Document:

Exhibit 10.4

 

XPLORE TECHNOLOGIES CORP.

14000 Summit Drive, Suite 900

Austin, TX 78728

 

February 27, 2009

 

Philip S. Sassower

Phoenix Venture Fund LLC

110 East 59th Street, Suite 1901

New York, NY 10022

 

Re:          Note
Purchase Agreement, dated September 5, 2008

 

Gentlemen,

 

Reference
is made to that certain Note Purchase Agreement, dated September 5, 2008,
by and among Xplore Technologies Corp. (the “Parent”), Xplore
Technologies Corporation of America (the “Subsidiary” and collectively
with the Parent, the “Borrowers”) and the Purchasers listed on Schedule
I and Schedule II thereto (the “Note Purchase Agreement”), the
promissory notes issued in connection therewith by the Borrowers to the
Purchasers (the “Notes”) and the warrants issued in connection therewith
by the Parent to the Purchasers (the “Warrants”).  Any capitalized terms used but not otherwise
defined herein shall have the same meanings ascribed to such terms in the
Agreement.

 

The
parties hereto hereby agree as follows:

 

1.             The Note Purchase
Agreement is amended to extend the Maturity Date of each of the Notes to December 31,
2010.

 

2.             Section 9 (Certain
Definitions) of the Note Purchase Agreement is hereby amended by deleting in
its entirety the definition of Maturity Date and inserting in lieu thereof the
following definition:

 

“Maturity Date” shall mean, with respect to any Note, December 31,
2010.

 

3.             Section 1 of
each Note is hereby amended to extend the Maturity Date (as defined therein) to
December 31, 2010.

 

4.             The Note Purchase
Agreement is amended to reduce the Warrant Exercise Price to the lower of (i) $0.10
per share, or (ii) the volume weighted average trading price of the
Company’s Common Stock for the 5 trading days prior to February 27, 2009.

 

1

 

5.             Section 9
(Certain Definitions) of the Note Purchase Agreement is hereby amended by
deleting in its entirety the definition of Warrant Exercise Price and inserting
in lieu thereof the following definition:

 

“Warrant Exercise Price” shall mean the lower of (i) $0.10
per share, or (ii) the volume weighted average trading price of the
Company’s Common Stock for the 5 trading days prior to February 27, 2009.

 

6.             Section 8
(Definitions) of the Note Purchase Agreement is hereby amended by deleting in its
entirety the definition of Warrant Exercise Price and inserting in lieu thereof
the following definition:

 

“Warrant Exercise Price” shall mean the lower of (i) $0.10
per share, or (ii) the volume weighted average trading price of the
Company’s Common Stock for the 5 trading days prior to February 27, 2009.

 

7.             Section 1 of
each Warrant is hereby amended to extend the Expiration Date (as defined
therein) to February 27, 2012.

 

8.             This side letter
may be executed in multiple counterparts, each of which shall be deemed to be
an original, but all such separate counterparts shall together constitute but
one and the same instrument.  Delivery of
a counterpart hereof by facsimile transmission or by e-mail transmission shall
be as effective as delivery of a manually executed counterpart hereof.

 

9.             Except as expressly
amended hereby, the Note Purchase Agreement, each Note and each Warrant shall
remain in full force and effect.

 

10.           This letter shall be
governed by, and construed in accordance with, the laws of the State of New
York excluding that body of law relating to conflicts of law.

 

[Remainder of the Page Intentionally
Left Blank]

 

2

 

Please
indicate your agreement and acceptance of the terms and conditions of this
letter agreement by executing this letter agreement in the designated space
below and returning a signed copy.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  Xplore
  Technologies Corp.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J.
  Rapisand

  
	
   

  	
   

  	
  Name:

  	
  Michael J.
  Rapisand

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer and Secretary

  

 

AGREED AND ACCEPTED:

 

Phoenix Venture Fund LLC,
as Agent to Purchasers

 

 

	
  By:

  	
  SG Phoenix Ventures LLC,

  	
   

  
	
   

  	
  its Managing Member

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Philip Sassower

  	
   

  
	
   

  	
  Name:

  	
  Philip Sassower

  	
   

  
	
   

  	
  Title:

  	
  Member

  	
   

  

 

 

Xplore Technologies
Corporation of America

 

 

	
  By:

  	
  /s/ Michael J. Rapisand

  	
   

  
	
   

  	
  Name:

  	
  Michael J. Rapisand

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer and Secretary

  	
   

  

 

3Exhibit 10.10

 

MORNINGSTAR, INC. 2004

 

STOCK INCENTIVE PLAN

 

RESTRICTED
STOCK UNIT AWARD AGREEMENT

 

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (including Schedule 1 hereto, the “Award
Agreement”) is made under the Morningstar, Inc. 2004 Stock Incentive Plan
(the “Plan”) as of the Grant Date specified in Schedule 1 to this Award
Agreement (“Schedule 1”).  Any term
capitalized but not defined in this Award Agreement will have the meaning set
forth in the Plan.

 

BETWEEN:

 

(1)        MORNINGSTAR,
INC., an Illinois corporation (the “Company”); and

 

(2)        The Participant
identified in Schedule 1.

 

1          GRANT OF RESTRICTED STOCK UNITS

 

1.1        In accordance with the
terms of the Plan and subject to the terms and conditions of this Award
Agreement, the Company hereby grants to the Participant the number of
Restricted Stock Units specified in Schedule 1.

 

1.2        Each Restricted Stock Unit is a notional amount that
represents one unvested share of common stock, no par value, of the Company (a “Share”).  Each Restricted Stock Unit constitutes the
right, subject to the terms and conditions of the Plan and this Award
Agreement, to distribution of a Share if and when the Restricted Stock Unit
vests.

 

1.3        The Participant hereby agrees to be bound by the
terms of this Award Agreement and the Plan.

 

1.4        Further details of the Restricted Stock Units granted
to the Participant under the terms of this Award Agreement are set forth in
Schedule 1.

 

1.5        In the case of conflict between the terms contained
in this Award Agreement and those contained in the Plan, the Plan shall
prevail, unless and to the extent otherwise expressly stated in this Award
Agreement.

 

 

2          RIGHTS AS A SHAREHOLDER

 

2.1        Unless and until a
Restricted Stock Unit has vested and the Share underlying it has been
distributed to the Participant, the Participant will not be entitled to vote
that Share.

 

2.2        If the Company declares
a cash dividend on the Shares, then, on the payment date of the dividend, the
Participant will be credited with dividend equivalents equal to the amount of
cash dividend per Share multiplied by the number of Restricted Stock Units
credited to the Participant through the record date for the dividend.  The dividend equivalents credited to the
Participant under the preceding sentence will be deemed to be reinvested in
additional Restricted Stock Units and credited to the Participant’s Restricted
Stock Unit account.  The Restricted Stock
Units credited as a result of such dividend equivalents will be subject to the
same terms regarding vesting and forfeiture as the Participant’s Restricted
Stock Units awarded hereunder, and, subject to the following sentence, will be
distributed in Shares at the same time and in the same proportion that the
Shares associated with the Participant’s Restricted Stock Units are delivered (or
forfeited at the time that the Participant’s Restricted Stock Units are
forfeited).  Fractional Shares may be
settled in cash or otherwise, including by rounding up or down to the nearest
whole number, as the Committee determines.

 

3          TERMINATION OF SERVICE AND OTHER
CHANGES IN SERVICE STATUS

 

3.1        If the Participant’s
Service (as defined in Section 3.3) terminates for any reason other than
Disability or death, the Participant will forfeit the right to receive Shares
underlying any Restricted Stock Units that have not vested at that time.  Notwithstanding anything in the Plan to the
contrary, for purposes of this Award Agreement, “Disability” shall mean the
condition of being “disabled” as provided in Code Section 409A(a)(2)(C).

 

3.2        If the Participant’s Service
terminates on account of the Disability or death of the Participant, the Shares
underlying all of the Restricted Stock Units awarded hereunder shall become
immediately vested and be distributed to the Participant or the Participant’s
beneficiary under the Plan as soon as practical.

 

3.3        For purposes of this
Award Agreement “Service” means the provision of services to the Company or its
Affiliates in the capacity of an Employee or a Director but not as a
Consultant.  For purposes of this Award
Agreement, the transfer of an Employee from the Company to an Affiliate, from
an Affiliate to the Company or from an Affiliate to another Affiliate shall not
be a termination of Service.  However, if
the Affiliate for which an Employee is providing services ceases to be an
Affiliate of the Company due to a sale, transfer or other reason, and the
Employee ceases to perform services for the Company or any Affiliate, the
Employee shall incur a termination of Service.

 

2

 

4          TIMING AND FORM OF PAYMENT

 

4.1        Once a Restricted Stock
Unit vests, the Participant will be entitled to receive a Share in its
place.  Delivery of the Share will be
made as soon as administratively feasible after its associated Restricted Stock
Unit vests, but no later than 21⁄2 months from the end of the calendar year in
which such vesting occurs.

 

5          WITHHOLDING OBLIGATIONS

 

5.1        Without limiting the
Company’s power or rights pursuant to Article 16 of the Plan, amounts
required by tax law or regulation to be withheld by the Company with respect to
any taxable event arising under this Award Agreement will be satisfied by
having Shares withheld in accordance with the first sentence of Section 16.2
of the Plan.  In addition, the
Participant may elect to deliver to the Company the necessary funds to satisfy
the withholding obligation, in which case there will be no reduction in the
Shares otherwise distributable to the Participant.

 

6          NOTICES

 

6.1        Any
notice or other communication required or permitted under this Award Agreement
must be in writing and must be delivered personally, sent by certified,
registered or express mail, or sent by overnight courier, at the sender’s
expense.  Notice will be deemed given
when delivered personally or, if mailed, three days after the date of deposit
or, if sent by overnight courier, on the regular business day following the
date sent.  Notice to the Company should
be sent to Morningstar, Inc., 22 West Washington Street, Chicago,
Illinois, 60602, Attention: General Counsel. 
Notice to the Participant should be sent to the address of the
Participant contained in the Company’s records. 
Either party may change the person and/or address to whom the other
party must give notice by giving such other party written notice of such change,
in accordance with the procedures described above.

 

7          CONSTRUCTION

 

7.1        The
Restricted Stock Units granted hereunder are subject to any rules and
regulations promulgated by the Committee pursuant to the Plan, now or hereafter
in effect.

 

7.2        The
Company and the Participant may amend this Award Agreement only by a written
instrument signed by both parties, provided, that the Company may amend this
Award Agreement without further action by the Participant if (i) such amendment
is deemed by the Company to be advisable or necessary to comply with applicable
law, rule, or, regulation, including Section 409A of the Code, or (ii) if
such amendment is not to the detriment of the Participant.

 

3

 

7.3        The
parties may execute this Award Agreement in one or more counterparts, all of
which together shall constitute but one Award Agreement.

 

IN WITNESS whereof the parties have
executed this Restricted Stock Unit Award Agreement as of the Grant Date
specified in Schedule 1.

 

Participant

 

	
   

  	
   

  
	
  (Participant’s signature)

  	
   

  

 

	
   

  	
   

  
	
  (Print name)

  	
   

  

 

Morningstar, Inc.

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Its:

  	
   

  	
   

  

 

PLEASE RETURN
BY:  «DATE»

 

4

 

SCHEDULE 1

 

DETAILS OF RESTRICTED STOCK UNIT
GRANTED TO THE PARTICIPANT

 

	
  Participant’s name:

  	
   

  	
  «First» «Name»

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
  «Grant_date»

  	
   

  	
   

  
	
  Number of Restricted Stock Units:

  	
   

  	
  «Total_RSU_Grant»

  	
   

  	
   

  
	
  Vesting of Restricted Stock Units:

  	
   

  	
  Subject to, and except as otherwise provided by, the Award Agreement,
  including Section 3.2 thereof, the Restricted Stock Units subject to the
  Award Agreement vest in installments, with each installment becoming vested
  on the “Vesting Date” shown below, if the Participant has remained in
  continuous Service until that Vesting Date. Notwithstanding the foregoing,
  the Board or the Committee may cause the Restricted Stock Units granted
  hereby to vest at an earlier date pursuant to its authority under the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of Restricted Stock Units

  	
   

  	
  Vesting Date

  
	
   

  	
   

  	
  «Year1Vest»

  	
   

  	
  «VestDateY1»

  
	
   

  	
   

  	
  «Year2Vest»

  	
   

  	
  «VestDateY2»

  
	
   

  	
   

  	
  «Year3Vest»

  	
   

  	
  «VestDateY3»

  
	
   

  	
   

  	
  «Year4Vest»

  	
   

  	
  «VestDateY4»

  
							

 

5

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