Document:

EXHIBIT 10.38

NEXSAN CORPORATION

2010 EMPLOYEE STOCK PURCHASE PLAN

 

1.                                  Establishment
of Plan.  Nexsan Corporation (the “Company”) proposes to grant options
for purchase of the Company’s Common Stock to eligible employees of the Company
and its Participating Corporations (as hereinafter defined) pursuant to this
Employee Stock Purchase Plan (this “Plan”). All
share numbers in the Plan are after adjustment for the reverse stock split
approved by the Board of Directors on February 4, 2010. For purposes of this
Plan, “Parent” and “Subsidiary” shall have the same meanings as “parent
corporation” and “subsidiary corporation” in Sections 424(e) and 424(f),
respectively, of the Internal Revenue Code of 1986, as amended (the “Code”),
and “Corporate Group” shall refer collectively to the Company and all its
Parents and Subsidiaries.  “Participating
Corporations” are the Company and any Parents or Subsidiaries that the Board of
Directors of the Company (the “Board”)
designates from time to time as corporations that shall participate in this
Plan.  The Company intends this Plan to
qualify as an “employee stock purchase plan” under Section 423 of the Code
(including any amendments to or replacements of such Section), and this Plan
shall be so construed.  Any term not expressly
defined in this Plan but defined for purposes of Section 423 of the Code
shall have the same definition herein. 
Subject to Section 14, a total of 193,045 shares of the Company’s
Common Stock is reserved for issuance under this Plan.  In addition, on each January 1 for the
first ten (10) calendar years after the first Offering Date, the aggregate
number of shares of the Company’s Common Stock reserved for issuance under the
Plan shall be increased automatically by the number of shares equal to 0.5% of
the total number of outstanding shares of the Company Common Stock on the
immediately preceding December 31 (rounded down to the nearest whole
share); provided, that the Board or the Committee may in its sole
discretion reduce the amount of the increase in any particular year; and, provided
further, that the aggregate number of shares issued over the term of this
Plan shall not exceed nine hundred sixty-five thousand two hundred and
twenty-five (965,225) shares of Common Stock. 
The number of shares reserved for issuance under this Plan and the
maximum number of shares that may be issued under this Plan shall be subject to
adjustments effected in accordance with Section 14 of this Plan.

 

2.                                  Purpose.  The purpose of this Plan is to provide
eligible employees of the Company and Participating Corporations with a means
of acquiring an equity interest in the Company through payroll deductions, to
enhance such employees’ sense of participation in the affairs of the Company
and Participating Corporations, and to provide an incentive for continued
employment.

 

3.                                  Administration.  The Plan will be administered by the
Compensation Committee of the Board or by the Board (either referred to herein
as the “Committee”).  Subject to the provisions of this Plan and
the limitations of Section 423 of the Code or any successor provision in
the Code, all questions of interpretation or application of this Plan shall be
determined by the Committee and its decisions shall be final and binding upon
all Participants.  The Committee will
have full and exclusive discretionary authority to construe, interpret and
apply the terms of the Plan, to determine eligibility and decide upon any and
all claims filed under the Plan.  Every
finding, decision and determination made by the Committee will, to the full
extent permitted by law, be final and binding upon all parties.  Notwithstanding any provision to the contrary
in this Plan, the Committee may adopt rules and/or procedures relating to
the operation and 

 

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administration
of the Plan to accommodate requirements of local law and procedures outside of
the United States.  Members of the
Committee shall receive no compensation for their services in connection with
the administration of this Plan, other than standard fees as established from
time to time by the Board for services rendered by Board members serving on
Board committees.  All expenses incurred
in connection with the administration of this Plan shall be paid by the
Company.

 

4.                                  Eligibility.  Any employee of the Company or the
Participating Corporations is eligible to participate in an Offering Period (as
hereinafter defined) under this Plan except the following:

 

(a) employees who are not employed by the Company or a
Participating Corporation for at least three (3) months prior to the
beginning of such Offering Period or prior to such other time period as
specified by the Committee;

 

(b)  employees who are customarily employed for twenty (20) hours
or less per week;

 

(c)  employees who are customarily employed for five (5) months
or less in a calendar year;

 

(d)  employees who, together with any other person whose stock
would be attributed to such employee pursuant to Section 424(d) of
the Code, own stock or hold options to purchase stock possessing five percent
(5%) or more of the total combined voting power or value of all classes of
stock of the Company or any of its Participating Corporations or who, as a
result of being granted an option under this Plan with respect to such Offering
Period, would own stock or hold options to purchase stock possessing five
percent (5%) or more of the total combined voting power or value of all classes
of stock of the Company or any of its Participating Corporations;

 

(e)  employees who do not meet any other eligibility requirements
that the Committee may choose to impose (within the limits permitted by the
Code); and

 

(f)  individuals who provide services to the Company or any of its
Participating Corporations as independent contractors who are reclassified as
common law employees for any reason except for federal
income and employment tax purposes.

 

5.                                  Offering
Dates.

 

(a)  The offering periods of this Plan (each, an “Offering Period”) may be of up to
twenty-four (24) months duration and shall commence and end at the times
designated by the Committee.  Each
Offering Period may consist of up to five (5) purchase periods
(individually, a “Purchase Period”) during
which payroll deductions of Participants are accumulated under this Plan.

 

(b)  The initial Offering Period shall commence on the date on
which the Registration Statement covering the initial public offering of shares
of the Company’s Common Stock is declared effective by the U.S. Securities and
Exchange Commission (the “Effective Date”),
and shall end with the Purchase Date that occurs on or prior to March 15th
or September 15th that first occurs six months or more after the Effective
Date.  The initial Offering Period shall
consist of a single Purchase Period. 
Thereafter, a six-month Offering Period shall 

 

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commence
on each March 16th or September 16th, with each such Offering Period
also consisting of a single six-month Purchase Period.

 

(c)  The first business day of each Offering Period is referred to
as the “Offering Date,” however, for
the initial Offering Period this shall be the Effective Date.  The last business day of each Purchase Period
is referred to as the “Purchase Date.”  The Committee shall have the power to change
these terms as provided in Section 25 below.

 

6.                                  Participation
in this Plan.

 

(a)  Any employee who is an eligible employee determined in
accordance with Section 4 immediately prior to the initial Offering Period
will be automatically enrolled in the initial Offering Period under this
Plan.  With respect to subsequent
Offering Periods, any eligible employee determined in accordance with Section 4
will be eligible to participate in this Plan, subject to the requirement of Section 6(b) hereof
and the other terms and provisions of this Plan.  Eligible employees who meet the eligibility
requirements set forth in Section 4 and who are either automatically
enrolled in the initial offering period or who elect to participate in the this
Plan pursuant to Section 6(b) are referred to herein as a “Participant” or collectively as “Participants.”

 

(b)                 Notwithstanding the
foregoing, (i) an eligible employee may elect to decrease the number of
shares of Common Stock that such employee would otherwise be permitted to
purchase for the initial Offering Period under the Plan and/or purchase shares
of Common Stock for the initial Offering Period through payroll deductions by
delivering a subscription agreement to the Company within thirty (30) days
after the filing of an effective registration statement pursuant to Form S-8
and (ii) the Committee may set a later time for filing the subscription
agreement authorizing payroll deductions for all eligible employees with
respect to a given Offering Period.  With
respect to Offering Periods after the initial Offering Period, a Participant
may elect to participate in this Plan by submitting a subscription agreement
prior to the commencement of the Offering Period (or such earlier date as the
Committee may determine) to which such agreement relates.

 

(c)                        Once an
employee becomes a Participant in an Offering Period, then such Participant
will automatically participate in the Offering Period commencing immediately
following the last day of such prior Offering Period unless the Participant
withdraws or is deemed to withdraw from this Plan or terminates further
participation in the Offering Period as set forth in Section 11
below.  Such Participant is not required
to file any additional subscription agreement in order to continue
participation in this Plan.

 

7.                                  Grant
of Option on Enrollment. 
Becoming a Participant with respect to an Offering Period will
constitute the grant (as of the Offering Date) by the Company to such
Participant of an option to purchase on the Purchase Date up to that number of
shares of Common Stock of the Company determined by a fraction, the numerator
of which is the amount accumulated in such Participant’s payroll deduction
account during such Purchase Period and the denominator of which is the
lower of (i) eighty-five percent (85%) of the fair market value of a share
of the Company’s Common Stock on the Offering Date (but in no event less than
the par value of a share of the Company’s 
Common Stock), or (ii) eighty-five percent (85%) of the fair market
value of a share of the Company’s  Common
Stock on the Purchase Date (but in no event 

 

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less
than the par value of a share of the Company’s 
Common Stock) provided, however, that for the Purchase
Period within the initial Offering Period the numerator shall be fifteen
percent (15%) of the Participant’s compensation for such Purchase Period and provided, further, that the
number of shares of the Company’s Common Stock subject to any option granted
pursuant to this Plan shall not exceed the lesser of (x) the maximum
number of shares set by the Committee pursuant to Section 10(b) below
with respect to the applicable Purchase Date, or (y) the maximum number of
shares which may be purchased pursuant to Section 10(a) below with
respect to the applicable Purchase Date. 
The fair market value of a share of the Company’s Common Stock shall be
determined as provided in Section 8 below.

 

8.                                  Purchase
Price.  The purchase price per share
at which a share of Common Stock will be sold in any Offering Period shall be
eighty-five percent (85%) of the lesser of:

 

(a)  The fair market value on the Offering Date; or

 

(b)  The fair market value on the Purchase Date.

 

The term “fair market value” means, as
of any date, the value of a share of the Company’s Common Stock determined as
follows:

 

(i)  if such Common Stock is then quoted on the Nasdaq Global
Select Market, the Nasdaq Global Market or the Nasdaq Capital Market
(collectively, the “Nasdaq Market”), its closing
price on the Nasdaq Market on the date of determination, or if there are no
sales for such date, then the last preceding business day on which there were
sales, as reported in The Wall Street
Journal or such other source as the Board or the Committee deems
reliable; or

 

(ii)  if such Common Stock is publicly traded and is then listed
on a national securities exchange, its closing price on the date of
determination on the principal national securities exchange on which the Common
Stock is listed or admitted to trading as reported in The Wall Street Journal or such other
source as the Board or the Committee deems reliable; or

 

(iii)  if such Common Stock is publicly traded but is neither
quoted on the Nasdaq Market nor listed or admitted to trading on a national
securities exchange, the average of the closing bid and asked prices on the
date of determination as reported in The
Wall Street Journal or such other source as the Board or the
Committee deems reliable; or

 

(iv)  with respect to the initial Offering Period, “fair market
value” on the Offering Date shall be the price at which shares of Common Stock
are offered to the public pursuant to the Registration Statement covering the
initial public offering of shares of the Company’s Common Stock; and

 

(v)  if none of the foregoing is applicable, by the Board or the
Committee in good faith.

 

9.                                  Payment
of Purchase Price; Payroll Deduction Changes; Share Issuances.

 

(a)  The purchase price of the shares is accumulated by regular
payroll deductions made during each Offering Period.  The deductions are made as a percentage of
the Participant’s compensation in one percent (1%) increments not less than one
percent (1%), nor greater than fifteen percent (15%) or such lower limit set by
the Committee.  Compensation shall mean
all W-2 cash compensation categorized by the Company as base salary or regular
hourly wages, and expressly excluding commissions, overtime, shift premiums,
bonuses and incentive 

 

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compensation,
plus draws against commissions, provided, however,
that for purposes of determining a Participant’s compensation, any election by
such Participant to reduce his or her regular cash remuneration under Sections
125 or 401(k) of the Code shall be treated as if the Participant did not
make such election.  Payroll deductions
shall commence on the first payday following the last Purchase Date (first
payday following the effective date of filing with the U.S. Securities and
Exchange Commission a securities registration statement for the Plan with respect
to the initial Offering Period) and shall continue to the end of the Offering
Period unless sooner altered or terminated as provided in this Plan.

 

(b)  A Participant may decrease the rate of payroll deductions
during an Offering Period by filing with the Company a new authorization for
payroll deductions, with the new rate to become effective for the next payroll
period commencing after the Company’s receipt of the authorization and
continuing for the remainder of the Offering Period unless changed as described
below.  Such change in the rate of
payroll deductions may be made at any time during an Offering Period, but not
more than one (1) decrease may be made effective during any Purchase
Period.  A Participant may increase or
decrease the rate of payroll deductions for any subsequent Offering Period by
filing with the Company a new authorization for payroll deductions prior to the
beginning of such Offering Period, or such other time period as specified by
the Committee.

 

(c)  A Participant may reduce his or her payroll deduction
percentage to zero during an Offering Period by filing with the Company a
request for cessation of payroll deductions. 
Such reduction shall be effective beginning with the next payroll period
after the Company’s receipt of the request and no further payroll deductions
will be made for the duration of the Offering Period.  Payroll deductions credited to the
Participant’s account prior to the effective date of the request shall be used
to purchase shares of Common Stock of the Company in accordance with Section (e) below.  A reduction of the payroll deduction
percentage to zero shall be treated as such Participant’s withdrawal from such
Offering Period, and the Plan, effective as of the day after the next Purchase
Date following the filing date of such request with the Company.

 

(d)  All payroll deductions made for a Participant are credited to
his or her account under this Plan and are deposited with the general funds of
the Company.  No interest accrues on the
payroll deductions.  All payroll
deductions received or held by the Company may be used by the Company for any
corporate purpose, and the Company shall not be obligated to segregate such
payroll deductions.

 

(e)  On each Purchase Date, so long as this Plan remains in effect
and provided that the Participant has not submitted a signed and completed
withdrawal form before that date which notifies the Company that the
Participant wishes to withdraw from that Offering Period under this Plan and
have all payroll deductions accumulated in the account maintained on behalf of
the Participant as of that date returned to the Participant, the Company shall
apply the funds then in the Participant’s account to the purchase of whole
shares of Common Stock reserved under the option granted to such Participant
with respect to the Offering Period to the extent that such option is
exercisable on the Purchase Date.  The
purchase price per share shall be as specified in Section 8 of this
Plan.  Any amount remaining in a
Participant’s account on a Purchase Date which is less than the amount
necessary to purchase a full share of the Company’s Common Stock shall be
carried forward, without interest, into the next Purchase Period or 

 

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Offering
Period, as the case may be.  In the event
that this Plan has been oversubscribed, all funds not used to purchase shares
on the Purchase Date shall be returned to the Participant, without interest.  No Common Stock shall be purchased on a
Purchase Date on behalf of any employee whose participation in this Plan has
terminated prior to such Purchase Date.

 

(f)  As promptly as practicable after the Purchase Date, the
Company shall issue shares for the Participant’s benefit representing the
shares purchased upon exercise of his or her option.

 

(g)  During a Participant’s lifetime, his or her option to
purchase shares hereunder is exercisable only by him or her.  The Participant will have no interest or
voting right in shares covered by his or her option until such option has been
exercised.

 

10.                           Limitations
on Shares to be Purchased.

 

(a)  No Participant shall be entitled to purchase stock under any
Offering Period at a rate which, when aggregated with such Participant’s rights
to purchase stock, that are also outstanding in the same calendar year(s) (whether
under other Offering Periods or other employee stock purchase plans of the
Corporate Group), exceeds $25,000 in fair market value, determined as of the
Offering Date, (or such other limit as may be imposed by the Code) for each
calendar year in which such Offering Period is in effect (hereinafter the “Maximum
Share Amount”).  The Company shall
automatically suspend the payroll deductions of any Participant as necessary to
enforce such limit provided that when the Company automatically resumes such
payroll deductions, the Company must apply the rate in effect immediately prior
to such suspension.

 

(b)  The Committee may, in its sole discretion, set a lower
maximum number of shares which may be purchased by any Participant during any
Offering Period than that determined under Section 10(a) above, which
shall then be the Maximum Share Amount for subsequent Offering Periods;
provided, however, in no event shall a Participant be permitted to purchase
more than 100,000 Shares during any one Offering Period, irrespective of the
Maximum Share Amount set forth in (a) and (b) hereof.  If a new Maximum Share Amount is set, then
all Participants must be notified of such Maximum Share Amount prior to the
commencement of the next Offering Period for which it is to be effective.  The Maximum Share Amount shall continue to
apply with respect to all succeeding Offering Periods unless revised by the
Committee as set forth above.

 

(c)  If the number of shares to be purchased on a Purchase Date by
all Participants exceeds the number of shares then available for issuance under
this Plan, then the Company will make a pro rata allocation of the remaining
shares in as uniform a manner as shall be reasonably practicable and as the
Committee shall determine to be equitable. 
In such event, the Company shall give written notice of such reduction
of the number of shares to be purchased under a Participant’s option to each
Participant affected.

 

(d)  Any payroll deductions accumulated in a Participant’s account
which are not used to purchase stock due to the limitations in this Section 10,
and not covered by Section 9(e), shall be returned to the Participant as
soon as practicable after the end of the applicable Purchase Period, without
interest.

 

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11.                           Withdrawal.

 

(a)  Each Participant may withdraw from an Offering Period under
this Plan by signing and delivering to the Company a written notice to that
effect on a form provided for such purpose by the Company.  Such withdrawal may be elected at any time
prior to the end of an Offering Period, or such other time period as specified
by the Committee.

 

(b)  Upon withdrawal from this Plan, the accumulated payroll
deductions shall be returned to the withdrawn Participant, without interest,
and his or her interest in this Plan shall terminate.  In the event a Participant voluntarily elects
to withdraw from this Plan, he or she may not resume his or her participation
in this Plan during the same Offering Period, but he or she may participate in
any Offering Period under this Plan which commences on a date subsequent to
such withdrawal by filing a new authorization for payroll deductions in the
same manner as set forth in Section 6 above for initial participation in
this Plan.

 

12.                               Termination
of Employment.  Termination
of a Participant’s employment for any reason, including retirement, death,
disability, or the failure of a Participant to remain an eligible employee of
the Company or of a Participating Corporation, immediately terminates his or
her participation in this Plan.  In such
event, accumulated payroll deductions credited to the Participant’s account
will be returned to him or her or, in the case of his or her death, to his or
her legal representative, without interest. 
For purposes of this Section 12, an employee will not be deemed to
have terminated employment or failed to remain in the continuous employ of the
Company or of a Participating Corporation in the case of sick leave, military
leave, or any other leave of absence approved by the Company; provided
that such leave is for a period of not more than ninety (90) days or
reemployment upon the expiration of such leave is guaranteed by contract or
statute.

 

13.                           Return
of Payroll Deductions.  In
the event a Participant’s interest in this Plan is terminated by withdrawal,
termination of employment or otherwise, or in the event this Plan is terminated
by the Board, the Company shall deliver to the Participant all accumulated
payroll deductions credited to such Participant’s account.  No interest shall accrue on the payroll
deductions of a Participant in this Plan.

 

14.                           Capital
Changes.  If the number of outstanding
Shares is changed by a stock dividend, recapitalization, stock split, reverse
stock split, subdivision, combination, reclassification or similar change in
the capital structure of the Company, without consideration, then the Committee
shall adjust the number and class of Common Stock that may be delivered under
the Plan, the purchase price per share and the number of shares of Common Stock
covered by each option under the Plan which has not yet been exercised, and the
numerical limits of Sections 1 and 10 shall be proportionately adjusted,
subject to any required action by the Board or the stockholders of the Company
and in compliance with applicable securities laws; provided that fractions of a
Share will not be issued.

 

15.                           Nonassignability.  Neither payroll deductions credited to a
Participant’s account nor any rights with regard to the exercise of an option
or to receive shares under this Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 22 below) by the Participant.  Any such attempt at assignment, transfer,
pledge or other disposition shall be void and without effect.

 

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16.                           Use of
Participant Funds and Reports.  The Company may use all payroll deductions
received or held by it under the Plan for any corporate purpose, and the
Company will not be required to segregate Participant payroll deductions.  Until Shares are issued, Participants will
only have the rights of an unsecured creditor. 
Each Participant shall receive promptly after the end of each Purchase
Period a report of his or her account setting forth the total payroll
deductions accumulated, the number of shares purchased, the per share price
thereof and the remaining cash balance, if any, carried forward to the next Purchase
Period or Offering Period, as the case may be.

 

17.                           Notice
of Disposition.  Each
Participant shall notify the Company in writing if the Participant disposes of
any of the shares purchased in any Offering Period pursuant to this Plan if
such disposition occurs within two (2) years from the Offering Date or
within one (1) year from the Purchase Date on which such shares were
purchased (the “Notice Period”).  The Company may, at any time during the
Notice Period, place a legend or legends on any certificate representing shares
acquired pursuant to this Plan requesting the Company’s transfer agent to
notify the Company of any transfer of the shares.  The obligation of the Participant to provide
such notice shall continue notwithstanding the placement of any such legend on
the certificates.

 

18.                           No
Rights to Continued Employment.  Neither this Plan nor the grant of any option
hereunder shall confer any right on any employee to remain in the employ of the
Company or any Participating Corporation, or restrict the right of the Company
or any Participating Corporation to terminate such employee’s employment.

 

19.                           Equal
Rights And Privileges.  All
eligible employees shall have equal rights and privileges with respect to this
Plan so that this Plan qualifies as an “employee stock purchase plan” within
the meaning of Section 423 or any successor provision of the Code and the
related regulations.  Any provision of
this Plan which is inconsistent with Section 423 or any successor
provision of the Code shall, without further act or amendment by the Company,
the Committee or the Board, be reformed to comply with the requirements of Section 423.  This Section 19 shall take precedence
over all other provisions in this Plan.

 

20.                           Notices.  All notices or other communications by a
Participant to the Company under or in connection with this Plan shall be
deemed to have been duly given when received in the form specified by the
Company at the location, or by the person, designated by the Company for the
receipt thereof.

 

21.                           Term;
Stockholder Approval.  This Plan
will become effective on the Effective Date. 
This Plan shall be approved by the stockholders of the Company, in any
manner permitted by applicable corporate law, within twelve (12) months before
or after the date this Plan is adopted by the Board.  No purchase of shares that are subject to
such stockholder approval before becoming available under this Plan shall occur
prior to stockholder approval of such shares and the Board or Committee may
delay any Purchase Date and postpone the commencement of any Offering Period
subsequent to such Purchase Date as deemed necessary or desirable to obtain
such approval (provided that if a Purchase Date would occur more than
twenty-four (24) months after commencement of the Offering Period to which it
relates, then such Purchase Date shall not occur and instead such Offering
Period shall terminate without the purchase of such shares and Participants in
such Offering Period shall be refunded their contributions without interest).  This Plan shall continue until the earlier to
occur of (a) termination of this Plan by the Board (which termination may
be effected by the Board at any 

 

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time pursuant to Section 25 below), (b) issuance of all of
the shares of Common Stock reserved for issuance under this Plan, or (c) the
tenth anniversary of the first Purchase Date under the Plan.

 

22.                           Designation
of Beneficiary.

 

(a)  A Participant may file a written designation of a beneficiary
who is to receive any shares and cash, if any, from the Participant’s account
under this Plan in the event of such Participant’s death subsequent to the end
of a Purchase Period but prior to delivery to him of such shares and cash.  In addition, a Participant may file a written
designation of a beneficiary who is to receive any cash from the Participant’s
account under this Plan in the event of such Participant’s death prior to a
Purchase Date.

 

(b)  Such designation of beneficiary may be changed by the Participant
at any time by written notice.  In the
event of the death of a Participant and in the absence of a beneficiary validly
designated under this Plan who is living at the time of such Participant’s
death, the Company shall deliver such shares or cash to the executor or
administrator of the estate of the Participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such shares or cash to the spouse or to
any one or more dependents or relatives of the Participant, or if no spouse,
dependent or relative is known to the Company, then to such other person as the
Company may designate.

 

23.                           Conditions
Upon Issuance of Shares; Limitation on Sale of Shares.  Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such
shares pursuant thereto shall comply with all applicable provisions of law, domestic
or foreign, including, without limitation, the Securities Act, the Securities
Exchange Act of 1934, as amended, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange or automated quotation
system upon which the shares may then be listed, and shall be further subject
to the approval of counsel for the Company with respect to such compliance.

 

24.                           Applicable
Law.  The Plan shall be governed by
the substantive laws (excluding the conflict of laws rules) of the State of
Delaware.

 

25.                           Amendment
or Termination.  The
Committee, in its sole discretion, may amend, suspend, or terminate the Plan,
or any part thereof, at any time and for any reason. If the Plan is terminated,
the Committee, in its discretion, may elect to terminate all outstanding
Offering Periods either immediately or upon completion of the purchase of
shares of Common Stock on the next Purchase Date (which may be sooner than
originally scheduled, if determined by the Committee in its discretion), or may
elect to permit Offering Periods to expire in accordance with their terms (and
subject to any adjustment pursuant to Section 14). If an Offering Period
is terminated prior to its previously-scheduled expiration, all amounts then
credited to Participants’
accounts for such Offering Period, which have not been used to purchase shares
of the Company’s Common Stock, shall be returned to those Participants (without
interest thereon, except as otherwise required under local laws) as soon as
administratively practicable. Further, the Committee will be entitled to change
the Offering Periods, limit the frequency and/or number of changes in the
amount withheld during an Offering Period, establish the exchange ratio
applicable to amounts withheld in a currency other than U.S. dollars, permit
payroll withholding in excess of the amount designated by a Participant 

 

9

 

in order to adjust for delays or mistakes in the administration of the
Plan, establish reasonable waiting and adjustment periods and/or accounting and
crediting procedures to ensure that amounts applied toward the purchase of the
Company’s Common Stock for each Participant properly correspond with amounts
withheld from the Participant’s base salary or regular hourly wages, and
establish such other limitations or procedures as the Committee determines in
its sole discretion advisable which are consistent with the Plan. Such actions
will not require stockholder approval or the consent of any Participants.  However, no amendment shall be made without
approval of the stockholders of the Company (obtained in accordance with Section 21
above) within twelve (12) months of the adoption of such amendment (or earlier
if required by Section 21) if such amendment would: (a) increase the
number of shares that may be issued under this Plan; or (b) change the
designation of the employees (or class of employees) eligible for participation
in this Plan.

 

26.                           Corporate
Transactions.

 

(a) In the event of a Corporate Transaction (as defined below),
each outstanding right to purchase Company Common Stock will be assumed or an
equivalent option substituted by the successor corporation or a parent or a
subsidiary of the successor corporation. 
In the event that the successor corporation refuses to assume or
substitute for the purchase right, the Offering Period with respect to which
such purchase right relates will be shortened by setting a new Purchase Date
(the “New Purchase Date”) and will
end on the New Purchase Date.  The New
Purchase Date shall occur on or prior to the consummation of the Corporate
Transaction.

 

(b) “Corporate Transaction” means
the occurrence of any of the following events: (i) any “person” (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes
the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act),
directly or indirectly, of securities of the Company representing fifty percent
(50%) or more of the total voting power represented by the Company’s then
outstanding voting securities; or  (ii) the
consummation of the sale or disposition by the Company of all or substantially
all of the Company’s assets; or (iii) the consummation of a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or its parent) at least fifty percent (50%) of the total
voting power represented by the voting securities of the Company or such
surviving entity or its parent outstanding immediately after such merger or
consolidation.

 

10

 

	
  NEXSAN
  CORPORATION (THE “COMPANY”)  

  2010
  EMPLOYEE STOCK PURCHASE PLAN (“ESPP”)

  	
  ENROLLMENT/CHANGE
  FORM

  

 

	
  SECTION 1:

   

  ACTIONS

  	
   

  	
  CHECK
  DESIRED ACTION:

   

  o                 Enroll in the ESPP

  o                 Change Contribution
  Percentage

  o                 Discontinue Contributions

  	
  AND COMPLETE SECTIONS:

   

  2
  + 3 + 4 + 6

  2
  + 4 + 6

  2
  + 5 + 6

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2:

   

  PERSONAL
  DATA

  	
   

  	
  Name:

   

  Home
  Address:

   

  Social
  Security No.:  ooo-oo-oooo

  	
  Department:

  
	
   

  	
   

  	
   

  
	
  SECTION 3:

   

  ENROLL

  	
   

  	
  I
  hereby elect to participate in the ESPP, effective at the beginning of the
  next Offering Period (or with the first Offering Period).  I elect to purchase shares of the Common
  Stock of the Company pursuant to the ESPP. 
  I understand that the stock certificate(s) for the shares
  purchased on my behalf will be issued in street name and deposited directly
  into my brokerage account.  I hereby
  agree to take all steps, and sign all forms, required to establish an account
  with             for
  this purpose.

   

  My
  participation will continue as long as I remain eligible, unless I withdraw
  from the ESPP by filing a new Enrollment/Change Form with the
  Company.  I understand that I must
  notify the Company of any disposition of shares purchased under the ESPP.

  
	
   

  	
   

  	
   

  
	
  SECTION 4:

   

  ELECT
  CONTRIBUTION PERCENTAGE

  	
   

  	
  I
  hereby authorize the Company to withhold from each of my paychecks such
  amount as is necessary to equal at the end of the applicable Offering Period      %
  of my compensation (as defined in the ESPP) paid during such Offering Period
  as long as I continue to participate in the ESPP.  That amount will be applied to the purchase
  of shares of the Company’s Common Stock pursuant to the ESPP.  The percentage must be a
  whole number (from 1%, up to a maximum of 15%).

   

  Please
  o-increase o-decrease my
  contribution percentage.

   

  Note:                  You may change your
  contribution percentage only once within an Offering Period to be effective
  during such Offering Period and such change can only be to decrease your
  contribution percentage.  An
  increase in your contribution percentage can only take effect with the next
  Offering Period.  Each change will
  become effective as soon as reasonably practicable after the form is received
  by the Company.

  
	
   

  	
   

  	
   

  
	
  SECTION 5:

   

  DISCONTINUE
  CONTRIBUTIONS

  	
   

  	
  o                 I hereby elect to stop my contributions
  under the ESPP, effective as soon as reasonably practicable after this
  form is received by the Company. 
  Please o- refund all
  contributions to me in cash, without interest OR o- use my
  contributions to purchase shares on the next Purchase Date.  I understand that I
  cannot resume participation until the start of the next Offering Period and
  must timely file a new enrollment form to do so.

  
	
   

  	
   

  	
   

  
	
  SECTION 6:

   

  ACKNOWLEDGMENT
  AND SIGNATURE

  	
   

  	
  I acknowledge that I have
  received a copy of the ESPP and of the Prospectus (which summarizes the major
  features of the ESPP).  I have read the
  Prospectus and my signature below (or my clicking on the Accept box if this
  is an electronic form) indicates that I hereby agree to be bound by the terms
  of the ESPP.

   

  Signature:                                                                                                                    Date:Exhibit 4.1

 

	
  

  	
  Delaware NUMBER
  # SHARES *#* NEW POWER-ONE, INC. AUTHORIZED: 330,000,000 SHARES SEE LEGEND ON
  REVERSE SIDE OF THIS CERTIFICATE 300,000,000 SHARES COMMON STOCK 30,000,000
  SHARES PREFERRED STOCK $0.001 PAR VALUE EACH $0.001 PAR VALUE EACH This
  Certifies that SAMPLE ONLY is the owner of **#** Shares of the Capital Stock
  of SERIES A CONVERTIBLE PREFERRED STOCK OF NEW POWER-ONE, INC. transferable
  only on the books of the Corporation by the holder hereof in person or by
  Attorney upon surrender of this Certificate properly endorsed. IN WITNESS
  WHEREOF, the said Corporation has caused this Certificate to be signed by its
  duly authorized officers and its Corporate Seal to be hereunto affixed this
  day of A.D. 20 © GOES 70 1/2

  

 

	
  

  	
  THE CERTIFICATE
  OF INCORPORATION (THE “CERTIFICATE OF INCORPORATION”) OF THE CORPORATION
  CONTAINS RESTRICTIONS PROHIBITING, SUBJECT TO CERTAIN LIMITED EXCEPTIONS, THE
  TRANSFER (AS DEFINED IN THE CERTIFICATE OF INCORPORATION) OF ANY SOCK OF THE
  CORPORATION (INCLUDING THE CREATION OR GRANT OF CERTAIN OPTIONS) WITHOUT THE
  PRIOR AUTHORIZATION OF THE BOARD OF DIRECTORS OF THE CORPORATION (THE “BOARD
  OF DIRECTORS”) IF SUCH TRANSFER AFFECTS THE PERCENTAGE OF STOCK OF THE
  CORPORATION (WITHIN THE MEANING OF SECTION 382 OF THE INTERNAL REVENUE CODE
  OF 1986, AS AMENDED (THE “CODE”) AND THE TREASURY REGULATIONS PROMULGATED
  THEREUNDER) THAT IS TREATED AS OWNED BY A 5-PERCENT SHAREHOLDER UNDER SECTION
  382 OF THE CODE AND SUCH REGULATIONS. IF THE TRANSFER RESTRICTIONS ARE
  VIOLATED, THEN THE TRANSFER WILL BE VOID AB INITIO AND THE PURPORTED
  TRANSFEREE OF THE STOCK WILL BE REQUIRED TO TRANSFER EXCESS SECURITIES (AS
  DEFINED IN THE CERTIFICATE OF INCORPORATION) TO THE CORPORATION’S AGENT. IN
  THE EVENT OF A TRANSFER WHICH DOES NOT INVOLVE SECURITIES OF THE CORPORATION
  WITHIN THE MEANING OF THE DELAWARE GENERAL CORPORATION LAW (“SECURITIES”) BUT
  WHICH WOULD VIOLATE THE TRANSFER RESTRICTIONS, THE PURPORTED TRANSFEREE (OR
  THE RECORD OWNER) OF THE SECURITIES WILL BE REQUIRED TO TRANSFER SUFFICIENT
  SECURITIES PURSUANT TO THE TERMS PROVIDED FOR IN THE CERTIFICATE OF
  INCORPORATION TO CAUSE THE 5-PERCENT SHAREHOLDER TO NO LONGER BE IN VIOLATION
  OF THE TRANSFER RESTRICTIONS. THE CORPORATION WILL FURNISH WITHOUT CHARGE TO
  THE HOLDER OF RECORD OF THIS CERTIFICATE A COPY OF THE CERTIFICATE OF
  INCORPORATION, CONTAINING THE ABOVE- REFERENCED TRANSFER RESTRICTIONS, UPON
  WRITTEN REQUEST TO THE CORPORATION AT ITS PRINCIPAL PLACE OF BUSINESS.
  CERTIFICATE FOR SHARES OF THE Capital Stock ISSUED TO DATED For Value Received,
  hereby sell, assign and transfer unto Shares of the Capital Stock represented
  by the within Certificate, and do hereby irrevocably constitute and appoint
  to transfer the said Stock on the books of the within named Corporation with
  full power of substitution in the premises. Dated 20 In presence of NOTICE.
  THE SIGNATURE OF THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN
  UPON THE FACE OF THE CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR
  ENLARGEMENT OR ANY CHANGE WHATEVER. THE CORPORATION IS AUTHORIZED TO ISSUE
  MORE THAN ONE CLASS OF STOCK OR MORE THAN ONE SERIES OF ANY CLASS AND THE
  CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS
  THE POWERS DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR
  OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF AND THE
  QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR
  RIGHTS.

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