Document:

exv10w1

 

Exhibit 10.1

VISICU, INC.

EQUITY INCENTIVE PLAN

1. Establishment, Purpose and Types of Awards

     VISICU, INC., a Delaware corporation (the “Company”), established and maintains the VISICU,
INC. 1998 STOCK OPTION PLAN (as amended and restated on January 23, 2004) (the “Prior Plan”) which
was amended and restated in its entirety on April 28, 2005, and was amended on October 27, 2005 to
be known hereafter as the VISICU, INC. EQUITY INCENTIVE PLAN (the “Plan”). The purpose of the Plan
is to promote the long-term growth and profitability of the Company by (i) providing key people
with incentives to improve stockholder value and to contribute to the growth and financial success
of the Company through their future services, and (ii) enabling the Company to attract, retain and
reward the best-available persons. This Plan is a continuation, and amendment and restatement, of
the Prior Plan, the provisions of which shall continue to control with respect to any options or
stock awards outstanding thereunder to the extent necessary to avoid establishment of a new
measurement date for financial accounting purposes and to preserve the status of any options that
are intended to qualify as “ incentive stock options” within the meaning of Section 422 of the
Internal Revenue Code.

     The Plan permits the granting of stock options (including incentive stock options qualifying
under Code section 422 and nonstatutory stock options), stock appreciation rights, restricted or
unrestricted stock awards, phantom stock, performance awards, other stock-based awards, or any
combination of the foregoing.

2. Definitions

     Under this Plan, except where the context otherwise indicates, the following definitions
apply:

     (a) “Administrator” means the Board or the committee(s) or officer(s) appointed by the
Board that have authority to administer the Plan as provided in Section 3 hereof.

     (b) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, the Company (including, but not limited to,
joint ventures, limited liability companies, and partnerships). For this purpose, “control”
shall mean ownership of 50% or more of the total combined voting power or value of all
classes of stock or interests of the entity.

     (c) “Award” means any stock option, stock appreciation right, stock award, phantom
stock award, performance award, or other stock-based award.

     (d) “Board” means the Board of Directors of the Company.

     (e) “Change in Control” means: (i) the acquisition (other than from the Company) in one
or more transactions by any Person, as defined in this Section 2(e), of the beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of
1934, as amended) of 50% or more of (A) the then outstanding shares of the securities of the
Company, or (B) the combined voting power of the then outstanding securities of the Company
entitled to vote generally in the election of directors (the “Company Voting Stock”); (ii)
the closing of a sale or other conveyance of all or substantially all of the assets of the
Company; or (iii) the effective time of any merger, share exchange, consolidation, or other
business combination involving the Company if immediately after such transaction persons who
hold a majority of the outstanding voting securities entitled to vote generally in the
election of directors of the surviving entity (or the entity owning 100% of such surviving
entity) are not persons who, immediately prior to such transaction, held the Company Voting
Stock; provided, however, that a Change in Control shall not include a public
offering of capital stock of the Company, and provided, further, that for
purposes of any Award or subplan that constitutes a “nonqualified deferred compensation
plan,” within the meaning of Code section 409A, the Administrator, in its discretion, may
specify a different definition of Change in Control in order to comply with the provisions of
Code section 409A.

 

 

     For purposes of this Section 2(e), a “Person” means any individual, entity or group
within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended, other than: employee benefit plans sponsored or maintained by the Company and by
entities controlled by the Company or an underwriter of the Common Stock in a registered
public offering.

     (f) “Code” means the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder.

     (g) “Common Stock” means shares of common stock of the Company, par value of $0.0001
per share.

     (h) “Fair Market Value” means, with respect to a share of the Company’s Common Stock
for any purpose on a particular date, the value determined by the Administrator in good
faith. However, if the Common Stock is registered under Section 12(b) or 12(g) of the
Securities Exchange Act of 1934, as amended, and listed for trading on a national exchange
or market, “Fair Market Value” means, as applicable, (i) either the closing price or the
average of the high and low sale price on the relevant date, as determined in the
Administrator’s discretion, quoted on the New York Stock Exchange, the American Stock
Exchange, or the Nasdaq National Market; (ii) the last sale price on the relevant date
quoted on the Nasdaq SmallCap Market; (iii) the average of the high bid and low asked prices
on the relevant date quoted on the Nasdaq OTC Bulletin Board Service or by the National
Quotation Bureau, Inc. or a comparable service as determined in the Administrator’s
discretion; or (iv) if the Common Stock is not quoted by any of the above, the average of
the closing bid and asked prices on the relevant date furnished by a professional market
maker for the Common Stock, or by such other source, selected by the Administrator. If no
public trading of the Common Stock occurs on the relevant date but the shares are so listed,
then Fair Market Value shall be determined as of the next preceding date on which trading of
the Common Stock does occur. For all purposes under this Plan, the term “relevant date” as
used in this Section 2(h) means either the date as of which Fair Market Value is to be
determined or the next preceding date on which public trading of the Common Stock occurs, as
determined in the Administrator’s discretion.

     (i) “Grant Agreement” means a written document memorializing the terms and conditions
of an Award granted pursuant to the Plan and which shall incorporate the terms of the Plan.

3. Administration

     (a) Administration of the Plan. The Plan shall be administered by the Board or by such
committee or committees as may be appointed by the Board from time to time. To the extent
allowed by applicable state law, the Board by resolution may authorize an officer or
officers to grant Awards (other than Stock Awards) to other officers and employees of the
Company and its Affiliates, and, to the extent of such authorization, such officer or
officers shall be the Administrator.

     (b) Powers of the Administrator. The Administrator shall have all the powers vested in
it by the terms of the Plan, such powers to include authority, in its sole and absolute
discretion, to grant Awards under the Plan, prescribe Grant Agreements evidencing such
Awards and establish programs for granting Awards.

     The Administrator shall have full power and authority to take all other actions
necessary to carry out the purpose and intent of the Plan, including, but not limited to,
the authority to: (i) determine the eligible persons to whom, and the time or times at
which Awards shall be granted; (ii) determine the types of Awards to be granted; (iii)
determine the number of shares to be covered by or used for reference purposes for each
Award; (iv) impose such terms, limitations, restrictions and conditions upon any such Award
as the Administrator shall deem appropriate; (v) modify, amend, extend or renew outstanding
Awards, or accept the surrender of outstanding Awards and substitute new Awards (provided
however, that, except as provided in Section 6 or 7(d) of the Plan, any modification that
would materially adversely affect any outstanding Award shall not be made without the
consent of the holder); (vi) accelerate or otherwise change the time in which an Award may
be exercised or becomes payable and to waive or accelerate the lapse, in whole or in part,
of any restriction or condition with respect to

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such Award, including, but not limited to, any restriction or condition with respect to
the vesting or exercisability of an Award following termination of any grantee’s employment
or other relationship with the Company; (vii) establish objectives and conditions, if any,
for earning Awards and determining whether Awards will be paid with respect to a performance
period; and (viii) for any purpose, including but not limited to, qualifying for preferred
tax treatment under foreign tax laws or otherwise complying with the regulatory requirements
of local or foreign jurisdictions, to establish, amend, modify, administer or terminate
sub-plans, and prescribe, amend and rescind rules and regulations relating to such
sub-plans.

     The Administrator shall have full power and authority, in its sole and absolute
discretion, to administer, construe and interpret the Plan, Grant Agreements and all other
documents relevant to the Plan and Awards issued thereunder, to establish, amend, rescind
and interpret such rules, regulations, agreements, guidelines and instruments for the
administration of the Plan and for the conduct of its business as the Administrator deems
necessary or advisable, and to correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in any Award in the manner and to the extent the Administrator
shall deem it desirable to carry it into effect.

     (c) Non-Uniform Determinations. The Administrator’s determinations under the Plan
(including without limitation, determinations of the persons to receive Awards, the form,
amount and timing of such Awards, the terms and provisions of such Awards and the Grant
Agreements evidencing such Awards) need not be uniform and may be made by the Administrator
selectively among persons who receive, or are eligible to receive, Awards under the Plan,
whether or not such persons are similarly situated.

     (d) Limited Liability. To the maximum extent permitted by law, no member of the
Administrator shall be liable for any action taken or decision made in good faith relating
to the Plan or any Award thereunder.

     (e) Indemnification. To the maximum extent permitted by law and by the Company’s
charter and by-laws, the members of the Administrator shall be indemnified by the Company in
respect of all their activities under the Plan.

     (f) Effect of Administrator’s Decision. All actions taken and decisions and
determinations made by the Administrator on all matters relating to the Plan pursuant to the
powers vested in it hereunder shall be in the Administrator’s sole and absolute discretion
and shall be conclusive and binding on all parties concerned, including the Company, its
stockholders, any participants in the Plan and any other employee, consultant, or director
of the Company, and their respective successors in interest.

4. Shares Available for the Plan; Maximum Awards

     Subject to adjustments as provided in Section 7(d) of the Plan, the shares of Common Stock
that may be issued with respect to Awards granted under the Plan in each calendar year during any
part of which the Plan is in effect shall not exceed two percent (2%) of the total shares of Common
Stock outstanding on the first day of such year, plus the number of shares available for Awards in
the previous calendar year that were not awarded under the Plan; provided, however,
that no more than an aggregate of 7,500,000 shares of Common Stock may be issued pursuant to
incentive stock options intended to qualify under Code section 422. The Company shall reserve such
number of shares for Awards under the Plan, subject to adjustments as provided in Section 7(d) of
the Plan.

     The maximum number of shares of Common Stock that may be issued with respect to Awards granted
under the Plan shall be increased by the number of shares of Common Stock available for issuance
under the Prior Plan, as of the effective date of the Plan. If any Award, or portion of an Award,
under the Plan or Prior Plan expires or terminates unexercised, becomes unexercisable, is settled
in cash without delivery of shares of Common Stock, or is forfeited or otherwise terminated,
surrendered or canceled as to any shares, or if any shares of Common Stock are repurchased by or
surrendered to the Company in connection with any Award (whether or not such surrendered shares
were acquired pursuant to any Award), or if any shares are withheld by

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the Company, the shares subject to such Award and the repurchased, surrendered and withheld
shares shall thereafter be available for further Awards under the Plan; provided, however, that any
such shares that are surrendered to or repurchased or withheld by the Company in connection with
any Award or that are otherwise forfeited after issuance shall not be available for purchase
pursuant to incentive stock options intended to qualify under Code section 422.

     Subject to adjustments as provided in Section 7(d) of the Plan, the maximum number of shares
of Common Stock subject to Awards of any combination that may be granted during any one fiscal year
of the Company to any one individual under this Plan shall be limited to 1,000,000 shares;
provided, however, that such maximum number shall be 1,500,000 shares with respect
to any individual during the first fiscal year that the individual is employed with the Company or
an Affiliate. Such per-individual limit shall not be adjusted to effect a restoration of shares of
Common Stock with respect to which the related Award is terminated, surrendered or canceled.

5. Participation

     Participation in the Plan shall be open to all employees, officers, and directors of, and
other individuals providing bona fide services to or for, the Company, or of any Affiliate of the
Company, as may be selected by the Administrator from time to time. The Administrator may also
grant Awards to individuals in connection with hiring, retention or otherwise, prior to the date
the individual first performs services for the Company or an Affiliate, provided that such Awards
shall not become vested or exercisable, and no shares shall be issued to such individual, prior to
the date the individual first commences performance of such services.

6. Awards

     The Administrator, in its sole discretion, establishes the terms of all Awards granted under
the Plan. Awards may be granted individually or in tandem with other types of Awards, concurrently
with or with respect to outstanding Awards. All Awards are subject to the terms and conditions
provided in the Grant Agreement. The Administrator may permit or require a recipient of an Award
to defer such individual’s receipt of the payment of cash or the delivery of Common Stock that
would otherwise be due to such individual by virtue of the exercise of, payment of, or lapse or
waiver of restrictions respecting, any Award. If any such payment deferral is required or
permitted, the Administrator shall, in its sole discretion, establish rules and procedures for such
payment deferrals.

     (a) Stock Options. The Administrator may from time to time grant to eligible
participants Awards of incentive stock options as that term is defined in Code section 422
or nonstatutory stock options; provided, however, that Awards of incentive
stock options shall be limited to employees of the Company or of any current or hereafter
existing “parent corporation” or “subsidiary corporation,” as defined in Code sections
424(e) and (f), respectively, of the Company and any other individuals who are eligible to
receive incentive stock options under the provisions of Code section 422. Options intended
to qualify as incentive stock options under Code section 422 must have an exercise price at
least equal to Fair Market Value as of the date of grant, but nonstatutory stock options may
be granted with an exercise price less than Fair Market Value. No stock option shall be an
incentive stock option unless so designated by the Administrator at the time of grant or in
the Grant Agreement evidencing such stock option.

     (b) Stock Appreciation Rights. The Administrator may from time to time grant to
eligible participants Awards of Stock Appreciation Rights (“SAR”). An SAR entitles the
grantee to receive, subject to the provisions of the Plan and the Grant Agreement, a payment
having an aggregate value equal to the product of (i) the excess of (A) the Fair Market
Value on the exercise date of one share of Common Stock over (B) the base price per share
specified in the Grant Agreement, times (ii) the number of shares specified by the SAR, or
portion thereof, which is exercised. The base price per share specified in the Grant
Agreement shall not be less than the lower of the Fair Market Value on the grant date or the
exercise price of any tandem stock option Award to which the SAR is related. Payment by the
Company of the amount receivable upon any exercise of an SAR may be made by the delivery of
Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole
discretion of the Administrator. If upon settlement of the exercise of an SAR a grantee is
to

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receive a portion of such payment in shares of Common Stock, the number of shares shall
be determined by dividing such portion by the Fair Market Value of a share of Common Stock
on the exercise date. No fractional shares shall be used for such payment and the
Administrator shall determine whether cash shall be given in lieu of such fractional shares
or whether such fractional shares shall be eliminated.

     (c) Stock Awards. The Administrator may from time to time grant restricted or
unrestricted stock Awards to eligible participants in such amounts, on such terms and
conditions, and for such consideration, including no consideration or such minimum
consideration as may be required by law, as it shall determine. A stock Award may be paid
in Common Stock, in cash, or in a combination of Common Stock and cash, as determined in the
sole discretion of the Administrator.

     (d) Phantom Stock. The Administrator may from time to time grant Awards to eligible
participants denominated in stock-equivalent units (“phantom stock”) in such amounts and on
such terms and conditions as it shall determine. Phantom stock units granted to a
participant shall be credited to a bookkeeping reserve account solely for accounting
purposes and shall not require a segregation of any of the Company’s assets. An Award of
phantom stock may be settled in Common Stock, in cash, or in a combination of Common Stock
and cash, as determined in the sole discretion of the Administrator. Except as otherwise
provided in the applicable Grant Agreement, the grantee shall not have the rights of a
stockholder with respect to any shares of Common Stock represented by a phantom stock unit
solely as a result of the grant of a phantom stock unit to the grantee.

     (e) Performance Awards. The Administrator may, in its discretion, grant performance
awards which become payable on account of attainment of one or more performance goals
established by the Administrator. Performance awards may be paid by the delivery of Common
Stock or cash, or any combination of Common Stock and cash, as determined in the sole
discretion of the Administrator. Performance goals established by the Administrator may be
based on the Company’s or an Affiliate’s operating income or one or more other business
criteria selected by the Administrator that apply to an individual or group of individuals,
a business unit, or the Company or an Affiliate as a whole, over such performance period as
the Administrator may designate.

     (f) Other Stock-Based Awards. The Administrator may from time to time grant other
stock-based awards to eligible participants in such amounts, on such terms and conditions,
and for such consideration, including no consideration or such minimum consideration as may
be required by law, as it shall determine. Other stock-based awards may be denominated in
cash, in Common Stock or other securities, in stock-equivalent units, in stock appreciation
units, in securities or debentures convertible into Common Stock, or in any combination of
the foregoing and may be paid in Common Stock or other securities, in cash, or in a
combination of Common Stock or other securities and cash, all as determined in the sole
discretion of the Administrator.

7. Miscellaneous

     (a) Withholding of Taxes. Grantees and holders of Awards shall pay to the Company or
its Affiliate, or make provision satisfactory to the Administrator for payment of, any taxes
required to be withheld in respect of Awards under the Plan no later than the date of the
event creating the tax liability. The Company or its Affiliate may, to the extent permitted
by law, deduct any such tax obligations from any payment of any kind otherwise due to the
grantee or holder of an Award. In the event that payment to the Company or its Affiliate of
such tax obligations is made in shares of Common Stock, such shares shall be valued at Fair
Market Value on the applicable date for such purposes and shall not exceed in amount the
minimum statutory tax withholding obligation.

     (b) Loans. To the extent otherwise permitted by law, the Company or its Affiliate may
make or guarantee loans to grantees to assist grantees in exercising Awards and satisfying
any withholding tax obligations.

     (c) Transferability. Except as otherwise determined by the Administrator, and in any
event in the case of an incentive stock option or a stock appreciation right granted with
respect to an incentive

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stock option, no Award granted under the Plan shall be transferable by a grantee
otherwise than by will or the laws of descent and distribution. Unless otherwise determined
by the Administrator in accord with the provisions of the immediately preceding sentence, an
Award may be exercised during the lifetime of the grantee, only by the grantee or, during
the period the grantee is under a legal disability, by the grantee’s guardian or legal
representative.

     (d) Adjustments for Corporate Transactions and Other Events.

	 	(i)	 	Stock Dividend, Stock Split and Reverse Stock
Split. In the event of a stock dividend of, or stock split or reverse
stock split affecting, the Common Stock, (A) the maximum number of shares
of such Common Stock as to which Awards may be granted under this Plan
and the maximum number of shares with respect to which Awards may be
granted during any one fiscal year of the Company to any individual, as
provided in Section 4 of the Plan, and (B) the number of shares covered
by and the exercise price and other terms of outstanding Awards, shall,
without further action of the Board, be adjusted to reflect such event
unless the Board determines, at the time it approves such stock dividend,
stock split or reverse stock split, that no such adjustment shall be
made. The Administrator may make adjustments, in its discretion, to
address the treatment of fractional shares and fractional cents that
arise with respect to outstanding Awards as a result of the stock
dividend, stock split or reverse stock split.
	 
	 	(ii)	 	Non-Change in Control Transactions. Except with
respect to the transactions set forth in Section 7(d)(i), in the event of
any change affecting the Common Stock, the Company or its capitalization,
by reason of a spin-off, split-up, dividend, recapitalization, merger,
consolidation or share exchange, other than any such change that is part
of a transaction resulting in a Change in Control of the Company, the
Administrator, in its discretion and without the consent of the holders
of the Awards, may make (A) appropriate adjustments to the maximum number
and kind of shares reserved for issuance or with respect to which Awards
may be granted under the Plan, in the aggregate and with respect to any
individual during any one fiscal year of the Company, as provided in
Section 4 of the Plan; and (B) any adjustments in outstanding Awards,
including but not limited to modifying the number, kind and price of
securities subject to Awards.
	 
	 	(iii)	 	Change in Control Transactions. In the event of
any transaction resulting in a Change in Control of the Company,
outstanding stock options and other Awards that are payable in or
convertible into Common Stock under this Plan will terminate upon the
effective time of such Change in Control unless provision is made in
connection with the transaction for the continuation or assumption of
such Awards by, or for the substitution of the equivalent awards of, the
surviving or successor entity or a parent thereof. In the event of such
termination, (A) the outstanding stock options and other Awards that will
terminate upon the effective time of the Change in Control shall become
fully vested immediately before the effective time of the Change in
Control, and (B) the holders of stock options and other Awards under the
Plan will be permitted, immediately before the Change in Control, to
exercise or convert all portions of such stock options or other Awards
under the Plan that are then exercisable or convertible or which become
exercisable or convertible upon or prior to the effective time of the
Change in Control. If, immediately before the Change in Control, no
stock of the Company is readily tradable on an established securities
market or otherwise, and the vesting of an Award or Awards pursuant to
this Section 7(d)(iii) would be treated as a “parachute payment” (as
defined in section 280G of the Code), then such Award or Awards shall not
vest unless

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	 	 	 	the requirements of the shareholder approval exemption of section
280G(b)(5) of the Code have been satisfied with respect to such Award
or Awards.

	 	(iv)	 	Unusual or Nonrecurring Events. The Administrator
is authorized to make, in its discretion and without the consent of
holders of Awards, adjustments in the terms and conditions of, and the
criteria included in, Awards in recognition of unusual or nonrecurring
events affecting the Company, or the financial statements of the Company
or any Affiliate, or of changes in applicable laws, regulations, or
accounting principles, whenever the Administrator determines that such
adjustments are appropriate in order to prevent dilution or enlargement
of the benefits or potential benefits intended to be made available under
the Plan.

     (e) Substitution of Awards in Mergers and Acquisitions. Awards may be granted under
the Plan from time to time in substitution for awards held by employees, officers,
consultants or directors of entities who become or are about to become employees, officers,
consultants or directors of the Company or an Affiliate as the result of a merger or
consolidation of the employing entity with the Company or an Affiliate, or the acquisition
by the Company or an Affiliate of the assets or stock of the employing entity. The terms
and conditions of any substitute Awards so granted may vary from the terms and conditions
set forth herein to the extent that the Administrator deems appropriate at the time of grant
to conform the substitute Awards to the provisions of the awards for which they are
substituted.

     (f) Other Agreements. As a condition precedent to the grant of any Award under the
Plan, the exercise pursuant to such an Award, or to the delivery of certificates for shares
issued pursuant to any Award, the Administrator may require the grantee or the grantee’s
successor or permitted transferee, as the case may be, to become a party to a stock
restriction agreement, shareholders’ agreement, voting trust agreement or other agreements
regarding the Common Stock of the Company in such form(s) as the Administrator may determine
from time to time.

     (g) Termination, Amendment and Modification of the Plan. The Board may terminate,
amend or modify the Plan or any portion thereof at any time. Except as otherwise determined
by the Board, termination of the Plan shall not affect the Administrator’s ability to
exercise the powers granted to it hereunder with respect to Awards granted under the Plan
prior to the date of such termination.

     (h) Non-Guarantee of Employment or Service. Nothing in the Plan or in any Grant
Agreement thereunder shall confer any right on an individual to continue in the service of
the Company or shall interfere in any way with the right of the Company to terminate such
service at any time with or without cause or notice and whether or not such termination
results in (i) the failure of any Award to vest; (ii) the forfeiture of any unvested or
vested portion of any Award; and/or (iii) any other adverse effect on the individual’s
interests under the Plan.

     (i) Compliance with Securities Laws; Listing and Registration. If at any time the
Administrator determines that the delivery of Common Stock under the Plan is or may be
unlawful under the laws of any applicable jurisdiction, or Federal, state or foreign
securities laws, the right to exercise an Award or receive shares of Common Stock pursuant
to an Award shall be suspended until the Administrator determines that such delivery is
lawful. The Company shall have no obligation to effect any registration or qualification of
the Common Stock under Federal, state or foreign laws.

          The Company may require that a grantee, as a condition to exercise of an Award, and as
a condition to the delivery of any share certificate, make such written representations
(including representations to the effect that such person will not dispose of the Common
Stock so acquired in violation of Federal, state or foreign securities laws) and furnish
such information as may, in the opinion of counsel for the Company, be appropriate to permit
the Company to issue the Common Stock in compliance with applicable Federal, state or
foreign securities laws. The stock certificates for any shares of Common Stock issued
pursuant to this Plan may bear a legend restricting transferability of the shares of Common
Stock unless such shares are registered or an exemption from registration is available under
the Securities Act of 1933, as amended, and applicable state or foreign securities laws.

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     (j) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between
the Company and a grantee or any other person. To the extent that any grantee or other
person acquires a right to receive payments from the Company pursuant to an Award, such
right shall be no greater than the right of any unsecured general creditor of the Company.

     (k) Governing Law. The validity, construction and effect of the Plan, of Grant
Agreements entered into pursuant to the Plan, and of any rules, regulations, determinations
or decisions made by the Administrator relating to the Plan or such Grant Agreements, and
the rights of any and all persons having or claiming to have any interest therein or
thereunder, shall be determined exclusively in accordance with applicable federal laws and
the laws of the State of Maryland, without regard to its conflict of laws principles.

     (l) Effective Date; Termination Date. The Plan is effective as of the date on which
the Plan is adopted by the Board, subject to approval of the stockholders within twelve
months before or after such date. No Award shall be granted under the Plan after the close
of business on the day immediately preceding the tenth anniversary of the effective date of
the Plan, or if earlier, the tenth anniversary of the date this Plan is approved by the
stockholders. Subject to other applicable provisions of the Plan, all Awards made under the
Plan prior to such termination of the Plan shall remain in effect until such Awards have
been satisfied or terminated in accordance with the Plan and the terms of such Awards.

PLAN APPROVAL

Date Approved by the Board: April 28, 2005

Date Approved by the Stockholders: April 28, 2005

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APPENDIX A

PROVISIONS FOR CALIFORNIA RESIDENTS

     With respect to Awards granted to California residents prior to a public offering of capital
stock of the Company that is effected pursuant to a registration statement filed with, and declared
effective by, the Securities and Exchange Commission under the Securities Act of 1933, as amended,
and only to the extent required by applicable law, the following provisions shall apply
notwithstanding anything in the Plan or a Grant Agreement to the contrary:

1. Stock appreciation rights Awards under to Section 6(b) of the Plan or phantom stock Awards under
Section 6(d) of the Plan, which may be settled in shares of Company stock, shall not be issued to
California residents.

2. With respect to any Award granted in the form of a stock option pursuant to Section 6(a) of the
Plan:

(a) The Award shall provide an exercise price which is not less than 85% of the Fair Market
Value of the underlying security at the time the option is granted, except that the price
shall be not less than 110% of the Fair Market Value in the case of any person who owns
securities possessing more than 10% of the total combined voting power (as defined in
Section 194.5 of the California Corporations Code) of all classes of securities of the
issuer or its parent or subsidiaries possessing voting power.

(b) The exercise period shall be no more than 120 months from the date the option is
granted.

(c) The options shall be non-transferable other than by will, by the laws of descent and
distribution, or, if and to the extent permitted under the Grant Agreement, as permitted by
Rule 701 of the Securities Act of 1933, as amended (17 C.F.R. 230.701).

(d) The Award recipient shall have the right to exercise at the rate of at least 20% per
year over 5 years from the date the option is granted, subject to reasonable conditions such
as continued employment. However, in the case of an option granted to officers, directors,
managers or consultants of the Company or the issuer of the underlying security or any of
its affiliates, the option may become fully exercisable, subject to reasonable conditions
such as continued employment, at any time or during any period established by the issuer of
the option or the issuer of the underlying security or any of its affiliates.

(e) Unless employment is terminated for “cause” as defined by applicable law, the terms of
the Plan or Grant Agreement, or a contract of employment, the right to exercise the option
in the event of termination of employment, to the extent that the Award recipient is
entitled to exercise on the date employment terminates, will be as follows:

(1) At least 6 months from the date of termination if termination was caused by death
or disability.

(2) At least 30 days from the date of termination if termination was caused by other
than death or disability.

3. With respect to an Award, granted pursuant to Section 6(c) of the Plan, that provides the Award
recipient the right to purchase stock:

(a) The Award shall provide a purchase price which is not less than 85% of the Fair Market
Value of the security at the time the Award recipient is granted the right to purchase
securities under the Grant Agreement, or at the time the purchase is consummated; or, not
less than 100% of the Fair Market Value of the security either at the time the Award
recipient is granted the right to purchase securities under the Grant Agreement, or at the
time the purchase is consummated, in the case of any person who owns securities possessing
more than 10% of the total combined voting power (as defined in Section 194.5 of the
California Corporations Code) of all classes of securities of the issuer or its parent or
subsidiaries possessing voting power.

- 9 -

 

(b) The Award shall be non-transferable other than by will, by the laws of descent and
distribution, or, if and to the extent permitted under the Grant Agreement, as permitted by
Rule 701 of the Securities Act of 1933, as amended (17 C.F.R. 230.701).

4. The Plan shall have a termination date of not more than 10 years from the date the Plan is
adopted by the Board or the date the Plan is approved by the security holders, whichever is
earlier.

5. Security holders representing a majority of the Company’s outstanding securities entitled to
vote must approve the Plan within 12 months before or after the date the Plan is adopted. Any
option exercised or any securities purchased before security holder approval is obtained must be
rescinded if security holder approval is not obtained within 12 months before or after the Plan is
adopted. Such securities shall not be counted in determining whether such approval is obtained.

6. At the discretion of the Administrator, the Company may reserve to itself and/or its assignee(s)
in the Grant Agreement or any applicable stock restriction agreement a right to repurchase
securities held by an Award recipient upon such Award recipient’s termination of employment at any
time within 90 days after such Award recipient’s termination date (or in the case of securities
issued upon exercise of an option after the termination date, within 90 days after the date of such
exercise) for cash or cancellation of purchase money indebtedness, at:

(A) no less than the Fair Market Value of such securities as of the date of the Award
recipient’s termination of employment, provided, that such right to repurchase
securities terminates when the Company’s securities have become publicly traded; or

(B) the Award recipient’s original purchase price, provided, that such right to
repurchase securities at the original purchase price lapses at the rate of at least 20% of
the securities per year over 5 years from the date the option is granted (without respect to
the date the option was exercised or became exercisable).

     The securities held by an officer, director, manager or consultant of the Company or an
affiliate may be subject to additional or greater restrictions.

7. The Company will provide financial statements to each Award recipient annually during the period
such individual has Awards outstanding, or as otherwise required under Section 260.140.46 of Title
10 of the California Code of Regulations. Notwithstanding the foregoing, the Company will not be
required to provide such financial statements to Award recipients when issuance is limited to key
employees whose services in connection with the Company assure them access to equivalent
information.

8. The Company will comply with Section 260.140.1 of Title 10 of the California Code of Regulations
with respect to the voting rights of Common Stock and similar equity securities.

9. The Plan is intended to comply with Section 25102(o) of the California Corporations Code. Any
provision of this Plan which is inconsistent with Section 25102(o), including without limitation
any provision of this Plan that is more restrictive than would be permitted by Section 25102(o) as
amended from time to time, shall, without further act or amendment by the Board, be reformed to
comply with the provisions of Section 25102(o). If at any time the Administrator determines that
the delivery of Common Stock under the Plan is or may be unlawful under the laws of any applicable
jurisdiction, or federal or state securities laws, the right to exercise an Award or receive shares
of Common Stock pursuant to an Award shall be suspended until the Administrator determines that
such delivery is lawful. The Company shall have no obligation to effect any registration or
qualification of the Common Stock under federal or state laws.

- 10 -exv10w2

 

Exhibit
10.2

Incentive Stock Option Agreement

Under The

Visicu, Inc. Equity Incentive Plan

     1. Terminology. Capitalized terms used in this Agreement are defined in the
correlating Stock Option Notice and/or the Glossary at the end of the Agreement.

     2. Exercise of Options.

          (a) Exercisability. The Options will become exercisable in accordance with the
Exercisability Schedule set forth in the Stock Option Notice, so long as you are in the Service of
the Company from the Grant Date through the applicable exercisability dates. None of the Options
will become exercisable after your Service with the Company ceases, unless the Stock Option Notice
provides otherwise with respect to exercisability that arises as a result of your cessation of
Service.

          (b) Right to Exercise. You may exercise the Options, to the extent exercisable, at
any time on or before 5:00 p.m. Eastern Time on the Expiration Date or the earlier termination of
the Options, unless otherwise provided under applicable law. Section 3 below describes certain
limitations on exercise of the Options that apply in the event of your death, Total and Permanent
Disability, or termination of Service. The Options may be exercised only in multiples of whole
Shares and may not be exercised at any one time as to fewer than one hundred Shares (or such lesser
number of Shares as to which the Options are then exercisable). No fractional Shares will be
issued under the Options.

          (c) Exercise Procedure. In order to exercise the Options, you must provide the
following items to the Secretary of the Company or his or her delegate before the expiration or
termination of the Options:

	 	(i)	 	notice, in such manner and form as the
Administrator may require from time to time, specifying the number of
Shares to be purchased under the Options;
	 
	 	(ii)	 	full payment of the Exercise Price for the
Shares or properly executed, irrevocable instructions, in such manner
and form as the Administrator may require from time to time, to
effectuate a broker-assisted cashless exercise, each in accordance
with Section 2(d) of this Agreement; and
	 
	 	(iii)	 	an executed copy of any other agreements
requested by the Administrator.

An exercise will not be effective until the Secretary of the Company or his or her delegate
receives all of the foregoing items.

          (d) Method of Payment. You may pay the Exercise Price by:

	 	(i)	 	delivery of cash, certified or cashier’s
check, money order or other cash equivalent acceptable to the
Administrator in its discretion;
	 
	 	(ii)	 	a broker-assisted cashless exercise in
accordance with Regulation T of the Board of Governors of the Federal
Reserve System through a brokerage firm approved by the
Administrator;

-1-

 

	 	(iii)	 	subject to such limits as the
Administrator may impose from time to time, tender (via actual
delivery or attestation) to the Company of other shares of Common
Stock of the Company which have a Fair Market Value on the date of
tender equal to the Exercise Price, provided that
tender of such shares will not result in the Company having to record
a charge to earnings under United States generally accepted
accounting principles then applicable to the Company;
	 
	 	(iv)	 	any other method approved by the
Administrator; or
	 
	 	(v)	 	any combination of the foregoing.

          (e) Issuance of Shares upon Exercise. As soon as practicable after exercise of the
Options, the Company will deliver a share certificate to you, or deliver Shares electronically or
in certificate form to your designated broker on your behalf, for the Shares issued upon exercise.
Any share certificates delivered will, unless the Shares are registered or an exemption from
registration is available under applicable federal and state law, bear a legend restricting
transferability of such Shares.

     3. Termination of Service.

          (a) Termination of Unexercisable Options. If your Service with the Company ceases for
any reason, the Options that are then unexercisable, after giving effect to any exercise
acceleration provisions set forth on the Stock Option Notice, will terminate immediately upon such
cessation.

          (b) Exercise Period Following Termination of Service. If your Service with the
Company ceases for any reason, the Options that are then exercisable, after giving effect to any
exercise acceleration provisions set forth on the Stock Option Notice, will terminate upon the
earliest of:

          (i) the expiration of 90 days following such cessation;

          (ii) the expiration of 12 months following such cessation, if your Service
ceases on account of your Total and Permanent Disability or death; or

          (iii) the expiration of 12 months following your death, if your death occurs
during the periods described in clause (i) of this Section 3(b), as applicable; or

          (iv) the Expiration Date.

In the event of your death, the exercisable Options may be exercised by your executor, personal
representative, or the person(s) to whom the Options are transferred by will or the laws of descent
and distribution.

          (c) Changes in Status. If you cease to be a “common law employee” of the Company but
you continue to provide bona fide services to the Company following such cessation in a different
capacity, including without limitation as a director, consultant or independent contractor, then a
termination of Service shall not be deemed to have occurred for purposes of this Section 3 upon
such change in capacity. Notwithstanding the foregoing, the Options shall not be treated as
incentive stock options within the meaning of Code section 422 with respect to any exercise that
occurs more than three months after such cessation of the common law employee relationship (except
as otherwise permitted under Code section 421 or 422). In the event that your Service is with a
business, trade or entity that, after the Grant Date,

~ Incentive
Stock Option Agreement

-2-

 

ceases for any reason to be part or an Affiliate of the Company, your Service will be deemed
to have terminated for purposes of this Section 3 upon such cessation if your Service does not
continue uninterrupted immediately thereafter with the Company or an Affiliate of the Company.

     4. Market Stand-Off Agreement. You agree that following the effective date of a
registration statement of the Company filed under the Securities Act of 1933, you, for the duration
specified by and to the extent requested by the Company and an underwriter of Common Stock or other
securities of the Company, shall not offer, sell, contract to sell, pledge or otherwise dispose of,
directly or indirectly, any equity securities of the Company, or any securities convertible into or
exchangeable or exercisable for such securities, enter into a transaction which would have the same
effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any
of the economic consequences of ownership of such securities, whether any such aforementioned
transaction is to be settled by delivery of such securities or other securities, in cash or
otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition,
or to enter into any such transaction, swap, hedge or other arrangement, in each case during the
seven days prior to and the 180 days after the effectiveness of any underwritten offering of the
Company’s equity securities (or such longer or shorter period as may be requested in writing by the
managing underwriter and agreed to in writing by the Company) (the “Market Stand-Off Period”),
except as part of such underwritten registration if otherwise permitted. In addition, you agree to
execute any further letters, agreements and/or other documents requested by the Company or its
underwriters that are consistent with the terms of this Section 4. The Company may impose
stop-transfer instructions with respect to securities subject to the foregoing restrictions until
the end of such Market Stand-Off Period.

     5. Nontransferability of Options. These Options are nontransferable otherwise than by
will or the laws of descent and distribution and during your lifetime, the Options may be exercised
only by you or, during the period you are under a legal disability, by your guardian or legal
representative. Except as provided above, the Options may not be assigned, transferred, pledged,
hypothecated or disposed of in any way (whether by operation of law or otherwise) and shall not be
subject to execution, attachment or similar process.

     6. Qualified Nature of the Options.

          (a) General Status. The Options are intended to qualify as incentive stock option
within the meaning of Code section 422 (“Incentive Stock Option”), to the fullest extent permitted
by Code section 422, and this Agreement shall be so construed. The Company, however, does not
warrant any particular tax consequences of the Options. Code section 422 provides limitations, not
set forth in this Agreement, respecting the treatment of the Options as Incentive Stock Options.
You should consult with your personal tax advisors in this regard.

          (b) Code Section 422(d) Limitation. Pursuant to Code section 422(d), the aggregate
fair market value (determined as of the Grant Date) of shares of Common Stock with respect to which
all Incentive Stock Options first become exercisable by you in any calendar year under the Plan or
any other plan of the Company (and its parent and subsidiary corporations, within the meaning of
Code section 424(e) and (f), as may exist from time to time) may not exceed $100,000 or such other
amount as may be permitted from time to time under Code section 422. To the extent that such
aggregate fair market value exceeds $100,000 or other applicable amount in any calendar year, such
stock options will be treated as nonstatutory stock options with respect to the amount of aggregate
fair market value thereof that exceeds the Code section 422(d) limit. For this purpose, the
Incentive Stock Options will be taken into account in the order in which they were granted. In
such case, the Company may designate the shares of Common Stock that are to be treated as stock
acquired pursuant to the exercise of Incentive Stock Options and the shares of Common Stock that
are to be treated as stock acquired pursuant to nonstatutory stock options by issuing separate
certificates for such shares and identifying the certificates as such in the stock transfer records
of the Company.

~ Incentive
Stock Option Agreement

-3-

 

          (c) Significant Stockholders. Notwithstanding anything in this Agreement or the Stock
Option Notice to the contrary, if you own, directly or indirectly through attribution, stock
possessing more than 10% of the total combined voting power of all classes of stock of the Company
or of any of its subsidiaries (within the meaning of Code section 424(f)) on the Grant Date, then
the Exercise Price is the greater of (a) the Exercise Price stated on the Stock Option Notice or
(b) 110% of the Fair Market Value of the Common Stock on the Grant Date, and the Expiration Date is
the last business day prior to the fifth anniversary of the Grant Date.

     7. Withholding of Taxes. At the time the Options are exercised, in whole or in part,
or at any time thereafter as requested by the Company, you hereby authorize withholding from
payroll or any other payment of any kind due to you and otherwise agree to make adequate provision
for foreign, federal, state and local taxes required by law to be withheld, if any, which arise in
connection with the Options (including upon a disqualifying disposition within the meaning of Code
section 421(b)). The Company may require you to make a cash payment to cover any withholding tax
obligation as a condition of exercise of the Options or issuance of share certificates representing
Shares.

     The Administrator may, in its sole discretion, permit you to satisfy, in whole or in part, any
withholding tax obligation which may arise in connection with the Options either by electing to
have the Company withhold from the Shares to be issued upon exercise that number of Shares, or by
electing to deliver to the Company already-owned shares, in either case having a Fair Market Value
equal to the amount necessary to satisfy the statutory minimum withholding amount due.

     8. Adjustments. The Administrator may make various adjustments to your Options,
including adjustments to the number and type of securities subject to the Options and the Exercise
Price, in accordance with the terms of the Plan. In the event of any transaction resulting in a
Change in Control (as defined in the Plan) of the Company, the outstanding Options will terminate
upon the effective time of such Change in Control unless provision is made in connection with the
transaction for the continuation or assumption of such Options by, or for the substitution of the
equivalent awards of, the surviving or successor entity or a parent thereof. In the event of such
termination, you will be permitted, immediately before the Change in Control, to exercise or
convert all portions of such Options that are then exercisable or which become exercisable upon or
prior to the effective time of the Change in Control.

     9. Company’s Right of First Refusal. Before you or any transferee (either being
sometimes referred to herein as the “Holder”) shall sell or otherwise transfer the Shares
(including a transfer by gift or operation of law), the Company or its assignee(s) shall have a
right of first refusal to purchase the Shares on the terms and conditions set forth in this Section
(the “Right of First Refusal”).

          (a) Notice of Proposed Transfer. The Holder of the Shares shall deliver to the
Company a written notice (the “Notice”) stating: (i) the Holder’s bona fide intention to sell or
otherwise transfer such Shares; (ii) the name of each proposed purchaser or other transferee
(“Proposed Transferee”); (iii) the number of Shares to be transferred to each Proposed Transferee;
and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer
the Shares (the “Offered Price”), and the Holder shall offer the Shares at the Offered Price to the
Company or its assignee(s).

          (b) Exercise of Right of First Refusal. At any time within thirty (30) days after
receipt of the Notice, the Company and/or its assignee(s) may, by giving written notice to the
Holder, elect to purchase all, but not less than all, of the Shares proposed to be transferred to
any one or more of the Proposed Transferees, at the purchase price determined in accordance with
subsection (c) below.

~ Incentive
Stock Option Agreement

-4-

 

          (c) Purchase Price. The purchase price (“Purchase Price”) for the Shares purchased by
the Company or its assignee(s) under this Section shall be the Offered Price. If the Offered Price
includes consideration other than cash, the cash equivalent value of the non-cash consideration
shall be determined by the Board of Directors of the Company in good faith.

          (d) Payment. Payment of the Purchase Price shall be made, at the option of the
Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any
outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an
assignee, to the assignee), or by any combination thereof within 30 days after receipt of the
Notice or in the manner and at the times set forth in the Notice.

          (e) Holder’s Right to Transfer. If all of the Shares proposed in the Notice to be
transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s)
as provided in this Section, then the Holder may sell or otherwise transfer such Shares to that
Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other
transfer is consummated within 120 days after the date of the Notice, that any such sale or other
transfer is effected in accordance with any applicable securities laws and that the Proposed
Transferee agrees in writing that the provisions of this Section shall continue to apply to the
Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not
transferred to the Proposed Transferee within such period, a new Notice shall be given to the
Company, and the Company and/or its assignees shall again be offered the Right of First Refusal
before any Shares held by the Holder may be sold or otherwise transferred.

          (f) Exception for Certain Family Transfers. Anything to the contrary contained in
this Section notwithstanding, the transfer of any or all of the Shares during the Optionee’s
lifetime or on the Optionee’s death by will or intestacy to the Optionee’s immediate family or a
trust for the benefit of the Optionee’s immediate family shall be exempt from the provisions of
this Section. “Immediate Family” as used herein shall mean spouse, lineal descendant or
antecedent, father, mother, brother or sister. In such case, the transferee or other recipient
shall receive and hold the Shares so transferred subject to the provisions of this Section, and
there shall be no further transfer of such Shares except in accordance with the terms of this
Section.

          (g) Termination of Right of First Refusal. The Right of First Refusal shall terminate
as to any Shares upon the first sale of Common Stock of the Company to the general public pursuant
to a registration statement filed with and declared effective by the Securities and Exchange
Commission under the Securities Act of 1933, as amended.

     10. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this
Agreement will alter your at-will or other employment status or other service relationship with the
Company, nor be construed as a contract of employment or service relationship between you and the
Company, or as a contractual right for you to continue in the employ of, or in a service
relationship with, the Company for any period of time, or as a limitation of the right of the
Company to discharge you at any time with or without Cause or notice and whether or not such
discharge results in the failure of any of the Options to become exercisable or any other adverse
effect on your interests under the Plan.

     11. No Rights as a Stockholder. You shall not have any of the rights of a stockholder
with respect to the Shares until such Shares have been issued to you upon the due exercise of the
Options. No adjustment will be made for dividends or distributions or other rights for which the
record date is prior to the date such Shares are issued.

     12. The Company’s Rights. The existence of the Options shall not affect in any way
the right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,

~ Incentive
Stock Option Agreement

-5-

 

preferred or other stocks with preference ahead of or convertible into, or otherwise affecting
the Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any
sale or transfer of all or any part of the Company’s assets or business, or any other corporate act
or proceeding, whether of a similar character or otherwise.

     13. Entire Agreement. This Agreement, together with the correlating Stock Option
Notice and the Plan, contain the entire agreement between you and the Company with respect to the
Option. Any oral or written agreements, representations, warranties, written inducements, or other
communications made prior to the execution of this Agreement with respect to the Options shall be
void and ineffective for all purposes.

     14. Amendment. This Agreement may be amended from time to time by the Administrator
in its discretion; provided, however, that this Agreement may not be modified in a
manner that would have a materially adverse effect on the Options or Shares as determined in the
discretion of the Administrator, except as provided in the Plan or in a written document signed by
you and the Company.

     15. Conformity with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Any conflict between the terms of this
Agreement and the Plan shall be resolved in accordance with the terms of the Plan. In the event of
any ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is provided to you with this Agreement.

     16. Entire Agreement; Governing Law. The Plan and this Option Agreement constitute
the entire agreement of the parties with respect to the subject matter hereof and supersede in
their entirety all prior undertakings and agreements of the Company and Optionee with respect to
the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by
means of a writing signed by the Company and Optionee. This agreement is governed by the internal
substantive laws but not the choice of law rules of Maryland.

{Glossary begins on next page}

~ Incentive
Stock Option Agreement

-6-

 

GLOSSARY

          (a) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, Visicu, Inc.. For this purpose, “control” means
ownership of 50% or more of the total combined voting power or value of all classes of stock or
interests of the entity.

          (b) “Change in Control” has the meaning provided in the Plan.

          (c) “Company” includes Visicu, Inc. and its Affiliates, except where the context otherwise
requires. For purposes of determining whether a Change in Control has occurred, Company shall mean
only Visicu, Inc..

          (d) “Fair Market Value” the meaning provided in the Plan.

          (e) “Service” means your employment or other service relationship with the Company.

          (f) “Shares” mean the shares of Common Stock underlying the Options.

          (g) “Stock Option Notice” means the written notice evidencing the award of the Options that
correlates with and makes up a part of this Agreement.

          (h) “Total and Permanent Disability” means the inability 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 twelve months. The Administrator may require such proof of Total and Permanent
Disability as the Administrator in its sole discretion deems appropriate and the Administrator’s
good faith determination as to whether you are totally and permanently disabled will be final and
binding on all parties concerned.

          (i) “You”; “Your”. “You” or “your” means the recipient of the award of Options as reflected
on the Stock Option Notice. Whenever the Agreement refers to “you” under circumstances where the
provision should logically be construed, as determined by the Administrator, to apply to your
estate, personal representative, or beneficiary to whom the Options may be transferred by will or
by the laws of descent and distribution, the word “you” shall be deemed to include such person.

~ Incentive
Stock Option Agreement

- 7 -

 

EXERCISE FORM

Administrator of Visicu, Inc. Equity Incentive Plan

c/o Office of the Corporate Secretary

Visicu, Inc.

Gentlemen:

     I hereby exercise the Options granted to me on ___, ___, by Visicu, Inc.
(the “Company”), subject to all the terms and provisions of the applicable grant agreement and of
the Visicu, Inc. Equity Incentive Plan (the “Plan”), and notify you of my desire to purchase
___shares of Common Stock of the Company at a price of
$______ per share pursuant to
the exercise of said Options.

     This will confirm my understanding with respect to the shares to be issued to me by reason of
this exercise of the Options (the shares to be issued pursuant hereto shall be collectively
referred to hereinafter as the “Shares”) as follows:

          (a) I am purchasing the Shares for my own account for investment only, and not with a view to,
or for sale in connection with, any distribution of the Shares in violation of the Securities Act
of 1933 (the “Securities Act”), or any rule or regulation under the Securities Act.

          (b) I understand that the Shares are being issued without registration under the Securities
Act, in reliance upon one or more exemptions contained in the Securities Act, and such reliance is
based in part on the above representation. I also understand that the Company is not obligated to
comply with the registration requirements of the Securities Act or with the requirements for an
exemption under Regulation A under the Securities Act for my benefit.

          (c) I have had such opportunity as I deemed adequate to obtain from representatives of the
Company such information as is necessary to permit me to evaluate the merits and risks of my
investment in the Company.

          (d) I have sufficient experience in business, financial and investment matters to be able to
evaluate the risks involved in the purchase of the Shares and to make an informed investment
decision with respect to such purchase.

          (e) I can afford a complete loss of the value of the Shares and am able to bear the economic
risk of holding such Shares for an indefinite period.

          (f) I understand that (i) the Shares have not been registered under the Securities Act and are
“restricted securities” within the meaning of Rule 144 under the Securities Act; (ii) the Shares
cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under
the Securities Act or an exemption from registration is then available and, therefore, they may
need to be held indefinitely; and (iii) there is now no registration statement on file with the
Securities and Exchange Commission with respect to any stock of the Company and the Company has no
obligation or current intention to register the Shares under the Securities Act. As a condition to
any transfer of the Shares, I understand that the Company may require an opinion of counsel
satisfactory to the Company to the effect that such transfer does not require registration under
the Securities Act or any state securities law.

 

 

          (g) I understand that the certificates for the Shares to be issued to me will bear a legend
substantially as follows:

The shares of stock represented by this certificate are subject to restrictions on
transfer, an option to purchase and a market stand-off agreement set forth in a
certain Incentive Stock Option Agreement (the “Agreement”) between the corporation and
the registered owner of this certificate (or his predecessor in interest), and no
transfer of such shares may be made without compliance with that Agreement. A copy of
that Agreement is available for inspection at the office of the corporation upon
appropriate request and without charge.

The securities represented by this stock certificate have not been registered under
the Securities Act of 1933 (the “Act”) or applicable state securities laws (the “State
Acts”), and shall not be sold, pledged, hypothecated, donated, or otherwise
transferred (whether or not for consideration) by the holder except upon the issuance
to the corporation of a favorable opinion of its counsel and/or submission to the
corporation of such other evidence as may be satisfactory to counsel for the
corporation, to the effect that any such transfer shall not be in violation of the Act
and the State Acts.

The Company will issue appropriate stop transfer instructions to its transfer agent.

          (h) I am a party to a grant agreement, pursuant to which I have agreed to certain restrictions
on the transferability of the Shares and other matters relating thereto.

Total Amount Enclosed: $                    

	 	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Optionee)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Received by VISICU, INC. on	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

 

 

If the Shareholder resides in community property states (currently AZ, CA, ID, LA, NV, NM, TX, WA,
WI), the Shareholder’s spouse must execute the following:

Spouse Consent

     The undersigned spouse of the Optionee has read, understands, and hereby approves the purchase
of shares of Common Stock pursuant to Incentive Stock Option Grant Agreement Under the Visicu, Inc.
Equity Incentive Plan between the Shareholder and the Company (the “Agreement”). In consideration
of the Company’s granting my spouse the right to purchase the shares as set forth in the
Agreements, the undersigned hereby agrees to be irrevocably bound by the Agreement and further
agrees that any community property interest shall similarly be bound by the Agreement. The
undersigned hereby appoints the Optionee as my attorney-in-fact with respect to any amendment or
exercise of any rights under the Agreement.

Date:

	 	 	 
	 

	 	Signature of Shareholder’s Spouse

Address:

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