Document:

EXHIBIT 4.1

EVOLVING
SYSTEMS, INC.

JAMES
E. KING EQUITY INCENTIVE PLAN

1.             Purposes

(a)           The purpose of this Plan is to induce
James E. King (“Optionee”) to
enter into an employment arrangement with Evolving Systems, Inc. (the “Company”),
or an Affiliate, as Vice President of World Wide Sales and Marketing, and
pursuant to which Optionee may be given an opportunity to benefit from
increases in the value of the Company’s common stock (“Common Stock”) through
the granting of Non-statutory Stock Options.

(b)           All Options will be Non-statutory
Stock Options at the time of grant, and in such form as issued pursuant to
Section 6, and a separate certificate or certificates will be issued for shares
purchased on exercise of each Option.

2.             Definitions

(a)           “Affiliate”
means any parent corporation or subsidiary corporation, whether now or
hereafter existing, as those terms are defined in Sections 424(e) and (f)
respectively, of the Code.

(b)                                  “Board”
means the Board of Directors of the Company.

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

(d)                                  “Committee”
means a Committee appointed by the Board in accordance with subsection 3(c) of
the Plan.

(e)                                  “Company”
means Evolving Systems, Inc., a Delaware corporation.

(f)                                    “Consultant” means any person, including an advisor,
engaged by the Company or an Affiliate to render consulting services and who is
compensated for such services, provided that the term “Consultant” shall not
include Directors who are paid only a director’s fee by the Company or who are
not compensated by the Company for their services as Directors.

(g)                                 “Continuous
Status as an Employee, Director or Consultant” means that the
service of an individual to the Company, whether as an Employee, Director or
Consultant, is not interrupted or terminated. 
Transitioning from one category of service to another, for example, from
Employee to Director status, shall not result in an interruption or termination
of Continuous Status provided there is no intervening period between the
transition. The Board or the Chief Executive Officer of the Company may
determine, in that party’s sole discretion, whether Continuous Status as an
Employee, Director or Consultant shall be considered interrupted in the case
of:  (i) any leave of absence approved by
the Company, including sick leave, military leave, or any other personal leave;
or (ii) transfers between the Company, Affiliates or their successors.  In the absence of a specific determination to
the contrary, matters described in items (i) and (ii) shall not be considered
an interruption of Continuous Status.

(h)                                 “Director”
means a member of the Board.

(i)                                    “Employee”
means any person, including Officers and Directors, employed by the Company or
any Affiliate of the Company.  Neither
service as a Director nor payment of a director’s fee by the Company shall be
sufficient to constitute “employment” by the Company.

(j)            “Exchange Act”
means the Securities Exchange Act of 1934, as amended.

(k)                                “Fair
Market Value” means, as of any date, the value of the Common Stock
of the Company determined as follows:

i.                  If the Common Stock is listed on any
established stock exchange, or traded on the Nasdaq National Market or The
Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock shall
be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or market (or the exchange or market with
the greatest volume of trading in Common Stock) on the date of the grant or, if
such date is not a trading date, the last market trading day prior to
determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable;

ii.               In the absence of such markets for the
Common Stock, the Fair Market Value shall be determined in good faith by the
Board.

(l)                                    “Incentive
Stock Option” means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code and the regulations
promulgated thereunder.

(m)                              “Nonstatutory
Stock Option” means an Option not intended to qualify as an Incentive
Stock Option.

(n)                                  “Officer”
means a person who is an officer of the Company within the meaning of Section
16 of the Exchange Act and the rules and regulations promulgated thereunder.

(o)                                  “Option”
means a stock option granted pursuant to the Plan.

(p)                                  “Option
Agreement” means a written agreement between the Company and an
Optionee evidencing the terms and conditions of an individual Option
grant.  Each Option Agreement shall be
subject to the terms and conditions of the Plan.

(q)                                  “Optionee”
means a person to whom an Option is granted pursuant to the Plan.

(r)                                  “Plan”
means this Equity Incentive Plan.

(s)                                  “Rule
16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule
16b-3, as in effect when discretion is being exercised with respect to the
Plan.

(t)                                    “Securities
Act” means the Securities Act of 1933, as amended.

(u)                                  “Stock
Award” means any right granted under the Plan, including any Option.

(v)                                    “Stock
Award Agreement” means a written agreement between the Company and a
holder of a Stock Award evidencing the terms and conditions of an individual
Stock Award grant.  Each Stock Award
Agreement shall be subject to the terms and conditions of the Plan.

3.             Administration

(a)                                  The Plan shall be administered by the
Board unless and until the Board delegates administration to a Committee, as
provided in subsection 3(c).

(b)                                  The Board shall have the power, subject
to, and within the limitations of, the express provisions of the Plan:

i.                                          To determine from time to time the number
of shares and when and how each Stock Award shall be granted; whether a Stock
Award will be an Incentive Stock Option or a Nonstatutory Stock Option.

ii.                                       To construe and interpret the Plan and
Stock Awards granted under it, and to establish, amend and revoke rules and
regulations for its administration.  The
Board, in the exercise of this power, may correct any defect, omission or
inconsistency in the Plan or in any Stock Award Agreement, in a manner and to
the extent it shall deem necessary or expedient to make the Plan fully effective.

iii.                                    To amend the Plan or a Stock Award as
provided in Section 12.

iv.                                   Generally, to exercise such powers and to
perform such acts as the Board deems necessary or expedient to promote the best
interests of the Company which are not in conflict with the provisions of the
Plan.

(c)                                  The Board may delegate administration of
the Plan to a committee of the Board composed of not fewer than two (2) members
(the “Committee”), all of the members of which Committee shall be, in the
discretion of the Board, Non-Employee Directors and/or outside Directors.  If administration is delegated to a
Committee, the Committee shall have, in connection with the administration of
the Plan, the powers theretofore possessed by the Board, including the power to
delegate to a subcommittee of two (2) or more outside Directors any of the
administrative powers the Committee is authorized to exercise (and references
in this Plan to the Board shall thereafter be to the Committee or such a
subcommittee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board.  The Board may abolish the Committee at any
time and revest in the Board the administration of the Plan.

4.             Shares Subject to the Plan

(a)                                 Subject to the provisions of Section 11 relating to
adjustments upon changes in stock, the stock that may be issued pursuant to
Stock Awards under this Plan shall not exceed in the aggregate one hundred thousand (100,000) shares of
Common Stock.  If any Stock Award for any
reasons expires or otherwise terminates, in whole or in part, without having
been exercised in full, the stock not acquired under such Stock Award shall
cease to be subject to the Plan.

(b)                                  The stock subject to the Plan may be
unissued shares or reacquired shares, bought on the market or otherwise.

5.                                    Eligibility

(a)                                  Incentive Stock Options may be granted
only to Employees.  Stock Awards other
than Incentive Stock Options may be granted only to Employees, Directors or
Consultants.

(b)                                  Subject to the provisions of Section 11
relating to adjustments upon changes in stock, no person shall be eligible to
be granted options covering more than one hundred thousand (100,000) shares of
the Company’s common stock in any calendar year.

6.             Option Provisions

Each Option shall be in
such form and shall contain such terms and conditions as the Board shall deem
appropriate.  The provisions of separate
Options need not be identical, but each Option shall include (through incorporation
of provisions hereof by reference in the Option or otherwise) the substance of
each of the following provisions:

a.               Term. 
No Option shall be exercisable after the expiration of ten (10) years
from the date it was granted.

b.              Price. 
The exercise price of each Nonstatutory Stock Option shall be not less
than one hundred percent (100%) of the Fair Market Value of the stock subject
to the Option on the date the Option is granted.

c.               Consideration. 
The purchase price of stock acquired pursuant to an Option shall be
paid, to the extent permitted by applicable statutes and regulations, either
(i) in cash at the time the Option is exercised, or (ii) at the discretion of
the Board or Committee, at the time of the common stock is issued pursuant to
the exercise of the Option in any other form of legal consideration that may be
acceptable to the Board.

d.              Transferability.  A
Nonstatutory Stock Option shall not be transferable except by will, by the laws
of descent and distribution or pursuant to a domestic relations order
satisfying the requirements of Rule 16b-3, and shall be exercisable during the
lifetime of the person to whom the Option is granted only by such person or any
transferee pursuant to a domestic relations order.  Notwithstanding the foregoing, the person to
whom the Option is granted may, by delivering written notice to the Company, in
a form satisfactory to the Company, designate a third party who, in the event
of the death of the Optionee, shall thereafter be entitled to exercise the
Option.

e.               Vesting. 
The total number of shares of stock subject to an Option may, but need
not, be allotted in periodic installments (which may, but need not, be
equal).  The Option Agreement may provide
that from time to time during each of such installment periods, the Option may
become exercisable (“vest”) with respect to some or all of the shares allotted
to that period, and may be exercised with respect to some or all of the shares
allotted to such period and/or any prior period as to which the Option became
vested but was not fully exercised.  The
Option may be subject to such other terms and conditions on the time or times
when it may be exercised (which may be based on performance or other criteria)
as the Board may deem appropriate.  The
provisions of this subsection 6(e) are subject to any Option provisions
governing the minimum number of shares as to which an Option may be exercised.

f.                 Termination of
Employment or Relationship as a Director or Consultant. 
In the event an Optionee’s Continuous Status as an Employee, Director or
Consultant terminates (other than upon the Optionee’s death or disability), the
Optionee may exercise his Option (to the extent that the Optionee was entitled
to exercise it as of the date of termination) but only within such period of
time ending on the earlier of (i) the date three (3) months after the
termination of the Optionee’s Continuous Status as an Employee, Director or
Consultant (or such longer period specified in writing by the Board of
Directors), or (ii) the expiration of the term of the Option as set forth in
the Option Agreement.  If, at the date of
termination, the Optionee is not entitled to exercise his entire Option, the
shares covered by the unexercisable portion of the Option shall cease to be
subject to the Plan.  If, after
termination, the Optionee does not exercise his

Option within the time specified in the Option Agreement, the Option
shall terminate, and the shares covered by such Option shall cease to be
subject to the Plan.

g.              Disability of Optionee. 
In the event an Optionee’s Continuous Status as an Employee, Director or
Consultant terminates as a result of the Optionee’s disability, the Optionee
may exercise his Option (to the extent that the Optionee was entitled to
exercise it as of the date of termination), but only within such period of time
ending on the earlier of (i) the date twelve (12) months following such
termination, or (ii) the expiration of the term of the Option as set forth in
the Option Agreement.  If, at the date of
termination, the Optionee is not entitled to exercise his entire Option, the
shares covered by the unexercisable portion of the Option shall cease to be
subject to this Plan.  If, after
termination, the Optionee does not exercise his or her Option within the time
specified herein, the Option shall terminate, and the shares covered by such
Option shall cease to be subject to this Plan.

h.              Death of Optionee. 
In the event of the death of an Optionee during the Optionee’s
Continuous Status as an Employee, Director or Consultant, the Option may be
exercised (to the extent the Optionee was entitled to exercise the Option as of
the date of death) by the Optionee’s estate, by a person who acquired the right
to exercise the Option by bequest or inheritance or by a person designated to
exercise the option upon the Optionee’s death pursuant to subsection 6(d), but
only within the period ending on the earlier of (i) the date eighteen (18)
months following the date of death, or (ii) the expiration of the term of such
Option as set forth in the Option Agreement. 
If, at the time of death, the Optionee was not entitled to exercise his
entire Option, the shares covered by the unexercisable portion of the Option
shall cease to be subject to this Plan. 
If, after death, the Option is not exercised within the time specified
herein, the Option shall terminate, and the shares covered by such Option shall
cease to be subject to this Plan.

7.                                      Cancellation and
Re-Grant of Options

a.               The Board or the Committee shall have the
authority to effect, at any time and from time to time (i) the repricing of any
outstanding Options under the Plan and/or (ii) with the consent of the affected
holders of Options, the cancellation of any outstanding Options and the grant
in substitution therefor of new Options under the Plan covering the same or different
numbers of shares of common stock, but having an exercise price per share not
less than one hundred percent (100%) of the Fair Market Value of the common
stock on the new grant date.

b.              Shares subject to an Option canceled
under this Section 7 shall continue to be counted against the maximum award of
Options permitted to be granted pursuant to the Plan.  The repricing of an Option hereunder
resulting in a reduction of the exercise price, shall be deemed to be a cancellation
of the original Option and the grant of a substitute Option; in the event of
such repricing, both the original and the substituted Options shall be counted
against the maximum awards of Options permitted to be granted pursuant to the
Plan, to the extent required by Section 162(m) of the Code.

8.                                      Covenants of the Company

a.               During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of stock
required to satisfy such Stock Awards.

b.              The Company shall seek to obtain from
each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to issue and sell shares under Stock Awards;
provided, however, that this undertaking shall not require the Company to
register under the Securities Act either the Plan, any Stock Award or any stock
issued or issuable pursuant to any such Stock Award.  If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the authority
which counsel for the Company deems necessary for the lawful issuance and sale
of stock under the Plan, the Company shall be relieved from any liability for
failure to issue and sell stock upon exercise of such Stock Awards unless and
until such authority is obtained.

9.                                      Use of Proceeds from
Stock

Proceeds from the
sale of stock pursuant to Stock Awards shall constitute general funds of the
Company.

10.                               Miscellaneous

a.               The Board shall have the power to
accelerate the time at which a Stock Award may first be exercised or the time
during which a Stock Award or any part thereof will vest, and to extend the
period of time during which options may be exercised, notwithstanding the
provisions in the Stock Award stating the time at which it may first be
exercised or the time during which it will vest or the allowable time period
for exercise as described in subsections 6(f), (g) and (h) above.

b.              Neither an Employee, Director nor a
Consultant nor any person to whom a Stock Award is transferred in accordance
with the Plan shall be deemed to be the holder of, or to have any of the rights
of a holder with respect to, any shares subject to such Stock Award unless and
until such person has satisfied all requirements for exercise of the Stock
Award pursuant to its terms.

c.               Nothing in the Plan nor any instrument
executed nor Stock Award granted pursuant hereto shall confer upon any
Employee, Director, Consultant or Optionee any right to continue in the employ
of the Company or any Affiliate (or to continue acting as a Director or
Consultant) or shall affect the right of the Company or any Affiliate to
terminate the employment of any Employee, to remove any Director as provided in
the Company’s By-Laws and the provisions of the General Corporation Law of the
State of Delaware, or to terminate the relationship of any Consultant in
accordance with the terms of that Consultant’s agreement with the Company or
Affiliate to which such Consultant is providing services.

d.              The Company may require any person to
whom a Stock Award is granted, or any person to whom a Stock Award is transferred
in accordance with the Plan, as a condition of exercising or acquiring stock
under any Stock Award, (1) to give written assurances satisfactory to the
Company as to such person’s knowledge and experience in financial and business
matters and/or to employ a purchaser representative reasonably satisfactory to
the Company who is knowledgeable and experienced in financial and business
matters, and that he is capable of evaluating, alone or together with the
purchaser representative, the merits and risks of exercising the Stock Award;
and (2) to give written assurances satisfactory to the Company stating that
such person is acquiring the stock subject to the Stock Award for such person’s
own account and not with any present intention of selling or otherwise
distributing the stock.  The foregoing
requirements, and any assurances given pursuant to such requirements, shall be

inoperative if (i) the issuance of the shares upon the exercise or
acquisition of stock under the Stock Award has been registered under a then
currently effective registration statement under the Securities Act, or (ii) as
to any particular requirement, a determination is made by counsel for the
Company that such requirement need not be met in the circumstances under the
then applicable securities laws.  The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the stock.

e.               To the extent provided by the terms of a
Stock Award Agreement, the person to whom a Stock Award is granted may satisfy
any federal, state or local tax withholding obligation relating to the exercise
or acquisition of stock under a Stock Award by any of the following means or by
a combination of such means:  (1)
tendering a cash payment; (2) authorizing the Company to withhold shares from
the shares of the Common Stock otherwise issuable to the participant as a
result of the exercise or acquisition of stock under the Stock Award; or (3)
delivering to the Company owned and unencumbered shares of the Common Stock of
the Company.

11.                               Adjustments Upon Changes
in Stock

a.               If any change is made in the stock subject
to the Plan, or subject to any Stock Award, without the receipt of
consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange
of shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the class(es) and maximum number of shares subject to the Plan and
the maximum number of shares subject to award to any person during any calendar
year, and the outstanding Stock Awards will be appropriately adjusted in the
class(es) and number of shares and price per share of stock subject to such
outstanding Stock Awards.  Such
adjustments shall be made by the Board or Committee, the determination of which
shall be final, binding and conclusive. 
(The conversion of any convertible securities of the Company shall not
be treated as a “transaction not involving the receipt of consideration by the
Company.”)

b.              In the event of:  (1) a dissolution, liquidation or a sale of
substantially all of the assets of the Company; (2) a merger or consolidation
in which the Company is not the surviving corporation; (3) a reverse merger in
which the Company is the surviving corporation but the shares of the Common
Stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash or otherwise;
or (4) the acquisition by any person, entity or group within the meaning of
Section 13(d) or 14(d) of the Exchange Act, or any comparable successor
provisions (excluding any employee benefit plan, or related trust, sponsored or
maintained by the Company or any Affiliate of the Company) of the beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act,
or comparable successor rule) of securities of the Company representing at
least fifty percent (50%) of the combined voting power entitled to vote in the
election of directors, then to the extent permitted by applicable law: (i) any
surviving corporation (or an Affiliate thereof), shall assume any Stock Awards
outstanding under the Plan or shall substitute similar Stock Awards for those
outstanding under the Plan and such Stock Awards shall continue in full force
an effect.  In the event any surviving
corporation (or an Affiliate) refuses to assume or continue such Stock Awards,
or to substitute similar Stock Awards for those outstanding under the Plan,
then vesting shall accelerate such that such Stock Awards

are fully vested at such event and shall be exercisable for a period of
15 days after notice from the Company. 
If not so exercised with the 15 day period, then such Stock Awards shall
be terminated.

12.                               Amendment of the Plan
and Stock Awards

a.               The Board at any time, and from time to
time, may amend the Plan.  However,
except as provided in Section 11 relating to adjustments upon changes in stock,
no amendment shall be effective unless approved by the stockholders of the
Company to the extent stockholder approval is necessary for the Plan to satisfy
the requirements of Section 422 of the Code, Rule 16b-3 or any Nasdaq or
securities exchange listing requirements.

b.              The Board may in its sole discretion
submit any other amendment to the Plan for stockholder approval, including, but
not limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations thereunder regarding the
exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers.

c.               It is expressly contemplated that the
Board may amend the Plan in any respect the Board deems necessary or advisable
to provide eligible Employees, Directors or Consultants with the maximum
benefits provided or to be provided under the provisions of the Code and the
regulations promulgated thereunder relating to 
Stock Options and/or to bring the Plan and/or Stock Options granted
under it into compliance therewith.

d.              Rights and obligations under any Stock
Award granted before amendment of the Plan shall not be impaired by any
amendment of the Plan unless (i) the Company requests the consent of the person
to whom the Stock Award was granted and (ii) such person consents in writing.

e.               The Board at any time, and from time to
time, may amend the terms of any one or more Stock Award; provided, however,
that the rights and obligations under any Stock Award shall not be impaired by
any such amendment unless (i) the Company requests the consent of the person to
whom the Stock Award was granted and (ii) such person consents in writing.

13.                               Termination or
Suspension of the Plan

a.               The Board may suspend or terminate the
Plan at any time.  Unless sooner
terminated, the Plan shall terminate ten (10) years from the date the Plan is
adopted by the Board or approved by the stockholders of the Company, whichever
is earlier.  No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated.

b.              Rights and obligations under any Stock
Award granted while the Plan is in effect shall not be impaired by suspension
or termination of the Plan, except with the consent of the person to whom the
Stock Award was granted.

14.                               Effective Date of Plan

This
Plan shall be become effective on March 12, 2007.

 

	
  EVOLVING SYSTEMS, INC.

  
	
   

  
	
  By:

  	
  /s/ Anita T. Moseley

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Anita T. Moseley

  
	
   

  	
   

  
	
  Title:

  	
  Senior Vice
  President & General CounselEXHIBIT 4.2

Evolving
Systems, Inc.

Non-Qualified
Stock Option

Option
Agreement

March
12, 2007

James
E. King, Optionee:

Evolving Systems,
Inc. (the “Company”), pursuant to the James E. King Equity Incentive Plan (the “Plan”),
has this day granted to you, the optionee named above (“Optionee”), options
(the “Options”) to purchase shares of the common stock of the Company (“Common
Stock”).  The Options are not intended to
qualify and will not be treated as an “incentive stock option” within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

The details of
your Options are as follows:

1.             Shares

The total number
of shares of Common Stock subject to the options are 100,000 shares. Subject to the conditions stated herein, the Options
shall be exercisable with respect to each installment shown below on or after
the date of vesting applicable to such installment; provided, however, that
should your employment terminate for “cause” this option shall be terminated
and canceled immediately and shall not be exercisable for any number of
shares.  For purposes of this option, “cause”
shall mean misconduct including, but not limited to, criminal acts involving
moral turpitude or dishonesty.

2.             Vesting Installments

Vesting shall
occur over a four (4) year period as follows: Twenty-five percent (25%) of the
Options shall vest on the one year anniversary date of the date of the grant (“First
Vest Date”).  The remaining seventy-five
percent (75%) shall vest in equal quarterly increments thereafter over a three
(3) year period, beginning three (3) months after the First Vest Date.

3.             Exercise Price; Payment

The exercise price
for the Options is $1.72 per
share, being the closing price for the Company’s stock on the date of this
grant.  Payment of the exercise price per
share is due in full in cash (including check) upon exercise of all or any part
of each installment which has become exercisable by you.  Options may be exercised pursuant to a
program developed under Regulation T as promulgated by the Federal Reserve
Board which results in the receipt of cash (or check) by the Company prior to
the issuance of Common Stock. Options may not be exercisable for any number of
shares which would require the issuance of anything other than whole shares.

4.             Registered Stock

Notwithstanding
anything to the contrary contained herein, the Options may not be exercised
until the shares issuable upon exercise of the Options are then registered
under the Securities Act of 1933, or, if 

such shares are
not then so registered, the Company has determined that such exercise and
issuance would be exempt from the registration requirements of the Securities
Act.

5.             Term; Termination

(a)           The term of the Options commences on
the date hereof, and, unless sooner terminated as forth in the Plan, is
terminated ten (10) years from the date of grant (March 11, 2017).  In no event may the Options be exercised on
or after the date on which they terminate.

(b)           The Options shall terminate prior to
the expiration of its term upon termination of your employment with the Company
for any reason, other than cause as defined above

The Options may be
exercised on or after the termination of employment in accordance with Section
6 of the Plan, only as to that number of shares vested on the date of
termination of employment.

6.             Method of Exercise

The Options may be
exercised by delivering a notice of exercise (in the form provided by the
Company) together with the exercise price to the Secretary of the Company, or
to such other person as the Company may designate, during regular business
hours, together with such additional documents as the Company may then require
pursuant to the Plan.  In the event of a “cashless
exercise”, you may exercise the Options by providing such documentation to the
brokerage firm retained by you as such brokerage firm may require.

By exercising the
Options you agree that the Company may require you to enter into an arrangement
providing for the payment by you to the Company of any tax withholding
obligations of the Company arising by reason of the exercise of the Options or
the disposition of shares acquired upon such exercise.

7.             Transferability

The Options are
not transferable except as specifically allowed under the Plan.

8.             Notices

Any notice
provided for in this Option Agreement shall be given in writing and shall be
deemed effectively given upon receipt or, in the case of notices delivered by
the Company to you, five days after deposit in the United States mail, postage
prepaid, addressed to you at the address specified below or such other address
as you hereafter designate by written notice to the Company.

9.             Conflict

The Options are
subject to all of the provisions of the Plan, a copy of which is attached to
this Option Agreement and its provisions are made a part of this option.  In the event of any conflict between the
provisions of this option and those of the Plan, the provisions of the Plan
shall control.  If the parties hereto
shall have any conflict regarding the terms of the Options, the interpretation
of the Company’s Compensation Committee shall prevail.

 

Dated
this 12th day of March,
2007.

EVOLVING SYSTEMS,
INC.

Duly
authorized on behalf of the Board of Directors

	
  By:

  	
  /s/ Anita T. Moseley

  	
   

  
	
   

  	
   

  
	
  Printed Name:

  	
  Anita T. Moseley

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  Senior Vice President and

  	
   

  
	
   

  	
  General Counsel

  	
   

  
					

 

The undersigned
acknowledges receipt of the foregoing option and the Plan and understands that
all rights and liabilities with respect to the Options are set forth in this
Option Agreement and the Plan.  The
undersigned further acknowledges that as of the date of grant of the Options,
this Option Agreement sets forth the entire understanding between the
undersigned Optionee and the Company and its Affiliates regarding the Options
and supersedes all prior oral and written agreements on that subject.

 

	
  /s/ James E. King

  	
   

  
	
  James E. King

  
	
   

  
	
  Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]