Document:

exv10w2

 

Exhibit 10.2

 

 

Genomic Health, Inc.

2001 Stock Incentive Plan

Adopted by the Board on January 3, 2001

Approved by Stockholders on January 3, 2001

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1.
	 	PURPOSE	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 2.
	 	DEFINITIONS	 	 	1	 
	2.1
	 	“Award”	 	 	1	 
	2.2
	 	“Board”	 	 	1	 
	2.3
	 	“Change in Control”	 	 	1	 
	2.4
	 	“Code”	 	 	2	 
	2.5
	 	“Committee”	 	 	2	 
	2.6
	 	“Company”	 	 	2	 
	2.7
	 	“Consultant”	 	 	2	 
	2.8
	 	“Disability”	 	 	2	 
	2.9
	 	“Employee”	 	 	2	 
	2.10
	 	“Exchange Act”	 	 	2	 
	2.11
	 	“Exercise Price”	 	 	3	 
	2.12
	 	“Fair Market Value”	 	 	3	 
	2.13
	 	“ISO”	 	 	3	 
	2.14
	 	“NSO”	 	 	3	 
	2.15
	 	“Offeree”	 	 	3	 
	2.16
	 	“Option”	 	 	3	 
	2.17
	 	“Optionee”	 	 	3	 
	2.18
	 	“Outside Director”	 	 	3	 
	2.19
	 	“Parent”	 	 	3	 
	2.20
	 	“Plan”	 	 	4	 
	2.21
	 	“Purchase Price”	 	 	4	 
	2.22
	 	“Purchaser”	 	 	4	 
	2.23
	 	“Restricted Share”	 	 	4	 
	2.24
	 	“Restricted Share Agreement”	 	 	4	 
	2.25
	 	“Securities Act”	 	 	4	 
	2.26
	 	“Service”	 	 	4	 
	2.27
	 	“Share”	 	 	4	 
	2.28
	 	“Stock”	 	 	4	 
	2.29
	 	“Stock Option Agreement”	 	 	4	 
	2.30
	 	“Subsidiary”	 	 	4	 
	2.31
	 	“Ten-Percent Stockholder”	 	 	4	 
	 
	 	 	 	 	 	 
	SECTION 3.
	 	ADMINISTRATION	 	 	5	 
	3.1
	 	General Rule	 	 	5	 
	3.2
	 	Committee Composition	 	 	5	 
	3.3
	 	Committee Procedures	 	 	5	 
	3.4
	 	Board Responsibilities	 	 	5	 
	 
	 	 	 	 	 	 
	SECTION 4.
	 	ELIGIBILITY	 	 	7	 
	4.1
	 	General Rule	 	 	7	 

-i-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 5.
	 	STOCK SUBJECT TO PLAN	 	 	7	 
	5.1
	 	Share Limit	 	 	7	 
	5.2
	 	Additional Shares	 	 	7	 
	 
	 	 	 	 	 	 
	SECTION 6.
	 	RESTRICTED SHARES	 	 	7	 
	6.1
	 	Restricted Share Agreement	 	 	7	 
	6.2
	 	Duration of Offers	 	 	7	 
	6.3
	 	Payment for Awards	 	 	7	 
	6.4
	 	Purchase Price	 	 	8	 
	6.5
	 	Vesting and Right to Repurchase	 	 	8	 
	 
	 	 	 	 	 	 
	SECTION 7.
	 	STOCK OPTIONS	 	 	8	 
	7.1
	 	Stock Option Agreement	 	 	8	 
	7.2
	 	Number of Shares; Kind of Option	 	 	8	 
	7.3
	 	Exercise Price	 	 	9	 
	7.4
	 	Term	 	 	9	 
	7.5
	 	Exercisability	 	 	9	 
	7.6
	 	Vesting	 	 	9	 
	7.7
	 	Effect of Change in Control	 	 	10	 
	7.8
	 	Payment for Option Shares	 	 	10	 
	7.9
	 	Leaves of Absence	 	 	11	 
	7.10
	 	Exercise of Options on Termination of Service	 	 	11	 
	7.11
	 	No Rights as a Stockholder	 	 	12	 
	7.12
	 	Modification, Extension and Renewal of Options	 	 	12	 
	7.13
	 	Buyout Provisions	 	 	12	 
	 
	 	 	 	 	 	 
	SECTION 8.
	 	ADJUSTMENT OF SHARES	 	 	12	 
	8.1
	 	Adjustments	 	 	12	 
	8.2
	 	Dissolution or Liquidation	 	 	12	 
	8.3
	 	Reorganizations	 	 	12	 
	8.4
	 	Reservation of Rights	 	 	13	 
	 
	 	 	 	 	 	 
	SECTION 9.
	 	TRANSFER RESTRICTIONS AND REPURCHASE RIGHTS	 	 	13	 
	9.1
	 	Nontransferability of Rights	 	 	13	 
	9.2
	 	Transfer of Restricted Shares to Trusts	 	 	13	 
	9.3
	 	Transferability of Options	 	 	13	 
	9.4
	 	Assignment	 	 	13	 
	9.5
	 	Restrictions on Transfer of Shares	 	 	13	 
	9.6
	 	Company’s Right To Repurchase Shares	 	 	14	 
	 
	 	 	 	 	 	 
	SECTION 10.
	 	WITHHOLDING TAXES	 	 	14	 
	10.1
	 	General	 	 	14	 
	10.2
	 	Share Withholding	 	 	14	 
	10.3
	 	Cashless Exercise/Pledge	 	 	15	 
	10.4
	 	Other Forms of Payment	 	 	15	 

-ii-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 11.
	 	SECURITIES LAW REQUIREMENTS	 	 	15	 
	11.1
	 	General	 	 	15	 
	11.2
	 	Voting and Dividend Rights	 	 	15	 
	11.3
	 	Financial Reports	 	 	15	 
	 
	 	 	 	 	 	 
	SECTION 12.
	 	NO EMPLOYMENT RIGHTS	 	 	15	 
	 
	 	 	 	 	 	 
	SECTION 13.
	 	DURATION AND AMENDMENTS	 	 	15	 
	13.1
	 	Term of the Plan	 	 	15	 
	13.2
	 	Right to Amend or Terminate the Plan	 	 	16	 
	13.3
	 	Effect of Amendment or Termination	 	 	16	 
	 
	 	 	 	 	 	 
	SECTION 14.
	 	EXECUTION	 	 	16	 

-iii-

 

No Early Exercise

Genomic Health, Inc.

2001 Stock Incentive Plan

SECTION 1. PURPOSE.

     The Plan was adopted by the Board of Directors effective January 2, 2001. The purpose of the
Plan is to promote the long-term success of the Company and the creation of stockholder value by
(a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range
objectives; (b) encouraging the attraction and retention of Employees, Outside Directors and
Consultants with exceptional qualifications; and (c) linking Employees, Outside Directors and
Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to
achieve this purpose by providing for awards in the form of Restricted Shares and Options (which
may constitute incentive stock options or nonstatutory stock options).

     The grant of Awards and Options under the Plan is intended to be exempt from the securities
qualification requirements of the California Corporations Code by satisfying the exemption under
section 25102(o) of the California Corporations Code. However, Awards and Options may be awarded
in reliance upon other state securities law exemptions. To the extent that such other exemptions
are relied upon, the terms of this Plan which are included only to comply with section 25102(o)
shall be disregarded to the extent provided in the Stock Option Agreement or Restricted Share
Agreement.

SECTION 2. DEFINITIONS.

	2.1  	“Award” shall mean any award of the right to purchase Restricted Shares under
the Plan.
	 
	2.2  	“Board” shall mean the Board of Directors of the Company, as constituted from
time to time. If a Committee has been appointed to administer the Plan, any reference to
the Board in the Plan shall be construed as a reference to the Committee to whom the Board
has assigned a particular function.
	 
	2.3  	“Change in Control” shall mean the occurrence of any of the following events:

	 	(a)  	The consummation of a merger or consolidation of the Company with or into
another entity or any other corporate reorganization, if persons who were not
stockholders of the Company immediately prior to such merger, consolidation or other
reorganization own immediately after such merger, consolidation or other reorganization
fifty percent (50%) or more of the voting power of the outstanding securities of each
of (A) the continuing or surviving entity and (B) any direct or indirect parent
corporation of such continuing or surviving entity;
	 
	 	(b)  	The consummation of the sale, transfer or other disposition of all or
substantially all of the Company’s assets or the stockholders of the Company approve a
plan of complete liquidation of the Company; or

 

 

No Early Exercise

	 	(c)  	Any “person” (as defined below) who, by the acquisition or aggregation of
securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the combined voting power of the Company’s then outstanding
securities ordinarily (and apart from rights accruing under special circumstances)
having the right to vote at elections of directors (the “Base Capital Stock”); except
that any change in the relative beneficial ownership of the Company’s securities by any
person resulting solely from a reduction in the aggregate number of outstanding shares
of Base Capital Stock, and any decrease thereafter in such person’s ownership of
securities, shall be disregarded until such person increases in any manner, directly or
indirectly, such person’s beneficial ownership of any securities of the Company.

For purposes of Section 2.3(c), the term “person” shall have the same meaning as when used
in sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other
fiduciary holding securities under an employee benefit plan maintained by the Company or a
Parent or Subsidiary and (2) a corporation owned directly or indirectly by the stockholders
of the Company in substantially the same proportions as their ownership of the Stock.

Notwithstanding the foregoing, the term “Change in Control” shall not include a transaction
the sole purpose of which is (a) to change the state of the Company’s incorporation, (b) to
form a holding company that will be owned in substantially the same proportions by the
persons who held the Company’s securities immediately before such transaction; or (c) to
make an initial public offering of the Company’s Stock.

	2.4  	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	2.5  	“Committee” shall mean the committee designated by the Board, which is
authorized to administer the Plan, as described in Section 3 hereof.
	 
	2.6  	“Company” shall mean Genomic Health, Inc., a Delaware corporation.
	 
	2.7  	“Consultant” shall mean a consultant or advisor who is not an Employee and who
provides bona fide services to the Company, its Parent or Subsidiary as an independent
contractor or a member of the board of directors of a Parent or a Subsidiary. Service as a
Consultant shall be considered Service for all purposes of the Plan.
	 
	2.8  	“Disability” shall mean a condition that renders an individual unable to
engage in substantial gainful activity by reason of any medically determinable physical or
mental impairment.
	 
	2.9  	“Employee” shall mean any individual who is a common-law employee of the
Company, a Parent or a Subsidiary and who is an “employee” within the meaning of section
3401(c) of the Code and regulations issued thereunder.
	 
	2.10  	“Exchange Act” shall mean the Securities and Exchange Act of 1934, as
amended.

 

 

No Early Exercise

	2.11  	“Exercise Price” shall mean the amount for which one Share may be purchased
upon the exercise of an Option, as specified in a Stock Option Agreement.
	 
	2.12  	“Fair Market Value” means, with respect to a Share, the market price of one
Share of Stock, determined by the Board as follows:

	 	(a)  	If the Stock was traded over-the-counter on the date in question but was not
traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the
last transaction price quoted for such date by the OTC Bulletin Board or, if not so
quoted, shall be equal to the mean between the last reported representative bid and
asked prices quoted for such date by the principal automated inter-dealer quotation
system on which the Stock is quoted or, if the Stock is not quoted on any such system,
by the “Pink Sheets” published by the National Quotation Bureau, Inc.;
	 
	 	(b)  	If the Stock was traded on The Nasdaq Stock Market, then the Fair Market Value
shall be equal to the last reported sale price quoted for such date by The Nasdaq Stock
Market;
	 
	 	(c)  	If the Stock was traded on a United States stock exchange on the date in
question, then the Fair Market Value shall be equal to the closing price reported for
such date by the applicable composite-transactions report; and
	 
	 	(d)  	If none of the foregoing provisions is applicable, then the Fair Market Value
shall be determined by the Board in good faith on such basis as it deems appropriate.

In all cases, the determination of Fair Market Value by the Board shall be conclusive and
binding on all persons.

	2.13  	“ISO” shall mean an incentive stock option described in section 422(b) of the Code.
	 
	2.14  	“NSO” shall mean an stock option that is not an ISO.
	 
	2.15  	“Offeree” shall mean an Employee, Consultant or Outside Director to whom the Board
has granted an Award of Restricted Shares under the Plan.
	 
	2.16  	“Option” shall mean an ISO or NSO granted under the Plan and entitling the holder to
purchase Shares.
	 
	2.17  	“Optionee” shall mean an individual or estate that holds an Option.
	 
	2.18  	“Outside Director” shall mean a member of the Board of the Company, a Parent or a
Subsidiary who is not a common-law employee of the Company, Parent or a Subsidiary. Service
as an Outside Director shall be considered Service for all purposes of the Plan.
	 
	2.19  	“Parent” shall mean any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the Company owns
stock possessing fifty percent (50%) or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain. A

 

 

No Early Exercise

corporation that attains the
status of a Parent on a date after the adoption of the Plan shall be considered a Parent
commencing as of such date.

	2.20  	“Plan”
shall mean the Genomic Health, Inc. 2001 Stock Incentive Plan.
	 
	2.21  	“Purchase Price” shall mean the consideration for which a Restricted Share may be
acquired under the Plan.
	 
	2.22  	“Purchaser” shall mean an eligible individual who has acquired Stock under the Plan
through an Award of Restricted Shares or through the exercise of an Option.
	 
	2.23  	“Restricted Share” shall mean a Share awarded under the Plan which is either
nontransferable, subject to a substantial risk of forfeiture, or both.
	 
	2.24  	“Restricted Share Agreement” shall mean the agreement between the Company and the
recipient of a Restricted Share which contains the terms, conditions and restrictions
pertaining to such Restricted Shares.
	 
	2.25  	“Securities Act” shall mean the Securities Act of 1933, as amended.
	 
	2.26  	“Service” shall mean service as an Employee, a Consultant or an Outside Director.
	 
	2.27  	“Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if
applicable).
	 
	2.28  	“Stock” shall mean the common stock of the Company.
	 
	2.29  	“Stock Option Agreement” shall mean the agreement between the Company and an
Optionee which contains the terms, conditions and restrictions pertaining to the Optionee’s
Option.
	 
	2.30  	“Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company, if each of the corporations other than the last
corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other corporations in such
chain. A corporation that attains the status of a Subsidiary on a date after the adoption
of the Plan shall be considered a Subsidiary commencing as of such date.
	 
	2.31  	“Ten-Percent Stockholder” means an individual who owns more than ten percent (10%)
of the total combined voting power of all classes of outstanding stock of the Company, its
Parent or any of its Subsidiaries. In determining stock ownership, the attribution rules of
section 424(d) of the Code shall apply solely for purposes of Sections 7.3(a) and 7.4 hereof.
An individual shall be deemed to own the stock owned, directly or indirectly, by or for his or
her brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly or
indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned
proportionately by or for its stockholders, partners or beneficiaries. Stock with respect to
which such individual holds an Option shall not be counted. Outstanding

 

 

No Early Exercise

stock shall include
all stock actually issued and outstanding immediately after the grant but shall not include
Shares authorized for issuance under outstanding Options held by any individual.

SECTION 3. ADMINISTRATION.

	3.1  	General Rule. The Plan shall be administered by the Board. However,
the Board may delegate any or all administrative functions under the Plan otherwise
exercisable by the Board to a Committee. The Board shall designate one of the members of
the Committee as chairman. Members of the Committee shall serve for such period of time as
the Board may determine and shall be subject to removal by the Board at any time. The Board
may also at any time terminate the functions of the Committee and reassume all powers and
authority of the Board previously delegated to the Committee. If a Committee has been
appointed, any reference to the Board in the Plan shall be construed as a reference to the
Committee to whom the Board has assigned a particular function.
	 
	3.2  	Committee Composition. The Committee shall consist of one or more
members of the Board who have been appointed by the Board. If the Company’s Stock becomes
publicly traded, the composition of the Committee shall satisfy (i) such requirements as the
Securities and Exchange Commission may establish for administrators acting under plans
intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange
Act; and (ii) such requirements as the Internal Revenue Service may establish for outside
directors acting under plans intended to qualify for exemption under section 162(m)(4)(C) of
the Code. The Board may also appoint one or more separate committees of the Board, each
composed of one or more directors of the Company who need not satisfy the requirements of
the previous sentence, who may administer the Plan with respect to Employees who are not
considered officers or directors of the Company under section 16 of the Exchange Act, may
grant Awards or Options under the Plan to such Employees and may determine all terms of such
grants. Within the limitations of the preceding
sentence, any reference in the Plan to the Committee shall include such committee or
committees appointed pursuant to the preceding sentence.
	 
	3.3  	Committee Procedures. The Committee may hold meetings at such times
and places as it shall determine. The acts of a majority of the Committee members present
at meetings at which a quorum exists, or acts reduced to or approved in writing by all
Committee members, shall be valid acts of the Committee.
	 
	3.4  	Board Responsibilities. Subject to the provisions of the Plan, the
Board shall have the discretionary authority to take the following actions:

	 	(a)  	To interpret the Plan and to apply its provisions;
	 
	 	(b)  	To adopt, amend or rescind rules, procedures and forms relating to the Plan;
	 
	 	(c)  	To authorize any person to execute, on behalf of the Company, any instrument
required to carry out the purposes of the Plan;

 

 

No Early Exercise

	 	(d)  	To determine when Restricted Shares are to be awarded or offered for sale and
when Options are to be granted under the Plan;
	 
	 	(e)  	To select Offerees and Optionees;
	 
	 	(f)  	To determine the number of Restricted Shares to be offered to each Offeree or
to be made subject to each Option;
	 
	 	(g)  	To prescribe the terms and conditions of each Award of Shares, including
(without limitation) the Purchase Price and the vesting of the Award (including
accelerating the vesting of awards), and to specify the provisions of the Restricted
Share Agreement relating to such Award;
	 
	 	(h)  	To prescribe the terms and conditions of each Option, including (without
limitation) the Exercise Price, the vesting or duration of the Option (including
accelerating the vesting of the Option), to determine whether such Option is to be
classified as an ISO or as an NSO, and to specify the provisions of the Stock Option
Agreement relating to such Option;
	 
	 	(i)  	To amend any outstanding Restricted Share Agreement or Stock Option Agreement,
subject to applicable legal restrictions and to the consent of the Purchaser or
Optionee who entered into such agreement;
	 
	 	(j)  	To prescribe the consideration for the grant of Award under the Plan and to
determine the sufficiency of such consideration;
	 
	 	(k)  	To determine the disposition of each Option or Award under the Plan in the
event of an Optionee’s or Offeree’s divorce or dissolution of marriage;
	 
	 	(l)  	To determine whether Options or Awards under the Plan will be granted in
replacement of other grants under an incentive or other compensation plan of an
acquired business;
	 
	 	(m)  	To determine all questions relating to Service of an Employee, Consultant or
Outside Director, including, but not limited to, the date on which such Service has
commenced and ended and the length of such Service for purposes of vesting under the
Plan;
	 
	 	(n)  	To process claims;
	 
	 	(o)  	To correct any defect, supply any omission or reconcile any inconsistency in
the Plan, any Stock Option Agreement or any Restricted Share Agreement; and
	 
	 	(p)  	To take any other actions deemed necessary or advisable for the administration
of the Plan.

All decisions, interpretations and other actions of the Board shall be final and binding on
all persons. No member of the Board shall be liable for any action that he or she has

 

 

No Early Exercise

taken
or has failed to take in good faith with respect to the Plan, any Option, or any Award of
Restricted Shares under the Plan.

SECTION 4. ELIGIBILITY.

	4.1  	General Rule. Only Employees shall be eligible for the grant of ISOs.
Only Employees, Consultants and Outside Directors shall be eligible for the grant of
Restricted Shares or NSOs.

SECTION 5. STOCK SUBJECT TO PLAN.

	5.1  	Share Limit. Shares offered under the Plan shall be authorized but
unissued Shares. Subject to Section 5.2, the aggregate number of Shares which may be issued
or transferred under the Plan shall not exceed 3,500,000 Shares, subject to adjustment
pursuant to Section 8. The number of Shares which are subject to Awards and Options shall
not exceed the number of Shares which then remain available for issuance under the Plan, and
the Company, during the term of the Plan, shall at all times reserve and keep available
sufficient Shares to satisfy the requirements of the Plan. Notwithstanding the foregoing,
at no time shall the total number of Shares that may be issued upon the exercise of all
outstanding
Options and the total number of Shares provided under any stock bonus or similar plan of the
Company exceed thirty percent (30%) of all outstanding shares of the Company, unless a
higher percentage is approved by an affirmative vote of at least two-thirds (2/3) of the
Company’s Shares entitled to vote.
	 
	5.2  	Additional Shares. In the event that any outstanding Option or Award
expires or is canceled for any reason, the Shares allocable to the unexercised portion of
such Option or Award shall again be available for the purposes of the Plan. If a Share
acquired under the Plan is forfeited or repurchased, then such Share shall again become
available for award under the Plan, except that the aggregate number of Shares that may be
issued upon the exercise of ISOs shall in no event exceed 3,500,000, as adjusted pursuant to
Section 8.

SECTION 6. RESTRICTED SHARES.

	6.1  	Restricted Share Agreement. Each Award of Restricted Shares shall be
evidenced by a Restricted Share Agreement between the recipient and the Company. Such Award
shall be subject to all applicable terms and conditions of the Plan and may be subject to
any other terms and conditions imposed by the Board, as set forth in the Restricted Share
Agreement, that are not inconsistent with the Plan. The provisions of the various
Restricted Share Agreements entered into under the Plan need not be identical.
	 
	6.2  	Duration of Offers. Any right to acquire Restricted Shares shall
automatically expire if not exercised by the Offeree within thirty (30) days after the Board
communicated the grant of such right to the Offeree.
	 
	6.3  	Payment for Awards. The Purchase Price for Restricted Shares may be
paid with cash, cash equivalents or a full-recourse promissory note. Restricted Shares also
may be awarded in consideration of past services to the Company, a Parent or Subsidiary.

 

 

No Early Exercise

However, if the Restricted Shares to be awarded are newly issued, payment in the form of a
promissory note shall only be permitted if the Offeree pays the par value of the Restricted
Shares in cash or cash equivalents. In the case of a promissory note, the Restricted Shares
shall be pledged as security for the payment of the principal amount of the promissory note
and interest thereon.

	6.4  	Purchase Price. The Purchase Price per Share to be offered under the
Plan shall not be less than eighty-five percent (85%) of the Fair Market Value of a Share on
the date of grant. The
Purchase Price per Share to be offered under the Plan to a Ten-Percent Stockholder shall not
be less than one hundred percent (100%) of the Fair Market Value of a Share on the date of
grant. Subject to the foregoing in this Section 6.4, the amount of the Purchase Price shall
be determined by the Board in its discretion.
	 
	6.5  	Vesting and Right to Repurchase. Each Award of Restricted Shares may
or may not be subject to vesting or to a right of repurchase by the Company. Vesting shall
occur, in full or in installments, upon satisfaction of the conditions specified in the
Restricted Share Agreement. The Company’s right of repurchase shall comply with the
requirements of Section 9. A Restricted Share Agreement may provide for accelerated vesting
in the event of the Offeree’s death, Disability or retirement or other events. The Board
may determine, at the time of the Award of Restricted Shares or thereafter, that all or part
of such Restricted Shares shall become vested in the event that a Change in Control occurs
with respect to the Company.

SECTION 7. STOCK OPTIONS.

	7.1  	Stock Option Agreement. Each grant of an Option under the Plan shall
be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option
shall be subject to all applicable terms and conditions of the Plan and may be subject to
any other terms and conditions imposed by the Board, as set forth in the Stock Option
Agreement, which are not inconsistent with the Plan. The provisions of the various Stock
Option Agreements entered into under the Plan need not be identical. A Stock Option
Agreement may provide that a new Option will be granted automatically to the Optionee when
he or she exercises a prior Option and pays the Exercise Price.
	 
	7.2  	Number of Shares; Kind of Option. Each Stock Option Agreement shall
specify the number of Shares that are subject to the Option and shall provide for the
adjustment of such number in accordance with Section 8. The Stock Option Agreement shall
also specify whether the Option is an ISO or an NSO. Of all Options held by an Optionee
that become exercisable in the same calendar year, only Options covering Stock with an
aggregate Fair Market Value of $100,000 or less will qualify as ISOs and any Options in
excess of $100,000 shall be treated as NSOs. For purposes of the requirement in the
previous sentence, ISOs shall be taken into account in the order in which they were granted,
and the Fair Market Value of the Stock shall be determined on the date that the Option was
granted.

 

 

No Early Exercise

	7.3  	Exercise Price. Each Stock Option Agreement shall set forth the Exercise Price. Subject to the following
requirements, the Exercise Price under any Option shall be determined by the Board in its
sole discretion:

	 	(a)  	Minimum Exercise Price for ISOs. The Exercise Price per Share
of an ISO shall not be less than one hundred percent (100%) of the Fair Market Value
of a Share on the date of grant. The Exercise Price per Share of an ISO granted to a
Ten-Percent Stockholder shall not be less than one hundred ten percent (110%) of the
Fair Market Value of a Share on the date of grant.
	 
	 	(b)  	Minimum Exercise Price for NSOs. The Exercise Price per Share
of an NSO shall not be less than eighty-five percent (85%) of the Fair Market Value of
a Share on the date of grant. The Exercise Price per Share of an NSO granted to a
Ten-Percent Stockholder shall not be less than one hundred ten percent (110%) of the
Fair Market Value of a Share on the date of grant.

	7.4  	Term. Each Stock Option Agreement shall specify the term of the
Option. The term of an Option shall in no event exceed ten (10) years from the date of
grant. The term of an ISO granted to a Ten-Percent Stockholder shall not exceed five (5)
years from the date of grant. Subject to the foregoing, the Board in its sole discretion
shall determine when an Option shall expire.
	 
	7.5  	Exercisability. Each Stock Option Agreement also shall specify the
date when all or any installment of the Option is to become exercisable. Subject to the
following restrictions, the Board in its sole discretion shall determine when all or any
installment of an Option is to become exercisable and may, in its discretion, provide for
accelerated exercisability in the event of a Change in Control, the Optionee’s death,
Disability or retirement or other events:

	 	(a)  	Options Granted to Employees. An Option granted to an Employee
who is not an officer of the Company, a Parent or a Subsidiary shall be exercisable at
the minimum rate of twenty percent (20%) per year for each of the first five (5) years
starting from the date of grant, subject to reasonable conditions such as continued
Service.
	 
	 	(b)  	Options Granted to Outside Directors, Consultants or Officers.
An Option granted to an Outside Director, a Consultant or an officer of the Company, a
Parent or a Subsidiary shall be exercisable at any time or during any
period established by the Board, subject to reasonable conditions such as continued
Service.
	 
	 	(c)  	Exercise Prior to Vesting. A Stock Option Agreement may permit
the Optionee to exercise the Option as to Shares that have not vested, subject to the
Company’s right to repurchase any Shares that have not vested when the Optionee’s
Service terminates at the original Exercise Price, in accordance with Section 9.5.

	7.6  	Vesting. Each Stock Option Agreement shall specify the date when all
or any Shares subject to the Option shall be vested. Subject to the following restrictions,
the Board in

 

 

No Early Exercise

its sole discretion shall determine when all or any portion of the Shares
subject to an Option shall be vested and may, in its discretion, provide for accelerated
vesting in the event of a Change in Control, the Optionee’s death, Disability or retirement
or other events and may provide for the cessation of vesting prior to the end of its term in
the event of the termination of the Optionee’s Service:

	 	(a)  	Options Granted to Employees. An Option granted to an Employee
who is not an officer of the Company, a Parent or a Subsidiary shall provide that the
Shares subject to such Option shall become vested at the minimum rate of twenty
percent (20%) per year for each of the first five (5) years starting from the date of
grant, subject to reasonable conditions such as continued Service.
	 
	 	(b)  	Options Granted to Outside Directors, Consultants or Officers.
An Option granted to an Outside Director, a Consultant or an officer of the Company, a
Parent or a Subsidiary shall provide that the Shares subject to such Option shall
become vested at any time or during any period established by the Board, subject to
reasonable conditions such as continued Service.

	7.7  	Effect of Change in Control. The Board may determine, at the time of
granting an Option or thereafter, that such Option shall become exercisable and/or shall
vest in whole or in part with respect to the Shares subject to such Option in the event that
a Change in Control occurs with respect to the Company before the Optionee’s Service with
the Company terminates, provided that (i) in the case of an ISO, the acceleration of
exercisability and/or vesting shall not occur without the Optionee’s written consent; and
(ii) if the Company and the other party to the transaction constituting a Change in Control
agree that such transaction is to be treated as a “pooling of interests” for financial
reporting purposes, and if such transaction in fact is so treated, then the acceleration of
exercisability shall not occur to the extent that the Company’s independent accountants and
such other party’s independent accountants
separately determine in good faith that such acceleration would preclude the use of “pooling
of interests” accounting.
	 
	7.8  	Payment for Option Shares. The entire Exercise Price shall be payable
in cash, cash equivalents or one of the following forms:

	 	(a)  	Surrender of Stock. To the extent that a Stock Option Agreement
so provides, payment may be made all or in part with Shares which have already been
owned by the Optionee or the Optionee’s representative for at least six (6) months (or
any other time period specified by Board) and which are surrendered to the Company in
good form for transfer. Such Shares shall be valued at their Fair Market Value on the
date when the new Shares are purchased under the Plan.
	 
	 	(b)  	Promissory Notes. To the extent that a Stock Option Agreement
so provides, payment may be made in whole or in part with a full-recourse promissory
note executed by the Optionee. The interest rate and other terms and conditions of
such note shall be determined by the Board. The Board may require that the Optionee
pledge his or her Shares to the Company for the purpose of securing the payment of

 

 

No Early Exercise

such note. In no event shall the stock certificate(s) representing such Shares be
released to the Optionee until such note is paid in full.

	 	(c)  	Cashless Exercise. To the extent that a Stock Option Agreement
so provides and a public market for the Shares exists, payment may be made in whole or
in part by delivery (on a form prescribed by the Board) of an irrevocable direction to
a securities broker to sell Shares and to deliver all or part of the sale proceeds to
the Company in payment of the aggregate Exercise Price.
	 
	 	(d)  	Exercise/Pledge. To the extent that a Stock Option Agreement so
provides and a public market for the Shares exists, payment may be made in whole or in
part by delivery (on a form prescribed by the Committee) of an irrevocable direction
to a securities broker or lender to pledge Shares, as security for a loan, and to
deliver all or part of the loan proceeds to the Company in payment of the aggregate
Exercise Price.
	 
	 	(e)  	Other Forms of Payment. To the extent provided in the Stock
Option Agreement, payment may be made in any other form that is consistent with
applicable laws, regulations and rules.

	7.9  	Leaves of Absence. An Employee’s Service shall cease when such
Employee ceases to be actively employed by, or ceases to be a consultant or adviser to, the
Company (or any subsidiary) as determined in the sole discretion of the Board. For purposes
of Options, Service does not terminate when an Employee goes on a bona fide leave of
absence, that was approved by the Company in writing, if the terms of the leave provide for
continued service crediting, or when continued service crediting is required by applicable
law. However, for purposes of determining whether an Option is entitled to ISO status, an
Employee’s Service will be treated as terminating ninety (90) days after such Employee went
on leave, unless such Employee’s right to return to active work is guaranteed by law or by a
contract. Service terminates in any event when the approved leave ends, unless such
Employee immediately returns to active work. The Board determines which leaves count toward
Service, and when Service terminates for all purposes under the Plan.
	 
	7.10  	Exercise of Options on Termination of Service. Each Option shall set
forth the extent to which the Optionee shall have the right to exercise the Option following
termination of the Optionee’s Service with the Company and its Subsidiaries. Each Stock
Option Agreement shall provide the Optionee with the right to exercise the Option following
the Optionee’s termination of Service during the Option term for at least thirty (30) days
if termination of Service is due to any reason other than cause, death or Disability, and
for at least six (6) months after termination of Service if due to death or Disability. If
the Optionee’s Service is terminated for cause, the Stock Option Agreement may provide that
the Optionee’s right to exercise the Option terminates immediately on the effective date of
the Optionee’s termination. Subject to the foregoing, such provisions shall be determined
in the sole discretion of the Board, need not be uniform among all Options issued pursuant
to the Plan, and may reflect distinctions based on the reasons for termination of
employment.

 

 

No Early Exercise

	7.11  	No Rights as a Stockholder. An Optionee, or a transferee of an
Optionee, shall have no rights as a stockholder with respect to any Shares covered by his or
her Option until the date of the issuance of a stock certificate for such Shares. No
adjustments shall be made, except as provided in Section 8.
	 
	7.12  	Modification, Extension and Renewal of Options. Within the
limitations of the Plan, the Board may modify, extend or renew outstanding Options or may
accept the cancellation of outstanding Options (to the extent not previously exercised),
whether or not granted hereunder, in return for the grant of new Options for the same or a
different number of Shares and at the same or a different Exercise Price. The foregoing
notwithstanding, no modification of an Option shall, without the consent of the Optionee,
alter or impair his or her rights or obligations under such Option.
	 
	7.13  	Buyout Provisions. The Board may at any time (a) offer to buy out
for a payment in cash or cash equivalents an Option previously granted or (b) authorize an
Optionee to elect to cash out an Option previously granted, in either case at such time and
based upon such terms and conditions as the Committee shall establish.

SECTION 8. ADJUSTMENT OF SHARES.

	8.1  	Adjustments. In the event of a subdivision of the outstanding Stock,
a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form
other than Shares in an amount that has a material effect on the price of Shares, a
combination or consolidation of the outstanding Stock (by reclassification or otherwise)
into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, the
Board shall make such adjustments as it, in its sole discretion, deems appropriate to one or
more of the following: (i) the number of Options or Restricted Shares available for future
awards under Section 5; (ii) the number of Shares covered by each outstanding Option; or
(iii) the Exercise Price under each outstanding Option. Except as provided in this Section
8, an individual shall have no rights by reason of any issue by the Company of stock of any
class or securities convertible into stock of any class, any subdivision or consolidation of
shares of stock of any class, the payment of any stock dividend or any other increase or
decrease in the number of shares of stock of any class.
	 
	8.2  	Dissolution or Liquidation. To the extent not previously exercised or
settled, Options shall terminate immediately prior to the dissolution or liquidation of the
Company.
	 
	8.3  	Reorganizations. In the event that the Company is a party to a merger
or other reorganization, outstanding Awards and Options shall be subject to the agreement of
merger or reorganization. Such agreement may provide for one or more of the following: (i)
the continuation of the outstanding Awards and Options by the Company, if the Company is a
surviving corporation; (ii) the assumption of the outstanding Awards and Options by the
surviving corporation or its parent or subsidiary; (iii) the substitution by the surviving
corporation or its parent or subsidiary of its own awards or options for the outstanding
Awards and Options; (iv) immediate exercisability or vesting and accelerated expiration of
the outstanding Awards or Options; or (v) settlement of the full value of the

 

 

No Early Exercise

outstanding
Awards or Options in cash or cash equivalents followed by cancellation of such Awards or
Options.

	8.4  	Reservation of Rights. Except as provided in this Section 8, an Optionee or Offeree shall have no rights by
reason of any subdivision or consolidation of shares of stock of any class, the payment of
any dividend or any other increase or decrease in the number of shares of stock of any
class. Any issue by the Company of shares of stock of any class, or securities convertible
into shares of stock of any class, shall not affect, and no adjustment by reason thereof
shall be made with respect to, the number or Exercise Price of Shares subject to an Option.
The grant of an Option pursuant to the Plan shall not affect in any way the right or power
of the Company to make adjustments, reclassifications, reorganizations or changes of its
capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or
transfer all or any part of its business or assets.

SECTION 9. TRANSFER RESTRICTIONS AND REPURCHASE RIGHTS.

	9.1  	Nontransferability of Rights. Any right to acquire Restricted Shares
shall not be transferable and shall be exercisable only by the Offeree to whom such right
was granted.
	 
	9.2  	Transfer of Restricted Shares to Trusts. To the extent approved by
the Board in writing, a Purchaser may transfer or assign Restricted Shares to (a) the
trustee of a trust that is revocable by such Purchaser alone, both at the time of the
transfer or assignment and at all times thereafter prior to such Purchaser’s death, or (b)
the trustee of any other trust established for the benefit of a family member of the
Purchaser. A transfer or assignment of Restricted Shares from such trustee to any other
person than the Purchaser shall be permitted only to the extent approved in advance by the
Board in writing, and Restricted Shares held by such trustee shall be subject to all the
conditions and restrictions set forth in the Plan and in the applicable Restricted Share
Agreement, as if such trustee were a party to such Agreement.
	 
	9.3  	Transferability of Options. During an Optionee’s lifetime, his or her
Options shall be exercisable only by the Optionee and shall not be transferable other than
by will or by the laws of descent and distribution. Notwithstanding the foregoing, however,
to the extent that a Stock Option Agreement so provides, an NSO may be transferred to a
family member or a trust established for the benefit of a family member of the Purchaser to
the extent permitted by section 260.140.41(d) of Title 10 of the California Code of
Regulations and Rule 701 of the Securities Act.
	 
	9.4  	Assignment. Options and Shares acquired under the Plan shall not be anticipated, assigned, attached,
garnished, optioned, transferred or made subject to any creditor’s process, whether
voluntarily, involuntarily or by operation of law, except as approved by the Board.
	 
	9.5  	Restrictions on Transfer of Shares. Any Shares acquired under the
Plan through an Award or an Option shall be subject to such special forfeiture conditions,
rights of repurchase, rights of first refusal and other transfer restrictions as the Board
may

 

 

No Early Exercise

determine. Such restrictions shall be set forth in the applicable Stock Option
Agreement or Restricted Share Agreement and shall apply in addition to any restrictions that
may apply to holders of Shares generally.

	9.6  	Company’s Right To Repurchase Shares. The Company shall have the
right to repurchase a Purchaser’s Shares that have been acquired through an Award or an
Option upon termination of the Purchaser’s Service if provided in the applicable Restricted
Share Agreement or Stock Option Agreement.

	 	(a)  	Repurchase Price. If the Company retains a right to repurchase
the Shares at the greater of the Exercise Price or Fair Market Value of the Shares on
the date that the Purchaser’s Service terminates, then such repurchase right shall
terminate when the Company’s Stock becomes publicly traded. If the Company retains a
right to repurchase Shares at the greater of the original Purchase Price or Exercise
Price, then such repurchase right shall lapse at the minimum rate of twenty percent
(20%) per year over the five (5) year period starting on the date that the Award or
Option was granted. The foregoing restrictions on the Company’s right of repurchase
shall not apply to Options and Restricted Shares granted to Outside Directors,
Consultants or officers of the Company, a Parent or Subsidiary and such repurchase
rights may be subject to additional or greater restrictions, as determined by the
Board.
	 
	 	(b)  	Exercise of Repurchase Price. The Company’s right of repurchase
under this Section 9.6 may be exercised only within ninety (90) days of the date on
which the Purchaser’s Service terminates or, if later, ninety (90) days from the date
on which the Purchaser acquired the Shares to be repurchased by the Company.
	 
	 	(c)  	Payment of Repurchase Price. The Company shall pay the
repurchase price in cash, cash equivalents or for cancellation of indebtedness
incurred by the Purchaser in purchasing the Shares.

SECTION 10. WITHHOLDING TAXES.

	10.1  	General. To the extent required by applicable federal, state, local
or foreign law, an Offeree or Optionee or his or her successor shall make arrangements
satisfactory to the Board for the satisfaction of any withholding tax obligations that arise
in connection with the Plan. The Company shall not be required to issue any Shares or make
any cash payment under the Plan until such obligations are satisfied.
	 
	10.2  	Share Withholding. The Board may permit an Offeree or Optionee to
satisfy all or part of his or her withholding or income tax obligations by having the
Company withhold all or a portion of any Shares that otherwise would be issued to him or her
or by surrendering all or a portion of any Shares that he or she previously acquired;
provided, however, that in no event may an Offeree or Optionee surrender Shares in excess of
the legally required withholding amount. Such Shares shall be valued at their Fair Market
Value on the date when taxes otherwise would be withheld in cash. Any payment of

 

 

No Early Exercise

taxes by
assigning Shares to the Company may be subject to restrictions, including any restrictions
required by rules of any federal or state regulatory body or other authority.

	10.3  	Cashless Exercise/Pledge. The Board may provide that if Company
Shares are publicly traded at the time of exercise, arrangements may be made to meet the
Optionee’s or Offeree’s withholding obligation by cashless exercise or pledge.
	 
	10.4  	Other Forms of Payment. The Board may permit such other means of tax
withholding as it deems appropriate.

SECTION 11. SECURITIES LAW REQUIREMENTS.

	11.1  	General. Shares shall not be issued under the Plan unless the
issuance and delivery of such Shares complies with (or is exempt from) all applicable
requirements of law, including (without limitation) the Securities Act, the rules and
regulations promulgated thereunder, state securities laws and regulations, and the
regulations of any stock exchange on which the Company’s securities may then be listed.
	 
	11.2  	Voting and Dividend Rights. The holders of Shares acquired under the
Plan shall have the same voting, dividend and other rights as the Company’s other
stockholders. A Restricted Share Agreement, however, may require that the holders of
Restricted Shares invest any cash dividends received in additional Restricted Shares. Such
additional Restricted Shares shall be
subject to the same conditions and restrictions as the Award with respect to which the
dividends were paid.
	 
	11.3  	Financial Reports. At least annually, the Company shall furnish its
financial statements, including a balance sheet regarding the Company’s financial condition
and results of operations, to Offerees, Optionees and Purchasers whose duties at the Company
do not assure them access to equivalent information. Financial statements need not be
audited.

SECTION 12. NO EMPLOYMENT RIGHTS.

     No provision of the Plan, or any right or Option granted under the Plan, shall be construed to
give any person any right to become an Employee, to be treated as an Employee, or to remain in the
Service of the Company. The Company and its Subsidiaries reserve the right to terminate any
person’s Service at any time and for any reason.

SECTION 13. DURATION AND AMENDMENTS.

	13.1  	Term of the Plan. The Plan, as set forth herein, shall become
effective on the date of its adoption by the Board, subject to the approval of the Company’s
stockholders. In the event that the stockholders fail to approve the Plan within twelve
(12) months after its adoption by the Board, any grants already made shall be null and void,
and no additional grants shall be made after such date. The Plan shall terminate
automatically on January 2, 2011 and may be terminated on any earlier date pursuant to
Section 13.2 below.

 

 

No Early Exercise

	13.2  	Right to Amend or Terminate the Plan. The Board may amend the Plan
at any time and from time to time, except for Sections 8.2 and 8.3 hereof which may not be
amended. Rights and obligations under any right or Option granted before amendment of the
Plan shall not be materially altered, or impaired adversely, by such amendment, except with
consent of the person to whom the right or Option was granted. An amendment of the Plan
shall be subject to the approval of the Company’s stockholders only to the extent required
by applicable laws, regulations or rules, including the rules of any applicable exchange.
	 
	13.3  	Effect of Amendment or Termination . No Shares shall be issued or sold under the Plan after the termination thereof, except
upon exercise of an Option granted prior to such termination. The termination of the Plan,
or any amendment thereof, shall not affect any Shares previously issued or any Option
previously granted under the Plan.

SECTION 14. EXECUTION.

     To record the adoption of the Plan by the Board on January 2, 2001, effective on such date,
the Company has caused its authorized officer to execute the same.

	 	 	 	 	 
	

	 	GENOMIC HEALTH, INC.

	 
	 	 	 	 
	

	 	By
	 	     /s/ Randal W. Scott
	

	 	 	 	 
	

	 	 	 	Randal W. Scott
	

	 	 	 	President and Chief Executive Officer

 

 

[Form of Stock Option
Agreement]

No Early Exercise

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND SOLD ONLY
IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF FEDERAL AND STATE
SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT
REQUIRED.

GENOMIC HEALTH, INC.

2001 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

Genomic Health, Inc. (the “Company”), hereby grants an Option to purchase shares of its
common stock (“Shares”) to                . The terms and conditions of the Option
are set forth in this cover sheet, in the attached Stock Option Agreement and in the Genomic
Health, Inc. 2001 Stock Incentive Plan the “Plan”).

	 	 	 
	Date of Grant:
	 	 
	 
	 	 
	Name of Optionee:
	 	 
	 
	 	 
	Number of Option
Shares:
	 	 
	 
	 	 
	Exercise Price per Share:

	 	     (If Optionee is a Ten-Percent Shareholder, the Exercise Price
must be at least 110% of Fair Market Value).
	 
	Vesting Start Date:
	 	 
	 
	 	 
	Type of Option:
	 	 
	 
	 	 
	Vesting Schedule:

	 	     Your Option vests over a           -year period
	 
	 	 
	Payment Forms:

	 	By cash, cash equivalents and, if the Company’s Shares become
publicly traded, by “cashless” exercise, as described in the
Stock Option Agreement.

By signing this cover sheet, you agree that (a) you have carefully read, fully
understand and agree to all of the terms and conditions described in the attached option
agreement, Plan document and “Notice of Exercise and Common Stock Purchase Agreement” (the
“Exercise Notice”); (b) you hereby make the purchaser’s investment representations contained
in the Exercise Notice with respect to the grant of this Option; (c) you understand and
agree that this Agreement, including its attachments, constitute the entire understanding
between you and the Company regarding this Option, and that any prior agreements,
commitments or negotiations concerning this Option are replaced and superseded; and (d) you
have been given an opportunity to consult legal counsel with respect to all matters relating
to this Option prior to signing this cover sheet and that you have either consulted such
counsel or voluntarily declined to consult such counsel.

	 	 	 	 	 
	 	 	GENOMIC HEALTH, INC.
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	Its:	 	 
	

	 	 	 	 

 

 

GENOMIC HEALTH, INC.

2001 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

SECTION 1. KIND OF OPTION.

This Option is intended to be either an incentive stock option intended to meet the
requirements of section 422 of the Internal Revenue Code (an “ISO”) or a non-statutory
option (an “NSO”), which is not intended to meet the requirements of an ISO, as indicated on
the cover sheet.

SECTION 2. VESTING.

Your Option vests over a
___-year period. After you complete twelve months of continuous
Service after _____, ____of the Shares covered by your Option will be vested and an
additional _____ of the Shares will be vested for each full month of Service that you
complete thereafter. After your Service terminates for any reason, vesting of your Option
immediately stops and your Option expires immediately as to the number of Shares that are
not vested as of your Service termination date.

SECTION 3. TERM.

Your Option
will expire in any event at the close of business at Company
headquarters on
_________.
Your Option will expire within five (5) years of the Date of Grant if you are a 10% owner of
the Company. Also, your Option will expire earlier if your Service terminates, as described
below.

SECTION 4. REGULAR TERMINATION.

If your Service terminates for any reason except death or Disability, your Option will
expire at the close of business at Company headquarters on the date three months after your
termination of Service. During that three-month period, you may exercise the portion of
your Option that was vested on your termination date.

SECTION 5. DEATH.

If you die while in Service with the Company, your Option will expire at the close of
business at Company headquarters on the date twelve months after the date of your death.
During that twelve-month period, your estate, legatees or heirs may exercise that portion of
your Option that was vested on the date of your death.

SECTION 6. DISABILITY.

     6.1 If your Service terminates because of a Disability, your Option will expire at
the close of business at Company headquarters on the date six months after your termination date.
During that six-month period, you may exercise that portion of your Option that was vested on

-1-

 

the date of your Disability. “Disability” means that you are unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment.

     6.2 If your Option is an ISO and your Disability is not expected to result in death
or to last for a continuous period of at least 12 months, your Option will be eligible for ISO tax
treatment only if it is exercised within three months following the termination of your Service as
an Employee.

SECTION 7. EXERCISING YOUR OPTION.

To exercise your Option, you must execute the Notice of Exercise and Common Stock Purchase
Agreement, attached as Exhibit A. You must submit this form, together with full payment, to
the Company. Your exercise will be effective when it is received by the Company. If
someone else wants to exercise your Option after your death, that person must prove to the
Company’s satisfaction that he or she is entitled to do so.

SECTION 8. PAYMENT FORMS.

When you exercise your Option, you must include payment of the Exercise Price for the Shares
you are purchasing in one of the payment forms indicated in the cover sheet. When the
Company’s Shares are publicly traded, payment may be made by a so-called “cashless
exercise.” In a cashless exercise, you can pay the Exercise Price in full or in part by
directing a broker to sell your Option Shares and to deliver all or part of the sale
proceeds to the Company in payment of the Exercise Price and any withholding taxes and to
deliver the balance to you. The Company will provide the forms necessary to make a cashless
exercise.

SECTION 9. WITHHOLDING.

If your Option is an NSO you will not be allowed to exercise this Option unless you make
acceptable arrangements to pay any withholding or other taxes that may be due as a result of
the Option exercise or the sale of Shares acquired upon exercise of this Option.

SECTION 10. RIGHT OF FIRST REFUSAL.

     10.1 In the event that you propose to sell, pledge or otherwise transfer to a third
party any Shares acquired under this Agreement, or any interest in such Shares, the Company shall
have the “Right of First Refusal” with respect to all (and not less than all) of such Shares. If
you desire to transfer Shares acquired under this Agreement, you must give a written “Transfer
Notice” to the Company describing fully the proposed transfer, including the number of Shares
proposed to be transferred, the proposed transfer price and the name and address of the proposed
transferee. The Transfer Notice shall be signed both by you and by the proposed transferee and
must constitute a binding commitment of both parties to the transfer of the Shares.

     The Company and its assignees shall have the right to purchase all or any portion of the
Shares on the terms described in the Transfer Notice (subject, however, to any change in such terms
permitted in the next paragraph) by delivery of a Notice of Exercise of the Right of First

-2-

 

Refusal within 30 days after the date when the Transfer Notice was received by the Company.
The Company’s rights under this Subsection shall be freely assignable, in whole or in part.

     If the Company or its assignees fail to exercise its Right of First Refusal within 30 days
after the date when it received the Transfer Notice, you may, not later than 60 days following
receipt of the Transfer Notice by the Company, conclude a transfer of the Shares subject to the
Transfer Notice on the terms and conditions described in the Transfer Notice. Any proposed
transfer on terms and conditions different from those described in the Transfer Notice, as well as
any subsequent proposed transfer by you, shall again be subject to the Right of First Refusal and
shall require compliance with the procedure described in the paragraph above. If the Company
exercises its Right of First Refusal, you and the Company (or its assignees) shall consummate the
sale of the Shares on the terms set forth in the Transfer Notice.

     The Company’s Right of First Refusal shall inure to the benefit of its successors and assigns
and shall be binding upon any transferee of the Shares. The Company’s Right of First Refusal shall
terminate upon the consummation of the initial public offering of the Company’s Common Stock.

SECTION 11. RESALE RESTRICTIONS/MARKET STAND-OFF.

In connection with any underwritten public offering by the Company of its equity securities
pursuant to an effective registration statement filed under the Securities Act, including
the Company’s initial public offering, you shall not, directly or indirectly, engage in any
transaction prohibited by the underwriter, nor shall you sell, make any short sale of,
contract to sell, transfer the economic risk of ownership in, loan, hypothecate, pledge,
grant any option for the purchase of, or otherwise dispose or transfer for value or agree to
engage in any of the foregoing transactions with respect to any Common Stock without the
prior written consent of the Company or its underwriters, for such period of time after the
effective date of such registration statement as may be requested by the Company or such
underwriters. Such period of time shall not exceed one hundred eighty (180) days and may be
required by the underwriter as a market condition of the offering. By signing this
Agreement you agree to execute and deliver such other agreements as may be reasonably
requested by the Company or the underwriter which are consistent with the foregoing or which
are necessary to give further effect thereto. To enforce the provisions of this Section,
the Company may impose stop-transfer instructions with respect to the Common Stock until the
end of the applicable stand-off period.

SECTION 12. TRANSFER OF OPTION.

Prior to your death, only you may exercise this Option. You cannot transfer or assign this
Option. For instance, you may not sell this Option or use it as security for a loan. If
you attempt to do any of these things, this Option will immediately become invalid. You
may, however, dispose of this Option in your will. Regardless of any marital property
settlement agreement, the Company is not obligated to honor a Notice of Exercise from your
spouse or former spouse, nor is the Company obligated to recognize such individual’s
interest in your Option in any other way.

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SECTION 13. RETENTION RIGHTS.

This Agreement does not give you the right to be retained by the Company in any capacity.
The Company reserves the right to terminate your Service at any time and for any reason.

SECTION 14. STOCKHOLDER RIGHTS.

Neither you nor your estate or heirs have any rights as a stockholder of the Company until a
certificate for the Shares acquired upon exercise of this Option has been issued. No
adjustments are made for dividends or other rights if the applicable record date occurs
before your stock certificate is issued, except as described in the Plan.

SECTION 15. ADJUSTMENTS.

In the event of a stock split, a stock dividend or a similar change in the Company’s Stock,
the number of Shares covered by this Option and the Exercise Price per share may be adjusted
pursuant to the Plan. Your Option shall be subject to the terms of the agreement of merger,
liquidation or reorganization in the event the Company is subject to such corporate
activity.

SECTION 16. LEGENDS.

All certificates representing the Shares issued upon exercise of this Option shall, where
applicable, have endorsed thereon the following legends:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY
BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF
FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL AND STATE
SECURITIES LAWS IS NOT REQUIRED.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, ENCUMBERED OR
IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT
BETWEEN THE COMPANY AND THE INITIAL HOLDER HEREOF. SUCH AGREEMENT PROVIDES FOR CERTAIN
TRANSFER RESTRICTIONS, INCLUDING RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE
SECURITIES IN FAVOR OF THE COMPANY. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST
FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.

If the Option is an ISO, then the following legend should be included:

THE SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED UPON EXERCISE OF AN INCENTIVE STOCK
OPTION, AND THE COMPANY MUST BE NOTIFIED IF THE SHARES SHALL BE TRANSFERRED BEFORE THE LATER
OF THE TWO-YEAR ANNIVERSARY OF THE DATE OF GRANT OF THE OPTION OR THE ONE-YEAR ANNIVERSARY
OF THE DATE ON WHICH THE OPTION WAS EXERCISED. THE REGISTERED HOLDER MAY RECOGNIZE ORDINARY
INCOME IF THE SHARES ARE TRANSFERRED BEFORE SUCH DATE.

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SECTION 17. APPLICABLE LAW AND TAXES DISCLAIMER.

This Agreement will be interpreted and enforced under the laws of the State of California
(without regard to their choice of law provisions). You agree that you are responsible for
consulting your own tax advisor as to the tax consequences associated with your Option. The
tax rules governing options are complex, change frequently and depend on the individual
taxpayer’s situation. Although the Company will make available to you general tax
information about stock options, you agree that the Company shall not be held liable or
responsible for making such information available to you and any tax or financial
consequences that you may incur in connection with your Option.

SECTION 18. THE PLAN AND OTHER AGREEMENTS.

The text of the Plan is incorporated in this Agreement by reference. Certain capitalized
terms used in this Agreement are defined in the Plan. This Agreement, including its
attachments, and the Plan constitute the entire understanding between you and the Company
regarding this Option. Any prior agreements, commitments or negotiations concerning this
Option are superseded.

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EXHIBIT A

Genomic Health, Inc. 2001 Stock Incentive Plan

Notice of Exercise and Common Stock Purchase Agreement

THIS AGREEMENT is dated as of _________, ______, between Genomic Health, Inc. (the
“Company”), and     (“Purchaser”).

W I T N E S S E T H:

WHEREAS, the Company and Purchaser are parties to a stock option agreement dated as of
_________, ______(the “Option Agreement”) under which the Purchaser has the right to
purchase up to ______ shares of the Company’s common stock (the “Option Shares”); and

WHEREAS, the Option is exercisable with respect to certain of the Option Shares as of the
date hereof; and

WHEREAS, pursuant to the Option Agreement, Purchaser desires to purchase shares of the
Company as herein described, on the terms and conditions set forth in this Agreement, the
Option Agreement and the Genomic Health, Inc. 2001 Stock Incentive Plan (the “Plan”).
Certain capitalized terms used in this Agreement are defined in the Plan.

NOW, THEREFORE, it is agreed between the parties as follows:

PURCHASE OF SHARES.

     18.1 Pursuant to the terms of the Option Agreement, Purchaser hereby agrees to
purchase from the Company and the Company agrees to sell and issue to Purchaser _________shares of
the Company’s common stock (the “Common Stock”) for the Exercise Price per share specified in the
Option Agreement payable by personal check, cashier’s check, money order or any other form
specified on the cover sheet of the Option Agreement. Payment shall be delivered at the Closing,
as such term is defined below.

     The closing under (the “Closing”) this Agreement will occur at the offices of the Company as
of the date hereof, or such other time and place as may be designated by the Company (the “Closing
Date”).

SECTION 19. THE COMPANY’S RIGHT OF FIRST REFUSAL.

Before any shares of Common Stock registered in the name of Purchaser may be sold or
transferred, such shares shall first be offered to the Company as follows:

     19.1 Purchaser shall promptly deliver a notice (“Notice”) to the Company stating (i)
Purchaser’s bona fide intention to sell or transfer such shares, (ii) the number of such shares to
be sold or transferred, and the basic terms and conditions of such sale or transfer, (iii) the

A-1

 

price for which Purchaser proposes to sell or transfer such shares, (iv) the name of the
proposed purchaser or transferee, and (v) proof satisfactory to the Company that the proposed sale
or transfer will not violate any applicable federal or state securities laws. The Notice shall be
signed by both Purchaser and the proposed purchaser or transferee and must constitute a binding
commitment subject to the Company’s right of first offer as set forth herein.

     Within 30 days after receipt of the Notice, the Company may elect to purchase all or none of
the shares to which the Notice refers, at the price per share specified in the Notice. If the
Company elects not to purchase all such shares, the Company may assign its right to purchase all
such shares. The assignees may elect within 30 days after receipt by the Company of the Notice to
purchase all or none of the shares to which the Notice refers, at the price per share specified in
the Notice. An election to purchase shall be made by written notice to Purchaser. Payment for
shares purchased pursuant to this Section 2 shall be made within 30 days after receipt of the
Notice by the Company and, at the option of the Company, may be made by cancellation of all or a
portion of outstanding indebtedness, if any, or in cash or both.

     19.2 If all of the shares to which the Notice refers are not elected to be
purchased, as provided in subparagraph 2(b), Purchaser may sell all of the shares to any person
named in the Notice at the price specified in the Notice, provided that such sale or transfer is
consummated within three months of the date of said Notice to the Company, and provided, further,
that any such sale is made in compliance with applicable federal and state securities laws and not
in violation of any other contractual restrictions to which Purchaser is bound. The third-party
purchaser shall acquire the shares of stock free and clear of the Company’s right of first offer.

     19.3 Any proposed transfer on terms and conditions different from those set forth in
the Notice, as well as any subsequent proposed transfer shall again be subject to the Company’s
right of first offer and shall require compliance with the procedures described in this Section 2.

     19.4 Purchaser agrees to cooperate affirmatively with the Company, to the extent
reasonably requested by the Company, to enforce rights and obligations pursuant to this Agreement.

     19.5 Notwithstanding the above, neither the Company nor any assignee of the Company
under this Section 2 shall have any right under this Section 2 at any time subsequent to the
closing of a public offering of the common stock of the Company pursuant to a registration
statement declared effective under the Securities Act of 1933, as amended (the “Securities Act”).

     19.6 This Section 2 shall not apply to a transfer by will or intestate succession,
provided that the transferee shall execute a copy of the attached Exhibit B and file the
same with the Secretary of the Company.

SECTION 20. PURCHASER’S RIGHTS AFTER EXERCISE OF RIGHT OF FIRST REFUSAL.

If the Company makes available, at the time and place and in the amount and form provided in
this Agreement, the consideration for the Common Stock to be repurchased in accordance with
the provisions of Section 2 of this Agreement, then from and after

A-2

 

such time the person from whom such shares are to be repurchased shall no longer have any
rights as a holder of such shares (other than the right to receive payment of such
consideration in accordance with this Agreement). Such shares shall be deemed to have been
repurchased in accordance with the applicable provisions hereof, whether or not the
certificate(s) therefor have been delivered as required by this Agreement.

SECTION 21. TRANSFER BY PURCHASER TO CERTAIN TRUSTS.

Purchaser shall have the right to transfer all or any portion of Purchaser’s interest in the
shares issued under this Agreement which have been delivered to Purchaser to a trust
established by Purchaser for the benefit of Purchaser, Purchaser’s spouse or Purchaser’s
children, without being subject to the provisions of Section 2 hereof, provided that the
trustee on behalf of the trust shall agree in writing to be bound by the terms and
conditions of this Agreement. The transferee shall execute a copy of Exhibit B and
file the same with the Secretary of the Company.

SECTION 22. LEGEND OF SHARES.

All certificates representing the Common Stock purchased under this Agreement shall, where
applicable, have endorsed thereon the following legends and any other legends required by
applicable securities laws:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR
QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE,
AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT
PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL AND
STATE SECURITIES LAWS IS NOT REQUIRED.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, ENCUMBERED
OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT
BETWEEN THE COMPANY AND THE INITIAL HOLDER HEREOF. SUCH AGREEMENT PROVIDES FOR CERTAIN
TRANSFER RESTRICTIONS, INCLUDING RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE
SECURITIES. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH
AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.

For an Incentive Stock Option:

THE SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED UPON EXERCISE OF AN INCENTIVE
STOCK OPTION, AND THE COMPANY MUST BE NOTIFIED IF THE SHARES SHALL BE TRANSFERRED BEFORE
THE LATER OF THE TWO-YEAR ANNIVERSARY OF THE DATE OF GRANT OF THE OPTION OR THE
ONE-YEAR ANNIVERSARY OF THE DATE ON WHICH THE OPTION WAS EXERCISED. THE REGISTERED
HOLDER MAY RECOGNIZE ORDINARY INCOME IF THE SHARES ARE TRANSFERRED BEFORE SUCH DATE.

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SECTION 23. PURCHASER’S INVESTMENT REPRESENTATIONS.

     23.1 This Agreement is made with Purchaser in reliance upon Purchaser’s
representation to the Company, which by Purchaser’s acceptance hereof Purchaser confirms, that the
Common Stock which Purchaser will receive will be acquired with Purchaser’s own funds for
investment for an indefinite period for Purchaser’s own account, not as a nominee or agent, and not
with a view to the sale or distribution of any part thereof, and that Purchaser has no present
intention of selling, granting participation in, or otherwise distributing the same, but subject,
nevertheless, to any requirement of law that the disposition of Purchaser’s property shall at all
times be within Purchaser’s control. By executing this Agreement, Purchaser further represents
that Purchaser does not have any contract, understanding or agreement with any person to sell,
transfer, or grant participation, to such person or to any third person, with respect to any of the
Common Stock.

     23.2 Purchaser understands that the Common Stock will not be registered or qualified
under federal or state securities laws on the ground that the sale provided for in this Agreement
is exempt from registration or qualification under federal or state securities laws and that the
Company’s reliance on such exemption is predicated on Purchaser’s representations set forth herein.

     Purchaser agrees that in no event will Purchaser make a disposition of any of the Common Stock
(including a disposition under Section 4 of this Agreement), unless and until (i) Purchaser shall
have notified the Company of the proposed disposition and shall have furnished the Company with a
statement of the circumstances surrounding the proposed disposition and (ii) Purchaser shall have
furnished the Company with an opinion of counsel satisfactory to the Company to the effect that (A)
such disposition will not require registration or qualification of such Common Stock under federal
or state securities laws or (B) appropriate action necessary for compliance with the federal or
state securities laws has been taken or (iii) the Company shall have waived, expressly and in
writing, its rights under clauses (i) and (ii) of this section.

     With respect to a transaction occurring prior to such date as the Plan and Common Stock
thereunder are covered by a valid Form S-8 or similar federal registration statement, this
subsection shall apply unless the transaction is covered by the exemption in California
Corporations Code § 25102(o) or a similar broad based exemption. In connection with the investment
representations made herein, Purchaser represents that Purchaser is able to fend for himself or
herself in the transactions contemplated by this Agreement, has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and risks of Purchaser’s
investment, has the ability to bear the economic risks of Purchaser’s investment and has been
furnished with and has had access to such information as would be made available in the form of a
registration statement together with such additional information as is necessary to verify the
accuracy of the information supplied and to have all questions answered by the Company.

     Purchaser understands that if the Company does not register with the Securities and Exchange
Commission pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) or if a registration statement covering the Common Stock (or a

A-4

 

filing pursuant to the exemption from registration under Regulation A of the Securities Act of
1933) under the Securities Act of 1933 is not in effect when Purchaser desires to sell the Common
Stock, Purchaser may be required to hold the Common Stock for an indeterminate period. Purchaser
also acknowledges that Purchaser understands that any sale of the Common Stock which might be made
by Purchaser in reliance upon Rule 144 under the Securities Act of 1933 may be made only in limited
amounts in accordance with the terms and conditions of that Rule.

SECTION 24. NO DUTY TO TRANSFER IN VIOLATION UNDER THIS AGREEMENT.

The Company shall not be required (a) to transfer on its books any shares of Common Stock of
the Company which shall have been sold or transferred in violation of any of the provisions
set forth in this Agreement or (b) to treat as owner of such shares or to accord the right
to vote as such owner or to pay dividends to any transferee to whom such shares shall have
been so transferred.

SECTION 25. RIGHTS OF PURCHASER.

Purchaser shall, during the term of this Agreement, exercise all rights and privileges of a
stockholder of the Company with respect to the Common Stock.

SECTION 26. RESALE RESTRICTIONS/MARKET STAND-OFF.

Purchaser hereby agrees that in connection with any underwritten public offering by the
Company of its equity securities pursuant to an effective registration statement filed under
the Securities Act, including the Company’s initial public offering, to the extent requested
by the Company and an underwriter of common stock or other securities of the Company,
purchaser shall not, directly or indirectly, engage in any transaction prohibited by the
underwriter, or sell, make any short sale of, contract to sell, transfer the economic risk
of ownership in, loan, hypothecate, pledge, grant any option for the purchase of, or
otherwise dispose or transfer for value or agree to engage in any of the foregoing
transactions with respect to any Common Stock without the prior written consent of the
Company or its underwriters, for such period of time after the effective date of such
registration statement as may be requested by the Company or such underwriters. Such period
of time shall not exceed one hundred eighty (180) days and may be required by the
underwriter as a market condition of the offering. Purchaser hereby agrees to execute and
deliver such other agreements as may be reasonably requested by the Company or the
underwriter which are consistent with the foregoing or which are necessary to give further
effect thereto. To enforce the provisions of this Section, the Company may impose
stop-transfer instructions with respect to the Common Stock until the end of the applicable
stand-off period.

SECTION 27. OTHER NECESSARY ACTIONS.

The parties agree to execute such further instruments and to take such further action as may
reasonably be necessary to carry out the intent of this Agreement.

A-5

 

SECTION 28. NOTICE.

Any notice required or permitted under this Agreement shall be given in writing and shall be
deemed effectively given upon the earliest of personal delivery, receipt or the third full
day following deposit in the United States Post Office with postage and fees prepaid,
addressed to the other party hereto at the address last known or at such other address as
such party may designate by 10 days’ advance written notice to the other party hereto.

SECTION 29. SUCCESSORS AND ASSIGNS.

This Agreement shall inure to the benefit of the successors and assigns of the Company and,
subject to the restrictions on transfer herein set forth, be binding upon Purchaser and
Purchaser’s heirs, executors, administrators, successors and assigns. The failure of the
Company in any instance to exercise the rights of first refusal described herein shall not
constitute a waiver of any other right of first refusal that may subsequently arise under
the provisions of this Agreement. No waiver of any breach or condition of this Agreement
shall be deemed to be a waiver of any other or subsequent breach or condition, whether of a
like or different nature.

SECTION 30. APPLICABLE LAW.

This Agreement shall be governed by, and construed in accordance with, the laws of the State
of California, as such laws are applied to contracts entered into and performed in such
state.

SECTION 31. NO STATE QUALIFICATION.

THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED
WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF SUCH
SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH
QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE QUALIFICATION BY
SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL
PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED,
UNLESS THE SALE IS SO EXEMPT.

SECTION 32. NO ORAL MODIFICATION.

No modification of this Agreement shall be valid unless made in writing and signed by the
parties hereto.

A-6

 

SECTION 33. ENTIRE AGREEMENT.

This Agreement and the Option Agreement constitute the entire complete and final agreement
between the parties hereto with regard to the subject matter hereof.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 	 	 
	GENOMIC HEALTH, INC.

	 	 	 	(PURCHASER)
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	 	 	Signature
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Its
	 	 	 	 	 	 
	

	 	 	 	 	 	 

A-7

 

EXHIBIT B

Acknowledgment of and Agreement to be Bound

By the Notice of Exercise and Common Stock Purchase

Agreement of Genomic Health

The undersigned, as transferee of shares of Genomic Health, Inc., hereby acknowledges that
he or she has read and reviewed the terms of the Notice of Exercise and Common Stock
Purchase Agreement of Genomic Health, Inc. and hereby agrees to be bound by the terms and
conditions thereof, as if the undersigned had executed said Agreement as an original party
thereto.

Dated:                                         ,                     .

	 	 	 	 	 
	 	 	 
	

	 	 	 	Signature of Transferee
	 
	 	 	 	 
	 	 	 
	

	 	 	 	Printed Name of Transferee

B-1

 

No Early Exercise

EXHIBIT C

FEDERAL TAX INFORMATION

(Current as of June 2000)

The following memorandum briefly summarizes current federal income tax law. The discussion
is intended to be used solely for general information purposes and does not make specific
representations to any participant. A taxpayer’s particular situation may be such that some
variation of the basic rules is applicable to him or her. In addition, the federal income
tax laws and regulations are revised frequently and may change again in the future. Each
participant is urged to consult a tax adviser, both with respect to federal income tax
consequences as well as any foreign, state or local tax consequences, before exercising any
option or before disposing of any shares of stock acquired under the Plan.

Initial Grant of Options

The grant of an option, whether a nonqualified or nonstatutory stock option (“NSO”) or an
incentive stock option (“ISO”), is not a taxable event for the optionee, and the Company
obtains no deduction for the grant of the option.

Nonqualified or Nonstatutory Stock Options

The exercise of an NSO is a taxable event to the optionee. The amount by which the fair
market value of the shares on the date of exercise exceeds the exercise price will be taxed
to the optionee as ordinary income. The Company will be entitled to a deduction in the same
amount, provided it makes all required withholdings on the difference between the fair
market value and the exercise price, as though this amount had been paid as compensation.
In general, the optionee’s tax basis in the shares acquired by exercising an NSO is equal to
the fair market value of such shares on the date of exercise. Upon a subsequent sale of any
such shares in a taxable transaction, the optionee will realize capital gain or loss
(long-term or short-term, depending on whether the shares were held for the required holding
period before the sale) in an amount equal to the difference between his or her basis in the
shares and the sale price.

The capital gains holding periods are complex. If shares are held for at least one year,
the maximum tax rate on the gain is generally 20%. Furthermore, if an option is granted
after December 31, 2000, and the underlying stock is then held for at least five years after
exercise, the maximum capital gain rate is 18%. Because the rules are complex and can vary
in individual circumstances, each participant should consider consulting his or her own tax
advisor.

If an optionee exercises an NSO and pays the exercise price with previously acquired shares
of stock, special rules apply. The transaction is treated as a tax-free exchange of the old
shares for the same number of new shares, except as described below with respect to shares
acquired pursuant to ISOs. The optionee’s basis in the new shares is the same

C-1

 

as his or her basis in the old shares, and the capital gain holding period runs without
interruption from the date when the old shares were acquired. The value of any new shares
received by the optionee in excess of the number of old shares surrendered plus any cash the
optionee pays for the new shares will be taxed as ordinary income. The optionee’s basis in
the additional shares is equal to the fair market value of such shares on the date the
shares were transferred, and the capital gain holding period commences on the same date.
The effect of these rules is to defer recognition of any gain in the old shares when those
shares are used to buy new shares. Stated differently, these rules allow an optionee to
finance the exercise of an NSO by using shares of stock that he or she already owns, without
paying current tax on any unrealized appreciation in those old shares.

Incentive Stock Options

The holder of an ISO will not be subject to federal income tax upon the exercise of the ISO,
and the Company will not be entitled to a tax deduction by reason of such exercise, provided
that the holder is employed by the Company on the exercise date (or the holder’s employment
terminated within the three months preceding the exercise date). Exceptions to this
exercise timing requirement apply in the event the optionee dies or becomes disabled. A
subsequent sale of the shares received upon the exercise of an ISO will result in the
realization of long-term capital gain or loss in the amount of the difference between the
amount realized on the sale and the exercise price for such shares, provided that the sale
occurs more than one year after the exercise of the ISO and more than two years
after the grant of the ISO. In general, if a sale or disposition of the shares occurs prior
to satisfaction of the foregoing holding periods (referred to as a “disqualifying
disposition”), the optionee will recognize ordinary income. In this event, the Company will
be entitled to a corresponding deduction equal to the lesser of (i) the excess of the fair
market value of the shares on the date of transfer over the exercise price, or (ii) the
excess of the amount realized on the disposition over the exercise price for such shares.

Favorable tax treatment is accorded to an optionee only to the extent that the value of the
shares (determined at the time of grant) covered by an ISO first exercisable in any single
calendar year does not exceed $100,000. If ISOs for shares whose aggregate value exceeds
$100,000 become exercisable in the same calendar year, the excess will be treated as NSOs.

A special Rule applies if an optionee pays all or part of the exercise price of an ISO by
surrendering shares of stock that he or she previously acquired by exercising any other ISO.
If the optionee has not held the old shares for the full duration of the applicable holding
periods, then the surrender of such shares to fund the exercise of the new ISO will be
treated as a disqualifying disposition of the old shares. As described above, the result of
a disqualifying disposition is the loss of favorable tax treatment with respect to the
acquisition of the old shares pursuant to the previously exercised ISO.

C-2

 

Where the applicable holding period requirements have been met, the use of previously
acquired shares of stock to pay all or a portion of the exercise price of an ISO may offer
significant tax advantages. In particular, a deferral of the recognition of any appreciation
in the surrendered shares is available in the same manner as discussed above with respect to
NSOs.

Alternative Minimum Tax

Alternative minimum tax is paid when such tax exceeds a taxpayer’s regular federal income
tax. Alternative minimum tax is calculated based on alternative minimum taxable income,
which is taxable income for federal income tax purposes, modified by certain adjustments and
increased by tax preference items.

The “spread” under an ISO—that is, the difference between (a) the fair market value of the
shares of stock at exercise and (b) the exercise price—is classified as alternative minimum
taxable income for the year of exercise. Alternative minimum taxable income may be subject
to the alternative minimum tax. However, a disqualifying disposition of the shares of stock
subject to the ISO during the same year in which the ISO was exercised will generally negate
the alternative minimum taxable income generated upon exercise of the ISO.

In general, when a taxpayer sells stock acquired through the exercise of an ISO, only the
difference between the fair market value of the shares on the date of exercise and the date
of sale is used in computing any alternative minimum tax for the year of the sale. The
portion of a taxpayer’s alternative minimum tax attributable to certain items of tax
preference (including the spread upon the exercise of an ISO) can be credited against the
taxpayer’s regular liability in later years to the extent that liability exceeds the
alternative minimum tax.

Withholding Taxes

Exercise of an NSO produces taxable income which is subject to withholding. The Company
will not deliver shares to the optionee unless the optionee has agreed to satisfactory
arrangements for meeting all applicable federal, state and local withholding tax
requirements.

Early Exercise

       If an optionee is permitted to exercise an option before the optionee’s rights in the shares
subject to the option are vested, the tax aspects of such an “early exercise” will be as follows:

Incentive Stock Options

When an ISO is exercised, the spread is a “preference” item in the year of exercise, which
is taken into account in computing an optionee’s alternative minimum tax. One technique
which might enable an optionee to avoid the inclusion of the spread in the

C-3

 

alternative minimum tax calculation is to exercise the option at grant, pay the exercise
price and make an election under Section 83(b) of the Code within thirty (30) days after the
date of exercise. The exercise of the option also begins the various holding requirements
for long-term capital gain treatment and the one-year holding requirement that
applies after the exercise of an ISO.

Nonstatutory Stock Options

If the option is not an ISO but instead is an NSO, exercise prior to vesting will accomplish
two things: (1) it will start the capital gains holding period running, and (2) it will
prevent the optionee from being taxed (at ordinary income tax rates) upon vesting, if, at
that time, the fair market value of the stock has increased from the date of grant. Of
course, when the shares are sold, the gain will be taxed according to how long the shares
have been held.

Payment for Shares

Whether the option is an ISO or an NSO, to exercise the option, the purchase price must be
paid. If service with the Company terminates before the shares are vested, the Company may
repurchase the shares at the original purchase price.

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Exhibit 10.4.1

SUBLEASE AGREEMENT

     THIS SUBLEASE AGREEMENT (“Sublease Agreement’), effective June 1, 2001 is entered into
by and between Corixa Corporation and its affiliates, a Delaware corporation (“Tenant”),
having its principal place of business at 1124 Columbia Street, Suite 200, Seattle, Washington
98104, and Genomic Health, Inc., a Delaware corporation having its principal place of business
after the Commencement Date at the Sublease Premises (“Subtenant”).

RECITALS

     A. WHEREAS, The predecessor in interest of Tenant and the predecessor in interest of
Metropolitan Life Insurance Company, a New York corporation (“Landlord”), have entered into
that certain lease dated January 3, 1992, as amended by (i) that certain First Amendment dated
January 5, 1993, (ii) that certain Second Amendment dated January 10, 1995, (iii) that certain
Third Amendment dated March 24, 1995, (iv) that certain holdover letter agreement dated February
12, 1999, (v) that certain Fifth Amendment dated February 26, 1999 and (vi) that certain Sixth
Amendment dated September 29, 2000 (collectively referred to herein as the “Lease”),
whereby Landlord leases to Tenant that certain premises in Building 11 of Phase II, with the
current street address of 301 Penobscot Drive, Redwood City, CA, (“Premises”).

     B. WHEREAS, Tenant has the right to grant subleases pursuant to Section 15 of the Lease.

     C. WHEREAS, Subtenant desires to sublease from Tenant and Tenant desires to sublease to
Subtenant, certain of the Premises on the terms and conditions contained herein.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Tenant and Subtenant agree as follows:

AGREEMENT

     1. Sublease Premises. Tenant hereby subleases to Subtenant and Subtenant subleases
from Tenant on the terms and conditions stated in this Sublease Agreement that portion of the
Premises and all fixtures and improvements thereto, depicted on Schedule 1 attached hereto (the
“Sublease Premises”) and pursuant to Section 15 of the Lease. Subtenant acknowledges and
agrees that the Sublease Premises consists of 19,872 rentable square feet (“RSF”) of space
as of the commencement of this Sublease Agreement.

     2. Rent.

          2.1 Subtenant agrees to pay rent to Tenant for the Sublease Premises in the following amounts
(“Rent”):

	 	 	 	 	 
	Period	 	Amount Per Month	 
	 
	Rent Commencement Date – February 28, 2002
	 	$109,296.00 per month
	March 1, 2002 – February 28, 2003
	 	$113,667.84 per month
	March 1, 2003 – February 29, 2004
	 	$118,238.40 per month
	March 1, 2004 – May 30, 2004
	 	$123,007.68 per month

 

Notwithstanding anything to the contrary set forth in the Lease, the Rent set forth in this Section
2.1 shall be the total monthly amount due to Tenant for rental of the Sublease Premises.

     2.2 All Rent payments shall be (a) payable on the first day of each month during the term of
this Sublease Agreement, (b) payable in United States dollars, and (c) sent to Tenant at the
address stated above or to such other persons or at such other places as Tenant may designate in
writing.

     3. Security Deposit. Upon full execution of this Sublease Agreement, Subtenant shall
pay to Tenant the first month’s Rent together with an additional check for the same amount as a
security deposit (the “Security Deposit”). Within thirty (30) days following the
expiration of the term of this Sublease Agreement, Tenant shall return to Subtenant the Security
Deposit, net of (a) any Tenant expenses required to return the Sublease Premises to its “as-is”
condition at the time of Subtenant’s initial occupation of the Sublease Premises, reasonable wear
and tear excepted, and (b) any other outstanding payments owed by Subtenant to Tenant hereunder.

     4. Term.

          4.1 The term of this Sublease Agreement shall commence on May 15, 2001 “Commencement
Date” and end on May 30, 2004 (the “Term”), unless sooner terminated pursuant to any
provision hereof and Subtenant’s obligations to pay any Rent hereunder shall commence on June 15,
2001 the (“Rent Commencement Date”). Notwithstanding the foregoing, this Sublease
Agreement shall have no force and effect prior to the written consent to this Sublease Agreement.

          4.2 Option to Extend.

               (a) Tenant hereby grants Subtenant a single option to extend the Term through February 28,
2006 (the “Option Term”) as to the Sublease Premises as it may then exist, upon and subject
to the terms and conditions of this Section 4.2 (the “Option to Extend”), and provided that
at the time of exercise of such right there has been no material adverse change in Subtenant’s
financial position from such position as of the date of execution of the Sublease Agreement, as
certified by Subtenant’s independent certified public accountants and by Subtenant’s certified
financial statements, copies of which shall be delivered to Tenant with Subtenant’s written notice
exercising its right hereunder.

               (b) Subtenant’s election (the “Election Notice”) to exercise the Option to Extend must
be given to Tenant in writing no later than six (6) months before the expiration of the Term. If
Subtenant either fails or elects not to exercise its Option to Extend by not giving its Election
Notice, then the Option to Extend shall be null and void.

               (c) The Option Term shall commence immediately after the expiration of the Term. Subtenant’s
leasing of the Premises during the Option Term shall be upon and subject to the same terms and
conditions contained in the Sublease Agreement except there shall be no further option or right to
extend the Term of the Sublease Agreement and the Rent shall be as follows:

 

	 	 	 	 	 
	Period	 	Amount Per Month	 
	 
	June 1, 2004 – February 28, 2005
	 	$123,007.68 per month
	March 1, 2005 – February 28, 2006
	 	$127,776.96 per month

If Subtenant timely and properly exercises the Option to Extend, references in the Sublease
Agreement to the Term shall be deemed to mean the then-current Term as extended by the Option Term
unless the context clearly requires otherwise.

               (d) This Option to Extend is personal to Genomic Health, Inc. and may not be used by, and
shall not be transferable or assignable (voluntarily or involuntarily) to any person or entity.

               (e) Upon the occurrence of any of the following events, Tenant shall have the option,
exercisable at any time prior to commencement of the Option Term, to terminate all of the
provisions of this Section with respect to the Option to Extend, with the effect of canceling and
voiding any prior or subsequent exercise so this Option to Extend is of no force or effect:

               (i) Subtenant’s failure to timely exercise the Option to Extend in accordance with the
provisions of this Section.

               (ii) The existence at the time Subtenant exercises the Option to Extend or at the
commencement of the Option Term of any default on the part of Subtenant under the Sublease
Agreement.

               (iii) Subtenant’s third default under the Sublease Agreement prior to the commencement
of the option Term, notwithstanding that all such defaults may subsequently be cured. In
the event of Tenant’s termination of the Option to Extend pursuant to this subsection
subsequent to Subtenant’s exercise of the Option to Extend, Subtenant shall reimburse Tenant
for all reasonable costs and expenses Tenant incurs in connection with Subtenant’s exercise
of the Option to Extend.

               (f) Without limiting the generality of any provision of the Sublease Agreement, time shall be
of the essence with respect to all of the provisions of this Section.

     5. Use.

          5.1 The Sublease Premises shall be used and occupied as offices and laboratory space for
Subtenant’s business, which is defined as light manufacturing, laboratory research, development and
diagnostics, general administration and storage.

          5.2 Subtenant’s occupation of the Sublease Premises and all of the terms and conditions of
this Sublease Agreement shall be subject to all terms and conditions of the Lease.

     6. Parking. Subtenant shall have the right to use, on a non-exclusive basis, the
parking spaces attributed to the Premises, prorated not to exceed eighty percent (80%) of such
parking spaces, provided in the event that Subtenant and Tenant mutually agree in writing to

 

increase the square footage of the Sublease Premises, Subtenant’s number of allotted parking
spaces shall be increased prorata with such increase in the Sublease Premises.

     7. Services.

          7.1 Subtenant shall be responsible for obtaining general building HVAC, electrical, janitorial
and all other services. Payment for all such services shall be made directly by Subtenant to the
service providers.

          7.2 Subtenant will provide, at its own cost of installation, maintenance and subsequent
removal, telephone systems, computer networks and any special modifications to the building
security system. No such modifications may be made without the prior written approval of Tenant,
which approval shall not be unreasonably withheld, conditioned, or delayed however any such
approval shall be subject to all applicable terms and conditions of the Lease.

     8. Signage. Subtenant signage is expressly limited to reasonably sized signage,
affixed to the inside of Subtenant’s entry door or window area.

     9. Condition of and Improvement to Premises.

          9.1 Tenant shall deliver the Sublease Premises clean and free of debris. Tenant warrants that
to Tenant’s knowledge the improvements on the Sublease Premises comply with all applicable
covenants and restrictions of record and applicable building codes, regulations and ordinances
(“Applicable Requirements”) in effect on the Commencement Date and Tenant warrants that the
Subleased Premises is free and clear of all liens and encumbrances attributable to Tenant. Said
warranty does not apply to the use to which Subtenant will put the Sublease Premises or to any
alterations or utility installations made or to be made by Subtenant.

          9.2 Except for the warranties expressly set forth in this Sublease Agreement, Subtenant shall
accept the Sublease Premises “As-Is,” per the floor plan attached as Schedule 1; provided, however,
that Tenant hereby acknowledges and agrees that all existing services and systems, as set forth on
Schedule 2, are in good working condition as of the date of Subtenant’s occupancy and Tenant
warrants that existing plumbing, fire sprinkler systems, lighting, air conditioning and heating
systems are in good operating condition on the Commencement Date. Subtenant acknowledges that, at
Subtenant’s expense, Subtenant has hired any consultants and made such inquiries as Subtenant
deemed desirable prior to Sublease Agreement execution and Subtenant has determined that the
Sublease Premises is suitable for its intended use. Tenant acknowledges and agrees that all lab
benches and vented fume hoods shall remain in place as part of the Subleased Premises.

          9.3 If Subtenant, at any time during the term of the Sublease, desires to make any alterations
or improvements to the Sublease Premises, or any part or parts thereof, the same shall require
Tenant’s prior written approval to the extent Tenant is required to seek approval of the Landlord
pursuant to the Lease and shall be constructed by a licensed contractor without cost or expense to
Tenant, in accordance with the requirements of all laws, ordinances, codes, orders, rules and
regulations of all governmental authorities having jurisdiction over the Sublease Premises, or as
otherwise required by the Landlord pursuant to the Lease. Any additions or improvements to the
Sublease Premises, except Subtenant’s removable trade fixtures (as defined

 

in the Lease), furniture, shelving and equipment, shall become part of the Sublease Premises
upon termination of the Sublease Agreement and be surrendered to Tenant. Subtenant shall have no
obligation when the Sublease Agreement expires to restore the Sublease Premises to its original
condition as existing on the date of initial occupancy by Subtenant, unless Tenant or Subtenant are
so required by the Landlord under the Lease.

          9.4 Subtenant shall be obligated to maintain the Sublease Premises and all equipment and
utility services in good condition and repair, reasonable wear and tear excepted, and to surrender
the same to Tenant in such condition and broom-clean upon the expiration or termination of this
Sublease Agreement.

     10. Hazardous Material Indemnification.

          10.1 Subtenant shall indemnify, defend and hold Tenant harmless from and against any and all
claims, judgments, damages, penalties, fines, costs, liabilities, or losses, including but not
limited to attorney’s fees, that arise during or after the Sublease Agreement term from or in
connection with any handling, transportation, storage, treatment, generation, manufacture,
discharge disposal or use of Hazardous Materials (as such term is defined in the Lease) that has
occurred on the Sublease Premises by Subtenant, its employees, agents, contractors, licensees,
invitees, or any other persons or entity during the term of the Sublease Agreement that has not
been in compliance with (i) any law regulating the Hazardous Materials and (ii) the Lease.
Subtenant will provide Tenant and Landlord with the initial listing (attached hereto as Schedule 2)
of quantities, class and inventory of any Hazardous Materials that they will store at the Sublease
Premises (the “Inventory”). Tenant and Landlord will require an updated version of this
Inventory every six (6) months during the term of this Sublease Agreement to assure compliance with
(i) local state and federal codes and requirements and (ii) the Lease. Within thirty (30) days of
receipt of such updated Inventory, Tenant and Landlord shall provide written notice to Subtenant of
any new items on such updated Inventory to which Tenant or Landlord object to inclusion of such
items on the Inventory. Failure to provide such written notice of objection shall conclusively be
deemed approval thereof. Notwithstanding any other provisions of this Sublease or the Lease,
Tenant and Landlord, by its consent to this Sublease, hereby authorize the storage and use of those
items on the Inventory, as updated, throughout the Term of this Sublease. Subtenant’s obligations
under this provision shall survive the expiration or early termination of the Sublease Agreement.

          10.2 Tenant shall indemnify, defend and hold Subtenant harmless from and against any and all
claims, judgments, damages, penalties, fines, costs, liabilities, or losses, including but not
limited to attorney’s fees, that arise during or after the Sublease Agreement term from or in
connection with any handling, transportation, storage, treatment, generation, manufacture,
discharge disposal or use of Hazardous Materials that has occurred on the Sublease Premises by
Tenant, its employees, agents, contractors, licensees, invitees, or any other persons or entity
prior to the Commencement Date.

     11. Maintenance of Lease. Tenant agrees to comply with or perform Tenant’s
obligations under the Lease and to hold Subtenant free and harmless from all liability, judgments,
costs, damages, claims or demands arising out of Tenant’s failure to so comply with or perform
Tenant’s obligations.

 

     12. Attornment of Subtenant to Landlord in Event of Default.

          12.1 Tenant hereby authorizes and directs Subtenant, upon receipt of any written notice from
the Landlord stating that a default exists in the performance of Tenant’s obligations under the
Lease which notice also demands that Subtenant pay to Landlord the Rent due and/or to become due
under this Sublease Agreement, to pay to Landlord the Rent due and to become due under this
Sublease Agreement. Tenant agrees that Subtenant shall have the right to rely upon any such
statement and request from Landlord, and that Subtenant shall pay such rent to Landlord without any
obligation or right to inquire as to whether such default exists and notwithstanding any notice or
claim from Tenant to the contrary, Tenant shall have no right or claim against Subtenant for any
such Rent so paid to Landlord.

          12.2 No material changes or modifications shall be made to this Sublease without the consent
of the Landlord.

     13. Right to Assign or Sublease the Sublease Premises. Subtenant shall be required to
obtain the prior written approval of Tenant for any subletting or assignment of Sublease Premises
or Sublease Agreement, respectively, which approval shall not be unreasonably withheld; provided
that any such approval shall be subject to further approvals as may be required by the Lease.
Tenant further agrees that, should Subtenant locate a potential new subtenant (“Replacement
Subtenant”), which Replacement Subtenant is financially equivalent to or better than Subtenant
and is willing to enter into a new Sublease with Tenant on terms reasonably satisfactory to Tenant
(for which purposes the same terms of this Sublease shall be deemed satisfactory), Tenant shall
enter into such a Sublease with Replacement Subtenant.

     14. Real Estate Leasing Commissions. Tenant and Subtenant acknowledge that Tenant
shall pay the subleasing commission of six percent (6%) of the first month’s Rent due hereunder to
Cornish & Carey Commercial Real Estate upon full execution of this Sublease Agreement.

     15. Termination.

          15.1 This Sublease Agreement shall be terminable by Tenant in the event Subtenant committed an
Event of Default. Subtenant shall have committed an “Event of Default” if:

               (a) Subtenant has not paid the monthly rent so due for a period of thirty (30) days; or

               (b) Subtenant has materially breached an obligation of Subtenant under this Sublease
Agreement, which breach has continued for a period of thirty (30) days after written notice thereof
by Tenant to Subtenant; provided, however, that if the nature of Subtenant’s breach is such that
more than thirty (30) days are reasonably required for its cure, then Subtenant shall not bee
deemed to have committed an Event of Default if Subtenant commences such cure within such thirty
(30) day period and thereafter diligently prosecutes such cure to its completion.;

 

          15.2 This Sublease Agreement may be terminated by Subtenant in the event that Tenant has
failed to provide the Sublease Premises set forth on Schedule 1 for an uncured period of more than
thirty (30) days.

     16. Lease as Governing Document. This Sublease Agreement is subject to all terms and
conditions of the Lease, a copy of which is attached hereto as Schedule 3.

     17. General. This Sublease Agreement, together with all Schedules attached hereto,
represents the entire agreement between the parties with respect to the matters covered herein and
may not be amended, except in a writing duly executed by both parties. This Sublease Agreement
shall be governed by, administered under and construed in accordance with the laws of the state of
Washington without giving effect to its or any other jurisdiction’s principles of conflicts of
laws.

     IN WITNESS WHEREOF, the undersigned parties have caused this Sublease Agreement to be executed
and delivered by the respective, duly authorized representatives thereon as of the date first above
written.

	 	 	 	 	 	 	 	 	 
	TENANT:	 	 	 	SUBTENANT:
	 
	 	 	 	 	 	 	 	 
	CORIXA CORPORATION	 	 	 	GENOMIC HEALTH, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	/s/ Michelle Burris
	 	 	 	By:
	/s/ Randy Scott
	

	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	Michelle Burris
	 	 	 	Name:
	Randy Scott
	 
	 	 	 	 	 	 	 	 
	Title:

	SVP, CFO
	 	 	 	Title:
	 Chairman & C.E.O.

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