X0202 4 2005-06-27 0 0001045280 ON2 TECHNOLOGIES INC ONT 0001279555 PRINCIPE ANTHONY 21 CORPORATE DRIVE SUITE 103 CLIFTON PARK NY 12065 0 1 0 0 Chief Financial Officer Employee Stock Option (right to buy) 0.59 2005-06-27 4 A 0 40000 0.59 A 2005-06-27 2013-06-27 Common Stock 40000 187500 D Employee stock options granted pursuant to the On2 Technologies, Inc., 2005 Incentive Compensation Plan. One half of the options are exercisable immediately, and one half of the options are exercisable on 06/27/2006. Includes options to purchase (i) 12,500 shares of common stock at a price of $0.14 per share expiring on 08/26/2012, (ii) 10,000 shares of common stock at a price of $0.32 expiring on 10/01/2012, (iii) 50,000 shares of common stock at a price of $1.25 expiring on 11/05/2013; (iv) 35,000 shares of common stock at a price of $0.66 expiring on 05/13/2014; and (v) 40,000 shares of common stock at a price of $0.57 expiring on 12/03/2014. /s/ Anthony Principe 2005-06-29