Exhibit 10.3

 

 

 

 

 

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Notice of Grant of Stock Options
and Option Agreement

 

Scientific Learning Corporation
ID: 94-3234458
300 Frank H. Ogawa Plaza
Suite 500
Oakland, CA 94612-2040

 

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Name 
Address
City, State Country Zip Code

 

Option Number:
Plan: 1999
ID:

 

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Effective XXXX200X, you have been granted a(n) Incentive Stock Option to buy X
shares of Scientific Learning Corporation (the Company) common stock.

The per share exercise price for the option is $XXXX . The total exercise price
is $XXXX.

Shares in each period will become fully vested on the date(s) shown.

 

Shares

 

Vest Type

 

Full Vest

 

Expiration

 

 

 

 

 

 

 

 

 

 

 

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By your signature and the Company’s signature below, you and the Company agree
that these options are 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 Option Agreement, which is attached.

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Scientific Learning Corporation

 

 

Date

 

 

 

 

 

 

 

 

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<Name>

 

 

Date

 

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Notice of Grant of Stock Options
and Option Agreement

 

Scientific Learning Corporation
ID: 94-3234458
300 Frank H. Ogawa Plaza
Suite 500
Oakland, CA 94612-2040

 

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Name
Address
City, State, Country, Zip Code

 

Option Number:
Plan: 1999
ID:

 

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Effective XXXX200X, you have been granted a(n) Nonqualified Stock Option to buy
X shares of Scientific Learning Corporation (the Company) common stock.

The per share exercise price for the option is $XXXX . The total exercise price
is $XXXX.

Shares in each period will become fully vested on the date(s) shown.

 

Shares

 

Vest Type

 

Full Vest

 

Expiration

 

 

 

 

 

 

 

 

 

 

 

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By your signature and the Company’s signature below, you and the Company agree
that these options are 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 Option Agreement, which is attached.

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Scientific Learning Corporation

 

 

Date

 

 

 

 

 

 

 

 

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<Name>

 

 

Date

 

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Notice of Grant of Award
and Award Agreement

 

Scientific Learning Corporation
ID: 94-3234458
300 Frank H. Ogawa Plaza
Suite 500
Oakland, CA 94612-2040

 

 

 

 

 

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Name
Address
City, State, Country, Zip Code

 

Award Number:
Plan:

 

 

 

 

 

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Effective XXXX200X, you have been granted an award of X shares of Scientific
Learning Corporation (the Company) common stock. These shares are restricted
until the vest date(s) shown below.

The total value of the award on the grant date is $XXXX.

The award will vest in increments on the date(s) shown.

 

Shares

 

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 Stock Bonus Agreement, which is attached.

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Scientific Learning Corporation

 

 

Date

 

 

 

 

 

 

 

 

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<Name>

 

 

Date

 

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SCIENTIFICLEARNING CORPORATION
1999 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT
(INCENTIVE STOCK OPTION OR NONSTATUTORY STOCK OPTION)

Pursuant to your Notice of Grant of Stock Options (“Grant Notice”) and this
Stock Option Agreement, Scientific Learning Corporation (the “Company”) has
granted you an option under its 1999 Equity Incentive Plan (the “Plan”) to
purchase the number of shares of the Company’s Common Stock indicated in your
Grant Notice at the exercise price indicated in your Grant Notice. Defined terms
not explicitly defined in this Stock Option Agreement but defined in the Plan
shall have the same definitions as in the Plan.

The details of your option are as follows:

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

2.          NUMBER OF SHARES AND EXERCISE PRICE. The number of shares of Common
Stock subject to your option and your exercise price per share referenced in
your Grant Notice may be adjusted from time to time for Capitalization
Adjustments, as provided in the Plan.

3.          METHOD OF PAYMENT. Payment of the exercise price is due in full upon
exercise of all or any part of your option. You may elect to make payment of the
exercise price by one or more of the following:

(a)        by cash or check; or

(b)        in the Company’s sole discretion at the time your option is exercised
and provided that at the time of exercise the Common Stock is publicly traded
and quoted regularly in The Wall Street Journal, pursuant to a program developed
under Regulation T as promulgated by the Federal Reserve Board that, prior to
the issuance of Common Stock, results in either the receipt of cash (or check)
by the Company or the receipt of irrevocable instructions to pay the aggregate
exercise price to the Company from the sales proceeds.

4.          WHOLE SHARES. You may exercise your option only for whole shares of
Common Stock.

5.          SECURITIES LAW COMPLIANCE. Notwithstanding anything to the contrary
contained herein, you may not exercise your option unless the shares of Common
Stock issuable upon such exercise are then registered under the Securities Act
or, if such shares of Common Stock are not then so registered, the Company has
determined that such exercise and issuance would be exempt from the registration
requirements of the Securities Act. The exercise of your option must also comply
with other applicable laws and regulations governing your option, and you may
not exercise your option if the Company determines that such exercise would not
be in material compliance with such laws and regulations.

1.

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6.          TERM. You may not exercise your option before the commencement of
its term or after its term expires. The term of your option commences on the
Date of Grant and expires upon the earliest of the following:

(a)        three (3) months after the termination of your Continuous Service for
any reason other than Disability or death, provided that if during any part of
such three (3) month period you may not exercise your option solely because of
the condition set forth in the preceding paragraph relating to “Securities Law
Compliance,” your option shall not expire until the earlier of the Expiration
Date or until it shall have been exercisable for an aggregate period of three
(3) months after the termination of your Continuous Service;

(b)        twelve (12) months after the termination of your Continuous Service
due to your Disability;

(c)        twelve (12) months after your death if you die either during your
Continuous Service;

(d)        the Expiration Date indicated in your Grant Notice; or

(e)        the day before the tenth (10th) anniversary of the Date of Grant.

If your option is an incentive stock option, note that, to obtain the federal
income tax advantages associated with an “incentive stock option,” the Code
requires that at all times beginning on the date of grant of your option and
ending on the day three (3) months before the date of your option’s exercise,
you must be an employee of the Company or an Affiliate, except in the event of
your death or Disability. The Company has provided for extended exercisability
of your option under certain circumstances for your benefit but cannot guarantee
that your option will necessarily be treated as an “incentive stock option” if
you continue to provide services to the Company or an Affiliate as a Consultant
or Director after your employment terminates or if you otherwise exercise your
option more than three (3) months after the date your employment terminates.

7.          EXERCISE.

(a)        You may exercise the vested portion of your option during its term by
delivering a Notice of Exercise (in a form designated by the Company) together
with the exercise price to the Secretary of the Company, or to such other person
as the Company may designate, during regular business hours, together with such
additional documents as the Company may then require.

(b)        By exercising your option you agree that, as a condition to any
exercise of your option, the Company may require you to enter into an
arrangement providing for the payment by you to the Company of any tax
withholding obligation of the Company arising by reason of (1) the exercise of
your option, (2) the lapse of any substantial risk of forfeiture to which the
shares of Common Stock are subject at the time of exercise, or (3) the
disposition of shares of Common Stock acquired upon such exercise.

2.

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(c)        If your option is an incentive stock option, by exercising your
option you agree that you will notify the Company in writing within fifteen (15)
days after the date of any disposition of any of the shares of the Common Stock
issued upon exercise of your option that occurs within two (2) years after the
date of your option grant or within one (1) year after such shares of Common
Stock are transferred upon exercise of your option.

8.          TRANSFERABILITY. Your option is not transferable, except by will or
by the laws of descent and distribution, and is exercisable during your life
only by you. Notwithstanding the foregoing, by delivering written notice to the
Company, in a form satisfactory to the Company, you may designate a third party
who, in the event of your death, shall thereafter be entitled to exercise your
option.

9.          OPTION NOT A SERVICE CONTRACT. Your option is not an employment or
service contract, and nothing in your option shall be deemed to create in any
way whatsoever any obligation on your part to continue in the employ of the
Company or an Affiliate, or of the Company or an Affiliate to continue your
employment. In addition, nothing in your option shall obligate the Company or an
Affiliate, their respective stockholders, Boards of Directors, Officers or
Employees to continue any relationship that you might have as a Director or
Consultant for the Company or an Affiliate.

10.       WITHHOLDING OBLIGATIONS.

(a)        At the time you exercise your option, in whole or in part, 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 (including by means of a “cashless exercise” pursuant to
a program developed under Regulation T as promulgated by the Federal Reserve
Board to the extent permitted by the Company), any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or
an Affiliate, if any, which arise in connection with your option.

(b)        Upon your request and subject to approval by the Company, in its sole
discretion, and compliance with any applicable conditions or restrictions of
law, the Company may withhold from fully vested shares of Common Stock otherwise
issuable to you upon the exercise of your option a number of whole shares of
Common Stock having a Fair Market Value, determined by the Company as of the
date of exercise, not in excess of the minimum amount of tax required to be
withheld by law. If the date of determination of any tax withholding obligation
is deferred to a date later than the date of exercise of your option, share
withholding pursuant to the preceding sentence shall not be permitted unless you
make a proper and timely election under Section 83(b) of the Code, covering the
aggregate number of shares of Common Stock acquired upon such exercise with
respect to which such determination is otherwise deferred, to accelerate the
determination of such tax withholding obligation to the date of exercise of your
option. Notwithstanding the filing of such election, shares of Common Stock
shall be withheld solely from fully vested shares of Common Stock determined as
of the date of exercise of your option that are otherwise issuable to you upon
such exercise. Any adverse consequences to you arising in connection with such
share withholding procedure shall be your sole responsibility.

3.

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(c)        You may not exercise your option unless the tax withholding
obligations of the Company and/or any Affiliate are satisfied. Accordingly, you
may not be able to exercise your option when desired even though your option is
vested, and the Company shall have no obligation to issue a certificate for such
shares of Common Stock.

11.       NOTICES. Any notices provided for in your option or the Plan shall be
given in writing and shall be deemed effectively given upon receipt or, in the
case of notices delivered by mail 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.

12.       GOVERNING PLAN DOCUMENT. Your option is subject to all the provisions
of the Plan, the provisions of which are hereby made a part of your option, 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 option and those of the
Plan, the provisions of the Plan shall control.

4.

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SCIENTIFIC LEARNING CORPORATION

STOCK BONUS AGREEMENT
(1999 EQUITY INCENTIVE PLAN)

Pursuant to the Notice of Grant of Award (“Grant Notice”) and this Stock Bonus
Agreement (collectively, the “Award”) and in consideration of your past
services, Scientific Learning Corporation (the “Company”) has awarded you a
stock bonus under its 1999 Equity Incentive Plan (the “Plan”) for the number of
shares of the Company’s Common Stock subject to the Award as indicated in the
Grant Notice. Defined terms not explicitly defined in this Stock Bonus 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. Your Award shall be 100% vested at all times.

2.          NUMBER OF SHARES. The number of shares subject to your Award may be
adjusted from time to time for Capitalization Adjustments, as provided in the
Plan.

3.          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 must also comply
with other applicable laws and regulations governing the Award, and you will not
receive such shares if the Company determines that such receipt would not be in
material compliance with such laws and regulations.

4.          RESTRICTIVE LEGENDS. The shares issued under your Award shall be
endorsed with appropriate legends determined by the Company, if any.

5.          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 an Affiliate, or on the part of the Company or an Affiliate to continue your
employment. In addition, nothing in your Award shall obligate the Company or an
Affiliate, their respective shareholders, boards of directors, Officers or
Employees to continue any relationship that you might have as a Director or
Consultant for the Company or an Affiliate.

6.          WITHHOLDING OBLIGATIONS.

(a)        At the time your Award is made, 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, local and foreign tax
withholding obligations of the Company or an Affiliate, if any, which arise in
connection with your Award.

1.

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(b)        Unless the tax withholding obligations of the Company and/or any
Affiliate are satisfied, the Company shall have no obligation to issue a
certificate for such shares or release such shares from any escrow provided for
herein.

7.          TAX CONSEQUENCES. The acquisition and vesting of the shares may have
adverse tax consequences to you that may be avoided or mitigated by filing an
election under Section 83(b) of the Internal Revenue Code, as amended (the
“Code”). Such election must be filed within thirty (30) days after the date of
your Award. YOU ACKNOWLEDGE THAT IT IS YOUR OWN RESPONSIBILITY, AND NOT THE
COMPANY’S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(B), EVEN IF YOU
REQUEST THE COMPANY TO MAKE THE FILING ON YOUR BEHALF.

8.          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.

9.          MISCELLANEOUS.

(a)        The rights and obligations of the Company under your Award shall be
transferable to any one or more persons 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 any further documents or
instruments necessary or desirable in the sole determination of the Company to
carry out the purposes or intent of your Award.

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

10.       GOVERNING PLAN DOCUMENT. Your Award is subject to all 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.