Exhibit 10.17



BAKBONE SOFTWARE INCORPORATED



INVESTORS RIGHTS AGREEMENT



---

BAKBONE SOFTWARE INCORPORATED

INVESTORS RIGHTS AGREEMENT



This Investors Rights Agreement (the Agreement) is made by and among Bakbone Software Incorporated, a corporation incorporated
under the laws of the Province of Alberta, Canada (the Company) and the investors listed on the signature page hereof (the Investors).



RECITALS



The Company and the Investors have entered into a Series A Preferred Share Purchase Agreement (the Purchase Agreement) of even date
herewith pursuant to which the Company desires to sell to the Investors and the Investors desire to purchase from the Company if, as when created in accordance with the terms of the Purchase Agreement, shares of the Companys Series A Preferred
Shares (the Series A Preferred Shares, which are convertible into common shares of the Company (the Common Shares). A condition to the Investors obligations under the Purchase Agreement is that the Company and the
Investors enter into this Agreement. Terms not otherwise defined herein are defined in the Purchase Agreement.



AGREEMENT



The parties hereby agree as follows:



1. Registration Rights. The Company and the Investors covenant and agree as follows:



1.1 Definitions. For purposes of this Section 1:



(a) The term Exchange Act means the Securities Exchange Act of 1934, as amended (and any successor thereto) and the rules and
regulations promulgated thereunder;



(b) The term
Form S-3 means such form under the Securities Act as in effect on the date hereof or any successor form under the Securities Act that permits significant incorporation by reference of the Companys subsequent public filings
under the Exchange Act;



(c) The term
Holder means any person owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.12 of this Agreement;



(d) The term Qualified Public Offering means a firm commitment underwritten United States public
offering by the Company of shares of its Common Shares pursuant to a registration statement under the Securities Act of 1933, as amended, the public offering price of which is not less than U.S. $2.04 per share (appropriately adjusted for any stock
split, dividend, combination or other recapitalization) which results in gross cash proceeds to the Company of not less than US $25,000,000;



-1-



---

(e) The terms register, registered, and
registration refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration
statement or document;



(f) The term Registrable
Securities means (i) the Common Shares issuable or issued upon conversion of the Series A Preferred Shares, other than shares for which registration rights have terminated pursuant to Section 1.15 hereof, and (ii) any other reinvested
Common Shares of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares
listed in (i) and (ii); provided, however, that the foregoing definition shall exclude in all cases any Registrable Securities sold by a person in a transaction in which his or her rights under this Agreement are not assigned;



(g) The number of shares of Registrable Securities
then outstanding shall be determined by the number of Common Shares outstanding which are, and the number of Common Shares issuable pursuant to then exercisable or convertible securities which are, Registrable Securities;



(h) The term SEC means the Securities and Exchange
Commission;



(i) The term Securities Act
means the Securities Act of 1933, as amended (and any successor thereto) and the rules and regulations promulgated thereunder;



1.2 Request for Registration.



(a) If the Company shall receive at any time after the earlier of (i) one year following the date (the Closing Date) of closing of the sale
of (x) Series A Preferred Stock pursuant to Section 1.2 of the Purchase Agreement or (y) common stock pursuant to Section 6.2 of the Purchase Agreement (either referred to as the Closing), or (ii) six months after the effective date of
the first registration statement for a public offering of securities of the Company in the United States (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock
purchase or similar plan or an SEC Rule 145 transaction), a written request from the Holders of a majority of the Registrable Securities then outstanding that the Company file a registration statement under the Securities Act covering the
registration of at least 30% of the Registrable Securities then outstanding for an anticipated aggregate offering price, net of underwriting discounts and commissions, of not less than $2 million (or a lesser percent if the anticipated aggregate
offering price, net of underwriting discounts and commissions, would exceed $5 million), then the Company shall, within 10 days of the receipt thereof, give written notice of such request to all Holders and shall, subject to the limitations of
subsection 1.2(b), use its reasonable best efforts to file as soon as practicable, and in any event within 90 days of the receipt of such request, a registration statement under the Securities Act covering all Registrable Securities which the
Holders request to be registered within 20 days of the mailing of such notice by the Company.



(b) If the Holders initiating the registration request hereunder (Initiating Holders) intend to distribute the Registrable Securities covered by their request by



-2-



---

means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 1.2
and the Company shall include such information in the written notice referred to in subsection 1.2(a). The underwriter will be selected by a majority in interest of the Initiating Holders and shall be reasonably acceptable to the Company. In such
event, the right of any Holder to include his Registrable Securities in such registration shall be conditioned upon such Holders participation in such underwriting and the inclusion of such Holders Registrable Securities in the
underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with
the Company as provided in subsection 1.5(e)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting. Notwithstanding any other provision of this Section 1.2, if the underwriter
advises the Initiating Holders in writing that marketing factors require a limitation of the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities which would otherwise be underwritten
pursuant hereto, and the number of shares of Registrable Securities that may be included in the underwriting shall be allocated among all participating Holders thereof, including the Initiating Holders, in proportion (as nearly as practicable) to
the amount of Registrable Securities of the Company owned by each participating Holder; provided, however, that the number of shares of Registrable Securities to be included in such underwriting shall not be reduced unless all other
securities are first entirely excluded from the underwriting.



(c) Notwithstanding the foregoing, if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.2, a certificate signed by the President of the Company stating that in the good faith judgment of the
Board of Directors of the Company, it would be seriously detrimental to the Company and its shareholders for such registration statement to be filed and it is therefore essential to defer the filing of such registration statement, the Company shall
have the right to defer such filing for a period of not more than 90 days after receipt of the request of the Initiating Holders; provided, however, that the Company may not utilize this right more than once in any twelve-month period.



(d) In addition, the Company shall not be obligated to
effect, or to take any action to effect, any registration pursuant to this Section 1.2:



(i) After the Company has effected two (2) registrations pursuant to this Section 1.2 and such registrations have been declared or ordered effective;



(ii) During the period starting with the date 90 days prior to the Companys good faith estimate of the date of filing
of, and ending on a date 180 days after the effective date of, a registration subject to Section 1.3 hereof; provided that the Company is actively employing in good faith all reasonable efforts to cause such registration statement to become
effective; or



(iii) If the Initiating Holders propose to
dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 1.4 below.



-3-



---

1.3 Company Registration. If (but without any obligation to do so) the Company proposes to
register (including for this purpose a registration effected by the Company for shareholders other than the Holders) any of its stock under the Securities Act in connection with the U.S. public offering of such securities solely for cash (other than
a registration relating solely to the sale of securities to participants in a Company stock plan or a transaction covered by Rule 145 under the Securities Act, a registration in which the only stock being registered is Common Shares issuable upon
conversion of debt securities which are also being registered, or any registration on any form which does not include substantially the same information as would be required to be included in a registration statement covering the sale of the
Registrable Securities), the Company shall, at such time, promptly give each Holder written notice of such registration. Upon the written request of each Holder given within 20 days after mailing of such notice by the Company in accordance with
Section 4.5, the Company shall, subject to the provisions of Section 1.8, cause to be registered under the Securities Act all of the Registrable Securities that each such Holder has requested to be registered.



1.4 Form S-3 Registration. In case the Company shall receive
from any Holder or Holders of not less than 35% of the Registrable Securities then outstanding a written request or requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part
of the Registrable Securities owned by such Holder or Holders, the Company will:



(a) promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Holders; and



(b) as soon as practicable, effect such registration and all such qualifications and compliances as may be so requested and
as would permit or facilitate the sale and distribution of all or such portion of such Holders or Holders Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any
other Holder or Holders joining in such request as are specified in a written request given within 15 days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to effect any
such registration, qualification or compliance, pursuant to this Section 1.4: (i) if Form S-3 is not available for such offering by the Holders; (ii) if the Holders, together with the holders of any other securities of the Company entitled to
inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public (net of any underwriters discounts or commissions) of less than $1,000,000; (iii) if the Company
shall furnish to the Holders a certificate signed by the President of the Company stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its shareholders for such Form
S-3 Registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than 90 days after receipt of the request of the Holder or Holders
under this Section 1.4; provided, however, that the Company shall not utilize this right more than once in any 12-month period; (iv) if the Company has, within the 12-month period preceding the date of such request, already effected a
registration on Form S-3 for the Holders pursuant to this Section 1.4; (v) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such
registration, qualification or compliance; or (vi) during the period ending 180 days after the effective date of a registration statement subject to Section 1.3.



-4-



---

(c) Subject to the foregoing, the Company shall file a registration statement covering the Registrable
Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders. Registrations effected pursuant to this Section 1.4 shall not be counted as demands for registration or
registrations effected pursuant to Sections 1.2 or 1.3, respectively.



1.5 Obligations of the Company. Whenever required under this Section 1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:



(a) Prepare and file with the SEC a registration statement with respect to
such Registrable Securities and use its reasonable best efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration
statement effective for up to 180 days, or until the distribution described in such registration statement is completed, if earlier.



(b) Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for up to 180 days, or until the distribution described in such
registration statement is completed, if earlier.



(c) Furnish
to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of
Registrable Securities owned by them.



(d) Use its best
efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be
required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.



(e) In the event of any underwritten public offering, enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the managing underwriter of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement.



(f) Notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect,
includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, such obligation to continue
for 180 days.



-5-



---

(g) Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities
exchange on which similar securities issued by the Company are then listed.



(h) Provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CU.S.IP number for all such Registrable Securities, in each case not later than the effective date of such
registration.



(i) Use its reasonable best efforts to furnish,
at the request of any Holder requesting registration of Registrable Securities pursuant to this Section 1, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this
Section 1, if such securities are being sold through underwriters, (i) an opinion, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an
underwritten public offering, addressed to the underwriters and (ii) a letter dated such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public
accountants to underwriters in an underwritten public offering, addressed to the underwriters.



1.6 Furnish Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder
that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Holders
Registrable Securities. The Company shall have no obligation with respect to any registration requested pursuant to Section 1.2 or Section 1.4 of this Agreement if, as a result of the application of the preceding sentence, the number of shares or
the anticipated aggregate offering price of the Registrable Securities to be included in the registration does not equal or exceed the number of shares or the anticipated aggregate offering price required to originally trigger the Companys
obligation to initiate such registration as specified in subsection 1.2(a) or subsection 1.4(b)(ii), whichever is applicable.



1.7 Expenses of Registration.



(a) Demand Registration.All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings
or qualifications pursuant to Section 1.2, including (without limitation) all registration, filing and qualification fees, printers and accounting fees, fees and disbursements of counsel for the Company, and the reasonable fees and
disbursements of one counsel for the selling Holders selected by them with the approval of the Company (not to exceed U.S.$75,000, without the prior written consent of the Company, not to be unreasonably withheld), which approval shall not be
unreasonably withheld, shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.2 if the registration request is
subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all participating Holders shall bear such expenses), unless the Holders of a majority of the Registrable Securities
agree to forfeit their right to one demand registration pursuant to Section 1.2; provided further, however, that if at the



-6-



---

time of such withdrawal, the Holders (i) have learned of a material adverse change in the condition, business, or
prospects of the Company that was not known to the Holders at the time of their request and (ii) have withdrawn the request with reasonable promptness following disclosure by the Company of such material adverse change, then the Holders shall not be
required to pay any of such expenses and shall not forfeit their rights pursuant to Section 1.2.



(b) Company Registration. All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings
or qualifications of Registrable Securities pursuant to Section 1.3 for each Holder (which right may be assigned as provided in Section 1.12), including (without limitation) all registration, filing, and qualification fees, printers and
accounting fees, fees and disbursements of counsel for the Company and the reasonable fees and disbursements of one counsel for the selling Holder or Holders selected by them with the approval of the Company, which approval shall not be unreasonably
withheld, shall be borne by the Company.



(c)
Registration on Form S-3.All expenses incurred in connection with a registration requested pursuant to Section 1.4, including (without limitation) all registration, filing, qualification, printers and accounting fees and the
reasonable fees and disbursements of one counsel for the selling Holder or Holders selected by them with the approval of the Company, which approval shall not be unreasonably withheld, and counsel for the Company, and any underwriters
discounts or commissions associated with Registrable Securities, shall be borne pro rata by the Holder or Holders participating in the Form S-3 Registration.



1.8 Underwriting Requirements. In connection with any offering involving an underwriting of shares of the Companys capital stock, the
Company shall not be required to include any of the Holders securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by it (or by other persons entitled
to select the underwriters), and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If the total amount of securities, including Registrable Securities,
requested by shareholders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the success of the offering, then the Company shall
be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters determine in their sole discretion will not jeopardize the success of the offering (the securities so included to be
apportioned pro rata among the selling shareholders according to the total amount of securities entitled to be included therein owned by each selling stockholder or in such other proportions as shall mutually be agreed to by such selling
shareholders) but in no event shall the amount of securities of the selling Holders included in the offering be reduced below 30% of the total amount of securities included in such offering, unless such offering is the initial public offering of the
Companys securities in the United States, in which case, the selling shareholders may be excluded if the underwriters make the determination described above and no other stockholders securities are included. For purposes of the preceding
parenthetical concerning apportionment, for any selling stockholder which is a holder of Registrable Securities and which is a partnership or corporation, the partners, retired partners and shareholders of such holder, or the estates and family
members of any such partners and retired partners and any trusts for the



-7-



---

benefit of any of the foregoing persons shall be deemed to be a single selling stockholder, and any
pro-rata reduction with respect to such selling stockholder shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such selling stockholder, as
defined in this sentence.



1.9 Delay of
Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of
this Section 1.



1.10 Indemnification. In the
event any Registrable Securities are included in a registration statement under this Section 1:



(a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder, any underwriter (as defined in the Securities Act) for such
Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations
(collectively a Violation): (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the
Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; and the Company will pay to each such Holder, underwriter or
controlling person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement
contained in this subsection 1.10(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably
withheld), nor shall the Company be liable to any Holder, underwriter or controlling person for any such loss, claim, damage, liability, or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in
conformity with written information furnished expressly for use in connection with the Selling Shareholders section of such registration by any such Holder, underwriter or controlling person.



(b) To the extent permitted by law, each selling Holder will indemnify and
hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Securities Act, any underwriter, any other Holder selling
securities in such registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing persons may become subject, under the
Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereto) arise out of or are based upon



-8-



---

any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in
conformity with written information furnished by such Holder expressly for use in connection with the Selling Shareholders section of such registration; and each such Holder will pay, as incurred, any legal or other expenses reasonably
incurred by any person intended to be indemnified pursuant to this subsection 1.10(b), in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement
contained in this subsection 1.10(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably
withheld; provided, that in no event shall any indemnity under this subsection 1.10(b) exceed the net proceeds from the offering received by such Holder.



(c) Promptly after receipt by an indemnified party under this Section 1.10 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.10, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the reasonable fees and expenses to be paid by
the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section 1.10, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise
than under this Section 1.10.



(d) If the indemnification
provided for in this Section 1.10 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault
of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable
considerations; provided, that in no event shall any contribution by a Holder under this Subsection 1.10(d) exceed the net proceeds from the offering received by such Holder, except in the case of willful fraud by such Holder. The relative
fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.



-9-



---

(e) The obligations of the Company and Holders under this Section 1.10 shall survive the completion of
any offering of Registrable Securities in a registration statement under this Section 1, and otherwise.



1.11 Reports Under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 promulgated under the
Securities Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees to:



(a) make and keep public information available, as those terms are
understood and defined in SEC Rule 144, at all times after 90 days after the effective date of the first registration statement filed by the Company for the offering of its securities to the general public so long as the Company remains subject to
the periodic reporting requirements under Sections 13 or 15(d) of the Exchange Act;



(b) take such action, including the voluntary registration of its Common Shares under Section 12 of the Exchange Act, as is necessary to enable the Holders to utilize Form S-3 for the sale of their Registrable
Securities, such action to be taken as soon as practicable after the end of the fiscal year in which the first registration statement filed by the Company for the offering of its securities to the general public is declared effective;



(c) file with the SEC in a timely manner all reports and other documents
required of the Company under the Securities Act and the Exchange Act; and



(d) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at
any time after 90 days after the effective date of the first registration statement filed by the Company), the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a
registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such
other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form.



1.12 Assignment of Registration Rights. The rights to cause the
Company to register Registrable Securities pursuant to this Section 1 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee (i) of at least 100,000 shares of such securities (subject to adjustment for stock
splits, stock dividends, reclassification or the like) (or if the transferring Holder owns less than 100,000 shares of such securities, then all Registrable Securities held by the transferring Holder), (ii) that is a subsidiary, parent, partner,
limited partner, retired partner, member, retired member or stockholder of a Holder, (iii) that is an affiliated fund or entity of the Holder, which means with respect to a limited liability company or a limited liability partnership, a fund or
entity managed by the same manager or managing member or general partner or management company or by an entity controlling, controlled by, or under common control with such manager or managing member or general partner or management company (such a
fund or entity, an Affiliated Fund), (iv) who is a Holders child,



-10-



---

stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law (such a relation, a Holders Immediate Family Member, which term shall include adoptive relationships), or (v) that is a trust for the benefit of an individual Holder or such
Holders Immediate Family Member, provided the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such
registration rights are being assigned; and provided, further, that such assignment shall be effective only if the transferee agrees to be bound by this Agreement and immediately following such transfer the further disposition of such
securities by the transferee or assignee is restricted under the Securities Act. For the purposes of determining the number of shares of Registrable Securities held by a transferee or assignee, the holdings of transferees and assignees of (x) a
partnership who are partners or retired partners of such partnership or (y) a limited liability company who are members or retired members of such limited liability company (including Immediate Family Members of such partners or members who acquire
Registrable Securities by gift, will or intestate succession) shall be aggregated together and with the partnership or limited liability company; provided that all assignees and transferees who would not qualify individually for assignment of
registration rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices or taking any action under Section 1.



1.13 Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior
written consent of the Holders of a majority of the outstanding Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company which would allow such holder or prospective holder (a) to
include such securities in any registration filed under Section 1.2 hereof, unless under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of his
securities will not reduce the amount of the Registrable Securities of the Holders which is included or (b) to make a demand registration which could result in such registration statement being declared effective prior to the earlier of either of
the dates set forth in subsection 1.2(a) or within 120 days of the effective date of any registration effected pursuant to Section 1.2.



1.14 Lock-Up Agreement.



(a) Lock-Up Period; Agreement. In connection with the initial public offering of the Companys securities in the United States, the
public offering price of which is not less than U.S.$2.04 per share (appropriately adjusted for stock splits, stock dividends, reclassification and the like) for gross cash proceeds to the Company of not less than U.S.$25,000,000, and upon request
of the Company or the underwriters managing such offering of the Companys securities, each Holder agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company,
however or whenever acquired (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from the effective date of such
registration as may be requested by the Company or such managing underwriters and to execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of such initial public offering.



-11-



---

(b) Limitations. The obligations described in Section 1.14(a) shall apply only if all
officers and directors of the Company enter into similar agreements, and shall not apply to a registration relating solely to employee benefit plans, or to a registration relating solely to a transaction pursuant to Rule 145 under the Securities
Act.



(c) Stop-Transfer Instructions. In order
to enforce the foregoing covenants, the Company may impose stop-transfer instructions with respect to the securities of each Holder (and the securities of every other person subject to the restrictions in Section 1.14(a)).



1.15 Termination of Registration Rights. No Holder shall be
entitled to exercise any right provided for in this Section 1 after the earlier of (i) three (3) years following the consummation of Qualified Public Offering, or (ii) during such time as Rule 144, or another similar exemption under the Securities
Act, is available for the sale of all such Holders Shares during a three (3) month period without registration.



2. Covenants of the Company.



The Company shall, at its sole cost and expense:



2.1 Delivery of Financial Statements. The Company shall deliver to each Holder of Registrable Securities:



(a) as soon as practicable, but in any event within 90 days after the end
of each fiscal year of the Company, an income statement for such fiscal year, a balance sheet of the Company and statement of stockholders equity as of the end of such year, and a statement of cash flows for such year, such year-end financial
reports to be in reasonable detail, prepared in accordance with United States and Canadian generally accepted accounting principles (GAAP), and audited by an independent public accounting firm of nationally recognized standing
selected by the Company; and



(b) as soon as practicable, but
in any event within 45 days after the end of each of the first three quarters of each fiscal year of the Company, an unaudited profit or loss statement, a statement of cash flows for such fiscal quarter and an unaudited balance sheet as of the end
of such fiscal quarter.



(c) with respect to the financial
statements called for in subsection (b) of this Section 2.1, an instrument executed by the Chief Financial Officer or President of the Company and certifying that such financials were prepared in accordance with GAAP consistently applied with prior
practice for earlier periods (with the exception of footnotes that may be required by GAAP) and fairly present the financial condition of the Company and its results of operation for the period specified, subject to year-end audit adjustment,
provided that the foregoing shall not restrict the right of the Company to change its accounting principles consistent with GAAP, if the Board of Directors determines that it is in the best interest of the Company to do so.



2.2 Inspection. The Company shall permit each Holder of
Registrable Securities, at such Holders expense, to visit and inspect the Companys properties, to examine



-12-



---

its books of account and records and to discuss the Companys affairs, finances and accounts with its officers, all
at such reasonable times as may be requested by the Investor;provided, however, that the Company shall not be obligated pursuant to this Section 2.2 to provide access to any information which it reasonably considers to be a trade
secret or similar confidential information.



2.3 Right of
First Offer. Subject to the terms and conditions specified in this Section 2.3, the Company hereby grants to each Investor a right of first offer with respect to future sales by the Company of its Shares (as hereinafter defined). For
purposes of this Section 2.3, Investor includes any general partners, managing members and affiliates of an Investor, including Affiliated Funds. An Investor who chooses to exercise the right of first offer may designate as
purchasers under such right itself or its partners, general partner, managing members or affiliates, including Affiliated Funds in such proportions as it deems appropriate.



Each time the Company proposes to offer any shares of, or securities convertible into or exercisable for any shares of, any
class of its capital stock (Shares), the Company shall first make an offering of such Shares to each Investor in accordance with the following provisions:



(a) The Company shall deliver a notice (the RFO Notice) to the Investors stating (i) its bona fide
intention to offer such Shares, (ii) the number of such Shares to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such Shares.



(b) Within 14 calendar days after delivery of the RFO Notice, the Investor may elect to purchase or obtain, at the price
and on the terms specified in the RFO Notice, up to that portion of such Shares which equals the proportion that the number of Common Shares issued and held, or issuable upon conversion and exercise of all convertible or exercisable securities then
held, by such Investor bears to the sum of (A) the total number of Common Shares then outstanding (assuming full conversion and exercise of all convertible or exercisable securities) and (B) Common Shares issuable to employees, consultants or
directors pursuant to a stock option plan, restricted stock plan, or other stock plan approved by the Board of Directors. Such purchase shall be completed at the same closing as that of any third party purchasers or at an additional closing
thereunder.



(c) The Company may, during the 45-day period
following the expiration of the period provided in subsection 2.3(b) hereof, offer the remaining unsubscribed portion of the Shares to any person or persons which may include at the Companys sole discretion, each Investor that purchased all of
the Shares available to it under Section 2.3(b) above, at a price not less than, and upon terms no more favorable to the offeree than those specified in the RFO Notice. If the Company does not enter into an agreement for the sale of the Shares
within such period, or if such agreement is not consummated within 60 days of the execution thereof, the right provided hereunder shall be deemed to be revived and such Shares shall not be offered unless first reoffered to the Investors in
accordance herewith.



(d) The right of first offer in this
Section 2.3 shall not be applicable to (i) the issuance of securities in connection with stock dividends, stock splits or similar transactions; (ii) the issuance or sale of up to 1,000,000 Common Shares in any twelve month period (or such



-13-



---

greater number as is approved by a majority of the Board of Directors, provided that such majority approval must also
include the unanimous approval of any Investors representative(s) then on the Board of Directors) of Common Shares (or options therefor) to employees, consultants and directors of the Company, directly or pursuant to a stock option plan,
restricted stock purchase plans or other stock plan approved by the Board of Directors; (iii) the issuance of securities pursuant to the conversion or exercise of convertible or exercisable securities outstanding as of the date of this Agreement,
(iv) securities issued in connection with acquisitions of companies, where the acquisition was approved by a majority of the Board of Directors, (v) the issue of up to 1,000,000 Common Shares in any 12 month period to strategic partners as approved
by a majority of the Board of Directors, (vi) any public equity offerings, or (vii) any securities not convertible into equity of the Company.



2.4 Use of Proceeds. From the period following the Closing Date and for the first calendar year thereafter, the Company will use the net
proceeds from the sale of the Series A Preferred Shares solely to (i) continue ongoing operations; (ii) increase sales and marketing efforts of the Company; (iii) retire approximately $1,600,000 of notes payable; and (iv) such other purposes as
approved by the Investors representatives on the Board of Directors; following which time, any net proceeds remaining will be used as determined by the Board of Directors of the Company in their discretion.



2.5 Listing. The Company shall promptly use its best efforts to
secure the listing of all of the Registrable Securities upon each securities exchange and automated quotation system, if any, upon which Common Shares are then listed (subject to official notice of issuance) and, shall maintain, so long as any other
Common Shares shall be so listed, such listing of all Registrable Securities from time to time issuable under the terms of this Agreement. So long as any Securities are outstanding, the Company shall maintain the Common Shares authorization
for quotation or listing on the Toronto Stock Exchange; provided, however, that if the Common Shares are at such time listed on NASDAQ, the New York Stock Exchange, the American Stock Exchange or other recognized U.S. securities exchange, the
Company may, at its sole election effect the delisting of the Common Shares from the Toronto Stock Exchange. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 2.5.



2.6 Filing With SEC. On the Business Day following the Closing
Date, the Company shall file a report with the SEC describing the terms of the transactions contemplated by the Purchase Agreement and including as exhibits to such report (i) this Agreement, and (ii) the Purchase Agreement, each in the form
required by the Exchange Act. Business Day means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York are required by law to remain closed.



-14-



---

2.7 Canadian Law Filing.On the Business Day following the Closing Date, the Company shall
file a report with each of the securities commissions where it is a reporting issuer describing the terms of the transaction as contemplated by the Purchase Agreement, in the form required by such securities commissions, and shall effect all
post-closing requirements set out in the conditional listing approval of the Toronto Stock Exchange to the transactions contemplated hereby.



2.8 Board of Directors. In connection with the Closing, the Company shall use its best efforts to nominate, recommend and support for the
election to the Board of Directors of the Company two representatives designated by a majority-in-interest of the Investors.



2.9 Directors Liability Insurance. The Company will purchase and maintain, for the period that the Investors have one or more
representatives on the Board of Directors of the Company, a directors liability insurance policy in form and substance reasonably acceptable to the Investors representatives on the Board of Directors, covering the directors of the
Company in the amount of at least $10 million.



2.10
Violation of Laws. The business of the Company and its subsidiaries shall not be conducted in violation of any law, ordinance or regulation of any governmental entity, except where such violations would not result, either individually
or in the aggregate, in a Material Adverse Effect.



2.11
Financing. The Company shall promptly, fully and in detail, inform the Board of Directors of any discussions, offers or contracts relating to possible financing of any material nature for the Company, whether initiated by the Company
or any other person or entity.



2.12 New
Developments. The Company shall cause all new technological developments, patentable or unpatentable inventions, discoveries or improvements by the Companys or any of its subsidiarys employees or consultants to be documented in a
reasonable manner and, where prudent and appropriate, to file and prosecute United States and foreign patent, copyright, trademark, mask work or other Intellectual Property Right applications relating to and protecting the Companys inventions,
discoveries or developments on behalf of the Company or any of its subsidiaries.



2.13 Agreements of Officers and Employees. The Company shall cause each employee of the Company or any of its subsidiaries as now or hereafter employed and all consultants of the Company or any of its
subsidiary involved in the design, review, evaluation or development of products or Intellectual Property Rights to execute and deliver a Confidentiality and Invention Assignment Agreement in form and substance reasonably satisfactory to the Board
of Directors of the Company, and the Company shall not amend or waive any of the provisions of any such Confidentiality and Invention Assignment Agreement in any material respect without the approval of the Board of Directors.



2.14 Directors Compensation. The Company shall promptly
reimburse in full each Director of the Company representing the Investors for all reasonable out-of-pocket expenses incurred in attending each meeting of the Board of Directors of the Company or any



-15-



---

committee thereof. The Directors designated by the Investors shall be compensated (fees, options, etc.) in a manner at
least as favorable as any other Director of the Company going forward. For clarity, Directors are presently entitled to receive $10,000 as an annual retainer, payable quarterly in arrears, $1,000 per meeting attended in person, $500 per meeting
attended by teleconference, $2,000 per annum to the Chair of each Committee of the Board and $750 for each Committee meeting. Current base option compensation for new directors is options to acquire 150,000 common shares, with any
increases to be reviewed on an annual basis by the Compensation Committee of the Board of Directors and the Board of Directors.



2.15 Keeping of Records and Books of Account. The Company shall keep, and cause each of its subsidiaries to keep, adequate records and books
of account, in which complete entries will be made in accordance with generally accepted accounting principles consistently applied, reflecting all financial transactions of the Company and such of its subsidiaries, and in which, for each fiscal
year, all proper reserves for depreciation, depletion, obsolescence, amortization, taxes, bad debts and other purposes in connection with its business shall be made.



2.16 Certain Undertakings. Neither the Company nor any of its subsidiaries shall take any action which would
cause the Company or any such subsidiary of the Company to be in violation of the Foreign Corrupt Practices Act or the Sarbanes-Oxley Act of 2002.



2.17 Controls. The Company currently maintains and will maintain a system of internal accounting controls sufficient to provide reasonable
assurances that (i) transactions are executed in accordance with managements general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with managements general or specific authorization; and (iv) the recorded accountability for assets is compared with
existing assets at reasonable intervals and appropriate action is taken with respect to any differences.



2.18 Exchange Listing. In the event the Company lists any of its shares on NASDAQ, the New York Stock Exchange, the American Stock Exchange,
or other U.S. securities exchanges, the Company shall ensure that the Common Shares obtainable upon conversion of the Series A Preferred Shares are registered under the Securities Exchange Act of 1934, as amended.



2.19 Termination of Covenants.



(a) The covenants set forth in Sections 2.1 through Section 2.4 shall
terminate as to each Holder and be of no further force or effect (i) immediately prior to the consummation of a Qualified Public Offering, or (ii) upon termination of the Agreement, as provided in Section 4.1.



3. Covenants of the Investors.



3.1 Directors. For a period of 12 months after the date
hereof, the Investors shall not vote their Series A Preferred Shares against two of the directors designated by a majority of the Board of Directors of the Company. This shall not affect the rights of the Series A Preferred holder to elect its two
directors guaranteed by the Articles of Amendment.



-16-



---

4. Miscellaneous.



4.1 Termination. This Agreement shall terminate, and have no further force and effect, on the earlier of that
date (i) when the Company shall consummate a transaction or series of related transactions deemed to be a liquidation, dissolution or winding up of the Company pursuant to the Companys Articles of Amendment; and (ii) when the voting rights
attaching to the Series A Preferred Shares represent less than 10% of the voting rights attached to all outstanding Common Shares and Series A Preferred Shares of the Company.



4.2 Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto pertaining to
the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties hereto are expressly canceled.



4.3 Successors and Assigns. Except as otherwise provided in this Agreement, the terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties (including transferees of any of the Series A Preferred Shares or any Common Shares issued upon conversion thereof, provided
that such transferee agree to be bound by the terms of this Agreement). Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.



4.4 Amendments and Waivers. Any term of this Agreement may be amended or waived only with the written consent of the Company and the holders
of a majority of the Registrable Securities then outstanding. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each party to the Agreement, whether or not such party has signed such amendment or waiver, each
future holder of all such Registrable Securities, and the Company.



4.5 Notices. Unless otherwise provided, any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon delivery, when delivered personally or by overnight courier or sent by
facsimile, or 48 hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified at such partys address or facsimile number as set forth on Exhibit A hereto
or as subsequently modified by written notice.



4.6
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable
and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be
enforceable in accordance with its terms.



-17-



---

4.7 Governing Law. This Agreement and all acts and transactions pursuant hereto shall be
governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of laws.



4.8 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.



4.9
Aggregation of Stock. All Series A Preferred Shares held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.



4.10 Construction. The titles and subtitles of this Agreement
are intended for reference and shall not by themselves determine the construction or interpretation of this Agreement. All dollar amounts referenced in the Agreement are to United States dollars, unless otherwise indicated. This Agreement and its
provisions contained therein and the exhibits hereto shall not be construed or interpreted for or against any party to this Agreement because said party drafted or caused the partys legal representative to draft any of its provisions. The
Company has been represented by legal counsel in connection with the drafting and negotiation of this Agreement. The language of this Agreement shall be construed as to its fair meaning.



4.11 Dispute Resolution. In the event of any dispute arising out of or relating to this Agreement or the
Agreements, as defined in the Purchase Agreement, then such dispute shall be resolved solely and exclusively by confidential binding arbitration (as defined under the California Arbitration Act) with the San Francisco branch of JAMS
(JAMS) to be governed by JAMS Commercial Rules of Arbitration (the JAMS Rules) and heard before one arbitrator. The parties shall attempt to mutually select the arbitrator. In the event they are unable to
mutually agree, the arbitrator shall be selected by the procedures prescribed by the JAMS Rules. Each party shall bear its own attorneys fees, expert witness fees, and costs incurred in connection with any arbitration.



[Signature Page Follows]



-18-



---

The parties have executed this Investors Rights Agreement as of the date first above written.



|                                                                                |  |                                                                                                                          
|------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------
|COMPANY:                                                                        |  | INVESTORS:                                                                                                               
|                                                                                | 
|Bakbone Software Incorporated                                                   |  | VantagePoint Venture Partners IV (Q), L.P. by VantagePoint Venture Associates IV L.L.C., Its General Partner             
|                                                                                | 
|By:  /s/ Keith RickardKeith Rickard, President and CEO                          |  | By:      /s/ Alan E. Salzman                                                                                             
|                                                                                |  | Name: Alan E. Salzman                                                                                                    
|                                                                                | 
|Address:  10145 Pacific Heights Boulevard Suite 500 San Diego, California
92121 |  | Title: Managing Partner                                                                                                  
|                                                                               
|                                                                               
|                                                                                | 
|Fax:          (858) 450-9929                                                    |  | VantagePoint Venture Partners IV, L.P. by VantagePoint Venture Associates IV, L.L.C., Its General Partner                
|                                                                                | 
|                                                                                |  | By:      /s/ Alan E. Salzman                                                                                             
|                                                                                | 
|                                                                                |  | Name: Alan E. Salzman                                                                                                    
|                                                                                | 
|                                                                                |  | Title: Managing Member                                                                                                   
|                                                                                | 
|                                                                                |  | VantagePoint Venture Partners IV Principals Fund, L.P. by VantagePoint Venture Associates IV, L.L.C., Its General Partner
|                                                                                | 
|                                                                                |  | By:      /s/ Alan E. Salzman                                                                                             
|                                                                                | 
|                                                                                |  | Name: Alan E. Salzman                                                                                                    
|                                                                                | 
|                                                                                |  | Title:    Managing Member                                                                                                



---

EXHIBIT A

INVESTORS



|                                                       |  |                                
|------------------------------------------------------ |  | -------------------------------
|Name/Address/Fax No.                                   |  | No. of Series APreferred Shares
|VantagePoint Venture Partners IV (Q), L.P.             |  | 19,929,800                     
|                                                       | 
|VantagePoint Venture Partners IV, L.P.                 |  | 1,997,600                      
|                                                       | 
|VantagePoint Venture Partners IV Principals Fund, L.P. |  | 72,600