Document:

Exhibit 10.13

 

EXACT SCIENCES
CORPORATION

 

2000  EMPLOYEE STOCK PURCHASE
PLAN

 

Article 1
- Purpose.

 

This
2000 Employee Stock Purchase Plan (the “Plan”) is intended to encourage stock
ownership by all eligible employees of EXACT Sciences Corporation  (the “Company”), a Delaware corporation, and its
participating subsidiaries (as defined in Article 17) so that they may
share in the growth of the Company by acquiring or increasing their proprietary
interest in the Company.  The Plan is
designed to encourage eligible employees to remain in the employ of the Company
and its participating subsidiaries.  The
Plan is intended to constitute an “employee stock purchase plan” within the
meaning of Section 423(b) of the Internal Revenue Code of 1986,
as amended (the “Code”).

 

Article 2
- Administration of the Plan.

 

The
Plan may be administered by a committee appointed by the Board of Directors of
the Company (the “Committee”).  The
Committee shall consist of not less than two members of the Company’s
Board of Directors.  The Board of
Directors may from time to time remove members from, or add members to, the
Committee.  Vacancies on the Committee,
howsoever caused, shall be filled by the Board of Directors.  The Committee may select one of its members
as Chairman, and shall hold meetings at such times and places as it may
determine.  Acts by a majority of the
Committee, or acts reduced to or approved in writing by a majority of the
members of the Committee, shall be the valid acts of the Committee.

 

The
interpretation and construction by the Committee of any provisions of the Plan
or of any option granted under it shall be final, unless otherwise determined
by the Board of Directors.  The Committee
may from time to time adopt such rules and regulations for carrying out
the Plan as it may deem best, provided that any such rules and regulations
shall be applied on a uniform basis to all employees under the Plan.  No member of the Board of Directors or the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any option granted under it.

 

In
the event the Board of Directors fails to appoint or refrains from appointing a
Committee, the Board of Directors shall have all power and authority to
administer the Plan.  In such event, the
word “Committee” wherever used herein shall be deemed to mean the Board of
Directors.

 

Article 3
- Eligible Employees.

 

All
employees of the Company or any of its participating subsidiaries whose
customary employment is more than 20 hours per week and for more than five
months in any calendar year shall be eligible to receive options under the Plan
to purchase common stock of the Company,

 

 

and
all eligible employees shall have the same rights and privileges
hereunder.  Persons who are eligible
employees on the first business day of any Offering Period (as defined in Article 5)
shall receive their options as of such day. 
Persons who become eligible employees after any date on which options
are granted under the Plan shall be granted options on the first day of the
next succeeding Offering Period on which options are granted to eligible
employees under the Plan.  In no event,
however, may an employee be granted an option if such employee, immediately
after the option was granted, would be treated as owning stock possessing
five percent or more of the total combined voting power or value of all
classes of stock of the Company or of any parent corporation or subsidiary
corporation, as the terms “parent corporation” and “subsidiary corporation” are
defined in Section 424(e) and (f) of the Code.  For purposes of determining stock ownership
under this paragraph, the rules of Section 424(d) of the Code
shall apply, and stock which the employee may purchase under outstanding
options shall be treated as stock owned by the employee.

 

Article 4
- Stock Subject to the Plan.

 

The
stock subject to the options under the Plan shall be shares of the Company’s
authorized but unissued  common stock,
par value $.01 per share (the “Common Stock”), or shares of Common Stock
reacquired by the Company, including shares purchased in the open market.  The aggregate number of shares which may be
issued pursuant to the Plan is 300,000 subject to adjustment as provided in Article 12.  If any option granted under the Plan shall
expire or terminate for any reason without having been exercised in full or
shall cease for any reason to be exercisable in whole or in part, the
unpurchased shares subject thereto shall again be available under the Plan.

 

Beginning
February 1, 2002 and each February 1 thereafter (each, an “Adjustment
Date”), the number of shares which may be issued pursuant to the Plan shall
automatically increase by such number of shares as is equal to the greater of (i) 0.75%
of the number of shares of Common Stock outstanding on the immediately
preceding December 31, and (ii) the number of shares of Common Stock
that has been made subject to options under the Plan during the year
immediately preceding such Adjustment Date; provided, however, that the Board
may provide for a lesser number of shares on any Adjustment Date by designating
such lesser number by resolution adopted on or before such Adjustment Date; and
provided further, however that the cumulative number of additional shares that
may be issued pursuant to the Plan as a result of increases on all Adjustment
Dates taken together may not exceed 1,000,000 shares (such number to be subject
to adjustment in accordance with Article 12 below).

 

Article 5
- Offering Period and Stock Options.

 

Offering
Periods under the Plan shall consist of twenty-four month periods commencing on
November 1 and May 1 of each calendar year (“Offering Periods”).  The Company will designate one or more dates
within each Offering Period on which shares of Common Stock may be purchased by
participants in an Offering Period (“Exercise Date(s)”).  Unless and until otherwise determined by the
Committee, there shall be four Exercise Dates occurring on each April 30
and October 31 (or, if such date is not a business day, the first business
day thereafter) within each such Offering Period; provided, that for the
Offering Period commencing on

 

2

 

November 1,
2009, the Exercise Dates shall be April 30, 2010 and October 31,
2010; provided, further, that for the Offering Period commencing on May 1,
2010, the sole Exercise Date shall be October 31, 2010.  On the first business day at the beginning of
each Offering Period, the Company will grant to each eligible employee who is
then a participant in the Plan an option to purchase shares on the Exercise
Dates, at the Option Price hereinafter provided for, a maximum of 10,000
shares, on condition that such employee remains eligible to participate in the
Plan on the Exercise Date.  If the
participant’s accumulated payroll deductions on the last date of the Offering
Period would enable the participant to purchase more than the maximum number of
shares provided herein except for the share limitation set forth herein, the
excess of the amount of the accumulated payroll deductions over the aggregate
purchase price of the maximum number of shares that may be purchased in
accordance with this Article 5 shall be promptly refunded to the
participant by the Company, without interest. 
The participant shall be entitled to exercise the option so granted only
to the extent of the participant’s accumulated payroll deductions on the
Exercise Date.  The Option Price per
share for each Exercise Date within an Offering Period shall be the lesser of (i) 85%
of the average market price of the Common Stock on the first business day of
the Offering Period and (ii) 85% of the average market price of the Common
Stock on the applicable Exercise Date, in either event rounded up to the
nearest cent. The foregoing limitation on the number of shares subject to
option and the Option Price shall be subject to adjustment as provided in Article 12.

 

Unless
a participant files a new authorization or withdraws from the Plan, the
deductions and purchases under the authorization the participant has on file
under the Plan will continue from one Offering Period to succeeding (but not
overlapping) Offering Periods as long as the Plan remains in effect.  Notwithstanding any of the foregoing, if the
average market price of the Common Stock on an Exercise Date is less than or
equal to the average market price of the Common Stock on the first business day
of the Offering Period to which such Exercise Date relates, all participants
shall be automatically withdrawn from such Offering Period immediately after
the acquisition of shares of Common Stock for such Exercise Date and
automatically enrolled in the immediately following Offering Period as of the
first day thereof.

 

For
purposes of the Plan, the term “average market price” on any date means (i) the
average (on that date) of the high and low prices of the Common Stock on the
principal national securities exchange on which the Common Stock is traded, if
the Common Stock is then traded on a national securities exchange; or (ii) the
last reported sale price (on that date) of the Common Stock on the NASDAQ
National Market, if the Common Stock is not then traded on a national
securities exchange; or (iii) the average of the closing bid and asked
prices last quoted (on that date) by an established quotation service for
over-the-counter securities, if the Common Stock is not reported on the NASDAQ
National Market; or (iv) if the Common Stock is not publicly traded, the
fair market value of the Common Stock as determined by the Committee after
taking into consideration all factors which it deems appropriate, including,
without limitation, recent sale and offer prices of the Common Stock in private
transactions negotiated at arm’s length.

 

For
purposes of the Plan, the term “business day” means a day on which there is
trading on the NASDAQ National Market or the aforementioned national securities
exchange, whichever is applicable pursuant to the preceding paragraph; and if
neither is applicable, a day that is not a Saturday, Sunday or legal holiday in
State of Wisconsin.

 

3

 

No
employee shall be granted an option which permits the employee’s right to
purchase stock under the Plan, and under all other Section 423(b) employee
stock purchase plans of the Company and any parent or subsidiary corporations,
to accrue at a rate which exceeds $25,000 of fair market value of such stock
(determined on the date or dates that options on such stock were granted) for
each calendar year in which such option is outstanding at any time.  The purpose of the limitation in the
preceding sentence is to comply with Section 423(b)(8) of the
Code.  If the participant’s accumulated
payroll deductions on any Exercise Date would otherwise enable the participant
to purchase Common Stock in excess of the Section 423(b)(8) limitation
described in this paragraph, the excess of the amount of the accumulated
payroll deductions over the aggregate purchase price of the shares actually
purchased shall be promptly refunded to the participant by the Company, without
interest.

 

Article 6
- Exercise of Option.

 

Each
eligible employee who continues to be a participant in the Plan on an Exercise
Date within an Offering Period shall be deemed to have exercised his or her
option on such date and shall be deemed to have purchased from the Company such
number of full shares of Common Stock reserved for the purpose of the Plan as
the participant’s accumulated payroll deductions on such date will pay for at
the Option Price, subject to the 10,000 maximum share limit of the option and
the Section 423(b)(8) limitation described in Article 5.  If the individual is not a participant on an
Exercise Date, then he or she shall not be entitled to exercise his or her
option.  Only full shares of Common Stock
may be purchased under the Plan.  Unused
payroll deductions remaining in a participant’s account at the end of either an
Exercise Date or an Offering Period, by reason of the inability to purchase a
fractional share, shall be carried forward to the next Exercise Date or
Offering Period.

 

Article 7
- Authorization for Entering the Plan.

 

An
employee may elect to enter the Plan by filling out, signing and delivering to
the Company an authorization:

 

A.            Stating the percentage to be
deducted regularly from the employee’s pay;

 

B.            Authorizing the purchase of stock
for the employee in each Offering Period in accordance with the terms of the
Plan; and

 

C.            Specifying the exact name or names
in which stock purchased for the employee is to be issued as provided under Article 11
hereof.

 

Such
authorization must be received by the Company at least ten days before the
first day of the next Offering Period and shall take effect only if the
employee is an eligible employee on the first business day of such Offering
Period.

 

An
employee cannot participate in more than one Offering Period at any time.

 

4

 

Unless
a participant files a new authorization or withdraws from the Plan, the
deductions and purchases under the authorization the participant has on file
under the Plan will continue from one Offering Period to succeeding (but not
overlapping) Offering Periods as long as the Plan remains in effect.

 

The
Company will accumulate and hold for each participant’s account the amounts
deducted from his or her pay.  No interest
will be paid on these amounts.

 

Article 8
- Maximum Amount of Payroll Deductions.

 

An
employee may authorize payroll deductions in an amount (expressed as a whole
percentage) not less than one percent (1%) but not more than fifteen
percent (15%) of the employee’s total compensation, including base pay or
salary and any overtime, bonuses or commissions.

 

Article 9
- Change in Payroll Deductions.

 

Deductions
may not be increased or decreased during a Offering Period.  However, a participant may withdraw in full
from the Plan.

 

Article 10
- Withdrawal from the Plan.

 

A
participant may withdraw from the Plan (in whole but not in part) at any time
prior to the last day of an Offering Period by delivering a withdrawal notice
to the Company.

 

To
re-enter the Plan, an employee who has previously withdrawn must file a new
authorization at least ten days before the first day of the next Offering
Period in which he or she wishes to participate.  The employee’s re-entry into the Plan becomes
effective at the beginning of such Offering Period, provided that he or she is
an eligible employee on the first business day of the Offering Period.

 

Article 11
- Issuance of Stock.

 

Certificates
for stock issued to participants shall be delivered as soon as practicable
after each Exercise Date by the Company’s transfer agent.

 

Stock
purchased under the Plan shall be issued only in the name of the participant,
or if the participant’s authorization so specifies, in the name of the
participant and another person of legal age as joint tenants with rights of
survivorship.

 

Article 12
- Adjustments.

 

Upon
the happening of any of the following described events, a participant’s rights
under options granted under the Plan shall be adjusted as hereinafter provided:

 

5

 

A.            In the event that the shares of
Common Stock shall be subdivided or combined into a greater or smaller number
of shares or if, upon a reorganization, split-up, liquidation, recapitalization
or the like of the Company, the shares of Common Stock shall be exchanged for
other securities of the Company, each participant shall be entitled, subject to
the conditions herein stated, to purchase such number of shares of Common Stock
or amount of other securities of the Company as were exchangeable for the
number of shares of Common Stock that such participant would have been entitled
to purchase except for such action, and appropriate adjustments shall be made
in the purchase price per share to reflect such subdivision, combination or exchange;
and

 

B.            In the event the Company shall issue
any of its shares as a stock dividend upon or with respect to the shares of
stock of the class which shall at the time be subject to option hereunder, each
participant upon exercising such an option shall be entitled to receive (for
the purchase price paid upon such exercise) the shares as to which the
participant is exercising his or her option and, in addition thereto (at no
additional cost), such number of shares of the class or classes in which such stock
dividend or dividends were declared or paid, and such amount of cash in lieu of
fractional shares, as is equal to the number of shares thereof and the amount
of cash in lieu of fractional shares, respectively, which the participant would
have received if the participant had been the holder of the shares as to which
the participant is exercising his or her option at all times between the date
of the granting of such option and the date of its exercise.

 

Upon
the happening of any of the foregoing events, the class and aggregate number of
shares set forth in Article 4 hereof which are subject to options which
have been or may be granted under the Plan and the limitations set forth in the
second paragraph of Article 5 shall also be appropriately adjusted to
reflect the events specified in paragraphs A and B above.  Notwithstanding the foregoing, any
adjustments made pursuant to paragraphs A or B shall be made only after
the Committee, based on advice of counsel for the Company, determines whether
such adjustments would constitute a “modification” (as that term is defined in Section 424
of the Code).  If the Committee
determines that such adjustments would constitute a modification, it may
refrain from making such adjustments.

 

If
the Company is to be consolidated with or acquired by another entity in a
merger, a sale of all or substantially all of the Company’s assets or otherwise
(an “Acquisition”), the Committee or the board of directors of any entity
assuming the obligations of the Company hereunder (the “Successor Board”)
shall, with respect to options then outstanding under the Plan, either (i) make
appropriate provision for the continuation of such options by arranging for the
substitution on an equitable basis for the shares then subject to such options
either (a) the consideration payable with respect to the outstanding
shares of the Common Stock in connection with the Acquisition, (b) shares
of stock of the successor corporation, or a parent or subsidiary of such
corporation, or (c) such other securities as the Successor Board deems
appropriate, the fair market value of which shall not materially exceed the
fair market value of the shares of Common Stock subject to such options
immediately preceding the Acquisition; or (ii) terminate each participant’s
options in exchange for a cash payment equal to the excess of (a) the fair
market value on the date of the Acquisition, of the number of shares of Common
Stock that the participant’s accumulated payroll deductions as of the date of
the Acquisition could purchase, at

 

6

 

an
option price determined with reference only to the first business day of the
applicable Offering Period and subject to the maximum share limitation set
forth in Article 5 hereof, Code Section 423(b)(8) and
fractional-share limitations on the amount of stock a participant would be
entitled to purchase, over (b) the result of multiplying such number of
shares by such option price.

 

The
Committee or Successor Board shall determine the adjustments to be made under
this Article 12, and its determination shall be conclusive.

 

Article 13
- No Transfer or Assignment of Employee’s Rights.

 

An
option granted under the Plan may not be transferred or assigned, except by
will or the laws of descent and distribution, and shall be exercised, during
the participant’s lifetime, only by the participant.

 

Article 14
- Termination of Employee’s Rights.

 

Whenever
a participant ceases to be an eligible employee because of retirement,
voluntary or involuntary termination, resignation, layoff, discharge, death or
for any other reason, his or her rights under the Plan shall immediately
terminate, and the Company shall promptly refund, without interest, the entire
balance of his or her payroll deduction account under the Plan.  Notwithstanding the foregoing, eligible
employment shall be treated as continuing intact while a participant is on
military leave, sick leave or other bona fide leave of absence, for up to
90 days, or for so long as the participant’s right to re-employment is
guaranteed either by statute or by contract, if longer than 90 days.

 

Article 15
- Termination and Amendments to Plan.

 

Unless
terminated sooner as provided below, the Plan shall terminate on October 
31, 2010.  The Plan may be terminated at
any time by the Company’s Board of Directors but such termination shall not
affect options then outstanding under the Plan. 
It will terminate in any case when all or substantially all of the
unissued shares of stock reserved for the purposes of the Plan have been
purchased.  If at any time shares of
stock reserved for the purpose of the Plan remain available for purchase but
not in sufficient number to satisfy all then unfilled purchase requirements,
the available shares shall be apportioned among participants in proportion to
the amount of payroll deductions accumulated on behalf of each participant that
would otherwise be used to purchase stock, and the Plan shall terminate.  Upon such termination or any other termination
of the Plan, all payroll deductions not used to purchase stock will be
refunded, without interest.

 

The
Committee or the Board of Directors may from time to time adopt amendments to
the Plan provided that, without the approval of the stockholders of the
Company, no amendment may (i) increase the number of shares that may be
issued under the Plan; (ii) change the class of employees eligible to
receive options under the Plan, if such action would be treated as the adoption
of a new plan for purposes of Section 423(b) of the Code; or (iii) cause
Rule 16b-3 under the Securities Exchange Act of 1934 to become
inapplicable to the Plan.

 

7

 

Article 16
- Limits on Sale of Stock Purchased under the Plan.

 

The
Plan is intended to provide shares of Common Stock for investment and not for
resale.  The Company does not, however,
intend to restrict or influence any employee in the conduct of his or her own
affairs.  An employee may, therefore,
sell stock purchased under the Plan at any time the employee chooses, subject
to compliance with any applicable federal or state securities laws and subject
to any restrictions imposed under Article 21 to ensure that tax
withholding obligations are satisfied.  THE EMPLOYEE ASSUMES THE RISK OF ANY MARKET FLUCTUATIONS IN THE PRICE
OF THE STOCK.

 

Article 17
- Participating Subsidiaries.

 

The
term “participating subsidiary” shall mean any present or future subsidiary of
the Company, as that term is defined in Section 424(f) of the Code,
which is designated from time to time by the Board of Directors to participate
in the Plan.  The Board of Directors
shall have the power to make such designation before or after the Plan is
approved by the stockholders.

 

Article 18
- Optionees Not Stockholders.

 

Neither
the granting of an option to an employee nor the deductions from his or her pay
shall constitute such employee a stockholder of the shares covered by an option
until such shares have been actually purchased by the employee.

 

Article 19
- Application of Funds.

 

The
proceeds received by the Company from the sale of Common Stock pursuant to
options granted under the Plan will be used for general corporate purposes.

 

Article 20
- Notice to Company of Disqualifying Disposition.

 

By
electing to participate in the Plan, each participant agrees to notify the
Company in writing immediately after the participant transfers Common Stock
acquired under the Plan, if such transfer occurs within two years after
the first business day of the Offering Period in which such Common Stock was
acquired.  Each participant further
agrees to provide any information about such a transfer as may be requested by
the Company or any subsidiary corporation in order to assist it in complying
with the tax laws.  Such dispositions
generally are treated as “disqualifying dispositions” under Sections 421 and
424 of the Code, which have certain tax consequences to participants and to the
Company and its participating subsidiaries.

 

Article 21
- Withholding of Additional Income Taxes.

 

By
electing to participate in the Plan, each participant acknowledges that the
Company and its participating subsidiaries are required to withhold taxes with
respect to the amounts deducted from the participant’s compensation and
accumulated for the benefit of the participant under the Plan, and each
participant agrees that the Company and its participating subsidiaries

 

8

 

may
deduct additional amounts from the participant’s compensation, when amounts are
added to the participant’s account, used to purchase Common Stock or refunded,
in order to satisfy such withholding obligations.  Each participant further acknowledges that
when Common Stock is purchased under the Plan the Company and its participating
subsidiaries may be required to withhold taxes with respect to all or a portion
of the difference between the fair market value of the Common Stock purchased
and its purchase price, and each participant agrees that such taxes may be
withheld from compensation otherwise payable to such participant.  It is intended that tax withholding will be
accomplished in such a manner that the full amount of payroll deductions
elected by the participant under Article 7 will be used to purchase Common
Stock.  However, if amounts sufficient to
satisfy applicable tax withholding obligations have not been withheld from
compensation otherwise payable to any participant, then, notwithstanding any
other provision of the Plan, the Company may withhold such taxes from the
participant’s accumulated payroll deductions and apply the net amount to the
purchase of Common Stock, unless the participant pays to the Company, prior to
the exercise date, an amount sufficient to satisfy such withholding
obligations.  Each participant further
acknowledges that the Company and its participating subsidiaries may be
required to withhold taxes in connection with the disposition of stock acquired
under the Plan and agrees that the Company or any participating subsidiary may
take whatever action it considers appropriate to satisfy such withholding
requirements, including deducting from compensation otherwise payable to such
participant an amount sufficient to satisfy such withholding requirements or
conditioning any disposition of Common Stock by the participant upon the
payment to the Company or such subsidiary of an amount sufficient to satisfy
such withholding requirements.

 

Article 22
- Governmental Regulations.

 

The
Company’s obligation to sell and deliver shares of Common Stock under the Plan
is subject to the approval of any governmental authority required in connection
with the authorization, issuance or sale of such shares.

 

Government
regulations may impose reporting or other obligations on the Company with
respect to the Plan.  For example, the
Company may be required to identify shares of Common Stock issued under the
Plan on its stock ownership records and send tax information statements to
employees and former employees who transfer title to such shares.

 

Article 23
- Governing Law.

 

The
validity and construction of the Plan shall be governed by the laws of
Delaware, without giving effect to the principles of conflicts of law thereof.

 

Article 24
- Approval of Board of Directors and Stockholders of the Company.

 

The
Plan was adopted by the Board of Directors on October 17, 2000 and was
approved by the stockholders of the Company on October 17, 2000.

 

The
Plan was amended by the Committee, without stockholder approval pursuant to Article 15
hereof, on July 22, 2003 and on October 15, 2009.

 

9Exhibit
10.17

 

EXACT Sciences Corporation

 

Non-Employee Director
Compensation Policy

 

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

 

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

 

On the date of each annual meeting of the Company’s
stockholders, each non-employee director who is continuing as a director
following such annual meeting shall be granted an annual retainer in common
stock of the Company (“Director Stock”) having a value as set forth below as
measured by the closing sale price of the Company’s common stock on the date of
grant:

 

	
   

  	
   

  	
  Annual Retainer

  ($ value of Restricted

  Stock)

  	
   

  
	
  Chairman of the Board

  	
   

  	
  $

  	
  52,500

  	
   

  
	
  Chairman of a Committee

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  Director

  	
   

  	
  $

  	
  40,000

  	
   

  

 

Upon his or her initial election to the board (or
the first trading day thereafter if the date of election is not a trading day),
a new director shall be granted $25,000 worth of Director Stock as measured by
the closing sale price of the Company’s common stock on the date of grant.

 

All Director Stock granted pursuant to this Director
Compensation Policy shall be deemed fully-vested immediately upon grant.

 

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

 

Adopted Effective October 14, 2009

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