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EXHIBIT 4.9    
    

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions. 

 
 

PATENT LICENSE CONTRACT    
    

        The present Patent License Contract (hereinafter designated as the "Contract"), dated on the effective Date (as defined below), is concluded between: 

        Wavecom
S.A., a corporation with a capital of 15 107 890 euros, registered in the Nanterre Trade and Companies Register under NoB 391 838 042, regularly constituted and
validly existing under French law, having its registered office and its principal establishment at 12, boulevard Garibaldi, 92442 Issy-les-Moulineaux, France, represented by Mr
Hervé GAGNARD, Group Vice President, Corporate Development, duly authorised under the terms of this Contract, 

        Hereinafter
referred to as "Wavecom", 

        and: 

        THOMSON
Licensing S.A., a corporation with a capital of 42 000 000 euros, registered in the Nanterre Trade and Companies Register under No 383 461 191, regularly
constituted and validly existing
under French law, having its registered office and its principal establishment at 46, quai A. Le Gallo, 92100 Boulogne-Billancourt, France, represented by Mrs Béatrix DE RUSSE, acting
by virtue of the powers granted to her by Mr Didier HUCK, the company's President and Chief Executive Officer (Chairman), and hence duly authorised under the terms of this Contract, 

        Hereinafter
referred to as "THOMSON". 

        In
the presence of: 

        Alcatel
S.A., a corporation with a capital of 2 529 416 996 euros, registered in the Paris Trade and Companies Register under No 351213624, regularly constituted and
validly existing under French law, having its registered office and principal establishment at 54 rue la Boétie, 75008 Paris, France, 

        Hereinafter
referred to as ("Alcatel"), 

        Wavecom
and THOMSON being referred to, hereinafter separately or together, as a "Party" or as the "Parties", respectively. 

PREAMBLE  

        Alcatel owns and controls certain patent rights relating to cellular telephone terminals (particularly GSM and GPRS); 

        Alcatel
and THOMSON have established strategic collaboration between them in 1998, and Alcatel has acquired a certain percentage in THOMSON's share capital; 

        As
part of the foregoing strategic collaboration, Alcatel, in its own behalf and in behalf of its Subsidiaries (as defined below), granted to THOMSON, inter alia, (i) the
exclusive right to grant licenses to certain third parties under the patent rights of Alcatel and of its Subsidiaries relative to GSM Equipment (as defined below and including but not limited to the
Licensed Products (as defined below) as such and the Kits of Licensed Products (as defined below)), and (ii) if appropriate, the exclusive right to collect the amounts due in connection with
prior unlicensed use of the said patent rights by the said third parties. 

27

 

        Wavecom
designs, develops and markets hardware and software products in the field of wireless radio communication, and particularly GSM/GPRS products; 

        Wavecom
wishes to obtain the right to manufacture, have manufactured, distribute and sell the said GSM/GPRS products (but to the exclusion of the GSM Equipment) worldwide, to the extent
protected by the above-mentioned patent rights of Alcatel and/or of its Subsidiaries. 

        Wavecom
has requested THOMSON to grant a license to it, in accordance with the rules of the European telecommunications standards Institute («ETSI»), under the
foregoing patent rights of Alcatel and/or of the Alcatel Subsidiaries; 

        THOMSON
is prepared to grant such a license to Wavecom in exchange for payment by WAVECOM of a certain amount taking account the geographical coverage of the Alcatel patents and the fact
that the bulk of Wavecom sales of its GSM/GPRS products is to customers in the People's Republic of China manufacturing for the local market. 

        NOW
THEREFORE, in consideration of the premises and the faithful performance of the mutual covenants hereinafter set forth, the parties hereto hereby agree as follows: 

1.     DEFINITIONS  

        For the purpose of the present Contract, the following terms when used with a capital initial letter shall have the respective meanings set forth below: 

        1.1   "Licensed
Products" designates the Wavecom products, implementing, or making it possible to implement, all or part of the GSM Specifications (as defined below), such as
in particular modems, Modules (as defined below), subassemblies of Modules or components of Modules, completely assembled and ready for use, and the Kits of Licensed Products, compatible with and
conforming in toto or in part to the GSM Specifications (as defined below). Notwithstanding the foregoing, the foregoing definition excludes the following, which may not be considered as Licensed
Products: (i) products conforming to the UMTS (Universal Mobile Telecommunication Systems) specifications, as periodically published particularly by ETSI, and (ii) the GSM Equipment. 

        1.2   "Module"
designates a grouping of at least two electronic components assembled on a substratum in accordance with defined topography and implementing or making it
possible to implement all or part of the GSM Specifications (as defined below). 

        1.3   "Kits
of Licensed Products" designates kits of Licensed Products that are partly disassembled or completely disassembled; 

        1.4   "Essential
Patents" designates the patents and/or patent applications, including the certificates of addition and the applications for extension of the said patents in
any country whatsoever, for which the implementation of at least one of the claims in the Licensed Products uses all or part of the GSM Specifications. 

        1.5   "Licensed
Patents" designates the Essential Patents, as well as the patents and patent applications and the extension applications for the said patents in any country
whatsoever, and the utility certificates, that are or should have been declared by Alcatel to the ETSI as Essential Patents on GSM Specifications, and all of the patents compatible with or conforming
to the GSM Specifications, including but not limited to the patents and/or patent applications identified in Appendix 1 to the present Contract, (i) that belong or come to belong to
Alcatel or its Subsidiaries or are or come to be controlled by Alcatel or its Subsidiaries on the Effective Date (as defined below) of the present Contract [**], and
(ii) for which Alcatel and/or its Subsidiaries have the right, [**], to grant a license under the terms of the present Contract, without paying remuneration of any kind
to a third party (with the exception of possible compensation granted to the inventor or to the inventors of the patent concerned). 

28

 

        Appendix 1
shall be updated, by means of a list sent by THOMSON to Wavecom and at the latter's request, no more than once a year. 

        1.6   "GSM
Specifications" designates the specifications, including the upgrades, future extensions and future modifications, that (i) define a network intended both
for digitised voice and a variety of user-data services (ii) allow for connection to public switched (wireline) telephone networks, to the public data transmission networks known as
"packet switched" and (iii) are described in greater detail in documents published periodically by the ETSI. For the purpose of this Contract, shall constitute part of the GSM Specifications,
the GPRS specifications (Global Packet Radio Service), as well as the IS-136, EDGE and DCS/PCS 1800/1900 specifications; and shall not be considered as GSM Specifications the UMTS
specifications (Universal Mobile Telecommunication Systems), as periodically published, in particular by the ETSI. 

        1.7   "Improvement"
designates any patentable improvement made, during the Duration of the Contract, in the Licensed Patents or any certificate of addition legally dependent
on such patents or one or another of their claims. 

        1.8   "Subsidiary"
(or "Subsidiaries") designates any company of which more than fifty percent (50%) of the shares or partnership shares granting the right to vote for
directors or for persons performing functions similar to directors' functions is held, directly or indirectly, but this only for the period of the holding of the above-mentioned interest in the said
company or the set of the said companies. 

        1.9   "Effective
Date" designates the retroactive date of 1 January 2003. 

        1.10 "Duration
of the Contract" designates the period between the Effective Date of the Contract and 31st December 2008. 

        1.11 "Third
Party Entities" designates the independent entities that distribute the Licensed Products, particularly distributors, commission agents or resellers. 

        1.12 "Subcontractors"
designates the independent entities that manufacture the Licensed Products at the order and in behalf of WAVECOM and in connection with its detailed
specifications. 

        1.13 "GSM
Equipment" designates wireless radio communication equipment (including but not limited to cellular telephony terminals or PDAs) that incorporate the Licensed
Products as an element, as well as kits of the said GSM terminals partly disassembled or completely disassembled. Hence by virtue of the definition of the "Licensed Products", the "GSM Equipment"
includes, inter alia, the finished terminals known as "GSM/GPRS terminals", and therefore excludes modems. 

2.     WAIVER AND LICENSE GRANT  

        2.1   In
consideration for payment by Wavecom of the amount set forth in Article 3.1. below, THOMSON hereby explicitly waives, in the name and on behalf of Alcatel and
of its Subsidiaries, all claims that Alcatel and/or its Subsidiaries may have against Wavecom, its Subsidiaries, their Subcontractors, their customers, and/or their Third Party Entities, in connection
with the manufacture by Wavecom, its Subsidiaries, and/or the Subcontractors, and in connection with the use or sale by Wavecom and/or its Subsidiaries, their customers, and/or their Third Party
Entities, of the Licensed Products covered by the Licensed Patents prior to the Effective Date. 

        2.2   Subject
to the provisions of Article 7.2. relative to a limited right granted to Wavecom to assign the present Contract, THOMSON hereby grants to Wavecom and to
the Wavecom Subsidiaries a non-exclusive and non-transferable license to the Licensed Patents, for the Duration of the Contract 

29

 

(except
in case of early termination), to the exclusion of the right of granting sublicenses, and authorising Wavecom and its Subsidiaries to: 

	(i)
	use,
repair, operate, manufacture or have others manufacture the Licensed Products; and

	(ii)
	lend,
offer for sale, sell or any other way dispose of the Licensed Products worldwide. 

        To
that end, WAVECOM shall be entitled to call on any Subcontractor for manufacture of the Licensed Products and on any Third Party Entities for the supply or sale of the Licensed
Products, worldwide. 

        2.3   It
is explicitly agreed that the license granted does not extend to manufacture or sell by Wavecom or by its Subsidiaries of GSM Equipments, but is limited to the part
of the GSM Equipments corresponding to the Licensed Products. 

        2.4   The
Parties agree to apply the principle known as "exhaustion of the rights". THOMSON hereby explicitly waives, in the name and on behalf of Alcatel and of its
Subsidiaries, any claims that Alcatel and/or its Subsidiaries may have against the customers of Wavecom or customers of the Wavecom Subsidiaries in connection with Use by the said customers of the
Licensed Products covered by the Licensed Patents for the Duration of the Contract (except in case of early termination). At THOMSON's written request, Wavecom shall have to prove that the entities in
question mentioned above are indeed customers of Wavecom and/or its Subsidiaries. 

        For
the purpose of the present Article 2.4, the term "Use" refers to use of the Licensed Products, integration of the Licensed Products into and/or the combination of the Licensed
Products with GSM Equipments, and the sale or an offer to sell the said GSM Equipments. THOMSON's waiver under the present Article 2.4 applies subject to the explicit condition that, with
respect to the GSM Equipment or combinations, the said waiver vis-à-vis the above-mentioned customers is strictly limited to the Licensed Patents already
implemented in the Licensed Products. 

        2.5   Any
Improvement made by Alcatel and/or its Subsidiaries during the Duration of the Contract (except in case of early termination) and which is the object of filing of
one or several patent applications shall be included by right within the field of application of the license granted by THOMSON to Wavecom without any compensation other than the compensation provided
for under the present Contract. 

3.     PRICE—Payment determination and conditions  

        3.1   In
consideration of the waivers granted under this Contract by THOMSON and for the license granted by THOMSON in Article 2.2 above, Wavecom shall pay to THOMSON a
non-refundable, fixed and lump sum of [**] excluding taxes ([**]HT). 

        THOMSON
shall invoice Wavecom as follows: 

	•
	[**],
namely [**] excluding taxes, on the date of signature of the Contract

	•
	[**],
namely [**] excluding taxes, on [**]

	•
	[**],
namely [**] excluding taxes, on [**] 

        Wavecom
shall pay the THOMSON's invoices, including VAT at the rates applicable on the date of payment, by bank transfer to the bank account designated by THOMSON in accordance with the
information provided below (or any other future designation appearing in the THOMSON's invoices), in accordance with the following schedule, on Wavecom operation date: 

	•
	[**],
namely [**] excluding taxes, on [**], subject to receipt of the invoice on
[**] at the latest, or otherwise, [**] after receipt of the THOMSON's invoice. 

30

 

	•
	[**],
namely [**] Euros excluding taxes, on [**]

	•
	[**],
namely [**] Euros excluding taxes, on [**] 

        [**]

        The
Wavecom payments shall be made without any offsetting or recovery whatsoever as compensation. The said payments shall not be considered as made until they have been collected and
made freely available to THOMSON in the same way as cash. 

        3.2   The
amounts payable by virtue of the present Contract shall bear annual interest starting with the time of a notice to pay served by Thomson on Wavecom that has produced
no effect for a period of two (2) weeks. 

        The
applicable interest rate shall be the "taux de base" ("basic interest rate") published by the Banque Française pour le Commerce Extérieur (BFCE) plus
two percent (2%) as calculated on an overnight basis in accordance with the publication of the BFCE, starting with the due date of the payment that is due under the present Contract. 

        If
the interest rate is not published or available, Wavecom shall have to pay interest at the rate of one percent (1%) per month starting with the due date of the payment that is due
under the present Contract. 

4.     TRADEMARKS  

        No Party shall be entitled by virtue of the present Contract to use, in its publications, its advertising or otherwise, the trademarks or the trade names of the
other Party (or those of Alcatel or of its Subsidiaries) in any way or in any form whatsoever, without the other Party's prior written approval. The Licensed Products shall be marketed under the
WAVECOM trademark or trademarks, which are and shall remain its sole property, or under any other trademark that WAVECOM or the Third Party Entities might consider necessary, with the exception of the
trademarks of THOMSON, of Alcatel and of their respective Subsidiaries, or of any other trademark that might give rise to confusion with the said trademarks belonging to THOMSON, to Alcatel or to
their respective Subsidiaries. 

5.     LIMITATIONS  

	5.1
	No
provision of the Contract constitutes or may be construed as:

	(i)
	a
warranty or a representation given or made by THOMSON, Alcatel and/or an Alcatel's Subsidiary with respect to the validity or the scope of the Licensed Patents;

	(ii)
	an
obligation for THOMSON, Alcatel and/or an Alcatel Subsidiary to file a patent application, to obtain a patent or to maintain in effect or defend a patent or a patent
application; or

	(iii)
	an
obligation incumbent on THOMSON, Alcatel and/or an Alcatel Subsidiary to provide technical information or manufacturing information, or any information concerning pending and
unpublished patent applications of THOMSON, Alcatel or an Alcatel Subsidiary (with the exception of any updating of Appendix 1 supplied by THOMSON as indicated in Article 1.5.). 

        5.2   If
a patent included in the Licensed Patents is declared void or unenforceable, any payment due by Wavecom by virtue of Article 3 prior to the said event shall
remain due and shall not be reimbursed to Wavecom. 

        5.3   THOMSON
warrants that on the Effective Date and for the Duration of the Contract, Alcatel, in its own name and in the name of its Subsidiaries, has granted to THOMSON
(i) the exclusive right to grant a license under the Licensed Patents to Wavecom and to the Wavecom 

31

 

Subsidiaries
for the Licensed Products, and (ii) the exclusive right to grant the waivers mentioned in Articles 2.1 and 2.4. On the Effective Date and, subject to the explicit conditions set
forth in Articles 5.1 and 5.2, for the Duration of the Contract, THOMSON warrants the material existence of the Licensed Patents. With the exception of the foregoing, THOMSON does not make any
representation and does not grant any warranty or indemnification of any nature whatsoever, explicit or implicit, in its name or in the name of Alcatel or of one of the Alcatel Subsidiaries. 

        5.4   THOMSON,
whether in its own name and on its own behalf or in the name and in behalf of Alcatel and of its Subsidiaries, does not assume any liability of any nature
whatsoever with respect to the manufacture, use, sale or any other act of disposal by Wavecom or its Subsidiaries, its Subcontractors or Third Party Entities, purchasers or Wavecom assignees, of the
Licensed Products including or made by using the Licensed Patents. 

        5.5   No
provision of the present Contract constitutes or may be construed as a guarantee or a representation given or made by THOMSON, Alcatel or an Alcatel Subsidiary with
respect to the commercial usefulness of a Licensed Patent or of a Licensed Product. 

        5.6   No
provision of the present Contract constitutes or may be construed as a warranty or a representation given or made by THOMSON, Alcatel or an Alcatel Subsidiary that
the manufacture, use or sale of the Licensed Products does not infringe on any patent or any other intellectual property right held by any third party whatsoever. 

        5.7   THOMSON
and ALCATEL represent that they are unaware of any facts that might cast doubt on the rights that are the object of the present Contract. 

6.     DURATION AND TERMINATION OF THE CONTRACT  

        6.1   The
present Contract shall enter into effect, subject to the provisions set forth in Article 9.6. below, as of the Effective Date. Unless it is terminated before
its expiration pursuant to the provisions of Article 6, the present Contract shall remain in effect and shall produce all of its effects for the Duration of the Contract. 

        6.2   In
the event of a substantial failure on the part of one of the Parties in meeting any one whatsoever of its obligations under the present Contract, the other Party
shall be entitled to terminate the present Contract by right after a notice to perform, served by means of a notification, has produced no effect for a period of sixty (60) days, without
prejudice to any damages and interest or compensation that it might claim. Such a notification shall have to explicit mention the obligation that has not been respected and the intention of calling on
the benefit of the present provision. If THOMSON terminates the Contract in case of a substantial failure by Wavecom in meeting any one whatsoever of its obligations in connection with the present
Contract, such termination shall not affect any payments the rights to which have fallen due under this Contract (including the interest corresponding thereto) prior to such termination. 

        6.3   If
one or the other of the Parties becomes insolvent or is subjected to bankruptcy or liquidation proceedings, the other Party shall be entitled, by means of a written
notification, to terminate the present Contract immediately and by right. 

        6.4   Should
a third party not controlling Wavecom (in the meaning of Article 1.8.) as of the Effective Date of the present Contract come to take control or own Wavecom
after the Effective Date, THOMSON may, if it so wishes, immediately terminate the present Contract by right by means of a written notification. 

        6.5   At
the latest six (6) months before the end of the Duration of Contract, the Parties shall meet to jointly consider the possibility of renewing the Contract for a
duration and on financial terms that the Parties shall determine in good faith. The Parties agree to take account, in determination of the 

32

 

financial
counterpart that the Parties shall determine as being possibly due from Wavecom to THOMSON in connection with renewal of the Contract, of the circumstances existing at the time of
negotiation of the Contract renewal, particularly the number of Essential Patents declared to the ETSI by all of the holders of Essential Patents and the possible new geographical distribution of
Wavecom sales of Licensed Products. 

        6.6   In
case of termination (except early termination by THOMSON under Article 6.2 above) or at the time of expiration of the present Contract, WAVECOM shall have
(i) a period of nine (9) months starting with the date of termination or of expiration to sell the Licensed Products that it has in stock on the date of notification of such early
termination or on the date of expiration of the Contract, as long as Wavecom notifies THOMSON on the said date of the relevant details concerning such stocks, and then notify THOMSON again thereof at
the time of each sale during the said period authorised for disposing of the stocks; and (ii) a period of four (4) months to complete or to have others complete the manufacture of the
Licensed Products undergoing manufacture, and/or to make or to have others make the Licensed Products for which Wavecom has firm orders on the date of termination or of expiration of the Contract, as
long as sale of the said Licensed Products by Wavecom occurs within the period and on the conditions set forth in point (i) above. 

7.     ASSIGNMENT  

        7.1   THOMSON
may freely assign the present Contract to any person, company or entity, provided the terms and conditions of the present Contract are binding on the said
assignee and on Alcatel. Upon such an assignment, and provided the assignee has first provided Wavecom with a written commitment to comply with the terms and conditions of the present Contract,
Wavecom shall release THOMSON from any obligations under the present Contract. 

        7.2   Wavecom
may assign the present Contract to one of its Subsidiaries, provided that: 

	(i)
	Wavecom
remains personally liable to THOMSON under the present Contract, and

	(ii)
	the
designated assignee is prepared and consents to meet, and is able to meet, all of the Wavecom obligations resulting from the present Contract, and so signifies by delivery to
THOMSON, prior to the transfer, of a signed document by which the designated assignee undertakes, in a form and with contents satisfying the THOMSON demands, also to accept and to meet Wavecom's
obligations resulting from the present Contract. 

        With
the exception of the conditions stipulated in the present Article 7.2., neither the present Contract nor the license granted under the present Contract may be assigned or
transferred by Wavecom, in toto or in part. 

        7.3   At
any time during the Duration of the Contract, upon written request of THOMSON, Wavecom shall provide THOMSON with a complete list of its subsidiaries existing at that
time conforming to the definition given in article 1.9. concerning "Subsidiaries". 

8.     INFRINGEMENT  

        8.1   Neither
THOMSON, nor Alcatel nor any one of the Alcatel Subsidiaries shall be liable to Wavecom or to the Wavecom Subsidiaries for any infringement or alleged
infringement of a patent, patent application or other intellectual property right held by a third party resulting from the manufacture, sale or use of the Licensed Products by or for Wavecom or the
Wavecom Subsidiaries. 

        8.2   If
Wavecom or its Wavecom Subsidiaries become aware of any infringement whatsoever by third parties of one or several Licensed Patents, Wavecom shall have to inform
THOMSON of that fact by means of a written notice, it being understood and accepted that THOMSON shall decide, in its 

33

 

sole
judgement, as to whether it is opportune to adopt measures to remedy the said infringement and the nature of such measures. 

        8.3   No
provision of the present Contract may be construed: 

	(a)
	as
imposing any obligation on a Party or on Alcatel or on the Alcatel Subsidiaries to file proceedings or actions for infringement of Licensed Patents by virtue of these presents or
to become a defendant in any proceedings or action filed by a third party disputing or affecting the validity of one of the said Licensed Patents hereunder; or

	(b)
	as
granting, in any way whatsoever, a license or the right to copy or to imitate the appearance, commercial presentation and/or design of a product of THOMSON, Alcatel, and/or the
Alcatel Subsidiaries; or

	(c)
	as
granting, in any way whatsoever, any license whatsoever relating to the rights granted pursuant to Article 2 of this Contract to manufacture, use, sell or dispose in any
other way of a product or device other than the Licensed Products; or

	(d)
	as
granting, in any way whatsoever, a license in relation to the patent applications or patents (whether or not they cover the Licensed Products, in toto or in part) filed in the name
of THOMSON itself or of the THOMSON Subsidiaries. 

        8.4   Notwithstanding
Articles 8.2 and 8.3 (a) above, Alcatel and Thomson undertake to actively pursue their policy regarding granting licenses
vis-à-vis third parties that do not hold patent rights necessary for the design and/or manufacture and/or marketing of their own GSM/GPRS products, competing
with the Licensed Products or the GSM Equipment covered by the Licensed Patents, insofar as that does not risk impairing the interests of Thomson and/or of Alcatel. 

9.     MISCELLANEOUS PROVISIONS  

	9.1
	Notification 

        Any
notification issued in connection with the present Contract shall have to be served by registered mail with receipt. The notification shall become effective on the day following the
date of receipt by the addressee, at the following addresses: 

	 	For THOMSON, at:	 	THOMSON Licensing S.A.

46, quai Alphonse Le Gallo

92648 Boulogne Cedex—France

A l'attention de Béatrix de Russé

Fax: 33 (0) 1 41 86 56 38
	

 	

For Wavecom, at:	
 	

Wavecom S.A.

12 boulevard Garibaldi

92442 Issy-Les-Moulineaux—France

A l'attention du Directeur Général

With a copy to the Chief Legal Officer

or
to other addresses that may be indicated in advance and in writing (in the way set forth above) by one Party to the other. 

	9.2
	Amendment

        This
Contract or any provision thereof may be amended or modified only with the Parties' unanimous agreement expressed in a written document signed by a duly authorised officer of each
of the Parties and explicitly stipulating the Parties' intention to amend the present Contract. 

34

 

	9.3
	Absence
of Waiver 

        If,
at any time whatsoever, a Party chooses not to assert its rights resulting from any stipulation whatsoever of the present Contract, the said action or omission in that respect shall
not be construed as a waiver of its rights resulting from the stipulation in question or from any other stipulation of the present Contract. 

	9.4
	Construction

        The
headings of the Articles constituting this Contract have been used for the sole purpose of convenience in consulting the present Contract, and may not be taken as opposed to the
provisions contained in the said Articles. 

	9.5
	Dispute
settlement 

        The
present Contract shall be governed by, subject to and construed in accordance with French law, without application of the rules regarding conflict of laws. 

        Any
dispute regarding the present Contract, and in particular concerning the existence, validity, construction, application or failure of application of the present Contract, whether the
said dispute occurs before or after termination of the present Contract, shall be settled by amicable settlement by the Parties insofar as that is possible. Failing such a settlement, any dispute
between the Parties shall be settle solely by the Tribunal de Grande Instance (High Court) of Paris, even in case of the existence of several defendants or of third party notice. 

	9.6
	Governmental
Approvals 

        In
case the present Contract or any clause or aspect whatsoever hereof is subject to a control, authorisation and/or consent of a governmental ministry, department, agency or entity, the
present Contract shall not enter into effect or acquire binding force until the time at which the controls, approvals or authorisations have been carried out with a favourable result by each of the
governmental entities having or asserting jurisdiction in this connection. In case the competent government entity has refused to issue or been unable to issue a favourable opinion with respect to one
of the provisions or to any aspect whatsoever of the present Contract before the ninetieth (90th) day following the date of
signature hereof by the Parties having signed last, the present Contract shall be considered as void ab initio, as if it had not been signed by either Party hereof. 

	9.7
	Binding
Force 

        The
present Contract shall produce its effects and be binding on THOMSON, Alcatel and Wavecom, as well as their successors or assigns authorised in accordance with Article 7
hereof. 

	9.8
	Partial
Invalidity of the Present Contract 

        If
a part or a clause of the present Contract becomes inapplicable or conflicts with the law applicable at any place whatsoever, the validity of the remaining provisions or clauses shall
not be affected by the said situation. The said inapplicable provision or clause shall then be replaced, by the Parties' mutual consent, by another applicable provision or clause that corresponds in
its effects or comes as close as possible to the effect of the said inapplicable provision or clause. 

	9.9
	Entire
Agreement 

        The
present Contract, together with its Appendix, (i) constitutes the entire understanding between the Parties, (ii) replaces and cancels all prior representations,
warranties and agreements between the Parties relating hereto, and (iii) is concluded in accordance with the said understandings. 

35

 

	9.10
	Administrative
Expenses 

        Wavecom
shall bear all of the expenses and charges resulting from the payments made by virtue of the present Contract, including in particular the stamp fees, taxes and deductions, as
well as all additional expenses relating to authorisations and any other administrative expenses connected with the grant of licenses, to the exclusion of payment of the annual amounts, expenses and
costs necessary for maintenance of the validity of the Licensed Patents, which are and shall be borne by Alcatel, insofar Alcatel decides to pay the said annual amounts, expenses and maintenance
costs. 

	9.11
	Confidentiality 

        As
further set forth below, Wavecom and THOMSON undertake to maintain confidentiality with respect to the terms and conditions of the present Contract for the Duration of the Contract
and during the two (2) years following termination or expiration of the Contract. 

        Wavecom
and THOMSON shall not disclose information concerning the content of the present Contract except to the employees of Wavecom, of the Wavecom Subsidiaries, of THOMSON or of the
THOMSON Subsidiaries, and only insofar as necessary for purposes of proper performance of the Contract. 

        Furthermore
THOMSON shall be entitled to disclose information, insofar as that is required under its agreement signed with Alcatel, to Alcatel subject to observance by the latter of the
confidentiality obligations contained in the present Contract. Furthermore Wavecom, THOMSON and Alcatel shall be entitled to disclose information to their independent sworn Auditors. Pursuant to
Article 9.6. of the present Contract, Wavecom and THOMSON are authorised to disclose basic information to the national authorities insofar as such disclosure is required to obtain a necessary
authorisation. Notwithstanding any provision to the contrary in the present Contract, the Parties acknowledge that WAVECOM is listed on the NASDAQ and on the New Market, and that it is released from
its confidentiality obligation to the extent required for compliance with the said exchanges' rules and regulations, or with any market rules and regulations whatsoever. 

        On
the occasion of signature of the present Contract, at Wavecom's request, Wavecom and Alcatel shall jointly draw up a press release aimed at strengthening the principles presiding over
its negotiation. 

        IN
WITNESS WHEREOF, each of the Parties to the present Contract and Alcatel have had the present Contract signed in five (5) originals, two (2) for THOMSON, two for Wavecom
and one for Alcatel, by their representatives or authorised agents duly empowered for that purpose. 

36

 

        Appendix 1            Extract
from the list of Licensed Patents on the Effective Date 

	THOMSON LICENSING S.A.	 	WAVECOM S.A.
	 	 	 
	By: /s/  BÉATRIX DE RUSSÉ      
 Béatrix de Russé	 	By: /s/  HERVÉ GAGNARD      
 Hervé Gagnard
	Acting by virtue of the powers granted to her by Mr Didier HUCK, the Company's President and Chief Executive Officer	 	Group Vice President,

Corporate Development
	
 (name and status)	 	
 (name and status)
	 	 	 
	Paris
France                                        
   2003	 	Issy-Les-Moulineaux,
France                                     2003
	
(place and date)	 	
(place and date)
	 	 	 
	
For acceptance
 ALCATEL	
 	

 
	 	 	 
	By: /s/  ANDRÉ-PASCAL CHAUVIN      
 André-Pascal Chauvin	 	 
	Vice President Licensing	 	 
	Paris,
France                                        
   2003	 	 

37

 
Appendix 1  

To
the Patents License Contract 

Extract
from the list of Patents under Concession on the Effective Date 

**Confidential
Materials omitted and filed separately with the

Securities and Exchange Commission.** 

38

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EXHIBIT 4.9

PATENT LICENSE CONTRACTQuickLinks
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Exhibit 4.1    
    

AVAILENT FINANCIAL, INC.  

 2003 EQUITY INCENTIVE PLAN  

        The Availent Financial, Inc. 2003 Equity Incentive Plan (the "Plan") was adopted by the Board of Directors of Availent Financial, Inc., Delaware
corporation (the "Company"), effective as of January 1, 2003, subject to approval by the Company's stockholders. 

ARTICLE 1

PURPOSE  

        The purpose of the Plan is to foster and promote the long-term financial success of the Company and its Subsidiaries and materially increase the value
of the Company and its Subsidiaries by (a) encouraging the long-term commitment of the Employees, Consultants, and Outside Directors of the Company and its Subsidiaries,
(b) motivating performance of the Employees, Consultants, and Outside Directors of the Company and its Subsidiaries by means of long-term performance related incentives,
(c) encouraging and providing Employees, Consultants, and Outside Directors of the Company and its Subsidiaries with an opportunity to obtain an ownership interest in the Company,
(d) attracting and retaining outstanding Employees, Consultants, and Outside Directors by providing incentive compensation opportunities, and (e) enabling participation by Employees,
Consultants, and Outside Directors in the long-term growth and financial success of the Company and its Subsidiaries. 

        With
respect to Reporting Participants, the Plan and all transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 promulgated
under the Securities Exchange Act of 1934 (the "1934 Act"). To the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed null and void ab initio, to the extent permitted by law and deemed advisable by the Committee. 

ARTICLE 2

DEFINITIONS  

        For the purpose of the Plan, unless the context requires otherwise, the following terms shall have the meanings indicated: 

        2.1     "Award"
means the grant of any Incentive Stock Option, Nonqualified Stock Option, or Restricted Stock whether granted singly or in combination (each
individually referred to herein as an "Incentive"). 

        2.2     "Award
Agreement" means a written agreement between a Participant and the Company which sets out the terms of the grant of an Award. 

        2.3     "Award
Period" means the period set forth in the Award Agreement with respect to a Stock Option during which the Stock Option may be exercised, which shall
commence on the Date of Grant and expire at the time set forth in the Award Agreement. 

        2.4     "Board"
means the board of directors of the Company. 

        2.5     "Change
in Control" shall mean any of the following: (i) any consolidation, merger or share exchange of the Company in which the Company is not the
continuing or surviving corporation or pursuant to which shares of the Company's Common Stock would be converted into cash, securities or other property, other than a consolidation, merger or share
exchange of the Company in which the holders of the Company's Common Stock immediately prior to such transaction have the same proportionate ownership of Common Stock of the surviving corporation
immediately after such transaction; (ii) any sale, lease, exchange or other transfer (excluding 

1

 

transfer
by way of pledge or hypothecation) in one transaction or a series of related transactions, of all or substantially all of the assets of the Company; (iii) the stockholders of the
Company approve any plan or proposal for the liquidation or dissolution of the Company; (iv) the cessation of control (by virtue of their not constituting a majority of directors) of the Board
by the individuals (the "Continuing Directors") who (x) at the date of this Plan were directors or (y) become directors after the date of this Plan and whose election or nomination for
election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then in office who were directors at the date of this Plan or whose election or
nomination for election was previously so approved; (v) the acquisition of beneficial ownership (within the meaning of Rule 13d-3 under the 1934 Act) of an aggregate of 50%
or more of the voting power of the Company's outstanding voting securities by any person or group (as such term is used in Rule 13d-5 under the 1934 Act) who beneficially owned less
than 50% of the voting power of the Company's outstanding voting securities on the date of this Plan; provided, however, that notwithstanding the
foregoing, an acquisition shall not constitute a Change in Control hereunder if the acquiror is (x) a trustee or other fiduciary holding securities under an employee benefit plan of the Company
and acting in such capacity, (y) a Subsidiary of the Company or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of voting securities of the Company or (z) any other person whose acquisition of shares of voting securities is approved in advance by a majority of the Continuing Directors; or
(vi) in a Title 11 bankruptcy proceeding, the appointment of a trustee or the conversion of a case involving the Company to a case under Chapter 7. 

        2.6     "Code"
means the Internal Revenue Code of 1986, as amended. 

        2.7     "Committee"
means the committee appointed or designated by the Board to administer the Plan in accordance with Article 3 of this Plan. 

        2.8     "Common
Stock" means the common stock, par value $0.01 per share, which the Company is currently authorized to issue or may in the future be authorized to
issue, or any securities into which or for which the common stock of the Company may be converted or exchanged, as the case may be, pursuant to the terms of this Plan. 

        2.9     "Company"
means Availent Financial, Inc., Delaware corporation, and any successor entity. 

        2.10   "Consultant"
means any person performing advisory or consulting services for the Company or a Subsidiary, with or without compensation, to whom the
Company chooses to grant an Award in accordance with the Plan, provided that bona fide services must be rendered by such person and such services shall
not be rendered in connection with the offer or sale of securities in a capital raising transaction. 

        2.11   "Corporation"
means any entity that (i) is defined as a corporation under Code Section 7701 and (ii) is the Company or is in an
unbroken chain of corporations (other than the Company) beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing a majority
of the total combined voting power of all classes of stock in one of the other corporations in the chain. For purposes of clause (ii) hereof, an entity shall be treated as a "corporation" if it
satisfies the definition of a corporation under Section 7701 of the Code. 

        2.12   "Date
of Grant" means the effective date on which an Award is made to a Participant as set forth in the applicable Award Agreement; provided, however,
that solely for purposes of Section 16 of the 1934 Act and the rules and regulations promulgated thereunder, the Date of Grant of an Award shall be the date of stockholder approval of the Plan
if such date is later than the effective date of such Award as set forth in the Award Agreement. 

2

 

        2.13   "Employee"
means common law employee (as defined in accordance with the Regulations and Revenue Rulings then applicable under Section 3401(c) of
the Code) of the Company or any Subsidiary of the Company. 

        2.14   "Fair
Market Value" means, as of a particular date, (a) if the shares of Common Stock are listed on a national securities exchange, the closing
sales price per share of Common Stock on the consolidated transaction reporting system for the principal securities exchange for the Common Stock on that date, or, if there shall have been no such
sale so reported on that date, on the last preceding date on which such a sale was so reported, (b) if the shares of Common Stock are not so listed but are quoted on the Nasdaq National Market
System, the closing sales price per share of Common Stock on the Nasdaq National Market System on that date, or, if there shall have been no such sale so reported on that date, on the last preceding
date on which such a sale was so reported, (c) if the Common Stock is not so listed or quoted, the mean between the closing bid and asked price on that date, or, if there are no quotations
available for such date, on the last preceding date on which such quotations shall be available, as reported by Nasdaq, or, if not reported by Nasdaq, by the National Quotation Bureau, Inc., or
(d) if none of the above is applicable, such amount as may be determined by the Board (acting on the advice of an Independent Third Party, should the Board elect in its sole discretion to
utilize an Independent Third Party for this purpose), in good faith, to be the fair market value per share of Common Stock. 

        "Independent
Third Party" means an individual or entity independent of the Company having experience in providing investment banking or similar appraisal or valuation services and with
expertise generally in the valuation of securities or other property for purposes of this Plan. The Board may utilize one or more Independent Third Parties. 

        2.15   "Incentive
"is defined in Section 2.1 hereof. 

        2.16   "Incentive
Stock Option" means an incentive stock option within the meaning of Section 422 of the Code, granted pursuant to this Plan. 

        2.17   "Nonpublicly
Traded" means not listed on a national securities exchange registered with the Securities and Exchange Commission or designated for trading
on the Nasdaq National Market. 

        2.18   "Nonqualified
Stock Option" means a nonqualified stock option, granted pursuant to this Plan, to which Section 421 of the Code does not apply. 

        2.19   "Option
Price" means the price which must be paid by a Participant upon exercise of a Stock Option to purchase a share of Common Stock. 

        2.20   "Outside
Director" means a director of the Company who is not an Employee. 

        2.21   "Participant"
means an Employee, Consultant, or Outside Director of the Company or a Subsidiary to whom an Award is granted under this Plan. 

        2.22   "Plan"
means this Availent Financial, Inc. 2003 Equity Incentive Plan, as amended from time to time. 

        2.23   "Reporting
Participant" means a Participant who is subject to the reporting requirements of Section 16 of the 1934 Act. 

        2.24   "Restricted
Stock" means shares of Common Stock issued or transferred to a Participant pursuant to Section 6.5 of this Plan which are subject to
restrictions or limitations set forth in this Plan and in the related Award Agreement. 

3

 

        2.25   "Retirement"
means any Termination of Service solely due to retirement upon or after attainment of age sixty-five (65), or permitted early
retirement as determined by the Committee. 

        2.26   "Stock
Option" means a Nonqualified Stock Option or an Incentive Stock Option. 

        2.27   "Subsidiary"
means (i) any corporation in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the
last corporation in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of stock in one of the other corporations in the chain, (ii) any
limited partnership, if the Company or any corporation described in item (i) above owns a majority of the general partnership interest and a majority of the limited partnership interests
entitled to vote on the removal and replacement of the general partner, and (iii) any partnership or limited liability company, if the partners or members thereof are composed only of the
Company, any corporation listed in item (i) above or any limited partnership listed in item (ii) above. "Subsidiaries" means more than one of any such corporations, limited partnerships,
partnerships or limited liability companies. 

        2.28   "Termination
of Service" occurs when a Participant who is an Employee or a Consultant of the Company or any Subsidiary shall cease to serve as an Employee
or Consultant of the Company and its Subsidiaries, for any reason; or, when a Participant who is an Outside Director of the Company or a Subsidiary shall cease to serve as a director of the Company
and its Subsidiaries for any reason. Except as may be necessary or desirable to comply with applicable federal or state law, a "Termination of Service" shall not be deemed to have occurred when a
Participant who is an Employee becomes a Consultant or an Outside Director or vice versa. If, however, a Participant who is an Employee and who has an Incentive Stock Option ceases to be an Employee
but does not suffer a Termination of Service, and if that Participant does not exercise the Incentive Stock Option within the time required under Code section 422 upon ceasing to be an
Employee, the Incentive Stock Option shall thereafter become a Nonqualified Stock Option. 

        2.29   "Total
and Permanent Disability" means a Participant is qualified for long-term disability benefits under the Company's or Subsidiary's
disability plan or insurance policy; or, if no such plan or policy is then in existence or if the Participant is not eligible to participate in such plan or policy, that the Participant, because of a
physical or mental condition resulting from bodily injury, disease, or mental disorder which prevents the Participant from performing his or her duties of employment for a period of six
(6) continuous months, as determined in good faith by the Committee, based upon medical reports or other evidence satisfactory to the Committee; provided
that, with respect
to any Incentive Stock Option, Total and Permanent Disability shall have the meaning given it under the rules governing Incentive Stock Options under the Code. 

ARTICLE 3

ADMINISTRATION  

        3.1    General Administration; Establishment of Committee.    Subject to the terms of this Article 3, the Plan
shall be administered by the Board or such committee of the Board as is designated by the Board to administer the Plan (the "Committee"). The Committee shall consist of not fewer than two persons. Any
member of the Committee may be removed at any time, with or without cause, by resolution of the Board. Any vacancy occurring in the membership of the Committee may be filled by appointment by the
Board. At any time there is no Committee to administer the Plan, any references in this Plan to the Committee shall be deemed to refer to the Board. 

        Membership
on the Committee shall be limited to those members of the Board who are "outside directors" under Section 162(m) of the Code and "non-employee directors" as
defined in Rule 16b-3 promulgated under the 1934 Act. The Committee shall select one of its members to act as its Chairman. A majority of the Committee shall constitute a quorum,
and the act of a majority of the 

4

 

members
of the Committee present at a meeting at which a quorum is present shall be the act of the Committee. 

        3.2    Designation of Participants and Awards.    

        (a)   The
Committee or the Board shall determine and designate from time to time the eligible persons to whom Awards will be granted and shall set forth in each related Award
Agreement, where applicable, the Award Period, the Date of Grant, and such other terms, provisions, limitations, and performance requirements, as are approved by the Committee, but not inconsistent
with the Plan. The Committee shall determine whether an Award shall include one type of Incentive or two or more Incentives granted in combination or two or more Incentives granted in tandem (that is,
a joint grant where exercise of one Incentive results in cancellation of all or a portion of the other Incentive). Although the members of the Committee shall be eligible to receive Awards, no member
of the Committee shall participate in any decisions regarding any Award granted hereunder to such member. All decisions with respect to any Award, and the terms and conditions thereof, to be granted
under the Plan to any member of the Committee shall be made solely and exclusively by the other members of the Committee, or if such member is the only member of the Committee, by the Board. 

        (b)   Notwithstanding
Subsection 3.2(a), the Board may, in its discretion and by a resolution adopted by the Board, authorize one or more officers of the Company (an
"Authorized Officer") to (i) designate one or more Employees as eligible persons to whom Awards will be granted under the Plan and (ii) determine the number of shares of Common Stock
that will be subject to such Awards; provided, however, that the resolution of the Board granting such authority shall (x) specify the total number of shares of Common Stock that may be made
subject to the Awards, (y) set forth the price or prices (or a formula by which such price or prices may be determined) to be paid for the purchase of the Common Stock subject to such Awards,
and (z) not authorize an officer to designate himself as a recipient of any Award. The Authorized Officer shall notify the Committee in writing of the persons designated to receive such Awards,
the type of Award or the type of Incentives subject to the Award, the Date of Grant, the number of shares of Common Stock that will be subject to such Awards, and the purchase price to be paid for
such shares. If authorized to do so in the Board's written resolution, the Authorized Officer shall cause the Company to execute an Award Agreement with the Participant, subject to the Committee's
ratification of such terms of an Award as required by law. 

        Within
an administratively reasonable time after receipt of the Authorized Officer's written notice of one or more Awards, the Committee shall authorize or ratify the grant of such
Awards and shall prescribe all other terms of such Awards pursuant to its authority set forth in Subsection 3(a). 

        3.3    Authority of the Committee.    The Committee, in its discretion, shall (i) interpret the Plan,
(ii) prescribe, amend, and rescind any rules and regulations necessary or appropriate for the administration of the Plan, (iii) establish performance goals for an Award and certify the
extent of their achievement, and (iv) make such other determinations or certifications and take such other action as it deems necessary or advisable in the administration of the Plan. Any
interpretation, determination, or other action made or taken by the Committee shall be final, binding, and conclusive on all interested parties. The Committee's discretion set forth herein shall not
be limited by any provision of the Plan, including any provision which by its terms is applicable notwithstanding any other provision of the Plan to the contrary. 

        The
Committee may delegate to officers of the Company, pursuant to a written delegation, the authority to perform specified functions under the Plan. Any actions taken by any officers of
the Company pursuant to such written delegation of authority shall be deemed to have been taken by the Committee. 

        With
respect to restrictions in the Plan that are based on the requirements of Rule 16b-3 promulgated under the 1934 Act, Section 422 of the Code,
Section 162(m) of the Code, the rules of 

5

 

any
exchange or inter-dealer quotation system upon which the Company's securities are listed or quoted, or any other applicable law, rule or restriction (collectively, "applicable law"), to the extent
that any such restrictions are no longer required by applicable law, the Committee shall have the sole discretion and authority to grant Awards that are not subject to such mandated restrictions
and/or to waive any such mandated restrictions with respect to outstanding Awards. 

ARTICLE 4

ELIGIBILITY  

        Any Employee (including an Employee who is also a director or an officer), Outside Director, or Consultant of the Company whose judgment, initiative, and efforts
contributed or may be expected to contribute to the successful performance of the Company is eligible to participate in the Plan; provided that only Employees of a Corporation shall be eligible to
receive Incentive Stock Options. The Committee, upon its own action, may grant, but shall not be required to grant, an Award to any Employee, Outside Director, or Consultant of the Company or any
Subsidiary. Awards may be granted by the Committee at any time and from time to time to new Participants, or to then Participants, or to a greater or lesser number of Participants, and may include or
exclude previous Participants, as the Committee shall determine. Except as required by this Plan, Awards granted at different times need not contain similar provisions. The Committee's determinations
under the Plan (including without limitation determinations of which Employees, Outside Directors, or Consultants, if any, are to receive Awards, the form, amount and timing of such Awards, the terms
and provisions of such Awards and the agreements evidencing same) need not be uniform and may be made by it selectively among Participants who receive, or are eligible to receive, Awards under the
Plan. 

ARTICLE 5

SHARES SUBJECT TO PLAN  

        5.1    Number Available for Awards.    Subject to adjustment as provided in Articles 11 and 12, the maximum number of
shares of Common Stock that may be delivered pursuant to Awards granted under the Plan is 5,000,000 shares. Shares to be issued may be made available from authorized but unissued Common Stock, Common
Stock held by the Company in its treasury, or Common Stock purchased by the Company on the open market or otherwise. During the term of this Plan, the Company will at all times reserve and keep
available the number of shares of Common Stock that shall be sufficient to satisfy the requirements of this Plan. 

        5.2    Reuse of Shares.    Subject to Section 5.2(c), if, and to the extent: 

        (a)   A
Stock Option shall expire or terminate for any reason without having been exercised in full, or in the event that a Stock Option is exercised or settled in a manner
such that some or all of the shares of Common Stock relating to the Stock Option are not issued to the Participant (or beneficiary) (including as the result of the use of shares for withholding
taxes), the shares of Common Stock subject thereto which have not become outstanding shall (unless the Plan shall have sooner terminated) become available for issuance under the Plan; in addition,
with respect to any share-for-share exercise or cashless exercise pursuant to Section 8.3 or otherwise, only the "net" shares issued shall be deemed to have become
outstanding for purposes of the Plan as a result thereof. 

        (b)   If
shares of Restricted Stock under the Plan are forfeited for any reason, such shares of Restricted Stock shall (unless the Plan shall have sooner terminated) become
available for issuance under the Plan; provided, however, that if any dividends paid with respect to shares of Restricted Stock were paid to the Participant prior to the forfeiture thereof, such
shares shall not be reused for grants or awards. 

6

 

        (c)   In
no event shall the number of shares of Common Stock subject to Incentive Stock Options exceed, in the aggregate, 5,000,000 shares of Common Stock plus shares subject
to Incentive Stock Options which are forfeited or terminated, or expire unexercised. 

ARTICLE 6

GRANT OF AWARDS  

        6.1    In General.    The Company shall execute an Award Agreement with a Participant after the Committee approves the
issuance of an Award. Any Award granted pursuant to this Plan must be granted within ten (10) years after the date of adoption of this Plan. The Plan shall be submitted to the Company's
stockholders for approval; however, the Committee may grant Awards under the Plan prior to the time of stockholder approval. Any such Award granted prior to such stockholder approval shall be made
subject to such stockholder approval. The grant of an Award to a Participant shall not be deemed either to entitle the Participant to, or to disqualify the Participant from, receipt of any other Award
under the Plan. 

        6.2    Stock Options.    The grant of an Award of Stock Options shall be authorized by the Committee and shall be
evidenced by an Award Agreement setting forth: (i) the Incentive or Incentives being granted, (ii) the total number of shares of Common Stock subject to the Incentive(s),
(iii) the Option Price, (iv) the Award Period, (v) the Date of Grant, and (vi) such other terms, provisions, limitations, and performance objectives, as are approved by the
Committee, but not inconsistent with the Plan. 

        6.3    Option Price.    The Option Price for any share of Common Stock which may be purchased under a Nonqualified
Stock Option for any share of Common Stock may be less than, equal to, or greater than the Fair Market Value of the share on the Date of Grant. The Option Price for any share of Common Stock which may
be purchased under an Incentive Stock Option must be at least equal to the Fair Market Value of the share on the Date of Grant; if an Incentive Stock Option is granted to an Employee who owns or is
deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company (or any parent
or Subsidiary), the Option Price shall be at least 110% of the Fair Market Value of the Common Stock on the Date of Grant. 

        6.4    Maximum ISO Grants.    The Committee may not grant Incentive Stock Options under the Plan to any Employee which
would permit the aggregate Fair Market Value (determined on the Date of Grant) of the Common Stock with respect to which Incentive Stock Options (under this and any other plan of the Company and its
Subsidiaries) are exercisable for the first time by such Employee during any calendar year to exceed $100,000. To the extent any Stock Option granted under this Plan which is designated as an
Incentive Stock Option exceeds this limit or otherwise fails to qualify as an Incentive Stock Option, such Stock Option (or any such portion thereof) shall be a Nonqualified Stock Option. In such
case, the Committee shall designate which stock will be treated as Incentive Stock Option stock by causing the issuance of a separate stock certificate and identifying such stock as Incentive Stock
Option stock on the Company's stock transfer records. 

        6.5    Restricted Stock.    If Restricted Stock is granted to or received by a Participant under an Award (including a
Stock Option), the Committee shall set forth in the related Award Agreement: (i) the number of shares of Common Stock awarded, (ii) the price, if any, to be paid by the Participant for
such Restricted Stock and the method of payment of the price, (iii) the time or times within which such Award may be subject to forfeiture, (iv) specified performance goals of the
Company, a Subsidiary, any division thereof or any group of Employees of the Company, or other criteria, which the Committee determines must be met in order to remove any restrictions (including
vesting) on such Award, and (v) all other terms, limitations, restrictions, and conditions of the Restricted Stock, which shall be consistent with this Plan. The provisions of Restricted Stock
need not be the same with respect 

7

 

to
each Participant. If the Committee establishes a purchase price for an Award of Restricted Stock, the Participant must accept such Award within a period of thirty (30) days (or such shorter
period as the Committee may specify) after the Date of Grant by executing the applicable Award Agreement and paying such purchase price. 

        (a)   Legend on Shares.    Each Participant who is awarded or receives Restricted Stock shall be issued a stock
certificate or certificates in respect of such shares of Common Stock. Such certificate(s) 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 Stock, substantially as provided in Section 15.11 of the Plan. 

        (b)   Restrictions and Conditions.    Shares of Restricted Stock shall be subject to the following restrictions and
conditions: 

          (i)  Subject
to the other provisions of this Plan and the terms of the particular Award Agreements, during such period as may be determined by the Committee commencing on
the Date of Grant or the date of exercise of an Award (the "Restriction Period"), the Participant shall not be permitted to sell, transfer, pledge or assign shares of Restricted Stock. Except for
these limitations, the Committee may in its sole discretion, remove any or all of the restrictions on such Restricted Stock whenever it may determine that, by reason of changes in applicable laws or
other changes in circumstances arising after the date of the Award, such action is appropriate. 

         (ii)  Except
as provided in sub-paragraph (i) above or in the applicable Award Agreement, the Participant shall have, with respect to his or her Restricted
Stock, all of the rights of a stockholder of the Company, including the right to vote the shares, and the right to receive any dividends thereon. Certificates for shares of Common Stock free of
restriction under this Plan shall be delivered to the Participant promptly after, and only after, the Restriction Period shall expire without forfeiture in respect of such shares of Common Stock or
after any other restrictions imposed in such shares of Common Stock by the applicable Award Agreement or other agreement have expired. Certificates for the shares of Common Stock forfeited under the
provisions of the Plan and the applicable Award Agreement shall be promptly returned to the Company by the forfeiting Participant. Each Award Agreement shall require each Participant, in connection
with the issuance of a certificate for Restricted Stock, shall endorse such certificate in blank or execute a stock power in form satisfactory to the Company in blank and deliver such certificate and
executed stock power to the Company. 

        (iii)  The
Restriction Period of Restricted Stock shall commence on the Date of Grant or the date of exercise of an Award, as specified in the Award Agreement, and, subject
to Article 12 of the Plan, unless otherwise established by the Committee in the Award Agreement setting forth the terms of the Restricted Stock, shall expire upon satisfaction of the conditions
set forth in the Award Agreement; such conditions may provide for vesting based on (i) length of continuous service, (ii) achievement of specific business objectives,
(iii) increases in specified indices, (iv) attainment of specified growth rates, or (v) other comparable measurements of Company performance, as may be determined by the Committee
in its sole discretion. 

        (iv)  Except
as otherwise provided in the particular Award Agreement, upon Termination of Service for any reason during the Restriction Period, the nonvested shares of
Restricted Stock shall be forfeited by the Participant. In the event a Participant has paid any consideration to the Company for such forfeited Restricted Stock, the Committee shall specify in the
Award Agreement that either (i) the Company shall be obligated to, or (ii) the Company may, in its sole discretion, elect to, pay to the Participant, as soon as practicable after the
event causing forfeiture, in cash, an amount equal to the lesser of the total 

8

 

consideration
paid by the Participant for such forfeited shares or the Fair Market Value of such forfeited shares as of the date of Termination of Service, as the Committee, in its sole discretion
shall select. Upon any forfeiture, all rights of a Participant with respect to the forfeited shares of the Restricted Stock shall cease and terminate, without any further obligation on the part of the
Company. 

        6.6    Maximum Individual Grants.    No Participant may receive during any fiscal year of the Company Awards covering
an aggregate of more than 500,000 shares of Common Stock. 

ARTICLE 7

AWARD PERIOD; VESTING  

        7.1    Award Period.    

        (a)   Subject
to the other provisions of this Plan, the Committee shall specify in the Award Agreement the Award Period for a Stock Option. No Stock Option granted under the
Plan may be exercised at any time after the end of its Award Period. The Award Period for any Stock Option shall be no more than ten (10) years from the Date of Grant of the Stock Option.
However, if an Employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of
stock of the Company (or any parent or Subsidiary) and an Incentive Stock Option is granted to such Employee, the Award Period of such Incentive Stock Option (to the extent required by the Code at the
time of grant) shall be no more than five (5) years from the Date of Grant. 

        (b)   In
the event of a Termination of Service of a Participant, the Award Period for a Stock Option shall be reduced or terminated in accordance with the Award Agreement. 

        7.2    Vesting.    The Committee, in its sole discretion, may determine that an Incentive will be immediately vested
in whole or in part, or that all or any portion may not be vested until a date, or dates,
subsequent to its Date of Grant, or until the occurrence of one or more specified events, subject in any case to the terms of the Plan. If the Committee imposes conditions upon vesting, then,
subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of the Incentive may be vested. 

ARTICLE 8

EXERCISE OF INCENTIVE  

        8.1    In General.    The Committee, in its sole discretion, may determine that a Stock Option will be immediately
exercisable, in whole or in part, or that all or any portion may not be exercised until a date, or dates, subsequent to its Date of Grant, or until the occurrence of one or more specified events,
subject in any case to the terms of the Plan. If a Stock Option is exercisable prior to the time it is vested, the Common Stock obtained on the exercise of the Stock Option shall be Restricted Stock
which is subject to the applicable provisions of the Plan and the Award Agreement. If the Committee imposes conditions upon exercise, then subsequent to the Date of Grant, the Committee may, in its
sole discretion, accelerate the date on which all or any portion of the Stock Option may be exercised. No Stock Option may be exercised for a fractional share of Common Stock. The granting of a Stock
Option shall impose no obligation upon the Participant to exercise that Stock Option. 

        8.2    Securities Law and Exchange Restrictions.    In no event may an Incentive be exercised or shares of Common
Stock be issued pursuant to an Award if a necessary listing or quotation of the shares of Common Stock on a stock exchange or inter-dealer quotation system or any registration under state or federal
securities laws required under the circumstances has not been accomplished. 

9

   
        8.3    Exercise of Stock Option.    

        (a)    Notice and Payment.    Subject to such administrative regulations as the Committee may from time to time adopt,
a Stock Option may be exercised by the delivery of written notice to the Committee setting forth the number of shares of Common Stock with respect to which the Stock Option is to be exercised and the
date of exercise thereof (the "Exercise Date") which shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon. On the Exercise Date,
the Participant shall deliver to the Company consideration with a value equal to the total Option Price of the shares to be purchased, payable as provided in the Award Agreement, which may provide for
payment in any one or more of the following ways: (a) cash or check, bank draft, or money order payable to the order of the Company, (b) Common Stock (including Restricted Stock) owned
by the Participant on the Exercise Date, valued at its Fair Market Value on the Exercise Date, and which the Participant has not acquired from the Company within six (6) months prior to the
Exercise Date, (c) if the Common Stock is no longer Nonpublicly Traded, by delivery (including by FAX) to the Company or its designated agent of an executed irrevocable option exercise form
together with irrevocable instructions from the Participant to a broker or dealer, reasonably acceptable to the Company, to sell certain of the shares of Common Stock purchased upon exercise of the
Stock Option or to pledge such shares as collateral for a loan and promptly deliver to the Company the amount of sale or loan proceeds necessary to pay such purchase price, and/or (d) in any
other form of valid consideration that is acceptable to the Committee in its sole discretion. In the event that shares of Restricted Stock are tendered as consideration for the exercise of a Stock
Option, a number of shares of Common Stock issued upon the exercise of the Stock Option with an Option Price equal to the value of Restricted Stock used as consideration therefor shall be subject to
the same restrictions and provisions as the Restricted Stock so tendered. 

        (b)    Issuance of Certificate.    Except as otherwise provided in Section 6.5 hereof (with respect to shares
of Restricted Stock) or in the applicable Award Agreement, upon payment of all amounts due from the Participant, the Company shall cause certificates for the Common Stock then being purchased to be
delivered as directed by the Participant (or the person exercising the Participant's Stock Option in the event of his death) at its principal business office promptly after the Exercise Date; provided
that if the Participant has exercised an Incentive Stock Option, the Company may at its option retain physical possession of the certificate evidencing the shares acquired upon exercise until the
expiration of the holding periods described in Section 422(a)(1) of the Code. The obligation of the Company to deliver shares of Common Stock shall, however, be subject to the condition that,
if at any time the Committee shall determine in its discretion that the listing, registration, or qualification of the Stock Option or the Common Stock upon any securities exchange or inter-dealer
quotation system or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with, the Stock Option or the
issuance or purchase of shares of Common Stock thereunder, the Stock Option may not be exercised in whole or in part unless such listing, registration, qualification, consent, or approval shall have
been effected or obtained free of any conditions not reasonably acceptable to the Committee. 

        (c)    Failure to Pay.    Except as may otherwise be provided in an Award Agreement, if the Participant fails to pay
for any of the Common Stock specified in such notice or fails to accept delivery thereof, that portion of the Participant's Stock Option and right to purchase such Common Stock may be forfeited by the
Company. 

        8.4    Disqualifying Disposition of Incentive Stock Option.    If shares of Common Stock acquired upon exercise of an
Incentive Stock Option are disposed of by a Participant prior to the expiration of either two (2) years from the Date of Grant of such Stock Option or one (1) year from the transfer of
shares of Common Stock to the Participant pursuant to the exercise of such Stock Option, or in any other disqualifying disposition within the meaning of Section 422 of the Code, such
Participant shall notify the Company in writing of the date and terms of such disposition. A disqualifying disposition by 

10

 

a
Participant shall not affect the status of any other Stock Option granted under the Plan as an Incentive Stock Option within the meaning of Section 422 of the Code. 

ARTICLE 9

AMENDMENT OR DISCONTINUANCE  

        Subject to the limitations set forth in this Article 9, the Board may at any time and from time to time, without the consent of the Participants, alter,
amend, revise, suspend, or discontinue the Plan in whole or in part; provided, however, that no amendment which requires stockholder approval in order for the Plan and Incentives awarded under the
Plan to continue to comply with Sections 162(m), 421, and 422 of the Code, including any successors to such Sections, shall be effective unless such amendment shall be approved by the requisite vote
of the stockholders of the Company entitled to vote thereon. Any such amendment shall, to the extent deemed necessary or advisable by the Committee, be applicable to any outstanding Incentives
theretofore granted under the Plan, notwithstanding any contrary provisions contained in any Award Agreement. In the event of any such amendment to the Plan, the holder of any Incentive outstanding
under the Plan shall, upon request of the Committee and as a condition to the exercisability thereof, execute a conforming amendment in the form prescribed by the Committee to any Award Agreement
relating thereto. Notwithstanding anything contained in this Plan to the contrary, unless required by law, no action contemplated or permitted by this Article 9 shall adversely affect any
rights of Participants or obligations of the Company to Participants with respect to any Incentive theretofore granted under the Plan without the consent of the affected Participant. 

ARTICLE 10

TERM  

        The Plan shall be effective from the date that this Plan is approved by the Board. Unless sooner terminated by action of the Board, the Plan will terminate on
December 31, 2012, but Incentives granted before that date will continue to be effective in accordance with their terms and conditions. 

ARTICLE 11

CAPITAL ADJUSTMENTS  

        In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other
property), recapitalization, stock split, reverse stock split, rights offering, reorganization, merger, consolidation, split-up, spin-off, split-off, combination,
subdivision, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other
similar corporate transaction or event affects the Common Stock such that an adjustment is determined by the Committee to be appropriate to prevent the 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 the (i) the number of shares and type of
Common Stock (or the securities or property) which thereafter may be made the subject of Awards, (ii) the number of shares and type of Common Stock (or other securities or property) subject to
outstanding Awards, (iii) the number of shares and type of Common Stock (or other securities or property) specified as the annual per-participant limitation under Section 6.6
of the Plan, (iv) the Option Price of each outstanding Award, and (v) the amount, if any, the Company pays for forfeited shares of Common Stock in accordance with Section 6.5;  provided
however, that the number of shares of Common Stock (or other securities or property) subject to any Award shall always be a whole number. In
lieu of the foregoing, if deemed appropriate, the Committee may make provision for a cash payment to the holder of an outstanding Award. Notwithstanding the foregoing, no such adjustment or cash
payment shall be made or authorized to the extent that such adjustment or cash payment would cause the Plan or any Stock Option to violate Code Section 422. Such adjustments shall be made in 

11

 

accordance
with the rules of any securities exchange, stock market, or stock quotation system to which the Company is subject. 

        Upon
the occurrence of any such adjustment or cash payment, the Company shall provide notice to each affected Participant of its computation of such adjustment or cash payment which
shall be conclusive and shall be binding upon each such Participant. 

ARTICLE 12

RECAPITALIZATION, MERGER AND CONSOLIDATION  

        12.1    No Effect on Company's Authority.    The existence of this Plan and Incentives granted hereunder shall not
affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other changes in the Company's capital
structure and its business, or any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common Stock
or the rights thereof (or any rights, options, or warrants to purchase same), or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or
any other corporate act or proceeding, whether of a similar character or otherwise. 

        12.2    Conversion of Incentives Where Company Survives.    Subject to any required action by the stockholders, if the
Company shall be the surviving or resulting corporation in any merger, consolidation or share exchange, any Incentive granted hereunder shall pertain to and apply to the securities or rights
(including cash, property, or assets) to which a holder of the number of shares of Common Stock subject to the Incentive would have been entitled. 

        12.3    Exchange or Cancellation of Incentives Where Company Does Not Survive.    In the event of any merger,
consolidation or share exchange pursuant to which the Company is not the surviving or resulting corporation, there shall be substituted for each share of Common Stock subject to the unexercised
portions of outstanding Stock Options, that number of shares of each class of stock or other securities or that amount of cash, property, or assets of the surviving, resulting or consolidated company
which were distributed or distributable to the stockholders of the Company in respect to each share of Common Stock held by them, such outstanding Stock Options to be thereafter exercisable for such
stock, securities, cash, or property in accordance with their terms. 

        Notwithstanding
the foregoing, however, all Stock Options may be canceled by the Company, in its sole discretion, as of the effective date of any such reorganization, merger,
consolidation, or share exchange, or of any proposed sale of all or substantially all of the assets of the Company, or of any dissolution or liquidation of the Company, by either: 

        (a)   giving
notice to each holder thereof or his personal representative of its intention to cancel such Stock Options and permitting the purchase during the thirty
(30) day period next preceding such effective date of any or all of the shares subject to such outstanding Stock Options, including in the Board's discretion some or all of the shares as to
which such Stock Options would not otherwise be vested and exercisable; or 

        (b)   paying
the holder thereof an amount equal to a reasonable estimate of the difference between the net amount per share payable in such transaction or as a result of such
transaction, and the exercise price per share of such Stock Option (hereinafter the "Spread"), multiplied by the number of shares subject to the Stock Option. In cases where the shares constitute, or
would after exercise, constitute Restricted Stock, the Company, in its discretion may include some or all of those shares in the calculation of the amount payable hereunder. In estimating the Spread,
appropriate adjustments to give effect to the existence of the Stock Options shall be made, such as deeming the Stock Options to have been exercised, with the Company receiving the exercise price
payable thereunder, and treating the shares receivable upon exercise of the Options as being 

12

 

outstanding
in determining the net amount per share. In cases where the proposed transaction consists of the acquisition of assets of the Company, the net amount per share shall be calculated on the
basis of the net amount receivable with respect to shares of Common Stock upon a distribution and liquidation by the Company after giving effect to expenses and charges, including but not limited to
taxes, payable by the Company before such liquidation could be completed. 

        (c)   An
Award that by its terms would be fully vested or exercisable upon such a reorganization, merger, consolidation, share exchange, proposed sale of all or substantially
all of the assets of the Company or dissolution or liquidation of the Company will be considered vested or exercisable for purposes of Section 12.3(a) hereof. 

ARTICLE 13

LIQUIDATION OR DISSOLUTION  

        Subject to Section 12.3 hereof, in case the Company shall, at any time while any Incentive under this Plan shall be in force and remain unexpired,
(i) sell all or substantially all of its property, or (ii) dissolve, liquidate, or wind up its affairs, then each Participant shall be entitled to receive, in lieu of each share of
Common Stock of the Company which such Participant would have been entitled to receive under the Incentive, the same kind and amount of any securities or assets as may be issuable, distributable, or
payable upon any such sale, dissolution, liquidation, or winding up with respect to each share of Common Stock of the Company. If the Company shall, at any time prior to the expiration of any
Incentive, make any partial distribution of its assets, in the nature of a partial liquidation, whether payable in cash or in kind (but excluding the distribution of a cash dividend payable out of
earned surplus and designated as such) then in such event the Option Prices then in effect with respect to each Stock Option shall be reduced, on the payment date of such distribution, in proportion
to the percentage reduction in the tangible book value of the shares of the Company's Common Stock (determined in accordance with generally accepted accounting principles) resulting by reason of such
distribution. 

ARTICLE 14

INCENTIVES IN SUBSTITUTION FOR

INCENTIVES GRANTED BY OTHER ENTITIES  

        Incentives may be granted under the Plan from time to time in substitution for similar instruments held by employees or directors of a corporation, partnership,
or limited liability company who become or are about to become Employees or Outside Directors of the Company or any Subsidiary as a result of a merger or consolidation of the employing corporation
with the Company, the acquisition by the Company of equity of the employing entity, or any other similar transaction pursuant to which the Company becomes the successor employer. The terms and
conditions of the substitute Incentives so granted may vary from the terms and conditions set forth in this Plan to such extent as the Committee at the time of grant may deem appropriate to conform,
in whole or in part, to the provisions of the Incentives in substitution for which they are granted. 

ARTICLE 15

MISCELLANEOUS PROVISIONS  

        15.1    Investment Intent.    The Company may require that there be presented to and filed with it by any Participant
under the Plan, such evidence as it may deem necessary to establish that the Incentives granted or the shares of Common Stock to be purchased or transferred are being acquired for investment and not
with a view to their distribution. 

        15.2    Nonpublicly Traded Common Stock.    In the event a Participant receives, as Restricted Stock or pursuant to
the exercise of a Stock Option, shares of Common Stock that are Nonpublicly Traded 

13

 

(as
defined herein), the Committee may impose restrictions and conditions on the transfer or other disposition of those shares. The restrictions and conditions may be reflected in the Award Agreement
or in a separate stockholders' agreement. 

        15.3    No Right to Continued Employment.    Neither the Plan nor any Incentive granted under the Plan shall confer
upon any Participant any right with respect to continuance of employment by the Company or any Subsidiary. 

        15.4    Indemnification of Board and Committee.    No member of the Board or the Committee, nor any officer or
Employee of the Company acting on behalf of the Board or the Committee, shall be
personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board and the Committee, each officer of the Company,
and each Employee of the Company acting on behalf of the Board or the Committee shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action,
determination, or interpretation. 

        15.5    Effect of the Plan.    Neither the adoption of this Plan nor any action of the Board or the Committee shall be
deemed to give any person any right to be granted an Award or any other rights except as may be evidenced by an Award Agreement, or any amendment thereto, duly authorized by the Committee and executed
on behalf of the Company, and then only to the extent and upon the terms and conditions expressly set forth therein. 

        15.6    Compliance With Other Laws and Regulations.    Notwithstanding anything contained herein to the contrary, the
Company shall not be required to sell or issue shares of Common Stock under any Incentive if the issuance thereof would constitute a violation by the Participant or the Company of any provisions of
any law or regulation of any governmental authority or any national securities exchange or inter-dealer quotation system or other forum in which shares of Common Stock are quoted or traded (including
without limitation Section 16 of the 1934 Act and Section 162(m) of the Code); and, as a condition of any sale or issuance of shares of Common Stock under an Incentive, the Committee may
require such agreements or undertakings, if any, as the Committee may deem necessary or advisable to assure compliance with any such law or regulation. The Plan, the grant and exercise of Incentives
hereunder, and the obligation of the Company to sell and deliver shares of Common Stock, shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any
government or regulatory agency as may be required. 

        15.7    Lock-up Agreement.    The Company may require that an Award Agreement include a provision
requiring a Participant to agree that in connection with an underwritten public offering of Common Stock, upon the request of the Company or the principal underwriter managing such public offering, no
shares of Common Stock received by the Participant under such Award Agreement may be sold, offered for sale or otherwise disposed of without the prior written consent of the Company or such
underwriter, as the case may be, for at least sixty (60) days after the effectiveness of the registration statement filed in connection with such offering, or such longer period of time as the
Board may determine, if all of the Company's directors and officers agree to be similarly bound. The obligations contained in such an Award Agreement, if applicable, shall remain effective for all
underwritten public offerings with respect to which the Company has filed a registration statement on or before the date five (5) years after the closing of the Company's initial public
offering, provided, however, that this Section 15.7 shall cease to apply to any such shares of Common Stock sold to the public pursuant to an effective registration statement or an exemption
from the registration requirements of the Securities Act in a transaction that complied with the terms of the applicable Award Agreement. 

        15.8    Tax Requirements.    The Company or, if applicable, any Subsidiary (for purposes of this Section 15.8,
the term "Company" shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts paid in cash or other form in
connection with the Plan, any Federal, 

14

 

state,
local, or other taxes required by law to be withheld in connection with an Award granted under this Plan. The Company may, in its sole discretion, also require the Participant receiving shares
of Common Stock issued under the Plan to pay the Company the amount of any taxes that the Company is required to withhold in connection with the Participant's income arising with respect to the Award.
Such payments shall be required to be made when requested by the Company and may be required to be made prior to the delivery of any certificate representing shares of Common Stock. Such payment may
be made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding
obligations of the Company; (ii) if the Company, in its sole discretion, so consents in writing, the actual delivery by the exercising Participant to the Company of shares of Common Stock that
the Participant has not acquired from the Company within six (6) months prior to the date of exercise, which shares so delivered have an aggregate Fair Market Value that equals or exceeds (to
avoid the issuance of fractional shares under (iii) below) the required tax withholding payment; (iii) if the Company, in its sole discretion, so consents in writing, the Company's
withholding of a number of shares to be delivered upon the exercise of the Stock Option, which shares so withheld have an aggregate fair market value that equals (but does not exceed) the required tax
withholding payment; or (iv) any combination of (i), (ii), or (iii). The Company may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the
Company to the Participant. The Committee may in the Award Agreement impose any additional tax requirements or provisions that the Committee deems necessary or desirable. 

        15.9    Stock Option Assignability.    Incentive Stock Options may not be transferred, assigned, pledged, hypothecated
or otherwise conveyed or encumbered other than by will or the laws of descent and distribution and may be exercised during the lifetime of the Participant only by the Participant or the Participant's
legally authorized representative, and each Award Agreement in respect of an Incentive Stock Option shall so provide. The designation by a Participant of a beneficiary will not constitute a transfer
of the Stock Option. The Committee may waive or modify any limitation contained in the preceding sentences of this Section 15.9 that is not required for compliance with Section 422 of
the Code. 

        Except
as otherwise provided herein, Nonqualified Stock Options may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than by will or the laws
of descent and distribution. The Committee may, in its discretion, authorize all or a portion of a Nonqualified Stock Option granted to a Participant to be on terms which permit transfer by such
Participant to (i) the spouse (or former spouse), children or grandchildren of the Participant ("Immediate Family Members"), (ii) a trust or trusts for the exclusive benefit of such
Immediate Family Members, (iii) a partnership in which the only partners are (1) such Immediate Family Members and/or (2) entities which are controlled by Immediate Family
Members, (iv) an entity exempt from federal income tax pursuant to Section 501(c)(3) of the Code or any successor provision, or (v) a split interest trust or pooled income fund
described in Section 2522(c)(2) of the Code or any successor provision, provided that (x) there shall be no consideration for any such
transfer, (y) the Award Agreement pursuant to which such Nonqualified Stock Option is granted must be approved by the Committee and must expressly provide for transferability in a manner
consistent with this Section, and (z) subsequent transfers of transferred
Nonqualified Stock Options shall be prohibited except those by will or the laws of descent and distribution. 

        Following
any transfer, any such Nonqualified Stock Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that
for purposes of Articles 8, 9, 11, 13 and 15 hereof the term "Participant" shall be deemed to include the transferee. The events of Termination of Service shall continue to be applied with respect to
the original Participant, following which the Nonqualified Stock Options shall be exercisable by the transferee only to the extent and for the periods specified in the Award Agreement. The Committee
and the Company shall have no obligation to inform any transferee of a Nonqualified Stock Option of any expiration, 

15

 

termination,
lapse or acceleration of such Stock Option. The Company shall have no obligation to register with any federal or state securities commission or agency any Common Stock issuable or issued
under a Nonqualified Stock Option that has been transferred by a Participant under this Section 15.9. 

        15.10    Use of Proceeds.    Proceeds from the sale of shares of Common Stock pursuant to Incentives granted under
this Plan shall constitute general funds of the Company. 

        15.11    Legend.    Each certificate representing shares of Restricted Stock issued to a Participant shall bear the
following legend, or a similar legend deemed by the Company to constitute an appropriate notice of the provisions hereof (any such certificate not having such legend shall be surrendered upon demand
by the Company and so endorsed): 

        On
the face of the certificate: 

"Transfer
of this stock is restricted in accordance with conditions printed on the reverse of this certificate." 

        On
the reverse: 

"The
shares of stock evidenced by this certificate are subject to and transferable only in accordance with that certain Availent Financial, Inc. 2003 Equity Incentive Plan, a copy of which is
on file at the principal office of the Company in Dallas, Texas. No transfer or pledge of the shares evidenced hereby may be made except in accordance with and subject to the provisions of said Plan.
By acceptance of this certificate, any holder, transferee or pledgee hereof agrees to be bound by all of the provisions of said Plan." 

        The
following legend shall be inserted on a certificate evidencing Common Stock issued under the Plan if the shares were not issued in a transaction registered under the applicable
federal and state securities laws: 

"Shares
of stock represented by this certificate have been acquired by the holder for investment and not for resale, transfer or distribution, have been issued pursuant to exemptions from the
registration requirements of applicable state and federal securities laws, and may not be offered for sale, sold or transferred other than pursuant to effective registration under such laws, or in
transactions otherwise in compliance with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may rely upon an opinion of counsel
satisfactory to the Company." 

        A
copy of this Plan shall be kept on file in the principal office of the Company in Dallas, Texas. 

        IN
WITNESS WHEREOF, the Company has caused this instrument to be executed as of January 1, 2003, by its Chief Executive Officer and Secretary pursuant to prior action taken by the
Board. 

	 	 	 	AVAILENT FINANCIAL, INC.,
 a Delaware corporation
	

 	

 	
 	

By:	

/s/  PATRICK A. MCGEENEY      

	 	 	 	Name:	Patrick A. McGeeney
	 	 	 	Title:	Chief Executive Officer
	

Attest:	
 	

 	

 
	

    	

 	
 	

 	

 
	/s/  WOODY CONRADT      
	 	 	 
	Name:	Woody Conradt	 	 	 
	Title:	Secretary	 	 	 

16

QuickLinks

Exhibit 4.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]