Document:

exv10w51

 

Exhibit 10.51

Employee: David Gagne

CHANGE OF CONTROL AGREEMENT

Dated: January 1, 2007

     The terms of this Change of Control Agreement dated January 1, 2007 (“Agreement”) by and
between XATA Corporation (“XATA” or the “Company”) and Employee (named above) set forth certain
payment provisions in the event that Employee is terminated after a Change of Control (defined
below). This Agreement does not change the employment relationship of XATA and Employee, which is
terminable at will by either party.

     1. XATA and Employee agree that if there is a Change of Control and within six months
following such Change of Control:

     (a) Employee is terminated without Cause; or

     (b) Employee terminates his employment for Good Reason;

then Employee shall thereupon become immediately vested without restriction in all
of the Award Shares issued to him under his Matching Restricted Stock Award Agreement and
his Non-Qualified Stock Option Agreement dated January 1, 2007. In addition, Employee shall
be entitled to the payments and other benefits set forth in Section 2 of this Agreement.

     2. XATA shall continue to pay Employee’s salary at the annual rate in effect immediately prior
to the date of termination for a period of 12 months; provided, however, that such payments shall
be reduced by the amount of Employee’s income from salary, wages, tips, and other remuneration
related to full time or part time employment or services. The salary shall be paid at the end of
each calendar month in the same manner as if Employee had remained employed. In addition, the
Company shall reimburse the Employee for outplacement expenses up to $10,000, which amount shall be
payable for services provided within the first twelve months following the date of termination upon
submission to the Company of appropriate documentation evidencing Employee’s payment for such
services.

     3. The following definitions apply for purposes of this Agreement:

     Cause. A termination of employment shall be for “Cause” only if the Employee:

	 	(i)	 	has been convicted of a felony;
	 
	 	(ii)	 	has engaged in an act or acts of personal dishonesty intended
to result in substantial personal enrichment of the Employee at the expense of
XATA;

 

 

	 	(iii)	 	has intentionally engaged in other conduct that is
demonstrably and materially injurious to XATA, monetarily or otherwise;
	 
	 	(iv)	 	has committed a fraud;
	 
	 	(v)	 	has committed an act involving dishonesty or disloyalty with
respect to XATA or any of its subsidiaries or affiliates;
	 
	 	(vi)	 	has engaged in conduct tending to bring XATA or any of its
subsidiaries or affiliates into substantial public disgrace or disrespect; or
	 
	 	(vii)	 	has acted or failed to act in a manner involving gross
negligence or willful misconduct with respect to XATA or any of its
subsidiaries or affiliates.

     Change of Control. A Change of Control has occurred if there has been:

	 	(i)	 	A sale, consolidation, merger, acquisition or affiliation which
results in the Employee not remaining as a executive vice president, sales and
marketing, with essentially the same duties and responsibilities as prior to
the sale, consolidation, merger, acquisition or affiliation; or
	 
	 	(ii)	 	A sale, consolidation, merger, or acquisition in which XATA
becomes accountable to, or a part of, a newly created company or controlling
organization where at least 50% of the members of the Board of the newly
created company or controlling organization were not members of XATA’s Board
immediately prior to such sale, consolidation, merger, or acquisition.

     Termination by Employee for Good Reason. If Employee terminates his employment
due to any of the following actions or failures by XATA, such termination shall be deemed to
be for “Good Reason:”

	 	(i)	 	Assignment to Employee by XATA of duties which are inconsistent
with Employee’s position, duties, responsibilities, and status with XATA,
except in connection with the termination of his employment for Disability (as
defined below) or Cause.
	 
	 	(ii)	 	Any failure to XATA to continue in effect, or to provide a
comparable substitute for, any benefit plan or arrangement (including, without
limitation, any profit sharing plan, executive supplemental medical plan, group
life insurance plan, and medical, dental, accident, and disability plans but
excluding incentive plans or arrangements) in which Employee is participating
as in effect on the date hereof (or any other plans providing Employee with
substantially similar benefits) (hereinafter referred to as “Benefit Plans”),
or by the taking of any action by XATA that would adversely affect Employee’s
participation in or materially reduce Employee’s benefits under any such
Benefit Plan or deprive Employee of

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	 	 	 	any material fringe benefit enjoyed by Employee as in effect on the date
hereof.

	 	(iii)	 	Any failure by XATA to continue in effect, or to provide a
comparable substitute for any incentive plan or arrangement (including, without
limitation, any incentive compensation plan, long-term incentive plan, bonus or
contingent bonus arrangements or credits, the right to receive performance
awards, or similar incentive compensation benefits) in which Employee is
participating, or is eligible to participate (hereinafter referred to as
“Incentive Plans”), or the taking of any action by XATA which would adversely
affect Employee’s participation in any such Incentive Plans.

     4. Conditions. The Company’s obligation to make payments under Section 2 hereof is
expressly conditioned upon receipt from Employee of a full and complete release of the Company from
any liability to Employee (other than the obligation of the Company to pay the amounts under
Section 2). In addition, the Company’s obligations under Section 2 shall terminate if Employee
breaches his Confidentiality, Invention and Non-Compete Agreement with XATA, dated January 1, 2007.

3exv10w52

 

Exhibit 10.52

NON-QUALIFIED STOCK OPTION AGREEMENT

THIS AGREEMENT, made this 1st day of January, 2007, by and between XATA CORPORATION, a
Minnesota corporation (the “Company”), and David Gagne (“Optionee”).

     WITNESSETH, THAT:

     WHEREAS, the Company wishes to grant this stock option to Optionee.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained,
the parties hereto hereby agree as follows:

1. Grant of Option:

The Company hereby grants to Optionee, on the date set forth above the right and option
(hereinafter called “the option”) to purchase all or any part an aggregate of 150,000 shares of
Common Stock, par value $0.01 per share, at the price of $5.32 per share, on the terms and
conditions set forth herein. This option is not intended to be an incentive stock option
within the meaning of Section 422 of the Internal Revenue Code of 986, as amended (the “Code”).

2. Duration and Exercisability

	 	(a)	 	This option shall in all events terminate at 5 p.m. Minneapolis, Minnesota time on
January 1, 2017, which is ten (10) years after the date of grant. Subject to the other
terms and conditions set forth herein, this option may be exercised by Optionee in
cumulative installments as follows on the specified date(s):

	 	 	 
	 	 	Cumulative number of
	On or after each of	 	shares as to which
	the following dates	 	option is exercisable
	January 1, 2008
	 	50,000
	January 1, 2009
	 	100,000
	January 1, 2010
	 	150,000

	 	(b)	 	During the lifetime of Optionee, the option shall be exercisable only by Optionee and
shall not be assignable or transferable by Optionee, other than by will or the laws of
descent and distribution.

3. Manner of Exercise

	 	(a)	 	The option can be exercised only by Optionee or other proper party by delivering
within the option period written notice to the Company at its principal office. The
notice shall state the

 

 

	 	 	 	number of shares as to which the option is being exercised and be accompanied by payment in
full of the option price for all shares designated in the notice.
	 
	 	(b)	 	Optionee may pay the option price in cash, by check (bank check, certified check or
personal check), by money order, or with the approval of the Company (i) by delivering to
the Company for cancellation Common Shares of the Company with a fair market value as of
the date of exercise equal to the option price or the portion thereof being paid by
tendering such shares, or (ii) by delivering to the Company a combination of cash and
Common Shares of the Company with an aggregate fair market value and a principal amount
equal to the option price. For these purposes, the fair market value of the Company’s
Common Shares as of any date shall be reasonably determined by the Company pursuant to the
Plan.

4. Investment Representations

Unless a registration statement under the Securities Act of 1933, as amended, is in effect with
respect to the Award Shares on the date of issuance of the Award Shares, Employee will be deemed
to have made the following investment representation on the date of issuance:

Employee intends to acquire the Award Shares for Employee’s own
account for investment purposes and not with a view to resale in
connection with any distribution thereof. Employee has no present
intention, and is not a party to any agreement or arrangement, to
resell or dispose of any of the Award Shares. Employee understands
and agrees that the Company has no obligation to register the Award
Shares and that the Award Shares will not be registered under the
Securities Act of 1933, as amended (the “Act”), or under applicable
state securities laws, on the grounds that the Award Shares are being
issued in a transaction not involving a public offering and that,
consequently, such transaction is exempt from registration under the
Act and the state securities laws. Employee further understands and
agrees that the Award Shares may not be sold, transferred or otherwise
disposed of except pursuant to an effective registration statement or
appropriate exemption from registration under the foregoing securities
acts. Accordingly, Employee acknowledges that the Company is not
required to recognize any transfer of the Award Shares if such
transfer would result in violation of any federal or state law
regarding the offering or sale of securities. The Company may place a
stop transfer order on its stock records with respect to the Award
Shares, and the certificate(s) for the Award Shares may contain
substantially the following legend:

“The securities evidenced by this certificate have not been registered either under any applicable
federal law and rules or applicable state law and rules. No sale, offer to sell, or transfer of
these securities may be made unless a registration statement under the securities Act of 1933, as
amended, and any applicable state law with respect to such securities is then in

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effect or an exemption from the registration requirements of such law is then, in fact, applicable
to such securities.

5. Miscellaneous

	 	(a)	 	Optionee shall have none of the rights of a shareholder with respect to shares
subject to this option until such shares shall have been issued to Optionee upon exercise
or this option.
	 
	 	(b)	 	The exercise of all or any parts of this option shall only be effective at such time
that the sale of Common Shares pursuant to such exercise will not violate any state or
federal securities or other laws.
	 
	 	(c)	 	If there shall be any change in the Common Shares of the Company through merger,
consolidation, reorganization, recapitalization, dividend in the form of stock (of
whatever amount), stock split or other change in the corporate structure of the Company,
and all or any portion of the option shall then be unexercised and not yet expired, then
appropriate adjustments in the outstanding option shall be made by the Company, in order
to prevent dilution or enlargement of option rights. Such adjustments shall include,
where appropriate, changes in the number of shares of Common Shares and the price per
share subject to the outstanding option.
	 
	 	(d)	 	The Company shall at all times during the term of the option reserve and keep
available such number of shares as will be sufficient to satisfy the requirements of this
Agreement.
	 
	 	(e)	 	In order to provide the Company with the opportunity to claim the benefit of any
income tax deduction which may be available to it upon the exercise of the option, and in
order to comply with all applicable federal or state income tax laws or regulations, the
Company may take such action as it deems appropriate to insure that, if necessary, all
applicable federal or state payroll, withholding, income or other taxes are withheld or
collected from Optionee. Optionee may elect to satisfy his federal and state income tax
withholding obligations upon exercise of this option by (i) having the Company withhold a
portion of the shares of Common Stock otherwise to be delivered upon exercise of such
option having a fair market value equal to the amount of federal and state income tax
required to be withheld upon such exercise, in accordance with the rules of the Committee,
or (ii) delivering to the Company shares of its Common Stock other than the shares
issuable upon exercise of such option with a fair market value equal to such taxes, in
accordance with the rules of the Committee.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day
and year first above written.

	 	 	 	 	 	 	 
	 	 	XATA Corporation
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Optionee Signature
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Optionee Print Name

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