Document:

Form of Restricted Share Award

 Exhibit 10.11 
 Form of 
 Novatel Wireless, Inc. 
 2000 Stock Incentive Plan 
  

 Restricted Share Award Agreement 
  

  

					
	 Award No.
	  		  	  
	 Effective Date
	  		  	May 17, 2006        

 You are hereby awarded restricted shares of the common stock, $0.001 par value per share
(“Restricted Shares”), of Novatel Wireless, Inc., a Delaware corporation (together with its parents, subsidiaries and affiliates, the “Company”), subject to the terms and conditions set forth in this Restricted
Share Award Agreement (“Award Agreement” or “Award”), and in the Novatel Wireless, Inc. 2000 Stock Incentive Plan (the “Plan”). By executing this Award Agreement, you agree to be bound by all the
Plan’s terms and conditions as if they had been set out verbatim below. Capitalized terms used but not otherwise defined herein are defined in the Plan. 
 1. Specific Terms. Your Restricted Shares have the following terms: 
  

			
	 Name of Recipient
	  	 
	 Number of Shares

 Awarded
	  	
	 Award Date
	  	May 17, 2006
	Vesting (each, a
“Vesting Date”)	  	 a. In the event that the closing price of the Company’s common stock as reported on The Nasdaq Stock Market shall equal or exceed a per share
price immediately below for each of at least 10 consecutive trading days, then 1/3 of the Restricted Shares shall automatically vest on such 10th day:
  
 $13.26
 $15.92
 $18.57
  
 b. Notwithstanding the foregoing, (i) in no event shall more than 50% of the Restricted Shares vest
prior to May 1, 2007, (ii) in any event, any Restricted Shares that remain unvested on May 17, 2011 shall automatically vest in full as of such date, (iii) all the Restricted Shares are subject to accelerated vesting as contemplated by Section 2
hereof, and (iv) subject to Section 2 hereof, in the event that you are no longer in Service to the Company in any capacity (e.g., as an employee, consultant or member of the Board of Directors), any unvested Restricted Shares (including dividends
paid thereon) shall be automatically forfeited and returned to the Company for cancellation upon the effective date of the end of your Service. Notwithstanding anything to the contrary in the Plan or in any agreement between the Company and you, so
long as you are in Service to the Company in some or any of these capacities (as an employee, consultant or member of the Board of Directors), then the Restricted Shares shall continue to be eligible to vest as set forth in paragraphs a. above and
c. below and, in any event any Restricted Shares that remain unvested on May 17, 2011 shall automatically vest in full as of such date.
  
 c. In the event that greater than 50% of the Restricted Shares would vest prior to May 1, 2007 but for the provisions of Section 1(b)(i) hereof, then such Restricted
Shares that otherwise would have vested shall vest on May 1, 2007.

 Restricted Share Award Agreement 
 Novatel Wireless, Inc. 
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 2
 
  

 2. Change in Corporate Control. To the extent you have not previously vested in your rights with
respect to this Award, your Award shall become automatically and fully vested in the event of a Change in Control, as defined in Exhibit A, anything to the contrary notwithstanding. 
 3. Representation. You hereby represent and warrant to the Company that you have no present intention of distributing or selling the Restricted Shares except as permitted under applicable securities laws
and as provided herein. You further acknowledge and agree that your ability to sell the Restricted Shares may be limited by applicable securities laws and the Company’s Insider Trading Policy then in effect. 
 4. Issuance of Restricted Shares. On or about the effective date of this Award Agreement, the Company shall cause its transfer agent to reflect the
issuance in your name of all the Restricted Shares subject to this Award. Such Restricted Shares shall be held in the custody of the Company or its designee for your account. The Restricted Shares shall be subject to the restrictions set forth
herein. Until applicable vesting restrictions lapse, any certificates that you receive for Restricted Shares will include a legend stating that they are subject to the restrictions set forth in the Plan and this Award Agreement. 
 5. Stockholder Rights; Unvested Restricted Shares. The Company will hold the Restricted Shares in escrow until applicable vesting occurs, if ever. You must
deliver to the Company, coincident with the execution and delivery of this Award Agreement, three (3) stock powers, endorsed in blank, with respect to such shares for the Company’s use pursuant to this Award Agreement. If an event causes
you to forfeit any Restricted Shares, the stock powers will be used to return the certificates for the forfeited Restricted Shares to the transfer agent for cancellation. Subject to this Award Agreement, as the owner of record of the Restricted
Shares, your name will be reflected as such on the Company’s books and records, and you will be entitled to all rights of a Company stockholder, including voting and dividend rights with respect to the Restricted Shares provided
however, that dividends paid with respect to those Restricted Shares, whether in cash or stock, that have not vested at the time of the dividend payment shall themselves be subject to the same restrictions, vesting and forfeiture conditions
that apply to the corresponding Restricted Shares. 
 6. Transfer Restrictions. No portion of the Restricted Shares may be sold, transferred,
assigned, pledged or otherwise encumbered or disposed of by you until the applicable Vesting Date in accordance with Section 1 hereof and then only in accordance with applicable securities laws and the Company’s Insider Trading Policy then
in effect should such policy then apply to you. The Company shall not be required (i) to transfer on its books any Restricted Shares that have been sold or otherwise transferred in violation of any provision of this Award Agreement, or
(ii) to treat as owner of such shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom you have attempted to transfer such shares. 
 7. Mandatory Sale of Vested Restricted Shares for Tax Purposes. Solely in order to satisfy any tax withholding obligations of the Company triggered by the vesting of your Restricted Shares 

 Restricted Share Award Agreement 
 Novatel Wireless, Inc. 
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pursuant to Section 1 hereof, you hereby authorize the Company (a) to sell a number of Restricted Shares equal to the Share Sale Amount (as defined
below) on the first trading day immediately following each Vesting Date (each such sale date, a “Sale Date”) for the account of the Company (a “Tax Trade”), and (b) to withdraw a number of Restricted Shares
equal to the Share Sale Amount from escrow following each Vesting Date as needed to settle the aforementioned sales; provided, however, that the foregoing provision shall be suspended if: 
 (i) you have in effect a written securities trading plan reasonably acceptable to the Company for satisfying its withholding obligation with respect to
the Restricted Shares, and such plan (x) complies with the requirements of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (y) has been adopted in accordance with the Company’s
Insider Trading Policy as then in effect, and (z) was adopted prior to the calendar quarter in which trading commences pursuant to such plan (herein, a “10b5-1 Plan”) or 
 (ii) you complete the statement set forth in Exhibit B in which you agree to deliver cash to the Company in amount sufficient to pay the tax withholding
obligations triggered by the vesting of your Restricted Shares (the “Cash Delivery Statement”) and deliver such statement to the Company’s counsel no later than 2 business days prior to a potential Vest Date. 
 For so long as your 10b5-1 Plan or Cash Delivery Statement, if any, is in effect, you hereby agree to remit to the Company in immediately available funds a dollar amount
equal to the statutorily required minimum federal and state withholding taxes within one (1) business day following each Vesting Date. In the event that the Company does not timely receive the foregoing sum of money, if required, you hereby
authorize the Company to reactivate the mandatory sales in accordance with above Clauses (a) and (b) of this Section 7. 
 The “Share
Sale Amount” shall mean a number of Restricted Shares (rounded down to the nearest whole share) equal to the quotient of (1) the tax withholding obligation of the Company triggered by the vesting of your Restricted Shares on the
relevant Vesting Date, divided by (2) the closing price of one share of Company common stock as quoted on The Nasdaq Stock Market on the applicable Vesting Date. 
 In connection with each Tax Trade, you hereby agree to timely execute and deliver such documents and instruments as the Company may determine are reasonably necessary or desirable. You further acknowledge and agree
that (A) you have no authority, influence or control over a Tax Trade, and will not attempt to exercise any authority, influence or control over such sales, and (B) each Tax Trade may be deemed to be sales of securities by you for purposes
of Section 16 of the Exchange Act. Promptly following any Tax Sale, the Company shall inform you or your designee of the number of shares that the Company caused to be sold for such purpose. 
 8. Leaves of Absence. For purposes of the Restricted Shares, your status as an employee does not terminate when you go on a bone fide leave of
absence that was approved by the Company in writing, if the terms of the leave provide for continued Service crediting or when continued Service 

 Restricted Share Award Agreement 
 Novatel Wireless, Inc. 
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crediting is required by applicable law. Your Service terminates in any event when the approved leave ends unless you immediately return to active work at
the Company. 
 9. Notices. Any notice or communication required or permitted by any provision of this Award Agreement to be given to you shall
be in writing and shall be delivered electronically, personally, or sent by certified mail, return receipt requested, addressed to you at the last address that the Company had for you on its records. Each party may, from time to time, by notice to
the other party hereto, specify a new address for delivery of notices relating to this Award Agreement. Any such notice shall be deemed to be given as of the date such notice is personally delivered or properly mailed. 
 10. Binding Effect. Except as otherwise provided in this Award Agreement or in the Plan, every covenant, term, and provision of this Award Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, and permitted transferees and assigns. 
 11. Modifications. This Award Agreement may not be modified or amended without your prior written consent. 
 12. Severability. Every provision of this Award Agreement is intended to be severable. If any term hereof is illegal or invalid for any reason, such illegality or invalidity shall not affect the validity or legality of the
remaining terms of this Award Agreement. 
 13. Counterparts. This Award Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. 
 14. Plan. By signing this Award Agreement, you acknowledge that you have received a copy of the Plan. 
 15. Not a Contract of
Employment. Nothing in this Award Agreement or the Plan confers on you any right to continue an employment or other Service relationship with the Company, nor shall it affect in any way your right or the Company’s right to terminate
your employment or other Service relationship at any time, with or without cause. 
 16. Governing Law. The laws of The State of California
shall govern the validity of this Award Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties hereto. 

 Restricted Share Award Agreement 
 Novatel Wireless, Inc. 
  Page
 5
 
  

 BY YOUR SIGNATURE BELOW, along with the signature of the Company’s authorized representative,
you and the Company agree that the Restricted Shares are awarded under and governed by the terms and conditions of this Award Agreement and the Plan. 
  

			
	NOVATEL WIRELESS, INC.
		
	By:	 	  
		 	 Name: Peter V. Leparulo

		 	Title: Chief Executive Officer
	
	RECIPIENT
		
	By:	 	  
		 	Name of Recipient:

 EXHIBIT A 
 A “Change of Control” occurs in the event of a Payment Termination (as such term is defined in that certain Change of Control Agreement by and between Recipient and the Company) to the extent such Agreement
remains in effect. 

 EXHIBIT B 
 Agreement to Deliver Cash 
 I,
                                        ,
acknowledge and agree that I am the Recipient of the Restricted Shares as defined in the Award Agreement by and between me and the Company of May 17, 2006 and I execute and deliver this Agreement to Deliver Cash (“Cash Agreement”)
subject to the terms and conditions of the Award Agreement. All capitalized terms used herein but not otherwise defined are defined in the Award Agreement. 
 I acknowledge and agree that: 
 1. I am
electing to execute and deliver this Cash Agreement to meet my personal obligations to provide funds to the Company to pay certain mandatory tax withholding obligations related to the vesting of my Restricted Shares. 
 2. In the event that a Vest Date occurs within 10 business days hereof, I shall to deliver to the Company, in immediately available funds (wire transfer, cashier’s
check or equivalent) within one business day of the Vest Date, funds sufficient to satisfy any tax withholding obligations of the Company related to the vesting of my Restricted Shares on the Vest Date (“Mandatory Funds”). 
 3. Notwithstanding my execution and delivery of this Cash Agreement, in the event I do not deliver the Mandatory Funds to the Company within one business day of the Vest
Date, the Company shall execute a Tax Trade in accordance with the Award Agreement to satisfy the withholding obligations related to the vesting of my Restricted Shares. 
 Dated: _________________    by: ________________________________ 
 Acknowledged and received by: ____________________________________ 
 Dated: __________________Form of Management Bonus Plan

 Exhibit 10.12 
 NOVATEL WIRELESS, INC. 
 SENIOR MANAGEMENT BONUS TARGETS 
 Fiscal Year 2006 
  

	I.	INTRODUCTION 

  

	 	A.	The Objective of the Bonus Targets is to provide eligible senior management of Novatel Wireless, Inc. and its subsidiaries (the “Company”) with the target metrics
in connection with their respective bonus opportunity related to their contributions to the success and strategic growth of the Company. Participation in the Plan and the payment of any sums hereunder shall be at the sole and absolute discretion of
the Company. 

  

	 	B.	Participants: This Plan, as determined by the Company on a fully discretionary basis, applies solely to regular employees of the Company who are senior executive officers
(“Plan Participants”), whom the Company determines meet the eligibility requirements set forth in Section III. For purposes of this Plan and unless otherwise prohibited by applicable law, the term “regular employee” means an
individual who is deemed by the Company to be both an employee of the Company and employed for an unspecified or indefinite period of time. 

  

	 	C.	Effective Date: Fiscal Year 2006 (January 1, 2006 – December 31, 2006). 

  

	 	D.	Changes in Targets: The Company reserves the right to modify the targets in whole or in part, at any time. Any such modification or termination must be approved in writing by
either (i) the CEO, except with respect to his own targets or bonus payments, or (ii) resolution of the Compensation Committee. 

  

	 	E.	Authority: The Company reserves the right to interpret this document on a fully discretionary basis. Nothing in this Plan is intended to create an entitlement to any employee
for any incentive payment hereunder except as the Company may determine in its discretion. 

  

	II.	BONUS TARGET FACTOR 

  

	 	A.	Bonus Target Factor will be determined by reference to Corporate Targets and Individual Targets. Corporate Targets will be determined by assigning a weight of between 0 and
0.50 based on achievement of Corporate Targets. Individual Targets will be determined by assigning a weight of between 0 and 0.50 based on achievement of Individual Targets. The Bonus Target Factor will be the sum of the Corporate Target Factor and
the Individual Target Factor. 

  

	 	B.	Corporate Targets are based on an evaluation of a Plan Participant’s performance and contribution for the Fiscal Year of the following criteria.

 The Company’s financial performance, including achievement of the Company’s 2006 Operating Plan, achievement of
sequential growth, operating leverage, positive operating income and EPS 
 Achievement of and contribution to the Company’s success,
strategic objectives and direction 
 Achievement of the Company’s 2006 execution plan and 2006 strategic plan 
 Ability to work as a team player and collaborate with others across the company, suppliers, partners and/or customers. 
 Interaction with Other Teams (e.g., to achieve other team goals) 

	 	C.	INDIVIDUAL TARGETS are based on an evaluation of a Plan Participant’s performance and contribution for the Fiscal Year of the respective criteria for his respective
group as set forth in Annex A hereto. 

  

	III.	ELIGIBILITY 

  

	 	A.	Eligibility: A Plan Participant must satisfy each of the following eligibility requirements to be considered for the Incentive Payment hereunder. 

  

	 	1.	The Plan Participant must be deemed by the Company to be employed by the Company as a regular employee in an incentive-eligible position on or before the first working day of the
last fiscal quarter of the Fiscal Year, and must be employed as a regular employee in an incentive-eligible position on the last working day of the Fiscal Year; 

  

	 	2.	The Plan Participant must not be providing services to the Company as a temporary employee, intern or as an independent contractor, consultant, or agent under a written or oral
contract, and must not be classified by the Company as a temporary employee, independent contractor, consultant, or agent (whether or not such classification is upheld upon review by a governmental, judicial or other agency);

  

	 	3.	Unless otherwise required by law, in no event will an employee be eligible to receive an incentive hereunder unless he/she is employed on the last working day of the Fiscal Year in
the capacity, or comparable capacity, such Plan Participant is employed on the date hereof. 

  

	 	4.	Plan Participants meeting all eligibility requirements hereunder who have less than one year of service will be eligible to receive a discretionary incentive that is pro-rated from
the effective date of participation in the plan up to and including the Expiration Date. Unless otherwise required by law, in no event will an employee be eligible to receive an incentive hereunder unless he/she is employed on the last working day
of the Fiscal Year in the capacity, or comparable capacity, such Plan Participant is employed on the date hereof. 

  

	IV.	PARTICIPANTS AND INCENTIVE TARGET PERCENTAGE 

  

	 	A.	Participants and Incentive Target Percentage. The sole Plan Participants in the Plan are those set forth below. The Incentive Target Percentage for each such Participant is a
percentage of each Participant’s base salary as follows and may be changed at the discretion of the Company at any time during the Fiscal Year. 

  

			
	 Participant
	  	 Incentive Target Percentage

	 CEO
	  	75%
	 COO
	  	50%
	 CFO
	  	50%
	 VP Business Affairs
	  	50%
	 VP Research and Development
	  	50%
	 VP Sales and Marketing
	  	70%
	 VP Operations
	  	70%

	 	B.	Elements of Calculation:  

 Incentives under this Plan are calculated on a fully discretionary basis, in accordance with the following formula: 
  

																	
	Base Salary	  	X	  	 Incentive
 Target
 Percentage
	  	X	  	 Bonus
 Target
 Factor
	  	X	  	 Pro-
 ration
 Factor
	  	=	  	Total Annual Incentive

  

	 	1.	Base Salary shall mean the annual base salary for each Plan Participant set forth above in effect at the end of Q4 2006. 

  

	 	2.	Pro-ration Factor accounts for the number of calendar days during the Fiscal Year that such Plan Participant was in an incentive-eligible position. For example, the
Pro-ration Factor for a Plan Participant who has been in the Plan the entire year will be 1.00. For a Plan Participant who has been in the Plan for 6 months, this factor will be 0.50. 

  

	 	C.	Incentive Formula and Calculation Example: Assuming a base salary of $200,000, Incentive Target Percentage of 50%, Corporate Target Factor of 0.50 and Individual Target
Factor of 0.40, and a Pro-ration Factor of 1.00, the Total Annual Incentive for such a Plan Participant meeting all eligibility requirements, would be calculated as follows: 

 Sample Calculation 
  

																	
	Base Salary	  		  	 Incentive
 Target
 Percentage
	  		  	 Bonus
 Target
 Factor
	  		  	 Pro-
 ration
 Factor
	  		  	Total Annual Incentive
	$200,000	  	X
	  	0.50	  	X
	  	0.90	  	=
	  	1.0	  	=
	  	$90,000*

  

	*	less any appropriate withholdings. 

 In this example, the total incentive
equals 45% of base salary. 
  

	 	D.	At Will Employment. The Company is an at-will employer, which means that an employee’s employment can be terminated by an employee or the Company at any time with or without
cause. The Company reserves the right to modify an employee’s duties, title or other terms and conditions of employment with or without cause. This Plan cannot and should not be interpreted to alter the at-will nature of the employment
relationship between the Company and any Plan Participant. The at-will nature of the employment relationship cannot be modified except in a written document signed by the Company’s CEO.

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