Document:

EXHIBIT
10.23

 

AGREEMENT AND RELEASE

 

This
Agreement and Release (the “Agreement”)
is entered into, as of November 14, 2007 (the “Effective Date”),
by and among Nexsan Corporation, a Delaware corporation (the “Company”), 6360319 Canada Inc. (“Nexsan Sub”) and 6360246 Canada Inc. (“6360246 Canada”), each of Nexsan Sub and
6360246 Canada a company incorporated federally under the Canada Business
Corporations Act and a direct or indirect wholly-owned subsidiary of the
Company, Nexsan Technologies Canada Inc. (formerly known as AESign Evertrust
Inc. (“Evertrust”)), Thomas
F. Gosnell (“Gosnell”), Robert G.
Delamore (“Delamore”), and
Esther Hotter, Rosamaria Koppes and Puneet Mehta (collectively, the “Other Evertrust Sellers;” and Gosnell,
Delamore and the Other Evertrust Sellers, collectively, the “Evertrust Sellers” and each, individually, an “Evertrust Seller”). Capitalized terms used and
not otherwise defined in this Agreement shall have the meaning set forth in the
Purchase Agreement (as defined below).

 

WHEREAS,
pursuant to the terms of that certain Purchase Agreement, dated March 14, 2005
(the “Purchase Agreement”),
by and among the Company, Nexsan Sub, Evertrust and the Evertrust Sellers,
Nexsan Sub purchased from the Evertrust Sellers all of the shares of capital
stock of Evertrust;

 

WHEREAS,
under the Purchase Agreement, if certain financial performance targets (the “Performance Targets”) were met by the Company
before March 14, 2006, the Evertrust Sellers would have been entitled to
receive their pro rata portion of the Year One Installment pursuant to the
terms of the Purchase Agreement;

 

WHEREAS,
the Evertrust Sellers have requested payment of the Year One Installment
notwithstanding that the Company has not achieved the Performance Targets; and

 

WHEREAS,
in order to avoid any dispute among the parties regarding the Performance
Targets, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company agrees to issue to
Delamore and the Other Evertrust Sellers 753,442 shares of Common Stock of the
Company (“Common Stock”) in
the aggregate and Nexsan Sub agrees to issue to Gosnell 1,282,888 Buyer
Exchangeable Shares (as such term is defined in the Purchase Agreement and
referred to herein as “Exchangeable Shares”),
in full satisfaction of any and all obligations of the Company or Nexsan Sub in
respect of the Year One Installment or, except as otherwise specifically
provided in Section 3 below, otherwise under the Purchase Agreement, such
issuance of shares to be on the terms and subject to the conditions set forth
herein.

 

NOW,
THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

1.             Payment of the
Year One Installment.

 

(a)           Upon the execution and
delivery of this Agreement by the Evertrust Sellers, the Company will issue the
number of shares of Common Stock set forth on Schedule A attached hereto
to Delamore and the Other Evertrust Sellers as identified therein and shall
cause Nexsan Sub to issue 1,282,888 Exchangeable Shares to Gosnell (such shares
of Common Stock and Exchangeable Shares issued hereunder collectively referred
to as the “Shares”). Delamore and the Other Evertrust Sellers hereby
acknowledge and confirm receipt of the shares of Common Stock identified on
Schedule A and Gosnell hereby acknowledges and confirms receipt of 1,282,888
Exchangeable Shares.

 

 

(b)           The Evertrust Sellers
each hereby acknowledge and agree that (i) the issuance of the Shares shall
constitute the payment and satisfaction in full of all obligations and
liabilities of the Company, Nexsan Sub and Evertrust in respect of the Year One
Installment under the Purchase Agreement and (ii) that there are no other
amounts due to the Evertrust Sellers under the Purchase Agreement, other than
(x) such amounts that may be due to Gosnell from and after the date hereof
under the Gosnell Employment Agreement (as defined below), (y) such amounts
that may be due to Delamore from and after the date hereof under the Delamore
Employment Agreement (as defined below) and (z) such amounts as may be due to
the Evertrust Sellers under the Purchase Agreement in the event of a “Follow-on
Sale” (as such term is defined in the Purchase Agreement).

 

2.             Repurchase Rights.

 

(a)           Delamore Repurchase
Right. Delamore acknowledges and agrees that his representations,
warranties, covenants and agreements under this Agreement, including but not
limited to this Section 2, Section 3 and Section 9, are essential inducements
to the Company’s willingness to issue the applicable portion of the Shares to
Delamore pursuant to this Agreement. Notwithstanding anything to the contrary
contained in this Agreement or the Purchase Agreement, the Company shall have
the right to repurchase all or any portion of the Common Shares issued to
Delamore hereunder, at a price equal to $.10 per share, at any time prior to a
Termination Event (as defined below) upon or after the occurrence of any of the
following: (i) Delamore terminates his employment with the Company for any
reason other than (A) his death or disability, or (B) “constructive dismissal”
as such concept is utilized in Canadian employment law; (ii) Evertrust
terminates his employment for “cause” (as defined in Section 4(c)(1) of the
Delamore Employment Agreement); or (iii) Delamore breaches any of his
representations, warranties, covenants or agreements in this Agreement, which
breach is incapable of cure or, to the extent it may be cured, remains uncured
for more than 10 days after notice thereof from Evertrust.

 

(b)           Gosnell Repurchase
Right. Gosnell acknowledges and agrees that his representations,
warranties, covenants and agreements under this Agreement, including but not
limited to this Section 2, Section 3 and Section 9, are essential inducements
to the Company’s willingness to cause Nexsan Sub to issue the Exchangeable
Shares to Gosnell pursuant to this Agreement. Notwithstanding anything to the
contrary contained in this Agreement or the Purchase Agreement, Nexsan Sub or
any of its affiliates shall have the right to repurchase all or any portion of
the Exchangeable Shares (and any shares of Common Stock issued upon exchange of
the Exchangeable Shares) issued to Gosnell hereunder, at a price equal to $.10
per share, at any time prior to a Termination Event upon or after the
occurrence of any of the following: (i) Gosnell terminates his employment with
the Company for any reason other than (A) his death or disability, or (B) “constructive
dismissal” as such concept is utilized in Canadian employment law; (ii)
Evertrust terminates his employment for “good cause” (as defined in Section
4(c)(1) of the Gosnell Employment Agreement); or (iii) Gosnell breaches any of
his representations, warranties, covenants or agreements in this Agreement,
which breach is incapable of cure or, to the extent it may be cured, remains
uncured for more than 10 days after notice thereof from Evertrust.

 

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(c)           Exercise of
Repurchase  Right. If the Company or Nexsan
Sub (or any of its affiliates) desires to exercise its repurchase rights
hereunder, the Company (which, for purposes of this Section 2(c) includes
Nexsan Sub or such affiliate) shall notify in writing Gosnell or Delamore, as
the case may be, of the Company’s intent to repurchase the applicable Shares,
which notice shall specify the number of Shares the Company intends to
repurchase and the date on which the Company will repurchase such Shares (the “Repurchase
Date”). On the Repurchase Date, the Company shall pay in cash the aggregate
purchase price (as set forth in clause (a) or (b) above) for the Shares the
Company is repurchasing and Gosnell or Delamore, as the case may be, shall
deliver to the Company the original stock certificates evidencing such Shares.
If less than all of the Shares are being repurchased, the Company or Nexsan
Sub, as the case may be, will issue a new certificate for the number of Shares
for which the Company did not exercise its repurchase rights hereunder.

 

(d)           Restrictive Legend.
In addition to any other legends that may be required by law or contract among
the parties, Delamore and Gosnell each agree that the certificates representing
the Shares issued to them pursuant to this Agreement shall bear a legend to the
effect that such Shares are subject to the terms and conditions of this
Agreement, including but not limited to the repurchase right set forth herein.

 

(e)           Termination of
Repurchase Right, Other Claims, and No Libel or Slander Provision. The
repurchase rights of the Company and Nexsan Sub granted under subsections (a)
and (b) above and the “No Libel or Slander; Non-Disparagement” provision of
subsection 9(a) herein, shall terminate upon the occurrence of the earliest of
any of the following events (each, a “Termination
Event”): (i) the date of January 31, 2009, (ii) any
voluntary or involuntary liquidation, dissolution or winding up of the affairs
of the Company, other than any dissolution, liquidation or winding up in
connection with any reincorporation of the Company in another jurisdiction,
(iii) immediately prior to the consummation of any transaction or series of
related transactions, including, without limitation, any merger or
consolidation of the Company with or into another corporation or person or
entity (other than with or into a wholly-owned subsidiary), or the sale of
capital stock of the Company by the Company or the holders thereof, in any case
under circumstances in which the holders of the outstanding capital stock of
the Company immediately prior to such transaction or series of related
transactions shall own less than a majority in voting power of the outstanding
capital stock of the Company or the surviving or resulting corporation or other
entity, as the case may be, immediately following such transaction, (iv)
immediately prior to the consummation of the sale or transfer of all or
substantially all of the assets of the Company, (v) upon the consummation of a
Qualified Public Offering (as such term is defined in the Amended and Restated
Stockholders’ Agreement, dated March 29, 2007, among the Company and the
stockholders named therein (the “Stockholders
Agreement”)), (vi) as to Delamore, upon any breach by
the Company or Evertrust of the Delamore Employment Agreement that is incapable
of cure or, to the extent it may be cured, remains uncured for more than 10
days after notice thereof from Delamore, (vii) as to Gosnell, upon any breach
by the Company or Evertrust of the Gosnell Employment Agreement that is
incapable of cure or, to the extent it may be cured, remains uncured for more
than 10 days after notice thereof from Gosnell, (viii) upon any breach by the
Company, Nexsan Sub or Evertrust of subsection (b) of Section 9 entitled “No
Libel or Slander; Non-Disparagement” or Section 10 entitled “Corporate
Governance.”

 

3

 

3.             Release. For
good and valuable consideration, receipt and sufficiency of which are hereby
acknowledged, the Evertrust Sellers each hereby fully and forever release and
discharge the Company, its affiliates and its subsidiaries and their past and
present officers, directors and employees, agents, affiliates, subsidiaries,
successors and assigns, and each of them (“Released Parties”) from, and
agree to not sue concerning, any liability, debt, claim, duty, obligation,
damage, or cause of action, whether at law, in equity or otherwise, whether
presently known or unknown, suspected or unsuspected, which the Evertrust
Sellers or any of their respective successors or assigns ever had, now has or
might hereafter have against one or more of the Released Parties based upon, or
arising out of, or concerning (i) except for the Follow-on Sale provisions of
the Purchase Agreement, any matter whatsoever arising out of or relating to the
Purchase Agreement, including but not limited to, the payment of the Year One
Installment under the Purchase Agreement; provided, however, nothing in this
Release shall constitute a release (A) by Gosnell of any rights of Gosnell
under the Employment Agreement, dated March 24, 2005, among Gosnell, Evertrust
and the Company (the “Gosnell Employment Agreement”) or under statute
law or common law employment provisions and theories, (B) by Delamore of any
rights of Delamore under (1) the Employment Agreement, dated March 24, 2005,
among Delamore, Evertrust and the Company (the “Delamore Employment
Agreement”) or under statute law or common law employment provisions and
theories, and (2) the Stock Option Ageement, dated March 24, 2005, between
Delamore and the Company, or (C) by any of the Evertrust Sellers of any rights
they have under this Agreement.

 

4.             Representations
and Warranties of Evertrust Sellers. Each Evertrust Seller hereby
represents and warrants to the Company as follows:

 

(a)           Acquire for
Investment. The Evertrust Seller is receiving the Shares for such person’s
own account, and not for the benefit others, for investment, and not with a
view to, or for sale or other disposition in connection with, any distribution
thereof, nor with any present intention of selling or otherwise disposing of
the same.

 

(b)           Lack of Registration.
The Evertrust Seller understands that the Shares (including the shares of
Common Stock issued upon exchange of the Exchangeable Shares) are not
registered under the Securities Act of 1933, as amended (the “Securities Act”)
or under the securities laws of any state or foreign jurisdiction and that the
issuance contemplated by this Agreement will be exempt from the registration
requirements of the Securities Act and state securities laws on the grounds
that no distribution or public offering of the Shares is to be effected in the
United States, and that the Company’s reliance on such exemption is predicated,
in part, on the Evertrust Seller’s representations and warranties set forth
herein.

 

(c)           Liquidity. The
Evertrust Seller understands that no public market now exists for any of the
securities issued by the Company, that a public market may never exist for the
Shares and that if the Company does not register with the Securities and
Exchange Commission pursuant to Section 12, or file reports pursuant to Section
15(d) of the Securities Exchange Act of 1934, as amended, or if a registration
statement covering the securities (or filing pursuant to the exemption from
registration under Regulation A of the Securities Act) under the Securities Act
is not in effect when the Evertrust Seller desires to sell the Shares, the
Evertrust Seller may be required to hold such securities for an indefinite
period of time.

 

4

 

5.             Not a U.S. Person.
Gosnell represents that he is not a U.S. Person. A U.S. Person means: (i) any
natural person resident in the United States; (ii) any partnership or
corporation organized or incorporated under the laws of the United States;
(iii) any estate of which any executor or administrator is a U.S. Person; (iv)
any trust of which any trustee is a U.S. Person; (v) any agency or branch of a
foreign entity located in the United States; (vi) any non-discretionary account
or similar account (other than an estate or trust) held by a dealer or other
fiduciary for the benefit or account of a U.S. Person; (vii) any discretionary
account or similar account (other than an estate or trust) held by a dealer or
other fiduciary organized, incorporated or (if an individual) resident in the
United States; and (viii) any partnership or corporation if: (A) organized or
incorporated under the laws of any non-U.S. jurisdiction; and (B) formed by a
U.S. Person principally for the purpose of investing in securities not
registered under the Securities Act, unless it is organized and owned by
Accredited Investors (as that term is defined in Rule 501 (a) under the Securities
Act) who are not natural persons, estates or trusts. Gosnell has executed this
Agreement and all other agreements contemplated hereunder outside of the United
States.

 

6.             Advice of Legal
Counsel and Tax Advisors. The Evertrust Sellers each hereby acknowledge,
represent and warrant that (i) he or she has had a reasonable period of time to
review and consider the terms of this Agreement and that he or she has had an
opportunity to seek and receive legal advice and advice of his or her tax and
other advisors concerning the terms and conditions of this Agreement; (ii) he
or she has solely relied upon the advice of his or her own tax and legal
counsel with respect to the tax and other legal aspects of this Agreement and
(ii) he or she is voluntarily and knowingly entering into this Agreement
without any threats, coercion or duress, whether economic or otherwise, and
that he or she intends to be bound by the terms of this Agreement.

 

7.             No Prior
Assignment of Claims. Evertrust Sellers each warrant and represent to the
Company that he or she has neither made or caused to be made any assignment,
purported assignment, transfer, or purported transfer of any of its rights,
claims, demands or causes of action covered by the Purchase Agreement,
including without limitation, the payment of the Year One Installment, and that
he or she is the sole and absolute legal and equitable owner of all such
rights, claims, demands, and causes of action. To the extent that any
assignment or transfer was made by such Evertrust Seller, such Evertrust Seller
shall indemnify, defend and hold harmless the Company and its affiliates from
and against any claims based upon or arising in connection with any such prior
assignment or transfer, or purported assignment or transfer, of any claims or
other matters released herein.

 

8.             New Securities.
The Evertrust Sellers hereby agree that the shares of Common Stock issued to
Delamore and the Other Evertrust Sellers and the shares of Common Stock issued
to Gosnell upon exchange of the Exchangeable Shares shall not constitute New
Securities for purposes of the preemptive rights under Section 3.6 of the
Amended and Restated Stockholders’ Agreement, dated March 29, 2007, as the same
may be amended from time to time.

 

5

 

9.             No Libel or
Slander; Non-Disparagement. (a) The Evertrust Sellers hereby agree that
they each will not now, or in the future, make any statement or remark
concerning the Company or any of its subsidiaries or any of their officers,
directors, employees, representatives or agents, whether made in writing,
orally, or in any other manner, which statement or remark in whole or in part
is slanderous or libelous. The Evertrust Sellers further agree that they will
not (i) in any way or to any extent disparage the reputation, goodwill, or
commercial interest of the Company or any of its affiliates or their respective
officers, directors, products, services or methods of operation or (ii) without
first obtaining written approval (which may take the form of approval by email)
from the Company (A) make any public statement in the nature of a press release
or media interview with respect to any aspect of the business operations,
management, future plans or financial condition of the Company or any of its affiliates,
or (B) make any statement, written or oral, to any current or prospective
customer, vendor, lender, investor or underwriter with respect to past or
projected future financial performance of the Company or any of its operating
units or affiliates, provided that the foregoing shall in no way limit or
restrict any of the Evertrust Sellers (i) from communicating with senior
management or any member of the Board of Directors of the Company, Nexsan Sub,
Evertrust or any of their respective affiliates or any committee thereof or,
with respect to Gosnell, from discharging his duties as a director and officer
of Nexsan Sub, Evertrust or any of their respective affiliates, or (ii) from
providing any information relating to the Company or its affiliates in response
to a valid order by a court or other governmental body or as otherwise required
by law.

 

(b)           The Company, Nexsan Sub
and Evertrust hereby agree that neither they nor any of their subsidiaries will
now, or in the future, make or permit to be made any statement or remark
concerning the Evertrust Sellers, whether made in writing, orally, or in any
other manner, which statement or remark in whole or in part is slanderous or
libelous. The Company further agrees that it will not (i) in any way or to any
extent disparage the reputation, goodwill, or commercial interest of the
Evertrust Sellers or (ii) without first obtaining written approval (which may
take the form of approval by email) from the applicable Evertrust Seller (A)
make any public statement in the nature of a press release or media interview
with respect to any of the Evertrust Sellers, or (B) make any statement,
written or oral, with respect to past, present, or projected future financial
condition of any of the Evertrust Sellers, provided that the foregoing shall in
no way limit or restrict any of the Company (i) from communicating with any of
the Evertrust Sellers, or (ii) from providing any information relating to any
of the Evertrust Sellers in response to a valid order by a court or other governmental
body or as otherwise required by law.

 

(c)           In the event that any
party hereto (the “Claiming Party”)
alleges that another party hereto has made a libelous, slanderous, or
disparaging communication or any other communication in violation of subsection
(a) or (b) of Section 9, then the Claiming Party shall so notify the other
party or parties in accordance with Section 20. If the other party or parties
dispute the claim, then either the Claiming Party or any other party shall
refer the matter to an arbitrator or arbitrators appointed under the
arbitration provisions of the Purchase Agreement, and such arbitrator(s) shall
alone be empowered to make a determination as to whether a particular
communication was libelous, slanderous, or disparaging or otherwise in
violation of subsection 9(a) or 9(b).

 

6

 

10.           Corporate Governance.

 

The
Company, Nexsan Sub, 6360246 Canada and Evertrust agree that:

 

(A)          On
or before September 30, 2007, an audit committee of Evertrust shall be
established, the composition of which shall be in accordance with applicable
law;

 

(B)           Following
the meeting of the Board of Directors of the Company to be held on September 5,
2007, or as soon thereafter as the independent accountants for the Company,
Nexsan Sub, 6360246 Canada and Evertrust shall have delivered their analysis
and report (currently in progress) concerning Evertrust’s financial statements,
a meeting of both the audit committee and the full board of directors of
Evertrust shall be convened to review, discuss, and approve matters customarily
appropriate for an audit committee and Board of Directors, which shall at a
minimum include a review of the financial statements of Evertrust for the
applicable period then ended and any prior periods as the board of directors or
audit committee deems appropriate; such meetings may be held at such time or
place inside or outside Canada, by telephone conference call or in person, as
the Chairman of the Company shall determine and may be held in conjunction with
or immediately before or immediately after meetings of the audit committee and
Board of Directors of the Company;

 

(C)           As
promptly as practicable after each of the aforementioned audit or board
meetings, written minutes of such committee or board meetings shall be compiled
by the secretary of the meeting and circulated for review and approval of the
applicable committee or board members, and upon approval the same, shall be
signed by such of the committee or board members as may be required by
applicable law and entered into the minute books of Evertrust;

 

(D)          For
so long as Gosnell remains as either a director or officer of Evertrust, he
shall be entitled to a copy of minutes of the aforementioned meetings of the
audit committee and the Board of Directors;

 

(E)           Corporate
action by Nexsan Sub and 6360246 Canada shall be taken in, the manner required
by applicable law and, to the extent such action requires the approval of the
directors of either such company, such action shall be taken either by written
consent of the directors or by resolutions duly adopted at meeting of the
board, as determined by the directors of such companies or as otherwise
provided in the bylaws of such companies. For so long as Gosnell remains as
either a director or officer of Nexsan Sub or 6360246 Canada, he shall be
entitled to a copy of the minutes and/or resolutions of such companies.

 

11.           No Admission of
Wrongdoing. The parties hereto acknowledge and agree that this Agreement in
no way constitutes an admission by any party hereto of any liability to the
other party or any wrongdoing on the part of any party hereto with respect to
the matters addressed herein.

 

7

 

12.           Acknowledgement.
The Shares (including the shares of Common Stock of the Company issued upon
exchange of the Exchangeable Shares) issued to the Evertrust Sellers shall be
subject to the terms and conditions, as applicable thereunder, of (i) the
Stockholders Agreement (ii) the Third Amended and Restated Registration Rights
Agreement, dated March 29, 2007, among the Company and the stockholders named
therein (“Registration Rights Agreement”),
and (iii) the Exchange Agreement dated March 24, 2005, as each may hereafter be
amended in accordance with the terms thereof, and any other agreements or
documents governing the terms of the Exchangeable Shares, including without
limitation the Exchangeable Shares Provisions (as defined in the Exchange
Agreement), each as the same may be amended from time to time.

 

13.           Certain Corporate
Action by the Company. Gosnell has requested certain amendments to the
language of the Fifth Amended and Restated Certificate of Incorporation of the
Company (the “Restated Charter”),
the Stockholders Agreement and the Registration Rights Agreement. The Company
will submit to the Board of Directors, for approval at the meeting scheduled to
be held on September 5, 2007, a form of amendment to each of the Restated
Charter, the Stockholders Agreement and the Registration Rights Agreement covering
the matters set forth on Schedule B
hereto and, upon approval thereof by the Board of Directors of the Company,
will submit such amendments and this Agreement to the stockholders of the
Company for their review and approval by written consent, as required by law
and the terms of any relevant agreement (the “Stockholder
Consent”). Gosnell agrees to execute and deliver the
Stockholder Consent in his capacity as a Prior Stockholder (as such term is
defined in the Stockholders Agreement). Subject to, and as promptly as
practicable after receipt of, all necessary stockholder approvals, the Company
will file the amendment to the Restated Charter with the Secretary of State of
the State of Delaware.

 

14.           Entire Agreement; No
Modification. This Agreement constitutes the entire agreement between and
among the parties hereto with respect to the subject matter hereof. This
Agreement shall not be modified except by written agreement duly executed by or
on behalf of each of the parties hereto.

 

15.           Authority. The parties
hereto each hereby represent and warrant to the other party that (i) it has the
power and authority to enter into this Agreement with out the necessity of any
act or consent of any other party whosoever; and (ii) the Agreement will, when
executed and delivered, constitute the valid and legally binding obligations of
such party, enforceable in accordance with its respective terms. The Company,
Nexsan Sub, and Evertrust represent and warrant that the execution, delivery
and performance of this Agreement and the issuance of the Shares hereunder have
been authorized by all necessary corporate action and constitute the legal,
valid and binding obligations of the Company, Nexsan Sub, and Evertrust, as the
case may be, enforceable against each of them in accordance with its terms.

 

16.           Binding on
Successors and Assigns; Assignment. This Agreement shall be binding upon
and inure to the benefits of the parties hereto and their respective legal
representatives, executors, administrators, successors and permitted assigns.
This Agreement shall not be assigned by any of the Evertrust Sellers without
the prior written consent of the Company.

 

8

 

17.           Further Assurances.
The Evertrust Sellers each covenant that at any time, and from time to time, he
or she will execute such additional instruments and take such actions as may be
reasonably requested by the Company to confirm or perfect or otherwise carry
out the intent and purposes of this Agreement.

 

18.           Counterparts.
This Agreement may be executed counterparts, each of which shall be deemed an
original, but which together shall constitute one and the same instrument.

 

19.           Applicable Law.
The laws of the State of Delaware shall govern the interpretation, validity and
performance of the terms of this Agreement, regardless of the law that might be
applied under principles of conflicts of law; provided, however, that any
references in Section 10 to “applicable law” shall be deemed to refer to the
laws of the jurisdiction of organization of the Company, Nexsan Canada,
Evertrust, as the case may be.

 

20.           Notice. All
notices and other communications hereunder shall be in writing and shall be
deemed given upon receipt if delivered personally, telecopied (provided receipt
is confirmed by other than automatic means), mailed by registered or certified
mail (return receipt requested), or sent by a nationally-recognized overnight
courier (such as Federal Express or United Parcel Service) to the parties at
the addresses (or at such other address for a party hereto as shall be
specified by like notice) set forth in Schedule C attached hereto.

 

[The remainder of this page is
intentionally left blank]

 

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IN
WITNESS WHEREOF, and intending to be legally bound, the parties hereto have
signed or executed this Agreement and Release.

 

	
   

  	
  NEXSAN CORPORATION

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Philip Black

  	 

	
   

  	
  Name:

  	
  Philip Black

  	 

	
   

  	
  Title: President

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  6360319 CANADA INC.

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Philip Black

  	 

	
   

  	
  Name:

  	
  Philip Black

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6360246 CANADA INC.

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Philip Black

  	 

	
   

  	
  Name:

  	
  Philip Black

  	 

	
   

  	
  Title:

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  NEXSAN TECHNOLOGIES CANADA INC.

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Philip Black

  	 

	
   

  	
  Name:

  	
  Philip Black

  	 

	
   

  	
  Title:

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  /s/ Thomas
  F. Gosnell

  	 

	
   

  	
  Thomas F. Gosnell

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  /s/ Robert
  G. Delamore

  	 

	
   

  	
  Robert G. Delamore

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  /s/ Esther
  Hotter

  	 

	
   

  	
  Esther Hotter

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  /s/
  Rosamaria Koppes

  	 

	
   

  	
  Rosamaria
  Koppes

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  /s/ Puneet Mehta

  	 

	
   

  	
  Puneet Mehta

  	 

 

10Exhibit 10.24

 

AMENDED AND
RESTATED CONSULTING AGREEMENT

 

AGREEMENT, made this
        th day of July 2001, amending
and restating the Consulting Agreement dated the 4th day of January, 2001 (“Original
Agreement”) by and between Nexsan Corporation, having its principal place of
business at 21700 Oxnard Street, Suite 1850, Woodland Hills, California 91367
(the “Company”) and Beechtree Capital, LLC, having its principal place of
business at One Rockefeller Plaza, New York, New York 10020 (hereinafter the “Consultant).

 

WHEREAS, the Company and the
Consultant wish to amend and restate the Original Agreement to extend the term
thereof, to increase the compensation payable to the Consultant and to make
such other changes as reflected herein;

 

NOW, THEREFORE, in consideration
of the premises and mutual covenants and agreements set forth herein and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties, intending to be legally bound, agree as
follows:

 

A.            CONSULTATION.

 

1.             Consultant. The
Company hereby retains the Consultant to render to the Company the consulting
services as defined in Section B hereof, and the Consultant hereby accepts such
assignment upon the terms and conditions hereinafter set forth.

 

2.             Independent
Relationship. The Consultant shall provide the consulting services required
to be rendered by it hereunder solely as an independent contractor and nothing
contained herein shall be construed as giving rise to an employment or agency
relationship, joint venture, partnership or other form of business
relationship.

 

3.             No Authority to
Obligate the Company. Without the consent of the board of directors or
appropriate officer of the Company, the Consultant shall have no authority to
take, nor shall it take, any action committing or obligating the Company in any
manner, and it shall not represent itself to others as having such authority.

 

4.             Term. The term
of the Consultant’s consultation to the Company commenced January 4, 2001 and
shall extend for a term of five (5) years from the date hereof unless the
parties agree in writing to extend the consultation for an additional one year
term(s). Notwithstanding the foregoing, this Agreement may be terminated by the
Company if the Consultant has willfully failed to use reasonable efforts to
perform its obligations hereunder and such willful failure continues for three
months after written notice specifying in reasonable detail the basis thereof. Upon
any termination of this Agreement, the Company shall:

 

(i)            pay to the Consultant
any previously accrued but unpaid compensation, as contemplated by Section C
hereof; and

 

(ii)           pay any previously
incurred but unpaid expenses, as contemplated by Section D hereof.

 

 

B.            OBLIGATIONS OF THE
CONSULTANT.

 

1.             Consulting
Services. During the term of this Agreement, Consultant will render advice
and assistance to the Company on business related matters and in connection
therewith the Consultant shall:

 

a.             evaluate the Company’s
managerial, marketing and sales performance, including the furnishing of
written reports upon the request of the Company;

 

b.             consult with the
Company concerning ongoing strategic corporate planning and long term
investment policies, including any revision of the Company’s business plan;

 

c.             assist in the
negotiation of contracts with suppliers and major customers when so requested
by the Company;

 

d.             consult with and
advise the Company with regard to potential mergers and acquisitions, whether
the Company is the acquiring company or the target of acquisition;

 

e.             upon the request of
the Company, Consultant will review press releases to be made available to,
among others, the press, customers, suppliers, broker/dealers, financial
institutions, and the Company’s shareholders; and

 

f.              render such other
services to the Company as its Board of Directors may reasonably request.

 

2.             Nonexclusive
Engagement; Extent of Services.

 

a.             The parties agree
that the consultation contemplated by this Agreement is a nonexclusive
engagement and that the Consultant now renders and may continue to render
consulting services to other companies which may or may not conduct activities
similar to those of the Company.

 

b.             The Consultant will
devote such time and effort to the affairs of the Company as the Consultant
deems reasonable and adequate to render the consulting services contemplated by
this Agreement. The Consultant’s work will not include any services that
constitute the rendering of any legal opinions or performance of work that is
in the ordinary purview of certified public accountants.

 

3.             Confidentiality.
The Consultant will not, either during its engagement by the Company pursuant
to this Agreement or at any other time thereafter, disclose, use or make known
for its or another’s benefit, any confidential information, knowledge, or data
of the Company or any of its affiliates in any way acquired or used by the
Consultant during its engagement by the Company. Confidential information,
knowledge or data of the Company and its affiliates shall not include any
information which is or becomes generally available to the public other than as
a result of a disclosure by the Consultant or its representatives.

 

2

 

C.            COMPENSATION.

 

1.             Cash Retainer.
The Company will pay a monthly cash retainer of $16,667 to the Consultant on
the 1st day of each month for the entire term of this Agreement beginning on
the date hereof; if the date hereof is not the first day a month, then on the
date hereof the Company shall pay to Consultant the excess of $16,667 over the
amount paid to Consultant on the first day of the month pursuant to the
Original Agreement.

 

2.             Stock Purchase
Rights. Contemporaneously herewith the Company is issuing the Consultant
stock purchase rights pursuant to a Restricted Stock Purchase Agreement for
500,000 shares of the Company’s common stock, in addition to the stock purchase
rights issued to the Consultant contemporaneously with the Original Agreement.

 

D.            REIMBURSEMENT OF
EXPENSES.

 

1.             Out-of-Pocket
Expenses. The Company shall reimburse the Consultant for actual
out-of-pocket expenses including, but not limited to, facsimile, postage,
printing, photocopying, and entertainment, incurred by the Consultant without
the prior consent of the Company and in connection with the performance by the
Consultant of its duties hereunder. Nothing in this Amended and Restated
Agreement shall adversely affect the right of Consultant to reimbursement for
expenses incurred prior to the date hereof under the Original Agreement.

 

2.             Travel and Related
Expenses. The Company shall also reimburse the Consultant for the costs of
all travel and related expenses incurred by the Consultant in connection with
the performance of its services hereunder, including, without limitation, costs
and expenses incurred with respect to travel to England; provided that all such
costs and expenses have been authorized, in advance, by the Company.

 

3.             General.
Expenses shall be due and payable when billed and after they have been
incurred.

 

E.             MISCELLANEOUS.

 

1.             Entire Agreement.
This Agreement contains the entire agreement between the parties with respect
to the engagement of Consultant by the Company as a consultant and supersedes
and replaces any and all prior understandings, agreements or correspondence
between the parties relating to the subject matter hereof.

 

2.             Modification and
Waiver. No supplement, modification or amendment of this Agreement shall be
binding unless executed in writing by both the parties hereto. No waiver of any
other provisions hereof (whether or not similar) shall be binding unless
executed in writing by both the parties hereto nor shall such waiver constitute
a continuing waiver.

 

3.             Governing Law.
This Agreement has been made in and shall be interpreted according to the laws
of the State of New York without any reference to the conflicts of laws rules
thereof. The parties hereto submit to the jurisdiction of the courts of the
State of New York for the purpose of any actions or proceedings which may be
required to enforce any of the provisions of this agreement.

 

3

 

4.             Successors and
Assigns. This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns and upon the Consultant and the
Consultant’s successors and assigns.

 

5.             Severability. If
any provision or provisions of this agreement shall be held to be invalid,
illegal or unenforceable for any reason whatsoever:

 

a.             the validity,
legality and enforceability of the remaining provisions of this Agreement
(including, without limitation, each portion of any Section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable)
shall not in any way be affected or impaired thereby; and

 

b.             to the fullest extent
possible, the provisions of this Agreement (including, without limitation, each
portion of any Section of this agreement containing any such provision held to
be invalid, illegal or unenforceable) shall be construed so as to give effect
to the intent manifested by the provision held invalid, illegal or
unenforceable.

 

6.             Further Assurances.
From and after the execution and delivery of this Agreement, upon request of
either party, the other shall do, execute, acknowledge and deliver all such
further acts, assurances and other instruments and papers as may be required to
carry out the transactions contemplated by this agreement.

 

7.             Headings. The
headings of the paragraphs of this agreement are inserted for convenience only
and shall not be deemed to constitute part of this agreement or to affect the
construction hereof.

 

8.             Notices. Any
notice to be given hereunder shall be given in writing. All notices under this
Agreement shall be either hand delivered receipt acknowledged, or sent by
registered or certified mail, return receipt requested as follows:

 

	
  a.

  	
  If to the
  Company,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  to it at:

  	
  Nexsan Corporation

  
	
   

  	
   

  	
  21700 Oxnard Street

  
	
   

  	
   

  	
  Woodland Hills, California 91367

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  	
  Nexsan Technologies, Ltd.

  
	
   

  	
   

  	
  Imperial House

  
	
   

  	
   

  	
  East Service Road

  
	
   

  	
   

  	
  Rayneway

  
	
   

  	
   

  	
  Derby DE21 7BF

  
	
   

  	
   

  	
  England

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
  RubinBaum LLP

  
	
   

  	
   

  	
  30 Rockefeller Plaza

  
	
   

  	
   

  	
  New York, New York 10112

  
	
   

  	
   

  	
  Attn.: Michael Emont, Esq.

  
	
   

  	
   

  	
  Facsimile No.: (212) 698-7825

  
	
   

  	
   

  	
   

  
	
  b.

  	
  If to the
  Consultant,

  
	
   

  	
   

  	
   

  
	
   

  	
    to it at:

  	
  Beechtree Capital, LLC

  
	
   

  	
   

  	
  One Rockefeller Plaza

  
	
   

  	
   

  	
  New York, New York 10020

  
	
   

  	
   

  	
  Attn.: Mr. George M. Weiss

  

 

4

 

All such notices shall be deemed given when delivered,
if personally delivered as aforesaid, or within five business days after
mailing, as aforesaid.

 

9.             Execution. This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature page were an original
thereof.

 

[REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOLLOWS]

 

5

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the day and year first written above.

 

	
   

  	
  NEXSAN CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin Boddy

  
	
   

  	
   

  	
    Martin Boddy, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEECHTREE CAPITAL, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George M. Weiss

  
	
   

  	
   

  	
    George M. Weiss

  

 

6

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