Document:

Exhibit 10.1

 

AMENDMENT NO. 2 TO THE REGISTRATION RIGHTS AGREEMENT

 

This AMENDMENT NO. 2 (this “Amendment Agreement”) to the Registration Rights Agreement dated as of December 16, 2010 (as amended, restated, supplemented or otherwise modified from time to time, including by Amendment No. 1 thereto dated February 14, 2011, the “Agreement”) by and among Xplore Technologies Corp., a Delaware corporation (the “Company”), and the signatories hereto is entered into effective as of October 14, 2011.

 

R  E  C  I  T  A  L  S:

 

WHEREAS, the Company and the existing holders of shares of Series D Preferred Stock are parties to the Agreement, which sets forth the registration rights granted to the holders of Series D Preferred Stock in connection with the shares of Company common stock issuable upon the conversion of the Series D Preferred Stock;

 

WHEREAS, the Company intends to issue and sell up to 4,000,000 shares of Series D Preferred Stock to accredited investors pursuant to a private placement (the “Offering”);

 

WHEREAS, the Company and the undersigned holders desire to amend the Agreement, effective as of the date hereof, to, among other things, (i) allow for the purchasers of shares of Series D Preferred Stock issued in the Offering (the “Additional Investors”) to become parties to the Agreement and be granted the registration rights set forth therein, (ii) amend the definition of “Investors” to include the Additional Investors and (iii) amend the definition of “Preferred Shares” to include the shares of Series D Preferred Stock issued in the Offering;

 

WHEREAS, Section 10(i) of the Agreement provides that the Company will not grant any additional registration rights after the date of the Agreement without the consent of the holders of at least a majority of the Registrable Stock unless such registration rights are subordinate in all respects to the rights contained in the Agreement;

 

WHEREAS, Section 10(d) of the Agreement provides that amendments to the Agreement may only become effective with the written consent of the Company and the holders of at least a majority of the outstanding shares of Registrable Stock (assuming the conversion of all Preferred Shares into Registrable Stock);

 

WHEREAS, the holders of at least a majority of the outstanding shares of Registrable Stock wish to consent to the grant of the registration rights set forth in the Agreement to the Additional Investors; and

 

WHEREAS, the Company and the holders of at least a majority of the outstanding shares of Registrable Stock under the Agreement wish to consent to the amendments contained herein and, upon execution of this Amendment Agreement by the Company and such holders, the requirements of Sections 10(d) and 10(i) of the Agreement will be satisfied.

 

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties do hereby agree, as follows:

 

 

1.             Definitions in this Amendment Agreement.  Except as otherwise defined in this Amendment Agreement (including the preamble and the recitals hereof), capitalized terms are used herein with the meanings ascribed to such terms in the Agreement.

 

2.             Consent to Additional Parties to the Agreement.  The undersigned holders of at least a majority of the outstanding shares of Registrable Stock hereby consent to the addition of the Additional Investors as parties to the Agreement and to the grant of the registration rights set forth in the Agreement to such Additional Investors.  The Company shall require each Additional Investor to agree in writing to be subject to the terms and conditions of the Agreement, and that such terms and conditions shall inure to the benefit of such Additional Investors, by executing and delivering a Joinder Agreement, in substantially the form attached as Exhibit A, and upon execution and delivery of such Joinder Agreement, each such Additional Investor shall be deemed to be an Investor under the Agreement.

 

3.             Consent to Amendments to the Agreement.  The Company and the undersigned holders of at least a majority of the outstanding shares of Registrable Stock hereby consent to the amendments to the Agreement contained in this Amendment Agreement and acknowledge that, upon execution of this Amendment Agreement by the Company and such holders, the requirements of Sections 10(d) and 10(i) of the Agreement will be satisfied.

 

4.             Amendment to Recitals of the Agreement.  The Recitals to the Agreement are hereby amended and restated in their entirety to read as follows:

 

“WHEREAS, the Company and the other parties hereto wish to provide certain arrangements with respect to the registration of shares of common stock, $0.001 par value, of the Company (the “Common Stock”) under the Securities Act (as defined below);

 

WHEREAS, the Company and certain of the Investors who are signatories thereto (the “Majority Noteholders”) entered into an Exchange Agreement, dated November 3, 2010 (the “Exchange Agreement”), pursuant to which, subject to the terms and conditions therein, such Investors converted and exchanged all of the outstanding indebtedness of the Company under those certain Note Purchase Agreements, dated September 5, 2008, February 27, 2009 and November 5, 2009, each as amended, for, and the Company issued, 9,498,364 shares of the Company’s Series D Participating Convertible Preferred Stock, par value $0.001 per share (the “Series D Preferred Stock”);

 

WHEREAS, in February 2011, SG Phoenix LLC, on behalf of the Company, and certain additional investors (the “February 2011 Additional Investors”) entered into subscription agreements, pursuant to which, subject to the terms and conditions therein, the Company issued and sold to such February 2011 Additional Investors, and such February 2011 Additional Investors purchased from the Company, an aggregate of up to 1,000,000 shares of Series D Preferred Stock (the “February 2011 Offering”);

 

WHEREAS, SG Phoenix LLC, on behalf of the Company, and certain additional investors (the “Additional Investors”) have entered into additional subscription

 

2

 

agreements, pursuant to which, subject to the terms and conditions therein, the Company is issuing and selling to such Additional Investors, and such Additional Investors are purchasing from the Company, an aggregate of up to 4,000,000 shares of Series D Preferred Stock (the “Offering”); and

 

WHEREAS, it is a condition to the obligations of the Investors under the Exchange Agreement, the February 2011 Additional Investors pursuant to the February 2011 Offering and the Additional Investors pursuant to the Offering that this Agreement be executed by the parties hereto, and the parties are willing to execute this Agreement and to be bound by the provisions hereof.”

 

5.             Amendment to Definition of “Investors” in the Agreement.  The definition of “Investors” in the Agreement is hereby amended effective as of the date hereof to include the Additional Investors in the Offering.

 

6.             Amendment to Definition of “Preferred Shares” in the Agreement.  The definition of “Preferred Shares” in Section 1 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

““Preferred Shares” means shares of Series D Preferred Stock issued to the Investors pursuant to the Exchange Agreement, the February 2011 Offering or the Offering, or by way of a stock dividend, stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization.”

 

7.             Effectiveness of Amendments.  The amendments to the Agreement contained in this Amendment Agreement shall become effective on and as of the date hereof.  From and after such date, each reference in the Agreement to the “Agreement”, or any like expression referring to the Agreement, shall be deemed to refer to the Agreement as amended by this Amendment Agreement.  The Agreement, as amended by Amendment No. 1, shall remain unchanged and in full force and effect, other than as amended hereby.

 

8.             Counterparts; Facsimile.  This Amendment Agreement 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.             Governing Law.  This Amendment Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its conflict of law principles.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK
 SIGNATURE PAGE TO FOLLOW]

 

3

 

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

 

	
COMPANY:
    	
XPLORE   TECHNOLOGIES CORP.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/Michael J. Rapisand
    
	
 
    	
 
    	
Name:   Michael J. Rapisand
    
	
 
    	
 
    	
Title:     Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
REQUIRED   HOLDERS:
    	
PHOENIX   VENTURE FUND LLC   
    
	
 
    	
 
    
	
 
    	
By:
    	
SG   Phoenix Ventures LLC,
    
	
 
    	
 
    	
its   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/Andrea Goren
    
	
 
    	
 
    	
Name:   Andrea Goren 
    
	
 
    	
 
    	
Title:     Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/Philip S. Sassower
    
	
 
    	
PHILIP   S. SASSOWER
    
	
 
    	
 
    
	
 
    	
PHOENIX   ENTERPRISES FAMILY FUND LLC 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/Philip S. Sassower
    
	
 
    	
 
    	
Name:   Philip S. Sassower
    
	
 
    	
 
    	
Title:     Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
JAG   MULTI INVESTMENTS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/Alexander M. Goren
    
	
 
    	
 
    	
Name:   Alexander M. Goren
    
	
 
    	
 
    	
Title:     Managing Member
    
	
 
    	
 
    
	
 
    	
ANDAX   LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/Andrea Goren
    
	
 
    	
 
    	
Name:   Andrea Goren 
    
	
 
    	
 
    	
Title:   Managing Member
    
					

 

 

	
 
    	
/s/James J. O’Donnell 
    
	
 
    	
JAMES   J. O’DONNELL
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/Stanley Leon Gilbert 
    
	
 
    	
STANLEY   LEON GILBERTOctober 18, 2011 Exhibit 4.1

Exhibit 4.1

PROMISSORY NOTE

	
$500,000
	
October 11, 2011     

FOR VALUE RECEIVED, ZOOM USA HOLDINGS, INC. (the "Maker"), with an address at
Sanlitum SOHO, Building A, No. 8 Workers Stadium North Road, Chaoyang District, Beijing, China 100027, promises to pay to the
order of THE CELLULAR NETWORK COMMUNICATIONS GROUP, INC. (the "Payee"), with an address at 11-11
44th Drive, Long Island City, New York 11101, or at such other place as the Payee may from time to time designate in
writing, the principal sum of FIVE HUNDRED THOUSAND DOLLARS AND NO CENTS ($500,000).  This promissory note (the
"Note") shall bear interest at the rate of two percent (2%) per annum.  This Note shall be payable quarterly with the initial
payment due on the three (3) month anniversary of the date hereof and subsequent payments due on the same day of each
subsequent quarter through October 11, 2014.  An amortization schedule setting forth the amount of each such quarterly payment is
attached hereto.      

This Note is given as a portion of the purchase price for the CNCG Interest (as such term is defined in that
certain Securities Purchase Agreement, of even date herewith, by and among Zoom Technologies, Inc., the Maker, Portables
Unlimited, LLC and the Payee (the "Securities Purchase Agreement")) being sold pursuant to the Securities Purchase
Agreement.   

If any of the following events or conditions shall happen or occur (in any case, an "Event of Default"):
(1) the default by the Maker in the due and punctual payment of any amount due hereunder and the continuance thereof for a period of
ten (10) days following receipt of written notice of such default from the Payee; (2) the inability of the Maker, and/or the Maker's
admission that it is unable, to pay its debts as they become due; (3) the application by the Maker for, or consent by the Maker to, the
appointment of a receiver, trustee or liquidator of itself or of its property; (4) a general assignment by the Maker for the benefit of
creditors; (5) the filing by the Maker of a voluntary petition in bankruptcy or a petition or an answer seeking reorganization or an
arrangement with creditors; (6) the Maker having an involuntary petition in bankruptcy filed against it which is not dismissed, discharged
or stayed within sixty (60) days; (7) the sale, exchange or other transfer of all or substantially all of the assets of the Maker, (8) the sale,
exchange, issuance or other transfer of any interest in the Maker (whether equity or voting), (9) a change in control of the Maker,
whether equity or voting; or (10) the Maker permanently ceasing to do business, then the Payee may, by written notice to the Maker,
declare the entire unpaid amount of this Note then outstanding to be forthwith due and payable whereupon the same shall become
forthwith due and payable.

Notwithstanding anything to the contrary contained in this Note, the rate of interest payable on this Note shall
never exceed the maximum rate of interest permitted under applicable law. 

This Note may not be waived, changed, modified or discharged orally, but only by an agreement in writing,
signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.

Should the indebtedness represented by this Note or any part thereof be collected at law or in equity, or in
bankruptcy, receivership or any other court proceedings (whether at the trial or

appellate level), or should this Note be placed in the
hands of any attorneys for collection upon the occurrence of an Event of Default, the Maker agrees to pay, in addition to all other
amounts due and payable hereunder, all costs and expenses of collection, including reasonable attorneys' fees. 

The Maker, for itself and its representatives, successors and assigns, expressly (a) waives
presentment, demand, protest, notice of dishonor, notice of non-payment, notice of maturity, notice of protest, diligence in collection,
and the benefit of any applicable exemptions, including, but not limited to, exemptions claimed under insolvency laws, and (b) consents
that the Payee may release or surrender, exchange or substitute any property or other collateral or security now held or which may
hereafter be held as security for the payment of this Note, and/or may extend the time for payment and/or otherwise modify the terms of
payment of any part or the whole of the debt evidenced hereby.

If the Maker shall fail to pay any amounts due hereunder following an Event of Default hereunder, then
the entire unpaid principal amount shall thereafter bear interest at the rate of eighteen percent (18%) per annum from the date of such
Event of Default.

Notwithstanding any other provision of this Note, all payments made hereunder shall be applied first to
interest and then to principal.

Any notice, demand or request relating to any matter set forth herein shall be in writing and shall be deemed
effective when hand delivered, when mailed by registered or certified mail (postage prepaid, return receipt requested) or by overnight
mail or courier, to the Maker or the Payee or other holder of this Note at its address stated herein or at such other address of which it
shall have notified the party giving such notice in writing as aforesaid. 

The Maker acknowledges and agrees that the obligations under this Note are unconditional and are not subject
to any defense, counterclaim, or right of offset or setoff.

This Note may be prepaid in whole or in part without premium or penalty, provided that any such payment
includes all interest accrued on the outstanding principal balance through the date of and including the date of such payment.

Maker hereby represents, warrants, certifies and declares that all acts, conditions and things required to be
done and performed and to have happened precedent to the execution and delivery of this Note and to constitute this Note a legal, valid
and binding obligation of Maker in accordance with its terms have been done, performed and have happened in compliance with all
applicable laws.  

This Note shall be governed by, and interpreted and construed in accordance with, the laws of the
State of New York, excluding choice of law principles thereof. 

The Maker acknowledges that it has been represented by counsel in connection with this Note.  Accordingly,
any rule or law or any legal decision that would require the interpretation of any claimed ambiguities in this Note against the party that
drafted it has no application and is expressly waived by the Maker.  The provisions of this Note shall be interpreted in a reasonable
manner to give effect to the intent of the Maker and the Payee.

[Remainder of page intentionally left blank; signature page follows]

                                           2

IN WITNESS WHEREOF, the Maker has duly executed this Promissory Note as of the day and year
first above written.

ZOOM USA HOLDINGS, INC.

  

By: _____________________________________

                         Name:  

                          Title: 

   

   

   

   

   

   

   

                                           3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}]]