Document:

Exhibit 4.1

LANDESK GROUP LIMITED 2002 STOCK PLAN, AS AMENDED AND RESTATED

1.             Purposes of the Plan.  The
purposes of this Plan are to attract and retain the best available personnel
for positions of substantial responsibility, to provide additional incentive to
Employees, Directors and Consultants and to promote the success of the Company’s
business.  Options granted under the Plan
may be Incentive Stock Options or Nonstatutory Stock Options, as determined by
the Administrator at the time of grant. 
Stock Purchase Rights may also be granted under the Plan.

2.             Definitions and Interpretation.  As
used herein, the following definitions shall apply:

(a)           “Administrator” means the Board or any
of its Committees as shall be administering the Plan in accordance with Section
4 hereof.

(b)           “Applicable Laws” means the Companies
Acts 1963 to 2005 enacted in Ireland, the requirements relating to the
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any other country or jurisdiction where Options or Stock Purchase Rights are
granted under the Plan.

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

(d)           “Change in Control” means the
occurrence of any of the following events:

(i)    Any “person” (as such term
is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly,
of securities of the Company representing fifty percent (50%) or more of the
total voting power represented by the Company’s then outstanding voting
securities, except that any change in the beneficial ownership of the
securities of the Company as a result of a private financing of the Company
that is approved by the Board, shall not be deemed to be a Change in Control;
or

(ii)   The consummation of the
sale or disposition by the Company of all or substantially all of the Company’s
assets; or

(iii)  The consummation of a merger or consolidation
of the Company with any other corporation, other than a merger or consolidation
which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or
its Parent) at least fifty percent (50%) of the total voting power represented by the
voting securities of the Company or such
surviving entity or its Parent
outstanding immediately after such merger or consolidation (provided
that the sale by the Company of its securities for the purposes of raising
additional funds shall not constitute a Change in Control hereunder).

(e)           “Code” means the
U.S. Internal Revenue Code of 1986, as amended.  Any reference to a section of
the Code herein shall be a reference to any successor or amended section of the
Code.

(f)            “Committee” means a
committee of Directors or of other individuals satisfying Applicable Laws appointed
by the Board in accordance with Section 4 hereof.

(g)           “Common Stock” means
the ordinary shares of the Company.

 

(h)           “Company” means LANDesk
Group Limited, formerly known as LANDesk Holdings Ireland Limited, an Irish
corporation.

(i)            “Consultant” means
any person who is engaged by the Company or any Parent or Subsidiary to render
consulting or advisory services to such entity.

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

(k)           “Disability” means
total and permanent disability as defined in Section 22(e)(3) of the Code.

(l)            “Employee” means any
person, including officers and Directors, employed by the Company or any Parent
or Subsidiary 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.

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

(n)           “Exchange Program” means a program
under which (a) outstanding Options are surrendered or cancelled in exchange
for Options of the same type (which may have lower exercise prices and
different terms), Options of a different type, Options in an acquiring entity
(or a member of an acquiring entity’s group) as part of a change of control, and/or
cash, and/or shares in any entity, and/or (b) the exercise price of an
outstanding Option is reduced.  The terms
and conditions of any Exchange Program shall be determined by the Administrator
in its sole discretion.

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

(i)    If the Common Stock is
listed on any established stock exchange or a national market system, including
without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price
for such stock (or the closing bid, if no sales were reported) as quoted on
such exchange or system on the day of determination, as reported in The Wall Street Journal or such other
source as the Administrator deems reliable;

(ii)   If the Common Stock is
regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value shall be the mean between the high bid and low
asked prices for the Common Stock on the day of determination; or

(iii)  In the absence of an
established market for the Common Stock, the Fair Market Value thereof shall be
determined in good faith by the Administrator.

(p)           “Group” means the Company, the Subsidiaries and any
company which from time to time is a subsidiary or holding company of any of
them.

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

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

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

 

(t)            “Option Agreement” means a written or electronic
agreement between the Company and an Optionee evidencing the terms and
conditions of an individual Option grant. 
The Option Agreement is subject to the terms and conditions of the Plan.

(u)           “Optioned Stock” means the Common Stock subject to an
Option or a Stock Purchase Right.

(v)           “Optionee” means the holder of an outstanding Option
or Stock Purchase Right granted under the Plan.

(w)          “Parent” means a “parent corporation,” whether now or
hereafter existing, as defined in Section 424(e) of the Code.

(x)            “Plan” means this 2002 Stock Plan.

(y)           “Restricted Stock” means Shares issued pursuant to a
Stock Purchase Right or Shares of restricted stock issued pursuant to an
Option.

(z)            “Restricted Stock Purchase Agreement” means a written
agreement between the Company and the Optionee evidencing the terms and
restrictions applying to stock purchased under a Stock Purchase Right.  The Restricted Stock Purchase Agreement is
subject to the terms and conditions of the Plan and the notice of grant.

(aa) “Service Provider” means an Employee, Director or Consultant.

(bb) “Share” means a share of the Common Stock, as adjusted in accordance
with Section 13 below.

(cc) “Stock Purchase Right” means a right to purchase Common Stock
pursuant to Section 11 below.

(dd) “Subsidiary” means a “subsidiary corporation,” whether now or
hereafter existing, as defined in Section 424(f) of the Code.

3.             Stock Subject to the Plan.  Subject to the provisions of Section 13 of
the Plan, the maximum aggregate number of Shares that may be subject to Options or Stock Purchase Rights and sold under the Plan shall not exceed 16,130,000
Shares.  The Shares may be authorized but
unissued, or reacquired Common Stock.

If an
Option or Stock Purchase Right expires or becomes unexercisable without having
been exercised in full, or is surrendered
pursuant to an Exchange Program, the
unpurchased Shares that were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated).  However, Shares that have actually been
issued under the Plan, upon exercise of either an Option or Stock Purchase Right, shall not be
returned to the Plan and shall not become available for future distribution
under the Plan, except that if Shares of Restricted Stock are repurchased by
the Company at their original purchase price, such Shares shall become
available for future grant under the Plan.

4.             Administration of the Plan.

(a)           The Plan shall be
administered by the Board or a Committee appointed by the Board, which
Committee shall be constituted to comply with Applicable Laws.

 

(b)           Powers of the Administrator.  Subject to the provisions of the Plan and, in
the case of a Committee, the specific duties delegated by the Board to such
Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority in its discretion:

(i)    to determine the Fair
Market Value;

(ii)   to select the Service
Providers to whom Options or Stock Purchase Rights may from time to time be
granted hereunder;

(iii)  to determine the number of
Shares to be covered by each such Option or Stock Purchase Right granted
hereunder;

(iv)  to approve forms of
agreement for use under the Plan;

(v)   to determine the terms and
conditions of any Option or Stock Purchase Right granted hereunder.  Such terms and conditions include, but are
not limited to, the exercise price, the time or times when Options or Stock Purchase
Rights may be exercised (which may be based on performance criteria), any
vesting acceleration or waiver of forfeiture restrictions, and any restriction
or limitation regarding any Option or Stock Purchase Right or the Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

(vi)  to institute an Exchange Program;

(vii) to prescribe, amend and
rescind rules and regulations relating to the Plan, including rules and
regulations relating to sub-plans established for the purpose of satisfying
applicable foreign laws;

(viii)                to allow Optionees to
satisfy withholding tax obligations by electing to have the Company withhold
from the Shares to be issued upon exercise of an Option or Stock Purchase Right
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld.  The Fair Market
Value of the Shares to be withheld shall be determined on the date that the
amount of tax to be withheld is to be determined.  All elections by Optionees to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable; and

(ix)   to construe and interpret
the terms of the Plan and Options granted pursuant to the Plan.

(c)           Effect of Administrator’s
Decision.  All decisions, determinations and
interpretations of the Administrator shall be final and binding on all
Optionees.

5.             Eligibility.  Nonstatutory Stock Options and Stock Purchase
Rights may be granted to Service Providers. 
Incentive Stock Options may be granted only to Employees.

6.             Limitations.

(a)           Incentive Stock Option
Limit.  Each Option shall be designated in the Option
Agreement as either an Incentive Stock Option or a Nonstatutory Stock
Option.  However, notwithstanding such
designation, to the extent that the aggregate Fair Market Value of the Shares
with respect to which Incentive Stock Options are exercisable for the first
time by the Optionee during any calendar year (under all plans of the Company
and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated
as Nonstatutory Stock Options.  For
purposes of this Section 6(a), Incentive Stock Options shall be taken into 

 

account in
the order in which they were granted. 
The Fair Market Value of the Shares shall be determined as of the time
the Option with respect to such Shares is granted.

(b)           At-Will Employment.  Neither the Plan nor any Option or Stock
Purchase Right shall confer upon any Optionee any right with respect to continuing
the Optionee’s relationship as a Service Provider with the Company, nor shall
it interfere in any way with his or her right or the Company’s right to
terminate such relationship at any time, with or without cause, and with or
without notice.

7.             Term of Plan.  Subject to shareholder approval in accordance
with Section 19, the Plan shall become effective upon its adoption by the
Board.  Unless sooner terminated under
Section 15, it shall continue in effect for a term of ten (10) years from the
later of (i) the effective date of the Plan, or (ii) the earlier of the most
recent Board or shareholder approval of an increase in the number of Shares
reserved for issuance under the Plan.

8.             Term of Option.  The term of each Option shall be stated in
the Option Agreement; provided, however, that the term shall be no more than
ten (10) years from the date of grant thereof. 
In the case of an Incentive Stock Option granted to an Optionee who, at
the time the Option is granted, owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent
or Subsidiary, the term of the Option shall be five (5) years from the date of
grant or such shorter term as may be provided in the Option Agreement.

9.             Option Exercise Price and
Consideration.

(a)           Exercise Price.  The per share exercise price for the Shares
to be issued upon exercise of an Option shall be such price as is determined by
the Administrator, but shall be subject to the following:

(i)    In the case of an Incentive
Stock Option

(A)          granted to an Employee who,
at the time of grant of such Option, owns stock representing more than ten
percent (10%) of the voting power of all classes of stock of the Company or any
Parent or Subsidiary, the exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant.

(B)           granted to any other
Employee, the per Share exercise price shall be no less than 100% of the Fair
Market Value per Share on the date of grant.

(ii)   In the case of a
Nonstatutory Stock Option, the per Share exercise price shall be determined by
the Administrator.

(iii)  Notwithstanding the
foregoing, Incentive Stock Options may be granted with a per Share exercise
price other than as required above in accordance with, and pursuant to a transaction described in Section
424 of the Code provided that the exercise price shall not be less than the
nominal value of the shares.

(b)           Forms of Consideration.  The consideration to be paid for the Shares
to be issued upon exercise of an Option, including the method of payment, shall
be determined by the Administrator (and, in the case of an Incentive Stock
Option, shall be determined at the time of grant).  Such consideration  may consist of, without limitation, (1) cash,
(2) check, (3) other Shares, provided Shares acquired directly from the Company
(x) have been owned by the Optionee,
and not subject to a substantial risk of forfeiture, for more than six months on the date of surrender, and (y) have a Fair
Market Value on the date of surrender equal to the aggregate exercise price of
the Shares as to which such Option shall be exercised, (4) consideration 

 

received
by the Company under a cashless exercise program implemented by the Company in
connection with the Plan, or (5) any combination of the foregoing methods of
payment.  In making its determination as
to the type of consideration to accept, the Administrator shall consider if
acceptance of such consideration may be reasonably expected to benefit the Company.

10.           Exercise of Option.

(a)           Procedure for Exercise;
Rights as a Shareholder.  Any Option granted
hereunder shall be exercisable according to the terms hereof at such times and
under such conditions as determined by the Administrator and set forth in the
Option Agreement.  Unless the Administrator
provides otherwise, vesting of Options granted hereunder shall be suspended
during any unpaid leave of absence.  An
Option may not be exercised for a fraction of a Share.

An Option
shall be deemed exercised when the Company receives: (i) written or electronic
notice of exercise (in accordance with the Option Agreement) from the person
entitled to exercise the Option, and (ii) full payment for the Shares with
respect to which the Option is exercised. 
Full payment may consist of any consideration and method of payment
authorized by the Administrator and permitted by the Option Agreement and the
Plan.  Shares issued upon exercise of an
Option shall be issued in the name of the Optionee or, if requested by the Optionee,
in the name of the Optionee and his or her spouse.  Until the Shares are issued (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Shares,
notwithstanding the exercise of the Option. 
The Company shall issue (or cause to be issued) such Shares promptly
after the Option is exercised.  No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the Shares are issued, except as provided in Section 13 of
the Plan.

Exercise
of an Option in any manner shall result in a decrease in the number of Shares
thereafter available, both for purposes of the Plan and for sale under the
Option, by the number of Shares as to which the Option is exercised.

(b)           Termination of Relationship
as a Service Provider.  If an Optionee
ceases to be a Service Provider, such Optionee may exercise his or her Option
within such period of time as is specified in the Option Agreement to the
extent that the Option is vested on the date of termination (but in no event
later than the expiration of the term of the Option as set forth in the Option
Agreement).  In the absence of a
specified time in the Option Agreement, the Option shall remain exercisable for
three (3) months following the Optionee’s termination.  Unless
the Administrator provides otherwise, if on the
date of termination, the Optionee
is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan.  If, after termination, the Optionee does not
exercise his or her Option within the time specified by the Administrator, the
Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

(c)           Disability of Optionee.  If an Optionee ceases to be a Service
Provider as a result of the Optionee’s Disability, the Optionee may exercise
his or her Option within such period of time as is specified in the Option
Agreement to the extent the Option is vested on the date of termination (but in
no event later than the expiration of the term of such Option as set forth in
the Option Agreement).  In the absence of
a specified time in the Option Agreement, the Option shall remain exercisable
for twelve (12) months following the Optionee’s termination.  Unless
the Administrator provides otherwise, if on the
date of termination, the Optionee
is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the 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 revert to the Plan.

 

(d)           Death of Optionee.  If an Optionee dies while a Service Provider,
the Option may be exercised within such period of time as is specified in the
Option Agreement (but in no event later than the expiration of the term of such
Option as set forth in the Option Agreement), by the Optionee’s designated
beneficiary, provided such beneficiary has been designated prior to Optionee’s
death in a form acceptable to the Administrator.  If no such beneficiary has been designated by
the Optionee, then such Option may be exercised by the personal representative
of the Optionee’s estate or by the person(s) to whom the Option is transferred
pursuant to the Optionee’s will or in accordance with the laws of descent and
distribution.  In the absence of a
specified time in the Option Agreement, the Option shall remain exercisable for
twelve (12) months following the Optionee’s death.  If, at the time of death, the Optionee is not
vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall immediately revert to the Plan.  If the Option is not so exercised within the
time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

(e)           Leaves of Absence.

(i)    Unless the Administrator
provides otherwise, vesting of Options granted hereunder shall be suspended
during any unpaid leave of absence.

(ii)   A Service Provider shall
not cease to be an Employee in the case of (A) any leave of absence approved by
the Company or (B) transfers between locations of the Company or between the
Company, its Parent, any Subsidiary, or any successor.

(iii)  For purposes of Incentive
Stock Options, no such leave may exceed ninety (90) days, unless reemployment
upon expiration of such leave is guaranteed by statute or contract.  If reemployment upon expiration of a leave of
absence approved by the Company is not so guaranteed, then three (3) months
following the ninety-first (91st) day of such leave, any Incentive Stock Option held by the
Optionee shall cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Nonstatutory Stock Option.

11.           Stock Purchase Rights.

(a)           Rights to Purchase.  Stock Purchase Rights may be issued either
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside of the Plan. 
After the Administrator determines that it will offer Stock Purchase
Rights under the Plan, it shall advise the offeree in writing or electronically
of the terms, conditions and restrictions related to the offer, including the
number of Shares that such person shall be entitled to purchase, the price to
be paid, and the time within which such person must accept such offer.  The offer shall be accepted by execution of a
Restricted Stock Purchase Agreement in the form determined by the
Administrator.

(b)           Repurchase Option.  Unless the Administrator determines
otherwise, the Restricted Stock Purchase Agreement shall grant the Company
subject to compliance by the Company with all Applicable Laws, a repurchase
option exercisable within ninety (90) days of the voluntary or involuntary
termination of the purchaser’s service with the Company for any reason
(including death or Disability).  Unless the Administrator determines
otherwise, the purchase price for Shares repurchased
pursuant to the Restricted Stock Purchase Agreement shall be the lower of the
original price paid by the purchaser and the fair market value of the Shares on
the date the Shares are repurchased and may be paid by cancellation of any
indebtedness of the purchaser to the Company. 
The repurchase option shall lapse at such date as the Administrator may
determine.

 

(c)           Other Provisions.  The Restricted Stock Purchase Agreement shall
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

(d)           Rights as a Shareholder.  Once the Stock Purchase Right is exercised,
the purchaser shall have rights equivalent to those of a shareholder and shall
be a shareholder when his or her purchase is entered in the register of
allotments of the Company.  No adjustment
shall be made for a dividend or other right for which the record date is prior
to the date the Stock Purchase Right is exercised, except as provided in
Section 13 of the Plan.

12.           Transferability of Options
or Stock Purchase Rights.  Unless determined
otherwise by the Administrator, Options or Stock Purchase Rights may not be
sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or the laws of descent and distribution, and may be
exercised during the lifetime of the Optionee, only by the Optionee.

13.           Adjustments; Dissolution or
Liquidation; Merger or Change in Control.

(a)           Adjustments.  In the event that any dividend or other
distribution (whether in the form of cash, Shares, other securities, or other
property), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase, or exchange
of Shares or other securities of the Company, or other change in the corporate
structure of the Company affecting the Shares occurs, the Administrator, in
order to prevent diminution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, may (in its sole
discretion) adjust the number and class of Shares that may be delivered under
the Plan and/or the number, class, and price of Shares covered by each
outstanding Option or Stock Purchase Right.

(b)           Dissolution or Liquidation.  In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Optionee as
soon as practicable prior to the effective date of such proposed
transaction.  To the extent it has not
been previously exercised, an Option or Stock Purchase Right will terminate
immediately prior to the consummation of such proposed action.

(c)           Merger or Change in Control.  In
the event of a merger of the Company with or into another corporation, or a
Change in Control, each outstanding Option or Stock Purchase Right shall be
treated as the Administrator determines, including, without limitation, that
each Option or Stock Purchase Right, be assumed or an equivalent award
substituted by the acquiring corporation or a Parent or Subsidiary of the acquiring
corporation.  The Administrator shall not
be required to treat all Options or Stock Purchase Rights similarly in the
transaction.  If an Option or Stock
Purchase Right is not assumed or substituted in the event of a merger or Change
in Control or the Board has determined that an
Option or Stock Purcahse Right will not be assumed or substituted in the event
of a Change of Control, the Administrator shall notify the Optionee in
writing or electronically that the Option or Stock Purchase Right shall be
exercisable for a period of time determined by the Administrator in its sole
discretion, and the Option or Stock Purchase Right shall terminate upon the
expiration of such period for no consideration, unless otherwise determined by
the Administrator.

For
the purposes of this subsection (c), the Option or Stock Purchase Right shall be
considered assumed if, following the merger or Change in Control, the option or
right confers the right to purchase or receive, for each Share of Optioned
Stock subject to the Option or Stock Purchase Right immediately prior to the
merger or Change in Control, the consideration (whether stock, cash, or other
securities or property) received in the merger or Change in Control by holders
of Common Stock for each Share held on the effective date of the transaction
(and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding Shares);
provided, however, that if such consideration received in the merger or Change
in Control is not solely common stock of the acquiring corporation or its
Parent, the 

 

Administrator
may, with the consent of the acquiring corporation, provide for the
consideration to be received upon the exercise of the Option or Stock Purchase Right,
for each Share of Optioned Stock subject to the Option or Stock Purchase Right,
to be solely common stock of the acquiring corporation or its Parent equal in
fair market value to the per share consideration received by holders of common
stock in the merger or Change in Control.

14.           Time of Granting Options
and Stock Purchase Rights.  The date of grant
of an Option or Stock Purchase Right shall, for all purposes, be the date on
which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such later date as is determined by the Administrator.  Notice of the determination shall be given to
each Service Provider to whom an Option or Stock Purchase Right is so granted
within a reasonable time after the date of such grant.

15.           Amendment and Termination
of the Plan.

(a)           Amendment and Termination.  The Board may at any time amend, alter,
suspend or terminate the Plan.

(b)           Shareholder Approval.  The Board shall obtain shareholder approval
of any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws.

(c)           Effect of Amendment or
Termination.  No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the
Company.  Termination of the Plan shall
not affect the Administrator’s ability to exercise the powers granted to it
hereunder with respect to Options granted under the Plan prior to the date of
such termination.

16.           Conditions Upon Issuance of
Shares.

(a)           Legal Compliance.  Shares shall not be issued pursuant to the
exercise of an Option or Stock
Purchase Right unless the exercise of such
Option or Stock Purchase Right and the
issuance and delivery of such Shares shall comply with Applicable Laws and
shall be further subject to the approval of counsel for the Company with
respect to such compliance.

(b)           Investment Representations.  As a condition to the exercise of an Option or Stock Purchase Right, the Administrator may require the person exercising
such Option or Stock Purchase Right to
represent and warrant at the time of any such exercise that the Shares are
being purchased only for investment and without any present intention to sell
or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

17.           Inability to Obtain
Authority.  The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company’s counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

18.           Reservation of Shares.  The Company, during the term of this Plan,
shall at all times reserve and keep available such number of authorized but
unissued Shares as shall be sufficient to satisfy the requirements of the Plan.

19.           Shareholder Approval.  The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan
is adopted.  Such shareholder approval
shall be obtained in the degree and manner required under Applicable Laws.Exhibit
10.1

Quattro
Global Capital LLC

546 5th Avenue, 19th Floor

New York, New York
10036

August 31, 2006

CellStar Corporation

601 S. Royal Lane

Coppell, Texas 75019

RE:                           12%
Senior Subordinated Notes (the “Notes”) due January 15, 2007, issued pursuant
to the Indenture, dated as of February 20, 2002, between CellStar Corporation,
as Issuer, and The Bank of New York, as Trustee.

Gentlemen:

We have been
retained to act as investment manager to Alta Partners Discount Convertible
Arbitrage Holdings LTD (“Alta Partners”), the holder of $10,459,000 principal
amount of the Notes.  In such capacity,
we have entered into discussions with CellStar Corporation (“CellStar”)
regarding the refinance or purchase of the Notes.

Pursuant to our
recent discussions, this letter is to set forth our offer and agreement on
behalf of Alta Partners to sell to CellStar all of the Notes held by Alta
Partners for cash in an amount equal to 99% of the principal amount of such
Notes, plus accrued interest through the date hereof; provided that the actual
trade and settlement of for the Notes occurs on or before close of business
September 7, 2006.

Should this
accurately reflect out agreement, please acknowledge where indicated below and
return a fully executed copy to me for my files.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  Quattro Global
  Capital. LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sherri
  Andrews

  	
   

  
	
   

  	
  Name: Sherri
  Andrews

  
	
   

  	
  Title:   Portfolio Manager

  

 

	
  AGREED AND ACKNOWLEDGED

  
	
  AS OF AUGUST 31,
  2006.

  
	
   

  
	
  CELLSTAR
  CORPORATION

  
	
   

  
	
  By:

  	
  /s/ 

  	
  Robert Kaiser

  	
   

  
	
   

  	
   

  	
  Robert Kaiser

  
	
   

  	
  Chief Executive
  Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]