Document:

EXHIBIT 10.27

 

NEXSAN
CORPORATION

 

RESTRICTED
STOCK PURCHASE AGREEMENT

 

Whereas, Beechtree Capital, LLC and Nexsan Corporation
executed and delivered a Restricted Stock Purchase Agreement on or about July
9, 2001 to evidence their agreement regarding the terms of the purchase by
Beechtree Capital, LLC of 500,000 shares of common stock of Nexsan Corporation
(the “Original RSPA”); and

 

Whereas, the executed Original RSPA could not be
located by either of the parties and, accordingly, the parties executed a replacement
Restricted Stock Purchase Agreement on February 22, 2007 (the “First
Replacement RSPA”), in substitution of the Original RSPA; and

 

Whereas, following execution of the First Replacement
RSPA, a review of the books and records of Payee reflected that the terms of
the Original RSPA were amended by written consent of the Board of Directors on
or about September 12, 2001, a copy of which consent is annexed hereto; and

 

Whereas, in order to reflect the correct purchase
price and other terms and conditions of the purchase of 500,000 shares of
common stock of Nexsan Corporation by Beechtree Capital, LLC as reflected in
the 2001 Board Consent, the parties hereby re-execute the following replacement
Restricted Stock Purchase Agreement on December 28, 2007.

 

Unless
otherwise defined herein, capitalized terms defined in the 2001 Stock Plan (the
“Plan”) of Nexsan Corporation (the “Company”) shall have the same meanings when
used in this Restricted Stock Purchase Agreement (the “Agreement”).

 

I.                                         NOTICE
OF GRANT OF STOCK PURCHASE RIGHT

 

BEECHTREE
CAPITAL, LLC (the “Purchaser”)

 

You
have been granted the right to purchase Common Stock of the Company, subject to
the terms and conditions of this Agreement (the “Agreement”), as follows:

 

	
  Grant Number

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  Date of Grant

  	
   

  	
  as of July 9, 2001

  
	
   

  	
   

  	
   

  
	
  Exercise Price Per Share

  	
   

  	
  $0.49

  
	
   

  	
   

  	
   

  
	
  Total Number of Shares Subject to This

  	
   

  	
  500,000

  
	
  Stock Purchase Right (“Shares”)

  	
   

  	
   

  

 

Non-Transferability of Stock Purchase Right.

 

This
Stock Purchase Right may not be transferred in any manner and may be exercised
only by Purchaser. The terms of the Plan and this Agreement shall be binding
upon successors and assigns of the Purchaser.

 

 

II.                                     AGREEMENT

 

1.                                       Sale
of Stock. The Company hereby agrees to sell to the Purchaser, and the
Purchaser hereby agrees to purchase the number of Shares set forth above in the
Notice of Grant of Stock Purchase Right, at the exercise price per share set
forth in the Notice of Grant of Stock Purchase Right (the “Exercise Price”),
and subject to the terms and conditions of the Plan, which is incorporated
herein by reference. Subject to Section 14(c) of the Plan, in the event of a
conflict between the terms and conditions of the Plan and this Agreement, the
teens and conditions of the Plan shall prevail.

 

2.                                       Payment
of Purchase Price. Purchaser herewith (i) delivers to the Company the
aggregate Exercise Price for the Shares by promissory note (“Note”) in
the form of Exhibit A hereto, (ii) pledges the Shares to the Company to
secure the Note pursuant to a Pledge Agreement in the form of Exhibit B
attached hereto and (iii) assigns the Shares pursuant to an Assignment Separate
From Certificate in the form of Exhibit B-1.

 

3.                                       Purchaser’s
Representations. In the event the Shares have not been registered under the
Securities Act of 1933, as amended, at the time this Stock Purchase Right is
exercised, the Purchaser shall, if required by the Company, concurrently with
the exercise of all or any portion of this Stock Purchase Right, deliver to the
Company his or her Investment Representation Statement in the form attached
hereto as Exhibit C.

 

4.                                       Repurchase
Option.

 

(a)                                  In
the event the Purchaser’s continuous status as an independent consultant (“Service
Provider”) terminates for any or no reason (including death or Disability),
the Company shall, upon the date of such termination (as reasonably fixed and
determined by the Company), have an irrevocable, exclusive option (the “Repurchase
Option”) for a period of sixty (60) days from such date to repurchase up to
that number of shares which constitute the Unvested Shares (as defined in
Section 5) at the Exercise Price per share, plus interest at the rate of
interest set forth in the Note (the “Repurchase Price”).

 

(b)                                 The
Repurchase Option shall be exercised by the Company by delivering written
notice to the Purchaser or the Purchaser’s executor (with a copy to the Escrow
Holder (as defined in Section 7)) and, at the Company’s option, (i) by
delivering to the Purchaser or the Purchaser’s executor a check in the amount
of the aggregate Repurchase Price, or (ii) by the Company canceling an amount
of the Purchaser’s indebtedness to the Company equal to the aggregate
Repurchase Price, or (iii) by a combination of (i) and (ii) so that the
combined payment and cancellation of indebtedness equals such aggregate
Repurchase Price. Upon delivery of such notice and the payment of the aggregate
Repurchase Price in any of the ways described above, the Company shall become
the legal and beneficial owner of the Unvested Shares being repurchased and all
rights and interests therein or relating thereto, and the Company shall have
the right to retain and transfer to its own name the number of Unvested Shares
being repurchased by the Company.

 

2

 

(c)                                  Whenever
the Company shall have the right to repurchase the Unvested Shares hereunder,
the Company may designate and assign one or more employees, officers, directors
or shareholders of the Company or other persons or organizations to exercise
all or a part of the Company’s Repurchase Option to purchase all or a part of
the Unvested Shares. If the Fair Market Value of the Unvested Shares to be
repurchased on the date of such designation or assignment (the “Repurchase
FMV”) exceeds the aggregate Repurchase Price of the Unvested Shares, then
each such designee or assignee shall pay the Company cash equal to the
difference between the Repurchase FMV and the aggregate Repurchase Price of
Unvested Shares to be purchased.

 

(d)                                 If
the Company or its assignee does not elect to exercise the Repurchase Option
conferred above by giving the requisite notice within sixty (60) days following
Purchaser’s termination as a Service Provider, the Repurchase Option shall
terminate.

 

5.                                       Release
of Shares From Repurchase Option (Vesting).

 

(a)                                  All
of the Shares purchased pursuant to this Agreement shall be released from the
Repurchase Option (sometimes hereafter referred to as “vest” or “vesting”) on
July 1, 2003.

 

(b)                                 Any
of the Shares which have not yet been released from the Company’s Repurchase
Option are referred to herein as “Unvested Shares.”

 

(c)                                  In
the event that Purchaser’s relationship as a Service Provider with the Company
shall terminate prior to the vesting of all Shares purchased under this
Agreement all Unvested Shares shall cease to vest pursuant to this Agreement.

 

6.                                       Restriction
on Transfer. Except for the escrow described in Section 7 of this Agreement
or transfer of the Shares to the Company or its assignees contemplated by this
Agreement or the Pledge Agreement (in the form attached hereto as Exhibit B),
none of the Shares or any beneficial interest therein shall be transferred,
encumbered or otherwise disposed of in any way until the release of such Shares
from the Company’s Repurchase Option in accordance with the provisions of this
Agreement.

 

7.                                       Escrow
of Shares.

 

(a)                                  To
ensure the availability for delivery of the Purchaser’s Unvested Shares upon
exercise of the Repurchase Option by the Company, the Purchaser shall, upon
execution of this Agreement, deliver and deposit with an escrow holder
designated by the Company (the “Escrow Holder”) and reasonably
acceptable to the Purchaser the share certificates representing the Unvested
Shares, together with the Assignment Separate from Certificate (the “Stock
Assignment”) duly endorsed in blank, in the form attached hereto as Exhibit
D. The Unvested Shares and Stock Assignment shall be held by the Escrow
Holder, pursuant to the Joint Escrow Instructions of the Company and Purchaser
in the form attached as Exhibit E hereto, until such time as the Company’s
Repurchase Option expires.

 

(b)                                 The
Escrow Holder shall not be liable for any act it may do or omit to do with
respect to holding the Unvested Shares in escrow and while acting in good faith
and in the exercise of its judgment.

 

3

 

(c)                                  If
the Company or any assignee exercises its Repurchase Option hereunder, the
Escrow Holder, upon receipt of written notice of such option exercise from the
proposed transferee, shall take all steps necessary to accomplish such
transfer.

 

(d)                                 When
the Repurchase Option has been exercised or expires unexercised, and a portion
of the Shares has been released from such Repurchase Option, the Escrow Holder
shall promptly upon request, but not more frequently than once each year, cause
a new certificate to be issued for such released Shares and shall deliver such
certificate to the Company or the Purchaser, as the case may be.

 

(e)                                  Subject
to the terms hereof, the Purchaser shall have all the rights of a shareholder
with respect to such Shares while they are held in escrow, including without
limitation, the right to vote the Shares and receive any cash dividends
declared thereon. If, from time to time during the term of the Company’s
Repurchase Option, there is (i) any stock dividend, stock split or other change
in the Shares, or (ii) any merger or sale of all or substantially all of the
assets or other acquisition of the Company, any and all new, substituted or
additional securities to which the Purchaser is entitled by reason of the
Purchaser’s ownership of the Shares shall be immediately subject to this
escrow, deposited with the Escrow Holder and included thereafter as “Shares”
for purposes of this Agreement and the Company’s Repurchase Option.

 

8.                                       Company’s
Right of First Refusal. Before any Shares held by Purchaser or any
transferee (either being sometimes referred to herein as the “Holder”)
may be sold or otherwise transferred (including transfer by gift or operation
of law), the Company or its assignee(s) shall have a right of first refusal to
purchase the Shares on the terms and conditions set forth in this Section (the “Right
of First Refusal”).

 

(a)                                  Notice
of Proposed Transfer. The Holder of the Shares shall deliver to the Company
a written notice (the “Notice”) stating: (i) the Holder’s bona fide intention
to sell or otherwise transfer such Shares; (ii) the name of each proposed
purchaser or other transferee (“Proposed Transferee”); (iii) the number
of Shares to be transferred to each Proposed Transferee; and (iv) the bona fide
cash price or other consideration for which the Holder proposes to transfer the
Shares (the “Offered Price”), and the Holder shall offer the Shares at
the Offered Price to the Company or its assignee(s).

 

(b)                                 Exercise
of Right of First Refusal. At any time within thirty (30) days after
receipt of the Notice, the Company and/or its assignee(s) may, by giving
written notice to the Holder, elect to purchase all or part of the Shares
proposed to be transferred to any one or more of the Proposed Transferees, at
the purchase price determined in accordance with subsection (c) below.

 

(c)                                  Purchase
Price. The purchase price (“Purchase Price”) for the Shares
purchased by the Company or its assignee(s) under this Section shall be (i) the
Offered Price in the case of Shares that are vested or (ii) in the case of
Shares that are Unvested Shares, the lower of the Offered Price or the
Repurchase Price as defined in Section 4(a) hereof. If the Offered Price
includes consideration other than cash, the cash equivalent value of the
non-cash consideration shall be determined by the Board of Directors of the
Company in good faith.

 

4

 

(d)                                 Payment.
Payment of the Purchase Price shall be made, at the option of the Company or
its assignee(s), (i) by cash or check, (ii) by cancellation of all or a portion
of any outstanding indebtedness of the Holder to the Company (or, in the case
of repurchase by an assignee, to the assignee), or (iii) by any combination
thereof within thirty (30) days after receipt of the Notice or in the manner
and at the times set forth in the Notice.

 

(e)                                  Holder’s
Right to Transfer. If Shares proposed in the Notice to be transferred to a
given Proposed Transferee are not purchased by the Company and/or its
assignee(s) as provided in this Section, then the Holder may sell or otherwise
transfer such Shares, that are not repurchased by the Company, to that Proposed
Transferee at the Offered Price or at a higher price, provided that such sale
or other transfer is consummated within one hundred twenty (120) days after the
date of the Notice and provided further that any such sale or other transfer is
effected in accordance with any applicable securities laws and the Proposed
Transferee agrees in writing that the provisions of this Section shall continue
to apply to the Shares in the hands of such Proposed Transferee. If the Shares
described in the Notice are not transferred to the Proposed Transferee within
such period, a new Notice shall be given to the Company, and the Company and/or
its assignees shall again be offered the Right of First Refusal before any
Shares held by the Holder may be sold or otherwise transferred.

 

(f)                                    Termination
of Right of First Refusal. The Right of First Refusal shall terminate as to
any Shares upon the date of the first sale of Common Stock of the Company to
the general public pursuant to a registration statement filed with and declared
effective by the Securities and Exchange Commission under the 1933 Act.

 

9.                                       Restrictive
Legends; Stop-Transfer Orders; Refusal to Transfer.

 

(a)                                  Purchaser
understands and agrees that the Company shall cause the legends set forth below
or legends substantially equivalent thereto, to be placed upon any
certificate(s) evidencing ownership of the Shares together with any other
legends that may be required by the Company or by applicable state or federal
securities laws:

 

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
(THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF
COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR
TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

 

THE SHARES REPRESENTED BY
THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER, A RIGHT OF
FIRST REFUSAL, AND A REPURCHASE OPTION HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS
SET FORTH IN THE RESTRICTED STOCK PURCHASE AGREEMENT BETWEEN THE ISSUER AND THE
ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE
PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS, RIGHT OF FIRST
REFUSAL AND REPURCHASE OPTION ARE BINDING ON TRANSFEREES OF THESE SHARES.

 

5

 

(b)                                 Stop-Transfer
Notices. Purchaser 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.

 

(c)                                  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 owner of such Shares 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.

 

10.                                 Lock-Up
Period. Purchaser hereby agrees that, if so requested by the Company or any
representative of the underwriters (the “Managing Underwriter”) in
connection with any registration of the offering of any securities of the
Company under the Securities Act, Purchaser (or any transferee under Section 8
of this Agreement) shall not sell or otherwise transfer any Shares or other
securities of the Company during the 180-day period (or such shorter period as
may be requested in writing by the Managing Underwriter and agreed to in
writing by the Company) (the “Market Standoff Period”) following the
effective date of a registration statement of the Company filed under the
Securities Act. Such restriction shall apply only to the first registration
statement of the Company to become effective under the Securities Act that
includes securities to be sold on behalf of the Company to the public in an
underwritten public offering under the Securities Act. The Company may impose
stop-transfer instructions with respect to securities subject to the foregoing
restrictions until the end of such Market Standoff Period.

 

11.                                 Tax
Consequences. Set forth below is a brief summary as of the date of grant of
this Stock Purchase Right of some of the federal tax consequences of exercise
of this Stock Purchase Right and disposition of the Shares. THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.

 

(a)                                  Exercise
of Stock Purchase Right. Generally, no income will be recognized by
Purchaser in connection with the exercise of the stock purchase right for
shares subject to the Repurchase Option, unless an election under Section 83(b)
of the Code is filed with the Internal Revenue Service within 30 days of the
date of exercise of the right to purchase stock. The form for making this
election is attached as Exhibit F hereto. Otherwise, as the Company’s
repurchase right lapses, Purchaser will recognize compensation income in an
amount equal to the difference between the Fair Market Value of the stock at
the time the Company’s repurchase right lapses and the amount paid for the
stock, if any (the “Spread”). If Purchaser is a Service Provider or
former Service Provider, the Spread will be subject to tax withholding by the
Company, and the Company will be entitled to a tax deduction in the amount at
the time the Purchaser recognizes ordinary income with respect to a Stock
Purchase Right.

 

6

 

(b)                                 Disposition
of Shares. Upon disposition of the Shares, any gain or loss is treated as
capital gain or loss. If the Shares are held for more than one year, any gain
realized on disposition of the shares will be treated as long-term capital gain
for federal income tax purposes. Long-term capital gains are grouped and netted
by holding periods. Net capital gains on assets held for more than 12 months is
capped at 20%. Capital losses are allowed in full against capital gains, and up
to $3,000 against other income.

 

THE
PURCHASER ACKNOWLEDGES THAT IT IS THE PURCHASER’S SOLE RESPONSIBILITY AND NOT
THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF THE
PURCHASER REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON
THE PURCHASER’S BEHALF.

 

12.                                 No
Guarantee of Continued Service. PURCHASER ACKNOWLEDGES AND AGREES THAT THE
RELEASE OF SHARES FROM THE REPURCHASE OPTION OF THE COMPANY PURSUANT TO
PARAGRAPH 5 HEREOF IS EARNED ONLY BY CONTINUING SERVICE AS SERVICE PROVIDER
(NOT THROUGH THE ACT OF BEING HIRED OR PURCHASING SHARES HEREUNDER). PURCHASER
FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS
CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE
PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL.

 

13.                                 Notices.
Any notice, demand or request required or permitted to be given by either the
Company or the Purchaser pursuant to the terms of this Agreement shall be in
writing and may be delivered by hand, by nationally recognized private courier,
or by certified mail. Notices delivered by hand or by nationally recognized
private courier shall be deemed given when delivered personally to the
addressee or to the courier, or if given by certified mail when deposited in
the U.S. mail, certified and with postage prepaid, and addressed to the parties
at the addresses of the parties set forth at the end of this Agreement or such
other address as a party may request by notifying the other in writing.

 

Any
notice to the Escrow Holder shall be sent to the Company’s address with a copy
to the other party not sending the notice.

 

14.                                 No
Waiver. Either party’s failure to enforce any provision or provisions of
this Agreement shall not in any way be construed as a waiver of any such
provision or provisions, nor prevent that party from thereafter enforcing each
and every other provision of this Agreement. The rights granted both parties
herein are cumulative and shall not constitute a waiver of either party’s right
to assert all other legal remedies available to it under the circumstances.

 

15.                                 Successors
and Assigns. The Company may assign any of its rights under this Agreement
to single or multiple assignees, and this Agreement shall inure to the benefit
of the successors and assigns of the Company. Subject to the restrictions on
transfer herein set forth, this Agreement shall be binding upon Purchaser its
successors and assigns.

 

7

 

16.                                 Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted
by Purchaser or by the Company forthwith to the Administrator which shall
review such dispute at its next regular meeting. The resolution of such a
dispute by the Administrator shall be final and binding on all parties.

 

17.                                 Governing
Law; Severability. This Agreement is governed by the internal substantive
laws, but not the choice of law rules, of New York.

 

18.                                 Entire
Agreement. The Plan is incorporated herein by reference. This Agreement
(including the exhibits referenced herein), the Plan and the Investment
Representation Statement constitute the entire agreement of the parties with
respect to the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and Purchaser with respect to the subject
matter hereof, and may not be modified adversely to the Purchaser’s interest
except by means of a writing signed by the Company and Purchaser.

 

By
Purchaser’s signature below, Purchaser represents that he or she is familiar
with the terms and provisions of the Plan, and hereby accepts this Agreement
subject to all of the terms and provisions thereof. Purchaser has reviewed the
Plan 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 this Agreement. Purchaser agrees to accept as binding, conclusive
and final all decisions or interpretations of the Administrator upon any
questions arising under the Plan or this Agreement. Purchaser further agrees to
notify the Company upon any change in the residence indicated in the Notice of
Grant of Stock Purchase Right.

 

	
  Beechtree Capital, LLC

  	
   

  	
  Nexsan Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
  1221 Avenue of the Americas

  	
   

  	
  555 St. Charles Drive, Suite 202

  
	
  26th Floor

  	
   

  	
  Thousand Oaks, California 91360

  
	
  New York, NY 10020

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ G. M. Weiss

  	
   

  	
  By:

  	
  /s/ Philip Black

  
	
   

  	
  Name:  George M. Weiss

  	
   

  	
   

  	
  Name: Philip Black

  
	
   

  	
  Title:    Managing Member

  	
   

  	
   

  	
  Title: CEO

  
						

 

8

EXHIBIT A

 

PROMISSORY NOTE

 

	
  $245,000

  	
   

  	
  As of July 9,
  2001

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  New York,
  New York

  

 

FOR VALUE RECEIVED, the undersigned, BEECHTREE
CAPITAL, LLC (the “Payor”), with an address at 1221 Avenue of the
Americas, New York, NY 10020, promises to pay to the order of NEXSAN
CORPORATION, a Delaware corporation (“Payee”) with offices at 555 St. Charles
Drive, Suite 202, Thousand Oaks, California 91360 the principal amount of
Two Hundred and Forty-five Thousand ($245,000) Dollars, in such coin or
currency of the United States of America as at the time of payment shall be
legal tender for the payment of public or private debts, together with interest
thereon at the rate of 5.12% per annum. Interest accrued hereunder shall be due
and payable on the stated or any accelerated maturity date, and the principal
amount hereof, together with all accrued but unpaid interest thereon, shall be
paid on the fifth anniversary of the date hereof.

 

This Note is issued by the Payor as payment in
connection with the purchase by the Payor of Five Hundred Thousand (500,000)
shares of the common stock (“Common Stock”) of the Payee pursuant to a
Restricted Stock Purchase Agreement dated the date hereof and is entitled to
the benefits thereof.

 

1.                                       Events
of Default.

 

a.                                       Upon
the occurrence of any of the following events (hereinafter called “Events of
Default”) which shall have occurred and be continuing:

 

(i)                                     The
Payor shall default in any payment of principal or interest due under this Note
and fail to cure such default within ten days after notice thereof;

 

(ii)                                  (1) The
Payor shall commence any proceeding or other action relating to him in
bankruptcy or seek readjustment of his debts, receivership, composition or any
other relief under the Bankruptcy Act, as amended, or under any other insolvency,
readjustment of debt or any other similar act or law, of any jurisdiction,
domestic or foreign, now or hereafter existing; or (2) the Payor shall
admit the material allegations of any petition or pleading in connection with
any such proceeding; or (3) the Payor makes a general assignment for the
benefit of his creditors;

 

(iii)                               (1) The
commencement of any proceedings or the taking of any other action against the
Payor in bankruptcy or seeking the reorganization, arrangement or readjustment
of his debts, or any other relief under the Bankruptcy Act, as amended, or
under any other insolvency, readjustment of debt or any other similar act or
law of any jurisdiction, domestic or foreign, now or hereafter existing and the
continuance of any of such events for sixty (60) days undismissed, unbonded or
undischarged; or (2) the issuance of a warrant of attachment, execution or
similar process against substantially all of the property of the Payor and the
continuance of such event for thirty (30) days undismissed, unbonded and
undischarged; or

 

 

(iv)                              (1) The
Payor voluntarily elects to terminate his or her consulting agreement with, or
his or her arrangement for the provision of services to, the Payee, or (2) the
Payee elects to terminate the Payor’s consulting agreement for Cause, as such
term is defined in the Option Plan, then, and in any such event, the Payee may,
by written notice to the Payor, declare the entire unpaid principal amount of
this Note, together with all accrued but unpaid interest thereon, due and
payable, and the same shall forthwith become due and payable upon without
presentment, demand, protest, or other notice of any kind, all of which are
expressly waived.

 

b.                                      Non-Waiver
and Other Remedies. No course of dealing or delay on the part of the holder
of this Note in exercising any right hereunder shall operate as a waiver
thereof or otherwise prejudice the rights of the holder of this Note. No remedy
conferred hereby shall be exclusive of any other remedy referred to herein or
now or hereafter available at law, in equity, by statute or otherwise.

 

2.                                       Security.

 

(a)                                  Pledge
Agreement. This Note is secured by a Pledge Agreement between the Payor and
the Payee, dated of even date herewith (the “Pledge Agreement”),
pursuant to which the Payor has pledged the Common Stock as collateral for
payment hereunder.

 

(b)                                 Recourse.
No recourse under or upon any obligation, covenant or agreement of this Note,
or for any claim based hereon or otherwise in respect hereof, shall be had
against the Payor or his assigns, except (i) for accrued and unpaid
interest to the maturity date, and (ii) in the event the amount actually
applied to the payment of principal of this Note after payment of costs and
expenses and accrued but unpaid interest hereon upon any sale by the Payee of
the Common Stock (or any other collateral held as security for this Note)
pursuant to Section 3 of the Pledge Agreement, or otherwise, is less than
the original principal amount hereof, then this Note shall be with recourse to
the Payor as to accrued and unpaid interest hereon to the maturity date, and to
not more than thirty three and one-third percent (33 1/3 %) of the principal
remaining unpaid immediately prior to such application.

 

3.                                       Prepayment.
The indebtedness evidenced by this Note may be prepaid by the Payor at any time
in whole or in part from time to time, without premium or penalty, provided
that any prepayment of any portion of the outstanding principal amount hereof
shall be accompanied by all accrued but unpaid interest thereon.

 

4.                                       Lost
Documents. Upon receipt by the Payor of evidence reasonably satisfactory to
him of the loss, theft, destruction or mutilation of this Note or any Note
exchanged for it, and (in the case of loss, theft or destruction) of indemnity
reasonably satisfactory to him, and upon reimbursement to the Payor of all
reasonable expenses incidental thereto, and upon surrender and cancellation of
such Note, if mutilated, the Payor will make and deliver to the Payee in lieu
of such Note a new Note of like tenor and unpaid principal amount and dated as
of the original date of this Note.

 

2

 

5.                                       No
Presentment, etc. The Payor and any endorsers, sureties and guarantors of
this Note waive presentment for payment, demand, protest, notice of protest and
notice of dishonor hereof, and all other notices to which they may be entitled.

 

6.                                       Miscellaneous.

 

a.                                       Parties
in Interest. All covenants, agreements and undertakings in this Note by and
on behalf of any of the parties hereto shall bind and inure to the benefit of
the respective permitted successors and assigns of the parties hereto whether
so expressed or not.

 

b.                                      Notices.
All notices, requests, consents and demands shall be made in writing and shall
be sent, and deemed delivered, in the manner prescribed in Paragraph 12 of the
Pledge Agreement.

 

c.                                       Waiver.
The failure of the Payee to exercise any right or remedy granted to him
hereunder on any one or more instances, shall not constitute a waiver of any
default by the Payee, and all such rights and remedies shall remain
continuously in force. No delay or omission in the exercise or enforcement by
the Payee of any rights or remedies shall be construed as a waiver of any right
or remedy of the Payee; and no exercise or enforcement of any such right or
remedy shall be held to exhaust any other right or remedy of the Payee.

 

d.                                      Illegality.
If any one or more of the provisions contained in this Note shall for any
reason be held to be invalid, illegal or unenforceable, such invalidity, illegality
or unenforceability shall not affect any other provisions of this Note and this
Note shall be construed as if such invalid, illegal or unenforceable provision
had never been contained herein.

 

e.                                       Amendment.
This Note may not be changed orally, but only by an instrument in writing duly
executed by the party against which enforcement of any waiver, change,
modification or discharge is sought.

 

f.                                         Construction.
This Note shall be construed and enforced in accordance with, and the rights of
the parties shall be governed by, the laws of the State of New York.

 

IN WITNESS WHEREOF, this Note has been executed and
delivered by the Payor on the date specified above.

 

	
   

  	
  BEECHTREE CAPITAL, LLC, as Payor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ G.M. Weiss

  
	
   

  	
   

  	
  Name: George M. Weiss

  
	
   

  	
   

  	
  Title: Managing Member

  
	
  ACCEPTED:

  	
   

  
	
  NEXSAN CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip Black

  	
   

  
	
   

  	
  Name: Philip Black

  	
   

  
	
   

  	
  Title: CEO

  	
   

  
					

 

3

 

EXHIBIT B

 

PLEDGE AGREEMENT

 

THE PLEDGE AGREEMENT (the “Agreement”),
entered into as of July 9, 2001, by and between NEXSAN CORPORATION (“Secured
Party”) and BEECHTREE CAPITAL, LLC (the “Pledgor”).

 

W I T N E S S E T H:

 

Whereas, Pledgor has purchased from the Secured Party
Five Hundred Thousand (500,000) shares (“Shares”) of the common stock of
Corporation, a Delaware corporation (the “Corporation”), pursuant to the
Restricted Stock Purchase Agreement and exhibits thereto (collectively the “Agreement”),
dated the date hereof between Pledgor and the Secured Party (“Stock Purchase
Agreement”); and

 

Whereas, Pledgor has agreed to pledge the Shares as
security for the Promissory Note of even date herewith, made by Pledgor to the
order of the Secured Party pursuant to the Stock Purchase Agreement (the “Note”).

 

NOW, THEREFORE, in consideration of the foregoing and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Warranty
and Covenant. Pledgor represents and warrants to the Secured Party that
except for the security interest created hereby, and except for restrictions
imposed by the Restricted Stock Purchase Agreement, he owns the Shares free and
clear of all liens, charges and encumbrances and that he has the unencumbered
right to pledge such Shares pursuant to the terms hereof.

 

2.                                       Pledge.
As security for the prompt payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of all indebtedness and all other
liabilities and obligations, whether now existing or hereafter arising, of
Pledgor to the Secured Party under or arising out of the Note (collectively,
the “Obligations”), Pledgor hereby delivers, pledges and assigns to
Secured Party and creates in Secured Party a perfected first security interest
in all of Pledgor’s right, title and interest in, to and under all of the
Shares, together with (subject to the terms of Section 3 hereof) all
rights and privileges of Pledgor with respect thereto, all proceeds, income and
profits thereof and all property received in addition thereto, in exchange
thereof or in substitution therefor and in any other property or assets of
equal value as may from time to time be substituted by mutual agreement of the
parties hereto as collateral security hereunder (all such property of Pledgor
being hereinafter referred to collectively as the “Collateral”).

 

3.                                       Rights
of Pledgor. So long as no Default has occurred and is continuing (as used,
herein, the term “Default” shall mean and include (i) the failure
of Pledgor to perform any of her Obligations when due, (ii) any material
misrepresentation by Pledgor in or with respect to any provision of the
Agreement or the Note, or (iii) any attachment of the Collateral at any
time pursuant to any court order or other legal process), (a) Pledgor
shall be entitled to vote or consent with respect to the Collateral in any
manner not inconsistent with the Agreement or the Note, and

 

(b) all cash distributions with respect to the
Shares shall, anything in Section 2 or elsewhere herein to the contrary
notwithstanding, be the sole and exclusive property of Pledgor.

 

 

4.                                       Event
of Default. In the event of the occurrence of an Event of Default, as such
term is defined in the Note, and the continuation of such Event of Default
uncured beyond any applicable notice or other grace period, Secured Party may
sell or otherwise dispose of the Collateral at a public or private sale or make
other commercially reasonable disposition of the Collateral or any portion
thereof after twenty-one (21) calendar days’ notice to the Pledgor. Any
proceeds of the disposition of the Collateral in excess of the then outstanding
Obligations shall promptly be remitted to Pledgor by the Secured Party.

 

If any consent, approval or authorization of any
state, municipal or other governmental department, agency or authority should
be necessary to effectuate any sale or other disposition of the Collateral, or
any partial disposition of the Collateral, Pledgor agrees to execute all such
applications and other instruments as may be required in connection with
securing any such consent, approval or authorization, and will otherwise use
her reasonable best efforts to secure the same. Pledgor further agrees to use
her reasonable best efforts (without incurring any additional cost or expense)
to secure such sale or other disposition of the Collateral as the Secured Party
may deem necessary pursuant to the terms of the Agreement

 

5.                                       Additional
Rights of the Secured Party. In addition to its rights and privileges under
the Agreement, the Secured Party shall have all the rights, powers and
privileges of a secured party under the Uniform Commercial Code as in effect in
any applicable jurisdiction.

 

6.                                       Binding
Agreement. The Agreement shall be construed and interpreted in accordance
with the internal laws of the State of New York applicable to agreements made
and to be performed wholly within the State of New York. The Agreement,
together with all documents referred to herein, constitutes the entire
agreement between the parties with respect to the matters addressed herein and
may not be modified except by a writing executed by Pledgor and the Secured
Party.

 

7.                                       Covenants.
The Secured Party covenants that, provided no Default or Event of Default (as
defined in the Note) shall exist and be continuing, it shall release Shares
from the pledge created hereby upon payment of a pro rata portion of the Note
and accrued interest; provided, that such Shares shall be delivered by Secured
Party to the Escrow Holder (as defined in the Stock Purchase Agreement) to be
held and disposed of in accordance with the terms of the Stock Purchase
Agreement.

 

8.                                       Termination.
The Agreement shall continue in full force and effect until all the Obligations
shall have been fully and indefeasibly paid in full. The Collateral shall be
delivered to the Escrow Holder upon full payment, satisfaction and termination
of all of the Obligations, to be held and disposed of in accordance with the
terms of the Agreement.

 

9.                                       Further
Assurances. Pledgor shall at any time and from time to time upon the
written request of the Secured Party, execute and deliver such further
documents and do such further acts and things as the Secured Party may
reasonably request in order to effect the purposes of the Agreement.

 

2

 

10.                                 Severability.
If any paragraph herein, or part thereof, shall for any reason be held or
adjudged to be invalid, illegal or unenforceable by any court of competent
jurisdiction, such paragraph or part thereof so adjudicated invalid, illegal or
unenforceable shall be deemed separate, distinct and independent, and the
remainder of the Agreement shall remain in full force and effect and shall not
be affected by such holding or adjudication.

 

11.                                 Successors
and Assigns. The Agreement, and the terms and conditions hereof, shall be
binding upon and shall inure to the benefit of the Pledgor and his or her
successors and assigns, and the Secured Party and his or her successors and
assigns; provided that Pledgor may not assign or delegate his or her
obligations hereunder without the prior written consent of the Secured Party
and any purported assignment or delegation by Pledgor of his or her obligations
hereunder in the absence of such written consent shall be void.

 

12.                                 Notices.
All notices and other communication provided for herein shall be in writing and
mailed, by registered or certified mail, return receipt requested, or delivered
by overnight courier or by hand, to the intended recipient at the “Address for
Notices” specified below intended recipient’s name on the signature page hereof;
or, as to either party, at such other address as shall hereafter be designated
by such party in a notice to the other party. Except as otherwise provided in
the Agreement, all notices and other communications hereunder shall be deemed
to have been duly given when received by the intended recipient.

 

13.                                 Counterparts.
The Agreement may be executed in any number of counterpart copies, each of
which shall be deemed an original, but which together shall constitute a single
instrument.

 

14.                                 Headings.
Descriptive headings appearing herein are included solely for convenience of
reference and are not intended to affect the meaning or construction of any of
the provisions of the Agreement.

 

[The remainder of
this page is intentionally blank.]

 

3

 

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

 

	
   

  	
  BEECHTREE CAPITAL, LLC, as Pledgor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ G. M. Weiss

  
	
   

  	
   

  	
   Name: George M. Weiss

  
	
   

  	
   

  	
   Title: Managing Member

  
	
   

  	
  Address for Notices:

  	
  1221 Avenue of the Americas

  
	
   

  	
   

  	
  New York, NY 10020

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEXSAN CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Black

  
	
   

  	
   

  	
   Name: Philip Black

  
	
   

  	
   

  	
   Title: CEO

  
	
   

  	
  Address for Notices:

  	
  555 St. Charles Drive,

  
	
   

  	
   

  	
  Suite 202

  
	
   

  	
   

  	
  Thousand Oaks, CA 91360

  
					

 

4

 

EXHIBIT B-1

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED the undersigned, BEECHTREE CAPITAL,
LLC, does hereby sell, assign and transfer unto
                                                                                      
Five Hundred Thousand (500,000) shares of the Common Stock of NEXSAN
CORPORATION, standing in the name of the undersigned on the books of said
corporation represented by Certificate No.             
herewith and does hereby irrevocably constitute and appoint
                                                            
to transfer the said stock on the books of the within named corporation with
full power of substitution in the premises.

 

This Stock Assignment may be used only in accordance
with the PLEDGE AGREEMENT between Nexsan Corporation and the undersigned dated
as of July     , 2006.

 

	
  Dated:
                                ,

  	
  BEECHTREE CAPITAL, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: George M. Weiss

  
	
   

  	
   

  	
  Title: Managing Member

  

 

 

INSTRUCTIONS:  Please do not fill in any blanks other than
the signature line. The purpose of this assignment is to enable the Company to
exercise its Repurchase Option as set forth in the Agreement, without requiring
additional signatures on the part of the Purchaser.

 

 

EXHIBIT C

 

INVESTMENT REPRESENTATION STATEMENT

 

	
  PURCHASER:

  	
   

  	
  BEECHTREE CAPITAL, LLC

  
	
  COMPANY:

  	
   

  	
  NEXSAN CORPORATION

  
	
  SECURITY:

  	
   

  	
  COMMON STOCK

  
	
  AMOUNT:

  	
   

  	
  500,000 shares

  
	
  DATE:

  	
   

  	
  July 9, 2001

  

 

In connection with the purchase of the above-listed
shares of common stock (the “Securities”), the undersigned Purchaser
represents to the Company the following:

 

Purchaser is aware of the Company’s business affairs
and financial condition and has acquired sufficient information about the
Company to reach an informed and knowledgeable decision to acquire the
Securities. Purchaser is acquiring these Securities for investment for
Purchaser’s own account only and not with a view to, or for resale in
connection with, any “distribution” thereof within the meaning of the Securities
Act of 1933, as amended (the “Securities Act”).

 

Purchaser acknowledges and understands that the
Securities constitute “restricted securities” under the Securities Act and have
not been registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide
nature of Purchaser’s investment intent as expressed herein. In this
connection, Purchaser understands that, in the view of the Securities and
Exchange Commission, the statutory basis for such exemption may be unavailable
if Purchaser’s representation was predicated solely upon a present intention to
hold these Securities for the minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one (1) year or any
other fixed period in the future. Purchaser further understands that the
Securities must be held indefinitely unless they are subsequently registered
under the Securities Act or an exemption from such registration is available. Purchaser
further acknowledges and understands that the Company is under no obligation to
register the Securities. Purchaser understands that the certificate evidencing
the Securities will be imprinted with a legend which prohibits the transfer of
the Securities unless they are registered or such registration is not required
in the opinion of counsel satisfactory to the Company, a legend prohibiting
their transfer without the consent of the Commissioner of Corporations of the
State of Delaware and any other legend required under applicable state
securities laws.

 

Purchaser is familiar with the provisions of Rule 701
and Rule 144, each promulgated under the Securities Act, which, in
substance, permit limited public resale of “restricted securities” acquired,
directly or indirectly from the issuer thereof, in a non-public offering
subject to the satisfaction of certain conditions. Rule 701 provides that
if the issuer qualifies under Rule 701 at the time of the grant of the
Stock Purchase Right to the Purchaser, the exercise will be exempt from
registration under the Securities Act. In the event the Company becomes subject
to the reporting requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer
period as any market stand-off agreement may

 

1

 

require) the Securities exempt under Rule 701 may
be resold, subject to the satisfaction of certain of the conditions specified
by Rule 144, including: (I) the resale being made through a broker in
an unsolicited “broker’s transaction” or in transactions directly with a market
maker (as said term is defined under the Securities Exchange Act of 1934); and,
in the case of an affiliate, (2) the availability of certain public
information about the Company, (3) the amount of Securities being sold
during any three (3) month period not exceeding the limitations specified
in Rule 144(e), and (4) the timely filing of a Form 144, if
applicable.

 

In the event that the Company does not qualify under Rule 701
at the time of grant of the Stock Purchase Right, then the Securities may be
resold in certain limited circumstances subject to the provisions of Rule 144,
which requires the resale to occur not less than one (1) year after the
later of the date the Securities were sold by the Company or the date the
Securities were sold by an affiliate of the Company, within the meaning of Rule 144;
and, in the case of acquisition of the Securities by an affiliate, or by a
non-affiliate who subsequently holds the Securities less than two (2) years,
the satisfaction of the conditions set forth in sections (1), (2), (3) and
(4) of the paragraph immediately above.

 

Purchaser further understands that in the event all of
the applicable requirements of Rule 701 or 144 are not satisfied,
registration under the Securities Act, compliance with Regulation A, or some
other registration exemption will be required; and that, notwithstanding the
fact that Rules 144 and 701 are not exclusive, the Staff of the Securities
and Exchange Commission has expressed its opinion that persons proposing to
sell private placement securities other than in a registered offering and
otherwise than pursuant to Rules 144 or 701 will have a substantial burden
of proof in establishing that an exemption from registration is available for
such offers or sales, and that such persons and their respective brokers who
participate in such transactions do so at their own risk. Purchaser understands
that no assurances can be given that any such other registration exemption will
be available in such event.

 

Signature of Purchaser:

 

BEECHTREE CAPITAL, LLC

 

 

	
  By:

  	
  /s/ G. M. Weiss

  	
   

  
	
   

  	
  Name: George M. Weiss

  	
   

  
	
   

  	
  Title: Managing Member

  	
   

  
	
   

  
	
  Date: As of July, 2001

  

 

2

 

EXHIBIT D

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED, the undersigned, BEECHTREE
CAPITAL, LLC, does hereby sell, assign and transfer unto
                                                                      
Five Hundred Thousand (500,000) shares of the Common Stock of NEXSAN
CORPORATION, standing in the name of the undersigned on the books of said
corporation represented by Certificate No.             herewith and does hereby irrevocably
constitute and appoint
                                                            
to transfer the said stock on the books of the within named corporation with
full power of substitution in the premises.

 

This Stock Assignment may be used only in accordance
with the RESTRICTED STOCK PURCHASE AGREEMENT between Nexsan Corporation and the
undersigned dated as of July       , 2001.

 

	
  Dated:
                                ,

  	
  BEECHTREE CAPITAL, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: George M. Weiss

  
	
   

  	
   

  	
  Title: Managing Member

  

 

 

INSTRUCTIONS:  Please do not fill in any blanks other than
the signature line. The purpose of this assignment is to enable the Company to
exercise its Repurchase Option as set forth in the Agreement, without requiring
additional signatures on the part of the Purchaser.

 

 

EXHIBIT E

 

JOINT ESCROW INSTRUCTIONS

 

As of July 9, 2001

 

Secretary

Nexsan Corporation

555 St. Charles Drive

Suite 202

Thousand Oaks, California 91360

 

Dear Sir:

 

As Escrow Agent for both Nexsan Corporation, a Delaware
corporation (the “Company”), and the undersigned purchaser of stock of the
Company (the “Purchaser”), you are hereby authorized and directed to
hold the documents delivered to you pursuant to the terms of that certain
Restricted Stock Purchase Agreement dated as of July 9, 2001 (“Agreement”)
between the Company and the undersigned, in accordance with the following
instructions:

 

a.                                       In
the event the Company and/or any assignee of the Company (referred to
collectively for convenience herein as the “Company”) exercises the
Company’s repurchase option set forth in the Agreement (the “Repurchase
Option”), the Company shall give to Purchaser and you a written notice
specifying the number of shares of stock to be purchased, the purchase price,
and the time for a closing hereunder at the principal office of the Company. Purchaser
and the Company hereby irrevocably authorize and direct you to close the
transaction contemplated by such notice in accordance with the terms of said
notice.

 

b.                                      At
the closing, you are directed (i) to date the stock assignments necessary
for the transfer in question, (ii) to fill in the number of shares being
transferred, and (iii) to deliver same, together with the certificate
evidencing the shares of stock to be transferred, to the Company or its
assignee, against the simultaneous delivery to you of the purchase price (by
cash, a check, or some combination thereof) for the number of shares of stock
being purchased pursuant to the exercise of the Repurchase Option.

 

c.                                       Purchaser
irrevocably authorizes the Company to deposit with you any certificates
evidencing shares of stock to be held by you hereunder and any additions to and
substitutions for said shares as defined in the Agreement. Purchaser does
hereby irrevocably constitute and appoint you as Purchaser’s attorney-in-fact
and agent for the term of this escrow to execute with respect to such
securities all documents necessary or appropriate to make such securities
negotiable and to complete any transaction herein contemplated, including but
not limited to the filing with any applicable state blue sky authority of any
required applications for consent to, or notice of transfer of, the securities.
Subject to the provisions of this paragraph (c), Purchaser shall exercise all
rights and privileges of a shareholder of the Company while the stock is held
by you.

 

 

d.                                      Once
per calendar year and upon termination of this escrow, unless the Repurchase
Option has been exercised, you will deliver to Purchaser a certificate or
certificates representing so many shares of stock as are not then subject to
the Repurchase Option. Within ninety (90) days after cessation of Purchaser’s
continuous service - rendering to the Company, or any parent or subsidiary of
the Company, you will deliver to Purchaser a certificate or certificates
representing the aggregate number of shares held or issued pursuant to the
Agreement and not purchased by the Company or its assignees pursuant to
exercise of the Repurchase Option.

 

e.                                       If
at the time of termination of this escrow you should have in your possession
any documents, securities, or other property belonging to Purchaser, you shall
deliver all of the same to Purchaser and shall be discharged of all further
obligations hereunder.

 

f.                                         Your
duties hereunder may be altered, amended, modified or revoked only by a writing
signed by all of the parties hereto.

 

g.                                      You
shall be obligated only for the performance of such duties as are specifically
set forth herein and may rely and shall be protected in relying or refraining
from acting on any instrument reasonably believed by you to be genuine and to
have been signed or presented by the proper party or parties. You shall not be
personally liable for any act you may do or omit to do hereunder as Escrow
Agent or as attorney-in-fact for Purchaser while acting in good faith, and any
act done or omitted by you pursuant to the advice of your own attorneys shall
be conclusive evidence of such good faith.

 

h.                                      You
are hereby expressly authorized to disregard any and all warnings given by any
of the parties hereto or by any other person or corporation, excepting only
orders or process of courts of law and are hereby expressly authorized to
comply with and obey orders, judgments or decrees of any court. In case you
obey or comply with any such order, judgment or decree, you shall not be liable
to any of the parties hereto or to any other person, firm or corporation by
reason of such compliance, notwithstanding any such order, judgment or decree
being subsequently reversed, modified, annulled, set aside, vacated or found to
have been entered without jurisdiction.

 

i.                                          You
shall not be liable in any respect on account of the identity, authorities or
rights of the parties executing or delivering or purporting to execute or
deliver the Agreement or any documents or papers deposited or called for
hereunder.

 

j.                                          You
shall be entitled to employ such legal counsel and other experts as you may
deem necessary properly to advise you in connection with your obligations
hereunder, may rely upon the advice of such counsel, and may pay such counsel
reasonable compensation therefor.

 

k.                                       Your
responsibilities as Escrow Agent hereunder shall terminate if you shall cease
to be an officer or agent of the Company or if you shall resign by written
notice to each party. In the event of any such termination, the Company shall
appoint a successor Escrow Agent.

 

l.                                          If
you reasonably require other or further instruments in connection with these
Joint Escrow Instructions or obligations in respect hereto, the necessary parties
hereto shall join in furnishing such instruments.

 

2

 

m.                                    It
is understood and agreed that should any dispute arise with respect to the
delivery and/or ownership or right of possession of the securities held by you
hereunder, you are authorized and directed to retain in your possession without
liability to anyone all or any part of said securities until such disputes
shall have been settled either by mutual written agreement of the parties
concerned or by a final order, decree or judgment of a court of competent
jurisdiction after the time for appeal has expired and no appeal has been
perfected, but you shall be under no duty whatsoever to institute or defend any
such proceedings.

 

n.                                      Any
notice required or permitted hereunder shall be given in writing and shall be
deemed effectively given upon personal delivery or upon deposit in the United
States Post Office, by registered or certified mail with postage and fees
prepaid, addressed to each of the other parties thereunto entitled at the
following addresses or at such other addresses as a party may designate by ten (10) days’
advance written notice to each of the other parties hereto.

 

	
  COMPANY:

  	
  Nexsan Corporation

  
	
   

  	
  555 St. Charles Drive

  
	
   

  	
  Suite 202

  
	
   

  	
  Thousand Oaks, California 91360

  
	
   

  	
   

  
	
  PURCHASER:

  	
  Beechtree Capital, LLC

  
	
   

  	
  1221 Avenue of the Americas

  
	
   

  	
  New York, NY 10020

  
	
   

  	
   

  
	
  ESCROW AGENT:

  	
  Secretary

  
	
   

  	
  Nexsan Corporation

  
	
   

  	
  555 St. Charles Drive

  
	
   

  	
  Suite 202

  
	
   

  	
  Thousand Oaks, California 91360

  

 

o.                                      By
signing these Joint Escrow Instructions, you become a party hereto only for the
purpose of said Joint Escrow Instructions; you do not become a party to the
Agreement.

 

p.                                      This
instrument shall be binding upon and inure to the benefit of the parties
hereto, and their respective successors and permitted assigns.

 

q.                                      The
Restricted Stock Purchase Agreement is incorporated herein by reference. These
Joint Escrow Instructions, the 2001 Stock Plan, and the Restricted Stock
Purchase Agreement (including the exhibits referenced therein) constitute the
entire agreement of the parties with respect to the subject matter hereof and
supersede in their entirety all prior undertakings and agreements of the Escrow
Agent, the Purchaser and the Company with respect to the subject matter hereof,
and may not be modified except by means of a writing signed by the Escrow
Agent, the Purchaser and the Company.

 

3

 

r.                                         These
Joint Escrow Instructions shall be governed by, and construed and enforced in accordance
with, the laws of the State of New York.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  NEXSAN CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Black

  
	
   

  	
   

  	
  Name: Philip Black

  
	
   

  	
   

  	
  Title: CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  BEECHTREE CAPITAL, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ G M Weiss

  
	
   

  	
   

  	
  Name: George M. Weiss

  
	
   

  	
   

  	
  Title: Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
  ESCROW AGENT:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Gene Spies

  	
   

  	
   

  
	
  Secretary of Nexsan Corporation

  	
   

  
					

 

4

 

EXHIBIT F

ELECTION UNDER SECTION 83(b)

OF THE INTERNAL REVENUE CODE OF 1986

 

The undersigned taxpayer hereby elects, pursuant to
the above-referenced Federal Tax Code, to include in taxpayer’s gross income
for the current taxable year, the amount of any compensation taxable to
taxpayer in connection with his receipt of the property described below:

 

a.                                       The
name, address, taxpayer identification number and taxable year of the
undersigned are as follows:

 

	
  NAME:

  	
  Beechtree Capital, LLC

  
	
  ADDRESS:

  	
  1221 Avenue of the Americas

  
	
   

  	
  26th floor

  
	
   

  	
  New York, NY 10020

  
	
   

  	
   

  
	
  IDENTIFICATION NO.:

  	
   

  
	
   

  	
   

  
	
  TAXABLE YEAR:

  	
   

  

 

b.                                      The
property with respect to which the election is made is described as follows:
                                          
shares (the “Shares”) of the Common Stock of Nexsan Corporation (the “Company”).

 

c.                                       The
date on which the property was transferred is:
                                .

 

d.                                      The
property is subject to the following restrictions: The Shares may be
repurchased by the Company, or its assignee, upon the taxpayer ceasing to
perform services for the Company. This repurchase right lapses with regard to a
portion of the Shares based on the continuous performance of services over a
period of time.

 

e.                                       The
fair market value at the time of transfer, determined without regard to any
restriction other than a restriction which by its terms will never lapse, of
such property is: 

$                        
per share.

 

f.                                         The
amount (if any) paid for such property is:

$                        
per share.

 

The undersigned has submitted a copy of this statement
to the person for whom the services were performed in connection with the
undersigned’s receipt of the above-described property. The transferee of such
property is the person performing the services in connection with the transfer
of said property. The undersigned understands that the foregoing election may
not be revoked except with the consent of the Commissioner.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BEECHTREE CAPITAL, LLC, Taxpayer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: George M. Weiss

  	
   

  
	
   

  	
  Title: Managing MemberEXHIBIT 10.28

 

FORM OF

 

CALL
OPTION AGREEMENT

 

THIS AGREEMENT
is made as of the        day of
                      .

 

	
  BETWEEN:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (the “Optionor”)

  
	
   

  	
   

  
	
  - and -

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (the “Optionee”)

  

 

RECITALS:

 

WHEREAS the
Optionor is the registered and beneficial owner of an option dated as of the
date hereof (the “Option”)
entitling the Optionor to purchase up to
                
common shares (the “Shares”) in the
capital stock of Nexsan Corporation (the “Corporation”)
at any time within       
(    ) years from and after the date thereof at the
exercise price of
                                    
per Share in lawful currency of the United States of America, all on and
subject to the terms and conditions set out in the Option;

 

AND WHEREAS
the Optionor has agreed to grant to the Optionee an option to purchase from the
Optionor the Option, or the Shares issued to the Optionor upon the exercise of
the Option, or an equal number of other shares of common stock of the
Corporation in whole or in part (the “Call Option”),
all upon and subject to the terms and conditions set forth in this agreement;

 

NOW THEREFORE,
the parties agree as follows:

 

1.                                      Call Option - The Optionor hereby grants to the Optionee
the irrevocable Call Option, exercisable as set out below in Section 2, to
purchase from the Optionor, and to require the Optionor, to sell the Option or
the Shares issued to the Optionor upon the exercise of the Option or, if and
only if the Option or the Shares cannot be purchased and sold, an equal number
of other shares of common stock of the Corporation, in whole or in part, in
accordance with this Agreement. The Call Option is exercisable by the Optionee
at any time and from time to time until 11:59 p.m. on the day immediately
preceding a anniversary of the date hereof. The within Call Option, if not
exercised within the said time period, shall expire and be of no further force
or effect. In the event that the Option is exercised in part, the within Call
Option shall remain in full force and effect, on the terms set out herein, in
respect of that number of Shares for which the Optionor has not exercised its
rights pursuant to the Option.

 

2.                                      Manner
of Exercise of Call Option - The Call Option may be exercised by the
Optionee giving written notice to the Optionor (the “Call Notice”)
that the Call Option is being exercised, which Call Notice may be given at any
time during the term of this Call Option.

 

 

3.                                      Action by the Parties - In the event the Optionee exercises the
Option:

 

(a)                                  Purchase Price  Upon
the exercise of the within Call Option and compliance by the Optionee with the
terms hereof, the Optionor shall sell to the Optionee and the Optionee shall
purchase from the Optionor, at Optionee’s election, the Option, the Option
shares or
                  
shares for an aggregate purchase price calculated in lawful currency of the
United States of America equal to
$           plus a growth
factor of           % per
annum compounded from the date hereof (the “Exercise
Price”) multiplied by the number of Shares in respect of which
this Call Option is exercised (but in the case of the purchase of the Option,
$           plus a growth
factor of           % per
annum compounded from the date hereof multiplied by the number of shares
subject to the Option). The amount, so determined, shall be the “Purchase Price”. The Purchase Price shall be payable in
lawful currency of the United States of America by cheque or bank draft or by
delivery of indebtedness of Optionor to Optionee in the same amount.

 

(b)                                  Delivery of Certificates, etc. Subject to payment of the Purchase Price in
the manner and at the time specified in Section 3(a) hereof, the
Optionor shall transfer and deliver to the Optionee, and the Optionee shall
accept from the Optionor certificates representing the Shares duly endorsed in
blank for transfer or accompanied by irrevocable security transfer powers of
attorney duly executed in blank.

 

4.                                      Place of Delivery and
Payment  Delivery of the direction or the share certificates
as required by Section 3(b) hereof shall take place at 10:00 a.m.
at the office of the Optionor against receipt by the Optionor of the Purchase
Price.

 

5.                                      No Disposition or Agreement to
Dispose of Option Shares
- The Optionor represents and warrants that it is the legal and beneficial
owner of the Option with good and valid title thereto free and clear of any
liens, pledges, encumbrances, security interests, charges, adverse claims,
covenants or obligations of any kind or nature whatsoever and that it has full
capacity, right and authority to enter into this Option and to perform and
satisfy its obligations hereunder. The Optionor covenants that it shall not
either directly or indirectly dispose of, alienate, charge, pledge or encumber
the Option or the Option Shares or enter into any agreement which does or could
have the effect of limiting or restricting the rights of the Optionee hereunder
to acquire the Option or the Option Shares, to the extent and at the time or
times provided for herein. Optionor agrees that Optionee may place a legend as
the Option Shares to the foregoing effect. The Optionor further covenants that
the foregoing representations and warranties will be accurate and complete in
all respects at the time of delivery of the share certificates or direction
pursuant to section 3(b) hereof.

 

6.                                      Subdivision,
Consolidation or Reclassification - In the event of any amendment to
the Option or the 

Optionor’s rights and entitlements thereunder pursuant to Section 12
thereof, the Optionor shall deliver, at the time of any exercise thereafter of
the Option hereby granted, such number of Shares or the entitlement thereto as
would result if such exercise of the Call Option hereby granted had been prior
to the date of such amendment.

 

2

 

The Optionor shall take all steps and do all things
necessary within its control to ensure compliance with the provisions of this
section, including delivery and surrender of the certificate or certificates
representing the Option or the Option Shares to permit the issuance of any
replacement certificates necessary to give effect to this Section.

 

7.                                      Notices - Any notice or other writing required or
permitted to be given under this Agreement or for the purposes of this
Agreement (referred to in this section as a “Notice”)
shall be sufficiently given if delivered or transmitted by facsimile or other
form of recorded communication tested prior to transmission to such party:

 

	
  (a)

  	
  in the case of a notice to the Optionor to:

  	
  the address set forth below its signature on the
  signature page hereof

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  in the case of a notice to the Optionee to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

or at such other address as the party to whom
such Notice is to be given shall have last notified the party giving same, in
the manner provided in this Section. Any Notice delivered to the party to whom
it is addressed as provided in this Section shall be deemed to have been
given and received on the day it is so delivered at such address, provided that
it is delivered during normal business hours and further provided if such day
is not a business day then the Notice shall be deemed to have been given and
received on the business day next following such day. Any Notice transmitted by
facsimile or other form of recorded communication shall be deemed given and
received on the first (1st) business day after its transmission.

 

8.                                      Governing Law - This Agreement shall be interpreted,
enforced and governed in accordance with the laws of the State of New York and
shall be treated in all respects as a New York contract.

 

9.                                      Amendments - No supplement, modification, amendment,
waiver or termination of this Agreement shall be binding upon the parties
hereto unless agreed to by such parties in writing.

 

10.                               Headings - The division of this Agreement into
articles, sections and paragraphs and the insertion of headings are for
convenience of reference only and shall not affect the construction or
interpretation of this Agreement.

 

11.                               Entire
Agreement - This Agreement constitutes the entire understanding and
agreement between the parties hereto pertaining to the subject matter hereof
and supersedes all prior agreements, negotiations, discussions or
understandings with respect to the subject matter hereof.

 

12.                               Further Assurances - Each of the Optionor and the Optionee
hereby covenants and agrees that it shall, at any time or times and from time
to time, upon the request of the other and with reasonable diligence, do,
execute, acknowledge and deliver or cause to be done, executed, acknowledged
and delivered all such further acts, deeds, assignments, transfers,
conveyances, assurances and proxies as may be required or desirable to better
carry out and perform the intent and terms of this Agreement.

 

3

 

13.                               Inurement - This Agreement shall enure to the benefit
of and be binding upon the parties hereto and their respective successors and
permitted assigns.

 

IN WITNESS WHEREOF the parties have hereunto duly executed this Agreement.

 

	
   

  	
  OPTIONOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTIONEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title

  

 

4

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"}]]