Exhibit
10.1


 





 


 


STOCK
OPTION GRANT CERTIFICATE


 





















 


Grant Date:


 


Type of Option:    Incentive Stock Option


 


Shares Subject to
Option: 
          


 


Exercise Price Per
Share: 
$         


 


Term of
Option:  7 years


 


Shares subject to
issuance under this Option do not become exercisable until the first month
after the grant date, and then become exercisable in equal installments on and
after the dates indicated below:


 


 


	
  [Four year
  period beginning one month after grant date]:

  	
   

  	
  Monthly

  	
   

  
	
  November 19,
  2008

  	
   

  	
  100

  	
  %

  



 


This Option shall
be exercisable throughout the Term as to all Shares for which it has become
exercisable as provided above.


 


In witness
whereof, this Stock Option Grant Certificate has been executed by the Company
by a duly authorized officer as of the date specified hereon.


 


ChromaVision
Medical Systems, Inc.


 


By


 


In the event the Company’s annual financial statements cease to be
publicly available through the Company’s periodic filings under the Securities
Exchange Act of 1934, as amended, the Company will provide grantee with copies
of its annual financial statements at least once per year in accordance with
Section 260.140.46 of the California Corporate Securities Law.


 


Grantee hereby
acknowledges receipt of a copy of the Prospectus containing information about
the Plan, represents that Grantee has read the Prospectus and understands the
terms and provisions of the Plan, and accepts this Option subject to all the
terms and conditions of the Plan and this Stock Option Grant Certificate.
Grantee acknowledges that the grant and exercise of this Option, and the sale
of Shares obtained through the exercise of this Option, may have tax
implications that could result in adverse tax consequences to the Grantee and
that Grantee is not relying on the Company for any tax, financial or legal
advice and will consult a tax adviser prior to such exercise or disposition.




 





 


This Option is designated an incentive stock option under Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”).  If the aggregate fair market value of the
stock on the date of the grant with respect to which incentive stock options
are exercisable for the first time by the Grantee during any calendar year,
under the Plan or any other stock option plan of the Company or a parent or subsidiary,
exceeds $100,000, then the Option, as to the excess, shall be treated as a
nonqualified stock option that does not meet the requirements of Section
422.  If and to the extent that the
Option fails to qualify as an incentive stock option under the Code, the Option
shall remain outstanding according to its terms as a nonqualified stock option.


 


By accepting an incentive stock option under the Plan, Grantee agrees
to notify the Company in writing immediately after he or she makes a
disqualifying disposition (as described in the Code and regulations thereunder)
of any stock acquired pursuant to the exercise of incentive stock options
granted under the Plan.  A disqualifying
disposition is generally any disposition occurring within two years of the date
the incentive stock option was granted or within one year of the date the
incentive stock option was exercised, whichever period ends later.


 





















 


1.             Option
Expiration.  The Option shall
automatically terminate upon the happening of the first of the following
events:


 


(a)     The expiration of the
three-month period after the Grantee ceases to be employed by the Company for
any reason other than as provided below in subparagraphs (b) through (e);


 


(b)     The expiration of the
one-year period after the Grantee ceases to be employed by the Company on
account of the Grantee’s disability (as defined in the Plan);


 


(c)     The expiration of the
one-year period after the Grantee’s employment terminates as a result of death
while employed by the Company or within three months after the Grantee’s
termination of employment as described in subparagraph (a) above;


 


(d)     The date on which the
Grantee ceases to be employed by the Company as a result of a termination by
the Company for cause (as defined in the Plan); or


 


(e)     The expiration of the
three-year period after the Grantee’s employment terminates as a result of
retirement on or after the Grantee’s fifty-fifth birthday and a minimum of five
years of employment or three years of Board service.


 


Notwithstanding the foregoing, in no event may the Option be exercised
after the expiration of the Term of Option specified on the reverse side.  Any portion of the Option that is not vested
at the time the Grantee ceases to be employed by the Company shall immediately
terminate.  In the event a Grantee ceases
to be employed by the Company as a result of a termination by the Company for
cause, the Grantee shall automatically forfeit all shares underlying any
exercised portion of an Option for which the Company has not yet delivered the
share certificates upon refund by the Company of the exercise price paid by the
Grantee for such shares.


 


2.       Exercise Procedures.


 


(a)     Subject to the provisions
of this Stock Option Grant Certificate and the Plan, the Grantee may exercise
part or all of the vested Option by giving the Company written notice of intent
to exercise in the manner provided in Paragraph 11 below, specifying the number
of Shares as to which the Option is to be exercised.  On the delivery date, the Grantee shall pay
the exercise price (i) in cash, (ii) with the prior consent of the Committee,
by delivering Shares of the Company (duly endorsed for transfer or accompanied
by stock powers signed in blank) which shall be valued at their fair market
value on the date of delivery, or (iii) by such other method as the Committee
may approve, including payment through a broker in accordance with procedures
permitted by Regulation T of the Federal Reserve Board.  The Board may impose from time to time such limitations
as it deems appropriate on the use of Shares of the Company to exercise the
Option.


 


(b)     The obligation of the
Company to deliver Shares upon exercise of the Option shall be subject to all
applicable laws, rules, and regulations and such approvals by governmental
agencies as may be deemed appropriate by the Board, including such actions as
Company counsel shall deem necessary or appropriate to comply with relevant
securities laws and regulations.  The
Company may require that the Grantee (or other person exercising the Option
after the Grantee’s death) represent that the Grantee is purchasing Shares for
the Grantee’s own account and not with a view to or for sale in connection with
any distribution of the Shares, or such other representation as the Board deems
appropriate.  All obligations of the
Company under this Stock Option Grant Certificate shall be subject to the
rights of the Company as set forth in the Plan to withhold amounts required to
be withheld for any taxes, if applicable. 
Subject to Committee approval, the Grantee may elect to satisfy any
income tax withholding obligation of the Company with respect to the Option by
having Shares withheld with a fair market value equal to the federal (including
FICA), state and local tax liabilities with respect to the exercise of the Option,
based on the minimum statutory tax rates applicable to supplemental wages.


 


3.       Change of Control.  In the event of a “Change of Control,” all of
the unvested portion of the Option shall vest immediately.  “Change in Control” is defined to mean the
issuance, sale or transfer (including a transfer as a result of death,
disability, operation of law or otherwise) in a single transaction or group of
related transactions to any entity, person or group (other than Safeguard
Scientifics, Inc. and/or its affiliates) of the beneficial ownership of newly
issued, outstanding or treasury shares of the capital stock of the Company
having 50% or more of the combined voting power of the Company’s then
outstanding securities entitled to vote for at least a majority of the
authorized number of directors of the Company, or any merger, consolidation,
sale of all or substantially all of the assets or other comparable transaction
as a result of which all or substantially all of the assets and business of the
Company are acquired directly or indirectly by another entity which prior to
the acquisition was not an affiliate of the Company (as defined in the
regulations of the Securities and Exchange Commission under the Securities Act
of 1933), other than any such merger, consolidation, sale or other transaction
which results in the Company’s voting securities outstanding immediately before
the transaction continuing to represent (either by remaining outstanding or by
being converted into voting securities of the Company or the person that, as a
result of the transaction, controls, directly or indirectly, the Company or
owns, directly or indirectly, all or substantially all of the Company’s assets
or otherwise succeeds to the business of the Company (the Company or such
person, the “Successor Entity”)) directly or indirectly, at least 50% of the
combined voting power of the Successor Entity’s outstanding voting securities
immediately after the transaction.  Group
shall have the same meaning as in Section 13(d) of the Securities Exchange Act
of 1934, and “affiliate” shall have the same meaning as in Rule 405 of the
Securities Exchange Commission adopted under the Securities Act of 1933.


 


4.       Restrictions on
Exercise.  Only the Grantee may
exercise the Option during the Grantee’s lifetime.  After the Grantee’s death, the Option shall
be exercisable (subject to the limitations specified in the Plan) solely by the
legal representatives of the Grantee, or by the person who acquires the right
to exercise the Option by will or by the laws of descent and distribution, to
the extent that the Option is exercisable pursuant to this Stock Option Grant
Certificate. Notwithstanding the foregoing, the Committee may provide, at or
after grant, that a Grantee may transfer non-qualified stock options pursuant
to a domestic relations order or to family members or other persons or entities
on such terms as the Committee may determine.


 


5.       Grant Subject to Plan
Provisions.  This grant is made
pursuant to the Plan, the terms of which are incorporated herein by reference,
and in all respects shall be interpreted in accordance with the Plan.  The grant and exercise of the Option are
subject to the provisions of the Plan and to interpretations, regulations and
determinations concerning the Plan established from time to time by the
Committee in accordance with the provisions of the Plan, including, but not
limited to, provisions pertaining to (i) rights and obligations with respect to
withholding taxes, (ii) the registration, qualification or listing of the
Shares, (iii) capital or other changes of the Company, and (iv) other
requirements of applicable law.  The
Committee shall have the authority to interpret and construe the Option
pursuant to the terms of the Plan, and its decisions shall be conclusive as to
any questions arising hereunder.


6.       No Employment Rights.  The grant of the Option shall not confer upon
the Grantee any right to be retained by or in the employ of the Company and
shall not interfere in any way with the right of the Company to terminate the
Grantee’s employment or service at any time. 
The right of the Company to terminate at will the Grantee’s employment
or service at any time for any reason is specifically reserved.  No policies, procedures or statements of any
nature by or on behalf of the Company (whether written or oral, and whether or
not contained in any formal employee manual or handbook) shall be construed to
modify this Grant Letter or to create express or implied obligations to the
Grantee of any nature.


 


7.       No Stockholder Rights.  Neither the Grantee, nor any person entitled
to exercise the Grantee’s rights in the event of the Grantee’s death, shall
have any of the rights and privileges of a stockholder with respect to the
Shares subject to the Option until certificates for Shares have been issued
upon the exercise of the Option.


 


8.       No Disclosure.  The Grantee acknowledges that the Company has
no duty to disclose to the Grantee any material information regarding the
business of the Company or affecting the value of the Shares before or at the
time of a termination of the Grantee’s employment, including without limitation
any plans regarding a public offering or merger involving the Company.


 


9.       Assignment and
Transfers.  The rights and interests
of the Grantee under this Stock Option Grant Certificate may not be sold,
assigned, encumbered or otherwise transferred except, in the event of the death
of the Grantee, by will or by the laws of descent and distribution.  In the event of any attempt by the Grantee to
alienate, assign, pledge, hypothecate, or otherwise dispose of the Option or
any right hereunder, except as provided for in this Stock Option Grant
Certificate, or in the event of the levy or any attachment, execution or
similar process upon the rights or interests hereby conferred, the Company may
terminate the Option by notice to the Grantee, and the Option and all rights
hereunder shall thereupon become null and void. 
The rights and protections of the Company hereunder shall extend to any
successors or assigns of the Company and to the Company’s parents,
subsidiaries, and affiliates.  This Stock
Option Grant Certificate may be assigned by the Company without the Grantee’s
consent.


 


10.     Applicable Law.  The validity, construction, interpretation
and effect of this instrument shall be governed by and determined in accordance
with the laws of the State of Delaware.


 


11.     Notice.  Any notice to the Company provided for in
this instrument shall be addressed to the Company in care of the Chief
Financial Officer at the Company’s headquarters and any notice to the Grantee
shall be addressed to such Grantee at the current address shown on the payroll
of the Company, or to such other address as the Grantee may designate to the
Company in writing.  Any notice shall be
delivered by hand, sent by telecopy or enclosed in a properly sealed envelope
addressed as stated above, registered and deposited, postage prepaid, in a post
office regularly maintained by the United States Postal Service.


 


12.     Antidilution.  If the outstanding shares of Common Stock of
the Company are changed into a different number or kind of shares of Company
stock (I) by reason of a stock dividend, recapitalization , stock split or
reverse stock split, (ii) by reason of a merger, reorganization or
consolidation in which the outstanding shares of Common Stock of the Company
are converted into a different number or kind of shares of Company stock (iii)
by  reason of a reclassification, change
in par value or (iv) by reason of any other extraordinary or usual event
affecting the outstanding Common Stock as a class without the Company’s receipt
of consideration, or if the value of outstanding shares of Company’s Common
Stock I substantially reduced as a result of a spin-off or the Company’s
payment of an extraordinary dividend or distribution, then unless such event
would change results in the termination of this Option, the Company shall make
an appropriate and proportionate adjustment in the number and class shares
subject in this Option.  If the
outstanding shares of Common Stock of the Company are converted into or
exchanged for cash, property or securities not issued by the Company as a
result of a reorganization, merger, consolidation or sale of assets of the
Company, then, unless provision is made in writing in connection with such
transaction for the assumption of the Option or the substitution for the Option
of a new option covering the securities of a successor entity, or a parent or
subsidiary thereof, with appropriate adjustments as to the number and kind of
shares and prices, this Option shall become exercisable to purchase, in lieu of
the Shares subject hereto, the cash, property of securities that would have
been received by the Grantee with respect to the Shares then subject to this
Option if this Option has been exercised immediately before the consummation of
such transaction.  Any fractional shares
resulting from any such adjustment shall be eliminated by rounding any portion
of a share equal to .5 or greater up, and any portion of a share equal to less
than .5 down, in each case to the nearest whole number.