StartupBUSINESS.COM

NOTICE OF GRANT OF STOCK OPTION

1.         Grant of Option.

Notice is hereby given of the following option grant (the “Option”) made to purchase shares of ________________________ (the “Company”) common stock (the “Common Stock”):

Optionee:

Grant Date:

Vesting Commencement Date:

Option Price:

Number of Option Shares:

Expiration Date:

Type of Option (check one)              Incentive        X Nonqualified

Exercise Schedule:

2.         Other Terms and Conditions.

2.1       Optionee understands and agrees that the Option is granted subject to and in accordance with the express terms and conditions of the Company’s Combined Incentive and Nonqualified Stock Option Plan (the “Plan”), including without limitation the terms and conditions referenced in Sections 2.2 and 2.3 below.  The Plan is incorporated by reference into this Notice of Grant of Stock Option, and Optionee hereby acknowledges receipt of a copy of the Plan in the form attached hereto as Exhibit B.

2.2 OPTIONEE HEREBY AGREES THAT ALL OPTION SHARES ACQUIRED PURSUANT TO THE EXERCISE OF THE OPTION SHALL BE SUBJECT TO CERTAIN REPURCHASE RIGHTS IN FAVOR OF THE COMPANY UPON TERMINATION OF OPTIONEE’S SERVICE WITH THE COMPANY. THE TERMS AND CONDITIONS OF SUCH RIGHTS ARE SPECIFIED IN THE PLAN.

2.3       OPTIONEE HEREBY AGREES THAT ALL OPTION SHARES ACQUIRED PURSUANT TO THE EXERCISE OF THE OPTION SHALL BE SUBJECT TO CERTAIN RIGHTS OF FIRST REFUSAL UPON ANY PROPOSED SALE, ASSIGNMENT, TRANSFER, ENCUMBRANCE OR OTHER DISPOSITION OF THE COMPANY’S SHARES.  THE TERMS AND CONDITIONS OF SUCH RIGHTS ARE SPECIFIED IN THE PLAN.

2.4       Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue in the Service of the Company for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or the Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Service at any time for any reason whatsoever, with or without cause.  As used herein, the term “Service” shall mean the performance of services for the Company by an individual in the capacity of an employee, a non-­employee member of the board of directors or an independent consultant or advisor.

2.5       This Option may be exercised at any time to purchase fully vested shares, subject to a maximum of three (3) exercises per calendar year.  At any and each time that Optionee desires to exercise this Option and purchase Option Shares, Optionee shall complete and submit to the Company the Notice of Exercise of Stock Option attached hereto as Exhibit A no less than five (5) business days prior to the date upon which Optionee desires to effect such purchase.  Payment for the Option Shares shall be made in accordance with the provisions of the Plan.

2.6       Optionee shall not have any rights as a shareholder of the Company with respect to any shares subject to this Option until Optionee shall have exercised this option with respect to such shares and paid the purchase price therefor.

2.7       This Notice of Grant of Stock Option shall be governed by the laws of the state of ____________, without reference to such state’s choice of law rules.

 _________________

     Date

Company

 By:___________

Name:__________ 

Title:___________ 

                                                                                                     Optionee:

                                                                                            _____________________    

                                                                                             Print Name:_____________ 

                                                                                              Address:_______________

                                                                                                     __________________           

                                                                                        Tax ID Number:  ___________

EXHIBIT A

Notice of Exercise of Stock Option

The undersigned, (the “Optionee”), hereby elects to exercise the stock option granted to the Optionee on (the “Grant”), by ________________ (the “Company”), subject to all of the terms and conditions thereof and of the Company’s Combined Incentive and Nonqualified Stock Option Plan referred to therein, and notifies the Company of the Optionee’s intent to purchase ____________________ shares of Common Stock of the Company at the exercise price specified in the Grant.

Optionee hereby represents to the Company that the shares of Common Stock to be purchased pursuant to this Notice of Exercise are being acquired by Optionee for Optionee’s own account, for investment and not with a view to resale or distribution.

Dated:____________________________

                                                                            _____________________________

                                                                                      Print Name:________________