Document:

Exhibit 10.2

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), AND SUCH NOTE MAY NOT BE OFFERED,
SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION
OR AN EXEMPTION THEREFROM UNDER THE ACT AND THE RULES AND REGULATIONS
THEREUNDER AND SUCH APPLICABLE STATE SECURITIES LAWS.

 

THIS NOTE AND THE RIGHTS AND OBLIGATIONS EVIDENCED
HEREBY ARE SUBORDINATE TO THE INDEBTEDNESS (INCLUDING INTEREST) OF THE
BORROWERS REPRESENTED BY THAT CERTAIN AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT DATED AS OF SEPTEMBER 11, 2009 (THE “A&R LOAN AGREEMENT”), BY AND
AMONG THE SUBSIDIARY AND THE SENIOR LENDER, AS SUCH A&R LOAN AGREEMENT MAY BE
AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME OR ANY REFINANCINGS
THEREOF.

 

SENIOR SECURED
SUBORDINATED PROMISSORY NOTE

 

	
  $

  	
  , 2009

  

 

FOR VALUE RECEIVED, the undersigned, Xplore
Technologies Corp., a Delaware corporation, (the “Parent”) and Xplore
Technologies Corporation of America, a Delaware corporation and a wholly-owned
subsidiary of the Parent (the “Subsidiary” and collectively with the
Parent, the “Borrowers”), promise to pay to                   
(the “Holder”),
the principal sum of                                 
DOLLARS ($                ) with interest on the unpaid balance from
the date hereof, at the rate of 10% per annum on the unpaid principal amount,
in lawful money of the United States of America or as otherwise provided in Section 3
hereof, at                                                                           , or at such
other place as the
Holder may designate in writing. This Note is one of the senior secured
subordinated promissory notes (collectively, the “Notes”) referred to
in, and purchased pursuant to, the Note Purchase Agreement dated November 5,
2009, as amended from time to time, among the Borrowers and the Purchasers
named therein (the “Note Purchase Agreement”) and evidences a borrowing
from the Holder by the Borrowers under the Note Purchase Agreement.  The obligations of the Borrowers under this
Note are secured as provided in the Note Purchase Agreement and the Loan
Documents.

 

1.             Maturity Date.  The principal of
this Note, together will all unpaid interest and any other fees or expenses
otherwise due and owed to the Holder under the Note Purchase Agreement, shall
be due and payable on December 31, 2011 (the “Maturity Date”). The Borrowers
may prepay the Note in whole or in part, at any time prior to the Maturity
Date, without penalty.

 

2.             Pro-Rata Payment.  If the Borrowers
are not able to pay to the holders of the Notes the full amounts due at any
time when payments under the Notes become due and payable by the Borrowers,
either on the Maturity Date or upon the occurrence of

 

 

an Event of Default, or
upon prepayment at the option of the Borrowers, the holders of the Notes shall
share ratably in any distribution of the Borrowers pro rata in proportion to
the respective principal amounts of each such holder’s Notes and senior to the holders
of the Fall 2008 Notes (as defined in the Note Purchase Agreement) and the
Spring 2009 Notes (as defined in the Note Purchase Agreement).

 

3.             Payment of Interest.

 

(a)           Interest on the unpaid principal amount of this Note shall
be due and payable quarterly on March 31, June 30, September 30 and
December 31 of each calendar year the Note is outstanding commencing on December 31,
2009 and ending with a final quarterly interest payment on the Maturity Date in
cash or, at the option of the Parent, in shares of the Parent’s Common Stock at
75% of the then current market price of such Common Stock on the interest
payment date. For purposes hereof, the term then current market price means the
volume weighted average trading price, as traded on the OTC Bulletin Board or
such other securities exchange or quotation system which on the date of
determination constitutes the principal securities market for the shares of the
Parent’s Common Stock, for the five (5) trading days prior to the
applicable interest payment date.

 

(b)           All computations of interest payable hereunder shall
be made on the basis of the actual number of days in the period for which such
interest is payable and a year of 365 or 366 days, as applicable.

 

(c)           Notwithstanding any other provision of this Note, to
the extent permitted by applicable law, interest shall be due and payable on
any overdue installment of principal or interest on this Note (including
amounts due and unpaid upon any acceleration of this Note) at a rate equal to
the lesser of (i) fourteen percent (14%) and (ii) the maximum rate
permitted by applicable law (the “Maximum Rate”).

 

4.             Event of Default; Remedies.  Upon the occurrence and during the continuance
of an Event of Default, this Note may be accelerated in the manner described in
the Note Purchase Agreement and the Holder and the Agent shall have all of the
rights and remedies provided in the Note Purchase Agreement and the Loan
Documents.

 

5.             Waiver of Certain Rights. 
Subject to any applicable notice periods, all parties to this Note,
including Borrowers and any sureties, endorsers, or guarantors, hereby waive
protest, presentment, notice of dishonor, and notice of acceleration of
maturity and agree to continue to remain bound for the payment of principal,
interest and all other sums due under this Note notwithstanding any change or
changes by way of release, surrender, exchange, modification or substitution of
any security for this Note or by way of any extension or extensions of time for
the payment of principal and interest; and all such parties waive all and every
kind of notice of such change or changes and agree that the same may be without
notice or consent of any of them.

 

6.             Enforcement.  The Holder
may enforce this Note as described in the Note Purchase Agreement.

 

2

 

7.             Subordination.  Repayment of
this Note shall be subordinated to the extent and in the manner set forth in any
subordination agreement between the Borrowers, the Agent on behalf of all the
holders of the Notes and any Senior Lender of the Borrowers.

 

8.             Security.  This Note is
entitled to the benefits, granted to the Agent on behalf of the Purchasers, set
forth in the Security Agreement.

 

9.             Priority.  The indebtedness
under this Note shall rank senior to  the indebtedness
under the Fall 2008 Notes and the Spring 2009 Notes.

 

10.           Definitions.  Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to
such terms in the Note Purchase Agreement.

 

11.           Miscellaneous.  The following
general provisions apply:

 

(a)           This Note, and the obligations and rights of the
Borrowers and the Holder hereunder, shall be binding upon and inure to the
benefit of the Borrowers, the Holder, and their respective heirs, personal
representatives, successors and assigns.

 

(b)           All notices, requests, consents and demands hereunder shall
be made in writing in the manner described in the Note Purchase Agreement.

 

(c)           Whenever possible, each provision of this Note will be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Note is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Note will be reformed,
construed and enforced in such jurisdiction to the greatest extent possible to
carry out the intentions of the parties hereto.

 

(d)           This Note shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws
of the State of New York.  Each of the
parties hereto hereby irrevocably consents to the (non-exclusive) jurisdiction
of the courts of the State of New York and of any Federal court located therein
in connection with any suit, action or other proceeding arising out of or
relating to this Note and waives any objection to venue in the State of New
York.

 

(e)           Recourse under this Note shall be solely as provided
in the Note Purchase Agreement and the Loan Documents and in no event to the
officers, directors or shareholders of the Borrowers.

 

(f)            No provision in this Note, or in any instrument or any
other document evidencing the obligations hereunder, executed by the Borrowers
or any guarantor, endorser or other party now or hereafter becoming liable for
payment of this Note, shall require the payment or permit the collection of
interest in excess of the Maximum Rate. 
If any excess of interest in such respect is provided for herein or in
any such instrument, or other document, the provisions of this paragraph shall
govern, and 

 

3

 

neither of the Borrowers nor any guarantor, endorser
or other party shall be obligated to pay the amount of such interest to the
extent that it is in excess of the Maximum Rate.  The intention of the Borrowers and the Holder
being to conform strictly to any applicable federal or state usury laws now in
force, all promissory notes, instruments and other documents executed by the
Borrowers or any guarantor, endorser or other party evidencing the obligations
under this Note shall be held subject to reduction to the amount allowed under
said usury laws as now or hereafter construed by the courts having
jurisdiction.

 

(g)           Reference is hereby made to Section 11.18 of the
Note Purchase Agreement that authorizes the Agent and/or the holders of the
Notes holding at least 51% of the aggregate principal amount of the Notes then
outstanding to take action on behalf of all the holders of the Notes.

 

Signature on the following page

 

4

 

IN WITNESS WHEREOF, each
Borrower has caused this instrument to be executed in its corporate name by a
duly authorized officer, by order of its Board of Directors as of the day and year
first above written.

 

 

	
   

  	
  XPLORE TECHNOLOGIES
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Michael J. Rapisand

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  XPLORE TECHNOLOGIES
  CORPORATION OF AMERICA

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Michael J. Rapisand

  
	
   

  	
   

  	
  Chief Financial
  OfficerExhibit 10.3

 

THIS SECURITY AND THE SHARES OF COMMON STOCK WHICH MAY BE
PURCHASED UPON THE EXERCISE OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND SUCH SECURITIES MAY NOT
BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH
REGISTRATION AND REGISTRATION UNDER APPLICABLE STATE SECURITIES LAWS OR AN
EXEMPTION THEREFROM UNDER THE ACT AND THE RULES AND REGULATIONS THEREUNDER AND
SUCH APPLICABLE STATE SECURITIES LAWS.

 

WARRANT
TO PURCHASE

SHARES
OF

COMMON
STOCK OF

XPLORE
TECHNOLOGIES CORP.

 

	
  No.:
  W         -     

  	
  Number of
  Warrant Shares:                   

  
	
   

  	
   

  
	
  Date of Issuance:                   ,
  2009

  	
   

  

 

FOR VALUE RECEIVED,
subject to the provisions hereinafter set forth, the undersigned, Xplore
Technologies Corp., a corporation incorporated under the laws of the State of
Delaware (together with its successors and assigns, the “Issuer”),
hereby certifies that                    or [his/her/its] registered assigns is
entitled to subscribe for and purchase, during the period specified in this
Warrant, up to                      
shares of Common Stock of the duly authorized, validly issued, fully paid and
nonassessable shares of Common Stock of the Issuer, at an exercise price per
share equal to the Warrant Price then in effect, subject, however, to the
provisions and upon the terms and conditions hereinafter set forth.

 

This Warrant is issued
pursuant to the terms of a Note Purchase Agreement dated November 5, 2009,
among the Issuer, Xplore Technologies Corporation of America, a Delaware
corporation and wholly-owned subsidiary of the Issuer, and the purchasers
listed on Schedule I and Schedule II thereto (the “Note Purchase Agreement”).

 

Capitalized terms used in
this Warrant and not otherwise defined herein shall have the respective
meanings specified in Section 8 hereof.

 

1.             Expiration Date. This Warrant shall expire at 5:00 p.m. (Austin,
Texas time) on January 15, 2013 (the “Expiration Date”).  On the Expiration Date, all rights of the
Holder to purchase Common Stock pursuant to this Warrant shall immediately
terminate.

 

2.             Method of Exercise; Issuance of New Warrant; Transfer
and Exchange.

 

(a)           Time of Exercise. 
The purchase rights represented by this Warrant may be exercised by the Holder,
in whole or in part, at any time beginning on January 15, 2010 and ending
on the Expiration Date.

 

(b)           Method of Exercise. 
The Holder hereof may exercise this Warrant, in whole or in part, by the
surrender of this Warrant, with the exercise form in the form attached hereto
as Exhibit A, duly executed, at the principal office of the Issuer,
and by the payment to the 

 

 

Issuer of an amount of
consideration therefor equal to the Warrant Price in effect on the date of such
exercise multiplied by the number of Warrant Shares with respect to which this
Warrant is then being exercised. Payment may be made by (i) certified
check payable to the Issuer’s order or (ii) wire transfer of funds to the
Issuer.

 

(c)           Net Issue Election. 
The Holder may elect to receive, without the payment by the Holder of
any additional consideration, shares equal to the value of this Warrant or any
portion hereof by the surrender of this Warrant or such portion, together with
a duly executed notice of exercise in the form attached hereto as Exhibit B,
at the principal office of the Issuer. 
Thereupon, the Issuer shall issue to the Holder such number of shares of
Common Stock as is computed using the following formula:

 

	
   

  	
  X = Y (A-B)

  	
   

  
	
   

  	
         A

  	
   

  

 

Where

 

X =          the number of shares of Common Stock to be issued to
the Holder pursuant to this Section 2(c).

 

Y =          the number of shares of Common Stock covered by this
Warrant in respect of which the net issue election is made pursuant to this Section 2(c).

 

A =         the Per Share Market Value of one share of Common
Stock on the date immediately prior to the date the net issue election is made
pursuant to this Section 2(c).

 

B =          the Warrant Price in effect under this Warrant at the
time the net issue election is made pursuant to this Section 2(c).

 

(d)           Issuance of Common Stock Certificates. 
In the event of any exercise of the rights represented by this Warrant
in accordance with and subject to the terms and conditions hereof, (i) certificates
for the Warrant Shares so purchased shall be dated the date of such exercise
and delivered to the Holder hereof within a reasonable time, not exceeding ten (10) Trading
Days after such exercise, and the Holder hereof shall be deemed for all
purposes to be the Holder of the Warrant Shares so purchased as of the date of
such exercise, and (ii) unless this Warrant has expired, a new Warrant
representing the number of Warrant Shares, if any, with respect to which this
Warrant shall not then have been exercised shall also be issued to the Holder
hereof at the Issuer’s expense within such time.

 

(e)           Transferability of Warrant. 
Subject to Section 2(f), this Warrant may be transferred by a
Holder without the consent of the Issuer, subject to applicable law and the
right of the Issuer to require that the transferee be an “accredited investor”
as defined in Rule 501(a) promulgated under the Securities Act. If
transferred pursuant to this paragraph and subject to the provisions of
subsection (f) of this Section 2, this Warrant may be transferred on
the books of the Issuer by the Holder hereof, upon surrender of this Warrant at
the principal office of the Issuer, properly endorsed by the Holder executing
an assignment in the form attached hereto. This 

 

2

 

Warrant is exchangeable
at the principal office of the Issuer for Warrants for the purchase of the same
aggregate number of Warrant Shares.

 

(f)            Compliance with Securities Laws.

 

(i)            The Holder of this Warrant, by acceptance
hereof, acknowledges that this Warrant is being acquired by the Holder as
principal and solely for the Holder’s own account and not as a nominee for any
other party, and for investment, and that the Holder will not offer, sell,
pledge or otherwise dispose of this Warrant except pursuant to an effective registration
statement under the Securities Act, or an opinion of counsel in a form
reasonably satisfactory to the Issuer that such registration is not required
under the Securities Act, and in accordance with the rules and regulations
of all applicable securities laws.

 

(ii)           The Holder acknowledges and agrees that it will comply
with all applicable stock exchange or quotation system rules and any
applicable securities legislation, orders, rules or policy statements
concerning the purchase of Warrant Shares. All certificates representing
Warrant Shares issued upon exercise hereof shall be stamped or imprinted with a
legend in substantially the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN OPINION OF
COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE CORPORATION THAT
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH
ALL APPLICABLE STATE SECURITIES LAWS.

 

3.             Shares Fully Paid; Covenants; Loss of Warrants.

 

(a)           Shares Fully Paid. 
The Issuer represents, warrants, covenants and agrees that all Warrant
Shares which may be issued upon the exercise of this Warrant in accordance with
the terms hereof will, at the time of issuance, be duly authorized, validly
issued, fully paid and non-assessable and free from all taxes, liens and
charges created by Issuer.  The Issuer
further covenants and agrees that during the period within which this Warrant
may be exercised, the Issuer will at all times have authorized and reserved for
the purpose of the issue upon exercise of this Warrant a sufficient number of
shares of Common Stock to provide for the exercise of this Warrant.

 

(b)           Covenants.  The Issuer
shall not by any action including, without limitation, amending the Articles of
the Issuer, or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other action, avoid or
seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be reasonably necessary
or appropriate to protect the rights of the Holder hereof against dilution (but
only to the extent specifically provided in Section 4 hereof) or
impairment. Without limiting 

 

3

 

the generality of the
foregoing, the Issuer will (i) take all such action as may be reasonably
necessary in order that the Issuer may validly and legally issue fully paid and
nonassessable shares of Common Stock, free and clear of any liens, claims,
encumbrances and restrictions (other than such restrictions as are expressly
set forth herein and subject to applicable securities laws) upon the exercise
of this Warrant; and (ii) use its reasonable best efforts to obtain all
such authorizations, exemptions or consents from any public regulatory body
having jurisdiction thereof as may be reasonably necessary to enable the Issuer
to perform its obligations under this Warrant.

 

(c)           Loss, Theft, Destruction of Warrants. 
Upon receipt of evidence reasonably satisfactory to the Issuer of the
ownership of and the loss, theft, destruction or mutilation of any Warrant and,
in the case of any such loss, theft or destruction, upon receipt of indemnity
or security reasonably satisfactory to the Issuer or, in the case of any such
mutilation, upon surrender and cancellation of such Warrant, the Issuer will
make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant,
a new Warrant of like tenor and representing the right to purchase the same
number of shares of Common Stock.

 

4.             Adjustment of Warrant Price. 
The Warrant Price and kind of Securities purchasable upon the exercise
of this Warrant shall be subject to adjustment from time to time upon the
happening of certain events as follows:

 

(a)           Recapitalization; Reorganization;
Reclassification; Consolidation; Merger or Sale.

 

(i)            In case the Issuer at any time prior to
the Expiration Date shall do any of the following (each, a “Triggering Event”):  (A) consolidate with or merge into any
other Person and the Issuer shall not be the continuing or surviving
corporation of such consolidation or merger, or (B) permit any other
Person to consolidate with or merge into the Issuer and the Issuer shall be the
continuing or surviving Person but, in connection with such consolidation or
merger, any Capital Stock of the Issuer shall be changed into or exchanged for
Securities of any other Person or cash or any other property, or (C) transfer,
sell or otherwise dispose all or substantially all of its properties or assets
to any other Person, then, and in the case of each such Triggering Event,
proper provision shall be made so that, upon the basis and the terms and in the
manner provided in this Warrant, the Holder of this Warrant shall be entitled,
upon the exercise hereof at any time after the consummation of such Triggering
Event, to the extent this Warrant is not exercised prior to such Triggering
Event, to receive, and shall accept, at the Warrant Price in effect at the time
immediately prior to the consummation of such Triggering Event in lieu of the
shares of Common Stock issuable upon such exercise of this Warrant prior to
such Triggering Event, the Securities, cash and property to which such Holder
would have been entitled upon the consummation of such Triggering Event if such
Holder had exercised the rights represented by this Warrant immediately prior
thereto, subject to adjustments and increases (subsequent to such corporate
action) as nearly equivalent as possible to the adjustments provided for in
this Section 4.

 

(ii)           Notwithstanding anything contained in this Warrant to
the contrary, the Issuer will not, at any time prior to the Expiration Date,
effect any Triggering Event (other than a merger involving the Issuer and one
or more of its wholly-owned subsidiaries), 

 

4

 

unless, prior to the
consummation thereof, each Person (other than the Issuer) which as a result of
such Triggering Event may be required to deliver any Securities, cash or
property upon the exercise of this Warrant as provided herein shall assume, by
written instrument delivered to, and reasonably satisfactory to, the Holder, (A) the
obligations of the Issuer under this Warrant (and if the Issuer shall survive
the consummation of such Triggering Event, such assumption shall be in addition
to, and shall not release the Issuer from, any continuing obligations of the
Issuer under this Warrant) and (B) the obligation to deliver to such
Holder such Securities, cash or property as in accordance with the foregoing
provisions of this subsection (a).

 

(b)           Subdivision or Consolidation of Common
Stock.  If the Issuer, at any time prior to the
Expiration Date, shall subdivide or consolidate the outstanding shares of
Common Stock (A) in case of subdivision of shares, the Warrant Price shall
be proportionately reduced (as at the effective date of such subdivision) to
reflect the increase in the total number of shares of Common Stock outstanding
as a result of such subdivision, or (B) in the case of a consolidation of
the outstanding shares of Common Stock, the Warrant Price shall be
proportionately increased (as at the effective date of such consolidation) to
reflect the reduction in the total number of shares of Common Stock outstanding
as a result of such consolidation.

 

(c)           Certain Dividends and Distributions. 
If the Issuer, at any time prior to the Expiration Date, shall:

 

(i)            Stock Dividends. 
Pay a stock dividend to, or make any other distribution to, its holders
of Common Stock, the Warrant Price shall be adjusted, as at the date of such
payment or other distribution, to that price determined by multiplying the
Warrant Price in effect immediately prior to such payment or other
distribution, by a fraction (1) the numerator of which shall be the total
number of shares of Common Stock outstanding immediately prior to such dividend
or distribution, and (2) the denominator of which shall be the total
number of shares of Common Stock outstanding immediately after such dividend or
distribution (plus in the event that the Issuer paid cash for fractional
shares, the number of additional shares which would have been outstanding had
the Issuer issued fractional shares in connection with said dividends); or

 

(ii)           Other Dividends.  Pay a cash
dividend on, or make any distribution of its assets upon or with respect to
(including, but not limited to, a distribution of its property as a dividend in
liquidation or partial liquidation or by way of return of capital), the Common
Stock (other than as described in clause (i) of this subsection (c)), then
on the record date for such payment or distribution, this Warrant shall
represent a right to acquire upon exercise, in addition to the number of
Warrant Shares under this Warrant, and without payment of any additional
consideration therefor, the amount of such dividend or additional stock or
other Securities or property of the Issuer to which such Holder would have been
entitled upon such date if such Holder had exercised this Warrant immediately
prior thereto.

 

(d)           Adjustment of Warrant Price Upon Issuance
of Additional Common Stock. If the Issuer, at any time prior to the Expiration
Date, shall issue Additional Common Stock at a price per share, or with an
exercise price or conversion price (as the case may be), lower than the Warrant
Price in effect at such time, then the Warrant Price shall be reduced,
concurrently with 

 

5

 

such issue, to a price
(calculated to the nearest one-hundredth of a cent) determined in accordance
with the following formula:

 

WP2 = (WP1 * (A + B)) / (A + C)

 

For purposes of the foregoing formula, the following
definitions shall apply:

 

(A)          “WP2”
shall mean the Warrant Price in effect immediately after such issue of
Additional Common Stock;

 

(B)           “WP1”
shall mean the Warrant Price in effect immediately prior to such issue of
Additional Common Stock;

 

(C)           “A” shall mean the number of shares of
Common Stock outstanding immediately prior to such issue of Additional Common
Stock (treating for this purpose as outstanding all shares of Common Stock
issuable upon conversion or exchange of all Convertible Securities outstanding
immediately prior to such issue);

 

(D)          “B” shall mean the number of shares of
Common Stock that would have been issued if such Additional Common Stock had
been issued at a price per share equal to WP1;
and

 

(E)           “C” shall mean the number of such
Additional Common Stock issued in such transaction.

 

(e)           Outstanding Common Stock. With respect to the making of
adjustments in the Warrant Price, the number of shares of Common Stock at any
time outstanding shall not include any shares thereof then directly or
indirectly owned or held by or for the account of the Issuer or any of its
Subsidiaries.

 

(f)            Other Action Affecting the Common Stock. In case the Issuer at any time prior to
the Expiration Date shall take any action affecting its shares of Common Stock,
other than an action described in any of the foregoing subsections (a) through
(d) of this Section 4, inclusive, and the failure to make any
adjustment would not fairly protect the purchase rights represented by this
Warrant in accordance with the essential intent and principle of this Section 4,
then, the Warrant Price shall be adjusted in such manner and at such time as
the Board may in good faith determine to be equitable in the circumstances.

 

(g)           Form of Warrant after Adjustments. 
The form of this Warrant need not be changed because of any adjustments
in the Warrant Price or the number and kind of Securities purchasable upon the
exercise of this Warrant.

 

5.             Notice of Adjustments.  Whenever the
Warrant Price shall be adjusted pursuant to Section 4 hereof (for purposes
of this Section 5, an “adjustment”), the Issuer shall deliver
notice to the Holder of such adjustment and shall cause its Chief Financial
Officer to prepare and execute a certificate setting forth, in reasonable
detail, the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated (including a description of the
basis on which the Board made any determination hereunder), the calculations 

 

6

 

made in connection
therewith and the Warrant Price after giving effect to such adjustment, and
shall cause copies of such certificate to be delivered to the Holder of this
Warrant promptly after each adjustment. Any failure of the Chief Financial
Officer to deliver such certificate shall not prejudice the rights of the
Holder in connection with the applicable adjustment. Any dispute between the
Issuer and the Holder with respect to the matters set forth in such certificate
shall be determined by the Issuer’s independent outside auditors or, if they
are unable to act, by such firm of independent chartered accountants as may be
selected by the Board, and any such determination shall be conclusive and
binding on the Issuer, the Holder and the transfer agent for the Common Stock.
The firm selected by the Issuer as provided in the preceding sentence shall be
instructed to deliver a written opinion as to such matters to the Issuer and
such Holder within thirty days after submission to it of such dispute.  The fees and expenses of such accounting firm
shall be borne equally by such Holder and the Issuer.

 

6.             Fractional Shares.  No fractional
Warrant Shares will be issued in connection with any exercise hereof, but in
lieu of such fractional shares, the Issuer shall make a cash payment therefor
equal in amount to the product of the applicable fraction multiplied by the Per
Share Market Value then in effect.

 

7.             Rules Regarding Calculation of Adjustment of
Warrant Price.

 

(a)           No adjustment in the Warrant Price will
be required unless such adjustment would result in a change of at least 1% in
the prevailing Warrant Price; provided, however, that any adjustments which,
except for the provisions of this subsection would otherwise have been required
to be made, will be carried forward and taken into account in any subsequent
adjustment.

 

(b)           If the Issuer sets a record date to
determine the holders of Common Stock for the purpose of entitling them to
receive any dividend or distribution or sets a record date to take any other
action and thereafter and before the distribution to such shareholders of any
such dividend or distribution or the taking of any other action, legally
abandons its plan to pay or deliver such dividend or distribution or take such
other action, then no adjustment in the Warrant Price shall be made.

 

8.             Definitions.  For the
purposes of this Warrant, the following terms have the following meanings:

 

“Additional Common Stock” means all shares of
Common Stock and Convertible Securities issued by the Issuer prior to the
Expiration Date, except (i) the Warrant Shares, (ii) Common Stock or
Convertible Securities issued in connection with a bona fide business
acquisition of or by the Issuer, whether by merger, consolidation, sale of
assets, sale or exchange of stock or otherwise; (iii) Common Stock
(including Common Stock issued upon the conversion or exercise of Convertible
Securities) or Convertible Securities issued to financial institutions, other
financing sources, or lessors, vendors, suppliers and other third party service
providers in connection with commercial credit arrangements, equipment
financings, supply and materials purchases, third party service procurement or
similar transactions as approved by the Board; (iv) Common Stock issued
pursuant to the exercise of options and warrants outstanding on the date of
issuance of this Warrant; (v) Common Stock issued in a bona fide firm
commitment 

 

7

 

underwritten public
offering, (vi) Common Stock (including Common Stock issued upon the
conversion or exercise of Convertible Securities) or Convertible Securities
issued to joint venture or strategic partners pursuant to agreements authorized
by the Board, (vii) Common Stock (including Common Stock issued upon the
conversion or exercise of Convertible Securities) or Convertible Securities
issued to employees, consultants, officers or directors of the Issuer pursuant
to compensatory stock purchase or stock option plans, agreements or
arrangements approved by the Board, (viii) Common Stock (including Common
Stock issued upon the conversion or exercise of Convertible Securities) or
Convertible Securities issued to underwriters, brokers, dealers, finders or
others in connection with fundraising (debt or equity) activities, (ix) Common
Stock issued upon conversion or exercise of Convertible Securities outstanding
on the date of issuance of this Warrant, (x) Common Stock issued as
dividends on any series of the Issuer’s preferred stock or debt, whether
existing now or in the future, and (xi) Common Stock issued in connection with
a stock dividend or distribution covered by Section 4(c)(i) or (ii).

 

“Articles of the Issuer” means the Certificate
of Incorporation and by-laws of the Issuer as in effect on the date of issuance
of this Warrant, and as hereafter from time to time amended, modified,
supplemented or restated in accordance with the terms hereof and thereof and
pursuant to applicable law.

 

“Board” shall mean the Board of Directors of
the Issuer.

 

“Business Day” means any day other than
Saturday, Sunday or a day on which chartered banks are closed for business in
New York, New York.

 

“Capital Stock” means (i) any and all
shares, interests, participations or other equivalents of or interests in
(however designated) corporate stock, including, without limitation, shares of
preferred stock, (ii) all partnership interests (whether general or
limited) in any Person which is a partnership, (iii) all membership
interests or limited liability company interests in any limited liability
company, and (iv) all equity or ownership interests in any Person of any
other type.

 

“Common Stock” means the shares of Common
Stock, par value $0.001 per share, of the Issuer and any other shares of
Capital Stock into which such stock may hereafter be changed.

 

“Convertible Securities” means evidences of
indebtedness, Capital Stock or other Securities which are or may be at any time
convertible into or exchangeable or exercisable for shares of Common
Stock.  The term “Convertible Security”
means one of the Convertible Securities.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended, or any similar Federal statute then in effect.

 

“Expiration Date” has the meaning specified in Section 1
hereof.

 

8

 

“Governmental Authority” means any
governmental, regulatory or self-regulatory entity, department, body, official,
authority, commission, board, agency or instrumentality, whether Federal,
state, provincial or local, and whether domestic or foreign.

 

“Holder” mean the Person who shall from time to
time own this Warrant.

 

“Issuer” means Xplore Technologies Corp., and
its successors.

 

“Person” means an individual, corporation,
limited liability company, partnership, joint stock company, trust,
unincorporated organization, joint venture, Governmental Authority or other
entity of whatever nature.

 

“Per Share Market Value” means on any
particular date the average of the closing bid and ask prices on a national
securities exchange or quotation system which on the date of determination
constitutes the principal trading market for the shares of Common Stock.

 

“Securities” means any debt or equity
securities of the Issuer, whether now or hereafter authorized, any instrument
convertible into or exchangeable for Securities or a Security, and any option,
warrant or other right to subscribe for, purchase or acquire any Security.

 

“Securities Act” means the Securities Act of
1933, as amended, or any similar Federal statute then in effect.

 

“Security” means one of the Securities.

 

“Subsidiary” means any corporation a majority
of whose outstanding Voting Stock shall at the time be owned directly or
indirectly by the Issuer or by one or more of its Subsidiaries, or by the
Issuer and one or more of its Subsidiaries.

 

“Trading Day” means a day on which the Common
Stock is traded on a national securities exchange or quotation system which on
the date of determination constitutes the principal trading market for the
shares of Common Stock.

 

“Triggering Event” has the meaning specified in
Section 4(a)(i) hereof.

 

“Voting Stock”, as applied to the Capital Stock
of any corporation, means Capital Stock of any class or classes (however
designated) having ordinary voting power for the election of a majority of the
members of the Board of Directors (or other governing body) of such
corporation, other than Capital Stock having such power only by reason of the
happening of a contingency.

 

“Warrant Price”
means $        per share, subject to
adjustment pursuant hereto.

 

“Warrant Shares” means shares of Common Stock
issuable upon exercise of this Warrant or any portion thereof, as the case may
be, issued pursuant to the terms hereof, or otherwise issuable pursuant to any
other warrants of like tenor issued pursuant to the provisions of hereof.

 

9

 

9.             Other Notices.  In case at any time:

 

(A)          the Issuer shall make any distributions
to the holders of Common Stock; or

 

(B)           the Issuer shall authorize the granting
to all holders of its Common Stock of rights to subscribe for or purchase any
shares of Common Stock of any class or of any Convertible Securities or other
rights; or

 

(C)           there shall be any reclassification of
the Capital Stock of the Issuer; or

 

(D)          there shall be any (i) consolidation
or merger involving the Issuer or (ii) sale, transfer or other disposition
of all or substantially all of the Issuer’s property, assets or business
(except a merger or other reorganization in which the Issuer shall be the
surviving corporation and its Common Stock shall continue to be outstanding and
unchanged and except a consolidation, merger, sale, transfer or other
disposition involving a wholly-owned Subsidiary); or

 

(E)           there shall be a voluntary or involuntary
dissolution, liquidation or winding-up of the Issuer or any partial liquidation
of the Issuer or distribution to holders of Common Stock;

 

then, in each of such cases, the Issuer shall give
written notice to the Holder of the date on which (i) the books of the
Issuer shall close or a record shall be taken for such dividend, distribution
or subscription rights or (ii) such reorganization, reclassification,
consolidation, merger, disposition, dissolution, liquidation or winding-up, as
the case may be, shall take place.  Such
notice also shall specify the date as of which the holders of Common Stock of
record shall participate in such dividend, distribution or subscription rights,
or shall be entitled to exchange their certificates for Common Stock, for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be.  Such
notice shall be given at least twenty days prior to the action in question and
not less than twenty days prior to the record date or the date on which the
Issuer’s transfer books are closed in respect thereto.

 

10.           Amendment and Waiver. 
Any term, covenant, agreement or condition in this Warrant may be
amended, or compliance therewith may be waived (either generally or in a
particular instance and either retroactively or prospectively), by a written
instrument or written instruments executed by the Issuer and the Holder.  Notwithstanding the foregoing, reference is
hereby made to Section 11.18 of the Note Purchase Agreement that
authorizes the Agent (as defined in the Note Purchase Agreement) and/or holders
of the Notes (as defined in the Note Purchase Agreement) holding at least 51%
of the aggregate principal amount of the Notes then outstanding to take action
on behalf of all the holders of the Notes to amend, modify or obtain a waiver
of any provision of this Warrant.

 

11.           Governing Law.  THIS
WARRANT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE 

 

10

 

STATE
OF DELAWARE WITHOUT REGARDS TO ITS CONFLICT OF LAW PRINCIPLES.  THE HOLDER HEREBY IRREVOCABLY CONSENTS TO THE
JURISDICTION AND VENUE OF ANY COURT WITHIN THE STATE OF DELAWARE, IN CONNECTION
WITH ANY MATTER BASED UPON OR ARISING OUT OF THIS WARRANT OR THE MATTERS
CONTEMPLATED HEREIN, AND AGREES THAT PROCESS MAY BE SERVED UPON THE HOLDER
IN ANY MANNER AUTHORIZED BY THE LAWS OF THE STATE OF DELAWARE FOR SUCH PERSONS.

 

12.           Notices.  Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective
on the earlier of (i) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified for notice prior to 5:00 p.m., (Austin, Texas time), on a
Business Day, (ii) the Business Day after the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice later than 5:00 p.m., (Austin, Texas
time), on any date and earlier than 11:59 p.m., (Austin, Texas time), on
such date, (iii) the Business Day following the date of mailing, if sent
by nationally recognized overnight courier service, (iv) five (5) days
following the date of mailing, if sent by registered or certified mail (postage
prepaid return receipt requested), or (v) actual receipt by the party to
whom such notice is required to be given. 
The addresses for such communications shall be with respect to the
Holder of this Warrant or of Warrant Shares issued pursuant hereto, addressed
to such Holder at its last known address or facsimile number appearing on the
books of the Issuer maintained for such purposes, or with respect to the
Issuer, addressed to:

 

Xplore Technologies Corp.

14000 Summit Drive, Suite 900

Austin, Texas 78728

Attention: Michael J.
Rapisand

Facsimile: (512) 249-5630

 

13.           Remedies.  The Issuer
stipulates that the remedies at law of the Holder of this Warrant in the event
of any default or threatened default by the Issuer in the performance of or
compliance with any of the terms of this Warrant are not and will not be
adequate and that, to the fullest extent permitted by law, such terms may be
specifically enforced by a decree for the specific performance of any agreement
contained herein or by an injunction against a violation of any of the terms
hereof or otherwise.

 

14.           Successors and Assigns. 
This Warrant and the rights evidenced hereby shall inure to the benefit
of and be binding upon the successors and assigns of the Issuer, the Holder
hereof and (to the extent provided herein) the Holders of Warrant Shares issued
pursuant hereto, and shall be enforceable by any such Holder or Holder of
Warrant Shares.

 

15.           Modification and Severability. 
If, in any action before any court or agency legally empowered to
enforce any provision contained herein, any provision hereof is found to be
unenforceable, then such provision shall be deemed modified to the extent
necessary to make it enforceable by such court or agency.  If any such provision is not enforceable as
set forth in the 

 

11

 

preceding sentence, the
unenforceability of such provision shall not affect the other provisions of
this Warrant, but this Warrant shall be construed as if such unenforceable
provision had never been contained herein.

 

16.           Headings.  The headings
of the Sections of this Warrant are for convenience of reference only and shall
not, for any purpose, be deemed a part of this Warrant.

 

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

 

12

 

IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day
and year first above written.

 

 

	
   

  	
  XPLORE TECHNOLOGIES CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Michael J. Rapisand

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

 

EXHIBIT A

 

Form of Exercise

 

(to be executed by the Holder)

 

The Holder hereby
exercises its rights to subscribe for and purchase          
shares of Common Stock as defined in the attached Warrant of XPLORE TECHNOLOGIES
CORP. evidenced by the attached Warrant and herewith makes payment of the
Warrant Price, as defined in the within Warrant, in the amount of $           
by way of:

 

$           certified
check payable to the Issuer’s order; or

 

$           
wire transfer of funds to the Issuer.

 

Please issue a
certificate in the name of the Holder for the shares of Common Stock in
accordance with the instructions given below and issue a replacement Warrant in
the name of the Holder for the unexercised balance, if any, of the right to
purchase Warrant Shares evidenced by the within Warrant which were not
exercised hereby.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Signature of Holder

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Instructions for
  registration of shares

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Social Security or
  Employer Identification

  	
   

  	
   

  
	
  Number of Holder:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address of Holder:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Street

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  City, State and Zip
  Code

  	
   

  	
   

  
						

 

A-1

 

EXHIBIT B

 

NET ISSUE NOTICE OF
EXERCISE

 

TO:                            Xplore Technologies Corp

14000 Summit Drive, Suite 900

Austin, Texas 78728

facsimile number (512) 336-7791

Attention: Michael Rapisand

 

1.   The undersigned hereby elects to purchase
               
shares of Common Stock as defined in the attached Warrant of XPLORE
TECHNOLOGIES CORP. pursuant to the terms of this Warrant, and hereby elects
under Section 2(c) of this Warrant to surrender the right to purchase
               
shares of Common Stock pursuant to this Warrant for a net issue exercise with
respect
to               
shares of Common Stock.

 

2.   Please issue a certificate or certificates
representing said shares of Common Stock in the name of the undersigned or in
such other name as is specified below:

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Address)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

B-1

 

ASSIGNMENT

 

FOR VALUE RECEIVED,                         
hereby sells, assigns and transfers unto                         the
within Warrant and all rights evidenced thereby and does irrevocably constitute
and appoint                         ,
attorney, to transfer the said Warrant on the books of the within named
corporation.

 

	
  Dated:

  	
   

  	
  Signature: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

PARTIAL ASSIGNMENT

 

FOR VALUE RECEIVED,                      
hereby sells, assigns and transfers unto                      
the right to purchase                      
Warrant Shares evidenced by the within Warrant together with all rights
therein, and does irrevocably constitute and appoint                      ,
attorney, to transfer that part of the said Warrant on the books of the within
named corporation.

 

	
  Dated:

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]