Document:

EXHIBIT 10.31

 

AGREEMENT

 

This
Agreement (this “Agreement”), dated as of January 30, 2008, by and
between BEECHTREE CAPITAL LLC, a Delaware
limited liability company and affiliate of the Company (as hereinafter
defined) (“Beechtree”), and NEXSAN CORPORATION (the “Company”).

 

WHEREAS, Beechtree purchased pursuant to that certain
Restricted Stock Purchase Agreement, dated as of January 4, 2001 (the “Original
Stock Purchase Agreement”), 500,000 shares of common stock of the Company
at $0.66 per share (the “Original Shares”);

 

WHEREAS, the purchase price for the Original Shares was
paid by Beechtree in the form of a  promissory note,
issued on January 4, 2001,  in the principal amount
of $330,000 (the  “Original Note”) with a stated
maturity date of January 4, 2006 and bearing interest at the rate of 5.61%
per annum;

 

WHEREAS,
accrued and unpaid interest on the Original Note as of the date hereof is
$131,011.18;

 

WHEREAS, Beechtree pursuant to that certain Pledge
Agreement, dated as of January 4, 2001  (the  “Original Pledge Agreement”), agreed to pledge all right, title and interest in
the Original Shares as security for payment and performance of the
Original Note;

 

WHEREAS,
Beechtree and the Company signed Joint Escrow Instructions, dated January 4,
2001, directing the Escrow Holder (as
defined in the Original Stock Purchase Agreement) to hold in its
possession all of the documents delivered pursuant to the Original Stock
Purchase Agreement (the “Original Escrow Instructions”);

 

WHEREAS, none of the principal amount or accrued interest
on the Original Note has been paid as of the date hereof;

 

WHEREAS, Beechtree purchased pursuant to that certain
Restricted Stock Purchase Agreement,  dated as of July 9,
2001 (the  “Second Stock Purchase
Agreement” and together with the Original Stock Purchase Agreement,
the “Stock Purchase Agreements”), 500,000 shares of common stock of the
Company at $0.49 per share (the “Additional Shares” and together with
the Original Shares, the “Collateral”);

 

WHEREAS, the purchase price for the Additional Shares was
paid by Beechtree in the form of a  promissory note,
issued as of July 9, 2001, in the principal amount of $245,000 (the
“Second Note” and together with
the Original Note, the “Notes”) with a stated maturity date of July 9,
2006 and bearing interest at the rate of 5.12% per annum;

 

WHEREAS,
accrued and unpaid interest on the Second Note as of the date hereof is
$82,377.99;

 

WHEREAS, Beechtree pursuant to that certain Pledge
Agreement, dated as of July 9, 2001 (the “Second Pledge Agreement” and together with
the Original Pledge Agreement, the “Pledge Agreements”), agreed to
pledge all right, title and interest in the Additional Shares as 

 

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security for payment and performance of the Second
Note;

 

WHEREAS, Beechtree and the Company signed Joint Escrow
Instructions, dated as of July 9,  2001, directing the
Escrow Holder (as defined in the Second Stock Purchase Agreement) to hold in
its possession all of the documents delivered pursuant to the Second
Stock Purchase Agreement (the “Additional Escrow Instructions” and
together with the Original Escrow Instructions, the “Escrow Instructions”);

 

WHEREAS, none of the principal amount or the accrued
interest on the Second Note has been paid as of the date hereof (together with the
aggregate amount owed under the Original Note, the “Obligations”);

 

WHEREAS,
the Company, in contemplation of an initial public offering of its common stock
and in order to comply with certain provisions set forth in The Sarbanes-Oxley
Act of 2002 (“SOX”), has demanded payment of
the Obligations and, in order to satisfy the Obligations in full, the parties
have agreed that the Company will acquire the Collateral on the terms
and conditions hereinafter set forth, pursuant to the Stock Purchase Agreements
and Pledge Agreements; and

 

WHEREAS, it is the intent of the parties that the
transactions contemplated by this Agreement  restore the parties
to the position they would be in but for the purchase of the Collateral by the
Company in order to comply with the requirements of SOX.

 

NOW, THEREFORE, in consideration of the mutual agreements
set forth in this Agreement, the parties hereto agree as follows:

 

1.             Amount Due.  Beechtree
hereby acknowledges and agrees that $788,389.17 represents all amounts payable
under the Notes as of the date hereof and such amount is due and payable to the
Company and that no payments have been made as of the date hereof on account of
the Obligations.

 

2.             Value of Collateral. 
The aggregate fair market value of the Collateral as of the date of this
Agreement is $670,000.  The parties hereby acknowledge and agree that
the aggregate fair market value  of the
Collateral as of the date of this Agreement is $118,389.17 less than the
aggregate amount of the Obligations and that such deficit will be
forgiven by the Company.

 

3.             Satisfaction of Obligations. 
The parties hereby agree that, in full and complete satisfaction of the Obligations, Beechtree hereby transfers,
effective as of the Effective Date (as such term is defined below) all
right, title and interest in and to all of the Collateral to the Company
pursuant to and as contemplated by the
Pledge Agreements.  Beechtree agrees to
instruct each Escrow Holder to deliver the certificates evidencing the Collateral and all other relevant documents
to the Company.  For all purposes
of this Agreement, the “Effective Date” means January 30, 2008.

 

4.             Termination of Agreements. 
The parties hereby acknowledge and agree that, upon compliance by
Beechtree with Section 3 of this Agreement, each of the Stock Purchase 

 

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Agreements, Notes, Pledge
Agreements and the Escrow Instructions shall be terminated and shall be of no
further force or effect.

 

5.             Representations and Warranties. 
Beechtree is the legal record and beneficial owner of, and has good and
marketable title to, the Collateral, and such title is subject to no pledge,
lien, mortgage, hypothecation, security
interest, charge, option, claim or other encumbrance whatsoever, except the
lien and security interest created by the Pledge Agreements.

 

6.             Option Grant. 
In order to enable Beechtree to maintain an equity interest in the
Company comparable to that represented by the Shares, the Company hereby grants
to Beechtree a new option (the “New Option”) for the same number of
shares acquired pursuant to the Stock Purchase Agreements, for an exercise
price and on the terms set forth in the Stock Option Agreement substantially in the form of Exhibit A hereto (the “Stock
Option Agreement”).  Beechtree represents
and warrants to the Company that it has relied solely on its own legal and
financial advisors in evaluating the legal, financial, economic and tax
implications to Beechtree and its members of the transactions contemplated
hereby.

 

7.             Miscellaneous.

 

(a)           Governing Law. 
This Agreement shall be governed by and be construed in accordance with
the law of the State of New York, without regard to conflicts of laws
principles.

 

(b)           Invalidity.  In the event
that any provision of this Agreement is declared by a court of competent jurisdiction to be void or
unenforceable, the remainder of this Agreement shall not be affected
thereby and shall remain in full force and effect to the extent feasible in the
absence of the void and unenforceable provision.

 

(c)           Further Assurances. 
The parties agree to execute and deliver such amendments and supplements
to this Agreement, and such other documents and instruments, and take such
further actions, as may be necessary in order effectuate the intent and
purposes of this Agreement.

 

(d)           Counterparts. 
This Agreement may be executed in counterparts, each of which when so executed shall be deemed an original, but all of
which when taken together shall constitute one and the same instrument.

 

[SIGNATURE
PAGE FOLLOWS]

 

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This
Agreement has been executed by the parties as of the day and year first written
above.

 

	
   

  	
  BEECHTREE CAPITAL LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ G.M. Weiss

  
	
   

  	
   

  	
  Name: George Weiss

  
	
   

  	
   

  	
  Title: Managing Member Beechtree

  Capital, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  NEXSAN CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gene Spies

  
	
   

  	
   

  	
  Name: Gene Spies

  
	
   

  	
   

  	
  Title: CFO

  

 

4

 

Exhibit A

(Form of New Option)

 

 

NEXSAN
CORPORATION

 

STOCK
OPTION AGREEMENT

 

This Stock Option Agreement (the “Agreement”)
is made and entered into as of the date of grant set forth below (the “Date of Grant”) by and between
Nexsan Corporation, a Delaware corporation (the “Company”),
and Beechtree Capital LLC (the “Optionee”).

 

	
  Optionee:

  	
   

  	
  Beechtree Capital LLC

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  1221 Avenue of the Americas, 26th Floor

  New York, New York 10020

  
	
   

  	
   

  	
   

  
	
  Total Option Shares:

  	
   

  	
  1,000,000 (the “Total Option Shares”)

  
	
   

  	
   

  	
   

  
	
  Exercise Price Per Share:

  	
   

  	
  $0.865, increasing by 3.23% per annum compounded annually
  on each March 31 from the Date of Grant through the date of exercise

  
	
   

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
  January 30, 2008 (the “Date
  of Grant”)

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  March 31, 2013

  
	
   

  	
   

  	
   

  
	
  Type of Stock Option:

  	
   

  	
  Nonqualified Stock Option

  

 

1.             GRANT OF OPTION.  The Company hereby grants to the Optionee an option
(the “Option”)
to purchase the total number of shares of Common Stock of the Company
set forth above as Total Option Shares (the “Shares”) at the Exercise Price Per Share set forth above
(the “Exercise Price”), subject to all of the terms and conditions of this
Agreement.  This Option is not
being issued under the Company’s 2001 Stock Option Plan.

 

2.             EXERCISE PERIOD.

 

2.1          Exercise Period of
Option.  This Option is exercisable on the earlier
of (i) January 1, 2009 or (ii) in the event of the Sale of the
Company, immediately prior to the date of the consummation of such Sale;
provided that, in each case under clauses (i) and (ii) above, the
Repurchase has been consummated in accordance with the terms of the Repurchase
Agreement and there has been no breach by Optionee under such agreement.  “Sale” means any of the following: (i) any
transaction or series of related transactions, including, without limitation,
any merger or consolidation of the Company with or into another corporation or
person or entity (other than with or into a wholly-owned subsidiary), or the
sale of capital stock of the Company by the holders thereof, in any case under
circumstances in which the holders of the outstanding capital stock of the Company
immediately prior to such transaction or series of related transactions shall
own less than a majority in voting power of the outstanding capital stock of
the Company or the surviving or resulting corporation or other entity, as the
case may be, immediately following such transaction or (ii) the sale or
transfer of all or substantially all of the assets of the Company.  “Repurchase” means the repurchase of
1,000,000 shares of 

 

1

 

Common Stock held by the
Optionee by the Company pursuant to the terms of that certain Repurchase
Agreement.  “Repurchase Agreement”
means that certain agreement dated as of the date as of the date hereof
between the Optionee and the Company.

 

2.2          Expiration.  The Option shall expire on the Expiration
Date set forth above.

 

3.             MANNER OF EXERCISE.

 

3.1          Stock Option Exercise
Agreement.  To exercise this Option, Optionee (or in
the case of exercise after Optionee’s death or incapacity, Optionee’s executor,
administrator, heir or legatee, as the case may be) must deliver to the Company
an executed stock option exercise agreement in a form as required by the
Company (the “Exercise Agreement”),
which shall set forth, inter alia, (i) Optionee’s election to
exercise the Option for the full number of Shares, (ii) any restrictions
imposed on the Shares and (iii) any representations, warranties and
agreements regarding Optionee’s investment intent and access to information as
may be required by the Company to comply with applicable securities laws.  If someone other than Optionee exercises the
Option, then such person must submit documentation reasonably acceptable to the
Company verifying that such person has the legal right to exercise the Option and
such person shall be subject to all of the restrictions contained herein as if
such person were the Optionee.  The date
of exercise of the Option shall be the date on which written notice of exercise
is hand delivered to the Company, during normal business hours or, if sent
electronically, the date on which it is actually transmitted, during normal
business hours, or if mailed, the date on which it is postmarked, provided such
notice is actually received.

 

3.2          Limitations on Exercise.  The Option may not be exercised unless such exercise is in compliance with all applicable
federal and state securities laws, as they are in effect on the date of
exercise.  The Option may not be
exercised for less than the Total Option Shares.

 

3.3          Payment.  The Exercise Agreement shall be accompanied by full payment
of the Exercise Price for the shares being purchased in cash (by check), or
where permitted by law:

 

(a)           if the Company so allows, in its sole
discretion, by surrender of shares of the Company’s Common Stock that (i) either
(A) have been owned by Optionee for more than six (6) months and have
been paid for within the meaning of SEC Rule 144 (and, if such shares were
purchased from the Company by use of a promissory note, such note has been
fully paid with respect to such shares); or (B) were obtained by Optionee
in the open public market; and (ii) are clear of all liens, claims,
encumbrances or security interests;

 

(b)           if the Company so allows, in its sole
discretion, and provided that a public market for the Company’s stock exists: (i) through
a “same day sale” commitment from Optionee and a broker-dealer that is a member
of the National Association of Securities Dealers (an “NASD Dealer”) whereby Optionee
irrevocably elects to exercise the Option and to sell a 

 

2

 

portion of the Shares so
purchased sufficient to pay for the total Exercise Price and whereby the NASD
Dealer irrevocably commits upon receipt of such Shares to forward the total
Exercise Price directly to the Company, or (ii) through a “margin”
commitment from Optionee and an NASD Dealer whereby Optionee irrevocably elects
to exercise the Option and to pledge the Shares so purchased to the NASD Dealer
in a margin account as security for a loan from the NASD Dealer in the amount
of the total Exercise Price, and whereby the NASD Dealer irrevocably commits
upon receipt of such Shares to forward the total Exercise Price directly to the
Company; or

 

(c)            in cash; or by check;

 

(d)            by any combination of the foregoing.

 

3.4          Tax Withholding.  Prior to the issuance of the Shares upon exercise of
the Option, Optionee must pay or provide for any applicable federal, state and
local withholding obligations of the Company. 
If the Company permits, Optionee may provide for payment of withholding
taxes upon exercise of the Option by requesting that the Company retain the minimum number of Shares with a fair market value,
as determined in good faith by the Board of  Directors of the Company, equal to the minimum amount of taxes required
to be withheld; but in no event will the Company withhold Shares if such
withholding would result in adverse accounting
consequences to the Company.  In such
case, the Company shall issue the net number of Shares to the Optionee
by deducting the Shares retained from the Shares issuable upon exercise.

 

3.5          Issuance of Shares.  Provided that the Exercise Agreement and payment are
in form and substance satisfactory to the Company, the Company shall issue the
Shares registered in the name of Optionee, Optionee’s authorized assignee, or
Optionee’s legal representative, and shall deliver certificates representing
the Shares with the appropriate legends affixed thereto.

 

4.             COMPLIANCE WITH LAWS AND
REGULATIONS.  The exercise of the Option and the
issuance and transfer of Shares shall be subject to compliance by the Company
and Optionee with all applicable requirements of federal and state securities
laws and with all applicable requirements of
any stock exchange on which the Company’s Common Stock may be listed at
the time of such issuance or transfer.

 

5.             NONTRANSFERABILITY OF
OPTION.  The Option may not be transferred in any manner other than by will or by the laws of
descent and distribution and by instrument to an inter vivos or
testamentary trust in which the options are to be passed to beneficiaries upon
the death of the trustor (settlor), or by gift to “immediate family” as that
term is defined in 17 C.F.R.  240.16a-1(e), and may be exercised during the
lifetime of Optionee only by Optionee or in the event of Optionee’s
incapacity, by Optionee’s legal representative. 
The terms of this Agreement shall be binding upon the executors,
administrators, successors and assigns of Optionee.

 

6.             COMPANY’S RIGHT OF FIRST
REFUSAL.

 

6.1          Right of First Refusal.  Before the Shares acquired upon exercise of this
Option held by Optionee or any transferee (either being referred to herein as
the “Holder”)
may 

 

3

 

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”).

 

6.2          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).

 

6.3          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 Offered Price (“Purchase Price”). 
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.

 

6.4          Payment.  Payment of the Purchase Price shall be made, at the
option of the Company or its assignee(s), by cash or check.

 

6.5          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 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 obligations in this Agreement shall continue to
apply to the Shares.  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.

 

6.6          Exception for Certain
Transfers.  Notwithstanding anything to the contrary
contained in this Section, the foregoing restrictions shall not apply to (i) if
the Optionee is an individual, the transfer of any or all of the Shares either
during his or her lifetime or upon death, by bona fide gift, will or intestacy,
to his or her Immediate Family or to a trust or limited partnership the
beneficiaries or members of which are exclusively the undersigned and/or a
member or members of his or her Immediate Family, (ii) if the Optionee is
a trust, the distribution of any or all of
the Shares to its beneficiaries, or (iii) if the Optionee is a
corporation, partnership or a limited liability company, the
distribution of any or all of the Shares to its shareholders, partners or
members (each of the foregoing, a “Permitted Transfer”).  “Immediate Family” as used herein shall
mean spouse, lineal descendant or antecedent, father, mother, brother or
sister.  In such case, the transferee or
other recipient shall receive and hold the Shares so transferred subject to the provisions of this Agreement and there
shall be no further transfer of such Shares except in accordance with
the terms of this Section.

 

4

 

6.7          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
Securities Act of 1933, as amended (the “Securities Act”).

 

7.             INVESTMENT REPRESENTATIONS.

 

The
Optionee hereby represents and warrants to and agrees with the Company as
follows:

 

7.1          Acquisition of Shares
for Own Account.  The Optionee will acquire the Shares, if
at all, pursuant to this Agreement with the Optionee’s own funds.  The Shares will be acquired, if at all, for the Optionee’s own account, not as a nominee or
agent for any other person or firm. 
No one else has or will have on any exercise of the Option or any
portion thereof any interest, beneficial or otherwise, in any of the Shares to
be acquired on such exercise.  The
Optionee is not, and prior to any exercise of the Option will not be, obligated
to transfer any of the Shares or any interest therein to anyone else and the
Optionee does not and will not have any agreement or understandings to do so.

 

7.2          Shares May Be “Restricted
Securities” and Certificates Legended.  The Optionee
understands and agrees that:

 

7.2.1         The Shares, if and when issued,
may be “restricted securities,” as that term is defined in Rule 144 under the Securities
Act and, accordingly, the Optionee may be  required
to hold the Shares indefinitely unless they are registered under the Securities
Act or an exemption from such registration is
available;

 

7.2.2         The Company is as of the date hereof not
under any obligation to register the Shares under the Securities Act, with any
state securities commission or with any stock exchange or to comply with any
exemptions thereunder; and

 

7.2.3         The Company shall cause legends set forth
below or legends substantially equivalent thereto, to be placed upon any
certificates representing any Shares received by the Optionee on exercise of
the Option, which legend restricts the sale, transfer or disposition of the
Shares otherwise than in accordance with this Agreement, as well as any other
legends as the Company may deem appropriate or that may be required by the
Company or by the applicable state or federal securities laws or such other
agreements to which the Optionee is a party:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (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, THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR SUCH TRANSACTION COMPLIES WITH RULES PROMULGATED BY THE SECURITIES
AND EXCHANGE COMMISSION UNDER SAID ACT.

 

5

 

IN ADDITION, SALE, TRANSFER, ENCUMBRANCE, HYPOTHECATION,
GIFT OR OTHER DISPOSITION OR ALIENATION OF SUCH SHARES OR ANY INTEREST THEREIN
IS RESTRICTED BY AND SUBJECT TO A STOCK OPTION AGREEMENT A COPY OF WHICH MAY BE
INSPECTED AT THE PRINCIPAL OFFICE OF THE ISSUER AND ALL OF THE PROVISIONS OF WHICH ARE
INCORPORATED BY REFERENCE IN THIS
CERTIFICATE.

 

7.3          Agreement to Refrain
from Resales.  The Optionee agrees that, notwithstanding
any provision hereof to the contrary, the Optionee shall in no event make any
disposition of all or any part of or interest in the Shares and that such
Shares shall not be encumbered, pledged, hypothecated, sold or transferred by
the Optionee nor shall the Optionee receive any consideration for such Shares
or for any interest therein from any person, unless and until prior to any
proposed transfer, encumbrance, disposition, pledge, hypothecation or sale of
any Shares, either (1) a registration statement on form S-1 or S-8 (or any
other form replacing such form or appropriate for the purpose under the
Securities Act) with respect to such shares proposed to be transferred or
otherwise disposed of shall be then effective or (2) (i) the Optionee
shall have notified the Company of the proposed disposition and shall have
furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, (ii) the Optionee shall have
furnished the Company with an opinion of counsel in form and substance
satisfactory to the Company to the effect that such disposition will not
require registration of any such Shares under
the Securities Act or qualification of any such shares under  any other securities law, (iii) such opinion
of counsel shall have been concurred in by counsel for the Company and (iv) the
Company shall have advised the Optionee of such concurrence.

 

8.             LOCK-UP PERIOD.  Optionee 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, Optionee
(or any transferee) 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.

 

9.             ADJUSTMENTS UPON CHANGES
IN CAPITALIZATION; DISSOLUTION AND LIQUIDATION.

 

9.1          Changes in
Capitalization.  Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by
the Option, as well as the price per share of Common Stock covered by the
Option, shall be proportionately adjusted for any increase or decrease in the
number of issued shares of Common Stock resulting from a stock split, reverse
stock split, stock dividend, combination or reclassification of the Common
Stock.  Such adjustment shall be made by
the Board, whose determination in that 

 

6

 

respect shall be final,
binding and conclusive.  Except as
expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of Shares subject to the Option.

 

9.2          Dissolution or
Liquidation.  In the event of the proposed dissolution
or liquidation of the Company, the Company shall notify the Optionee as soon as
practicable prior to the effective date of such proposed transaction.  The Company in its discretion may provide for
an Optionee to have the right to exercise his Option until fifteen (15) days
prior to such transaction as to all of the Shares covered thereby, including
Shares as to which the Option would not otherwise be exercisable.  In addition, the Company may provide that its
repurchase option applicable to any Shares purchased upon exercise of an Option
shall lapse as to all such Shares, provided the proposed dissolution or
liquidation takes place at the time and in the manner contemplated.  To the extent it has not been previously
exercised, the Option will terminate immediately prior to the consummation of
such proposed action.

 

10.          PRIVILEGES OF STOCK OWNERSHIP.  Optionee shall not have any of the rights of a
shareholder with respect to any Shares until the Shares are issued to Optionee.

 

11.          ENTIRE AGREEMENT AND SEVERABILITY.  This Agreement, together with the Repurchase
Agreement, constitute the entire agreement of the parties and supersede all
prior undertakings and agreements with respect to the subject matter
hereof.  If any provision of this
Agreement shall hereafter be held to be invalid, unenforceable or illegal in
whole or in part for any reason, (i) such provision shall be reformed to the
minimum extent necessary to cause such provision to be valid, enforceable and
legal while preserving the intent of the parties or (ii) if such provision
cannot be so reformed, such provision shall be severed from this Agreement and
an equitable adjustment shall be made to this Agreement so as to give effect to
the intent of the parties.  Neither such
reformation nor severance shall affect or impair the legality, validity or
enforceability of any other provision of this Agreement.

 

12.          NOTICES. 
Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the CEO of the
Company at its principal corporate offices. 
Any notice required to be given or delivered to Optionee shall be in
writing and addressed to Optionee at the address indicated herein or to such
other address as such party may designate in writing from time to time to the
Company.  All notices shall be deemed to
have been given or delivered upon: (i) personal delivery; (ii) three (3) days
after deposit in the United States mail by certified or registered mail (return
receipt requested); (iii) one (1) business day after deposit with any express
courier (prepaid); or (iv) one (1) business day after transmission by
facsimile.

 

13.          SUCCESSORS AND ASSIGNS. 
The Company may assign any of its rights under this Agreement including
its Right of First Refusal.  This
Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Company.  Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding upon
Optionee and Optionee’s heirs, executors, administrators, legal
representatives, successors and assigns.

 

7

 

14.          GOVERNING LAW. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of New York as such laws are applied to agreements to be
performed entirely within New York.

 

15.          ACCEPTANCE.  Optionee has read and understands the terms and
provisions of this Agreement, and accepts the Option subject to all the terms
and conditions of this Agreement.

 

16.          TAX ADVICE.  The Optionee hereby acknowledges and agrees that the
Company has made no warranties or representations to Optionee with respect to
the tax consequences of the transactions contemplated by this Agreement and
Optionee is in no manner relying on the Company or its representatives for an
assessment of such tax consequences.

 

8

 

IN
WITNESS WHEREOF, the Company has caused this Stock Option Agreement to be
executed by its duly authorized representative and Optionee has executed this
Stock Option Agreement, effective as of the Date of Grant.

 

	
  NEXSAN CORPORATION

  	
   

  	
  OPTIONEE

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gene Spies

  	
   

  	
  /s/ G.M. Weiss 

  
	
   

  	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  
	
  GENE
  SPIES 

  	
   

  	
  George M. Weiss 

  
	
  (Please print name)

  	
   

  	
  (Please print name)

  
	
   

  	
   

  	
   

  
	
  CFO

  	
   

  	
   

  
	
  (Please print title)

  	
   

  	
   

  

 

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Exhibit 10.1    
    

PERFORMANCE INCENTIVE PLAN

OF THE COCA-COLA COMPANY

As Amended and Restated as of January 1, 2008  

I. Plan Objective  

        The purpose of the Performance Incentive Plan of The Coca-Cola Company is to promote the interests of The Coca-Cola Company (the "Company") by providing
additional incentive for participating officers and other employees who contribute to the improvement of operating results of the Company and to reward outstanding performance on the part of those
individuals whose decisions and actions most significantly affect the growth and profitability and efficient operation of the Company. 

        The
Company intends for the Awards payable to certain Executives under this Plan to be performance-based compensation under Code Section 162(m). 

II. Definitions  

        The terms used herein will have the following meanings: 

        "Award"
means an amount calculated and awarded under the Plan to a Participant. 

        "Board"
means the Board of Directors of the Company. 

        "Code"
means the Internal Revenue Code of 1986, as amended. 

        "Company"
means The Coca-Cola Company. 

        "Compensation
Committee" means the Compensation Committee of the Board (or a subset thereof) consisting of not less than two members of the Board, each of whom is an "outside director"
under Code Section 162(m). 

        "Employee"
means any person regularly employed on a full-time or part-time basis by the Company or a Related Company. 

        "Executive"
means any Employee whose compensation is within the purview of the Compensation Committee pursuant to the Compensation Committee's practices and policies. 

        "Management
Committee" means the committee appointed by the Compensation Committee to administer the Plan. 

        "Minority-Owned
Related Company" means any corporation or business organization in which the Company owns, directly or indirectly, during the relevant time, 20% or more, but less than
50%, of the voting stock or capital. 

        "Participant"
means an Employee who satisfies the eligibility requirements set forth in Section IV of the Plan. 

        "Performance
Period" means the time period for which a Participant's performance is measured for purposes of receiving an Award. 

        "Plan"
means this Performance Incentive Plan of The Coca-Cola Company. 

        "Plan
Year" means the 12-month period beginning January 1 and ending December 31. 

        "Related
Company" means any corporation or business organization in which the Company owns, directly or indirectly, during the relevant time, either (i) 50% or more of the voting
stock or capital where such entity is not publicly held, or (ii) an interest which causes the other entity's financial results to be consolidated with the Company's financial results for
financial reporting purposes. 

 
III. Administration  

        The Plan will be administered by the Compensation Committee and/or the Management Committee. No person, other than members of these committees, shall have any
discretion concerning decisions regarding the Plan. The Compensation Committee and/or the Management Committee, in its sole discretion, will determine which of the Participants to whom, and the time
or times at which, Awards will be granted under the Plan, and the other conditions of the grant of the Awards. The provisions and conditions of the grants of Awards need not be the same with respect
to each grantee or with respect to each Award. 

        The
Compensation Committee will, subject to the provisions of the Plan, establish such rules and regulations as it deems necessary or advisable for the proper administration of the Plan,
and will make determinations and will take such other action in connection with or in relation to accomplishing the objectives of the Plan as it deems necessary or advisable. Each determination or
other action made or taken by the Compensation Committee or the Management Committee pursuant to the Plan, including interpretation of the Plan and the specific conditions and provisions of the Awards
granted hereunder will be final and conclusive for all purposes and upon all persons including, but without limitation, the Company, any Related Company, the Compensation Committee, the Management
Committee, the Board, officers, the affected Employees of the Company or Related Companies, and any Participant or former Participant under the Plan, as well as their respective successors in
interest. 

 
 

IV. Eligibility and Participation    
    

        a.    Eligibility.    Eligibility for participation in the Plan is determined in the sole
discretion of the Compensation Committee or the Management Committee. An Employee is eligible to participate in the Plan if 1) the Employee is compensated in an amount at least equal to the
minimum salary grade guideline established annually by the Management Committee, and 2) the Employee is recommended for participation in the Plan by his or her immediate superior and is
approved for such participation by the operating head of the Employee's unit. 

        The
fact that an Employee is eligible to participate in the Plan in one Plan Year does not assure that the Employee will be eligible to participate in any subsequent year. The fact that
an Employee is eligible to participate in the Plan for any Plan Year does not mean that the Employee will receive an Award in any Plan Year. The Compensation Committee or the Management Committee will
determine an Employee's eligibility for participation in the Plan from time to time prior to or during each Plan Year. 

        b.    Participation.    In the case of Executives, generally, the Compensation Committee
annually will select the Participants no later than 90 days after the beginning of a Performance Period (or, if shorter, before 25% of the Performance Period has elapsed) in accordance with
Code Section 162(m). Following such selection by the Compensation Committee, the Participants will be advised they are participants in the Plan for a Performance Period. 

 
 

V. Performance Criteria and Performance Goals    
    

        a.    Performance Criteria.    Performance will be measured based upon one or more
objective criteria for each Performance Period. Criteria will be measured over the Performance Period. No later than 90 days of the beginning of a Performance Period (or, if shorter, before 25%
of the Performance Period has elapsed), the Compensation Committee shall specify in writing which of the following criteria will apply during such Performance Period, as well as any applicable
matrices, schedules, or 

2

 

formulae
applicable to weighting of such criteria in determining performance. Only Performance Criteria that have been approved by shareowners shall be used for awards to Executives. 

	•
	increase
in shareowner value;

	•
	earnings
per share;

	•
	net
income;

	•
	return
on assets;

	•
	return
on shareowners' equity;

	•
	increase
in cash flow;

	•
	operating
profit or operating margins;

	•
	revenue
growth of the Company;

	•
	operating
expenses;

	•
	quality
as determined by the Company's Quality Index;

	•
	economic
profit;

	•
	return
on capital;

	•
	return
on invested capital;

	•
	earnings
before interest, taxes, depreciation and amortization;

	•
	earnings
before interest, taxes, and amortization;

	•
	goals
relating to acquisitions or divestitures;

	•
	unit
case volume;

	•
	operating
income;

	•
	brand
contribution;

	•
	value
share of Non Alcoholic Ready-To-Drink segment;

	•
	volume
share of Non Alcoholic Ready-To-Drink segment;

	•
	net
revenue;

	•
	gross
profit; and

	•
	profit
before tax. 

        b.    Performance Goals.    Using any applicable matrices, schedules, or formulae
applicable to weighting of the performance criteria, the Compensation Committee will develop, in writing, performance goals for the Participants for a Performance Period, no later than 90 days
of the start of the Performance Period (or, if shorter, before 25% of the Performance Period has elapsed) in which they would apply. The Compensation Committee shall have the right to use different
performance criteria for different Participants. When the Compensation Committee sets the performance goals for a Participant, the Compensation Committee shall establish the general, objective rules
which will be used to determine the extent, if any, that a Participant's performance goals have been met and the specific, objective rules, if any, regarding any exceptions to the use of such general
rules, and any such specific, objective rules may be designed as the Compensation Committee deems appropriate to take into account any extraordinary or one-time or other
non-recurring items of income or expense or gain or loss or any events, transactions or other circumstances that the Compensation Committee deems 

3

 

relevant
in light of the nature of the performance goals set for the Participant or the assumptions made by the Compensation Committee regarding such goals. 

        In
the case of an Executive, in the event that a Participant is assigned a performance goal following the time at which performance goals are normally established for the Performance
Period due to placement in a position, or due to a change in position after the start of the Performance Period, the Performance Period for such Participant may be the portion of the Plan Year or
original Performance Period remaining, whichever is applicable. In such case, the Compensation Committee will develop in writing
performance goals for each such Participant before 25% of the Performance Period in which they would apply elapses. 

 
 

VI. Awards    
    

        An Award to a Participant will be based on a percentage of the Participant's base salary and shall be established by the Compensation Committee or the Management
Committee. 

        The
Compensation Committee or the Management Committee may, in each of their respective sole discretion, adjust the Award for each Participant based upon that Participant's over
achievement or under achievement in terms of his or her individual performance and the performance of the Participant's operating unit during the Plan Year. However, if any amount of the Award is
based upon criteria other than objective measures established in accordance with Section V, the excess will not be performance based compensation under Code Section 162(m). 

        a.    Hiring or Termination During Performance Period.    An Employee who is selected as
a Participant after the beginning of a Plan Year or a Participant who retires, who dies, or whose employment is transferred to a Related Company or Minority-Owned Related Company prior to the end of
such Plan Year will be eligible to receive a pro rata share of an Award based on the number of months of participation during any portion of such Plan Year if, in the sole discretion of the
Compensation Committee or the Management Committee, such an award is merited. A Participant whose employment is otherwise terminated prior to the end of such Plan Year will not be eligible for an
Award. 

        b.    Termination of Employment Prior to Payment.    A Participant shall receive payment
of an Award for any Performance Period if his or her employment with the Company or a Related Company has terminated before the date the Award is actually paid unless the Compensation Committee in the
exercise of its absolute discretion affirmatively directs the Company not to pay such Award to, or on behalf of, such Participant. 

 
 

VII. Determination and Timing of Awards    
    

        At the end of each applicable Performance Period, the Compensation Committee shall certify the extent, if any, to which the measures established in accordance
with Section V have been met. All Awards to Participants who are Executives will be made by the Compensation Committee in its sole discretion. Awards to all other Participants shall be made by
the Management Committee in its sole discretion. Awards will be paid for a particular Plan Year on the March 15th following the end of the Plan Year, or if
March 15th is not a business day, the first business day immediately preceding the March 15th following the end of the Plan Year. 

 
 

VIII. Method of Payment of Awards    
    

        a.    Payments of Awards.    Except as otherwise provided in this Plan, Awards for each
Participant will be paid in cash. 

4

 

        b.    Deferral of Payment of Award.    An Award paid in cash may be deferred under The
Coca-Cola Company Deferred Compensation Plan (or comparable international plan, if any) if the language of the applicable plan so provides. 

        c.    Recapture of Award.    

          (i)  If,
within one year after receiving an Award, any Employee (a) renders services for any organization which, in the sole judgment of the Compensation Committee or
Management Committee, is or becomes competitive with the Company, or (b) is terminated for a violation of any written policy of the Company, the Employee shall reimburse the Company the full
amount of the Award. 

         (ii)  The
Company will seek to recoup any Award paid to any Executive if (a) the amount of such Award was based on the achievement of certain financial results that
were subsequently the subject of a restatement, (b) the Compensation Committee determines that such Executive engaged in misconduct that resulted in the obligation to restate, and (c) a
lower Award would have been made to the Executive based upon the restated financial results. 

        d.    Withholding for Taxes.    The Company will have the right to deduct from any and
all Award payments any taxes required to be withheld with respect to such payment, including hypothetical taxes under the Company's International Service Program Policy and/or Tax Equalization Policy.
For Participants who are International Service Associates or other international employees, all taxes remain the Participant's responsibility, except as expressly provided in the Company's
International Service Policy and/or Tax Equalization Policy. The Company and any Related Company (i) make no representations or undertaking regarding the treatment of any taxes in connection
with any Award; and (ii) do not commit to structure the terms of the Award to reduce or eliminate the Participant's liability for taxes. 

        e.    Payments to Estates.    Awards and interest thereon, if any, which are due to a
Participant pursuant to the provisions hereof and which remain unpaid at the time of his or her death will be paid in full to the Participant's estate. 

        f.    Offset for Monies Owed.    Any payments made under this Plan will be offset for any
monies that the Management Committee determines are owed to the Company or any Related Company. 

 
 

IX. Amendment and Termination    
    

        The Compensation Committee may amend, modify, suspend, reinstate or terminate this Plan in whole or in part at any time or from time to time; provided, however,
that no such action will adversely affect any right or obligation with respect to any Award theretofore made. The Compensation Committee and the Management Committee may deviate from the provisions of
this Plan to the extent such committee deems appropriate to conform to local, laws and practices. 

 
 

X. Applicable Law    
    

        The Plan and all rules and determinations made and taken pursuant hereto will be governed by the laws of the State of Delaware, to the extent not preempted by
federal law, and construed accordingly. 

 
 

XI. Effect on Benefit Plans    
    

        Awards will not be included in the computation of benefits under any group life insurance plan, travel accident insurance plan, personal accident insurance plan
or under Company policies such as severance pay and payment for accrued vacation, unless required by applicable laws. 

5

 
 
 

XII. Change in Control    
    

        If there is a Change in Control as defined in this Section XII at any time during a Plan Year, (1) the Compensation Committee or the Management
Committee promptly shall determine the Award which would have been payable to each Participant under the Plan for such Plan Year if he had continued for work for the Company for such entire year and
all performance goals established under Section V had been met in full for such Plan Year by multiplying his target percentage by his annual salary as in effect on the date of such Change in
Control and (2) each such Participant's nonforfeitable interest in his Award (as so determined by the Compensation Committee or the Management Committee) thereafter shall be determined by
multiplying such Award by a fraction, the numerator of which shall be the number of full, calendar months he is an employee of the Company during such Plan Year and the denominator is 12 or the number
of full calendar months the Plan is in effect during such Plan Year, whichever is less. The payment of a Participant's nonforfeitable interest in his Award under this Section XII shall be made
in cash as soon as practicable after his employment by the Company terminates or as soon as practicable after the end of such Plan Year, whichever comes first. 

        A
"Change in Control," for purposes of this Section XII, will mean a change in control of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934 (the "Exchange Act") as in effect on January 1, 2004, provided that such a change in control
will be deemed to have occurred at such time as (i) any "person" (as that term is used in Sections 13(d) and 14(d)(2) of the Exchange Act as in effect on January 1, 2004) is or
becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act as in effect on January 1, 2004) directly or indirectly, of securities representing 20% or more
of the combined voting power for election of directors of the then outstanding securities of the Company or any successor of the Company; (ii) during any period of two consecutive years or
less, individuals who at the beginning of such period constituted the Board cease, for any reason, to constitute at least a majority of the Board, unless the election or nomination for election of
each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period; (iii) the shareowners of the
Company approve any merger or consolidation as a result of which its stock will be changed, converted or exchanged (other than a merger with a wholly-owned subsidiary of the Company) or any
liquidation of the Company or any sale or other disposition of 50% or more of the assets or earning power of the Company, and such merger, consolidation, liquidation or sale is completed; or
(iv) the shareowners of the Company approve any merger or consolidation to which the Company is a party as a result of which the persons who were shareowners of the Company immediately prior to
the effective date of the merger or consolidation will have beneficial ownership of less than 50% of the combined voting power for election of directors of the surviving corporation following the
effective date of such merger or consolidation, and such merger, consolidation, liquidation or sale is completed; provided, however, that no Change in Control will be deemed to have occurred if, prior
to such time as a Change in Control would otherwise be deemed to have occurred, the Board determines otherwise. Additionally, no Change in Control will be deemed to have occurred under
clause (i) if, subsequent to such time as a Change of Control would otherwise be deemed to have occurred, a majority of the Directors in office prior to the acquisition of the securities by
such person determines otherwise. 

6

QuickLinks

Exhibit 10.1

IV. Eligibility and Participation

V. Performance Criteria and Performance Goals

VI. Awards

VII. Determination and Timing of Awards

VIII. Method of Payment of Awards

IX. Amendment and Termination

X. Applicable Law

XI. Effect on Benefit Plans

XII. Change in Control

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