Document:

Exhibit 10.1

 

SEPARATION AGREEMENT

 

This Separation Agreement (“Separation
Agreement” or “Agreement”) is made between and Gary H. Rabin (“Executive”) and Advanced Cell
Technology, Inc., a Delaware corporation (along with its parents, subsidiaries and affiliates, the “Company” and, together
with the Executive, the “Parties”).

 

WHEREAS, the Parties entered into
an Employment Agreement dated July 1, 2011 (the “Employment Agreement”) which expired on December 31, 2013, except
that, by its terms, Section 11 of the Employment Agreement survives the expiration of the Agreement and remains in full force and
effect;

 

WHEREAS, the Executive’s employment
with the Company continued after the expiration of the Employment Agreement;

 

WHEREAS, the Executive and the Company
have mutually agreed that Executive will separate from his employment with the Company, effective January 21, 2014 (the “Separation
Date”);

 

WHEREAS, on the Separation Date,
the Company shall pay the Executive: (i) all accrued and unpaid Base Salary through the Separation Date, and (ii) $123,461.53
for all of the Executive’s accrued but unused vacation through the Separation Date. In addition, the Company will reimburse
Executive for all reasonable business expenses incurred by Executive on or before the Separation Date in accordance with the Company’s
policies and practices, provided Executive has provided acceptable documentation within thirty (30) days of the Separation Date
(the foregoing defined as the “Accrued Benefit”);

 

WHEREAS, in the interest of an amicable
transition, the Company will provide certain payments and benefits (the “Separation Benefits”) to Executive, provided
Executive enters into and complies with this Separation Agreement;

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

 

1.Resignation from Officer Positions;
Board Service. The Executive hereby resigns as of the Separation Date as an officer and director of the Company as well
as from any other officer and director positions he holds with the Company or with any of the Company’s subsidiaries. The
Executive agrees to sign any other documents that the Company may reasonably request in order to effectuate such resignation(s),
after such documentation is reviewed with Executive’s legal counsel and no good faith basis for withholding Executive’s
signature is determined to exist. Effective from the Separation Date, the Executive shall have no authority to act on behalf of
or to bind the Company.

 

2.Separation Benefits. In
lieu of any severance benefits or enhanced equity rights that Executive may have been entitled to pursuant to the Employment Agreement
or otherwise, and in exchange for, among other things, Executive signing, not revoking and complying with the terms of this Separation
Agreement, the Company shall provide Executive with the following Separation Benefits:

 

 

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(i)the Company shall continue
to pay the Executive his base salary of $44,583.33 per month for seven (7) months from the Separation Date (the “Severance
Period”), which shall commence upon the Company’s next regular payroll date after the Effective Date of this Agreement;

 

(ii)on the Company’s next
regular payroll date after the last day of the Severance Period, the Company shall pay the Executive a lump sum payment equal to
$15,000, less applicable deductions and withholdings.

 

(iii) the Company agrees that
it will not oppose Executive’s application for unemployment compensation benefits. Employee acknowledges that eligibility
determinations are made by the Employment Security Department and that Employer does not control such determination.

 

3.Equity. The Executive’s
equity interests in the Company are set forth below and are governed by The Advanced Cell Technology 2005 Stock Option Plan and
the associated Advanced Cell Technology, Inc. Employee Nonstatutory Option Agreements (collectively the “Equity Documents”):

 

	Grant Date	Type of Grant	Number of Vested Shares	Exercise Price per Share
	December 14, 2010	Nonqualified Stock Option	5,000,000	$0.14
	July 1, 2011	Restricted Stock	6,000,001	N/A
	July 1, 2011	Nonqualified Stock Option	10,000,000	$0.185
	July 1, 2011	Nonqualified Stock Option	5,000,000	$0.30
	July 1, 2011	Nonqualified Stock Option	5,000,000	$0.45

 

The above-listed Nonqualified Options (each
a “Stock Option”) are exercisable by Executive for the entire ten-year term of the Stock Option. Executive acknowledges
and agrees that he does not have any equity interests other than those set forth in this Section 3.

 

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4.General Release. Executive
irrevocably and unconditionally releases and forever discharges the Company, all of its affiliated and related entities, its and
their respective predecessors, successors and assigns, its and their respective employee benefit plans and the fiduciaries of such
plans, and the current and former officers, directors, stockholders, executives, attorneys, accountants, and agents of each of
the foregoing in their official and personal capacities (collectively referred to as the “Releasees”) generally from
all claims, demands, debts, damages and liabilities of every name and nature, known or unknown (“Claims”) that, as
of the date when Executive signs this Separation Agreement, he has, ever had, now claims to have or ever claimed to have had against
any or all of the Releasees. This release includes, without implication of limitation, the complete waiver and release of all Claims
of or arising in connection with or for: the Employment Agreement including Claims for breach of express or implied contract; wrongful
termination of employment whether in contract or tort; intentional, reckless, or negligent infliction of emotional distress; breach
of any express or implied covenant of employment, including the covenant of good faith and fair dealing; interference with contractual
or advantageous relations, whether prospective or existing; deceit or misrepresentation; discrimination or retaliation under state,
federal, or municipal law, including, without implication of limitation, Title VII of the Civil Rights Act of 1964, 42 U.S.C.
§ 2000e et seq., as amended, the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq.,
the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq.; Massachusetts General Law Chapter 151B;
the Massachusetts Wage Act; all Claims under the California Family Rights Act, the California Fair Employment and Housing Act,
the California Labor Code Section 200 et seq., and any applicable California Industrial Welfare Commission order; defamation or
damage to reputation; reinstatement; punitive or emotional distress damages; wages, severance pay, vacation pay, back or front
pay or other forms of compensation; and attorney’s fees and costs. Executive understands that, except those expressly excluded
from this release below, this general release of Claims extends to any and all Claims related to Executive’s employment by
the Company, (including without limitation, any claims against the Company with respect to any stock-based awards of any kind)
and the ending of his employment, and all Claims in his capacity as a Company stockholder arising up to and through the date that
Executive enters into this Separation Agreement.

 

Executive understands that this general release
does not extend to any rights or claims that may arise out of acts or events that occur after the date on which Executive signs
this Separation Agreement. Executive represents that he has not assigned to any third party and has not filed with any agency or
court any Claim released by this Separation Agreement.

 

This release does not affect Executive’s
rights or obligations under this Separation Agreement or the Equity Documents nor shall this release affect the Executive’s
rights to: indemnification pursuant to state law or as an officer of the Company under the Company’s articles of incorporation
for Executive’s service prior to the Separation Date, subject to the Company’s rights under state law and the articles
of incorporation with respect to such indemnification; claims to insurance coverage under any policy as to which he is a named
insured or beneficiary; claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of
applicable state law; claims for workers’ compensation insurance benefits under the terms of any worker’s compensation
insurance policy or fund of the Releasees; claims to continued participation in certain group benefit plans pursuant to the terms
and conditions of the federal law known as COBRA; and other obligation of the Releasees that cannot be waived as a matter of law.

 

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Executive acknowledges that he is familiar
with Section 1542 of the California Civil Code, which reads as follows:

 

			A general release does not extend to claims which the creditor does not know or suspect to exist
in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the
debtor.

 

Executive acknowledges that he is releasing unknown claims and
waiving all rights he may have under Civil Code Section 1542 or under any other statute or common law principle of similar effect;
provided that Executive is not waiving any rights or claims that may arise out of acts or events that occur after the date
on which he signs this Agreement.

 

5.Return of Property.
Executive commits to returning to the Company all Company property on or before the Separation Date including, without limitation,
computer equipment, software, credit cards, files and any documents (including computerized data and any copies made of any computerized
data or software) containing information concerning the Company, its business or its business relationships, provided, after Executive
returns the laptop issued to him by the Company without any file or data deletions, the Company will work with Executive in good
faith to identify Executive’s personal files on the laptop and shall provide copies of those personal files to the Executive.
After returning all such property, Executive commits to deleting and finally purging any duplicates of files or documents that
may contain Company or customer information from any non-Company computer or other device that remains Executive’s property
after the Separation Date.

 

6.Covenants. Executive
acknowledges and hereby reaffirms his continuing obligations to the Company pursuant to Section 11 of the Employment Agreement
including, without limitation, with respect to Confidential Information, Right to Company Materials, Nondisparagement and Nonsolicitation
(collectively the “Covenants”), all of which run in favor of the Company (including all parents, subsidiaries and affiliates)
and the terms of which are incorporated by reference herein, provided the Company acknowledges that Executive’s covenant
with respect to Noncompetition Section 11 of the Employment Agreement is no longer in effect.

 

7.Cooperation. Executive
agrees to cooperate with the Company (including its outside counsel) in connection with the contemplation, prosecution and defense
of all phases of existing, past and future litigation and/or in connection with any government investigation about which the Company
believes that Executive may have knowledge or information. Executive further agrees to make himself available at mutually convenient
times during and outside of regular business hours as reasonably deemed necessary by the Company’s counsel. Executive agrees
to appear without the necessity of a subpoena to testify truthfully in any legal proceedings in which Executive is called as a
witness.

 

8.Insider Trading and Disclosure.
Executive reaffirms his obligations pursuant to the Company’s Statement of Company Policy on Insider Trading and Disclosure
(the “Insider Trading Policy”) the terms of which continue to apply to Executive following the termination of employment
with the Company until any material, nonpublic information possessed by such individual has become public or is no longer material.
The same restrictions that apply to Executive pursuant to the Insider Trading Policy also apply to his spouse, significant other,
child, parent or other family member, in each case, living in the same household, and to any investment fund, trust, retirement
plan, partnership, corporation or other entity over which he has the ability to influence or direct investment decisions concerning
securities.  Executive is responsible for ensuring compliance with the Insider Trading Policy by all such persons affiliated
with Executive.

 

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9.Termination of Separation Benefits;
Injunctive Relief. In the event that any Party fails to comply with any of the provision of this Separation Agreement,
including any of the Covenants that have been incorporated by reference, in addition to any other legal or equitable remedies it
may have for such breach, the other party shall have the right to terminate the payments due and owing to the other party. Further,
the Parties agree that it would be difficult to measure any harm caused to the other that might result from any breach by the other
Party of any of the Agreement and that, in any event, money damages would be an inadequate remedy for any such breach. Accordingly,
the Parties agree that if the other breaches, or there is an imminent threat of a breach of any portion of the Agreement, the non-breaching
Party shall be entitled, in addition to all other remedies they may have, to an injunction or other appropriate equitable relief
to restrain any such breach, without showing or proving any monetary damage to the Company and without the necessity of posting
a bond.

 

10.Advice of Counsel.
This Separation Agreement is a legally binding document and Executive’s signature will commit Executive to its terms. Executive
acknowledges that he has been advised to discuss all aspects of this Separation Agreement with his attorney, that he has carefully
read and fully understands all of the provisions of this Separation Agreement and that Executive is voluntarily entering into this
Separation Agreement.

 

11.Effective Date. To
accept this Agreement, Executive must return a signed original of this Agreement to Edward Myles, Chief Financial Officer. This
Agreement shall become effective upon execution by both Parties (the “Effective Date”).

 

12.Enforceability. Executive
acknowledges that, if any portion or provision of this Separation Agreement or the Covenants shall to any extent be declared illegal
or unenforceable by a court of competent jurisdiction, then the remainder other than those as to which it is so declared illegal
or unenforceable, shall not be affected thereby, and each portion and provision shall be valid and enforceable to the fullest extent
permitted by law.

 

13.Exclusive Compensation.
The payments, benefits and equity rights set forth in this Agreement are the exclusive payments, benefits and equity rights to
Executive in connection with Executive’s employment and the ending of the employment relationship, provided nothing in this
Agreement shall affect Executive’s or the Company’s rights and obligations with respect to indemnification. By entering
into this Separation Agreement, Executive acknowledges and agrees that he is not entitled to any other pay, (including salary or
bonus or vacation pay) benefits or equity rights including without limitation pursuant to any agreement, severance plan, program
or arrangement.

 

14.Entire Agreement. This
Separation Agreement along with the Covenants and Equity Documents and the Undertaking Pursuant to 8 Del. C. § 145(e) you
entered into dated October 23, 2013, constitutes the entire agreement between Executive and the Company concerning Executive’s
relationship with the Company, and supersedes and replaces any and all prior agreements and understandings between the Parties
concerning the Executive’s relationship with the Company including, without limitation, the Employment Agreement.

 

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15.Waiver. No waiver of
any provision of this Separation Agreement, including the Covenants, shall be effective unless made in writing and signed by the
waiving party. The failure of either Party to require the performance of any term or obligation of this Separation Agreement or
the Covenants, or the waiver by either Party of any breach of this Separation Agreement or the Covenants, shall not prevent any
subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

16.Taxes. The Company
shall undertake to make deductions, withholdings and tax reports with respect to payments and benefits under this Separation Agreement
and in connection with other compensation matters to the extent that it reasonably and in good faith determines that it is required
to make such deductions, withholdings and tax reports. Payments under this Separation Agreement shall be in amounts net of any
such deductions or withholdings. Nothing in this Separation Agreement shall be construed to require the Company to make any payments
to compensate Executive for any adverse tax effect associated with any payments or benefits made to Executive in connection with
Executive’s employment with the Company.

 

17.Successors and Assigns.
The Parties agree that their rights and obligations hereunder are binding upon and inure to the benefit of their respective
successors and assigns, and in the case of Executive, to his heirs as well.

 

18.Governing Law; Consent to Jurisdiction;
Interpretation. By signing below the Parties acknowledge and agree that the Parties’ rights and obligations to one
another, including, without limitation, their rights and obligations under this Separation Agreement, the Covenants shall be interpreted
and enforced under the laws of the Commonwealth of Massachusetts without regard to conflict of law principles. The Parties agree
that any disputes between the Parties shall be resolved exclusively in the federal or state courts of the Commonwealth of Massachusetts.
In the event of any dispute, this Separation Agreement is intended by the parties to be construed as a whole, to be interpreted
in accordance with its fair meaning, and not to be construed strictly for or against either Party or the “drafter”
of all or any portion of this Separation Agreement.

 

19.Counterparts. This
Separation Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken
to be an original, but all of which together shall constitute one and the same document. Facsimile and pdf signatures shall be
deemed to be of equal force and effect as originals.

 

 

[Remainder of Page
Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the Parties, intending to be legally
bound, have executed this Separation Agreement on the date(s) indicated below.

 

ADVANCED CELL TECHNOLOGY, INC.

 

	By:	/s/ Michael Heffernan	 	January 21, 2014
	 	Michael Heffernan	 	Date
	 	Chairman of the Board of Directors	 	 

   

 

I HAVE READ THIS AGREEMENT THOROUGHLY, UNDERSTAND ITS TERMS
AND HAVE SIGNED IT KNOWINGLY AND VOLUNTARILY. I UNDERSTAND THAT THIS AGREEMENT IS A LEGAL DOCUMENT.

 

	/s/ Gary H. Rabin	 	January 21, 2014
	Gary H. Rabin	 	DateS-8 2014 ESPP - Ex 10.1 2014 ESPP Plan

Exhibit 10.1

DOT HILL SYSTEMS CORP. 
 
2014 EMPLOYEE STOCK PURCHASE PLAN 
ADOPTED BY THE BOARD OF DIRECTORS: JANUARY 21,  2014 
APPROVED BY THE STOCKHOLDERS: ___________,  2014
1.    GENERAL; PURPOSE.
(a)    The Plan provides a means by which Eligible Employees of the Company and certain designated Related Corporations may be given an opportunity to purchase shares of Common Stock.  The Plan permits the Company to grant a series of Purchase Rights to Eligible Employees under an Employee Stock Purchase Plan.
(b)    The Company, by means of the Plan, seeks to retain the services of such Employees, to secure and retain the services of new Employees and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Related Corporations.
2.    ADMINISTRATION.
(a)    The Board will administer the Plan unless and until the Board delegates administration of the Plan to a Committee or Committees, as provided in Section 2(c).
(b)    The Board will have the power, subject to, and within the limitations of, the express provisions of the Plan:
(i)    To determine how and when Purchase Rights will be granted and the provisions of each Offering (which need not be identical).
(ii)    To designate from time to time which Related Corporations of the Company will be eligible to participate in the Plan.
(iii)    To construe and interpret the Plan and Purchase Rights, and to establish, amend and revoke rules and regulations for its administration.  The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it deems necessary or expedient to make the Plan fully effective.
(iv)    To settle all controversies regarding the Plan and Purchase Rights granted under the Plan.
(v)    To suspend or terminate the Plan at any time as provided in Section 12.
(vi)    To amend the Plan at any time as provided in Section 12.
(vii)    Generally, to exercise such powers and to perform such acts as it deems necessary or expedient to promote the best interests of the Company and its Related Corporations and to carry out the intent that the Plan be treated as an Employee Stock Purchase Plan.

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(viii)    To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or employed outside the United States.
(c)    The Board may delegate some or all of the administration of the Plan to a Committee or Committees.  If administration is delegated to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board will thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.  The Board may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated.  Whether or not the Board has delegated administration of the Plan to a Committee, the Board will have the final power to determine all questions of policy and expediency that may arise in the administration of the Plan.
(d)    All determinations, interpretations and constructions made by the Board in good faith will not be subject to review by any person and will be final, binding and conclusive on all persons.
3.    SHARES OF COMMON STOCK SUBJECT TO THE PLAN.
(a)    Subject to the provisions of Section 11(a) relating to Capitalization Adjustments, the maximum number of shares of Common Stock that may be issued under the Plan will not exceed 4,000,000 shares of Common Stock.  
(b)    If any Purchase Right granted under the Plan terminates without having been exercised in full, the shares of Common Stock not purchased under such Purchase Right will again become available for issuance under the Plan.  
(c)    The stock purchasable under the Plan will be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market.  
4.    GRANT OF PURCHASE RIGHTS; OFFERING.
(a)    The Board may from time to time grant or provide for the grant of Purchase Rights to Eligible Employees under an Offering (consisting of one or more Purchase Periods) on an Offering Date or Offering Dates selected by the Board.  Each Offering will be in such form and will contain such terms and conditions as the Board will deem appropriate, and will comply with the requirement of Section 423(b)(5) of the Code that all Employees granted Purchase Rights will have the same rights and privileges.  The terms and conditions of an Offering shall be incorporated by reference into the Plan and treated as part of the Plan.  The provisions of separate Offerings need not be identical, but each Offering will include (through incorporation of the provisions of this Plan by reference in the document comprising the Offering or otherwise) the period during which the 

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Offering will be effective, which period will not exceed 27 months beginning with the Offering Date, and the substance of the provisions contained in Sections 5 through 8, inclusive.
(b)    If a Participant has more than one Purchase Right outstanding under the Plan, unless he or she otherwise indicates in forms delivered to the Company: (i) each form will apply to all of his or her Purchase Rights under the Plan, and (ii) a Purchase Right with a lower exercise price (or an earlier-granted Purchase Right, if different Purchase Rights have identical exercise prices) will be exercised to the fullest possible extent before a Purchase Right with a higher exercise price (or a later-granted Purchase Right if different Purchase Rights have identical exercise prices) will be exercised.
(c)    The Board will have the discretion to structure an Offering so that if the Fair Market Value of a share of Common Stock on the first Trading Day of a new Purchase Period within that Offering is less than or equal to the Fair Market Value of a share of Common Stock on the Offering Date for that Offering, then (i) that Offering will terminate immediately as of that first Trading Day, and (ii) the Participants in such terminated Offering will be automatically enrolled in a new Offering beginning on the first Trading Day of such new Purchase Period.  
5.    ELIGIBILITY.
(a)    Purchase Rights may be granted only to Employees of the Company or, as the Board may designate in accordance with Section 2(b), to Employees of a Related Corporation.  Except as provided in Section 5(b), an Employee will not be eligible to be granted Purchase Rights unless, on the Offering Date, the Employee has been in the employ of the Company or the Related Corporation, as the case may be, for such continuous period preceding such Offering Date as the Board may require, but in no event will the required period of continuous employment be equal to or greater than two years.  In addition, the Board may provide that no Employee will be eligible to be granted Purchase Rights under the Plan unless, on the Offering Date, such Employee’s customary employment with the Company or the Related Corporation is more than 20 hours per week and more than five months per calendar year or such other criteria as the Board may determine consistent with Section 423 of the Code.
(b)    The Board may provide that each person who, during the course of an Offering, first becomes an Eligible Employee will, on a date or dates specified in the Offering which coincides with the day on which such person becomes an Eligible Employee or which occurs thereafter, receive a Purchase Right under that Offering, which Purchase Right will thereafter be deemed to be a part of that Offering.  Such Purchase Right will have the same characteristics as any Purchase Rights originally granted under that Offering, as described herein, except that:
(i)    the date on which such Purchase Right is granted will be the “Offering Date” of such Purchase Right for all purposes, including determination of the exercise price of such Purchase Right;
(ii)    the period of the Offering with respect to such Purchase Right will begin on its Offering Date and end coincident with the end of such Offering; and

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(iii)    the Board may provide that if such person first becomes an Eligible Employee within a specified period of time before the end of the Offering, he or she will not receive any Purchase Right under that Offering.
(c)    No Employee will be eligible for the grant of any Purchase Rights if, immediately after any such Purchase Rights are granted, such Employee owns stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Company or of any Related Corporation.  For purposes of this Section 5(c), the rules of Section 424(d) of the Code will apply in determining the stock ownership of any Employee, and stock which such Employee may purchase under all outstanding Purchase Rights and options will be treated as stock owned by such Employee.
(d)    As specified by Section 423(b)(8) of the Code, an Eligible Employee may be granted Purchase Rights only if such Purchase Rights, together with any other rights granted under all Employee Stock Purchase Plans of the Company and any Related Corporations, do not permit such Eligible Employee’s rights to purchase stock of the Company or any Related Corporation to accrue at a rate which exceeds $25,000 of Fair Market Value of such stock (determined at the time such rights are granted, and which, with respect to the Plan, will be determined as of their respective Offering Dates) for each calendar year in which such rights are outstanding at any time.
(e)    Officers of the Company and any designated Related Corporation, if they are otherwise Eligible Employees, will be eligible to participate in Offerings under the Plan.  Notwithstanding the foregoing, the Board may provide in an Offering that Employees who are highly compensated Employees within the meaning of Section 423(b)(4)(D) of the Code will not be eligible to participate.
6.    PURCHASE RIGHTS; PURCHASE PRICE.
(a)    On each Offering Date, each Eligible Employee, pursuant to an Offering made under the Plan, will be granted a Purchase Right to purchase up to that number of shares of Common Stock purchasable either with a percentage or with a maximum dollar amount, as designated by the Board, but in either case not exceeding 15% of such Employee’s earnings (as defined by the Board in each Offering) during the period that begins on the Offering Date (or such later date as the Board determines for a particular Offering) and ends on the date stated in the Offering, which date will be no later than the end of the Offering.
(b)    The Board will establish one or more Purchase Dates during an Offering on which Purchase Rights granted for that Offering will be exercised and shares of Common Stock will be purchased in accordance with such Offering.
(c)    In connection with each Offering made under the Plan, the Board may specify (i) a maximum number of shares of Common Stock that may be purchased by any Participant on any Purchase Date during such Offering, (ii) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants pursuant to such Offering and/or (iii) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants on any Purchase Date under the Offering.  If the aggregate purchase of shares of Common Stock issuable upon exercise 

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of Purchase Rights granted under the Offering would exceed any such maximum aggregate number, then, in the absence of any Board action otherwise, a pro rata (based on each Participant’s accumulated Contributions) allocation of the shares of Common Stock available will be made in as nearly a uniform manner as will be practicable and equitable.
(d)    The purchase price of shares of Common Stock acquired pursuant to Purchase Rights will be not less than the lesser of:
(i)    an amount equal to 85% of the Fair Market Value of the shares of Common Stock on the Offering Date; or
(ii)    an amount equal to 85% of the Fair Market Value of the shares of Common Stock on the applicable Purchase Date.
7.    PARTICIPATION; WITHDRAWAL; TERMINATION.
(a)    An Eligible Employee may elect to authorize payroll deductions as the means of making Contributions by completing and delivering to the Company, within the time specified in the Offering, an enrollment form provided by the Company. The enrollment form will specify the amount of Contributions not to exceed the maximum amount specified by the Board. Each Participant’s Contributions will be credited to a bookkeeping account for such Participant under the Plan and will be deposited with the general funds of the Company except where applicable law requires that Contributions be deposited with a third party. If permitted in the Offering, a Participant may begin such Contributions with the first payroll occurring on or after the Offering Date (or, in the case of a payroll date that occurs after the end of the prior  Offering but before the Offering Date of the next new Offering, Contributions from such payroll will be included in the new Offering).  If permitted in the Offering, a Participant may thereafter reduce (including to zero) or increase his or her Contributions.  If specifically provided in the Offering, in addition to making Contributions by payroll deductions, a Participant may make Contributions through the payment by cash or check prior to a Purchase Date.
(b)    During an Offering, a Participant may cease making Contributions and withdraw from the Offering by delivering to the Company a withdrawal form provided by the Company.  The Company may impose a deadline before a Purchase Date for withdrawing.  Upon such withdrawal, such Participant’s Purchase Right in that Offering will immediately terminate and the Company will distribute to such Participant all of his or her accumulated but unused Contributions and such Participant’s Purchase Right in that Offering shall thereupon terminate.  A Participant’s withdrawal from that Offering will have no effect upon his or her eligibility to participate in any other Offerings under the Plan, but such Participant will be required to deliver a new enrollment form to participate in subsequent Offerings.
(c)    Purchase Rights granted pursuant to any Offering under the Plan will terminate immediately if the Participant either (i) is no longer an Employee for any reason or for no reason (subject to any post-employment participation period required by law) or (ii) is otherwise no longer eligible to participate. The Company will distribute to such individual all of his or her accumulated but unused Contributions.

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(d)    During a Participant’s lifetime, Purchase Rights will be exercisable only by such Participant.  Purchase Rights are not transferable by a Participant, except by will, by the laws of descent and distribution, or, if permitted by the Company, by a beneficiary designation as described in Section 10.  
(e)    Unless otherwise specified in the Offering, the Company will have no obligation to pay interest on Contributions.
8.    EXERCISE OF PURCHASE RIGHTS.
(a)    On each Purchase Date, each Participant’s accumulated Contributions will be applied to the purchase of shares of Common Stock, up to the maximum number of shares of Common Stock permitted by the Plan and the applicable Offering, at the purchase price specified in the Offering.  No fractional shares will be issued unless specifically provided for in the Offering.
(b)    If any amount of accumulated Contributions remains in a Participant’s account after the purchase of shares of Common Stock and such remaining amount is less than the amount required to purchase one share of Common Stock on the final Purchase Date of an Offering, then such remaining amount will be held in such Participant’s account for the purchase of shares of Common Stock under the next Offering under the Plan, unless such Participant withdraws from or is not eligible to participate in such Offering, in which case such amount will be distributed to such Participant after the final Purchase Date, without interest.  If the amount of Contributions remaining in a Participant’s account after the purchase of shares of Common Stock is at least equal to the amount required to purchase one whole share of Common Stock on the final Purchase Date of an Offering, then such remaining amount will not roll over to the next Offering and will instead be distributed in full to such Participant after the final Purchase Date of such Offering without interest.
(c)    No Purchase Rights may be exercised to any extent unless the shares of Common Stock to be issued upon such exercise under the Plan are covered by an effective registration statement pursuant to the Securities Act and the Plan is in material compliance with all applicable federal, state, foreign and other securities and other laws applicable to the Plan.  If on a Purchase Date the shares of Common Stock are not so registered or the Plan is not in such compliance, no Purchase Rights will be exercised on such Purchase Date, and the Purchase Date will be delayed until the shares of Common Stock are subject to such an effective registration statement and the Plan is in material compliance, except that the Purchase Date will in no event be more than 27 months from the Offering Date.  If, on the Purchase Date, as delayed to the maximum extent permissible, the shares of Common Stock are not registered and the Plan is not in material compliance with all applicable laws, no Purchase Rights will be exercised and all accumulated but unused Contributions will be distributed to the Participants without interest.
9.    COVENANTS OF THE COMPANY.
The Company will seek to obtain from each federal, state, foreign or other regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Purchase Rights and issue and sell shares of Common Stock thereunder.  If, after commercially reasonable efforts, the Company is unable to obtain the authority that counsel for the Company 

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Exhibit 10.1

deems necessary for the grant of Purchase Rights or the lawful issuance and sale of Common Stock under the Plan, and at a commercially reasonable cost, the Company will be relieved from any liability for failure to grant Purchase Rights and/or to issue and sell Common Stock upon exercise of such Purchase Rights.
10.    DESIGNATION OF BENEFICIARY.
(a)    The Company may, but is not obligated to, permit a Participant to submit a form designating a beneficiary who will receive any shares of Common Stock and/or Contributions from the Participant’s account under the Plan if the Participant dies before such shares and/or Contributions are delivered to the Participant.  The Company may, but is not obligated to, permit the Participant to change such designation of beneficiary. Any such designation and/or change must be on a form approved by the Company.
(b)      If a Participant dies, and in the absence of a valid beneficiary designation, the Company will deliver any shares of Common Stock and/or Contributions to the executor or administrator of the estate of the Participant.  If no executor or administrator has been appointed (to the knowledge of the Company), the Company, in its sole discretion, may deliver such shares of Common Stock and/or Contributions to the Participant’s spouse, dependents or relatives, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.
11.    ADJUSTMENTS UPON CHANGES IN COMMON STOCK; CORPORATE TRANSACTIONS.
(a)    In the event of a Capitalization Adjustment, the Board will appropriately and proportionately adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and maximum number of securities by which the share reserve is to increase automatically each year pursuant to Section 3(a), (iii) the class(es) and number of securities subject to, and the purchase price applicable to outstanding Offerings and Purchase Rights, and (iv) the class(es) and number of securities that are the subject of the purchase limits under each ongoing Offering.  The Board will make these adjustments, and its determination will be final, binding and conclusive. 
(b)    In the event of a Corporate Transaction, then: (i) any surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) may assume or continue outstanding Purchase Rights or may substitute similar rights (including a right to acquire the same consideration paid to the stockholders in the Corporate Transaction) for outstanding Purchase Rights, or (ii) if any surviving or acquiring corporation (or its parent company) does not assume or continue such Purchase Rights or does not substitute similar rights for such Purchase Rights, then the Participants’ accumulated Contributions will be used to purchase shares of Common Stock within ten business days prior to the Corporate Transaction under the outstanding Purchase Rights, and the Purchase Rights will terminate immediately after such purchase.
12.    AMENDMENT, TERMINATION OR SUSPENSION OF THE PLAN.

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Exhibit 10.1

(a)    The Board may amend the Plan at any time in any respect the Board deems necessary or advisable.  However, except as provided in Section 11(a) relating to Capitalization Adjustments, stockholder approval will be required for any amendment of the Plan for which stockholder approval is required by applicable law or listing requirements, including any amendment that either (i) materially increases the number of shares of Common Stock available for issuance under the Plan, (ii) materially expands the class of individuals eligible to become Participants and receive Purchase Rights, (iii) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be purchased under the Plan, (iv) materially extends the term of the Plan, or (v) expands the types of awards available for issuance under the Plan, but in each of (i) through (v) above only to the extent stockholder approval is required by applicable law or listing requirements.
(b)    The Board may suspend or terminate the Plan at any time.  No Purchase Rights may be granted under the Plan while the Plan is suspended or after it is terminated.
(c)    Any benefits, privileges, entitlements and obligations under any outstanding Purchase Rights granted before an amendment, suspension or termination of the Plan will not be materially impaired by any such amendment, suspension or termination except (i) with the consent of the person to whom such Purchase Rights were granted, (ii) as necessary to comply with any laws, listing requirements, or governmental regulations (including, without limitation, the provisions of Section 423 of the Code and the regulations and other interpretive guidance issued thereunder relating to Employee Stock Purchase Plans) including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date, or (iii) as necessary to obtain or maintain favorable tax, listing, or regulatory treatment.  To be clear, the Board may amend outstanding Purchase Rights without a Participant’s consent if such amendment is necessary to ensure that the Purchase Right and/or the Plan complies with the requirements of Section 423 of the Code.
13.    EFFECTIVE DATE OF PLAN.
The Plan will become effective upon approval by the Board, provided that the Plan is also approved by the stockholders of the Company within 12 months before or after the date the Plan is adopted (or if required under Section 12(a) above, materially amended) by the Board. Purchase Rights may be granted on or after approval of the Plan by the Board, but no Purchase Rights shall be exercised unless and until the Plan has been approved by the stockholders of the Company within the time period set forth above.
14.    MISCELLANEOUS PROVISIONS.
(a)    Proceeds from the sale of shares of Common Stock pursuant to Purchase Rights will constitute general funds of the Company.
(b)    A Participant will not be deemed to be the holder of, or to have any of the rights of a holder with respect to, shares of Common Stock subject to Purchase Rights unless and until the Participant’s shares of Common Stock acquired upon exercise of Purchase Rights are recorded in the books of the Company (or its transfer agent).

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(c)    The Plan and Offering do not constitute an employment contract.  Nothing in the Plan or in the Offering will in any way alter the at will nature of a Participant’s employment or  be deemed to create in any way whatsoever any obligation on the part of any Participant to continue in the employ of the Company or a Related Corporation, or on the part of the Company or a Related Corporation to continue the employment of a Participant.
(d)    The provisions of the Plan will be governed by the laws of the State of California without resort to that state’s conflicts of laws rules.
15.    DEFINITIONS.
As used in the Plan, the following definitions will apply to the capitalized terms indicated below:
(a)    “Board” means the Board of Directors of the Company.
(b)    “Capital Stock” means each and every class of common stock of the Company, regardless of the number of votes per share.
(c)    “Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Purchase Right after the Effective Date without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other similar equity restructuring transaction, as that term is used in Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor thereto).  Notwithstanding the foregoing, the conversion of any convertible securities of the Company will not be treated as a Capitalization Adjustment.
(d)    “Code” means the Internal Revenue Code of 1986, as amended, including any applicable regulations and guidance thereunder.
(e)    “Committee” means a committee of one or more members of the Board to whom authority has been delegated by the Board in accordance with Section 2(c).
(f)    “Common Stock” means the common stock of the Company, having 1 vote per share.
(g)    “Company” means Dot Hill Systems Corp., a Delaware corporation.
(h)    “Contributions” means the payroll deductions and other additional payments specifically provided for in the Offering that a Participant contributes to fund the exercise of a Purchase Right. A Participant may make additional payments into his or her account if specifically provided for in the Offering, and then only if the Participant has not already had the maximum permitted amount withheld during the Offering through payroll deductions.
(i)    “Corporate Transaction” means the consummation, in a single transaction or in a series of related transactions, of any one or more of the following events:

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Exhibit 10.1

(i)    a sale or other disposition of all or substantially all, as determined by the Board in its sole discretion, of the consolidated assets of the Company and its Subsidiaries;
(ii)    a sale or other disposition of at least 90% of the outstanding securities of the Company;
(iii)    a merger, consolidation or similar transaction following which the Company is not the surviving corporation; 
(iv)    a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise; or
(v)    the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company will otherwise occur, except for a liquidation into a parent corporation.
(j)    “Director” means a member of the Board.
(k)    “Eligible Employee” means an Employee who meets the requirements set forth in the document(s) governing the Offering for eligibility to participate in the Offering, provided that such Employee also meets the requirements for eligibility to participate set forth in the Plan.
(l)    “Employee” means any person, including an Officer or Director, who is “employed” for purposes of Section 423(b)(4) of the Code by the Company or a Related Corporation.  However, service solely as a Director, or payment of a fee for such services, will not cause a Director to be considered an “Employee” for purposes of the Plan.  
(m)    “Employee Stock Purchase Plan” means a plan that grants Purchase Rights intended to be options issued under an “employee stock purchase plan,” as that term is defined in Section 423(b) of the Code.
(n)    “Exchange Act” means the Securities Exchange Act of 1934, as amended and the rules and regulations promulgated thereunder.
(o)    “Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:
If the Common Stock is listed on any established stock exchange or traded on any established market, the Fair Market Value of a share of Common Stock will be the closing sales price for such stock as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of determination, as reported in such source as the Board deems reliable.  Unless otherwise provided by the Board, if there is no closing sales price for the Common Stock on the date of determination, then the Fair Market Value will be the closing sales price on the last preceding date for which such quotation exists.

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Exhibit 10.1

(i)    In the absence of such markets for the Common Stock, the Fair Market Value will be determined by the Board in good faith in compliance with applicable laws and in a manner that complies with Sections 409A of the Code.
(p)     “Offering” means the grant to Eligible Employees of Purchase Rights, with the exercise of those Purchase Rights automatically occurring at the end of one or more Purchase Periods. The terms and conditions of an Offering will generally be set forth in the “Offering Document” approved by the Board for that Offering.
(q)    “Offering Date” means a date selected by the Board for an Offering to commence.
(r)    “Officer” means a person who is an officer of the Company or a Related Corporation within the meaning of Section 16 of the Exchange Act.
(s)    “Participant” means an Eligible Employee who holds an outstanding Purchase Right.
(t)    “Plan” means this Dot Hill Systems Corp. 2014 Employee Stock Purchase Plan.
(u)    “Purchase Date” means one or more dates during an Offering selected by the Board on which Purchase Rights will be exercised and on which purchases of shares of Common Stock will be carried out in accordance with such Offering.
(v)    “Purchase Period” means a period of time specified within an Offering, generally beginning on the Offering Date or on the first Trading Day following a Purchase Date, and ending on a Purchase Date.  An Offering may consist of one or more Purchase Periods.
(w)    “Purchase Right” means an option to purchase shares of Common Stock granted pursuant to the Plan.
(x)    “Related Corporation” means any “parent corporation” or “subsidiary corporation” of the Company whether now or subsequently established, as those terms are defined in Sections 424(e) and (f), respectively, of the Code.
(y)    “Securities Act” means the Securities Act of 1933, as amended.
(z)    “Trading Day” means any day on which the exchange(s) or market(s) on which shares of Common Stock are listed, including but not limited to the NYSE, Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or any successors thereto, is open for trading.

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882382 v1/SD .

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