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Exhibit 4.10    
    


 
 

VISTA MEDICAL TECHNOLOGIES, INC.
  EMPLOYEE STOCK PURCHASE PLAN    
    



 I. PURPOSE OF THE PLAN  




        This Employee Stock Purchase Plan is intended to promote the interests of Vista Medical Technologies, Inc., a Delaware corporation, by providing eligible
employees with the opportunity to acquire a proprietary interest in the Corporation through participation in a payroll-deduction based employee stock purchase plan designed to qualify under
Section 423 of the Code. 


        Capitalized
terms herein shall have the meanings assigned to such terms in the attached Appendix. 



 II. ADMINISTRATION OF THE PLAN  




        The Plan Administrator shall have full authority to interpret and construe any provision of the Plan and to adopt such rules and regulations for administering the
Plan as it may deem necessary in order to comply with the requirements of Code Section 423. Decisions of the Plan Administrator shall be final and binding on all parties having an interest in
the Plan. 



 III. STOCK SUBJECT TO PLAN  


        A.    The
stock purchasable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares of Common Stock purchased on the open market.
The maximum number of shares of Common Stock which may be issued over the term of the Plan shall not exceed One Hundred Fifty Thousand (150,000) shares. 


        B.    Should
any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and class of securities
issuable under the Plan, (ii) the maximum number and class of securities purchasable per Participant on any one Purchase Date and (iii) the number and class of securities and the price
per share in effect under each outstanding purchase right in order to prevent the dilution or enlargement of benefits thereunder. 


 IV. OFFERING PERIODS  


        A.    Shares
of Common Stock shall be offered for purchase under the Plan through a series of successive offering periods until such time as (i) the maximum number of
shares of Common Stock available for issuance under the Plan shall have been purchased or (ii) the Plan shall have been sooner terminated. 



        B.    The
initial offering period shall commence as of the Effective Date of the Plan and shall continue until March 31, 1999. Thereafter, each successive offering
period shall be of 24 months duration. The next offering period shall commence on the first business day in April 1999, and subsequent offering periods shall commence as designated by
the Plan Administrator. Notwithstanding the above, the Plan Administrator may shorten the duration of any offering period to less than twenty-four (24) months provided that such
action is taken prior to the start date of such offering period. 


        C.    Each
offering period shall be comprised of a series of one or more successive Purchase Intervals. Purchase Intervals shall run from the first business day in April each
year to the last business day in September of the same year and from the first business day in October each year to the last business day in March of the following year. Accordingly, the first
Purchase Interval in 






 




effect
under the initial offering period shall commence at the Effective Time and terminate on the last business day in September 1997. 


        D.    Should
the Fair Market Value per share of Common Stock on any Purchase Date within an offering period be less than the Fair Market Value per share of Common Stock on the
start date of that offering period, then that offering period shall automatically terminate immediately after the purchase of shares of Common Stock on such Purchase Date, and a new offering period
shall commence on the next business day following such Purchase Date. The new offering period shall have a duration of twenty four (24) months, unless a shorter duration is established by the
Plan Administrator within five (5) business days following the start date of that offering period. 


 V. ELIGIBILITY  


        A.    Each
individual who is an Eligible Employee on the start date of any offering period under the Plan may enter that offering period on such start date or on any subsequent
Semi-Annual Entry Date within that offering period, provided he or she remains an Eligible Employee. 


        B.    Each
individual who first becomes an Eligible Employee after the start date of an offering period may enter that offering period on any subsequent Semi-Annual
Entry Date within that offering period on which he or she is an Eligible Employee. 


        C.    The
date an individual enters an offering period shall be designated his or her Entry Date for purposes of that offering period. 



        D.    To
participate in the Plan for a particular offering period, the Eligible Employee must complete the enrollment forms prescribed by the Plan Administrator (including a
stock purchase agreement and a payroll deduction authorization) and file such forms with the Plan Administrator (or its designate) on or before his or her scheduled Entry Date. 


 VI. PAYROLL DEDUCTIONS  


        A.    The
payroll deduction authorized by the Participant for purposes of acquiring shares of Common Stock during an offering period may be any multiple of one percent (1%) of
the Base Salary paid to the Participant during each Purchase Interval within that offering period, up to a maximum of ten percent (10%). The deduction rate so authorized shall continue in effect
throughout the offering period, except to the extent such rate is changed in accordance with the following guidelines: 



        (i)    The
Participant may, at any time during the offering period, reduce his or her rate of payroll deduction to become effective as soon as possible after filing the
appropriate form with the Plan Administrator. The Participant may not, however, effect more than one (1) such reduction per Purchase Interval. 



        (ii)   The
Participant may, prior to the commencement of any new Purchase Interval within the offering period, increase the rate of his or her payroll deduction by filing the
appropriate form with the Plan Administrator. The new rate (which may not exceed the ten percent (10%) maximum) shall become effective on the start date of the first Purchase Interval following the
filing of such form. 




        B.    Payroll
deductions shall begin on the first pay day following the Participant's Entry Date into the offering period and shall (unless sooner terminated by the
Participant) continue through the pay day ending with or immediately prior to the last day of that offering period. The amounts so collected shall be credited to the Participant's book account under
the Plan, but no interest shall be paid on the balance from time to time outstanding in such account. The amounts collected 



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from
the Participant shall not be held in any segregated account or trust fund and may be commingled with the general assets of the Corporation and used for general corporate purposes. 



        C.    Payroll
deductions shall automatically cease upon the termination of the Participant's purchase right in accordance with the provisions of the Plan. 


        D.    The
Participant's acquisition of Common Stock under the Plan on any Purchase Date shall neither limit nor require the Participant's acquisition of Common Stock on any
subsequent Purchase Date, whether within the same or a different offering period. 



 VII. PURCHASE RIGHTS  


        A.    GRANT
OF PURCHASE RIGHT.    A Participant shall be granted a separate purchase right for each offering period in which he or she participates. The purchase
right shall be granted on the Participant's Entry Date into the offering period and shall provide the Participant with the right to purchase shares of Common Stock, in a series of successive
installments over the remainder of such offering period, upon the terms set forth below. The Participant shall execute a stock purchase agreement embodying such terms and such other provisions (not
inconsistent with the Plan) as the Plan Administrator may deem advisable. 



        Under
no circumstances shall purchase rights be granted under the Plan to any Eligible Employee if such individual would, immediately after the grant, own (within the meaning of Code
Section 424(d)) or hold outstanding options or other rights to purchase, stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the
Corporation or any Corporate Affiliate. 


        B.    EXERCISE
OF THE PURCHASE RIGHT.    Each purchase right shall be automatically exercised in installments on each successive Purchase Date within the offering
period, and shares of Common Stock shall accordingly be purchased on behalf of each Participant (other than Participants whose payroll deductions have previously been refunded pursuant to the
Termination of Purchase Right provisions below) on each such Purchase Date. The purchase shall be effected by applying the Participant's payroll deductions for the Purchase Interval ending on such
Purchase Date to the purchase of whole shares of Common Stock at the purchase price in effect for the Participant for that Purchase Date. 


        C.    PURCHASE
PRICE.    The purchase price per share at which Common Stock will be purchased on the Participant's behalf on each Purchase Date within the offering
period shall not be less than eighty-five percent (85%) of the LOWER of (i) the Fair Market Value per share of Common Stock on the Participant's Entry Date into that offering period
or (ii) the Fair Market Value per share of Common Stock on that Purchase Date. 



        D.    NUMBER
OF PURCHASABLE SHARES.    The number of shares of Common Stock purchasable by a Participant on each Purchase Date during the offering period shall be the
number of whole shares
obtained by dividing the amount collected from the Participant through payroll deductions during the Purchase Interval ending with that Purchase Date by the purchase price in effect for the
Participant for that Purchase Date. 


        E.    EXCESS
PAYROLL DEDUCTIONS.    Any payroll deductions not applied to the purchase of shares of Common Stock on any Purchase Date because they are not sufficient
to purchase a whole share of Common Stock shall be held for the purchase of Common Stock on the next Purchase Date. However, any payroll deductions not applied to the purchase of Common Stock by
reason of the limitation on the maximum number of shares purchasable by the Participant on the Purchase Date shall be promptly refunded. 



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        F.     TERMINATION
OF PURCHASE RIGHT.    The following provisions shall govern the termination of outstanding purchase rights: 



        (i)    A
Participant may, at any time prior to the next scheduled Purchase Date in the offering period, terminate his or her outstanding purchase right by filing the
appropriate form with the Plan Administrator (or its designate), and no further payroll deductions shall be collected from the Participant with respect to the terminated purchase right. Any payroll
deductions collected during the Purchase Interval in which such termination occurs shall, at the Participant's election, be immediately refunded or held for the purchase of shares on the next Purchase
Date. If no such election is made at the time such purchase right is terminated, then the payroll deductions collected with respect to the terminated right shall be refunded as soon as possible. 


        (ii)   The
termination of such purchase right shall be irrevocable, and the Participant may not subsequently rejoin the offering period for which the terminated purchase right
was granted. In order to resume participation in any subsequent offering period, such individual must re-enroll in the Plan (by making a timely filing of the prescribed enrollment forms)
on or before his or her scheduled Entry Date into that offering period. 


        (iii)  Should
the Participant cease to remain an Eligible Employee for any reason (including death, disability or change in status) while his or her purchase right remains
outstanding, then that purchase right shall immediately terminate, and all of the Participant's payroll deductions for the Purchase Interval in which the purchase right so terminates shall be
immediately refunded. However, should the Participant cease to remain in active service by reason of an approved unpaid leave of absence, then the Participant shall have the right, exercisable up
until the last business day of the Purchase Interval in which such leave commences, to (a) withdraw all the payroll deductions collected to date on his or her behalf for that Purchase Interval
or (b) have such funds held for the purchase of shares on his or her behalf on the next scheduled Purchase Date. In no event, however, shall any further payroll deductions be collected on the
Participant's behalf during such leave. Upon the Participant's return to active
service, his or her payroll deductions under the Plan shall automatically resume at the rate in effect at the time the leave began, unless the Participant withdraws from the Plan prior to his or her
return. 




        G.    CORPORATE
TRANSACTION.    Each outstanding purchase right shall automatically be exercised, immediately prior to the effective date of any Corporate
Transaction, by applying the payroll deductions of each Participant for the Purchase Interval in which such Corporate Transaction occurs to the purchase of whole shares of Common Stock at a purchase
price per share not less than eighty-five percent (85%) of the LOWER of (i) the Fair Market Value per share of Common Stock on the Participant's Entry Date into the offering period
in which such Corporate Transaction occurs or (ii) the Fair Market Value per share of Common Stock immediately prior to the effective date of such Corporate Transaction. However, the applicable
limitation on the number of shares of Common Stock purchasable per Participant shall continue to apply to any such purchase. 


        The
Corporation shall use its best efforts to provide at least ten (10)-days prior written notice of the occurrence of any Corporate Transaction, and Participants shall,
following the receipt of such notice, have the right to terminate their outstanding purchase rights prior to the effective date of the Corporate Transaction. 


        H.    PRORATION
OF PURCHASE RIGHTS.    Should the total number of shares of Common Stock to be purchased pursuant to outstanding purchase rights on any particular
date exceed the number of shares then available for issuance under the Plan, the Plan Administrator shall make a pro-rata allocation of the available shares on a uniform and
nondiscriminatory basis, 



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and
the payroll deductions of each Participant, to the extent in excess of the aggregate purchase price payable for the Common Stock pro-rated to such individual, shall be refunded. 


        I.     ASSIGNABILITY.    The
purchase right shall be exercisable only by the Participant and shall not be assignable or transferable by the Participant. 



        J.     STOCKHOLDER
RIGHTS.    A Participant shall have no stockholder rights with respect to the shares subject to his or her outstanding purchase right until the
shares are purchased on the Participant's behalf in accordance with the provisions of the Plan and the Participant has become a holder of record of the purchased shares. 


 VIII. ACCRUAL LIMITATIONS  


        A.    No
Participant shall be entitled to accrue rights to acquire Common Stock pursuant to any purchase right outstanding under this Plan if and to the extent such accrual,
when aggregated with (i) rights to purchase Common Stock accrued under any other purchase right granted under this Plan and (ii) similar rights accrued under other employee stock
purchase plans (within the meaning of Code Section 423) of the Corporation or any Corporate Affiliate, would otherwise permit such Participant to purchase more than Twenty-Five
Thousand Dollars ($25,000) worth of stock of the Corporation or any Corporate Affiliate (determined on the basis of the Fair Market Value per share on the date or dates such rights are granted) for
each calendar year such rights are at any time outstanding. 


        B.    For
purposes of applying such accrual limitations to the purchase rights granted under the Plan, the following provisions shall be in effect: 



        (i)    The
right to acquire Common Stock under each outstanding purchase right shall accrue in a series of installments on each successive Purchase Date during the offering
period on which such right remains outstanding. 


        (ii)   No
right to acquire Common Stock under any outstanding purchase right shall accrue to the extent the Participant has already accrued in the same calendar year the right
to acquire Common Stock under one (1) or more other purchase rights at a rate equal to Twenty-Five Thousand Dollars ($25,000) worth of Common Stock (determined on the basis of the
Fair Market Value per share on the date or dates of grant) for each calendar year such rights were at any time outstanding. 




        C.    If
by reason of such accrual limitations, any purchase right of a Participant does not accrue for a particular Purchase Interval, then the payroll deductions which the
Participant made during that Purchase Interval with respect to such purchase right shall be promptly refunded. 


        D.    In
the event there is any conflict between the provisions of this Article and one or more provisions of the Plan or any instrument issued thereunder, the provisions of
this Article shall be controlling. 


 IX. EFFECTIVE DATE AND TERM OF THE PLAN  



        A.    The
Plan shall become effective at the Effective Time, PROVIDED no purchase rights granted under the Plan shall be exercised, and no shares of Common Stock shall be
issued hereunder, until (i) the Plan shall have been approved by the stockholders of the Corporation and (ii) the Corporation shall have complied with all applicable requirements of the
1933 Act (including the registration of the shares of Common Stock issuable under the Plan on a Form S-8 registration statement filed with the Securities and Exchange Commission),
all applicable listing requirements of any stock exchange (or the Nasdaq National Market, if applicable) on which the Common Stock is listed for trading and all other applicable requirements
established by law or 



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regulation.
In the event such stockholder approval is not obtained, or such compliance is not effected, within twelve (12) months after the date on which the Plan is adopted by the Board, the
Plan shall terminate and have no further force or effect, and all sums collected from Participants during the initial offering period hereunder shall be refunded. 


        B.    Unless
sooner terminated by the Board, the Plan shall terminate upon the EARLIEST of (i) the last business day in March 2007, (ii) the date on which
all shares available for issuance under the Plan shall have been sold pursuant to purchase rights exercised under the Plan or (iii) the date on which all purchase rights are exercised in
connection with a Corporate Transaction. No further purchase rights shall be granted or exercised, and no further payroll deductions shall be collected, under the Plan following such termination. 


 X. AMENDMENT OF THE PLAN  




        The Board may alter, amend, suspend or discontinue the Plan at any time to become effective immediately following the close of any Purchase Interval. However, the
Board may not, without the approval of the Corporation's stockholders, (i) materially increase the number of shares of Common Stock issuable under the Plan or the maximum number of shares
purchasable per Participant on any one Purchase Date, except for permissible adjustments in the event of certain changes in the Corporation's capitalization, (ii) alter the purchase price
formula so as to reduce the purchase price payable for the shares of Common Stock purchasable under the Plan or (iii) materially increase the benefits accruing to Participants under the Plan or
materially modify the requirements for eligibility to participate in the Plan. 



 XI. GENERAL PROVISIONS  


        A.    All
costs and expenses incurred in the administration of the Plan shall be paid by the Corporation. 



        B.    Nothing
in the Plan shall confer upon the Participant any right to continue in the employ of the Corporation or any Corporate Affiliate for any period of specific
duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Corporate Affiliate employing such person) or of the Participant, which rights are hereby expressly
reserved by each, to terminate such person's employment at any time for any reason, with or without cause. 


        C.    The
provisions of the Plan shall be governed by the laws of the State of Delaware without resort to that State's conflict-of-laws rules. 



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SCHEDULE A
  
    CORPORATIONS PARTICIPATING IN
  EMPLOYEE STOCK PURCHASE PLAN
  AS OF THE EFFECTIVE TIME
  
    Vista Medical Technologies, Inc.
  
    APPENDIX    
    


        The following definitions shall be in effect under the Plan: 



        A.    BASE
SALARY shall mean the (i) regular base salary paid to a Participant by one or more Participating Companies during such individual's period of participation in
one or more offering periods under the Plan plus (ii) any pre-tax contributions made by the Participant to any Code Section 401(k) salary deferral plan or any Code
Section 125 cafeteria benefit program now or hereafter established by the Corporation or any Corporate Affiliate. The following items of
compensation shall NOT be included in Base Salary: (i) all overtime payments, bonuses, commissions (other than those functioning as base salary equivalents), profit-sharing distributions and
other incentive-type payments and (ii) any and all contributions (other than Code Section 401(k) or Code Section 125 contributions) made on the Participant's behalf by
the Corporation or any Corporate Affiliate under any employee benefit or welfare plan now or hereafter established. 


        B.    BOARD
shall mean the Corporation's Board of Directors. 


        C.    CODE
shall mean the Internal Revenue Code of 1986, as amended. 


        D.    COMMON
STOCK shall mean the Corporation's common stock. 


        E.    CORPORATE
AFFILIATE shall mean any parent or subsidiary corporation of the Corporation (as determined in accordance with Code Section 424), whether now existing or
subsequently established. 


        F.    CORPORATE
TRANSACTION shall mean either of the following stockholder-approved transactions to which the Corporation is a party: 



        (i)    a
merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities are
transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 


        (ii)   the
sale, transfer or other disposition of all or substantially all of the assets of the Corporation in complete liquidation or dissolution of the Corporation. 




        G.    CORPORATION
shall mean Vista Medical Technologies, Inc., a Delaware corporation, and any corporate successor to all or substantially all of the assets or voting
stock of Vista Medical Technologies, Inc. which shall by appropriate action adopt the Plan. 


        H.    EFFECTIVE
TIME shall mean the time at which the Underwriting Agreement is executed and finally priced. Any Corporate Affiliate which becomes a Participating Corporation
after such Effective Time shall designate a subsequent Effective Time with respect to its employee-Participants. 


        I.    ELIGIBLE
EMPLOYEE shall mean any person who is employed by a Participating Corporation on a basis under which he or she is regularly expected to render more than twenty
(20) hours of service per week for more than five (5) months per calendar year for earnings considered wages under Code Section 3401(a). 


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        J.    ENTRY
DATE shall mean the date an Eligible Employee first commences participation in the offering period in effect under the Plan. The earliest Entry Date under the Plan
shall be the Effective Time. 


        K.    FAIR
MARKET VALUE per share of Common Stock on any relevant date shall be determined in accordance with the following provisions: 



        (i)    If
the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the
date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market or any successor system. If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 



        (ii)   If
the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in
question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such
exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such
quotation exists. 


        (iii)  For
purposes of the initial offering period which begins at the Effective Time, the Fair Market Value shall be deemed to be equal to the price per share at which the
Common Stock is sold in the initial public offering pursuant to the Underwriting Agreement. 




        L.    1933
ACT shall mean the Securities Act of 1933, as amended. 


        M.    PARTICIPANT
shall mean any Eligible Employee of a Participating Corporation who is actively participating in the Plan. 


        N.    PARTICIPATING
CORPORATION shall mean the Corporation and such Corporate Affiliate or Affiliates as may be authorized from time to time by the Board to extend the benefits
of the Plan to their Eligible Employees. The Participating Corporations in the Plan as of the Effective Time are listed in attached Schedule A. 


        O.    PLAN
shall mean the Corporation's Employee Stock Purchase Plan, as set forth in this document. 


        P.    PLAN
ADMINISTRATOR shall mean the committee of two (2) or more Board members appointed by the Board to administer the Plan. 



        Q.    PURCHASE
DATE shall mean the last business day of each Purchase Interval. The initial Purchase Date shall be the last business day in August 1997. 


        R.    PURCHASE
INTERVAL shall mean each successive six (6)-month period within the offering period at the end of which there shall be purchased shares of Common Stock on behalf
of each Participant. 


        S.    SEMI-ANNUAL
ENTRY DATE shall mean the first business day in April and October each year on which an Eligible Employee may first enter an offering period. 



        T.    STOCK
EXCHANGE shall mean either the American Stock Exchange or the New York Stock Exchange. 


        U.    UNDERWRITING
AGREEMENT shall mean the agreement between the Corporation and the underwriter or underwriters managing the initial public offering of the Common Stock. 


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QuickLinks



Exhibit 4.10


VISTA MEDICAL TECHNOLOGIES, INC. EMPLOYEE STOCK PURCHASE PLAN

SCHEDULE A CORPORATIONS PARTICIPATING IN EMPLOYEE STOCK PURCHASE PLAN AS OF THE EFFECTIVE TIME Vista Medical Technologies, Inc. APPENDIX