Common use of New Options Clause in Contracts

New Options. Employer shall grant Executive an option under Employer's 2004 Equity Incentive Plan, as amended (the "Equity Plan") to purchase five hundred seventy-five thousand (575,000) shares of Employer's common stock at an exercise price equal to the fair market value of the stock as of the grant date of grant (collectively the "Option"). The shares subject to the Option shall vest pursuant to a three-year vesting schedule, which shall provide one thirty-sixth (1/36th) of the shares subject to the Option shall vest for each month of continuous full-time service following the grant date, provided, however, that in the event that Employer completes an initial public offering of its stock (an "IPO"), Employer shall accelerate the vesting of 25% (143,750) of the shares subject to the Option, with 15,973 of the remaining unvested option shares to vest for each month of continuous full-time service thereafter. All other terms, conditions and limitations of the Options will be set forth in the Equity Plan and in the stock option grant notices and stock option agreements approved by the Board