Document:

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Exhibit 10.1

DESCRIPTION OF THE 1996 STOCK OPTION PLAN

AS LAST AMENDED AND RESTATED JULY 2005

     Generally: Cardiogenesis’ Stock Option Plan (the “Option Plan”) was originally approved by
the Board of Directors and the shareholders in April 1996 and was last amended and restated in July
2005. The total number of shares currently reserved for issuance under the Option Plan is
11,100,000 shares. The original term of the Option Plan expires on March 31, 2006 . However, in
July 2005 the shareholders approved an extension of the term of the Option Plan for an additional
nine (9) years, which extended the term of the Option Plan through March 31, 2015.

     Options granted under the Option Plan may be either “incentive stock options” (ISOs), as
defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) or
non-statutory options (NSOs).

     The Option Plan is not qualified under Section 401(a) of the Code and is not subject to the
Employee Retirement Income Security Act of 1974 (“ERISA”).

     Purpose of the Option Plan: The purposes of the Option Plan are to attract and retain the
best available personnel for positions of substantial responsibility, to provide additional
incentive to employees and consultants of Cardiogenesis and to promote the success of
Cardiogenesis’ business.

     Administration of the Option Plan: The Option Plan may be administered by the Board of
Directors of Cardiogenesis or by one or more Committees appointed by the Board of Directors (the
“Administrator”). The Administrator has full power to select the individuals to whom Options will
be granted from among the officers, directors, consultants or other employees eligible for grants,
to make any combination of grants to any participant and to determine the specific terms of each
grant, subject to the provisions of the Option Plan.

     The interpretation of any provision of the Option Plan by the Administrator shall be final and
conclusive. Members of the Board of Directors or its Committee receive no additional compensation
for their services as Administrator of the Option Plan.

     Eligibility: The Option Plan provides that Options may be granted to employees and
consultants (including employees, consultants and directors of Cardiogenesis and its majority-owned
subsidiaries). ISOs may be granted only to employees (including employees of Cardiogenesis and its
majority-owned subsidiaries). Outside directors are excluded from participation in the Option
Plan.

     Stock Options: The Option Plan permits the granting of stock options that are intended to
qualify as either ISOs or NSOs. In the case of ISOs, the option exercise price for each share shall
not be less than 100% of fair market value of a share of Common Stock on the date of grant of such
option. In the case of NSOs, the option exercise price for each share covered shall be determined
by the Administrator, but shall be no less than 100% of the fair market value per share on the date
of grant. The fair market value of the Common Stock shall be the closing price as of the date
prior to the date of grant as reported by the NASDAQ National Market System or other stock
exchange. The term of each option will be fixed by the Administrator but may not exceed ten years
from the date of grant for ISOs. The Administrator will determine the time or times that each
option may be exercised. No employee may be granted an Option for more than 300,000 Shares in any
fiscal year; provided however that in connection with initial employment an employee may be granted
up to 600,000 additional shares.

     The exercise price of Options granted under the Option Plan must be paid in full by cash,
check, shares of Cardiogenesis (which, in the case of shares acquired upon exercise of an Option
either have been owned by the Optionee for more than six months on the date of surrender or were
not acquired, directly or indirectly, from Cardiogenesis and which have a fair market value on the
exercise date equal to the aggregate exercise price of the shares as to which said Option shall be
exercised) or promissory note. The

 

 

Administrator may authorize as payment the retention of shares having a fair market value on
the date of exercise equal to the exercise price for the total number of shares as to which the
Option is exercised or it may authorize delivery of a properly executed exercise notice together
with irrevocable instructions to a broker to promptly deliver to Cardiogenesis the amount of sale
or loan proceeds required to pay the exercise price. The Administrator may also authorize payment
by any combination of the foregoing methods. For any ISO, the form of payment permitted will be
stated on the notice of grant of the Option.

     In the event of termination of employment or of an Optionee’s consultancy for any reason,
including retirement, an Option may thereafter be exercised (to the extent it was exercisable), for
a period of ninety days, subject to the stated term of the Option. If an Optionee’s employment or
consultancy is terminated by reason of the Optionee’s death or disability, the Option will in
general be exercisable for twelve (12) months following death, subject to the stated term of the
Option.

     To qualify as ISOs, Options must meet additional federal income tax requirements. Under
current law these requirements include limits on the value of ISOs that may become first
exercisable annually with respect to any Optionee, and a shorter exercise period and a higher
minimum exercise price in the case of certain large shareholders.

     Stock Purchase Rights: The Option Plan permits Cardiogenesis to grant stock purchase rights
to purchase Common Stock of Cardiogenesis (“Stock Purchase Rights”) either alone, in addition to,
or in tandem with other awards under the Option Plan and/or cash awards made outside the Option
Plan. Upon the granting of a Stock Purchase Right under the Option Plan, the offeree shall be
advised in writing of the terms, conditions, and restrictions related to the offer, including the
number of shares of Common Stock that the offeree shall be entitled to purchase, the price to be
paid and the time within which the offeree must accept such offer (which shall in no event exceed
six (6) months from the date upon which the Administrators made the determination to grant the
Stock Purchase Right), the offer shall be acceptable by execution of a restricted stock purchase
agreement between Cardiogenesis and the offeree.

     Unless the Administrator of the Option Plan determines otherwise, the restricted stock
purchase agreement shall grant Cardiogenesis a repurchase option exercisable upon the voluntary or
involuntary termination of the purchaser’s employment or consulting relationship with Cardiogenesis
for any reason (including death or disability). The purchase price for shares repurchased pursuant
to the restricted stock purchase agreement shall be the original price paid by the purchaser and
may be paid by cancellation of any indebtedness of the purchase to Cardiogenesis. The repurchase
option shall lapse at such rate as the Administrator may determine. The restricted stock purchase
agreement shall contain such other terms, provisions and conditions not inconsistent with the
Option Plan as may be determined by the Administrator, and such provisions need not be the same
with respect to each purchaser. Upon exercise of a Stock Purchase Right, the purchaser shall have
rights equivalent to those of a shareholder of Cardiogenesis. As of the date of this proxy
statement, no Stock Purchase Rights have been granted under the Option Plan.

     Adjustments for Stock Dividends, Mergers etc.: The Administrator is authorized to make
appropriate adjustments in connection with outstanding Options or Stock Purchase Rights to reflect
stock dividends, stock splits and similar events. In the event of a merger, liquidation or similar
event, the Administrator in its discretion may provide for substitution or adjustments in, or may
accelerate or adjust such Options or Stock Purchase Rights.

     Amendment and Termination: The Board of Directors may amend, alter, suspend or discontinue
the Option Plan at any time, but such amendment, alteration, suspension or discontinuation shall
not impair any Options or Stock Purchase Rights then outstanding under the Option Plan without the
participant’s consent. Additionally, no stock option shall be issued or repriced with an exercise
price less than 100% of the fair market value on the date of its issuance without the approval of a
majority of the shares present and entitled to vote at a duly convened meeting of shareholders of
Cardiogenesis.exv10w2

 

Exhibit 10.2

DESCRIPTION OF THE 1996 DIRECTOR STOCK OPTION PLAN

AS LAST AMENDED AND RESTATED JULY 2005

Generally: Cardiogenesis’ Director Stock Option Plan (the “Director Plan”) was originally approved
by the Board of Directors and shareholders in April 1996 and was last amended and restated in July
2005. The total number of shares currently reserved for issuance under the Director Plan is
1,025,000 shares. The original term of the Director Plan expires on or about March 31, 2006.
However, in July 2005 the shareholders approved an extension of the term of the Director Plan for
an additional nine (9) years, which extended the term of the Director Plan through March 31, 2015.

The Director Plan is not qualified under Section 401(a) of the Code and is not subject to the
Employee Retirement Income Security Act of 1974 (“ERISA”).

Purpose: The purposes of the Director Plan are to attract and retain the best available individuals
to serve as Directors of the Company and to encourage their continued service on the Board.

Administration: Generally, the Director Plan will be administered by the Board. With respect to
First Option grants and Subsequent Option grants, the Board has no discretion to determine which
Directors will be granted Options, to determine the number of shares subject to Options, to
determine the exercise price of the Options or to determine any terms of such Options.

The interpretation of any provision of the Director Plan by the Administrator shall be final and
binding. Members of the Board receive no additional compensation for their services in
administering the Director Plan.

Eligibility: Options may be granted only to Directors who are not employees of the Company.

Directors’ Options: The Director Plan provides for First Option grants of 22,500 shares to each
Director upon his election to the Board of Directors and Subsequent Option grants of 7,500 shares
upon his re-election each year (provided that such re-election is at least six (6) months after the
date of election to the Board of Directors). The option term shall be ten years, and shall be
exercisable while such person remains a Director. The exercise price shall be 100% of fair market
value on the date of grant. The fair market value of the Common Stock shall be the closing price as
of the date prior to the date of grant as reported by the NASDAQ National Market or other stock
exchange. Stock subject to a First Option shall vest as to one-thirty-sixth of the Shares on a
monthly basis from the date of grant of such Option for a period of thirty-six months. Stock
subject to a Subsequent Option shall vest as to one-twelfth of the Shares from the date of grant of
such Option for a period of twelve months. If the Optionee ceases to serve as a Director for any
reason, vesting shall cease as of the date of such termination.

Purchase Price; Payment: The exercise price of Options granted under the Director Plan must be paid
in full by cash, check, Shares of the Company (which, in the case of Shares acquired upon exercise
of an Option either have been owned by the Optionee for more than six months on the date of
surrender or were not acquired, directly or indirectly, from the Company and which have a fair
market value on the exercise date equal to the aggregate exercise price of the Shares as to which
said Option shall be exercised) or promissory note. The Administrator may authorize as payment the
retention of Shares having a fair market value on the date of exercise equal to the exercise price
for the total number of Shares as to which the Option is exercised or it may authorize delivery of
a properly executed exercise notice together with irrevocable instructions to a broker to promptly
deliver to the Company the amount of sale or loan proceeds required to pay the exercise price. The
Administrator may also authorize payment by any combination of the foregoing methods.

Termination: In the event of termination of status as a Director, the Option may thereafter be
exercised (to the extent it was exercisable), for a period of sixty (60) days, subject to the
stated term of the Option. If an

 

 

Optionee’s status as a Director is terminated by reason of the death or disability, the Option will
in general be exercisable for twelve (12) months following death, subject to the stated term of the
Option. Except as otherwise designated by the Board, Options are not transferable by the Optionee
other than by will or the laws of descent or distribution, and each option is exercisable during
the lifetime of the Director only by such Director.

Adjustments for Stock Dividends, Mergers, Liquidations, etc.: The Board is authorized to make
appropriate adjustments in connection with outstanding Options to reflect stock dividends, stock
splits and similar events. In the event of a liquidation or dissolution, to the extent an Option
has not been previously exercised, it shall terminate. In the event of the merger or sale of
substantially all of the assets of the Company, the Options shall be substituted or assumed by the
successor corporation. If substitution or assumption is not possible, the Options shall be fully
vested and exercisable, including as to shares as to which would not otherwise be exercisable, for
a period of 30 days. To the extent such Options are not exercised within such period, such Options
shall terminate.

Amendment and Termination: The Board may amend, alter, suspend or discontinue the Director Plan at
any time, but such amendment, alteration, suspension or discontinuation shall not impair any rights
then outstanding under the Director Plan without the participant’s consent. Additionally, no stock
option shall be issued or repriced with an exercise price less than 100% of the fair market value
on the date of its issuance without the approval of a majority of the shares present and entitled
to vote at a duly convened meeting of shareholders of Cardiogenesis.

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