Exhibit 10.3

STANDARD FORM OF

SCIENTIFIC LEARNING CORPORATION

RESTRICTED STOCK UNIT AWARD AGREEMENT

SCIENTIFIC LEARNING CORPORATION

1999 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

Pursuant to your Restricted Stock Unit Grant Notice (“Grant Notice”) and this
Restricted Stock Unit Award Agreement (collectively, the “Award”) and in
consideration of your past services, Scientific Learning Corporation (the
“Company”) has awarded you a Restricted Stock Unit Award under its 1999 Equity
Incentive Plan (the “Plan”) for the number of Company common stock share
equivalents subject to the Award as indicated in the Grant Notice. Defined terms
not explicitly defined in this Restricted Stock Unit Award Agreement but defined
in the Plan shall have the same definitions as in the Plan.

 

The details of your Award are as follows:

1.          Vesting. Subject to the limitations contained herein, your Award
will vest as provided in the Grant Notice, provided that vesting will cease upon
the termination of your Continuous Service.

2.           Number of Share Equivalents. The number of common stock share
equivalents subject to your Award may be adjusted from time to time for
Capitalization Adjustments, as provided in Section 10 of the Plan.

3.           Payment. Your Award shall be settled by the delivery of shares of
Company common stock.

4.          Dividend Equivalents. Dividend equivalents shall be credited in
respect of Company common stock share equivalents covered by your Award. Such
dividend equivalents shall be converted into additional common stock share
equivalents covered by your Award by dividing (1) the aggregate amount or value
of the dividends paid with respect to that number of share equivalents covered
by your Award then credited by (2) the Fair Market Value per share of Common
Stock on the payment date for such dividend. Any additional share equivalents
covered by your Award credited by reason of such dividend equivalents shall be
subject to all the terms and conditions of this underlying Restricted Stock Unit
Award Agreement to which they relate.

5.           Securities Law Compliance. You may not be issued any shares under
your Award unless the shares are either (i) then registered under the Securities
Act or (ii) the Company has determined that such issuance would be exempt from
the registration requirements of the Securities Act. Your Award also must comply
with other applicable laws and regulations governing the Award, and you will not
receive any shares of Company common stock upon the payment of your Award if the
Company determines that such receipt would not be in material compliance with
such laws and regulations.

6.          Award not a Service Contract. Your Award is not an employment or
service contract, and nothing in your Award shall be deemed to create in any way
whatsoever any obligation on your part to continue in the employ of the Company
or on the part of the

 

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Company to continue your employment. In addition, nothing in your Award shall
obligate the Company, its stockholders, board of directors, officers or
employees to continue any relationship that you might have as a Director.

 

7.

Withholding Obligations.

(a)         At the time your Award is vested, or at any time thereafter as
requested by the Company, you hereby authorize withholding from payroll and any
other amounts payable to you, and otherwise agree to make adequate provision for
any sums required to satisfy the federal, state or local tax withholding
obligations of the Company, if any, which arise in connection with your Award.

(b)         Unless the tax withholding obligations of the Company are satisfied,
the Company shall have no obligation to issue a certificate for any shares
pursuant to the vesting of your Award.

8.          Tax Consequences. Restricted Stock Unit Awards are deferred
compensation and subject to the design limitations and requirements of Code
Section 409A. If the limitations and requirements of Code Section 409A are
violated, deferred amounts will be subject to tax at ordinary income rates
immediately upon such violation and will be subject to penalties equal to (i)
20% of the amount deferred and (ii) interest at a specified rate on the
under-payment of tax that would have occurred had the deferred compensation been
included in gross income in the taxable year in which it was first deferred.

9.            Notices. Any notices provided for in your Award or the Plan shall
be given in writing and shall be deemed effectively given upon receipt or, in
the case of notices delivered by the Company to you, five (5) days after deposit
in the United States mail, postage prepaid, addressed to you at the last address
you provided to the Company.

 

10.

Miscellaneous.

(a)         The rights and obligations of the Company under your Award shall be
transferable to any one or more person or entities, and all covenants and
agreements hereunder shall inure to the benefit of, and be enforceable by the
Company’s successors and assigns. Your rights and obligations under your Award
may only be assigned with the prior written consent of the Company.

(b)        You agree upon request to execute further documents or instruments
necessary or desirable in the sole determination of the Company to carry out the
purpose of your Award.

(c)         You acknowledge and agree that you have reviewed your Award in its
entirety, have had an opportunity to obtain advice of counsel prior to executing
and accepting your Award and fully understand all of the provisions of your
Award.

11.        Governing Plan Document. Your Award is subject to all of the
provisions of the Plan, the provisions of which are hereby made a part of your
Award, and is further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan. In the event of any conflict between the provisions of your Award and
those of the Plan, the provisions of the Plan shall control.

 

 

2.

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STANDARD FORM OF

SCIENTIFIC LEARNING CORPORATION

NOTICE OF GRANT OF RESTRICTED STOCK UNITS

 

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Notice of Grant of Restricted Stock Unit

Scientific Learning Corporation

and Restricted Stock Unit Award Agreement

ID: 94-3234458

 

 

300 Frank H. Ogawa Plaza

 

 

Suite 600

 

 

Oakland, CA 94612-2040

 

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Name

Award Number:

Address

Plan: 1999

 

City, State, Country, Zip Code

 

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Effective XXXX200X, you have been granted a restricted stock unit award for X
common share equivalents of Scientific Learning Corporation (the Company). These
restricted stock units will vest according to the schedule below. Consideration
for this award is past services.

 

 

Share Equivalents

Full Vest              

 

 

 

 

 

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By your signature and the Company’s signature below, you and the Company agree
that this award is granted under and governed by the terms and conditions of the
Company’s 1999 Equity Incentive Plan, as amended, which has been made available
to you, and the Restricted Stock Unit Award Agreement, which is attached.

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_________________________________
Scientific Learning Corporation

 

_________________________________
Date

 

 

_________________________________
<Name>

 

_________________________________
Date

 

 

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