Document:

Exhibit 10.1

 

BEYOND GENOMICS, INC.

 

2001 STOCK OPTION AND INCENTIVE PLAN

 

Purpose and Eligibility

 

The purpose of this 2001 Stock Option and Incentive Plan (the “Plan”)
of Beyond Genomics, Inc. (the “Company”) is to provide stock
options and other equity interests in the Company (each an “Award”) to
employees, officers, directors, consultants and advisors of the Company and its
Subsidiaries, all of whom are eligible to receive Awards under the Plan. Any
person to whom an Award has been granted under the Plan is called a “Participant”.
Additional definitions are contained in Section 8.

 

2.                          Administration

 

a.                          Administration
by Board of Directors. The Plan will be administered by the Board of
Directors of the Company (the “Board”). The Board, in its sole discretion,
shall have the authority to grant and amend Awards, to adopt, amend and repeal rules relating
to the Plan and to interpret and correct the provisions of the Plan and any
Award. All decisions by the Board shall be final and binding on all interested persons.
Neither the Company nor any member of the Board shall be liable for any action
or determination relating to the Plan.

 

b.                         Appointment
of Committees. To the extent permitted by applicable law, the Board may
delegate any or all of its powers under the Plan to one or more committees or
subcommittees of the Board (a “Committee”). All references in the Plan
to the “Board” shall mean such Committee or the Board.

 

c.                          Delegation
to Executive Officers. To the extent permitted by applicable law, the Board
may delegate to one or more executive officers of the Company the power to
grant Awards and exercise such other powers under the Plan as the Board may
determine, provided that the
Board shall fix the maximum number of Awards to be granted and the maximum number
of shares issuable to any one Participant pursuant to Awards granted by such
executive officers.

 

3.                          Stock
Available for Awards

 

a.                          Number
of Shares. Subject to adjustment under Section 3(c), the aggregate
number of shares of Common Stock of the Company (the “Common Stock”)
that may be issued pursuant to the Plan is 1,000,000 shares. If any Award
expires, or is terminated, surrendered or forfeited, in whole or in part, the
unissued Common Stock covered by such Award shall again be available for the
grant of Awards under the Plan. If shares of Common Stock issued pursuant to
the Plan are repurchased by, or are surrendered or forfeited to, the Company at
no more than cost, such shares of Common Stock shall again be available for the
grant of Awards under the Plan; provided,
however, that the cumulative number of such shares that may be so
reissued under the Plan will not exceed 1,000,000 shares. Shares issued under
the Plan may consist in whole or in part of authorized but unissued shares or
treasury shares.

 

 

b.                         Per
Participant Limit. Subject to adjustment under Section 3(c), no
Participant may be granted Awards during any one fiscal year to purchase more
than 750,000 shares of Common Stock.

 

c.                          Adjustment
to Common Stock. In the event of any stock split, stock dividend,
extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, combination, exchange of shares, liquidation, spin-off,
split-up, or other similar change in capitalization or event, (i) the
number and class of securities available for Awards under the Plan and the per
Participant share limit, (ii) the number and class of securities, vesting schedule and
exercise price per share subject to each outstanding Option, (iii) the
repurchase price per security subject to repurchase, and (iv) the terms of
each other outstanding stock-based Award shall be adjusted by the Company (or
substituted Awards may be made) to the extent the Board shall determine, in
good faith, that such an adjustment (or substitution) is appropriate. If Section 7(e)(i) applies
for any event, this Section 3(c) shall not be applicable.

 

4.                          Stock
Options

 

a.                          General.
The Board may grant options to purchase Common Stock (each, an “Option”)
and determine the number of shares of Common Stock to be covered by each
Option, the exercise price of each Option and the conditions and limitations
applicable to the exercise of each Option and the Common Stock issued upon the
exercise of each Option, including vesting provisions, repurchase provisions
and restrictions relating to applicable federal or state securities laws, as it
considers advisable.

 

b.                         Incentive
Stock Options. An Option that the Board intends to be an “incentive stock
option” as defined in Section 422 of the Code (an “Incentive Stock
Option”) shall be granted only to employees of the Company and shall be
subject to and shall be construed consistently with the requirements of Section 422
of the Code. The Board and the Company shall have no liability if an Option or
any part thereof that is intended to be an Incentive Stock Option does not
qualify as such. An Option or any part thereof that does not qualify as an
Incentive Stock Option is referred to herein as a “Nonstatutory Stock Option.”

 

c.                          Exercise
Price. The Board shall establish the exercise price (or determine the
method by which the exercise price shall be determined) at the time each Option
is granted and specify it in the applicable option agreement.

 

d.                         Duration
of Options. Each Option shall be exercisable at such times and subject to
such terms and conditions as the Board may specify in the applicable option
agreement.

 

e.                          Exercise
of Option. Options may be exercised only by delivery to the Company of a
written notice of exercise signed by the proper person together with payment in
full as specified in Section 4(f) for the number of shares for which
the Option is exercised.

 

2

 

f.                            Payment
Upon Exercise. Common Stock purchased upon the exercise of an Option shall
be paid for by one or any combination of the following forms of payment:

 

(i)                         by
check payable to the order of the Company;

 

(ii)                      except
as otherwise explicitly provided in the applicable option agreement, and only
if the Common Stock is then publicly traded, delivery of an irrevocable and unconditional
undertaking by a creditworthy broker to deliver promptly to the Company
sufficient funds to pay the exercise price, or delivery by the Participant to
the Company of a copy of irrevocable and unconditional instructions to a
creditworthy broker to deliver promptly to the Company cash or a check
sufficient to pay the exercise price; or

 

(iii)                   to
the extent explicitly provided in the applicable option agreement, by (x)
delivery of shares of Common Stock owned by the Participant valued at fair
market value (as determined by the Board or as determined pursuant to the
applicable option agreement), (y) delivery of a promissory note of the
Participant to the Company (and delivery to the Company by the Participant of a
check in an amount equal to the par value of the shares purchased), or (z)
payment of such other lawful consideration as the Board may determine.

 

5.                          Restricted
Stock

 

a.                          Grants.
The Board may grant Awards entitling recipients to acquire shares of Common
Stock, subject to (i) delivery to the Company by the Participant of a
check in an amount at least equal to the par value of the shares purchased, and
(ii) the right of the Company to repurchase all or part of such shares at
their issue price or other stated or formula price from the Participant in the
event that conditions specified by the Board in the applicable Award are not
satisfied prior to the end of the applicable restriction period or periods
established by the Board for such Award (each, a “Restricted Stock Award”).

 

b.                         Terms
and Conditions. The Board shall determine the terms and conditions of any
such Restricted Stock Award. Any stock certificates issued in respect of a
Restricted Stock Award shall be registered in the name of the Participant and,
unless otherwise determined by the Board, deposited by the Participant,
together with a stock power endorsed in blank, with the Company (or its
designee). After the expiration of the applicable restriction periods, the
Company (or such designee) shall deliver the certificates no longer subject to
such restrictions to the Participant or, if the Participant has died, to the
beneficiary designated by a Participant, in a manner determined by the Board,
to receive amounts due or exercise rights of the Participant in the event of
the Participant’s death (the “Designated Beneficiary”). In the absence
of an effective designation by a Participant, Designated Beneficiary shall mean
the Participant’s estate.

 

6.                          Other
Stock-Based Awards

 

The Board shall have the right to grant other Awards based upon the
Common Stock having such terms and conditions as the Board may determine,
including, without limitation, the

 

3

 

grant of shares
based upon certain conditions, the grant of securities convertible into Common
Stock and the grant of stock appreciation rights, phantom stock awards or stock
units.

 

7.                          General
Provisions Applicable to Awards

 

a.                          Transferability
of Awards. Except as the Board may otherwise determine or provide in an
Award, Awards shall not be sold, assigned, transferred, pledged or otherwise
encumbered by the person to whom they are granted, either voluntarily or by
operation of law, except by will or the laws of descent and distribution, and,
during the life of the Participant, shall be exercisable only by the
Participant. References to a Participant, to the extent relevant in the
context, shall include references to authorized transferees.

 

b.                         Documentation.
Each Award under the Plan shall be evidenced by a written instrument in such
form as the Board shall determine or as executed by an officer of the Company
pursuant to authority delegated by the Board. Each Award may contain terms and
conditions in addition to those set forth in the Plan provided that such terms and conditions do
not contravene the provisions of the Plan.

 

c.                          Board
Discretion. The terms of each type of Award need not be identical, and the
Board need not treat Participants uniformly.

 

d.                         Termination
of Status. The Board shall determine the effect on an Award of the
disability, death, retirement, authorized leave of absence or other change in
the employment or other status of a Participant and the extent to which, and
the period during which, the Participant, or the Participant’s legal
representative, conservator, guardian or Designated Beneficiary, may exercise
rights under the Award.

 

e.                          Acquisition
of the Company

 

(i)                         Consquences
of an Acquisition.

 

(A)                  Effect
on Options, Restricted Stock Awards and Other Stock-Based Awards. In
addition to any acceleration provisions expressly provided in the applicable
option agreement, stock restriction agreement or any other agreement between a
Participant and the Company in respect of an Award, upon consummation of an
Acquisition (as defined below), the Board shall have the authority to accelerate
the date(s) that (x) any outstanding Options shall become exercisable, (y) any
Restricted Stock Awards then outstanding shall become free of repurchase
provisions, and (z) any other stock-based Awards shall become exercisable,
realizable or vested, or shall become free of repurchase provisions, as the
case may be. Upon consummation of an Acquisition, the Board or the board of
directors of the surviving or acquiring entity (as used in this Section 7(e)(i)(A),
also the “Board”), shall, as to such outstanding Awards (on the same
basis or on different bases, as the Board shall specify), make appropriate
provision for the continuation of such Awards by the Company or the assumption
of such Awards by the surviving or acquiring entity and by substituting on an equitable
basis for the shares then subject to such Awards either (a) the
consideration payable with respect to the

 

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outstanding shares
of Common Stock in connection with the Acquisition, (b) shares of stock of
the surviving or acquiring corporation or (c) such other securities as the
Board deems appropriate, the fair market value of which (as determined by the
Board in its sole discretion) shall not materially differ from the fair market
value of the shares of Common Stock subject to such Awards immediately
preceding the Acquisition. In addition to or in lieu of the foregoing, with
respect to outstanding Options, the Board may, upon written notice to the
affected Participants, provide that one or more Options then outstanding shall
become immediately exercisable in full and that such Options must be exercised
within a specified number of days of the date of such notice, at the end of
which period such Options shall terminate; or provide that one or more Options
then outstanding shall become immediately exercisable in full and shall be
terminated in exchange for a cash payment equal to the excess of the fair
market value (as determined by the Board in its sole discretion) for the shares
subject to such Options over the exercise price thereof.

 

(B)                    Acquisition
Defined. An “Acquisition” shall mean: (x) the sale of the Company by
merger in which the shareholders of the Company in their capacity as such no
longer own a majority of the outstanding equity securities of the Company (or
its successor); or (y) any sale of all or substantially all of the assets or
capital stock of the Company (other than in a spin-off or similar transaction)
or (z) any other acquisition of the business of the Company, as determined by
the Board.

 

(ii)                      Assumption
of Options Upon Certain Events. In connection with a merger or
consolidation of an entity with the Company or the acquisition by the Company
of property or stock of an entity, the Board may grant Awards under the Plan in
substitution for stock and stock-based awards issued by such entity or an
affiliate thereof. The substitute Awards shall be granted on such terms and
conditions as the Board considers appropriate in the circumstances.

 

(iii)                   Pooling-of
Interests-Accounting. If the Company proposes to engage in an Acquisition
intended to be accounted for as a pooling-of-interests, and in the event that
the provisions of this Plan or of any Award hereunder, or any actions of the
Board taken in connection with such Acquisition, are determined by the Company’s
or the acquiring company’s independent public accountants to cause such
Acquisition to fail to be accounted for as a pooling-or-interests, then such
provisions or actions shall be amended or rescinded by the Board, without the
consent of any Participant, to be consistent with pooling-of-interests
accounting treatment for such Acquisition.

 

(iv)                  Parachute
Awards. Notwithstanding the provisions of Section 7(e)(i)(A), if, in
connection with an Acquisition described therein, a tax under Section 4999
of the Code would be imposed on the Participant (after taking into account the
exceptions set forth in Sections 280G(b)(4) and 280G(b)(5) of the
Code), then the number of Awards which shall become exercisable, realizable or
vested as provided in such section shall be reduced (or delayed), to the
minimum extent necessary, so that no such tax would be imposed on the
Participant (the Awards not becoming so accelerated, realizable or vested, the “Parachute
Awards”); provided, however, that
if the “aggregate present value” of the Parachute Awards would exceed
the tax that, but for this sentence, would be imposed on the Participant under

 

5

 

Section 4999
of the Code in connection with the Acquisition, then the Awards shall become
immediately exercisable, realizable and vested without regard to the provisions
of this sentence. For purposes of the preceding sentence, the “aggregate
present value” of an Award shall be calculated on an after-tax basis (other
than taxes imposed by Section 4999 of the Code) and shall be based on
economic principles rather than the principles set forth under Section 280G
of the Code and the regulations promulgated thereunder. All determinations
required to be made under this Section 7(e)(iv) shall be made by the
Company.

 

f.                            Withholding.
Each Participant shall pay to the Company, or make provisions satisfactory to
the Company for payment of, any taxes required by law to be withheld in
connection with Awards to such Participant no later than the date of the event
creating the tax liability. The Board may allow Participants to satisfy such
tax obligations in whole or in part by transferring shares of Common Stock,
including shares retained from the Award creating the tax obligation, valued at
their fair market value (as determined by the Board or as determined pursuant
to the applicable option agreement). The Company may, to the extent permitted
by law, deduct any such tax obligations from any payment of any kind otherwise
due to a Participant.

 

g.                         Amendment
of Awards. The Board may amend, modify or terminate any outstanding Award
including, but not limited to, substituting therefor another Award of the same
or a different type, changing the date of exercise or realization, and converting
an Incentive Stock Option to a Nonstatutory Stock Option, provided that, except as otherwise
provided in Section 7(e)(iii), the Participant’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
Participant.

 

h.                         Conditions
on Delivery of Stock. The Company will not be obligated to deliver any
shares of Common Stock pursuant to the Plan or to remove restrictions from
shares previously delivered under the Plan until (i) all conditions of the
Award have been met or removed to the satisfaction of the Company, (ii) in
the opinion of the Company’s counsel, all other legal matters in connection
with the issuance and delivery of such shares have been satisfied, including
any applicable securities laws and any applicable stock exchange or stock
market rules and regulations, and (iii) the Participant has executed
and delivered to the Company such representations or agreements as the Company
may consider appropriate to satisfy the requirements of any applicable laws, rules or
regulations.

 

i.                             Acceleration.
The Board may at any time provide that any Options shall become immediately
exercisable in full or in part, that any Restricted Stock Awards shall be free
of some or all restrictions, or that any other stock-based Awards may become
exercisable in full or in part or free of some or all restrictions or
conditions, or otherwise realizable in full or in part, as the case may be,
despite the fact that the foregoing actions may (i) cause the application
of Sections 280G and 4999 of the Code if a change in control of the Company
occurs, or (ii) disqualify all or part of the Option as an Incentive Stock
Option.

 

6

 

8.                          Miscellaneous

 

a. Definitions.

 

(i)                         “Company,”
for purposes of eligibility under the Plan, shall include any present or future
subsidiary corporations of Beyond Genomics, Inc., as defined in Section 424(f) of
the Code (a “Subsidiary”), and any present or future parent corporation
of Beyond Genomics, Inc., as defined in Section 424(e) of the
Code. For purposes of Awards other than Incentive Stock Options, the term “Company”
shall include any other business venture in which the Company has a direct or indirect
significant interest, as determined by the Board in its sole discretion.

 

(ii)                      “Code”
means the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder.

 

(iii)                   “employee”
for purposes of eligibility under the Plan (but not for purposes of Section 4(b) or
Section 7(e)(i)(A)) shall include a person to whom an offer of employment
has been extended by the Company.

 

b.                         No
Right To Employment or Other Status. No person shall have any claim or
right to be granted an Award, and the grant of an Award shall not be construed
as giving a Participant the right to continued employment or any other
relationship with the Company. The Company expressly reserves the right at any
time to dismiss or otherwise terminate its relationship with a Participant free
from any liability or claim under the Plan.

 

c.                          No
Rights As Stockholder. Subject to the provisions of the applicable Award,
no Participant or Designated Beneficiary shall have any rights as a stockholder
with respect to any shares of Common Stock to be distributed with respect to an
Award until becoming the record holder thereof.

 

d.                         Effective
Date and Term of Plan. The Plan shall become effective on the date on which
it is adopted by the Board. No Awards shall be granted under the Plan after the
completion of ten years from the date on which the Plan was adopted by the
Board, but Awards previously granted may extend beyond that date.

 

e.                          Amendment
of Plan. The Board may amend, suspend or terminate the Plan or any portion
thereof at any time.

 

f.                            Governing
Law. The provisions of the Plan and all Awards made hereunder shall be
governed by and interpreted in accordance with the laws of the Commonwealth of
Massachusetts, without regard to any applicable conflicts of law.

 

	
   

  	
  Adopted by the Board of Directors on

  
	
   

  	
  June 6, 2001

  
	
   

  	
   

  
	
   

  	
  Approved by the stockholders on

  
	
   

  	
  March 20, 2002

  

 

7

 

AMENDMENT NO. 1 TO THE

BEYOND GENOMICS, INC.

2001 STOCK OPTION AND INCENTIVE PLAN

 

This Amendment No. 1 (the “Amendment”) to the Beyond Genomics, Inc.
2001 Stock Option and Incentive Plan dated June 6, 2001 (the “Plan”) is
made in accordance with the provisions of Section 8(e) of the Plan.
Any capitalized terms not defined herein shall have the meaning set forth in the
Plan.

 

A.       Section 3(a) of the Plan shall
be amended and replaced in its entirety with the following:

 

“Number of Shares. Subject
to adjustment under Section 3(c), the aggregate number of shares of Common
Stock of the Company (the “Common Stock”) that may be issued pursuant to
the Plan is 3,500,000 shares. If any Award expires, or is terminated,
surrendered or forfeited, in whole or in part, the unissued Common Stock
covered by such Award shall again be available for the grant of Awards under
the Plan. If shares of Common Stock issued pursuant to the Plan are repurchased
by, or are surrendered or forfeited to, the Company at no more than cost, such
shares of Common Stock shall again be available for the grant of Awards under
the Plan; provided, however, that
the cumulative number of such shares that may be so reissued under the Plan
will not exceed 3,500,000 shares. Shares issued under the Plan may consist in
whole or in part of authorized but unissued shares or treasury shares.”

 

B.        Section 3(b) shall be amended
and replaced in its entirety with the following:

 

“Per Participant Limit. Subject
to adjustment under Section 3(c), no Participant may be granted Awards
during any one fiscal year to purchase more than 2,625,000 shares of Common
Stock.”

 

Except as expressly set forth herein, no other terms or provisions of
the Plan are amended or modified, and all such provisions and terms are hereby
ratified and confirmed in all respects.

 

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment this
26th day of April, 2002.

 

 

	
   

  	
   

  	
  BEYOND
  GENOMICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  N. Stephen Ober

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  N.
  Stephen Ober, MD

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President

  
						

 

 

Amendment No. 2 to
the

BEYOND GENOMICS, INC.

2001 Stock Option and Incentive Plan

 

This Amendment No. 2 (the “Amendment”) to the Beyond Genomics, Inc.
2001 Stock Option and Incentive Plan dated December 19, 2003 (the “Plan”)
is made in accordance with the provisions of Section 8(e) of the
Plan. Any capitalized terms not defined herein shall have the meaning set forth
in the Plan.

 

A.       Section 3(a) of the Plan shall
be amended and replaced in its entirety with the following

 

“Number of Shares. Subject
to adjustment under Section 3(c), the aggregate number of shares of Common
Stock of the Company (the “Common Stock”) that may be issued pursuant to
the Plan is 4,000,000 shares. If any Award expires, or is terminated,
surrendered or forfeited, in whole or in part, the unissued Common Stock
covered by such Award shall again be available for the grant of Awards under
the Plan. If shares of Common Stock issued pursuant to the Plan are repurchased
by, or are surrendered or forfeited to, the Company at no more than cost, such
shares of Common Stock shall again be available for the grant of Awards under
the Plan; provided, however, that
the cumulative number of such shares that may be so reissued under the Plan
will not exceed 4,000,000 shares. Shares issued under the Plan may consist in
whole or in part of authorized but unissued shares or treasury shares.”

 

B.        Section 3(b) shall be amended
and replaced in its entirety with the following:

 

“Per Participant Limit. Subject
to adjustment under Section 3(c), no Participant may be granted Awards
during any one fiscal year to purchase more than 3,000,000 shares of Common
Stock.”

 

Except as expressly set forth herein, no other terms or provisions of
the Plan are amended or modified, and all such provisions and terms are hereby
ratified and confirmed in all respects.

 

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment this 19th
day of December, 2003.

 

 

	
   

  	
   

  	
  BEYOND
  GENOMICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  N. Stephen Ober

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  N.
  Stephen Ober

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President

  
						

 

2

 

Amendment No. 3 to
the

BEYOND GENOMICS, INC.

2001 Stock Option and Incentive Plan

 

This Amendment No. 3 (the “Amendment”) to the Beyond Genomics, Inc.
2001 Stock Option and Incentive Plan dated March 2, 2004 (the “Plan”) is
made in accordance with the provisions of Section 8(e) of the Plan.
Any capitalized terms not defined herein shall have the meaning set forth in
the Plan.

 

A.       Section 3(a) of the Plan shall
be amended and replaced in its entirety with the following:

 

“Number of Shares. Subject
to adjustment under Section 3(c), the aggregate number of shares of Common
Stock of the Company (the “Common Stock”) that may be issued pursuant to
the Plan is 7,000,000 shares. If any Award expires, or is terminated,
surrendered or forfeited, in whole or in part, the unissued Common Stock
covered by such Award shall again be available for the grant of Awards under
the Plan. If shares of Common Stock issued pursuant to the Plan are repurchased
by, or are surrendered or forfeited to, the Company at no more than cost, such
shares of Common Stock shall again be available for the grant of Awards under
the Plan; provided, however, that
the cumulative number of such shares that may be so reissued under the Plan
will not exceed 7,000,000 shares. Shares issued under the Plan may consist in
whole or in part of authorized but unissued shares or treasury shares.”

 

B.        Section 3(b) shall be amended
and replaced in its entirety with the following:

 

“Per Participant Limit. Subject
to adjustment under Section 3(c), no Participant may be granted Awards
during any one fiscal year to purchase more than 5,250,000 shares of Common
Stock.”

 

Except as expressly set forth herein, no other terms or provisions of
the Plan are amended or modified, and all such provisions and terms are hereby
ratified and confirmed in all respects.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment this 2nd
day of March, 2004.

 

 

	
   

  	
   

  	
  BEYOND
  GENOMICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Muzammil Mansuri

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Muzammil
  Mansuri, Ph.D

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Chairman

  
						

 

2Exhibit 10.2

 

BG Medicine, Inc.

 

INCENTIVE STOCK OPTION AGREEMENT 

 

BG
Medicine, Inc., formerly known as Beyond Genomics, Inc., (the “Company”)
hereby grants the following stock option pursuant to its 2001 Stock Option and
Incentive Plan. The terms and conditions attached hereto are also a part
hereof.

 

 

	
  Name of Employee
  (the “Employee”):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of this
  option grant (“Grant Date”):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of shares
  of the Company’s Common Stock subject to this option (“Option Shares”):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Option exercise
  price per share:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Option
  termination date:

  	
   

  	
  10 years from
  Grant Date

  
	
   

  	
   

  	
   

  
	
  Number of Option
  Shares subject to Vesting Schedule (“Unvested Option Shares”):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting Start
  Date:

  	
   

  	
   

  

 

Vesting
Schedule:

 

	
  One year from
  Vesting Start Date:

  	
   

  	
  25% of Unvested
  Option Shares

  
	
   

  	
   

  	
   

  
	
  The last day of
  each successive three month period following the first anniversary of the
  Vesting Start Date:

  	
   

  	
  An additional
  6.25% of Unvested Option Shares until the fourth anniversary of the Vesting
  Start Date

  
	
   

  	
   

  	
   

  
	
  [If the Company
  is acquired in a transaction involving a change of control, vesting shall be
  accelerated by 9 months. A “change of control” shall mean the sale of the
  Company by merger, in which the shareholders of the Company in their capacity
  as such no longer own a majority of the outstanding equity securities of the
  Company (or its successor) or any sale of all or substantially all of the
  assets or capital stock of the Company (other than in a spin-off or similar
  transaction) or any other acquisition of the business of the Company, as
  determined by the Board.]

  

 

	
   

  	
  BG Medicine, Inc.

  
	
   

  	
   

  	
   

  
	
  Signature of
  Employee

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Pieter Muntendam

  
	
  Street Address

  	
  President

  
	
   

  	
   

  	
   

  
	
  City/State/Zip
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BG Medicine, Inc.

 

INCENTIVE STOCK OPTION AGREEMENT — INCORPORATED TERMS
AND CONDITIONS

 

1.                                       Grant
Under Plan. This option is granted pursuant to and is governed by the
Company’s 2001 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.

 

2.                                       Grant
as Incentive Stock Option. This option is 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 Employment Continues. The Employee may exercise this option on
or after the Grant Date for the number of shares of Common Stock, if any,
indicated on the cover page hereof. If the Employee has remained
continuously employed by the Company from the Grant Date through the dates
listed on the vesting schedule set forth on the cover page hereof,
the Employee may exercise this option for the additional number of shares of
Common Stock in accordance with such vesting schedule. 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 Employee ceases to be
employed by the Company) may be exercised only before the date which is 10
years from the Grant Date.

 

4.                                       Termination
of Employment.

 

(a)                                  Termination
Other Than for Cause. If the Employee ceases to be employed by 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 may no longer be
exercised after the passage of 90 days from the Employee’s last day of
employment, but in no event later than the scheduled expiration date. For
purposes hereof, employment 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 employment of the
Employee 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. For
purposes hereof, employment shall include a consulting arrangement between the
Employee and the Company that immediately follows termination of employment,
but only if so stated in a written consulting agreement executed by the Company
that specifically refers to this option. This option shall not be affected by
any change of employment within or among the Company and its Subsidiaries so
long as the Employee continuously remains an employee of the Company or any
Subsidiary.

 

 

(b)                                 Termination
for Cause. If the employment of the Employee is terminated for Cause (as
defined in Section 4(c)), this option shall no longer be exercisable from
and after the Employee’s receipt of written notice of such termination.

 

(c)                                  Definition
of Cause. “Cause” shall mean conduct involving one or more of the
following: (i) the substantial and continuing failure of the Employee,
after notice thereof, to render services to the Company in accordance with the
terms or requirements of his or her employment; (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; (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 Employee dies while in the employ of the Company, this option may be
exercised, to the extent otherwise exercisable on the date of his or her death,
by the Employee’s estate, personal representative or beneficiary to whom this
option has been transferred pursuant to Section 10, only at any time
within 180 days after the date of death, but not later than the scheduled
expiration date.

 

(b)                                 Disability.
If the Employee ceases to be employed by the Company by reason of his or her
disability, this option may be exercised, to the extent otherwise exercisable
on the date of cessation of employment, only at any time within 180 days
after such cessation of employment, 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, as indicated on
the cover page hereof:

 

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

 

(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 

 

2

 

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 Employee 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; or

 

(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 having a fair market value equal as of the date of exercise to the
option price.

 

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 (i) 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 (ii) 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 Employee delivers Common Stock held by the Employee (“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 Employee 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 Employee 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 Employee 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 Employee free of any substantial
risk of forfeiture for at least six months.

 

8.                                       Securities
Laws Restrictions on Resale. Until registered under the Securities Act of
1933, as amended, or any successor statute (the “Securities Act”), the
Option Shares will be of an illiquid nature and will be deemed to be “restricted
securities” for purposes of the Securities Act. Accordingly, such shares
must be sold in compliance with the registration requirements of the Securities
Act or an exemption therefrom. Unless the Option Shares have been registered
under the Securities Act, each certificate evidencing any of the Option Shares
shall bear a legend substantially as follows:

 

“The
shares represented by this certificate are subject to restrictions on transfer
and may not be sold, exchanged, transferred, pledged, hypothecated or otherwise
disposed of except in accordance with and subject to all the terms and
conditions 

 

3

 

of a
certain Incentive Stock Option Agreement dated as of April 15, 2004, a
copy of which the Company will furnish to the holder of this certificate upon
request and without charge.”

 

9.                                       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, 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 Employee
and if the Employee shall so request in the notice exercising this option,
shall be registered in the name of the Employee 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
Employee, such notice shall be accompanied by appropriate proof of the right of
such person or persons to exercise this option.

 

10.                                 Option
Not Transferable. This option shall not be sold, assigned, transferred,
pledged or otherwise encumbered by the Employee, either voluntarily or by
operation of law, except by will or by the laws of descent and distribution. During
the Employee’s lifetime only the Employee can exercise this option.

 

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

 

12.                                 No
Obligation to Continue Employment. Neither the Plan, this Agreement, nor
the grant of this option imposes any obligation on the Company to continue the
Employee in employment.

 

13.                                 Adjustments.
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.

 

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 Employee hereby
agrees that the Company may withhold from the Employee’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 Employee on exercise of this option. The Employee further
agrees that, if the Company does not withhold an amount from the Employee’s
wages or other remuneration sufficient to satisfy the 

 

4

 

withholding obligation of
the Company, the Employee will make reimbursement on demand, in cash, for the
amount underwithheld.

 

15.                                 Restrictions
on Transfer; Company’s Right of First Refusal.

 

(a)                                  Exercise
of Right. Option Shares may not be transferred without the Company’s
written consent except by will, by the laws of descent and distribution or in
accordance with the further provisions of this Section 15. If the Employee
desires to transfer all or any part of the Option Shares to any person other
than the Company (an “Offeror”), the Employee shall:  (i) obtain in writing an irrevocable and
unconditional bona fide offer (the “Offer”)
for the purchase thereof from the Offeror; and (ii) give written notice
(the “Option Notice”) to the Company setting forth the Employee’s desire
to transfer such shares, which Option Notice shall be accompanied by a
photocopy of the Offer and shall set forth at least the name and address of the
Offeror and the price and terms of the Offer. Upon receipt of the Option
Notice, the Company shall have an assignable option to purchase any or all of
such Option Shares (the “Company Option Shares”) specified in the Option
Notice, such option to be exercisable by giving, within 15 days after receipt
of the Option Notice, a written counter-notice to the Employee. If the Company
elects to purchase any or all of such Company Option Shares, it shall be
obligated to purchase, and the Employee shall be obligated to sell to the
Company, such Company Option Shares at the price and terms indicated in the
Offer within 30 days from the date of delivery by the Company of such
counter-notice.

 

(b)                                 Sale
of Option Shares to Offeror. The Employee may, for 60 days after the
expiration of the 15-day option period as set forth in Section 15(a), sell
to the Offeror, pursuant to the terms of the Offer, any or all of such Company
Option Shares not purchased or agreed to be purchased by the Company or its
assignee; provided, however, that the Employee
shall not sell such Option Shares to such Offeror if such Offeror is a
competitor of the Company and the Company gives written notice to the Employee,
within 15 days of its receipt of the Option Notice, stating that the Employee
shall not sell his or her Option Shares to such Offeror; and provided, further, that prior to the sale of such Option
Shares to an Offeror, such Offeror shall execute an agreement with the Company
pursuant to which such Offeror agrees to be subject to the restrictions set
forth in this Section 15. If any or all of such Option Shares are not sold
pursuant to an Offer within the time permitted above, the unsold Option Shares
shall remain subject to the terms of this Section 15.

 

(c)                                  Failure
to Deliver Option Shares. If the Employee fails or refuses to deliver on a
timely basis duly endorsed certificates representing Company Option Shares to
be sold to the Company or its assignee pursuant to this Section 15, the
Company or its assignee shall have the right to deposit the purchase price for
such Company Option Shares in a special account with any bank or trust company,
giving notice of such deposit to the Employee, whereupon such Company Option
Shares shall be deemed to have been purchased by the Company or its assignee,
as the case may be. All such monies shall be held by the bank or trust company
for the benefit of the Employee. All monies deposited 

 

5

 

with
the bank or trust company but remaining unclaimed for two years after the date
of deposit shall be repaid by the bank or trust company to the Company on
demand, and the Employee shall thereafter look only to the Company for payment.

 

(d)                                 Transactions
Exempt from the Company’s Right of First Refusal and Transfer Restrictions.
The following transactions shall be exempt from the first refusal rights of the
Company and the transfer restrictions set forth in this Section 15:

 

(i)                                     a
transfer of Option Shares to or for the benefit of any spouse, child,
grandchild, parent, grandparent, sibling, aunt or uncle (each, a “Family Member”)
of the Employee, or to a trust for their benefit;

 

(ii)                                  any
transfer pursuant to an effective registration statement filed by the Company
under the Securities Act;

 

(iii)                               any transfer in
connection with an Acquisition of the Company; and

 

(iv)                              a
transfer of Option Shares to a Family Member pursuant to the laws of descent
and distribution;

 

provided,
however, that in the case of a transfer pursuant to clause (i) or (iv) above,
such transferee shall execute an agreement with the Company pursuant to which
such transferee agrees to be subject to the restrictions set forth in this Section 15,
and provided, further, that without the Company’s written consent subsequent
transfers of such transferred Option Shares, other than by will or by the laws
of descent and distribution, shall be prohibited.

 

(e)                                  Expiration
of Company’s Right of First Refusal and Transfer Restrictions. The first refusal
rights of the Company and the transfer restrictions set forth in this Section 15
shall expire as to Option Shares on the tenth anniversary of the date of this
Agreement.

 

16.                                 Early
Disposition. The Employee agrees to notify the Company in writing immediately
after the Employee transfers any Option Shares, if such transfer occurs on or
before the later of (a) the date that is two years after the date of this
Agreement or (b) the date that is one year after the date on which the
Employee acquired such Option Shares. The Employee also agrees to provide the
Company with any information concerning any such transfer required by the
Company for tax purposes.

 

17.                                 Lock-up
Agreement. The Employee agrees that in the event that the Company effects
an initial 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.

 

6

 

18.                                 Arbitration.
Any dispute, controversy, or claim arising out of, in connection with, or
relating to the performance of this Agreement or its termination shall be
settled by arbitration in the Commonwealth of Massachusetts, pursuant to the rules then
obtaining of the American Arbitration Association. Any award shall be final,
binding and conclusive upon the parties and a judgment rendered thereon may be
entered in any court having jurisdiction thereof.

 

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

 

20.                                 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 Employee, to the address set forth below 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 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. This Agreement may be
modified, amended or rescinded only by a written agreement executed by both
parties.

 

(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.

 

(d)                                 Issuances
of Securities; Changes in Capital Structure. Except as expressly provided
herein or in the Plan, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares subject to this option. No adjustments need be made
for dividends paid in cash or in property other than securities of the Company.
If there shall be any change in the Common Stock of the Company through merger,
consolidation, reorganization, recapitalization, stock dividend, stock split,
combination or exchange of shares, liquidation, spin-off, split-up or other
similar change in capitalization or event, 
the restrictions contained in this Agreement shall apply with equal
force to additional and/or substitute securities, if any, received by the
Employee in exchange for, or by virtue of his or her ownership of, Option
Shares, except as otherwise determined by the Board.

 

(e)                                  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.

 

7

 

(f)                                    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 10 hereof.

 

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

 

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