Document:

Exhibit 10.1

 

1991 STOCK PLAN OF

INCYTE CORPORATION

(As amended on April 3,
2008)

 

SECTION 1.  ESTABLISHMENT AND PURPOSE.

 

The Plan was adopted on November 7,
1991, amended and restated on February 15, 2001, and amended on February 27,
2002, March 15, 2003, March 13, 2007, March 11, 2008 and on April 3,
2008.  The purpose of the Plan is to
offer selected employees and consultants an opportunity to acquire a
proprietary interest in the success of the Company, or to increase such
interest, by purchasing Shares of the Company’s Stock.  The Plan provides both for the direct award
or sale of Shares and for the grant of Options to purchase Shares.  Options granted under the Plan may include
Nonstatutory Options as well as ISOs intended to qualify under section 422
of the Code.

 

The Plan is intended to
comply in all respects with Rule 16b-3 (or its successor) under the
Exchange Act and shall be construed accordingly.

 

SECTION 2.  DEFINITIONS.

 

(a)  “Board of Directors” shall mean the Board of Directors of the
Company, as constituted from time to time.

 

(b)  “Change in Control” shall mean the occurrence of either of
the following events:

 

(i) 
A change in the composition of the Board of Directors, as a result of which
fewer than one-half of the incumbent directors are directors who either:

 

(A)  Had been directors
of the Company 24 months prior to such change; or

 

(B)  Were elected, or
nominated for election, to the Board of Directors with the affirmative votes of
at least a majority of the directors who had been directors of the Company
24 months prior to such change and who were still in office at the time of
the election or nomination; or

 

(ii) 
Any “person” (as such term is used in sections 13(d) and 14(d) of the
Exchange Act) by the acquisition or aggregation of securities is or becomes the
beneficial owner, directly or indirectly, of securities of the Company
representing 50 percent 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.

 

(c)  “Code” shall mean the Internal Revenue Code of 1986, as
amended.

 

(d) “Committee” shall mean a committee of the Board of Directors,
as described in Section 3(a).

 

(e)  “Company” shall mean Incyte Corporation (formerly Incyte
Genomics, Inc.), a Delaware corporation.

 

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(f)  “Employee” shall mean (i) any individual who is a
common-law employee of the Company or of a Subsidiary or (ii) an
independent contractor who performs services for the Company or a Subsidiary
and who is not a member of the Board of Directors.  Service as an independent contractor shall be
considered employment for all purposes of the Plan except the second sentence
of Section 4(a).

 

(g)  “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended.

 

(h)  “Exercise Price” shall mean the amount for which one Share
may be purchased upon exercise of an Option, as specified by the Committee in
the applicable Stock Option Agreement.

 

(i)  “Fair Market Value” with respect to a Share, shall mean the
market price of one Share of Stock, determined by the Committee as follows:

 

(i) 
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.;

 

(ii) 
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;

 

(iii) 
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

 

(iv) 
If none of the foregoing provisions is applicable, then the Fair Market Value
shall be determined by the Committee in good faith on such basis as it deems
appropriate.

 

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

 

(j)  “ISO” shall mean an employee incentive stock option described
in section 422(b) of the Code.

 

(k)  “Nonstatutory Option” shall mean an employee stock option not
described in sections 422(b) or 423(b) of the Code.

 

(l)  “Offeree” shall mean an individual to whom the Committee has
offered the right to acquire Shares under the Plan (other than upon exercise of
an Option).

 

(m)  “Option” shall mean an ISO or Nonstatutory Option granted
under the Plan and entitling the holder to purchase Shares.

 

(n)  “Optionee” shall mean an individual who holds an Option.

 

(o)  “Plan” shall mean this Amended and Restated 1991 Stock Plan
of Incyte Corporation.

 

(p) “Purchase Price” shall mean the consideration for which one
Share may be acquired under the Plan (other than upon exercise of an Option),
as specified by the Committee.

 

(q)  “Service” shall mean service as an Employee.

 

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(r)  “Share” shall mean one share of Stock, as adjusted in
accordance with Section 9 (if applicable).

 

(s)  “Stock” shall mean the Common Stock, $.001 par value, of the
Company.

 

(t)  “Stock Option Agreement” shall mean the agreement between the
Company and an Optionee which contains the terms, conditions and restrictions
pertaining to his or her Option.

 

(u)  “Stock Purchase Agreement” shall mean the agreement between
the Company and an Offeree who acquires Shares under the Plan which contains
the terms, conditions and restrictions pertaining to the acquisition of such
Shares.

 

(v)  “Subsidiary” shall mean any corporation, if the Company
and/or one or more other Subsidiaries own not less than 50 percent of the
total combined voting power of all classes of outstanding stock of such
corporation.  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.

 

(w)  “Total and Permanent Disability” shall mean that the Optionee
is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or which has lasted, or can be expected to last, for a continuous
period of not less than one year.

 

SECTION 3.  ADMINISTRATION.

 

(a)  Committee Composition. 
The Plan shall be administered by the Committee.  The Committee shall consist of two or more
directors of the Company who shall satisfy the requirements of Rule 16b-3
(or its successor) under the Exchange Act with respect to the grant of Awards
to persons who are officers or directors of the Company under Section 16
of the Exchange Act or the Board itself. 
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 qualify
under Rule 16b-3, 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 Shares and Options under the Plan to such
Employees and may determine all terms of such grants.

 

(b)  Committee Procedures. 
The Board of Directors shall designate one of the members of the
Committee as chairman.  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.

 

(c)  Committee Responsibilities. 
Subject to the provisions of the Plan, the Committee shall have full
authority and discretion to take the following actions:

 

(i)   To interpret the Plan and to apply its
provisions;

 

(ii)  To adopt, amend
or rescind rules, procedures and forms relating to the Plan;

 

(iii)  To authorize any
person to execute, on behalf of the Company, any instrument required to carry
out the purposes of the Plan;

 

(iv)  To determine when
Shares are to be awarded or offered for sale and when Options are to be granted
under the Plan;

 

(v)  To select the
Offerees and Optionees;

 

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(vi)  To determine the
number of Shares to be offered to each Offeree or to be made subject to each
Option;

 

(vii)  To prescribe the
terms and conditions of each award or sale of Shares, including (without
limitation) the Purchase Price, and to specify the provisions of the Stock
Purchase Agreement relating to such award or sale;

 

(viii)  To prescribe
the terms and conditions of each Option, including (without limitation) the
Exercise Price, to determine whether such Option is to be classified as an ISO
or as a Nonstatutory Option, and to specify the provisions of the Stock Option
Agreement relating to such Option;

 

(ix)  To amend any
outstanding Stock Purchase Agreement or Stock Option Agreement, subject to
applicable legal restrictions and to the consent of the Offeree or Optionee who
entered into such agreement;

 

(x)  To prescribe the
consideration for the grant of each Option or other right under the Plan and to
determine the sufficiency of such consideration; and

 

(xi)  To take any other actions deemed necessary or
advisable for the administration of the Plan.

 

All decisions, interpretations and other actions of
the Committee shall be final and binding on all Offerees, all Optionees, and
all persons deriving their rights from an Offeree or Optionee.  No member of the Committee shall be liable
for any action that he or she has taken or has failed to take in good faith
with respect to the Plan, any Option, or any right to acquire Shares under the
Plan.

 

SECTION 4.  ELIGIBILITY.

 

(a)  General Rule.  Only
Employees, as defined in Section 2(f), shall be eligible for designation
as Optionees or Offerees by the Committee.  In addition, only individuals who are employed
as common-law employees by the Company or a Subsidiary shall be eligible for
the grant of ISOs.

 

(b)  Ten-Percent Stockholders. 
An Employee who owns more than 10 percent of the total combined
voting power of all classes of outstanding stock of the Company or any of its
Subsidiaries shall not be eligible for the grant of an ISO unless (i) the
Exercise Price is at least 110 percent of the Fair Market Value of a Share
on the date of grant and (ii) such ISO by its terms is not exercisable
after the expiration of five years from the date of grant.

 

(c)  Attribution Rules. 
For purposes of Subsection (b) above, in determining stock
ownership, an Employee shall be deemed to own the stock owned, directly or
indirectly, by or for such Employee’s 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 Employee holds an option shall not be counted.

 

(d)  Outstanding Stock. 
For purposes of Subsection (b) above, “outstanding stock” shall
include all stock actually issued and outstanding immediately after the
grant.  “Outstanding stock” shall not
include shares authorized for issuance under outstanding options held by the
Employee or by any other person.

 

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SECTION 5.  STOCK SUBJECT TO PLAN.

 

(a)  Basic Limitation. 
Shares offered under the Plan shall be authorized but unissued Shares or
treasury Shares.  The aggregate number of
Shares which may be issued under the Plan (upon exercise of Options or other
rights to acquire Shares) shall not exceed 29,350,000 Shares, subject to
adjustment pursuant to Section 9. 
Notwithstanding the foregoing, the number of Shares that may be issued
under the Plan, other than (i) upon exercise of Options or (ii) pursuant
to any sale under a Stock Purchase Agreement for a Purchase Price at least
equal to 100 percent of the Fair Market Value of a Share on the date of such
Stock Purchase Agreement, shall not exceed 200,000 Shares, subject to
adjustment pursuant to Section 9. The number of Shares that are subject to
Options or other rights outstanding at any time under the Plan shall not exceed
the number of Shares that then remain available for issuance under the
Plan.  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.

 

(b)  Additional Shares.  In
the event that any outstanding Option or other right for any reason expires or
is canceled or otherwise terminated, the Shares allocable to the unexercised
portion of such Option or other right shall again be available for the purposes
of the Plan.  In the event that Shares
issued under the Plan are reacquired by the Company pursuant to any forfeiture
provision, right of repurchase or right of first refusal, such Shares shall
again be available for the purposes of the Plan.

 

SECTION 6.  TERMS AND CONDITIONS OF AWARDS OR SALES.

 

(a)  Stock Purchase Agreement. 
Each award or sale of Shares under the Plan (other than upon exercise of
an Option) shall be evidenced by a Stock Purchase Agreement between the Offeree
and the Company.  Such award or sale
shall be subject to all applicable terms and conditions of the Plan and may be
subject to any other terms and conditions which are not inconsistent with the
Plan and which the Committee deems appropriate for inclusion in a Stock
Purchase Agreement.  The provisions of
the various Stock Purchase Agreements entered into under the Plan need not be
identical.

 

(b)  Duration of Offers and Nontransferability of Rights.  Any right to acquire Shares under the Plan
(other than an Option) shall automatically expire if not exercised by the
Offeree within 30 days after the grant of such right was communicated to the
Offeree by the Committee.  Such right
shall not be transferable and shall be exercisable only by the Offeree to whom
such right was granted.

 

(c)  Purchase Price.  The
Purchase Price of Shares to be offered under the Plan shall not be less than
the par value of such Shares.  Subject to
the preceding sentence, the Purchase Price shall be determined by the Committee
at its sole discretion.  The Purchase
Price shall be payable in a form described in Section 8.

 

(d)  Withholding Taxes.  As
a condition to the award, purchase, vesting or sale of Shares, the Offeree
shall make such arrangements as the Committee may require for the satisfaction
of any federal, state, local or foreign withholding tax obligations that may
arise in connection with such Shares. 
The Committee may permit the Offeree to satisfy all or part of his or her
tax obligations related to such Shares by having the Company withhold a portion
of any Shares that otherwise would be issued to him or her or by surrendering
any Shares that previously were acquired by him or her.  The Shares withheld or surrendered shall be
valued at their Fair Market Value on the date when taxes otherwise would be
withheld in cash.  The payment of taxes
by assigning Shares to the Company, if permitted by the Committee, shall be
subject to such restrictions as the Committee may impose, including any
restrictions required by rules of the Securities and Exchange Commission.

 

(e)  Restrictions on Transfer of Shares.  Any Shares awarded or sold under the Plan
shall be subject to such special forfeiture conditions, rights of repurchase,
rights of first refusal and other transfer restrictions as the Committee may
determine.  Such restrictions shall be
set forth in the applicable Stock Purchase Agreement and shall apply in
addition to any general restrictions that may apply to all holders of Shares.

 

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SECTION 7.  TERMS AND CONDITIONS OF OPTIONS.

 

(a)  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 which are not inconsistent with the Plan and which the Committee
deems appropriate for inclusion in a Stock Option Agreement.  The provisions of the various Stock Option
Agreements entered into under the Plan need not be identical.

 

(b)  Number of Shares. 
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 9.  The
Stock Option Agreement shall also specify whether the Option is an ISO or a
Nonstatutory Option.  Options granted to
any Optionee in a single calendar year shall in no event cover more than
800,000 Shares, subject to adjustment in accordance with Section 9.

 

(c)  Exercise Price.  Each
Stock Option Agreement shall specify the Exercise Price.  The Exercise Price of an ISO shall not be
less than 100 percent of the Fair Market Value of a Share on the date of grant,
and a higher percentage may be required by Section 4(b).  The Exercise Price of a Nonstatutory Option
shall not be less than 100 percent of the Fair Market Value of a Share on the
date of grant.  Subject to the preceding
two sentences, the Exercise Price under any Option shall be determined by the
Committee at its sole discretion.  The
Exercise Price shall be payable in a form described in Section 8.

 

(d)  Withholding Taxes.  As
a condition to the exercise of an Option, the Optionee shall make such
arrangements as the Committee may require for the satisfaction of any federal,
state, local or foreign withholding tax obligations that may arise in
connection with such exercise.  The
Optionee shall also make such arrangements as the Committee may require for the
satisfaction of any federal, state, local or foreign withholding tax
obligations that may arise in connection with the disposition of Shares
acquired by exercising an Option.  The
Committee may permit the Optionee to satisfy all or part of his or her tax
obligations related to the Option by having the Company withhold a portion of
any Shares that otherwise would be issued to him or her or by surrendering any
Shares that previously were acquired by him or her.  Such Shares shall be valued at their Fair
Market Value on the date when taxes otherwise would be withheld in cash.  The payment of taxes by assigning Shares to
the Company, if permitted by the Committee, shall be subject to such
restrictions as the Committee may impose, including any restrictions required
by rules of the Securities and Exchange Commission.

 

(e)  Exercisability.  Each
Stock Option Agreement shall specify the date when all or any installment of
the Option is to become exercisable.  A
Stock Option Agreement may provide for accelerated exercisability in the event
of the Optionee’s death, Total and Permanent Disability or retirement or other
events.

 

(f)  Effect of Change in Control. 
The Committee may determine, at the time of granting an Option or
thereafter, that such Option shall become exercisable on an accelerated basis
in the event that a Change in Control occurs with respect to the Company.  If the Committee finds that there is a
reasonable possibility that, within the succeeding six months, a Change in
Control will occur with respect to the Company, then the Committee may
determine that all outstanding Options shall be exercisable on an accelerated
basis.

 

(g)  Term.  The Stock
Option Agreement shall specify the term of the Option.  The term shall not exceed 10 years from the
date of grant, except as otherwise provided in Section 4(b).  Subject to the preceding sentence, the
Committee at its sole discretion shall determine when an Option is to expire.

 

(h)  Nontransferability. 
Except as may be provided in the applicable Stock Option Agreement with
respect to a Nonstatutory Option, no Option shall be transferable by the
Optionee other than by will, by beneficiary designation delivered to the
Company, or by the laws of descent and distribution.  An Option may be exercised during the
lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or
legal representative.  No Option or
interest therein may be transferred, assigned, pledged or hypothecated by the

 

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Optionee during his or her lifetime, whether by
operation of law or otherwise, or be made subject to execution, attachment or
similar process.

 

(i)  Termination of Service (Except by Death).  Except as may be provided in the applicable
Stock Option Agreement, if an Optionee’s Service terminates for any reason
other than the Optionee’s death, then such Optionee’s Option(s) shall
expire on the earliest of the following occasions:

 

(i)  The expiration
date determined pursuant to Subsection (g) above;

 

(ii)  The date 90 days
after the termination of the Optionee’s Service for any reason other than Total
and Permanent Disability; or

 

(iii)  The date six
months after the termination of the Optionee’s Service by reason of Total and
Permanent Disability.

 

The Optionee may exercise all or part of his or her
Option(s) at any time before the expiration of such Option(s) under
the preceding sentence, but only to the extent that such Option(s) had
become exercisable before the Optionee’s Service terminated or became
exercisable as a result of the termination.  The balance of such Option(s) shall lapse
when the Optionee’s Service terminates. 
In the event that the Optionee dies after the termination of the
Optionee’s Service but before the expiration of the Optionee’s Option(s), all
or part of such Option(s) may be exercised (prior to expiration) by the
executors or administrators of the Optionee’s estate or by any person who has
acquired such Option(s) directly from the Optionee by bequest, beneficiary
designation or inheritance, but only to the extent that such Option(s) had
become exercisable before the Optionee’s Service terminated or became
exercisable as a result of the termination.

 

(j)  Leaves of Absence. 
Except as may be provided in the applicable Stock Option Agreement, for
purposes of Subsection (i) above, Service shall be deemed to continue
while the Optionee is on military leave, sick leave or other bona fide leave of
absence (as determined by the Committee). 
The foregoing notwithstanding, in the case of an ISO granted under the
Plan, Service shall not be deemed to continue beyond the first 90 days of such
leave, unless the Optionee’s reemployment rights are guaranteed by statute or
by contract.

 

(k)  Death of Optionee. 
Except as may be provided in the applicable Stock Option Agreement, if
an Optionee dies while he or she is in Service, then such Optionee’s Option(s) shall
expire on the earlier of the following dates:

 

(i)  The expiration
date determined pursuant to Subsection (g) above; or

 

(ii)  The date six
months after the Optionee’s death.

 

All or part of the Optionee’s Option(s) may be
exercised at any time before the expiration of such Option(s) under the
preceding sentence by the executors or administrators of the Optionee’s estate
or by any person who has acquired such Option(s) directly from the
Optionee by bequest, beneficiary designation or inheritance, but only to the
extent that such Option(s) had become exercisable before the Optionee’s
death or became exercisable as a result of the Optionee’s death.  The balance of such Option(s) shall lapse
when the Optionee dies.

 

(l)  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 he or
she becomes entitled, pursuant to the terms of such Option, to receive such
Shares.  No adjustments shall be made,
except as provided in Section 9.

 

(m)  Modification, Extension and Assumption of Options.  Within the limitations of the Plan, the
Committee may modify, extend or assume outstanding Options or may accept the
cancellation of outstanding Options (whether granted by the Company or another
issuer) in return for the grant of new Options for the same

 

7

 

or a different number of Shares and at the same or a
different Exercise Price; provided, however, that the Committee may not modify
outstanding Options to lower the Exercise Price nor may the Committee assume or
accept the cancellation of outstanding Options in return for the grant of new
Options with a lower Exercise Price, unless such action has been approved by
the Company’s stockholders.  The
foregoing notwithstanding, no modification of an Option shall, without the
consent of the Optionee, impair such Optionee’s rights or increase his or her
obligations under such Option.

 

(n)  Restrictions on Transfer of Shares.  Any Shares issued upon exercise of an Option
may be subject to such special forfeiture conditions, rights of repurchase,
rights of first refusal and other transfer restrictions as the Committee may
determine.  Such restrictions shall be
set forth in the applicable Stock Option Agreement and shall apply in addition
to any general restrictions that may apply to all holders of Shares.

 

SECTION 8.  PAYMENT FOR SHARES.

 

(a)  General Rule.  The
entire Purchase Price or Exercise Price of Shares issued under the Plan shall
be payable in lawful money of the United States of America at the time when
such Shares are purchased, except as provided in Subsections (b), (c), (d), (e) and
(f) below.

 

(b)  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 more than six months 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.

 

(c)  Services Rendered.  At
the discretion of the Committee, Shares may be awarded under the Plan in
consideration of services rendered to the Company or a Subsidiary prior to the
award.  If Shares are awarded without the
payment of a Purchase Price in cash, the Committee shall make a determination
(at the time of the award) of the value of the services rendered by the Offeree
and the sufficiency of the consideration to meet the requirements of Section 6(c).

 

(d)  Promissory Note.  To
the extent that a Stock Option Agreement or Stock Purchase Agreement so
provides, a portion of the Exercise Price or Purchase Price (as the case may
be) of Shares issued under the Plan may be paid with a full-recourse promissory
note, provided that (i) the par value of such Shares must be paid in
lawful money of the United States of America at the time when such Shares are
purchased, (ii) the Shares are pledged as security for payment of the
principal amount of the promissory note and interest thereon and (iii) the
interest rate payable under the terms of the promissory note shall not be less
than the minimum rate (if any) required to avoid the imputation of additional
interest under the Code.  Subject to the
foregoing, the Committee (at its sole discretion) shall specify the term,
interest rate, amortization requirements (if any) and other provisions of such
note.

 

(e)  Exercise/Sale.  To the
extent that a Stock Option Agreement so provides, payment may be made all or in
part by the delivery (on a form prescribed by the Company) of an irrevocable
direction to a securities broker approved by the Company to sell Shares and to
deliver all or part of the sales proceeds to the Company in payment of all or
part of the Exercise Price and any withholding taxes.

 

(f)  Exercise/Pledge.  To
the extent that a Stock Option Agreement so provides, payment may be made all
or in part by the delivery (on a form prescribed by the Company) of an
irrevocable direction to pledge Shares to a securities broker or lender
approved by the Company, as security for a loan, and to deliver all or part of
the loan proceeds to the Company in payment of all or part of the Exercise
Price and any withholding taxes.

 

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SECTION 9.  ADJUSTMENT OF SHARES.

 

(a)  General.  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 value of Shares, a combination or
consolidation of the outstanding Stock into a lesser number of Shares, a
recapitalization, a spinoff, a reclassification or a similar occurrence, the
Committee shall make appropriate adjustments in one or more of (i) the
number of Shares available for future grants under Section 5, (ii) the
limit set forth in Section 7(b), (iii) the number of Shares covered
by each outstanding Option or (iv) the Exercise Price under each
outstanding Option.

 

(b)  Reorganizations.  In
the event that the Company is a party to a merger or other reorganization,
outstanding Options shall be subject to the agreement of merger or
reorganization.  Such agreement may
provide, without limitation, (i) for the assumption of outstanding Options
by the surviving corporation or its parent, (ii) for their continuation by
the Company, if the Company is a surviving corporation, (iii) for payment
of a cash settlement equal to the difference between the amount to be paid for
one Share pursuant to such agreement and the Exercise Price or (iv) for
the acceleration of their exercisability followed by the cancellation of
Options not exercised, in all cases without the Optionees’ consent.  Any cancellation shall not occur until after
such acceleration is effective and Optionees have been notified of such
acceleration.

 

(c)  Reservation of Rights. 
Except as provided in this Section 9, an Optionee or Offeree shall
have no rights by reason of (i) any subdivision or consolidation of shares
of stock of any class, (ii) the payment of any dividend or (iii) 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 10.  SECURITIES LAWS.

 

Shares shall not be issued
under the Plan unless the issuance and delivery of such Shares comply with (or
are exempt from) all applicable requirements of law, including (without
limitation) the Securities Act of 1933, as amended, the Exchange 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.

 

SECTION 11.  NO EMPLOYMENT RIGHTS.

 

No provision of the Plan,
nor any right or Option granted under the Plan, shall be construed to give any
person any right to become, to be treated as, or to remain an Employee.  The Company and its Subsidiaries reserve the
right to terminate any person’s Service at any time and for any reason.

 

SECTION 12.  DURATION AND AMENDMENTS.

 

(a)  Term of the Plan.  The
Plan, as amended as set forth herein, shall become effective as of March 11,
2008, subject to approval of the Company’s stockholders.  The Plan shall terminate automatically on February 15,
2011 and may be terminated on any earlier date pursuant to Subsection (b) below.

 

(b)  Right to Amend or Terminate the Plan.  The Board of Directors may amend, suspend or terminate
the Plan at any time and for any reason. 
An amendment of the Plan shall be subject to the approval of the Company’s
stockholders to the extent required by applicable laws, regulations, rules,
listing standards or other requirements, including (without limitation) Rule 16b-3
under the Exchange Act.  Stockholder
approval shall not be required for any other amendment of the Plan.

 

9

 

(c)  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 Share
previously issued or any Option previously granted under the Plan.

 

SECTION 13.  EXECUTION.

 

To record the Plan as
amended by the Board of Directors on April 3, 2008, the Company has caused
its authorized officer to execute the same.

 

 

	
   

  	
  INCYTE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By 

  	
    /s/ Patricia A. Schreck

  
	
   

  	
   

  	
   

  
	
   

  	
  Its 

  	
   General Counsel

  

 

10Exhibit 10.2

 

INCYTE CORPORATION

 

1997 EMPLOYEE STOCK PURCHASE PLAN

(as amended March 11,
2008)

 

The following constitute the provisions of the 1997 Employee Stock
Purchase Plan of Incyte Corporation, as amended and restated September 15,
2006 and as further amended March 11, 2008.

 

1.                                       Purpose.  The purpose of the Plan is to
provide employees of the Company and its Designated Subsidiaries with an
opportunity to purchase Common Stock of the Company through accumulated payroll
deductions.  It is the intention of the
Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423
of the Internal Revenue Code of 1986, as amended.  The provisions of the Plan, accordingly,
shall be construed so as to extend and limit participation in a manner
consistent with the requirements of that section of the Code.

 

2.                                       Definitions.

 

(a)                                  “Administrator” shall mean the Board
or a committee consisting exclusively of members of the Board that has been
appointed by the Board and authorized to administer the Plan.

 

(b)                                 “Board” shall mean the Board of
Directors of the Company.

 

(c)                                  “Code” shall mean the Internal Revenue
Code of 1986, as amended.

 

(d)                                 “Common Stock” shall mean the Common
Stock, $.001 par value, of the Company.

 

(e)                                  “Company” shall mean Incyte Corporation.

 

(f)                                    “Compensation” shall mean all cash
salary, wages, commissions and bonuses, but shall not include any imputed
income or income arising from the exercise or disposition of equity
compensation.

 

(g)                                 “Effective Date” shall mean September 15,
2006.

 

(h)                                 “Designated Subsidiary” shall mean any
Subsidiary which has been designated by the Board from time to time in its sole
discretion as eligible to participate in the Plan.

 

(i)                                     “Employee” shall mean any individual
who is an Employee of the Company or its Designated Subsidiaries for tax
purposes whose customary employment is at least twenty (20) hours per week and
more than five (5) months in any calendar year.  For purposes of the Plan, the employment
relationship shall be treated as continuing intact while the individual is on
sick leave or other leave of absence approved by the Company or its Designated
Subsidiaries, as applicable.  Where the
period of leave exceeds 90 days and the individual’s right to reemployment is
not guaranteed either by statute or by contract, the employment relationship
shall be deemed to have terminated on the 91st day of such leave.

 

(j)                                     “Enrollment Date” shall mean the first
day of each Offering Period.

 

(k)                                  “Exercise Date” shall mean the last
Trading Day of each Purchase Period.

 

1

 

(l)                                     “Fair Market Value” shall mean, as of
any date, the value of Common Stock determined as follows:

 

(1)                                  If the Common Stock is listed on any
established stock exchange other than The NASDAQ Stock Market, its Fair Market
Value shall be the last reported sale price for the Common Stock reported by
the applicable composite transactions report for such exchange on the date of
determination, as reported on such stock exchange’s website or such other source,
including The Wall Street Journal, as the
Administrator deems reliable; or

 

(2)                                  If the Common Stock is listed on The NASDAQ
Stock Market, its Fair Market Value shall be the last reported sale price for
the Common Stock quoted on The NASDAQ Stock Market on the date of
determination, as reported on www.nasdaq.com or such other source, including The Wall Street Journal, as the Administrator deems
reliable;

 

(3)                                  If the Common Stock is traded
over-the-counter and is quoted on the OTC Bulletin Board, its Fair Market Value
shall be the last transaction price for the Common Stock quoted by the OTC
Bulletin Board on the date of determination, as reported on www.otcbb.com or
such other source as the Administrator deems reliable;

 

(4)                                  If the Common Stock is traded
over-the-counter but is not quoted on the OTC Bulletin Board, its Fair Market
Value shall be the mean of the closing bid and asked prices for the Common
Stock on the date of determination, as reported on www.pinksheets.com or such
other source as the Administrator deems reliable; or

 

(5)                                  In the absence of an established market for
the Common Stock, the Fair Market Value thereof shall be determined in good
faith by the Board.

 

(m)                               “Offering Periods” shall mean the
periods of approximately twenty-four (24) months during which an option granted
pursuant to the Plan may be exercised, commencing on the first Trading Day on
or after May 1 and November 1 of each year and terminating on the
last Trading Day in the periods ending twenty-four months later.  The duration and timing of Offering Periods
may be changed pursuant to Section 4 of this Plan.

 

(n)                                 “Plan” shall mean this Employee Stock
Purchase Plan.

 

(o)                                 “Purchase Price” shall mean an amount
equal to 85% of the Fair Market Value of a share of Common Stock on the
Enrollment Date or on the Exercise Date, whichever is lower.

 

(p)                                 “Purchase Period” shall mean the
approximately six-month period commencing after one Exercise Date and ending
with the next Exercise Date, except that the first Purchase Period of any Offering
Period shall commence on the Enrollment Date and end with the next Exercise
Date.  The duration and timing of
Purchase Periods may be changed pursuant to Section 4 of this Plan.

 

(q)                                 “Reserves” shall mean the number of
shares of Common Stock covered by each option under the Plan which have not yet
been exercised and the number of shares of Common Stock which have been
authorized for issuance under the Plan but not yet placed under option.

 

(r)                                    “Subsidiary” shall mean a corporation
(as defined in Treasury Regulation section 1.421-1(i)), domestic or foreign, of
which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter
organized or acquired by the Company or a Subsidiary.

 

2

 

 

(s)                                  “Trading Day” shall mean a day on
which the national securities exchange or stock market on which the Common
Stock is principally traded, or, if the Common Stock is not listed or quoted on
any securities exchange or stock market, the New York Stock Exchange, is open
for trading.

 

3.                                       Eligibility.

 

(a)                                  Any Employee who has been employed for one
month or more on a given Enrollment Date shall be eligible to participate in
the Plan.

 

(b)                                 Any provisions of the Plan to the contrary
notwithstanding, no Employee shall be granted an option under the Plan (i) to
the extent that, immediately after the grant, such Employee (or any other
person whose stock would be attributed to such Employee pursuant to Section 424(d) of
the Code) would own stock and/or hold outstanding options to purchase such
stock possessing five percent (5%) or more of the total combined voting power
or value of all classes of stock of the Company, its parent or any Subsidiary,
or (ii) to the extent that his or her rights to purchase stock under all
employee stock purchase plans of the Company, its parent and Subsidiaries
accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of
stock (determined at the fair market value of the shares at the time such
option is granted) for each calendar year in which such option is outstanding
at any time.

 

4.                                       Offering Periods.  The
Plan shall be implemented by consecutive, overlapping Offering Periods with a
new Offering Period commencing on the first Trading Day on or after May 1
and November 1 each year, or on such other dates as the Board shall
determine, and continuing thereafter until terminated in accordance with Section 19
hereof.  The Board or a committee thereof
shall have the power to change the duration of Offering Periods (including the
commencement dates thereof) and Purchase Periods thereunder with respect to
future offerings without stockholder approval if such change is announced at
least five (5) days prior to the scheduled beginning of the first Offering
Period to be affected thereafter.

 

5.                                       Participation.

 

(a)                                  An eligible Employee may become a participant
in the Plan by completing a subscription agreement authorizing payroll
deductions substantially in the form of Exhibit A to this Plan and filing
it with the Company’s stock administrator not later than ten (10) business
days prior to the applicable Enrollment Date.

 

(b)                                 Payroll deductions for a participant shall
commence on the first payroll following the Enrollment Date and shall end on
the last payroll in the Offering Period to which such authorization is
applicable, unless sooner terminated by the participant as provided in Section 10
hereof.

 

6.                                       Payroll Deductions.

 

(a)                                  At the time a participant files his or her
subscription agreement, he or she shall elect to have payroll deductions made
on each pay day during the Offering Period in an amount not less than one
percent (1%) and not more than ten percent (10%) of the participant’s
Compensation, with such amount designated in integral multiples of one percent
(1%); provided, however, that the aggregate of such payroll deductions during
any Offering Period shall not exceed ten percent (10%) of the participant’s
aggregate Compensation during such Offering Period.

 

(b)                                 All payroll deductions made for a participant
shall be credited to his or her account under the Plan and shall be withheld in
whole percentages only.  A participant
may not make any additional payments into such account.

 

(c)                                  A participant may discontinue his or her
participation in the Plan as provided in Section 10, or may increase or
decrease the rate of his or her payroll deductions as provided in this Section

 

3

 

6(c). 
A participant may increase the rate of his or her payroll deductions
only as of the beginning of a Purchase Period. 
Such increase shall take effect with the first payroll following the
beginning of the new Purchase Period provided the participant has completed and
delivered to the Company’s stock administrator a new subscription agreement
authorizing the increase in the payroll deduction rate at least ten (10) business
days prior to the beginning of the new Purchase Period.  A participant may decrease the rate of his or
her payroll deductions each month.  Any
decrease shall become effective as of the first payroll of the next calendar
month following the date that the participant completes and delivers to the
Company’s stock administrator a new subscription agreement authorizing the
decrease in the payroll deduction rate. 
However, if the subscription agreement is not received at least five (5) business
days prior to such payroll, the decrease shall become effective as of the first
payroll of the second succeeding calendar month.  The Administrator may, in its discretion,
limit the number of participation rate changes during any Offering Period.  Subject to the foregoing, a participant’s
subscription agreement shall remain in effect for successive Offering Periods
unless terminated as provided in Section 10 hereof.

 

(d)                                 Notwithstanding the foregoing, to the extent
necessary to comply with Section 423(b)(8) of the Code and Section 3(b) hereof,
a participant’s payroll deductions may be decreased to zero percent (0%) at any
time during a Purchase Period.  Such a
decrease shall not be treated as a withdrawal from the Plan subject to Section 10,
unless the participant elects to withdraw pursuant to Section 10.  Payroll deductions shall recommence at the
rate provided in such participant’s subscription agreement at the beginning of
the first Purchase Period which is scheduled to end in the following calendar
year, unless the participant elects to withdraw from the Plan as provided in Section 10
hereof.

 

(e)                                  At the time the option is exercised, in whole
or in part, or at the time some or all of the Common Stock issued under the
Plan is disposed of, the participant must make adequate provision for the
federal, state, or other tax withholding obligations, if any, which arise upon
the exercise of the option or the disposition of the Common Stock.  At any time, the Company or a Designated
Subsidiary, as applicable, may, but shall not be obligated to, withhold from
the participant’s compensation the amount necessary to meet applicable
withholding obligations, including any withholding required to make available
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Employee.

 

7.                                       Grant of Option.  On
the Enrollment Date of each Offering Period, each eligible Employee participating
in such Offering Period shall be granted an option to purchase on each Exercise
Date during such Offering Period (at the applicable Purchase Price) up to a
number of shares of Common Stock determined by dividing such Employee’s payroll
deductions accumulated prior to such Exercise Date and retained in the
Participant’s account as of the Exercise Date by the applicable Purchase Price;
provided that in no event shall an Employee be permitted to purchase during
each Purchase Period more than eight thousand (8,000) shares of Common Stock
(subject to any adjustment pursuant to Section 18) on the Enrollment Date,
and provided further that such purchase shall be subject to the limitations set
forth in Sections 3(b) and 13 hereof. 
Exercise of the option shall occur as provided in Section 8 hereof,
unless the participant has withdrawn pursuant to Section 10 hereof.  The option shall expire on the last day of
the Offering Period.

 

4

 

8.                                       Exercise of Option. 
Unless a participant withdraws from the Plan as provided in Section 10
hereof, his or her option for the purchase of shares of Common Stock shall be
exercised automatically on the Exercise Date, and the maximum number of full
shares of Common Stock subject to option shall be purchased for such
participant at the applicable Purchase Price with the accumulated payroll
deductions in his or her account.  No
fractional shares shall be purchased; any payroll deductions accumulated in a
participant’s account which are not sufficient to purchase a full share shall
be retained in the participant’s account for the subsequent Purchase Period or
Offering Period, subject to earlier withdrawal by the participant as provided
in Section 10 hereof.  Any other
monies left over in a participant’s account after the Exercise Date shall be
returned to the participant.  During a
participant’s lifetime, a participant’s option to purchase shares hereunder is
exercisable only by him or her.

 

9.                                       Delivery.  As promptly as practicable
after each Exercise Date on which a purchase of shares occurs, a share
certificate or certificates representing the number of shares of Common Stock
so purchased shall be delivered to a brokerage account designated by the
Company and kept in such account pursuant to a subscription agreement between
each participant and the Company and subject to the conditions described
therein which may include a requirement that shares be held and not sold for
certain time periods, or the Company shall establish some other means for such
participants to receive ownership of the shares.

 

10.                                 Discontinuation; Withdrawal.

 

(a)                                  A participant may discontinue his or her
participation in the Plan only by withdrawing from the Plan as provided in this
Section 10.  A participant may
withdraw all but not less than all the payroll deductions credited to his or
her account and not yet used to exercise his or her option under the Plan by
giving written notice to the Company substantially in the form of Exhibit B
to this Plan.  Such notice must be
received by the Company no later than 2:00 p.m. Pacific Standard Time on
the second Trading Day preceding the Exercise Date.  All of the participant’s payroll deductions
credited to his or her account shall be paid to such participant promptly after
receipt of notice of withdrawal and such participant’s option for the Offering
Period shall be automatically terminated, and no further payroll deductions for
the purchase of shares shall be made for such Offering Period.  If a participant withdraws from an Offering
Period, payroll deductions shall not resume at the beginning of the succeeding
Offering Period unless the participant delivers to the Company a new
subscription agreement in accordance with Section 5(a).

 

(b)                                 A participant’s withdrawal from an Offering
Period shall not have any effect upon his or her eligibility to participate in
any similar plan which may hereafter be adopted by the Company or in succeeding
Offering Periods which commence after the participant withdraws from the Plan,
subject to compliance with Section 5(a).

 

11.                                 Termination of Employment.

 

Upon a participant’s ceasing to be an Employee, for
any reason, he or she shall be deemed to have elected to withdraw from the Plan
and the payroll deductions credited to such participant’s account during the
Offering Period but not yet used to exercise the option shall be returned to
such participant or, in the case of his or her death, to the person or persons
entitled thereto under Section 15 hereof, and such participant’s option
shall be automatically terminated.

 

12.                                 Interest.  No interest shall accrue on
the payroll deductions of a participant in the Plan.

 

13.                                 Stock.

 

(a)                                  The maximum number of shares of Common Stock
which shall be made available for sale under the Plan shall be four million six
hundred thousand (4,600,000) shares, subject to adjustment upon changes in
capitalization of the Company as provided in Section 18 hereof.  If, on a given Exercise Date, the number of
shares with respect to which options are to be exercised exceeds the number of
shares then

 

5

 

available under the Plan, the Company shall
make a pro rata allocation of the shares remaining available for purchase in as
uniform a manner as shall be practicable and as it shall determine to be
equitable.

 

(b)                                 The participant shall have no interest or
voting right in shares covered by his option until such option has been
exercised.

 

(c)                                  Shares purchased by a participant under the
Plan shall be registered in the name of the participant or in the name of the
participant and his or her spouse.

 

14.                                 Administration.  The
Plan shall be administered by the Administrator.  The Administrator shall have full and
exclusive discretionary authority to adopt such rules, guidelines and forms as
it deems appropriate to implement the Plan, to construe, interpret and apply
the terms of the Plan, to determine eligibility and to adjudicate all disputed
claims filed under the Plan.  Every
finding, decision and determination made by the Administrator shall, to the
full extent permitted by law, be final and binding upon all parties.

 

15.                                 Designation of Beneficiary.

 

(a)                                  A participant may file a written designation
of a beneficiary who is to receive any shares and cash, if any, from the
participant’s account under the Plan in the event of such participant’s death
subsequent to an Exercise Date on which the option is exercised but prior to
delivery to such participant of such shares and cash.  In addition, a participant may file a written
designation of a beneficiary who is to receive any cash from the participant’s
account under the Plan in the event of such participant’s death prior to
exercise of the option.  If a participant
is married and the designated beneficiary is not the spouse, spousal consent
shall be required for such designation to be effective.

 

(b)                                 Such designation of beneficiary may be
changed by the participant at any time by written notice.  In the event of the death of a participant
and in the absence of a beneficiary validly designated under the Plan who is
living at the time of such participant’s death, the Company shall deliver such
shares and/or cash to the executor or administrator of the estate of the
participant, or if no such executor or administrator has been appointed (to the
knowledge of the Company), the Company, in its discretion, may deliver such
shares and/or cash to the spouse or to any one or more dependents or relatives
of the participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

 

16.                                 Transferability. 
Neither payroll deductions credited to a participant’s account nor any
rights with regard to the exercise of an option or to receive shares under the
Plan may be assigned, transferred, pledged or otherwise disposed of in any way
(other than by will, the laws of descent and distribution or as provided in Section 15
hereof) by the participant.  Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds from an Offering Period in accordance with Section 10 hereof.

 

17.                                 Use of Funds.  All
payroll deductions received or held by the Company under the Plan may be used
by the Company for any corporate purpose, and the Company shall not be
obligated to segregate such payroll deductions.

 

18.                                 Adjustments Upon Changes in Capitalization,
Dissolution, Liquidation, Merger or Asset Sale.

 

(a)                                  Changes in Capitalization. 
Subject to any required action by the stockholders of the Company, the
Reserves, the maximum number of shares each participant may purchase each
Purchase Period (pursuant to Section 7), as well as the Purchase Price per
share and the number of shares of Common Stock covered by each option under the
Plan which has not yet been exercised shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or

 

6

 

decrease in the number of outstanding shares
of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company
shall not be deemed to have been “effected without receipt of consideration”.  Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and
conclusive.  Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an option.

 

(b)                                 Dissolution or Liquidation.  In
the event of the proposed dissolution or liquidation of the Company, the
Offering Periods shall terminate immediately prior to the consummation of such
proposed action, unless otherwise provided by the Board.

 

(c)                                  Merger or Asset Sale.  In
the event of a proposed sale of all or substantially all of the assets of the
Company, or the merger of the Company with or into another corporation, limited
liability company or other entity, the Plan shall terminate upon the date of
the consummation of such transaction and any Purchase Periods then in progress
shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and
any Offering Periods then in progress shall end on the New Exercise Date,
unless the plan of merger, consolidation or reorganization provides
otherwise.  The New Exercise Date shall
be determined by the Board in its sole discretion; provided, that the New
Exercise Date shall be before the date of the Company’s proposed sale or
merger.  The Administrator shall notify
each participant in writing, at least ten (10) business days prior to the
New Exercise Date, that the Exercise Date for the participant’s option has been
changed to the New Exercise Date and that the participant’s option shall be
exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10
hereof.  The Plan shall in no event be
construed to restrict the Company’s right to undertake any liquidation,
dissolution, merger, consolidation or other reorganization.

 

19.                                 Amendment or Termination.

 

(a)                                  The Board may at any time and for any reason
terminate or amend the Plan.  Except as
provided in Section 18 hereof, no such termination can affect options
previously granted, provided that an Offering Period may be terminated by the
Board on any Exercise Date if the Board determines that the termination of the
Plan is in the best interests of the Company and its stockholders.  Except as provided in Section 18 hereof,
no amendment may make any change in any option theretofore granted which
adversely affects the rights of any participant.  To the extent necessary to comply with Section 423
of the Code (or any successor rule or provision or any other applicable
law, regulation or stock exchange rule), the Company shall obtain stockholder
approval in such a manner and to such a degree as required.

 

(b)                                 Without stockholder consent and without
regard to whether any participant rights may be considered to have been “adversely
affected,” the Administrator shall be entitled to change the Offering Periods
or Purchase Periods, limit the frequency and/or number of changes in the amount
withheld during an Offering Period, establish the exchange ratio applicable to
amounts withheld in a currency other than U.S. dollars, permit payroll
withholding in excess of the amount designated by a participant in order to
adjust for delays or mistakes in the Company’s processing of properly completed
withholding elections, establish reasonable waiting and adjustment periods
and/or accounting and crediting procedures to ensure that amounts applied
toward the purchase of Common Stock for each participant properly correspond
with amounts withheld from the participant’s Compensation, and establish such
other limitations or procedures as the Administrator determines in its sole
discretion advisable which are consistent with the Plan.

 

7

 

20.                                 Notices.  All notices or other
communications by a participant to the Company under or in connection with the
Plan shall be deemed to have been duly given when received in the form
specified by the Company at the location, or by the person, designated by the
Company for the receipt thereof.

 

21.                                 Conditions Upon Issuance of Shares. 
Shares shall not be issued with respect to an option unless the exercise
of such option and the issuance and delivery of such shares pursuant thereto
shall comply with all applicable provisions of law, domestic or foreign,
including, without limitation, the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, the rules and regulations
promulgated thereunder, and the requirements of any stock exchange or stock
market upon which the shares may then be listed, and shall be further subject
to the approval of counsel for the Company with respect to such compliance.

 

As a condition to the exercise of an option, the
Company may require the person exercising such option to represent and warrant
at the time of any such exercise that the shares are being purchased only for
investment and without any present intention to sell or distribute such shares
if, in the opinion of counsel for the Company, such a representation is
required by any of the aforementioned applicable provisions of law.

 

22.                                 No Rights As An Employee. 
Nothing in the Plan or in any right granted under the Plan shall confer
upon a participant any right to continue in the employ of the Company or any
Designated Subsidiary for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Company or any Designated
Subsidiary or of a participant, which rights are hereby expressly reserved by
each, to terminate his or her employment at any time and for any reason, with
or without cause.

 

23.                                 Term of Plan.  The
Plan, as amended and restated, shall become effective upon the Effective
Date.  It shall continue until terminated
under Section 19 hereof.

 

24.                                 Automatic Transfer to Low Price Offering Period.  To
the extent permitted by any applicable laws, regulations, or stock exchange
rules, if the Fair Market Value of the Common Stock on any Exercise Date in an
Offering Period is lower than the Fair Market Value of the Common Stock on the
Enrollment Date of such Offering Period, then all participants in such Offering
Period shall be automatically withdrawn from such Offering Period immediately
after the exercise of their option on such Exercise Date and automatically
re-enrolled in the immediately following Offering Period as of the first day
thereof.

 

25.                                 Execution.  To record the amendment and
restatement of the Plan by the Board as of the Effective Date, and further
amendment by the Board as of March 11, 2008, the Company has caused its
authorized officer to execute the same.

 

	
   

  	
  INCYTE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/ Patricia A. Schreck

  
	
   

  	
   

  	
   

  
	
   

  	
  Its

  	
   General Counsel

  

 

8

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