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EXHIBIT 4.9  

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). NO TRANSFER OF THIS WARRANT SHALL BE VALID OR EFFECTIVE UNLESS SUCH TRANSFER IS
MADE (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, OR (B) AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

	Warrant No.-    	 	Date: December 15, 2004

 
 

WARRANT TO PURCHASE COMMON STOCK
  OF
  WORLDGATE COMMMUNICATIONS, INC.    
    

        This certifies that, for value received, receipt and sufficiency of which are hereby acknowledged, K.Y. Chou (the
"Holder"), is entitled, subject to the terms and conditions set forth below, to purchase from WorldGate Communications, Inc., a Delaware
corporation (the "Company"), 62,500 validly issued, fully paid and nonassessable shares (the "Warrant
Shares") of Common Stock of the Company, par value $0.01 per share (the "Common Stock"), subject to adjustment as provided
herein, at a purchase price equal to $2.88 per share (the "Exercise Price"). 

        The
term "Warrant" as used herein shall mean this Warrant, and any warrants delivered in substitution or exchange therefor as provided
herein. 

        1.    Term of Warrant.    Subject to the terms and conditions set forth herein, this Warrant shall be exercisable, in
whole or in part, during the term commencing on December 15, 2005 and ending at 5:00 P.M. (United States Eastern Time) on December 14, 2010 (subject to extension as provided
below, the "Exercise Period"); provided, however, that
in the event that the expiration date of this Warrant shall fall on a day that is not a Business Day (defined below), the expiration date for this Warrant shall be extended to 5:00 P.M. (United
States Eastern Time) on the Business Day following such date. The term "Business Day" shall mean any day except a Saturday, Sunday or any day on which
banking institutions are authorized or required to close in the city of New York, New York. 

        2.    Exercise of Warrant.    

        (a)   This
Warrant may be exercised by the Holder, in whole or in part, by (i) the surrender of this Warrant to the Company, with the Notice of Exercise annexed hereto
duly completed and executed on behalf of the Holder and delivered to the Company during the Exercise Period and (ii) the delivery of payment to the Company of the Exercise Price for the number
of Warrant Shares specified in the Notice of Exercise. The Exercise Price shall be payable in cash or its equivalent, payable by wire transfer of immediately available funds to a bank account
specified by the Company or by certified or bank cashiers' check in lawful money of the United States of America. 

        (b)   The
Company agrees that such Warrant Shares shall be deemed to be issued to the Holder as the record holder of such Warrant Shares as of the close of business on the
date on which this Warrant shall have been surrendered and payment made for the Warrant Shares as aforesaid. A stock certificate or certificates for the Warrant Shares specified in the Notice of
Exercise shall be delivered to the Holder as promptly as practicable, and in any event within five days thereafter. If this Warrant shall have been exercised only in part, the Company shall, at the
time of delivery of the stock certificate or certificates, deliver to the Holder a new Warrant evidencing the rights to purchase the remaining Warrant Shares, which new Warrant shall in all other
respects be identical with this Warrant. 

        3.    No Fractional Shares or Scrip.    No fractional shares or scrip representing fractional shares shall be issued
upon the exercise of this Warrant. In lieu of any fractional share to which the Holder would otherwise be entitled, the Company shall make a cash payment equal to the fair market value 

1

 

multiplied
by such fraction or, at the Company's option, round such fractional share to the nearest whole share. The fair market value shall be determined by the Company's Board of Directors. 

        4.    Replacement of Warrant.    On receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the
case of mutilation, on surrender and cancellation of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and amount. 

        5.    Rights of Stockholders.    Subject to the provisions of Sections 6 and 8 hereof, the Holder shall not be
entitled to vote or receive dividends or be deemed the holder of Common Stock or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, nor shall
anything contained herein be construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter
submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par
value, or change of stock to no par value, consolidation, merger, conveyance or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise until the
Warrant shall have been exercised as provided herein. 

        6.    Adjustments.    

        (a)    Adjustment for Stock Splits and Combinations.    If the Company shall effect a subdivision of the outstanding
shares of the Company's Common Stock, then the Exercise Price then in effect immediately before that subdivision shall be proportionately decreased and the number of shares of Common Stock issuable
upon any exercise of such warrant shall be proportionally increased, and conversely, if the Company combines the outstanding shares of the Company's Common Stock into a smaller number of shares, the
Exercise Price then in effect immediately before the combination shall be proportionately increased and the number of shares of Common Stock issuable upon any exercise of such warrant shall be
proportionally decreased. 

        (b)    Adjustment for Certain Dividends and Distributions.    If the Company makes or fixes a record date for the
determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in additional shares of Common Stock, then and in each such event (i) the Exercise Price
then in effect shall be decreased as of the time of such issuance or, in the event such record date is fixed, as of the close of business on such record date, by multiplying the Exercise Price then in
effect by a fraction (1) the numerator of which is the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on
such record date, and (2) the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution, and (ii) the number of shares of Common Stock issuable upon exercise
of this Warrant at such time shall be increased as of the time of such issuance, or in the event such record date is fixed, as of the close of business on such record date, by multiplying the number
of shares issuable upon any exercise of this Warrant by a fraction (1) the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the
time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution, and (2) the denominator of
which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date; provided, however, that if
such record date is fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Exercise Price and the number of shares of Common Stock issuable
upon any exercise of this Warrant shall be recomputed 

2

 

accordingly
as of the close of business on such record date and thereafter the Exercise Price shall be adjusted pursuant to this section as of the time of actual payment of such dividends or
distributions. 

        (c)    Adjustments for Other Dividends and Distributions.    In the event the Company at any time prior to exercise of
this Warrant shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Company
(other than Common Stock for which an adjustment is made pursuant to Section 6(a), Section 6(b) or Section 6(d) hereof) or in cash or other property, then and in each such event
provision shall be made so that the Holder shall receive upon exercise hereof, in addition to the number of shares of Common Stock issuable hereunder, the kind and amount of securities of the Company
and/or cash and other property which the Holder would have been entitled to receive had this Warrant been exercised into Common Stock on the date of such event and had the Holder thereafter, during
the period from the date of such event to and including the Exercise Date, retained any such securities receivable, giving application to all adjustments called for during such period under this
Section 6 with respect to the rights of the Holder. 

        (d)    Reorganizations, Mergers, Consolidations or Transfers of Assets.    If at any time or from time to time there
is a capital reorganization of the Common Stock or other securities that will be issuable upon exercise of this Warrant, or a merger, consolidation or binding share exchange of the Company with or
into another entity, or the transfer of all or substantially all of the Company's properties and assets to any other entity, then, as a part of such capital reorganization, merger, consolidation,
exchange or transfer, provision shall be made so that Holder shall thereafter be entitled to receive upon exercise of this Warrant the number of shares of stock or other securities, cash or property
to which a holder of
the number of shares of Common Stock or other securities otherwise deliverable upon exercise of this Warrant would have been entitled on such capital reorganization, merger, consolidation, exchange or
transfer in respect of such Common Stock or other securities. In any such case, appropriate adjustment shall be made in the application of the provisions of this Section 6 to the end that the
provisions of this Section 6 (including adjustment of the then in effect Exercise Price and the number of shares purchasable upon exercise of this Warrant) shall be applicable after that event
and be as nearly equivalent as may be practicable. Upon the consummation of such capital reorganization, merger, consolidation, exchange or transfer, the successor (if other than the Company)
resulting from such transaction or the entity acquiring such assets or other appropriate entity shall assume, by written instrument, the obligation to deliver to Holder such securities, cash or other
property as, in accordance with the foregoing provisions, Holder may be entitled to purchase pursuant to this Warrant. 

        (e)    Certificate of Adjustment.    Upon the occurrence of each adjustment or readjustment pursuant to this
Section 6 of the Exercise Price, the number of Warrant Shares or other securities issuable upon exercise of this Warrant, the Company shall promptly compute such adjustment or readjustment in
accordance with the terms hereof and furnish to the Holder a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other property for which
this Warrant shall be exercisable and the Exercise Price) and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time
of the Holder, furnish or cause to be furnished to the Holder a certificate setting forth (i) the Exercise Price then in effect and (ii) the number of Warrant Shares and the amount, if
any, of other securities, cash or property which then would be received upon the exercise of this Warrant. 

        (f)    In
case: 

          (i)  the
Company shall declare a dividend or other distribution on its Common Stock; 

         (ii)  the
Company or any of its subsidiaries shall make a tender offer for the Common Stock; 

3

 

        (iii)  the
Company shall authorize the granting to holders of its Common Stock of rights, options or warrants to subscribe for or purchase any shares of capital stock of any
class; 

        (iv)  of
any reclassification of the Common Stock (other than a subdivision or combination of its outstanding shares of Common Stock), or of any consolidation, merger or
share exchange to which the Company is a party and for which approval of any stockholders of the Company is required, or of the sale or transfer of all or substantially all of the assets of the
Company; or 

         (v)  of
the voluntary of involuntary dissolution, liquidation or winding up of the Company; 

then
the Company shall cause to be mailed to the Holder of this Warrant, at least ten days prior written notice stating (A) the date on which a record has been taken for the purpose of such
dividend, distribution or grant of rights, options or warrants, or, if record is not to be taken, the date as of which the identity of the holders of Common Stock of record entitled to such dividend,
distribution, rights, options or warrants is to be determined, (B) the date on which a record shall be taken for determining rights to vote, if any, in respect of the matters referred to in
clauses (i) through (v), and (C) the date on which such reclassification, consolidation, merger, share exchange, sale, transfer, dissolution, liquidation or winding up is expected to
become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, share exchange, sale, transfer, dissolution, liquidation or winding up. 

        7.    Transfers.    

        (a)   The
Warrant Shares shall not be sold or transferred unless either (i) they first shall have been registered under the Act and any other applicable securities
laws, or (ii) the Company first shall have been furnished with an opinion of legal counsel, reasonably satisfactory to the Company, to the effect that such sale or transfer is exempt from the
registration requirements of the Act and any other applicable securities laws. Notwithstanding the foregoing, no opinion of counsel shall be required for a transfer by a holder of Warrant Shares
(1) which is a corporation to an affiliate of such corporation, (2) which is a partnership to a partner of such partnership or a retired partner of such partnership or to the estate of
any such partner or retired partner, or (3) which is a limited liability company to a member of such limited liability company or a retired member or to the estate of any such member or retired
member; provided that in each case the transferee in each case executes the Assignment Form attached hereto. 

        (b)   In
addition, (i) the Holder shall not transfer all or any portion of the Warrant Shares issued upon exercise of this Warrant to any person or entity (other than
to an affiliate of the Holder) on or before the thirty-fifth (35th) day following the exercise of this Warrant and (ii) the Holder shall not assign, pledge, hypothecate, sell or
otherwise transfer this Warrant (other than to an affiliate of the Holder) without the prior written consent of the Company, which consent will not be unreasonably withheld, delayed or conditioned. 

        8.    Covenants of the Company.    The Company hereby covenants and agrees that: 

        (a)   during
the term of this Warrant, the Company will reserve a sufficient number of shares of authorized and unissued Common Stock to provide for the issuance of Common
Stock, which shares shall be duly authorized, fully paid and non-assessable, upon the exercise of this Warrant
and, from time to time, will take all steps necessary to amend its Certificate of Incorporation to provide sufficient reserves of shares of Common Stock issuable upon exercise of the Warrant; 

        (b)   the
Company will not, by amendment of its Certificate of Incorporation or through reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of
all such terms. 

4

 

        (c)   all
shares that may be issued upon the exercise of this Warrant, upon exercise of this Warrant and payment of the Exercise Price, all as set forth herein, will be free
from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously or otherwise specified herein); and 

        (d)   issuance
of this Warrant by the Company shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and
issue the necessary certificates for shares of Common Stock upon the exercise of this Warrant 

        9.    Notices.    Any notice or other communication to the Company or to Holder regarding the Warrant shall be in
writing and shall be deemed duly given or made when hand delivered, when delivered by overnight courier or three business days after mailed by registered or certified mail, return receipt requested,
postage prepaid and, if to the Company, to the Company's office at 3190 Tremont Avenue, Trevose, PA 19053, or such other address as the Company may designate by notice to Holder and, if to Holder, to:
                        , or such other address as Holder may designate by prior written notice to the Company. 

        10.    Amendments.    Neither this Warrant nor any term hereof may be amended, waived, discharged or terminated other
than by a written instrument signed by the Company and the Holder. 

        11.    Governing Law.    This Warrant shall be governed in all respects by the internal laws of the State of Delaware
as applied to contracts entered into solely between residents of, and to be performed entirely within, such state, and without reference to principles of conflicts of laws or choice of laws. 

        12.    Successors and Assigns.    This Warrant shall be binding upon the Company's successors and assigns and shall
inure to the benefit of the Holder's successors, legal representatives and assigns. 

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        IN
WITNESS WHEREOF, WORLDGATE COMMUNICATIONS, INC. has caused this Warrant to be executed by its authorized officer. 

	 	 	WORLDGATE COMMMUNICATIONS, INC.
	

 	
 	

 	

 
	 	 	By:	 
	 	 	 	

	 	 	Name:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

6

 
 

NOTICE OF EXERCISE    
    

To:
WORLDGATE COMMMUNICATIONS, INC. 

        (1)   The
undersigned hereby elects to purchase                        shares of Common Stock of WorldGate Communications, Inc.,
pursuant to the terms of the attached Warrant,
and tenders herewith payment of the purchase price for such shares in full. 

        (2)   Please
issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below: 

	 	 	
 (Name)
	

 	
 	

 (Name)

        (3)   Please
issue a new Warrant for the unexercised portion of the attached Warrant in the name of the undersigned or in such other name as is specified below: 

	 	 	
 (Name)
	

 	
 	

 
	
 (Date)	 	
 (Signature)

 
 

ASSIGNMENT FORM    
    

        FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the
undersigned under the within Warrant, with respect to the number of shares of Common Stock set forth below: 

	Name of Assignee
 
	 	Address
	 	No of Shares

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

and
does hereby irrevocably constitute and appoint as Attorney                        to make such transfer on the books of WORLDGATE
COMMUNICATIONS, INC., maintained for the purpose, with full power
of substitution in the premises. 

	Dated:	 	 	 	 
	 	 	
	 	 
	

 	
 	

 	
 	

 Signature of Holder
	

 	
 	

 	
 	

 Signature of Assignee

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WARRANT TO PURCHASE COMMON STOCK OF WORLDGATE COMMMUNICATIONS, INC.

NOTICE OF EXERCISE

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EXHIBIT 10.14    
    

	 

2004  

 Employee Long-term Incentive Plan  

 NovAtel Inc.  

	Section 1 — Plan Objectives	 	3
	
 Section 2 — Definitions	
 	

3
	
 Section 3 — Effective Date	
 	

3
	
 Section 4 — Eligibility and Participation	
 	

3
	
 Section 5 — Administration and Interpretation of Plan	
 	

3
	
 Section 6 — Description of the Plan	
 	

4
	
 Section 7 — Payment	
 	

5
	
 Section 8 — Termination of Employment	
 	

5
	
 Section 9 — Change of Control and Other Transformative Events	
 	

5
	
 Section 10 — Non-Assignability of Phantom Shares	
 	

5
	
 Section 11 — Unrestricted Free Administration	
 	

6
	
 Section 12 — No Employment Guarantees	
 	

6
	
 Section 13 — Tax Implications	
 	

6
	
 Section 14 — Applicable Laws	
 	

6
	
 Appendix A — Agreement	
 	

7

   SECTION 1 — PLAN OBJECTIVES  

	1.1
	The objectives of the NovAtel Inc. Employee Long Term Incentive Plan are as follows:

	•
	To
encourage the participants to direct their efforts on sustained growth of share holder value by focusing on revenue growth, operating profit growth, and the long term
success of the Company.

	•
	To
reward the participants for achieving or exceeding pre-determined long term objectives which are key measures to the Company's success.

	•
	To
align the interests of participants with those of the shareholders.

	•
	To
retain and recruit key employees. 

SECTION 2 — DEFINITIONS  

For
the purposes of the Plan, the words and expressions defined below shall have the following meaning: 

	2.1
	"Board of Directors" means the board of Directors of the Company.

	2.2
	"Company" means NovAtel Inc.

	2.3
	"Participant" means a permanent employee at the time the Agreement in Appendix A of this Plan is duly executed, provided the
Participant signs it within the prescribed time limit.

	2.4
	"Phantom Share" means a fictional share of the Company.

	2.5
	"Plan" means this 2004 Employee Long Term Incentive plan as well as any appendices thereto which are an integral part thereof.

	2.7
	In this Plan, except if otherwise required by the context, the singular shall include the plural and vice-versa, and the
masculine shall include the feminine and vice-versa. 

SECTION 3 — EFFECTIVE DATE  

	3.1
	January 1, 2004. 

SECTION 4 — ELIGIBILITY AND PARTICIPATION

	4.1
	All permanent employees at the time of grant shall be eligible to participate in the Plan.

	4.2
	An employee becomes a Participant following a notice to this effect from the Board of Directors and the execution of the appendix
attached hereto (Appendix A) within 30 days of the date the Phantom Shares are granted. 

SECTION 5 — ADMINISTRATION AND INTERPRETATION OF PLAN

	5.1
	Plan Obligations

The
Board of Directors is ultimately responsible for the Plan, which, without limiting its scope, includes all actions to be taken with respect to its implementation, continuation, operation,
amendment, suspension or termination at any time. 

	5.2
	Management and Interpretation of the Plan

The
Board of Directors designates the overall responsibility for the plan to the Compensation Committee which may delegate day to day administration of the plan to company management, including the
interpretation of its rules and amendments thereto, as well as recommendations with respect to the granting of Phantom Shares to Participants. 

3

 
	5.3
	Amendment, change, suspension or termination of the Plan

The
Plan may not be amended, changed, suspended or terminated unless such action does not affect the rights of Participants under the Plan with respect to Phantom Shares already granted, or unless the
participants have given their written consent, or unless specifically provided for in this agreement. 

SECTION 6 — DESCRIPTION OF THE 2004 PLAN  

	6.1
	2004 Plan Funding

The
2004 plan initial funding is equal to 11% of the agreed upon 2004 beginning Operating profit projections or $544,000. 

	6.2
	Opening value of shares

The
opening value of the 2004 Phantom Share grant will be determined by using a 20 day average closing price of the NovAtel shares from December 17, 2003 to January 15, 2004. 

	6.3
	Number of Phantom Shares available for issuance

The
number of shares available for issuance is determined by dividing the Opening Value of a share calculated in 6.2 by the initial funding amount established in 6.1. 

	6.4
	Term of grants

All
grants made under this Plan will have a three-year term which will end on December 31, 2006. 

	6.5
	Level of grants

Subject
to Board of Directors approval, the number of phantom shares granted under the Plan will be a function of the NovAtel Stock price at the time of grant (see 6.1) and based on a percentage of
salary. The grant policy will be as follows: 

	Position / Level 
	 	Grant

(as a percentage of salary)

	CEO	 	25%
	VP	 	15 - 20%
	Director (employee)	 	10 - 12.5%
	Senior Key Employees	 	5 - 7%
	Other Employees	 	2 - 5%

	6.6
	Vesting

Phantom
Shares granted under the Plan will be subject to performance vesting conditions. Vesting will be determined on December 31, 2006 and will be based on pre-set performance
objectives for Revenue and Operating Income. These performance conditions have been set as follows for the 2004 grant: 

	 
	 	Base Year: 2003
	 	2004 Grants (2004 - 2006 Cumulative Total)

	Cumulative Revenue	 	$38.7M	 	$169.04M
	Cumulative Operating Income	 	$3.6M	 	$21.98M

4

 

	 

	Weighting 
	 	Performance Metric 
	 	 

	50%	 	Revenue ($M)	 	$	169.04
	 	 	% of Target Achieved	 	 	100%
	 	 	% of Phantom Shares Vested	 	 	100%
	
 50%	
 	

Operating Income ($M)	
 	
$	

21.98
	 	 	% of Target Achieved	 	 	100%
	 	 	% of Phantom Shares Vested	 	 	100%

SECTION 7 — PAYMENT  

	7.1
	Payment with respect to each grant under the Plan will be made in cash, 60 days following the third anniversary of the grant
(December 31, 2006), subject to approval of the December 31, 2006 year end audited financial results.

	7.2
	The dollar value of a Phantom Share grant at the time of payment will be determined by multiplying

	•
	the
number of phantom shares included in the grant times (x)

	•
	The
closing value based on 20 day average closing price, of the NovAtel shares (10 trading days prior to December 31, 2006 and 10 trading days after
December 31, 2006). 

SECTION 8 — TERMINATION OF EMPLOYMENT

	8.1
	Participants whose employment terminates during a grant term will lose eligibility in the Plan and will not be entitled to any payment
related to the grant term. 

Participants
whose employment terminates after the end of the grant term will be eligible to a payment, if and when such payment is made to the other participants. 

SECTION 9 — CHANGE OF CONTROL AND OTHER TRANSFORMATIVE EVENTS  

	9.1
	The Plan will be liquidated and amounts payable to participants will be paid out in the event of a change of control of NovAtel. 

The
amount payable will be pro rated based on months of completed service within the Plan term, and relative success in achieving the performance targets to the most recent completed quarter. 

A
Change of Control for purposes of Section 9 is deemed to occur when any "Person", as such term is used in sections 13(d) and 14(d) of the United States Securities and
Exchange Act of 1934 (the "Exchange Act") (other than the Corporation, a subsidiary or an employee benefit plan of the corporation, including any trustee of such plan acting as trustee), together with
all affiliates and associates of such Person, becomes, after the date of this Plan, the "beneficial owner" (as defined in rule 13d-3 under the Exchange Act), of 50% or more of the
Common Shares then outstanding. 

The
value of the Phantom Shares will be based on the 20 day average closing price prior to the date of the announcement or occurrence (whatever occurs first) of the above events. 

	9.2
	Any other Transformative event will have its financial impact either be isolated from the objective of this plan or will be added into
the results at an agreed upon amount. 

SECTION 10 — NON-ASSIGNABILITY OF PHANTOM SHARES

	10.1
	A Participant's rights under the Plan are not transferable nor can they be disposed of, sold, given as a guarantee, hypothecated or
encumbered by the Participant, except by will or pursuant to applicable laws of succession. As a result, during the grant term, Participant's rights can only be exercised by the Participant. The
Participant's obligations shall be binding upon his heirs, the liquidators of his succession and his administrators. 

5

 

SECTION 11 — UNRESTRICTED FREE ADMINISTRATION

	11.1
	No Plan provision shall be construed as restricting the Company's free administration of its business. 

SECTION 12 — NO EMPLOYMENT GUARANTEES

	12.1
	A Participant's eligibility to participate in the Plan cannot in itself be construed as an employment contract between the Company and
the Participant nor as a condition for the Participant's employment. No Plan provision shall be construed as conferring to a Participant the right to continue to be employed by the Company or to limit
the Company's rights to fully exercise its management rights and, among other things, to end the Participant's employment at any time and for whatever reason without regard to the effect that such
action may have on his participation in the Plan or on the advantages that he or his legal representatives may obtain from it. 

SECTION 13 — TAX IMPLICATIONS

	13.1
	The Company shall not assume any responsibility, except the responsibility to deduct any withholding tax obligations, with respect to
the tax implications for a Participant arising from his participation in the Plan. The Participant is expected to consult his tax advisors with respect to this matter. 

SECTION 14 — APPLICABLE LAWS

	14.1
	The Plan provisions shall be governed and interpreted in accordance with the applicable laws of the Province of Alberta and Canada. 

6

   Appendix A — Agreement  

AGREEMENT ENTERED INTO ON                               

	BETWEEN	 	NovAtel Inc., a legally incorporated Company with head office at 1120, 68th Avenue NE, Calgary, Alberta T2E 8S5
	
 	
 	

(Hereinafter called the "Company")
	
AND:	
 	

                                         
                           employee of
	 	 	NovAtel Inc.,
	
 	
 	

(Hereinafter called the "Participant")

WHEREAS the Company has set up a 2004 Long Term Incentive Plan for the employees of the Company for 2004 (hereinafter called the "Plan"); 

WHEREAS the Board of Directors of the Company has designated the Participant as being eligible to participate in the Plan; 

WHEREAS the Participant accepts to participate in the Plan and shall be granted Phantom Shares under the terms and conditions provided for under the
Plan. 

NOW WHEREFORE, THE PARTIES HERETO AGREED AS FOLLOWS  

	1.
	The
Participant acknowledges having read the rules of the Plan attached to this agreement and which are an integral part thereof.

	2.
	The
Participant hereby expressly accepts each and every one of the provisions of the rules of the Plan.

	3.
	The
Participant agrees and accepts to participate in the Plan and to remain a Plan Participant until he shall no longer hold any rights under the Plan.

	4.
	The
number of Phantom Shares granted is                , on 

                                      
at the price of $                per Phantom Share, 

	5.
	The
granting of Phantom Share shall be subject to the return of this Agreement duly executed by the Participant within 30 days of the date mentioned in 4 hereinabove. 

	 

NovAtel Inc.  

	 

	

	
 	

 Date	
 	

 
	

 Participant's signature	
 	

 Date	
 	

 

7

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EXHIBIT 10.14

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