Service. Upon the expiration of such limited exercise period or (if earlier) upon the close of business on the last business day prior to
the Expiration Date, this option shall terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been exercised. 

6. Special Acceleration of Option. 

(a) This option, to the extent outstanding at the time of an actual Change in Control but not otherwise
fully exercisable, shall automatically accelerate so that this option shall, immediately prior to the effective date of such Change in Control, become exercisable for all of the Option Shares at the time subject to this option and may be exercised
for any or all of those Option Shares as fully vested shares of Common Stock. However, this option shall not become exercisable on such an accelerated basis if and to the extent: (i) this

  
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option is to be assumed by the successor corporation (or parent thereof) or is otherwise to continue in full force and effect pursuant to the terms of the Change in Control transaction,
(ii) this option is to be replaced with an economically-equivalent substitute equity award or (iii) this option is to be replaced with a cash retention program of the successor corporation which preserves the spread existing at the time of
the Change in Control on any Option Shares for which this option is not otherwise at that time vested and exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and provides
for the subsequent vesting and concurrent payout of that spread in accordance with the same Vesting Schedule for those Option Shares as set forth in attached Schedule I. Notwithstanding the foregoing, no such cash retention program shall be
established for this option (or any other option granted to Optionee under the Plan) to the extent such program would otherwise be deemed to constitute a deferred compensation arrangement subject to the requirements of Code Section 409A and the
Treasury Regulations thereunder. 
 (b) Immediately following the consummation of the Change in
Control, this option shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in effect pursuant to the terms of the Change in Control transaction. 

(c) If this option is assumed in connection with a Change in Control or otherwise continued in effect,
then this option shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities into which the shares of Common Stock subject to this option would have been converted in consummation of such
Change in Control had those shares actually been outstanding at the time. Appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the extent the actual holders of the
Corporation’s outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation may, in connection with the assumption or continuation of this option but subject to
the Administrator’s approval, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in Control, provided such common stock is readily
tradable on an established U.S. securities exchange or market. 
 (d) If this option is assumed
or otherwise continued in effect in connection with a Change in Control or replaced with an economically-equivalent equity award or a cash retention program in accordance with Paragraph 6(a) above, then: 

(i) the option (or such economically equivalent award) shall vest and become immediately exercisable for
all of the Option Shares or other securities at the time subject to the option (or such award) and may, within the applicable exercise period under Paragraph 5, be exercised for any or all of those Option Shares or other securities as fully vested
shares or securities, or 
 (ii) the balance credited to Optionee under any cash retention
program established in accordance with Paragraph 6(a) shall immediately be paid to Optionee in a lump sum, subject to the Corporation’s collection of all applicable Withholding Taxes; 

  
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if, within the period beginning with the execution date of the definitive agreement for the Change in Control transaction and ending with the earlier of (i) the termination of that
definitive agreement without the consummation of such Change in Control or (ii) the expiration of the Applicable Acceleration Period following the consummation of such Change in Control, Optionee’s Continuous Service terminates due to an
involuntary termination (other than for death or Permanent Disability) without Cause or a voluntary termination by Optionee due to Constructive Termination. 

(e) 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. 

7. Adjustment in Option 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 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 and
proportional adjustments shall be made by the Administrator to (i) the total number and/or class of securities subject to this option and (ii) the Exercise Price. The adjustments shall be made in such manner as the Administrator deems
appropriate in order to reflect such change and thereby prevent the dilution or enlargement of benefits hereunder, and those adjustments shall be final, binding and conclusive upon Optionee and any other person or persons having an interest in the
option. In the event of any Change in Control transaction, the adjustment provisions of Paragraph 6(c) above shall be controlling. 
 8. Stockholder Rights. The holder of this option shall not have any stockholder rights with respect to the Option Shares until such person shall have exercised the option, paid the Exercise
Price and become a holder of record of the purchased shares. 
 9. Manner of Exercising
Option. 
 (a) In order to exercise this option with respect to all or any part of the
Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions: 

(i) Execute and deliver to the Corporation a Notice of Exercise as to the Option Shares for which the
option is exercised or comply with such other procedures as the Corporation may establish for notifying the Corporation, either directly or through an on-line internet transaction with a brokerage firm authorized by the Corporation to effect such
option exercises, of the exercise of this option for one or more Option Shares. Copies of the Notice of Exercise may be obtained from the Corporation’s intranet at http://gnet/finance/doc/noe.doc. 

  
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 (ii) Pay the aggregate Exercise Price for the purchased
shares in one or more of the following forms: 
 (A) cash or check made payable to the
Corporation; or 
 (B) through a special sale and remittance procedure pursuant to which
Optionee (or any other person or persons exercising the option) shall concurrently provide irrevocable instructions (i) to a brokerage firm (reasonably satisfactory to the Corporation for purposes of administering such procedure in accordance
with the Corporation’s pre-clearance/pre-notification policies) to effect the immediate sale of all or a sufficient portion of the purchased shares so that such brokerage firm can remit to the Corporation, on the settlement date, sufficient
funds out of the resulting sale proceeds to cover the aggregate Exercise Price payable for all the purchased shares plus all applicable Withholding Taxes and (ii) to the Corporation to deliver the certificates for the purchased shares directly
to such brokerage firm on such settlement date. 
 Except to the extent the sale and remittance
procedure is utilized in connection with the option exercise, payment of the Exercise Price must accompany the Notice of Exercise (or other notification procedure) delivered to the Corporation in connection with the option exercise. 

(iii) Furnish to the Corporation appropriate documentation that the person or persons exercising the
option (if other than Optionee) have the right to exercise this option. 
 (iv) Make appropriate
arrangements with the Corporation (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all applicable Withholding Taxes. 

(b) As soon as practical after the Exercise Date, the Corporation shall issue to or on behalf of Optionee
(or any other person or persons exercising this option) a certificate for the purchased Option Shares (either in paper or electronic form), with the appropriate legends affixed thereto. 

(c) In no event may this option be exercised for any fractional shares. 

10. Compliance with Laws and Regulations. 

(a) The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject
to compliance by the Corporation and Optionee with all Applicable Laws relating thereto. 

  
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 (b) The inability of the Corporation to obtain approval from
any regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Corporation of any liability with respect to the non-issuance or sale of the
Common Stock as to which such approval shall not have been obtained. The Corporation, however, shall use its best efforts to obtain all such approvals. 

11. Successors and Assigns. Except to the extent otherwise provided in Paragraphs 3 and 6
above, the provisions of this Agreement shall inure to the benefit of and be binding upon the Corporation and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs and legatees of Optionee’s estate
and any beneficiaries of this option designated by Optionee. 
 12. 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 Optionee shall be
in writing and addressed to Optionee at the most current address then indicated for Optionee on the Corporation’s employee records or shall be delivered electronically to Optionee through the Corporation’s electronic mail system or through
an on-line brokerage firm authorized by the Corporation to effect option exercises through the internet. 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. mail, postage prepaid and properly addressed to the party to be notified. 
 13.
Construction. This Agreement and the option 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 this option. 
 14. Governing Law. The interpretation, performance
and enforcement of this Agreement shall be governed by the laws of the State of California without resort to California’s conflict-of-laws rules. 

15. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the Grant
Date, the number of shares of Common Stock which may without stockholder approval be issued under the Plan, then this option shall be void with respect to those excess shares, unless stockholder approval of an amendment sufficiently increasing the
number of shares of Common Stock issuable under the Plan is obtained in accordance with the provisions of the Plan. In no event shall the option be exercisable with respect to any of the excess Option Shares unless and until such stockholder
approval is obtained. 
 16. Leaves of Absence. The following provisions shall
govern leaves of absence, except to the extent the application of such provisions to Optionee would contravene Applicable Laws. 

  
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 (a) For purposes of this Agreement, Optionee’s
Continuous Service shall not be deemed to cease during any period for which Optionee is on a military leave, sick leave or other personal leave approved by the Corporation. However, Optionee shall not receive any Continuous Service credit, for
purposes of vesting in this option and the Option Shares pursuant to the Vesting Schedule set forth in attached Schedule I, for any period of such leave of absence, except to the extent otherwise required by law or pursuant to the following policy:

  

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	 	 Optionee shall receive Continuous Service credit for such vesting purposes for (i) the first three (3) months of an approved personal
leave of absence or (ii) the first seven (7) months of any bona fide leave of absence (other than an approved personal leave), but in no event beyond the expiration date of such leave of absence. 

(b) In no event shall Optionee be deemed to remain in Continuous Service at any time after the earlier of
(i) the expiration date of his or her leave of absence, unless Optionee returns to active Continuous Service on or before that date, or (ii) the date Optionee’s Continuous Service actually terminates by reason of his or her voluntary
or involuntary termination or by reason of his or her death or disability. 
 17.
Employment at Will. Nothing in this Agreement or in the Plan shall confer upon Optionee any right to remain in Employee status for any period of specific duration or interfere with or otherwise restrict in any way the rights of the
Corporation (or any Related Entity employing Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Employee status at any time for any reason, with or without Cause. 

18. Plan Prospectus. The official prospectus for the Plan is available on the
Corporation’s intranet at: 
 http://gnet/HR/stocks_new.asp. Optionee may also obtain a printed copy
of the prospectus by contacting Stock Plan Services at stockplanservices@gilead.com. 
 19.
Optionee Acceptance. Optionee 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 this option be exercised in the absence of such acceptance. 

  
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 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:
	 	 /s/ Kristen M. Metza

		 	 Kristen M. Metza

	 Title:
	 	 SVP, Human Resources

 APPENDIX 

The following definitions shall be in effect under the Agreement: 

A. Administrator shall mean the Compensation Committee of the Board (or a subcommittee thereof) acting in
its capacity as administrator of the Plan. 
 B. Agreement shall mean this Stock Option Agreement.

 C. Applicable Acceleration Period shall have the meaning assigned to such term in
Section 2(b) of the Plan and shall be determined on the basis of Optionee’s status on the Grant Date. 

D. Applicable Laws shall mean the legal requirements related to the Plan and the option under applicable
provisions of the federal securities laws, state corporate and state 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
options granted to residents therein. 
 E. Board shall mean the Corporation’s Board of
Directors. 
 F. Cause shall, for purposes of Paragraph 5 of the Agreement, mean the termination
of Optionee’s Continuous Service as a result of Optionee’s (i) performance of any act, or failure to perform any act, in bad faith and to the detriment of the Corporation or a Related Entity; (ii) dishonesty, intentional
misconduct, material violation of any applicable Corporation or Related Entity policy, or material breach of any agreement with the Corporation or a Related Entity; or (iii) commission of a crime involving dishonesty, breach of trust, or
physical or emotional harm to any person. However, for purposes of Paragraph 6(d) of the Agreement, Cause shall mean the termination of Optionee’s Continuous Service as a result of Optionee’s (a) conviction of, a guilty
plea with respect to, or a plea of nolo contendere to, a charge that Optionee has committed a felony under the laws of the United States or of any State or a crime involving moral turpitude, including (without limitation) fraud, theft,
embezzlement or any crime that results in or is intended to result in personal enrichment to Optionee at the expense of the Corporation or a Related Entity; (b) material breach of any agreement entered into between Optionee and the Corporation
or a Related Entity that impairs the Corporation’s or the Related Entity’s interest therein; (c) willful misconduct, significant failure to perform his or her duties or gross neglect of his or her duties; or (d) engagement in any
activity that constitutes a material conflict of interest with the Corporation or a Related Entity. 
 G.
Change in Control shall mean a change in ownership or control of the Corporation effected through any of the following transactions: 

(i) 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 

  
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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; 
 (ii) a sale, transfer or
other disposition of all or substantially all of the Corporation’s assets; 
 (iii) 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 
 (iv) 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) above 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. 
 H. Code shall mean the
Internal Revenue Code of 1986, as amended. 
 I. Common Stock shall mean shares of the
Corporation’s common stock. 

  
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 J. Constructive Termination shall have the meaning assigned to
such term in Section 11(d) of the Plan. 
 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 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, Optionee shall be deemed to cease Continuous Service immediately upon the occurrence of either of the following events: (i) Optionee no longer performs services in any of the
foregoing capacities for the Corporation or any Related Entity or (ii) the entity for which Optionee is performing such services ceases to remain a Related Entity of the Corporation, even though Optionee may subsequently continue to perform
services for that entity. In jurisdictions requiring notice in advance of an effective termination of Optionee’s service as an Employee, Director or Consultant, Continuous Service shall be deemed terminated upon the actual cessation of such
service to the Corporation or a Related Entity notwithstanding any required notice period that must be fulfilled before Optionee’s termination as an Employee, Director or Consultant can be effective under Applicable Laws. 

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. Director shall mean a member of the Board. 
 O.
Employee shall mean an individual who is in the employ of the Corporation (or any Related Entity), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of
performance. 
 P. Exercise Date shall mean the date on which the option shall have been exercised
in accordance with Paragraph 9 of the Agreement. 
 Q. Exercise Price shall mean the exercise
price payable per Option Share as specified in attached Schedule I. 
 R. Expiration Date shall
mean the date specified on attached Schedule I for measuring the maximum term for which the option may remain outstanding. 
 S. 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 no reported closing price or 

  
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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. 
 T. Grant Date shall mean the date on which the option is granted, as specified on attached Schedule I. 

U. Living Trust shall mean a revocable living trust established by Optionee or by Optionee and his or her
spouse of which Optionee is the sole trustee (or sole co-trustee with his or her spouse) and sole beneficiary (or sole co-beneficiary with his or her spouse) during Optionee’s lifetime. 

V. 1934 Act shall mean the Securities Exchange Act of 1934, as amended from time to time. 

W. Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code
Section 422. 
 X. Notice of Exercise shall mean the notice of option exercise in the form
authorized by the Corporation. 
 Y. Option Shares shall mean the number of shares of Common Stock
subject to the option as specified in attached Schedule I. 
 Z. Optionee shall mean the
person identified in attached Schedule I to whom the option is granted pursuant to the Agreement. 
 AA.
Parent shall mean a “parent corporation,” whether now existing or hereafter established, as defined in Section 424(e) of the Code. 
 BB. Permanent Disability shall mean the inability of Optionee to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which is
expected to result in death or to be of continuous duration of twelve (12) months or more. 
 CC.
Plan shall mean the Corporation’s 2004 Equity Incentive Plan, as amended from time to time. 

DD. 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 Optionee 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 this option
grant to Optionee. 

  
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 EE. Stock Exchange shall mean the American Stock Exchange, the
Nasdaq Global or Global Select Market or the New York Stock Exchange. 
 FF. Subsidiary shall mean
a “subsidiary corporation,” whether now existing or hereafter established, as defined in Section 424(f) of the Code. 
 GG. Vesting Schedule shall mean the schedule set forth in attached Schedule I, pursuant to which the option is to vest and become exercisable for the Option Shares in a series of
installments over Optionee’s period of Continuous Service. 
 HH. Withholding Taxes shall
mean the federal, state, local and/or foreign income taxes and the employee portion of the federal, state, local and/or foreign employment taxes required to be withheld by the Corporation in connection with the exercise of the option. 

  
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 SCHEDULE I 
 OPTION GRANT SPECIFICS 
 Name of Optionee: «FIRST_NAME»
«MIDDLE_NAME» «LAST_NAME» 
 Grant Date: «OPTION_DATE» 

Grant Number: «NUM» 
 Total Number of Option Shares: «SHARES_GRANTED» 
 Exercise
Price: US «OPTION_PRICE» 
 Vesting Schedule: 

 

							
	 Shares
	  	 Vest Type
	  	 Full Vest Date
	  	 Expiration Date

	 «SHARES_PERIOD_1»
	  	«VEST_TYPE_PERIOD_1»	  	«VEST_DATE_PERIOD_1»	  	«EXPIRATION_DATE_PERIOD_1»
	 «SHARES_PERIOD_2»
	  	«VEST_TYPE_PERIOD_2»	  	«VEST_DATE_PERIOD_2»	  	«EXPIRATION_DATE_PERIOD_2»
	 «SHARES_PERIOD_3»
	  	«VEST_TYPE_PERIOD_3»	  	«VEST_DATE_PERIOD_3»	  	«EXPIRATION_DATE_PERIOD_3»
	 «SHARES_PERIOD_4»
	  	«VEST_TYPE_PERIOD_4»	  	«VEST_DATE_PERIOD_4»	  	«EXPIRATION_DATE_PERIOD_4»

 The option will vest and become exercisable for the number of Option Shares noted on the first line above on the first anniversary of the Grant Date, as noted by the date listed under “Full Vest
Date.” With respect to each subsequent line, the option will vest and become exercisable for the listed Option Shares in equal quarterly installments, beginning one quarter after the Full Vest Date on the previous line and ending on the
corresponding Full Vest Date for the listed Option Shares at issue. Fractional shares will be rounded down to the nearest whole number.Form of performance share award agreement

 EXHIBIT 10.53 
 GILEAD SCIENCES, INC. 
 PERFORMANCE SHARE AWARD AGREEMENT

 RECITALS 
 A. The Corporation has implemented the Plan for the purpose of providing incentives to attract, retain and motivate eligible Employees, Directors and Consultants to continue their service relationship
with the Corporation. 
 B. Participant is to render valuable services to the Corporation (or a Related Entity),
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 in this Agreement shall have the meaning assigned to them in the attached Appendix A.

 NOW, THEREFORE, it is hereby agreed as follows: 

1. Grant of Performance Shares. The Corporation hereby awards to Participant, as of the Award Date
indicated below, an award (the “Award”) of Performance Shares under the Corporation’s 2004 Equity Incentive Plan, as amended (the “Plan”). Each Performance Share which vests pursuant to the terms of this Agreement shall
provide Participant with the right to receive one or more shares of Common Stock on the designated issuance date. The number of shares of Common Stock subject to the awarded Performance Shares, the applicable performance vesting requirement for
those shares, the date on which those vested shares of Common Stock shall become issuable and the remaining terms and conditions governing the Award, including the applicable service vesting requirement, shall be as set forth in this Agreement.

 AWARD SUMMARY 
  

			
	 Participant
	  	 __________________________________________________

		
	 Award Date:
	  	                         ,
200    

		
	 Designated Number of Performance Shares:
	  	 The actual number of shares of Common Stock that may become issuable pursuant to the Performance Shares awarded under this Agreement shall be determined in
accordance with the Vesting Schedule below. For purposes of the percentage calculations set forth in the Performance Vesting section of such schedule, the designated number of Performance Shares to be utilized is
                             shares.

			
		
	 Vesting Schedule:
	  	 The number of shares of Common Stock which may actually vest and become issuable pursuant to the Award shall be
determined pursuant to a two-step process: (i) first the maximum number of shares of Common Stock in which Participant can vest under the Performance Vesting section below shall be calculated on the basis of the level at which each of the
Performance Goals specified on attached Schedule I is actually attained and (ii) then the number of shares calculated under clause (i) in which Participant may actually vest shall be determined on the basis of his or her completion of the applicable
Continuous Service vesting requirements set forth in Paragraph 3 of this Agreement.
  
 Performance Vesting: Attached Schedule I specifies the two Performance Goals to be attained for the specified Performance Period. Within sixty-five (65) days after the completion of that
Performance Period, the Administrator shall determine and certify the actual level of attainment for each Performance Goal. On the basis of that certified level of attainment, the number of Performance Shares will be multiplied by the applicable
percentage (which may range from 0% to 200%) determined in accordance with the percentile matrix set forth in Schedule I. The number of shares resulting from such calculation shall constitute the maximum number of shares of Common Stock in which
Participant may vest under this Award and shall be designated the “Performance-Qualified Shares.” In no event may the number of such Performance-Qualified Shares exceed 200% of the number of Performance Shares specified in the Designated
Number of Performance Shares section above.
  

To the extent any Performance Goal is attained at a level below the twentieth percentile, a portion of the Performance Shares, as
determined in accordance with the percentile matrix set forth in Schedule I, shall be forfeited, and any such forfeited Performance Shares shall be immediately cancelled. Participant shall thereupon cease to have any further right, title or interest
in the shares of Common Stock underlying those cancelled Performance Shares.
  
 Continuous Service Vesting. The number of Performance-Qualified Shares in which Participant actually vests shall be determined on the basis of his or her satisfaction of the
Continuous-Service vesting requirements set forth in Paragraph 3.
  
 Change in Control Vesting. The shares of Common Stock underlying the Performance Shares subject to this Award may also vest on an accelerated basis in accordance with Paragraph 5 should a
Change in Control occur prior to the completion of the Performance Period.

  
 2 

			
		
	 Issuance Date:
	  	 The shares of Common Stock which actually vest and become issuable pursuant to the terms of this Agreement shall be issued in accordance with the provisions
of this Agreement applicable to the particular circumstances under which such vesting occurs.

2. Limited Transferability. Prior to the actual issuance of the shares of Common Stock which vest
hereunder, Participant may not transfer any interest in the Performance Shares subject to this Award or the underlying shares of Common Stock or pledge or otherwise hedge the sale of those Performance Shares or underlying shares, including (without
limitation) any short sale or any acquisition or disposition of any put or call option or other instrument tied to the value of the underlying shares of Common Stock. However, any shares of Common Stock which vest hereunder but 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 this Award. Participant may also
direct the Corporation to record the ownership of any shares of Common Stock which in fact vest and become issuable hereunder in the name of a revocable living trust established for the exclusive benefit of Participant or Participant and his or her
spouse. Participant may make such a beneficiary designation or ownership directive at any time by completing the Corporation’s Universal Beneficiary Designation form and filing the completed form with the Plan Administrator or its designee.

 3. Continuous Service Requirement. The number of Performance-Qualified Shares calculated in
accordance with the Performance-Vesting provisions of Paragraph 1 and attached Schedule I represent the maximum number of shares of Common Stock in which Participant can vest hereunder. The actual number of shares of Common Stock in which
Participant shall vest shall be determined as follows: 
  

	 	 •
	 	 If Participant remains in Continuous Service through the date following the completion of the Performance Period on which the Administrator
certifies the attained level of the Performance Goals for that Performance Period, Participant shall vest in one hundred percent (100%) of the Performance-Qualified Shares. 

 

	 	 •
	 	 If Participant’s Continuous Service terminates prior to the completion of the Performance Period (or after the completion of the Performance
Period but before the date the Administrator certifies the attained level of the Performance Goals for that Performance Period) by reason of death or Permanent Disability, then Participant shall, following the completion of the Performance Period,
vest in that number of shares of Common Stock (if any) determined by multiplying the maximum number of Performance-Qualified Shares in which Participant could vest, based on the actual level at which the Performance Goals are attained and certified
for the Performance Period, by a fraction, the numerator 

  
 3 

	 	 
of which is the number of months of Continuous Service actually completed by Participant in such Performance Period (rounded to the closest whole month), and the denominator of which is the
number of months (rounded to the closest whole number) constituting the entire Performance Period. 

  

	 	 •
	 	 If Participant’s Continuous Service terminates by reason of his or her Retirement at any time after the completion of the first twelve
(12) months of the Performance Period but prior to the completion of the Performance Period (or after the completion of the Performance Period but before the date the Administrator certifies the attained level of the Performance Goals for that
Performance Period), then Participant shall, following the completion of the Performance Period, vest in that number of shares of Common Stock (if any) determined by multiplying the maximum number of Performance-Qualified Shares in which Participant
could vest, based on the actual level at which the Performance Goals are attained and certified for the Performance Period, by a fraction, the numerator of which is the number of months of Continuous Service actually completed by Participant in such
Performance Period prior to his or her Retirement (rounded to the closest whole month), and the denominator of which is the number of months (rounded to the closest whole number) constituting the entire Performance Period.

  

	 	 •
	 	 If (i) Participant’s Continuous Service terminates by reason of an involuntary termination other than for Cause, or his or her resignation
due to Constructive Termination, at any time after the completion of the Performance Period but before the date the Administrator certifies the attained level of the Performance Goals for that Performance Period and (ii) such termination of
Continuous Service also occurs during a period while there is in effect a definitive executed agreement for the Change in Control transaction, then Participant shall vest in the maximum number of Performance-Qualified Shares in which Participant
could vest, based on the actual level at which the Performance Goals are attained and certified for the Performance Period, had Participant remained in Continuous Service through such certification date. 

If Participant’s Continuous Service ceases for any other reason (including, without limitation, any
deemed cessation of Continuous Service under Paragraph 10) prior to the completion of the Performance Period or prior to the date on which the Administrator certifies the attained level of the Performance Goals for that Performance Period, then
Participant shall not vest in any of the Performance-Qualified Shares, and all of Participant’s right, title and interest to the shares of Common Stock subject to this Award shall immediately terminate; provided,
however, that should a Change in Control occur prior to the completion of the Performance Period, then the provisions of Paragraph 5 shall govern the vesting of the Performance Shares. 

  
 4 

 4. Stockholder Rights and Dividend Equivalents 

(a) The holder of this Award shall not have any stockholder rights, including voting, dividend or
liquidation rights, with respect to the shares of Common Stock 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 Performance Shares remain subject to this Award (i.e., the
underlying shares of Common Stock 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 that would have been paid on the maximum number of shares of Common Stock that can qualify as Performance-Qualified Shares under this Award, had that number of shares been issued and outstanding and entitled to
that dividend or distribution. As one or more shares of Common Stock subsequently vest hereunder upon the satisfaction of the applicable vesting requirements, the phantom dividend equivalents credited to those particular 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 those vested shares. However, such distribution shall be subject to the Corporation’s collection of the Withholding Taxes applicable to that
distribution. 
 (c) To the extent the maximum number of shares of Common Stock that can qualify
as Performance-Qualified Shares under this Award are not in fact earned by reason of the levels at which the Performance Goals are actually attained, then the phantom dividend equivalents credited to those unearned shares shall be cancelled, and
Participant shall cease to have any right or entitlement to receive any distributions or other amounts with respect to those cancelled dividend equivalents. 

(d) Should Participant cease Continuous Service without vesting in one or more of the shares of Common
Stock subject to this Award (including any shares which do not otherwise vest at that time after taking into account any applicable vesting acceleration provisions set forth in Paragraphs 3 and 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 

 5. Change in Control. The following provisions shall apply
only to the extent a Change in Control is consummated prior to the completion of the Performance Period and shall have no force or effect in the event the effective date of the Change in Control occurs after the completion of such Performance
Period. 
 (a) Should (i) the Change in Control occur within the first twelve
(12) months of the Performance Period and (ii) Participant remain in Continuous Service through the effective date of that Change in Control, then Participant shall immediately vest in that number of shares of Common Stock equal to the
designated number of Performance Shares set forth in Paragraph 1, without any measurement of Performance Goal attainment to date. 
 (b) Should (i) the Change in Control occur at any time on or after the completion of the first twelve (12) months of the Performance Period but prior to the completion of the entire Performance
Period and (ii) Participant remain in Continuous Service through the effective date of that Change in Control, then Participant shall immediately vest in that number of shares of Common Stock equal to the greater of: 

(i) the designated number of Performance Shares set forth in Paragraph 1, or 

(ii) the number of Performance-Qualified Shares determined by multiplying (A) the Designated Number
of Performance Shares set forth in Paragraph 1 by (B) the applicable percentage (determined in accordance with the percentile matrix in attached Schedule I) for the levels at which the Performance Goals are attained over an abbreviated
Performance Period ending with the close of the Corporation’s fiscal quarter coincident with or immediately preceding the effective date of the Change in Control. 

(c) The provisions of subparagraphs (a) and (b) of this Paragraph 5 shall also apply should
Participant’s Continuous Service terminate, by reason of an involuntary termination other than for Cause or his or her resignation due to Constructive Termination, at any time during the period beginning with the execution date of the
definitive agreement for the Change in Control transaction and ending with the earlier of (i) the effective date of that Change in Control or (ii) the termination of the definitive agreement without the consummation of the
Change in Control; provided, however, that in no event shall Participant become entitled to any shares of Common Stock pursuant to this Paragraph 5 if the Change in Control is not in fact consummated. 

(d) Should Participant cease Continuous Service during the Performance Period by reason of death or
Permanent Disability and a Change in Control subsequently occur prior to the completion of that Performance Period, then the Participant shall, at the time of such Change in Control, vest in a pro-rated number of shares of Common Stock calculated by
multiplying (i) the number of Performance Shares or Performance-Qualified Shares determined in accordance with the applicable provisions of subparagraphs (a) and (b) of this Paragraph 5 by (ii) a fraction, the numerator of which
is the number of months of Continuous Service actually completed by Participant in such Performance Period (rounded to 

  
 6 

 
the closest whole month), and the denominator of which is the number of months (rounded to the closest whole number) comprising the portion of the Performance Period ending with the earlier of
(i) the effective date of the Change in Control or (ii) the last day of the abbreviated Performance Period (if any) taken into account under Paragraph 5(b)(ii). 

(e) Should Participant cease Continuous Service by reason of his or her Retirement at any time after the
completion of the first twelve (12) months of the Performance Period but prior to the completion of the entire Performance Period and a Change in Control subsequently occur prior to the completion of that Performance Period, then the
Participant shall, at the time of such Change in Control, vest in a pro-rated number of shares of Common Stock calculated by multiplying (i) the number of Performance Shares or Performance-Qualified Shares determined in accordance with the
provisions of subparagraph (b) of this Paragraph 5 by (ii) a fraction, the numerator of which is the number of months of Continuous Service actually completed by Participant in such Performance Period prior to his or her Retirement
(rounded to the closest whole month), and the denominator of which is the number of months (rounded to the closest whole number) comprising the portion of the Performance Period ending with the earlier of (i) the effective date of the Change in
Control or (ii) the last day of the abbreviated Performance Period (if any) taken into account under Paragraph 5(b)(ii). 
 (f) The number of shares of Common Stock in which Participant vests on the basis of the Performance Shares or Performance-Qualified Shares determined in accordance with the foregoing provisions of this
Paragraph 5 shall be converted into the right to receive for each such share the same consideration per share of Common Stock payable to the other stockholders of the Corporation in consummation of the Change in Control, and such consideration shall
be distributed to Participant on the tenth (10th) business days following the effective date of that Change in Control. Each issuance or distribution made under this Paragraph 5(f) shall be subject to the Corporation’s collection of the
applicable Withholding Taxes. 
 (g) Except for the actual number of shares of Common Stock in
which Participant vests in accordance with this Paragraph 5, Participant shall have cease to have any further right or entitlement to any additional shares of Common Stock under this Agreement following the effective date of the Change in Control.

 (h) 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, extraordinary dividend or distribution 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 

  
 7 

 
shall be made by the Administrator to the total number and/or class of securities issuable pursuant to this Award in order to reflect such change. In making such equitable adjustments, the
Administrator shall take into account any amounts 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
any Change in Control transaction, the provisions of Paragraph 5 shall be controlling. 
 7. Issuance or
Distribution of Vested Shares or Other Amounts. 
 (a) Except as otherwise provided in
Paragraph 5, the shares of Common Stock in which Participant vests pursuant to the Performance and Continuous Service vesting provisions of Paragraphs 1 and 3 shall be issued following the completion of the Performance Period, in accordance with the
following provisions: 
 (i) If the applicable Performance Period is coincidental with one or
more successive complete calendar years, the issuance shall be effected during the period beginning with the first business day of the calendar year immediately succeeding the end of the Performance Period and ending no later than March 15 of
that year. 
 (ii) If the applicable Performance Period ends on a date other than the last day of
the calendar year, then the issuance shall be effected as soon as administratively practicable following the completion of that Performance Period, but no later than the later of (A) the last day of the calendar year in which such
Performance Period ends or (B the fifteenth (15th) day of third (3rd) calendar month following the last of day of such Performance Period. 

(b) The Corporation shall, on the applicable issuance date, issue to or on behalf of Participant a
certificate (which may be in electronic form) for the shares of Common Stock in which Participant vests pursuant to the Performance and Continuous Service vesting provisions of Paragraphs 1 and 3 and shall concurrently distribute to the Participant
any phantom dividend equivalents with respect to those Shares. 
 (c) Except as otherwise
provided in Paragraph 5, no shares of Common Stock shall be issued prior to the completion of the Performance Period. No fractional shares of Common Stock shall be issued pursuant to this Award, and any fractional share resulting from any
calculation made in accordance with the terms of this Agreement shall be rounded down to the next whole share. 
 (d) Until such time as the Corporation provides Participant with notice to the contrary, the Corporation shall collect, and Participant hereby authorizes the Corporation to collect, the Withholding Taxes
with respect to the Shares issued under this Agreement (including shares of Common Stock issued in settlement of phantom dividend equivalents) through 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 

  
 8 

 
Fair Market Value (measured as of the issuance date) equal to the amount of such Withholding Taxes (the “Share Withholding Method”). 

(e) 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 statutory rate or other applicable withholding rate. If the obligation for Withholding Taxes is
satisfied by using the Share Withholding Method, then Participant will, for tax purposes, 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 applicable Withholding Taxes. 
 (f) The Corporation shall have sole
discretion to determine whether or not the Share Withholding Method shall be utilized for the collection of the applicable 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. Should any Shares become issuable under the Award (including shares of Common Stock issued in settlement of phantom dividend equivalents) at a time when the Share
Withholding Method is not being utilized by the Corporation, then the Withholding Taxes shall be collected from Participant through a sale-to-cover transaction authorized by Participant, pursuant to which an immediate open-market sale of a portion
of the Shares issued to Participant will be effected, for and on behalf of Participant, by the Corporation’s designated broker to cover the Withholding Tax liability estimated by the Corporation to be applicable to such issuance. Participant
shall, promptly upon request from the Corporation, execute (whether manually or through electronic acceptance) an appropriate sales authorization (in form and substance reasonably satisfactory to the Corporation) that authorizes and directs the
broker to effect such open-market, sale-to-cover transactions and remit the sale proceeds, net of brokerage fees and other applicable charges, to the Corporation in satisfaction of the applicable Withholding Taxes. However, no sale-to-cover
transaction shall be effected unless (i) such a sale is at the time permissible under the Corporation’s insider trading policies governing the sale of Common Stock and (ii) the transaction is not otherwise deemed to constitute a
prohibited loan under Section 402 of the Sarbanes-Oxley Act of 2002. 
 (g) If the
Corporation determines that such sale-to-cover transaction is not permissible or advisable at the time or if Participant otherwise fails to effect a timely sales authorization as required by this Agreement, then the Corporation may, in its sole
discretion, elect either to defer the issuance of the Shares until such sale-to-cover transaction can be effected in accordance with Participant’s executed sale directive or to collect the applicable Withholding Taxes through Participant’s
delivery of his or her separate check payable to the Corporation in the amount of such Withholding Taxes or by withholding such amount from other wages payable to Participant. In no event shall any Shares be issued in the absence of an arrangement
reasonably satisfactory to the Corporation for the satisfaction of the applicable Withholding Taxes and in compliance with any applicable requirements of Code Section 409A. 

(h) The Corporation shall collect the Withholding Taxes with respect to the phantom dividend equivalents
distributed in a form other than shares of Common Stock 

  
 9 

 
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, or through
such other tax withholding arrangement as the Corporation deems appropriate 
 (i)
Notwithstanding the foregoing provisions of Paragraphs 7(d) through 7(h), the employee portion of the federal, state and local employment taxes required to be withheld by the Corporation in connection with the vesting of the shares of Common Stock
or any other amounts hereunder (the “Employment Taxes”) shall in all events be collected from Participant no later than the last business day of the calendar year in which those shares or other amounts vest hereunder. Accordingly, to the
extent the applicable issuance date for one or more vested shares of Common Stock or the distribution date for such other amounts is to occur in a year subsequent to the calendar year in which those shares or other amounts vest, the Participant
shall, on or before the last business day of the calendar year in which such shares or other amounts vest, deliver to the Corporation a check payable to its order in the dollar amount equal to the Employment Taxes required to be withheld with
respect to those shares or other amounts. The provisions of this Paragraph 7(i) shall be applicable only to the extent necessary to comply with the applicable tax withholding requirements of Code Section 3121(v). 

(j) Except as otherwise provided in Paragraph 5 or this Paragraph 7, the settlement of all Performance or
Performance-Qualified Shares which vest under the Award shall be made solely in shares of Common Stock. 
 8.
Special Deferral Election. Provided Participant is a U.S. tax resident and subject to Participant’s satisfaction of any applicable Withholding Tax obligations under Paragraph 7 and any other eligibility requirements established by
the Administrator for a deferral election hereunder, Participant may elect to defer the receipt of any shares of Common Stock which may become issuable to Participant pursuant to the terms of this Agreement, by submitting to the Corporation on a
timely basis a deferral election in the form provided for such purpose. Such deferral election must be submitted to the Corporation prior to the last six (6) months of the Performance Period (including any abbreviated Performance Period), and
any deferral election submitted within that six (6)-month period shall have no force and effect. In submitting such deferral election, Participant must represent that he or she understands the effect of such deferral under relevant federal, state
and local income and employment tax laws, including (without limitation) the fact that Social Security, Medicare and other taxes may be due upon the vesting of the shares of Common Stock notwithstanding the deferral election. In no event may such a
deferral election be made after Participant’s cessation of Continuous Service, and no deferral election shall have any force or effect unless such election complies with all applicable requirements of Code Section 409A and the Treasury
Regulations thereunder. 
 In the absence of a valid deferral election filed in accordance with
this Paragraph 8, this Agreement shall be administered and interpreted in a manner that complies with the short-term deferral exception to Code Section 409A. Accordingly, any ambiguity in the terms and provisions of this Agreement shall be
interpreted and applied so as to comply with the short-term deferral exception standards under Code Section 409A and the Treasury Regulations thereunder. 

  
 10 

 9. Deferred Issuance Date. Notwithstanding any provision to
the contrary in this Agreement, to the extent this Award may be deemed to create a deferred compensation arrangement under Code Section 409A by reason of a deferral election made pursuant to Paragraph 8 above or otherwise, then the following
limitations shall apply: 
  

	 	 •
	 	 No shares of Common Stock or other amounts which become issuable or distributable under this Agreement by reason of Participant’s cessation of
Continuous Service shall actually be issued or distributed to Participant until the date of Participant’s Separation from Service or as soon thereafter as administratively practicable, but in no event later than the later of
(i) the close of the calendar year in which such Separation from Service occurs or (ii) the fifteenth day of the third calendar month following the date of such Separation from Service. 

 

	 	 •
	 	 No shares of Common Stock or other amounts which become issuable or distributable under this Agreement by reason of Participant’s cessation of
Continuous Service shall actually be issued or distributed to Participant prior to the earlier of (i) the first day of the seventh (7th) month following the date of Participant’s Separation from Service or (ii) the
date of Participant’s death, if Participant is deemed at the time of such Separation from Service to be a specified employee under Section 1.409A-1(i) of the Treasury Regulations issued under Code Section 409A, as determined by the
Administrator in accordance with consistent and uniform standards applied to all other Code Section 409A arrangements of the Corporation, and such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code
Section 409A(a)(2). The deferred Shares or other distributable amount shall be issued or distributed in a lump sum on the first day of the seventh (7th) month following the date of Participant’s Separation from Service or, if earlier,
the first day of the month immediately following the date the Corporation receives proof of Participant’s death. 

  

	 	 •
	 	 No amounts that vest and become payable under Paragraph 5 of this Agreement by reason of a Change in Control shall be distributed to Participant at
the time of such Change in Control, unless that transaction also qualifies as a change in control event under Code Section 409A and the Treasury Regulations thereunder and (if applicable) Participant’s deferral election under Paragraph 8
of this Agreement provides for a distribution upon such an event. In the absence of such a qualifying change in control, the distribution shall not be made until the date on which those amounts become distributable in accordance with
Participant’s deferral election under Paragraph 8 of this Agreement or (if there is no such election) the provisions of Paragraph 7(a) of this Agreement. 

10. Leaves of Absence. For purposes of the applying the various Continuous Service vesting provisions of
this Agreement, Participant shall be deemed to cease Continuous Service on the commencement date of any leave of absence and not to remain in Continuous 

  
 11 

 
Service status during the period of that leave, except to the extent otherwise required by law or pursuant to the following policy: 

 

	 	 •
	 	 Participant shall be deemed to remain in Continuous Service status during (i) the first three (3) months of an approved personal leave of
absence or (ii) the first seven (7) months of any bona fide leave of absence (other than an approved personal leave) and shall be deemed to cease Continuous Service upon the expiration of the applicable three (3)-month or seven (7)-month
period. 

  

	 	 •
	 	 In no event, however, shall Participant be deemed, for vesting purposes hereunder, to remain in Continuous Service beyond the earlier
of (i) the expiration date of that leave of absence, unless Participant returns to active Continuous Service or Employee status on or before that date or (ii) the date Participant’s Continuous Service or Employee status
actually terminates by reason of his or her voluntary or involuntary termination or by reason of his or her death or disability. 

 11. Compliance with Laws and Regulations. The issuance of shares of Common Stock pursuant to the Award shall be subject to compliance by the Corporation and Participant with all Applicable
Laws relating thereto. 
 12. 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 employee records or shall be delivered electronically to Participant through the Corporation’s electronic mail system or through an on-line brokerage firm
authorized by the Corporation to effect sales of the Common Stock issued hereunder. 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. mail,
postage prepaid and properly addressed to the party to be notified. 
 13. 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, Participant’s assigns, the legal
representatives, heirs and legatees of Participant’s estate and any beneficiaries of the Award designated by Participant. 
 14. 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 

 15. Governing Law. The interpretation, performance and
enforcement of this Agreement shall be governed by the laws of the State of California without resort to that State’s conflict-of-laws rules. 
 16. Employment at Will. Nothing in this Agreement or in the Plan shall confer upon Participant any right to remain in Continuous Service for any period of specific duration or interfere with
or otherwise restrict in any way the rights of the Corporation (or any Related Entity employing or retaining Participant) or of Participant, which rights are hereby expressly reserved by each, to terminate Participant’s Continuous Service at
any time for any reason, with or without Cause. 
 17. Plan Prospectus. The official prospectus
for the Plan is available on the Corporation’s intranet at: 
 http://gnet/HR/stocks_new.asp. Participant may also
obtain a printed copy of the prospectus by contacting Stock Plan Services at stockadministration@gilead.com. 
 18. 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 of Common Stock be issued (or other securities or property distributed) under this Agreement in the
absence of such acceptance. 
 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:
	 	 

  
 13 

 APPENDIX A 
 DEFINITIONS 
 The following definitions shall be in
effect under the Agreement: 
 A. Administrator shall mean the Compensation Committee of the Board
acting in its capacity as administrator of the Plan. 
 B. Agreement shall mean this Performance
Share Award 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 Performance Shares made to Participant pursuant to the terms of this Agreement. 
 E. Award
Date shall mean the date the Performance Shares 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 have the meaning assigned to such term in Section 11(c) of the Plan. 

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: 
 (i) 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; 

(ii) a sale, transfer or other disposition of all or substantially all of the Corporation’s assets;

  
 A-1

 (iii) 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 

(iv) 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. Should such holding company structure or other Parent entity be established for the Corporation, then subparagraph (iv) shall be applied solely to the board of directors of that holding company or Parent entity.

 I. Code shall mean the Internal Revenue Code of 1986, as amended. 

J. Common Stock shall mean shares of the Corporation’s common stock. 

K. Constructive Termination shall have the meaning assigned to such term in Section 11(d) of the Plan.

  
 A-2

 L. 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 a member of the board of directors of a Related Entity. 
 M. 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. In jurisdictions requiring notice in advance of an effective termination of Participant’s service as an Employee, Director or Consultant, Continuous Service shall be deemed to terminate upon the actual
cessation of such service to the Corporation or a Related Entity notwithstanding any required notice period that must be fulfilled before Participant’s termination as an Employee, Director or Consultant can be effective under Applicable Laws.

 N. 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. 
 O. Director shall mean a member of the Board. 
 P.
Employee shall mean an individual who is in the employ of the Corporation (or any Related Entity), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of
performance. 
 Q. 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 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. 
 R. 1934 Act shall mean the Securities Exchange Act of 1934, as amended from time to time. 
 S. Participant shall mean the person to whom the Award is made pursuant to the Agreement. 

  
 A-3

 T. Parent shall mean any corporation (other than the
Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of
the total combined voting power of all classes of stock in one of the other corporations in such chain. 
 U.
Performance Goals shall mean the performance goals specified on attached Schedule I which must be attained in order to satisfy the performance vesting requirements for the shares of Common Stock subject to this Award. 

V. Performance Period shall mean the period specified on attached Schedule I over which the attainment of
the Performance Goals is to be measured. 
 W. Performance-Qualified Shares shall mean the maximum
number of shares of Common Stock in which Participant can vest based on the level at which the Performance Goals for the Performance Period are attained and shall be calculated in accordance with the provisions of this Agreement. In no event shall
the number of such Performance-Qualified Shares exceed two hundred percent (200%) of the number of Performance Shares designated in Paragraph 1 of this Agreement. 

X. Performance Share shall mean the phantom shares of Common Stock awarded under this Agreement which will
entitle Participant to receive one or more actual shares of Common Stock pursuant to this Award upon the satisfaction of the performance and Continuous Service vesting requirements applicable to such Award. 

Y. Permanent Disability shall mean the inability of Participant to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12) months or more. 

Z. Plan shall mean the Corporation’s 2004 Equity Incentive Plan, as amended. 

AA. Related Entity shall mean 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 fifty percent (50%) of the total outstanding voting power of the outstanding securities of another corporation or entity in such chain. 

BB. Retirement shall mean the Participant’s cessation of Employee status on or after the date on which
his or her combined age and years of Continuous Service equal or exceed seventy (70) years. 

  
 A-4

 CC. Separation from Service shall mean the Participant’s
cessation of Employee status by reason of his or her death, retirement or termination of employment. The Participant shall be deemed to have terminated employment for such purpose at such time as the level of his or her bona fide services to be
performed as an Employee (or as a consultant or independent contractor) permanently decreases to a level that is not more than twenty percent (20%) of the average level of services he or she rendered as an Employee during the immediately
preceding thirty-six (36) months (or such shorter period for which he or she may have rendered such services). Solely for purposes of determining when a Separation from Service occurs, Participant will be deemed to continue in
“Employee” status for so long as he or she remains in the employ of one or more members of the Employer Group, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of
performance. “Employer Group” means the Corporation and any Parent or Subsidiary and any other corporation or business controlled by, controlling or under common control with, the Corporation, as determined in accordance with Sections
414(b) and (c) of the Code and the Treasury Regulations thereunder, except that in applying Sections 1563(1), (2) and (3) of the Code for purposes of determining the controlled group of corporations under Section 414(b), the
phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place the latter phrase appears in such sections and in applying Section 1.414(c)-2 of the Treasury Regulations for purposes of determining
trades or businesses that are under common control for purposes of Section 414(c), the phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place the latter phrase appears in
Section 1.414(c)-2 of the Treasury Regulations. Any such determination as to Separation from Service, however, shall be made in accordance with the applicable standards of the Treasury Regulations issued under Section 409A of the Code.

 DD. Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global or Global Select
Market or the New York Stock Exchange. 
 EE. Subsidiary shall mean any corporation (other than
the Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
 FF. Vesting Schedule shall mean the schedule set forth in Paragraph 1 of the Agreement, pursuant to which the Performance Shares and the underlying shares of Common Stock are to vest upon
the satisfaction of the performance and Continuous Service vesting requirements applicable to this Award. 
 GG.
Withholding Taxes shall mean the federal, state and local income taxes and the employee portion of the federal, state and local employment taxes required to be withheld by the Corporation in connection with the vesting and issuance of
the shares of Common Stock which vest under of the Award, any phantom dividend equivalents distributed with respect to those shares and any other amounts distributable in replacement or substitution of such shares. 

  
 A-5

 SCHEDULE I 
 PERFORMANCE GOALS AND PERFORMANCE PERIOD 
 PERFORMANCE PERIOD

 The measurement period for the Performance Shares awarded to Participant shall be the three-year
period beginning January 1, 20     and ending December 31, 20     (the “Performance Period”). 
 PERFORMANCE GOALS FOR PERFORMANCE VESTING 

Performance Goal One – Total Shareholder Return: The first performance vesting requirement for the
Performance Shares awarded to Participant shall be tied to the percentile level at which the total shareholder return (including stock price appreciation and reinvestment of any cash dividends or other stockholder distributions) to the
Corporation’s stockholders over the Performance Period stands in relation to the total shareholder return realized for that period by the companies comprising the AMEX BioPharma Index. 

For such purpose, the total shareholder return (“TSR”) shall be determined pursuant to the following formula:

  

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

 * Ending Stock Price is the average daily closing price per share calculated for all
trading days within the entire duration of the Performance Period. 
 ** Beginning Stock Price is the average
daily closing price per share calculated for all trading days within the 20     calendar year. 
 *** Reinvested Dividends shall be calculated by multiplying (i) the aggregate number of shares (including fractional shares) that could have been purchased during the Performance Period had each cash
dividend paid on a single share during that period been immediately reinvested in additional shares (or fractional shares) at the closing selling price per share on the applicable dividend payment date by (ii) the average daily closing price
per share calculated for the entire duration of the Performance Period. 
 Each of the foregoing amounts shall
be equitably adjusted for stock splits, stock dividends, recapitalizations and other similar events affecting the shares in question without the issuer’s receipt of consideration. 

For companies in the AMEX BioPharma Index which are not on a calendar fiscal year, TSR will be measured on the basis of
their four fiscal quarters each year that coincide with the Corporation’s calendar fiscal year. 

 Should a Change in Control occur during the Performance Period, then TSR
will be measured on the basis of daily closing prices and reinvested dividends over an abbreviated Performance Period ending with the Corporation’s last complete fiscal quarter coincident with or immediately preceding the effective date of that
Change in Control. 
 Performance Goal Two - Revenue Growth: The second performance vesting
requirement for the Performance Shares shall be tied to the percentile level at which Corporation’s revenue growth for that same 3-year period stands in relation to the revenue growth realized for that period by the companies comprising the
AMEX BioPharma Index. 
 For such purpose, revenue growth shall be determined pursuant to the following formula:

  

					
	Revenue Growth =	 	(Ending Revenue** - Beginning Revenue*)	 	
		 	Beginning Revenue*	 	

 * Ending Revenue is the annual revenue recognized for financial reporting purposes
(on a consolidated basis) for the last completed calendar year in the Performance Period. 
 ** Beginning
Revenue is the annual revenue recognized for financial reporting purposes (on a consolidated basis) for the 20     calendar year. 
 Revenue Growth shall be calculated for the Corporation and each company comprising the AMEX BioPharma Index on a calendar fiscal year basis, whether or not that company is on a calendar fiscal year.
Accordingly, for each non-calendar fiscal year company, Ending Revenue shall be measured on the basis of its four fiscal quarters falling within the 20     calendar year. 

Should a Change in Control occur during the Performance Period, then Ending Revenue for the Corporation and each company
comprising the AMEX BioPharma Index shall be calculated by multiplying (i) the quarterly revenue for each such company for the fiscal quarter ending coincident with or immediately prior to the effective date of the Change in Control by four
(4). 
 Performance-Qualified Shares: The actual number of Performance-Qualified Shares may range
from 0% to 200% of the number of Performance Shares designated in Paragraph 1 of this Agreement, with the actual percentage to be determined on the basis of the percentile level at which the Administrator certifies that each Performance Goal has
been attained in relation to the corresponding Performance Goal for the companies comprising the AMEX BioPharma Index; provided, however, that the maximum number of the shares of the Corporation’s common stock that may qualify as
Performance-Qualified Shares may not exceed 200% of the number of Performance Shares designated in Paragraph 1 of this Agreement. 

 Matrix for Determining Number of Performance-Qualified Shares Based on
Attained Levels of Performance Goals: The number of shares of the Corporation’s common stock that may qualify as Performance-Qualified Shares on the basis of the certified percentile levels of attainment shall be calculated by
multiplying the number of Performance Shares designated in Paragraph 1 of this Agreement by the applicable percentage determined in accordance with the following matrix: 
 TSR of Corporation vs. AMEX BioPharma Index 
  

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

Revenue Growth of Corporation vs. AMEX BioPharma Index

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