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Exhibit 10.49

[WIND RIVER LOGO]

June 27, 2001

BY HAND DELIVERY

Richard Kraber

Dear Dick:

    This letter sets forth the substance of the agreement (the "Agreement") that
Wind River Systems, Inc. (the "Company") is offering to you in connection with
your retirement from the Company.

    1.  Resignation.  You have tendered, and the Company has accepted, your
resignation from employment pursuant to your retirement from the Company, as
described herein. You resigned from your position as the Company's Chief
Financial Officer and Corporate Secretary as of September 25, 2000, and resigned
as Vice President of the Company as of March 23, 2001. Your employment will
continue during the transition periods described below until March 31, 2002, on
which date your employment with the Company will terminate (the "Separation
Date").

    2.  Transition Periods.  You will continue to provide services to the
Company as an employee until the Separation Date, as follows.

    a.  First Transition Period.  You will continue to provide services to the
Company as an employee on a part-time status during a First Transition Period,
beginning January 15, 2001 and ending June 30, 2001 (the "Transition Date").
During this First Transition Period: (i) your duties will be as directed by the
Company's Chief Executive Officer (the "CEO"), in the areas of acquisitions and
mergers or other areas as mutually agreed; and (ii) the Company will continue to
provide you with your full base salary of $19,583 per month, except as
temporarily reduced by 10% by the CEO for May and June of 2001, one-half paid
each pay period, and a prorated bonus of $58,750 paid as soon as practical at
the end of the First Transition Period, and full benefits. The Company will pay
you at your $19,583 per month rate for all accrued and unused vacation and
sabbatical time as of the Transition Date, in or about July 2001.

    b.  Second Transition Period.  You will continue to provide services to the
Company as an employee during a Second Transition Period, from July 1, 2001
until the Separation Date. During this Second Transition Period: (i) your duties
will be as directed by the CEO on a consulting basis working out of our Alameda,
CA headquarters or your Lafayette, CA home office, working in the areas of
acquisitions and mergers or other areas that are mutually agreeable; (ii) the
Company will pay you $6,000.00 per month, less required withholdings and
deductions, for the period July 1, 2001 through December 31, 2001, and the
additional single lump sum of $14,000.00, less required withholdings and
deductions, payable in January 2002, for the period from January 1, 2002 until
the Separation Date; and (iii) the Company will continue to provide you with
full benefits except vacation and sabbatical accrual.

    3.  Stock Options.  The attached Exhibit C specifically outlines the vesting
schedule of shares through March, 31, 2002. Effective June 27, 2001 all option
shares that would have been exercisable as of March 31, 2002 (the 148,756 option
shares) will become immediately exercisable. All the shares that would have been
unvested (the 36,774 option shares) as of March 31, 2002 will be cancelled
effective June 27, 2001. You will then have until the close of market on
June 30, 2002 to exercise any option shares that were vested as of the
Separation Date. All other terms, conditions, and limitations applicable to your
options will remain in full force and effect pursuant to the applicable stock
option agreements between you and the Company, the applicable stock option plan
documents, and any other documents applicable to the options. As of June 30,
2001, you are no longer considered an insider for stock trading purposes and may
trade on the same basis as any non-insider employee.

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    4.  Health Insurance.  To the extent provided by the federal COBRA law or,
if applicable, state insurance laws, and by the Company's current group health
insurance policies, you will be eligible to continue your group health insurance
benefits (at the same level of coverage for yourself and your dependents as you
were receiving as of the Separation Date) at company expense through
December 31, 2002, and at your own expense thereafter. Under statutes currently
in effect, this continuation would extend until age 65. Later, you may be able
to convert to an individual policy through the provider of the Company's health
insurance, if you wish.

    5.  Life Insurance.  The Company will pay all premiums due on the split
dollar life insurance policy issued by John Hancock for the coverage period
ending December 31, 2002. Following that date all other terms and conditions of
the policy and the split-dollar agreement entered into between the Company and
you will remain in effect and unchanged to the scheduled roll-out/Company
premium recovery date on March 3, 2013, except that you will be responsible for
reimbursing the Company annually for an amount equal to the economic benefit
cost of the coverage as furnished by the carrier and/or Sitzmann, Morris and
Lavis. These repayments will reduce the amount of the Company recovery on
March 3, 2013, as outlined in Exhibit D.

    6.  Other Compensation or Benefits.  You acknowledge that, except as
expressly provided in this Agreement, you will not receive any additional
compensation, severance or benefits from the Company.

    7.  Expense Reimbursement.  During the transition periods you agree to
submit on a timely basis documented expense reimbursement statements reflecting
all business expenses you incur through the Separation Date, if any, for which
you seek reimbursement. The Company will reimburse you for these expenses
pursuant to its regular business practices.

    8.  Return of Company Property.  You agree that on or before the Separation
Date you will return to the Company all Company documents (and all copies
thereof) and other Company property in your possession or control, including,
but not limited to, Company files, correspondence, memoranda, notes, notebooks,
drawings, books and records, plans, forecasts, reports, proposals, studies,
agreements, financial information, personnel information, sales and marketing
information, research and development information, systems information,
specifications, computer-recorded information, tangible property and equipment,
credit cards, entry cards, identification badges and keys; and any materials of
any kind that contain or embody any proprietary or confidential information of
the Company (and all reproductions thereof in whole or in part) ("Company
Property"); provided, however, that you may continue to possess, prior to the
Separation Date, any such documents or other Company materials necessary for
your performance of services to the Company after the Transition Date and for
which you receive express approval from the Company.

    9.  Proprietary Information Obligations.  You acknowledge your continuing
obligation to comply with your Proprietary Information And Inventions Agreement,
a copy of which is attached hereto as Exhibit A, at all times during, and
subsequent to the termination of, your employment with the Company.

    10. Confidentiality.  The provisions of this Agreement will be held in
strictest confidence by you and the Company and will not be publicized or
disclosed in any manner whatsoever, provided, however, that: (a) you may
disclose this Agreement in confidence to your immediate family; (b) the parties
may disclose this Agreement in confidence to their respective attorneys,
accountants, auditors, tax preparers, and financial advisors; (c) the Company
may disclose this Agreement as necessary to fulfill standard or legally required
corporate reporting or disclosure requirements; and (d) the parties may disclose
this Agreement insofar as such disclosure may be necessary to enforce its terms
or as otherwise required by law. In particular, and without limitation, you may
not disclose the terms of this Agreement to any current or former employee,
consultant or independent contractor of the Company.

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    11. Noncompetition.  During your continued employment by the Company until
the Separation Date, except on behalf of the Company, you agree that you will
not, directly or indirectly, whether as an officer, director, stockholder,
partner, proprietor, associate, representative, consultant, or in any capacity
whatsoever, become financially interested in, be employed by, perform services
for, or have any business connection with, any other person, corporation, firm,
partnership or other entity whatsoever that competes directly, or is preparing
to engage in competition, with the Company, throughout the world (collectively,
"Competitor"), in any line of business engaged in (or planned to be engaged in)
by the Company; provided, however, that anything above to the contrary
notwithstanding, you may own, as a passive investor, securities of any
Competitor, so long as your direct holdings in any one such corporation shall
not in the aggregate constitute more than 2 percent of the voting stock of such
corporation.

    12. Nondisparagement.  Both you and the Company (by its officers and
directors) agree not to disparage the other party, or the other party's
officers, directors, employees, shareholders and agents, in any manner likely to
be harmful to them or their business, business reputation or personal
reputation; provided that both you and the Company may respond accurately and
fully to any question, inquiry or request for information when required by legal
process, after giving reasonable advance notice to the other party.

    13. Your Release of Claims.  In exchange for the consideration provided to
you under this Agreement to which you would not otherwise be entitled, you
hereby release, acquit and forever discharge the Company, its officers,
directors, agents, employees, attorneys, shareholders, predecessors, successors,
assigns and affiliates, of and from any and all claims, liabilities, demands,
causes of action, costs, expenses, attorneys' fees, damages, indemnities and
obligations of every kind and nature, in law, equity, or otherwise, known and
unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or
in any way related to agreements, events, acts or conduct at any time prior to
and including the date you sign this Agreement, including but not limited to:
all such claims and demands directly or indirectly arising out of or in any way
connected with your employment with the Company or your retirement from such
employment; claims or demands related to salary, bonuses, commissions, stock,
stock options, or any other ownership or equity interest in the Company,
vacation pay, fringe benefits, expense reimbursements, severance pay, or any
other form of compensation; claims pursuant to any federal, state or local law,
statute, or cause of action including, but not limited to, the federal Civil
Rights Act of 1964, as amended; the federal Americans with Disabilities Act of
1990; the California Fair Employment and Housing Act, as amended; the federal
Age Discrimination in Emplovment Act, as amended ("ADEA"); tort law; contract
law; wrongful discharge; discrimination; harassment; retaliation; fraud;
defamation; emotional distress; and breach of the implied covenant of good faith
and fair dealing. However, this Agreement shall not relieve or limit the
obligation of the Company to indemnify Kraber in accordance with, and subject to
the limitations of, California Corporations Code section 317 and/or the bylaws
of the Company for claims or actions filed against Kraber arising out of his
performance of his normal duties during the time he was an officer of the
Company. This release shall become effective upon the receipt by Kraber of the
sums specified in Paragraph 2(a) above.

    14. Company's Release of Claims.  In exchange for the consideration provided
to the Company under this Agreement, including your agreement to work for the
Company during the transition periods described above, the Company hereby
generally releases, acquits and forever discharges you, and your attorneys,
successors, representatives and assigns, of and from any and all claims,
liabilities, demands, causes of action, costs expenses, attorneys' fees,
damages, indemnities and obligations of every kind and nature, in law, equity,
or otherwise, known and unknown, suspected and unsuspected, disclosed and
undisclosed, arising out of or in any way related to agreements, events, acts or
conduct at any time prior to and including the date of this Agreement, including
but not limited to: all such claims and demands directly or indirectly arising
out of or in any way connected with your employment with the

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Company, the performance of your duties as an officer of the Company or your
retirement from such employment; provided, however, that the Company is not
releasing any claims arising from any acts or omissions by you occurring on or
before the Effective Date of this Agreement of which the Company becomes aware
and gives you written notice on or before the Separation Date.

    15. ADEA Waiver.  You acknowledge that you are knowingly and voluntarily
waiving and releasing any rights you may have under ADEA, and that the
consideration given for the waiver and release in the preceding paragraph is in
addition to anything of value to which you were already entitled. You further
acknowledge that you have been advised by this writing that: (a) your waiver and
release do not apply to any rights or claims that arise after the date you sign
this Agreement; (b) you should consult with an attorney prior to executing this
Agreement; (c) you have twenty-one (21) days to consider this Agreement
(although you may choose to voluntarily execute this Agreement earlier); (d) you
have seven (7) days following the date you sign this Agreement to revoke the
Agreement; and (e) this Agreement will not be effective until the date on which
the revocation period has expired, which will be the eighth day after the date
you sign this Agreement (the "Effective Date").

    16. Section 1542 Waiver.  In granting the releases herein, the parties
hereby acknowledge that they have read and understand Section 1542 of the
California Civil Code, which states: "A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the
time of executing the release, which if known by him must have materially
affected his settlement with the debtor." The parties hereby expressly waive and
relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to their releases of claims hereby.

    17. Supplemental Release.  In further exchange for the consideration
provided to you under this Agreement to which you would not otherwise be
entitled, you agree to sign and deliver to the Company a supplemental release of
claims (the "Supplemental Release"), in the form attached hereto as Exhibit B,
on or within one week following the Separation Date.

    18. Arbitration.  To ensure rapid and economical resolution of any disputes
that arise under this Agreement, you and the Company agree that any and all
disputes or controversies of any nature whatsoever (with the sole exception of
disputes involving enforcement of the Proprietary Information And Inventions
Agreement), arising from or regarding the interpretation, performance,
enforcement or breach of this Agreement (including Exhibit B) shall be resolved
by confidential, final and binding arbitration (rather than trial by jury or
court or resolution in some other forum), by a single arbitrator, conducted by
Judicial Arbitration and Mediation Services, Inc. ("JAMS") in San Francisco,
California, under the then-existing JAMS employment arbitration rules and
procedures. Nothing in this Agreement shall prevent either party from seeking to
obtain injunctive relief in court to preserve the status quo or prevent
irreparable harm pending the conclusion of any such arbitration.

    19. Miscellaneous.  This Agreement, including Exhibits A, B, C and D,
constitutes the complete, final and exclusive embodiment of the entire agreement
between you and the Company with regard to these subject matters. It is entered
into without reliance on any promise or representation, written or oral, other
than those expressly contained herein, and it supersedes and merges any other
such promises, warranties or representations. This Agreement may not be modified
or amended except in a writing signed by both you and a duly authorized officer
of the Company. This Agreement will bind the heirs, personal representatives,
successors and assigns of both you and the Company, and inure to the benefit of
both you and the Company, their heirs, successors and assigns. The failure to
enforce any breach of this Agreement shall not be deemed to be a waiver of any
other or subsequent breach. For purposes of construing this Agreement, any
ambiguities shall not be construed against either party as the drafter. If any
provision of this Agreement is determined to be invalid or unenforceable, in
whole or in part, this determination will not affect any other provision of this
Agreement and the provision in question will be modified so as to be rendered
enforceable in a manner consistent with the intent of the parties insofar as
possible. This Agreement will be deemed to have been entered into and will be

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construed and enforced in accordance with the laws of the State of California as
applied to contracts made and to be performed entirely within California. This
Agreement may be executed in counterparts or with facsimile signatures, which
shall be deemed equivalent to originals.

    If this Agreement is acceptable to you, please sign below and return one
original to me, and sign and return to me the Supplemental Release on or after
March 31, 2002. I wish you all the best in your future endeavors.

Sincerely,
 
 
Wind River Systems, Inc.
 
 
By: /s/ JOHN BRENNAN   

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Exhibit A—Proprietary Information And Inventions Agreement
Exhibit B—Supplemental Release     Exhibit C—Stock Option Vesting Schedule    
Exhibit D—Split Dollar Life Cost Schedule    
AGREED AND ACCEPTIED:
 
 
By: /s/ RICHARD KRABER   

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RICHARD KRABER
 
 
6/27/01

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Date

 
 

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EXHIBIT A

Invention Assignment And
Proprietary Information Agreement

    In consideration of my employment or continued employment by Wind River
Systems, Inc. (the "Company") and the compensation now and hereafter paid to me,
I hereby represent and agree as follows:

1.I understand that the Company is engaged in a continuous program of research,
development, production and marketing in connection with its business and that,
as an essential part of my employment with the Company, I am expected to make
new contributions to and create inventions of value for the Company.

2.I will promptly disclose in confidence to the Company all inventions,
improvements, original works of authorship, formulas, processes, computer
programs, databases and trade secrets ("Inventions"), whether or not patentable,
copyrightable or protectable as trade secrets, that are made or conceived or
first reduced to practice or created by me, either alone or jointly with others,
during the period of my employment, whether or not in the course of my
employment, which are related in any way to the business of the Company, similar
to or competitive with the products or research and development activities of
the Company, or sold to the Company's customers or potential customers.

3.I agree that all Inventions that (a) are developed using equipment, supplies,
facilities or trade secrets of the Company, (b) result from work performed by me
for the, Company or (c) relate to the business or the actual or anticipated
research or development of the Company, will be the sole and exclusive property
of and are hereby assigned to the Company. I understand that the provisions of
this paragraph do not apply to any Invention that qualifies fully under
Section 2870 of the California Labor Code, which is set forth in the Appendix to
this Agreement.

4.I acknowledge that all original works of authorship which are made by me
(solely or jointly with others) within the scope of my employment and which are
protectable by copyright are "works made for hire," as that term is defined in
the United States Copyright Act (17 U.S.C. Section 101).

5.I agree to assist the Company in every proper way to obtain for the Company
and enforce patents, copyrights and other legal protections for the Company's
inventions in any and all countries. I will execute any documents that the
Company may reasonably request for use in obtaining or enforcing such patents,
copyrights and other legal protections. My obligations under this paragraph will
continue beyond the termination of my employment with the Company, provided that
the Company will compensate me at a reasonable rate after such termination for
time actually spent by me at the Company's request on such assistance. In the
event the Company is unable for any reason, after reasonable effort, to secure
my signature on any document needed in connection with the actions specified in
this paragraph, I hereby irrevocably appoint the Company and its duly authorized
officers and agents as my agent and attorney in fact, which appointment is
coupled with an interest, to act for and in my behalf to execute, verify and
file any such documents and to do all other lawfully permitted acts to further
the purposes of the preceding paragraph with the same legal force and effect as
if executed by me. I hereby waive and quitclaim to the Company any and all
claims, of any nature whatsoever, which I now or may hereafter have for
infringement of any Proprietary Rights assigned hereunder to the Company.

6.I understand that my employment by the Company creates a relationship of
confidence and trust with respect to any information of a confidential or secret
nature that may be disclosed to me by the Company that relates to the business
of the Company or to the business of any parent, subsidiary, affiliate, customer
or supplier of the Company or other third party ("Proprietary Information").
Such Proprietary Information includes but is not limited to Inventions, ideas,
data,

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know-how, developments, designs, techniques, marketing plans, product plans,
business strategies, financial information, forecasts, personnel information and
customer lists.

7.At all times, both during my employment and after its termination, I will keep
all such Proprietary Information in confidence and trust, and I will not use or
disclose any of such Proprietary Information without the written consent of the
Company, except as may be necessary to perform my duties as an employee of the
Company. Upon termination of my employment with the Company, I will promptly
deliver to the Company all documents and materials of any nature pertaining to
my work with the Company and I will not take with me any documents or materials
or copies thereof containing any Proprietary Information.

8.I agree that during the period of my employment by the Company I will not,
without the Company's express written consent, engage in any employment or
business activity other than for the Company. I agree further that for the
period of my employment with the Company and for one (1) year after the date of
termination of my employment with the Company, I will not (i) induce any
employee of the Company to leave the employ of the Company or (ii) solicit the
business of any client or customer of the Company (other than on behalf of the
Company).

9.I represent that my performance of all terms of this Agreement and my duties
as an employee of the Company will not breach any invention assignment or
proprietary information agreement with any former employer or other party. I
represent that I will not bring with me to the Company or use in the performance
of my duties for the Company any documents or materials of a former employer
that are not generally available to the public.

10.To preclude any possible uncertainty, I have set forth on Exhibit A attached
hereto a complete list of all Inventions that I have, alone or jointly with
others, conceived, developed or reduced to practice or caused to be conceived,
developed or reduced to practice prior to the commencement of my employment with
the Company, that I consider to be my property or the property of third parties
and that I wish to have excluded from the scope of this Agreement. If disclosure
of any such Invention on Exhibit A would cause me to violate any prior
confidentiality agreement, I understand that I am not to list such Inventions in
Exhibit A but am to inform the Company that all such Inventions have not been
listed for that reason.

11.This Agreement will be governed by and construed according to the laws of the
State of California. If any provision of this Agreement is deemed unenforceable
by law, then such provision will be deemed stricken from this Agreement, unless
it can be modified by a court so as to render it enforceable consistent with the
intent of the Agreement, and the remaining provisions will continue in full
force and effect. I understand that in the event of a breach or threatened
breach of this Agreement by me the Company may suffer irreparable harm and will
therefore be entitled to injunctive relief to enforce this Agreement.

12.This Agreement is the final, complete and exclusive agreement of the parties
with respect to the subject matter hereof and supersedes all prior
representations. No modification of or amendment to this Agreement, nor any
waiver of any rights under this Agreement, will be effective unless in writing
and signed by the party to be charged.

13.The provisions of this Agreement shall survive the termination of my
employment and the assignment of this Agreement by the Company to any successor
in interest or other assignee.

14.I understand that this Agreement does not constitute a contract of employment
or obligate the Company to employ me for any stated period of time. This
Agreement shall be effected as of the first day of my employment by the Company.

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I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS. I HAVE COMPLETELY
FILLED OUT EXHIBIT A TO THIS AGREEMENT.

 
   
   
   
Employee   Company
By:
 
/s/ Richard W. Kraber
 
By:
 
/s/ Kathy Doyle    

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Title:
 
V.P. Finance, CFO
 
Title:
 
H.R. Rep    

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Date:
 
9/1/95
 
Date:
 
9/1/95    

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EXHIBIT A

PRIOR INVENTIONS

    The following is a complete list of all inventions or improvements relevant
to the subject matter of my employment by Wind River Systems, Inc. (the
"Company") that have been made or conceived or first reduced to practice by me
alone or jointly with others prior to my engagement by the Company:

/x/   No inventions or improvements.
/ /
 
See below:
 
 

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/ /
 
Due to confidentiality agreements with prior employer, I cannot disclose certain
inventions that would otherwise be included on the above-described list.
/ /
 
Additional sheet attached.

    /s/ Richard W. Kraber

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Employee Signature
 
 
Richard W. Kraber

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Employee—Print Name
 
 
9/1/95

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Date

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APPENDIX

California Labor Code Section 2870

(a)Any provision in an employment agreement which provides that an employee
shall assign, or offer to assign, any of his or her rights in an invention to
his or her employer shall not apply to an invention that the employee developed
entirely on his or her own time without using the employer's equipment,
supplies, facilities, or trade secret information except for those inventions
that either:

(1)Relate at the time of conception or reduction to practice of the invention to
the employer's business, or actual or demonstrably anticipated research or
development of the employer; or

(2)Result from any work performed by the employee for the employer.
(b)To the extent a provision in an employment agreement purports to require an
employee to assign an invention otherwise excluded from being required to be
assigned under subdivision (a), the provision is against the public policy of
this state and is unenforceable.

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EXHIBIT B

SUPPLEMENTAL RELEASE

(To be signed on or after March 31, 2002)

    In further exchange for the consideration under the separation agreement
between Wind River Systems, Inc. (the "Company") and me dated June 27, 2001 (the
"Separation Agreement"), I hereby release, acquit and forever discharge the
Company, its officers, directors, agents, employees, attorneys, shareholders,
successors, assigns and affiliates, of and from any and all claims, liabilities,
demands, causes of action, costs, expenses, attorneys fees, damages, indemnities
and obligations of every kind and nature, in law, equity, or otherwise, known
and unknown, suspected and unsuspected, disclosed and undisclosed, arising out
of or in any way related to agreements, events, acts or conduct at any time
prior to and including the date I sign this Supplemental Release, including but
not limited to: all such claims and demands directly or indirectly arising out
of or in any way connected with my employment with the Company or the
termination of that employment; claims or demands related to salary, bonuses,
commissions, stock, stock options, or any other ownership interests in the
Company, vacation pay, fringe benefits, expense reimbursements, severance pay,
or any other form of compensation; claims pursuant to any federal, state or
local law, statute, or cause of action including, but not limited to, the
federal Civil Rights Act of 1964, as amended; the federal Americans with
Disabilities Act of 1990; the federal Age Discrimination in Employment Act of
1967, as amended, ("ADEA"); the California Fair Employment and Housing Act, as
amended tort law; contract law; wrongful discharge; discrimination; harassment;
fraud; defamation; emotional distress; and breach of the implied covenant of
good faith and fair dealing. However, this Agreement shall not relieve or limit
the obligation of the Company to indemnify Kraber in accordance with, and
subject to the limitations of, California Corporations Code section 317 and/or
the bylaws of the Company for claims or actions filed against Kraber arising out
of his performance of his normal duties during the time he was an officer of the
Company. This release shall become effective upon the receipt by Kraber of the
sums specified in Paragraph 2(a and b) above.

    In exchange for the consideration provided to the Company under this
Agreement, including your agreement to work for the Company during the
transition periods described above, the Company hereby generally releases,
acquits and forever discharges you, and your attorneys, successors,
representatives and assigns, of and from any and all claims, liabilities,
demands, causes of action, costs expenses, attorneys' fees, damages, indemnities
and obligations of every kind and nature, in law, equity, or otherwise, known
and unknown, suspected and unsuspected, disclosed and undisclosed, arising out
of or in any way related to agreements, events, acts or conduct at any time
prior to and including the date of this Agreement, including but not limited to:
all such claims and demands directly or indirectly arising out of or in any way
connected with your employment with the Company, the performance of your duties
as an officer of the Company or your retirement from such employment, provided,
however, that the Company is not releasing any claims arising from any acts or
omissions by you occurring on or before the Effective Date of this Agreement of
which the Company becomes aware and gives you written notice on or before the
Separation Date.

    I acknowledge that I am knowingly and voluntarily waiving and releasing any
rights I may have under the ADEA, as amended. I also acknowledge that the
consideration given for the waiver and release in the preceding paragraph hereof
is in addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA,
that: (a) my waiver and release do not apply to any rights or claims that may
arise after the date I sign this Supplemental Release; (b) I have been advised
hereby that I have the right to consult with an attorney prior to executing this
Supplemental Release; (c) I have had twenty-one (21) days to consider this
Supplemental Release; (d) I have seven (7) days following the date I sign this
Supplemental Release to revoke it and (e) this Supplemental Release will not be
effective until the date upon which the

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revocation period has expired, which will be the eighth day after I sign this
Supplemental Release ("Release Effective Date").

    I UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN
CLAIMS. In granting the releases herein, which includes claims which may be
unknown to the parties at present, the parties hereby acknowledge that they have
read and understand Section 1542 of the California Civil Code, which states: "A
general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if
known by him must have materially affected his settlement with the debtor." The
parties hereby expressly waive and relinquish all rights and benefits under that
section and any law of any jurisdiction of similar effect with respect to their
releases of claims hereby.

 
 
By:
 
    

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Richard Kraber
 
 
Date:
 

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EXHIBIT C

Personnel Option Status
AS OF 3/31/02
Richard W. Kraber
 
Wind River Systems, Inc.
ID: 94-2873391
500 Wind River Way
Alameda, CA 94501

Number

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Option Date

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Plan

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Type

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Granted

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Price

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Exercised

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Vested

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Cancelled

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Unvested

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Outstanding

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Exercisable

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871006   8/31/95   87EI   NQ   253,125   $ 4.6608   253,125   253,125   0   0  
0   0 871086   1/31/96   87EI   NQ   20,250   $ 7.14666   20,250   20,250   0  
0   0   0 871333   7/23/96   87EI   NQ   64,125   $ 11.14666   64,125   64,125  
0   0   0   0 872051   7/24/97   87EI   NQ   45,000   $ 25.375   37,500   45,000
  0   0   7,500   7,500 872105   9/8/97   87EI   NQ   105,000   $ 27.33333  
20,626   105,000   0   0   84,374   84,374 8718   5/13/98   87EI   NQ   45,000  
$ 22.45833   28,125   43,125   0   1,875   16,875   15,000 EI003   4/13/99  
98EI   NQ   45,000   $ 13.625   17,812   32,812   0   12,188   27,188   15,000
EI41   5/6/99   98EI   NQ   15,000   $ 14.25   5,937   10,625   0   4,375  
9,063   4,688 009305   4/17/00   98EI   NQ   26,460   $ 29.50   0   12,678   0  
13,782   26,460   12,678 012154   10/13/00   98EI   NQ   7,050   $ 36.375   0  
2,496   0   4,554   7,050   2,496 012164   10/13/00   98EI   NQ   7,050   $
36.375   0   7,050   0   0   7,050   7,050                

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                633,060         447,500   596,286   0   36,774   185,560  
148,786

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EXHIBIT D
Original Projections—Based on 10% Gross Growth Rate
SPLIT DOLLAR PLAN FOR RICHARD KRABER—JOINT LIFE EQUIVALENT
$2,000,000 VARIABLE UNIVERSAL JOINT LIFE
—Projected 5-Pay Premium Assuming 10% Gross Growth Rate—

 
   
 

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  WIND RIVER SYSTEMS, INC.

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  EXECUTIVE

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  TOTAL INSURANCE BENEFIT

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  -1-

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  -2-

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  -3-

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  -4-

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  -5-

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  -6-

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  -7-

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  -8-

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  -9-

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  -10-

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  -11-

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  -12-

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  -13-

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Year

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  Age

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  Total
Annual
Premium

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  Net
Corporate
Premium

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  Cumulative
Corporate
Premium

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  After-tax
Cost of
"US38"
Bonus

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  Corporate
Net Cash
Value

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  Corporate
Net Death
Benefit

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  Bonus from
Company
"US 38"
Costs

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  Tax on
"US 38"
Bonus

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  Net Cash
Value

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  Net Death
Benefit

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  IRR on Exec.
Contribution
to Trust's
Death Benefit

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  Total
Cash
Value

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  Total
Death
Benefit

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  Col. 1 - Col. 7
less rollouts

  Cumulative of Col. 2

  Col. 7 * 40%

  Lesser of Col. 3 or Col. 12

  Col. 3

  ecomomic benefit

  based on a 40% tax bracket

  Col. 12 - Col. 5

  Col. 13 - Col. 6

  IRR Col. 7 to Col. 10

   
   
1998   57   $ 67,909   $ 67,372   $ 67,372   $ 322   $ 54,138   $ 67,372     537
  $ 215   $ 0   $ 2,000,000   372565%   $ 54,138   $ 2,067,372 1999   58    
67,909     67,277     134,649     379     122,026     134,649     632     253  
  0     2,000,000   5946%     122,026     2,134,649 2000   59     67,909    
67,163     201,812     448     189,717     201,812     746     299     0    
2,000,000   1409%     189,717     2,201,812

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2001   60     67,909     67,028     268,840     529     266,266     268,840    
881     352     0     2,000,000   649%     266,266     2,268,840

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2002   61     67,909     66,868     335,708     624     335,708     335,708    
1,041     416     13,158     2,000,000   390%     348,867     2,335,709 2003  
62     0 *   (1,231 )   334,478     738     334,478     334,478     1,231    
492     41,635     2,000,000   269%     376,112     2,334,478 2004   63     0 *
  (1,454 )   333,024     872     333,024     333,024     1,454     582    
71,843     2,000,000   202%     404,868     2,333,024 2005   64     0 *   (1,722
)   331,302     1,033     331,302     331,302     1,722     689     103,828    
2,000,000   159%     435,131     2,331,303 2006   65     0 *   (2,035 )  
329,267     1,221     329,267     329,267     2,035     814     139,208    
2,000,000   130%     468,475     2,329,267 2007   66     0 *   (2,409 )  
326,858     1,445     326,858     326,858     2,409     964     178,271    
2,000,000   110%     505,129     2,326,858 Subtotals   $ 339,545 * $ 326,858   $
326,858   $ 1,445   $ 326,858   $ 326,858   $ 12,687   $ 964   $ 178,271   $
2,000,000   110%   $ 505,129   $ 2,326,858 2008   67     0 *   (2,854 )  
324,004     1,712     324,004     324,004     2,854     1,141     221,420    
2,000,000   94%     545,425     2,324,004 2009   68     0 *   (3,377 )   320,627
    2,026     320,627     320,627     3,377     1,351     268,616     2,000,000
  82%     589,243     2,320,627 2010   69     0 *   (4,000 )   316,627     2,400
    316,627     316,627     4,000     1,600     320,211     2,000,000   72%    
636,838     2,316,627 2011   70     0 *   (4,735 )   311,892     2,841    
311,892     311,892     4,735     1,894     376,542     2,000,000   65%    
688,434     2,311,892 2012   71     0 *   (5,605 )   306,287     3,363    
306,287     306,287     5,605     2,242     438,017     2,000,000   58%    
744,304     2,306,287 2013   72     0 *   (306,287 )   Rollout from policy
values     0     306,287     0     471,854     2,000,000   49%     471,854    
2,000,000 2014   73     0 *   0     0     0     0     0     0     0     508,115
    2,000,000   44%     508,115     2,000,000 2015   74     0 *   0     0     0
    0     0     0     0     546,793     2,000,000   39%     546,793    
2,000,000 2016   75     0 *   0     0     0     0     0     0     0     587,857
    2,000,000   34%     587,857     2,000,000 2017   76     0 *   0     0     0
    0     0     0     0     631,215     2,000,000   30%     631,215    
2,000,000 Subtotals   $ 339,545   $ 0   $ 0   $ 0   $ 0   $ 0   $ 339,545   $ 0
  $ 631,215   $ 2,000,000   30%   $ 631,215   $ 2,000,000 2018   77     0 *   0
    0     0     0     0     0     0     676,867     2,000,000   27%     676,867
    2,000,000 2019   78     0 *   0     0     0     0     0     0     0    
724,722     2,000,000   24%     724,722     2,000,000 2020   79     0 *   0    
0     0     0     0     0     0     774,609     2,000,000   21%     774,609    
2,000,000 2021   80     0 *   0     0     0     0     0     0     0     826,296
    2,041,966   19%     826,296     2,041,966 2022   81     0 *   0     0     0
    0     0     0     0     879,398     2,202,455   18%     879,398    
2,202,455 2023   82     0 *   0     0     0     0     0     0     0     933,603
    2,376,797   18%     933,603     2,376,797 2024   83     0 *   0     0     0
    0     0     0     0     988,572     2,566,259   17%     988,572    
2,566,259 2025   84     0 *   0     0     0     0     0     0     0    
1,043,805     2,771,921   16%     1,043,805     2,771,921 2026   85     0 *   0
    0     0     0     0     0     0     1,099,379     2,995,192   16%    
1,099,379     2,995,192 2027   86     0 *   0     0     0     0     0     0    
0     1,154,179     3,236,431   15%     1,154,179     3,236,431 Totals   $
339,545   $ 0   $ 0   $ 0   $ 0   $ 0   $ 339,545   $ 0   $ 1,154,179   $
3,236,431   15%   $ 1,154,179   $ 3,236,431

Insurance values are not valid without complete ledger illustrations.
Insurance values are based on an average gross return on invested funds of 10%.
Insurance values are based on current insurance company mortality charges,
expenses, and taxes.
Insurance values are based on projections and are not guaranteed or estimates of
the future.
* Based on the current crediting rate and insurance company assumptions, policy
values are projected to be sufficient to pay future insurance charges, but are
not guaranteed.
Insurance values are based on a male age 57 and a female age 57 both non-smokers
in good health.
Assumes both insureds survive to the time of rollout and that "PS 58" term rates
and "US 38" rates (joint survivor) are used to measure the annual economic
benefit.
Sitzmann, Morris and Lavis does not provide legal or accounting advice. Please
consult your legal and accounting advisors in these areas.

20-Jun-01

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Exhibit 10.49