Document:

EX-10.1

 

Exhibit
10.1

NANOSPHERE, INC.

2000 EQUITY INCENTIVE PLAN

as amended as of February 2, 2006

     1. Purpose of the Plan

     The Nanosphere, Inc. 2000 Equity Incentive Plan (hereinafter referred to as the “Plan”) is
intended to provide a means whereby selected individuals providing services to Nanosphere, Inc. and
its Related Corporations (hereinafter referred to as the “Company”) may sustain a sense of
proprietorship and personal involvement in the continued development and financial success of the
Company, and to encourage them to remain with and devote their best efforts to the business of the
Company, thereby advancing the interests of the Company and its shareholders. Accordingly, the
Company may permit selected individuals to acquire common stock of the Company (hereinafter
referred to as “Shares”) or otherwise participate in the financial success of the Company, on the
terms and conditions established herein.

     2. Definitions

     The following terms shall be defined as set forth below:

     a. Board. Shall mean the Board of Directors of the Company.

     b. Cause. Shall have the meaning provided under an employment or consulting agreement
between a Participant and the Company, or if there is no such agreement, the meaning provided under
the Participant’s award agreement under the Plan, or if not defined therein, shall mean the
commitment of fraud, the misappropriation of or intentional material damage to the property or
business of the Company, the substantial failure to fulfill the duties and responsibilities of a
Participant’s regular position and/or comply with Company policies, rules or regulations, or the
conviction of a felony.

     c. Change of Control. Shall mean:

	 	(i)	 	a transaction following which any person (as such term is
defined in Section 13(d) or 14(d) of the ‘34 Act) becomes the beneficial owner
(within the meaning of Rule 13d-3 promulgated under the ‘34 Act) of fifty
percent (50%) or more of the combined voting power of the then outstanding
voting securities of the Company; or
	 
	 	(ii)	 	the individuals who, as of the date hereof, are members of the
Board cease for any reason to constitute a majority of the Board, unless the
election, or nomination for election by the stockholders, of any new director
was approved by a vote of a majority of the Board, in which case such new
director shall, for purposes of the Plan, be considered as a member of the
Board; or

 

 

	 	(iii)	 	approval by stockholders of the Company of: (1) a merger or
consolidation if the stockholders of the Company immediately before such merger
or consolidation do not as a result of such merger or consolidation own,
directly or indirectly, at least fifty percent (50%) of the combined voting
power of the outstanding voting securities of the entity resulting from such
merger or consolidation, in substantially the same proportion as their
ownership of the combined voting power of the voting securities of the Company
outstanding immediately before such merger or consolidation; or (2) a complete
liquidation or dissolution or an agreement for the sale or other disposition of
all or substantially all of the assets of the Company.

	 	 	Notwithstanding the foregoing, a Change in Control shall not be deemed to occur
solely because fifty percent (50%) or more of the combined voting power of the then
outstanding securities of the Company are acquired by: (1) a trustee or other
fiduciary holding securities under one or more employee benefit plans maintained for
employees of the Company; (2) any corporation which, immediately prior to such
acquisition, is owned directly or indirectly by the stockholders of the Company in
the same proportion as their ownership of Company stock immediately prior to such
acquisition; or (3) the transfer of stock among permitted transferees pursuant to a
Board prescribed shareholder agreement or a stock restriction agreement.

     d. Code. Shall mean the Internal Revenue Code of 1986, and any amendments thereto.

     e. Committee. Shall mean the Committee appointed pursuant to Section 3 hereof.

     f. Compete. Shall have the meaning provided under an employment or consulting
agreement between a Participant and the Company, or if there is no such agreement, the meaning
provided under the Participant’s award agreement under the Plan, or if not defined therein, shall
mean within a period of one (1) year after the termination of service, the direct or indirect
competition with the business of the Company, including, but not by way of limitation, the direct
or indirect owning, managing, operating, controlling, financing or serving as an officer, employee,
director or consultant to, or by soliciting, or inducing, or attempting to solicit or induce, any
employee or agent of the Company to terminate employment and become employed by any person, firm,
partnership, corporation, trust or other entity which owns or operates a business similar to the
business of the Company, or by revealing, disclosing, or making use of confidential or proprietary
information to anyone outside of the Company, except with the express prior written consent of the
Company.

     g. Disability. Shall have the meaning provided under: (i) an employment or consulting
agreement between a Participant and the Company; (ii) a Participant’s award agreement under the
Plan; (iii) the long-term disability plan maintained by the Company; or (iv) if no such agreements
or plan exists, permanent and total disability within the meaning of Section 22(e)(3) of the Code.

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     h. ERISA. Shall mean the Employee Retirement Income Security Act of 1974, and any
amendment thereto.

     i. Incentive Stock Option. Shall mean an award under the Plan that satisfies the
general requirements of Code Section 422, namely: (i) grantees must be employees; (ii) the
exercise price may not be less than the fair market value of the underlying Shares at the date of
grant; (iii) no more than $100,000 worth of Shares may become exercisable in any year; (iv) the
maximum duration of an award may be ten (10) years; (v) awards must be exercised within three (3)
months after termination of employment; and (vi) Shares received upon exercise must be retained for
the greater of two (2) years from the date of grant or one (1) year from the date of exercise.

     j. Nonqualified Options. Shall mean an award under the Plan that is not an Incentive
Stock Option.

     k. Participant. Shall mean a director, officer, employee, consultant or independent
contractor selected by the Committee to receive awards under the Plan.

     l. Registration. Shall mean that the Shares shall have been registered under the ‘33
Act and approved for listing on a national securities exchange.

     m. Related Corporation. Shall mean a corporation which would be a parent or
subsidiary corporation with respect to the Company as defined in Section 424(e) or (f),
respectively, of the Code.

     n. Retirement. Shall mean retirement pursuant to and in accordance with the regular
or, if approved by the Board for purposes of the Plan, any early retirement plan or practice of the
Company.

     o. Restricted Stock. Shall mean an award of Shares under the Plan that are restricted
as to transfer and subject to forfeiture.

     p. Stock Appreciation Rights. Shall mean rights entitling the grantee to receive the
appreciation in the market value of a stated number of Shares, or some other measure approved by
the Board.

     q. ‘33 Act. Shall mean the Securities Act of 1933, and any amendments thereto.

     r. ‘34 Act. Shall mean the Securities Exchange Act of 1934, and any amendments
thereto.

     3. Administration of the Plan

     The Plan shall be administered by the Committee which shall be comprised of at least two (2)
directors appointed by the Board, or if none, by the whole Board. The Committee shall have sole
authority to:

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	 	(i)	 	select the Participants from among those eligible to whom
Shares shall be sold under the Plan;
	 
	 	(ii)	 	establish the number of such Shares that may be sold to each
such Participant, the option price, option vesting, option term and the time
when certificates for such Shares shall be issued;
	 
	 	(iii)	 	prescribe the legend to be affixed to the certificate
representing such Shares;
	 
	 	(iv)	 	select the Participants from among those eligible to whom
rights to participate in the appreciation of Shares, or some other measure,
shall be granted;
	 
	 	(v)	 	interpret the Plan; and
	 
	 	(vi)	 	adopt such rules, regulations, forms and agreements, not
inconsistent with the provisions of the Plan, as it may deem advisable to carry
out the Plan.

All decisions made by the Committee in administering the Plan shall be conclusive and binding for
all purposes under the Plan. The Committee may, to the fullest extent permitted by law, delegate
to the Chief Executive Officer authority under this Plan with respect to aggregate numbers of
Shares to permit specific grants of Incentive Stock Options and Nonqualified Stock Options by the
Chief Executive Officer to employees and consultants of, and advisors to, the Company or a Related
Corporation.

     4. Shares Subject to the Plan

     The aggregate number of Shares that may be available for acquisition by Participants under the
Plan shall be 40,000,000 Shares. Any Shares that remain unissued at the termination of the Plan
shall cease to be subject to the Plan, but until termination of the Plan, the Company shall at all
times make available sufficient Shares to meet the requirements of the Plan.

     5. Stock Options

     a. Type of Options. The Company may issue options that constitute Incentive Stock
Options to employees, and Nonqualified Options to Participants under the Plan. The grant of each
option shall be confirmed by a stock option agreement that shall be executed by the Company and the
optionee as soon as practicable after such grant. The stock option agreement shall expressly state
or incorporate by reference the provisions of the Plan and state whether the option is an Incentive
Option or a Nonqualified Option.

     b. Terms of Options. Except as provided in Subsections (c) and (d) below, each option
granted under the Plan shall be subject to the terms and conditions set forth by the Committee in
the stock option agreement including, but not limited to, price, vesting and term.

     c. Additional Terms Applicable to All Options. Each option shall be subject to the
following terms and conditions:

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	 	(i)	 	Written Notice. An option may be exercised only by
giving written notice to the Company specifying the number of Shares to be
purchased.
	 
	 	(ii)	 	Method of Exercise. The aggregate option price may be
paid in any one or a combination of cash, personal check, personal note, Shares
already owned for at least six (6) months or a broker exercise notice, as
determined by the Committee.
	 
	 	(iii)	 	Term of Option. No option may be exercised more than
ten (10) years after the date of grant. Unless otherwise provided by the
Committee, no option may be exercised more than twelve (12) months after the
optionee terminates service with the Company.
	 
	 	(iv)	 	Transferability. No option may be transferred,
assigned or encumbered by an optionee, except: (A) by will or the laws of
descent and distribution; (B) by gifting for the benefit of descendants for
estate planning purposes; or (C) pursuant to a certified domestic relations
order.

     d. Additional Terms Applicable to Incentive Options. Each Incentive Option shall be
subject to the following terms and conditions:

	 	(i)	 	Option Price. The option price per Share shall be 100%
of the fair market value of such Share on the date the option is granted.
Notwithstanding the preceding sentence, the option price per Share granted to
an individual (hereinafter referred to as a “10% Shareholder”) who, at the time
such option is granted, owns stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company shall not be less
than 110% of the fair market value of such Share on the date the option is
granted.
	 
	 	(ii)	 	Term of Option. No option granted to a 10% Shareholder
may be exercised more than five (5) years after the date of grant.
Notwithstanding any other provisions hereof, no option may be exercised more
than three (3) months after the optionee terminates employment with the
Company, except in the event of Disability or death as provided in Subsection
(d)(iii) below.
	 
	 	(iii)	 	Disability or Death of Optionee. If an optionee
terminates employment due to Disability or death prior to exercise in full of
any options, he or she or his or her beneficiary, executor, administrator or
personal representative shall have the right to exercise the options within a
period of twelve (12) months after the date of such termination to the extent
that the right was exercisable at the date of such termination as provided in
the stock option agreement, or subject to such other terms as may be determined
by the Committee.
	 
	 	(iv)	 	Annual Exercise Limit. The aggregate fair market value
of Shares which become exercisable during any calendar year shall not exceed
$100,000.

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	 	 	 	For purposes of the preceding sentence, the fair market value of each Share
shall be determined on the date the option with respect to such Share is
granted.
	 
	 	(v)	 	Transferability. No option may be transferred,
assigned or encumbered by an optionee, except by will or the laws of descent
and distribution, and during the optionee’s lifetime an option may only be
exercised by him or her.

     6. Restricted Stock Awards

     a. Grants. Restricted Stock Awards (“RSAs”) under the Plan shall be evidenced by
restricted stock agreements in such form and consistent with this Plan as the Committee shall
approve from time to time. In addition, the Committee may issue Shares under the Plan to any
Participant in exchange for cash (or other consideration as the Committee may determine) and on
such terms and conditions (including, without limitation, with respect to vesting) as the Committee
may determine, and no other provision of this Plan shall be interpreted so as to limit the
Committee’s authority with respect to such issuance.

     b. Restriction Period. RSAs awarded under the Plan shall be subject to such terms,
conditions, and restrictions, including without limitation: prohibitions against transfer;
substantial risks of forfeiture; attainment of performance objectives; repurchase by the Company or
right of first refusal for such period or periods as shall be determined by the Committee at the
time of grant. The Committee shall have the power to permit, in its discretion, an acceleration of
the expiration of the applicable restriction period with respect to any part or all of the RSAs
awarded to a grantee.

     c. Restrictions Upon Transfer. RSAs awarded, and the right to vote underlying Shares
and to receive dividends thereon, may not be sold, assigned, transferred, exchanged, pledged,
hypothecated, or otherwise encumbered during the restriction period applicable to such Shares,
except: (i) by will or the laws of descent and distribution; (ii) by gifting for the benefit of
descendants for estate planning purposes; or (iii) pursuant to a certified domestic relations
order. Subject to the foregoing, and except as otherwise provided in the Plan, the grantee shall
have all the other rights of a stockholder including, but not limited to, the right to receive
dividends and the right to vote such Shares.

     d. Certificates. Each certificate issued in respect of RSAs awarded to a grantee
shall be deposited with the Company, or its designee, and shall bear the following legend:

“This certificate and the shares represented hereby are subject to
the terms and conditions (including forfeiture and restrictions
against transfer) contained in the Nanosphere, Inc. 2000 Equity
Incentive Plan and an Agreement entered into by the registered
owner. Release from such terms and conditions shall be obtained only
in accordance with the provisions of the Plan and Agreement, a copy
of each of which is on file in the office of the Secretary of said
Company.”

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     e. Lapse of Restrictions. The Agreement shall specify the terms and conditions upon
which any restrictions upon Shares awarded under the Plan shall lapse, as determined by the
Committee. Upon the lapse of such restrictions, Shares, free of the foregoing restrictive legend,
shall be issued to the grantee or his or her legal representative.

     f. Termination Prior to Lapse of Restrictions. In the event of a grantee’s
termination of service prior to the lapse of restrictions applicable to any RSAs awarded to such
grantee, all Shares as to which there still remain restrictions shall be forfeited by such grantee
without payment of any consideration to the grantee, and neither the grantee nor any successors,
heirs, assigns, or personal representatives of such grantee shall thereafter have any further
rights or interest in such Shares or certificates.

7. Stock Appreciation Rights

     a. Grants. Stock Appreciation Rights (“SARs”) may be granted to such eligible
Participants as may be selected by the Committee.

     b. Terms of Grant. SARs may be granted in tandem with or with reference to a related
option, in which event the grantee may elect to exercise either the option or the SAR, but not
both, as to the same Share subject to the option and the SAR, or the SAR may be granted
independently of a related option. Each SAR granted under the Plan shall be subject to the terms
and conditions set forth by the Committee in the stock appreciation rights agreement including, but
not limited to, price, vesting and term. The SAR shall not be exercisable more than ten (10) years
after the date of grant. SARs shall not be transferable, except that SARs may be exercised by the
executor, administrator or personal representative of the deceased grantee.

     c. Payment on Exercise. Upon exercise of a SAR, the grantee shall be paid the excess
of the then fair market value of the number of Shares or other measure to which the SAR relates
over the fair market value of such number of Shares or other measure at the date of grant of the
SAR or of the related option, as the case may be. Such excess shall be paid in cash or in Shares
having a fair market value equal to such excess, or in such combination thereof as the Committee
shall determine.

8. Repurchase Provisions Applicable to Plan Awards and Rights

     a. Repurchase Right in Case of Termination.

	 	(i)	 	If at any time prior to Registration of Shares, the service of
the Participant is terminated for any reason whatsoever, including, without
limitation, death, Disability, resignation, retirement or termination with or
without Cause, the Company or its designee(s) (which designee(s) may be any
person or entity that shall have been approved by the Board) shall have the
exclusive and irrevocable option (a “Call”), exercisable in its sole
discretion, to repurchase, in whole or part, any Shares purchased or received
pursuant to the Plan that are then owned by the Participant or any transferee,
as the case may be, or Shares that are thereafter purchased or received.

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	 	(ii)	 	The Company may exercise the Call by delivering written notice
(a “Call Notice”) to the Participant within the Call Period. The Call Notice
will set forth the number of Shares to be acquired from the Participant, the
aggregate consideration to be paid for such Shares and the time and place for
the closing of the transaction. The Participant and any transferee of the
Participant shall be obligated to sell the Shares as provided in this
subsection and the closing of the repurchase shall be effective as of the date
of the initial payment. The “Call Period” shall be (a) the ninety (90) day
period following the Participant’s termination date for reasons other than
death, and (b) the one hundred and eighty (180) day period following the
Participant’s death.
	 
	 	(iii)	 	The consummation of the purchase or purchases of such Shares
pursuant to the Company’s exercise of its Call shall take place on the date
(the “Call Date”) and in the manner designated by the Company in the Call
Notice; provided, however, that the Company may instead consummate its purchase
of such Shares pursuant to its exercise of its Call by delivering payment for
such Shares being repurchased by it along with the Call Notice, in which case,
the date of the Participant’s receipt of the Call Notice shall be the Call
Date. The Company will pay for the Shares to be purchased by it pursuant to
the exercise of its Call by delivery of a check in an amount equal to the
applicable repurchase price for the Shares being repurchased within the Call
Period against delivery by the Participant of the Shares and a stock power duly
executed in blank transferring such Shares to the Company. If the repurchase
price for the Shares exceeds $25,000, the Company may elect to pay the
repurchase price in twenty (20) or fewer quarterly installments, with interest
on the outstanding balance charged at the prime rate published in The Wall
Street Journal (Midwest Edition) on the Call Date. The Company or its
designee(s) will, in connection with such repurchase, be entitled to receive
customary representations and warranties from the Participant regarding such
sale and to require that the Participant’s signature be guaranteed. In
connection with such repurchase the Participant shall deliver to the Company
the Shares and a stock power duly executed in blank transferring such Shares to
the Company.
	 
	 	(iv)	 	The repurchase price applicable to the exercise by the Company
of its Call right described in this subsection shall be as follows: (1) if the
Participant’s service with the Company is terminated for Cause, then the
repurchase price for any Shares subject to any Call shall be equal to the
lesser of (i) the cash consideration the Participant paid for such Shares, or
(ii) the Fair Market Value of such Shares as of the termination date; (2) if
the Participant’s termination occurs for any other reason, the repurchase price
for any Shares subject to any Call shall be equal to the Fair Market Value of
the Shares subject to such Call as of the date of termination. For purposes of
this subsection, “Fair Market Value” shall mean the amount determined by the Board from time to time, using such good faith valuation
methods as it deems appropriate.

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     b. Repurchase Right in Case of Change of Control.

	 	(i)	 	In the event of a Change of Control transaction pursuant to
which holders of outstanding Shares are entitled to receive consideration in
exchange therefor or in respect thereof, the Company shall have the right, but
not the obligation (the “Call Right”) to cause the Participant or any
transferee, as the case may be, to sell all or any portion of an option or
right, whether vested or unvested, which is unexpired and unexercised at such
time (the “Outstanding Interest”), upon the terms set forth in this subsection.
At least three (3) days prior to the consummation of a Change of Control, the
Company shall deliver to the Participant a written notice (the “Company
Notice”) which briefly describes the general terms of the proposed Change of
Control and states whether or not the Company will exercise its Call Right in
connection with the proposed Change in Control.
	 
	 	(ii)	 	In the event that the Call Right is exercised, the Company
shall determine, in its sole discretion, whether the purchaser (the
“Purchaser”) shall be the Company or the third party acquirer in the Change of
Control, and such determination by the Company shall be binding upon the
Participant.
	 
	 	(iii)	 	The Purchaser shall purchase the Participant’s Outstanding
Interest pursuant to the Call Right prior to or concurrent with the
consummation of the Change of Control, as determined by the Purchaser in its
sole discretion, for a purchase price equal to the difference resulting from
subtracting any option price from the value of the consideration per Share the
Participant would have received in the Change of Control if such portion of the
option or right had been exercised prior to the Change of Control, multiplied
by the number of Shares subject to the option or right which are purchased.
The Purchaser may purchase the Participant’s Outstanding Interests either in
cash or in the form of the consideration that is being paid to the shareholders
of the Company as determined by the Purchaser in its sole discretion. In
addition, the timing of such payment shall be the same as the Participant would
have received in the Change of Control if such portion of the option or right
had been exercised prior to the Change of Control or sooner, as determined by
the Purchaser in its sole discretion.

     9. Amendment or Termination of the Plan

     The Board may amend, suspend or terminate the Plan or any portion thereof at any time, but
(except as provided in Section 13 hereof) no amendment shall be made without approval of the
stockholders of the Company which shall: (i) materially increase the aggregate number of Shares
with respect to which awards may be made under the Plan; (ii) materially increase the aggregate
number of Shares which may be subject to awards to individuals who are not employees or directors;
or (iii) change the class of persons eligible to participate in the Plan; provided, however, that
no such amendment, suspension or termination shall impair the rights of any individual, without his
or her consent, in any award theretofore made pursuant to the Plan.

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     10. Term of Plan

     The Plan shall be effective upon the date of its adoption by the Board; provided that,
Incentive Options may be granted only if the Plan is approved by the shareholders within twelve
(12) months before or after the date of adoption. Unless sooner terminated under the provisions of
Section 9, Shares and SARs shall not be granted under the Plan after the expiration of ten (10)
years from the effective date of the Plan. However, awards may be exercisable after the end of the
term of the Plan.

     11. Rights as Shareholder

     Upon issuance of any Share to a Participant, such Participant shall have all of the rights of
a shareholder of the Company with respect to such Share, including the right to vote such Share and
to receive all dividends or other distributions paid with respect to such Share. Notwithstanding
anything to the contrary contained in the Plan, the Committee may require that, as a condition to
the Company’s issuance and delivery of awards and Shares under the Plan, the Participant execute
and deliver a shareholder agreement or a stock restriction agreement with respect to the Shares in
the form prescribed by the Board.

     12. Merger or Consolidation

     In the event the Company is merged or consolidated with another corporation and the Company is
not the surviving corporation, the surviving corporation may agree to exchange options and SARs
issued under this Plan for options and SARs (with the same aggregate option price) to acquire and
participate in that number of shares in the surviving corporation that have a fair market value
equal to the fair market value (determined on the date of such merger or consolidation) of Shares
that the grantee is entitled to acquire and participate in under this Plan on the date of such
merger or consolidation.

     13. Changes in Capital and Corporate Structure

     The aggregate number of Shares and interests awarded and which may be awarded under the Plan,
and the option price of any such Shares and interests, shall be adjusted to reflect a change in the
outstanding capital of the Company by reason of a recapitalization, reclassification,
reorganization, stock split, reverse stock split, combination of shares, stock dividend or similar
transaction. The adjustment shall be made in an equitable manner which will cause the awards to
remain unchanged as a result of the applicable transaction.

     14. Service

     A Participant shall be considered to be in the service of the Company or Related Corporation
as long as he or she continues to provide service to the Company or Related Corporation. Nothing
herein shall confer on any Participant the right to continued service with the Company or Related
Corporation or affect the right of the Company or Related Corporation to terminate such service.

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     15. Withholding of Tax

     To the extent the award, issuance or exercise of Shares or SARs results in the receipt of
compensation by a Participant, the Company is authorized to withhold from any other cash
compensation then or thereafter payable to such Participant any tax required to be withheld by
reason of the receipt of the compensation. Alternatively, the Participant may tender a personal
check or authorize the withholding of Shares in the amount of tax required to be withheld.

     16. Delivery and Registration of Stock

     The Company’s obligation to deliver Shares with respect to an award shall, if the Committee so
requests, be conditioned upon the receipt of a representation as to the investment intention of the
individual to whom such Shares are to be delivered, in such form as the Committee shall determine
to be necessary or advisable to comply with the provisions of the ‘33 Act or any other federal,
state or local securities legislation or regulation. It may be provided that any representation
requirement shall become inoperative upon a Registration or other action eliminating the necessity
of such representation under securities legislation. The Company shall not be required to deliver
any Shares under the Plan prior to (i) the admission of such Shares to listing on any stock
exchange on which Shares may then be listed, and (ii) the completion of such Registration or other
qualification of such Shares under any state or federal law, rule or regulation, as the Committee
shall determine to be necessary or advisable.

     17. Governing Law

     The Plan and awards hereunder shall be governed by, construed and enforced in accordance with
the laws of the State of Illinois without regard to its conflicts of law doctrine, except to the
extent they are superceded by the laws of the United States.

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Exhibit 10.2

NANOSPHERE, INC.

2000 EQUITY INCENTIVE PLAN

OPTION AWARD AGREEMENT

FOR

(NAME)

DATE

 

 

NANOSPHERE, INC.

2000 EQUITY INCENTIVE PLAN

OPTION AWARD AGREEMENT

     1. A nonqualified STOCK OPTION to acquire ______ shares (hereinafter referred to as
“Shares”) of Common Stock of Nanosphere, Inc. (hereinafter referred to as the “Company”) is hereby
granted to ______ (hereinafter referred to as the “Optionee”), subject in all respects to the
terms and conditions of the Nanosphere, Inc. 2000 Equity Incentive Plan (hereinafter referred to as
the “Plan”) and such other terms and conditions as are set forth herein.

     2. The Option is not intended to constitute an Incentive Stock Option under Section 422 of the
Internal Revenue Code of 1986.

     3. The Option price as determined by the Committee is ______. The Option price may be
paid in any one or a combination of cash, personal check, personal note, Shares already owned for
at least six (6) months or broker exercise notice.

     4. The Option is fully vested as of the date hereof.

     5. The Option may not be exercised if the issuance of Shares upon such exercise would
constitute a violation of any applicable federal or state securities law, or any other valid law or
regulation. As a condition to the exercise of the Option, the Optionee shall represent to the
Company that the Shares being acquired under the Option are for investment and not with a present
view for distribution or resale, unless counsel for the Company is then of the opinion that such a
representation is not required under any applicable law, regulation or rule of any governmental
agency.

     6. The Option may not be transferred in any manner except as provided under the Plan, and
generally may be exercised during the lifetime of the Optionee only by him. The terms of this
Option shall be binding upon the Optionee’s executors, administrators, heirs, assigns and
successors.

     7. The Optionee hereby agrees that in the event of a Registration of Shares, the Optionee
shall not offer, sell, contract to sell, pledge, hypothecate, grant any option to purchase or make
any short sale of, or otherwise dispose of any shares of stock of the Company or any rights to
acquire stock of the Company for such period of time from and after the effective date of such
registration statement as may be established by the underwriter for such public offering; provided,
however, that such period of time shall not exceed one hundred eighty (180) days from the effective
date of the registration statement to be filed in connection with such public offering. The
Optionee shall be subject to this provision provided and only if other Plan Participants are also
subject to similar arrangements.

 

 

     8. The Optionee acknowledges and agrees that upon exercise of the Option, HE/SHE shall execute
a Joinder and be subject to the provisions of the Nanosphere, Inc. Stockholders Agreement dated
January 18, 2000.

     9. The Option may not be exercised more than ten (10) years after the date indicated below and
may be exercised during such term only in accordance with the terms and conditions set forth in the
Plan.

     10. The Committee shall make all determinations concerning rights to benefits under the Plan.

Dated:                     

	 	 	 	 	 
	 	Nanosphere, Inc.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

ATTEST:

     The Optionee acknowledges that he has received a copy of the Plan and is familiar with the
terms and conditions set forth therein. The Optionee agrees to accept as binding, conclusive, and
final all decisions and interpretations of the Committee. As a condition of this Agreement, the
Optionee authorizes the Company to withhold from any regular cash compensation payable by the
Company any taxes required to be withheld under any federal, state or local law as a result of
exercising this Option.

Dated: ____________, ___

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Optionee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]