SCIENTIFIC LEARNING CORP
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>3
<FILENAME>j0414_exhibit104.htm
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<TITLE>Prepared by MerrillDirect</TITLE>

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<p align=right><font size=4 face=Times>Exhibit 10.4</font></p>

<p><font size=3>&nbsp;</font></p>





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<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width="63%" valign=top><b><font size=4 face=Times>Notice of
  Grant of Stock Options</font></b></td>
  <td width="36%" valign=top><b><font size=4 face=Times>Scientific
  Learning Corporation</font></b></td>
 </tr>
 <tr>
  <td width="63%" valign=top><b><font size=4>And Option Agreement</font></b></td>
  <td width="36%" valign=top><font size=2>ID:
  94-3234458</font></td>
 </tr>
</TABLE>





<hr size=1 width="100%" noshade color=black align=right>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width="50%" valign=top><font size=3>&#171;First_Name&#187;
  &#171;Last_Name&#187;</font></td>
  <td  align=right width="50%" valign=top><b><font size=3>Option
  Number:</font></b><font> &#171;Number&#187;</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top><font size=3>&#171;Address_Line_1&#187;
  &#171;Address_Line_2&#187; &#171;Address_Line_3&#187;</font></td>
  <td width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="50%" valign=top><font size=3>&#171;City&#187;,
  &#171;State&#187; &#171;Zip_Code&#187;</font></td>
  <td width="50%" valign=top>&nbsp;</td>
 </tr>
</TABLE>





<hr size=1 width="100%" noshade color=black align=right>



<p><font size=3>Effective &#171;Option_Date&#187;, you have been
granted a Non-Qualified Stock Option to buy &#171;Shares_Granted&#187; shares of
Scientific Learning Corporation (the company) common stock at&nbsp; $&#171;Option_Price&#187; per share.</font></p>

<p><font size=3>Shares will become vested and exercisable
per attached Schedule A.</font></p>

<p><b><font size=3>Tax
Qualifications:&nbsp; </font></b><font>The option
is not intended to be an &#147;incentive stock option&#148; within the meaning of Section
422 of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;).</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>

<p><b><font size=3>Additional
Term and Optionee&#146;s acknowledgments:&nbsp; </font></b><font>This option
is subject to all of the terms and conditions of the Stock Option Agreement
attached to this Notice.&nbsp; The
undersigned optionee acknowledges receipt of this notice, the Stock Option
Agreement and the 1999 Equity Incentive Plan (the &#147;Plan&#148;), and understands and
agrees to all their terms.&nbsp; Optionee
further acknowledges that as of the date of grant of this option, this Notice,
the Stock Option Agreement and the Plan set forth the entire understanding
between the optionee and Company and regarding the acquisition of stock in the
Company and supersedes all prior oral and written agreements on the exception
of (i) the option agreements previously granted and delivered to optionee under
the Plan, and (ii) the following agreements only:</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>

<p><b><font size=3>Expiration
Date:&nbsp; </font></b><font>&#171;Expiration_Date_Period_1&#187;
unless it ends sooner for reasons described in the attached Stock Option
Agreement.</font></p>





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<p><font size=3>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width="44%" valign=top>
<hr size=1 width="95%" noshade color=black align=left></td>
  <td width="12%" valign=top>&nbsp;</td>
  <td width="44%" valign=top>
<hr size=1 width="95%" noshade color=black align=left></td>
 </tr>
 <tr>
  <td width="44%" valign=top><font size=3>Scientific
  Learning Corporation</font></td>
  <td width="12%" valign=top>&nbsp;</td>
  <td width="44%" valign=top><font size=3>Date</font></td>
 </tr>
 <tr>
  <td width="44%" valign=top>&nbsp;</td>
  <td width="12%" valign=top>&nbsp;</td>
  <td width="44%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="44%" valign=top>
<hr size=1 width="95%" noshade color=black align=left></td>
  <td width="12%" valign=top>&nbsp;</td>
  <td width="44%" valign=top>
<hr size=1 width="95%" noshade color=black align=left></td>
 </tr>
 <tr>
  <td width="44%" valign=top><font size=3>&#171;First_Name&#187;
  &#171;Last_Name&#187;</font></td>
  <td width="12%" valign=top>&nbsp;</td>
  <td width="44%" valign=top><font size=3>Date</font></td>
 </tr>
</TABLE>

<p><font size=3 face=Times>&nbsp;</font></p>

<PAGE>





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<div align=center>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="58%" valign=top><b><font size=4 face=Times>Notice of
  Grant of Stock Options</font></b></td>
  <td width="41%" valign=top><b><font size=4 face=Times>Scientific
  Learning Corporation</font></b></td>
 </tr>
 <tr>
  <td width="58%" valign=top><b><font size=4>And Option Agreement</font></b></td>
  <td width="41%" valign=top><font size=2>ID: 94-3234458</font></td>
 </tr>
</TABLE>

</div>





<hr size=2 width="100%" noshade color=black align=right>



<div align=center>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="58%" valign=top><font size=3>&#171;First_Name&#187;
  &#171;Last_Name&#187;</font></td>
  <td width="41%" valign=top><b><font size=3>Option Number</font></b><font>: &#171;Number&#187;</font></td>
 </tr>
 <tr>
  <td width="58%" valign=top><font size=3>&#171;Address_Line_1&#187;&#171;Address_Line_2&#187;&#171;Address_Line_3&#187;</font></td>
  <td width="41%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="58%" valign=top><font size=3>&#171;City&#187;,
  &#171;State&#187; &#171;Zip_Code&#187;</font></td>
  <td width="41%" valign=top>&nbsp;</td>
 </tr>
</TABLE>

</div>





<hr size=2 width="100%" noshade color=black align=right>



<p><font size=3>Effective &#171;Option_Date&#187;, you have been
granted an Incentive Stock Option to buy &#171;Shares_Granted&#187; shares of Scientific
Learning Corporation (the company) common stock at&nbsp; $&#171;Option_Price&#187; per share.</font></p>

<p><font size=3>Shares will become vested and exercisable
per attached Schedule A.</font></p>

<p><b><font size=3>Tax
Qualifications:&nbsp; </font></b><font>The option
is intended to qualify for the federal income tax benefits available to an
&#147;Incentive Stock Option&#148; within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (the &#147;Code&#148;).</font></p>

<p><b><font size=3>Additional
Term and Optionee&#146;s acknowledgments:&nbsp; </font></b><font>This option
is subject to all of the terms and conditions of the Stock Option Agreement
attached to this Notice.&nbsp; The
undersigned optionee acknowledges receipt of this notice, the Stock Option
Agreement and the 1999 Equity Incentive Plan (the &#147;Plan&#148;), and understands and
agrees to all their terms.&nbsp; Optionee further
acknowledges that as of the date of grant of this option, this Notice, the
Stock Option Agreement and the Plan set forth the entire understanding between
the optionee and Company and regarding the acquisition of stock in the Company
and supersedes all prior oral and written agreements on the exception of (i)
the option agreements previously granted and delivered to optionee under the
Plan, and (ii) the following agreements only:</font></p>

<p><b><font size=3>Expiration
Date:&nbsp; </font></b><font>&#171;Expiration_Date_Period_1&#187;
unless it ends sooner for reasons described in the attached Stock Option
Agreement.</font></p>





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<p><font size=3 face=Times>&nbsp;</font></p>

<div align=center>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="58%" valign=top>
<hr size=1 width="80%" noshade color=black align=left></td>
  <td width="41%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
 </tr>
 <tr>
  <td width="58%" valign=top><font size=2>Scientific Learning Corporation</font></td>
  <td width="41%" valign=top><font size=2>Date</font></td>
 </tr>
 <tr>
  <td width="58%" valign=top>&nbsp;</td>
  <td  align=center width="41%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="58%" valign=top>&nbsp;</td>
  <td  align=center width="41%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="58%" valign=top>
<hr size=1 width="80%" noshade color=black align=left>
</td>
  <td  align=center width="41%" valign=top>
<hr size=1 width="100%" noshade color=black align=left>
</td>
 </tr>
 <tr>
  <td width="58%" valign=top><font size=2>&#171;First_Name&#187; &#171;Last_Name&#187;</font></td>
  <td  align=center width="41%" valign=top><font size=2>Date</font></td>
 </tr>
</TABLE>

</div>

<p><font size=3 face=Times>&nbsp;</font></p>

<PAGE>





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<p align=center><b><font size=4 face=Times>SCHEDULE&nbsp; A.</font></b></p>





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<p><font size=3 face=Times>&nbsp;</font></p>

<div align=center>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td  align=center width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><b><font size=3>Option
  Number: &#171;Number&#187;</font></b></td>
 </tr>
</TABLE>

</div>





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<p><font size=3 face=Times>&nbsp;</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>

<p><b><font size=3>Vesting Commencement Date: &#171;Vest_Base_Date&#187;</font></b></p>

<p><font size=3 face=Times>&nbsp;</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>

<p><b><font size=3>Vesting Schedule:</font></b><font> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font>&lt;&lt;%
&gt;&gt;of the shares subject to this option shall become exercisable on</font></p>

<dir><dir><dir><dir>
<p><font size=3>Each
monthly anniversary of the Vesting Commencement Date, over a 4 year period,
until all shares under the option have vested:</font></p>
</dir></dir></dir></dir>

<dir><dir><dir><dir>
<p><font size=3>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provided that on each vesting date you
continue to provide services to the company;&nbsp;&nbsp;
and</font></p>
</dir></dir></dir></dir>

<dir><dir><dir><dir>
<p><font size=3 face=Times>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font>Provided
that no shares shall vest until the one year anniversary of your hire date, at
which time all the shares that would otherwise have vested in that year shall
vest in a cliff on your one year anniversary date.</font></p>
</dir></dir></dir></dir>

<p><font size=3 face=Times>&nbsp;</font></p>

<p><b><font size=3>No Early Exercise:</font></b><font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No portion of
this option may be exercise until it is vested.</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>

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