Document:

exv10w8

 

Exhibit 10.8

2003 INCENTIVE AWARD PLAN

EMPLOYEE STOCK OPTION AGREEMENT

(Effective February 8, 2007)

     THIS AGREEMENT, dated the Grant Date set forth on the Stock Option Grant Notice (“Grant
Notice”) (the terms of which are incorporated by reference and made a part of this Agreement), is
made by and between Gen-Probe Incorporated, a Delaware corporation, hereinafter referred to as the
“Company,” and the Employee of the Company, or a Subsidiary of the Company, identified on the Grant
Notice and hereinafter referred to as “Optionee.”

     WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase shares of its
Common Stock, par value $0.0001 per share; and

     WHEREAS, the Company wishes to carry out The 2003 Incentive Award Plan of Gen-Probe
Incorporated (the “Plan”) (the terms of which are hereby incorporated by reference and made a part
of this Agreement); and

     WHEREAS, the Committee, appointed to administer the Plan, has determined that it would be to
the advantage and best interest of the Company and its stockholders to grant the Stock Option (the
“Option”) provided for herein to the Optionee as an inducement to enter into or remain in the
service of the Company or its Subsidiaries and as an incentive during such service, and has advised
the Company thereof and instructed the undersigned officer to issue said Option.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby
agree as follows:

ARTICLE I

DEFINITIONS

     1.1 General. Wherever the following terms are used in this Agreement they shall have the
meanings specified below, unless the context clearly indicates otherwise.

     1.2 Board. “Board” shall mean the Board of Directors of the Company.

     1.3 Cause. “Cause” shall mean (a) the Optionee’s failure or refusal to perform specific and
lawful directions with respect to the Optionee’s employment with the Company or a Subsidiary, (b)
the commission by the Optionee of a felony or the perpetration by the Optionee of an act of fraud,
dishonesty, or misrepresentation against, or breach of fiduciary duty toward, the Company or a
Subsidiary or (c) any willful act or omission by the Optionee which is

 

 

injurious in any material respect to the financial condition or business reputation of the
Company or a Subsidiary.

     1.4 Code. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     1.5 Committee. “Committee” shall mean the Compensation Committee of the Board, or a
subcommittee of the Board, appointed as provided in Section 9.1 of the Plan.

     1.6 Common Stock. “Common Stock” shall mean the Common Stock of the Company, par value $0.0001
per share.

     1.7 Company. “Company” shall mean Gen-Probe Incorporated, a Delaware corporation.

     1.8 Director. “Director” shall mean a member of the Board, whether such Director is an
Employee or an Independent Director (as defined in the Plan).

     1.9 Employee. “Employee” shall mean any officer or other employee (as defined in accordance
with Section 3401(c) of the Code) of the Company, or of any Subsidiary.

     1.10 Exchange Act. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     1.11 Fair Market Value. “Fair Market Value” shall mean, as of any date, the value of the
Common Stock determined as follows:

     (a) If the Common Stock is listed on any established stock exchange or a national market
system, the Fair Market Value of a share of Common Stock shall be the closing sales price for such
stock (or the closing bid, if no sales were reported) as quoted on such exchange or system (or the
exchange or system with the greatest volume of trading in the Common Stock) for such date, or if no
bids or sales were reported for such date, then the closing sales price (or the closing bid, if no
sales were reported) on the trading date immediately prior to such date during which a bid or sale
occurred, in each case, as reported by The Nasdaq Stock Market or such other source as the Board
deems reliable.

     (b) In the absence of such markets for the Common Stock, the Fair Market Value shall be
determined in good faith by the Board.

     1.12 Option. “Option” shall mean the Stock Option granted under this Agreement and Article IV
of the Plan.

     1.13 Optionee. “Optionee” shall mean the Employee granted the Option under this Agreement and
the Plan.

 

 

     1.14 Plan. “Plan” shall mean The 2003 Incentive Award Plan of Gen-Probe Incorporated, as in
effect on the Grant Date.

     1.15 Retirement. “Retirement” shall mean the Optionee’s resignation after the Optionee has
attained age 60 and completed ten (10) or more years of employment with the Company and the
Subsidiaries.

     1.16 Secretary. “Secretary” shall mean the Secretary of the Company.

     1.17 Securities Act. “Securities Act” shall mean the Securities Act of 1933, as amended.

     1.18 Subsidiary. “Subsidiary” shall mean any corporation in an unbroken chain of corporations
beginning with the Company if each of the corporations other than the last corporation in the
unbroken chain then owns 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.

     1.19 Termination of Employment. “Termination of Employment” shall mean the time when the
employee-employer relationship between the Optionee and the Company or any Subsidiary is terminated
for any reason, with or without Cause, including, but not by way of limitation, a termination by
resignation, discharge, death, disability or Retirement; but excluding (a) a termination where
there is a simultaneous reemployment or continuing employment of the Optionee by the Company or any
Subsidiary or a parent corporation thereof (within the meaning of Section 422 of the Code), (b) at
the discretion of the Committee, a termination which results in a temporary severance of the
employee-employer relationship, and (c) at the discretion of the Committee, a termination which is
followed by the simultaneous establishment of a consulting relationship by the Company or a
Subsidiary with the former employee until the consultancy terminates and (d) terminations of
employment due to retirement which are followed by the continuing service of the Holder as a
Director of the Company, until such service as a director terminates. The Committee, in its
absolute discretion, shall determine the effect of all matters and questions relating to
Termination of Employment, including, but not by way of limitation, the question of whether a
Termination of Employment resulted from a discharge for Cause, and all questions of whether
particular leaves of absence constitute Terminations of Employment; provided, however, that, if
this Option is designated as an Incentive Stock Option, unless otherwise determined by the
Administrator in its discretion, a leave of absence, change in status from an employee to an
independent contractor or other change in the employee-employer relationship shall constitute a
Termination of Employment if, and to the extent that, such leave of absence, change in status or
other change interrupts employment for the purposes of Section 422(a)(2) of the Code and the then
applicable regulations and revenue rulings under said Section. Notwithstanding any other provision
of the Plan or this Agreement, the Company or any Subsidiary has an absolute and unrestricted right
to terminate the Optionee’s employment at any time for any reason whatsoever, with or without
Cause, except to the extent expressly provided otherwise in writing.

 

 

ARTICLE II

GRANT OF OPTION

     2.1 Grant of Option. In consideration of the Optionee’s agreement to remain in the employ of
the Company or its Subsidiaries and for other good and valuable consideration, effective as of Date
of Grant set forth on the Grant Notice, the Company irrevocably grants to the Optionee the option
to purchase any part or all of an aggregate of the number of shares of Common Stock set forth on
the Grant Notice, upon the terms and conditions set forth in this Agreement. The Option shall be
either an Incentive Stock Option or a Non-Qualified Stock Option, as set forth on the Grant Notice.

     2.2 Purchase Price. The purchase price of the shares of Common Stock subject to the Option per
share shall be as set forth on the Grant Notice, without commission or other charge; provided,
however, that if this Option is designated as an Incentive Stock Option the price per share of the
shares subject to the Option shall not be less than the greater of (i) 100% of the Fair Market
Value of a share of Common Stock on the Date of Grant, or (ii) 110% of the Fair Market Value of a
share of Common Stock on the Date of Grant in the case of an Optionee then owning (within the
meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all
classes of stock of the Company or any Subsidiary or parent corporation thereof (within the meaning
of Section 422 of the Code).

     2.3 Consideration to the Company. In consideration of the granting of the Option by the
Company, the Optionee agrees to render faithful and efficient services to the Company or any
Subsidiary, with such duties and responsibilities as the Company shall from time to time prescribe.
Nothing in the Plan or this Agreement shall confer upon the Optionee any right to continue in the
employ of the Company or any Subsidiary or shall interfere with or restrict in any way the rights
of the Company and its Subsidiaries, which are hereby expressly reserved, to discharge the Optionee
at any time for any reason whatsoever, with or without Cause.

 

 

ARTICLE III

PERIOD OF EXERCISABILITY

     3.1 Commencement of Exercisability.

     (a) Subject to Sections 3.3 and 5.11, the Option shall become exercisable in such amounts and
at such times as are set forth on the Grant Notice.

     (b) No portion of the Option which has not become exercisable at Termination of Employment
shall thereafter become exercisable, except as may be otherwise provided by the Committee.

     3.2 Duration of Exercisability. The installments provided for in Section 3.1(a) and the Grant
Notice are cumulative. Each such installment which becomes exercisable pursuant to Section 3.1
shall remain exercisable until it becomes unexercisable under Section 3.3.

     3.3 Expiration of Option. The Option may not be exercised to any extent by anyone after the
first to occur of the following events:

     (a) The expiration of seven (7) years from the Date of Grant; or

     (b) If this Option is designated as an Incentive Stock Option and the Optionee owned (within
the meaning of Section 424(d) of the Code), at the time the Option was granted, more than ten
percent (10%) of the total combined voting power of all classes of stock of the Company or any
Subsidiary or parent corporation thereof (within the meaning of Section 422 of the Code), the
expiration of five (5) years from the date the Option was granted; or

     (c) The expiration of thirty (30) days following the date of the Optionee’s Termination of
Employment, unless such Termination of Employment occurs by reason of the Optionee’s discharge for
Cause, or by reason of the Optionee’s death, Retirement or disability (within the meaning of
Section 22(e)(3) of the Code); or

     (d) The expiration of one (1) day following the date of the Optionee’s Termination of
Employment by reason of the Optionee’s discharge for Cause; or

     (e) The expiration of six (6) months following the date of the Optionee’s Termination of
Employment by reason of the Optionee’s death or disability (within the meaning of Section 22(e)(3)
of the Code); or

     (f) The expiration of one (1) year following the date of the Optionee’s Termination of
Employment by reason of the Optionee’s Retirement.

     3.4 Special Tax Consequences. The Optionee acknowledges that, to the extent that the aggregate
Fair Market Value of stock with respect to which “incentive stock options” (within the meaning of
Section 422 of the Code, but without regard to Section 422(d) of the Code),

 

 

including the Option, are exercisable for the first time by the Optionee during any calendar
year (under the Plan and all other incentive stock option plans of the Company, any Subsidiary and
any parent corporation thereof (within the meaning of Section 422 of the Code)) exceeds $100,000,
the Option and such other options shall be treated as not qualifying under Section 422 of the Code
but rather shall be taxed as non-qualified stock options. The Optionee further acknowledges that
the rule set forth in the preceding sentence shall be applied by taking options into account in the
order in which they were granted. For purposes of these rules, the Fair Market Value of stock shall
be determined as of the time the option with respect to such stock is granted.

ARTICLE IV

EXERCISE OF OPTION

     4.1 Person Eligible to Exercise. Subject to Section 5.2, during the lifetime of the Optionee,
only the Optionee may exercise the Option or any portion thereof. After the death of the Optionee,
any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable
under Section 3.3, be exercised by the Optionee’s personal representative or by any person
empowered to do so under the Optionee’s will or under the then applicable laws of descent and
distribution.

     4.2 Partial Exercise. Any exercisable portion of the Option or the entire Option, if then
wholly exercisable, may be exercised in whole or in part at any time prior to the time when the
Option or portion thereof becomes unexercisable under Section 3.3; provided, however, that each
partial exercise shall be for not less than ten (10) shares and shall be for whole shares only.

     4.3 Manner of Exercise. The Option, or any exercisable portion thereof, may be exercised
solely by delivery to the Secretary or the Secretary’s office of all of the following prior to the
time when the Option or such portion thereof becomes unexercisable under Section 3.3:

     (a) An Exercise Notice in writing signed by the Optionee or the other person then entitled to
exercise the Option or portion thereof, stating that the Option or portion thereof is thereby
exercised, such notice complying with all applicable rules established by the Committee. Such
notice shall be substantially in the form attached as Attachment III to the Grant Notice (or such
other form as is prescribed by the Committee); and

     (b) (i) Full payment (in cash or by check) for the shares with respect to which the Option or
portion thereof is exercised, to the extent permitted under applicable laws; or

     (ii) With the consent of the Committee, such payment may be made, in whole or in part,
through the delivery of shares of Common Stock which have been owned by the Optionee for at
least six months, duly endorsed for transfer to the Company with a Fair Market Value on the date
of delivery equal to the aggregate exercise price of the Option or exercised portion thereof; or

     (iii) To the extent permitted under applicable laws, through the delivery of a notice that
the Optionee has placed a market sell order with a broker with respect to shares of

 

 

Common Stock then issuable upon exercise of the Option, and that the broker has been
directed to pay a sufficient portion of the net proceeds of the sale to the Company in
satisfaction of the Option exercise price, provided, that payment of such proceeds is then made
to the Company upon settlement of such sale; or

     (iv) With the consent of the Committee, any combination of the consideration provided in
the foregoing subparagraphs (i), (ii) and (iii); and

     (c) A bona fide written representation and agreement, in such form as is prescribed by the
Committee, signed by the Optionee or other person then entitled to exercise such Option or portion
thereof, stating that the shares of Common Stock are being acquired for the Optionee’s own account,
for investment and without any present intention of distributing or reselling said shares or any of
them except as may be permitted under the Securities Act and then applicable rules and regulations
thereunder, and that the Optionee or other person then entitled to exercise such Option or portion
thereof will indemnify the Company against and hold it free and harmless from any loss, damage,
expense or liability resulting to the Company if any sale or distribution of the shares by such
person is contrary to the representation and agreement referred to above. The Committee may, in its
absolute discretion, take whatever additional actions it deems appropriate to ensure the observance
and performance of such representation and agreement and to effect compliance with the Securities
Act and any other federal or state securities laws or regulations. Without limiting the generality
of the foregoing, the Committee may require an opinion of counsel acceptable to it to the effect
that any subsequent transfer of shares acquired on an Option exercise does not violate the
Securities Act, and may issue stop-transfer orders covering such shares. Share certificates
evidencing Common Stock issued on exercise of the Option shall bear an appropriate legend referring
to the provisions of this subsection (c) and the agreements herein. The written representation and
agreement referred to in the first sentence of this subsection (c) shall, however, not be required
if the shares to be issued pursuant to such exercise have been registered under the Securities Act,
and such registration is then effective in respect of such shares; and

     (d) Full payment to the Company (or other employer corporation) of all amounts which, under
federal, state or local tax law, it is required to withhold upon exercise of the Option. With the
consent of the Committee, (i) shares of Common Stock owned by the Optionee for at least six months
duly endorsed for transfer or (ii) shares of Common Stock issuable to the Optionee upon exercise of
the Option, having a Fair Market Value at the date of Option exercise equal to the statutory
minimum sums required to be withheld, may be used to make all or part of such payment; and

     (e) In the event the Option or portion thereof shall be exercised pursuant to Section 4.1 by
any person or persons other than the Optionee, appropriate proof of the right of such person or
persons to exercise the Option.

     4.4 Conditions to Issuance of Stock Certificates. The shares of Common Stock deliverable upon
the exercise of the Option, or any portion thereof, may be either previously authorized but
unissued shares or issued shares which have then been reacquired by the Company. Such shares shall
be fully paid and nonassessable. The Company shall not be required

 

 

to issue or deliver any certificate or certificates for shares of Common Stock purchased upon
the exercise of the Option or portion thereof prior to fulfillment of all of the following
conditions:

     (a) The admission of such shares to listing on all stock exchanges on which such Common Stock
is then listed; and

     (b) The completion of any registration or other qualification of such shares under any state
or federal law or under rulings or regulations of the Securities and Exchange Commission or of any
other governmental regulatory body, which the Committee shall, in its absolute discretion, deem
necessary or advisable; and

     (c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee shall, in its absolute discretion, determine to be necessary or
advisable; and

     (d) The receipt by the Company of full payment for such shares, including payment of all
amounts which, under federal, state or local tax law, the Company (or other employer corporation)
is required to withhold upon exercise of the Option; and

     (e) The lapse of such reasonable period of time following the exercise of the Option as the
Committee may from time to time establish for reasons of administrative convenience.

     4.5 Rights as Stockholder. The holder of the Option shall not be, nor have any of the rights
or privileges of, a stockholder of the Company in respect of any shares purchasable upon the
exercise of any part of the Option unless and until certificates representing such shares shall
have been issued by the Company to such holder.

 

 

ARTICLE V

OTHER PROVISIONS

     5.1 Administration. The Committee shall have the power to interpret the Plan and this
Agreement and to adopt such rules for the administration, interpretation and application of the
Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions
taken and all interpretations and determinations made by the Committee in good faith shall be final
and binding upon the Optionee, the Company and all other interested persons. No member of the
Committee shall be personally liable for any action, determination or interpretation made in good
faith with respect to the Plan, this Agreement or the Option. In its absolute discretion, the Board
may at any time and from time to time exercise any and all rights and duties of the Committee under
the Plan and this Agreement.

     5.2 Option Not Transferable.

     (a) The Option may not be sold, pledged, assigned or transferred in any manner other than by
will or the laws of descent and distribution or, subject to the consent of the Committee, pursuant
to a “DRO” (as defined in the Plan), unless and until the Option has been exercised, or the shares
underlying such Option have been issued, and all restrictions applicable to such shares have
lapsed. Neither the Option nor any interest or right therein shall be liable for the debts,
contracts or engagements of the Optionee or his or her successors in interest or shall be subject
to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other
means whether such disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect, except to the extent
that such disposition is permitted by the preceding sentence.

     (b) During the lifetime of the Optionee, only the Optionee may exercise the Option (or any
portion thereof), unless it has been disposed of with the consent of the Committee pursuant to a
DRO. After the death of the Optionee, any exercisable portion of an Option may, prior to the time
when such portion becomes unexercisable under the Plan or the Option Agreement, be exercised by the
Optionee’s personal representative or by any person empowered to do so under the deceased
Optionee’s will or under the then applicable laws of descent and distribution.

     (c) Notwithstanding the foregoing provisions of this Section 5.2, if designated as a
Non-Qualified Stock Option, the Option may be transferred by the Optionee, in writing and with
prior written notice to the Committee, to any one or more Permitted Transferees (as defined below),
subject to the following terms and conditions: (i) the Option, as transferred to a Permitted
Transferee, shall not be assignable or transferable by the Permitted Transferee other than by will
or the laws of descent and distribution; (ii) the Option, as transferred to a Permitted Transferee,
shall continue to be subject to all the terms and conditions of the Option as applicable to the
Optionee (other than the ability to further transfer the Option); and (iii) the Optionee and the
Permitted Transferee shall execute any and all documents requested by the Committee, including,
without limitation documents to (A) confirm the status of the transferee as

 

 

a Permitted Transferee, (B) satisfy any requirements for an exemption for the transfer under
applicable federal and state securities laws and (C) evidence the transfer. For purposes of this
subsection (c), “Permitted Transferee” shall mean, with respect to the Optionee, any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece,
nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law, including adoptive relationships, any person sharing the Optionee’s household (other
than a tenant or employee), a trust in which these persons (or the Optionee) control the management
of assets, and any other entity in which these persons (or the Optionee) own more than fifty
percent (50%) of the voting interests, or any other transferee specifically approved by the
Committee after taking into account any state or federal tax or securities laws applicable to
transferable Non-Qualified Stock Options.

     5.3 Lock-Up Period. The Optionee hereby agrees that, if so requested by the Company or any
representative of the underwriters (the “Managing Underwriter”) in connection with any registration
of the offering of any securities of the Company under the Securities Act, the Optionee shall not
sell or otherwise transfer any shares of Common Stock or other securities of the Company during
such period as may be requested in writing by the Managing Underwriter and agreed to in writing by
the Company (which period shall not be longer than 180 days) (the “Market Standoff Period”)
following the effective date of a registration statement of the Company filed under the Securities
Act.

     5.4 Restrictive Legends and Stop-Transfer Orders.

     (a) The share certificate or certificates evidencing the shares of Common Stock purchased
hereunder shall be endorsed with any legends that may be required by state or federal securities
laws.

     (b) The Optionee agrees that, in order to ensure compliance with the restrictions referred to
herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if
any, and that, if the Company transfers its own securities, it may make appropriate notations to
the same effect in its own records.

     (c) The Company shall not be required: (i) to transfer on its books any shares of Common Stock
that have been sold or otherwise transferred in violation of any of the provisions of this
Agreement, or (ii) to treat as owner of such shares of Common Stock or to accord the right to vote
or pay dividends to any purchaser or other transferee to whom such shares shall have been so
transferred.

     5.5 Shares to Be Reserved. The Company shall at all times during the term of the Option
reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy
the requirements of this Agreement.

     5.6 Notices. Any notice to be given under the terms of this Agreement to the Company shall be
addressed to the Company in care of the Secretary, and any notice to be given to the Optionee shall
be addressed to the Optionee at the address given beneath the Optionee’s signature hereto. By a
notice given pursuant to this Section 5.9, either party may hereafter

 

 

designate a different address for notices to be given to that party. Any notice which is
required to be given to the Optionee shall, if the Optionee is then deceased, be given to the
Optionee’s personal representative if such representative has previously informed the Company of
such representative’s status and address by written notice under this Section 5.9. Any notice shall
be deemed duly given when enclosed in a properly sealed envelope or wrapper addressed as aforesaid,
deposited (with postage prepaid) in a post office or branch post office regularly maintained by the
United States Postal Service.

     5.7 Titles. Titles are provided herein for convenience only and are not to serve as a basis
for interpretation or construction of this Agreement.

     5.8 Stockholder Approval. The Plan will be submitted for approval by the Company’s
stockholders within twelve (12) months after the date the Plan was initially adopted by the Board.
The Option may not be exercised to any extent by anyone prior to the time when the Plan is approved
by the stockholders, and if such approval has not been obtained by the end of said twelve month
period, the Option shall thereupon be canceled and become null and void.

     5.9 Notification of Disposition. If this Option is designated as an Incentive Stock Option,
the Optionee shall give prompt notice to the Company of any disposition or other transfer of any
shares of stock acquired under this Agreement if such disposition or transfer is made (a) within
two (2) years from the Date of Grant with respect to such shares or (b) within one (1) year after
the transfer of such shares to him. Such notice shall specify the date of such disposition or other
transfer and the amount realized, in cash, other property, assumption of indebtedness or other
consideration, by the Optionee in such disposition or other transfer.

     5.10 Construction. This Agreement shall be administered, interpreted and enforced under the
laws of the State of California without regard to conflicts of laws thereof.

     5.11 Conformity to Securities Laws. The Optionee acknowledges that the Plan is intended to
conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and
any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder,
and state securities laws and regulations. Notwithstanding anything herein to the contrary, the
Plan shall be administered, and the Option is granted and may be exercised, only in such a manner
as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the
Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws,
rules and regulations.

     5.12 Amendments. This Agreement may not be modified, amended or terminated except by an
instrument in writing, signed by the Optionee or such other person as may be permitted to exercise
the Option pursuant to Section 4.1 and by a duly authorized representative of the Company.

 

 

Gen-Probe
Incorporated 

Stock Option Grant Notice

(2003 Incentive Award Plan)

     Gen-Probe Incorporated (the “Company”), pursuant to its 2003 Incentive Award Plan
(the “2003 Plan”), hereby grants to Optionholder an option to purchase the number of shares of the
Company’s Common Stock set forth below. This option is subject to all of the terms and conditions
as set forth herein and in the Stock Option Agreement, the 2003 Plan and the Notice of Exercise,
all of which are attached hereto and incorporated herein in their entirety.

	 	 	 	 	 	 	 
	Optionholder:

	 	 	 	 	 	 
	 

	 	 	 	 
	Date of Grant:

	 	 	 	 	 	 
	 

	 	 	 	 
	Vesting Commencement Date:

	 	 	 	 	 	 
	 

	 	 	 	 
	Number of Shares Subject to Option:

	 	 	 	 shares
	 	 
	 

	 	 	 	 	 
	Exercise Price Per Share:

	 	$  
	  per share	 	 
	 

	 	 	 	 	 	 
	Expiration Date:
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Type of Grant:

	 	 ̈ Incentive Stock Option
	 	 ̈ Nonstatutory Stock Option
	 
	 	 	 	 
	Exercise Schedule:

	 	þ Same as Vesting Schedule	 	 
	 
	 	 	 	 
	Vesting Schedule:	 	One fourth (1/4) of the Option Shares will vest one year after the Vesting Commencement Date.
The remainder of the Option Shares will vest monthly thereafter over the following three (3)
years at a rate of 1/48th of the shares each month.
	 
	 	 	 	 
	Payment:	 	By one or a combination of the following items (described in the Stock Option Agreement):
	 
	 

	 	By cash or check	 	 
	 	 	Pursuant to a Regulation T Program if the Shares are publicly traded

Additional Terms/Acknowledgements: The undersigned Optionholder acknowledges receipt of, and
understands and agrees to, this Grant Notice, the Stock Option Agreement and the 2003 Plan.
Optionholder further acknowledges that as of the Date of Grant, this Grant Notice, the Stock Option
Agreement and the 2003 Plan set forth the entire understanding between Optionholder and the Company
regarding the acquisition of stock in the Company and supersede all prior oral and written
agreements on that subject with the exception of (i) options previously granted and delivered to
Optionholder under the 2003 Plan, and (ii) the following agreements only:

	 	 	 
	Other Agreements:

	 	þ   None.
	 

	 	 ̈   See Attached Sheet.

	 	 	 	 	 	 	 
	Gen-Probe Incorporated	 	Optionholder
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature	 	Signature

	Title:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Attachments: Stock Option Agreement, 2003 Incentive Award Plan and Exercise Notice

 

 

Attachment I

Stock Option Agreement

 

 

Attachment II

2003 Incentive Award Plan

 

 

Attachment III

Form of Exercise Notice

Gen-Probe Incorporated

10210 Genetic Center Drive

San Diego, California 92121-1589

Attention: Corporate Secretary

	 	 	 
	Re:

	 	Exercise of Stock Option

Ladies and Gentlemen:

1. Exercise of Option. The undersigned Optionee,                     , was granted an option
(the “Option”) to purchase shares of the Common Stock, par value $0.0001 per share (“Common
Stock”), of Gen-Probe Incorporated, a Delaware corporation (the “Company”), effective as of
                    , pursuant to the Stock Option Agreement, dated                      (the “Option
Agreement”). The undersigned hereby elects to exercise the Option as follows:

	(a)	 	The undersigned hereby elects to exercise the Option as to
                     shares of the Common
Stock, in accordance with Section 3.1 of the Option Agreement (the “Shares”).
	 
	(b)	 	This date of this exercise is
                                                   ,           .

2. Payment. The undersigned has enclosed herewith                      (representing full payment for such
Shares in accordance with Section 4.3 of the Option Agreement). The undersigned authorizes payroll
withholding and otherwise will make adequate provision for the tax withholding obligations of the
Company, if any, with respect to such exercise.

3. Binding Effect. The undersigned agrees that the Shares are being acquired in accordance with
and subject to the terms, provisions and conditions of the Option Agreement set forth therein, to
all of which the undersigned hereby expressly assent. This Agreement shall inure to the benefit of
and be binding upon the heirs, executors, administrators, successors and assigns of the
undersigned.

The undersigned understands that he or she is purchasing the Shares pursuant to the terms of the
Option Agreement, a copy of which the undersigned has received and carefully read and understands.

______________________

Receipt of the above is hereby acknowledged

GEN-PROBE
INCORPORATED,
a Delaware corporation

			
	By:	 	____________________________

			
	Title:	 	___________________________

 

 

2003 INCENTIVE AWARD PLAN

STOCK OPTION AGREEMENT

     THIS AGREEMENT, dated the Grant Date set forth on the Stock Option Grant Notice (“Grant
Notice”) (the terms of which are incorporated by reference and made a part of this Agreement), is
made by and between Gen-Probe Incorporated, a Delaware corporation, hereinafter referred to as the
“Company,” and the Independent Director identified on the Grant Notice and hereinafter referred to
as “Optionee.”

     WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase shares of its
Common Stock, par value $0.0001 per share; and

     WHEREAS, the Company wishes to carry out The 2003 Incentive Award Plan of Gen-Probe
Incorporated (the “Plan”) (the terms of which are hereby incorporated by reference and made a part
of this Agreement); and

     WHEREAS, the Board has determined that it would be to the advantage and best interest of the
Company and its stockholders to grant the Stock Option (the “Option”) provided for herein to the
Optionee as an inducement to enter into or remain in the service of the Company and as an incentive
during such service, and has advised the Company thereof and instructed the undersigned officer to
issue said Option.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby
agree as follows:

ARTICLE I

DEFINITIONS

     1.1 General. Wherever the following terms are used in this Agreement they shall have the
meanings specified below, unless the context clearly indicates otherwise.

     1.2 Board. “Board” shall mean the Board of Directors of the Company.

     1.3 Cause. “Cause” shall mean (a) the commission by the Optionee of a felony or the
perpetration by the Optionee of an act of fraud, dishonesty, or misrepresentation against, or
breach of fiduciary duty toward, the Company or a Subsidiary or (b) any willful act or omission by
the Optionee which is injurious in any material respect to the financial condition or business
reputation of the Company or a Subsidiary.

     1.4 Code. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

 

     1.5 Committee. “Committee” shall mean the Compensation Committee of the Board, or a
subcommittee of the Board, appointed as provided in Section 9.1 of the Plan.

     1.6 Common Stock. “Common Stock” shall mean the Common Stock of the Company, par value $0.0001
per share.

     1.7 Company. “Company” shall mean Gen-Probe Incorporated, a Delaware corporation.

     1.8 Director. “Director” shall mean a member of the Board, whether such Director is an
Employee or an Independent Director (as defined in the Plan).

     1.9 Employee. “Employee” shall mean any officer or other employee (as defined in accordance
with Section 3401(c) of the Code) of the Company, or of any Subsidiary.

     1.10 Exchange Act. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     1.11 Fair Market Value. “Fair Market Value” shall mean, as of any date, the value of the
Common Stock determined as follows:

     (a) If the Common Stock is listed on any established stock exchange or a national market
system, the Fair Market Value of a share of Common Stock shall be the closing sales price for such
stock (or the closing bid, if no sales were reported) as quoted on such exchange or system (or the
exchange or system with the greatest volume of trading in the Common Stock) for such date, or if no
bids or sales were reported for such date, then the closing sales price (or the closing bid, if no
sales were reported) on the trading date immediately prior to such date during which a bid or sale
occurred, in each case, as reported by The Nasdaq Stock Market or such other source as the Board
deems reliable.

     (b) In the absence of such markets for the Common Stock, the Fair Market Value shall be
determined in good faith by the Board.

     1.12 Option. “Option” shall mean the Stock Option granted under this Agreement and Article IV
of the Plan.

     1.13 Optionee. “Optionee” shall mean the Independent Director granted the Option under this
Agreement and the Plan.

     1.14 Plan. “Plan” shall mean The 2003 Incentive Award Plan of Gen-Probe Incorporated.

     1.15 Retirement. “Retirement” shall mean the Optionee’s resignation after the Optionee has
attained age 60 or completed ten (10) or more years of service with the Company and the
Subsidiaries.

 

 

     1.16 Secretary. “Secretary” shall mean the Secretary of the Company.

     1.17 Securities Act. “Securities Act” shall mean the Securities Act of 1933, as amended.

     1.18 Subsidiary. “Subsidiary” shall mean any corporation in an unbroken chain of corporations
beginning with the Company if each of the corporations other than the last corporation in the
unbroken chain then owns 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.

     1.19 Termination of Directorship. “Termination of Directorship” shall mean the time when the
Optionee ceases to be a Director for any reason, including, but not by way of limitation, a
termination by resignation, removal, failure to be reelected, death, disability or retirement. The
Board, in its sole and absolute discretion, shall determine the effect of all matters and questions
relating to Termination of Directorship of the Optionee.

ARTICLE II

GRANT OF OPTION

     2.1 Grant of Option. In consideration of the Optionee’s agreement to remain in the employ of
the Company or its Subsidiaries and for other good and valuable consideration, effective as of Date
of Grant set forth on the Grant Notice, the Company irrevocably grants to the Optionee the option
to purchase any part or all of an aggregate of the number of shares of Common Stock set forth on
the Grant Notice, upon the terms and conditions set forth in this Agreement.

     2.2 Purchase Price. The purchase price of the shares of Common Stock subject to the Option per
share shall be as set forth on the Grant Notice, without commission or other charge.

     2.3 Consideration to the Company. In consideration of the granting of the Option by the
Company, the Optionee agrees to render faithful and efficient services as a Director. Nothing in
the Plan or this Agreement shall confer upon the Optionee any right to continue as a Director.

ARTICLE III

PERIOD OF EXERCISABILITY

     3.1 Commencement of Exercisability.

 

 

     (a) Subject to Sections 3.3 and 5.11, the Option shall become exercisable in such amounts and
at such times as are set forth on the Grant Notice.

     (b) No portion of the Option which has not become exercisable at Termination of Directorship
shall thereafter become exercisable, except as may be otherwise provided by the Board.

     3.2 Duration of Exercisability. The installments provided for in Section 3.1(a) and the Grant
Notice are cumulative. Each such installment which becomes exercisable pursuant to Section 3.1
shall remain exercisable until it becomes unexercisable under Section 3.3.

     3.3 Expiration of Option. The Option may not be exercised to any extent by anyone after the
first to occur of the following events:

     (a) The expiration of seven (7) years from the Date of Grant; or

     (b) The expiration of three (3) months from the date of the Optionee’s Termination of
Directorship, unless such Termination of Directorship occurs by reason of the Optionee’s death,
Retirement or disability (within the meaning of Section 22(e)(3) of the Code); or

     (c) The expiration of twelve (12) months following the date of the Optionee’s Termination of
Directorship by reason of the Optionee’s death, Retirement, or disability (within the meaning of
Section 22(e)(3) of the Code).

ARTICLE IV

EXERCISE OF OPTION

     4.1 Person Eligible to Exercise. Subject to Section 5.2, during the lifetime of the Optionee,
only the Optionee may exercise the Option or any portion thereof. After the death of the Optionee,
any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable
under Section 3.3, be exercised by the Optionee’s personal representative or by any person
empowered to do so under the Optionee’s will or under the then applicable laws of descent and
distribution.

     4.2 Partial Exercise. Any exercisable portion of the Option or the entire Option, if then
wholly exercisable, may be exercised in whole or in part at any time prior to the time when the
Option or portion thereof becomes unexercisable under Section 3.3; provided, however, that each
partial exercise shall be for not less than ten (10) shares and shall be for whole shares only.

     4.3 Manner of Exercise. The Option, or any exercisable portion thereof, may be exercised
solely by delivery to the Secretary or the Secretary’s office of all of the

 

 

following prior to the time when the Option or such portion thereof becomes unexercisable
under Section 3.3:

     (a) An Exercise Notice in writing signed by the Optionee or the other person then entitled to
exercise the Option or portion thereof, stating that the Option or portion thereof is thereby
exercised, such notice complying with all applicable rules established by the Board. Such notice
shall be substantially in the form attached as Attachment III to the Grant Notice (or such other
form as is prescribed by the Board); and

(b) (i) Full payment (in cash or by check) for the shares with respect to which the Option
or portion thereof is exercised, to the extent permitted under applicable laws; or

(ii) With the consent of the Board, such payment may be made, in whole or in part, through
the delivery of shares of Common Stock which have been owned by the Optionee for at least six
months, duly endorsed for transfer to the Company with a Fair Market Value on the date of
delivery equal to the aggregate exercise price of the Option or exercised portion thereof; or

(iii) To the extent permitted under applicable laws, through the delivery of a notice that
the Optionee has placed a market sell order with a broker with respect to shares of Common Stock
then issuable upon exercise of the Option, and that the broker has been directed to pay a
sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option
exercise price, provided, that payment of such proceeds is then made to the Company upon
settlement of such sale; or

(iv) With the consent of the Board, any combination of the consideration provided in the
foregoing subparagraphs (i), (ii) and (iii); and

     (c) A bona fide written representation and agreement, in such form as is prescribed by the
Board, signed by the Optionee or other person then entitled to exercise such Option or portion
thereof, stating that the shares of Common Stock are being acquired for the Optionee’s own account,
for investment and without any present intention of distributing or reselling said shares or any of
them except as may be permitted under the Securities Act and then applicable rules and regulations
thereunder, and that the Optionee or other person then entitled to exercise such Option or portion
thereof will indemnify the Company against and hold it free and harmless from any loss, damage,
expense or liability resulting to the Company if any sale or distribution of the shares by such
person is contrary to the representation and agreement referred to above. The Board may, in its
absolute discretion, take whatever additional actions it deems appropriate to ensure the observance
and performance of such representation and agreement and to effect compliance with the Securities
Act and any other federal or state securities laws or regulations. Without limiting the generality
of the foregoing, the Board may require an opinion of counsel acceptable to it to the effect that
any subsequent transfer of shares acquired on an Option exercise does not violate the Securities
Act, and may issue stop-transfer orders covering such shares. Share certificates evidencing Common
Stock issued

 

 

on exercise of the Option shall bear an appropriate legend referring to the provisions of this
subsection (c) and the agreements herein. The written representation and agreement referred to in
the first sentence of this subsection (c) shall, however, not be required if the shares to be
issued pursuant to such exercise have been registered under the Securities Act, and such
registration is then effective in respect of such shares; and

     (d) Full payment to the Company (or other employer corporation) of all amounts which, under
federal, state or local tax law, it is required to withhold upon exercise of the Option. With the
consent of the Board, (i) shares of Common Stock owned by the Optionee for at least six months duly
endorsed for transfer or (ii) shares of Common Stock issuable to the Optionee upon exercise of the
Option, having a Fair Market Value at the date of Option exercise equal to the statutory minimum
sums required to be withheld, may be used to make all or part of such payment; and

     (e) In the event the Option or portion thereof shall be exercised pursuant to Section 4.1 by
any person or persons other than the Optionee, appropriate proof of the right of such person or
persons to exercise the Option.

     4.4 Conditions to Issuance of Stock Certificates. The shares of Common Stock deliverable upon
the exercise of the Option, or any portion thereof, may be either previously authorized but
unissued shares or issued shares which have then been reacquired by the Company. Such shares shall
be fully paid and nonassessable. The Company shall not be required to issue or deliver any
certificate or certificates for shares of Common Stock purchased upon the exercise of the Option or
portion thereof prior to fulfillment of all of the following conditions:

     (a) The admission of such shares to listing on all stock exchanges on which such Common Stock
is then listed; and

     (b) The completion of any registration or other qualification of such shares under any state
or federal law or under rulings or regulations of the Securities and Exchange Commission or of any
other governmental regulatory body, which the Board shall, in its absolute discretion, deem
necessary or advisable; and

     (c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Board shall, in its absolute discretion, determine to be necessary or advisable;
and

     (d) The receipt by the Company of full payment for such shares, including payment of all
amounts which, under federal, state or local tax law, the Company (or other employer corporation)
is required to withhold upon exercise of the Option; and

     (e) The lapse of such reasonable period of time following the exercise of the Option as the
Board may from time to time establish for reasons of administrative convenience.

 

 

     4.5 Rights as Stockholder. The holder of the Option shall not be, nor have any of the rights
or privileges of, a stockholder of the Company in respect of any shares purchasable upon the
exercise of any part of the Option unless and until certificates representing such shares shall
have been issued by the Company to such holder.

ARTICLE V

OTHER PROVISIONS

     5.1 Administration. The Board shall have the power to interpret the Plan and this Agreement
and to adopt such rules for the administration, interpretation and application of the Plan as are
consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all
interpretations and determinations made by the Board in good faith shall be final and binding upon
the Optionee, the Company and all other interested persons. No member of the Board shall be
personally liable for any action, determination or interpretation made in good faith with respect
to the Plan, this Agreement or the Option. In its absolute discretion, the Board may at any time
and from time to time exercise any and all rights and duties of the Board under the Plan and this
Agreement.

     5.2 Option Not Transferable.

     (a) The Option may not be sold, pledged, assigned or transferred in any manner other than by
will or the laws of descent and distribution or, subject to the consent of the Board, pursuant to a
“DRO” (as defined in the Plan), unless and until the Option has been exercised, or the shares
underlying such Option have been issued, and all restrictions applicable to such shares have
lapsed. Neither the Option nor any interest or right therein shall be liable for the debts,
contracts or engagements of the Optionee or his or her successors in interest or shall be subject
to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other
means whether such disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect, except to the extent
that such disposition is permitted by the preceding sentence.

     (b) During the lifetime of the Optionee, only the Optionee may exercise the Option (or any
portion thereof), unless it has been disposed of with the consent of the Board pursuant to a DRO.
After the death of the Optionee, any exercisable portion of an Option may, prior to the time when
such portion becomes unexercisable under the Plan or the Option Agreement, be exercised by the
Optionee’s personal representative or by any person empowered to do so under the deceased
Optionee’s will or under the then applicable laws of descent and distribution.

     (c) Notwithstanding the foregoing provisions of this Section 5.2, if designated as a
Non-Qualified Stock Option, the Option may be transferred by the Optionee, in writing and with
prior written notice to the Board, to any one or more Permitted Transferees (as defined below),
subject to the following terms and conditions: (i) the Option, as

 

 

transferred to a Permitted Transferee, shall not be assignable or transferable by the
Permitted Transferee other than by will or the laws of descent and distribution; (ii) the Option,
as transferred to a Permitted Transferee, shall continue to be subject to all the terms and
conditions of the Option as applicable to the Optionee (other than the ability to further transfer
the Option); and (iii) the Optionee and the Permitted Transferee shall execute any and all
documents requested by the Board, including, without limitation documents to (A) confirm the status
of the transferee as a Permitted Transferee, (B) satisfy any requirements for an exemption for the
transfer under applicable federal and state securities laws and (C) evidence the transfer. For
purposes of this subsection (c), “Permitted Transferee” shall mean, with respect to the Optionee,
any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law, including adoptive relationships, any person sharing the Optionee’s household (other
than a tenant or employee), a trust in which these persons (or the Optionee) control the management
of assets, and any other entity in which these persons (or the Optionee) own more than fifty
percent (50%) of the voting interests, or any other transferee specifically approved by the Board
after taking into account any state or federal tax or securities laws applicable to transferable
Non-Qualified Stock Options.

     5.3 Lock-Up Period. The Optionee hereby agrees that, if so requested by the Company or any
representative of the underwriters (the “Managing Underwriter”) in connection with any registration
of the offering of any securities of the Company under the Securities Act, the Optionee shall not
sell or otherwise transfer any shares of Common Stock or other securities of the Company during
such period as may be requested in writing by the Managing Underwriter and agreed to in writing by
the Company (which period shall not be longer than 180 days) (the “Market Standoff Period”)
following the effective date of a registration statement of the Company filed under the Securities
Act.

     5.4 Restrictive Legends and Stop-Transfer Orders.

     (a) The share certificate or certificates evidencing the shares of Common Stock purchased
hereunder shall be endorsed with any legends that may be required by state or federal securities
laws.

     (b) The Optionee agrees that, in order to ensure compliance with the restrictions referred to
herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if
any, and that, if the Company transfers its own securities, it may make appropriate notations to
the same effect in its own records.

     (c) The Company shall not be required: (i) to transfer on its books any shares of Common Stock
that have been sold or otherwise transferred in violation of any of the provisions of this
Agreement, or (ii) to treat as owner of such shares of Common Stock or to accord the right to vote
or pay dividends to any purchaser or other transferee to whom such shares shall have been so
transferred.

 

 

     5.5 Shares to Be Reserved. The Company shall at all times during the term of the Option
reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy
the requirements of this Agreement.

     5.6 Notices. Any notice to be given under the terms of this Agreement to the Company shall be
addressed to the Company in care of the Secretary, and any notice to be given to the Optionee shall
be addressed to the Optionee at the address given beneath the Optionee’s signature hereto. By a
notice given pursuant to this Section 5.6, either party may hereafter designate a different address
for notices to be given to that party. Any notice which is required to be given to the Optionee
shall, if the Optionee is then deceased, be given to the Optionee’s personal representative if such
representative has previously informed the Company of such representative’s status and address by
written notice under this Section 5.6. Any notice shall be deemed duly given when enclosed in a
properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a
post office or branch post office regularly maintained by the United States Postal Service.

     5.7 Titles. Titles are provided herein for convenience only and are not to serve as a basis
for interpretation or construction of this Agreement.

     5.8 Stockholder Approval. The Plan will be submitted for approval by the Company’s
stockholders within twelve (12) months after the date the Plan was initially adopted by the Board.
The Option may not be exercised to any extent by anyone prior to the time when the Plan is approved
by the stockholders, and if such approval has not been obtained by the end of said twelve month
period, the Option shall thereupon be canceled and become null and void.

     5.9 Notification of Disposition. If this Option is designated as an Incentive Stock Option,
the Optionee shall give prompt notice to the Company of any disposition or other transfer of any
shares of stock acquired under this Agreement if such disposition or transfer is made (a) within
two (2) years from the Date of Grant with respect to such shares or (b) within one (1) year after
the transfer of such shares to him. Such notice shall specify the date of such disposition or other
transfer and the amount realized, in cash, other property, assumption of indebtedness or other
consideration, by the Optionee in such disposition or other transfer.

     5.10 Construction. This Agreement shall be administered, interpreted and enforced under the
laws of the State of California without regard to conflicts of laws thereof.

     5.11 Conformity to Securities Laws. The Optionee acknowledges that the Plan is intended to
conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and
any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder,
and state securities laws and regulations. Notwithstanding anything herein to the contrary, the
Plan shall be administered, and the Option is granted and may be exercised, only in such a manner
as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the
Plan and this

 

 

Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and
regulations.

     5.12 Amendments. This Agreement may not be modified, amended or terminated except by an
instrument in writing, signed by the Optionee or such other person as may be permitted to exercise
the Option pursuant to Section 4.1 and by a duly authorized representative of the Company.

 

 

GEN-PROBE INCORPORATED

STOCK OPTION GRANT NOTICE

(2003 Incentive Award Plan)

     GEN-PROBE INCORPORATED (the “Company”), pursuant to its 2003 Incentive Award Plan (the
“2003 Plan”), hereby grants to Optionholder an option to purchase the number of shares of the
Company’s Common Stock set forth below. This option is subject to all of the terms and conditions
as set forth herein and in the Stock Option Agreement, the 2003 Plan and the Notice of Exercise,
all of which are attached hereto and incorporated herein in their entirety.

	 	 	 	 	 	 	 
	Optionholder:

	 	 	 	 	 	 
	 

	 	 	 	 
	Date of Grant:

	 	 	 	 	 	 
	 

	 	 	 	 
	Vesting Commencement Date:

	 	 	 	 	 	 
	 

	 	 	 	 
	Number of Shares Subject to Option:

	 	 	 	shares
	 	 
	 

	 	 	 	 	 
	Exercise Price Per Share:

	 	$  
	per share	 	 
	 

	 	 	 	 	 	 
	Expiration Date:
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Type of Grant:

	 	 ̈ Incentive Stock Option
	 	 ̈ Nonstatutory Stock Option
	 
	 	 	 	 
	Exercise Schedule:

	 	þ Same as Vesting Schedule	 	 
	 
	 	 	 	 
	Vesting Schedule:
	 	 	 	 
	 
	 	 	 	 
	Payment:	 	By one or a combination of the following items (described in the Stock Option Agreement):
	 
	 	 	 	 
	 

	 	By cash or check	 	 
	 	 	Pursuant to a Regulation T Program if the Shares are publicly traded

Additional Terms/Acknowledgements: The undersigned Optionholder acknowledges receipt of, and
understands and agrees to, this Grant Notice, the Stock Option Agreement and the 2003 Plan.
Optionholder further acknowledges that as of the Date of Grant, this Grant Notice, the Stock Option
Agreement and the 2003 Plan set forth the entire understanding between Optionholder and the Company
regarding the acquisition of stock in the Company and supersede all prior oral and written
agreements on that subject with the exception of (i) options previously granted and delivered to
Optionholder under the 2003 Plan, and (ii) the following agreements only:

	 	 	 
	OTHER AGREEMENTS:

	 	þ None.
	 

	 	 ̈ See Attached Sheet.

	 	 	 	 	 	 	 
	GEN-PROBE INCORPORATED	 	OPTIONEE
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature	 	Signature

	 
	 	 	 	 	 	 
	Title:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

ATTACHMENTS: Stock Option Agreement, 2003 Incentive Award Plan and Notice of Exercise

 

 

Notice of Exercise

Gen-Probe Incorporated

10210 Genetic Center Drive

San Diego, California 92121-1589

Attention: Corporate Secretary

	 	 	 
	Re:

	 	Exercise of Stock Option

Ladies and Gentlemen:

1. Exercise of Option. The undersigned Optionee,                     , was granted an
option (the “Option”) to purchase shares of the Common Stock, par value $0.0001 per share (“Common
Stock”), of Gen-Probe Incorporated, a Delaware corporation (the “Company”), effective as of                     , pursuant to a Stock Option Grant Notice dated                      (the
“Grant Notice”). The undersigned hereby elects to exercise the Option as follows:

	(a)	 	The undersigned hereby elects to exercise the Option as to                                 shares
of the Common Stock, in accordance with Section 3.1 of the Stock Option Agreement (the
“Shares”).
	 
	(b)	 	This date of this exercise
is                                                   ,           .

2. Payment. The undersigned has enclosed herewith                      (representing full
payment for such Shares in accordance with Section 4.3 of the Option Agreement). The undersigned
authorizes payroll withholding and otherwise will make adequate provision for the tax withholding
obligations of the Company, if any, with respect to such exercise.

3. Binding Effect. The undersigned agrees that the Shares are being acquired in accordance with and
subject to the terms, provisions and conditions of the Option Agreement set forth therein, to all
of which the undersigned hereby expressly assent. This Agreement shall inure to the benefit of and
be binding upon the heirs, executors, administrators, successors and assigns of the undersigned.

The undersigned understands that he or she is purchasing the Shares pursuant to the terms of the
Option Agreement, a copy of which the undersigned has received and carefully read and understands.

____________________________________

Receipt of the above is hereby acknowledged

GEN-PROBE INCORPORATED,

a Delaware corporation

			
	By:	 	_________________________

			
	Title:	 	_________________________exv10w76

 

Exhibit 10.76

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made as of [DATE] (the “Effective Date”) by and
between Gen-Probe Incorporated, a Delaware corporation with offices at 10210 Genetic Center Drive,
San Diego, California 92121 (“Gen-Probe”), and [NAME] (the “Executive”).

     WHEREAS, the Executive is currently employed as an officer of Gen-Probe;

     WHEREAS, prior to September 15, 2002, Gen-Probe was a wholly-owned subsidiary of Chugai
Pharmaceutical Co., Ltd.;

     WHEREAS, Chugai distributed its Gen-Probe shareholdings to its shareholders in a “spin off”
transaction on September 15, 2002; and

     WHEREAS, the Board of Directors of Gen-Probe (the “Board”), having considered the proposed
spin-off transaction and other circumstances, deems it in the best interest of Gen-Probe to offer
this Agreement to the Executive and the Executive desires to enter into this Agreement.

     ACCORDINGLY, the parties hereto agree as follows:

	1.	 	Term of Employment. This Agreement shall be immediately effective. This Agreement,
and Executive’s employment hereunder, shall be for an indefinite term. At any time during the
term of this Agreement, either party may terminate this Agreement, and Executive’s employment,
in accordance with the provision of Sections 6 and 7 of this Agreement.

	2.	 	Position and Duties. The Executive shall serve as [TITLE] of Gen-Probe, and shall
have commensurate responsibilities and authority. The Board of Directors may from time to
time particularly specify the Executive’s duties and authority. The Executive shall not
engage in or perform duties for any other persons or entities that interfere with the
performance of his duties hereunder. Any outside board of director positions held by the
Executive will be subject to approval by the Board of Directors of Gen-Probe.

1

 

	3.	 	Salary, Bonus and Benefits. 

	 	(a)	 	Salary. During the period of the Executive’s employment, Gen-Probe
shall pay him an annual base salary at the rate the Executive is being paid as of the
Effective Date. This base salary may be adjusted annually by the Board, subject to the
terms of this Agreement and consistent with the Executive’s performance and
Gen-Probe’s policy regarding adjustments in officer compensation established from time
to time by the Board.
	 
	 	(b)	 	Bonus. In addition, at the Board’s discretion, the Executive may be
awarded incentive compensation, in the form of a cash bonus for each fiscal year
during his employment, based upon performance.
	 
	 	(c)	 	Benefits. The Executive shall be entitled to participate in the
employee benefit programs (including but not limited to medical, dental, life and
disability insurance, 401K retirement plan, and vacation program), which may be
adopted and maintained by Gen-Probe. The Executive may receive such other and
additional benefits as the Board may determine from time to time in its sole
discretion.

	4.	 	Expense Reimbursement. The Executive shall be entitled to receive prompt
reimbursement for all reasonable and customary expenses incurred by him in performing services
hereunder, including all expenses of travel and living expenses while away from home on
business or at the request of, and in the service of Gen-Probe; provided, that such expenses
are incurred and accounted for in accordance with the policies and procedures established by
Gen-Probe.

	5.	 	Indemnification. Gen-Probe shall indemnify the Executive to the maximum extent
permitted by law and by the by-laws of Gen-Probe if the Executive is made a party, or
threatened to be made a party, to any threatened or pending legal action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of the fact that the
Executive is or was an officer, director or employee of Gen-Probe or any subsidiary or
affiliate thereof, in which capacity the Executive is or was serving at Gen-Probe’s request,
against reasonable expenses (including reasonable attorneys’ fees), judgments, fines and
settlement payments incurred by him in connection with such action, suit or proceeding.

	6.	 	Termination. The Executive may terminate his employment hereunder at any time, with
or without Good Reason (as defined below) upon written notice to Gen-Probe. If Executive
contends that Good Reason exists for his termination, such notice shall specifically and
expressly state the grounds which he contends constitute Good Reason. Gen-Probe may terminate
the Executive’s employment hereunder at any time, subject to the terms of this Agreement, with
or without Cause (as defined below) upon written notice to the Executive. If this Agreement
is terminated, all compensation and benefits other than severance benefits

2

 

described in Section 7 below, to the extent applicable, shall immediately cease, except
that the Executive will be entitled, through the date of termination, to payment of his
salary and benefits under Gen-Probe benefit programs and plans in accordance with their
terms.

As used in this Agreement, “Good Reason” shall mean any of the following events that are
not consented to by the Executive: (i) a substantial and material diminution in the
Executive’s duties and responsibilities hereunder; (ii) the location of the Executive’s
assignment on behalf of Gen-Probe is moved to a location more than 30 miles from its
present location; (iii) a reduction of more than ten percent (10%) in the Executive’s base
salary or in the Executive’s benefits received from Gen-Probe; (iv) the failure of
Gen-Probe to obtain a satisfactory agreement from any other successor to Gen-Probe to
assume and agree to perform this Agreement; or (iv) a material breach by Gen-Probe of its
obligations under this Agreement after notice in writing from the Executive and a
reasonable opportunity for Gen-Probe to cure or substantially mitigate any material adverse
effect of such breach. The Executive’s consent to any event which would otherwise
constitute Good Reason shall be conclusively presumed if the Executive does not exercise
his rights to terminate this Agreement for Good Reason under this section within ninety
(90) days of notice of the event.

As used in this Agreement, “Cause” shall mean any of the following events: (i) any act of
gross or willful misconduct, fraud, misappropriation, dishonesty, embezzlement or similar
conduct on the part of Executive; (ii) the Executive’s conviction of a felony or any
crime involving moral turpitude (which conviction, due to the passage of time or otherwise,
is not subject to further appeal); (iii) the Executive’s misuse or abuse of alcohol, drugs
or controlled substances and failure to seek and comply with appropriate treatment; (iv)
willful and continued failure by the Executive to substantially perform his duties under
this Agreement (other than any failure resulting from disability or from termination by the
Executive for Good Reason) as determined by a majority of the Board after written demand
from the Board of Directors for substantial performance is delivered to the Executive, and
the Executive fails to resume substantial performance of his duties on a continuous basis
within 30 days of such notice; (vi) the death of the Executive; or (vii) the Executive
becoming disabled such that he is not able to perform his usual duties for Gen-Probe for a
period in excess of six (6) consecutive calendar months.

3

 

	7.	 	Severance Benefits in Certain Events. If Gen-Probe terminates the Executive’s
employment for reasons other than Cause, or if the Executive terminates his employment for
Good Reason, the Executive shall be entitled to receive as liquidated damages, the following
severance benefits:

	 	(a)	 	Salary. The Executive shall continue to receive his base salary, at
the rate in effect at the time of his termination of employment, in monthly
installments commencing the first day of the first month following termination and
continuing for an aggregate period of twelve (12) months (the “Salary Continuation
Period”); provided, however, that if termination under this Section 7 occurs in
connection with a Change in Control, then the Executive shall receive a single lump
sum payment, payable within 10 days of termination, equal to eighteen (18)
months’ base salary.
	 
	 	 	 	For purposes of this Agreement, “Change in Control” shall have the meaning set forth on
Attachment “1” to this Agreement (hereby incorporated by reference). For purposes of
this Agreement, a termination shall be “in connection with” a Change in Control if
termination occurs within the period six (6) months prior to or eighteen (18) months
after a Change in Control.
	 
	 	 	 	(b)Bonus. If termination under this Section 7 occurs in
connection with a Change in Control then the Executive shall be entitled to receive,
in lieu of the bonus provided in Section 3(b) and in addition to the salary payment
described in Section 7(a), above, an amount equal to 1.5 times the greater of (i) the
Executive’s targeted level bonus in the year of the termination, or (ii) the
Executive’s highest discretionary bonus in the preceding three years. The amount
payable shall be paid in the same manner as and on the same schedule as the salary
compensation paid under subsection (a) above. No bonus compensation shall be payable
under this section 7 unless termination occurs in connection with a change in control.
	 
	 	 	 	(c)Health Care and Life Insurance Coverage. Continued health care coverage
under Gen-Probe’s medical plan will be provided, without charge, to the Executive and
his eligible dependents until the earlier of (i) one (1) year following the
termination date or (ii) the first date that the Executive is covered under another
employer’s health benefit program providing substantially the same or better benefit
options to the Executive without exclusion for any pre-existing medical condition.
The period of time medical coverage continues under this agreement will be counted as
coverage time under COBRA. Gen-Probe will pay the premium for continued life
insurance coverage, if any, that the Executive may have elected under Gen-Probe’s Life
Insurance and Supplemental Life Insurance plan, subject to payment by the Executive of
the portion of such premium not contributed by Gen-Probe under such plan, during the
Salary Continuation Period.

4

 

	 	(d)	 	401(k) Plan. The Executive’s interest in any unvested contributions
made by Gen-Probe to the Executive’s 401(k) account shall vest as of the date of
termination.
	 
	 	(e)	 	Outplacement Services. Gen-Probe agrees to provide Executive with
outplacement services during the first six months of the Salary Continuation Period.
	 
	 	(f)	 	Tax Matters. All compensation described in this Section 7 will be
subject to Gen-Probe’s collection of all applicable federal, state and local income
and employment withholding taxes. If any excise tax is imposed under Section 4999 in
connection with the compensation described in this Section 7 and/or in connection with
the acceleration upon severance of any stock options granted by Gen-Probe to the
Executive, Executive shall be solely responsible for any such excise tax.
	 
	 	(g)	 	Release of Claims. Gen-Probe’s obligation to make the payments and
provide the benefits hereunder shall be conditioned upon Executive’s execution of a
release of all claims, in standard form and content. The release shall be mutual and
shall also be signed on behalf of Gen-Probe.

	8.	 	Miscellaneous. 

	 	(a)	 	Arbitration. Executive and Gen-Probe agree that any and all claims or
disputes that in any way relate to or arise out of Executive’s employment with
Gen-Probe or the termination of such employment (including but not limited to claims
under this Agreement or any other contract, tort claims, and statutory claims of
employment discrimination, retaliation or harassment) shall be resolved exclusively
through final and binding arbitration in San Diego, California. Executive and
Gen-Probe waive any rights to a jury trial in connection with such claims or disputes.
The costs of the arbitration, including the fees of the arbitrator, shall be borne
exclusively by Gen-Probe. Any such arbitration shall take place in San Diego,
California and shall be conducted by a single neutral arbitrator who shall be a
retired federal or state judge, to be appointed by Judicial Arbitration and Mediation
Services (“JAMS”) in accordance with JAMS rules. The applicable procedural rules of
JAMS shall govern the arbitration. The arbitrator’s decision shall be delivered in
writing and shall disclose the essential findings and conclusion on which the
arbitrator’s decision is based. The parties shall be permitted to conduct adequate
discovery to allow for a full and fair exploration of the issues in dispute in the
arbitration proceeding. The arbitrator may grant any relief which otherwise would have
been available to the parties in a court proceeding. The decision and award of the
arbitrator shall be final and binding, and judgment upon the arbitrator’s award may be
entered by any court of competent jurisdiction.

5

 

	 	(b)	 	Governing Law. This Agreement shall be construed and enforced in
accordance with and be governed by the laws of the State of California.
	 
	 	(c)	 	Entire Agreement. This Agreement sets forth the entire Agreement and
understanding between the Executive and the Company on the subject matter hereof, and
supersedes any other negotiations, agreements, understandings, oral agreements,
representations and past or future practices whether written or oral. No provision of
this Agreement may be amended, supplemented, modified, cancelled, or discharged unless
such amendment, supplement, modification, cancellation or discharge is agreed to, in
writing, signed by the Executive and a duly authorized officer of the Company (other
than the Executive); and no provisions hereof may be waived, except in writing, so
signed by or on behalf of the party granting such waiver.
	 
	 	(d)	 	Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of any
other provision of this Agreement, which shall remain in full force and effect.
	 
	 	(e)	 	Notices.  For the purposes of this Agreement, notices, demands and
all other communications provided for in this Agreement shall be in writing and shall
be deemed to have duly given when personally delivered or mailed by United States
certified or registered mail, return receipt requested, postage prepaid, addressed as
follows:

	 	 	 	 	 	 	 
	 

	 	If to the Executive:
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	[ADDRESS]	 	 
	 
	 	 	 	 	 	 
	 

	 	If to Gen-Probe:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 
	 

	 	 	 	Gen-Probe Incorporated	 	 
	 

	 	 	 	10210 Genetic Center Drive	 	 
	 

	 	 	 	San Diego, California 92121	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Vice President, Administration	 	 
	 

	 	 	 	Gen-Probe Incorporated	 	 
	 

	 	 	 	10210 Genetic Center Drive	 	 
	 

	 	 	 	San Diego, California 92121	 	 

6

 

	 	(f)	 	Successors. Gen-Probe will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all
the business and/or assets of Gen-Probe, by agreement in form and substance
satisfactory to the Executive, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that Gen-Probe would be required to perform
it if no such succession had taken place. This Agreement and all rights under the
Agreement shall be binding upon and shall inure to the benefit of and be enforceable
by the party’s personal or legal representatives, executors, administrators, heirs,
and successors.
	 
	 	(g)	 	No Right to Continued Employment. Nothing herein shall be construed
as giving the Executive any rights to continued employment with Gen-Probe, and
Gen-Probe shall continue to have the right to terminate the Executive’s employment at
any time, with or without cause, subject to the provisions of this Agreement.

     In witness whereof, the parties have executed this Agreement.

	 	 	 	 	 	 	 
	Executive:	 	Gen-Probe Incorporated:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 
	 	 	 
	 	 
	[NAME]	 	Henry L. Nordhoff	 	 
	 	 	Chairman, President and Chief Executive Officer	 	 

7

 

ATTACHMENT “1”

DEFINITION OF “CHANGE IN CONTROL”

          Change in Control. “Change in Control” shall mean a change in ownership or control of the
Company effected through any of the following transactions:

          (a) any person or related group of persons (other than the Company or a person that,
prior to such transaction, directly or indirectly controls, is controlled by, or is under
common control with, the Company) directly or indirectly acquires beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act) of securities possessing more
than fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities by means of any transaction or series of transactions; or

          (b) there is a change in the composition of the Board over a period of thirty-six
(36) consecutive months (or less) such that a majority of the Board members (rounded up to
the nearest whole number) ceases, by reason of one or more proxy contests for the election
of Board members, to be comprised of individuals who either (i) have been Board members
continuously since the beginning of such period or (ii) 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 (i) who were still in office at the time such election or nomination
was approved by the Board; or

          (c) the stockholders of the Company approve a merger or consolidation of the Company
with any other corporation (or other entity), other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or another entity) more than 66-2/3% of the combined
voting power of the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation; provided, however, that a
merger or consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no person acquires more than 25% of the combined voting
power of the Company’s then outstanding voting securities shall not constitute a Change in
Control; or

          (d) the stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or substantially
all of the Company’s assets.

8

 

Schedule to Exhibit 10.76

The preceding form of Employment Agreement was entered into between the Company and the following
individuals:

	 	 	 	 	 
	Name

	 	Title
	 	Execution Date
	Niall Conway

	 	Executive Vice President — Sales and Operations
	 	November 12, 2002
	Daniel L. Kacian

	 	Executive Vice President and Chief Scientist
	 	November 12, 2002
	R. William Bowen

	 	Vice President and General Counsel
	 	November 12, 2002
	Stephen J. Kondor

	 	Vice President — Sales and Marketing
	 	July 29, 2005
	Lynda A. Merrill

	 	Vice President — Industrial Relationships
	 	January 1, 2004
	Larry T. Mimms

	 	Executive Vice President — Research and Development
	 	November 12, 2002
	Herm Rosenman

	 	Vice President, Finance and Chief Financial Officer
	 	November 12, 2002
	Diane De Walt

	 	Vice President — Human Resources
	 	January 3, 2005

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