ENCYSIVE PHARMACEUTICALS INC
FORMS OF INCENTIVE STOCK OPTION AWARD AGREEMENT
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>h44784exv10w1.htm
<DESCRIPTION>FORMS OF INCENTIVE STOCK OPTION AWARD AGREEMENT
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.1
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><B>Encysive Pharmaceuticals Inc.</B><br>
ID: 13-3532643<br>
4848 Loop Central Drive, Suite&nbsp;700<br>
Houston, Texas 77081
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notice of Grant of Stock Options</B><BR>
<B>and Option Agreement</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="width: 100%; border-bottom: 2px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="center">
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    <TD width="50%">&nbsp;</TD>
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    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Individual</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Option Number:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>00xxxx</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Address</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Plan:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>2007 Incentive Plan</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>City State Zip</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ID:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>xxxxx</B></TD>
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<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 100%; border-bottom: 2px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Effective <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>, <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (the &#147;Grant Date&#148;), you have been granted an Incentive Stock Option
(&#147;Options&#148;) to buy <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> shares of Encysive Pharmaceuticals Inc. (the &#147;Company&#148;) Common Stock at
an Option Price of $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> per share, which is the Fair Market Value per share of Common Stock on
the Grant Date, pursuant to the Encysive Pharmaceuticals Inc. 2007 Incentive Plan (the &#147;Plan&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The total Option Price of the shares granted is $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Shares in each period will become fully vested on the date shown.
</DIV>

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    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><U>Shares</U>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><U>Vest Type</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><U>Full Vest</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><U>Expiration</U></TD>
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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#091;This grant of Options will expire 10&nbsp;years from the Grant Date and, based on the Grant Date, will
vest 50% on the vesting day (&#147;Vesting Day&#148;) in each applicable vesting year (&#147;Vesting Year&#148;):
</DIV>

<DIV align="center">
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    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
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    <TD width="30%">&nbsp;</TD>
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<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u>Grant
Date</u>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>Vesting Day</u>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>Vesting Year</u></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March 1 &#151; August&nbsp;31
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;31
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Grant Year &#043;2 yrs and &#043;3 yrs</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">September 1 &#151; December meeting of
compensation committee
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">November&nbsp;30
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Grant Year &#043;2 yrs and &#043;3 yrs</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">After December meeting of compensation
committee &#151; last day of February&#093;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">November&nbsp;30
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Grant Year &#043;1 yr and &#043;2 yrs</TD>
</TR>
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<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="width: 100%; border-bottom: 2px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">By your signature and the Company&#146;s signature below, you and the Company agree that these Options
are granted under and governed by this Notice of Grant of Stock Options and Option Agreement and
the terms and conditions of the Plan, all of which are attached and made a part of this document.
Also attached hereto is an Information Memorandum about the Company&#146;s Prospectus covering the Plan.
Any capitalized term not otherwise defined herein shall have the meaning given such term in the
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;This grant of Options is subject to the terms and conditions of that certain Termination Agreement
executed between the Grantee and Encysive Pharmaceuticals Inc. on <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>, <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>, (the
&#147;Termination Agreement&#148;) and is granted pursuant to Section <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> of the Termination Agreement. To
the extent that there is a conflict between a term in this Notice of Grant of Stock Options and
Option Agreement and the Termination Agreement, the Termination Agreement shall control. However,
if there is a conflict between the Termination Agreement and the Plan, the Plan document shall
control. The terms of the Termination Agreement are hereby incorporated by reference.&#093; &#091;This
paragraph inserted only if the Company and the Grantee are a party to a Termination Agreement,
which must be dated on or prior to the Grant Date&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These Options are considered to be Incentive Stock Options under Section&nbsp;422 of the Internal
Revenue Code of 1986. This letter shall constitute a grant of Incentive Stock Options and an
Incentive Agreement under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Notice of Grant of Stock Options and Option Agreement are also subject to the further
condition that <B>you return to us within thirty (30)&nbsp;days from the date of this letter a signed copy
of this letter </B>to indicate your receipt of the above referenced documents. <U>Please retain this
original letter as your documentation of this grant of Incentive Stock Options and Incentive
Agreement under the Plan.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#091;By execution of this document, you agree that this award fulfills all of the requirements of
Section <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> of the Termination Agreement.&#093; &#091;This paragraph inserted only if the Company and the
Grantee are a party to a Termination Agreement, which must be dated on or prior to the Grant Date&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="width: 100%; border-bottom: 2px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
Encysive Pharmaceuticals Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
Date</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
xxxxx
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
Date</TD>
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