ATLANTIC PHARMACEUTICALS, INC. NOTICE OF GRANT OF STOCK OPTION Notice is hereby given of the following option grant (the "Option") to purchase shares of the Common Stock of Atlantic Pharmaceuticals, Inc. (the "Corporation"): Optionee:_____________________________________________________ Grant Date:___________________________________________________ Vesting Commencement Date:____________________________________ Exercise Price: $_____________________ per share Number of Option Shares: ________________________ shares Expiration Date:______________________________________________ Type of Option: ___________ Incentive Stock Option ___________ Non-Statutory Stock Option Exercise Schedule: The Option shall become exercisable of one (1) year of Service measured from the Vesting Commencement Date in four (4) successive equal annual installments upon Optionee's completion of each year of Service measured from the Vesting Commencement Date. In no event shall the Option become exercisable for any additional Option Shares after Optionee's cessation of Service. Optionee understands and agrees that the Option is granted subject to and in accordance with the terms of the Atlantic Pharmaceuticals, Inc. 1995 Stock Option Plan (the "Plan"). Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Stock Option Agreement attached hereto as Exhibit A. Optionee hereby acknowledges receipt of a copy of the official prospectus for the Plan in the form attached hereto as Exhibit B. A copy of the Plan is available upon request made to the Corporate Secretary at the Corporation's principal offices. No Employment or Service Contract. Nothing in this Notice or in the attached Stock Option Agreement or Plan shall confer upon Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee's Service at any time for any reason, with or without cause. Definitions. All capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the attached Stock Option Agreement. ________________________, 199__ Date ATLANTIC PHARMACEUTICALS, INC. By: ______________________________ Title: ______________________________ _____________________________________ OPTIONEE Address: ____________________________ _____________________________________ ATTACHMENTS Exhibit A - Stock Option Agreement Exhibit B - Plan Summary and Prospectus 2. EXHIBIT A STOCK OPTION AGREEMENT EXHIBIT B PLAN SUMMARY AND PROSPECTUS