For clarity, the following are a few terms that you may or may not be familiar with:
Hacker: A person who learns about technology to enable him/her to write a better code, build better machines, or to employ it in his/her profession or hobby.
Cracker: This is a person who learns about technology for the sole purpose of criminal or border-line criminal activity. A cracker is never viewed as one of the good guys, unless it's by the other crackers. When a system is attacked, a cracker's intent is to steal, "own", destroy, or spy.
Owned: This refers to the state of a machine after a cracker has successfully penetrated your defences and has placed a code to listen, steal, spy, or destroy your box.
Exploit: This is a vulnerability in software that can be used for breaking security or attacking an Internet host over the network. The Ping O' Death is a famous exploit.
More grammatically, it's a program that exploits an exploit.