Document:

EXHIBIT 10.3

 

NEXSAN CORPORATION

2010 EQUITY INCENTIVE PLAN

 

1.                                      PURPOSE.  The purpose
of this Plan is to provide incentives to attract, retain and motivate eligible
persons whose present and potential contributions are important to the success
of the Company, and any Parents and Subsidiaries that exist now or in the
future, by offering them an opportunity to participate in the Company’s future
performance through the grant of Awards. 
Capitalized terms not defined elsewhere in the text are defined in Section 27.
All share numbers in the Plan are after adjustment for the reverse stock split
approved by the Board of Directors on February 4, 2010.

 

2.                                      SHARES
SUBJECT TO THE PLAN.

 

2.1                                 Number of
Shares Available.   Subject to
Sections 2.6 and 21 and any other applicable provisions hereof, the total
number of Shares reserved and available for grant and issuance pursuant to this
Plan as of the date of adoption of the Plan by the Board, is 476,857 which are
reserved shares not issued or subject to outstanding grants under the Company’s
2001 Stock Plan  (the “Prior Plan”) on the Effective Date (as
defined below), plus (i) shares that are subject to stock options granted
under the Prior Plan that cease to be subject to such stock options after the
Effective Date and (ii) shares issued under the Prior Plan before or after
the Effective Date pursuant to the exercise of stock options that are, after
the Effective Date, forfeited and (iii) shares issued under the Prior Plan
that are repurchased by the Company at the original issue price; the total of
which for (i) through (iii) shall not exceed 1,969,423.

 

2.2                                 Lapsed,
Returned Awards.  Shares
subject to Awards, and Shares issued under the Plan under any Award, will again
be available for grant and issuance in connection with subsequent Awards under
this Plan to the extent such Shares:  (a) are
subject to issuance upon exercise of an Option or SAR granted under this Plan
but which cease to be subject to the Option or SAR for any reason other than
exercise of the Option or SAR; (b) are subject to Awards granted under
this Plan that are forfeited or are repurchased by the Company at the original
issue price; (c) are subject to Awards granted under this Plan that
otherwise terminate without such Shares being issued; or (d) are surrendered
pursuant to an Exchange Program.  To the
extent an Award under the Plan is paid out in cash rather than Shares, such
cash payment will not result in reducing the number of Shares available for
issuance under the Plan.  Shares used to
pay the exercise price of an Award or to satisfy the tax withholding
obligations related to an Award will become available for future grant or sale
under the Plan. For the avoidance of doubt, Shares that otherwise become
available for grant and issuance because of the provisions of this Section 2.2
shall not include Shares subject to Awards that initially became available
because of the substitution clause in Section 21.2 hereof.

 

2.3                                 Minimum Share
Reserve.  At all times the Company shall
reserve and keep available a sufficient number of Shares as shall be required
to satisfy the requirements of all outstanding Awards granted under this Plan.

 

2.4                                 Automatic Share
Reserve Increase.  The number
of Shares available for grant and issuance under the Plan shall be increased on
January 1, of each of 2011 through 2020, by the lesser of (i) one percent
(1%) of the number of Shares issued and outstanding on each December 31
immediately prior to the date of increase  or (ii) such
number of Shares determined by the Board.

 

 

2.5                                 Limitations.  No more than 1,500,000 Shares shall be issued
pursuant to the exercise of ISOs.

 

2.6                                 Adjustment of
Shares.  If the number of outstanding
Shares is changed by a stock dividend, recapitalization, stock split, reverse
stock split, subdivision, combination, reclassification or similar change in
the capital structure of the Company, without consideration, then (a) the
number of Shares reserved for issuance and future grant under the Plan set
forth in Section 2.1, (b) the Exercise Prices of and number of Shares
subject to outstanding Options and SARs, (c) the number of Shares subject
to other outstanding Awards, (d) the maximum number of shares that may be
issued as ISOs set forth in Section 2.5, (e) the maximum number of
Shares that may be issued to an individual or to a new Employee in any one
calendar year set forth in Section 3 and (f) the number of Shares
that are granted as Awards to Non-Employee Directors as set forth in Section 12,
shall be proportionately adjusted, subject to any required action by the Board
or the stockholders of the Company and in compliance with applicable securities
laws; provided that fractions of a Share will not be issued.

 

3.                                      ELIGIBILITY.  ISOs
may be granted only to Employees.  All
other Awards may be granted to Employees, Consultants, Directors and
Non-Employee Directors of the Company or any Parent or Subsidiary of the
Company; provided such Consultants, Directors and Non-Employee Directors
render bona fide services not in connection with the offer and sale of
securities in a capital-raising transaction. 
No Participant will be eligible to receive more than 2,000,000 Shares in
any calendar year under this Plan pursuant to the grant of Awards except that
new Employees of the Company or of a Parent or Subsidiary of the Company
(including new Employees who are also officers and directors of the Company or
any Parent or Subsidiary of the Company) are eligible to receive up to a
maximum of  2,000,000 Shares in the
calendar year in which they commence their employment.

 

4.                                      ADMINISTRATION.

 

4.1                                 Committee
Composition; Authority.  This
Plan will be administered by the Committee or by the Board acting as the
Committee.  Subject to the general
purposes, terms and conditions of this Plan, and to the direction of the Board,
the Committee will have full power to implement and carry out this Plan,
except, however, the Board shall establish the terms for the grant of an Award
to Non-Employee Directors.  The Committee
will have the authority to:

 

(a)                                  construe and
interpret this Plan, any Award Agreement and any other agreement or document
executed pursuant to this Plan;

 

(b)                                 prescribe,
amend and rescind rules and regulations relating to this Plan or any
Award;

 

(c)                                  select persons
to receive Awards;

 

(d)                                 determine the
form and terms and conditions, not inconsistent with the terms of the Plan, of
any Award granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Awards may be exercised
(which may be based on performance criteria), any vesting acceleration or
waiver of forfeiture restrictions, and any restriction or limitation regarding
any Award or the Shares relating thereto, based in each case on such factors as
the Committee will determine;

 

(e)                                  determine the
number of Shares or other consideration subject to Awards;

 

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(f)                                    determine the
Fair Market Value in good faith, if necessary;

 

(g)                                 determine
whether Awards will be granted singly, in combination with, in tandem with, in
replacement of, or as alternatives to, other Awards under this Plan or any
other incentive or compensation plan of the Company or any Parent or Subsidiary
of the Company;

 

(h)                                 grant waivers
of Plan or Award conditions;

 

(i)                                     determine the
vesting, exercisability and payment of Awards;

 

(j)                                     correct any
defect, supply any omission or reconcile any inconsistency in this Plan, any
Award or any Award Agreement;

 

(k)                                  determine
whether an Award has been earned;

 

(l)                                     determine the
terms and conditions of any, and to institute any Exchange Program;

 

(m)                               reduce or waive
any criteria with respect to Performance Factors;

 

(n)                                 adjust
Performance Factors to take into account changes in law and accounting or tax rules as
the Committee deems necessary or appropriate to reflect the impact of
extraordinary or unusual items, events or circumstances to avoid windfalls or
hardships provided that such adjustments are consistent with the regulations
promulgated under Section 162(m) of the Code with respect to persons
whose compensation is subject to Section 162(m) of the Code; and

 

(o)                                 make all other
determinations necessary or advisable for the administration of this Plan.

 

4.2                                 Committee Interpretation
and Discretion.  Any
determination made by the Committee with respect to any Award shall be made in
its sole discretion at the time of grant of the Award or, unless in
contravention of any express term of the Plan or Award, at any later time, and
such determination shall be final and binding on the Company and all persons
having an interest in any Award under the Plan. 
Any dispute regarding the interpretation of the Plan or any Award
Agreement shall be submitted by the Participant or Company to the Committee for
review.  The resolution of such a dispute
by the Committee shall be final and binding on the Company and the
Participant.  The Committee may delegate
to one or more executive officers the authority to review and resolve disputes
with respect to Awards held by Participants who are not Insiders, and such
resolution shall be final and binding on the Company and the Participant.

 

4.3                                 Section 162(m) of
the Code and Section 16 of the Exchange Act.  When necessary or desirable for an Award to
qualify as “performance-based compensation” under Section 162(m) of
the Code the Committee shall include at least two persons who are “outside
directors” (as defined under Section 162(m) of the Code) and at least
two (or a majority if more than two then serve on the Committee) such “outside
directors” shall approve the grant of such Award and timely determine (as
applicable) the Performance Period and any Performance Factors upon which
vesting or settlement of any portion of such Award is to be subject. When
required by Section 162(m) of the Code, prior to settlement of any
such Award at least two (or a majority if more than two then serve on the
Committee) such “outside directors” then serving on the Committee shall
determine and certify in writing the extent to which such Performance Factors
have been timely achieved and the extent to which the Shares subject to such
Award have thereby been earned. Awards granted to Participants who are subject
to Section 16 of 

 

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the
Exchange Act must be approved by two or more “non-employee directors” (as
defined in the regulations promulgated under Section 16 of the Exchange
Act).  With respect to Participants whose
compensation is subject to Section 162(m) of the Code, and provided
that such adjustments are consistent with the regulations promulgated under Section 162(m) of
the Code, the Committee may adjust the performance goals to account for changes
in law and accounting and to make such adjustments as the Committee deems
necessary or appropriate to reflect the impact of extraordinary or unusual
items, events or circumstances to avoid windfalls or hardships, including
without limitation (i) restructurings, discontinued operations,
extraordinary items, and other unusual or non-recurring charges, (ii) an
event either not directly related to the operations of the Company or not
within the reasonable control of the Company’s management, or (iii) a
change in accounting standards required by generally accepted accounting
principles.

 

4.4                                 Documentation.  The Award Agreement for a given Award, the
Plan and any other documents may be delivered to, and accepted by, a
Participant or any other person in any manner (including electronic
distribution or posting) that meets applicable legal requirements.

 

5.                                      OPTIONS.  The
Committee may grant Options to Participants and will determine whether such
Options will be Incentive Stock Options within the meaning of the Code (“ISOs”) or
Nonqualified Stock Options (“NQSOs”), the number of Shares subject to the Option, the
Exercise Price of the Option, the period during which the Option may be exercised,
and all other terms and conditions of the Option, subject to the following:

 

5.1                                 Option Grant.  Each Option granted under this Plan will
identify the Option as an ISO or an NQSO. 
An Option may be, but need not be, awarded upon satisfaction of such Performance
Factors during any Performance Period as are set out in advance in the
Participant’s individual Award Agreement. 
If the Option is being earned upon the satisfaction of Performance
Factors, then the Committee will: (x) determine the nature, length and
starting date of any Performance Period for each Option; and (y) select
from among the Performance Factors to be used to measure the performance, if
any.  Performance Periods may overlap and
Participants may participate simultaneously with respect to Options that are
subject to different performance goals and other criteria.

 

5.2                                 Date of Grant.  The date of grant of an Option will be the
date on which the Committee makes the determination to grant such Option, or a
specified future date.  The Award Agreement
and a copy of this Plan will be delivered to the Participant within a
reasonable time after the granting of the Option.

 

5.3                                 Exercise Period.  Options may be exercisable within the times
or upon the conditions as set forth in the Award Agreement governing such
Option; provided, however, that no Option will be
exercisable after the expiration of ten (10) years from the date the
Option is granted; and provided further that no ISO granted to a person
who, at the time the ISO is granted, directly or by attribution owns more than
ten percent (10%) of the total combined voting power of all classes of stock of
the Company or of any Parent or Subsidiary of the Company (“Ten Percent Stockholder”)
will be exercisable after the expiration of five (5) years from the date
the ISO is granted.  The Committee also
may provide for Options to become exercisable at one time or from time to time,
periodically or otherwise, in such number of Shares or percentage of Shares as
the Committee determines.

 

5.4                                 Exercise Price.  The Exercise Price of an Option will be
determined by the Committee when the Option is granted; provided that: (i) the
Exercise Price of an ISO will be not less than one hundred percent (100%) of
the Fair Market Value of the Shares on the date of grant and (ii) the
Exercise Price of any ISO granted to a Ten Percent Stockholder will not be less
than one hundred ten percent (110%) of the Fair Market Value of the Shares on
the date of grant.  Payment for the
Shares 

 

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purchased
may be made in accordance with Section 11. 
Payment for the Shares purchased may be made in accordance with Section 11
and the Award Agreement and in accordance with any procedures established by
the Company.  The Exercise Price of a NQSO
may not be less than one hundred percent (100%) of the Fair Market Value
per Share on the date of grant.

 

5.5                                 Method of
Exercise.  Any Option
granted hereunder will be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Committee and set
forth in the Award Agreement. An Option may not be exercised for a fraction of
a Share.  An Option will be deemed
exercised when the Company receives: (i) notice of exercise (in such form
as the Committee may specify from time to time) from the person entitled to
exercise the Option, and (ii) full payment for the Shares with respect to
which the Option is exercised (together with applicable withholding taxes).
Full payment may consist of any consideration and method of payment authorized
by the Committee and permitted by the Award Agreement and the Plan. Shares
issued upon exercise of an Option will be issued in the name of the
Participant. Until the Shares are issued (as evidenced by the appropriate entry
on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
stockholder will exist with respect to the Shares, notwithstanding the exercise
of the Option. The Company will issue (or cause to be issued) such Shares
promptly after the Option is exercised. 
No adjustment will be made for a dividend or other right for which the
record date is prior to the date the Shares are issued, except as provided in Section 2.6
of the Plan. Exercising an Option in any manner will decrease the number of
Shares thereafter available, both for purposes of the Plan and for sale under
the Option, by the number of Shares as to which the Option is exercised.

 

5.6                                 Termination.  The exercise of an Option will be subject to
the following (except as may be otherwise provided in an Award Agreement):

 

(a)                                  If the
Participant is Terminated for any reason except for Cause or the Participant’s
death or Disability, then the Participant may exercise such Participant’s
Options only to the extent that such Options would have been exercisable by the
Participant on the Termination Date no later than three (3) months after
the Termination Date (or such shorter time period or  longer
time period not exceeding five (5) years as may be determined by the
Committee, with any exercise beyond three (3) months after the Termination
Date deemed to be the exercise of an NQSO), but in any event no later than the
expiration date of the Options.

 

(b)                                 If the
Participant is Terminated because of the Participant’s death (or the
Participant dies within three (3) months after a Termination other than
for Cause or because of the Participant’s Disability), then the Participant’s
Options may be exercised only to the extent that such Options would have been
exercisable by the Participant on the Termination Date and must be exercised by
the Participant’s legal representative, or authorized assignee, no later than
twelve (12) months after the Termination Date (or such shorter time period not
less than six (6) months or longer time period not exceeding five (5) years
as may be determined by the Committee, but in any event no later than the
expiration date of the Options.

 

(c)                                  If the
Participant is Terminated because of the Participant’s Disability, then the
Participant’s Options may be exercised only to the extent that such Options
would have been exercisable by the Participant on the Termination Date and must
be exercised by the Participant (or the Participant’s legal representative or
authorized assignee) no later than twelve (12) months after the Termination
Date (with any exercise beyond (a) three (3) months after the
Termination Date when the Termination is for a Disability that is not a
“permanent and total disability” as defined in Section 22(e)(3) of
the Code, or (b) twelve (12) months after the Termination Date when the
Termination is for a 

 

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Disability that is a “permanent
and total disability” as defined in Section 22(e)(3) of the Code,
deemed to be exercise of an NQSO), but in any event no later than the
expiration date of the Options.

 

(d)                                 If the
Participant is terminated for Cause, then Participant’s Options shall expire on
such Participant’s Termination Date, or at such later time and on such
conditions as are determined by the Committee, but in any no event later than
the expiration date of the Options.

 

5.7                                 Limitations on
Exercise.  The
Committee may specify a minimum number of Shares that may be purchased on any
exercise of an Option, provided that such minimum number will not prevent any
Participant from exercising the Option for the full number of Shares for which
it is then exercisable.

 

5.8                                 Limitations on
ISOs.  With respect to Awards granted
as ISOs, to the extent that the aggregate Fair Market Value of the Shares with
respect to which such ISOs are exercisable for the first time by the
Participant during any calendar year (under all plans of the Company and any
Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such
Options will be treated as NQSOs. For purposes of this Section 5.8, ISOs
will be taken into account in the order in which they were granted. The Fair
Market Value of the Shares will be determined as of the time the Option with
respect to such Shares is granted.  In
the event that the Code or the regulations promulgated thereunder are amended
after the Effective Date to provide for a different limit on the Fair Market
Value of Shares permitted to be subject to ISOs, such different limit will be
automatically incorporated herein and will apply to any Options granted after
the effective date of such amendment.

 

5.9                                 Modification,
Extension or Renewal.  The
Committee may modify, extend or renew outstanding Options and authorize the
grant of new Options in substitution therefor, provided that any such action
may not, without the written consent of a Participant, impair any of such
Participant’s rights under any Option previously granted.  Any outstanding ISO that is modified,
extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of
the Code.  Subject to Section 18 of
this Plan, by written notice to affected Participants, the Committee may reduce
the Exercise Price of outstanding Options without the consent of such
Participants; provided, however, that the Exercise Price may
not be reduced below the Fair Market Value on the date the action is taken to
reduce the Exercise Price.

 

6.                                      RESTRICTED STOCK AWARDS.

 

6.1                                 Awards of
Restricted Stock.  A
Restricted Stock Award is an offer by the Company to sell to a Participant
Shares that are subject to restrictions (“Restricted Stock”).  The Committee will determine to whom an offer
will be made, the number of Shares the Participant may purchase, the
Purchase Price, the restrictions under which the Shares will be subject
and all other terms and conditions of the Restricted Stock Award, subject to
the Plan.

 

6.2                                 Restricted Stock Purchase
Agreement.  All
purchases under a Restricted Stock Award will be evidenced by an Award
Agreement.  Except as may otherwise be
provided in an Award Agreement, a Participant accepts a Restricted Stock Award
by signing and delivering to the Company an Award Agreement with full payment
of the Purchase Price, within thirty (30) days from the date the Award Agreement
was delivered to the Participant.  If the
Participant does not accept such Award within thirty (30) days, then the offer
of such Restricted Stock Award will terminate, unless the Committee determines
otherwise.

 

6.3                                 Purchase Price.  The Purchase Price for a Restricted Stock
Award will be determined by the Committee and may be less than Fair Market
Value on the date the Restricted Stock 

 

6

 

Award
is granted.  Payment of the Purchase
Price must be made in accordance with Section 11 of the Plan, and the
Award Agreement.  Payment of the Purchase
Price must be made in accordance with Section 11 of the Plan, and the
Award Agreement and in accordance with any procedures established by the
Company.

 

6.4                                 Terms of Restricted
Stock Awards.  Restricted
Stock Awards will be subject to such restrictions as the Committee may impose
or are required by law.  These restrictions may be based on
completion of a specified number of years of service with the Company or upon
completion of Performance Factors, if any, during any Performance Period as set
out in advance in the Participant’s Award Agreement.  Prior to the grant of a Restricted Stock
Award, the Committee shall: (a) determine the nature, length and starting
date of any Performance Period for the Restricted Stock Award; (b) select
from among the Performance Factors to be used to measure performance goals, if
any; and (c) determine the number of Shares that may be awarded to the
Participant.  Performance Periods may
overlap and a Participant may participate simultaneously with respect to
Restricted Stock Awards that are subject to different Performance Periods and
having different performance goals and other criteria.

 

6.5                                 Termination of
Participant.  Except as
may be set forth in the Participant’s Award Agreement, vesting ceases on such
Participant’s Termination Date (unless determined otherwise by the Committee).

 

7.                                      STOCK
BONUS AWARDS.

 

7.1                                 Awards of Stock
Bonuses.  A Stock Bonus Award is an
award to an eligible person of Shares for services to be rendered or for past
services already rendered to the Company or any Parent or Subsidiary.  All Stock Bonus Awards shall be made pursuant
to an Award Agreement.  No payment from
the Participant will be required for Shares awarded pursuant to a Stock Bonus
Award.

 

7.2                                 Terms of Stock
Bonus Awards.  The
Committee will determine the number of Shares to be awarded to the Participant
under a Stock Bonus Award and any restrictions thereon.  These restrictions may be based upon
completion of a specified number of years of service with the Company or upon
satisfaction of performance goals based on Performance Factors during any
Performance Period as set out in advance in the Participant’s Stock Bonus
Agreement.  Prior to the grant of any
Stock Bonus Award the Committee shall: (a) determine the nature, length
and starting date of any Performance Period for the Stock Bonus Award; (b) select
from among the Performance Factors to be used to measure performance goals; and
(c) determine the number of Shares that may be awarded to the
Participant.  Performance Periods may
overlap and a Participant may participate simultaneously with respect to Stock
Bonus Awards that are subject to different Performance Periods and different
performance goals and other criteria.

 

7.3                                 Form of
Payment to Participant. 
Payment may be made in the form of cash, whole Shares, or a combination
thereof, based on the Fair Market Value of the Shares earned under a Stock
Bonus Award on the date of payment, as determined in the sole discretion of the
Committee.

 

7.4                                 Termination of
Participation.  Except as
may be set forth in the Participant’s Award Agreement, vesting ceases on such
Participant’s Termination Date (unless determined otherwise by the Committee).

 

8.                                      STOCK APPRECIATION RIGHTS.

 

8.1                                 Awards of SARs.  A Stock Appreciation Right (“SAR”) is an award to a Participant
that may be settled in cash, or Shares (which may consist of Restricted Stock),
having a value 

 

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equal
to (a) the difference between the Fair Market Value on the date of
exercise over the Exercise Price multiplied by (b) the number of Shares
with respect to which the SAR is being settled (subject to any maximum number
of Shares that may be issuable as specified in an Award Agreement).  All SARs shall be made pursuant to an Award
Agreement.

 

8.2                                 Terms of SARs.  The Committee will determine the terms of
each SAR including, without limitation: (a) the number of Shares subject
to the SAR; (b) the Exercise Price and the time or times during which the
SAR may be settled; (c) the consideration to be distributed on settlement
of the SAR; and (d) the effect of the Participant’s Termination on each
SAR.  The Exercise Price of the SAR will
be determined by the Committee when the SAR is granted, and may not be less
than Fair Market Value.  A SAR may be
awarded upon satisfaction of Performance Factors, if any, during any
Performance Period as are set out in advance in the Participant’s individual
Award Agreement.  If the SAR is being
earned upon the satisfaction of Performance Factors, then the Committee will: (x) determine
the nature, length and starting date of any Performance Period for each SAR;
and (y) select from among the Performance Factors to be used to measure
the performance, if any.  Performance
Periods may overlap and Participants may participate simultaneously with
respect to SARs that are subject to different Performance Factors and other
criteria.

 

8.3                                 Exercise Period
and Expiration Date.  A SAR will
be exercisable within the times or upon the occurrence of events determined by
the Committee and set forth in the Award Agreement governing such SAR.  The SAR Agreement shall set forth the
expiration date; provided that no SAR will be exercisable after the expiration
of ten (10) years from the date the SAR is granted.  The Committee may also provide for SARs to
become exercisable at one time or from time to time, periodically or otherwise
(including, without limitation, upon the attainment during a Performance Period
of performance goals based on Performance Factors), in such number of Shares or
percentage of the Shares subject to the SAR as the Committee determines.  Except as may be set forth in the Participant’s
Award Agreement, vesting ceases on such Participant’s Termination Date (unless
determined otherwise by the Committee). 
Notwithstanding the foregoing, the rules of Section 5.6 also
will apply to SARs.

 

8.4                                 Form of
Settlement.  Upon
exercise of a SAR, a Participant will be entitled to receive payment from the
Company in an amount determined by multiplying (i) the difference between
the Fair Market Value of a Share on the date of exercise over the Exercise
Price; times (ii) the number of Shares with respect to which the SAR is
exercised. At the discretion of the Committee, the payment from the Company for
the SAR exercise may be in cash, in Shares of equivalent value, or in some
combination thereof.  The portion of a
SAR being settled may be paid currently or on a deferred basis with such
interest or dividend equivalent, if any, as the Committee determines, provided
that the terms of the SAR and any deferral satisfy the requirements of Section 409A
of the Code.

 

8.5                                 Termination of
Participation.  Except as
may be set forth in the Participant’s Award Agreement, vesting ceases on such
Participant’s Termination Date (unless determined otherwise by the Committee).

 

9.                                      RESTRICTED STOCK UNITS.

 

9.1                                 Awards of
Restricted Stock Units.  A
Restricted Stock Unit (“RSU”) is an
award to a Participant covering a number of Shares that may be settled in cash,
or by issuance of those Shares (which may consist of Restricted Stock).  All RSUs shall be made pursuant to an Award
Agreement.

 

9.2                                 Terms of RSUs.  The Committee will determine the terms of an
RSU including, without limitation: (a) the number of Shares subject to the
RSU; (b) the time or times during which the RSU may be settled; and (c) the
consideration to be distributed on settlement, and the effect of the 

 

8

 

Participant’s
Termination on each RSU.  An RSU may be
awarded upon satisfaction of such performance goals based on Performance
Factors during any Performance Period as are set out in advance in the
Participant’s Award Agreement.  If the
RSU is being earned upon satisfaction of Performance Factors, then the
Committee will: (x) determine the nature, length and starting date of any
Performance Period for the RSU; (y) select from among the Performance
Factors to be used to measure the performance, if any; and (z) determine
the number of Shares deemed subject to the RSU. 
Performance Periods may overlap and participants may participate
simultaneously with respect to RSUs that are subject to different Performance
Periods and different performance goals and other criteria.

 

9.3                                 Form and
Timing of Settlement.  Payment of
earned RSUs shall be made as soon as practicable after the date(s) determined
by the Committee and set forth in the Award Agreement. The Committee, in its
sole discretion, may settle earned RSUs in cash, Shares, or a combination of
both.  The Committee may also permit a
Participant to defer payment under a RSU to a date or dates after the RSU is
earned provided that the terms of the RSU and any deferral satisfy the
requirements of Section 409A of the Code.

 

9.4                                 Termination of
Participant.  Except as
may be set forth in the Participant’s Award Agreement, vesting ceases on such
Participant’s Termination Date (unless determined otherwise by the Committee).

 

10.                               PERFORMANCE SHARES.

 

10.1                           Awards of
Performance Shares.  A Performance
Share Award is an award to a Participant denominated in Shares that may be
settled in cash, or by issuance of those Shares (which may consist of
Restricted Stock).  Grants of Performance
Shares shall be made pursuant to an Award Agreement.

 

10.2                           Terms of
Performance Shares.  The
Committee will determine, and each Award Agreement shall set forth, the terms
of each award of Performance Shares including, without limitation: (a) the
number of Shares deemed subject to such Award; (b) the Performance Factors
and Performance Period that shall determine the time and extent to which each
award of Performance Shares shall be settled; (c) the consideration to be
distributed on settlement, and the effect of the Participant’s Termination on
each award of Performance Shares.  In
establishing Performance Factors and the Performance Period the Committee will:
(x) determine the nature, length and starting date of any Performance
Period; (y) select from among the Performance Factors to be used; and (z) determine
the number of Shares deemed subject to the award of Performance Shares.  Prior to settlement the Committee shall
determine the extent to which Performance Shares have been earned.  Performance Periods may overlap and
Participants may participate simultaneously with respect to Performance Shares
that are subject to different Performance Periods and different performance
goals and other criteria.

 

10.3                           Value, Earning
and Timing of Performance Shares.  Each Performance Share will have an initial
value equal to the Fair Market Value of a Share on the date of grant.  After the applicable Performance Period has
ended, the holder of Performance Shares will be entitled to receive a payout of
the number of Performance Shares earned by the Participant over the Performance
Period, to be determined as a function of the extent to which the corresponding
Performance Factors or other vesting provisions have been achieved. The
Committee, in its sole discretion, may pay earned Performance Shares in the
form of cash, in Shares (which have an aggregate Fair Market Value equal to the
value of the earned Performance Shares at the close of the applicable
Performance Period) or in a combination thereof.

 

9

 

10.4                           Termination of
Participant.  Except as
may be set forth in the Participant’s Award Agreement, vesting ceases on such
Participant’s Termination Date (unless determined otherwise by the Committee).

 

11.                               PAYMENT
FOR SHARE PURCHASES.

 

Payment from a Participant
for Shares purchased pursuant to this Plan may be made in cash or by check or,
where expressly approved for the Participant by the Committee and where
permitted by law (and to the extent not otherwise set forth in the applicable
Award Agreement):

 

(a)                                  by cancellation
of indebtedness of the Company to the Participant;

 

(b)                                 by surrender of
shares of the Company held by the Participant that have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which said Award will be exercised or settled;

 

(c)                                  by waiver of
compensation due or accrued to the Participant for services rendered or to be
rendered to the Company or a Parent or Subsidiary of the Company;

 

(d)                                 by
consideration received by the Company pursuant to a broker-assisted or other
form of cashless exercise program implemented by the Company in connection with
the Plan;

 

(e)                                  by any
combination of the foregoing; or

 

(f)                                    by any other
method of payment as is permitted by applicable law.

 

12.                               GRANTS
TO NON-EMPLOYEE DIRECTORS.

 

12.1                           Types of Awards.  Non-Employee Directors are eligible to
receive any type of Award offered under this Plan except ISOs.  Awards pursuant to this Section 12 may
be automatically made pursuant to policy adopted by the Board, or made from
time to time as determined in the discretion of the Board.  The aggregate number of Shares subject to
Awards granted to a Non-Employee Director pursuant to this Section 12 in
any calendar year shall not exceed 1,500,000, provided however, that this
maximum number can later be increased by the Board effective for the calendar
year next commencing thereafter without further stockholder approval.

 

12.2                           Eligibility.  Awards pursuant to this Section 12 shall
be granted only to Non-Employee Directors. 
A Non-Employee Director who is elected or re-elected as a member of the
Board will be eligible to receive an Award under this Section 12.

 

12.3                           Vesting,
Exercisability and Settlement.  Except as set forth in Section 21,
Awards shall vest, become exercisable and be settled as determined by the Board.  With respect to Options and SARs, the
exercise price granted to Non-Employee Directors shall not be less than the
Fair Market Value of the Shares at the time that such Option or SAR is granted.

 

13.                               WITHHOLDING
TAXES.

 

13.1                           Withholding
Generally.  Whenever
Shares are to be issued in satisfaction of Awards granted under this Plan, the
Company may require the Participant to remit to the Company an amount
sufficient to satisfy applicable federal, state, local and international
withholding tax requirements prior to the delivery of Shares pursuant to
exercise or settlement of any Award. 
Whenever payments in 

 

10

 

satisfaction
of Awards granted under this Plan are to be made in cash, such payment will be
net of an amount sufficient to satisfy applicable federal, state, local and
international withholding tax requirements.

 

13.2                           Stock
Withholding.  The
Committee, in its sole discretion and pursuant to such procedures as it may
specify from time to time, may require or permit a Participant to satisfy such
tax withholding obligation, in whole or in part by (without limitation) (i) paying
cash, (ii) electing to have the Company withhold otherwise deliverable
cash or Shares having a Fair Market Value equal to the minimum statutory amount
required to be withheld, or (iii) delivering to the Company already-owned
Shares having a Fair Market Value equal to the minimum amount required to be
withheld. The Fair Market Value of the Shares to be withheld or delivered will
be determined as of the date that the taxes are required to be withheld.

 

14.                               TRANSFERABILITY.  Unless determined otherwise by the Committee,
an Award may not be sold, pledged, assigned, hypothecated, transferred, or
disposed of in any manner other than by will or by the laws of descent or
distribution.  If the Committee makes an
Award transferable, including, without limitation, by instrument to an inter
vivos or testamentary trust in which the Awards are to be passed to
beneficiaries upon the death of the trustor (settlor) or by gift to a Permitted
Transferee, such Award will contain such additional terms and conditions as the
Administrator deems appropriate.

 

15.                               PRIVILEGES
OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES.

 

15.1                           Voting and
Dividends.  No
Participant will have any of the rights of a stockholder with respect to any
Shares until the Shares are issued to the Participant.  After Shares are issued to the Participant,
the Participant will be a stockholder and have all the rights of a stockholder
with respect to such Shares, including the right to vote and receive all
dividends or other distributions made or paid with respect to such Shares; provided,
that if such Shares are Restricted Stock, then any new, additional or different
securities the Participant may become entitled to receive with respect to such
Shares by virtue of a stock dividend, stock split or any other change in the
corporate or capital structure of the Company will be subject to the same
restrictions as the Restricted Stock; provided, further,
that the Participant will have no right to retain such stock dividends or stock
distributions with respect to Shares that are repurchased at the Participant’s
Purchase Price or Exercise Price, as the case may be, pursuant to Section 15.2.

 

15.2                           Restrictions on
Shares.  At the discretion of the
Committee, the Company may reserve to itself and/or its assignee(s) a
right to repurchase (a “Right
of Repurchase”) a portion of any or all Unvested Shares held by
a Participant following such Participant’s Termination at any time within
ninety (90) days after the later of the Participant’s Termination Date and the
date the Participant purchases Shares under this Plan, for cash and/or
cancellation of purchase money indebtedness, at the Participant’s Purchase
Price or Exercise Price, as the case may be.

 

16.                               CERTIFICATES.  All
certificates for Shares or other securities delivered under this Plan will be
subject to such stock transfer orders, legends and other restrictions as the
Committee may deem necessary or advisable, including restrictions under any
applicable federal, state or foreign securities law, or any rules, regulations
and other requirements of the SEC or any stock exchange or automated quotation
system upon which the Shares may be listed or quoted.

 

17.                               ESCROW; PLEDGE OF SHARES.  To enforce any restrictions on a Participant’s
Shares, the Committee may require the Participant to deposit all certificates
representing Shares, together with stock powers or other instruments of
transfer approved by the Committee, appropriately endorsed in blank, with the
Company or an agent designated by the Company to hold in escrow until such
restrictions have lapsed or terminated, and the Committee may cause a legend or
legends referencing such restrictions 

 

11

 

to be placed on the
certificates.  Any Participant who is
permitted to execute a promissory note as partial or full consideration for the
purchase of Shares under this Plan will be required to pledge and deposit with
the Company all or part of the Shares so purchased as collateral to secure the
payment of the Participant’s obligation to the Company under the promissory note;
provided, however, that the Committee may require or accept
other or additional forms of collateral to secure the payment of such
obligation and, in any event, the Company will have full recourse against the
Participant under the promissory note notwithstanding any pledge of the
Participant’s Shares or other collateral. 
In connection with any pledge of the Shares, the Participant will be
required to execute and deliver a written pledge agreement in such form as the
Committee will from time to time approve. 
The Shares purchased with the promissory note may be released from the
pledge on a pro rata basis as the promissory note is paid.

 

18.                               REPRICING; EXCHANGE AND BUYOUT OF AWARDS.  Without prior stockholder approval the
Committee may (i) reprice Options or SARS (and where such repricing is a
reduction in the Exercise Price of outstanding Options or SARS, the consent of
the affected Participants is not required provided written notice is provided
to them), and (ii) with the consent of the respective Participants (unless
not required pursuant to Section 5.9 of the Plan), pay cash or issue new
Awards in exchange for the surrender and cancellation of any, or all,
outstanding Awards.

 

19.                               SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.  An Award will not be effective unless such
Award is in compliance with all applicable federal and state securities laws, rules and
regulations of any governmental body, and the requirements of any stock
exchange or automated quotation system upon which the Shares may then be listed
or quoted, as they are in effect on the date of grant of the Award and also on
the date of exercise or other issuance. 
Notwithstanding any other provision in this Plan, the Company will have
no obligation to issue or deliver certificates for Shares under this Plan prior
to: (a) obtaining any approvals from governmental agencies that the
Company determines are necessary or advisable; and/or (b) completion of
any registration or other qualification of such Shares under any state or
federal law or ruling of any governmental body that the Company determines to
be necessary or advisable.  The Company
will be under no obligation to register the Shares with the SEC or to effect
compliance with the registration, qualification or listing requirements of any
state securities laws, stock exchange or automated quotation system, and the
Company will have no liability for any inability or failure to do so.

 

20.                               NO OBLIGATION TO EMPLOY.  Nothing in this Plan or any Award granted
under this Plan will confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary of the Company or limit in any way the
right of the Company or any Parent or Subsidiary of the Company to terminate
Participant’s employment or other relationship at any time.

 

21.                               CORPORATE
TRANSACTIONS.

 

21.1                           Assumption or Replacement of Awards by
Successor.  In the
event of a Corporate Transaction any or all outstanding Awards may be assumed
or replaced by the successor corporation, which assumption or replacement shall
be binding on all Participants.  In the
alternative, the successor corporation may substitute equivalent Awards or
provide substantially similar consideration to Participants as was provided to
stockholders (after taking into account the existing provisions of the
Awards).  The successor corporation may
also issue, in place of outstanding Shares of the Company held by the
Participant, substantially similar shares or other property subject to
repurchase restrictions no less favorable to the Participant.  In the event such successor or acquiring
corporation (if any) refuses to assume, convert, replace or substitute Awards,
as provided above, pursuant to a Corporate Transaction, then notwithstanding
any other provision in this Plan to the contrary, such Awards will expire on
such transaction at such time and on such conditions as the Board will
determine; the Board (or, the 

 

12

 

Committee,
if so designated by the Board) may, in its sole discretion, accelerate the
vesting of such Awards in connection with a Corporate Transaction.  In addition, in the event such successor or
acquiring corporation (if any) refuses to assume, convert, replace or substitute
Awards, as provided above, pursuant to a Corporate Transaction, the Committee
will notify the Participant in writing or electronically that such Award will
be exercisable for a period of time determined by the Committee in its sole
discretion, and such Award will terminate upon the expiration of such
period.  Awards need not be treated
similarly in a Corporate Transaction.

 

21.2                           Assumption of
Awards by the Company.  The
Company, from time to time, also may substitute or assume outstanding awards
granted by another company, whether in connection with an acquisition of such
other company or otherwise, by either; (a) granting an Award under this
Plan in substitution of such other company’s award; or (b) assuming such
award as if it had been granted under this Plan if the terms of such assumed
award could be applied to an Award granted under this Plan.  Such substitution or assumption will be
permissible if the holder of the substituted or assumed award would have been
eligible to be granted an Award under this Plan if the other company had
applied the rules of this Plan to such grant.  In the event the Company assumes an award
granted by another company, the terms and conditions of such award will remain
unchanged (except that the Purchase Price or the Exercise Price, as the
case may be, and the number and nature of Shares issuable upon exercise or
settlement of any such Award will be adjusted appropriately pursuant to Section 424(a) of
the Code).  In the event the Company
elects to grant a new Option in substitution rather than assuming an existing
option, such new Option may be granted with a similarly adjusted Exercise
Price.

 

21.3                           Non-Employee
Directors’ Awards. 
Notwithstanding any provision to the contrary herein, in the event of a
Corporate Transaction, the vesting of all Awards granted to Non-Employee
Directors shall accelerate and such Awards shall become exercisable (as
applicable) in full prior to the consummation of such event at such times and
on such conditions as the Committee determines.

 

22.                               ADOPTION AND STOCKHOLDER APPROVAL.  This Plan shall be submitted for the approval
of the Company’s stockholders, consistent with applicable laws, within twelve
(12) months before or after the date this Plan is adopted by the Board.

 

23.                               TERM OF PLAN/GOVERNING LAW.  Unless earlier terminated as provided herein,
this Plan will become effective on the Effective Date and will terminate ten (10) years
from the date this Plan is adopted by the Board.  This Plan and all Awards granted hereunder
shall be governed by and construed in accordance with the laws of the State of
Delaware.

 

24.                               AMENDMENT OR TERMINATION OF PLAN.  The Board may at any time terminate or amend
this Plan in any respect, including, without limitation, amendment of any form
of Award Agreement or instrument to be executed pursuant to this Plan; provided, however,
that the Board will not, without the approval of the stockholders of the
Company, amend this Plan in any manner that requires such stockholder approval;
provided further, that a Participant’s Award shall be governed by the
version of this Plan then in effect at the time such Award was granted.

 

25.                               NONEXCLUSIVITY OF THE PLAN.  Neither the adoption of this Plan by the
Board, the submission of this Plan to the stockholders of the Company for approval,
nor any provision of this Plan will be construed as creating any limitations on
the power of the Board to adopt such additional compensation arrangements as it
may deem desirable, including, without limitation, the granting of stock awards
and bonuses otherwise than under this Plan, and such arrangements may be either
generally applicable or applicable only in specific cases.

 

13

 

26.                               INSIDER TRADING POLICY.  Each Participant who receives an Award shall
comply with any policy adopted by the Company from time to time covering
transactions in the Company’s securities by Employees, officers and/or
directors of the Company.

 

27.                               DEFINITIONS.  As used in this Plan, and
except as elsewhere defined herein, the following terms will have the following
meanings:

 

“Award”
means any award under the Plan, including any Option, Restricted Stock, Stock
Bonus, Stock Appreciation Right, Restricted Stock Unit or award of Performance
Shares.

 

“Award Agreement”
means, with respect to each Award, the written or electronic agreement between
the Company and the Participant setting forth the terms and conditions of the
Award, which shall be in substantially a form (which need not be the same for
each Participant) that the Committee has from time to time approved, and will
comply with and be subject to the terms and conditions of this Plan.

 

“Board” means the Board of Directors of the Company.

 

“Cause” means (a) the commission of an act of theft,
embezzlement, fraud, dishonesty, (b) a breach of fiduciary duty to the
Company or a Parent or Subsidiary, or (c) a failure to materially perform
the customary duties of Employee’s employment.

 

“Code” means the United States Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder.

 

“Committee” means the Compensation Committee of the Board
or those persons to whom administration of the Plan, or part of the Plan, has
been delegated as permitted by law.

 

“Common Stock”
means the common stock of the Company.

 

“Company” means Nexsan Corporation, or any successor
corporation.

 

“Consultant”
means any person, including an advisor or independent contractor, engaged by
the Company or a Parent or Subsidiary to render services to such entity.

 

“Corporate Transaction”
means the occurrence of any of the following events: (i) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act)
becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange
Act), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the total voting power represented by the Company’s
then-outstanding voting securities; (ii) the consummation of the sale or
disposition by the Company of all or substantially all of the Company’s assets;
(iii) the consummation of a merger or consolidation of the Company with
any other corporation, other than a merger or consolidation which would result
in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or its parent) at least fifty
percent (50%) of the total voting power represented by the voting
securities of the Company or such surviving entity or its parent outstanding
immediately after such merger or consolidation or (iv) any other
transaction which qualifies as a “corporate transaction” under Section 424(a) of
the Code wherein the stockholders of the Company give up all of their equity
interest in the Company (except for the acquisition, sale or transfer of all or
substantially all of the outstanding shares of the Company).

 

“Director”
means a member of the Board.

 

14

 

“Disability” means that the Participant is unable to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months.

 

“Effective Date” means the date of the underwritten
initial public offering of the Company’s Common Stock pursuant to a
registration statement that is declared effective by the SEC.

 

“Employee”
means any person, including Officers and Directors, employed by the Company or
any Parent or Subsidiary of the Company. Neither service as a Director nor
payment of a director’s fee by the Company will be sufficient to constitute “employment”
by the Company.

 

“Exchange Act” means the United States Securities
Exchange Act of 1934, as amended.

 

“Exchange Program”
means a program pursuant to which outstanding Awards are surrendered, cancelled
or exchanged for cash, the same type of Award or a different Award (or
combination thereof).

 

“Exercise Price” means, with respect to an Option, the
price at which a holder may purchase the Shares issuable upon exercise of an
Option and with respect to a SAR, the price at which the SAR is granted to the
holder thereof.

 

“Fair Market Value” means, as of any date, the value of a
share of the Company’s Common Stock determined as follows:

 

(a)                                  if such Common
Stock is publicly traded and is then listed on a national securities exchange,
its closing price on the date of determination on the principal national
securities exchange on which the Common Stock is listed or admitted to trading
as reported in The Wall Street Journal;

 

(b)                                 if such Common
Stock is publicly traded but is neither listed nor admitted to trading on a
national securities exchange, the average of the closing bid and asked prices
on the date of determination as reported in The
Wall Street Journal;

 

(c)                                  in the case of
an Option or SAR grant made on the Effective Date, the price per share at which
shares of the Company’s Common Stock are initially offered for sale to the
public by the Company’s underwriters in the initial public offering of the
Company’s Common Stock pursuant to a registration statement filed with the SEC
under the Securities Act; or

 

(d)                                 if none of the
foregoing is applicable, by the Board or the Committee in good faith.

 

“Insider” means an
officer or director of the Company or any other person whose transactions in
the Company’s Common Stock are subject to Section 16 of the Exchange Act.

 

“Non-Employee Director” means a Director who is not an
Employee of the Company or any Parent or Subsidiary.

 

“Option” means an award of an option to purchase Shares
pursuant to Section 5.

 

“Parent” means any corporation (other than the Company)
in an unbroken chain of corporations ending with the Company if each of such
corporations other than the Company owns stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of
the other 

 

15

 

corporations in such chain.

 

“Participant” means a person who holds an Award under
this Plan.

 

“Performance
Factors” means the factors selected by the Committee, which may
include, but are not limited to the, the following measures (whether or not in
comparison to other peer companies) to determine whether the performance goals
established by the Committee and applicable to Awards have been satisfied:

 

·                  Net revenue and/or net
revenue growth;

 

·                  Earnings per share and/or
earnings per share growth;

 

·                  Earnings before income taxes
and amortization and/or earnings before income taxes and amortization growth;

 

·                  Operating income and/or
operating income growth;

 

·                  Net income and/or net income
growth;

 

·                  Total stockholder return
and/or total stockholder return growth;

 

·                  Return on equity;

 

·                  Operating cash flow return
on income;

 

·                  Adjusted operating cash flow
return on income;

 

·                  Economic value added;

 

·                  Control of expenses;

 

·                  Cost of goods sold;

 

·                  Profit margin;

 

·                  Stock price;

 

·                  Debt or
debt-to-equity;

 

·                  Liquidity;

 

·                  Intellectual
property (e.g., patents)/product development;

 

·                  Mergers and
acquisitions or divestitures;

 

·                  Individual business
objectives;

 

·                  Company specific operational
metrics; and

 

16

 

·                  Any other factor (such as
individual business objectives or unit-specific operational metrics) the
Committee so designates.

 

“Performance Period”
means the period of service determined by the Committee, not to exceed five (5) years,
during which years of service or performance is to be measured for the Award.

 

“Performance Share”
means an Award granted pursuant to Section 10 or Section 12 of the
Plan.

 

“Permitted Transferee”
means any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse,
sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law (including adoptive
relationships) of the Employee, any person sharing the Employee’s household
(other than a tenant or employee), a trust in which these persons (or the
Employee) have more than 50% of the beneficial interest, a foundation in which
these persons (or the Employee) control the management of assets, and any other
entity in which these persons (or the Employee) own more than 50% of the voting
interests

 

“Plan” means this Nexsan Corporation 2010 Equity
Incentive Plan.

 

“Purchase Price”
means the price to be paid for Shares acquired under the Plan, other than
Shares acquired upon exercise of an Option or SAR.

 

“Restricted Stock Award”
means an award of Shares pursuant to Section 6 or Section 12 of the
Plan, or issued pursuant to the early exercise of an Option.

 

“Restricted Stock Unit”
means an Award granted pursuant to Section 9 or Section 12 of the
Plan.

 

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

 

“Securities Act” means the United States Securities Act
of 1933, as amended.

 

“Shares” means shares of the Company’s Common Stock and
any successor security.

 

“Stock Appreciation Right”
means an Award granted pursuant to Section 8 or Section 12 of the
Plan.

 

“Stock Bonus”
means an Award granted pursuant to Section 7 or Section 12 of the
Plan.

 

“Subsidiary” means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company if
each of the corporations other than the last corporation in the unbroken chain
owns stock possessing fifty percent (50%) or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

 

“Termination” or “Terminated” means, for purposes of this Plan
with respect to a Participant, that the Participant has for any reason ceased
to provide services as an employee, officer, director, consultant, independent
contractor or advisor to the Company or a Parent or Subsidiary of the Company.  An employee will not be deemed to have ceased
to provide services in the case of (i) sick leave, (ii) military
leave, or (iii) any other leave of absence approved by the Committee; provided,
that such leave is for a period of not more than 90 days, unless reemployment
upon the expiration of such leave is guaranteed by contract or statute or
unless provided otherwise pursuant to formal policy adopted from time to time
by the Company and issued and promulgated to employees in writing.  In the case of any employee on an approved
leave of absence, the Committee may make such provisions respecting 

 

17

 

suspension of vesting of the
Award while on leave from the employ of the Company or a Parent or Subsidiary
of the Company as it may deem appropriate, except that in no event may an Award
be exercised after the expiration of the term set forth in the applicable Award
Agreement.  The Committee will have sole
discretion to determine whether a Participant has ceased to provide services
and the effective date on which the Participant ceased to provide services (the
“Termination Date”).

 

“Unvested Shares” means Shares that have not yet vested
or are subject to a right of repurchase in favor of the Company (or any
successor thereto).

 

18EXHIBIT 10.4

 

NEXSAN
CORPORATION

2010 EQUITY
INCENTIVE PLAN

NOTICE OF STOCK OPTION GRANT

 

Unless
otherwise defined herein, the terms defined in the 2010 Nexsan Corporation (the
“Company”) Equity Incentive Plan (the “Plan”)
shall have the same meanings in this Notice of Stock Option Grant (the “Notice”).

 

Name:

 

Address:

 

You (the “Participant”) have been granted an
option to purchase shares of Common Stock of the Company under the Plan subject
to the terms and conditions of the Plan, this Notice and the Stock Option Award
Agreement (the “Option Agreement”).

 

Grant Number:

 

Date of Grant:

 

Vesting Commencement Date:

 

Exercise Price per Share:

 

Total Number of Shares:

 

Type of Option:                                                                                                                          Non-Qualified
Stock Option
(                
shares)

 

Incentive Stock Option
(                
shares)

 

Expiration Date:

 

	
  Post-Termination Exercise Period:

  	
  Termination
  for Cause = None

  
	
   

  	
  Voluntary
  Termination = 3 Months

  
	
   

  	
  Termination
  without Cause = 3 Months

  
	
   

  	
  Disability
  = 12 Months

  
	
   

  	
  Death = 12 Months

  

 

Vesting Schedule:                                                                                             Subject to the
limitations set forth in this Notice, the Plan and the Option Agreement, the
Option will vest and may be exercised, in whole or in part, in accordance with
the following schedule: [INSERT VESTING SCHEDULE]

 

You
understand that your employment or consulting relationship or service with the
Company is for an unspecified duration, can be terminated at any time (i.e., is
“at-will”), and that nothing in this Notice, the Option Agreement or the Plan
changes the at-will nature of that relationship.  You acknowledge that the vesting of the
Options pursuant to this Notice is earned only by continuing service as an
Employee, Director or Consultant of the Company.  Participant also understands that this Notice
is subject to the terms and conditions of both the Option Agreement and the
Plan, both of which are incorporated herein by reference.  Participant has read both the Option
Agreement and the Plan.

 

	
  PARTICIPANT:

  	
   

  	
  NEXSAN
  CORPORATION

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  

 

 

NEXSAN CORPORATION

2010 EQUITY INCENTIVE PLAN

 

STOCK OPTION AWARD AGREEMENT

 

Unless otherwise defined in
this Stock Option Award Agreement (the “Agreement”),
any capitalized terms used herein shall have the meaning ascribed to them in
the Nexsan Corporation (the “Company”)
2010 Equity Incentive Plan (the “Plan”).

 

Participant has been granted an option to purchase Shares
(the “Option”), subject to the
terms and conditions of the Plan, the Notice of Stock Option Grant (the  “Notice”)
and this Agreement.

 

1.                                      Vesting
Rights.  Subject to
the applicable provisions of the Plan and this Agreement, this Option may be
exercised, in whole or in part, in accordance with the schedule set forth in
the Notice.

 

2.                                      Termination
Period.

 

(a)                                  General Rule.  Except as provided below, and subject to the
Plan, this Option may be exercised for 3 months after termination of
Participant’s employment with the Company. 
In no event shall this Option be exercised later than the Expiration
Date set forth in the Notice.

 

(b)                                 Death; Disability.  Unless provided otherwise in the Notice, upon
the termination of Participant’s service to the Company by reason of his or her
Disability or death, or if a Participant dies within three months of the
Termination Date, this Option may be exercised for twelve months, provided that
in no event shall this Option be exercised later than the Expiration Date set
forth in the Notice.

 

(c)                                  Cause.  Upon the termination of Participant’s
employment by the Company for Cause, the Option shall expire on such date of
Participant’s Termination Date.  [Add Cause definition if not in Plan.]

 

3.                                      Grant
of Option.  The
Participant named in the Notice has been granted an Option for the number of
Shares set forth in the Notice at the exercise price per Share set forth in the
Notice (the “Exercise Price”).  In the event of a conflict between the terms
and conditions of the Plan and the terms and conditions of this Agreement, the
terms and conditions of the Plan shall prevail. 
If designated in the Notice as an Incentive Stock Option (“ISO”), this Option is intended to
qualify as an Incentive Stock Option under Section 422 of the Code.  However, if this Option is intended to be an
ISO, to the extent that it exceeds the $100,000 rule of Code Section 422(d) it
shall be treated as a Nonqualified Stock Option (“NSO”).

 

4.                                      Exercise
of Option.

 

(a)                                  Right to
Exercise.  This Option
is exercisable during its term in accordance with the Vesting Schedule set
forth in the Notice and the applicable provisions of the Plan and this
Agreement.  In the event of Participant’s
death, Disability, Termination for Cause or other Termination, the
exercisability of the Option is governed by the applicable provisions of the
Plan, the Notice and this Agreement.

 

(b)                                 Method of
Exercise.  This Option
is exercisable by delivery of an exercise notice (the “Exercise
Notice”), which shall state the election to exercise the Option,
the number of Shares in respect of which the Option is being exercised (the “Exercised Shares”), and such other
representations  and agreements
as may be required by the Company pursuant to the provisions of the Plan.  The Exercise Notice shall be delivered in
person, by mail, via electronic mail or facsimile or by other authorized method
to the Secretary of the Company or other person designated by the Company.  The Exercise Notice shall be accompanied by
payment of the aggregate Exercise Price as to all Exercised Shares. This

 

 

Option
shall be deemed to be exercised upon receipt by the Company of such fully
executed Exercise Notice accompanied by such aggregate Exercise Price.

 

(c)                                  No Shares shall
be issued pursuant to the exercise of this Option unless such issuance and
exercise complies with all relevant provisions of law and the requirements of
any stock exchange or quotation service upon which the Shares are then
listed.  Assuming such compliance, for
income tax purposes the Exercised Shares shall be considered transferred to the
Participant on the date the Option is exercised with respect to such Exercised
Shares.

 

5.                                      Method
of Payment.  Payment of
the aggregate Exercise Price shall be by any of the following, or a combination
thereof, at the election of the Participant:

 

(a)                                  cash;

 

(b)                                 check;

 

(c)                                  a “broker-assisted”
or “same-day sale” (as described in Section 11(d) of the Plan); or

 

(d)                                 other method
authorized by the Company.

 

6.                                      Non-Transferability
of Option.  This Option
may not be transferred in any manner other than by will or by the laws of
descent or distribution or court order and may be exercised during the lifetime
of Participant only by the Participant unless otherwise permitted by the
Committee on a case-by-case basis.  The
terms of the Plan and this Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Participant.

 

7.                                      Term
of Option.  This Option
shall in any event expire on the expiration date set forth in the Notice of
Stock Option Grant, which date is 10 years after the Date of Grant (five
years after the Date of Grant if this option is designated as an ISO in the
Notice of Stock Option Grant and Section 5.3 of the Plan applies).

 

8.                                      U.S.
Tax Consequences.  For
Participants subject to U.S. income tax, some of the federal tax consequences
relating to this Option, as of the date of this Option, are set forth
below.  All other Participants should
consult a tax advisor for tax consequences relating to this Option in their
respective jurisdiction.  THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  THE PARTICIPANT SHOULD CONSULT A TAX ADVISER
BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

 

(a)                                  Exercising the
Option.

 

(i)                                     Nonqualified
Stock Option.  The
Participant may incur federal ordinary income tax liability upon exercise of a
NSO.  The Participant will be treated as
having received compensation income (taxable at ordinary income tax rates)
equal to the excess, if any, of the Fair Market Value of the Exercised Shares
on the date of exercise over their aggregate Exercise Price.  If the Participant is an Employee or a former
Employee, the Company will be required to withhold from his or her compensation
an amount equal to the minimum amount the Company is required to withhold for
income and employment taxes or collect from Participant and pay to the
applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the
exercise and refuse to deliver Shares if such withholding amounts are not
delivered at the time of exercise.

 

(ii)                                  Incentive Stock
Option.  If this Option qualifies as an
ISO, the Participant will have no regular federal income tax liability upon its
exercise, although the excess, if any, of the aggregate Fair Market Value of
the Exercised Shares on the date of exercise over their aggregate 

 

 

Exercise
Price will be treated as an adjustment to alternative minimum taxable income
for federal tax purposes and may subject the Participant to alternative minimum
tax in the year of exercise.

 

(b)                                 Disposition of Shares.

 

(i)                                     NSO.  If the Participant holds NSO Shares for at
least one year, any gain realized on disposition of the Shares will be treated
as long-term capital gain for federal income tax purposes.

 

(ii)                                  ISO.  If the Participant holds ISO Shares for at
least one year after exercise and two years after the grant date, any gain
realized on disposition of the Shares will be treated as long-term capital gain
for federal income tax purposes.  If the
Participant disposes of ISO Shares within one year after exercise or two years
after the grant date, any gain realized on such disposition will be treated as
compensation income (taxable at ordinary income rates) to the extent of the
excess, if any, of the lesser of (A) the difference between the Fair
Market Value of the Shares acquired on the date of exercise and the aggregate
Exercise Price, or (B) the difference between the sale price of such
Shares and the aggregate Exercise Price.

 

(c)                                  Notice of
Disqualifying Disposition of ISO Shares.  If the Participant sells or otherwise
disposes of any of the Shares acquired pursuant to an ISO on or before the
later of (i) two years after the grant date, or (ii) one year after
the exercise date, the Participant shall immediately notify the Company in
writing of such disposition.  The
Participant agrees that he or she may be subject to income tax withholding by
the Company on the compensation income recognized from such early disposition
of ISO Shares by payment in cash or out of the current earnings paid to the
Participant.

 

9.                                      Acknowledgement.  The Company and Participant agree that the
Option is granted under and governed by the Notice, this Agreement and by the
provisions of the Plan (incorporated herein by reference).  Participant: (i) acknowledges receipt of
a copy of the Plan and the Plan prospectus, (ii) represents that
Participant has carefully read and is familiar with their provisions, and (iii) hereby
accepts the Option subject to all of the terms and conditions set forth herein
and those set forth in the Plan and the Notice.

 

10.                               Entire
Agreement; Enforcement of Rights.  This Agreement, the Plan and the Notice
constitute the entire agreement and understanding of the parties relating to
the subject matter herein and supersede all prior discussions between them. Any
prior agreements, commitments or negotiations concerning the purchase of the
Shares hereunder are superseded. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be
effective unless in writing and signed by the parties to this Agreement. The
failure by either party to enforce any rights under this Agreement shall not be
construed as a waiver of any rights of such party.

 

11.                               Compliance
with Laws and Regulations.  The issuance of Shares will be subject to and
conditioned upon compliance by the Company and Participant with all applicable
state and federal laws and regulations and with all applicable requirements of
any stock exchange or automated quotation system on which the Company’s Common
Stock may be listed or quoted at the time of such issuance or transfer.

 

12.                               Governing
Law; Severability.  If
one or more provisions of this Agreement are held to be unenforceable under
applicable law, the parties agree to renegotiate such provision in good faith.
In the event that the parties cannot reach a mutually agreeable and enforceable
replacement for such provision, then (i) such provision shall be excluded
from this Agreement, (ii) the balance of this Agreement shall be
interpreted as if such provision were so excluded and (iii) the balance of
this Agreement shall be
enforceable in accordance with its terms.  This Agreement and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
California, without giving effect to principles of conflicts of law.

 

 

13.                               No
Rights as Employee, Director or Consultant.  Nothing in this Agreement shall affect in any
manner whatsoever the right or power of the Company, or a Parent or Subsidiary
of the Company, to terminate Participant’s service, for any reason, with or
without cause.

 

By your signature and the signature of the Company’s representative on
the Notice, you and the Company agree that this Option is granted under and
governed by the terms and conditions of the Plan, the Notice and this
Agreement.  Participant has reviewed the
Plan, the Notice and this Agreement in their entirety, has had an opportunity
to obtain the advice of counsel prior to executing the Notice, and fully understands
all provisions of the Plan, the Notice and this Agreement.  Participant hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the Committee
upon any questions relating to the Plan, the Notice and the Agreement.  Participant further agrees to notify the
Company upon any change in the residence address indicated on the Notice.

 

 

NEXSAN
CORPORATION

2010 EQUITY
INCENTIVE PLAN

NOTICE OF RESTRICTED STOCK UNIT AWARD

GRANT NUMBER:         

 

Unless otherwise defined
herein, the terms defined in the Nexsan Corporation  (the
“Company”) 2010 Equity Incentive Plan
(the “Plan”) shall have the same
meanings in this Notice of Restricted Stock Unit Award (the “Notice”).

 

Name:

 

Address:

 

You  (“Participant”)  have been granted an award of Restricted Stock Units  (“RSUs”) under
the Plan subject to the terms and conditions of the Plan, this Notice and the
attached Award Agreement (Restricted Stock Units) (hereinafter  “RSU Agreement”).

 

Number of RSUs:

 

Date of Grant:

 

Vesting Commencement Date:

 

	
  Expiration Date:

  	
  The
  date on which settlement of all RSUs granted hereunder occurs, with earlier
  expiration upon the Termination Date

  
	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
  Subject
  to the limitations set forth in this Notice, the Plan and the RSU Agreement,
  the RSUs will vest in accordance with the following schedule: [INSERT VESTING SCHEDULE]

  
			

 

You
understand that your employment or consulting relationship or service with the
Company is for an unspecified duration, can be terminated at any time (i.e., is
“at-will”), and that nothing in this Notice, the RSU Agreement or the Plan
changes the at-will nature of that relationship.  You acknowledge that the vesting of the RSUs
pursuant to this Notice is earned only by continuing service as an Employee,
Director or Consultant of the Company. 
You also understand that this Notice is subject to the terms and
conditions of both the RSU Agreement and the Plan, both of which are
incorporated herein by reference. 
Participant has read both the RSU Agreement and the Plan.

 

	
  PARTICIPANT

  	
   

  	
  NEXSAN
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
  Its:

  	
   

  

 

 

NEXSAN
CORPORATION

AWARD AGREEMENT (RESTRICTED STOCK UNITS) TO THE

NEXSAN
CORPORATION 2010 EQUITY INCENTIVE PLAN

 

Unless otherwise defined herein, the terms defined
in the Nexsan Corporation  (the “Company”) 2010 Equity Incentive Plan
(the “Plan”) shall have the same
defined meanings in this Award Agreement (Restricted Stock Units) (the “Agreement”).

 

You have been granted Restricted Stock Units (“RSUs”) subject to the terms,
restrictions and conditions of the Plan, the Notice of Restricted Stock Unit
Award (the “Notice”) and this Agreement.

 

1.                                      Settlement.  Settlement of RSUs shall be made within
30 days following the applicable date of vesting under the vesting schedule
set forth in the Notice.  Settlement of
RSUs shall be in Shares.

 

2.                                      No
Stockholder Rights.  Unless and until such time as Shares are
issued in settlement of vested RSUs, Participant shall have no ownership of the
Shares allocated to the RSUs and shall have no right dividends or to vote such
Shares.

 

3.                                      Dividend Equivalents.   Dividends, if any (whether in cash or
Shares), shall not be credited to Participant.

 

4.                                      No
Transfer.  The RSUs and any interest therein shall not
be sold, assigned, transferred, pledged, hypothecated, or otherwise disposed
of.

 

5.                                      Termination.  If Participant’s service Terminates for any
reason, all unvested RSUs shall be forfeited to the Company forthwith, and all
rights of Participant to such RSUs shall immediately terminate.  In case of any dispute as to whether
Termination has occurred, the Committee shall have sole discretion to determine
whether such Termination has occurred and the effective date of such
Termination.

 

6.                                      U.S.
Tax Consequences.  Participant acknowledges that there will be
tax consequences upon settlement of the RSUs or disposition of the Shares, if
any, received in connection therewith, and Participant should consult a tax
adviser regarding Participant’s tax obligations prior to such settlement or
disposition.  Upon vesting of the RSU,
Participant will include in income the fair market value of the Shares subject
to the RSU.  The included amount will be
treated as ordinary income by Participant and will be subject to withholding by
the Company when required by applicable law. 
Upon disposition of the Shares, any subsequent increase or decrease in
value will be treated as short-term or long-term capital gain or loss,
depending on whether the Shares are held for more than one year from the date
of settlement.  Further, an RSU may be
considered a deferral of compensation that may be subject to Section 409A
of the Code.  Section 409A of the
Code imposes special rules to the timing of making and effecting certain
amendments of this RSU with respect to distribution of any deferred
compensation.  You should consult your
personal tax advisor for more information on the actual and potential tax
consequences of this RSU.

 

7.                                      Acknowledgement.  The Company and Participant agree that the
RSUs are granted under and governed by the Notice, this Agreement and the
provisions of the Plan.  Participant: (i) acknowledges
receipt of a copy of the Plan and the Plan prospectus, (ii) represents
that Participant has carefully read and is familiar with their provisions, and (iii) hereby
accepts the RSUs subject to all of the terms and conditions set forth herein
and those set forth in the Plan and the Notice.

 

8.                                      Entire
Agreement; Enforcement of Rights.  This Agreement, the Plan and the Notice
constitute the entire agreement and understanding of the parties relating to
the subject matter herein and supersede all prior discussions between them. Any
prior agreements, commitments or negotiations concerning the purchase of the
Shares hereunder are superseded. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be
effective unless in writing and signed by the parties to this Agreement. The 

 

1

 

failure by either party to
enforce any rights under this Agreement shall not be construed as a waiver of
any rights of such party.

 

9.                                      Compliance with Laws and Regulations.  The issuance of Shares will be subject to and
conditioned upon compliance by the Company and Participant with all applicable
state and federal laws and regulations and with all applicable requirements of
any stock exchange or automated quotation system on which the Company’s Common
Stock may be listed or quoted at the time of such issuance or transfer.

 

10.                               Governing Law; Severability.  If one or more provisions of this Agreement
are held to be unenforceable under applicable law, the parties agree to
renegotiate such provision in good faith. In the event that the parties cannot
reach a mutually agreeable and enforceable replacement for such provision, then
(i) such provision shall be excluded from this Agreement, (ii) the
balance of this Agreement shall be interpreted as if such provision were so
excluded and (iii) the balance of this Agreement shall be enforceable in
accordance with its terms.  This
Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted
in accordance with the laws of the State of California, without giving effect
to principles of conflicts of law.

 

11.                               No
Rights as Employee, Director or Consultant.  Nothing in this Agreement shall affect in any
manner whatsoever the right or power of the Company, or a Parent or Subsidiary
of the Company, to terminate Participant’s service, for any reason, with or without cause.

 

By your signature and the signature of the Company’s representative on
the Notice, Participant and the Company agree that this RSU is granted under
and governed by the terms and conditions of the Plan, the Notice and this
Agreement.  Participant has reviewed the
Plan, the Notice and this Agreement in their entirety, has had an opportunity
to obtain the advice of counsel prior to executing this Agreement, and fully
understands all provisions of the Plan, the Notice and this Agreement.  Participant hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the Committee
upon any  questions
relating to the Plan, the Notice and this Agreement.  Participant further agrees to notify the
Company upon any change in Participant’s residence address.

 

2

 

NEXSAN
CORPORATION

2010 EQUITY
INCENTIVE PLAN

NOTICE OF
STOCK APPRECIATION RIGHT AWARD

GRANT NUMBER:         

 

Unless otherwise defined
herein, the terms defined in the Nexsan Corporation  (the
“Company”) 2010 Equity Incentive Plan
(the “Plan”) shall have the same
meanings in this Notice of Stock Appreciation Right Award (the “Notice”).

 

Name:

 

Address:

 

You
(“Participant”) have been granted an
award of Stock Appreciation Rights (“SARs”)
under the Plan subject to the terms and conditions of the Plan, this Notice and
the attached Stock Appreciation Right Award Agreement (hereinafter “SAR Agreement”).

 

Number of SARs:

 

Maximum Number of Shares Issuable:

 

Date of Grant:

 

Fair Market Value of a Share on Date of Grant:

 

Vesting Commencement Date:

 

	
  Expiration Date:

  	
  The
  date on which settlement of all SARs granted hereunder occurs, with earlier
  expiration upon the Termination Date

  
	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
  Subject
  to the limitations set forth in this Notice, the Plan and the SAR Agreement,
  the SARs will vest in accordance with the following schedule: [INSERT VESTING SCHEDULE]

  
			

 

You
understand that your employment or consulting relationship or service with the
Company is for an unspecified duration, can be terminated at any time (i.e., is
“at-will”), and that nothing in this Notice, the SAR Agreement or the Plan
changes the at-will nature of that relationship.  You acknowledge that the vesting of the SARs
pursuant to this Notice is earned only by continuing service as an Employee,
Director or Consultant of the Company. 
Participant also understands that this Notice is subject to the terms
and conditions of both the SAR Agreement and the Plan, both of which are
incorporated herein by reference. 
Participant has read both the SAR Agreement and the Plan.

 

	
  PARTICIPANT

  	
   

  	
  NEXSAN
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
  Its:

  	
   

  

 

 

NEXSAN CORPORATION

STOCK APPRECIATION RIGHT AWARD AGREEMENT TO THE

NEXSAN CORPORATION 2010 EQUITY INCENTIVE PLAN

 

Unless
otherwise defined herein, the terms defined in the Nexsan Corporation  (the “Company”)
2010 Equity Incentive Plan (the “Plan”)
shall have the same meanings in this Stock Appreciation Right Award Agreement
(the “Agreement”).

 

You have
been granted Stock Appreciation Rights (“SARs”)
subject to the terms and conditions of the Plan, the Notice of Stock
Appreciation Right Award (the “Notice”)
and this Agreement.

 

1.                                      Settlement.  Settlement of SARs shall be made within
30 days following the applicable date of vesting under the vesting
schedule set forth in the Notice. 
Settlement of SARs shall be in Shares, except no fractional shares will
be issued in settlement of SARs.  Any
amounts attributable to a fractional share will be settled in cash.

 

2.                                      No
Stockholder Rights.  Unless and until such time as Shares are
issued in settlement of SARs, Participant shall have no ownership of the Shares
allocated to the SARs and shall have no right to vote such Shares, subject to
the terms, conditions and restrictions described in the Plan and herein.

 

3.                                      Dividend Equivalents.   Dividends, if any (whether in cash or
Shares), shall not be credited to Participant.

 

4.                                      No
Transfer.  The SARs and any interest therein shall not
be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of.

 

5.                                      Termination.  If Participant’s continuous service to the
Company or any of its subsidiaries shall terminate for any reason, all unvested
SARs shall be forfeited to the Company forthwith, and all rights of Participant
to such SARs shall immediately terminate. 
Vested SARs shall be treated in accordance with Section 5 of the
Plan regarding exercisability of vested Options.  In case of any dispute as to whether
Termination has occurred, the Committee shall have sole discretion to determine
whether such Termination has occurred and the effective date of such
Termination.

 

6.                                      U.S.
Tax Consequences.  Participant acknowledges that there will be
tax consequences upon settlement of the SARs or disposition of the Shares, if
any, received in connection therewith, and Participant should consult a tax
adviser prior to such settlement or disposition.  Applicable minimum withholding taxes shall be
satisfied by the Company by withholding the applicable number of Shares
otherwise deliverable upon settlement of the SAR in accordance with rules and
procedures established by the Committee. 
There is no tax event upon granting of an SAR.  Upon settlement of the SAR, Participant will
include in income the fair market value of the Shares subject to the Shares
payable in accordance with settlement of the SAR.  The included amount will be treated as
ordinary income by Participant and will be subject to withholding by the
Company.  Upon disposition of the Shares,
any subsequent increase or decrease in value will be treated as short-term or
long-term capital gain or loss, depending on whether the Shares are held
greater than one year from the date of settlement.

 

7.                                      Acknowledgement.  The Company and Participant agree that the
SARs are granted under and governed by the Notice, this Agreement and the
provisions of the Plan.  Participant: (i) acknowledges
receipt of a copy of the Plan and the Plan prospectus, (ii) represents
that Participant has carefully read and is familiar with their provisions, and (iii) hereby
accepts the SARs subject to all of the terms and conditions set forth herein
and those set forth in the Plan and the Notice.

 

8.                                      Entire
Agreement; Enforcement of Rights.  This Agreement, the Plan and the Notice
constitute the entire agreement and understanding of the parties relating to
the subject matter herein and supersede all prior discussions between them. Any
prior agreements, commitments or negotiations concerning the purchase of the

 

1

 

Shares hereunder are
superseded. No modification of or amendment to this Agreement, nor any waiver
of any rights under this Agreement, shall be effective unless in writing and
signed by the parties to this Agreement. The failure by either party to enforce
any rights under this Agreement shall not be construed as a waiver of any
rights of such party.

 

9.             Compliance with Laws and Regulations. 
The issuance of Shares will be subject to and conditioned upon
compliance by the Company and Participant with all applicable state and federal
laws and regulations and with all applicable requirements of any stock exchange
or automated quotation system on which the Company’s Common Stock may be listed
or quoted at the time of such issuance or transfer.

 

10.          Governing Law; Severability. 
If one or more provisions of this Agreement are held to be unenforceable
under applicable law, the parties agree to renegotiate such provision in good
faith. In the event that the parties cannot reach a mutually agreeable and
enforceable replacement for such provision, then (i) such provision shall
be excluded from this Agreement, (ii) the balance of this Agreement shall
be interpreted as if such provision were so excluded and (iii) the balance
of this Agreement shall be enforceable in accordance with its terms.  This Agreement and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
California, without giving effect to principles of conflicts of law.

 

11.          No
Rights as Employee, Director or Consultant.  Nothing in
this Agreement shall affect in any manner whatsoever the right or power of the
Company, or a Parent or Subsidiary of the Company, to terminate Purchaser’s employment or consulting relationship, for any
reason, with or without cause.

 

By your signature and the signature of the Company’s representative on
the Notice, Participant and the Company agree that this SAR is granted under
and governed by the terms and conditions of the Plan, the Notice and this
Agreement.  Participant has reviewed the
Plan, the Notice and this Agreement in their entirety, has had an opportunity
to obtain the advice of counsel prior to executing this Agreement, and fully
understands all provisions of the Plan, the Notice and this Agreement.  Participant hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the Committee
upon any questions relating to the Plan, the Notice and this Agreement.  Participant further agrees to notify the
Company upon any change in Participant’s residence address.

 

2

 

NEXSAN
CORPORATION

2010 EQUITY
INCENTIVE PLAN

NOTICE OF RESTRICTED STOCK AWARD

GRANT NUMBER:
      

 

Unless otherwise defined
herein, the terms defined in the Company’s 2010 Equity Incentive Plan (the “Plan”) shall have the same meanings
in this Notice of Restricted Stock Award (the “Notice”).

 

Name: 

 

Address:

 

You (“Participant”)
have been granted an award of Restricted Shares of Common Stock of Nexsan
Corporation (the “Company”) under the Plan
subject to the terms and conditions of the Plan, this Notice and the attached
Restricted Stock Agreement (the “Restricted Stock Purchase
Agreement”).

 

	
  Total
  Number of Restricted Shares Awarded:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fair
  Market Value per Restricted Share:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Total
  Fair Market Value of Award:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price per Restricted Share:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Total
  Purchase Price for all Restricted Shares:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Date
  of Grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting
  Commencement Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
   

  	
  Subject
  to the limitations set forth in this Notice, the Plan and the Restricted
  Stock Purchase Agreement, the Restricted Shares will vest and the right of
  repurchase shall lapse, in whole or in part, in accordance with the following
  schedule: [INSERT VESTING SCHEDULE]

  

 

You understand that your
employment or consulting relationship with the Company is for an unspecified
duration, can be terminated at any time (i.e., is “at-will”), and that nothing
in this Notice, the Restricted Stock Agreement or the Plan changes the at-will
nature of that relationship.  Participant
acknowledges that the vesting of the Restricted Shares pursuant to this Notice
is earned only by continuing service as an Employee, Director or Consultant of
the Company.  You also understand that
this Notice is subject to the terms and conditions of both the Restricted Stock
Agreement and the Plan, both of which are incorporated herein by reference.  You have read both the Restricted Stock
Agreement and the Plan.   If the
Restricted Stock Purchase Agreement is not executed by you within thirty (30)
days of the Date of Grant above, then this grant shall be void.

 

	
  NEXSAN CORPORATION

  	
   

  	
  RECIPIENT:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
  Please Print Name

  	
   

  
						

 

 

NEXSAN
CORPORATION

2010 EQUITY INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

 

THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is made as of
                                    ,
20     by and between Nexsan Corporation., a Delaware
corporation (the “Company”), and
                                                                      
(“Participant”) pursuant to the
Company’s 2010 Equity Incentive Plan (the “Plan”).  Unless otherwise defined herein, the terms
defined in the Plan shall have the same meanings in this Agreement.

 

1.             Sale of Stock.  Subject to the terms and conditions of this
Agreement, on the Purchase Date (as defined below) the Company will issue and
sell to Participant, and Participant agrees to purchase from the Company the
number of Shares shown on the Notice of Restricted Stock Award at a purchase
price of
$                
per Share. The per Share purchase price of the Shares shall be not less than
the par value of the Shares as of the date of the offer of such Shares to the
Participant. The term “Shares” refers to the purchased Shares and all
securities received in replacement of or in connection with the Shares pursuant
to stock dividends or splits, all securities received in replacement of the
Shares in a recapitalization, merger, reorganization, exchange or the like, and
all new, substituted or additional securities or other properties to which
Participant is entitled by reason of Participant’s ownership of the Shares.

 

2.             Time and Place of Purchase.  The purchase and sale of the Shares under
this Agreement shall occur at the principal office of the Company
simultaneously with the execution of this Agreement by the parties, or on such
other date as the Company and Participant shall agree (the “Purchase Date”). On the Purchase
Date, the Company will issue in Participant’s name a stock certificate
representing the Shares to be purchased by Participant against payment of the
purchase price therefor by Participant by (a) check made payable to the
Company, (b) cancellation of indebtedness of the Company to Participant, (c) Participant’s
personal services that the Committee has determined have already been rendered
to the Company and have a value not less than aggregate par value of the Shares
to be issued Participant, or (d) a combination of the foregoing.

 

3.             Restrictions on Resale.  By signing this Agreement, Participant agrees
not to sell any Shares acquired pursuant to the Plan and this Agreement at a
time when applicable laws, regulations or Company or underwriter trading
policies prohibit exercise or sale. This restriction will apply as long as
Participant is providing service to the Company or a Subsidiary of the Company.

 

3.1          Repurchase Right on Termination Other Than
for Cause.  For the
purposes of this Agreement, a “Repurchase Event” shall mean an occurrence of one of the
following:

 

(i)            termination of Participant’s service, whether
voluntary or involuntary and with or without cause;

 

(ii)           resignation, retirement or
death of Participant; or

 

(iii)         any attempted transfer by
Participant of the Shares, or any interest therein, in violation of this
Agreement.

 

Upon the occurrence of a Repurchase Event, the
Company shall have the right (but not an obligation) to purchase the Shares of
Participant at a price equal to the Purchase Price per Share (the “Repurchase Right”).  The Repurchase Right shall lapse in
accordance with the vesting schedule set forth in the Notice 

 

1

 

of Restricted Stock Award.  For purposes of this Agreement, “Unvested Shares”
means Stock pursuant to which the Company’s Repurchase Right has not lapsed.

 

3.2          Exercise of Repurchase Right.  Unless the Company provides written notice to
Participant within 90 days from the date of termination of Participant’s
service to the Company that the Company does not intend to exercise its
Repurchase Right with respect to some or all of the Unvested Shares, the
Repurchase Right shall be deemed automatically exercised by the Company as of
the 90th day following such termination, provided that the Company may notify
Participant that it is exercising its Repurchase Right as of a date prior to
such 90th day.  Unless Participant is
otherwise notified by the Company pursuant to the preceding sentence that the
Company does not intend to exercise its Repurchase Right as to some or all of
the Unvested Shares, execution of this Agreement by Participant constitutes
written notice to Participant of the Company’s intention to exercise its
Repurchase Right with respect to all Unvested Shares to which such Repurchase
Right applies at the time of Termination of Participant.  The Company, at its choice, may satisfy its
payment obligation to Participant with respect to exercise of the Repurchase
Right by either (A) delivering a check to Participant in the amount of the
purchase price for the Unvested Shares being repurchased, or (B) in the
event Participant is indebted to the Company, canceling an amount of such
indebtedness equal to the purchase price for the Unvested Shares being
repurchased, or (C) by a combination of (A) and (B) so that the
combined payment and cancellation of indebtedness equals such purchase
price.  In the event of any deemed
automatic exercise of the Repurchase Right by canceling an amount of such
indebtedness equal to the purchase price for the Unvested Shares being
repurchased, such cancellation of indebtedness shall be deemed automatically to
occur as of the 90th day following termination of Participant’s employment or
consulting relationship unless the Company otherwise satisfies its payment
obligations.  As a result of any
repurchase of Unvested Shares pursuant to the Repurchase Right, the Company
shall become the legal and beneficial owner of the Unvested Shares being
repurchased and shall have all rights and interest therein or related thereto,
and the Company shall have the right to transfer to its own name the number of
Unvested Shares being repurchased by the Company, without further action by
Participant.

 

3.3          Acceptance of Restrictions.  Acceptance of the Shares shall constitute Participant’s
agreement to such restrictions and the legending of his or her certificates
with respect thereto.  Notwithstanding
such restrictions, however, so long as Participant is the holder of the Shares,
or any portion thereof, he or she shall be entitled to receive all dividends
declared on and to vote the Shares and to all other rights of a stockholder
with respect thereto.

 

3.4          Non-Transferability
of Unvested Shares.  In addition
to any other limitation on transfer created by applicable securities laws or
any other agreement between the Company and Participant, Participant may not
transfer any Unvested Shares, or any interest therein, unless consented to in
writing by a duly authorized representative of the Company.  Any purported transfer is void and of no
effect, and no purported transferee thereof will be recognized as a holder of
the Unvested Shares for any purpose whatsoever. 
Should such a transfer purport to occur, the Company may refuse to carry
out the transfer on its books, set aside the transfer, or exercise any other
legal or equitable remedy.  In the event
the Company consents to a transfer of Unvested Shares, all transferees of
Shares or any interest therein will receive and hold such Shares or interest
subject to the provisions of this Agreement, including, insofar as applicable,
the Repurchase Right.  In the event of
any purchase by the Company hereunder where the Shares or interest are held by
a transferee, the transferee shall be obligated, if requested by the Company,
to transfer the Shares or interest to the Participant for consideration equal
to the amount to be paid by the Company hereunder.  In the event the Repurchase Right is deemed
exercised by the Company, the Company may deem any transferee to have
transferred the Shares or interest to Participant prior to their purchase by
the Company, and payment of the purchase price by the Company to such
transferee shall be deemed to satisfy Participant’s obligation to pay such
transferee for such Shares or interest, and also to satisfy the Company’s
obligation to pay Participant for such Shares or interest.

 

2

 

3.5          Assignment.  The Repurchase Right may be assigned by the
Company in whole or in part to any persons or organization.

 

4.             Restrictive Legends and Stop
Transfer Orders.

 

4.1          Legends.  The certificate or certificates representing
the Shares shall bear the following legend (as well as any legends required by
applicable state and federal corporate and securities laws):

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN
ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE
STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

4.2          Stop-Transfer Notices.  Participant agrees that, in order to ensure
compliance with the restrictions referred to herein, the Company may issue
appropriate “stop transfer” instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

 

4.3          Refusal to Transfer.  The Company shall not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred
in violation of any of the provisions of this Agreement or (ii) to treat
as the owner or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.

 

5.             No Rights as Employee,
Director or Consultant. 
Nothing in this Agreement shall affect in any manner whatsoever the
right or power of the Company, or a Parent or Subsidiary of the Company, to
terminate Participant’s service, for
any reason, with or without cause.

 

6.             Miscellaneous.

 

6.1          Acknowledgement.  The Company and Participant agree that the
Restricted Shares are granted under and governed by the Notice, this Agreement
and by the provisions of the Plan (incorporated herein by reference).  Participant: (i) acknowledges receipt of
a copy of the Plan and the Plan prospectus, (ii) represents that
Participant has carefully read and is familiar with their provisions, and (iii) hereby
accepts the Restricted Shares subject to all of the terms and conditions set
forth herein and those set forth in the Plan and the Notice.

 

6.2          Entire Agreement; Enforcement of Rights.  This Agreement, the Plan and the Notice
constitute the entire agreement and understanding of the parties relating to
the subject matter herein and supersede all prior discussions between them. Any
prior agreements, commitments or negotiations concerning the purchase of the
Shares hereunder are superseded. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be
effective unless in writing and signed by the parties to this Agreement. The
failure by either party to enforce any rights under this Agreement shall not be
construed as a waiver of any rights of such party.

 

6.3          Compliance with Laws and Regulations.  The issuance of Shares will be subject to and
conditioned upon compliance by the Company and Participant with all applicable
state and federal laws and regulations and with all applicable requirements of
any stock exchange or automated quotation system on which the Company’s Common
Stock may be listed or quoted at the time of such issuance or transfer.

 

3

 

6.4          Governing Law; Severability.  If one or more provisions of this Agreement
are held to be unenforceable under applicable law, the parties agree to
renegotiate such provision in good faith. In the event that the parties cannot
reach a mutually agreeable and enforceable replacement for such provision, then
(i) such provision shall be excluded from this Agreement, (ii) the
balance of this Agreement shall be interpreted as if such provision were so excluded
and (iii) the balance of this Agreement shall be enforceable in accordance
with its terms.  This Agreement and all
acts and transactions pursuant hereto and the rights and obligations of the
parties hereto shall be governed, construed and interpreted in accordance with
the laws of the State of California, without giving effect to principles of
conflicts of law.

 

6.5          Construction.  This Agreement is the result of negotiations
between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement shall be deemed to be the product
of all of the parties hereto, and no ambiguity shall be construed in favor of
or against any one of the parties hereto.

 

6.6          Notices.  Any notice to be given under the terms of the
Plan shall be addressed to the Company in care of its principal office, and any
notice to be given to the Participant shall be addressed to such Participant at
the address maintained by the Company for such person or at such other address
as the Participant may specify in writing to the Company.

 

6.7          Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall he deemed an original and all of which
together shall constitute one instrument.

 

6.8          U.S. Tax Consequences.  Upon vesting of Shares, Participant will
include in taxable income the difference between the fair market value of the
vesting Shares, as determined on the date of their vesting, and the price paid
for the Shares.  This will be treated as
ordinary income by Participant and will be subject to withholding by the
Company when required by applicable law. 
In the absence of an Election (defined below), the Company shall
withhold a number of vesting Shares with a fair market value (determined on the
date of their vesting) equal to the minimum amount the Company is required to
withhold for income and employment taxes. If Participant makes an Election,
then Participant must, prior to making the Election, pay in cash (or check) to
the Company an amount equal to the amount the Company is required to withhold
for income and employment taxes.

 

7.             Section 83(b) Election.  Participant hereby acknowledges that he or
she has been informed that, with respect to the purchase of the Shares, an
election may be filed by the Participant with the Internal Revenue Service,
within 30 days of the purchase of the Shares, electing pursuant to Section 83(b) of
the Code to be taxed currently on any difference between the purchase price of
the Shares and their Fair Market Value on the date of purchase (the “Election”).  Making the Election will result in
recognition of taxable income to the Participant on the date of purchase,
measured by the excess, if any, of the Fair Market Value of the Shares over the
purchase price for the Shares.  Absent
such an Election, taxable income will be measured and recognized by Participant
at the time or times on which the Company’s Repurchase Right lapses.  Participant is strongly encouraged to seek
the advice of his or her own tax consultants in connection with the purchase of
the Shares and the advisability of filing of the Election.  PARTICIPANT ACKNOWLEDGES THAT IT IS SOLELY
PARTICIPANT’S RESPONSIBILITY, AND NOT THE COMPANY’S RESPONSIBILITY, TO TIMELY
FILE THE ELECTION UNDER SECTION 83(b) OF THE CODE, EVEN IF
PARTICIPANT REQUESTS THE COMPANY, OR ITS REPRESENTATIVE, TO MAKE THIS FILING ON
PARTICIPANT’S BEHALF.

 

4

 

The parties have executed
this Agreement as of the date first set forth above.

 

	
   

  	
  NEXSAN CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
  RECIPIENT:

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Please Print Name

  	
   

  
					

 

5

 

RECEIPT

 

Nexsan Corporation. hereby acknowledges receipt of
(check as applicable):

 

o A check in the amount of $

 

o The cancellation of indebtedness in the
amount of $

 

given by
                                          
as consideration for Certificate No. -                
for
                                
shares of Common Stock of Nexsan Corporation

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NEXSAN
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
   

  

 

1

 

RECEIPT AND
CONSENT

 

The undersigned Participant hereby acknowledges
receipt of a photocopy of Certificate No. -                
for                                 
shares of Common Stock of Nexsan Corporation (the “Company”).

 

The undersigned further acknowledges that the
Secretary of the Company, or his or her designee, is acting as escrow holder
pursuant to the Restricted Stock Agreement that Participant has previously
entered into with the Company. As escrow holder, the Secretary of the Company,
or his or her designee, holds the original of the aforementioned certificate
issued in the undersigned’s name.  To
facilitate any transfer of Shares to the Company pursuant to the Restricted
Stock Agreement, Participant has executed the attached Assignment Separate from
Certificate.

 

Dated:
                                          ,
20     

 

	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Please Print Name

  	
   

  	
   

  
				

 

2

 

STOCK POWER AND ASSIGNMENT

SEPARATE FROM STOCK CERTIFICATE

 

FOR VALUE RECEIVED and pursuant to that certain
Restricted Stock Agreement dated as of
                                    ,
        , [COMPLETE AT THE TIME OF PURCHASE] (the “Agreement”), the undersigned
Participant hereby sells, assigns and transfers unto
                                                      ,
                    
shares of the Common Stock $0.001, par
value per share, of Nexsan Corporation, a Delaware  corporation (the “Company”), standing in the
undersigned’s name on the books of the Company represented by Certificate
No(s). 
            
[COMPLETE AT THE TIME OF
PURCHASE] delivered herewith, and does hereby irrevocably
constitute and appoint the Secretary of the Company as the undersigned’s
attorney-in-fact, with full power of substitution, to transfer said stock on
the books of the Company.  THIS
ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND ANY
EXHIBITS THERETO.

 

Dated:
                                  ,
       

 

	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Please
  Print Name)

  

 

Instructions
to Participant:  Please do not fill in any blanks other than
the signature line.  The purpose of this
document is to enable the Company and/or its assignee(s) to acquire the
shares upon exercise of its “Repurchase Right” set forth in the Agreement
without requiring additional action by the Participant.

 

3

 

 

 

NEXSAN
CORPORATION

2010 EQUITY
INCENTIVE PLAN

NOTICE OF
STOCK BONUS AWARD

GRANT NUMBER:            

 

Unless otherwise defined
herein, the terms defined in the Nexsan Corporation  (the
“Company”) 2010 Equity Incentive Plan
(the “Plan”) shall have the same meanings
in this Notice of Stock Bonus Award (the “Notice”).

 

	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  

 

You
(“Participant”) have been granted an
award of Shares under the Plan subject to the terms and conditions of the Plan,
this Notice, and the attached Stock Bonus Award Agreement (the “Stock Bonus Agreement”) to the Plan.

 

	
   

  	
   

  	
   

  
	
   

  	
  Number
  of Shares:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date
  of Grant:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Vesting
  Commencement Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Expiration
  Date:

  	
  The
  date on which all the Shares granted hereunder become vested, with earlier
  expiration upon the Termination Date

  
	
   

  	
   

  	
   

  
	
   

  	
  Vesting
  Schedule:

  	
  Subject
  to the limitations set forth in this Notice, the Plan and the Stock Bonus
  Agreement, the Shares will vest in accordance with the following schedule: [INSERT VESTING SCHEDULE]

  

 

You
understand that your employment or consulting relationship or service with the
Company is for an unspecified duration, can be terminated at any time (i.e., is
“at-will”), and that nothing in this Notice, the Stock Bonus Agreement or the
Plan changes the at-will nature of that relationship.  You acknowledge that the vesting of the
Shares pursuant to this Notice is earned only by continuing service as an
Employee, Director or Consultant of the Company (to the vesting applies).  Participant also understands that this Notice
is subject to the terms and conditions of both the Stock Bonus Agreement and
the Plan, both of which are incorporated herein by reference.  Participant has read both the Stock Bonus
Agreement and the Plan.

 

	
  PARTICIPANT

  	
   

  	
  NEXSAN
  CORPORATION

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
  Its:

  	
   

  
						

 

 

NEXSAN CORPORATION

STOCK BONUS AWARD AGREEMENT

NEXSAN CORPORATION 2010 EQUITY INCENTIVE PLAN

 

Unless otherwise defined herein,
the terms defined in the Nexsan Corporation  (the “Company”) 2010 Equity Incentive Plan
(the “Plan”) shall have the same
defined meanings in this Stock Bonus Agreement (the “Agreement”).

 

You have been granted a Stock Bonus
Award (“Stock Bonus Award”) subject
to the terms, restrictions and conditions of the Plan, the Notice of Stock
Bonus Award (the “Notice”) and this Agreement.

 

1.             Issuance.  Stock Bonus Awards shall be issued in Shares,
and the Company’s transfer agent shall record ownership of such Shares in
Participant’s name as soon as reasonably practicable.

 

2.             Stockholder Rights.  Participant shall have no right to dividends
or to vote Shares until Participant is recorded as the holder of such Shares on
the stock records of the Company and its transfer agent.

 

3.             No-Transfer.  Unvested Shares, and unvested Stock Bonus
Awards, and any interest in either shall not be sold, assigned, transferred,
pledged, hypothecated, or otherwise disposed of by Participant or any person
whose interest derives from Participant’s interest.  “Unvested Shares”
are Shares that have not yet vested pursuant to the terms of the vesting
schedule set forth in the Notice.

 

4.             Termination.  Upon Participant’s Termination
for any reason, all Unvested Shares shall immediately be forfeited to the
Company, and all rights of Participant to such Unvested Shares shall
immediately terminate as of Participant’s Termination Date.  In case of any dispute as to whether
Termination has occurred, the Committee shall have sole discretion to determine
whether such Termination has occurred and the effective date of such Termination.

 

5.             U.S. Tax Consequences.  Upon vesting of Shares, Participant will
include in taxable income the difference between the fair market value of the
vesting Shares, as determined on the date of their vesting, and the price paid
for the Shares.  This will be treated as
ordinary income by Participant and will be subject to withholding by the
Company when required by applicable law. 
Before any Shares subject to this Agreement are issued the Company shall
withhold a number of Shares with a fair market value (determined on the date
the Shares are issued) equal to the minimum amount the Company is required to
withhold for income and employment taxes. 
Upon disposition of the Shares, any subsequent increase or decrease in
value will be treated as short-term or long-term capital gain or loss,
depending on whether the Shares are held for more than one year from the date
of settlement.

 

6.             Acknowledgement.  The Company and Participant agree that the
Stock Bonus Award is granted under and governed by the Notice, this Agreement
and by the provisions of the Plan (incorporated herein by reference).  Participant: (i) acknowledges receipt of
a copy of the Plan and the Plan prospectus, (ii) represents that
Participant has carefully read and is familiar with their provisions, and (iii) hereby
accepts the Stock Bonus Award subject to all of the terms and conditions set
forth herein and those set forth in the Plan, this Agreement and the Notice.

 

7.             Entire Agreement; Enforcement of Rights.  This Agreement, the Plan and the Notice
constitute the entire agreement and understanding of the parties relating to
the subject matter herein and supersede all prior discussions between them. Any
prior agreements, commitments or negotiations concerning the purchase of the
Shares hereunder are superseded. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be
effective unless in writing and signed by the parties to this Agreement. The
failure by either party to enforce any rights under this Agreement shall not be
construed as a waiver of any rights of such party.

 

1

 

8.             Compliance with Laws and Regulations.  The issuance of Shares will be subject to and
conditioned upon compliance by the Company and Participant with all applicable
state and federal laws and regulations and with all applicable requirements of
any stock exchange or automated quotation system on which the Company’s Common
Stock may be listed or quoted at the time of such issuance or transfer.

 

9.             Governing Law; Severability.  If one or more provisions of this Agreement
are held to be unenforceable under applicable law, the parties agree to
renegotiate such provision in good faith. In the event that the parties cannot
reach a mutually agreeable and enforceable replacement for such provision, then
(i) such provision shall be excluded from this Agreement, (ii) the
balance of this Agreement shall be interpreted as if such provision were so
excluded and (iii) the balance of this Agreement shall be enforceable in
accordance with its terms.  This
Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted
in accordance with the laws of the State of California, without giving effect
to principles of conflicts of law.

 

10.          No Rights as Employee, Director or Consultant.  Nothing in this Agreement shall affect in any
manner whatsoever the right or power of the Company, or a Parent or Subsidiary
of the Company, to terminate Purchaser’s service, for any reason, with or without cause.

 

By your signature and the signature of the Company’s representative on
the Notice, Participant and the Company agree that this Stock Bonus Award is
granted under and governed by the terms and conditions of the Plan, the Notice
and this Agreement.  Participant has
reviewed the Plan, the Notice and this Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Agreement,
and fully understands all provisions of the Plan, the Notice and this
Agreement.  Participant hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the
Committee upon any questions relating to the Plan, the Notice and this
Agreement.  Participant further agrees to
notify the Company upon any change in Participant’s residence address.

 

2

 

NEXSAN
CORPORATION

2010 EQUITY
INCENTIVE PLAN

NOTICE OF
PERFORMANCE SHARES AWARD

GRANT NUMBER:            

 

Unless otherwise defined
herein, the terms defined in the Nexsan Corporation  (the
“Company”) 2010 Equity Incentive Plan
(the “Plan”) shall have the same
meanings in this Notice of Performance Shares Award (the “Notice”).

 

	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  

 

You
(“Participant”) have been granted an
award of Performance Shares under the Plan subject to the terms and conditions
of the Plan, this Notice and  the
attached Performance Shares Award Agreement (hereinafter “Performance
Shares Agreement”).

 

	
   

  	
  Number
  of Shares:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date
  of Grant:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Vesting
  Commencement Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Expiration
  Date:

  	
  The
  date on which all the Shares granted hereunder become vested, with earlier
  expiration upon the Termination Date

  
	
   

  	
   

  	
   

  
	
   

  	
  Vesting
  Schedule:

  	
  Subject
  to the limitations set forth in this Notice, the Plan and the Performance
  Shares Agreement, the Shares will vest in accordance with the following
  schedule: [INSERT VESTING SCHEDULE]

  

 

You
understand that your employment or consulting relationship or service with the
Company is for an unspecified duration, can be terminated at any time (i.e., is
“at-will”), and that nothing in this Notice, the Performance Shares Agreement
or the Plan changes the at-will nature of that relationship.  You acknowledge that the vesting pursuant to
this Notice is earned only upon the applicable certification of attainment of
the requisite Performance Factors enumerated above while still in service as an
Employee, Director or Consultant of the Company. You also understand that this
Notice is subject to the terms and conditions of both the Performance Shares
Award Agreement and the Plan, both of which are incorporated herein by
reference.  Participant has read both the
Performance Shares Agreement and the Plan.

 

	
  PARTICIPANT

  	
   

  	
  NEXSAN
  CORPORATION

  
	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  By:

  	
   

  

 

 

NEXSAN CORPORATION

PERFORMANCE SHARES AGREEMENT TO THE

NEXSAN CORPORATION 2010 EQUITY INCENTIVE PLAN

 

Unless otherwise defined herein,
the terms defined in the Nexsan Corporation  (the “Company”) 2010 Equity Incentive Plan
(the “Plan”) shall have the same
defined meanings in this Performance Shares Agreement (the “Agreement”).

 

You have been granted a Performance
Shares Award (“Performance Shares Award”)
subject to the terms, restrictions and conditions of the Plan, the Notice of
Performance Shares Award (“Notice”)
and this Agreement.

 

1.             Settlement.  Performance Shares shall be settled in Shares
and the Company’s transfer agent shall record ownership of such Shares in
Participant’s name as soon as reasonably practicable after achievement of the
Performance Factors enumerated in the Notice.

 

2.             Stockholder Rights.  Participant shall have no right to dividends
or to vote Shares until Participant is recorded as the holder of such Shares on
the stock records of the Company and its transfer agent.

 

3.             No-Transfer.  Participant’s interest in this Performance
Shares Award shall not be sold, assigned, transferred, pledged, hypothecated,
or otherwise disposed of.

 

4.             Termination.  Upon Participant’s Termination
for any reason, all of Participant’s rights under the Plan, this Agreement and
the Notice in respect of this Award shall immediately terminate.  In case of any dispute as to whether
Termination has occurred, the Committee shall have sole discretion to determine
whether such Termination has occurred and the effective date of such
Termination.

 

5.             U.S. Tax Consequences.  Participant acknowledges that there will be
tax consequences upon issuance of the Shares, and Participant should consult a
tax adviser regarding Participant’s tax obligations prior to such settlement or
disposition.  Upon vesting of the Shares,
Participant will include in income the fair market value of the Shares.  The included amount will be treated as
ordinary income by Participant and will be subject to withholding by the
Company when required by applicable law. 
Before any Shares subject to this Agreement are issued the Company shall
withhold a number of Shares with a fair market value (determined on the date
the Shares are issued) equal to the minimum amount the Company is required to
withhold for income and employment taxes. 
Upon disposition of the Shares, any subsequent increase or decrease in
value will be treated as short-term or long-term capital gain or loss, depending
on whether the Shares are held for more than one year from the date of
issuance.

 

6.             Acknowledgement.  The Company and Participant agree that the
Performance Shares Award is granted under and governed by the Notice, this
Agreement and by the provisions of the Plan (incorporated herein by reference).  Participant: (i) acknowledges receipt of
a copy of the Plan and the Plan prospectus, (ii) represents that
Participant has carefully read and is familiar with their provisions, and (iii) hereby
accepts the Performance Shares Award subject to all of the terms and conditions
set forth herein and those set forth in the Plan, this Agreement and the
Notice.

 

7.             Entire Agreement; Enforcement of Rights.  This Agreement, the Plan and the Notice
constitute the entire agreement and understanding of the parties relating to
the subject matter herein and supersede all prior discussions between them. Any
prior agreements, commitments or negotiations concerning the purchase of the
Shares hereunder are superseded. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be
effective unless in writing and signed by the parties to this Agreement. The
failure by either party to enforce any rights under this Agreement shall not be
construed as a waiver of any rights of such party.

 

 

8.             Compliance with Laws and Regulations.  The issuance of Shares will be subject to and
conditioned upon compliance by the Company and Participant with all applicable
state and federal laws and regulations and with all applicable requirements of
any stock exchange or automated quotation system on which the Company’s Common
Stock may be listed or quoted at the time of such issuance or transfer.

 

9.             Governing Law; Severability.  If one or more provisions of this Agreement
are held to be unenforceable under applicable law, the parties agree to
renegotiate such provision in good faith. In the event that the parties cannot
reach a mutually agreeable and enforceable replacement for such provision, then
(i) such provision shall be excluded from this Agreement, (ii) the
balance of this Agreement shall be interpreted as if such provision were so
excluded and (iii) the balance of this Agreement shall be enforceable in
accordance with its terms.  This
Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted
in accordance with the laws of the State of California, without giving effect
to principles of conflicts of law.

 

10.          No Rights as Employee, Director or Consultant.  Nothing in this Agreement shall affect in any
manner whatsoever the right or power of the Company, or a Parent or Subsidiary
of the Company, to terminate Purchaser’s service, for any reason, with or without cause.

 

By your signature and the signature of the Company’s representative on
the Notice, Participant and the Company agree that this Performance Shares
Award is granted under and governed by the terms and conditions of the Plan,
the Notice and this Agreement. 
Participant has reviewed the Plan, the Notice and this Agreement in
their entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Agreement, and fully understands all provisions of the Plan, the
Notice and this Agreement.  Participant
hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Committee upon any questions relating to the Plan, the
Notice and this Agreement.  Participant
further agrees to notify the Company upon any change in Participant’s residence
address.

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