Document:

Exhibit 10.1

 

	
  

   

  THE INTERIM MANAGEMENT PRACTICE

  	
   

  	
  FTI
  Palladium Partners

  3 Times Square

  11th Floor

  New York, NY 10036

  212.247.1010 telephone

  212.841.9350 facsimile

  www.ftipalladiumpartners.com

  

 

PRIVATE &
CONFIDENTIAL

 

April 7,
2009

 

Via
E-mail Delivery

 

Mr. William
Menear

Lead
Director

Magna
Entertainment Corporation

337
Magna Drive

Aurora,
Ontario L467K1

 

Re:
Engagement Letter between FTI Consulting, Inc. and Magna Entertainment
Corporation

 

Dear
Mr. Menear :

 

1.             Introduction

 

This
letter confirms that we, FTI Consulting, Inc. (“FTI”), have been retained
by you, Magna Entertainment Corporation. (the “Company”), to provide certain
financial advisory and consulting services (the “Services”) set out below.  This letter of engagement (the “Engagement”)
and the related Standard Terms and Conditions constitute the engagement
contract (the “Engagement Contract”) pursuant to which the Services will be
provided.

 

2.             Scope of Services

 

The
Services, to be performed at your direction, are expected to include the following:

 

·      Provide the services of Greg
Rayburn to serve as the interim Chief Executive Officer (the “CEO”) reporting
directly to the Board of Directors. In the capacity of CEO, Greg will enjoy the
same full and free access to the Board of Directors and its Committees as other
members of the senior management of the Company as specified in the Corporate
Governance Guidelines of the Board of Directors and will be granted the right
to attend and participate (but not vote) in the meetings of the Company’s Board
of Directors, or its Committees, as an observer (it being understood that the
Board of Directors of the Company may from time to time meet in “executive
session” or otherwise ask that certain or all non-directors not attend such
meeting or a portion thereof) (such role referred to as “Board Observer”).

 

·      To the extent determined by
mutual agreement of you and Greg Rayburn, provide the services of other
employees of FTI (the “Temporary Employees”) to support

 

 

Greg Rayburn in his role and in the accomplishment
of the following specific aspects of the Services in coordination with the
Company’s senior management and assigned permanent employees:

 

1.             Discharge the customary
duties and responsibilities of the CEO;

 

2.             Lead the Company’s chapter
11 sale/restructuring process; and

 

3.             Provide such other services
as may be requested by the Company’s Board of Directors in connection with this
Engagement.

 

We
currently anticipate that Greg Rayburn will be supported by one Temporary
Employee.  We will keep you informed as
to our staffing and will not add additional Temporary Employees to the
assignment without first obtaining your consent that such additional resources
are required and do not duplicate the activities of other employees or
professionals.  Moreover, we will attempt
to utilize Company personnel to fulfill such roles and will take such steps as
may be necessary to avoid duplications with the Company’s other
professionals.  Furthermore, we will
obtain your consent as to the areas of responsibility being filled by all
Temporary Employees and will adjust the staffing levels upwards or downwards.

 

In
addition to these specific services, we understand that, at your request and to
the extent appropriate, such Temporary Employees may be asked to participate in
meetings and discussions with the Company, its lenders, other constituencies
and their respective professionals.

 

The
Services of the Temporary Employees may be performed by FTI or by any
subsidiary of FTI, as FTI shall determine. 
FTI may also provide Services through its or its subsidiaries’ agents or
independent contractors.  References
herein to FTI and its employees shall be deemed to apply also, unless the
context shall otherwise indicate, to employees of each such subsidiary and to
any such agents or independent contractors and their employees.

 

The
Services, as outlined above, are subject to change as mutually agreed between
us.

 

The
Company is operating under the protection of the Bankruptcy Code and our
retention will be required to be approved by the Bankruptcy Court.  Our role will include serving as CEO and
principal bankruptcy advisors to the debtor and debtors in possession in those
cases under a general retainer, subject to court approval.  Our role will also encompass planning and
negotiations attendant to these tasks.

 

2

 

The
services we will provide in connection with the Engagement will encompass all
services normally and reasonably associated with this type of engagement that
we are requested and are able to provide and that are consistent with our
ethical obligations.  With respect to all
matters of our Engagement, we will coordinate closely with the Company as to
the nature of the services that we will render and the scope of our engagement.

 

As
usual, our Engagement is to represent the Company and not its individual
directors, officers, employees or shareholders. 
However, we anticipate that in the course of that Engagement, we may
provide information or advice to directors, officers or employees in their
corporate capacities.

 

3.             Fees and Cash on Accounts

 

For
services rendered in connection with this assignment, the Company agrees to pay
FTI a monthly, non-refundable advisory fee of $165,000 for the services of Greg
Rayburn and one additional Temporary Employee. 
Payment of such fees is due and payable on the first business day of
each month.

 

In addition to the fixed
rate fees, we will earn and be due a completion fee payable on the confirmation
of any plan consummated by the company in its bankruptcy proceedings. If FTI
services are finalized after 6 months, the completion fee will be $600,000, if
the services are finalized after 5 months the completion fee will be $500,000,
if the services are finalized  after 4
months the completion fee will be $400,000. In the event the engagement is not
concluded within 6 months the completion fee will increase from $600,000 by
$100,000 per month but will under no circumstances exceed $1,000,000.

 

In
addition to the fees outlined above, FTI will bill for reasonable allocated and
direct expenses which are likely to be incurred on your behalf during this
Engagement.  Allocated expenses include
the cost of items which are not billed directly to the engagement, including
administrative support and other overhead expenses that are not billed through
as direct reimbursable expenses, and are calculated at 3.0% of FTI’s advisory
fees.  Direct expenses include reasonable
and customary out-of-pocket expenses which are billed directly to the
engagement such as certain telephone, overnight mail, messenger, travel, meals,
accommodations and other expenses specifically related to the engagement.  Further, if FTI and/or any of its employees
are required to testify or provide evidence at or in connection with any
judicial or administrative proceeding relating to this matter, FTI will be
compensated by you at its regular hourly rates and reimbursed for reasonable
allocated and direct 

 

3

 

expenses
(including counsel fees) with respect thereto; provided that during the term of
this Engagement Greg Rayburn will testify or provide evidence as required
without further charge beyond the fixed monthly fee.

 

Cash on Account

 

Initially,
the Company will forward to us the amount of $165,000, which funds will be held
“on account” to be applied to our professional fees, charges and disbursements
for the Engagement (the “Initial Cash on Account”).  To the extent that this amount exceeds our
fees, charges and disbursements upon the completion of the Engagement, we will
refund any unused portion.  The Company
agrees to increase or supplement the Initial Cash on Account from time to time
during the course of the Engagement in such amounts as the Company and we
mutually shall agree are reasonably necessary to increase the Initial Cash on
Account to a level that will be sufficient to fund Engagement fees, charges,
and disbursements to be incurred.

 

We
will send the Company periodic invoices (generally weekly but not less
frequently than monthly) for services rendered and charges and disbursements
incurred on the basis discussed above, and in certain circumstances, an invoice
may be for estimated fees, charges and disbursements through a date
certain.  Each invoice constitutes a
request for an interim payment against the fee to be determined at the
conclusion of our Services.  Upon
transmittal of the invoice, we may immediately draw upon the Initial Cash on
Account (as replenished from time to time) in the amount of the invoice.  The Company agrees upon submission of each
such invoice to promptly wire the invoice amount to us as replenishment of the
Initial Cash on Account (together with any supplemental amount to which we and
the Company mutually agree), without prejudice to the Company’s right to advise
us of any differences it may have with respect to such invoice.  We have the right to apply to any outstanding
invoice (including amounts billed prior to the date hereof), up to the
remaining balance, if any, of the Initial Cash on Account (as may be supplemented
from time to time) at any time subject to (and without prejudice to) the
Company’s opportunity to review our statements.

 

The
Company agrees to promptly notify FTI if the Company or any of its subsidiaries
or affiliates extends (or solicits the possible interest in receiving) an offer
of employment to a principal or employee of FTI involved in this Engagement and
agrees that FTI has earned and is entitled to a cash fee, upon hiring, equal to
150% of the aggregate first year’s annualized compensation, including any
guaranteed or target bonus and equity award, to be paid to FTI’s former
principal or employee that the Company or any of it subsidiaries or affiliates
hires at any time up to one year 

 

4

 

subsequent
to the date of the final invoice rendered by FTI with respect to this
Engagement.

 

In
a case  under the
Bankruptcy Code, fees and expenses may not be paid without the express prior
approval of the bankruptcy court.  The
bankruptcy court has established a procedure for the payment of interim fees
during the Company’s case that permits payment of interim fees.  We will submit invoices on account against
our final fee in accordance with such order. 
These interim invoices will be based on the percentage allowed by the
bankruptcy court of our internal time charges and costs and expenses for the
work performed during the relevant period and will constitute a request for an
interim payment against the reasonable fee to be determined at the conclusion of
our representation.

 

Post-petition
fees, charges and disbursements will be due and payable immediately upon entry
of an order containing such court approval or at such time thereafter as
instructed by the court.  The Company
understands that, while the arrangement in this paragraph may be altered in
whole or in part by the bankruptcy court, the Company shall nevertheless remain
liable for payment of court approved post-petition fees and expenses.  Such items are afforded administrative
priority under 11 U.S.C. § 503(b)(l). 
The Bankruptcy Code provides in pertinent part, at 11 U.S.C. §
1l29(a)(9)(A), that a plan cannot be confirmed unless these priority claims are
paid in full in cash on the effective date of any plan (unless the holders of
such claims agree to different treatment). 
It is agreed and understood that the unused portion, if any, of the
Initial Cash on Account (as may be supplemented from time to time) and the
Additional Cash on Account shall be held by us and applied against the final
fee application filed and approved by the court.

 

4.             Terms
and Conditions

 

The
attached Standard Terms and Conditions set forth the duties of each party with
respect to the Services. Further, this letter and the Standard Terms and
Conditions attached comprise the entire Engagement Contract for the provision
of the Services to the exclusion of any other express or implied terms, whether
expressed orally or in writing, including any conditions, warranties and
representations, and shall supersede all previous proposals, letters of
engagement, undertakings, agreements, understandings, correspondence and other
communications, whether written or oral, regarding the Services.

 

5

 

5.             Conflicts of Interest

 

Based on the list of interested parties (the “Potentially Interested
Parties”), provided by you, we have undertaken a limited review of our records
to determine FTI’s professional relationships with the Company, the
administrative agent and other related parties. 
As you may be aware, FTI is regularly retained by the administrative
agent and/or other members of your lending group (or law firms retained by the
administrative agent or lending group members). 
However, such representations are in matters unrelated to this engagement.

 

We were not made aware of any conflicts of interest or additional
relationships that we believe would preclude us from performing the
Services.  However, as you know, we are a
large consulting firm with numerous offices throughout the United States.  We are regularly engaged by new clients,
which may include one or more of the Potentially Interested Parties.  We will not knowingly accept an engagement
that directly conflicts with this Engagement without your prior written
consent.

 

6.             Acknowledgement and Acceptance

 

Please
acknowledge your acceptance of the terms of this Engagement Contract by signing
both the confirmation below and the attached Standard Terms and Conditions and
returning a copy of each to us at the above address.

 

If
you have any questions regarding this letter or the attached Standard Terms and
Conditions, please do not hesitate to contact Greg Rayburn at (336) 407-4857.

 

Very
truly yours,

 

FTI
CONSULTING, INC.

 

 

	
  By:

  	
  /s/ Greg Rayburn

  	
   

  
	
   

  	
  Greg
  Rayburn

  	
   

  
	
   

  	
  Senior
  Managing Director

  	
   

  

 

Attachment
— As stated

 

6

 

Confirmation of Terms of
Engagement

 

We agree to engage FTI Consulting, Inc. upon
the terms set forth herein and in the attached Standard Terms and Conditions.

 

Magna
Entertainment Corporation

 

	
  By:

  	
  /s/ William
  Menear

  	
   

  
	
   

  	
  William
  Menear

  	
   

  
	
   

  	
  Lead
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  April 14, 2009

  	
   

  

 

7

 

FTI CONSULTING, INC.

 

STANDARD TERMS AND CONDITIONS

 

The
following are the Standard Terms and Conditions on which we will provide the
Services to you set forth within the attached letter of engagement with
Accuride Corporation dated April 4, 2009.  
The Engagement letter and the Standard Terms and Conditions  (collectively the “Engagement Contract”) form
the entire agreement between us relating to the Services and replace and
supersede any previous proposals, letters of engagement, undertakings,
agreements, understandings, correspondence and other communications, whether
written or oral, regarding the Services. 
The headings and titles in the Engagement Contract are included to make
it easier to read but do not form part of the Engagement Contract.

 

1.             Reports
and Advice

 

1.1           Use and purpose of advice and reports — Any advice
given or report issued by us is provided solely for your use and benefit and
only in connection with the purpose in respect of which the Services are
provided. Unless required by law, you shall not provide any advice given or
report issued by us to any third party, or refer to us or the Services, without
our prior written consent. In no event, regardless of whether consent has been
provided, shall we assume any responsibility to any third party to which any
advice or report is disclosed or otherwise made available.

 

2.             Information
and Assistance

 

2.1           Provision of information and assistance — Our
performance of the Services is dependent upon your providing us with such
information and assistance as we may reasonably require from time to time.

 

2.2           Punctual and accurate information — You shall
use reasonable skill, care and attention to ensure that all information we may
reasonably require is provided on a timely basis and is accurate and complete
and relevant for the purpose for which it is required.  You shall also notify us if you subsequently
learn that the information provided is incorrect or inaccurate or otherwise
should not be relied upon.

 

2.3           No assurance on financial data — While our
work may include an analysis of financial and accounting data, the Services
will not include an audit, compilation or review of any kind of any financial
statements or components thereof. 
Company management will be responsible for any and all financial
information they provide to us during the course of this Engagement, and we
will not examine or compile or verify

 

 

any
such financial information.  Moreover,
the circumstances of the Engagement may cause our advice to be limited in
certain respects based upon, among other matters, the extent of sufficient and
available data and the opportunity for supporting investigations in the time
period.  Accordingly, as part of this
Engagement, we will not express any opinion or other form of assurance on
financial statements of the Company.

 

2.4           Prospective financial information - In the event
the Services involve prospective financial information, our work will not
constitute an examination or compilation, or apply agreed-upon procedures, in
accordance with standards established by the American Institute of Certified
Public Accountants or otherwise, and we will express no assurance of any kind
on such information.  There will usually
be differences between estimated and actual results, because events and
circumstances frequently do not occur as expected, and those differences may be
material.  We will take no responsibility
for the achievability of results or events projected or anticipated by the
management of the Company.

 

3.             Additional
Services

 

3.1           Responsibility for other parties — You shall be
solely responsible for the work and fees of any other party engaged by you to
provide services in connection with the Engagement regardless of whether such
party was introduced to you by us. 
Except as provided in this Engagement Contract, we shall not be
responsible for providing or reviewing the advice or services of any such third
party, including advice as to legal, regulatory, accounting or taxation
matters.  Further, we acknowledge that we
are not authorized under our Engagement Contract to engage any third party to
provide services or advice to you, other than our agents or independent
contractors engaged to provide Services, without your written authorization.

 

4.             Confidentiality

 

4.1           Restrictions on confidential information — Both parties
agree that any confidential information received from the other party shall
only be used for the purposes of providing or receiving Services under this or
any other contract between us. Except as provided below, neither party will
disclose the other party’s confidential information to any third party without
the other party’s consent. Confidential information shall not include
information that:

 

4.1.1        is or becomes generally available to the public
other than as a result of a breach of an obligation under this Clause 4.1;

 

2

 

4.1.2        is acquired from a third party who, to the recipient
party’s knowledge, owes no obligation of confidence in respect of the
information; or

 

4.1.3        is or has been independently developed by the
recipient.

 

4.2           Disclosing confidential information —
Notwithstanding Clause 1.1 or 4.1 above, either party will be entitled to
disclose confidential information of the other to a third party to the extent
that this is required by valid legal process, provided that (and without
breaching any legal or regulatory requirement) where reasonably practicable not
less than 2 business days’ notice in writing is first given to the other party.

 

4.3           Citation of engagement — Without
prejudice to Clause 4.1 and Clause 4.2 above, to the extent our engagement is
or becomes known to the public, we may cite the performance of the Services to
our clients and prospective clients as an indication of our experience, unless
we and you specifically agree otherwise in writing.

 

4.4           Internal quality reviews —
Notwithstanding the above, we may disclose any information referred to in this
Clause 4 to any other FTI entity or use it for internal quality reviews.

 

4.5           Maintenance of workpapers — Notwithstanding
the above, we may keep one archival set of our working papers from the
Engagement, including working papers containing or reflecting confidential
information, in accordance with our internal policies.

 

5.             Termination

 

5.1           Termination of Engagement with notice — Either party
may terminate the Engagement Contract for whatever reason upon written notice
to the other party. Upon receipt of such notice, we will stop all work
immediately. You will be responsible for all fees and expenses incurred by us
through the date termination notice is received.

 

5.2           Continuation of terms — The terms of
the Engagement that by their context are intended to be performed after
termination or expiration of this Engagement Contract, including but not
limited to, Clauses 3 and 4 of the Engagement letter, and Clauses 1.1, 4, 6 and
7 of the Standard Terms and Conditions, are intended to survive such
termination or expiration and shall continue to bind all parties.

 

3

 

6.             Indemnification
and  Liability Limitation; Waiver of Jury Trial

 

6.1           Indemnification - You agree to
indemnify and hold harmless FTI and any of its subsidiaries and affiliates,
officers, directors, principals, shareholders, agents, independent contactors
and employees (collectively “Indemnified Persons”) from and against any and all
claims, liabilities, damages, obligations, costs and expenses (including
reasonable attorneys’ fees and expenses and costs of investigation) arising out
of or relating to your retention of FTI, the execution and delivery of this
Engagement Contract, the provision of Services or other matters relating to or
arising from this Engagement Contract, except to the extent that any such
claim, liability, obligation, damage, cost or expense shall have been
determined by final non-appealable order of a court of competent jurisdiction
to have resulted from the gross negligence or willful misconduct of the
Indemnified Person or Persons in respect of whom such liability is asserted.

 

6.2           Limitation of liability - You agree that
no Indemnified Person shall have any liability as a result of your retention of
FTI, the execution and delivery of this Engagement Contract, the provision of
Services or other matters relating to or arising from this Engagement Contract,
other than liabilities that shall have been determined by final non-appealable
order of a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of the Indemnified Person or Persons in
respect of whom such liability is asserted. 
Without limiting the generality of the foregoing, in no event shall any
Indemnified Person be liable for consequential, indirect or punitive damages,
damages for lost profits or opportunities or other like damages or claims of any
kind.

 

6.3           In addition to the above indemnification, FTI
personnel serving as employees of the Company will be entitled to the benefit
of the most favorable indemnities provided by the Company to its officers and
directors, whether under the Company’s by-laws, certificate of incorporation,
by contract or otherwise.  The Company
agrees that it will use its commercially reasonable efforts to obtain Directors
and Officers insurance and that should such insurance be obtained, it
specifically will include and cover Rayburn (and any other employee of FTI who,
at the request of the Board of Directors of the Company, FTI agrees will serve
as an officer of the Company) under the Company’s policies for directors’ and
officers’ insurance. The Company agrees to also maintain insurance coverage for
Rayburn for a period of not less than two (2) years following the date of
termination of such FTI employee’s services hereunder. The provisions of this
section 7 are in the nature of contractual obligations and no change in
applicable law or the Company’s charter, by-laws or other organizational
documents or policies shall affect any of Rayburn’s rights hereunder. The
obligations of the parties as 

 

4

 

reflected
herein shall survive the termination of the Engagement.  The parties intend that an independent
contractor relationship will be created by this letter agreement.  As an independent contractor, FTI will have
complete and exclusive charge of the management and operation of its business,
including hiring and paying the wages and other compensation of all its
employees and agents, and paying all bills, expenses and other charges incurred
or payable with respect to the operation of its business.  None of FTI’s employees serving as a
Temporary Employee, including Rayburn as CEO of the Company, will be entitled
to receive from the Company any salary, bonus, compensation, vacation pay, sick
leave, retirement, pension or social security benefits, workers compensation,
disability, unemployment insurance benefits or any other Company employee
benefits.  FTI will be responsible for
all employment, withholding, income and other taxes incurred in connection with
the operation and conduct of its business (including those related to the Temporary
Employees).

 

6.4           WAIVER OF JURY TRIAL —TO FACILITATE JUDICIAL RESOLUTION AND SAVE TIME AND EXPENSE, YOU AND FTI
IRREVOCABLY AND UNCONDITIONALLY AGREE NOT TO DEMAND A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE SERVICES
OR ANY SUCH OTHER MATTER.

 

7.             Governing
Law and Jurisdiction-The Engagement Contract shall be governed by
and interpreted in accordance with the laws of the State of New York, without
giving effect to the choice of law provisions thereof.  The United States District Court for the
Southern District of New York and the appropriate Courts of the State of New
York sitting in the Borough of Manhattan, City of New York shall have exclusive
jurisdiction in relation to any claim, dispute or difference concerning the Engagement Contract and any
matter arising from it. The parties submit to the jurisdiction of such Courts
and irrevocably waive any right they may have to object to any action being
brought in these Courts, to claim that the action has been brought in an
inconvenient forum or to claim that those Courts do not have jurisdiction.

 

5

 

FTI CONSULTING, INC

 

Confirmation
of Standard Terms and Conditions

 

We
agree to engage FTI Consulting, Inc. upon the terms set forth in these
Standard Terms and Conditions as outlined above.

 

Magna
Entertainment Corporation

 

	
  By:

  	
  /s/ William
  Menear

  	
   

  
	
   

  	
  William
  Menear

  	
   

  
	
   

  	
  Lead
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  April 14, 2009

  	
   

  

 

6Exhibit 10.1

 

TENTH AMENDMENT

TO

LOAN AND SECURITY AGREEMENT

 

THIS TENTH AMENDMENT
to Loan and Security Agreement (this “Amendment”) is entered into as of this 10th
day of April, 2009, by and between Silicon Valley Bank (“Bank”) and XPLORE
TECHNOLOGIES CORPORATION OF AMERICA, a Delaware corporation (“Borrower”) whose
address is 14000 Summit Drive, Suite 900, Austin, Texas 78728.

 

RECITALS

 

A.            Bank
and Borrower have entered into that certain Loan and Security Agreement dated
as of September 15, 2005, as amended by that certain First Amendment to Loan
and Security Agreement by and between Bank and Borrower dated as of November 28,
2005, that certain Letter amending Loan and Security Agreement by and between
Bank and Borrower dated as of March 30, 2006, that certain Second Amendment to
Loan and Security Agreement by and between Bank and Borrower dated as of May 15,
2006, that certain Third Amendment to Loan and Security Agreement by and
between Bank and Borrower dated as of February 28, 2007, that certain Fourth
Amendment to Loan and Security Agreement by and between Bank and Borrower dated
as of March 28, 2008, that certain Fifth Amendment to Loan and Security
Agreement by and between Bank and Borrower dated as of May 27, 2008, that
certain Sixth Amendment to Loan and Security Agreement by and between Bank and
Borrower dated as of August 6, 2008, that certain Seventh Amendment to Loan and
Security Agreement by and between Bank and Borrower dated as of August 29,
2008, that certain Eighth Amendment to Loan and Security Agreement by and
between Bank and Borrower dated as of September 30, 2008 and that certain Ninth
Amendment to Loan and Security Agreement by and between Bank and Borrower dated
as of March 30, 2009 (as the same may from time to time be further amended,
modified, supplemented or restated, the “Loan Agreement”).

 

B.            Bank
has extended credit to Borrower for the purposes permitted in the Loan
Agreement.

 

C.            Borrower
has requested that Bank amend the Loan Agreement to extend the maturity date.

 

D.            Bank
has agreed to so amend certain provisions of the Loan Agreement, but only to
the extent, in accordance with the terms, subject to the conditions and in
reliance upon the representations and warranties set forth below.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals
and other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, and intending to be legally bound, the parties hereto
agree as follows:

 

 

1.             Definitions. 
Capitalized terms used but not defined in this Amendment shall have the
meanings given to them in the Loan Agreement.

 

2.             Amendment to Loan Agreement.

 

2.1          Schedule Section 9 (MATURITY
DATE (Section 6.1)). 
The Maturity Date in Section 9 of the Schedule to the Loan Agreement is
amended in its entirety and replaced with the following:

 

“April 24, 2009”

 

3.             Limitation of Amendment.

 

3.1          The amendment set forth in Section 2
is effective for the purposes set forth herein and shall be limited precisely
as written and shall not be deemed to (a) be a consent to any amendment, waiver
or modification of any other term or condition of any Loan Document, or (b) otherwise
prejudice any right or remedy which Bank may now have or may have in the future
under or in connection with any Loan Document.

 

3.2          This Amendment shall be construed in connection with
and as part of the Loan Documents and all terms, conditions, representations,
warranties, covenants and agreements set forth in the Loan Documents, except as
herein amended, are hereby ratified and confirmed and shall remain in full
force and effect.

 

4.             Representations and Warranties. 
To induce Bank to enter into this Amendment, Borrower hereby represents
and warrants to Bank as follows:

 

4.1          Immediately after giving effect to this Amendment (a) the
representations and warranties contained in the Loan Documents are true,
accurate and complete in all material respects as of the date hereof (except to
the extent such representations and warranties relate to an earlier date, in
which case they are true and correct as of such date), and (b) no Event of
Default has occurred and is continuing;

 

4.2          Borrower has the power and authority to execute and
deliver this Amendment and to perform its obligations under the Loan Agreement,
as amended by this Amendment;

 

4.3          The organizational documents of Borrower delivered to
Bank with the Sixth Amendment to Loan and Security Agreement remain true,
accurate and complete and have not been amended, supplemented or restated and
are and continue to be in full force and effect;

 

4.4          The execution and delivery by Borrower of this
Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, have been duly authorized;

 

4.5          The execution and delivery by Borrower of this Amendment
and the performance by Borrower of its obligations under the Loan Agreement, as
amended 

 

2

 

by this Amendment, do not
and will not contravene (a) any law or regulation binding on or affecting
Borrower, (b) any contractual restriction with a Person binding on Borrower, (c)
any order, judgment or decree of any court or other governmental or public body
or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower;

 

4.6          The execution and delivery by Borrower of this
Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, do not require any order, consent,
approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or
authority, or subdivision thereof, binding on either Borrower, except as
already has been obtained or made; and

 

4.7          This Amendment has been duly executed and delivered by
Borrower and is the binding obligation of Borrower, enforceable against
Borrower in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to
or affecting creditors’ rights.

 

5.             Counterparts. 
This Amendment may be executed in any number of counterparts and all of
such counterparts taken together shall be deemed to constitute one and the same
instrument.

 

6.             Effectiveness. 
This Amendment shall be deemed effective upon the due execution and
delivery to Bank of this Amendment by each party hereto.

 

[Signature page follows.]

 

3

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed and delivered as of the date first
written above.

 

	
  BANK

  	
   

  	
  BORROWER

  
	
   

  	
   

  	
   

  
	
  Silicon Valley Bank

  	
   

  	
  XPLORE TECHNOLOGIES

  
	
   

  	
   

  	
  CORPORATION OF AMERICA

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]