Document:

EXHIBIT
      4.4

    

    CERTIFICATE
      OF DESIGNATION, PREFERENCES AND RIGHTS

     

    OF
      THE

     

    SERIES
      A SENIOR CONVERTIBLE PREFERRED STOCK

     

    OF

     

    NEXTWAVE
      WIRELESS INC.

     

    (Pursuant
      to Section 151 of the

    General
      Corporation Law of the State of Delaware)

     

    We,
      Allen
      Salmasi, President, and Frank A. Cassou, Secretary, of NextWave Wireless Inc.
      (hereinafter called the “Corporation”),
      a
      corporation organized and existing under and by virtue of the General
      Corporation Law of the State of Delaware (the “GCL”),
      in
      accordance with Section 151 of the GCL, do hereby certify as
      follows:

     

    FIRST:
      The Amended and Restated Certificate of Incorporation of the Corporation (
      the
“Certificate
      of Incorporation”)
      authorizes the issuance of up to twenty-five million (25,000,000) shares of
      preferred stock, $0.001 par value (the “Preferred
      Stock”),
      in
      one or more series, with such voting powers, designations, preferences and
      relative, participating, optional or other special rights, and qualifications,
      limitations or restrictions thereof, as may be stated and expressed in a
      resolution or resolutions providing for the creation and issuance of any such
      series adopted by the Board of Directors of the Corporation prior to the
      issuance of any shares of such series, pursuant to authority expressly vested
      in
      the Board of Directors by the Certificate of Incorporation.

     

    SECOND:
      A
      duly constituted Committee of the Board of Directors of the Corporation, vested
      with the full power of the Board of Directors in respect of the matters
      described herein, at a meeting held on March 27, 2007, duly adopted the
      following resolution authorizing the creation of a new series of such Preferred
      Stock, to be known as “Series
      A Senior
      Convertible
      Preferred Stock,”
and
      setting forth the number of shares thereof, and the voting powers, designation,
      preferences and relative, participating, optional or other special rights,
      and
      the qualifications, limitations and restrictions thereof, as
      follows:

     

    BE
      IT
      RESOLVED, that the terms of the Series A Senior
      Convertible
      Preferred Stock shall be as follows:

     

    1.  Series
      A
      Senior
      Preferred Stock

     

    1.1  Designation.
      A
      series of Preferred Stock is hereby designated as “Series
      A Senior
      Convertible
      Preferred Stock”
(the
      “Series
      A Preferred Stock”)
      and
      shall consist
      of 355,000
      shares.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.2  Rank

     

    The
      Series A Preferred Stock shall, with respect to dividend rights, and rights
      on
      liquidation, dissolution and winding up of the affairs of the Corporation,
      rank
senior
      to
      all Junior Stock.

     

    1.3  The
      following terms, as used herein, shall have the following meanings:

     

    “Asset
      Sales”
means
      the sale, lease, sale and leaseback, assignment, conveyance, transfer or other
      disposition,
      including, without limitation, as distribution in respect of any Capital Stock
      (except the Series A Preferred Stock) or a capital contribution,
      by the
      Corporation or any of its Subsidiaries to any Person of any right or interest
      in
      or to property of any kind whatsoever, whether real, personal or mixed and
      whether tangible or intangible, including, without limitation, the Capital
      Stock
      of any of the Corporation’s Subsidiaries, it being understood for the avoidance
      of doubt that any disposition of the Capital Stock of the Corporation shall
      not
      be deemed an “Asset
      Sale.”
      In
      addition, the term “Asset
      Sale”
shall
      exclude:

     

    (i)  sales
      or
      other dispositions of obsolete, damaged, surplus, worn-out, condemned,
      unsuitable or not required property and equipment;

     

    (ii)  licensing
      of intellectual property in the ordinary course of business;

     

    (iii)  sale
      or
      transfer of cash or Cash Equivalents in the ordinary course of
      business;

     

    (iv)  any
      surrender or waiver of contract rights or the settlement release or surrender
      of
      contract, tort or other litigation claims in the ordinary course of business;
      and

     

    (v)  any
      sale
      or disposition of property or assets by a Subsidiary to the Corporation or
      a
Wholly-owned
      Subsidiary
      or by a
      Subsidiary that is not a
      Wholly-owned
      Subsidiary to another Subsidiary that is not a
      Wholly-owned
      Subsidiary.

     

    “Business
      Day”
means
      any day that is not a Legal Holiday.

     

    “Board
      of Directors”
means,
      as to any Person, the board of directors of such Person or any duly authorized
      committee thereof or similar governing body. 

     

    “Capital
      Lease”
means,
      as applied to any Person, any lease of any property (whether real, personal
      or
      mixed) by that Person as lessee that, in conformity with U.S. GAAP, is required
      to be accounted for as a capital lease on the balance sheet of that
      Person.

     

    “Capital
      Stock”
means
      any and all shares, interests, participations or other equivalents (however
      designated) of capital stock of a corporation, any and all equivalent ownership
      interests in a Person (other than a corporation), including, without limitation,
      partnership interests and membership interests, and any and all warrants,
      rights, or options to purchase or other arrangements or rights to acquire any
      of
      the foregoing.

     

    
      
        
        

      

      
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    “Common
      Stock”
shall
      mean the common stock, par value $0.001 per share, of the
      Corporation.

     

    “Conversion
      Price”
means
      $11.05, subject to adjustment as provided for in Section 5.

     

    “Dividend
      Period”
shall
      mean the period from, and including, the Original Issue Date to, but not
      including, the first Dividend Payment Date and thereafter, each quarterly period
      from, and including, the Dividend Payment Date to, but not including, the next
      Dividend Payment Date.

     

    “Dividend
      Rate”
      shall
      mean 7.5% per annum, subject to adjustment as follows: (i) upon the occurrence
      and during the continuance of a Trigger One Event, such rate shall be 10% per
      annum; (ii) upon the occurrence and during the continuance of a Trigger Two
      Event (whether after any occurrence of a Trigger One Event, or not), such rate
      shall be 15% per annum; provided,
      however,
      that if
      from and after the date hereof three Trigger Two Events occur involving the
      failure by the Corporation to comply with subsection 4.3 hereof in connection
      with the incurrence of Indebtedness, the creation of Capital Stock or an Asset
      Sale in each case involving an amount in excess of $10 million dollars, such
      rate shall from and after the date of such third Trigger Two Event be 15% per
      annum; and (iii) upon the occurrence of a Trigger Three Event (whether after
      any
      occurrence of a Trigger One Event or Trigger Two Event, or not), such rate
      shall
      from and after such date be 18% per annum. For clarity, following the cure
      of
      the default by the Corporation giving rise to a Trigger One Event or a Trigger
      Two Event (except as provided in clause (ii) above), the Dividend Rate shall
      be
      7.5% per annum (unless another Trigger One Event or Trigger Two Event has
      occurred and not been cured).

     

    “Fair
      Market Value Price”
means
      an amount equal to the per share closing price of the Corporation’s Common Stock
      (or if no closing sale price is reported, the average of the closing bid and
      closing ask prices) (i) on any national securities exchange on which the
      Corporation’s Common Stock is listed (as reported by Bloomberg, or, if not
      reported thereby, any other authoritative source), or (ii) if the Corporation’s
      Common Stock is not listed on a national securities exchange, quoted in the
      Over-The-Counter Market Summary, in either case on the trading day immediately
      prior to the relevant determination date. In the absence of such a listing
      or
      quotation, the Fair Market Value Price shall be determined in good faith by
      the
      Board of Directors of the Corporation. 

     

    “FCC
      License”
means
      any paging, mobile telephone, specialized mobile radio, microwave, personal
      communications services or other license, permit, consent, certificate of
      compliance, franchise, approval, waiver or authorization granted or issued
      by
      the FCC, including authorizing or permitting the acquisition, construction
      or
      operation of any Wireless Communications System.

     

    
      
        
        

      

      
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    “FCC
      Rules”
means
      all rules, regulations, written policies, orders and decisions of the FCC
      adopted under the Communications Act of 1934, as amended, in each case as from
      time to time in effect.

     

    “Indebtedness”
means,
      as applied to any Person, (i) all obligations for borrowed money, (ii) that
      portion of obligations with respect to Capital Leases that is properly
      classified as a liability on a balance sheet in conformity with United States
      Generally Accepted Accounting Principles as then in effect (“U.S.
      GAAP”),
      (iii)
      any obligation owed for all or any part
      of the
      deferred purchase price of property or services (excluding any such obligations
      incurred under ERISA, trade payables incurred in the ordinary course of
      business, volume based vendor arrangements accounted for as deferred income
      on
      the balance sheet of the Corporation and obligations under earn-out arrangements
      which are not yet earned), (iv) all obligations evidenced by notes, bonds (other
      than performance or surety bonds), debentures or other similar instruments,
      in
      each case measured as of any date of determination as the greater of the then
      outstanding principal amount or the amount of such Indebtedness due and payable
      as of the maturity date of such instrument, (v) all Indebtedness created or
      arising under any conditional sale or other title retention agreement with
      respect to any property or assets acquired by such Person (even though the
      rights and remedies of the seller or the lender under such agreement in the
      event of default are limited to repossession or sale of such property or
      assets), (vi) all obligations, contingent or otherwise, as an account party
      under any letter of credit or under acceptance, letter of credit or similar
      facilities to the extent not reflected as trade liabilities on the balance
      sheet
      of such Person in accordance with U.S. GAAP, (vii) the liquidation value,
      accrued and unpaid dividends, prepayment or redemption premiums and penalties
      (if any), unpaid fees or expenses and other monetary obligations in respect
      of
      any class of preferred stock issued by any
      Subsidiary of the
      Corporation,
      (viii) all
      contingent obligations in respect of obligations of the kind referred to in
      clauses (i) through (vi) above, including,
      without limitation, any guarantee or surety in respect thereof, and
      (ix)
      all indebtedness secured by any
      lien
      on
      property or asset owned or held by that Person regardless of whether the
      indebtedness secured thereby shall have been assumed by that Person or is
      nonrecourse to the credit of that Person.

     

    “Junior
      Stock”
shall
      mean all classes of common stock of the Corporation and each other class or
      series of capital stock established after the Original Issue Date, the terms
      of
      which expressly provide that such class or series will rank junior to the Series
      A Preferred Stock, either as to dividend rights or rights upon the liquidation,
      winding-up or dissolution of the Corporation, or both.

     

    “Legal
      Holiday”
means
      a
      Saturday, Sunday or day on which banks and trust companies in the principal
      place of business of the Corporation or in New York are not required to be
      open.

     

    “Person”
means
      any individual, corporation, partnership, firm, joint venture, association,
      joint-stock company, trust, unincorporated organization, governmental body
      or
      other agency. 

     

    
      
        
        

      

      
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    “Qualified
      Public Offering”
means
      a
registered
      public offering at a price per share greater than the Reference Price resulting
      in at least $300 million in aggregate net
      proceeds to the Corporation.

    

    “Record
      Date”
shall
      mean, with respect to any dividend, the date designated by the Board of
      Directors of the Corporation at the time such dividend is declared; provided,
      however, that such Record Date shall not be more than thirty (30) days nor
      less than ten (10) days prior to the respective Dividend Payment Date or
      such other date designated by the Board of Directors for the payment of
      dividends.

    

    “Reference
      Price”
means
      $10.05, subject to adjustment as provided in Section 5.

    

    “Shelf
      Registration Statement”
      has
      the
      meaning defined in the Registration Rights Agreement, dated as of March 27,
      2007, among the Corporation and the purchasers party thereto.

    

    “Spectrum
      Lease”
means
      any lease, license, agreement or other arrangement to which the Corporation
      or
      any of its Subsidiaries is now or may hereafter become a party pursuant to
      which
      the Corporation or any of its Subsidiaries leases, licenses or otherwise
      acquires or obtains any rights, whether exclusive or non-exclusive, with respect
      to radio frequency specified in an FCC License, in each case, as amended,
      restated, supplemented or otherwise modified from time to time.

    

    “Stated
      Value”
means,
      with respect to any share of Series A Preferred Stock, (a) $1,000 plus (b)
      any
      Capitalized Dividends on share of Series A Preferred Stock.

    

    “Subsidiary”
means
      any Person of which any other Person directly or indirectly owns voting
      securities, other voting rights or voting partnership interests which are
      sufficient to elect at least a majority of such first Person’s board of
      directors or other governing body (or, if there are no such voting interests,
      the second Person directly or indirectly owns 50% or more of the equity interest
      of such first Person).

     

    “Threshold
      Price”
      means
      200% of
      the then existing Conversion Price; provided,
      however, the
      Threshold Price shall be adjusted to equal 150% of the then existing Conversion
      Price upon the earlier of: (x) the third anniversary of the Original Issue
      Date,
      and (y) the first Trading Day after the Corporation has consummated a Qualified
      Public Offering. 

     

    “Trigger
      One Event”
shall
      mean the failure by the Corporation to (i) pay the entire amount of any dividend
      in respect of the Series A Preferred Stock on each Dividend Payment Date
      occurring after the fourth anniversary of the Original Issue Date, whether
      or
      not declared by the Board of Directors or legally eligible to be paid, and
      the
      continuation of any such nonpayment for thirty (30) calendar days after such
      Dividend Payment Date
      or (ii)
      file the Shelf Registration Statement on or prior to July 31, 2007, or (iii)
      cause the Shelf Registration Statement to become or be declared effective on
      or
      prior to November 30, 2007.

     

    
      
        
        

      

      
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    “Trigger
      Two Event”
shall
      mean the failure by the Corporation to comply with any of the Class Protective
      Provisions contained in subsection 4.3.

     

    “Trigger
      Three Event”
shall
      mean the failure by the Corporation to comply with any of the provisions
      contained in subsection 5.2 or Section 6.

     

    “Wholly-owned
      Subsidiary”
means
      any Subsidiary of which 100% of the Capital Stock is owned directly by the
      Corporation or one or more Wholly-owned Subsidiaries.

     

    2.  Dividend
      Rights

     

    2.1  Series
      A Preferred Stock. 

     

    (a)  To
      the
      fullest extent that funds are legally available therefor, the holders of Series
      A Preferred Stock shall be entitled to receive on each Dividend Payment Date,
      when, as and if declared by the Board of Directors of the Corporation, dividends
      as set forth in this subsection 2.1. Such dividends shall be payable by the
      Corporation in an amount per share (the “Per
      Share Dividend Amount”)
      equal
      to the product of (i) (A) the then applicable Dividend Rate times (B) a fraction
      the numerator of which is the number of days in such Dividend Period and the
      denominator of which is three hundred sixty (360) and (ii) the then existing
      Liquidation Preference. With respect to any Dividend Payment Date occurring
      prior to the fourth anniversary of the Original Issuance Date, the Corporation
      may elect to declare and pay the Per Share Dividend Amount in cash; provided,
      however,
      that to
      the extent dividends are not declared and paid in cash, all or such portion
      of
      the Per Share Dividend amount shall be added to the Stated Value of each share
      of Series A Preferred Stock as of such Dividend Payment Date (the “Capitalized
      Dividends”).
      The
      Corporation shall deliver a written notice to each holder (the date of receipt
      of such notice by the holder, the “Dividend
      Notice Date”)
      of
      Series A Preferred Stock no later than ten (10) Business Days prior to the
      applicable Dividend Payment Date if the Corporation elects to pay such dividend
      in cash. 

     

    (b)  From
      and
      after the fourth anniversary of the Original Issuance Date, to the fullest
      extent that funds are legally available therefor, the
      holders
      of Series A Preferred Stock shall be entitled to receive on, the Corporation
      shall be required to pay on, and the Board of Directors shall be required to
      declare for,
      each
      Dividend Payment Date, cash dividends in
      an
      amount per share equal to the then applicable Per Share Dividend Amount.
Such
      cash
      dividends are mandatory and must be declared and paid;
      provided, however,
      that if
      funds are not legally available to pay the entire dividend owed on any Dividend
      Payment Date, such dividend shall be paid to the fullest extent that funds
      are
      legally available therefor. Any
      unpaid
      cash dividends on the Series A Preferred Stock pursuant to this subsection
      2.1(b), whether or not declared, shall be cumulative and shall accrue
and
      compound on a quarterly basis at the then applicable Dividend Rate

     

    (c)  Dividends
      shall be payable quarterly in arrears on March 31, June 30,
      September 30 and December 31 of each year (each, a “Dividend
      Payment Date”),
      commencing on June 30, 2007. If any Dividend Payment Date occurs on a day
      that is not a Business Day, any accrued dividends otherwise payable on such
      Dividend Payment Date shall be paid on the next succeeding Business Day which
      shall be deemed the Dividend Payment Date for such Dividend Period. Dividends
      shall be paid to the holders of record of the Series A Preferred Stock as their
      names shall appear on the share register of the Corporation on the Record Date
      for such dividend. Dividends in respect of any Dividend Period which is less
      than or greater than a full Dividend Period in length will be computed on the
      basis of a ninety (90) day quarterly period and actual days elapsed in such
      Dividend Period. Dividends on account of arrears for any past Dividend Periods
      may be declared and paid at any time to holders of record on the Record Date
      therefor. In
      respect of any partial cash dividends, such cash dividends shall be distributed
      pro
      rata
      to all
      outstanding shares of Series A Preferred Stock.

     

    
      
        
        

      

      
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    (d)  Without
      the prior written consent of at least seventy-five percent (75%) of the
      outstanding shares of Series A Preferred Stock, for so long as at least
      twenty-five percent (25%) of the issued shares of the Series A Preferred Stock
      remain outstanding, no cash dividend may be paid on any Junior Stock.
      Notwithstanding the foregoing, nothing in this Certificate of Designation shall
      prevent the Corporation from purchasing, redeeming or otherwise acquiring shares
      of Common Stock (or securities exercisable for or convertible into Common Stock)
      made for purposes of an employee incentive or benefit plan of the Corporation,
      including, without limitation, the acquisition upon exercise of stock options,
      warrants or rights to acquire Capital Stock if the security acquired represents
      a portion of the exercise price thereof and acquisitions from employees under
      any such employee incentive or benefit plan or to permit the acquisition of
      shares of Common Stock upon exercise of other options, warrants or rights to
      acquire Capital Stock if the security acquired represents a portion of the
      exercise price thereof. 

     

    (e)  In
      the
      event that the Corporation declares or pays or sets apart for payment on any
      Capital Stock (other than on the Series A Preferred Stock) any dividends payable
      in cash or any other property (except for dividends payable in shares of the
      class or series upon which such dividends are declared or paid, or payable
      in
      shares of Common Stock, or rights to acquire such stock, together with cash
      in
      lieu of fractional shares as contemplated by subsection 2.1(c)), the Corporation
      shall also declare and pay to the holders of the Series A Preferred Stock at
      the
      same time that it declares and pays or sets apart for payment to the holders
      of
      such Capital Stock, a dividend consisting of the cash or other property which
      would have been declared and paid or set apart for payment with respect to
      the
      shares of Common Stock issuable upon conversion of the Series A Preferred Stock
      had all of the outstanding shares of Series A Preferred Stock been converted
      immediately prior to the record date for such dividend, or if no record date
      is
      fixed, the date as to which the record holders of the Capital Stock entitled
      to
      such dividends are to be determined.

     

    2.2  Notwithstanding
      anything to the contrary contained in this Certificate of Designation, the
      Corporation agrees that the terms contained herein providing for the rights
      of
      the holders of the Series A Preferred Stock to, without limitation, receive
      payments as dividends in respect of the Liquidation Preference, convert their
      shares or to have their shares redeemed, in each case upon the terms contained
      herein, are critical to the holders’ decision to invest and hold the Series A
      Preferred Stock, and that any increase in the Dividend Rate provided for herein
      will not fully compensate the holders in the event they are not able to fully
      obtain all of their rights hereunder. As a result, notwithstanding any increase
      in the Dividend Rate or payment in respect thereof, the holders shall continue
      to have any and all legal right to compel the Corporation to comply with the
      terms hereof by taking any and all legal actions available to them to enforce
      their rights hereunder. 

     

    
      
        
        

      

      
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    3.  Liquidation
      Rights.
      In
      the
      event of any liquidation, dissolution or winding up of the Corporation, whether
      voluntary or involuntary, the funds and assets that may be legally distributed
      to the Corporation’s stockholders (the “Available
      Funds and Assets”)
      shall be
      distributed to stockholders in the following manner:

     

    3.1  Series
      A Preferred Stock.
      The
      holders of shares of Series A Preferred Stock then outstanding shall be entitled
      to be paid, out of the Available Funds and Assets, an amount per share equal
      to
      the greater of (i) the
      Stated Value per share of Series A Preferred Stock plus any accrued but unpaid
      dividends on the Series A Preferred Stock,
      plus
      any other amounts payable pursuant to Section 6 but unpaid as of such
      date
      (the
“Liquidation
      Preference”),
      prior
      and in preference to any payment or distribution of any Available Funds and
      Assets on any shares of any
      Junior Stock of the Corporation or any Subsidiary (or any setting apart of
      any
      payment or distribution) and (ii) the amount that would have been received
      pursuant to subsection 3.2 if such share of Series A Preferred Stock had been
      converted into Common Stock immediately prior to the date on which holders
      of
      Common Stock shall become entitled to such payment or distribution, without
      giving effect to the prior payment of any Liquidation Preference pursuant to
      this subsection 3.1. If upon any liquidation, dissolution or winding up of
      the
      Corporation, the Available Funds and Assets shall be insufficient to permit
      the
      payment to holders of the Series A Preferred Stock of the aggregate Liquidation
      Preference described in this subsection, then the entire Available Funds and
      Assets shall be distributed among the holders of the then outstanding Series
      A
      Preferred Stock pro rata, according to the number of outstanding shares of
      Series A Preferred Stock held by each holder thereof.

     

    3.2  Remaining
      Assets.
      If
      there are any Available Funds and Assets remaining after the payment or
      distribution (or the setting aside for payment or distribution) to the holders
      of the Series A Preferred Stock of the Liquidation Preference described above
      in
      subsection 3.1, then all such remaining Available Funds and Assets shall be
      distributed to the holders of Junior Stock (other than Common Stock) pursuant
      to
      their respective terms;
      and
      finally, pro
      rata among
      the
      holders of Common Stock according to the number of shares of Common Stock held
      by each holder thereof.

     

    3.3  Deemed
      Liquidation.
      The
      following events shall be deemed a liquidation, dissolution, or winding up
      of
      the Corporation, as those terms are used in this Section 3 (each a “Deemed
      Liquidation”),
      unless
      in connection with any such transaction the holders of at least seventy-five
      percent (75%) of
      the
      then outstanding shares of Series A Preferred Stock vote as a class that this
      subsection 3.3 not apply, in which case the provisions of subsection 5.7 shall
      apply:

     

    
      
        
        

      

      
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    (a)  Any
      merger, reorganization, consolidation or recapitalization transaction or series
      of transactions, whether or not the Corporation is the surviving or continuing
      corporation in such transaction; provided that such transaction or series of
      related transactions shall not be a Deemed Liquidation if the stockholders
      of
      the Corporation immediately prior to such transaction or transactions will,
      immediately after such transaction or transactions (by virtue of securities
      issued as consideration for the transaction or otherwise) hold at least 50%
      of
      the voting power of the surviving, continuing or purchasing entity in
      substantially the same relative proportions as existed prior to such transaction
      or series of transactions.

     

    (b)  Any
      merger, reorganization, consolidation or recapitalization transaction or series
      of transactions in which any shares of Series A Preferred Stock are converted
      into any other property or security other than shares of Common
      Stock.

     

    (c)  Any
      Person or group (as defined in Rules 13d-3 and 13d-5 of the Securities Exchange
      Act of 1934, as amended) shall become the beneficial owner (as so defined),
      directly or indirectly, of shares representing more than fifty percent (50%)
      of
      the aggregate voting power represented by the issued and outstanding Capital
      Stock of the Corporation.

     

    (d)  Any
      sale,
      lease or other disposition of all or substantially all of the assets (tangible
      or intangible) of the Corporation. Notwithstanding anything to the contrary
      contained in this subsection 3.3(d), the provision of this clause (d) shall
      only
      apply during the following periods: (x) prior to the date on which the Asset
      Sale Threshold Amount has been meet, or (y) on any date after the twenty day
      period contemplated by the penultimate sentence of subsection 6(a).

     

    In
      the
      event of a Deemed Liquidation (unless in connection with any such transaction
      the requisite holders of the then outstanding shares of Series A Preferred
      Stock
      have voted as a class that this subsection 3.3 not apply), the holders of shares
      of Series A Preferred Stock then outstanding shall be entitled to be paid an
      amount per share equal to the greater of (i) 120% of the Liquidation Preference
      prior and in preference to any payment or distribution of any Available Funds
      and Assets on any shares of any Junior Stock of the Corporation or any
      Subsidiary (or any setting apart of any payment or distribution) and (ii) the
      amount that would have been received if such share of Series A Preferred Stock
      had been converted into Common Stock immediately prior to the date on which
      holders of Common Stock shall become entitled to any payment in connection
      with
      such Deemed Liquidation event.

     

    3.4  Non-Cash
      Consideration.
      If any
      assets of the Corporation distributed to stockholders in connection with any
      liquidation, dissolution or winding up of the Corporation are in a form other
      than cash, then the value of such assets shall be their fair market value as
      determined by the Board of Directors in good faith, except that any securities
      to be distributed to stockholders in a liquidation, dissolution or winding
      up of
      the Corporation shall be valued as follows:

     

    
      
        
        

      

      
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    (a)  The
      method of valuation of securities not subject to investment letter or other
      similar restrictions on free marketability shall be as follows:

     

    (i)  if
      the
      securities are then traded on a national securities exchange or listed on the
      Nasdaq Global
      Market
      (“Nasdaq”)
      (or
any
      national stock exchange or
      national
      quotation system), then the value shall be deemed to be the average of the
      closing prices of the securities on such exchange or system over the twenty
      (20)
      day period ending three (3) days prior to the distribution; and

     

    (ii)  if
      (i)
      above does not apply but the securities are actively traded over-the-counter,
      then, unless otherwise specified in a definitive agreement for the acquisition
      of the Corporation, the value shall be deemed to be the average of the closing
      bid prices over the twenty (20) calendar day period ending three (3) trading
      days prior to the distribution; and

     

    (iii)  if
      there
      is no active public market, then the value shall be the fair market value
      thereof, as determined in good faith by the Board of Directors of the
      Corporation.

     

    (b)  The
      method of valuation of securities subject to investment letter or other
      restrictions on free marketability shall be to make an appropriate discount
      from
      the market value determined as above in subparagraphs (a)(i), (ii) or (iii)
      of
      this subsection to reflect the approximate fair market value thereof, as
      determined in good faith by the Board of Directors.

     

    4.  Voting
      Rights.

     

    4.1  Series
      A Preferred Stock.
      Each
      holder of shares of Series A Preferred Stock shall be entitled to the number
      of
      votes equal to the number of whole shares of Common Stock into which such shares
      of Series A Preferred Stock could be converted pursuant to the provisions of
      Section 5 below at the date such vote is taken or any written consent of
      stockholders is solicited.

     

    4.2  Scope.
      Each
      holder of Series A Preferred Stock shall have full voting rights and powers
      equal to the voting rights and powers of the holders of Common Stock, and shall
      be entitled to notice of any stockholders’ meeting in accordance with the bylaws
      of the Corporation (as in effect at the time in question) and applicable law,
      and shall be entitled to vote, together with the holders of Common Stock, with
      respect to any question upon which holders of Common Stock have the right to
      vote, except as may be otherwise provided herein or as required by applicable
      law. Except as otherwise expressly provided herein or as required by applicable
      law, the holders of Series A Preferred Stock and the holders of Common
      Stock shall vote together and not as separate classes.

     

    4.3  Class
      Protective Provisions.

     

    (a)  As
      long
      as at least 25% of the issued shares of Series A Preferred Stock remain
      outstanding, and until the date on which the Corporation provides an Asset
      Sale
      Notice pursuant to subsection 6(a), the Corporation shall not (either
      voluntarily or involuntarily, including by merger or otherwise), and shall
      not
      permit any of its Subsidiaries to, without the approval of the holders of shares
      representing at least seventy-five percent (75%) of the Series A Preferred
      Stock
      then outstanding:

     

    
      
        
        

      

      
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    (i)  directly
      or indirectly, create, incur, assume or guaranty, or otherwise become or remain
      directly or indirectly liable with respect to, Indebtedness outstanding
      at any one time in
      excess
      of an
      amount
      equal to the sum of (x) $500
      million plus (y) 
      33%
      of
      the net proceeds from the closing of a registered
      public sale
      of
      Common Stock for the account of the Corporation since
      the
      Original Issue Date at
      a per
      share purchase price of at least the
      Reference Price,
      which
      total aggregate amount in respect of clauses (x) and (y) shall include amounts
      of Indebtedness outstanding on the Original Issue Date, except
      that:

     

    (1)  the
      Corporation may become and remain liable with respect to Indebtedness to
      any
      Wholly
      owned
      Subsidiary, and any Subsidiary may become and remain liable with respect to
      Indebtedness to the Corporation or any
      Wholly
      owned
      Subsidiary;

     

    (2)  the
      Corporation and its Subsidiaries, as applicable, may become and remain liable
      with respect to Capital Leases, obligations owed for all or any part of the
      deferred purchase price of property or services and Indebtedness creating or
      arising under any conditional sale or other title retention agreement with
      respect to any property or assets acquired in an aggregate principal amount
      not
      in excess of $100 million at any time outstanding; 

     

    (3)  the
      Corporation and its Subsidiaries may incur short-term Indebtedness to the
      Federal Communications Commission and any successor thereto (“FCC”)
      in
      respect of the purchase price of FCC Licenses acquired by a Subsidiary pursuant
      to FCC auctions, provided that all such Indebtedness
      is terminated and the related purchase amounts
      are paid in full when payment is due in accordance with FCC Rules;
      and

     

    (4)  the
      Corporation and its Subsidiaries may become and remain liable with respect
      to
      Indebtedness arising in the ordinary course of business consistent with past
      business practices under Spectrum Leases in the 2.5 GHz band that are Capital
      Leases under U.S. GAAP; or

     

    (ii)  create,
      issue, or authorize the issuance of any Capital Stock having any rights to
      dividends or distributions (including any redemption, repurchase or exchange),
      or any rights upon a Liquidation, or any other rights or preferences, that
      rank
      prior to or on a parity with, or could under any circumstances, be equal to
      or
      more favorable than, the rights of the Series A Preferred Stock; or

     

    (iii)  consummate
      any Asset Sale involving the receipt of gross proceeds of, or the disposition
      of
      assets worth, in each case based on the fair market value thereof, as determined
      in good faith by the Board of Directors, $500
      million
      or
      more
      (measured in the aggregate including all Asset Sales from and after the
Original
      Issue Date), such $500 million aggregate amount, herein the “Asset
      Sale Threshold Amount”.

     

    
      
        
        

      

      
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    (b)  As
      long
      as at least 25% of the issued shares of Series A Preferred Stock remain
      outstanding, the Corporation shall not (either voluntarily or involuntarily,
      including by merger or otherwise), and shall not permit any of its Subsidiaries
      to

     

    (i)  (A)
      distribute any rights or warrants to all holders of the Corporation’s Common
      Stock entitling them to purchase (for a period expiring within 60 days), shares
      of Common Stock at a price per share less (or having a conversion price per
      share less) than the Fair Market Value Price on the ex-dividend date for such
      distribution (except for distributions that the holders of the Series A
      Preferred Stock may participate in on a basis and with the notice that the
      Corporation’s Board of Directors determines to be fair and appropriate), or (B)
      consummate any sale of Common Stock for an amount less than the Fair Market
      Value Price on the related pricing date for such sale, except for (1)
      the
      issuance of shares of Common Stock for cash in any underwritten public offering
      pursuant to a registration statement declared effective under the Securities
      Act; (2) the issuance of shares of Common Stock pursuant to any adjustment
      provided for in Section 5; (3) Common Stock or options to purchase Common Stock
      issued to employees, officers, directors or consultants of the Corporation
      or
      any Subsidiary pursuant to the terms of any of the NextWave Wireless Inc. 2005
      Stock Incentive Plan, the NextWave Wireless Inc. 2007 New Employee Stock
      Incentive Plan, CYGNUS Communications, Inc.’s 2004 Stock Option Plan and the
      2005 PacketVideo Equity Incentive Plan (as in effect on the date hereof);
      provided, however, that all of such Common Stock and options are issued for
      not
      less than (or have an exercise price equal to not less than) the Fair Market
      Value Price of such Common Stock as of the grant date; (4) Capital Stock issued
      pursuant to transactions involving technology licensing, research or development
      activities, the use or acquisition of strategic assets, properties or rights,
      or
      the distribution, manufacture or marketing of the Corporation’s products, which
      transactions are for non-financing purposes; provided, that Capital Stock issued
      pursuant to this clause (4) may not exceed 0.5% of the Common Stock (on a fully
      diluted basis); (5) Capital Stock issued in private placements for per share
      consideration equal to at least 80% of the then-applicable Fair Market Value
      Price; provided,
      that
      the aggregate net proceeds to the Corporation from such private placements
      shall
      not exceed $200 million; provided,
      further that
      the
      applicable per share consideration shall not be less than the Reference Price;
      and (6) Capital Stock issued upon the exercise of conversion or exchange rights,
      options or subscription calls, warrants, commitments or claims.

     

    5.  Conversion
      Rights.
      The
      outstanding shares of Series A Preferred Stock shall be convertible into Common
      Stock as follows:

     

    5.1  Conversion
      at the Holder’s Option

     

    (a)  At
      the
      option of the holder thereof, each share of Series A Preferred Stock may be
      converted without the payment of additional consideration, at any time or from
      time to time prior to the close of business on the Business Day before any
      date
      fixed for redemption of such share, into fully paid and nonassessable shares
      of
      Common Stock as provided herein.

     

    
      
        
        

      

      
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    (b)  Each
      holder of shares of Series A Preferred Stock who elects to convert the same
      into
      shares of Common Stock shall surrender the certificate or certificates
      representing such shares of Series A Preferred Stock, duly endorsed, at the
      office of the Corporation or any transfer agent for the Series A Preferred
      Stock
      or Common Stock, or the holder shall notify the Corporation or its transfer
      agent that such certificates have been lost, stolen or destroyed and deliver
      an
      agreement reasonably satisfactory to the Corporation to indemnify the
      Corporation from any loss incurred by it in connection with such certificates,
      and in each case shall give written notice to the Corporation at such office
      that such holder elects to convert the same and shall state therein the number
      of shares of Series A Preferred Stock being converted. Thereupon,
      the Corporation shall promptly, but in any event within five (5) Trading Days,
      (i) (A) provided that the Corporation's transfer agent (the “Transfer
      Agent”)
      is
      participating in the Depository Trust Company's (the “Depository”)
      Fast
      Automated Securities Transfer Program, credit such aggregate number of shares
      of
      Common Stock to which the holder shall be entitled to the holder's or its
      designee's balance account with the Depository through its Deposit Withdrawal
      Agent Commission system or (y) if the Transfer Agent is not participating in
      the
      Depository’s Fast Automated Securities Transfer Program, issue and deliver to
      the address as specified in the holder's notice of conversion, a certificate
      or
      certificates, representing the number of shares of Common Stock to which such
      holder is entitled upon such conversion and, (ii) if applicable, a certificate
      or certificates representing the balance of such number of shares of Series
      A
      Preferred Stock not being converted. Such conversion shall be deemed to have
      been made immediately prior to the close of business on the date of such
      surrender of the certificate or certificates representing the shares of Series
      A
      Preferred Stock to be converted, and the person entitled to receive the shares
      of Common Stock issuable upon such conversion shall be treated for all purposes
      as the record holder of such shares of Common Stock on such date.

     

    5.2  Mandatory
      Conversion.

     

    (a)  From
      and
      after the date that is eighteen (18) months following the Original Issue Date,
      on any day on which the closing price of the Corporation’s shares
      of
      Common Stock
      that are
      then listed
      on
      the Nasdaq Global
      Market
      (or a similar national
      securities exchange)
      (a
“Trading
      Market”)
      is in
      excess of the
      Threshold Price
      for
      any
      twenty (20) Trading Days (as hereinafter defined) in the immediately preceding
      thirty (30) consecutive Trading Day period (any such date, a “Share
      Threshold Condition Date”);
      the
      Corporation will
      have
      the option on
      such
      date to begin the conversion notification process described below with respect
      to no less than twenty-five percent (25%) of the then outstanding shares of
      Series A Preferred Stock within five (5) Business Days of any such Share
      Threshold Condition Date; provided,
      that if
      the Corporation shall consummate a Qualified Public Offering, the Share
      Threshold Condition Date shall not occur until the closing price is in excess
      of
      the Threshold Price for any twenty (20) Trading Days in a thirty (30) day
      consecutive Trading Day period following such Qualified Public Offering;
provided,
      further,
      that
      the Corporation shall not be entitled to deliver a Conversion Notice (as defined
      below) unless a Shelf Registration Statement has been effective from the
      commencement of the twenty (20) Trading Day Period referred to above through
      the
      date of the Conversion Notice, except to the extent that the shares of Common
      Stock issuable upon conversion of the Series A Preferred Stock are eligible
      for
      resale pursuant to Rule 144(k) promulgated under the Securities Act of 1933,
      as
      amended. The Corporation shall provide
      forty-five (45)
      days
      advance written notice of its election to begin the conversion process (the
      “Conversion
      Notice”)
      to the
      holders of the Series A Preferred Stock at their addresses last shown on the
      records of the Corporation’s transfer agent (or the records of the Corporation,
      if it serves as its own transfer agent). Any
      such
      Conversion Notice shall also serve as the redemption notice pursuant to
      subsection 6(b). In
      the
      event any such Conversion Notice provides for the conversion of less than all
      of
      the outstanding Series
      A
      Preferred Stock,
      such
      Conversion shall be made on a pro rata basis.
      The
      Corporation may not issue a Conversion Notice more than once in any 90 day
      period. For the purpose of this Certificate of Designation, a “Trading
      Day”
is
      a
      day on which the Nasdaq, or if the Corporation’s shares
      of
      Common Stock
      cease to
      be quoted on the Nasdaq (or a similar
      national
      securities exchange or
      national
      quotation system), the principal national securities exchange on which the
      Corporation’s securities are listed, is open for trading. A Trading Day only
      includes those days that have a scheduled closing time of 4:00 p.m. (New York
      City time) or the then standard closing time for regular trading on the relevant
      exchange or trading system.

     

    
      
        
        

      

      
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    (b)  On
      the
      forty-sixth (46th)
      day
      after the date of a Conversion Notice and provided that the shares of Common
      Stock issued upon conversion are registered on a Shelf Registration Statement
      which is then effective or are eligible for resale pursuant to Rule 144(k),
      the
      designated amount of outstanding shares of Series A Preferred Stock shall be
      converted into Common Stock automatically and on a pro rata basis without the
      need for any further action by the holders of such shares and whether or not
      the
      certificates representing such shares are surrendered to the Corporation or
      its
      transfer agent; provided,
      however
      that any
      shares held by a holder of Series A Preferred Stock who has made a Participating
      Election (as defined in subsection 6(b)) with respect to such shares shall
      not
      be converted; provided,
      further,
      that
      the Corporation shall not be obligated to issue certificates evidencing the
      shares of Common Stock issuable upon such conversion unless the certificates
      evidencing such shares of Series A Preferred Stock are either delivered to
      the
      Corporation or its transfer agent as provided below, or the holder notifies
      the
      Corporation or its transfer agent that such certificates have been lost, stolen
      or destroyed and executes an agreement reasonably satisfactory to the
      Corporation to indemnify the Corporation from any loss incurred by it in
      connection with such certificates. Upon the occurrence of such automatic
      conversion of any such shares of Series A Preferred Stock, the holders of such
      shares of Series A Preferred Stock shall surrender the certificates representing
      such shares at the office of the Corporation or any transfer agent for the
      Series A Preferred Stock or Common Stock. Thereupon, the Corporation shall
      promptly, but in any event within five (5) Trading Days, (i) (A) provided that
      the Transfer Agent is participating in the Depository's Fast Automated
      Securities Transfer Program, credit such aggregate number of shares of Common
      Stock to which the holder shall be entitled to the holder's or its designee's
      balance account with the Depository through its Deposit Withdrawal Agent
      Commission system or (y) if the Transfer Agent is not participating in the
      Depository’s Fast Automated Securities Transfer Program, issue and deliver to
      the address as specified in the holder's notice of conversion, a certificate
      or
      certificates, representing the number of shares of Common Stock into which
      the
      shares of Series A Preferred Stock surrendered were converted on the date on
      which such automatic conversion occurred and, (ii) if applicable, a certificate
      or certificates representing the balance of such number of shares of Series
      A
      Preferred Stock not subject to automatic conversion.

     

    
      
        
        

      

      
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    5.3  Conversion
      Price.
      Each
      share of Series A Preferred Stock shall be convertible in accordance with
      subsection 5.1 or subsection 5.2 above into the number of shares of Common
      Stock
      which results from dividing the then existing Liquidation Preference by the
      Conversion Price that is in effect at the time of conversion (the “Conversion
      Ratio”). The
      Corporation may make such decreases in the Conversion Price, in addition to
      those required by this Section 5, as the Board of Directors considers advisable
      in order to avoid or diminish any income tax to any holders of Common Stock
      resulting from any dividend or distribution of stock or issuance of rights
      or
      warrants to purchase or subscribe for stock or from any event treated as such
      for income tax purposes.

     

    5.4  Adjustment
      Upon Common Stock Event.
      The
      Conversion Price
      and
      Reference Price shall
      each be subject to adjustment from time to time as provided below. Following
      each adjustment thereof, such adjusted Conversion Price and Reference Price
      shall remain in effect until a further adjustment of such Conversion Price
      and
      Reference Price hereunder. Upon the happening of a Common Stock Event (as
      hereinafter defined), the Conversion Price and Reference Price shall
      simultaneously with the happening of such Common Stock Event, be adjusted by
      multiplying such price in effect immediately prior to such Common Stock Event
      by
      a fraction:

     

    (a)  the
      numerator of which shall be the number of shares of Common Stock issued and
      outstanding immediately prior to such Common Stock Event, and

     

    (b)  the
      denominator of which shall be the number of shares of Common Stock issued and
      outstanding immediately after such Common Stock Event.

     

    The
      Conversion Price
      and
      Reference Price for
      the
      Series A Preferred Stock shall be readjusted in the same manner upon the
      happening of each subsequent Common Stock Event. As used herein, the term the
      “Common
      Stock Event”
shall
      mean at any time or from time to time after the date on which the first share
      of
      Series A Preferred Stock is issued by the Corporation (the “Original
      Issue Date”),
      (i)
      the issue by the Corporation of additional shares of Common Stock as a dividend
      or other distribution on outstanding Common Stock, (ii) a subdivision of the
      outstanding shares of Common Stock into a greater number of shares of Common
      Stock, or (iii) a combination of the outstanding shares of Common Stock into
      a
      smaller number of shares of Common Stock.

     

    5.5  Adjustments
      for Other Dividends and Distributions.
      If at
      any time or from time to time after the Original Issue Date the Corporation
      pays
      a dividend or makes another distribution to the holders of the Common Stock
      payable in securities of the Corporation, other than an event constituting
      a
      Common Stock Event then, in each such event, provision shall be made so that
      the
      holders of the Series A Preferred Stock shall receive upon conversion thereof,
      in addition to the number of shares of Common Stock receivable upon conversion
      thereof, the amount of securities of the Corporation which they would have
      received had their Series A Preferred Stock been converted into Common Stock
      on
      the date of such event (or such record date, as applicable) and had they
      thereafter, during the period from the date of such event (or such record date,
      as applicable) to and including the conversion date, retained such securities
      receivable by them as aforesaid during such period, subject to all other
      adjustments called for during such period under this Section 5 with respect
      to
      the rights of the holders of the Series A Preferred Stock or with respect to
      such other securities by their terms.

     

    
      
        
        

      

      
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    5.6  Adjustment
      for Reclassification, Exchange and Substitution.
      If at
      any time or from time to time after the Original Issue Date the Common Stock
      issuable upon the conversion of the Series A Preferred Stock is changed into
      the
      same or a different number of shares of any class or series of stock or other
      securities or property, whether by recapitalization, reclassification or
      otherwise (other than by a Common Stock Event provided for in subsection 5.4
      or
      a stock dividend provided for in subsection 5.5 or a reorganization, merger
      or
      consolidation provided for in subsection 5.7), then in any such event each
      holder of Series A Preferred Stock shall have the right thereafter to convert
      such stock into the kind and amount of stock and other securities and property
      receivable upon such recapitalization, reclassification or other change by
      holders of the number of shares of Common Stock into which such shares of Series
      A Preferred Stock could have been converted immediately prior to such
      recapitalization, reclassification or change, all subject to further adjustment
      as provided herein or with respect to such other securities or property by
      the
      terms thereof; provided,
      however,
      that if
      the kind and amount of stock and other securities and property receivable upon
      such recapitalization, reclassification or other change does not consist of
      publicly traded securities of the Corporation or its successor traded on a
      Trading Market, such recapitalization, reclassification or change may, at the
      election of a holder, constitute a Deemed Liquidation event under Section 3.3
      and such holder shall be entitled to receive any amounts payable upon the
      occurrence of such Deemed Liquidation event in accordance with such
      section.

     

    5.7  Reorganizations,
      Mergers and Consolidations.
      If at
      any time or from time to time after the Original Issue Date there is a
      reorganization of the Corporation involving a transaction with another entity
      (i.e.
      not
      including a Common Stock Event provided for in subsection 5.4 or a stock
      dividend provided for in subsection 5.5 or a recapitalization or
      reclassification or other event provided for in subsection 5.6) or a merger
      or
      consolidation of the Corporation with or into another entity, then, as a part
      of
      such reorganization, merger or consolidation, provision shall be made so that,
      if the Corporation is not the surviving entity in such transaction, the
      surviving entity shall assume the obligations of the Corporation under this
      Certificate of Designation, Preferences and Rights and the holders of the Series
      A Preferred Stock thereafter shall be entitled to receive, upon conversion
      of
      the Series A Preferred Stock, the number of shares of stock or other securities
      or property of the Corporation, or of such successor corporation resulting
      from
      such reorganization, merger or consolidation, to which a holder of Common Stock
      deliverable upon conversion would have been entitled on such reorganization,
      merger or consolidation; provided,
      however,
      that if
      the stock and other securities of the Corporation, or of such successor
      corporation, receivable upon such reorganization, merger or consolidation does
      not consist of publicly traded securities of the Corporation or its successor
      traded on a Trading Market, such reorganization, merger or consolidation may,
      at
      the election of a holder, constitute a Deemed Liquidation event under subsection
      3.3 (to the extent such event is not already governed under subsection 3.3
      and
      the holders of Series A Preferred Stock have elected to make subsection 3.3
      inapplicable) and such holder shall be entitled to receive any amounts payable
      upon the occurrence of such Deemed Liquidation event in accordance with such
      section. In any such case, appropriate adjustment shall be made in the
      application of the provisions of this Section 5 with respect to the rights
      of
      the holders of the Series A Preferred Stock after the reorganization, merger
      or
      consolidation to the end that the provisions of this Section 5 (including
      adjustment of the Conversion Price
      and
      Reference Price
      then in
      effect and number of shares issuable upon conversion of the Series A Preferred
      Stock) shall be applicable after that event and be as nearly equivalent to
      the
      provisions hereof as may be practicable. This subsection 5.7 shall similarly
      apply to successive reorganizations, mergers and consolidations.

     

    
      
        
        

      

      
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    5.8  Certificate
      of Adjustment.
      In each
      case of an adjustment or readjustment of the Conversion Price, the Corporation,
      at its expense, shall cause its chief financial officer to compute such
      adjustment or readjustment in accordance with the provisions hereof and prepare
      a certificate showing such adjustment or readjustment, and shall mail such
      certificate, by first class mail, postage prepaid, to each registered holder
      of
      the Series A Preferred Stock at the holder’s address as shown in the
      Corporation’s books.

     

    5.9  Fractional
      Shares.
      No
      fractional shares of Common Stock shall be issued upon any conversion of Series
      A Preferred Stock. All shares of Common Stock (including fractions thereof)
      issuable upon conversion of more than one share of Series A Preferred Stock
      by a
      holder thereof shall be aggregated for purposes of determining whether
      conversion would result in the issuance of any fractional share. If, after
      the
      aforementioned aggregation, the conversion would result in the issuance to
      any
      holder of a fractional share, then, in lieu of any fractional share to which
      the
      holder would otherwise be entitled, the Corporation shall pay the holder cash
      equal to the product of such fraction multiplied by the Common Stock’s fair
      market value as determined in good faith by the Board as of the date of
      conversion.

     

    5.10  Reservation
      of Stock Issuable Upon Conversion.
      The
      Corporation shall at all times reserve and keep available out of its authorized
      but unissued shares of Common Stock, solely for the purpose of effecting the
      conversion of the shares of the Series A Preferred Stock, such number of its
      shares of Common Stock as shall from time to time be sufficient to effect the
      conversion of all outstanding shares of Series A Preferred Stock; and if at
      any
      time the number of authorized but unissued shares of Common Stock shall not
      be
      sufficient to effect the conversion of all then outstanding shares of the Series
      A Preferred Stock, the Corporation will take such corporate action as may,
      in
      the opinion of its counsel, be necessary to increase its authorized but unissued
      shares of Common Stock to such number of shares as shall be sufficient for
      such
      purpose.

     

    
      
        
        

      

      
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    5.11  Notices.
      Any
      notice required by the provisions of the Certificate of Incorporation to be
      given to the holders of shares of the Series A Preferred Stock shall be deemed
      given upon the earlier of actual receipt or deposit in the United States mail,
      by certified or registered mail, return receipt requested, postage prepaid,
      or
      delivery by a recognized express courier, fees prepaid, addressed to each holder
      of record at the address of such holder appearing on the books of the
      Corporation.

     

    5.12  Payment
      of Taxes.
      The
      Corporation will pay all taxes (other than taxes based upon income) and other
      governmental charges that may be imposed with respect to the issue or delivery
      of shares of Common Stock upon conversion of shares of the Series A Preferred
      Stock, excluding any tax or other charge imposed in connection with any transfer
      involved in the issue and delivery of shares of Common Stock in a name other
      than that in which the shares of the Series A Preferred Stock so converted
      were
      registered.

     

    6.  Redemption
      of Series A Convertible Preferred Stock

     

    (a)  In
      the
      event an
      Asset
      Sale would result in aggregate proceeds to the Corporation from Asset Sales
      since the Original Issue Date equal to or in excess of the Asset Sale Threshold
      Amount and such Asset Sale does not receive the requisite approval of the
      holders of the Series A Preferred Stock (an “Asset
      Threshold Event”),
      the
      Corporation must either (i) not consummate such Asset Sale or (ii) elect within
      five (5) Business Days of such Asset Threshold Event to redeem all shares of
      Series A Preferred Stock in accordance with the procedures set forth in this
      subsection 6(a) (an “Asset
      Sale Redemption Election”)
      at a
      redemption price equal to 120% of the then
      existing Liquidation
      Preference (the “Asset
      Sale Redemption Price”),
      such
      amount
      to be
      paid in cash. Upon
      the
      occurrence of any such Asset Sale Redemption Election,
      the
      Corporation must provide written notice within twenty (20) days after the
      occurrence thereof
      to the
      holders of Series A Preferred Stock at their addresses last shown on the records
      of the Corporation’s transfer agent (or the records of the Corporation, if it
      serves as its own transfer agent), of the redemption and the Asset Sale
      Redemption Price (the “Asset
      Sale Notice”).
      If
      the Corporation has issued an Asset Sale Notice, the Corporation will redeem
      for
      cash
all
      shares of the Series A Preferred Stock held by each holder who delivers written
      notice of its election to participate in the redemption to the Corporation
      within 20
      days
      after receipt of the Asset Sale Notice (a “Asset
      Sale Participating Election”).
      If,
      at the termination of such 20 day-period, any holder has not delivered an Asset
      Sale Participating Election to the Corporation, such holder shall be deemed
      to
      have waived
      all of their rights under this subsection 6(a). The holders of Series A
      Preferred Stock who have received an Asset Sale Notice shall be deemed to have
      given their consent to the Asset Sale effective on the date of the Asset Sale
      Notice whether or not such holders deliver an Asset Sale Participating
      Election.

     

    (b)  If
      the
      Corporation has issued a Conversion Notice following the occurrence of any
      Share
      Threshold Condition Date,
      the
      Corporation will redeem for
      cash
all
      shares of the Series A Preferred Stock indicated in such notice from each holder
      of shares of Series A Preferred Stock who elects to have such shares redeemed
      (in lieu of having such shares converted pursuant to subsection 5.2) at a
      redemption price per share of Series A Preferred Stock equal to 130% of the
      then
      existing Liquidation
      Preference (the “Redemption
      Price”).
      Each
      holder of Series A Preferred Stock may exercise its redemption rights under
      this
      subsection 6(b) by delivering written notice of its election to participate
      in
      the redemption to the Corporation within 20
      days
      after receipt of the Conversion Notice (a “Participating
      Election”).
      If,
      at the termination of such 20 day-period, any holder has not delivered a
      Participating Election to the Corporation, such holder shall be deemed to
      have
      elected
      to convert their shares of Series
      A
      Preferred Stock in
      accordance with the terms of subsection 5.2.
      Notwithstanding anything to the contrary contained in this Section
      6(b),
      in
      connection with any particular Conversion Notice,
      the
      Corporation shall not be required to redeem more than fifty percent (50%) of
      the
shares
      of
      the Series A Preferred Stock subject to any particular Conversion
      Notice.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (c)  If
      the
      number of shares covered by Participating Elections with respect to any
      particular Conversion Notice represents less than fifty
      percent (50%) of the
      number of
      shares
      of Series A Preferred Stock subject to that Conversion Notice, the holders
      of
      Series A Preferred Stock who have submitted Participating Elections shall have
      the right on
      a
      pro-rata basis (a
      “Top-up
      Right”)
      to
      cause the Corporation to redeem, to the extent of lawfully available funds,
      additional shares of Series A Preferred Stock held by such holders at the
      Redemption Price, until the total number of shares to be redeemed by the
      Corporation equals fifty
      percent (50%) of the
      number of
      shares
      of Series A Preferred Stock subject to that Conversion Notice. In order to
      exercise a Top-up Right, a holder must include in its Participating Election
      an
      irrevocable commitment to surrender a number of additional shares of Series
      A
      Preferred Stock held by it for redemption pursuant to the Conversion Notice.
      If
      a holder fails to include such commitment, such holder shall be deemed to have
      waived the Top-up Right. The Corporation shall redeem shares pursuant to the
      Top-up Right, if applicable, on a pro rata basis until the total number of
      shares to be redeemed by the Corporation equals the
      number of
      shares
      of Series A Preferred Stock subject to that Conversion Notice.

     

    (d)  The
      Corporation will on March 28, 2017 (“Mandatory
      Redemption Date”),
      redeem for
      cash
from
      each
      holder of Shares of Series A Preferred Stock, at a price per share equal to
      the
then
      existing Liquidation
      Preference per share, plus any dividends
      unpaid
      thereon, subject to appropriate adjustment in the event of any stock dividend,
      stock split, combination or other similar recapitalization affecting such shares
      (the “Mandatory
      Redemption Price”),
      all
      outstanding Shares of Series A Preferred Stock.

     

    (e)  If
      the
      funds of the Corporation legally available for redemption of Series A Preferred
      Stock on any redemption date are insufficient to redeem the number of shares
      of
      Series A Preferred Stock required under this Section 6 to be redeemed on such
      date, those funds which are legally available will be used to redeem the maximum
      possible number of such shares of Series A Preferred Stock which would be
      redeemed on such date if the funds of the Corporation legally available therefor
      had been sufficient to redeem all shares of Series A Preferred Stock required
      to
      be redeemed on such date. At any time thereafter when additional funds of the
      Corporation become legally available for the redemption of Series A Preferred
      Stock, such funds will be used, at the end of the next succeeding fiscal
      quarter, to redeem the balance of the shares which the Corporation was
      theretofore obligated to redeem, ratably on the basis set forth in the preceding
      sentence.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (f)  Promptly
      following the 30-day
      period
      during which holders may deliver a Participating Election and thirty (30) days
      prior to the Mandatory Redemption Date, the Corporation shall provide notice
      of
      the redemption of Series A Preferred Stock specifying the time and place of
      redemption and the Redemption Price or the Asset Sale Redemption Price or the
      Mandatory Redemption Price, as applicable, the Asset Sale Redemption Price,
      or
      the Mandatory Redemption Price, as applicable, by first class or registered
      mail, postage prepaid, to each holder of Series A Preferred Stock who has
      delivered a Participating Election, or, in the case of a redemption on the
      Mandatory Redemption Date, all holders of Series A Preferred Stock, at the
      address for such holder last shown on the records of the transfer agent therefor
      (or the records of the Corporation, if it serves as its own transfer agent),
      not
      more than sixty (60) nor less than thirty (30) days prior to the date on which
      such redemption is to be made. If less than all Series A Preferred Stock owned
      by such holder is then to be redeemed, the notice will also specify the number
      of shares which are to be redeemed. The Corporation, upon mailing such notice
      or
      irrevocably authorizing the bank or trust company hereinafter mentioned to
      mail
      the same, may deposit an amount equal to the Redemption Price (or the Asset
      Sale
      Redemption Price, or the Mandatory Redemption Price, as applicable) with a
      bank
      or trust company having aggregate capital and surplus in excess of $100,000,000
      to be held in trust for payment to the holders of Series A Preferred Stock
      at
      any time after such deposit. Upon such deposit, or if no deposit is made, then
      from and after the date fixed for redemption (unless the Corporation shall
      default in paying the Redemption Price, the Asset Sale Redemption Price or
      the
      Mandatory Redemption Price, as applicable), the Series A Preferred Stock shall
      cease to be outstanding and the holders thereof shall cease to be stockholders
      with respect thereto. The balance of moneys deposited by the Corporation
      pursuant to this subsection 6(f) remaining unclaimed at the expiration of one
      (1) year following the redemption date shall thereafter be returned to the
      Corporation upon its request.

     

    (g)  On
      or
      after any redemption date, each holder of Series A Preferred Stock to be
      redeemed shall surrender to the Corporation the certificate or certificates
      representing such shares, in the manner and at the place designated in the
      redemption notice, and thereupon the Redemption Price (or the Asset Sale
      Redemption Price or the Mandatory Redemption Price, as applicable) of such
      shares shall be payable to the order of the person whose name appears on such
      certificate or certificates as the owner thereof and each surrendered
      certificate shall be cancelled. In the event of any lost, stolen or destroyed
      certificates, the record holder thereof shall deliver to the Corporation a
      notice indicating that such certificates have been lost, stolen or destroyed
      and
      an agreement reasonably satisfactory to the Corporation to indemnify the
      Corporation from any loss incurred by it in connection with such certificates.
      In the event that less than all of the shares represented by any stock
      certificate are redeemed, a new certificate shall be issued representing the
      shares held by the holder thereof immediately following such redemption.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    7.  Miscellaneous

     

    7.1  Consent
      of Required Holders.
      In
      addition to any other rights provided by law, except where the vote or written
      consent of the holders of a greater number of shares is required by law or
      by
      another provision of the Certificate of Incorporation, the affirmative vote
      at a
      meeting duly called for such purpose or the written consent without a meeting
      of
      the holders of a majority of the outstanding shares of Series A Preferred Stock,
      voting together as a single class, shall be required before the Corporation
      may:
      (a) amend or repeal any provision of, or add any provision to, the Certificate
      of Incorporation or bylaws, or file any articles of amendment, certificate
      of
      designations, preferences, limitations and relative rights of any series of
      preferred stock, if such action would materially and adversely alter or change
      the preferences, rights, privileges or powers of, or restrictions provided
      for
      the benefit of the Series A Preferred Stock; or (b) increase or decrease (other
      than by conversion) the authorized number of shares of Series A Preferred
      Stock.

     

    7.2  No
      Reissuance of Preferred Stock.
      No
      share or shares of Preferred Stock acquired by the Corporation by reason of
      redemption, purchase, conversion or otherwise shall be reissued, and all such
      shares shall be cancelled, retired and eliminated from the shares which the
      Corporation shall be authorized to issue.

     

    7.3  Preemptive
      Rights.
      No
      stockholder of the Corporation shall have a right to purchase shares of capital
      stock of the Corporation sold or issued by the Corporation except to the extent
      that such a right may from time to time be set forth in a written agreement
      between the Corporation and a stockholder.

     

    [The
      remainder of this page is intentionally left blank.]

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, said corporation has caused this Certificate of Designation,
      Preferences and Rights to be signed by Allen Salmasi, President, and attested
      by
      Frank A. Cassou, Secretary, as of this March 28, 2007.

     

    
      	 	
              /s/
                Allen Salamasi 

              Name:
                Allen Salmasi

              Title: 
                President

            

    

     

    ATTESTED:

     

    By:/s/
      Frank A. Cassou 

    Name:
      Frank A. Cassou

    Title: 
      Secretary

     

    
      
        
        

      

      
        22EXHIBIT
        10.17

       

    

    NEXTWAVE
      WIRELESS, INC.

     

    2007
      New Employee Stock Incentive Plan

     

    SECTION
      1.   Purpose
      of the Plan.
      

     

    The
      NextWave Wireless, Inc. 2007 New Employee Stock Incentive Plan (the “Plan”) is
      intended to promote the interests of NextWave Wireless Inc., a Delaware
      corporation (the “Company”), and
      its
      stockholders by enabling the Company and its subsidiaries and affiliates to
      foster and promote the interests of the Company by attracting new employees,
      and
      non-employee directors to the Company who will contribute to the Company’s
      success by their ability, ingenuity and industry, to enable such employees
      to
      acquire equity interests in the Company and to provide a means whereby they
      may
      develop a sense of proprietorship and personal involvement in the development
      and financial success of the Company, and to encourage them to remain with
      and
      devote their best efforts to the business of the Company thereby advancing
      the
      interests of the Company and its stockholders. The
      Plan
      provides for payment of various forms of incentive compensation and accordingly
      is not intended
      to be a plan that is subject to the Employee Retirement Income Security Act
      of
      1974, as
      amended,
      and shall be administered accordingly.

     

    SECTION
      2.   Definitions.
      

     

    As
      used
      in the Plan, the following terms shall have the meanings set forth
      below:

     

    “Affiliate”
      shall mean, with respect to any Person, any other Person that directly or
      indirectly through one or more intermediaries controls, is controlled by or
      is
      under common control with, the Person in question. As used herein, the term
      “control” means the possession, direct
      or
      indirect, of the power to direct or cause the direction of the management and
      policies of
      a
      Person, whether through ownership of voting securities, by contract or
      otherwise.

     

    “Award”
      shall mean any Option, Restricted Share, Phantom Share, Bonus Shares or Other
      Stock-Based Award.

     

    “Award
      Agreement” shall mean any written agreement, contract, or other instrument or
      document evidencing any Award, which may, but need not, be executed or
      acknowledged by a Participant.

     

    “Board”
      shall mean the Board of Directors of the Company.

     

    “Bonus
      Shares” shall mean an award of Shares granted pursuant to Section 6(d) of the
      Plan.

     

    “Change
      in Control” shall mean the occurrence of any one of the following
      events:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    	(a)  	
            any
              “person” (as defined in Section 3(a)(9) of the Exchange Act, and as
              modified in Section 13(d) and 14(d) of the Exchange Act) other than
              (A)
              the Company or any of its subsidiaries, (B) any employee benefit plan
              of
              the Company or any of its
              subsidiaries, (C) any Affiliate, (D) a company owned, directly or
              indirectly, by the
              stockholders of the Company in substantially the same proportions as
              their
              ownership
              of
              the Company, or (E) an underwriter temporarily holding securities pursuant
              to an offering of such securities (a “Person”), becomes the “beneficial
              owner” (as defined
              in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities
              of
              the Company representing more than 50% of the combined voting securities
              of the Company then outstanding;

          

     

    	(b)  	
            the
              consummation of any merger, organization, business combination or
              consolidation of the Company or one of its subsidiaries with or into
              any
              other entity
              or organization; provided, however,
              that a merger, reorganization, business
              combination or consolidation which would result in the holders of the
              voting securities of the Company outstanding immediately prior thereto
              holding securities which represent immediately after such merger,
              reorganization, business combination or consolidation more than 50%
              of the
              combined voting power of the voting securities of the Company or the
              surviving company or the parent
              of such surviving company shall not be covered by this subparagraph
              (b);

          

     

    	(c)  	
            the
              consummation of a sale, lease, transfer, conveyance or other disposition
              (including by merger or consolidation) by the Company in one or a series
              of related
              transactions, of all or substantially all of the Company’s assets, other
              than
              any such transaction if the holders of the voting securities of the
              Company outstanding immediately prior thereto hold securities immediately
              thereafter which represent more than 50% of the combined voting power
              of
              the voting securities of the acquiror, or parent of the acquiror, of
              such
              assets;

          

     

    	(d)  	
            the
              Board of Directors of the Company approves a plan of complete liquidation
              or dissolution of the Company, except in connection with a transaction
              described in the proviso to subparagraph (b);
              or

          

     

    	(e)  	
            individuals
              who, as of the Effective Date, constitute the Board (the “Incumbent
              Board”) cease during a 12 month period for any reason to constitute at
              least a majority of the Board; provided, however, that any individual
              becoming a Director subsequent to the Effective Date whose election
              by the
              Board, was approved by a vote of at least a majority of the Directors
              then
              comprising the Incumbent Board shall be considered as though such
              individual were a Director of the Incumbent Board, but excluding, for
              this
              purpose, any such individual whose initial assumption of office occurs
              as
              a result of either (i) an actual or threatened election contest (as
              such
              terms are used in Rule 14A-11 of Regulation 14A promulgated under the
              Exchange
              Act) with respect to the election or removal of Directors or an actual
              or
              threatened solicitation of proxies or consents by or on behalf of a
              Person
              other than
              the Board or (ii) a plan or agreement to replace a majority of the
              Directors of
              the Board then comprising the Incumbent
              Board.

          

     

    Solely
      with respect to any Award that is subject to Section 409A of the Code, this
      definition is intended
      to comply with the definition of change in control under Section 409A of the
      Code and,
      to
      the extent that the above definition does not so comply, such definition shall
      be void and of no effect and, to the extent required to ensure that this
      definition complies with the requirements of Section 409A of the Code, the
      definition of such
      term
      set forth in regulations or other regulatory guidance issued under Section
      409A
      of the
      Code by
      the appropriate governmental authority is hereby incorporated by reference
      into
      and shall
      form part of this Plan as fully as if set forth herein verbatim and the Plan
      shall be operated in
      accordance with the above definition of Change in Control as modified to the
      extent necessary to
      ensure
      that the above definition complies with the definition prescribed in such
      regulations or
      other
      regulatory guidance insofar as the definition relates to any Award that is
      subject to Section 409A of the Code.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    “Code”
      shall mean the Internal Revenue Code of 1986, as amended from time to time,
      and
      the rules and regulations thereunder.

     

    “Committee”
      shall mean the compensation committee of the Board or a subset thereof that
      is
      comprised solely of Independent Directors.

     

    “Company”
      shall mean NextWave Wireless, Inc. or
      any
      successor thereto that assumes and continues the Plan.

     

    “Director”
      shall mean a member of the Board who is not an Employee.

     

    “Effective
      Date” means the date that the Plan is adopted by the Board.

     

    “Employee”
      shall mean any employee of the Company or an Affiliate.

     

    “Exchange
      Act” shall mean the Securities Exchange Act of 1934, as amended.

     

    “Fair
      Market Value” shall mean, with respect to Shares, the closing sales price on any
      national securities exchange of a Share as of the trading day immediately prior
      to the date of determination, or if the Shares are not listed on a national
      securities exchange, the average of the closing bid and closing ask prices
      quoted in the Over-The-Counter Market Summary immediately prior to the date
      of
      determination (or if there is no trading in the Shares on such date, the next
      preceding date on which there was trading) as reported in The Wall Street
      Journal (or other reporting service approved by the Committee), unless a
      different measure of Fair Market Value is determined by the Committee. In the
      event the Shares are not publicly traded at the time a determination of its
      fair
      market value is required to be made hereunder, the determination of fair market
      value shall be made in good faith by the Committee upon the reasonable
      application of a reasonable valuation methodology.

     

    “Independent
      Director” shall mean an Independent Director as defined by NASDAQ Rule
      4200(a)(15).

     

    “Liquidity
      Event” shall mean a Change in Control.

     

    “Option”
      shall mean an option granted under Section 6(a) of the Plan. Options granted
      under the Plan may constitute nonqualified stock options, but shall not
      constitute “incentive options” for purposes of Section 422 of the
      Code.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Other
      Stock-Based Award” shall mean an award granted pursuant to Section 6(f) of the
      Plan that is not otherwise specifically provided for, the value of which is
      based in whole or in part upon the value of a Share.

     

    “Participant”
      shall mean any Employee or Director granted an Award under
      the
      Plan.

     

    “Performance
      Objectives” means the objectives, if any, established by the Committee
that
      are
      to be achieved with respect to an Award granted under this Plan, which may
      be
      described in
      terms
      of Company-wide objectives, in terms of objectives that are related to
      performance of a
      division, subsidiary, department or function within the Company or an Affiliate
      in which the Participant receiving the Award is employed or in individual or
      other terms, and which will relate to the period of time determined by the
      Committee. Which objectives to use with respect to
      an
      Award, the weighting of the objectives if more than one is used, and whether
      the
      objective
      is to be
      measured against a Company-established budget or target, an index or a peer
      group of companies, shall be determined by the Committee in its discretion
      at
      the time of grant of the Award.
      A
      Performance Objective need not be based on an increase or a positive result
      and
      may
      include,
      for example, maintaining the status quo or limiting economic
      losses.

     

    “Person”
      shall mean an individual or a corporation, limited liability company,
partnership,
      association, joint-stock company, trust, unincorporated organization, government
      or
      political subdivision thereof or other entity.

     

    “Phantom
      Share” shall mean an Award of the right to receive Shares issued at the end of a
      Restricted Period which is granted pursuant to Section 6(e) of the
      Plan.

     

    “Plan”
      means the plan described in Section 1 of the Plan and set forth in this
      document,
      as
      amended from time to time.

     

    “Restricted
      Period” shall mean any period established by the Committee with respect to an
      Award during which the Award remains subject to forfeiture, is not exercisable
      by the Participant, and/or remains subject to the occurrence of a Liquidity
      Event.

     

    “Restricted
      Share” shall mean any Share, prior to the lapse of restrictions thereon, granted
      under Sections 6(b) of the Plan.

     

    “SEC”
      shall mean the Securities and Exchange Commission, or any successor
      thereto.

     

    “Shares”
      shall mean shares of common stock of the Company, and such other securities
      or
      property as may become the subject of Awards under the Plan or into which Shares
      may be converted.

     

    SECTION
      3.   Administration.

     

    The
      Plan
      shall be administered by the Committee. A majority of the Committee shall
      constitute a quorum, and the acts of the members of the Committee who are
      present at any meeting thereof at which a quorum is present, or acts unanimously
      approved by the members of the Committee in writing, shall be the acts of the
      Committee. No member of the Committee shall
      vote or act upon any matter relating solely to himself. Grants of Awards to
      members of the
      Committee must be ratified by the Board.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    Subject
      to the terms of the Plan and applicable law, and in addition to other express
      powers and authorizations conferred on the Committee by the Plan, the Committee
      shall have full
      power and authority to: (i) designate Participants; (ii) determine the type
      or
      types of Awards
      to be
      granted to a Participant; (iii) determine the number of Shares to be covered
      by,
      or with respect to which payments, rights, or other matters are to be calculated
      in connection with, Awards; (iv) determine the terms and conditions of any
      Award; (v) determine whether, to what extent, and under what circumstances
      Awards may be settled or exercised in cash, Shares, other securities,
      other Awards or other property, or canceled, forfeited, or suspended and the
      method or
      methods
      by which Awards may be settled, exercised, canceled, forfeited, or suspended;
      (vi) determine whether, to what extent, and under what circumstances cash,
      Shares, other securities, other Awards, other property, and other amounts
      payable with respect to an Award shall
      be
      deferred either automatically or at the election of the holder thereof or of
      the
      Committee; (vii) interpret
      and administer the Plan and any instrument or agreement relating to an Award
      made under the Plan; (viii) establish, amend, suspend, or waive such rules
      and
      regulations and appoint such agents as it shall deem appropriate for the proper
      administration of the Plan; and (ix)
      make
      any other determination and take any other action that the Committee deems
      necessary
      or
      desirable for the administration of the Plan.

     

    Unless
      otherwise expressly provided in the Plan, all designations, determinations,
      interpretations, and other decisions under or with respect to the Plan or any
      Award shall be within the sole discretion of the Committee, may be made at
      any
      time and shall be final, conclusive,
      and binding upon all Persons, including the Company, any Affiliate, any
      Participant,
      any
      holder or beneficiary of any Award, any stockholder of the Company and any
      Employee or Director. No Director or member of the Committee shall be liable
      for
      any action or
      determination made in good faith with respect to the Plan or any Award granted
      hereunder and
      the
      Directors and the members of the Committee shall be entitled to indemnification
      and reimbursement by the Company and its Affiliates in respect of any claim,
      loss, damage or expense (including legal fees) arising therefrom to the full
      extent permitted by law.

     

    SECTION
      4.   Shares
      Available for Awards.
      

     

    	(a)  	
            Shares
              Available.
              Subject to adjustment as provided in Section 4(c), the number of Shares
              with respect to which Awards may be granted under the Plan shall be
              2,500,000. In the event that any outstanding Award expires, is cancelled
              or otherwise terminated, any rights to acquire Shares allocable to
              the
              unexercised or unvested portion of such Award shall again be available
              for
              the purposes of the Plan.
              In the event that Shares issued under the Plan are reacquired by the
              Company
              pursuant to any forfeiture provision, such Shares shall again be available
              for the purposes
              of the Plan. In the event a Participant pays for any Award through
              the
              delivery of previously acquired Shares, the number of Shares available
              shall be increased by the number of Shares delivered by the
              Participant.

          

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    	(b)  	
            Sources
              of Shares Deliverable Under Awards.
              Any Shares delivered pursuant to an Award may only be authorized and
              unissued Shares and, unless permitted under Delaware law, may not be
              treasury Shares. No fractional Shares shall be issued under the Plan;
              payment for any fractional Shares shall be made in
              cash.

          

     

    	(c)  	
            Adjustments.
              In
              the event that the Committee determines that any 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, issuance of warrants or other rights to
              purchase
              Shares or other securities of the Company, or other similar transaction
              or
              event affects the Shares such that an adjustment is determined by the
              Committee to be appropriate in order to prevent dilution or enlargement
              of
              the benefits or potential benefits
              intended to be made available under the Plan, then the Committee
              shall,
              in
              such manner as it may deem equitable, adjust any or all of (i) the
              number
              and type
              of Shares (or other securities or property) with respect to which Awards
              may
              be
              granted, (ii) the number and type of Shares (or other securities or
              property) subject
              to outstanding Awards, and (iii) the grant or exercise price with respect
              to
              any Award or, if deemed appropriate, make provision for a cash payment
              to
              the holder
              of an outstanding Award; provided,
              however,
              the Committee shall not take
              any action otherwise authorized under this subparagraph (c) to the
              extent
              that (i)
              such action would cause (A) the application of Section 409A of
              the Code
              to the Award or (B) create adverse tax consequences under Section 409A
              of
              the Code should either or both of those Code sections apply to the
              Award
              or (ii) except as permitted in Section 7(c), materially reduce the
              benefit
              to
              the Participant without the consent of the
              Participant.

          

     

    SECTION
      5.   Eligibility.
      

     

    Awards
      may be granted to any person who was not previously an employee or director
      of
      the Company or an Affiliate, or following a bona fide period of non-employment
      or non-service, as an inducement to the individual’s entering into employment
      with the Company or an Affiliate or as a non-employee director of the Company
      or
      an Affiliate, including grants of Awards to new employees and new directors
      in
      connection with a merger or acquisition.

     

    SECTION
      6.   Awards.
      

     

    	(a)  	
            Options.
              Subject to the provisions of the Plan, the Committee shall have the
              authority to determine the Participants to whom Options shall be granted,
              the number
              of Shares to be covered by each Option, the purchase price therefor
              and
              the
              conditions and limitations applicable to the exercise of the Option,
              including the following terms and conditions and such additional terms
              and
              conditions (including Performance Objectives), as the Committee shall
              determine, that are not inconsistent with the provisions of the
              Plan.

          

     

    	(i)  	
            Exercise
              Price.
              The purchase price per Share purchasable under an Option shall be
              determined by the Committee at the time the Option is granted,
              but
              shall not be less than 100% of the Fair Market Value per Share as of
              the
              date of determination.

          

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    	(ii)  	
            Time
              and Method of Exercise.
              The Committee shall determine the time or times
              at which an Option may be exercised in whole or in part (which
              may
              include the achievement of one or more Performance Objectives), and
              the
              method or methods by which, and the form or forms (which may include,
              without limitation, cash, check acceptable to the Company, Shares already
              owned for more than six months, outstanding Awards, other securities
              or
              other
              property, or any combination thereof, having a Fair Market Value
              on
              the exercise date equal to the relevant exercise price) in which payment
              of the exercise price with respect thereto may be
              made.

          

     

    	(iii)  	
            Option
              Repricing.
              Options under this Plan may not be repriced. However, the Committee
              may, in its absolute discretion, grant to holders of
              outstanding
              Options, in exchange for the surrender and cancellation of such Options,
              options granted under a shareholder approved plan of the Company in
              accordance with the terms thereof, which have exercise prices lower
              (or
              higher with any required consent) than the exercise price provided
              in the
              Options so surrendered and canceled and containing such other terms
              and
              conditions as the Committee may deem
              appropriate.

          

     

    	(b)  	
            Restricted
              Shares.
              Subject to the provisions of the Plan, the Committee shall have the
              authority to determine the Participants to whom Restricted Shares shall
              be
              granted,
              the number of Restricted Shares to be granted to each such Participant,
              the
              duration of the Restricted Period during which, and the conditions,
              including Performance
              Objectives, if any, under which if not achieved, the Restricted
              Shares
              may be forfeited to the Company, and the other terms and conditions
              of
              such Awards. Unless subject to the achievement of Performance Objectives
              or a special
              determination is made by the Committee as to a shorter Restricted
              Period,
              the Restricted Period shall not be less than three
              years.

          

     

    	(i)  	
            Share
              Distribution Right (“SDR”).
              To the extent provided by the Committee, in its discretion, a grant
              of
              Restricted Shares may provide that distributions made by the Company
              with
              respect to the Restricted Shares shall be subject to the same forfeiture
              and other restrictions as the Restricted
              Share and, if restricted, such distributions shall be held,
              without interest,
              until the Restricted Share vests or is forfeited with the SDR
              being
              paid or forfeited at the same time, as the case may be. Absent such
              a
              restriction on the SDRs in the Award Agreement, SDRs shall be paid
              to the
              holder of the Restricted Share without
              restriction.

          

     

    	(ii)  	
            Registration.
              Any Restricted Share may be evidenced in such manner as the Committee
              shall deem appropriate, including, without limitation, book-entry
              registration or issuance of a Share certificate or certificates. In
              the
              event any Share certificate is issued in respect of Restricted Share
              granted
              under the Plan, such certificate shall be registered in the name of
              the
              Participant and shall bear an appropriate legend referring to the terms,
              conditions, and restrictions applicable to such Restricted
              Share.

          

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    	(iii)  	
            Forfeiture
              and Restrictions Lapse.
              Except as otherwise determined by the Committee or the terms of the
              Award
              that granted the Restricted Share, upon termination of a Participant’s
              employment (as determined under criteria established by the Committee)
              for
              any reason during the applicable Restricted Period, all Restricted
              Shares
              shall be forfeited by the Participant and reacquired by the Company.
              Unrestricted Shares, evidenced in such manner as the Committee shall
              deem
              appropriate, shall be issued to the holder of Restricted Shares promptly
              after the applicable restrictions have lapsed or otherwise been
              satisfied.

          

     

    	(iv)  	
            Transfer
              Restrictions.
              During the Restricted Period, Restricted Shares will be subject to
              the
              limitations on transfer as provided in Section
              6(g)(iii).

          

     

    	(c)  	
            Bonus
              Shares.
              The Committee shall have the authority, in its discretion, to grant
              Bonus
              Shares to Participants. Each Bonus Share shall constitute a transfer
              of an
              unrestricted
              Share to the Participant, without other payment therefor, as
              additional compensation
              for the Participant’s services to the Company. Bonus Shares shall
              be
              in
              lieu of a cash bonus that otherwise would be
              granted.

          

     

    	(d)  	
            Phantom
              Shares.
              The Committee shall have the authority to grant Awards of Phantom Shares
              to Participants upon such terms and conditions as the Committee may
              determine; provided, however, any such Award shall contain terms that
              are
              designed to avoid application of Section 409A of the Code to the Award
              or
              are designed to avoid adverse tax consequences under Section 409A of
              the
              Code should that Code section apply to the Award. Phantom Shares that
              are
              vested on the date of grant shall be in lieu of a cash bonus that
              otherwise would have been granted.

          

     

    	(i)  	
            Terms
              and Conditions.
              Each Phantom Share Award shall constitute an agreement by the Company
              to
              issue or transfer a specified number of Shares or pay an amount of
              cash
              equal to the Fair Market Value of a specified number of Shares, or
              a
              combination thereof to the Participant in the future, subject to the
              fulfillment during the Restricted Period or other period set by the
              Committee of such conditions, including Performance Objectives, if
              any, as
              the Committee may specify at the date of grant. During the Restricted
              Period, the Participant shall not have any rights of ownership in the
              Phantom Shares and shall not have any right to vote such
              Shares.

          

     

    	(ii)  	
            Distributions.
              Any Phantom Shares Award may provide that an amount equal to any
              distributions made by the Company with respect to Shares during the
              Restricted Period be credited in a cash bookkeeping account (without
              interest) or that equivalent additional Phantom Shares be awarded,
              which
              account or Shares may be subject to the same restrictions as the
              underlying Award or such other restrictions as the Committee may
              determine. Notwithstanding any other provision of the Plan to the
              contrary, any award of distributions on Shares (described in the
              immediately preceding sentence) shall contain terms that (i) are designed
              to avoid application of Section 409A of the Code to the Award or (ii)
              are
              designed to avoid adverse tax consequences under Section 409A should
              that
              Code section apply.

          

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    	(e)  	
            Other
              Stock-Based Awards.
              The Committee may also grant to Participants an Other Stock-Based Award,
              which shall consist of a right which is an Award denominated or payable
              in, valued in whole or in part by reference to, or otherwise based
              on or
              related to, Shares as is deemed by the Committee to be consistent with
              the
              purposes of the Plan. Subject to the terms of the Plan, including the
              Performance Objectives, if any, applicable to such Award, the Committee
              shall determine the terms and conditions of any such Other Stock-Based
              Award. Notwithstanding any other provision of the Plan to the contrary,
              any Other Stock-Based Award granted under the Plan shall contain terms
              that (i) are designed to avoid application of Section 409A of the Code
              or
              (ii) are designed
              to avoid adverse tax consequences under Section 409A should that
              Code
              section apply to such Award.

          

     

    	(f)  	
            General
              Provisions Applicable to all Awards.
              

          

     

    	(i)  	
            Awards
              May Be Granted Separately or Together.
              Awards may, in the discretion of the Committee, be granted either alone
              or
              in addition to, in tandem with, or in substitution for any other Award
              granted under the Plan or any award granted under any other plan of
              the
              Company or any Affiliate. No Award shall be issued in tandem with another
              Award if the tandem awards would result in adverse tax consequences
              under
              Section 409A of the Code. Awards granted in addition to or in tandem
              with
              other Awards or awards granted under any other plan of the Company
              or any
              Affiliate may be granted either at the same time as or at a different
              time
              from the grant of such other Awards or
              awards.

          

     

    	(ii)  	
            Forms
              of Payment by Company Under Awards.
              Subject to the terms of the Plan and of any applicable Award Agreement,
              payments or transfers to be made by the Company or an Affiliate upon
              the
              grant, exercise or payment of an Award may be made in such form or
              forms
              as the Committee shall determine, including, without limitation, cash,
              Shares, other securities, other Awards or other property, or any
              combination thereof, and may be made in a single payment or transfer,
              in
              installments, or on a deferred basis, in each case in accordance with
              rules and procedures established by the Committee. Such rules and
              procedures may include, without limitation, provisions for the payment
              or
              crediting of reasonable interest on installment or deferred
              payments.

          

     

    	(iii)  	
            Limits
              on Transfer of Awards.

          

     

    	(A)  	
            Except
              as provided in (C) below, each Award, and each right under any Award,
              shall be exercisable only by the Participant during the Participant’s
              lifetime, or by the person to whom the Participant’s rights shall pass by
              will or the laws of descent and distribution. Notwithstanding anything
              in
              the Plan to the contrary, an Award of Options shall be transferable
              pursuant to a domestic relations order.

          

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    	(B)  	
            Except
              as provided in (C) below, no Award and no right under any such Award
              may
              be assigned, alienated, pledged, attached, sold or otherwise transferred
              or encumbered by a Participant and any such purported assignment,
              alienation, pledge, attachment, sale, transfer or encumbrance shall
              be
              void and unenforceable against the Company or any
              Affiliate.

          

     

    	(C)  	
            Notwithstanding
              anything in the Plan to the contrary, to the extent specifically provided
              by the Committee with respect to a grant, an Award of Options may be
              transferred to immediate family members or related family trusts, or
              similar entities on such terms and conditions as the Committee may
              establish.

          

     

    	(iv)  	
            Term
              of Awards.
              The term of each Award shall be for such period as may be
              determined by
              the Committee;
              provided, that
              in no event shall the term of
              any Award exceed a period of 10 years from the date of its
              grant.

          

     

    	(v)  	
            Stock
              Certificates.
              All certificates for Shares or other securities of the Company
              or any Affiliate delivered under the Plan pursuant to any
              Award
              or
              the exercise thereof shall be subject to such stop transfer orders
              and
              other
              restrictions as the Committee may deem advisable under the Plan
              or
              the rules, regulations, and other requirements of the SEC, any stock
              exchange upon which such Shares or other securities are then listed,
              and
              any applicable federal or state laws, and the Committee may cause a
              legend
              or legends to be put on any such certificates to make appropriate
              reference to such restrictions.

          

     

    	(vi)  	
            Delivery
              of Shares or other Securities and Payment by Participant of
              Consideration.
              No Shares or other securities shall be delivered pursuant to any Award
              until payment in full of any amount required to be paid pursuant to
              the
              Plan or the applicable Award Agreement (including, without limitation,
              any
              exercise price, tax payment or tax withholding pursuant to Section
              9(b) of
              the Plan) is received by the Company. Such payment may be made by such
              method or methods and in such form or forms as the Committee shall
              determine, including, without limitation, cash, reduction of a current
              payment of compensation with the consent of the Participant, Shares,
              other
              securities, other Awards or other property, withholding
              of Shares, cashless exercise with simultaneous sale, or any combination
              thereof; provided that the combined value, as determined by the
              Committee, of all cash and cash equivalents and the Fair Market
              Value of
              any such Shares or other property so tendered to the Company, as of
              the date
              of such tender, is at least equal to the full amount required to be
              paid pursuant
              to the Plan or the applicable Award Agreement to the
              Company.

          

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    	(vii)  	
            Awards
              to Non-U.S. Employees.
              To comply with the laws in other countries in which the Company or
              any of
              its Affiliates operates or has Employees or Directors, the
              Committee, in its sole discretion, shall have the power and authority
              to
              

          

     

    	(A)  	
            Determine
              which Affiliates shall be covered by the
              Plan;

          

     

    	(B)  	
            Determine
              which Employees and Directors outside the United States are eligible
              to
              participate in the Plan;

          

     

    	(C)  	
            Modify
              the terms and conditions of any Award granted to Employees and Directors
              outside the United States to comply with applicable foreign
              laws;

          

     

    	(D)  	
            Establish
              sub-plans and modify exercise procedures and other terms and procedures,
              to the extent such actions may be necessary or advisable. Any sub-plans
              and modifications to Plan terms and procedures established under this
              Section 6(f)(vii) by the Committee shall be attached to this Plan document
              as appendices; and

          

     

    	(E)  	
            Take
              any action, before or after an Award is made, that it deems advisable
              to
              obtain approval or comply with any necessary local government regulatory
              exemptions or approvals.

          

     

    	(viii)  	
            Compliance
              with 409A.
              Notwithstanding any other provision of the Plan to the contrary, any
              Award
              granted under the Plan shall contain terms that (i) are designed to
              avoid
              application of Section 409A of the Code to the Award or (ii) are designed
              to avoid adverse tax consequences under Section 409A of the Code should
              that Code Section apply to the Award.

          

     

    SECTION
      7.   Amendment
      and Termination.
      

     

    Except
      to
      the extent prohibited by applicable law and unless otherwise expressly provided
      in an Award Agreement or in the Plan:

     

    	(a)  	
            Amendments
              to the Plan.
              The Committee may amend, alter, suspend, discontinue, or terminate
              the
              Plan without the consent of any Shareholder, Participant, other holder
              or
              beneficiary of an Award, or other Person; provided, however, no such
              amendment may be made without Shareholder approval to the extent that
              such
              approval is required by (i) applicable legal requirements or (ii) the
              requirements of any securities exchange or market on which the Shares
              are
              listed.

          

     

    	(b)  	
            Amendments
              to Awards.
              The Committee may waive any conditions or rights under, amend any terms
              of, or alter any Award theretofore granted, provided no change in any
              Award (i) shall (A) cause the application of Section 409A of the Code
              to
              the Award or (B) create adverse tax consequences under Section
              409A of the Code should either or both of those Code sections
              apply to the Award or (ii) except as provided in Section 7(c), shall
              materially reduce the benefit to Participant without the consent of
              such
              Participant.

          

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    	(c)  	
            Adjustment
              of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
              Events.
              Except as provided in Section 7(b), the Committee will authorize
              adjustments in the terms and conditions of, and the criteria included
              in,
              Awards in recognition of unusual or nonrecurring events (including,
              without limitation, the events described in Section 4(c) of the Plan)
              affecting the Company, any Affiliate, or the financial statements of
              the
              Company or any Affiliate,
              or of changes in applicable laws, regulations, or accounting
              principles,
              whenever the Committee determines that such adjustments are appropriate
              in
              order
              to prevent dilution or enlargement of the benefits or potential benefits
              intended
              to be made available under the Plan.

          

     

    SECTION
      8.   Adjustments
      Upon Changes in Shares/Change in Control.
      

     

    	(a)  	
            If
              any change is made in the Shares subject to the Plan, or subject to
              any
              Award, without the receipt of consideration by the Company through
              merger,
              consolidation,
              reorganization, recapitalization, reincorporation, Share
              distribution,
              stock split, liquidating distribution, combination of Shares, exchange
              of
              Shares, change in corporate structure or other transaction not involving
              the receipt of consideration by the Company), the Plan shall be
              appropriately adjusted in the class(es) and maximum number of Shares
              subject to the Plan pursuant to, and subject to the limits of, Section
              4(c) and the outstanding Awards shall be appropriately
              adjusted in the class(es) and number of Shares and exercise price
              per
              Share subject to such outstanding Awards. Such adjustments shall be
              made
              by the 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 a Change in Control, (1) if the Company does not survive
              as
              an independent entity or organization (excluding as a subsidiary),
              the
              surviving entity or organization or an affiliate of such surviving
              entity
              or organization shall assume the Awards outstanding under the Plan
              or
              substitute similar awards (including
              an award to acquire the same consideration paid to the security
              holders
              of
              the Company in the transaction effecting the Change in Control) for
              those
              outstanding under the Plan, or (2) if the Company continues as an
              independent entity or organization (excluding as a subsidiary), such
              Awards shall continue in full force and effect. In addition, upon a
              Change
              in Control, unless the Award Agreement otherwise provides, all Awards
              shall become
              fully vested immediately prior to the Change in Control. In the event
              of
              a
              Change in Control in which the Company does not survive as an independent
              entity or organization (excluding as a subsidiary), if any surviving
              entity or organization and its affiliates refuse to assume or continue
              the
              Awards, or to substitute similar awards for those outstanding under
              the
              Plan, then the Awards not exercised or paid prior to such event shall
              terminate on such event.

          

     

    SECTION
      9.   General
      Provisions.
      

     

    	(a)  	
            No
              Rights to Awards.
              No Employee, Director or other Person shall have
              any claim to be granted any Award, and there is no obligation for
              uniformity of
              treatment of Employees, Directors, or holders or beneficiaries of Awards.
              The terms and conditions of Awards need not be the same with respect
              to
              each recipient.

          

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    	(b)  	
            Withholding.
              The Company or any Affiliate is authorized to withhold at the minimum
              statutory rate from any Award, from any payment due or transfer made
              under
              any Award or under the Plan or from any compensation or other amount
              owing
              to a Participant the amount (in cash, Shares, other securities, Shares
              that would otherwise be issued pursuant to such Award, other Awards
              or
              other property) of any applicable federal, state or local taxes payable
              in
              respect of an Award, its exercise, the lapse of restrictions thereon,
              or
              any payment or transfer under an Award or under the Plan and to take
              such
              other action as may be necessary
              in the opinion of the Company to satisfy all obligations for the
              payment
              of
              such taxes. In addition, unless the Award Agreement provides otherwise,
              the Committee may provide that the Participant may direct the Company
              to
              satisfy such Participant’s tax obligation through the “constructive”
              tender of already-owned Shares or the withholding of Shares otherwise
              to
              be acquired upon the exercise or payment of such
              Award.

          

     

    	(c)  	
            No
              Right to Employment.
              The grant of an Award shall not be construed as giving a Participant
              the
              right to be retained in the employ of the Company or any Affiliate.
              Further, the Company or an Affiliate may at any time dismiss a
              Participant
              from employment, free from any liability or any claim under the
              Plan,
              unless otherwise expressly provided in the Plan or in any Award
              Agreement.

          

     

    	(d)  	
            Governing
              Law.
              The validity, construction, and effect of the Plan and any rules and
              regulations relating to the Plan shall be determined in accordance
              with
              the laws of the State of Delaware and applicable federal
              law.

          

     

    	(e)  	
            Severability.
              If any provision of the Plan or any Award is or becomes or is deemed
              to be
              invalid, illegal, or unenforceable in any jurisdiction or as to any
              Person
              or Award, or would disqualify the Plan or any Award under any law deemed
              applicable by the Committee, such provision shall be construed or
              deemed
              amended to conform to the applicable laws, or if it cannot be construed
              or
              deemed amended without, in the determination of the Committee, materially
              altering
              the intent of the Plan or the Award, such provision shall be stricken
              as
              to
              such jurisdiction, Person or Award and the remainder of the Plan and
              any
              such Award shall remain in full force and
              effect.

          

     

    	(f)  	
            Other
              Laws.
              The Committee may refuse to issue or transfer any Shares or other
              consideration under an Award if, acting in its sole discretion, it
              determines that the issuance of transfer or such Shares or such other
              consideration might violate any
              applicable law or regulation or entitle the Company to recover the
              same
              under Section
              16(b) of the Exchange Act, and any payment tendered to the Company
              by
              a
              Participant, other holder or beneficiary in connection with the exercise
              of such Award shall be promptly refunded to the relevant Participant,
              holder or beneficiary.

          

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    	(g)  	
            No
              Trust or Fund Created.
              Neither the Plan nor the Award shall create or be construed
              to create a trust or separate fund
              of any kind or a fiduciary relationship
              between
              the Company or any Affiliate and a Participant or any other Person.
              To
              the
              extent that
              any Person
              acquires a
              right to receive
              payments from
              the Company or
              any Affiliate pursuant to an Award, such right shall be no greater
              than
              the right
              of
              any general unsecured creditor of the Company or any
              Affiliate.

          

     

    	(h)  	
            No
              Fractional Shares.
              No fractional Shares shall be issued or delivered pursuant to the Plan
              or
              any Award, and the Committee shall determine whether cash, other
              securities, or other property shall be paid or transferred in lieu
              of any
              fractional Shares or whether such fractional Shares or any rights thereto
              shall be canceled, terminated, or otherwise
              eliminated.

          

     

    	(i)  	
            Securityholders’
              Agreement.
              The Committee may condition the grant, payment and/or exercise of any
              Award upon the Participant’s already being, or becoming subject
              to, an agreement between and among holders of securities in the
              Company
              covering, inter
              alia,
              the transferability of the Shares, rights of the Company to repurchase
              such Shares and such other matters as the Committee deems appropriate;
              provided, however, any such restrictions shall automatically lapse
              upon
              the Shares becoming readily tradeable on a national securities
              market.

          

     

    	(j)  	
            Securities
              Laws Compliance.
              Unless the Shares have been registered under the Securities
              Act of 1933 (and, in the case of any Participant who may be deemed
              an
              affiliate of the Company for securities law purposes, such Shares have
              been registered under such Act for resale by such Participant), or
              the
              Company has determined that an exemption from registration is available,
              the Company may require prior to and as a condition of the exercise
              or
              payment of any Award that (i)the Participant desiring to exercise or
              receive payment such Award give the Company written notice thereof
              and
              that such notice may not be given by the Participant until 45 days
              thereafter (which time period may be waived by the Committee
              in its sole discretion) in order to allow the Company the opportunity
              to
              provide to such Participant any disclosure materials, or to make such
              filings, as may be required under federal and state securities laws
              and
              (ii) the Participant desiring to exercise or be paid such Award famish
              the
              Company with a written representation in a form prescribed by the
              Committee to the effect that such person
              is acquiring said Shares solely with a view to investment for his or
              her
              own account
              and not with a view to the resale or distribution of all or any part
              thereof,
              and that such person will not dispose of any of such Shares otherwise
              than
              in accordance with the provisions of Rule 144 under the Act unless
              and
              until either the Shares are registered under the Act or the Company
              is
              satisfied that an exemption from such registration is
              available.

          

     

    	(k)  	
            Headings.
              Headings are given to the Sections and subsections of the Plan solely
              as
              a convenience to facilitate reference. Such headings shall not be deemed
              in any
              way material or relevant to the construction or interpretation of the
              Plan
              or any
              provision thereof.

          

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    	(l)  	
            Section
              162(m) of the Code.
              Awards
              granted under this Plan shall not be “qualified performance-based
              compensation” within the meaning of Section 162(m) of the
              Code.

          

     

    	(m)  	
            No
              Guarantee of Tax Consequences.
              None of the Board, the Company nor the Committee makes any commitment
              or
              guarantee that any federal, state or local tax treatment will apply
              or be
              available to any person participating or eligible to participate
              hereunder.

          

     

    SECTION
      10.   Effective
      Date of the Plan.
      

     

    This
      Plan
      shall be effective on the date it is adopted by the Board.

     

    SECTION
      11.   Term
      of the Plan.
      

     

    No
      Award
      shall be granted under the Plan after the 10th anniversary of the effective
      date
      of the Plan and the Plan shall expire on that date unless earlier terminated
      pursuant
      to
      Section 7. However, unless otherwise expressly provided in the Plan or in an
      applicable Award
      Agreement, any Award granted prior to such expiration or termination, and the
      authority
      of or
      the Committee to amend, alter, adjust, suspend, discontinue, or terminate any
      such Award or to waive any conditions or rights under such Award, shall extend
      beyond such expiration or termination date.

     

    
      
         

      

      
        15

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