Document:

exv10w42

 

EXHIBIT 10.42

Corporation

INCENTIVE STOCK OPTION AGREEMENT

THIS AGREEMENT, made this 1st day of October 2006, by and between XATA Corporation, a Minnesota
corporation (the “Company”), and John J. Coughlan (“Optionee”).

WITNESSETH, THAT:

WHEREAS, the Company has entered into an Executive Employment Agreement with the Optionee effective
as of October 1, 2006 (the “Employment Agreement”), and

WHEREAS, the Company pursuant to its 2002 Long Term Incentive and Stock Option Plan wishes to grant
this stock option to Optionee; and

WHEREAS, capitalized terms used herein and not otherwise defined shall have the meanings assigned
to them in the Employment Agreement;

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 of an aggregate of 300,000 shares of
Common Stock, par value $0.01 per share (the “Common Shares”), at the price of $5.40 per share on
the terms and conditions set forth herein. This option is intended to be an incentive stock option
within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”),
except to the extent this option is disqualified from treatment as an incentive stock option under
the Code. To the extent that all or any portion of this option is not treated as an incentive
stock option, it shall be treated as a nonqualified stock option. For purposes of this option,
employment by any subsidiary of the Company is equivalent to employment by the Company.

2. Duration and Exercisability

	(a)	 	This option shall in all events terminate at 5 p.m. Minneapolis, Minnesota time on October 1,
2011, which is five (5) years after the date of grant. Subject to the other terms and
conditions set forth herein, this option shall vest and be exercisable 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
	 

	 	September 30, 2007
	 	 	100,000	 
	 

	 	October 31, 2007
	 	 	108,334	 
	 

	 	November 30, 2007
	 	 	116,668	 
	 

	 	December 31, 2007
	 	 	125,002	 
	 

	 	January 31, 2008
	 	 	133,336	 
	 

	 	February 29, 2008
	 	 	141,670	 
	 

	 	March 31, 2008
	 	 	150,004	 
	 

	 	April 30, 2008
	 	 	158,338	 
	 

	 	May 31, 2008
	 	 	166,672	 
	 

	 	June 30, 2008
	 	 	175,006	 
	 

	 	July 31, 2008
	 	 	183,340	 
	 

	 	August 31, 2008
	 	 	191,674	 
	 

	 	September 30, 2008
	 	 	200,008	 
	 

	 	October 31, 2008
	 	 	208,342	 
	 

	 	November 30, 2008
	 	 	216,676	 
	 

	 	December 31, 2008
	 	 	225,010	 
	 

	 	January 31, 2009
	 	 	233,344	 
	 

	 	February 28, 2009
	 	 	241,678	 
	 

	 	March 31, 2009
	 	 	250,012	 
	 

	 	April 30, 2009
	 	 	258,346	 
	 

	 	May 31, 2009
	 	 	266,680	 
	 

	 	June 30, 2009
	 	 	275,014	 
	 

	 	July 31, 2009
	 	 	283,348	 
	 

	 	August 31, 2009
	 	 	291,682	 
	 

	 	September 30, 2009
	 	 	300,000	 

(b) In the event that Optionee voluntarily resigns from Optionee’s full-time employment with
the Company for a reason other than Good Reason or is terminated by the Company for Cause, Optionee
shall forfeit all right, title and interest in and to the unvested portion of the option as of his
Date of Termination.

(c) In the event that Optionee is terminated from employment by the Company because Optionee has
died or become Disabled, Optionee shall thereupon become immediately vested without restriction in
that portion of the option that would have vested pursuant to Section 2(a) above over the next
three (3) months immediately following the Date of Termination had Optionee remained employed
through the end of such three (3) month period.

(d) In the event that Optionee is terminated from employment by the Company without Cause (other
than in the event of death or Disability, it being understood that a purported termination for
Disability or for Cause which is disputed and finally determined not to have been a proper
termination for Cause or Disability shall be a termination by the Company without Cause) or if
Optionee terminates his employment for Good Reason (in each case, in the absence of a Change in
Control), Optionee shall thereupon become immediately vested without restriction in that portion of
the option that would have vested pursuant to Section 2(a) above over the then remaining term of
the Employment Agreement or,

 

 

if longer, the twelve (12) month period immediately following the Date of Termination had Optionee
remained employed through the end of such term or twelve (12) month period, respectively.

(e) Notwithstanding anything to the contrary in Section 2(a), (b), (c) or (d) above, in the event
that the Company consummates a Change of Control, Optionee shall thereupon become immediately
vested without restriction in one-half of the unvested portion of the option as of the date of the
Change of Control (comprising those Common Shares scheduled next to vest), and the remaining
unvested portion of the option shall continue to vest in accordance with the terms of this Section
2.

(f) Notwithstanding anything to the contrary in this Section 2, in the event that (i) upon or
within six months before a Change of Control or within two years following a Change of Control
either (x) the Company terminates Optionee’s employment without Cause (other than in the event of
death or Disability, it being understood that a purported termination for Disability or for Cause
which is disputed and finally determined not to have been proper termination for Cause or
Disability shall be a termination by the Company without Cause) or (y) Optionee terminates his
employment for Good Reason, or (ii) the Chairman of the Board of Directors of the Company
immediately prior to the consummation of a Change of Control ceases to be the Chairman of the Board
of Directors of the Company, or any successor thereto, immediately following the Change of Control
and Optionee terminates his employment, then Optionee shall thereupon become immediately vested
without restriction in the option.

(g) 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. Effect of Termination of Employment

(a) Except as otherwise provided in Section 3(c) below, in the event that Optionee shall cease to
be employed by the Company for any reason other than Cause or Optionee’s death, Optionee shall have
the right to exercise the option at any time within twelve (12) months after such termination of
employment to the extent of the full number of shares Optionee was entitled to purchase under the
option on the Date of Termination, subject to the condition that no option shall be exercisable
after the expiration of the term of the option.

(b) In the event that Optionee shall cease to be employed by the Company by reason of Cause, the
option shall be terminated as of the Date of Termination.

(c) If Optionee shall die while in the employ of the Company, or within three (3) months after
termination of employment for any reason other than Cause, and Optionee shall not have fully
exercised the option, such option may be exercised at any time within twelve (12) months after
Optionee’s Date of Termination or, if later, death by Optionee, personal representatives or
administrators, as applicable, or by any person or persons to whom the option is transferred by
will or the applicable laws of descent and distribution, to the extent of the full number of shares
Optionee was

 

 

entitled to purchase under the option on the date of death or Date of Termination, if earlier, and
subject to the condition that no option shall be exercisable after the expiration of the term of
the option.

4. 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 by delivering to the Company or its
designated agent an executed irrevocable option exercise form, together with irrevocable
instructions to a securities broker-dealer approved by the Company (which approval shall not be
unreasonably withheld) to sell a sufficient portion of the shares and deliver the sale proceeds
directly to the Company in payment of the exercise price in cash, by check, or by wire transfer, as
the Company may direct.

5. 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 at the principal offices of the Company.

(b) This Agreement shall not confer on Optionee any right with respect to continuance of employment
by the Company, nor will it interfere in any way with the right of the Company to terminate such
employment at any time. 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 of
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) If Optionee shall dispose of any of the Common Shares of the Company acquired by Optionee
pursuant to the exercise of the option within two (2) years from the date this option was granted
or within one (1) year after the transfer of any such shares to Optionee upon exercise of this
option, then, in order to provide the Company with the opportunity to claim the benefit of any
income tax deduction which may be available to it under the circumstances, Optionee shall promptly
notify the Company of the dates of acquisition and disposition of such shares, the number of shares
so disposed of, and the consideration, if any, received for such shares. 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 (i) notice to the Company of any disposition of the Common Shares of
the Company within the time periods described above and (ii) that, if necessary, all applicable
federal or state payroll, withholding, income or other taxes are withheld or collected from
Optionee.

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
	 
	 	 	 	 
	 	 	 
	 	 	John J. Coughlanexv10w43

 

EXHIBIT 10.43

XATA CORPORATION

     THIS RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”) is made effective as of October 1,
2006 by and between XATA Corporation, a Minnesota corporation (the “Company”) and John J. Coughlan
(“Employee”).

Recitals

     The Company and the Employee have entered into an Executive Employment Agreement effective as
of October 1, 2006 (the “Employment Agreement”). The Company desires to afford the Employee an
opportunity to acquire shares of its common stock, par value $.01 per share (the “Shares”) as
provided in the Employment Agreement. For purposes of this Agreement, employment by any subsidiary
of the Company is equivalent to employment by the Company. Capitalized terms used herein and not
otherwise defined shall have the meanings assigned to them in the Employment Agreement.

     ACCORDINGLY, in consideration of the premises and of the mutual covenants and agreements
contained herein, the Company and the Employee hereby agree as follows:

     1. Restricted Stock Award. Subject to the terms and provisions of this Agreement and
the Employment Agreement, the Company hereby grants to Employee as of the date hereof a restricted
stock award for Three Hundred Thousand (300,000) 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 Employee’s right, title and interest in and to the Award Shares shall be subject to
Section 2 below.

     2. Vesting of Award Shares.

          (a) Subject to Sections 2(b), (c), (d), (e) and (f) below, all of Employee’s right, title and
interest in and to the Award Shares is and shall be contingent upon and subject to the continued
full-time employment of Employee by the Company during the vesting periods (the “Vesting Periods”).
On the last day (the “Vesting Date”) of each Vesting Period, and provided that Employee is then a
full time employee of the Company, Employee shall be deemed to be fully vested without restriction
in all of the Award Shares covered by that Vesting Period.

	 	 	 	 	 	 	 
	Award Shares	 	Grant Date	 	Vesting Date	 	Shares Vested
	 
	 	 	 	 	 	 
	225,0000

	 	October 1, 2006
	 	September 30, 2007
and then the last
day of each month
thereafter up to
and including
September 30, 2009
	 	75,000 Shares on
September 30, 2007
with an additional
6,250 Shares on
each Vesting Date
thereafter
	 
	 	 	 	 	 	 
	25,000

	 	October 1, 2006
	 	September 30, 2007
and the last day of
each month
thereafter for a
period of three
years
	 	An additional 694
Shares each Vesting
Date with an
additional 710
Shares vesting on
August 31, 2010

 

 

	 	 	 	 	 	 	 
	Award Shares	 	Grant Date	 	Vesting Date	 	Shares Vested
	 
	 	 	 	 	 	 
	25,000

	 	October 1, 2006
	 	September 30, 2008
and the last day of
each month
thereafter for a
period of three
years
	 	An additional 694
Shares each Vesting
Date with an
additional 710
Shares vesting on
August 31, 2011
	 
	 	 	 	 	 	 
	25,000

	 	October 1, 2006
	 	September 30, 2009
and the last day of
each month
thereafter for a
period of three
years
	 	An additional 694
Shares each Vesting
Date with an
additional 710
Shares vesting on
August 31, 2012

          (b) In the event that Employee voluntarily resigns from Employee’s full-time employment
with the Company for a reason other than Good Reason or is terminated by the Company for Cause
during any Vesting Period, Employee shall forfeit all right, title and interest in and to all
unvested Award Shares.

          (c) In the event that Employee is terminated from employment by the Company prior to the end
of any Vesting Period because the Employee has died or become Disabled, Employee shall thereupon
become immediately vested without restriction in all of the Award Shares covered by the shorter of
the next three (3) months immediately following the Date of Termination and that unexpired Vesting
Period to the same extent as though Employee had remained employed through the end of such three
(3) month period or unexpired Vesting Period, respectively. Employee shall forfeit all right,
title and interest in and to all other unvested Award Shares.

          (d) In the event that Employee is terminated from employment by the Company without Cause
(other than in the event of death or Disability, it being understood that a purported termination
for Disability or for Cause which is disputed and finally determined not to have been a proper
termination for Cause or Disability shall be a termination by the Company without Cause) or if
Employee terminates his employment for Good Reason (in each case, in the absence of a Change in
Control), Employee shall thereupon become immediately vested without restriction in all of the
Award Shares that would have vested pursuant to Section 2(a) above over the then remaining term of
the Employment Agreement or, if longer, the twelve (12) month period immediately following the Date
of Termination had Employee remained employed through the end of such term or twelve (12) month
period, respectively.

          (e) Notwithstanding anything to the contrary in Section 2 (a), (b), (c) or (d) above, in the
event that the Company consummates a Change of Control, Employee shall thereupon become immediately
vested without restriction in one-half of the number of unvested Award Shares as of the date of the
Change of Control (comprising those Shares scheduled next to vest), and the remaining unvested
Award Shares shall continue to vest in accordance with this Section 2.

          (f) Notwithstanding anything to the contrary in this Section 2, in the event that (i) upon or
within six months before a Change of Control or within two years following a Change of Control
either (x) the Company terminates Employee’s employment without Cause (other than
in the event of death or Disability, it being understood that a purported termination

 

 

for Disability or for Cause which is disputed and finally determined not to have been proper
termination for Cause or Disability shall be a termination by the Company without Cause) or (y)
Employee terminates his employment for Good Reason, or (ii) the Chairman of the Board of the
Company immediately prior to the consummation of a Change of Control ceases to be the Chairman of
the Board of the Company, or any successor thereto, immediately following the Change of Control and
Employee terminates his employment, then Employee shall thereupon become immediately vested without
restriction in all of the unvested Award Shares.

     3. Restriction on Transfer. No interest in unvested Award Shares shall be
transferable by any means (e.g. sale, assignment, pledge, gift).

     4. Issuance and Delivery of Certificates for Award Shares.

          (a) As soon as practicable after the execution hereof, the Company shall issue in Employee’s
name, and retain in the custody of the Company pursuant to Section 4(b) below, a certificate for
paid-up, non-assessable Shares for the full number of the Award Shares. The Company shall place a
stop transfer order on its stock records with respect to the Award Shares, and the certificate for
the Award Shares shall contain the following legend:

“The securities evidenced by this certificate were issued pursuant
to a Restricted Stock Award Agreement between the holder and the
issuer dated                      (the “Agreement”), and no sale, offer
to sell, transfer, pledge or other hypothecation of these securities
may be made so long as the securities remain subject to the
restrictions set forth in the Agreement.”

          (b) Employee acknowledges and agrees that the Company shall retain the custody of the
certificates for the Award Shares, and that the certificates will not be delivered to Employee
except as provided in Section 4(c) below. Upon execution of this Agreement, Employee has also
executed and delivered to the Company an Assignment Separate from Certificate, authorizing the
Company as attorney to transfer the certificate for the Award Shares to the Company upon forfeiture
pursuant to this Agreement.

          (c) As soon as reasonably practicable after termination of the transfer restrictions pursuant
to Section 3 above, the Company will deliver a certificate for the Award Shares, adjusted as
necessary for the actual number of Award Shares in which Employee has become vested, without the
restrictive legend set forth in Section 4(a). Delivery of the certificate under this Section 4(c)
shall be made at the principal office of the Company to the person or persons entitled thereto
during ordinary business hours of the Company not more than thirty (30) days after the vesting of
the Award Shares, or at such time, place and manner as may be agreed upon by the Company and the
person or persons entitled to the Award Shares.

     5. Rights and Restrictions as a Shareholder. During the Employee’s continued full
time employment with the Company or its subsidiaries Employee shall have full voting rights,
dividend rights and other rights as a shareholder with respect to all vested (but not unvested)
Award Shares. So long as the Company retains custody of the certificates for the Award Shares,
Employee shall not (i) sell, offer to sell, transfer, pledge or hypothecate any record or
beneficial interest in the Award Shares, other than to the Company as provided in this Agreement or
(ii)

 

 

grant any proxies or voting rights with respect to the Award Shares, except to the Company.
The Employee hereby grants an irrevocable proxy to the chief operating officer and the chief
financial officer of the Company (the act of one of them being sufficient), which is coupled with
an interest as described in Minnesota Statutes § 302.449, to vote all unvested Award Shares,
subject to direction by the Board of Directors of the Company, on any and all matters put to a vote
of the shareholders of the Company. Upon vesting of the Award Shares pursuant to Section 2 above,
Employee (or, in the event of the death of Employee, the person or persons then entitled to the
Award Shares or any portion thereof) shall have full voting rights, dividend rights and other
rights as a shareholder with respect to such Award Shares.

     6. Stock Dividends, Stock Splits and Other Adjustments. During the time that the
Award Shares are subject to the vesting restrictions set forth in Section 2 above, if a stock
dividend or stock split is declared on the outstanding Shares of the Company, or if outstanding
Shares of the Company are changed into or exchanged for a different number or kind of shares or
other securities of the Company or of another corporation by reason of any reorganization, merger,
consolidation, recapitalization, reclassification, stock split, reverse stock split, combination of
shares or dividends payable in capital stock, appropriate adjustment shall be made in the number
and kind of shares as to which the Award Shares relate (the “Adjusted Shares”), to the end that the
proportionate interest of Employee, as a shareholder of the Company with respect to the Award
Shares when and if vested, shall be maintained as before the occurrence of such event. As used
herein, the term Award Shares includes any corresponding Adjusted Shares. The Company shall retain
the custody of each certificate for the Adjusted Shares pursuant to Section 4(b) above.

     7. Withholding. Employee shall pay on a timely basis all withholding and payroll
taxes 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 Employee
under this Agreement shall be subject to and conditioned upon Employee’s payment of all applicable
Withholding Taxes. Employee hereby authorizes the Company to withhold such Withholding Taxes from
his salary and/or commissions.

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

     9. Legend on Shares if Registered. If Employee is deemed an affiliate of the Company,
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.”

     10. Expenses. Nothing contained in this Agreement shall be construed to impose any
liability on the Company in favor of the Employee for any cost, loss or expense the Employee may
incur in connection with, or arising out of any transaction under, this Agreement.

     11. No Employment Agreement. 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 employ the Employee on any terms or for any specific period of time.

     12. Nontransferability. The rights of the Employee under this Agreement shall not be
assigned, transferred, pledged or otherwise hypothecated by the Employee other than by will or the
laws of descent and distribution.

     13. Fractional Shares. No fraction of a share shall be deliverable pursuant to this
Agreement, but in the event any adjustment hereunder of the number of the Award Shares shall
cause such number to include a fraction of a share, such fraction shall be adjusted to the nearest
smaller whole number of shares.

 

 

     14. Complete Agreement, Amendment. This Agreement and the Employment Agreement, which
by this reference is hereby incorporated herein in its entirety, contain the entire agreement
between the Company and Employee 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.
Notwithstanding the foregoing, this Agreement may be modified by the Employment Agreement (or any
amendment thereto) between the parties.

     15. 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.

     16. Headings. The section and subsection headings used in this Agreement are for
convenient reference and are not a part of this Agreement.

	 	 	 	 	 	 	 
	XATA CORPORATION	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	Title

	 	 

	 	 

John J. Coughlan

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]