Document:

Exhibit 10.2

EXECUTION COPY

 

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT is made as of July 31, 2012 by and between
Iron Mountain Incorporated, a Delaware corporation (the “Investor”), and Crossroads Systems,
Inc., a Delaware corporation (the “Company”).

 

RECITALS

 

A.           The
Company desires to issue and sell, the Investor desires to purchase from the Company, shares of the Company’s common stock,
par value $0.001 per share (the “Common Stock”).

 

B.           As
an inducement to the Investor to purchase the shares of Common Stock from the Company at the closing pursuant to this Agreement,
(i) the parties have agreed to execute and deliver a Registration Rights Agreement, in the form attached hereto as Exhibit A
(the “Registration Rights Agreement”), pursuant to which the Company has agreed to provide the Investor certain
registration rights under the Securities Act and applicable state securities laws; and (ii) the Company and Iron Mountain Information
Management, Inc., an Affiliate of the Investor (“IRM”), have become parties to certain agreements related to
the sale and licensing of certain products, and the provision of certain services, by the Company to IRM.

 

In consideration of
the terms and conditions contained in this Agreement and the parties’ mutual agreement upon the Other Agreements, and other
good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties, intending to be legally bound,
agree as follows:

 

AGREEMENT

 

ARTICLE I. GENERAL DEFINITIONS

 

Section 1.1           Defined
Terms. Capitalized terms, when used herein, shall have the following meanings if not otherwise defined herein:

 

“Affiliate”
means, as to any Person, any other Person (a) that directly or indirectly, through one or more intermediaries, controls or is controlled
by, or is under common control with, such Person; (b) that directly or indirectly beneficially owns or holds ten percent or more
of any class of voting Capital Stock of such Person; or (c) ten percent or more of the voting Capital Stock of which is directly
or indirectly beneficially owned or held by the Person in question. For purposes of this definition, the term “control”
means the possession, directly or indirectly, of the power to direct or cause direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise; provided, however, in no event shall
the Investor be deemed an Affiliate of the Company for the purposes of this Agreement.

 

    	 

    	 

    

 

“Agreement”
means this Securities Purchase Agreement, including all exhibits and schedules, as the same may be from time to time amended, modified
or supplemented.

 

“Capital Stock”
means corporate stock and any and all shares, partnership interests, limited partnership interests, limited liability company interests,
membership interests, equity interests, participations, rights or other equivalents (however designated) of corporate stock or
any of the foregoing issued by any entity (whether a corporation, a partnership or another entity).

 

“Closing”
means the closing of the purchase and sale to the Investor of the Shares and the transactions contemplated by this Agreement. The
Closing will take place at the offices of the Company at 10:00 a.m. on the Closing Date, or as otherwise agreed by the parties.

 

“Closing Date”
means the later of the date of this Agreement, or such other date as the parties agree following the satisfaction of the conditions
to closing set forth in this Agreement.

 

“Common Stock”
has the meaning set forth in Recital A.

 

“Company”
means Crossroads Systems, Inc., a Delaware corporation.

 

“Company Balance Sheet”
has the meaning set forth in Section 3.3.

 

“Company Financial
Statements” means the financial statements of the Company, including the notes thereto, included in the Company SEC Documents.

 

“Company SEC
Documents” has the meaning set forth in Section 3.2.

 

“DRS”
means the Direct Registration System maintained by the transfer agent for the Common Stock.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations
of the SEC thereunder, all as the same shall be in effect at the time.

 

“GAAP”
means United States generally accepted accounting principles as in effect at the time to which the related reference to such principles
pertains.

 

“Governmental
Authority” means any nation or government, any state, provincial or political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

“Governmental
Requirement” means any law, statute, code, ordinance, order, rule, regulation, judgment, decree, injunction, franchise,
Permit, certificate, license, authorization or other directive or requirement of any Governmental Authority.

 

    	 

    	 

    

 

“Intellectual
Property” means any U.S. or foreign patents, patent applications, trademarks, trade names, service marks, mask works,
brand names, logos and other trade designations (including unregistered names and marks), trademark and service mark registrations
and applications, copyrights and copyright registrations and applications, inventions, invention disclosures, protected formulae,
formulations, processes, methods, trade secrets, computer software, computer programs and source codes, manufacturing research
and similar technical information, engineering know-how, customer and supplier information, assembly and test data drawings or
royalty rights and all comparable items.

 

“Investor”
means Iron Mountain Incorporated, a Delaware corporation, and its successors and permitted assigns.

 

“Lien”
means any lien, mortgage, interest, security interest, tax lien, financing statement, pledge, charge, hypothecation or other encumbrance
of any kind or nature whatsoever (including, without limitation, any conditional sale or title retention agreement), whether arising
by contract, operation of law or otherwise.

 

“Lockup Expiration
Date” means the one-year anniversary of the Closing Date.

 

“Material
Adverse Effect” means any material adverse effect, or the occurrence of any event or the existence of any condition that
could reasonably be expected to have a material adverse effect on (a) the prospects, business, operations, assets, liabilities
or financial condition or performance of the Company and its Subsidiaries, taken as a whole; or (b) the validity or enforceability
of this Agreement or any of the Other Agreements or the transactions contemplated by this Agreement or any of the Other Agreements.

 

“Material
Contracts” means, as to any Person, any agreement filed or required to be filed with the SEC pursuant to applicable securities
law.

 

“Other Agreements”
means the Registration Rights Agreement and any other agreements, instruments and documents, whether heretofore, now or hereafter
executed by or on behalf of the Company or its shareholders and delivered to the Investor with respect to this Agreement, the Registration
Rights Agreement and any and all amendments, modifications, supplements, renewals, extensions or restatements thereof.

 

“Permit”
means any permit, certificate, approval, order, license or other authorization.

 

“Person”
means and includes natural persons, corporations, limited partnerships, limited liability companies, general partnerships, joint
stock companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other
organizations, whether or not legal entities, and Governmental Authorities.

 

“Property”
means property or assets of all kinds, real, personal or mixed, tangible or intangible (including, without limitation, all rights
relating thereto), whether owned or acquired on or after the Closing Date, as applicable.

 

    	 

    	 

    

 

“Purchase
Price” means the per share purchase price for the Common Stock of $5.15.

 

“Registration
Rights Agreement” has the meaning set forth in Recital B.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations of the
SEC thereunder, all as the same shall be in effect at the time.

 

“Shares”
has the meaning set forth in Section 2.1.

 

“Subsidiary”
means, with respect to any Person, any corporation or other entity of which at least a majority of the outstanding shares of stock
or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors (or
Persons performing similar functions) of such corporation or entity (irrespective of whether or not at the time, in the case of
a corporation, stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening
of any contingency) is, at the time, directly or indirectly owned or controlled by such Person or one or more of its Subsidiaries
or by such Person and one or more of its Subsidiaries.

 

“Transfer” has the meaning
set forth in Section 2.2(b).

 

ARTICLE II. TRANSACTION AND COVENANTS

 

Subject to the terms
and conditions hereof, the Investor and the Company agree to the following:

 

Section 2.1           Sale
and Purchase of Shares. At the Closing, the Company agrees, upon payment by the Investor to the Company of the aggregate
Purchase Price in immediately available funds by wire transfer, or by other form of payment acceptable to the Company, equal to
$3,000,000, to issue and sell issue to the Investor, and the Investor agrees to purchase from the Company, 582,524 shares of Common
Stock (the “Shares”). At the Closing, the Company shall deliver to the Investor evidence of the notation in
the DRS of the Shares in the name of the Investor in form satisfactory to the Investor.

 

    	 

    	 

    

 

Section 2.2          Certain
Transfer Restrictions.

 

(a)          Until
the Lockup Expiration Date, neither the Investor nor any other holder of the Shares shall Transfer (as defined in Section 2.2(b)
below) any Shares or any portion thereof or any interest therein without the prior written consent of the Company, which may be
granted at the Company’s sole discretion. Any Transfer of Shares not made in compliance with the provisions of this Section
2.2 shall not be valid or have any force or effect. Shares which are Transferred in compliance with this Section 2.2 shall
thereafter continue to be subject to all restrictions on Transfer and all other agreements, provisions, terms and conditions which
are contained in this Agreement and the Other Agreements. As a condition to any such Transfer, any Person to whom Shares are so
Transferred shall execute and deliver whatever documents are deemed reasonably necessary by the Company to evidence such party's
interest in, acceptance of and agreement with, the terms and provisions of this Agreement and the Other Agreements. Notwithstanding
the foregoing, the Investor and any Holder shall be permitted to Transfer the Shares, or any portion thereof, to Iron Mountain
Incorporated or any wholly owned subsidiary, direct or indirect, of Iron Mountain Incorporated, so long as Iron Mountain Incorporated
retains ownership of the subsidiary, upon prior written notice to the Company and such Transferee’s written agreement to
be bound by this Agreement.

 

(b)          “Transfer”
shall mean any transfer, sale, assignment, pledge, encumbrance or other disposition of securities, irrespective of whether any
of the foregoing are effected voluntarily or involuntarily, by operation of law or otherwise, or whether inter vivos or upon death.

 

(c)          Each
certificate or other instrument evidencing the Shares and each certificate or other instrument issued in exchange for or upon the
Transfer of any such Shares, so long as such Shares are restricted by this Agreement after such Transfer, shall bear a legend in
substantially the following form:

 

“THE
RIGHT TO SELL, TRANSFER OR OTHERWISE DISPOSE OF OR PLEDGE THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO CERTAIN
RESTRICTIONS ON THE TRANSFER AND RESALE OF THESE SECURITIES SET FORTH IN A SECURITIES PURCHASE AGREEMENT. A COPY OF SUCH AGREEMENT
IS ON FILE AT THE CORPORATION'S PRINCIPAL PLACE OF BUSINESS AND ITS REGISTERED OFFICE”;

 

and appropriate transfer restrictions will
be affixed to any notation in the DRS for any such Shares.

 

ARTICLE III. REPRESENTATIONS AND WARRANTIES
OF THE COMPANY

 

The Company represents
and warrants to the Investor that the following statements are true, correct and complete as of the date hereof and as of the Closing
Date, unless another time is specified:

 

Section 3.1          Corporate
Existence and Authority. Each of the Company and its Subsidiaries (a) is an entity, duly organized, validly existing, and
in good standing under the laws of the jurisdiction of its incorporation or organization; (b) has all requisite corporate or other
power and authority to own its Properties and carry on its business as now being and as proposed to be conducted; and (c) is qualified
to do business in all jurisdictions in which the nature of its business or the ownership of its assets makes such qualification
necessary. The Company has the corporate power and authority to execute, deliver and perform its obligations under this Agreement
and the Other Agreements to which it is or may become a party.

 

    	 

    	 

    

 

Section 3.2           SEC
Documents; Financial Statements. Except with respect to the Company’s Current Report on Form 8-K filed with the SEC
on January 26, 2012, the Company has filed or furnished, as applicable, on a timely basis, all forms, statements, certifications,
reports and documents required to be filed or furnished by it with the SEC pursuant to the Exchange Act or the Securities Act since
August 30, 2011 (the forms, statements, certifications, reports and documents filed or furnished since such date, including any
amendments thereto, the “Company SEC Documents”). Each of the Company SEC Documents, at the time of its filing
or being furnished complied in all material respects with the applicable requirements of the Securities Act and the Exchange Act
and any rules and regulations promulgated thereunder applicable to the Company SEC Documents. As of their respective dates (or,
if amended prior to the date hereof, as of the date of such amendment), the Company SEC Documents did not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made therein,
in light of the circumstances in which they were made, not misleading. The Company has made available to the Investor copies of
all material correspondence between the SEC and the Company since January 1, 2010. As of the date of this Agreement, there are
no material outstanding or unresolved comments received from the SEC staff with respect to the Company SEC Documents.

 

Each of the consolidated
balance sheets included in or incorporated by reference into the Company SEC Documents (including the related notes and schedules)
fairly presents in all material respects, or, in the case of Company SEC Documents filed after the date hereof, will fairly present
in all material respects, the consolidated financial position of the Company and its consolidated Subsidiaries as of its date and
each of the statements of consolidated income, cash flows and stockholders’ equity included in or incorporated by reference
into the Company SEC Documents (including any related notes and schedules) fairly presents in all material respects, or in the
case of Company SEC Documents filed after the date hereof, will fairly present in all material respects the financial position,
results of operations and cash flows, as the case may be, of the Company and its consolidated Subsidiaries for the periods set
forth therein (subject, in the case of unaudited statements, to notes and year-end adjustments), in each case in accordance with
GAAP applied on a consistent basis throughout the periods indicated, except as may be noted therein and in compliance with, in
all material respects, applicable accounting requirements and the rules and regulations of the SEC.

 

Section 3.3           Absence
of Undisclosed Liabilities. Neither the Company nor any of its Subsidiaries has any liabilities or obligations of any nature
(whether accrued, absolute, contingent or otherwise) required by GAAP to be set forth on a consolidated balance sheet of the Company
and its Subsidiaries or in the notes thereto, other than those liabilities and obligations (a) set forth or adequately provided
for in the Condensed Consolidated Balance Sheets or in the related Notes to the Condensed Consolidated Financial Statements included
in Company’s Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2012 (the “Company Balance Sheet”),
(b) those incurred in the ordinary course of business consistent with past practice and not required to be set forth in the Company
Balance Sheet under GAAP, and (c) those incurred in the ordinary course of business consistent with past practice since the date
of the Company Balance Sheet and not reasonably likely to have a Material Adverse Effect.

 

    	 

    	 

    

 

Section 3.4           Corporate
Action; No Breach. The Company has all requisite corporate power and authority to enter into and perform this Agreement
and the Other Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby and to issue
and sell the Shares, in accordance with the terms hereof. The execution, delivery, and performance by the Company of this Agreement
and the Other Agreements to which it is a party or may become a party and the consummation of the transactions contemplated hereby
and thereby (including the issuance and sale of the Shares), have been duly authorized by the Board of Directors of the Company
and no further consent or authorization of Board of Directors of the Company or its stockholders is required. The execution, delivery
and performance by the Company of this Agreement and the Other Agreements to which the Company is a party and the consummation
by the Company of the transactions contemplated hereby and thereby do not and will not (a) violate or conflict with, or constitute
or result in a breach of (whether through notice or lapse of time) or require any consent under (i) the Certificate of Incorporation
of the Company, the By-laws of the Company, or any other organizational documents of the Company or any amendments to any of the
foregoing; (ii) any Governmental Requirements or any order, writ, injunction, or decree of any Governmental Authority or arbitrator;
or (iii) any Material Contract to which the Company or its Subsidiaries is a party or by which the Company or its Subsidiaries
or any of their Property is bound or subject; or (b) constitute a default (whether through notice or lapse of time) under any such
Material Contract, or result in the creation or imposition of any Lien upon any of the revenues or Property of the Company or its
Subsidiaries; except, in the case of clause (a)(iii), for such violations, conflicts, breaches or failures to obtain consents that
have not had and could not reasonably be expected to have a Material Adverse Effect, and, in the case of clause (b), for such defaults
or Liens that have not had and could not reasonably be expected to have a Material Adverse Effect. As of the Closing Date, the
Shares shall have been duly and validly authorized and when issued and sold in compliance with the terms of this Agreement, will
be validly issued, fully-paid and nonassessable and, except as otherwise provided by this Agreement, free of all Liens directly
in favor of the Company and shall not be subject to any preemptive rights or similar rights, however designated, whether by statute,
contract directly with the Company or otherwise.

 

Section 3.5           Operation
of Business. The Company and its Subsidiaries possess, and as of the Closing Date will possess, all material Permits, franchises,
licenses and authorizations necessary or appropriate to conduct their respective businesses substantially as now conducted, and
no suspension or cancellation of any such material licenses, Permits, franchises, certificates, orders, approvals or authority
is pending or, to the Company’s knowledge, threatened; and the transactions contemplated by this Agreement and/or the Other
Agreements will not cause any cancellation or suspension or have any effect upon any of such licenses, Permits, franchises, certificates,
orders, approvals or authority.

 

    	 

    	 

    

 

Section 3.6           Intellectual
Property. Schedule 3.6 attached hereto sets forth a complete and accurate listing of all the Intellectual Property
of the Company and its Subsidiaries. The Company owns valid title, free and clear of any Liens, or possesses the requisite valid
and current licenses or rights, free and clear of any Liens, to use all such Intellectual Property in connection with the conduct
of its business as now operated (and, except as set forth in Schedule 3.6 hereto, to the best of the Company’s knowledge,
as presently contemplated to be operated in the future). There is no claim or action by any person pertaining to, or proceeding
pending, or to the Company’s knowledge threatened, which challenges the right of the Company or of a Subsidiary with respect
to any Intellectual Property necessary to enable it to conduct its business as now operated (and, except as set forth in Schedule
3.6 hereto, to the best of the Company’s knowledge, as presently contemplated to be operated in the future). To the best
of the Company’s knowledge, the Company or its Subsidiaries’ current and intended products, services and processes
do not infringe on any Intellectual Property or other rights held by any Person, and the Company is unaware of any facts or circumstances
which might give rise to any of the foregoing. Except as set forth in Schedule 3.6 hereto, the Company has not received
any notice of infringement of, or conflict with, the asserted rights of others with respect to its or its Subsidiaries’ Intellectual
Property. The Company and each of its Subsidiaries have taken reasonable security measures to protect the confidentiality of the
material information the Company deems confidential.

 

Section 3.7           Litigation.
Except as otherwise disclosed in the Company SEC Documents, there is no action, suit, investigation or proceeding before or by
any court, Governmental Authority, or arbitrator pending, or to the knowledge of the Company, threatened against or affecting
the Company or any of its Subsidiaries, that could reasonably be expected to, if adversely determined, have a Material Adverse
Effect or could adversely affect the ability of the Company or any of its Subsidiaries to pay and perform its obligations hereunder
or under the Other Agreements.

 

Section 3.8           Enforceability.
This Agreement and the Other Agreements to which the Company is or will become a party have been duly and validly executed and
delivered by the Company, and this Agreement and the Other Agreements constitute the legal, valid, and binding obligations of the
Company, enforceable against the Company in accordance with their respective terms, except as may be limited by (a) applicable
bankruptcy, insolvency, reorganization or other similar laws of general application relating to or affecting the enforcement of
creditor rights; (b) laws and judicial decisions regarding indemnification for violations of U.S. federal securities laws; (c)
the availability of specific performance or other equitable remedies; and (d) with respect to any indemnification agreements set
forth herein or therein, principles of public policy.

 

Section 3.9           Approvals.
No authorization, approval, or consent of, and no filing or registration with, or notice to, any court, Governmental Authority
or third party is or will be necessary for the execution, delivery or performance by the Company of this Agreement or the Other
Agreements to which the Company is a party or for the validity or enforceability thereof.

 

Section 3.10         Taxes.
The Company and each of its Subsidiaries have filed all material tax returns (federal, state, local and foreign) required to be
filed (subject to allowable extensions), including all income, franchise, employment, property, and sales and use tax returns,
and have paid all of their respective liabilities for taxes, assessments, governmental charges, and other levies that are due and
payable, and there are no pending or, to the knowledge of the Company, threatened investigations of the Company or any of its Subsidiaries
by any taxing authority or of any pending but unassessed tax liability of the Company or any of its Subsidiaries, other than with
respect to taxes in an aggregate amount as to which would not, if an adverse determination is made with respect to such taxes,
have a Material Adverse Effect. No tax Liens have been filed and no claims are being asserted against the Company or any of its
Subsidiaries or any of their Affiliates, with respect to any taxes. None of the income tax returns of the Company or any of its
Subsidiaries or any of their Affiliates are under audit. The charges, accruals and reserves on the books of the Company and each
of its Subsidiaries in respect of taxes or other governmental charges are in accordance with GAAP.

 

    	 

    	 

    

 

Section 3.11         Capitalization;
Subsidiaries. As of July 26, 2012, the authorized capital stock of the Company consists of 100,000,000 shares, of which
(a) 75,000,000 shares are Common Stock, of which 11,075,318 shares are issued and outstanding, and 1,840,238 shares are reserved
for issuance pursuant to the Company’s 2010 Stock Incentive Plan (the “2010 Plan”) (subject to adjustments
as provided for in the 2010 Plan)(under which, stock options to purchase 1,043,971 shares of Common Stock are granted and outstanding)
and 998,096 shares are reserved for issuance upon exercise of Common Stock warrants; (b) 25,000,000 shares are preferred stock,
par value $0.001 per share, of which none are issued and outstanding and 175,000 shares have been designated as Series A junior
participating preferred stock in connection with the Company’s shareholder rights plan. Options to purchase 1,045,138 shares
of Common Stock remain granted and outstanding under the Company’s expired 1999 Stock Incentive Plan (the “1999
Plan”). All of such outstanding shares of Capital Stock are duly authorized, validly issued, fully paid and nonassessable.
No shares of Capital Stock of the Company are subject to preemptive rights or any other similar rights of the stockholders of the
Company or any Lien directly in favor of the Company imposed through the actions or failure to act of the Company. Except as described
in the previous sentences of this Section 3.11 (i) there are no outstanding options, warrants, scrip, rights to subscribe for,
puts, calls, rights of first refusal, agreements, understandings, claims or other commitments or rights of any character whatsoever
relating to, or securities or rights convertible into or exchangeable for any shares of capital stock of the Company or any of
its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares
of capital stock of the Company or any of its Subsidiaries, and (ii) there are no anti-dilution or price adjustment provisions
contained in any security issued by the Company (or in any agreement providing rights to security holders) that will be triggered
by the issuance of the Shares, and the Company is not currently contemplating any issuances of its debt or equity securities which
would trigger any such anti-dilution or price adjustment provisions. None of the Company or any of its Subsidiaries has outstanding
any bonds, debentures, notes or other obligations the holders of which have the right to vote (or are convertible into or exercisable
for securities having the right to vote) with the stockholders of the Company on any matter. Except as set forth in the Company’s
certificate of incorporation or the Company’s bylaws or this Agreement, there are no agreements or understandings to which
the Company is a party with respect to the voting of any Shares or which restrict the transfer of any such shares, nor as of the
date of this Agreement does the Company have knowledge of any third party agreements or understandings with respect to the voting
of any such shares. The Company owns all of the Capital Stock of its Subsidiaries. A complete list of the Company’s Subsidiaries
is attached hereto as Schedule 3.11.

 

Section 3.12         Agreements.
The Company is not in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions
contained in any agreement, document or instrument binding on it or its Properties, except for instances of noncompliance that,
individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

    	 

    	 

    

 

Section 3.13         Compliance
with Laws. None of the Company or any of its Subsidiaries is in violation of any Governmental Requirement, except for instances
of non-compliance that, individually or in the aggregate, could not have a Material Adverse Effect. The Company and each of its
Subsidiaries have complied, and will comply with, all material requirements of applicable federal, state, local and foreign laws,
and regulations thereunder, including federal and state securities laws.

 

Section 3.14         Material
Contracts. Each of the Material Contracts to which the Company or any Subsidiary is a party constitutes valid and binding
obligations of the Company or its Subsidiary that is a party thereto and is in full force and effect, and none of the Company or
any of its Subsidiaries is in material default under any Material Contract and, to the knowledge of the Company after due inquiry,
no other Person that is a party thereto is in default under any of the Material Contracts. None of the Material Contracts prohibit
the transactions contemplated under this Agreement and the Other Agreements.

 

Section 3.17         Registration
Rights. Other than pursuant to the Registration Rights Agreement and that certain Registration Rights Agreement, dated
as of October 23, 2010, by and between the Company and the purchasers party thereto, the Company is not under any contractual obligation
to register any of its presently outstanding securities or any of its securities that may hereafter be issued.

 

Section 3.18         Environmental
Matters. The Company never has been to its knowledge, and is not in, material violation of any applicable statute, law
or regulation relating to the environment or occupational health and safety, and to its knowledge, no material expenditures are
required in order to comply with any such existing statute, law or regulation. No Hazardous Materials (as defined below) are used
or have been used, stored, or disposed of by the Company or, to the Company’s knowledge, by any other Person on any property
owned, leased or used by the Company. For the purposes of the preceding sentence, “Hazardous Materials” shall mean
(a) materials which are listed or otherwise defined as “hazardous” or “toxic” under any applicable local,
state, federal and/or foreign laws and regulations that govern the existence and/or remedy of contamination on property, the protection
of the environment from contamination, the control of hazardous wastes, or other activities involving hazardous substances, including
building materials or (b) any petroleum products or nuclear materials.

 

Section 3.19         Rights
in and Sufficiency of Properties. The Company and its Subsidiaries hold no title in fee simple to any real property. The
Company and each of its Subsidiaries have good and marketable title to, or valid leasehold interests in, all of their respective
Properties reflected in the Company Financial Statements, except for goods sold in the ordinary course of business since the date
of the most recent of such financial statements for each of them. The Company and each of its Subsidiaries own, and have good and
marketable title to or valid leasehold interests in, all material Properties and assets, including furniture, fixtures, real property
and equipment necessary to conduct their respective businesses, as conducted and to complete the transactions and fulfill the obligations
contemplated hereby, and the Company each of its Subsidiaries is in material compliance with all leases which it has assumed or
to which it is a party.

 

    	 

    	 

    

 

Section 3.20         Absence
of Certain Changes. Since the date of the most recent Company Financial Statements and except as otherwise disclosed in
the Company SEC Documents, neither the Company nor any of its Subsidiaries has (a) suffered any change that has had, or could reasonably
be expected to have, a Material Adverse Effect; (b) contracted for the purchase of any material capital assets or paid any capital
expenditures (other than in the ordinary course of business); (c) incurred any material indebtedness for borrowed money or issued
or sold any debt securities; (d) incurred or discharged any liabilities or obligations, except in the ordinary course of business;
(e) paid any material amount on any indebtedness prior to the due date, or forgiven or canceled any debts; (f) mortgaged, pledged
or subjected to any Lien any of its material properties or assets; (g) suffered any damage or destruction to or loss of any assets
or Property (whether or not covered by insurance) that has had, or could reasonably be expected to have, a Material Adverse Effect;
(h) acquired or disposed of any assets, except in the ordinary course of business; (i) written up or written down the carrying
value of any of its assets; (j) changed any accounting principles, methods or practices previously followed or changed the costing
system or depreciation methods of accounting for its assets; (k) lost or terminated the relationship with any officer or material
customer or supplier, which termination or change has had, or could reasonably be expected to have, a Material Adverse Effect;
(l) formed or acquired or disposed of any interest in any corporation, partnership, joint venture, limited liability company or
other entity; (m) except in the ordinary course of business consistent with past practice and otherwise in accordance with the
1999 Plan and the 2010 Plan, issued any Capital Stock or other securities or any rights, options or warrants with respect thereto,
except as contemplated hereby; (n) declared or made any payment or distribution of cash or other property to stockholders with
respect to its stock, or purchased or redeemed any shares of its Capital Stock; (o) amended or adopted any employee benefits or
plans relating thereto; (p) experienced any union organizing effort or strike problems with labor or management in connection with
terms and conditions of employment; (q) suffered any material damage, destruction or casualty loss; or (r) committed to do any
of the foregoing or entered into any other commitment or transaction or experienced any other event that is material to this Agreement
or to any of the other agreements and documents executed or to be executed pursuant to this Agreement or to the transactions contemplated
hereby or thereby, or that has had, or could reasonably be expected to have, a Material Adverse Effect.

 

3.21         Certain
Transactions. None of the directors, executive officers, holders of more than 5% of any class of the Company’s voting
securities, or any member of the immediate family of any of the foregoing persons, is presently a party to any transaction with
the Company or a Subsidiary (other than for services as officers or directors), which would require disclosure under Item 404(a)
of SEC Regulation S-K.

 

3.22         ERISA.
Schedule 3.22 sets forth all employee benefit plans maintained, established or sponsored by the Company, or in or to which
the Company participates or contributes, which is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
The Company has made all required contributions and has no liability to any such employee benefit plan, other than liability for
health plan continuation coverage described in Part 6 of Title I(B) of ERISA, and has complied with all applicable laws for any
such employee benefit plan.

 

    	 

    	 

    

 

3.23         Employees.
The Company has no collective bargaining agreements with any of its employees. There is no labor union organizing activity
pending or, to the Company’s knowledge, threatened with respect to the Company. Except as set forth on Schedule 3.23,
the Company is not a party to or bound by any currently effective employment contract, deferred compensation arrangement, bonus
plan, incentive plan, profit sharing plan, retirement agreement or other employee compensation plan or agreement. Except as set
forth on Schedule 3.23, no employee of the Company has been granted the right to continued employment by the Company or
to any material compensation following termination of employment with the Company. To the Company’s knowledge, no employee
of the Company, nor any consultant with whom the Company has contracted, is in violation of any term of any employment contract,
proprietary information agreement or any other agreement relating to the right of any such individual to be employed by, or to
contract with, the Company. The Company has not received any notice alleging that any such violation has occurred. The Company
is not aware that any officer, key employee or group of employees intends to terminate his, her or their employment with the Company,
nor does the Company have a present intention to terminate the employment of any officer, key employee or group of employees. There
are no actions pending, or to the Company’s knowledge, threatened, by any former or current employee concerning such person’s
employment by the Company.

 

3.24         Insurance.
The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company
and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

 

3.25         Internal
Accounting Controls. The Company and has not received, orally or in writing, any adverse notification (including any “management
letters”) from its auditors relating to the Company’s internal financial controls and procedures. To the Company’s
knowledge, it maintains internal control over financial reporting designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles and such internal control over financial reporting is effective.

 

3.26         Books
and Records. The books of account, ledgers, order books, records and documents of the Company and each of its Subsidiaries
taken as a whole accurately and completely reflect all material information relating to the business of the Company and its Subsidiaries,
the location and collection of their respective assets, and the nature of all transactions giving rise to the obligations or accounts
receivable of the Company or any of its Subsidiaries.

 

3.27         Assumptions
or Guaranties of Indebtedness of Other Persons. Except as set forth on Schedule 3.27 attached hereto, neither the
Company nor any of its Subsidiaries has assumed, guaranteed, endorsed, or otherwise become directly or contingently liable on,
any Indebtedness or any other agreement of any other person.

 

3.28         Investments
in Other Persons. Except as set forth in Schedule 3.28 attached hereto, neither the Company nor any of its Subsidiaries
has made any loan or advance to any person which is outstanding, nor is it committed or obligated to make any such loan or advance,
nor does the Company or any of its Subsidiaries own any capital stock, assets compromising the business of, obligations of, or
any equity, ownership or other interest in, any person.

 

    	 

    	 

    

 

3.29         Disclosure.
All information and statements made by the Company relating to or concerning the Company or any of its Subsidiaries, officers,
directors, employees, customers or clients (including, without limitation, all information regarding the Company’s internal
financial accounting controls and procedures) set forth in this Agreement is true and correct in all material respects and the
Company has not omitted to state any material fact necessary in order to make the statements made herein or therein, in light of
the circumstances under which they were made, not misleading.

 

ARTICLE IV. REPRESENTATIONS, WARRANTIES
AND ADDITIONAL AGREEMENTS OF THE INVESTOR

 

The Investor represents
and warrants to the Company that the following statements are true, correct and complete as of the date hereof and as of the Closing
Date, unless another time is specified:

 

Section 4.1           Organization.
The Investor is duly organized and validly existing under the laws of the jurisdiction of its organization.

 

Section 4.2           Corporate
Power. The Investor has the corporate power and authority to execute and deliver this Agreement and the Other Agreements,
to own the Shares, and to carry out the transactions contemplated by this Agreement and the Other Agreements.

 

Section 4.3           Authorization.
All corporate action on the part of the Investor necessary for (a) the authorization, execution, delivery and performance of this
Agreement and the Other Agreements by the Investor; and (b) the performance of all of the Investor’s obligations hereunder
and under the Other Agreements has been taken. This Agreement, the Other Agreements and all documents executed pursuant hereto
or thereto are valid, legal and binding obligations of the Investor, enforceable according to their respective terms, except as
may be limited by enforceable against the Company in accordance with their respective terms, except as may be limited by applicable
bankruptcy, insolvency, reorganization or other similar laws of general application relating to or affecting the enforcement of
creditor rights and general principles of equity that restrict the availability of equitable or legal remedies.

 

Section 4.4           Investment
Representations. The Investor (a) is an “accredited investor,” as that term is defined in Regulation D under
the Securities Act; (b) has such knowledge, skill and experience in business and financial matters that it is capable of evaluating
the merits and risks of an investment in the Company and the suitability thereof as an investment for the Investor; (c) has received
such documents and information as it has requested and has had an opportunity to ask questions of representatives of the Company
concerning the terms and conditions of the investment proposed herein, and such questions were answered to the satisfaction of
the Investor; and (d) is in a financial position to hold the Shares for an indefinite time and is able to bear the economic risk
and withstand a complete loss of its investment in the Company. The Investor is acquiring the Shares for investment for its own
account and not with a view to, or for resale in connection with, any distribution thereof.

 

    	 

    	 

    

 

Section 4.5           Restrictions
on Transferability. The Investor understands that because the Shares have not have been registered under the Securities
Act, the Investor cannot dispose of any or all of the Shares unless they are subsequently registered under the Securities Act or
exemptions from registration are available. The Investor acknowledges and understands that, except as provided in the Registration
Rights Agreement, it has no registration rights. Although it may be possible in the future to make limited public sales of the
Shares without registration under the Securities Act, Rule 144 is not now available and there is no assurance that it will become
available for any purpose. By reason of these restrictions, the Investor understands that it may be required to hold the Shares
for an indefinite period of time. The Investor understands that each certificate or other instrument representing the Shares will
bear appropriate state “blue sky” legends and a legend substantially as follows:

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”),
OR APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”), AND SHALL NOT BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED, DONATED
OR OTHERWISE TRANSFERRED (WHETHER OR NOT FOR CONSIDERATION) BY THE HOLDER EXCEPT BY REGISTRATION OR PURSUANT TO AN EXEMPTION FROM
REGISTRATION UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY SATISFACTORY TO THE
COMPANY TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE 1933 ACT AND THE STATE ACTS”;

 

and appropriate transfer restrictions will
be affixed to any notation in the DRS for any Shares.

 

ARTICLE V. COVENANTS OF THE COMPANY

 

In addition to the
other agreements and covenants set forth herein, unless waived or consented to in writing by the Investor, the Company covenants
as follows

 

5.1           Form
D; Blue Sky Laws. The Company agrees to file a Form D with respect to the Shares as required under Regulation D. The Company
shall take such action as the Company shall reasonably determine is necessary to qualify the Shares for sale to the Investor at
the applicable closing pursuant to this Agreement under applicable securities or “blue sky” laws of the states of the
United States (or to use an exemption from such qualification).

 

5.2           Reporting
Status. The Company shall use its reasonable best efforts timely to file all reports required to be filed with the SEC
pursuant to the Exchange Act, and the Company shall not terminate its status as an issuer required to file reports under the Exchange
Act even if the Exchange Act or the rules and regulations thereunder would permit such termination.

 

    	 

    	 

    

 

5.3           Corporate
Existence. So long as the Investor beneficially owns any of the Shares, the Company shall maintain its corporate existence,
except in connection with an amalgamation, consolidation, conversion or merger of the Company, any transfer of any or all or substantially
all of the assets of the Company or any other strategic or business transaction at the discretion of the Company.

 

5.4           Sarbanes-Oxley
Matters. When and if required to do so, the Company will comply with any and all applicable requirements of the Sarbanes-Oxley
Act of 2002 (“Sarbanes-Oxley”) that are effective for the Company, and any and all applicable rules and regulations
promulgated by the SEC thereunder. The Company shall implement such programs and shall take such steps reasonably necessary to
provide for its future compliance (not later than the relevant statutory and regulatory deadline therefor) with all provisions
of Section 404 of the Sarbanes-Oxley Act that may or shall become applicable to the Company. Nothing in this Section 5.4 shall
defer, delay, obstruct or prevent the Company from using any safe harbor, grace period or reporting company status which permits
the Company to avoid compliance with any or all of the provisions of Sarbanes-Oxley and the rules and regulations promulgated thereunder.

 

5.5           No
Integration. The Company shall not make any offers or sales of any security (other than the Shares) under circumstances
that would cause the offering and sales of the Shares pursuant to this Agreement to be integrated with another transaction in violation
of Section 5 of the Securities Act.

 

5.6           Intellectual
Property. Subject to the Company’s business judgment, each of the Company and each of its Subsidiaries shall use
commercially reasonable efforts maintain in full force and effect all licenses and other rights to use Intellectual Property owned
or possessed by it and deemed by the Company in its sole discretion to be necessary to the conduct of its business.

 

5.7           
Taxes. The Company shall duly pay and discharge all material taxes or other material claims, which might become a lien
upon any of its material property except to the extent that any thereof are being disputed in good faith appropriately contested
with adequate reserves provided therefor.

 

The obligations under
Sections 5.1 through 5.10 shall terminate upon the earliest to occur of (a) the Investor becomes eligible to sell the Shares pursuant
to Rule 144 without restriction pursuant to such rule on the volume of securities that may be sold in any single transaction, assuming
for this purpose that the Investor is not an affiliate of the Company, (b) the date on which the Investor and all of its Affiliates
no longer own any of the Shares, or (c) the acquisition of the Company by another corporation or entity by sale of capital stock,
consolidation, merger, or other reorganization in which the holders of the Company’s outstanding voting stock immediately
prior to such transaction own, immediately after such transaction, securities representing less than 50% of the voting power of
the corporation or other entity surviving such transaction.

 

    	 

    	 

    

 

ARTICLE VI. CONDITIONS PRECEDENT

 

Section 6.1         Conditions
to the Obligations of the Investor. The obligation of the Investor to consummate the transactions contemplated by this
Agreement on the Closing Date is subject to the satisfaction of the following conditions precedent or execution and delivery to
the Investor of the following agreements, documents or instruments, as the case may be:

 

(a)          Compliance
with Laws. As of the Closing Date, the Company shall have complied with all Governmental Requirements necessary to consummate
the transactions contemplated by this Agreement and the Other Agreements.

 

(b)          No
Prohibitions. No Governmental Requirement shall prohibit the consummation of the transactions contemplated by this Agreement
or any of the Other Agreements and no order, judgment or decree of any Governmental Authority or arbitrator shall, and no litigation
or other proceeding shall be pending or threatened which seeks to, enjoin, prohibit, restrain or otherwise adversely affect in
any material manner the consummation of the transactions contemplated by this Agreement or the Other Agreements or otherwise have
a Material Adverse Effect.

 

(c)          Representations
and Warranties. The representations and warranties made by the Company in this Agreement and the Other Agreements or that are
contained in any certificate, document or financial or other statement of the Company furnished under or in connection with this
Agreement or the Other Agreements shall be true and correct on and as of the Closing Date.

 

(d)          Registration
Rights Agreement. The Registration Rights Agreement shall have been properly executed by the Company and delivered to the Investor.

 

(e)          Evidence
of Shares. The Investor shall have received evidence of Crossroads’ instructions to the transfer agent for the Common
Stock directing the transfer agent to issue the Shares in the name of the Investor in form and substance satisfactory to the Investor.

 

(f)          Due
Diligence. The Investor shall have completed and been satisfied with the results of its due diligence review of the Company.

 

Section 6.2         Conditions
to the Obligations of the Company. The obligation of the Company to consummate the transactions contemplated by this Agreement
on the Closing Date is subject to the satisfaction of the following conditions precedent or execution and delivery to the Company
of the following agreements, documents or instruments, as the case may be:

 

(a)          Representations
and Warranties. The representations and warranties made by the Investor in this Agreement and the Other Agreements or that
are contained in any certificate or document of the Investor furnished under or in connection with this Agreement shall be true
and correct on and as of the Closing Date.

 

    	 

    	 

    

 

(b)          No
Prohibitions. No Governmental Requirement shall prohibit the consummation of the transactions contemplated by this Agreement
or any of the Other Agreements and no order, judgment or decree of any Governmental Authority or arbitrator shall, and no litigation
or other proceeding shall be pending or threatened which seeks to, enjoin, prohibit, restrain or otherwise adversely affect in
any material manner the consummation of the transactions contemplated by this Agreement or the Other Agreements or otherwise have
a Material Adverse Effect.

 

(c)          Payment
of Purchase Price. The Company shall have received the aggregate Purchase Price from the Investor.

 

ARTICLE VII. MISCELLANEOUS

 

Section
7.1          Indemnification.

 

(a)          Except
for the representations and warranties set forth in Sections 3.1, 3.4 and 3.11, which shall survive for the duration of their respective
statute of limitations, the representations and warranties of the Company set forth in Section 3 hereof shall survive for 24 months
following the Closing Date, notwithstanding any due diligence investigation conducted by or on behalf of the Investor. The representations
and warranties of the Investor set forth in Section 4 shall survive the Closing for 24 months notwithstanding any due diligence
investigation conducted by or on behalf of the Company.

 

(b)          The
Company agrees to indemnify and hold harmless the Investor and all of its officers, directors, employees, agents and representatives
from and against any and all claims, costs, expenses, liabilities, obligations, losses or damages (including reasonable legal fees)
of any nature (“Losses”), incurred by or imposed upon any such party arising as a result of or related to any
actual breach by the Company of any of its representations, warranties set forth in Section 3 hereof or any of its covenants, agreements
and obligations under this Agreement.

 

(c)          The
Investor agrees to indemnify and hold harmless the Company and its officers, directors, employees and agents for Losses arising
as a result of or related to any actual breach by the Investor of any of its representations or warranties set forth in Section
4 hereof or any of its covenants, agreements and obligations under this Agreement.

 

(d)          Notwithstanding
the foregoing: (i) no indemnifying party shall not be liable for any claim for indemnification or Losses associated therewith unless
and until the aggregate amount of indemnifiable Losses which may be recovered from the indemnifying party equals or exceeds $50,000
(the “Basket”) after which the indemnifying party shall be liable, subject to the provisions hereof, for all
Losses, including the initial $50,000 of Losses, and (ii) in no event shall the aggregate amount paid by an indemnifying party
pursuant to this Section 7.1 exceed the purchase price of the Shares hereunder. For the avoidance of doubt the Basket shall not
apply to Losses related to breaches of any agreements, covenants, representations or warranties set forth in the Registration Rights
Agreement.

 

    	 

    	 

    

 

Section 7.2           Modification
of Agreement; Assignment. This Agreement may not be modified, altered or amended, except by an agreement in writing signed
by the Investor and the Company. Without the prior written consent of the other party, no party hereto may sell, assign or transfer
this Agreement, or any rights, titles, interests, remedies, powers, obligations and/or duties hereunder, provided, however, that
nothing in this Agreement shall defer, delay, obstruct or prevent any amalgamation, consolidation, conversion or merger of the
Company, any transfer of any or all or substantially all of the assets of the Company or any other strategic or business transaction
at the discretion of the Company.

 

Section 7.3           Expenses.
Except as set forth in the Other Agreements, each party shall bear its own expenses in connection with the transactions contemplated
by this Agreement and the Other Agreements.

 

Section 7.4           Waiver
by the Investor. The Investor’s failure, at any time or times hereafter, to require performance by the Company of
any provision of this Agreement shall not waive, affect or diminish any right of the Investor thereafter to demand compliance and
performance therewith. Any suspension or waiver by the Investor of a breach under this Agreement or the Other Agreements shall
not suspend, waive or affect any other breach by the Company under this Agreement or the Other Agreements, whether the same is
prior or subsequent thereto and whether it is of the same or of a different type. None of the undertakings, agreements, warranties,
covenants and representations of the Company or its Subsidiaries contained in this Agreement or the Other Agreements and no breach
by the Company under this Agreement or the Other Agreements shall be deemed to have been suspended or waived by the Investor, unless
such suspension or waiver is by an instrument in writing signed by an officer of the Investor and directed to the Company specifying
such suspension or waiver.

 

Section 7.5           Severability.
Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by, or invalid under, applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement.

 

Section 7.6           Parties.
This Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Company and the Investor.

 

Section 7.7           No
Fiduciary Relationship. The Investor has no fiduciary or other special relationship with the Company, and no term or condition
of the Agreement or the Other Agreements shall be construed so as to deem the relationship between the Company and the Investor,
to be such. No joint venture or partnership is created by this Agreement between the Company and the Investor.

 

Section 7.8           Entire
Agreement. This Agreement, the Other Agreements and any documents referred to herein or therein constitute the entire agreement
of the parties.

 

    	 

    	 

    

 

Section 7.9           Equitable
Relief. The Company recognizes that, in the event it fails to perform, observe or discharge any of its obligations or liabilities
under this Agreement or the Other Agreements, any remedy of law may prove to be inadequate relief to the Investor; therefore, the
Company agrees that the Investor, if the Investor so requests, shall be entitled to temporary and permanent injunctive relief in
any such case without the necessity of proving actual damages.

 

Section 7.10         Governing
Law. This Agreement shall be governed by and construed under the laws of the State of Texas without giving effect to any
choice or conflict of law provision or rule (whether of the State of Texas or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Texas, and each of the parties consents to the
jurisdiction of the courts of the State of Texas (and of the appropriate appellate courts) and waives any objection to venue laid
therein. 

 

Section 7.11         Notices.
All notices, requests, consents, approvals or demands to or upon the respective parties hereto shall be given or made to each party
at the address set forth for such party under “Address for Notices” specified below such party’s name on the
signature page to this Agreement. Unless otherwise specified herein, all such notices, requests, consents, approvals and demands
given or made in connection with the terms and provisions of this Agreement shall be deemed to have been given or made when personally
delivered, or, if mailed, upon the earlier of actual receipt by the addressee or three days after sent by registered or certified
mail, postage prepaid, or, in the case of overnight courier service (which may be utilized hereunder), when delivered by the overnight
courier company to the respective address specified above, or, in the case of telecopy or facsimile transmission (which may be
utilized hereunder), within the first business hour (9:00 a.m. to 5:00 p.m., local time for the recipient, on any business day)
after receipt by the respective addressee. Any party may change the address or transmission number to which notices shall be directed
hereunder by giving ten (10) days written notice of such change to the other party.

 

Section 7.12         Confidential
Treatment. Each party agrees that it will not, and the Company will not permit any Subsidiary to, without the prior written
consent of the other party, issue or publish a press release, tombstone or other similar announcement or publication relating to
this Agreement or the Other Agreements or the transactions contemplated hereby or thereby, prior to or after the Closing Date,
unless they or it are required to do so by the order of any court or administrative agency or in accordance with applicable law;
provided, however, that the disclosing party will deliver to the Company or the Investor, as applicable, written
notice of any intention or obligation of any disclosing party to deliver or provide a copy of this Agreement or any other related
agreement or any term or provision hereof or thereof to any Governmental Authority at least two business days prior to, or such
lesser time as is practicable given the date upon which such Governmental Authority first requires delivery, the initial date upon
which any such delivery or provision occurs and the disclosing party shall use all reasonable efforts to redact or delete from
such copy or such term or provision such terms or provisions or language relating to confidential information as may be requested
by the Company or the Investor, as applicable, to be so redacted or deleted before the same is so delivered or provided.

 

Section 7.13         Counterparts.
This Agreement may be executed in a number of identical counterparts, each of which, for all purposes, is to be deemed an original,
and all of which collectively constitute one agreement, but in making proof of this Agreement, it shall not be necessary to produce
or account for more than one such counterpart. A facsimile or photocopy of an executed counterpart of this Agreement shall be sufficient
to bind the party or parties whose signature(s) appear thereon.

 

    	 

    	 

    

 

Section 7.14         Further
Assurances. Each party will execute and deliver such further agreements, documents and instruments and take such further
action as may be reasonably requested by the other party to carry out the provisions and purposes of this Agreement and the Other
Agreements.

 

Section 7.15         Termination.
This Agreement may be terminated (a) by the Investor by written notice to the Company given prior to the Closing (i) in the
event that the Company shall have failed, refused or been unable to perform all obligations and satisfy all conditions on its part
to be performed or satisfied hereunder at or prior thereto, (ii) upon the occurrence of an event having a Material Adverse Effect,
or (iii) if the Closing has not been consummated on or prior to 5:00 p.m., Central time, on the day that is the thirtieth (30th)
day following the date of this Agreement (the “Outside Date”) and (b) by the Company upon notice to the Investor
prior to the Closing; provided, however , that the right to terminate this Agreement under this Section 7.15 shall not be available
to any Person whose failure to comply with its obligations under this Agreement has been the cause of or resulted in the failure
of the Closing to occur on or before such time. Nothing in this Section 7.15 shall be deemed to release any party from any liability
for any breach by such party of the terms and provisions of this Agreement or the Other Agreements. Upon a termination in accordance
with this Section, the Company and the Investor shall not have any further obligation or liability (including arising from such
termination) to the other.

 

[Signature page follows.]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
this Securities Purchase Agreement has been duly executed and delivered as of the day and year first written above.

 

	 	THE INVESTOR:
	 	 
	 	Iron Mountain Incorporated
	 	 	 
	 	By:	/s/ C. Richard Reese
	 	Name:	C. Richard Reese
	 	Title:	Chairman & CEO

 

	 	Address for Notices:
	 	 
	 	745 Atlantic Avenue
	 	Boston, Massachusetts  02111
	 	Attn: General Counsel: Ernest W. Cloutier
	 	Fax: (617) 451-0409

 

	 	THE COMPANY:
	 	 
	 	Crossroads Systems, Inc.
	 	 	 
	 	By:	/s/ Brian Bianchi
	 	Name:	Brian Bianchi
	 	Title:	COO
	 	Address for Notices:

 

	 	11000 North MoPac Expressway
	 	Austin, Texas  78759
	 	Attn:  Jennifer Crane
	 	Telecopy:  (512) 349-0304Exhibit 10.3

EXECUTION COPY

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT is made as of July 31, 2012, by and between Iron Mountain Incorporated, a Delaware corporation (the “Investor”)
and Crossroads Systems, Inc., a Delaware corporation (the “Company”).

 

RECITALS

 

A.           The
Company and the Investor entered into a Securities Purchase Agreement (the “Purchase Agreement”), dated as of
the date hereof, pursuant to which the Company has agreed to issue and sell to the Investor 582,524 shares of common stock, par
value $0.0001 per share of the Company (“Common Stock”) (the “Shares”), for an aggregate
purchase price of $3,000,000.

 

B.           To
induce the Investor to execute and deliver the Purchase Agreement, the Company has agreed to provide to the Investor certain registration
rights under the Securities Act, and applicable state securities laws, subject to the terms and conditions set forth herein.

 

In consideration of
the premises and mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency
of which are acknowledged, the parties agree as follows:

 

AGREEMENT

 

Section 1.          Definitions.
For purposes of this Agreement, the following terms will have meanings set forth in this Section, unless the context clearly requires
otherwise. Any capitalized terms not defined in this Agreement will have meanings set forth in the Purchase Agreement.

 

(a)          “Agreement”
means this Registration Rights Agreement, as it may be amended, modified or supplemented from time to time.

 

(b)          “Commission”
means the United States Securities and Exchange Commission.

 

(c)          “Company”
has the meaning set forth in the introductory paragraph of this Agreement.

 

(d)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations
of the Commission thereunder, all as the same shall be in effect at the time.

 

(e)          “Holder”
shall mean the Investor and any assignee or transferee of any Registrable Securities which agrees to be bound by the provisions
of this Agreement in accordance with Section 10.

 

    	 

    	 

    

 

(f)          “Investor”
has the meaning set forth in the introductory paragraph of this Agreement.

 

(g)          “Person”
means and includes natural persons, corporations, limited partnerships, limited liability companies, general partnerships, joint
stock companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other
organizations, whether or not legal entities, and any government, governmental agency, instrumentality or political subdivision.

 

(h)          “Proposed
Registration” has the meaning set forth in Section 3(a).

 

(i)          “Purchase
Agreement” has the meaning set forth in Recital A of this Agreement.

 

(j)          “Register,”
“registered” and “registration” refer to a registration effected by preparing and filing
a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration
statement by the Commission, that permits the Holders of Registrable Securities to effectuate the public sale of the Registrable
Securities pursuant to such registration statement.

 

(k)          “Registrable
Securities” means the Shares (as adjusted for stock splits, combinations, stock dividends and recapitalizations), except
for those that have been sold or transferred pursuant to an effective registration statement or pursuant to Rule 144 under the
Securities Act.

 

(l)          “Securities
Act” means the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

 

Section 2.          Shelf
Registration.

 

(a)          At
the request of a Holder, the Company shall, at its cost, prepare and, as promptly as practicable (but in no event later than sixty
(60) days following such request) file with the Commission and thereafter use its reasonable best efforts to cause to be declared
effective as soon as practicable, a registration statement on Form S-3 (the “Shelf Registration Statement”)
relating to the offer and sale of the Registrable Securities by the Holders thereof from time to time in accordance with the methods
of distribution set forth in the Shelf Registration Statement and Rule 415 under the Securities Act (hereinafter, the “Shelf
Registration”); provided, however, that no Holder shall be entitled to have the Securities held by it covered
by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all the provisions of this Agreement applicable
to such Holder. If the Company determines that it is not eligible to use Form S-3 for the purpose of this Agreement and this Section
2, the Company may use any other appropriate form under the Securities Act relating to any or all of the Registrable Securities
in accordance with the methods and distribution set forth in the Shelf Registration Statement and Rule 415 under the Securities
Act and permitting the offering of the Registrable Securities on a continuous basis and the Holders of Registrable Securities to
effectuate a public sale of such securities.

 

    	2

    	 

    

 

(b)          The
Company shall use its reasonable best efforts to keep the Shelf Registration Statement continuously effective in order to permit
the prospectus included therein (the “Prospectus”) to be lawfully delivered by the Holders of the relevant
Registrable Securities, for a period that will terminate when all of the Registrable Securities covered by the Shelf Registration
Statement (i) have been sold pursuant thereto or (ii) become eligible for sale pursuant to Rule 144 without restriction
pursuant to such rule on the volume of securities that may be sold in any single transaction, assuming
for this purpose that the Holders thereof are not affiliates of the Company (in any such case, such period being called the “Shelf
Registration Period”). The Company shall be deemed to have used its reasonable best efforts to keep the Shelf Registration
Statement effective during the requisite period if it voluntarily takes any action that would result in Holders of Registrable
Securities covered thereby not being able to offer and sell such Securities during that period if such action is (i) required
by applicable law or (ii) taken by the Company in good faith and contemplated by Section 4 below, and the Company thereafter complies
with the requirements of Section 4.

 

(c) Notwithstanding
any other provisions of this Agreement to the contrary, the Company shall cause the Shelf Registration Statement and the Prospectus
and any amendment or supplement thereto, as of the effective date of the Shelf Registration Statement, amendment or supplement,
(i) to comply in all material respects with the applicable requirements of the Securities Act and the rules and regulations of
the Commission and (ii) not to contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made,
not misleading.

 

Section 3.          Piggyback
Registration.

 

(a)          If
the Company proposes for any reason to register any of its Common Stock under the Securities Act in connection with the proposed
offer and sale of its Common Stock for money either for its own account or on behalf of any other security holders (a “Proposed
Registration”) other than pursuant to a registration statement on Form S-4, S-8 or any successor thereto, the Company
shall promptly give written notice of such proposed registration to all Holders who are entitled to registration rights under this
Agreement and shall offer such Holders the right to request inclusion of the Registrable Securities held by such Holders in the
Proposed Registration.

 

(b)          Each
Holder of Registrable Securities shall have 20 days from the receipt of such notice described in Section 3(a) above to deliver
to the Company a written request specifying the number of Registrable Securities such Holder intends to sell and such Holder’s
intended method of disposition.

 

(c)          If
the Proposed Registration by the Company is, in whole or in part, an underwritten public offering, the Company shall so advise
the Holders of Registrable Securities as part of the written notice given pursuant to Section 3(a), and any request under Section
3(b) must specify that the Registrable Securities be included in the underwriting on the same terms and conditions as the Common
Stock, if any, otherwise being sold through underwriters under such registration.

 

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(d)          Upon
receipt of a written request pursuant to Section 3(b), the Company will promptly use its reasonable best efforts to cause all such
Registrable Securities to be registered under the Securities Act (and included in any related qualifications under blue sky laws
or other compliance), to the extent required to permit sale or disposition as set forth in the Proposed Registration.

 

(e)          If
the offering is to be an underwritten offering, the Holders of Registrable Securities proposing to distribute their Registrable
Securities through such underwritten offering agree to enter into a usual and customary underwriting agreement (including customary
indemnification and contribution obligations) with the underwriter or underwriters selected for such underwriting by the Company.

 

(f)          Notwithstanding
the foregoing if, in its good faith judgment, the managing underwriter determines and advises the Company in writing that the inclusion
of all Registrable Securities proposed to be included in the underwritten public offering, together with any other Common Stock
proposed to be included therein other than Registrable Securities (such other shares collectively the “Other Shares”),
would interfere with the successful marketing of such securities, then the number of shares that are entitled to be included in
the registration and underwriting shall be allocated in the following manner: (i) first, securities the Company proposes to sell
for its own account, (ii) second, Registrable Securities, pro rata among the respective Holders thereof on the basis of the number
of shares for which each such requesting Holder has requested registration, and (iii) third, Other Shares, pro rata among the respective
Holders thereof on the basis of the number of shares for which each such requesting Holder has requested registration.

 

Section 4.          Preparation
and Filing. If and whenever the Company is under an obligation pursuant to this Agreement to use its reasonable best efforts
to effect the registration of any Registrable Securities, the Company shall, as expeditiously as practicable:

 

(a)          prepare
and file with the Commission a registration statement with respect to such Registrable Securities and use its reasonable best efforts
to cause such registration statement to become and remain effective in accordance with Section 4(b) and keep such registration
statement effective until all the Registrable Securities included on such registration statement (i) have been sold pursuant thereto
or (ii) otherwise become eligible for sale pursuant to Rule 144 without restriction pursuant to such rule on the volume of securities
that may be sold in any single transaction, assuming for this purpose that the Holders thereof are not affiliates of the Company.

 

(b)          prepare
and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the sale
of all the Registrable Securities covered by such registration statement;

 

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(c)          advise
the underwriter(s), if any, and selling Holders promptly and, if requested by such Persons, to confirm such advice in writing,
(i) when the prospectus or any prospectus supplement or post-effective amendment has been filed, and, with respect to the registration
statement or any post-effective amendment thereto, when the same has become effective, (ii) of any request by the Commission for
amendments to the registration statement or amendments or supplements to the prospectus or for additional information relating
thereto, (iii) of the issuance by the Commission of any stop order suspending the effectiveness of the registration statement under
the Securities Act or of the suspension by any state securities commission of the qualification of the Registrable Securities for
offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes, (iv) of the existence
of any fact or the happening of any event that makes any statement of a material fact made in the registration statement, the prospectus,
any amendment or supplement thereto, or any document incorporated by reference therein untrue, or that requires the making of any
additions to or changes in the registration statement or the prospectus in order to make the statements therein not misleading;

 

(d)          if
any fact or event contemplated by clause (c)(iv) above shall exist or have occurred, promptly prepare a supplement or post-effective
amendment to the registration statement or related prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered to the purchasers of Registrable Securities, the prospectus will not contain
an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading.
If the Company has delivered preliminary or final prospectuses to the selling Holders and, after having done so, the prospectus
is amended to comply with the requirements of the Securities Act, the Company shall promptly notify the selling Holders and, if
requested, the selling Holders shall immediately cease making offers of Registrable Securities and return all prospectuses to the
Company (the Company shall promptly provide the selling Holders with revised prospectuses, and following receipt of the revised
prospectuses, the selling Holders shall be free to resume making offers of Registrable Securities;

 

(e)          if
at any time the Commission shall issue any stop order suspending the effectiveness of the registration statement or any state securities
commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the
Registrable Securities under state securities or blue sky laws, use its reasonable best efforts to obtain the withdrawal or lifting
of such order at the earliest possible time;

 

(f)          furnish
to each of the selling Holders and each of the underwriter(s), if any, before filing with the Commission, copies of the registration
statement or any prospectus included therein or any amendments or supplements to any such registration statement or prospectus
(including, if requested, all documents incorporated by reference after the initial filing of such registration statement);

 

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(g)          if
requested by any selling Holder or the underwriter(s), if any, incorporate in the registration statement or prospectus, pursuant
to a supplement or post-effective amendment if necessary, such information as such selling Holder and underwriter(s), if any, may
reasonably request to have included therein, with respect to the number of Registrable Securities being sold to such underwriter(s),
the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering
and make all required filings of such prospectus supplement or post-effective amendment as soon as practicable after the Company
is notified of the matters to be incorporated in such prospectus supplement or post-effective amendment;

 

(h)          furnish
to each selling Holder and each of the underwriter(s), if any, without charge, at least one copy of the registration statement,
as first filed with the Commission, and of each amendment thereto, including all documents incorporated by reference therein and
all exhibits (including exhibits incorporated therein by reference);

 

(i)          deliver
to each selling Holder and each of the underwriter(s), if any, without charge, as many copies of the prospectus (including each
preliminary prospectus) and any amendment or supplement thereto as such Persons reasonably may request; the Company hereby consents
to the use of the prospectus and any amendment or supplement thereto by each of the selling Holders and each of the underwriter(s),
if any, in connection with the offering and the sale of the Registrable Securities covered by the prospectus or any amendment or
supplement thereto;

 

(j)          prior
to any public offering of Registrable Securities, use its reasonable best efforts to register or qualify the Registrable Securities
under the securities or blue sky laws of such jurisdictions as the selling Holders or underwriter(s), if any, may reasonably request
and do any and all other acts or things reasonably necessary or advisable to enable the disposition in such jurisdictions of the
Registrable Securities covered by the registration statement; provided, however, that the Company shall not be required
to register or qualify as a foreign corporation where it is not now so qualified or to take any action that would subject it to
the service of process in suits or to taxation, other than as to matters and transactions relating to the registration statement,
in any jurisdiction where it is not now so subject;

 

(k)          use
its reasonable best efforts to cause all Registrable Shares to be listed on any securities exchange or market on which the Common
Stock, or any similar securities, is then listed or quoted;

 

(l)          cause
to be maintained a registrar and transfer agent for all Registrable Securities;

 

(m)          cooperate
and assist in any filings required to be made with the Financial Industry Regulatory Authority (“FINRA”) and
in the performance of any due diligence investigation by any underwriter (including any “qualified independent underwriter”)
that is required to be retained in accordance with the rules and regulations of the FINRA;

 

(n)          otherwise
use its reasonable efforts to comply with all applicable rules and regulations of the Commission, and make generally available
to its security holders, as soon as practicable, a consolidated earnings statement meeting the requirements of the Securities Act
and Rule 158 thereunder (which need not be audited) for the twelve month period (i) commencing at the end of any fiscal quarter
in which Registrable Securities are sold to underwriters in a firm or best efforts underwritten offering or (ii) if not sold to
underwriters in such an offering, beginning with the first month of the Company’s first fiscal quarter commencing after the
effective date of the registration statement;

 

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(o)          enter
into such customary agreements in order to expedite or facilitate the disposition of such Registrable Securities;

 

(p)          make
available for inspection by any underwriter participating in any disposition pursuant to such registration statement, and any attorney,
accountant or other agent retained by any such underwriter (collectively, the “Inspectors”), all financial and
other records, pertinent corporate documents and properties of the Company (collectively, the “Records”), as
shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers,
directors and employees to supply all information reasonably requested by any such Inspector in connection with such registration
statement; provided that Records which the Company determines, in good faith, to be confidential and which it notifies the
Inspectors are confidential shall not be disclosed by the Inspectors unless (i) the disclosure of such Records is necessary to
avoid or correct a material misstatement or material omission in the registration statement or (ii) the release of such Records
is ordered pursuant to a subpoena or other order from a court of competent jurisdiction; provided, further, each
direct or indirect recipient of Records agrees that it will, upon learning that disclosure of such Records is sought in a court
of competent jurisdiction, give notice to the Company and allow the Company, at its expense, to undertake appropriate action and
to prevent disclosure of the Records deemed confidential;

 

(q)          shall
hold in confidence and not make any disclosure of information concerning the Holders provided to the Company unless: (i) disclosure
of such information is necessary to comply with federal or state securities laws or the Company’s obligations under this
Agreement, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration
Statement, (iii) the release of such information is ordered pursuant to a subpoena or other order from a court or governmental
body of competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure
in violation of this or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information
concerning any Holder is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt
notice to the Holder prior to making such disclosure, and allow the Holder, at its expense, to undertake appropriate action to
prevent disclosure of, or to obtain a protective order for, such information;

 

(r)          in
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the managing underwriters of such offering.

 

Section 5.          Expenses.
The Company shall pay all expenses incurred in complying with this Agreement, including without limitation all registration and
filing fees, fees and expenses of complying with securities and blue sky laws, printing expenses and fees and disbursements of
Company’s counsel and the reasonable fees and disbursements of one counsel for the selling Holders (not to exceed $15,000);
provided, however, that all underwriting discounts and selling commissions applicable to the shares of Registrable
Securities covered by any registration effected pursuant to this Agreement hereof shall be borne by the Holders thereof.

 

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Section 6.          Indemnification.

 

(a)          Indemnification
by the Company. The Company agrees to indemnify and hold harmless (i) each Holder participating in a Registration Statement
under this Agreement and any underwriter (as determined in the Securities Act) for a Holder, (ii) each Person, if any, who controls
(within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act) any of the foregoing (a “Controlling
Person”), and (iii) the respective officers, directors, partners, members, managers, employees, representatives, and
agents of any such Person or any Controlling Person (any Person referred to in clause (i), (ii), or (iii)
may hereinafter be referred to as a “Purchaser Indemnitee”) from and against any and all losses, claims, damages,
judgments, actions, reasonable out-of-pocket expenses, and other liabilities, including, as incurred, reimbursement of all reasonable
costs of investigating, preparing, pursuing, or defending any claim or action, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, including the reasonable fees and expenses of outside counsel to any Purchaser Indemnitee,
joint or several (the “Liabilities”), directly or indirectly related to, based upon, arising out of, resulting
from or in connection with any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement,
Prospectus (preliminary, amended, supplemented, or final), Issuer Free Writing Prospectus (as amended or supplemented) or any other
document prepared by the Company used to sell the Registrable Securities, or any omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, in light
of the circumstances under which they were made), not misleading, except insofar as such Liabilities arise out of or are based
upon (x) any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with
information relating to any Purchaser Indemnitee furnished to the Company or any underwriter in writing by or on behalf of such
Purchaser Indemnitee expressly for use therein, or (y) any sales by the Holder after the delivery by the Company to the Holder
of a notice to cease making offers as described in Section 4(d) and before the delivery by the Company of notice regarding the
end of such cessation. The Company shall notify the Holder promptly of the institution, threat, or assertion of any claim, proceeding
(including any governmental investigation), or litigation which it shall have become aware in connection with the matters addressed
by this Agreement which involves the Company or a Purchaser Indemnitee. The indemnity provided for herein shall remain in full
force and effect regardless of any investigation made by or on behalf of any Purchaser Indemnitee.

 

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(b)          Indemnification
by the Holders. In connection with any Registration Statement in which a Holder is participating, each Holder (severally and
not jointly) agrees to indemnify and hold harmless the Company, Controlling Persons of the Company, and the respective officers,
directors, partners, members, managers, representatives, employees, and agents of the Company or Controlling Persons of the Company
to the same extent as the foregoing indemnity from the Company to each Purchaser Indemnitee, but only with reference to (i) untrue
statements or omissions or alleged untrue statements or omissions made in reliance upon and in strict conformity with information
relating to such Holder furnished to the Company in writing by or on behalf of the Holder expressly for use in any Registration
Statement or Prospectus, any amendment or supplement thereto, or any preliminary Prospectus, and (ii) any sales by the Holder after
the delivery by the Company to the Holder of a notice to cease making offers as described in Section 4(d) and before the delivery
by the Company of notice regarding the end of such cessation. If the Holder elects to include Registrable Securities in an Underwritten
Offering, the Holder shall be required to agree to such customary indemnification provisions as may reasonably be required by the
underwriter in connection with such Underwritten Offering. In no event shall any Holder be responsible for Liabilities under this
Agreement to the Company or Controlling Persons of the Company or the respective officers, directors, partners, members, managers,
representatives, employees and agents of the Company or Controlling Persons of the Company in excess of the net proceeds received
by such Holder as a result of the sale of Registrable Securities pursuant to such Registration Statement, or amounts paid in settlement
of any Liabilities if such settlement is effected without the consent of the Holder (which consent shall not be unreasonably withheld).

 

(c)          Indemnification
Procedures. If any suit, action, proceeding (including any governmental or regulatory investigation), claim, or demand shall
be brought or asserted against any Person in respect of which indemnity may be sought pursuant to Section 6(a) or (b), such Person
(the “Indemnified Party”) shall promptly notify the Person against whom such indemnity may be sought (the “Indemnifying
Party”) of the commencement thereof (but the failure to so notify an Indemnifying Party shall not relieve it from any
Liability which it may have under this Section 6, except to the extent the Indemnifying Party is materially prejudiced by the failure
to give notice), and the Indemnifying Party, upon request of the Indemnified Party, shall retain counsel reasonably satisfactory
to the Indemnified Party to represent the Indemnified Party and any others the Indemnifying Party may reasonably designate in such
proceeding and shall assume the defense of such proceeding and pay the fees and expenses actually incurred by such counsel related
to such proceeding. Notwithstanding the foregoing, in any such proceeding, any Indemnified Party may retain its own counsel, but
the fees and expenses of such counsel shall be at the expense of such Indemnified Party, unless (i) the Indemnifying Party and
the Indemnified Party shall have mutually agreed in writing to the contrary, (ii) the Indemnifying Party failed within a reasonable
time after notice of commencement of the action to assume the defense and employ counsel reasonably satisfactory to the Indemnified
Party, (iii) the Indemnifying Party and its counsel do not pursue in a reasonable manner the defense of such action, or (iv) the
named parties to any such action (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
or any Affiliate of the Indemnifying Party, and such Indemnified Party shall have been reasonably advised by counsel that, either
(x) there may be one or more legal defenses available to it which are different from or additional to those available to the Indemnifying
Party or such Affiliate of the Indemnifying Party or (y) a conflict may exist between such Indemnified Party and the Indemnifying
Party or such Affiliate of the Indemnifying Party, in which event the Indemnifying Party may not assume or direct the defense of
such action on behalf of such Indemnified Party, it being understood, however, that the Indemnifying Party shall not, in connection
with any one such action or separate but substantially similar or related actions arising out of the same general allegations or
circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel)
for all such Indemnified Parties, which firm shall be designated in writing by the Holders of a majority of the Registrable Securities
included in the Registration Statement and any such separate firm for the Company, the directors, the officers and such control
Persons of the Company as shall be designated in writing by the Company. The Indemnifying Party shall not be liable for any settlement
of any proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed, but if settled
with such consent or if there be a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify any Indemnified
Party from and against any Liability by reason of such settlement or judgment to the extent provided in this Section 6 without
reference to this sentence. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any
settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have been a party and
indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release
of such Indemnified Party from all Liability on claims that are the subject matter of such proceeding.

 

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(d)          Contribution.
If the indemnification provided for in Section 6(a) or (b) is for any reason held to be unavailable to an Indemnified Party in
respect of any Liabilities referred to therein (other than by reason of the exceptions provided therein) or is insufficient to
hold harmless a party indemnified thereunder, then each Indemnifying Party under such sections, in lieu of indemnifying such Indemnified
Party thereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Liabilities (i)
in such proportion as is appropriate to reflect the relative benefits of the Indemnified Party on the one hand and the Indemnifying
Parties on the other in connection with the statements or omissions that resulted in such Liabilities, or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the Indemnifying Parties and the Indemnified Party, as
well as any other relevant equitable considerations. The relative fault of the Company, on the one hand, and any Purchaser Indemnitees,
on the other, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or by such Purchaser
Indemnitees and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission.

 

(e)          Contribution
Procedures. The parties agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined
by pro rata allocation (even if such Indemnified Parties were treated as one entity for such purpose), or by any other method of
allocation that does not take account of the equitable considerations referred to in Section 6(d). The amount paid or payable by
an Indemnified Party as a result of any Liabilities referred to in Section 6(d) shall be deemed to include, subject to the limitations
set forth above, any reasonable legal or other expenses actually incurred by such Indemnified Party in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this Section 6(e), in no event shall a Purchaser Indemnitee
be required to contribute any amount in excess of the amount by which proceeds received by such Purchaser Indemnitee from sales
of Registrable Securities exceeds the amount of any damages that such Purchaser Indemnitee has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. For purposes of this Section 6, each Controlling
Person of the Holder, if any, and each officer, director, partner, member, employee, representative, agent, or manager of the Holder
shall have the same rights to contribution as the Holder, as the case may be, and each Controlling Person of the Company, if any,
and each officer, director, partner, member, employee, representative, agent, or manager of the Company shall have the same rights
to contribution as the Company, as the case may be. Any party entitled to contribution will, promptly after receipt of notice of
commencement of any action, suit, or proceeding against such party in respect of which a claim for contribution may be made against
another party or parties, notify each party or parties from whom contribution may be sought, but the omission to so notify such
party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may
have under this Section 6 or otherwise, except to the extent that any party is materially prejudiced by the failure to give notice.
No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act), shall be entitled
to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

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(f)          Additional
Liability. The indemnity and contribution agreements contained in this Section 6 will be in addition to any Liability which
any Indemnifying Party may otherwise have to any Indemnified Party referred to above. Each Purchaser Indemnitee’s obligations
to contribute pursuant to this Section 6 are not joint but are several in the proportion that the number of Shares sold by such
Purchaser Indemnitee bears to the number of Shares sold by all Purchaser Indemnities.

 

(g)          Underwriting
Agreement. Notwithstanding any of the foregoing, if, in connection with an underwritten public offering of the Registrable
Securities, the Company, the selling Holders and the underwriters enter into an underwriting or purchase agreement relating to
such offering which contains provisions covering indemnification among the parties, then the indemnification provisions of this
Section shall be deemed inoperative for purposes of such offering.

 

Section 7.          Reporting
Requirements Under the Exchange Act. The Company agrees to (i) make and keep public information available, as those terms
are understood and defined in Rule 144, at all times; (ii) file with the Commission in a timely manner all reports and other documents
required of the Company under the Exchange Act; and (iii) furnish to any Holder, so long as the Holder owns any Registrable Securities,
forthwith upon request (a) a written statement by the Company that it has complied with the reporting requirements of Rule 144
and the Exchange Act, and (b) a copy of the most recent annual or quarterly report of the Company and such other reports and documents
so filed by the Company with the Commission. The Company acknowledges and agrees that the purposes of the requirements contained
in this Section are (x) to enable any such Holder to comply with the current public information requirement contained in Rule 144
under the Securities Act should such Holder ever wish to dispose of any of the securities of the Company acquired by it without
registration under the Securities Act in reliance upon Rule 144 (or any other similar exemptive provision); and (y) to qualify
the Company for the use of registration statements on Form S-3. In addition, the Company agrees to take such other measures and
file such other information, documents and reports as shall be required of it hereafter by the Commission as a condition to the
availability of Rule 144 under the Securities Act (or any similar exemptive provision hereafter in effect) and the use of Form
S-3.

 

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Section 8.          Forms.
All references in this Agreement to particular forms of registration statements are intended to include, and shall be deemed to
include, references to all successor forms which are intended to replace, or to apply to similar transactions as, the forms herein
referenced.

 

Section 9.          Termination
of Rights. The rights of the Holders to have registered Registrable Securities pursuant to this Agreement, and the Company’s
obligations to effect such registration, shall terminate on the earlier of the date on which all Registrable Securities (i) have
been registered under applicable federal and state securities laws and sold by the Holders pursuant to such registration statements,
or (ii) have been sold by the Holders pursuant to Rule 144.

 

Section 10.         Transferability.
The registration rights under this Agreement may be assigned and transferred by any Holder to any assignee or transferee as to
any or all of the Shares, provided, however, that the assignee or transferee agrees in writing to acquire and hold
such Shares subject to the provisions of this Agreement.

 

Section 11.         Miscellaneous.

 

(a)          Waivers
and Amendments. This Agreement and the other documents delivered pursuant hereto constitute the full and entire understanding
and agreement among the parties with regard to the subjects hereof and thereof. Neither this Agreement nor any term hereof may
be amended, waived, discharged or terminated orally, except pursuant to a written consent of the Company and the Investor (so long
as the Investor /or its Affiliates hold a majority of the Regstrable Securities, and otherwise to the Holders of a majority of
the Registrable Securities).

 

(b)          Rights
of the Holder.

 

(i)          The
Investor (so long as the Investor and/or its Affiliates hold a majority of the Registrable Securities, otherwise the Holder of
a majority of the Registrable Securities) shall have the absolute right to exercise or refrain from exercising any right or rights
which the Investor may have by reason of this Agreement, including, without limitation, the right to consent to the waiver of any
obligation of the Company under this Agreement and to enter into an agreement with the Company for the purpose of modifying this
Agreement or any agreement effecting any such modification, and the Investor shall not incur any liability to any other Holder
or Holders with respect to exercising or refraining from exercising any such right or rights.

 

(ii)         The
Company acknowledges and agrees that any failure by the Company to comply with its obligations under Sections 2 and 4 hereof may
result in material irreparable injury to the Holders for which there is no adequate remedy at law, that it will not be possible
to measure damages for such injuries precisely and that, in the event of any such failure, the Holders may obtain such relief as
may be required to specifically enforce the Company’s obligations under Sections 2 and 4 hereof; provided, however, that
Holders hereby agree that there shall be no breach of this Agreement by the Company, and no remedy may be sought hereunder by the
Holders, unless a registration statement covering the Registrable Securities has not been declared effective by the Commission
prior to the Lockup Expiration Date.

 

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(c)          Notices.
All notices, requests, consents and other communications required or permitted hereunder shall be in writing and shall be delivered,
or mailed first class postage prepaid, registered or certified mail, (i) if to any Holder, at the address set forth on the signature
page hereto, or such address as such Holder may specify by written notice to the Company, or (ii) if to the Company, at the address
set forth on the signature page hereto or at such other location or address as the Company may specify by notice to the Holders,
and each such notice, request, consent and other communication shall for all purposes of the Agreement be treated as being effective
or having been given as provided in Section 7.11 of the Purchase Agreement.

 

(d)          Severability.
Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by, or invalid under, applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement.

 

(e)          Choice
of Law. This Agreement shall be governed by and construed under the laws of the State of Texas without giving effect to any
choice or conflict of law provision or rule (whether of the State of Texas or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Texas, and each of the parties consents to the
jurisdiction of the courts of the State of Texas (and of the appropriate appellate courts) and waives any objection to venue laid
therein.

 

(f)          Counterparts.
This Agreement may be executed in a number of identical counterparts, each of which, for all purposes, is to be deemed an original,
and all of which collectively constitute one agreement, but in making proof of this Agreement, it shall not be necessary to produce
or account for more than one such counterpart. A facsimile or photocopy of an executed counterpart of this Agreement shall be sufficient
to bind the party or parties whose signature(s) appear thereon.

 

[Signature page follows.] 

 

    	13

    	 

    

  

IN WITNESS WHEREOF,
this Registration Rights Agreement has been duly executed and delivered as of the day and year first written above.

 

	 	THE INVESTOR:
	 	 
	 	Iron Mountain Incorporated
	 	 
	 	By:	/s/ C. Richard Reese
	 	Name:	C. Richard Reese
	 	Title:	Chairman & CEO
	 	 
	 	Address for Notices:
	 	 
	 	745 Atlantic Avenue
	 	Boston, Massachusetts  02111
	 	Attn: General Counsel: Ernest W. Cloutier
	 	Fax: (617) 451-0409
	 	 
	 	THE COMPANY:
	 	 
	 	Crossroads Systems, Inc.
	 	 
	 	By:	/s/ Brian Bianchi
	 	Name:	Brian Bianchi
	 	Title:	COO
	 	 
	 	Address for Notices:
	 	 
	 	11000 North MoPac Expressway
	 	Austin, Texas  78759
	 	Attn:  Jennifer Crane
	 	Telecopy:  (512) 349-0304

 

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