Document:

Amended & Restated 1998 Long-Term Incentive Plan

  EXHIBIT 10.1
 WOMEN FIRST HEALTHCARE, INC.
 AMENDED AND RESTATED
 1998 LONG-TERM INCENTIVE PLAN
 (as amended and restated March 6, 2002 and
June 26, 2003)

		
	1. 	 Introduction and Purpose.  The Plan is submitted to the Board of Directors for adoption subject to approval by the Company’s stockholders. The Plan is fully effective as of the date approved
by the shareholders. The Plan supersedes in its entirety all prior versions of the Women First HealthCare, Inc. 1998 Long-Term Incentive Plan. 

 

		
		The purpose of the Plan is to promote the interests of the Company, and its shareholders by encouraging Key Associates to acquire stock or increase their proprietary interest in the Company. By thus providing the
opportunity to acquire Company stock and receive incentive payments, the Company seeks to attract and retain such Key Associates upon whose judgment, initiative, and leadership the success of the Company largely depends. 

		
		The Plan shall be governed by, and construed in accordance with the laws of the State of Delaware, without regard to the conflicts of law provisions thereof. 

 

		
	2. 	Definitions.   Whenever the following terms are used in this Plan, they will have the meanings specified below unless the context clearly indicates the contrary.

 

			
	 	a) 	 “Associate” means any person who is an employee (as defined in accordance with Section 3401(c) of the Code) of the Company or any Subsidiary.

 

			
	 	b) 	“Board of Directors” or “Board” means the Board of Directors of the Company, as constituted from time to time. 

 

			
	 	c) 	 “Change-in-Control” occurs in the following instances (1) a tender or exchange for all or part of the Common Stock (except an offer by the Company itself); (2) Company shareholder approval of a merger in
which the shareholders of the Company prior to such consolidation or merger own less than fifty percent (50%) of the Company’s voting power immediately after such consolidation or merger, excluding any consolidation or merger effected
exclusively to change the domicile of the Company; (3) Company shareholder approval of a consolidation or sale, exchange or other disposition of all, or substantially all, of the Company’s assets; (4) change in the composition of the Board over
a two consecutive year period so that individuals who were directors at the beginning of that period no longer constitute a majority of the Board (unless the election or nomination of each new director was approved by at least two-thirds of the
directors who had been directors at the beginning of the period and who were still in office at the time of the election or nomination).

 

			
	 	d) 	“Code” means the Internal Revenue Code of 1986, as amended. 

 
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	 	e) 	“Committee” means the committee appointed to administer the Plan pursuant to Section 4. 

 

			
	 	f) 	“Company” means Women First HealthCare, Inc. a Delaware corporation. 

 

			
	 	g) 	 “Common Shares” or “Common Stock” means the shares of the Company’s common stock and any class of common shares into which such common shares may hereafter be converted. 

 

			
	 	h) 	 “Consultant” means any consultant or adviser if:  (i) the consultant or adviser renders bona fide services to the Company or any Subsidiary; (ii) the services rendered by the consultant or
adviser are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities; and (iii) the consultant or adviser is a natural
person who has contracted directly with the Company or any Subsidiary of the Company to render such services. 

 

			
	 	i) 	 “Dividend Equivalent” means the additional amount of Common Stock issued in connection with an Option, as described in Section 14. 

 

			
	 	j) 	 “Eligible Person” means a Key Associate eligible to receive an Incentive Award. 

 

			
	 	k) 	 “Exchange Act” means the Securities and Exchange Act of 1934, as amended. 

 

			
	 	l) 	 “Fair Market Value” means the market price of Common Shares, determined by the Committee as follows: 

 

			
	 	i) 	 If none of the provisions ii) through iv) listed below are applicable, the Fair Market Value shall be determined by the Committee in good faith on such basis, as it deems appropriate. 

			
	 	ii) 	 If the Common Shares were traded over-the-counter on the date in question but were not traded on the Nasdaq system or the Nasdaq National Market System, then the Fair Market Value shall be equal to the mean between
the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Common Shares are quoted or, if the Common Shares are not quoted on any such system, by the “Pink
Sheets” published by the National Quotation Bureau, Inc. 

 

			
	 	iii) 	 If the Common Shares were traded over-the-counter on the date in question and were traded on the Nasdaq system or the Nasdaq National Market System, then the Fair Market Value shall be equal to the last-transaction
price quoted for such date by the Nasdaq system or the Nasdaq National Market System. 

 
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	 	iv) 	 If the Common Shares were traded on a stock exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported by the applicable composite transactions report for such date:
and 

 

			
	 		In all cases, the determination of Fair Market Value by the Committee shall be conclusive and binding on all persons. 

 

			
	 	m) 	 “Holder” means a person, estate, trust or entity holding an Incentive Award. 

 

			
	 	n) 	 “Incentive Award” means any Nonqualified Stock Option, Incentive Stock Option, Common Stock, Restricted Stock, Stock Appreciation Right, Dividend Equivalent, Stock Payment or Performance Award granted
under the Plan. 

 

			
	 	o) 	 “Incentive Stock Option” means an Option as defined under Section 422 of the Code, including an Incentive Stock Option granted pursuant to Section 8 of the Plan. 

 

			
	 	p) 	 “Key Associate” shall mean (i) any individual who is an Associate, (ii) a member of the Board of Directors, including (without limitation) an Outside Director, or an affiliate of a member of the Board of
Directors, a member of the Board of Directors of a Subsidiary and (iv) a Consultant. Service as a member of the Board of Directors, a member of the board of directors of a Subsidiary or as a Consultant shall be considered employment for all purposes
of the Plan. 

 

			
	 	q) 	 “Nonqualified Stock Option” means an Option other than an Incentive Stock Option granted pursuant to Section 8 of the Plan. 

 

			
	 	r) 	 “Option” means either a Nonqualified Stock Option or Incentive Stock Option. 

 

			
	 	s) 	“Outside Director” shall mean a member of the Board of Directors who is not an Associate. 

 

			
	 	t) 	“Performance Award” means an award whose value may be linked to stock value, or other specific performance criteria which may be set by the board of Directors, but which is paid in cash, stock, or a
combination of both.

 

			
	 	u) 	 “Plan” means the Amended and Restated 1998 Long-Term Incentive Plan, which may be amended from time to time.

 

			
	 	v) 	 “Restricted Stock” means Common Stock sold or granted to an Eligible Person, which is nontransferable and subject to substantial risk of forfeiture until restrictions lapse. 

			
	 	w) 	 “Rule 16b-3” means that certain Rule 16b-3 under the Exchange Act, as such rule may be amended from time to time. 

 

			
	 	x) 	 “Stock Appreciation Right” or “Right” means a right granted pursuant to Section 11 of the Plan to receive a number of shares of Common Stock or, in the 

 
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	 		discretion of the Committee, an amount of cash or a combination of shares and cash, based on the increase in the fair market value or book value of the shares subject to the right.

 

			
	 	y) 	 “Stock Payment” means a payment in shares of the Common Stock to replace all or any portion of the compensation (other than base salary) that would otherwise become payable to a Key Associate in cash.

 

			
	 	z) 	 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken
chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A Corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall
be considered a Subsidiary commencing as of such date. 

 

			
	 	aa) 	 “Total and Permanent Disability” means that the Holder is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected
to result in death or which has lasted, or can be expected to last, for a continuous period of not less than one year. 

 

		
	3. 	Shares of Common Stock Subject to the Plan. 

 

			
	 	a) 	 Subject to the provisions of Sections 3(c) and 15 of the Plan, the aggregate number of shares of Common Stock that may be issued or transferred pursuant to Incentive Awards or covered by Stock Appreciation Rights
unrelated to Options under the Plan shall not exceed 4,949,985. No Eligible Person shall be granted, in any calendar year, Options to purchase, or Stock Appreciation Rights with respect to, as applicable, more than 250,000 shares of Common
Stock.

 

			
	 	b) 	 The shares to be delivered under the Plan will be made available, at the discretion of the Board of Directors or the Committee, either from authorized but unissued shares of Common Stock or from previously issued
shares of Common Stock reacquired by the Company. 

 

			
	 	c) 	 If Incentive Awards are forfeited or if Incentive Awards terminate for any other reason before being exercised, then any shares of Common Stock subject to such Incentive Awards shall again become available for
award under the Plan. If Stock Appreciation Rights are exercised, then only the number of Common Shares (if any) actually issued in settlement of such Stock Appreciation Rights shall reduce the number of Common Shares available under Section 3(a)
and the balance shall again become available for award under the Plan. If Restricted Stock is cancelled or forfeited then such Restricted Stock shall again become available for award under the Plan. 

 
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	4. 	 Administration of the Plan. 

 

			
	 	a) 	 The Plan shall be administered by the Committee. The Committee shall be appointed by the Board and shall consist shall consist solely of two or more Outside Directors each of whom is both an “outside
director,” within the meaning of Section 162(m) of the Code, and a “non-employee director” within the meaning of Rule 16b-3. 

 

			
	 	b) 	 Notwithstanding Section 4(a), the Board or the Committee may (i) delegate to one or more members of the Board who are not Outside Directors the authority to grant Incentive Awards under the Plan to eligible persons
who are either (1) not then “covered employees,” within the meaning of Section 162(m) of the Code and are not expected to be “covered employees” at the time of recognition of income resulting from such award or (2) not persons
with respect to whom the Company wishes to comply with Section 162(m) of the Code and/or (ii) delegate to a committee of one or more members of the Board who are not “non-employee directors,” within the meaning of Rule 16b-3, the authority
to grant Incentive Awards under the Plan to Eligible Persons who are not then subject to Section 16 of the Exchange Act. 

 

			
	 	c) 	The Committee has and may exercise such powers and authority as may be necessary or appropriate for the Committee to carry out its functions as described in the Plan. The Committee has authority in its discretion to
determine the Eligible Persons to whom, and the time or times at which, Incentive Awards may be granted and the number of shares or Rights subject to each award. Subject to the express provisions of the Plan, the Committee also has authority to
interpret the Plan, and to determine the terms and provisions of the respective Incentive Award agreements (which need not be identical) and to make all other determinations necessary or advisable for Plan Administration. The Committee has authority
to prescribe, amend, and rescind rules and regulations relating to the Plan. All interpretations, determinations and actions by the Committee will be final, conclusive, and binding upon all parties. 

 

			
	 	d) 	No member of the Board of Directors or the Committee will be liable for any action or determination made in good faith by the Committee with respect to the Plan or any Incentive and Performance Award under it.

 

		
	5. 	 Eligibility and Date of Grant.  The date of grant of an Incentive Award will be the date the Committee takes the necessary action to approve the grant; provided,
however, that if the minutes or appropriate resolutions of the Committee provide that an Incentive Award is to be granted as of a date in the future, the date of grant will be such future date.

 

		
	6. 	 Outside Director Participation .  Outside Directors shall receive Option grants under the Plan as described below:

 

			
	 	a) 	 Upon the conclusion of each regular annual meeting of the Company’s shareholders, each incumbent Outside Director who will continue serving as a 

 
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	 	 	member of the Board thereafter may receive a grant of a Nonstatutory Option for such number of Common Shares (subject to adjustment under Section 15 and prorated for partial year service) as the Board shall determine
in its sole discretion.

			
	 	 	 
	 	b) 	 New Outside Directors shall receive a one-time grant of a Nonstatutory Option for a number of Common Shares as determined in the sole discretion of the Board. Such Option, if any, shall be granted on the date when
such Outside Director first joins the Board of Directors of the Company or the board of directors of a Subsidiary.

			
	 	 	 
	 	c) 	 Total grants under this Section 6 (less forfeitures) shall not exceed 15% of the maximum number of Common Shares available for grant under Section 3(a) of the Plan (subject to adjustment under Section
15).

		
	 	 
	7. 	 Nonqualified Stock Options.   The Committee may approve the grant of Nonqualified Stock Options to Eligible Persons, subject to the following terms and conditions:

			
	 	 	 
	 	a) 	 The purchase price of Common Stock under each Nonqualified Stock Option may not be less than eighty-five percent (85%) of the Fair Market Value of the Common Stock on the date the Nonqualified Stock Option is
granted.

			
	 	 	 
	 	b) 	 No Nonqualified Stock Option may be exercised after ten years from the date of grant.

			
	 	 	 
	 	c) 	 No fractional shares will be issued pursuant to the exercise of a Nonqualified Stock Option nor will any cash payment be made in lieu of fractional shares.

		
	 	 
	8. 	 Incentive Stock Options.  The Committee may approve the grant of Incentive Stock Options to Eligible Persons who are Employees, subject to the following terms and conditions.

			
	 	 	 
	 	a) 	 The exercise price of each share of Common Stock under an Incentive Stock Option will be at least equal to the Fair Market Value of a share of the Common Stock on the date of grant: provided, however, that if the
Associate, at the time an Incentive Stock Option is granted to him or her, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company (as defined in Section 424 of the Code), then
the exercise price of each share of Common Stock subject to such Incentive Stock Option shall be at least one hundred and ten percent (110%) of the Fair Market Value of such share of Common Stock, as determined in the manner stated
above.

			
	 	 	 
	 	b) 	 No Incentive Stock Option may be exercised after ten (10) years from the date of grant: provided, however, that the Associate, at the time an Incentive Stock Option is granted to him or her, owns stock representing
more than ten percent (10%) of the total combined voting power of all classes of stock of the Company (as defined in Section 424 of the Code), the Incentive Stock Option granted shall not be exercisable after the expiration of 5 years from the date
of grant.

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	 	c) 	 No fractional shares will be issued pursuant to the exercise of an Incentive Stock Option nor will any cash payment be made in lieu of fractional shares.

		
	 	 
	9. 	 Option Rules.   The purchase price under each Option may be paid in (a) cash, (b) cash equivalents or notes acceptable to the Committee, (c) by arrangement with a broker which is acceptable to the
Committee where payment of the Option price is made pursuant to an irrevocable direction to the broker to deliver all or part of the proceeds from the sale of the Option shares to the Company, (d) by the surrender of shares of Common Stock owned by
the Holder exercising the Option having a Fair Market Value on the date of exercise equal to the purchase price (and which, in the case of shares of Common Stock acquired from the Company, have been owned by the Holder for more than 6 months on the
date of surrender) or (e) in any combination of the foregoing. Each Option granted to an Eligible Person shall be exercisable in such manner and at such times as the Committee shall determine. The Committee may modify, accelerate the exercisability
of, extend or assume outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or by another issuer) in return for the grant of new Options for the same or a different number of shares and at the same
or a different purchase price. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Holder, alter or impair his or her rights or obligations under such Option. Notwithstanding anything to the contrary, each
Option shall vest at the rate of at least 20% per year over 5 years from the date of grant. Each Option shall provide for a period of exercise of at least 6 months in the event of a termination of employment as a result of death or disability and at
least 30 days in the case of termination other than death or disability.

		
	 	 
	10. 	 Restricted Stock.   The Committee may approve the grant of Restricted Stock unrelated to Nonqualified Stock Options or Stock Appreciation Rights to Eligible Persons, subject to the following terms
and conditions:

			
	 	 	 
	 	a) 	 The Committee in its discretion will determine the purchase price.

			
	 	 	 
	 	b) 	 All shares of Restricted Stock sold or granted pursuant to the Plan (including any shares of Restricted Stock received by the Holder as a result of stock dividends, stock splits, or any other forms of
capitalization), will be subject to the following restrictions:

			
	 	 	 
	 	i) 	 The shares may not be sold, transferred, or otherwise alienated or hypothecated until the restrictions are removed or expire.

			
	 	 	 
	 	ii) 	 The Committee may require the Holder to enter into an escrow agreement providing that the certificates representing Restricted Stock sold or granted pursuant to the Plan will remain in the physical custody of an
escrow holder until all restrictions are removed or expire.

			
	 	 	 
	 	iii) 	 Each certificate representing Restricted Stock sold or granted pursuant to the Plan will bear a legend making appropriate reference to the Restrictions imposed on the Restricted Stock.

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	 	iv) 	 The Committee may impose restrictions on any shares sold pursuant to the Plan as it may deem advisable, including without limitation, restrictions designed to facilitate exemption from or compliance with the
Securities Exchange Act of 1934, as amended, with requirements of any stock exchange upon which such shares or shares of the same class are then listed and with any blue sky or other securities laws applicable to such shares; provided, however, the
restrictions imposed on any Restricted Stock must comply with California Securities Rule 260.140.42.

 

			
	 	 	 
	 	c) 	 The restrictions imposed under subparagraph (b) above upon Restricted Stock will lapse in accordance with a schedule or other conditions as determined by the Committee, subject to the provisions of Section 17,
subparagraph (d).

			
	 	 	 
	 	d) 	 Subject to the provisions of subparagraph (b) above and Section 17, subparagraph (d), the Holder will have all rights of a shareholder with respect to the Restricted Stock granted or sold, including the right to
vote the shares and receive all dividends and other distributions paid or made with respect thereto.

			
	 	 	 
	 	e) 	 Notwithstanding the provisions of subparagraph (b) above and Section 17, subparagraph (d), Restricted Stock granted or sold may be held by the trustee of a revocable inter vivos trust (or other trust if such
transfer associated therewith does not cause income to be recognized pursuant to Section 83 of the Code and if the trust takes subject to the forfeiture provisions of the Restricted Stock), approved by the Company, established in whole or in part by
the Holder and/or the Holder’s spouse. So long as the Holder is still an Associate, transfer to such trust shall not violate the provisions of subparagraph (b) above and ownership by such trust shall not invoke any right or obligation of the
Company under Section 17, subparagraph (d).

		
	 	 
	11. 	 Stock Appreciation Rights.   The Committee may approve the grant of Rights related or unrelated to Options to Eligible Persons, subject to the following terms and conditions:

			
	 	 	 
	 	a) 	 A Stock Appreciation Right may be granted

			
	 	 	 
	 	i) 	 at any time if unrelated to an Option:

			
	 	 	 
	 	ii) 	 either at the time of Option grant, or at any time thereafter during the Option term if related to a Nonqualified Stock Option: or

			
	 	 	 
	 	iii) 	 only at the time of Option grant if related to an Incentive Stock Option.

			
	 	 	 
	 	b) 	 A Stock Appreciation Right granted in connection with an Option will entitle the Holder of the related Option, upon execution of the Stock Appreciation Right, to surrender such Option or any portion thereof to the
extent unexercised, with respect to the number of shares as to which such Stock Appreciation Right is exercised, and to receive payment of an amount computed pursuant to Section 11(d). Such Option will, to the extent surrendered, then cease to be
exercisable.

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	 	c) 	 Subject to Section 11(g), a Stock Appreciation Right granted in connection with an Option hereunder will be exercisable at such time or times as the Committee in its discretion may determine, and only to the extent
that a related Option is exercisable, and will not be transferable except to the extent that such related Option is exercisable.

			
	 	 	 
	 	d) 	 Upon the exercise of a Stock Appreciation Right related to an Option, the Holder will be entitled to receive payment of an amount determined by multiplying:

			
	 	 	 
	 	i) 	 The difference obtained by subtracting the purchase price of a share of Common Stock specified in the related Option from the Fair Market Value of a share of Common Stock on the date of exercise of such Stock
Appreciation Right, by

			
	 	 	 
	 	ii) 	 The number of shares as to which such Stock Appreciation Right has been exercised.

			
	 	 	 
	 	e) 	 The Committee may grant Stock Appreciation Rights unrelated to Options to Eligible Persons that will be exercisable at such times as the Committee shall determine. Section 11(d) shall be used to determine the amount
payable at exercise under such Stock Appreciation Right if Fair Market Value is used, except that Fair Market Value shall not be used if the Committee specifies in the grant of the Right that book value or other measure as deemed appropriate by the
Committee is to be used, and the initial share value specified in the award shall be used in lieu of “price of a Common Stock specified in the related Option,” as provided in Section 11(d).

			
	 	 	 
	 	f) 	 Payment of the amount determined under Section 11(d) or (c) may be made solely in whole shares of Common Stock in a number determined at their Fair Market Value on the date of exercise of the Stock Appreciation
Right or alternatively at the sole discretion of the Committee, solely in cash or in a combination of cash and shares as the Committee deems advisable. If the Committee decides to make full payment in shares of Common Stock, and the amount payable
results in a fractional share, payment for the fractional share will be made in cash.

			
	 	 	 
	 	g) 	 The Committee shall, at the time a Stock Appreciation Right is granted, impose such conditions on the exercise of the Stock Appreciation Right as may be required to satisfy the requirements of Rule 16b-3 under the
Securities Exchange Act of 1934 (or any other comparable provisions in effect at the time or times in question). In addition, a Stock Appreciation Right granted under the Plan may provide that it will be exercisable only in the event of a
Change-in-Control.

		
	 	 
	12. 	 Performance Awards.   The Committee may approve Performance Awards to Eligible Persons. Such awards may be based on Common Stock performance over a period determined in advance by the Committee or
any other measures as determined appropriate by the Committee. Payment will be in cash unless replaced by a Stock Payment in full or in part as determined by the Committee.

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	13. 	 Stock Payment.   The Committee may approve Stock Payments of Common Stock to Eligible Persons for all or any portion of the compensation (other than base salary) that would otherwise become payable
to an employee in cash.

		
	 	 
	14. 	  Dividend Equivalents.   A Holder may also be granted at no additional cost “Dividend Equivalents” based on the dividends declared on the Common Stock on record dates during the period
between the date an Option is granted and the date such Option is exercised, or such other equivalent period, as determined by the Committee. Such Dividend Equivalents shall be converted to additional shares or cash by such formula as may be
determined by the Committee.

		
	 	 
	 	Dividend Equivalents shall be computed, as of each dividend record date, both with respect to the number of shares under the Option and with respect to the number of Dividend Equivalent shares previously earned by
the Holder (or his or her successor in interest) and not issued during the period prior to the dividend record date.

		
	 	 
	15. 	 Adjustment Provisions.

			
	 	 	 
	 	a) 	 Subject to Section 15(b), if the outstanding shares of Common Stock are increased, decreased, or exchanged for a different number or kind of shares or other securities, or if additional shares or new or different
shares or other securities are distributed with respect to such shares of Common Stock or other securities, through merger, consolidation, sale of all or substantially all of the property of the Company, reorganization, recapitalization,
reclassification, stock dividend stock split, reverse stock split or other distribution with respect to such shares of Common Stock, or other securities, an appropriate and proportionate adjustment shall be made in (i) the maximum number and kind of
shares provided in Section 3 of the Plan, (ii) the number and kind of shares or other securities subject to the then outstanding Incentive Awards, and (iii) the price for each share or other unit of any other securities subject to the then
outstanding Incentive Awards without change in the aggregate purchase price or value as to which Incentive Awards remain exercisable or subject to restrictions.

			
	 	 	 
	 	b) 	 In addition, upon a Change-in-Control all Options, Stock Appreciation Rights, and Performance Awards then outstanding under the Plan will be fully vested and exercisable and all restrictions on Restricted Stock will
immediately cease. The Committee or any agreement of merger or reorganization may offer the Holder the right to exchange such vested Incentive Awards for fully vested and equivalent value awards under a successor plan.

		
	 	 
	16. 	  General Provisions.

			
	 	 	 
	 	a) 	 With respect to any shares of Common Stock issued or transferred under any provision of the Plan such shares may be issued or transferred subject to such conditions, in addition to those specifically provided in the
Plan, as the Committee may direct; provided that any such conditions must comply with California Corporate Securities Rules 260.140.41 and 260.140.42.

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	 	b) 	 Nothing in the Plan or in any instrument executed pursuant to the Plan will confer upon any Holder any right to continue in the employ of the Company or any of its Subsidiaries or affect
the right of the Company to terminate the employment of any Holder at any time and for any reason.

			
	 	 	 
	 	c) 	 No shares of Common Stock will be issued or transferred pursuant to an Incentive Award unless and until all then applicable requirements imposed by federal and state securities and other
laws, rules, and regulations and by any regulatory agencies having jurisdiction, and by any stock exchanges upon which the Common Stock may be listed, have been fully met. As a condition precedent to the issue of shares pursuant to the grant or
exercise of an Incentive Award, the Company may require the Holder to take any reasonable action to meet such requirements.

			
	 	 	 
	 	d) 	 No Holder (individually or as a member of a group) and no beneficiary or other person claiming under or through such Holder will have any right, title, or interest in or to any shares of
Common Stock allocated or reserved under the plan or subject to any Incentive Award except as to such shares of Common Stock, if any, that have been issued or transferred to such Holder.

			
	 	 	 
	 	e) 	 The Company may make such provisions, as it deems appropriate to withhold any taxes, which it determines it is required to withhold in connection with any Incentive or Performance
Award.

			
	 	 	 
	 	f) 	 No Incentive Award and no right under the Plan contingent or otherwise, will be assignable or subject to any encumbrance, pledge (other than a pledge to secure a loan from the Company),
or charge of any nature except that, under such rules and regulations as the Company may establish pursuant to the terms of the Plan, a beneficiary may be designated with respect to an Incentive Award in the event of death of a Holder of such
Incentive Award. If such beneficiary is the executor or administrator of the estate of the Holder of such Incentive Award, any rights with respect to such Incentive Award may be transferred to the person or persons or entity (including a trust)
entitled thereto under the will of the Holder of such Incentive Award or, in the case of intestacy, under the laws relating to intestacy. Except as determined by the Committee, no Incentive Award shall be transferable by any Eligible Person other
than by will of the laws of descent and distribution or pursuant to a qualified domestic relations order. In considering transferability of an Incentive Award, the Committee may also consider the registration limitation of SEC Form S-8 and on that
basis may in its discretion determine whether to prohibit transferability, permit alternative registration of the Incentive Award, treat the Incentive Award as SEC Rule 144 “restricted stock,” or take such other measures as the Committee
deems appropriate.

			
	 	 	 
	 	g) 	 The Committee may permit a Holder to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold a portion of any Common Stock that otherwise
would be issued to him having a value equal to the statutory minimum amount required to be withheld, or by surrendering all

 
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	 	or a portion of any Common Stock that he or she previously acquired (and which, in the case of shares of Common Stock acquired from the Company, have been owned by the Holder for more
than 6 months on the date of surrender). Such Common Stock shall be valued at its Fair Market Value on the date when taxes otherwise would be withheld in cash. Any payment of taxes by assigning Common Stock to the Company may be subject to
restrictions, including any restrictions required by rules of the Securities and Exchange Commission.

			
	 	 	 
	 	h) 	 All Incentive Awards, to the extent then outstanding, shall become 100% vested in the event of death or total and permanent disability.

		
	 	 
	17. 	 Amendment and Termination.

			
	 	 	 
	 	a) 	 The Board of Directors may, in its discretion, amend, suspend, or terminate the Plan at any time. An amendment of the Plan shall be subject to the approval of the Company’s
shareholders to the extent it affects the application of the accelerated vesting provisions herein, Section 15, or to the extent required by applicable laws, regulations and or rules.

			
	 	 	 
	 	b) 	 The Committee may, with the consent of a Holder, make such modifications in the terms and conditions of the Incentive Award as it deems advisable or cancel the Incentive Award (with or
without consideration) with the consent of the Holder.

			
	 	 	 
	 	c) 	 No amendment, suspension, or termination of the Plan will, without the consent of the Holder, alter, terminate, impair, or adversely affect any right or obligation under any Incentive
Award previously granted under the Plan.

			
	 	 	 
	 	d) 	 In the event a Holder of Restricted Stock ceases to be a Key Associate all such Holder’s Restricted Stock which remains subject to substantial risk of forfeiture at the time his or
her employment terminates will be repurchased by the Company at the original price at which such Restricted Stock had been purchased unless the Committee determines otherwise.

			
	 	 	 
	 	e) 	 In the event a Holder of a Performance Award ceases to be a Key Associate, all such Holder’s Performance Awards will terminate except in the case of retirement, death, or Total and
Permanent Disability. The Committee, in its discretion, may authorize full or partial payment of Performance Awards in all cases involving retirement, death, or permanent and total disability.

			
	 	 	 
	 	f) 	 The Committee may in its sole discretion determine, with respect to an Incentive Award that any Holder who is on unpaid leave of absence for any reason will be considered as still in the
employ of the Company, provided that rights to such Incentive Award during an unpaid leave of absence will be limited to the extent to which such right was earned or vested at the commencement of such leave of absence.

 12

		
	 	 
	18. 	Effective Date of Plan and Duration of Plan.   This Plan will become effective upon approval by the shareholders of the Company within twelve (12) months following the
date of its adoption by the Board of Directors. Unless previously terminated by the Board of Directors, the Plan will terminate ten (10) years after its approval by the shareholders of the Company.

 
 13Senior Secured Convertible Note to TECORE, Inc.

 Exhibit 4.1 
  

This Note has been acquired for investment and has not been registered under the Securities Act of 1933, as amended, or the securities laws of
any other jurisdiction. This Note is subject to the terms of a Securities Purchase Agreement, dated as of June 5, 2003, among the issuer, TECORE, Inc, and SCP Private Equity Partners II, L.P. (the “Purchase Agreement”), a copy of which may
be obtained by the registered holder hereof from the Secretary of the issuer. The sale and transfer of this Note is restricted under the terms of the Tag Along Allocation Agreement, dated as of the date of this Note between the issuer, TECORE, Inc,
and SCP Private Equity Partners II, L.P. (the “Tag Along Agreement”). No transfer of any interest in this Note shall be effective unless permitted by and made in accordance with the Purchase Agreement and the Tag Along Agreement, and by
accepting this Note the holder of this Note agrees to be bound by the Purchase Agreement and the Tag Along Agreement. 
  
 $12,000,000 
  
 AIRNET COMMUNICATIONS CORPORATION 
  
 Senior Secured Convertible Note 
  
 August 13, 2003 
  
 1. General. AIRNET COMMUNICATIONS CORPORATION, a Delaware corporation (hereinafter called the “Company”), for value received, hereby
promises to pay to TECORE, INC. (“TECORE”), or registered assigns, the principal amount of TWELVE MILLION DOLLARS ($12,000,000.00), or so much thereof as shall have been paid to the Company by TECORE pursuant to the terms of
the Securities Purchase Agreement, dated as of June 5, 2003, among the Company, TECORE, Inc, and SCP Private Equity Partners II, L.P. (the “Purchase Agreement”), as set forth on Schedule A attached hereto and made a part
hereof, on August 13, 2007 (the “Maturity Date”), and to pay interest on the unpaid balance of the principal hereof from the date hereof at the rate of twelve percent (12%) per annum (which shall accrue on a daily basis), payable at
maturity, and to pay interest at the rate of fifteen percent (15%) per annum on any overdue principal, from the due date thereof until the obligation of the Company with respect to the payment thereof shall be discharged. All payments of principal
and interest on this Note shall be paid by Company check or official bank check sent first class mail, postage prepaid, to such address as the holder hereof shall notify the Company of in writing, or, absent such notice, to the last address of such
holder as recorded in the Company’ s books (in which case the Company may rely on such address and shall be deemed to have discharged its obligations hereunder as to any payments made to that address). At the option of the holder, the Company
shall pay principal and interest on this Note by wire transfer in accordance with wire transfer instructions provided by the holder to the Company at least ten (10) days prior to the date on which the principal and interest is payable hereunder. The
Company shall have no right to prepay any principal or interest due under this Note. 
  
 2. The Notes. As used herein, the term “Note” or “Notes” refer to the Senior Secured Convertible Notes in the aggregate principal amount of $16,000,000 issued pursuant to 

 
the Purchase Agreement and to any Note or Notes executed and delivered by the Company in exchange or replacement hereof pursuant to Section 9 hereof or
pursuant to any transfer of a Note. Unless the context otherwise requires, the term “holder” is used herein to mean the person named as payee in Section 1 hereof or any other person who shall at the time be the holder or assignee of this
Note. This Note is referred to in the Purchase Agreement and is entitled to the benefits of the terms and provisions of the Purchase Agreement. No reference herein to the Purchase Agreement and no provision of this Note or the Purchase Agreement
shall alter the obligation of the Company, which is absolute and unconditional, to pay the principal and interest on the Note at the time and in the manner prescribed herein. 
  
 3. Security Interest. This Note is secured by and is entitled to the benefits of (i) the Security Agreement, dated as
of January 24, 2003, by and among the Company and the purchasers of the Notes (the “Original Security Agreement”), as amended by the First Amendment to Security Agreement, dated as of August 13, 2003, by and among the Company and the
purchasers of the Notes (the “Amendment to Security Agreement”) (the Original Security Agreement, as so amended by the Amendment to Security Agreement is referred to as the “Amended Security Agreement”), (ii) the “Amended
and Restated Technology Collateral Escrow Agreement, dated as of August 13, 2003, by and among the Company and the purchasers of the Notes (the “Escrow Agreement”), and (iii) the Amended and Restated Collateral Assignment of Patents,
Trademarks & Copyrights, dated as of August 13, 2003, by and among the Company and the purchaser of the Notes (the “Collateral Assignment”). (The Amended Security Agreement, the Escrow Agreement, and the Collateral Assignment are
sometimes referred to herein as the “Collateral Agreements.”) In addition to the rights and remedies given it by this Note, the Collateral Agreements, and the Purchase Agreement, the holder shall have all those rights and remedies allowed
by applicable laws, including without limitation, the Uniform Commercial Code. The rights and remedies of the holder are cumulative, and recourse to one or more right or remedy shall not constitute a waiver of the others. The Company shall be liable
for all commercially reasonable costs, expenses and attorneys’ fees incurred by the holder in connection with the collection of the indebtedness evidenced by the Note. 
  
 4. Voting Rights. 
  
 4.1. General Rights. Except as otherwise provided herein or as required by law, the holders of the Notes: 
  
 4.1.1. shall be entitled to vote in respect to the corporate
affairs and management of the Company to the extent hereinafter provided; 
  
 4.1.2. shall have the same right of inspection of the books, accounts and other records of the Company which the holders of Common Stock have or may have under the Delaware General Corporation Law (the
“GCL”) or the Company’s certificate of incorporation; and 
  

 2 

 4.1.3. shall be deemed to be stockholders of the Company, and the Notes shall be deemed
to be stock, for the purpose of any provision of the GCL which requires the vote of stockholders as a prerequisite to any corporate action. 
  
 4.2. Number of Votes. The Notes shall be voted equally with the shares of the Common Stock of the Company, and not as a separate class, at any
annual or special meeting of stockholders of the Company or in connection with any solicitation of written consents in lieu of a meeting, upon the following basis: the holder of this Note shall be entitled to such number of votes as shall be equal
to the whole number of shares of Common Stock into which this Note is convertible pursuant to Section 5 hereof immediately after the close of business on the record date fixed for such meeting or the effective date of such written consent;
provided, however, that in calculating the number of shares into which this Note is then convertible for purposes of calculating such number of votes, the initial Conversion Price, as hereinafter defined, shall be deemed to be $.57
representing the average closing price of the Common Stock on the date of execution of the Purchase Agreement and the four business days prior to such execution (the “Deemed Conversion Price”) (which Deemed Conversion Price is subject to
adjustment in the same manner that the Conversion Price is subject to adjustment as provided in Sections 5.5 and 5.6). 
  
 5. Conversion of Note. 
  
 5.1. Right to Convert. Subject to and upon compliance with the provisions hereof, the holder of this Note shall have the right, at such
holder’s option, at any time, to convert all or any portion of the unpaid principal amount hereof and all or any portion of accrued but unpaid interest into shares of Common Stock, $.001 par value, of the Company (“Common Stock”) at
the price of $0.10810 per share (the “Original Conversion Price”), or, in case an adjustment of such price has taken place pursuant to the further provisions of this Section 5, then at the price as last adjusted and in effect on the date
this Note or portion hereof is presented for conversion (the Original Conversion Price or the Original Conversion Price as last adjusted, as the case may be, being referred to herein as the “Conversion Price”). The minimum principal amount
of this Note which may be converted at any time shall be the lesser of (a) $100,000 or (b) the outstanding principal balance of this Note. 
  
 5.2. Exercise of Conversion Privilege. In order to exercise the conversion privilege, the holder of this Note shall present it to the Company at
the office of the Company, accompanied by written notice to the Company (with copies to the holders of any other Notes) that the holder elects to convert this Note, or, if less than the entire unpaid principal amount hereof and interest thereon is
to be converted, the portion hereof to be converted. Such notice shall also state the name or names (with address) in which the certificate or certificates for shares of Common Stock which shall be issuable on such conversion shall be issued. As
soon as practicable after the receipt of such notice and the presentation of this Note, the Company shall issue and shall deliver to the holder of this Note a certificate or certificates for the number of full shares of Common Stock issuable upon
the conversion of this Note (or portion hereof), and provision shall be made for any fraction of a share as provided in Section 5.3 hereof. Such conversion shall be deemed to have been effected immediately prior to the close of business on 

  

 3 

 
the date on which such notice shall have been received by the Company and this Note shall have been presented as aforesaid, and conversion shall be at the
Conversion Price in effect at such time, and at such time the rights of the holder of this Note as such holder shall cease (to the extent this Note is so converted) and the person or persons in whose name or names any certificate or certificates for
shares shall be issuable upon such conversion shall be deemed to have become the holder or holders of record of the shares represented thereby. Upon conversion of less than all of the unpaid principal amount and interest of this Note, appropriate
notation shall be made on this Note of the principal amount and/or interest so converted, and this Note shall be retained by the holder following such notation. Upon conversion of the balance of the principal amount and interest of this Note, this
Note shall be deemed cancelled and the holder shall surrender this Note to the Company. 
  
 5.3. Adjustment for Fractional Shares. No fractional shares or scrip shall be issued upon conversions of the Note. Any remaining principal amount shall be paid in cash. 
  
 5.4. Adjustment of Conversion Price. 
  
 5.4.1. Upon Dilutive Issuances. If the Company shall
issue or sell shares of its Common Stock or “Common Stock Equivalents” (as defined in Section 5.4.2 below) without consideration or at a price per share or “Net Consideration Per Share” (as defined in Section 5.4.3 below) less
than the Conversion Price in effect immediately prior to such issuance or sale, then in each such case the Conversion Price, except as hereinafter provided, shall be lowered so as to be equal to the greater of (1) the net aggregate consideration, if
any, received or receivable by the Company for the total number of such additional shares of Common Stock so issued or deemed to be issued divided by the number of shares of Common Stock so issued or deemed to be issued, or (2) $0.001. 

 
 5.4.2. Common Stock Equivalents. 
  

	 	(a)	 	 General. For the purposes of this Section 5.4, the issuance of any warrants, options, subscription or purchase rights with respect to shares of Common Stock
and the issuance of any securities convertible into or exchangeable for shares of Common Stock and the issuance of any warrants, options, subscription or purchase rights with respect to such convertible or exchangeable securities (collectively,
“Common Stock Equivalents”), shall be deemed an issuance of Common Stock. Any obligation, agreement or undertaking to issue Common Stock Equivalents at any time in the future shall be deemed to be an issuance at the time such obligation,
agreement or undertaking is made or arises. No adjustment of the Conversion Price shall be made under this Section 5.4 upon the issuance of any shares of Common Stock which are issued pursuant to the exercise, conversion or exchange of any Common
Stock Equivalents if any adjustment shall 

  

 4 

	 	 
previously have been made upon the issuance of any such Common Stock Equivalents as above provided. 

  

	 	(b)	 	Adjustments for Adjustment, Cancellation or Expiration of Common Stock Equivalents. Should the Net Consideration Per Share of any such Common Stock Equivalents be decreased
or increased from time to time, then, upon the effectiveness of each such change, the Conversion Price will be that which would have been obtained (1) had the adjustments made pursuant to Section 5.4.1 upon the issuance of such Common Stock
Equivalents been made upon the basis of the new Net Consideration Per Share of such securities, and (2) had the adjustments made to the Conversion Price since the date of issuance of such Common Stock Equivalents been made to such Conversion Price
as adjusted pursuant to clause (1) above. Any adjustment of the Conversion Price with respect to this Section which relates to any Common Stock Equivalent shall be disregarded if, as, and when such Common Stock Equivalent expires or is canceled
without being exercised, or is repurchased by the Company at a price per share at or less than the original purchase price, so that the Conversion Price effective immediately upon such cancellation or expiration shall be equal to the Conversion
Price that would have been in effect had the expired or canceled Common Stock Equivalent not been issued. 

  
 5.4.3. Net Consideration Per Share. For purposes of this Section 5.4, the “Net Consideration Per Share” which shall be
receivable by the Company for any Common Stock Equivalents shall be determined as follows: 
  

	 	(a)	 	The “Net Consideration Per Share” shall mean the amount equal to the total amount of consideration, if any, received by the Company for the issuance of such Common Stock
Equivalents, plus the minimum amount of consideration, if any, payable to the Company upon exercise, conversion or exchange thereof, divided by the aggregate number of shares of Common Stock that would be issued if all such Common Stock Equivalents
were exercised, exchanged or converted. 

  

	 	(b)	 	The “Net Consideration Per Share” which shall be receivable by the Company shall be determined in each instance as of the date of issuance of Common Stock Equivalents
without giving effect to any possible future upward price adjustments or rate adjustments which may be applicable with respect to such Common Stock Equivalents. 

  

 5 

 5.4.4. Stock Dividends for Holders of Capital Stock Other Than Common Stock.
In the event that the Company shall make or issue, or shall fix a record date for the determination of holders of any capital stock of the Company, other than holders of Common Stock, entitled to receive a dividend or other distribution
payable in Common Stock or securities of the Company convertible into or otherwise exchangeable for shares of Common Stock of the Company, then such Common Stock or other securities issued in payment of such dividend shall be deemed to have been
issued for a consideration of $0.001. 
  
 5.4.5.
Consideration Other than Cash. For purposes of this Section 5.4, if a part or all of the consideration received by the Company in connection with the issuance of shares of the Common Stock or the issuance of any of the securities described in
this Section 5.4 consists of property other than cash, such consideration shall be deemed to have a fair market value as is reasonably determined in good faith by the Board of Directors of the Company. In the event of any dispute between the holders
of the Note and the Company regarding the determination of fair market value, at the option of the holder of the Note, the Company shall engage a consulting firm or investment banking firm, reasonably acceptable to the holder of the Note, to prepare
an independent appraisal of the fair market value of such property to be distributed. The expenses of any appraisal by such consulting or investment banking firm shall be borne by the Company only if the fair market value of such property to be
distributed, as determined in the independent appraisal, differs from the amount determined by the Board of Directors by at least ten percent (10%), and otherwise the expenses of any such appraisal shall be paid by the holders of the Notes.

  
 5.4.6. Exercise of Outstanding Warrants or
Options. 
  

	 	(a)	 	In the event that the holder of a warrant to purchase Common Stock which is outstanding on the date of original issuance of this Note (an “Outstanding Warrant”) (such date
referred to as the “Original Issuance Date”) shall exercise such Outstanding Warrant on a date subsequent to the Original Issuance Date, then, in each such case, the Conversion Price of this Note then in effect shall be automatically
adjusted downward so that the number of shares of Common Stock into which this Note is convertible (at such adjusted Conversion Price) shall represent the same Percentage Ownership (as hereinafter defined) as the Percentage Ownership which the
shares into which this Note was convertible at the unadjusted Conversion Price represented immediately prior to the exercise of such Outstanding Warrant. 

  

	 	(b)	 	 In the event that the holder of an option to purchase Common Stock which is outstanding on the Original Issuance Date (an “Outstanding Option”) shall
exercise such option on a date 

  

 6 

	 	 
subsequent to the Original Issuance Date, then, in each such case, the Conversion Price of this Note then in effect shall be automatically adjusted downward
so that the number of shares of Common Stock into which this Note is convertible (at such adjusted Conversion Price) shall represent the same Percentage Ownership (as hereinafter defined) as the Percentage Ownership which the shares into which this
Note was convertible at the unadjusted Conversion Price represented immediately prior to the exercise of such Outstanding Option; provided that the adjustment to the Conversion Price required by this subparagraph (b) shall not apply with
respect to the exercise of Outstanding Options to purchase up to 300,000 shares of Common Stock (with appropriate adjustments to such number of shares to reflect adjustments to the number of shares of Common Stock issuable under outstanding options
in accordance with the anti-dilution terms of such options). 

  

	 	(c)	 	In the event that the holder of preferred stock, convertible into Common Stock, which is outstanding on the Original Issuance Date (“Outstanding Preferred”) shall convert
such Outstanding Preferred on a date subsequent to the Original Issuance Date, then, in each such case, the Conversion Price of this Note then in effect shall be automatically adjusted downward so that the number of shares of Common Stock into which
this Note is convertible (at such adjusted Conversion Price) shall represent the same Percentage Ownership (as hereinafter defined) as the Percentage Ownership which the shares into which this Note was convertible at the unadjusted Conversion Price
represented immediately prior to the conversion of such Outstanding Preferred. Notwithstanding the foregoing, no adjustment to the Conversion Price shall be made as a result of the conversion of any shares of Series B Convertible Stock on the
Original Issuance Date. 

  

	 	(d)	 	 For purposes of this Section 5.4.6, the term “Percentage Ownership” of particular shares shall mean the number of votes such shares possess with respect
to the election generally of directors, divided by the number of votes possessed by all Voting Securities at such time with respect to the election generally of directors. For this purpose, the term “Voting Securities” shall mean all
outstanding securities (debt or equity) of the Company entitled to vote generally in the election of directors (excluding the Notes) plus the shares into which the Notes are then convertible plus the shares into which all other
outstanding convertible securities (which term expressly excludes any Outstanding Options, Outstanding Warrants, or Outstanding Preferred) are then convertible plus the shares which are then issuable upon the 

  

 7 

	 	 
exercise of options granted after the Original Issuance Date which remain unexercised on the date of determination plus the shares which are then
issuable upon the exercise of up to 300,000 Outstanding Options which remain outstanding on the date of determination). 

  
 5.4.7. Exceptions to Anti-dilution Adjustments. This Section 5.4 shall not apply under any of the following circumstances:

  

	 	(a)	 	upon the occurrence of any event which would constitute an Extraordinary Common Stock Event (as described below); 

  

	 	(b)	 	except as provided in Section 5.4.6, upon the exercise or conversion of any warrants, options, or convertible securities issued and outstanding on the date of original issuance of
this Note; 

  

	 	(c)	 	upon the grant of any options to purchase Common Stock under any employee benefit plan now existing or implemented in the future, provided the grant of such options is
approved by the Board of Directors of the Company, and further provided the total number of shares of Common Stock subject to options granted on or after the date of original issuance of this Note is no greater than 21,766,212 plus amounts
permitted pursuant to Section 9.11 of the Purchase Agreement; or 

  

	 	(d)	 	upon the exercise of any options referenced in Section 5.4.7(c). 

  
 5.5. Adjustment Upon Extraordinary Common Stock Event. Upon the happening of an Extraordinary Common Stock Event (as hereinafter defined), the
Conversion Price shall, simultaneously with the happening of such Extraordinary Common Stock Event, be adjusted by multiplying the Conversion Price by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such Extraordinary Common Stock Event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such Extraordinary Common Stock Event, and the product so obtained shall thereafter
be the Conversion Price, which, as so adjusted, shall be readjusted in the same manner upon happening of any successive Extraordinary Common Stock Event Events. 
  

An “Extraordinary Common Stock Event” shall mean (i) the issue of additional shares of Common Stock as a dividend or other distribution on
outstanding shares of Common Stock, (ii) subdivision of outstanding shares of Common Stock into a greater number of shares of Common Stock, or (iii) a combination or reverse stock split of outstanding shares of Common Stock into a smaller number of
shares of the Common Stock. 
  

 8 

 5.6. Adjustment Upon Capital Reorganization or Reclassification. If the Common Stock shall
be changed into the same or different number of shares of any other class or classes of capital stock, whether by capital reorganization, recapitalization, reclassification or otherwise (other than an Extraordinary Common Stock Event), then and in
each such event the holder of each Note shall have the right thereafter to convert such Note into, in lieu of the number of shares of Common Stock which the holder would otherwise have been entitled to receive, the kind and amount of shares of
capital stock and other securities and property receivable upon such reorganization, recapitalization, reclassification or other change by the holders of the number of shares of Common Stock into which such Note could have been converted immediately
prior to such reorganization, recapitalization, reclassification or change, all subject to further adjustment as provided herein. The provision for such conversion right shall be a condition precedent to the consummation by the Company of any such
transaction. 
  
 5.7. Certificate as to Adjustments; Notice by
Company. In each case of an adjustment or readjustment of the Conversion Price, the Company at its expense will furnish each holder of the Note with a certificate prepared by the Treasurer or Chief Financial Officer of the Company,
showing such adjustment or readjustment, and stating in detail the facts upon which such adjustment or readjustment is based. 
  
 5.8. Consolidation or Merger. If any consolidation or merger of the Company with another corporation shall be effected, then, as a condition of
such consolidation or merger, lawful and adequate provision shall be made whereby the holder of the Note shall thereafter have the right to receive upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common
Stock of the Company immediately theretofore receivable upon the conversion of the Note, such shares of stock, securities or assets as may be issued or payable with respect to or in exchange for a number of outstanding shares equal to the number of
shares of Common Stock immediately theretofore so receivable by such holder had such consolidation or merger not taken place, and in any such case appropriate provision shall be made with respect to the rights and interests of such holder to the end
that the provisions hereof (including without limitation provisions for adjustment of the Conversion Price) shall thereafter be applicable, as nearly as may be, in relation to any shares of stock, securities or assets thereafter deliverable upon the
exercise of such conversion rights. The Company shall not effect any such consolidation or merger, unless prior to or simultaneously with the consummation thereof the successor corporation (if other than the Company) resulting from such
consolidation or merger shall assume by written instrument executed and mailed or delivered to the holder hereof, the obligation to deliver to such holder such shares of stock, securities or assets as, in accordance with the foregoing provisions,
such holder may be entitled to receive. Except as expressly set forth in this Section 5.8, however, nothing contained in this Section 5.8 will be deemed to restrict the Company from entering into a consolidation or merger; provided, however,
that the restrictions of the Purchase Agreement shall remain applicable. 
  
 5.9. Notice of Certain Actions. In case at any time: 
  
 5.9.1. the Company shall declare any dividend upon shares of its capital stock payable in securities or make any special dividend or other
distribution; 
  

 9 

 5.9.2. the Company shall offer for subscription pro rata to the holders of any class of
its capital stock any additional securities of any class or other rights; 
  
 5.9.3. there shall be any capital reorganization, or reclassification of the capital stock of the Company, or consolidation or merger of the Company with, or sale of all or substantially all its assets to, another
corporation; 
  
 5.9.4. there shall be a
voluntary or involuntary dissolution, liquidation or winding-up of the Company; or 
  
 5.9.5. the Company shall enter into an agreement or adopt a plan for the purpose of effecting a consolidation, merger, or sale of all or
substantially all of its assets; 
  
 then, in any one or more of said cases, the
Company shall give written notice, by first class mail, postage prepaid, to the registered holder hereof, of the date on which (a) the books of the Company shall close or a record shall be taken for such dividend, distribution or subscription
rights, or (b) such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up shall take place, as the case may be. Such notice shall also specify the date as of which the holders of shares of record shall
participate in such dividend, distribution or subscription rights, or shall be entitled to exchange their shares for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation, or winding-up, as the case may be. Such written notice shall be given at least 30 days prior to the action in question and not less than 30 days prior to the record date or the date on which the Company’s transfer books are closed
in respect thereto. 
  
 5.10. Registration and Listing. If
any shares required to be reserved for purposes of conversions of the Note hereunder require registration with or approval of any governmental authority under any federal (other than the Securities Act of 1933 or similar federal statute then in
force) or state law, or listing on any national securities exchange, before such shares may be issued upon conversion, the Company will, at its expense, as expeditiously as possible cause such shares to be duly registered or approved, or listed on
the relevant national securities exchange, as the case may be. 
  
 5.11. Automatic Conversion. 
  
 5.11.1. Events Causing Conversion. Immediately (A) upon the closing of a Qualified Public Offering, as hereinafter defined, but subject to such closing, or (B) upon the closing of a Qualified Sale of the Company, but subject to such
closing, this Note shall be converted automatically into the number of shares of Common Stock into which the Note is then convertible pursuant to Section 5.1 as of the closing and consummation of such Qualified Public Offering or the date of the
event constituting the Qualified Sale of the Company, without any further 

  

 10 

 
action by the holder of the Note and whether or not the Note is surrendered to the Company or its transfer agent. 
  
 5.11.2. Definitions. 
  

	 	(a)	 	A “Qualified Public Offering” shall mean an underwritten public offering on a firm commitment basis pursuant to an effective registration statement filed pursuant to the
Securities Act of 1933, as amended (other than on Form S-4 or S-8 or any successor forms thereto), covering the offer and sale of Common Stock for the account of the Company in which the Company actually receives gross proceeds equal to or greater
than $70,000,000 (calculated before deducting underwriters discounts and commissions and before calculation of expenses), and in which the price per share of Common Stock equals or exceeds $0.3243 (such price subject to adjustment in the same manner
that the Conversion Price is subject to adjustment under this Section 5). 

  

	 	(b)	 	A “Qualified Sale of the Company” shall mean a Sale of the Company which provides for minimum consideration payable with respect to each share of Common Stock (on a fully
diluted basis) of at least $0.3243 in cash or in market value of “Liquid Stock” (such price subject to adjustment in the same manner that the Conversion Price is subject to adjustment under this Section 5). 

  

	 	(c)	 	The term “Sale of the Company” shall mean a merger or consolidation of the Company with another company which is not an Affiliate of the Company, the sale of all or
substantially all of the assets of the Company to a company which is not an Affiliate of the Company, or the sale of all or substantially all of the outstanding Common Stock of the Company to a person or persons who are not then stockholders of the
Company or an Affiliate of the Company. 

  

	 	(d)	 	“Liquid Stock” shall mean capital stock which is registered under Section 12(b) or Section 12(g) of the Securities Exchange Act of 1934, as amended, the disposition of
which would not be significantly restricted by low trading volume; provided, that capital stock which is either (i) listed for trading on the NASDAQ National Market System with average daily trading volume over the past six months of at least
75,000 shares, or (ii) listed for trading on the New York Stock Exchange, Inc. shall be deemed to be Liquid Stock. 

  

 11 

	 	(e)	 	The term “Affiliate” shall mean a person who controls, is controlled by, or is under common control with, the Company. 

  
 5.11.3. Automatic Conversion Upon Failure to Pay Purchase
Price Installment. In the event that the holder shall fail to pay any installment of the purchase price of this Note when due pursuant to any of Sections 1.1(b)(ii)-(ix) of the Purchase Agreement, and such failure shall not be cured on or before
the 20th calendar day following such due date, this Note shall immediately be converted automatically into the
number of shares of Common Stock into which the Note is then convertible pursuant to Section 5.1 as of the close of business of such 20th day, without any further action by the holder of the Note and whether or not the Note is surrendered to the Company or its transfer agent. 
  
 5.11.4. Surrender of Certificates Upon Automatic Conversion. Upon the occurrence of the
conversion event specified in either Section 5.11.1 or 5.11.3, the holder of the Note shall, upon notice from the Company, surrender the Note at the office of the Corporation or its transfer agent for the Common Stock. Thereupon, there shall be
issued and delivered to such holder a certificate or certificates for the number of shares of Common Stock into which the Note so surrendered was convertible on the date on which the conversion occurred. The Company shall not be obligated to issue
such certificates unless the Note is either delivered to the Company or any such transfer agent or the holder notifies the Company that the Note has been lost, stolen or destroyed and executes an agreement satisfactory to the Company to indemnify
the Company from any loss incurred by it in connection therewith. 
  
 6. Event of Default. In case an Event of Default, as defined in the Purchase Agreement, shall have occurred and be continuing, the unpaid principal of the Note and any accrued and unpaid interest thereon may be declared, and upon
such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Purchase Agreement and the Collateral Agreements. 
  
 7. Covenants. The Company covenants and agrees with the registered holder of this Note to do (or refrain from doing)
all those things required of the Company pursuant to the covenants set forth in the Purchase Agreement and the Collateral Agreements. 
  
 8. Exchange or Replacement of Note. 
  
 8.1. The holder of the Note, at its option, may in person or by duly authorized attorney surrender the Note for exchange at the office of the Company, and
at the expense of the Company receive in exchange therefor a new Note in the same aggregate principal amount as the aggregate unpaid principal amount of the Note so surrendered and bearing interest at the same annual rate as the Note so surrendered,
each such new Note to be dated as of the date to which interest has been paid on the Note so surrendered and to be in such principal amount and, subject to the restrictions on transfer contained in the Purchase Agreement, payable to such person or

  

 12 

 
persons, or order, as such holder may designate in writing; provided, however, that the Company shall not be required to pay any tax which may be payable in
respect of any transfer involved in the issuance and delivery of any new Note in a name other than that of the holder of the Note surrendered in exchange therefor. Five days prior written notice of the holder’s intention to make such exchange
shall be given to the Company. 
  
 8.2. Upon receipt by the
Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Note and (in case of loss, theft or destruction) of indemnity satisfactory to it, and upon reimbursement to the Company of all reasonable expenses
incidental thereto, and upon surrender and cancellation of this Note, if mutilated, the Company will make and deliver a new Note of like tenor in lieu of this Note. Any Note made and delivered in accordance with the provisions of this paragraph (b)
shall be dated as of the date to which interest has been paid on this Note. 
  
 9. Amendments and Waivers. The holders of more than 80% in aggregate principal amount of the Notes at the time outstanding and the Company may from time to time enter into agreements for the purpose of amending
or waiving any covenant, agreement or condition of the Notes or changing in any manner the rights of the holder of the Notes or the Company; and action of the holders of more than 80% in aggregate principal amount of the Notes at the time
outstanding shall bind all holders of the Notes, each future-holder of the Notes and upon the Company, whether or not such Notes shall have been marked to indicate such amendment or waiver, but any substitute Note issued thereafter shall bear a
notation referring to any such amendment or continuing waiver. 
  
 10. Communications. All communications provided for hereunder shall be made in accordance with the requirements of Section 14.7 of the Purchase Agreement. 
  
 11. Severability. Should any part but not the whole of this Note for any reason be declared invalid, such decision
shall not affect the validity of any remaining portion, which remaining portion shall remain in force and effect as if this Note had been executed with the invalid portion thereof eliminated, and it is hereby declared the intention of the parties
hereto that they would have executed the remaining portion of this Note without including therein any such part which may, for any reason, be hereafter declared invalid. 
  
 12. Captions. The descriptive headings of the various Sections or parts of this Note are for convenience only and
shall not affect the meaning or construction of any of the provisions hereof. 
  
 13. Successors and Assigns. This Note shall be binding upon the parties and their respective successors and assigns. 
  

 13 

 14. Governing Law. This Note shall be governed by the laws of the State of Delaware. 

 

	AIRNET COMMUNICATIONS CORPORATION
		
	 By
	 	 /s/ Glenn A. Ehley

	 	 	 Print Name: Glenn A. Ehley

	 	 	 Title: President and Chief Executive Officer

  
  

 14 

 SCHEDULE A 
  

This schedule sets forth the principal amount borrowed by the Company from TECORE, up to the maximum amount set forth on the face of this Note.

  

	

	Date	 	Principal Amount	 	 Signature of Authorized
 Officer
of the Company

	

	 August 13, 2003
	 	$5,000,000	 	/s/Joseph F. Gerrity, Airnet Corp.
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

 SCHEDULE B 
  

This schedule sets forth the principal amount and/or interest converted into Common Stock. 
  

	

	Date	 	Principal Amount Converted	 	Interest Amount Converted
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

 AIRNET COMMUNICATIONS CORPORATION 

 
 SENIOR SECURED CONVERTIBLE NOTE 
  
 CONVERSION NOTICE 
  
 AirNet Communications Corporation: 
  
 The undersigned holder of this Note hereby irrevocably exercises the option
to convert this Note, or such portion hereof as is specified below, into shares of Common Stock of AirNet Communications Corporation in accordance with the terms of this Note, and directs that the shares issuable and deliverable upon the conversion
be issued in the name of and delivered to the undersigned unless a different name has been indicated below. If shares are to be issued in the name of a person other than the undersigned, the undersigned will pay transfer taxes payable with respect
thereto. If this conversion involves fractional shares, please issue the related check to the same person entitled to receive the shares. 
  

	 Dated:
                        
	    	 Principal Amount to be converted (if less than all):

		
	 	    	 $________________________

		
	 	    	 Accrued Interest on Principal Amount to be converted:

		
	 If shares are to be issued
	    	 
	 otherwise than to owner:
	    	 
		
	 Tax Identification
	    	 
	 Number of Transferee _______
	    	                     
___________________________________

	 	    	 Signature of Owner

		
	 _________________________
	    	 
		
	 _________________________
	    	 
		
	 _________________________
	    	 Please print name and address of Transferee (including zip code)

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