Document:

EXHIBIT 10.21

 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE
STATE SECURITIES LAWS, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER THE ACT AND ANY
APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO RULE 144 OR AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS.

 

WARRANT TO PURCHASE STOCK

 

	
  Corporation:

  	
   

  	
  NEXSAN
  CORPORATION, a Delaware corporation

  
	
  Number
  of Shares:

  	
   

  	
  48,872

  
	
  Class of
  Stock:

  	
   

  	
  Series A
  Preferred Stock

  
	
  Initial
  Exercise Price:

  	
   

  	
  $0.61385
  per share

  
	
  Issue
  Date:

  	
   

  	
  October 1,
  2006 if the Sale (as defined in the Credit Agreement dated as of
  March 31, 2004 between Nexsan Technologies Incorporated and Comerica
  Bank, as amended) has not been consummated (Subject to Section 4.1)

  
	
  Expiration
  Date:

  	
   

  	
  Seven
  Years from the Issue Date (Subject to Section 4.1)

  

 

THIS
WARRANT TO PURCHASE STOCK (“WARRANT”) CERTIFIES THAT, for good and valuable
consideration, the receipt of which is hereby acknowledged, COMERICA BANK, a
Michigan banking corporation, or its assignee (“Holder”), is entitled to
purchase the number of fully paid and nonassessable shares of the class of securities
(the “Shares”) of NEXSAN CORPORATION (the “Company”) at the initial exercise
price per Share (the “Warrant Price”) all as set forth above and as adjusted
pursuant to this Warrant, subject to the provisions and upon the terms and
conditions set forth in this Warrant.

 

ARTICLE
1

EXERCISE

 

1.1           Method of Exercise. 
Holder may exercise this Warrant by delivering this Warrant and a duly
executed Notice of Exercise in substantially the form attached as Appendix 1 to
the principal office of the Company.  Holder
shall also deliver to the Company a check or wire for the aggregate Warrant
Price for the Shares being purchased.

 

1.2           Delivery of Certificate and New Warrant. 
Within 45 days after Holder exercises this Warrant, the Company shall
deliver to Holder certificates for the Shares acquired and, if this Warrant has
not been fully exercised and has not expired, a new warrant representing the
Shares not so acquired.

 

1.3           Replacement of Warrants. 
In the case of loss, theft or destruction of this Warrant, on delivery
of an indemnity agreement reasonably satisfactory in form and amount to the
Company or, in the case of mutilation, on surrender and cancellation of this
Warrant, the 

 

 

Company at its expense shall execute and deliver, in
lieu of this Warrant, a new warrant of like tenor.

 

1.4           Acquisition of the Company.

 

1.4.1        “Acquisition.”  For the purpose of this Warrant, “Acquisition”
means (a) any sale, license, or other disposition of all or substantially
all of the assets (including intellectual property) of the Company, or (b) any
reorganization, consolidation, merger or sale of the voting securities of the
Company or any other transaction where the holders of the Company’s securities
before the transaction beneficially own less than 50% of the outstanding voting
securities of the surviving entity after the transaction.

 

1.4.2        Assumption of Warrant. 
Upon the closing of any Acquisition (other than an Acquisition in which
the consideration received by the Company’s stockholders consists solely of
cash), and as a condition precedent thereto, the successor or surviving entity
shall assume the obligations of this Warrant, and this Warrant shall be
exercisable for the same securities, cash, and property as would be payable for
the Shares issuable upon exercise of the unexercised portion of this Warrant as
if such Shares were outstanding on the record date for the Acquisition and
subsequent closing.  The Warrant Price
shall be adjusted accordingly, and the Warrant Price and number and class of
Shares shall continue to be subject to adjustment from time to time in
accordance with the provisions hereof.

 

ARTICLE
2

ADJUSTMENTS TO THE SHARES

 

2.1           Stock Dividends, Splits, Etc. 
If the Company declares or pays a dividend on its common stock payable
in common stock, or other securities, or subdivides the outstanding common
stock into a greater amount of common stock, then upon exercise of this
Warrant, for each Share acquired, Holder shall receive, without cost to Holder,
the total number and kind of securities to which Holder would have been
entitled had Holder owned the Shares of record as of the date the dividend or
subdivision occurred.

 

2.2           Reclassification, Exchange or
Substitution.  Upon any reclassification, exchange,
substitution, or other event that results in a change of the number and/or
class of the securities issuable upon exercise or conversion of this Warrant,
Holder shall be entitled to receive, upon exercise or conversion of this
Warrant, the number and kind of securities and property that Holder would have received
for the Shares if this Warrant had been exercised immediately before such
reclassification, exchange, substitution, or other event.  Such an event shall include any automatic
conversion of the outstanding or issuable securities of the Company of the same
class or series as the Shares to common stock pursuant to the terms of the
Company’s Certificate of Incorporation upon the closing of a registered public
offering of the Company’s common stock. 
The Company or its successor shall promptly issue to Holder a new
warrant for such new securities or other property.  The new warrant shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Article 2 including, without limitation, adjustments
to the Warrant Price and to the number of securities or 

 

2

 

property issuable upon exercise of the new
warrant.  The provisions of this Section 2.2
shall similarly apply to successive reclassifications, exchanges,
substitutions, or other events.

 

2.3           Adjustments for Combinations, Etc. 
If the outstanding Shares are combined or consolidated, by
reclassification, reverse split or otherwise, into a lesser Number of Shares,
the Warrant Price shall be proportionately increased.  If the outstanding Shares are split or
multiplied, by reclassification or otherwise, into a greater Number of Shares,
the Warrant Price shall be proportionately decreased.

 

2.4           Adjustments for Diluting Issuances. 
The Warrant Price and the Number of Shares issuable upon exercise of
this Warrant shall be subject to adjustment, from time to time, in the manner
set forth on Exhibit A, if attached, in the event of Diluting
Issuances (as defined on Exhibit A).

 

2.5           No Impairment. 
The Company shall not, by amendment of its Certificate of Incorporation
or through a reorganization, transfer of assets, consolidation, merger,
dissolution, issue, or sale of securities or any other voluntary action, avoid
or seek to avoid the observance or performance of any of the terms to be
observed or performed under this Warrant by the Company, but shall at all times
in good faith assist in carrying out all the provisions of this Article 2
and in taking all such action as may be necessary or appropriate to protect
Holder’s rights under this Article 2 against impairment.

 

2.6           Certificate as to Adjustments. 
Upon each adjustment of the Warrant Price, the Company at its expense
shall promptly compute such adjustment, and furnish Holder with a certificate
signed by its Chief Financial Officer setting forth such adjustment and the
facts upon which such adjustment is based. 
The Company shall, upon written request, furnish Holder a certificate
setting forth the Warrant Price in effect upon the date thereof and the series
of adjustments leading to such Warrant Price.

 

2.7           Fractional Shares. 
No fractional Shares shall be issuable upon exercise of this Warrant and
the Number of Shares to be issued shall be rounded down to the nearest whole
Share.  If a fractional share interest
arises upon any exercise of the Warrant, the Company shall eliminate such
fractional share interest by paying Holder an amount computed by multiplying
the fractional interest by the fair market value, as determined by the Company’s
Board of Directors, of a full Share.

 

ARTICLE
3

REPRESENTATIONS AND COVENANTS OF THE COMPANY

 

3.1           Representations and Warranties. 
The Company hereby represents and warrants to, and agrees with, the
Holder as follows;

 

3.1.1        The initial Warrant Price referenced on
the first page of this Warrant is not greater than the fair market value
of the Shares as of the date of this Warrant.

 

3.1.2        All Shares which may be issued upon the
exercise of the purchase right represented by this Warrant, and all securities,
if any, issuable upon conversion of the Shares, shall, upon issuance, be duly
authorized, validly issued, fully paid and 

 

3

 

nonassessable, and
free of any liens and encumbrances except for restrictions on transfer provided
for herein or under applicable federal and state securities laws.

 

3.1.3        The Company’s capitalization table
attached to this Warrant is true and complete as of the Issue Date.

 

3.2           Notice of Certain Events. 
If the Company proposes at any time (a) to declare any dividend or
distribution upon its stock, whether in cash, property, stock, or other
securities and whether or not a regular cash dividend; (b) to offer for
subscription pro rata to the holders of any class or series of its stock any
additional shares of stock of any class or series or other rights; (c) to
effect any reclassification or recapitalization of stock; or (d) to merge
or consolidate with or into any other corporation, or sell, lease, license, or
convey all or substantially all of its assets, or to liquidate, dissolve or
wind up, then, in connection with each such event, the Company shall give
Holder (1) at least 10 days prior written notice of the date on which a
record will be taken for such dividend, distribution, or subscription rights
and specifying the date on which the holders of stock will be entitled thereto)
or for determining rights to vote, if any, in respect of the matters referred
to in (a) and (b) above; and (2) in the case of the matters
referred to in (c) and (d) above at least 10 days prior written
notice of the date when the same will take place (and specifying the date on
which the holders of stock will be entitled to exchange their stock for
securities or other property deliverable upon the occurrence of such event).

 

3.3           Information Rights. 
So long as the Holder holds this Warrant and/or any of the Shares, the
Company shall deliver to the Holder (a) promptly after mailing, copies of
all communiqués to the shareholders of the Company, (b) within one hundred
twenty (120) days after the end of each fiscal year of the Company, the annual
audited financial statements of the Company certified by independent public
accountants of recognized standing and (c) within forty-five (45) days
after the end of each of the first three quarters of each fiscal year, the
Company’s quarterly, unaudited financial statements.

 

3.4           Registration Under Securities Act of
1933, as amended.  The Company agrees that the Shares or, if the
Shares are convertible into common stock of the Company, such common stock,
shall be subject to the registration rights set forth on Exhibit B.

 

ARTICLE
4

MISCELLANEOUS

 

4.1           Term; Exercise Upon Expiration. 
This Warrant is exercisable in whole or in part, at any time and from
time to time on or after Octobers 1, 2006 if the Sale (as defined in the Credit
Agreement dated as of March 31, 2004 between Nexsan Technologies
Incorporated and Comerica Bank, as amended) has not been consummated (“Issue
Date”).  This Warrant expires on the
seventh anniversary of the Issue Date; provided, however, that if the Company
completes its initial public offering within the one-year period immediately
prior to the Expiration Date, the Expiration Date shall automatically be
extended until the first anniversary of the effective date of the Company’s
initial public offering.  The Company
shall give Holder written notice of Holder’s right to exercise this Warrant not
less than 90 days before the Expiration Date. 
If the notice is not so given, the Expiration Date shall automatically
be extended until 90 days after the date the Company delivers such notice to
Holder.

 

4

 

4.2           Legends.  This Warrant
and the Shares (and the securities issuable, directly or indirectly, upon
conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form;

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD,
PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF
UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO RULE 144
OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY
APPLICABLE STATE SECURITIES LAWS.

 

4.3           Compliance with Securities Laws on
Transfer.  This Warrant and the Shares issuable upon
exercise of this Warrant (and the securities issuable, directly or indirectly,
upon conversion of the Shares, if any) may not be transferred or assigned in
whole or in part without compliance with applicable federal and state
securities laws by the transferor and the transferee.

 

4.4           Transfer Procedure. 
Subject to the provisions of Section 4.3, Holder may transfer all
or part of this Warrant or the Shares issuable upon exercise of this Warrant
(or the securities issuable, directly or indirectly, upon conversion of the
Shares, if any) by giving the Company notice of the portion of this Warrant
being transferred setting forth the name, address and taxpayer identification
number of the transferee and surrendering this Warrant to the Company for
reissuance to the transferee(s) (and Holder, if applicable); provided, however, that Holder may transfer all or part of
this Warrant to its affiliates, including, without limitation, Comerica Incorporated,
at any time without notice or the delivery of any other instrument to the
Company, and such affiliate shall then be entitled to all the rights of Holder
under this Warrant and any related agreements, and the Company shall cooperate
fully in ensuring that any stock issued upon exercise of this Warrant is issued
in the name of the affiliate that exercises this Warrant.  The terms and conditions of this Warrant
shall inure to the benefit of, and be binding upon, the Company and the holders
hereof and their respective permitted successors and assigns.  Unless the Company is filing financial
information with the SEC pursuant to the Securities Exchange Act of 1934, the
Company shall have the right to refuse to transfer any portion of this Warrant
to any person who directly competes with the Company.

 

4.5           Notices.  All notices
and other communications from the Company to the Holder, or vice versa, shall
be deemed delivered and effective when given personally or mailed by
first-class registered or certified mail, postage prepaid, at such address as
may have been furnished to the Company or the Holder, as the case may be, in
writing by the Company or such Holder from time to time.  All notices to the Holder shall be addressed
as follows:

 

Comerica
Bank c/o Comerica Incorporated

Attn:
Warrant Administrator

500
Woodward Avenue, 32nd Floor, MC 3379

Detroit,
MI 48226

 

5

 

All notices to the Company shall be addressed as
follows:

 

Nexsan
Corporation

21700
Oxnard Street, Suite 1850

Woodland
Hills, CA 91367

 

4.6           Amendments.  This Warrant
and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.

 

4.7           Attorneys’ Fees. 
In the event of any dispute between the parties concerning the terms and
provisions of this Warrant, the party prevailing in such dispute shall be
entitled to collect from the other party all costs incurred in such dispute,
including reasonable attorneys’ fees.

 

4.8           Governing Law. 
This Warrant shall be governed by and construed in accordance with the
laws of the State of California, without giving effect to its principles
regarding conflicts of law.

 

4.9           Confidentiality. 
The Company hereby agrees to keep the terms and conditions of this
Warrant confidential.  Notwithstanding
the foregoing confidentiality obligation, the Company may disclose information
relating to this Warrant as required by law, rule, regulation, court order or
other legal authority, provided that (i) the Company has given Holder at
least ten (10) days’ notice of such required disclosure, and (ii) the
Company only discloses information that is required, in the opinion of counsel
reasonably satisfactory to Holder, to be disclosed.

 

[Remainder of Page Intentionally Left Blank]

 

6

 

	
   

  	
  NEXSAN
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Dale J. Bartos

  
	
   

  	
   

  
	
   

  	
  Name:
  

  	
   Dale
  J Bartos

  
	
   

  	
   

  
	
   

  	
  Title:
  

  	
  CFO,
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Gene Spies

  
	
   

  	
   

  
	
   

  	
  Name:
  

  	
   Gene
  Spies

  
	
   

  	
   

  
	
   

  	
  Title:
  

  	
  Assistant
  Secretary

  
								

 

7

 

APPENDIX 1

 

NOTICE OF EXERCISE

 

1.             The undersigned hereby elects to purchase                        
shares of the                       
stock of NEXSAN CORPORATION pursuant to the
terms of the attached Warrant, and tenders herewith payment of the purchase
price of such shares in full.

 

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

 

Comerica
Bank

Attn:
Warrant Administrator

500
Woodward Avenue, 32nd Floor, MC 3379

Detroit,
MI 48226

 

3.             The undersigned represents it is acquiring the shares
solely for its own account and not as a nominee for any other party and not
with a view toward the resale or distribution thereof except in compliance with
applicable securities laws.

 

COMERICA
BANK or Assignee

 

 

	
   

  	
   

  
	
  (Signature)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Name
  and Title)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Date)

  	
   

  

 

 

EXHIBIT A

 

Anti-Dilution Provisions

 

In the
event of the issuance (a “Diluting Issuance”) by the Company, after the Issue
Date of this Warrant, of securities at a price per share less than the Warrant
Price, then the number of shares of common stock issuable upon conversion of
the Shares shall be adjusted in accordance with those provisions (the “Provisions”)
of the Company’s Certificate of Incorporation which apply to Diluting Issuances
The Provisions shall not be deemed in any manner to limit or restrict the
applicability of the Provisions to the Shares. 
Any language in the Provisions that in any manner limits or restricts
the applicability of the Provisions to the Shares shall not apply to this
Warrant.

 

Under
no circumstances shall the aggregate Warrant Price payable by the Holder upon
exercise of the Warrant increase as a result of any adjustment arising from a
Diluting Issuance.

 

 

EXHIBIT B

 

Registration Rights

 

The
Shares (if common stock), or the common stock issuable upon conversion of the
Shares, shall be deemed “Series A Preferred Registrable Shares” for
purposes of and entitle to “piggy back” registration rights in accordance with
the terms of the following agreement (the “Agreement”) between the Company and
its investor(s):

 

Second
Amended and Restated Registration Rights Agreement dated October 27, 2003

 

The
Company agrees that no amendments will be made to the Agreement, which would
have an adverse impact on Holder’s registration rights thereunder without the
consent of Holder, which consent shall not be unreasonably withheld.  By acceptance of the Warrant to which this Exhibit B
is attached, Holder shall be deemed to be a party to the Agreement solely for
the purpose of the above-mentioned registration rights.

 

If no
Agreement exists, then the Company and the Holder shall enter into Holder’s
standard form of Registration Rights Agreement as in effect on the Issue Date
of the Warrant.

 

 

NEXSAN CORPORATION

 

March 21, 2008

 

Comerica
Incorporated

Attn: Warrant Administrator
 500 Woodward Avenue, 32nd
Floor

Detroit, Michigan 48226

 

Dear
Warrant Administrator:

 

Reference
is made to the following warrants initially issued to Comerica Bank by Nexsan
Corporation, a Delaware corporation (“Nexsan”):  (i) a Warrant issued on April 22,
2005 for the purchase of 50,000 shares of Series A Preferred Stock of
Nexsan (the “April Warrant”);  and (ii) a Warrant issued on October 1,
2006 for the purchase of 48,872 shares of Series A Preferred Stock of
Nexsan (“October Warrant” together with the April Warrant,
collectively, the “Warrants”).  The Warrants were subsequently assigned by
Comerica Bank to Comerica Incorporated.

 

As
you have been previously informed, Nexsan is contemplating an initial public
offering of its common stock (“IPO”) and intends to file a registration statement
with the U.S. Securities and Exchange Commission (“SEC”). The proposed IPO has not yet been publicly announced and Nexsan is
currently in what the SEC refers to as the “quiet period.” Any publicity about
our planned IPO could jeopardize the IPO’s timing and success. Therefore,
please treat this information as confidential.

 

In
connection with the
proposed IPO, and as an inducement for Nexsan and the representatives of the
investment banks that are underwriting the IPO to continue their efforts in
connection with the proposed IPO, the underwriters are requesting that you, as
holder of the Warrants, acknowledge and confirm your consent to the following
matters (collectively, the “Transactions”),  which (except item 3 below) were effected in
connection with (i) the issuance and sale of Series C Preferred Stock
of Nexsan in March 2007 and (ii) the issuance of Common Stock of
Nexsan and exchangeable shares of one of Nexsan’s Canadian subsidiaries in November 2007:

 

1.   The amendment
and restatement of the certificate of incorporation of Nexsan which was filed
with Delaware on March 29, 2007 as the Fifth Amended and Restated
Certificate of Incorporation, as amended by the Amendment to the Fifth Amended
and Restated Certificate of Incorporation filed on November 26, 2007 with
Delaware (copies of the foregoing documents are attached hereto as Exhibit A (as amended, the “Certificate of Incorporation”));

 

2.     The amendment and restatement of the Second
Amended and Restated Registration Rights Agreement, dated October 27,
2003, which was entered into as the Third Amended and Restated Registration
Rights Agreement, dated March 29, 2007, as amended by the Amendment to the
Third Amended and Restated Registration Rights

 

 

Agreement
dated November 14, 2007 (copies of the foregoing documents are attached
hereto as Exhibit B); and

 

3.     The matters described in the Written Consent
and Waiver of the Stockholders of Nexsan which the stockholders of Nexsan have
approved, a copy of which is attached hereto as Exhibit C,
which includes a further amendment to the Third Amended and Restated
Registration Rights Agreement dated March 29, 2007, as amended.

 

Further,
the underwriters are requesting that you, as the holder of the Warrants, agree
to the automatic termination of Section 2.4 (Adjustments for Diluting
Issuances) of each of the Warrants upon consummation of the IPO.

 

Lastly,
at the request of the underwriters, in order to eliminate ambiguity and conform
the definitions in the Warrants to those in the Certificate of Incorporation,
please confirm that from and after March 29, 2007 (the filing of the
Certificate of Incorporation (as defined above) the following shall apply to
the Warrants (referred to herein as “Definition Amendment”):

 

1.     The term “Conversion Price” as used in Exhibit A to the April Warrant
means the “Series A Conversion Price” as defined in the Certificate of
Incorporation (as defined above) and any adjustment pursuant to Section 2.4
(Adjustments for Diluting Issuances) of the April Warrant shall be applied
to the April Warrant in the same manner and extent as applied to the Series A
Preferred Stock under Section 4.3.5.4 of the Certificate of Incorporation;

 

2.     The term “Provisions” as used in Exhibit A to the October Warrant
means those provisions of the Certificate of Incorporation which apply to the
adjustment of the Series A Conversion Price, and any adjustment pursuant
to Section 2.4 (Adjustments for Diluting Issuances) of the October Warrant
shall be applied to the October Warrant in the same manner and extent as
applied to the Series A Preferred Stock under Section 4.3.5.4 of the
Certificate of Incorporation;

 

3.     Under the Certificate of Incorporation, the shares of common stock
issuable upon conversion of the Series C Preferred Stock or pursuant to Section 3.6
of the Series C Purchase Agreement referred to therein are deemed “Series A
Excluded Stock.” Accordingly, the issuance and sale of the Series C
Preferred Stock of Nexsan in March, 2007 shall be deemed “Series A
Excluded Stock” for purposes of the Warrants;

 

4.     By letter agreement among certain stockholders of Nexsan, the shares of
Series A Preferred Stock or other equity securities of Nexsan (the “Terrapin Conversion Securities”)  issuable
upon conversion of that certain 8% Secured Subordinated Convertible Promissory
Note, dated November 2, 2006 (the “Terrapin
Note”),  issued by Nexsan in favor of
Terrapin Partners Nexsan Partnership LP constitute Series A Excluded Stock
and Series C Excluded Stock under the Certificate of Incorporation.
Accordingly, for all purposes of the Warrants, the Terrapin Note and the
Terrapin Conversion Securities shall be deemed “Series A Excluded Stock”;
and

 

2

 

5.     For all purposes of the Warrants, the sale
and issuance of Common Stock of Nexsan by Nexsan in the IPO shall be deemed “Series A
Excluded Stock.”

 

Please
acknowledge and confirm your consent to the Transactions, Definition Amendment
and the automatic termination of Section 2.4 (Adjustments for Diluting
Issuances) of each of the Warrants upon consummation of the IPO (the “Termination of Section 2.4”) by signing and dating the enclosed copy of this
letter in the space provided below and returning the copy to the undersigned;
provided that, except for the Termination of Section 2.4, such
acknowledgement and confirmation shall not constitute the waiver of any of your
rights under the Warrants.

 

If
you have any questions, please feel free to contact me.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  NEXSAN
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Gene
  Spies

  
	
   

  	
   

  	
  Gene
  Spies, Chief Financial
  Officer

  

 

 

	
  ACKNOWLEDGED AND AGREED TO:

  	
   

  
	
   

  	
   

  
	
  COMERICA
  INCORPORATED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ LaReeda Rentie

  	
   

  
	
  Name:

  	
  LaReeda Rentie

  	
   

  
	
  Title:

  	
  First Level Officer

  	
   

  
	
   

  	
   

  
	
  Date: March 26, 2008

  	
   

  

 

3EXHIBIT 10.22

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE
EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS.  THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED OR UNLESS SOLD PURSUANT TO AN EXEMPTION UNDER SUCH ACT.

 

	
  Warrant Certificate Number WK-1

  	
   

  	
  Void after

  
	
   

  	
   

  	
  October 26, 2008

  

 

Original Issue Date:  October 27, 2003

 

Warrant to Purchase 995,479 Shares of Common Stock

 

WARRANT

of

NEXSAN CORPORATION

 

THIS
CERTIFIES THAT, for value received, Kelly Securities
Corporation, together with successors and permitted assigns (the “Holder”) is entitled to subscribe for and purchase 995,479 shares of Common Stock, par value $0.001 per
share (“Common Stock”) of Nexsan Corporation, a
Delaware corporation (the “Company”), subject to the following terms and conditions:

 

1.             Securities
Purchase Agreement.  This Warrant (“Warrant”) is issued pursuant to that certain letter
agreement, dated January 22, 2003, as amended.  The Warrant and other warrants issued
pursuant to the Agreement are collectively referred to as the “Warrants.”

 

2.             Exercise
of Warrant.  The terms and conditions
upon which this Warrant may be exercised, and the Common Stock covered hereby
may be purchased, are as follows:

 

2.1           Term.  Subject to the terms hereof, this Warrant may
be exercised at any time, or from time to time, in whole or in part (the “Exercise  Date”), after the
date hereof; provided, however, that in no
event may this Warrant be exercised later than 5:00 p.m. (New York City time)
on the close of business on October 26, 2008
(the “Expiration Date”).

 

2.2           Exercise
Price.  The exercise price per share
for the Common Stock shall be equal to $0.39667 (“Warrant Exercise Price”) subject to adjustment as set forth
below.

 

2.3           Method
of Exercise.

 

(a)           The
rights represented by this Warrant may be exercised by the Holder, in whole at
any time or from time to time in part, but not as to a fractional share of
Common Stock, by the surrender of this Warrant (properly endorsed) at the
office of the Company or such other 

 

1

 

address as it may designate by notice in writing to
the holder hereof at the address of such holder appearing on the books of the
Company, and as further provided below in this Section 2 by payment to the
Company of the Warrant Exercise Price in cash or by certified or official bank
check, for each share being purchased.

 

(b)           In
addition to the method of payment set forth in Section 2.3(a) and in
lieu of any cash payment required thereunder, this Warrant may be exercised at
any time and from time to time in full or in part by surrendering this Warrant
in the manner specified in Section 2.3(a) in exchange for the number
of shares of Common Stock equal to the product of (x) the number of shares
as to which this Warrant is being exercised multiplied by (y) a fraction,
the numerator of which is the Market Price (as defined below) of the Common
Stock for the trading day immediately preceding the date on which the form of
subscription attached hereto is deemed to have been sent to the Company
pursuant to Section 2.4 hereof less the Warrant Exercise Price, and the
denominator of which is such Market Price. 
As used in this Warrant, the term “Market Price” at any date shall be
deemed to be the last reported sales price on such date, as officially reported
by the principal securities exchange on which the Common Stock is listed or
admitted to trading, or, if the Common Stock is not listed or admitted to
trading on any national securities exchange, on the NASDAQ National Market or
OTCBB, as the case may be (and if no sales were made on any such date, the
average of the closing bid and asked prices on such date as furnished by NASDAQ
or the OTCBB, as the case may be, or similar organization if NASDAQ or the
OTCBB is no longer reporting such information), or if the Common Stock is not
quoted on NASDAQ or the OTCBB, as determined in good faith by resolution of the
Board of Directors of the Company based on the best information available to it.

 

2.4           Delivery
of Certificates, Etc.  In the event
of any exercise of the rights represented by this Warrant, a certificate or
certificates for the shares of Common Stock so purchased, registered in the
name of the Holder, shall be delivered to the Holder within a reasonable time,
not exceeding ten (10) days, after the rights represented by this Warrant
shall have been so exercised; and, unless this Warrant has expired, a new
Warrant representing the number of shares (except a remaining fractional
share), if any, with respect to which this Warrant shall not then have been
exercised shall also be issued to the Holder within such time.  The person in whose name any certificate for
shares of Common Stock is issued upon exercise of this Warrant shall for all
purposes be deemed to have become the holder of record of such shares on the
date on which the Warrant was surrendered and payment of the Warrant Exercise
Price and any applicable taxes was made, except that, if the date of such
surrender and payment is a date on which the stock transfer books of the
Company are closed, such person shall be deemed to have become the holder of
such shares at the close of business on the next succeeding date on which the
stock transfer books are open.

 

3.             Adjustments
to Warrant Exercise Price.  The
Warrant Exercise Price shall be appropriately adjusted in the event of any
stock split, stock dividend or like capital adjustment.  Upon each adjustment of the Warrant Exercise
Price pursuant to this Section 3, the total number of shares of Common
Stock purchasable upon the exercise of each Warrant shall (subject to the
provisions contained in Section 3.3) be such number of shares (calculated
to the nearest tenth) purchasable at the Warrant Exercise Price in effect
immediately prior to such adjustment multiplied by a fraction, the numerator of
which shall be the Warrant Exercise Price in effect 

 

2

 

immediately prior to such adjustment and the
denominator of which shall be the Warrant Exercise Price in effect immediately
after such adjustment.

 

3.1           Binding
Effect.  Any determination as to
whether an adjustment in the Warrant Exercise Price in effect hereunder is
required pursuant to Section 3, or as to the amount of any such
adjustment, if required, shall be binding upon the holders of the Warrants and
the Company if made in good faith by the Board of Directors of the Company.

 

3.2           Certification.  After each adjustment of the Warrant Exercise
Price pursuant to this Section 3, the Company will promptly prepare a
certificate signed by the Chairman or President, and by the Treasurer or an
Assistant Treasurer or the Secretary or an Assistant Secretary, of the Company
setting forth:  (i) the Warrant
Exercise Price as so adjusted, (ii) the number of shares of Common Stock
purchasable upon exercise of each Warrant after such adjustment, and, if the
Company is permitted to and shall have elected to adjust the number of
Warrants, the number of Warrants to which the Holder of each Warrant shall then
be entitled, and (iii) a brief statement of the facts accounting for such
adjustment.  The Company will cause a
brief summary thereof to be sent by ordinary first class mail to each Holder of
Warrants at its last address as it shall appear on the registry books.  No failure to mail such notice nor any defect
therein or in the mailing thereof shall affect the validity of such adjustment.  The affidavit the Secretary or an Assistant
Secretary of the Company that such notice has been mailed shall, in the absence
of fraud, be prima facie evidence of the facts stated therein.

 

3.3           Fractional
Warrants and Fractional Shares.  If
the number of shares of Common Stock purchasable upon the exercise of each
Warrant is adjusted pursuant to Section 3, the Company nevertheless shall
not be required to issue fractions of shares, upon exercise of the Warrant or
otherwise, nor to distribute certificates that evidence fractional shares.  With respect to any fraction of a share
called for upon any exercise hereof, the Company shall pay to the Holder an
amount in cash equal to such fraction multiplied by the Fair Market Value of
one share of Common Stock as of the date of exercise.  For purposes hereof, “Fair Market Value”
shall mean the fair market value as determined by the Board of Directors in
good faith.

 

3.4           Reorganization,
Reclassification, Consolidation, Merger or Sale.  In case of any reclassification, capital
reorganization or other change of outstanding shares of Common Stock, or in
case of any consolidation or merger of the Company with or into another entity
(other than a consolidation or merger in which the Company is the continuing
entity and which does not result in any reclassification, capital
reorganization or other change of outstanding shares of Common Stock other than
the number thereof), or in case of any sale or conveyance to another entity of
the property of the Company as, or substantially as, an entirety (other than a
sale/leaseback, mortgage or other financing transaction), the Company shall
cause effective provision to be made so that each holder of a Warrant then
outstanding shall have the right thereafter, by exercising such Warrant, upon
the terms and conditions specified in the Warrant and in lieu of the shares of
Common Stock immediately theretofore purchasable upon exercise of the Warrant,
to purchase the kind and number of shares of stock or other securities or
property (including cash) receivable upon such reclassification, capital
reorganization or other change, consolidation, merger, sale or conveyance by a
holder of the number of shares of Common Stock that might have been purchased
upon exercise of such Warrant immediately prior to such reclassification,
capital reorganization or other change, consolidation, merger, sale or 

 

3

 

conveyance.  Any
such provision shall include provision for adjustments that shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Section 3.  The Company shall not effect any such
consolidation, merger or sale unless prior to, or simultaneously with, the
consummation thereof the successor (if other than the Company) resulting from
such consolidation or merger or the entity purchasing assets or other
appropriate entity shall assume, by written instrument executed and delivered
to the Company, the obligation to deliver to the holder of each Warrant such
shares of stock, securities or assets as, in accordance with the foregoing
provisions, such holders may be entitled to purchase and the other obligations
under this Warrant.  The foregoing
provisions shall similarly apply to successive reclassifications, capital
reorganizations and other changes of outstanding shares of Common Stock and to
successive consolidations, mergers, sales or conveyances.

 

3.5           No
Impairment.  The Company shall not
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but shall at all times in good
faith assist in the carrying out of all the provisions of this Warrant.

 

4.             Exchange
and Registration of Transfer.

 

4.1           Exchange.  This Warrant may be exchanged for another
Warrant representing an equal aggregate number of Warrants of the same class or
number of Warrants, or at the Company’s option, in the event of an adjustment
in the Warrant Exercise Price, or may be transferred in whole or in part by
surrendering it to the Company at its corporate office.  Upon satisfaction of the terms and provisions
hereof, the Company shall execute, and the Company shall sign, issue and
deliver in exchange therefor, such new Warrant or Warrants that the Holder
making the exchange shall be entitled to receive.

 

4.2           Register.  The Company shall keep at its office books in
which, subject to such reasonable regulations as it may prescribe, it shall
register Warrants and any transfers thereof in accordance with its regular
practice.  Upon due presentment for
registration of transfer of any Warrant at such office, the Company shall
execute and the Company shall issue and deliver to the transferee or
transferees a new Warrant or Warrants representing an equal aggregate number of
Warrants.

 

4.3           Endorsement.  With respect to all Warrants presented for
registration or transfer, or for exchange or exercise, the subscription form
attached hereto shall be duly endorsed, or be accompanied by a written
instrument or instruments of transfer and subscription, in form satisfactory to
the Company, duly executed by the Holder or his attorney-in-fact duly
authorized in writing.

 

4.4           Company
Option.  Prior to due presentment for
registration of transfer thereof, the Company may deem and treat the registered
Holder of any Warrant as the absolute owner thereof (notwithstanding any
notations of ownership or writing thereon made by anyone other than a duly
authorized officer of the Company) for all purposes and shall not be affected
by any notice to the contrary.

 

4.5           Replacement
of the Warrant.  On receipt by the
Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and, in 

 

4

 

the case of any such loss, theft or destruction of
this Warrant, on delivery of an indemnity agreement reasonably satisfactory in
form and amount to the Company or, in the case of any such mutilation, on
surrender and cancellation of the Warrant, the Company at its expense shall
execute and deliver to the Holder, in lieu thereof, a new Warrant of like
tenor.

 

5.             Investment
Intent and Legend.

 

5.1           Investment
Intent.  Unless a current
registration statement under the Act shall be in effect with respect to the
securities to be issued upon exercise of this Warrant, the Holder, by accepting
this Warrant, covenants and agrees that, at the time of exercise hereof, and at
the time of any proposed transfer of any securities acquired upon exercise
hereof, the Holder shall deliver to the Company a written statement that the
securities acquired by the Holder upon exercise hereof are for the account of
the Holder for investment and are not acquired with a view to, or for sale in
connection with, any distribution thereof (or any portion thereof) and are
being acquired with no present intention (at any such time) of offering or
distributing such securities (or any portion thereof).

 

5.2           Legend.  The Holder, by acceptance of this Warrant,
further agrees that the Company may affix the following legend to certificates
for shares of Common Stock issued upon exercise of this Warrant:

 

“The securities
represented by this certificate have been issued in reliance upon the
representation of the holder that they have been acquired for investment and
not with a view toward the resale or other distribution thereof, and have not
been registered under the Securities Act of 1933, as amended.  Neither the securities evidenced hereby, nor
any interest therein, may be offered, sold, transferred, encumbered or
otherwise disposed of unless either (i) there is an effective registration
statement under said Act relating thereto or (ii) the Company has received
an opinion of counsel, reasonably satisfactory in form and substance to the
Company, stating that such registration is not required.”

 

6.             No
Rights or Liability as a Stockholder. 
This Warrant does not entitle the Holder hereof to any voting rights or
other rights as a stockholder of the Company. 
No provisions hereof, in the absence of affirmative action by the Holder
to purchase Common Stock, and no enumeration herein of the rights or privileges
of the Holder, shall give rise to any liability of the Holder as a stockholder
of the Company.

 

7.             Miscellaneous.

 

7.1           Transfer
of Warrant.  The rights represented
by this Warrant are transferable only on the books of the Company at its
corporate office, by the Holder upon surrender of this Warrant properly endorsed.

 

7.2           Titles
and Subtitles.  The titles and
subtitles used in this Warrant are for convenience only and are not to be
considered in construing or interpreting this Warrant.

 

5

 

7.3           Notices.  Any notice required or permitted under this
Warrant shall be given in writing and in accordance with the notice provision
in the Agreement (for purposes of which, the term “Investors” shall mean Holder
hereunder), except as otherwise expressly provided in this Warrant.

 

7.4           Attorneys’
Fees.  If any action at law or in
equity is necessary to enforce or interpret the terms of this Warrant, the
prevailing party shall be entitled to reasonable attorneys’ fees, costs and
disbursements in addition to any other relief to which such party may be
entitled.

 

7.5           Amendments.  This Warrant may be amended only in a writing
signed by the Company.

 

7.6           Severability.  If one or more provisions of this Warrant are
held to be unenforceable under applicable law, such provision shall be excluded
from this Warrant and the balance of the Warrant shall be interpreted as if
such provision were so excluded and shall be enforceable in accordance with its
terms.

 

7.7           Governing
Law.  This Warrant shall be governed
by and construed and enforced in accordance with the laws of the State of New
York, without giving effect to its conflicts of laws principles.

 

7.8           Reservation and
Authorization of Common Stock.  The
Company shall at all times reserve and keep available, out of its authorized
and unissued shares of the Common Stock, solely for the purpose of effecting
the exercise of this Warrant, such number of shares of its Common Stock as
shall be sufficient to effect the exercise of all Warrants from time to time
outstanding.  The Company shall use its
best efforts from time to time, in accordance with the laws of the State of
Delaware, to increase the authorized number of shares of Common Stock if at any
time the number of shares of Common Stock not outstanding shall not be
sufficient to permit the exercise of all the then-outstanding Warrants.

 

6

 

IN
WITNESS WHEREOF, this Warrant has been executed and delivered as a sealed
instrument on the date first above written by the duly authorized
representative of the Company.

 

Date:  October 27,
2003

 

 

	
   

  	
   

  	
  NEXSAN
  CORPORATION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ 

  	
  Tyler Shubert 

  
	
   

  	
   

  	
  Name:

  	
  Tyler Shubert 

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED AND
  AGREED: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Kelly Securities Corporation

  	
   

  	
   

  
	
  (Print Name of Holder)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
  (Signature of Holder)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Title of Holder Not an Individual)

  	
   

  	
   

  
							

 

 

[SIGNATURE PAGE TO
WARRANT CERTIFICATE NUMBER WK-1]

 

 

EXHIBIT A

 

FORM OF SUBSCRIPTION

 

(To be signed only on exercise of Warrant)

 

To:  NEXSAN
CORPORATION

 

The
undersigned, the Holder of the Warrant attached hereto, hereby irrevocably
elects to exercise the purchase rights represented by such Warrant for, and to
purchase thereunder,                     *
shares of Common Stock of Nexsan Corporation, and herewith makes payment of $                    
and requests that the certificates for such shares be issued in the name of,
and delivered to                                       ,
whose address is                                                         ,
and whose social security number/taxpayer identification number is                                         .

 

	
  Dated: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature must conform in all respects to name of 

  the Holder as specified on the face of the Warrant)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print Name)

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

* Insert here the number of shares as to which the
Warrant is being exercised.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]