Document:

EXHIBIT
10.11

 

[Nexsan
Technologies Logo]

 

 

August 13, 2007

 

Re:          Offer of Employment by Nexsan
Technologies, Inc.

 

Dear Bob,

 

I am very pleased to confirm our offer to you of
full-time employment with Nexsan Technologies, Inc. (the “Company”).  You will report to myself (CEO).  Your title will be Senior Vice President,
Marketing.  Your start date is
anticipated to be September 10th, 2007.  The terms of our offer and the benefits
currently provided by the Company are as follows:

 

1.             Compensation.  Your base salary will be one hundred and
sixty thousand dollars ($160,000) per year and will be subject to periodic
review.  You will be paid according to
normal Nexsan payroll policy, which currently is once every two weeks.

 

2.             Bonus.  You will be eligible for a quarterly bonus of
up to ten thousand ($10,000) dollars per quarter (equivalent to forty thousand
dollars ($40,000) per year) based on, objectives to be set each calendar
quarter by myself, after consultation with you. 
The quarterly bonuses arc typically paid mid-way through the following
quarter.  You will, receive a pro-rata
bonus of the frill amount for the time until 1 Oct 2007.

 

3.             Stock Options.  In addition we will recommend to the Nexsan
Board of Directors that a grant of two hundred thousand (200,000) stock options
be allocated to you.  Nexsan’s Board of
Directors has sole discretion in granting stock options and for participation
in the Nexsan employee stock option plan. 
Your stock options will vest annually for the first year and then
quarterly for the remaining three years at the rate of 25% per year, over 4
years commencing on the date the stock options are approved by Nexsan’s Board
of Directors.

 

4.             Benefits.  In addition, you will be eligible to
participate in the following benefit plans on the first day of the month
following your date of hire.  At the
present time all premiums for both you and
your dependants are 100% covered by the
Company.  There is no cost to you.

 

·      Medical insurance

 

·      Dental insurance

 

·      401K retirement plan — employee
contributions only (no employer contributions)

 

·      Short term disability insurance

 

·      Long term disability insurance

 

·      Life insurance

 

 

·      Other employee benefit plans established by
the Company for its employees from time to time.

 

·      Company paid cell phone allowance.  You are allowed to own the cell phone
number.  The company will reimburse you
for the monthly cost once your cell phone plan is approved by your supervisor.

 

·      You shall also be entitled to a three (3) weeks
which is equal to fifteen (15) working days of vacation/PTO during the calendar
year.  The amount of vacation/PTO time
available to you during your first year is determined by proration based on the
number of full months of employment completed by you during the year.  After three years of employment, your
vacation/PTO will go up to 4 weeks (20 working days).

 

·      While a car allowance is not part of your
package, the use of your vehicle for company business is reimbursed on a
mileage basis.

 

Except as provided in this employment offer, the
Company reserves the right to change or otherwise modify, in its sole discretion,
the preceding terms of employment, as well as any of the terms set forth,
herein at any time in the future.

 

5.             Position Responsibilities.  The responsibilities of your position, Senior
Vice President, Marketing, will consist of, but not be limited to:

 

·      Developing and executing the Company’s
marketing plan and budget, once approved by the CEO

 

·      Managing the marketing communications
activities of the Company, including PR, tradeshows, web based marketing and
other activities, delivering objectives set by the CEO with strong input from
Sales Management, and within a defined budget

 

·      Strategic business development, in
co-ordination with Sales management

 

·      Managing product management activities at
some later stage (to be determined)

 

The responsibilities of your job may change from
time-to-time at the discretion of the CEO.

 

6.             Confidentiality.  As an employee of the Company, you will have
access to certain confidential information of the Company and you may, during
the course of your employment, develop certain information or inventions that
will be the property of the Company.  To
protect the interests of the Company, you will need to sign the Company’s
standard “Employee Invention Assignment and Confidentiality Agreement” as a
condition of your employment.  A copy of
this agreement is attached.  We wish to
impress upon you that we do not want you to, and we hereby direct you not to,
bring with you any confidential or proprietary

 

 

2

 

 

material of any former
employer or to violate any other obligations you may have to any former
employer.  During the period that you
render services to the Company, you agree to not engage in any employment,
business or activity that is in any way competitive with the business or
proposed business of the Company.  You
will disclose to the Company in writing any other gainful employment, business
or activity that you are currently associated with or participate in that
competes with the Company.  You will not
assist any other person or organization in competing with the Company or in
preparing to engage in competition with the business or proposed business of
the Company.  You represent that your
signing of this i) offer letter; ii) agreement(s) concerning stock options
granted to you, if any, under the Plan (as defined below); and iii) the Company’s
Employee Invention Assignment and Confidentiality Agreement and your
commencement of employment with the Company will not violate any agreement
currently in place between yourself and current or past employers.

 

7.             At Will Employment.  While we look forward to a long and
profitable relationship, should you decide to accept our offer, you will be an
at-will employee of the Company, which means the employment relationship can be
terminated by either of us for any reason, at any time, with or without prior
notice and with our without cause.  Any
statements or representations to the contrary (and, indeed, any statements
contradicting any provision in this letter) should be regarded by you as
ineffective.  Further, your participation
in any stock option or benefit program is not to be regarded as assuring you of
continuing employment for any particular period of time.  Any modification or change in your at will
employment status may only occur by way of a written employment agreement
signed by you and an Executive of the Company.

 

8.             Authorization to Work.  Please note that because of employer
regulations adopted in the Immigration Reform and Control Act of 1986, within
three (3) business days of starting your new position you will need to
present documentation demonstrating that you have authorization to work in the
United States.  If you have questions
about this requirement, which applies to U.S. citizens and non-U.S. citizens
alike, you may contact our personnel office.

 

9.             Arbitration.  You and the Company shall submit to mandatory
and exclusive binding arbitration of any controversy or claim arising out of,
or relating to, this Agreement or any breach hereof, provided, however,
that the parties retain their right to, and shall not be prohibited, limited or
in any other way restricted from, seeking or obtaining equitable relief from a
court having jurisdiction over the parties. 
Such arbitration shall be governed by the Federal Arbitration Act and
conducted through the American Arbitration Association in the [State of
California, Ventura County,] before a single neutral arbitrator, in accordance
with the National Rules for the Resolution of Employment Disputes of the
American Arbitration Association in effect at that time.  The parties may conduct only essential discovery
prior to the hearing, as defined by the AAA arbitrator.  The arbitrator shall issue a written decision
that contains the essential findings and conclusions on which the decision is
based.  You shall bear only those costs
of arbitration you would otherwise bear had you brought a claim covered by this
Agreement in court.  Judgment upon the
determination or award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.

 

 

3

 

 

10.           Background Check.  This offer may be contingent upon a
successful employment verification of criminal, education, and employment
background.  This offer can be rescinded
based upon data received in the verification.

 

11.           Acceptance.  If you decide to accept our offer, and I hope
you will, please sign the enclosed copy of this letter in the space indicated
and return it to me.  Your signature will
acknowledge that you have read and understood and agreed to the terms and
conditions of this offer letter mad the attached documents, if any.  Should you have anything else that you wish
to discuss, please do not hesitate to call me.

 

We are looking forward to you joining one of the most
dynamic teams in our industry that without your participation will not be the same.

 

Very truly yours,

 

	
   

  	
  /s/ Philip Black

  
	
   

  	
   

  
	
   

  	
  Philip Black

  
	
   

  	
  CEO

  

 

Attachments

 

I have read and understood this offer letter and
hereby acknowledge, accept and agree to the terms as set forth above and
further acknowledge that no other commitments were made to me as part of my
employment offer except as specifically set forth herein.

 

Robert
Woolery

 

	
   

  	
  /s/ Robert Woolery

  
	
   

  	
   

  
	
   

  	
  Date signed: 8/13/2007

  

 

 

4EXHIBIT 10.12

 

NEXSAN CORPORATION

 

[FORM OF] STOCK OPTION
AGREEMENT

 

STOCK OPTION AGREEMENT (the “Option
Agreement”), dated as of                   ,
           between                                             ,
a                             
corporation (the “Company”), and                                             
(the “Optionee”).

 

The Company’s Board of Directors has determined that
the objectives of the Company will be furthered by granting to the Optionee a
stock option.

 

In consideration of the foregoing and of the mutual
undertakings set forth in this Option Agreement, the Company and the Optionee
hereby agree as follows:

 

SECTION 1            Grant
of Option

 

The Company hereby grants to the Optionee a stock
option (the “Option”) to purchase                         
shares (the “Shares”) of common stock of the
Company (“Common Stock”) exercisable at $.            
per share (the “Exercise Price”).

 

SECTION 2            Exercisability

 

The Option is immediately exercisable as to all of the
Shares on the date hereof.  The
unexercised portion of the Option shall expire and cease to exercisable at
11:59 p.m. on the day immediately preceding the 10th anniversary of the
date hereof.

 

SECTION 3            Method
of Exercise

 

The Option (an Option may not be exercised for a
fraction of a share) shall be deemed exercised when the Company receives:  (a) written or electronic notice of
exercise on such form and in such manner as the Company may prescribe and (b) payment
of the full purchase price for the number of shares being purchased.  Such payment may be made by one or a
combination of the following methods: (1) by cash or (2) check.  It shall be a condition precedent to the
issuance of Shares upon exercise of the Option that the Optionee shall remit to
the Company an amount sufficient to satisfy all applicable withholding tax
requirements.  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, at its address as
provided in Section 8 of this Agreement, 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.

 

SECTION 4            Investment
Representations

 

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

 

SECTION 4.1  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, and not with the
funds of anyone else.  The Shares will be
acquired, if at all, for the Optionee’s own account, not as a nominee or agent
and not for the account of 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. 
The Optionee does not, and on any exercise of the Option will not,
intend to subdivide the Optionee’s acquisition of any Shares with anyone.

 

SECTION 4.2 
Shares May Be “Restricted Securities”; Certificates Representing
Shares May Be Legended

 

The Optionee understands
and agrees that:

 

SECTION 5.2.1  The Shares,
if and when issued, may be “restricted securities,” as that term is defined in Rule 144
under the Securities Act of 1933, as amended (the “Act”), and, accordingly, the
Optionee may be required to hold the Shares indefinitely unless they are
registered under the Act or an exemption from such registration is available;

 

SECTION 5.2.2  The Company
is not under any obligation to register the Shares under the Act or to comply
with any exemption thereunder; and

 

SECTION 5.2.3  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 Option
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:

 

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.

 

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.

 

 

2

 

 

SECTION 4.3  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 under the 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 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.

 

SECTION 5  Right
of First Refusal  Before any Shares
acquired upon exercise of its Option held by Optionee or any transferee (either
being sometimes referred to herein as the “Holder”) may be sold or otherwise
transferred (including transfer by gift or operation of law), the Company or
its assignee(s) shall have a right of first refusal to purchase the Shares
on the terms and conditions set forth in this Section (the “Right of First
Refusal”).

 

SECTION 5.1  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).

 

SECTION 5.2  Exercise of Right of First Refusal.  At any time within thirty (30) days after
receipt of the Notice, the Company and/or its assignee(s) may, by giving
written notice to the Holder, elect to purchase all or part of the Shares
proposed to be transferred to any one or more of the Proposed Transferees, at
the purchase price determined in accordance with subsection (c) below.

 

SECTION 5.3  Purchase Price.  The purchase price (“Purchase Price”)
for the Shares purchased by the Company or its assignee(s) under this Section shall
be the Offered 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.

 

SECTION 5.4  Payment.  Payment of the Purchase Price shall be made,
at the option of the Company or its assignee(s), (i) by cash or check, (ii) by
cancellation of all or a portion of any outstanding indebtedness of the Holder
to the Company (or, in the case of repurchase by an assignee, to the assignee),
or (iii) by any combination thereof within thirty (30) days after receipt
of the Notice or in the manner and at the times set forth in the Notice.

 

3

 

 

SECTION 5.5  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, that are not repurchased by the
Company, to that Proposed Transferee at the Offered Price or at a higher price,
provided that such sale or other transfer is consummated within one hundred
twenty (120) days after the date of the Notice and provided further that any
such sale or other transfer is effected in accordance with any applicable
securities laws and the Proposed Transferee agrees in writing that the
provisions of this Section shall continue to apply to the Shares in the
hands of such Proposed Transferee.  If
the Shares described in the Notice are not transferred to the Proposed
Transferee within such period, a new Notice shall be given to the Company, and
the Company and/or its assignees shall again be offered the Right of First
Refusal before any Shares held by the Holder may be sold or otherwise
transferred.

 

SECTION 5.6  Exception for Certain Family Transfers.  Anything to the contrary contained in this Section notwithstanding,
the transfer of any or all of the Shares during the Purchaser’s lifetime or on
the Purchaser’s death by will or intestacy to the Purchaser’s Immediate Family
or a trust for the benefit of one or more members of the Purchaser’s Immediate
Family or to a trust, partnership, limited liability company, custodianship or
other fiduciary account for the benefit of the Purchaser or one or more members
of the Purchaser’s Immediate Family, or the disbursement therefrom to Purchaser
or one or more members of his Immediate Family, shall be exempt from the
provisions of this Section, provided that the Purchaser notifies the Company in
writing within thirty (30) days of said 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.

 

SECTION 5.7  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 Act.

 

SECTION 6  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.

 

 

4

 

 

SECTION 7  No
Right of Employment

 

Nothing in this Agreement shall confer upon the
Optionee the right to employment by or engagement as a service provider of the
Company or affect any right which the Company may have to terminate any such
employment or engagement.

 

SECTION 8  Notices

 

Any notice to be given to the Company hereunder shall
be in writing and shall be addressed to                           
Corporation,                                                           ,
                        ,
                            
            , or at
such other address as the Company may hereafter designate to the Optionee by
notice as provided in this Section 8. 
Any notice to be given to the Optionee hereunder shall be addressed to
the Optionee at the address set forth beneath the Optionee’s signature hereto,
or by electronic means if any facsimile number is provided beneath the Optionee’s
signature hereto or at such other address as the Optionee may hereafter
designate to the Company by notice as provided herein.  A notice shall be deemed to have been duly
given when personally delivered or, if mailed by registered or certified mail
to the party entitled to receive it, five days after the date the notice was so
mailed, or if sent electronically, on the day on which it is actually transmitted.

 

SECTION 9  Successors
and Assigns

 

This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their successors.

 

SECTION 10 
Governing Law

 

This Option Agreement shall be interpreted, construed
and administered in accordance with the laws of the State of New York as they
apply to contracts made, delivered and performed entirely within such state.

 

SECTION 11 
Severability

 

If any provision of this Option Agreement shall
hereafter be held to be invalid, unenforceable or illegal in whole or in part,
in any jurisdiction under any circumstances 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 as expressed in, and the benefits to the parties provided by, this
Option Agreement and the Plan or (ii) if such provision cannot be so
reformed, such provision shall be severed from this Option Agreement and an
equitable adjustment shall be made to this Option Agreement (including, without
limitation, addition of necessary further provisions to this Option Agreement)
so as to give effect to the intent as so expressed and the benefits so provided.  Such holding shall not affect or impair the
validity, enforceability or legality of such provision in any other
jurisdiction or under any other circumstances. 
Neither such holding nor such reformation or severance shall affect or
impair the legality, validity or enforceability of any other provision of this
Option Agreement or the Plan.

 

 

5

 

 

SECTION 12 
Adjustment in Capitalization

 

The provisions of Section 12 of the Company’s
2001 Stock Plan (“Plan”) shall apply to the Option as if the Option were an
option granted thereunder.

 

SECTION 13 
Call Option

 

This Option Agreement and the Shares are subject to a
Call Option Agreement of even date between Optionee and the Corporation and
notwithstanding anything herein to the contrary may not be transferred unless the
transferee agrees to be subject to and bound by such Call Option Agreement as
to this Option Agreement or such Shares. 
Optionee acknowledges that the legend set forth below or a substantially
equivalent legend may be placed on any certificates representing any Shares
received by Optionee on exercise of the Option, and on any certificates
representing such Shares in the hands of any transferees:

 

THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO A
CALL OPTION AGREEMENT DATED AS OF                           ,
            
BETWEEN THE ISSUER OF THESE SECURITIES AND OPTIONEE, AND MAY NOT BE
TRANSFERRED UNLESS THE TRANSFEREE AGREES TO BE BOUND BY SUCH CALL OPTION
AGREEMENT.  A COPY OF SUCH CALL OPTION
AGREEMENT IS AVAILABLE AT THE PRINCIPAL OFFICE OF THE ISSUER AND ALL OF THE
PROVISIONS THEREOF ARE INCORPORATED HEREIN BY REFERENCE.

 

SECTION 14 
Voting Rights

 

Notwithstanding anything in this Option Agreement to
the contrary, this Option may not be exercised unless the Optionee has
delivered to the Company, and the Shares obtained upon exercise of this Option
my not be transferred unless the transferee has delivered to the Company, an
irrevocable proxy appointing the Company’s Board of Directors as the Optionee’s
or transferee’s agent and attorney in fact to exercise all voting rights in the
Shares for so long as there shall be outstanding, in the hands of Optionee or
any transferee, the shares of common stock of the Company acquired by the
Optionee under the Plan pursuant to one or more restricted stock purchase
agreements.

 

 

6

 

 

IN WITNESS WHEREOF, the parties hereto have executed
this Stock Option Agreement as of the date and year first written above.

 

	
   

  	
   

  	
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTIONEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name]

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
				

 

 

7

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