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Exhibit 10.5  

Epocrates, Inc.  

 
  STOCK OPTION GRANT NOTICE
  (1999 Stock Option Plan)    
    

        EPOCRATES, INC. (the "Company"), pursuant to its 1999 Stock Option Plan (the
"Plan"), hereby grants to Optionholder an option to purchase the number of shares of the Company's Common Stock set forth below. This option is subject
to all of the terms and conditions as set forth herein and in the Stock Option Agreement, the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their
entirety. 

	 
	 
	 

	Optionholder:	 	

	Date of Grant:	 	

	Vesting Commencement Date:	 	

	Number of Shares Subject to Option:	 	

	Exercise Price (Per Share):	$	

	Total Exercise Price:	$	

	Expiration Date:	 	

	 
	 	 
	 	 
	 	 
	 	 

	Type of Grant:	 	ý	 	Incentive Stock Option(1)	 	o	 	Nonstatutory Stock Option
	
Exercise Schedule:	
 	

Same as Vesting Schedule.	
 	

 
	
Vesting Schedule:	
 	

Shares subject to the Option shall vest in accordance with the terms set forth on Schedule A.
	
Payment:	
 	

By one or a combination of the following items (described in the Stock Option Agreement):
	

 	
 	

ý	
 	

By cash or check
	 	 	ý	 	Pursuant to a Regulation T Program if the Shares are publicly traded
	 	 	ý	 	By delivery of already-owned shares if the Shares are publicly traded

	(1)
	If
this is an incentive stock option, it (plus your other outstanding incentive stock options) cannot be first exercisable for more
than $100,000 in any calendar year. Any excess over $100,000 is a nonstatutory stock option. 

        Additional Terms/Acknowledgements:    The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this
Grant Notice, the Stock Option Agreement and the Plan. Optionholder further acknowledges that as of the Date of Grant, this Grant Notice, the Stock Option Agreement and the Plan set forth the entire
understanding between Optionholder and the Company regarding the
acquisition of stock in the Company and supersede all prior oral and written agreements on that subject with the exception of (i) options previously granted and delivered to Optionholder under
the Plan, and (ii) the following agreements only: 

	 
	 	 

	OTHER AGREEMENTS:	 	None

	

 	
 	

	 
	 	 
	 	 
	 	 

	EPOCRATES, INC.	 	OPTIONHOLDER
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
	 	

	 	 	Signature	 	Signature
	

Title:	
 	

 	
 	

Date:	
 	

 
	 	 	
	 	 	 	

	Date:	 	 	 	 	 	 
	 	 	
	 	 	 	 

ATTACHMENTS:    Stock Option Agreement, 1999 Stock Option Plan and Notice of Exercise 

SCHEDULE A

[OPTIONHOLDER]  

	Shares subject to Performance Based Option
 
	 	100% Payout
	 	120% Payout

	2007 Revenue	 	[            ]	 	[            ]
	EBITDA	 	[            ]	 	[            ]
	 	 	
	 	

	Total	 	[            ]	 	[            ]
	 	 	
	 	

        The
Epocrates, Inc. (the "Company") 2007 revenue ("2007 Revenue") and earnings
before interests, taxes, depreciation and amortization ("EBITDA") goals are as set forth below on Table A below: 

 
 

Table A    
    

	Revenue
	 	EBITDA

	% of Plan
 
	 	2007 Plan
	 	Payout %
	 	% of Plan
	 	2007 Plan
	 	Payout %

	92	 	$	58.9	m	0	 	0	 	0	 	0
	95	 	 	60.8	 	50	 	50	 	1.2	 	30
	100	 	 	64.1	 	100	 	100	 	2.3	 	75
	104	 	 	66.6	 	110	 	150	 	3.4	 	100
	108	 	 	69.2	 	120	 	200	 	4.6	 	120

        On
the date the 2007 financial results for the Company are available and the Compensation Committee of the Board determines, in its sole discretion, the percentage of plan achieved by
the Company for each of the 2007 Revenue and EBITDA (the "Payout Determination Date"), the corresponding number of shares
("Milestone Shares") in connection with the 2007 Revenue and EBITDA will vest, prorated in the event performance falls between points on Table A
("Initial Vesting"). The Milestone Shares shall be subject to continued vesting at the rate of 1/45th of the shares achieved per month commencing
on January 1, 2008 (the "Final Vesting Commencement Date"); provided, however, that vesting will
cease upon the termination of Optionholder's Continuous Service. The balance of the shares not vested as part of the Initial Vesting shall revert to and again become available for issuance under the
1999 Stock Option Plan. Further, the shares subject to the Option are not exercisable until the Payout Determination Date. 

        For
example, in order for Optionholder to achieve 100% Payout as noted in the table above, the Company must achieve 100% of plan for 2007 Revenue and 150% of plan for EBITDA, such that
[            ] Milestone Shares vest for each of 2007 Revenue and EBITDA, for an aggregate of [            ] Milestone Shares, at
the Initial
Vesting. Such Milestone Shares shall be subject to continued vesting a the rate of 1/45th per month commencing on the Final Vesting Commencement Date. The balance of the shares
not vested on the Payout Determination Date shall revert to and again become available for issuance under the 1999 Stock Option Plan. 

        In
the event, the Company achieves 92% of plan or less for 2007 Revenue and 0% of plan for EBITDA, the Optionholder will not vest any of the [            ]
Milestone Shares for each of 2007 Revenue and EBITDA, no shares will vest at the Initial Vesting and [            ] Milestone Shares shall revert to and again become
available for issuance under the 1999 Stock Option Plan. 

        Similarly,
in the event the Company achieves 108% of plan or greater for 2007 Revenue and 200% of plan or greater for EBITDA, the Optionholder will vest as to 120% of
[            ] Milestone Shares for each of 2007 Revenue and EBITDA, such that an aggregate of [            ] Milestone Shares
will vest at the
Initial Vesting. Such Milestone Shares shall be subject to continued vesting at the rate of 1/45th per month commencing on the Final Vesting Commencement Date. 

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STOCK OPTION GRANT NOTICE (1999 Stock Option Plan)

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Exhibit 10.6  

EPOCRATES, INC.  

 
  STOCK OPTION GRANT NOTICE
  (1999 Stock Option Plan)  
  

        EPOCRATES, INC. (the "Company"), pursuant to its 1999 Stock Option Plan (the
"Plan"), hereby grants to Optionholder an option to purchase the number of shares of the Company's Common Stock set forth below. This option is subject
to all of the terms and conditions as set forth herein and in the Stock Option Agreement, the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their
entirety. 

	 
	 
	 

	Optionholder:	 	

	Date of Grant:	 	

	Vesting Commencement Date:	 	

	Number of Shares Subject to Option:	 	

	Exercise Price (Per Share):	$	

	Total Exercise Price:	$	

	Expiration Date:	 	

	 
	 	 
	 	 

	Type of Grant(1)	 	 	 	 
	
Exercise Schedule:	
 	

Same as Vesting Schedule.
	
Vesting Schedule:	
 	

Shares subject to the Option shall vest in accordance with the terms set forth on Schedule A.
	

Payment:	
 	

By one or a combination of the following items (described in the Stock Option Agreement):
	

 	
 	

ý	
 	

By cash or check
	 	 	ý	 	Pursuant to a Regulation T Program if the Shares are publicly traded
	 	 	ý	 	By delivery of already-owned shares if the Shares are publicly traded

	(1)
	The
first 10,576 shares subject to the option is an incentive stock option. The remaining 31,424 shares subject to the option is a nonstatutory stock option. In the event shares
subject to the option are not vested as part of the Initial Vesting (as such term is defined in Schedule A), the shares subject to the nonstatutory stock option shall revert to and again become
available for issuance under the Plan. 

        Additional Terms/Acknowledgements:    The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this
Grant Notice, the Stock Option Agreement and the Plan. Optionholder further acknowledges that as of the Date of Grant, this Grant Notice, the Stock Option Agreement and the Plan set forth the entire
understanding between Optionholder and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on that
subject with the exception of (i) options previously granted and delivered to Optionholder under the Plan, and (ii) the following agreements only: 

	 
	 	 

	OTHER AGREEMENTS:	 	None

	

 	
 	

	 
	 	 
	 	 
	 	 

	EPOCRATES, INC.	 	OPTIONHOLDER
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
	 	

	 	 	Signature	 	Signature
	

Title:	
 	

 	
 	

Date:	
 	

 
	 	 	
	 	 	 	

	Date:	 	 	 	 	 	 
	 	 	
	 	 	 	 

Attachments:    Stock Option Agreement, 1999 Stock Option Plan and Notice of Exercise 

 
 

SCHEDULE A
  [OPTIONHOLDER]
  PERFORMANCE-BASED STOCK OPTION GRANT NOTICE    
    

	Shares subject to Performance Based Option
 
	 	100% Payout
	 	120% Payout

	2008 Bookings	 	[            ]	 	[            ]
	2008 Revenue	 	[            ]	 	[            ]
	EBITDA	 	[            ]	 	[            ]
	 	 	
	 	

	Total	 	[            ]	 	[            ]

        The
Epocrates, Inc. (the "Company") 2008 bookings ("Bookings"), 2008 revenue
("Revenue") and earnings before interests, taxes, depreciation and amortization, as adjusted for certain non-cash items in accordance with
the Company's business plan and as determined by the Audit Committee of the Board ("Modified EBITDA") (together, the
"Metrics") goals are as set forth below on Table A below: 

Table A  

	BOOKINGS
	 	REVENUE
	 	EBITDA
	 
	% of Plan
 
	 	2008

Plan
	 	Payout %
	 	% of Plan
	 	2008

Plan
	 	Payout %
	 	% of Plan
	 	2008

Plan
	 	Payout %
	 
	92	%	 	 	0	%	92	%	 	 	0	%	50	%	 	 	0	%
	95	%	 	 	50	%	96	%	 	 	80	%	80	%	 	 	80	%
	100	%	 	 	100	%	100	%	 	 	100	%	100	%	 	 	100	%
	105	%	 	 	120	%	104	%	 	 	120	%	120	%	 	 	120	%

        On
the date the 2008 financial results for the Company are available and the Compensation Committee of the Board determines, in its sole discretion, the percentage of plan achieved by
the Company for each of the Metrics (the "Payout Determination Date"), the corresponding number of shares ("Milestone
Shares") in connection with each of the Metrics prorated in the event performance falls between points on Table A, and rounded to the nearest whole number, will commence
vesting. The Milestone Shares shall be subject to vesting at the rate of 1/36th of the Milestone Shares per month commencing on January 1, 2009 (the
"Vesting Commencement Date"); provided, however, that vesting will cease upon the termination of
Optionholder's Continuous Service. For the avoidance of doubt, any shares that would have vested in connection with this vesting schedule between the Vesting Commencement Date and the Payout
Determination Date will first vest on the Payout Determination Date. The balance of the shares granted by not included in the Milestone Shares shall revert to and again become available for issuance
under the 1999 Stock Option Plan. Further, no shares subject to the Option are exercisable until the Payout Determination Date. 

        For
example, in order for Optionholder to achieve vesting of the number of shares specified at the 100% Payout level in the table above, the Company must achieve 100% of plan for
Bookings, Revenue and Modified EBITDA, such that [            ], [            ] and
[            ] Milestone Shares
will commence vesting for Bookings, Revenue and Modified EBITDA, respectively, on the Payout Determination Date. The Milestone Shares shall be subject to continued vesting at the rate of
1/36th of the Milestone Shares per month commencing effective on the Vesting Commencement Date. The balance of the shares not included in the Milestone Shares shall revert to and
again become available for issuance under the 1999 Stock Option Plan. 

        In
the event, the Company achieves 92% of plan or less for either Bookings or Revenue, or 50% of plan or less for Modified EBITDA, the Optionholder will not vest any of the shares for
any of the Metrics, no shares will vest on the Payout Determination Date and all the Shares shall revert to and again become available for issuance under the 1999 Stock Option Plan. 

        Similarly,
in the event the Company achieves 105% of plan or greater for Bookings, 104% of plan or greater for Revenue and 120% of plan or greater for Modified EBITDA, the Optionholder
will commence vesting as to 120% of [            ], [            ] and
[            ] Milestone Shares for Bookings,
Revenue and Modified EBITDA, respectively, such that an aggregate of [            ] Milestone Shares will commence vesting on the Payout Determination Date. Such Milestone
Shares shall be subject to continued vesting at the rate of 1/36th of the Milestone Shares per month commencing effective on the Vesting Commencement Date. 

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STOCK OPTION GRANT NOTICE (1999 Stock Option Plan)

SCHEDULE A [OPTIONHOLDER] PERFORMANCE-BASED STOCK OPTION GRANT NOTICE

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