Common use of Initial Grant Clause in Contracts

Initial Grant. Upon commencement of the Term, the Executive will be granted (the “Initial Grant”) stock options (which shall be incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to the extent permitted by applicable tax rules) to purchase 14,640 shares of common stock of the Company, which represents 4.0% of the shares of the Company on a fully diluted basis as of the Closing Date. The exercise price shall be determined by reference to the amount paid by GTS in respect of the stock of the Company pursuant to the Purchase Agreement. The Initial Grant shall be made pursuant to the terms of the form of option agreement attached hereto as Exhibit A.

Initial Grant. Upon commencement of the Term, the Executive will be granted (the “Initial Grant”) stock options (which shall be incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to the extent permitted by applicable tax rules) to purchase 14,640 5,490 shares of common stock of the Company, which represents 4.01.5% of the shares of the Company on a fully diluted basis as of the Closing Date. The exercise price shall be determined by reference to the amount paid by GTS in respect of the stock of the Company pursuant to the Purchase Agreement. The Initial Grant shall be made pursuant to the terms of the form of option agreement attached hereto as Exhibit A.