Document:

Exhibit 10.1

EXACT
Sciences Corporation

Non-Employee Director Compensation Policy

The purpose of this
Director Compensation Policy of EXACT Sciences Corporation, a Delaware
corporation (the “Company”), is to provide a total compensation package that
enables the Company to attract and retain,
on a long-term basis, high caliber directors who are not employees or
officers of the Company or its subsidiaries. For purposes of this policy,
non-employee directors shall include any director serving as an executive officer
on an interim basis at the request of the Company’s Board of Directors (the “Board”).

In furtherance of the
purpose stated above, all non-employee directors shall be paid stock
compensation for services provided to the Company as set forth below:

	
  

  	
   

  	
  Annual Retainer

  (in shares of Company

  common stock)

  	
   

  
	
  Executive Chairman

  	
   

  	
   

  	
  15,000

  	
   

  	
   

  
	
  Chairperson

  	
   

  	
   

  	
  15,000

  	
   

  	
   

  
	
  Director

  	
   

  	
   

  	
  10,000

  	
   

  	
   

  

 

The non-employee
directors shall also be eligible to
participate in the Company’s 2000 Stock Option and Incentive Plan (the “2000
Plan”). Each newly-elected director (i.e. each director joining the Board for
the first time) will be granted options to purchase 10,000 shares of common
stock pursuant to the 2000 Plan on the date they are elected to the Board (the “Election
Option Grant”). Election Option Grants shall vest one-third (1/3) on the
first-year anniversary of the date of grant, and then ratably thereafter on a
monthly basis over a period of twenty-four months. In addition to the Election
Option Grants, each director (including any newly-elected director who has
received an Election Option Grant) shall be granted an option to purchase
15,000 shares of common stock pursuant to the 2000 Plan on the date of the
first meeting of the Board following each annual meeting of the Company’s
stockholders (the “Annual Option Grant”). The first Annual Option Grant
received by a non-employee director during his/her tenure on the Board vests
100% on the date of the annual meeting of stockholders next following the date
of grant. All subsequent Annual Option Grants received by a non-employee
director during his/her service on the Board vest ratably over a period of
twelve months from the date of each such grant. In the event that a
non-employee director is elected to the Board other than in connection with an
annual meeting of stockholders, the number of options granted to such director
under the first Annual Option Grant received by such non-employee director
shall be reduced by 1,250 shares for each month since the Company’s last annual
meeting of stockholders to the date of such non-employee director’s election to
the Board.

All
of the foregoing options will be granted at fair market value on the date of
grant and, except as otherwise provided under the 2000 Plan, all vesting
thereunder immediately ceases upon cessation of service as a director for any
reason. In addition, the form of option agreement gives directors up to one
year following cessation of service as a director to exercise all options that
are vested as of the date of such cessation.

The foregoing
compensation is in addition to reimbursement of all out-of-pocket expenses
incurred by directors in attending meetings
of the Board.Exhibit
10.2

 

Executive Incentive Plan

 

	
  Adopted, as amended,

  
	
   

  	
   

  	
  August 14, 2007

  

 

Overview

The EXACT Sciences
Executive Incentive Plan has been designed to be an effective management tool
that will bring focus to the company’s fiscal year objectives and incentivize
performance to not just meet, but accelerate and overachieve the accomplishment
of those objectives. The plan is based on specific and measurable objectives
for both the company and each individual participant, with performance against
those to be weighted equally. As a financial incentive, each executive will
have a significant percentage of their annual total compensation tied to
meeting the corporate and individual objectives that have been established for
the year with the opportunity to receive greater payouts for overachievement.

Participation

In order to be eligible
to participate in the Executive Incentive Plan for a given plan year, an
executive must meet the following criteria:

·                  Be an employee of EXACT Sciences and
hold the position of CEO, President or Vice President

·                  Have a hire date not later than
July 1st for such year and have worked at least 1040
hours of a given plan year

·                  Be an employee in good standing as of
December 31st of a given plan year

·                  Executives hired between
February 1st and June 30th of
a given plan year will have bonus amounts earned, if any, prorated to the
number of full months of employment during the plan year

·                  If an executive does not meet the
preceding criteria, they may still be allowed to participate in the plan under
any such terms as approved by the Compensation Committee

Methodology

Objectives

The EXACT Sciences
Executive Incentive Plan includes setting objectives for both the corporation
and for each executive individually. The Board of Directors reviews and
approves corporate objectives for the fiscal year. Achievement of these
objectives drives the corporate component of the plan. Working with the CEO and
President, each executive will prepare individual functional unit objectives as
appropriate and as directed by the CEO and President and such individual
objectives will also serve as a key basis for any cash payments under the plan.
It is understood that plans and objectives may change dynamically and need to
be updated and that key achievements may occur that were not initially
envisioned. Such factors will be considered as the plan is reviewed at
year-end.

Performance Assessment

The Board of Directors
will regularly review overall corporate performance against objectives, with
the Compensation Committee doing periodic reviews of individual executive
performance. After the end of each fiscal year, the Compensation Committee
working with the full Board will make a determination of the level of corporate
performance for the year. The CEO and President will assess the performance of
each executive and make a recommendation regarding a payout under this plan to
the Compensation Committee for approval. CEO and President performance will be
determined by the Compensation Committee and the Board of Directors. Individual
performance is determined both against written functional area objectives and
by subjective performance assessment.

Payouts

In order to achieve any
payouts under the plan, it is first necessary for the company to hit the
majority of its corporate objectives. Upon achieving this threshold, payouts
are then divided into two distinct, but related components: Corporate
performance and Individual performance. The Compensation Committee may
recommend to the full Board to vary the payout formulae below based on the
corporate 

 

objectives achieved and
those not achieved, if any. For example, the Compensation Committee may
determine that despite having achieved a majority of the corporate objectives,
the overall performance or status of the Company is such that payouts may be
increased, reduced or eliminated altogether.

Corporate
Performance

For assessment, corporate
performance is divided into three levels of approximately 60%, 80% or 100% of
objectives achieved.

Payouts
for corporate performance may be made in cash or common stock at the discretion
of the Compensation Committee. The amount of the payout for corporate
performance will be based on a value calculated as a multiple of an executive’s
individual performance cash payout according to the following matrix:

	
  Performance Level

  Corporate

  	
   

  	
  Calculation for Value of Payout

  
	
  100% (i.e., 5/5 objectives achieved)

  	
   

  	
  2.5 times Individual Cash Payout

  
	
  80% (i.e., 4/5 objectives achieved)

  	
   

  	
  2.0 times Individual Cash Payout

  
	
  60% (i.e., 3/5 objectives achieved)

  	
   

  	
     No Multiplier of Cash Payout

  

 

In the event that that
the Compensation Committee determines to use common stock for payouts for
corporate performance, the stock grants will be made pursuant to the corporation’s
stock option and incentive plan. It is intended that there be no restrictions
upon the sale of the stock except for quiet periods and other restrictions that
may be imposed by applicable securities laws. If an employee terminates his or
her employment before the date of grant of any stock or cash award, the stock
or cash award is forfeited, unless otherwise determined by the Compensation
Committee.

Individual
Performance

For assessment,
individual performance is divided into three levels: Outstanding, Above
Expectations, and Effective. Under the plan, an individual must perform to be
rewarded. No incentive payouts will be made to individuals who do not achieve
at least an effective level of performance regardless of the level of corporate
performance.

Payouts for individual
performance are made in cash according the following matrix:

	
  Performance Level

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Individual

  	
   

  	
  CEO / President

  	
   

  	
  SVP

  	
   

  	
  VP

  	
   

  
	
  Outstanding

  	
   

  	
  $60-$70

  	
   

  	
  $40-$50

  	
   

  	
  $30-$35

  	
   

  
	
  Above
  Expectations

  	
   

  	
  $50-$55

  	
   

  	
  $30-$35

  	
   

  	
  $20-$25

  	
   

  
	
  Effective

  	
   

  	
  $15-$35

  	
   

  	
  $7.5-$25

  	
   

  	
  $5-$15

  	
   

  

*                    all
amounts in ‘000’s

Total
Compensation

The following table shows
the range of total compensation available under the plan:

	
   

  	
   

  	
   

  	
   

  	
  CEO/President

  	
   

  	
  SVP

  	
   

  	
  VP

  	
   

  
	
  Performance Level

  	
   

  	
  Ind.

  Award

  	
   

  	
  Corp.

  award

  	
   

  	
   

  	
   

  	
  Ind.

  Award

  	
   

  	
  Corp

  Award

  	
   

  	
   

  	
   

  	
  Ind.

  Award

  	
   

  	
  Corp 

  Award

  	
   

  	
   

  	
   

  
	
  Corp

  	
   

  	
  Individual

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  Total $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  Total $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  Total $

  	
   

  
	
   

  	
   

  	
  Outstanding

  	
   

  	
  60-70

  	
   

  	
  150-175

  	
   

  	
  210-245

  	
   

  	
  40-50

  	
   

  	
  100-125

  	
   

  	
  140-175

  	
   

  	
  30-35

  	
   

  	
  75-87.5

  	
   

  	
  105-122.5

  	
   

  
	
  100 %

  	
   

  	
  Above
  Expectations

  	
   

  	
  50-55

  	
   

  	
  125-137.5

  	
   

  	
  175-193

  	
   

  	
  30-35

  	
   

  	
  75-87.5

  	
   

  	
  105-122.5

  	
   

  	
  20-25

  	
   

  	
  50-62.5

  	
   

  	
  70-87.5

  	
   

  
	
   

  	
   

  	
  Effective

  	
   

  	
  15-35

  	
   

  	
  37.5-87.5

  	
   

  	
  52.5-122.5

  	
   

  	
  7.5-25

  	
   

  	
  18.8-62.5

  	
   

  	
  26-87.5

  	
   

  	
  5-15

  	
   

  	
  12.5-37.5

  	
   

  	
  17.5-52.5

  	
   

  
	
   

  	
   

  	
  Outstanding

  	
   

  	
  60-70

  	
   

  	
  120-140

  	
   

  	
  180-210

  	
   

  	
  40-50

  	
   

  	
  80-100

  	
   

  	
  120-150

  	
   

  	
  30-35

  	
   

  	
  60-70

  	
   

  	
  90-105

  	
   

  
	
  80 %

  	
   

  	
  Above
  Expectations

  	
   

  	
  50-55

  	
   

  	
  100-110

  	
   

  	
  150-165

  	
   

  	
  30-35

  	
   

  	
  60-70

  	
   

  	
  90-105

  	
   

  	
  20-25

  	
   

  	
  40-50

  	
   

  	
  60-75

  	
   

  
	
   

  	
   

  	
  Effective

  	
   

  	
  15-35

  	
   

  	
  30-70

  	
   

  	
  45-105

  	
   

  	
  7.5-25

  	
   

  	
  15-50

  	
   

  	
  22.5-75

  	
   

  	
  5-15

  	
   

  	
  10-30

  	
   

  	
  15-45

  	
   

  
	
   

  	
   

  	
  Outstanding

  	
   

  	
  60-70

  	
   

  	
  0

  	
   

  	
  60-70

  	
   

  	
  60-70

  	
   

  	
  0

  	
   

  	
  60-70

  	
   

  	
  30-35

  	
   

  	
  0

  	
   

  	
  30-35

  	
   

  
	
  60 %

  	
   

  	
  Above
  Expectations

  	
   

  	
  50-55

  	
   

  	
  0

  	
   

  	
  50-55

  	
   

  	
  50-55

  	
   

  	
  0

  	
   

  	
  50-55

  	
   

  	
  20-25

  	
   

  	
  0

  	
   

  	
  20-25

  	
   

  
	
   

  	
   

  	
  Effective

  	
   

  	
  15-35

  	
   

  	
  0

  	
   

  	
  15-35

  	
   

  	
  15-35

  	
   

  	
  0

  	
   

  	
  15-35

  	
   

  	
  5-15

  	
   

  	
  0

  	
   

  	
  5-15

  	
   

  
																								

*                    all
amounts in ‘000’s

The following example
shows a potential total compensation calculation for a Vice President assuming
that corporate performance awards are made in common stock:

 

	
  Assumptions:

  	
   

  	
  Company achieves 80% of objectives

  
	
   

  	
   

  	
  Individual performance is rated as Outstanding at
  highest end of cash payout range

  
	
   

  	
   

  	
  Common stock price on first vest date is $10.00

  
	
   

  	
   

  	
  Common stock price on second vest date is $20.00

  
	
   

  	
   

  	
   

  
	
  Cash Payout:

  	
   

  	
  $35,000

  
	
   

  	
   

  	
   

  
	
  Stock Payout:

  	
   

  	
  $70,000 Total Value

  
	
   

  	
   

  	
   

  
	
  Total Compensation:

  	
   

  	
  $105,000

  
	
   

  	
   

  	
   

  
	
  # of Shares Granted:

  	
   

  	
  3,500 on first vest date

  	
  ($70,000 ÷ 2 ÷ $10.00)

  
	
   

  	
   

  	
  1,750 on second vest date

  	
  ($70,000 ÷ 2 ÷ $20.00)

  

 

Timing

It is anticipated that
the Compensation Committee will review corporate and individual performance
under this plan with the Board of Directors at its January meeting. After
that review and pending final approval of awards by the Committee, cash awards
under this plan, if any, will generally be made as of the third Thursday in
February of the year following the applicable fiscal year. Awards made in
stock will be made according to the company’s stock option policies and
granting procedures.

Plan
Changes

At any time in any given
plan year, the CEO and President with the approval of the Compensation
Committee or the Compensation Committee acting in its sole discretion may alter
any terms of the Executive Incentive Plan. In particular, if the financial
resources of the company are inadequate to support the plan regardless of
performance, payouts may be restructured using equity, deferred to such future
date when financial resources can appropriately accommodate them or eliminated
altogether.

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