EXHIBIT 10.1


 


EXACT
SCIENCES CORPORATION


 


Nonstatutory (Non-Qualified) Stock Option Agreement


Cover Sheet


 


EXACT Sciences
Corporation, a Delaware corporation (the “Company”), hereby grants as of the
date below (the “Grant Date”) to the person named below (the “Optionee”) and
the Optionee hereby accepts, an option to purchase the number of shares (the “Option
Shares”) listed below of the Company’s common stock, $.01 par value per share (“Common
Stock”), at the price per share and with a vesting start date (the “Vesting
Start Date”) listed below, such option to be on the terms and conditions
specified in the attached Exhibit A.


 


	
  Optionee
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
   

  
	
   

  	
   

  
	
  Vesting
  Start Date:

  	
   

  	
   

  
	
   

  	
   

  
	
  Number of
  Option Shares:

  	
   

  	
   

  
	
   

  	
   

  
	
  Exercise
  Price Per Share:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Payment
  alternatives

  	
   

  	
   

  
	
  (specify any or all of

  
	
  Section 7(a)(i) – (iii))

  
									



 


IN WITNESS
WHEREOF, the Company and the Optionee have caused this instrument to be
executed as of the Grant Date set forth above.


 


 


	
   

  	
   

  	
  EXACT
  SCIENCES CORPORATION

  
	
  (Optionee
  Signature)

  	
  100 Campus
  Drive

  
	
   

  	
  Marlborugh
  MA 01752

  
	
   

  	
   

  	
   

  
	
  (Street
  Address)

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
  (City/State/Zip
  Code)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Social
  Security Number)

  	
   

  



 


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EXHIBIT A


 


EXACT SCIENCES CORPORATION


 


Nonstatutory (Non-Qualified) Stock Option Agreement


Terms and Conditions


 


1.             Grant Under EXACT
Sciences Corporation 2000 Stock Option and Incentive Plan.  This option is granted pursuant to and is
governed by the Company’s 2000 Stock Option and Incentive Plan (the “Plan”)
and, unless the context otherwise requires, terms used herein shall have the
same meaning as in the Plan. 
Determinations made in connection with this option pursuant to the Plan
shall be governed by the Plan as it exists on the Grant Date.


 


2.             Grant as Nonstatutory
Stock Option. This option is a nonstatutory stock option and is not
intended to qualify as an incentive stock option under Section 422 of the
Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”).


 


3.             Vesting of Option
if Business Relationship Continues. 
All of the Option Shares initially shall be unvested shares.  For so long as the Optionee maintains a
continuous service to the Company as an employee, officer, director, consultant
or advisor (a “Business Relationship”) the Option Shares shall become
vested according to the schedule set forth below and the Optionee may exercise
this option as to any vested shares:


 


	
  Vesting Date

  	
   

  	
   

  	
   

  	
  Number of Vested Shares

  
	
  One year
  from the Vesting Start Date

  	
   

  	
  -

  	
   

  	
  [        ]%
  of the Option Shares

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On the first day of each subsequent [one]
  month period following one year from the Vesting Start Date

  	
   

  	
  -

  	
   

  	
  [        ]%
  of the Option Shares

  



 


Notwithstanding
the foregoing, the Board may, in its discretion, accelerate the date that any
installment of this option becomes exercisable. 
The foregoing rights are cumulative and (subject to Sections 4 or 5
hereof if the Optionee ceases to have a Business Relationship with the Company)
may be exercised only before the date which is ten years from the date of this
option grant.


 


4.             Termination of
Business Relationship.


 


(a)           Termination
Other Than for Cause.  If the
Optionee ceases to maintain a Business Relationship with the Company, other
than by reason of death or disability as defined in Section 5 or
termination for Cause as defined in Section 4(c), no further installments of
this option shall become exercisable, and this option shall expire (may no
longer be exercised) after the passage of three months from the termination of
the Optionee’s Business Relationship, but in no event later than the scheduled
expiration date.  For purposes hereof, a
Business Relationship shall not be considered as having terminated during any leave of absence if such leave of absence has been approved
in writing by the Company and if such written approval contractually obligates
the Company to continue the Business Relationship of the Optionee after the
approved period of absence; in the event of such an approved leave of absence,
vesting of this option shall be suspended (and the period of the leave of
absence shall be added to all vesting dates) unless otherwise provided in the
Company’s written approval of the leave of absence.  This option shall not be affected by any
change in the type of Business Relationship the Optionee has within or among
the Company and its Subsidiaries so long as the Optionee continuously maintains
a Business Relationship with the Company or any Subsidiary (as defined in the
Plan).


 


(b)           Termination
for Cause.  If the Business
Relationship of the Optionee is terminated for Cause (as defined in Section
4(c)), this option shall expire (that is, may no longer be exercised) upon the
Optionee’s receipt of written notice of such termination and shall thereafter
not be exercisable to any extent whatsoever.


 


(c)           Definition
of Cause.  “Cause” shall
mean conduct involving one or more of the following: (i) the substantial
and continuing failure of the Optionee, after notice thereof, to render
services to the Company in accordance with the terms or requirements of his or
her Business Relationship; (ii) disloyalty, gross negligence, willful
misconduct, dishonesty, fraud or breach of fiduciary duty to the Company;  (iii) deliberate disregard of the rules
or policies of the Company, or breach of an employment or other agreement with
the Company, which results in direct or indirect loss, damage or injury to the
Company;


 


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(iv) the
unauthorized disclosure of any trade secret or confidential information of the
Company; or (v) the commission of an act which constitutes unfair
competition with the Company or which induces any customer or supplier to
breach a contract with the Company.


 


5.             Death; Disability.


 


(a)           Death.  If the Optionee dies while maintaining a
Business Relationship with the Company, this option may be exercised, to the
extent otherwise exercisable on the date of his or her death, by the Optionee’s
estate, personal representative or beneficiary to whom this option has been
transferred pursuant to Section 9, only at any time within 180 days
after the date of death, but not later than the scheduled expiration date.


 


(b)           Disability.  If the Optionee’s Business Relationship with
the Company is terminated by reason of his or her disability, this option may
be exercised, to the extent otherwise exercisable on the date of cessation of
the Business Relationship, only at any time within 180 days after such
cessation of the Business Relationship, but not later than the scheduled
expiration date.  For purposes hereof, “disability”
means “permanent and total disability” as defined in Section 22(e)(3) of
the Code.


 


6.             Partial Exercise.  This option may be exercised in part at any
time and from time to time within the above limits, except that this option may
not be exercised for a fraction of a share.


 


7.             Payment of
Exercise Price.


 


(a)           Payment
Options.  The exercise price
shall be paid by one or any combination of the following forms of payment that
are applicable to this option:


 


(i)            in
cash, or by check payable to the order of the Company;


 


(ii)           if
the Common Stock is then traded on a national securities exchange or on the
Nasdaq National Market (or successor trading system), delivery of an
irrevocable and unconditional undertaking, satisfactory in form and substance to
the Company, by a creditworthy broker to deliver promptly to the Company
sufficient funds to pay the exercise price, or delivery by the Optionee to the
Company of a copy of irrevocable and unconditional instructions, satisfactory
in form and substance to the Company, to a creditworthy broker to deliver
promptly to the Company cash or a check sufficient to pay the exercise price;


 


(iii)         subject
to Section 7(b) below, if the Common Stock is then traded on a national
securities exchange or on the Nasdaq National Market (or successor trading
system), by delivery of shares of Common Stock owned by the Optionee having a
fair market value equal as of the date of exercise to the option price; or


 


(iv)          any
combination of (i), (ii) and (iii) above.


 


In the case of (iii) above, fair market value as of the date of
exercise shall be determined as of the last business day for which such prices
or quotes are available prior to the date of exercise and shall mean
(x) the last reported sale price (on that date) of the Common Stock on the
principal national securities exchange on which the Common Stock is traded, if
the Common Stock is then traded on a national securities exchange; or
(y) the last reported sale price (on that date) of the Common Stock on the
Nasdaq National Market (or successor trading system), if the Common Stock is
not then traded on a national securities exchange.


 


(b)           Limitations
on Payment by Delivery of Common Stock. 
If Section 7(a)(iii) is applicable, and if the Optionee delivers Common
Stock held by the Optionee (“Old Stock”) to the Company in full or
partial payment of the exercise price and the Old Stock so delivered is subject
to restrictions or limitations imposed by agreement between the Optionee and
the Company, an equivalent number of Option Shares shall be subject to all
restrictions and limitations applicable to the Old Stock to the extent that the
Optionee paid for the Option Shares by delivery of Old Stock, in addition to
any restrictions or limitations imposed by this Agreement.  Notwithstanding the foregoing, the Optionee
may not pay any part of the exercise price hereof by transferring Common Stock
to the Company unless such Common Stock has been owned by the Optionee free of
any substantial risk of forfeiture for at least six months.


 


8.             Method of
Exercising Option.  Subject to
the terms and conditions of this Agreement, this option may be exercised by
written notice to the Company at its principal executive office, or to such
transfer agent as the Company shall designate. 
Such notice shall state the election to exercise this option and the
number of Option Shares for which it is being exercised and shall be signed by
the person or persons so exercising this option.  Such notice shall be accompanied by payment
of the full purchase price of such shares,


 


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and the Company shall deliver a
certificate or certificates representing such shares as soon as practicable
after the notice shall be received.  Such
certificate or certificates shall be registered in the name of the person or
persons so exercising this option (or, if this option shall be exercised by the
Optionee and if the Optionee shall so request in the notice exercising this
option, shall be registered in the name of the Optionee and another person
jointly, with right of survivorship). In the event this option shall be
exercised, pursuant to Section 5 hereof, by any person or persons other
than the Optionee, such notice shall be accompanied by appropriate proof of the
right of such person or persons to exercise this option.


 


9.             Option Not
Transferable.  This option is not
transferable or assignable except by will or by the laws of descent and
distribution.  During the Optionee’s
lifetime only the Optionee can exercise this option.


 


10.          No Obligation to
Exercise Option.  The grant and
acceptance of this option imposes no obligation on the Optionee to exercise it.


 


11.          No Obligation to
Continue Business Relationship. 
Neither the Plan, this Agreement, nor the grant of this option imposes
any obligation on the Company to have a Business Relationship with the
Optionee.


 


12.          No Rights
as Stockholder until Exercise. 
The Optionee shall have no rights as a stockholder with respect to the
Option Shares until such time as the Optionee has exercised this option by
delivering a notice of exercise and has paid in full the purchase price for the
shares so exercised in accordance with Section 8.  Except as is expressly provided in the Plan
with respect to certain changes in the capitalization of the Company, no
adjustment shall be made for dividends or similar rights for which the record
date is prior to such date of exercise.


 


13.          Capital Changes and
Business Successions.  The Plan
contains provisions covering the treatment of options in a number of contingencies
such as stock split and mergers. 
Provisions in the Plan for adjustment with respect to stock subject to
options and the related provisions with respect to successors to the business
of the Company are hereby made applicable hereunder and are incorporated herein
by reference.


 


14.          Withholding Taxes.  If the Company in its discretion determines
that it is obligated to withhold any tax in connection with the exercise of
this option, or in connection with the transfer of, or the lapse of
restrictions on, any Common Stock or other property acquired pursuant to this
option, the Optionee hereby agrees that the Company may withhold from the
Optionee’s wages or other remuneration the appropriate amount of tax.  At the discretion of the Company, the amount
required to be withheld may be withheld in cash from such wages or other
remuneration or in kind from the Common Stock or other property otherwise
deliverable to the Optionee on exercise of this option.  The Optionee further agrees that, if the
Company does not withhold an amount from the Optionee’s wages or other
remuneration sufficient to satisfy the withholding obligation of the Company,
the Optionee will make reimbursement on demand, in cash, for the amount
underwithheld.


 


15.          Lock-up Agreement.
The Optionee agrees that in the event that the Company effects an underwritten
public offering of Common Stock registered under the Securities Act, the Option
Shares may not be sold, offered for sale or otherwise disposed of, directly or
indirectly, without the prior written consent of the managing underwriter(s) of
the offering, for such period of time after the execution of an underwriting
agreement in connection with such offering that all of the Company’s then
directors and executive officers agree to be similarly bound.


 


16.          Provision of
Documentation to Optionee.  By
signing this Agreement the Optionee acknowledges receipt of a copy of this
Agreement and a copy of the Plan.


 


17.          Compliance with
Securities Act.  The Company
shall not be obligated to sell or issue any Common Stock or other securities
pursuant to the exercise of this option unless the shares of Common Stock or
other securities with respect to which this option is being exercised are at
that time effectively registered or exempt from registration under the
Securities Act of 1933, as amended, and applicable state securities laws.  In the event shares or other securities shall
be issued which shall not be so registered, the Optionee hereby represents,
warrants and agrees that he will receive such shares or other securities for
investment and not with a view to their resale or distribution, and will
execute an appropriate investment letter satisfactory to the Company and its
counsel.


 


18.          Amendment of Option.  The Board may amend, modify or terminate this
option including, but not limited to, substituting therefore another option of
the same or a different type, and changing the date of exercise or realization,
provided that, the Optionee’s consent to
such action shall be required unless the Board determines that the action,
taking into account any related action, would not materially and adversely
affect the Optionee.


 


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19.          Miscellaneous.


 


(a)           Notices.  All notices hereunder shall be in writing and
shall be deemed given when sent by certified or registered mail, postage
prepaid, return receipt requested, if to the Optionee, to the address set forth
on the Cover Sheet or at the address shown on the records of the Company, and
if to the Company, to the Company’s principal executive offices, attention of
the Corporate Secretary.


 


(b)           Entire
Agreement; Modification.  This
Agreement and the Plan constitutes the entire agreement between the parties
relative to the subject matter hereof, and supersedes all proposals, written or
oral, and all other communications between the parties relating to the subject
matter of this Agreement.


 


(c)           Fractional
Shares.              If this option
becomes exercisable for a fraction of a share because of the adjustment
provisions contained in the Plan, such fraction shall be rounded down to the
nearest whole share.


 


(d)           Severability.  The invalidity, illegality or
unenforceability of any provision of this Agreement shall in no way affect the
validity, legality or enforceability of any other provision.


 


(e)           Successors
and Assigns.  This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, subject to the limitations set forth in
Section 9 hereof.


 


(f)            Governing
Law.  This Agreement shall be
governed by and interpreted in accordance with the laws of the Delaware,
without giving effect to the principles of the conflicts of laws thereof.


 


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