<PAGE>
 
                                                                    EXHIBIT 99.3

                    IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF
                    THIS SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY
                    CONSIDERATION THEREFOR, WITHOUT THE PRIOR WRITTEN CONSENT OF
                    THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA,
                    EXCEPT AS PERMITTED IN THE COMMISSIONER'S RULES.


                           NONSTATUTORY STOCK OPTION


FIELD(1), OPTIONEE:

     FlowPoint Corp. (the "Company"), pursuant to its FlowPoint Corp. 1994 Stock
Option Plan (the "Plan") has this day granted to you, the optionee named above,
an option to purchase shares of the common stock of the Company ("Common
Stock").  This option is not intended to qualify and will not be treated as an
"incentive stock option" within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code").

     The grant hereunder is in connection with and in furtherance of the
Company's compensatory benefit plan for participation of the Company's employees
(including officers), directors or consultants and is intended to comply with
the provisions of Rule 701 promulgated by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (the "Act").

     The details of your option are as follows:

     1.   The total number of shares of Common Stock subject to this option is
FIELD(2). The date that vesting begins on this option is FIELD(3).  Subject to 
the limitations herein, 6/48ths of the shares will vest (become exercisable) on
FIELD(4) and 1/48 of the shares will then vest each month thereafter until
either (i) you cease to provide services for the Company for any reason, or (ii)
this option becomes fully vested. This option may be exercised only with respect
to those shares which are vested.

     2.   (a)  The exercise price of this option is 5 per share, being not less
than eighty-five percent (85%) of the fair market value of the Common Stock on
the date of grant of this option.

          (b) Payment of the exercise price per share is due in full upon
exercise of all or any part of each installment which has accrued to you.  You
may elect, to the extent permitted by applicable statutes and regulations, to
make payment of the exercise price under one of the following alternatives:
<PAGE>
 
          (i) Payment of the exercise price per share in cash (including check)
at the time of exercise;

          (ii) Payment pursuant to a program developed under Regulation T as
promulgated by the Federal Reserve Board which results in the receipt of cash
(or check) by the Company prior to the issuance of Common Stock;

          (iii) Provided that at the time of exercise the Company's Common Stock
is publicly traded and quoted regularly in the Wall Street Journal, payment by
delivery of already-owned shares of Common Stock, held for the period required
to avoid a charge to the Company's reported earnings, and owned free and clear
of any liens, claims, encumbrances or security interests, which Common Stock
shall be valued at its fair market value on the date of exercise; or

          (iv) Payment by a combination of the methods of payment permitted by
subparagraph 2(b)(i) through 2(b)(iii) above.

     3.   This option may not be exercised for any number of shares which would
require the issuance of anything other than whole shares.

     4.   Notwithstanding anything to the contrary contained herein, this option
may not be exercised unless the shares issuable upon exercise of this option are
then registered under the Act or, if such shares are not then so registered, the
Company has determined that such exercise and issuance would be exempt from the
registration requirements of the Act.

     5.   The term of this option commences on the date hereof and, unless
sooner terminated as set forth below or in the Plan, terminates on FIELD(6) 
(which date shall be no more than ten (10) years from the date this option is
granted). In no event may this option be exercised on or after the date on which
it terminates. This option shall terminate prior to the expiration of its term
as follows: three (3) months after the termination of your employment with the
Company or an affiliate of the Company (as defined in the Plan) for any reason
or for no reason unless:

          (a) such termination of employment is due to your disability, in which
event the option shall terminate on the earlier of the termination date set
forth above or twelve (12) months following such termination of employment; or

          (b) such termination of employment is due to your death, in which
event the option shall terminate on the earlier of the termination date set
forth above or twelve (12) months after your death; or

          (c) during any part of such three (3) month period the option is not
exercisable solely because of the condition set forth in paragraph 4 above, in
which event the option shall not terminate until the earlier of the termination
date set forth above or until it shall have been exercisable for an aggregate
period of three (3) months after the termination of employment; or

                                      -2-
<PAGE>
 
          (d) exercise of the option within three (3) months after termination
of your employment with the Company or with an affiliate would result in
liability under section 16(b) of the Securities Exchange Act of 1934, in which
case the option will terminate on the earlier of (i) the termination date set
forth above, (ii) the tenth (10th) day after the last date upon which exercise
would result in such liability or (iii) six (6) months and ten (10) days after
the termination of your employment with the Company or an affiliate.

     However, this option may be exercised following termination of employment
only as to that number of shares as to which it was exercisable on the date of
termination of employment under the provisions of paragraph 1 of this option.

     6.   (a)  This option may be exercised, to the extent specified above, 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 pursuant to subparagraph
6(f) of the Plan.

          (b) By exercising this option you agree that:

              (i) the Company may require you to enter an arrangement providing
for the cash payment by you to the Company of any tax withholding obligation of
the Company arising by reason of: (1) the exercise of this option; (2) the lapse
of any substantial risk of forfeiture to which the shares are subject at the
time of exercise; or (3) the disposition of shares acquired upon such exercise;
and

              (ii) the Company (or a representative of the underwriters) may, in
connection with the first underwritten registration of the offering of any
securities of the Company under the Act, require that you not sell or otherwise
transfer or dispose of any shares of Common Stock or other securities of the
Company during such period (not to exceed one hundred eighty (180) days)
following the effective date (the "Effective Date") of the registration
statement of the Company filed under the Act as may be requested by the Company
or the representative of the underwriters.  For purposes of this restriction you
will be deemed to own securities which (i) are owned directly or indirectly by
you, including securities held for your benefit by nominees, custodians, brokers
or pledgees; (ii) may be acquired by you within sixty (60) days of the Effective
Date; (iii) are owned directly or indirectly, by or for your brothers or sisters
(whether by whole or half blood), spouse, ancestors and lineal descendants; or
(iv) are owned, directly or indirectly, by or for a corporation, partnership,
estate or trust of which you are a shareholder, partner or beneficiary, but only
to the extent of your proportionate interest therein as a shareholder, partner
or beneficiary thereof.  You further agree that the Company may impose stop-
transfer instructions with respect to securities subject to the foregoing
restrictions until the end of such period.

     7.   This option is not transferable, except by will or by the laws of
descent and distribution or pursuant to a qualified domestic relations order as
defined in the Code or Title I of the Employee Retirement Income Security Act (a
"QDRO"), and is exercisable during your life only by you or a transferee
pursuant to a QDRO.  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
this option.

                                      -3-
<PAGE>
 
     8.   This option is not an employment contract and nothing in this option
shall be deemed to create in any way whatsoever any obligation on your part to
continue in the employ of the Company, or of the Company to continue your
employment with the Company.  In the event that this option is granted to you in
connection with the performance of services as a consultant or director,
references to employment, employee and similar terms shall be deemed to include
the performance of services as a consultant or a director, as the case may be,
provided, however, that no rights as an employee shall arise by reason of the
use of such terms.

     9.   Any notices provided for in this 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 the Company to you, five (5) days after deposit in the
United States mail, postage prepaid, addressed to you at the address specified
below or at such other address as you hereafter designate by written notice to
the Company.

     10.  This option is subject to all the provisions of the Plan, a copy of
which is attached hereto and its provisions are hereby made a part of this
option, including without limitation the provisions of paragraph 6 of the Plan
relating to option provisions, 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 this option and those of the Plan, the provisions of the Plan
shall control.

     Dated the     day of            , 19  .
              -----       -----------    --

                              Very truly yours,

                              FLOWPOINT CORP.


                              By:
                                 ---------------------------------
                                  Duly authorized on behalf
                                  of the Board of Directors


ATTACHMENTS:

     FlowPoint Corp. 1994 Stock Option Plan
     Regulation 260.141.11
     Notice of Exercise

                                      -4-
<PAGE>
 
The undersigned:

     (a) Acknowledges receipt of the foregoing option and the attachments
referenced therein and understands that all rights and liabilities with respect
to this option are set forth in the option and the Plan; and

     (b) Acknowledges that as of the date of grant of this option, it sets forth
the entire understanding between the undersigned optionee and the Company and
its affiliates regarding the acquisition of stock in the Company and supersedes
all prior oral and written agreements on that subject with the exception of (i)
the options previously granted and delivered to the undersigned under stock
option plans of the Company, and (ii) the following agreements only:

     NONE
         ----------------------
          (Initial)

     OTHER
           --------------------------------- 

           --------------------------------- 

           --------------------------------- 
 

     (c) Acknowledges receipt of a copy of Section 260.141.11 of Title 10 of the
California Code of Regulations.


                              ---------------------------------
                              FIELD(1), OPTIONEE

                              Address: 
                                      ---------------------------------

                              -----------------------------------------

 

                                      -5-