Document:

Exhibit 10.1

 

VERTEX PHARMACEUTICALS INCORPORATED

 

1996 STOCK AND OPTION PLAN

 

[Form of Stock Option Grant]

 

This Stock Option
Agreement sets forth the terms and conditions of an Option granted pursuant to
the provisions of the 1996 Stock And Option Plan (the “Plan”) of Vertex
Pharmaceuticals Incorporated (the “Company”) to the Participant whose name
appears below, covering the number of Shares of Common Stock of the Company set
forth below, pursuant to the provisions of the Plan and on the following express
terms and conditions.  Capitalized terms
not otherwise defined herein shall have the same meanings as set forth in the
Plan.

 

1.                                       Name
and address of Participant to whom this Option is granted:

 

[name
and address]

 

2.                                       Number
of Shares of Common Stock subject to this Option:

 

[        ]
Shares

 

3.                                       Purchase
price of Shares subject to this Option:

 

[        ]
per Share

 

4.                                       Date
of grant of this Option:

 

[        ]

 

5.                                       Expiration
date of this Option:  [        ],
subject to earlier termination in the event of any termination of service of
the Participant or otherwise in accordance with the provisions of the Plan.
This Option may not be exercised later than three (3) months after the
Participant’s termination of employment with the Company and its Affiliates except
as provided in the Plan in the event of death or disability of the Participant.

 

6.                                       Vesting.

 

6.1  Vesting Schedule.  This Option shall vest and become
exercisable, so long as the Participant continues to serve as an employee of
the Company or an Affiliate, in sixteen (16) equal quarterly installments, with
the first such installment vesting three (3) months after the date of grant and
subsequent installments vesting quarterly thereafter until fully vested, except
as otherwise provided in paragraphs 6.2 and 6.3 below. The amounts of such
installments are set forth on the attached schedule.

 

6.2 Absence.  This Option shall not vest during any period
of long-term disability or personal leave of absence of the Participant from
the Company or an Affiliate (as determined under applicable Company
policies).  If the Participant resumes
employment with the Company after a personal leave of absence or long-term
disability in accordance with applicable Company policies, vesting shall resume
upon the resumption of employment, and the Option will continue vesting at the
rate provided in paragraph 6.1 above until the Option is fully exercisable.
Notwithstanding the foregoing, in no event shall the term of the Option be
extended beyond the date set forth in Section 5 above.

 

 

6.3  Death of the Participant.  In the event of the death of the Participant
while an employee of the Company or an Affiliate, the vesting of those
installments of this Option that would otherwise vest during the one-year
period following the date of death shall be accelerated, and the Option shall
be exercisable as to such installments, together with any previously vested but
unexercised portion of the Option, effective as of the date of death.

 

7.                                       [Option
type].  This Option is [NOT] designated as an incentive stock option (“ISO”) within
the meaning of Section 422(b) of the Internal Revenue Code of 1986 (the “Code”).

 

8.                                       Plan.  The Participant hereby acknowledges receipt
of a copy of the Plan as presently in effect. 
The text and all of the terms and provisions of the Plan are
incorporated herein by reference, and this Option is subject to these terms and
provisions in all respects.

 

9.                                       Exercise.  At any time when the Participant wishes to
exercise this Option, in whole or in part, the Participant shall submit a duly
executed Notice of Exercise, in a form reasonably satisfactory to the Company,
together with payment of the purchase price therefore (a) in U.S. dollars in
cash or by check, or (b) in accordance with a cashless exercise program established
with a securities brokerage firm and approved by the Company, or (c) as
otherwise permitted under the Plan. The Participant agrees to notify the
Company in writing immediately after the Participant makes any Disqualifying
Disposition of any Shares acquired pursuant to the exercise hereof.

 

	
   

  	
  VERTEX
  PHARMACEUTICALS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:Exhibit
10.2

 

VERTEX PHARMACEUTICALS
INCORPORATED

 

1996 STOCK AND OPTION PLAN

 

[Form of Restricted Stock Award]

 

This Stock Agreement sets forth the terms and
conditions of shares of stock granted pursuant to the provisions of the 1996
Stock And Option Plan (the “Plan”) of Vertex Pharmaceuticals
Incorporated (the “Company”) to the Key Employee whose name appears
below, for the number of Shares of Common Stock of the Company set forth below,
pursuant to the provisions of the Plan and on the following express terms and
conditions.  Capitalized terms not
otherwise defined herein shall have the same meanings as set forth in the Plan.

 

1.                                       Name
and address of participant to whom the Shares are granted:

 

[name and address]

 

2.                                       Number
of Shares of Common Stock (“Shares”):

 

[          ]
Shares

 

3.                                       Purchase
price of Shares:

 

$0.01 per Share

 

4.                                       Date
of grant of the Shares:

 

[          ]

 

5.                                       Vesting.

 

5.1                                 Vesting Schedule and
Company’s Repurchase Right.  Except
as otherwise provided in section 5.2, the Shares shall vest in four (4)
equal annual installments, with the first such installment vesting on the first
anniversary of the date of grant of the Shares, and subsequent installments
vesting annually on subsequent anniversaries thereafter until all of the
granted Shares have vested.  Upon any
Termination of Service of the Participant, vesting of the Shares shall
immediately cease, and the Company shall have a right to repurchase any
unvested Shares from the Participant at a price per Share equal to the purchase
price per Share set forth in section 3 above.   The Company’s right to so repurchase the
Shares shall be valid for a period of one year beginning on the date of any
Termination of Service of the Participant, or, if the Company is prohibited by
law from such repurchase at the time of Termination of Service, for thirty days
after any such prohibition is terminated.

 

5.2                                 Death of the
Participant.  In the event of the
death of the Participant while an employee of the Company or an Affiliate, the
vesting of those installments of this Stock Agreement that would otherwise vest
during the one-year period following the date of death shall be accelerated.

 

5.3                                 Agreement with
respect to Tax Payments and Withholding. 
The Participant acknowledges and agrees that any income or other taxes
due from the Participant with respect to the Shares issued pursuant to this
Stock Agreement, including on account of the vesting of the Shares, shall

 

 

be the Participant’s responsibility. 
By accepting this Stock Award, the Participant agrees and acknowledges
that (i) the Company promptly will withhold from the Participant’s pay the
amount of taxes the Company is required to withhold upon any vesting of Shares
pursuant to this Stock Agreement, and (ii) the Participant shall make immediate
payment to the Company in the amount of any tax required to be withheld by the
Company in excess of the Participant’s pay available for such withholding.

 

6.                                       Restrictions
on Transfer.  The Shares may not be
sold, transferred, assigned, hypothecated, pledged, encumbered or otherwise
disposed of, whether voluntarily or by operation of law, at any time before
they become vested Shares pursuant to Section 5.  Any such purported transfer shall be null and
void, and shall not be recognized by the Company or recorded on its books.

 

7.                                       Escrow.  All Shares which have not vested pursuant to Section 5,
together with any securities distributed in respect thereof such as through a
stock split or other recapitalization, shall be held by the Company in escrow
until such time as the Shares have vested. 
The Company promptly shall release vested Shares from escrow.

 

8.                                       Plan.  The Participant hereby acknowledges receipt
of a copy of the Plan as presently in effect and the Prospectus with respect
thereto.  All of the terms and provisions
of the Plan are incorporated herein by reference, and this Stock Agreement is
subject to those terms and provisions in all respects.

 

	
   

  	
  VERTEX PHARMACEUTICALS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

2Exhibit 10.3

 

VERTEX PHARMACEUTICALS INCORPORATED

 

1996 STOCK AND OPTION PLAN

 

[Form of Restricted Stock Award (PARS)]

 

This Stock Agreement sets forth the terms and
conditions of shares of stock granted pursuant to the provisions of the 1996
Stock And Option Plan (the “Plan”) of Vertex Pharmaceuticals
Incorporated (the “Company”) to the Key Employee whose name appears
below, for the number of Shares of Common Stock of the Company set forth below,
pursuant to the provisions of the Plan and on the following express terms and
conditions.  Capitalized terms not
otherwise defined herein shall have the same meanings as set forth in the Plan.

 

1.                                       Name and address of participant to whom the
Shares are granted:

 

 

2.                                       Number of Shares of Common Stock (“Shares”):

 

3.                                       Purchase price of Shares:

 

$0.01 per Share

 

4.                                       Date of grant of the Shares:

 

5.                                       Vesting.

 

5.1                                 Vesting Schedule and Company’s
Repurchase Right.

 

(a) Except as otherwise provided in Sections 5.1(b)
and 5.2, the Shares shall vest on the fourth anniversary of the date of grant
of the Shares.  Upon any Termination of
Service of the Participant, vesting of the Shares shall immediately cease, and
the Company shall have a right to repurchase any unvested Shares from the
Participant at a price per Share equal to the purchase price per Share set
forth in Section 3 above.   The
Company’s right to so repurchase the Shares shall be valid for a period of one
year beginning on the date of any Termination of Service of the Participant,
or, if the Company is prohibited by law from such repurchase at the time of
Termination of Service, for thirty days after any such prohibition is
terminated.

 

(b) 
Notwithstanding the foregoing: [Describe Performance Objectives and
Acceleration of Vesting for Achievement of Performance Objectives]

 

5.2                                 Death of the Participant.   If,
at any time before all the Shares granted hereunder shall have vested as
provided in Section 5.1, the Participant shall die while an employee of
the Company or an

 

 

Affiliate,
the Company’s repurchase rights with respect to the Pro-Rata Portion of Shares
shall lapse, and that number of Shares immediately shall vest.  For purposes of this Restricted Stock Award,
the “Pro-Rata Portion of Shares”
shall mean that portion of the unvested Shares calculated by multiplying the
number of unvested Shares by a fraction, the numerator of which is the sum of
the number of days that have passed from the date of grant until the date of
the Participant’s death, plus the number of days in one year, and the
denominator of which is the total number of days in four years.

 

5.3                                 Agreement with respect to Tax Payments and
Withholding.  The Participant acknowledges and agrees that
any income or other taxes due from the Participant with respect to the Shares
issued pursuant to this Restricted Stock Award, including on account of the
vesting of the Shares, shall be the Participant’s responsibility.  By accepting this Restricted Stock Award, the
Participant agrees and acknowledges that (i) the Company promptly will withhold
from the Participant’s pay the amount of taxes the Company is required to
withhold upon any vesting of Shares pursuant to this Restricted Stock Award,
and (ii) the Participant shall make immediate payment to the Company in the
amount of any tax required to be withheld by the Company in excess of the
Participant’s pay available for such withholding.

 

6.                                       Restrictions on Transfer.  The
Shares may not be sold, transferred, assigned, hypothecated, pledged,
encumbered or otherwise disposed of, whether voluntarily or by operation of law,
at any time before they become vested Shares pursuant to Section 5.  Any such purported transfer shall be null and
void, and shall not be recognized by the Company or recorded on its books.

 

7.                                       Escrow.  Any Shares that have not
vested pursuant to Section 5, together with any securities distributed in
respect thereof, such as through a stock split or other recapitalization, shall
be held by the Company in escrow until such Share shall have vested.  The Company promptly shall release vested
Shares from escrow.

 

8.                                       Plan.  The Participant hereby
acknowledges receipt of a copy of the Plan as presently in effect and the
Prospectus with respect thereto.  All of
the terms and provisions of the Plan are incorporated herein by reference, and
this Restricted Stock Award is subject to those terms and provisions in all
respects.

 

	
   

  	
  VERTEX PHARMACEUTICALS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

2

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