Document:

EXHIBIT 10.5.1

 

First Amendment to the Employment Agreement between
and among

Nexsan Corporation, Nexsan Technologies, Inc. and Philip Black

 

WHEREAS,
Nexsan Corporation (“Holdings”), Nexsan Technologies, Inc. (the “Company”)
and Philip Black (the “Executive”) entered into an employment agreement dated November 11,
2007 (the “Agreement”); and

 

WHEREAS,
Holdings, the Company and the Executive now desire to amend the Agreement to
modify the terms and conditions under which Executive may earn a right to
receive the COC Bonus or the IPO Bonus Shares provided for under the Agreement
and to ensure that no amounts payable under the Agreement will be subject to
taxation under Section 409A of the Internal Revenue Code of 1986, as
amended;

 

NOW,
THEREFORE, Holdings, the Company and the Executive hereby
amend the Agreement, effective as of December 11, 2008, as follows:

 

I.

 

Section V.A.
of the Agreement is hereby amended to read as follows:

 

A.            If Executive remains
employed by the Company and Holdings through the closing date of a COC (the “COC
Date”), Executive will receive a Change of Control Bonus as soon as practicable
following the COC Date (but in no event later than 90 days after the COC
Date) in the amount determined in Section V.B. below.  If Executive’s employment with the Company
and Holdings is terminated by the Company without Cause or due to Executive’s
disability (a “Qualifying Termination”) prior to the COC Date, Executive shall
receive a Change of Control Bonus as soon as practicable following the COC Date
(but in no event later than 74 days after the COC Date) in the amount equal to
the product of amount determined in Section V.B. times the applicable
percentage determined in the following table:

 

	
  Number of years by which the Qualifying

  Termination precedes the COC Date

  	
   

  	
  Applicable

  Percentage

  	
   

  
	
  Less than 1 year

  	
   

  	
  100

  	
  %

  
	
  At least 1 year but less than 2 years

  	
   

  	
  50

  	
  %

  
	
  At least 2 years but less than 3 years

  	
   

  	
  25

  	
  %

  
	
  3 or more years

  	
   

  	
  0

  	
  %

  

 

1

 

II.

 

Section V.D.
of the Agreement is hereby amended to read as follows:

 

D.            Notwithstanding the
foregoing, Executive will not be entitled to receive:

 

1.             any portion of the
Change of Control Bonus if (i) the COC Date occurs on or after January 1,
2019 or (ii) an IPO occurs prior to the COD Date and Executive receives
the IPO Bonus pursuant to Section VI, or

 

2.             the portion of the
Change of Control Bonus that exceeds $925,000 (the “Variable Change of Control
Bonus”) unless the stockholders of Holdings holding at least 75% of the voting
power of Holdings’ stock immediately prior to the COC authorize and approve the
payment of the Variable Change of Control Bonus in accordance with regulations
issued under Section 280G of the Internal Revenue Code of 1986, as
amended.  Holdings and the Company will
use their best efforts (i) to submit the Variable Change of Control Bonus
to Holding’s stock-holders for approval during the six month period ending on
the COC Date and (ii) to recommend that the shareholders approve and
authorize the payment of the Variable Change of Control Bonus to the Executive.

 

III.

 

Section VI.A.
of the Agreement is hereby amended to read as follows:

 

A.            If Executive remains
employed by the Company and Holdings through the effective date of an IPO (the “IPO
Date”), Executive will receive IPO Bonus Shares equal to the number of whole
shares of common stock of Holdings (if the IPO is for Holdings’ common stock)
or the number of whole shares of common stock of the Company (if the IPO is for
the Company’s common stock) determined by dividing the IPO Bonus Value
determined in Section VI.B. below by the IPO price (as defined below),
with any fraction of a share rounded to the nearest whole share.  If Executive’s employment with the Company
and Holdings is terminated by the Company without Cause or due to Executive’s
disability (a “Qualifying Termination”) prior to the IPO Date, Executive shall
receive the number of IPO Bonus Shares determined in the preceding sentence

 

2

 

multiplied by the
applicable percentage determined in the following table:

 

	
  Number of months by which the

  Qualifying Termination precedes the

  IPO Date

  	
   

  	
  Applicable

  Percentage

  	
   

  
	
  Less than 1 year

  	
   

  	
  100

  	
  %

  
	
  At least 1 year but less than 2 years

  	
   

  	
  50

  	
  %

  
	
  At least 2 years but less than 3 years

  	
   

  	
  25

  	
  %

  
	
  3 or more years

  	
   

  	
  0

  	
  %

  

 

Such IPO Bonus Shares
will be delivered to Executive on the next business day following the IPO Date.

 

IV.

 

Section VI.E.
of the Agreement is hereby amended to read as follows:

 

E.             Notwithstanding the
foregoing, Executive will not be entitled to receive the IPO Bonus Shares if (i) the
IPO Date occurs on or after January 1, 2019 or (ii) a Change of
Control occurs prior to the effective date of an IPO and Executive receives (or
is entitled to receive) the Change of Control Bonus pursuant to Section V.

 

IN
WITNESS WHEREOF, the parties have executed this Amendment to be effective as of
December 11, 2008.

 

	
  EXECUTIVE:

  	
  NEXSAN TECHNOLOGIES,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Philip Black

  	
   

  	
  /s/ Gene Spies

  
	
  Philip Black

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  11 Dec 08

  	
   

  	
  By:

  	
  Gene Spies

  
	
  Date

  	
   

  	
   

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  12/30/08

  

 

3

 

	
   

  	
  NEXSAN CORPORATION 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Rich McGinn

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Rich McGinn 

  
	
   

  	
  Title:

  	
  Co-Chairman

  
	
   

  	
  Date:

  	
  12/26/08

  
				

 

4EXHIBIT 10.8.1

 

Amendment to the
Employment Agreement between

Nexsan Technologies, Inc. and Rik Mussman

 

11 Dec 2008

 

Rik Mussman

 

Dear
Rik,

 

This
amendment amends the employment agreement (the “Agreement”)
you and Nexsan Technologies, Inc. (the “Company”)
signed on November 21, 2007.  This
amendment sets forth changed compensation only. 
All other terms and conditions set forth in the Agreement remain in
force.  We encourage you to keep a copy
for your own records.

 

We
agree that:

 

On and
after execution of this amendment, you will continue in your employment with
the Company as its Chief Operating Officer (COO) pursuant to the terms and
conditions set forth herein.  You
continue to report to the CEO.  The scope
of your job as COO continues to include responsibility for Manufacturing
Operations (both Derby and San Diego), RMA departments, and Professional
Services and Customer Support departments worldwide.  There will be ‘dotted line’ reporting from
some of your direct reports to others, such as the US Operations Manager and UK
Operations Manager liasing with the CFO, and certain European support staff
liasing with their country or regional managers by example.  You will continue to have measurable
targets/goals in line with our financial projections as a prime means of
assessing your performance.  Your
responsibilities may be changed by the CEO unilaterally from time to time.

 

The
only change to the Agreement is that the section labeled “Current Salary” is
deleted and replaced with the following:

 

1.             Current Salary. 
Your salary will be $255,000.00 per year effective today.  You also are eligible, as of CQ1 2009, for
quarterly bonuses up to $18,750 per quarter based on meeting key parameters
such as revenue and margins taken from the official financial projections of
record, the exact percentage split and parameters to be determined by the CEO
and notified to you.  You must be
employed on the last of the calendar quarter to receive a bonus payment for
that quarter.  Your bonus for a calendar
quarter will be paid within a reasonable period (not to exceed 45 days)
beginning 45 days after the last day of the calendar quarter.  Your 

 

 

salary and bonus may be
subject to review from time to time at the Company’s discretion.

 

All
other terms and conditions in the Agreement remain the same

 

Thank
you for your contributions to helping make Nexsan a great company,

 

 

Signed and agreed this 15th day of December 2008.

 

 

	
  Nexsan
  Technologies, Inc.

  	
   

  	
  Employee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Philip Black

  	
   

  	
  /s/ Rik Mussman

  
	
  Philip Black, CEO

  	
   

  	
  Rik Mussman

  

 

2EXHIBIT 10.14.1

 

AMENDMENT OF
INDUSTRIAL LEASE - NO. 1

 

THIS FIRST AMENDMENT TO
INDUSTRIAL LEASE (“First Amendment”) dated October 10, 2003 is made as of January 2,
2009 by and between Enterprise Heights Industrial Centre Associates, as Lessor,
and Nexsan Technologies, Inc., as Lessee.

 

RECITALS

 

A.                                   PARTIES: 
Landlord is the present Lessor under that certain Industrial Lease,
described in recital B below.  Tenant is
that Lessee under the Industrial Lease for the lease of certain industrial
space identified as 302 Enterprise Street, Suite A (approximately 13,772
square feet), Escondido, California.

 

A.                                   INDUSTRIAL LEASE: 
The Industrial Lease consists of the following agreements by and between
Lessor and Lessee:

 

·                  That certain Industrial Lease dated October 10,
2003

 

·                  Addendum One to Industrial Lease

 

B.                                     PURPOSE: 
By this Agreement, Lessor and Lessee desire to amend the Lease as noted
in the following paragraphs.  All other
terms and conditions of the Lease shall remain in full force and effect.

 

TERMS

 

1.                                      TERM

 

The lease term shall be extended for a period of three
(3) years (Extended Term) commencing March 1, 2009 and expiring February 28,
2012.

 

2.                                      RENT SCHEDULE:

 

The rent schedule shall be as follows:

 

	
  March 1, 2009 - February 28, 2010:

  	
   

  	
  $11,293.05 per month

  
	
  March 1, 2010 - February 28, 2011:

  	
   

  	
  $11,631.85 per month

  
	
  March 1, 2011 - February 29, 2012:

  	
   

  	
  $11,980.80 per month

  

 

3.                                      TRASH/WATER:

 

Lessee agrees to pay a monthly common area operating
expense fee of $964.00 per month.  This
fee shall be fixed for the Extended Term of the lease.

 

 

4.                                      CONDITION OF PREMISES:

 

Lessee shall remain the Premises in “AS IS” condition.

 

5.                                      FIRST RIGHT TO EXPAND:

 

Provided Lessee is not in default of any of the terms
and conditions of the Lease, Lessee shall have the first right of refusal to
expand into 302, Suite C (6,788 square feet) if the suite becomes
available and Lessor is marketing the suite for rent.  Rent for Suite C shall be the then
prevailing market rate in the Escondido area. 
Lessee must given Lessor notice of its intent to exercise the first
right within ten (10) business days of notice of the suite’s
availability.  Should Lessor not receive
Lessee’s written notice to expand, Lessor shall have the right to market the
suite to prospective tenants and Lessee’s option shall become null and void.

 

6.                                      RIGHT TO TERMINATE:

 

During the Extended Term, should Lessee wish to expand
and Lessor is unable to provide expansion space within the building, Lessee
shall have the right to terminate the lease by providing Lessor with ninety
(90) days prior written notice.  Lessee
must provide documentation that Lessee has outgrown the current suite.  Prior to the effective termination date,
Lessee must also provide documentation of Lessee’s intent and readiness to
execute a lease in another project able to accommodate the increased square
footage.  Lessee will be responsible to
Lessor for any unamortized brokerage commission if the lease is terminated.

 

7.                                      MODIFICATION AND
CLARIFICATION OF ASSIGNMENT AND SUBLETTING:

 

In addition to paragraph 12 of the Lease, Lessor
and Lessee specifically agree to the following:

 

If at any time during the lease period the Lessee
wishes to be relieved of the obligations for all or part of the space under the
Lease and Lessee delivers written notification to the Lessor of such interest,
Lessor, at his sole option, shall have the option to terminate the lease per a
mutually agreed upon time period not to exceed 90 days.  In any event, Lessee shall reserve their right
to sublease at any point in time per the Master Lease and the Lessor may not
unreasonably withhold their right to sublease.

 

8.                                      EFFECTIVENESS OF LEASE:

 

Except as expressly provided herein, nothing in this
Agreement shall be deemed to waive or modify any of the provisions of the
Lease, or any amendment or addendum thereto. 
In the event of any conflict between the Lease, this Agreement or any
other amendment or addendum thereof, the document later in time shall prevail.

 

2

 

9.                                      SUCCESSORS AND ASSIGNS:

 

This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the respective parties to this
Agreement.

 

10.                               COUNTERPARTS:

 

This Agreement may be executed in several
counterparts, each of which may be deemed an original, but all of which
together constitute one and the same Agreement.

 

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

 

 

	
  LESSOR:

  	
   

  	
  LESSEE:

  
	
   

  	
   

  	
   

  
	
  ENTERPRISE
  HEIGHTS INDUSTRIAL

  CENTRE ASSOCIATES

  	
   

  	
  NEXSAN
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Charles Swimmer

  	
   

  	
  By:

  	
  /s/
  Gene Spies

  
	
   

  	
       Charles Swimmer

  	
   

  	
   

  	
       Gene Spies

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  General
  Partner

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  2-10-2009

  	
   

  	
  Date:

  	
  1/13/2009

  

 

3

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