Document:

Exhibit 10.9 Form of Non-Qualified Stock Option Agreement for Directors pursuant to 2002 Long-Term Incentive and Stock Option Plan

Exhibit 10.9
Xata Corporation

NON-QUALIFIED STOCK OPTION AGREEMENT

THIS AGREEMENT, made this ____ day of _________, ____, by and between XATA CORPORATION, a Minnesota corporation (the “Company”), and _____________ (“Optionee”).

WITNESSETH, THAT:

WHEREAS, the Company pursuant to its 2002 Long-Term Incentive and Stock Option Plan 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 _________ shares of Common Stock, par value $0.01 per share, at the price of $______ 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 1986, as amended (the “Code”).

2.    Duration and Exercisability    
		
	(a) 
	This option shall in all events terminate five (5) years after the date of grant, and subject to the other terms and conditions set forth herein, this option may be exercised by Optionee as to all 5,000 shares on or after _____________ until expiration at 5:00 p.m. Minneapolis, Minnesota time on ____________.

(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.    Miscellaneous
(a)    This option is issued pursuant to the Company’s 2002 Long-Term Incentive and Stock Option Plan and is subject to its terms.  The terms of the Plan are available for inspection during business hours 

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at the principal offices of the Company.  Capitalized terms not defined in this option have the meanings assigned to them in the Plan.

(b)    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.

(c)    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.

(d)    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.

(e)    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.

(f)    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

407952/1    2Exhibit 10.14 Form of Directors' Stock Award Agreement pursuant to 2007 Long-Term Incentive and Stock Option Plan

Exhibit 10.14
XRS CORPORATION
STOCK AWARD AGREEMENT
PURSUANT TO 2007 LONG-TERM INCENTIVE AND STOCK OPTION PLAN
(Outside Director)

THIS STOCK AWARD AGREEMENT (the “Agreement”) is made effective as of _________________________, between XRS Corporation, a Minnesota corporation (the “Company”) and _____________________, who is a nonemployee member of the Board of Directors of the Company (“Director”).
Recitals
1.    The Company desires to afford the Director an opportunity to acquire shares of its common stock, par value $.01 per share (the “Shares”), to carry out the purposes of its 2007 Long-Term Incentive and Stock Option Plan, as amended (the “Plan”), a copy of which has been provided to Director and the terms of which are incorporated by reference herein and shall be considered a part of this Agreement.  
2.    The Plan provides that each award is to be evidenced by an agreement, setting forth the terms and conditions of such award.
ACCORDINGLY, in consideration of the premises and of the mutual covenants and agreements contained herein, the Company and the Director hereby agree as follows:
1.    Stock Award.  Subject to the terms and provisions of this Agreement and the Plan, the Company hereby grants to Director as of the date hereof a stock award for _______________  (________) Shares (the “Award Shares”).  For purposes of Section 16 under the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, the grant date for the Award Shares shall be the effective date hereof; provided, however, all of Director’s right, title and interest in and to the Award Shares shall be subject to Sections 2 and 3 below.
2.    Vesting of Award Shares.  Director’s right, title and interest in and to the Award Shares is and shall be fully vested without restriction upon the date of grant.
3.    No Restriction on Transfer under this Agreement.  There is no restriction on transfer of the Award Shares other than the restrictions under applicable securities laws as set forth in Section 7 of this Agreement.
4.    Issuance and Delivery of Certificates for Award Shares.  As soon as practicable after the execution hereof, the Company shall issue in Director’s name, and deliver to the Director, a certificate for paid-up, non-assessable Shares for the full number of the Award Shares.  
    

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5.    Rights and Restrictions as a Shareholder.  Director shall have full voting rights, dividend rights and other rights as a shareholder with respect to all Award Shares.  
6.    Withholding.  Director shall pay on a timely basis all withholding and/or excise taxes required by law with respect to the Award Shares (collectively, “Withholding Taxes”).  The delivery of any Award Shares (or portion thereof, if any) to Director under this Agreement shall be subject to and conditioned upon Director’s payment of all applicable Withholding Taxes.  Director hereby authorizes the Company to withhold such Withholding Taxes from any cash compensation payable to Director.
7.    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, Director will be deemed to have made the following investment representation on the date of issuance:
Director intends to acquire the Award Shares for Director’s own account for investment purposes and not with a view to resale in connection with any distribution thereof.  Director has no present intention, and is not a party to any agreement or arrangement, to resell or dispose of any of the Award Shares.  Director 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.  Director 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, Director 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.”
8.    Legend on Shares.  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 (or a portion thereof) may contain substantially the following legend:
“The securities evidenced by this certificate were issued to an affiliate of the issuer, and the resale of such securities is subject to the restrictions of Rule 144 under the Securities Act of 1933, as amended, pertaining to shares held by affiliates.”
9.    Expenses.  Nothing contained in this Agreement shall be construed to impose any liability on the Company in favor of the Director for any cost, loss or expense the Director may incur in connection with, or arising out of any transaction under, this Agreement.
10.    No Implied Agreements.  Nothing in this Agreement shall be construed to constitute or be evidence of an agreement or understanding, express or implied, on the part of the Company to continue the Director in office or in any other positions on any terms or for any specific period of time.
11.    Nontransferability.  The rights of the Director under this Agreement shall not be assigned, transferred, pledged or otherwise hypothecated by the Director other than by will or the laws of descent and distribution.
12.    Complete Agreement; Amendment.  This Agreement and the Plan, which by this reference is hereby incorporated herein in its entirety, contain the entire agreement between the Company and Director with respect to the transactions contemplated hereby.  Any modification of the terms of this Agreement must be in writing and signed by each of the parties.
13.    Governing Law.  Any issue related to the formation, execution, performance and interpretation of this Agreement shall be governed by the laws of the State of Minnesota.
14.    Headings.  The section and subsection headings used in this Agreement are for convenient reference and are not a part of this Agreement.
XRS CORPORATION                DIRECTOR

By_________________________            ____________________________
        
Title:_______________________
Name:_______________________

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