EXHIBIT 10.20

 

AMENDMENT NO. 1 TO

STOCK OPTION AGREEMENT

 

THIS AMENDMENT NO. 1 (this “Amendment”) to that certain Stock Option Agreement
dated March 15, 2004 (the “Option Agreement”) by and between Notify Technology
Corporation, a California corporation (the “Company”), and Michael Ballard (the
“Optionee”) relating to the grant of an option to purchase up to 20,000 shares
of Common Stock of the Company is entered into effective as of the 14th day of
October, 2004 (the “Effective Date”). Capitalized terms not defined herein have
the meanings set forth in the Option Agreement.

 

WHEREAS, the Company and Optionee previously entered into the Option Agreement
in connection with the Optionee’s service as a member of the Company’s Board of
Directors (the “Board”);

 

WHEREAS, effective as of October 14, 2004, the Optionee has resigned as a member
of the Board;

 

WHEREAS, in consideration of the services provided to the Company by Optionee,
the Board has approved the amendment of the Option Agreement to accelerate the
vesting of 8,334 shares subject to the Option that would otherwise be unvested;
and

 

WHEREAS, the Company and the Optionee now desire to amend the applicable
provisions of the Option Agreement to reflect the new terms and conditions
approved by the Board.

 

NOW, THEREFORE, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Optionee agree as follows:

 

1. Amendment to “Vesting Schedule”. The language that appears in the paragraph
under the heading “Vesting Schedule” in the Option Agreement is hereby amended
to provide that as of the Effective Date, in addition to the number of Shares
that have vested under the existing vesting schedule set forth in the Option,
8,334 additional Shares subject to the Option that would otherwise be unvested
shall be fully vested and immediately exercisable. The Company and the Optionee
acknowledge and agree that as of the Effective Date, and after giving effect to
the acceleration of vesting of 8,334 additional Shares as provided by this
Amendment, an aggregate of 20,000 Shares shall be fully vested and immediately
exercisable. The Optionee further acknowledges and agrees that the Option is
only exercisable for a period of twenty-four (24) months following the Effective
Date (the “Exercise Period”) and that the Company has no obligation to provide a
notice to Optionee with respect to the ending of the Exercise Period.

 

2. No Other Amendments. Except as expressly set forth in this Amendment, the
Option Agreement shall continue in full force and effect, without modification,
in accordance with its terms.

 

3. Governing Law. This Amendment shall be governed by and construed under the
laws of the State of California, without reference to principles of conflicts of
law.

 

4. Counterparts; Facsimile. This Amendment may be executed by facsimile
signature and in any number of counterparts, each of which shall be enforceable
against the parties actually executing such counterparts, and all of which
together shall constitute one instrument.

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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the
Effective Date set forth above.

 

OPTIONEE:   NOTIFY TECHNOLOGY CORPORATION

        /s/ Michael K. Ballard

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        /s/ Gerald W. Rice

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Signature   By

        Michael K. Ballard

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        Chief Financial Officer

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Print Name   Title

        1110 Cripplegate Road

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        Potomac, MD 20854

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    Residence Address    

 

[Signature Page to Amendment No. 1 to Stock Option Agreement]