Document:

Exhibit 4.9

 

	RIGHTS CERTIFICATE #:	 	NUMBER OF RIGHTS

THE TERMS AND CONDITIONS OF THE
RIGHTS OFFERING ARE SET FORTH IN THE COMPANY'S PROSPECTUS DATED _____ __, 2015 (THE "PROSPECTUS") AND ARE
INCORPORATED HEREIN BY REFERENCE. COPIES OF THE PROSPECTUS ARE AVAILABLE UPON REQUEST FROM INVESTORCOM, INC.,
 THE
INFORMATION AGENT, BY EMAIL AT info@investor-com.com, BY TELEPHONE AT (877) 972-0090
 OR BY MAIL AT INVESTORCOM,
INC., 65 LOCUST AVENUE, NEW CANAAN, CT 06840.

 

Crossroads Systems, Inc.

Incorporated under the laws of the State
of Delaware

 

NON - TRANSFERABLE SUBSCRIPTION RIGHTS
CERTIFICATE

 

Evidencing Non - Transferable Subscription
Rights to Purchase Shares of Common Stock of Crossroads Systems, Inc.

 

Subscription Price:$____ per Share

 

THE SUBSCRIPTION RIGHTS WILL EXPIRE
IF NOT EXERCISED ON OR BEFORE _____ P.M., NEW YORK CITY TIME, ON _______ __, 2015, UNLESS EXTENDED BY THE COMPANY

 

REGISTERED

OWNER:

 

THIS CERTIFIES THAT the registered owner whose
name is inscribed hereon is the owner of the number of non-transferable subscription rights (“Rights”) set forth
above. Each whole Right entitles the holder thereof to subscribe for and purchase ________ shares of Common Stock, with a par
value of $0.001 per share, of Crossroads Systems, Inc., a Delaware corporation, at a subscription price of $____ per share
(the “Basic Subscription Right”), pursuant to a rights offering (the “Rights Offering”), on the terms
and subject to the conditions set forth in the Prospectus and the “Instructions as to Use of Crossroads Systems, Inc.
Subscription Rights Certificates” accompanying this Subscription Rights Certificate. If any shares of Common Stock
available for purchase in the Rights Offering are not purchased by other holders of Rights pursuant to the exercise
of their Basic Subscription Right (the “Excess Shares”), any Rights holder that exercises its Basic Subscription
Right in full may subscribe for a number of Excess Shares pursuant to the terms and conditions of the Rights Offering,
subject to the NOL Protection Mechanics, as described in the Prospectus (the “Over-Subscription Privilege”). The
Rights represented by this Subscription Rights Certificate may be exercised by completing Form 1 and any other appropriate
forms on the reverse side hereof and by retuning the full payment of the subscription price for each share of Common Stock in
accordance with the “Instructions as to Use of Sample corporation, Inc. Subscription Rights Certificates” that
accompany this Subscription Rights Certificate. 

 

This Subscription Rights Certificate
is not valid unless countersigned by the subscription agent and registered by the registrar.

 

Witness the seal of Crossroads
Systems, Inc. and the signatures of its duly authorized officers.

 

Dated:

 

	_________________________________	 	_________________________________
	President, Chief Executive Officer	 	Secretary
	and Principal Executive Officer	 	 

 

 

 

    	 

    	 

    

 

DELIVERY OPTIONS FOR SUBSCRIPTION RIGHTS
CERTIFICATE

 

Delivery other than in the manner or to
the address listed below will not constitute valid delivery.

If delivering by mail, hand or overnight
courier:

American Stock Transfer & Trust Company,
LLC

Operations Center

Attn: Reorganization Department

6201 15th Avenue

Brooklyn, New York 11219

 

PLEASE PRINT ALL INFORMATION CLEARLY
AND LEGIBLY.

 

FORM 1-EXERCISE OF SUBSCRIPTION RIGHTS

 

To subscribe for shares pursuant
to your Basic Subscription Right, please complete lines (a) and (c) and sign under Form 3 below. To subscribe for shares pursuant
to your Over-Subscription Privilege, please also complete line (b) and sign under Form 3 below. To the extent you subscribe for
more Shares than you are entitled under either the Basic Subscription Right or the Over-Subscription Privilege, you will be deemed
to have elected to purchase the maximum number of shares for which you are entitled to subscribe under the Basic Subscription Right
or Over-Subscription Privilege, as applicable.

 

(a) EXERCISE OF BASIC SUBSCRIPTION RIGHT:

 

I apply for ______________ shares x $ ____                      =   $_______________

  (no. of new shares)               (subscription price)      (amount
enclosed)

 

(b) EXERCISE OF OVER-SUBSCRIPTION PRIVILEGE

 

If you have exercised your Basic
Subscription Right in full and wish to subscribe for additional shares pursuant to your Over-Subscription Privilege:

 

I apply for ______________ shares x $ ____                      =   $_______________

  (no. of new shares)               (subscription price)      (amount
enclosed)

 

(c) Total Amount of Payment
Enclosed = $__________________

 

METHOD OF PAYMENT (CHECK ONE)

 

		 ̈	Check or bank draft payable to “American
Stock Transfer & Trust Company, LLC as Subscription Agent.”

		 ̈	Wire transfer of immediately available
funds directly to the account maintained by American Stock Transfer & Trust Company, LLC, as Subscription Agent, for purposes
of accepting subscriptions in this Rights Offering at JPMorgan Chase Bank, 55 Water Street, New York, New York 10005, ABA #[_______],
Account # [_______] American Stock Transfer FBO Crossroads Systems, Inc., with reference to the rights holder's name.

 

FORM 2-DELIVERY TO DIFFERENT ADDRESS

 

If you wish for the Common Stock
underlying your subscription rights, a certificate representing unexercised subscription rights or the proceeds of any sale of
subscription rights to be delivered to an address different from that shown on the face of this Subscription Rights Certificate,
please enter the alternate address below, sign under Form 3 and have your signature guaranteed under Form 4.

 

 

 

 

 

 

 

FORM 3-SIGNATURE

 

TO SUBSCRIBE: I acknowledge that
I have received the Prospectus for this Rights Offering and I hereby irrevocably subscribe for the number of shares indicated above
on the terms and conditions specified in the Prospectus. By signing below, I confirm that (1) the protection mechanics described
in the Prospectus are valid, binding and enforceable against me; (2) any purported exercise of Rights, in violation of the protection
mechanics section, will be void and of no force and effect; (3) the Company has the right to void and cancel (and treat as if never
exercised) any exercise of Rights, and shares issued pursuant to an exercise of Rights, if any of the agreements, representations
or warranties of mine in the subscription documents are false; and (4) I have contacted the Information Agent as requested in the
Prospectus if I currently hold own more than, or would potentially increase my current holdings of the Company’s common stock
from fewer than 967,976 shares to greater than 967,976 shares by participating in the Rights Offering. Under penalties of perjury,
I certify that the information contained herein is true, complete and correct.

 

	Signature(s): 	 

 

IMPORTANT: The signature(s) must
correspond with the name(s) as printed on the reverse of this Subscription Rights Certificate in every particular, without alteration
or enlargement, or any other change whatsoever.

 

FORM 4-SIGNATURE GUARANTEE

 

This form must be completed if you have completed any
portion of Form 2.

  

	Signature Guaranteed: 	 
	 	(Name of Bank or Firm)

 

	By: 	 	 
	 	 	(Signature of Officer)

 

IMPORTANT: The signature(s) should
be guaranteed by an eligible guarantor institution (bank, stock broker, savings & loan association or credit union) with membership
in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.

 

FOR INSTRUCTIONS ON THE USE
OF CROSSROADS SYSTEMS, INC. SUBSCRIPTION RIGHTS CERTIFICATES, CONSULT INVESTORCOM, INC., THE INFORMATION AGENT, AT (877) 972-0090
OR BY E-MAIL AT INFO@INVESTOR-COM.COM.Exhibit 10.7

 

 

January 9, 2013

 

Mark Hood

 

RE: Severance Benefit Plan

 

Dear Mr. Hood,

 

We are pleased to inform
you that the Company’s Management has approved a special severance benefit program for you. The purpose of this letter agreement
is to set forth the terms and conditions of your severance benefits and to explain the limitations that will govern their overall
value.

 

Your severance package
will become payable should your employment terminate under certain circumstances including certain terminations following a substantial
change in ownership or control of the Company. To understand the full scope of your benefits, you should familiarize yourself with
the definitional provisions of Part One of this letter agreement. The benefits comprising your severance package are detailed in
Part Two, and the dollar limitations on the overall value of your benefit package and other applicable restrictions are specified
in Parts Three and Four, respectively. Part Five deals with ancillary matters affecting your severance arrangement.

 

Part
One – DEFINITIONS

 

For purposes of this
letter agreement, the following definitions will be in effect:

 

Base Salary means
the monthly rate of base salary in effect for you at the time of your Involuntary Termination. In the event of your Involuntary
Termination following a Change in Control, Base Salary means the greater of your monthly base salary immediately prior to the Change
in Control or the monthly rate of base salary in effect at the time of your Involuntary Termination.

 

Board means the
Company’s Board of Directors.

 

Change in Control
means a change in the ownership or control of the Company effected through any of the following transactions:

 

    	1

    	 

    

 

		(i)	a merger, consolidation or reorganization approved by the Company’s stockholders, unless
securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor
corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by
the persons who beneficially owned the Company’s outstanding voting securities immediately prior to such transaction,

 

		(ii)	any stockholder-approved sale, transfer or
other disposition of all or substantially all of the Company’s assets, 

 

		(iii)	the acquisition, directly or indirectly,
by any person or related group of persons (other than the Company or a person that directly or indirectly controls, is controlled
by or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Securities Exchange
Act of 1934, as amended) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding securities pursuant to a tender or exchange offer made directly to the Company’s stockholders; or

 

		(iv)	a change in the composition of the Board
over a period of thirty-six (36) consecutive months or less such that a majority of the Board members ceases, by reason of one
or more contested elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously
since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at
least a majority of the Board members described in clause (A) who were still in office at the time the Board approved such election
or nomination.

 

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

 

Common Stock means
the Company’s common stock.

 

Company means
Crossroads Systems, Inc., a Delaware corporation, or any successor corporation, whether or not resulting from a Change in Control.

 

Disability means
your inability to perform the normal and usual duties of your position with the Company by reason of any physical or medical impairment
which is expected to result in death or continue for a period of twelve (12) consecutive months or more.

 

Fair Market Value
means, with respect to the shares of Common Stock subject to any of your Options, the price per share as determined by the Board
of Directors of the Company.

 

    	2

    	 

    

 

Health Care Coverage
means the continued coverage to which you and your eligible dependents may become entitled under the Company’s health
care plans pursuant to the severance benefit provisions of Part Two of this letter agreement.

 

Incentive Stock Option
means an option which satisfies the requirements of Code Section 422.

 

Involuntary Termination
means (i) the involuntary termination of your employment with the Company other than a Termination for Cause or (ii) your voluntary
resignation within six (6) months following (A) a change in your position with the Company which materially reduces your duties
and responsibilities or the level of management to which you report, (B) a reduction in your level of compensation (including Base
Salary, fringe benefits and target bonus under any corporate-performance based bonus or incentive programs) by more than fifteen
percent (15%) with the exception of compensation reductions that are applied to all executive officers of the Company or (C) a
relocation of your principal place of employment by more than fifty (50) miles.

 

An Involuntary Termination
will not be deemed to occur in the event your employment terminates by reason of your death or Disability or a Termination for
Cause.

 

Option means any
outstanding option you hold under the Plan at the time of your Involuntary Termination. For purposes of this Agreement, your Options
will be divided into two (2) separate categories as follows:

 

		·	Acquisition-Accelerated Options: any outstanding Option (or installment thereof) which automatically
accelerates, pursuant to the acceleration provisions of the agreement evidencing that Option, upon a Change in Control.

 

		·	Severance-Accelerated Options: any outstanding Option (or installment thereof) which, pursuant
to Part Two of this letter agreement, accelerates upon an Involuntary Termination.

 

Option Parachute Payment
means, with respect to any Acquisition-Accelerated Option or any Severance-Accelerated Option, the portion of that Option deemed
to be a parachute payment under Code Section 280G and the Treasury Regulations issued thereunder. The portion of such Option which
is categorized as an Option Parachute Payment will be calculated in accordance with the valuation provisions established under
Code Section 280G and the applicable Treasury Regulations and will include an appropriate dollar adjustment to reflect the lapse
of your obligation to remain in the Company’s employ as a condition to the vesting of the accelerated installment. In no
event, however, will the Option Parachute Payment attributable to any Acquisition-Accelerated Option or Severance-Accelerated Option
(or accelerated installment) exceed the spread (the excess of the Fair Market Value of the accelerated option shares over the option
exercise price payable for those shares) existing at the time of acceleration.

 

    	3

    	 

    

 

Other Parachute Payment
means any payment in the nature of compensation (other than the benefits to which you become entitled under Part Two of this letter
agreement) which are made to you in connection with the Change in Control and which accordingly qualify as parachute payments within
the meaning of Code Section 280G(b)(2) and the Treasury Regulations issued thereunder. Your Other Parachute Payment will include
(without limitation) the Present Value, measured as of the Change in Control, of the aggregate Option Parachute Payment attributable
to your Acquisition-Accelerated Options (if any).

 

Parachute Payment
means any payment or benefit provided you under Part Two of this letter agreement (other than the Option Parachute Payment attributable
to your Severance-Accelerated Options) which is deemed to constitute a parachute payment within the meaning of Code Section 280G(b)(2)
and the Treasury Regulations issued thereunder.

 

Plan means (i)
the Company’s 1996 Stock Option/Stock Issuance Plan, (ii) the Company’s 1999 Stock Incentive Plan, as amended or restated
from time to time, and (ii) any successor stock incentive plan subsequently implemented by the Company.

 

Present Value
means the value, determined as of the date of the Change in Control, of any payment in the nature of compensation to which you
become entitled in connection with the Change in Control or your subsequent Involuntary Termination, including (without limitation)
the Option Parachute Payment attributable to your Severance-Accelerated Options, the additional benefits to which you become entitled
under Part Two of this letter agreement, and the Option Parachute Payment attributable to your Acquisition-Accelerated Options.
The Present Value of each such payment will be determined in accordance with the provisions of Code Section 280G(d)(4), utilizing
a discount rate equal to one hundred twenty percent (120%) of the applicable Federal rate in effect at the time of such determination,
compounded semi-annually to the effective date of the Change in Control.

 

Severance Period
means the number of months for which you will receive severance payments pursuant to Paragraph A.2 of Part Two of this letter agreement.

 

Termination for Cause
means the Company’s termination of your employment for any of the following reasons: (i) your commission of any act of fraud,
embezzlement or dishonesty, (ii) your unauthorized use or disclosure of any confidential information or trade secrets of the Company,
(iii) any intentional misconduct by you, whether by omission or commission, which has an adverse effect upon the Company’s
business or affairs as determined in the sole discretion of the Company’s Board of Directors, (iv) your breach of the Company’s
Confidentiality, Proprietary Information and Inventions Agreement, or (v) your continued failure to perform the major duties, functions
and responsibilities of your position after written notice from the Company identifying the deficiencies in your performance and
a reasonable cure period of not less than thirty (30) days.

 

    	4

    	 

    

 

Part
Two – TERMINATION BENEFITS

 

Your benefits under
this Part Two will in all events be subject to the benefit limitations of Part Three and the restrictive covenants of Part Four
of this letter agreement and will be in lieu of all other severance benefits to which you might otherwise be entitled upon termination
of your employment.

 

		A.	Severance Benefits Upon An Involuntary Termination.

 

Should your employment
with the Company terminate by reason of an Involuntary Termination at any time, you will become entitled to receive the following
severance benefits, provided you execute and deliver to the Company, at the time of such Involuntary Termination, a General Release
in substantially the form of attached Exhibit A:

 

1.           Accelerated
Vesting of Outstanding Options Upon an Involuntary Termination.

 

Each outstanding Option
which you hold at the time of your Involuntary Termination, to the extent not otherwise exercisable for all the shares of Common
Stock subject to that Option as fully vested shares, will immediately vest in full and become exercisable. Each such accelerated
Option will remain exercisable until the earlier of (x) the expiration of the option term or (y) the end of the twelve (12)-month
period following the date of your Involuntary Termination. Any Options not exercised prior to the expiration of the applicable
post-service exercise period will lapse and cease to remain exercisable. As a result of the extension of the post-termination exercise
periods for Options outstanding on the date of this agreement, those Options, to the extent designated as Incentive Options, will
no longer be treated as Incentive Options for Federal tax purposes; instead, such Options will be treated as Non-Statutory Options
for Federal tax purposes and accordingly you will recognize ordinary income upon exercise of such Options. All such income will
be subject to applicable income and employment withholding taxes.

 

2.            Severance Payment.

 

Following your Involuntary
Termination, you will receive severance payments from the Company equal to your monthly rate of Base Salary for a period of twelve
(12) months. The salary continuation payments shall be paid to you following your Involuntary Termination in accordance with
the Company’s normal payroll practices over such period and subject to all applicable withholding taxes. The payments will
immediately terminate in the event you fail to abide by the restrictive covenants set forth in Part Four of this letter agreement.

 

    	5

    	 

    

 

3.           Health Care
Coverage. 

 

The Company will, at
its expense, continue to provide you and your eligible dependents with the Company’s paid portion of health care coverage
under the Company’s medical/dental plan until the earlier of (i) the expiration of that number of months equal to
one-half of the Severance Period measured from the first day of the first month following the effective date of your Involuntary
Termination or (ii) the first date that you are covered under another employer’s health benefit program which provides substantially
the same level of benefits without exclusion for pre-existing medical conditions. Such Health Care Coverage will be in lieu of
any other continued health care coverage to which you or your dependents would otherwise be entitled at your own cost under Code
Section 4980B by reason of your termination of employment.

 

Part
Three — LIMITATION ON BENEFITS

 

		1.	Benefit Limit.

 

The
aggregate Present Value (measured as of the Change in Control) of the benefits to which you become entitled under Part Two at the
time of your Involuntary Termination, namely, the salary continuation payments, the Option Parachute Payment attributable to your
Severance-Accelerated Options and your Health-Care Coverage, will in no event exceed in amount the dollar amount (the “Benefit
Limit”) which yields you the greatest after-tax amount of benefits under Part Two of this
letter agreement after taking into account any excise tax imposed under Code Section 4999 on the payments and benefits which are
provided you under Part Two or which constitute Other Parachute Payments. 

 

The Option Parachute
Payment attributable to the accelerated vesting of your Acquisition-Accelerated Options (if any) at the time of any Change in Control
shall also be subject to the Benefit Limit.

 

For purposes of applying
the Benefit Limit to your benefits under Part Two, the value of your non-competition covenant under Part Four of this letter agreement
shall be determined through independent appraisal by a nationally-recognized independent accounting firm acceptable to both you
and the Company and obtained solely at the Company’s cost, and a portion of your Part Two benefits shall, to the extent of
such appraised value, be specifically allocated as reasonable compensation for your non-competition covenant.

 

		2.	Resolution Procedure.

 

In
the event there is any disagreement between you and the Company as to whether one or more payments to which you become entitled
in connection with either the Change in Control or your Involuntary Termination constitute Parachute Payments, Option Parachute
Payments or Other Parachute Payments or as to the determination of the Present Value of any of those payments, such dispute will
be resolved as follows:

 

(i)           In
the event temporary, proposed or final Treasury Regulations in effect at the
time under Code Section 280G (or applicable judicial decisions) specifically address the status of any such payment or the method
of valuation therefor, the characterization afforded to such payment by the Regulations (or such decisions) will, together with
the applicable valuation methodology, be controlling.

 

    	6

    	 

    

  

(ii)           In
the event Treasury Regulations (or applicable judicial decisions) do not address the status of any payment in dispute, the matter
will be submitted for resolution to independent tax counsel mutually acceptable to you and the Company (“Independent
Counsel”). The resolution reached by Independent Counsel will be final and controlling;
provided, however, that if in the judgment of Independent Counsel the status of the payment in dispute can be resolved through
the obtainment of a private letter ruling from the Internal Revenue Service, a formal and proper request for such ruling will be
prepared and submitted by Independent Counsel, and the determination made by the Internal Revenue Service in the issued ruling
will be controlling. All expenses incurred in connection with the retention of Independent Counsel and (if applicable) the preparation
and submission of the ruling request will be shared equally by you and the Company.

 

(iii)           In
the event Treasury Regulations (or applicable judicial decisions) do not address the appropriate valuation methodology for any
payment in dispute, the Present Value thereof will, at the Independent Counsel’s election, be determined through an independent
third-party appraisal, and the expenses incurred in obtaining such appraisal will be shared equally by you and the Company.

 

3.           Status
of Benefits.

 

(i)           No
benefits shall be provided you under Part Two of this letter agreement (including the accelerated vesting of your outstanding Options,
the salary continuation payments and the Company-paid Health Care Coverage) until the Present Value of the Option Parachute Payment
attributable to both your Severance-Accelerated Options and your Acquisition-Accelerated Options has been determined and the status
of any payments in dispute under Paragraph 2 above has been resolved in accordance therewith. The post-service exercise period
in effect for your Options shall be stayed and shall not run until the resolution process hereunder is completed. 

 

(ii)           Once
the requisite determinations under Paragraph 2 have been made, then to the extent the aggregate Present Value, measured as of the
Change in Control, of (i) the Option Parachute Payment attributable to your Severance-Accelerated Options (or installments thereof)
plus (ii) the Parachute Payment attributable to your other benefit entitlements under Part Two of this letter agreement would,
when added to the Present Value of all your Other Parachute Payments (including the Option Parachute Payment attributable to your
Acquisition-Accelerated Options), exceed the Benefit Limit, first your salary continuation payments will be reduced and then the
period of your Company-paid Health Care Coverage will be shortened, to the extent necessary to assure that such Benefit Limit is
not exceeded. To the extent such Benefit Limit is still exceeded following such reductions, then the number of shares for which
your Options are to vest on an accelerated basis pursuant to Part Two (based on the amount of the Option Parachute Payment attributable
to each Option) shall be reduced to the extent necessary to eliminate such excess.

 

    	7

    	 

    

  

Part
Four  — SPECIAL RESTRICTIVE COVENANTS

 

		1.	Cessation of Benefits.

 

Your entitlement to your
salary continuation payments and Company-paid Health Care Coverage under this letter agreement will immediately cease, should you,
at any time during the one-year period following the termination of your employment (or such lesser period during which you are
entitled to receive such payments and Company-paid Health Care Coverage hereunder):

 

(i)           render,
anywhere in the United States, any services or provide any advice or assistance to any Competing Business, whether as an employee,
consultant, partner, principal, agent, representative, equity holder or in any other capacity, without the express prior written
consent of the Company. However, nothing in this Part Four, subpart 1(i) will limit your making any passive investment representing
an interest of less than two percent (2%) of an outstanding class of publicly-traded securities of any corporation or other enterprise;

 

(ii)           solicit
customers, clients, suppliers, agents or other persons or entities under contract or otherwise associated or doing business with
the Company and/or its controlled affiliates to reduce or alter any such association or business with the Company and/or its controlled
affiliates on behalf of any Competing Business; and/or

 

(iii)           solicit
any employee or contractor of the Company and/or its controlled affiliates to (a) alter or reduce such relationship with the Company,
and/or (b) accept employment, or enter into any consulting arrangement, with any person other than Company and/or its controlled
affiliates.

 

A Competing Business
shall mean any entity that offers products or services which are or may be competitive with those offered or proposed to be
offered by the Company.

 

    	8

    	 

    

 

Part
Five — MISCELLANEOUS

 

		1.	Amendment and Termination.

 

This letter agreement
may only be amended by written instrument signed by you and an authorized officer of the Company. This letter agreement shall remain
in effect through January 9, 2014, or any earlier termination of your employment with the Company. Provided you continue in the
Company’s employ, this letter agreement shall automatically be renewed for successive one (1)-year terms, beginning January
10, 2014, unless the Company provides you with written notice of termination of this letter agreement at least thirty (30) days
prior to the start of any such one (1)-year renewal period. Once a Change in Control occurs, this letter agreement may not be terminated
at any time prior to the expiration of the twelve (12)-month period following the effective date of that Change of Control, and
no subsequent termination of this letter agreement shall adversely affect your right to receive any benefits to which you may have
previously become entitled hereunder in connection with your Involuntary Termination.

 

		2.	Termination for Cause.

 

Should your employment
cease by reason of a Termination for Cause, then the Company will only be required to pay you (i) any unpaid compensation earned
for services previously rendered through the date of such termination and (ii) any accrued but unpaid vacation benefits or sick
days, and no benefits will be payable to you under Part Two of this letter agreement.

 

		3.	Death.

 

Should you die before
receipt of one or more salary continuation payments to which you become entitled under this letter agreement, then those payments
will be made to the executors or administrators of your estate. Should you die before you exercise all your outstanding Options
as accelerated hereunder, then such Options may be exercised, within twelve (12) months after your death, by the executors or administrators
of your estate or by persons to whom the Options are transferred pursuant to your will or in accordance with the laws of inheritance.
In no event, however, may any such Option be exercised after the specified expiration date of the option term.

 

		4.	Miscellaneous.

 

This letter agreement
will be binding upon the Company, its successors and assigns (including without limitation, the surviving entity in any Change
in Control) and is to be construed and interpreted under the laws of the State of Texas. This letter agreement supersedes all prior
agreements between you and the Company relating to the subject of severance benefits payable upon an Involuntary Termination [(including,
without limitation, that certain letter agreement regarding Severance Benefit Plan entered into between you and the Company, and
you will not be entitled to any other severance benefits upon such a termination other than those that are provided in this letter
agreement. If any provision of this letter agreement as applied to you or the Company or to any circumstance should be adjudged
by a court of competent jurisdiction to be void or unenforceable for any reason, the invalidity of that provision will in no way
affect (to the maximum extent permissible by law) the application of such provision under circumstances different from those adjudicated
by the court, the application of any other provision of this letter agreement, or the enforceability or invalidity of this letter
agreement as a whole. Should any provision of this letter agreement become or be deemed invalid, illegal or unenforceable in any
jurisdiction by reason of the scope, extent or duration of its coverage, then such provision will be deemed amended to the extent
necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially
altering the intention of the parties, then such provision will be stricken and the remainder of this letter agreement will continue
in full force and effect.

 

    	9

    	 

    

  

		5.	General Creditor Status.

 

All cash payments to
which you become entitled hereunder will be paid, when due, from the general assets of the Company, and no trust fund, escrow arrangement
or other segregated account will be established as a funding vehicle for such payment. Accordingly, your right (or the right of
the personal representatives or beneficiaries of your estate) to receive such cash payments hereunder will at all times be that
of a general creditor of the Company and will have no priority over the claims of other general creditors.

 

		6.	At Will Employment.

 

Nothing in this letter
agreement is intended to provide you with any right to continue in the employ of the Company (or any subsidiary) for any period
of specific duration or interfere with or otherwise restrict in any way your rights or the rights of the Company (or any subsidiary),
which rights are hereby expressly reserved by each, to terminate your employment at any time and for any reason, with or without
cause.

 

[Signature
Page Follows]

 

    	10

    	 

    

 

Please indicate your
agreement with the foregoing terms and conditions of your severance package (including, without limitation, the conversion of any
Incentive Options into Non-Statutory Options) by signing the Acceptance section of the enclosed copy of this letter below and returning
it to the Company.

 

	 	 	
        Very truly yours,

         

        CROSSROADS SYSTEMS, INC.

	 	 	 
	 	By:	/s/ Richard K. Coleman, Jr.
	 	 	Richard K. Coleman, Jr.
	 	Title:	Chief Executive Officer

  

ACCEPTANCE

 

I hereby agree to all
the terms and provisions of the foregoing letter agreement governing the special benefits to which I may become entitled in the
event my employment should terminate under certain prescribed circumstances including certain terminations following a substantial
change in control or ownership of the Company.

  

	 	Signature:	/s/ Mark Hood
	 	 	Mark Hood
	 	Dated:	 
	 	 	 
	 	Address	 

  

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EXHIBIT A

GENERAL RELEASE

 

By signing this
General Release (this “Release”) and accepting the severance being offered to [NAME OF EXECUTIVE] (“you”
or “You”) in the Severance Offer and General Release Letter Agreement to which this Release is an exhibit, you
agree to waive, release, and forever discharge Crossroads Systems, Inc. (the “Company”) and its parents, successors,
assigns, divisions, subsidiaries, affiliates, partners, officers, directors, executives, investors, shareholders, managers, supervisors,
employees, agents, attorneys and representatives (collectively the “Released Parties” or “Releasees”),
from any and all claims, demands, and causes of action which you have or claim to have, whether known or unknown, of whatever nature,
which exist or may exist as of the date of your execution of this Release. “Claims,” “demands,” and “causes
of action” include, but are not limited to, those based on contract, fraud, equity, tort, discrimination, sexual harassment,
retaliation, personal injury, constructive discharge, emotional distress, public policy, wage and hour law, defamation, claims
for debts, accounts, attorneys’ fees, compensatory damages, punitive damages, and/or liquidated damages, claims for vesting
or accelerated vesting of options to purchase the Company’s Common Stock, claims for any additional shares of the Company’s
Common Stock, and any and all claims arising under the Americans with Disabilities Act, the Family and Medical Leave Act, or any
other federal or state statute governing employment, including but not limited to Title VII of the Civil Rights Act of 1964, the
Employee Retirement Income Security Act of 1974, the Worker Adjustment Retraining and Notification Act, the Texas Labor Code, and
the Texas Commission on Human Rights Act, as such statutes may have been or may be amended from time to time.

 

You understand
and agree, in compliance with any statute or ordinance which requires a specific release of unknown claims or benefits, that this
Release includes a release of unknown claims, and you hereby expressly waive and relinquish any and all claims, rights or benefits
that you may have which are unknown to you at the time of the execution of this Release. You understand and agree that if, hereafter,
you discover facts different from or in addition to those which you now know or believe to be true, that the waivers and releases
of this Release shall be and remain effective in all respects notwithstanding such different or additional facts or the discovery
of such fact(s).

 

You represent
and warrant that you do not presently have on file, and further represent and warrant to the maximum extent allowed by law that
you will not hereafter file, any lawsuits, claims, charges, grievances or complaints against the Company and/or the Released Parties
in or with any administrative, state, federal or governmental entity, agency, board or court, or before any other tribunal or panel
or arbitrators, public or private, based upon any actions or omissions by the Company and/or the Released Parties occurring prior
to the Effective Date of this Release. You understand that nothing in this Release prevents you from filing a charge or complaint
with or from participating in an investigation or proceeding conducted by the EEOC or any other federal, state or local agency
charged with the enforcement of any employment laws. To the extent that you are still entitled to file an administrative charge
with any governmental agency, you hereby release any personal entitlement to reinstatement, back pay, or any other types of damages
or injunctive relief in connection with any civil action brought on your behalf after your filing of any administrative charge.

 

    	12

    	 

    

 

The only
claims that this Release does not include are claims related to your rights under the employment benefits plans of the
Company (as applicable to you on the date of your termination) and any claims that controlling law clearly states may not be
released by settlement. Nothing in this Release shall constitute or be treated as an admission of any wrongdoing or liability
on your part or on the part of the Company and/or the Released Parties. You acknowledge that you have been advised to consult
with an attorney of your choosing prior to entering into this Release.

 

Nothing
in this Release is intended to alter, modify or waive the Company’s and your continuing rights and obligations under
the Company’s Confidentiality, Proprietary Information and Inventions Agreement or its Indemnity Agreement, each signed
by you and each incorporated herein by this reference. You understand and agree that a breach of any continuing obligation
contained in the above agreements shall also constitute a breach of this Release. Finally, you represent and agree that you
are the sole and lawful owner of all rights, title and interest in and to all released matters, claims and demands arising
out of or in any way related to your employment with the Company and/or the termination thereof.

 

You acknowledge
that you have until [date] to consider this Release and that you received this Release on [date]. You must execute and
deliver this Release to [company representative] at the Company on [date] (the “Delivery Deadline”). This
Release will be deemed “delivered” to the Company when you have dated, signed and faxed or hand-delivered it to
[company representative] at the Company’s office located at 11000 N. Mo-Pac Expy Austin, TX 78759, on or before 5:00
p.m. on the Delivery Deadline. Should you desire to fax the executed Release to the Company instead, you should use the
following fax number: [fax #]. This Release will become effective on the date the executed document is delivered to the
Company (herein, the “Release Effective Date”).

 

[Signature Page Follows]

 

    	13

    	 

    

 

	[NAME OF EXECUTIVE]	 
	 	 	 
	 	 	 
	 	 	 
	Dated:	 	 

 

ACCEPTED AND ACKNOWLEDGED:

 

CROSSROADS SYSTEMS, INC.

 

	
        By:
	 	 
	Name:	 	 
	Title:	 	 
	Dated:	 	 

 

 

 

Headquarters
and Sales w 11000 North
MoPac Expressway w
Austin, Texas 78759 w
Phone: 512-349-0300 w
Fax: 512-349-0304

 

    	14

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