Document:

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                               NEXSAN CORPORATION.

                             STOCK OPTION AGREEMENT

     STOCK OPTION AGREEMENT (the "OPTION AGREEMENT"), dated as of January 4,
2001, between Nexsan Corporation, a Delaware corporation (the "COMPANY"), and
Gary Watson (the "OPTIONEE"), an employee of the Company.

     The Company's Board of Directors has determined that the objectives of the
Company's 2001 Stock Plan (the "PLAN"), a copy of which has been delivered to
the Optionee, will be furthered by granting to the Optionee a stock option
pursuant to the Plan and pursuant to the Employment Agreement, dated the date
hereof, between the Optionee and the Company (the "EMPLOYMENT AGREEMENT").
Capitalized terms used herein without definition shall have the meaning as
described thereto in the Plan.

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

     SECTION 1 Grant of Option

     The Company hereby grants to the Optionee a stock option (the "OPTION") to
purchase 1,111,111 shares (the "SHARES") of common stock of the Company ("COMMON
STOCK") exercisable at a price equal to the price at which Common Stock is sold
to investors in the next offering of Common Stock by the Company in which at
least $5,000,000 of Common Stock is sold (the "EXERCISE PRICE").

     SECTION 2 Exercisability

     The Option shall become exercisable, if at all, as follows: Options as to
555,555 Shares shall become exercisable if, and only if, EBITDA (as defined
below) as for any Rolling Period (as defined below) shall equal at least
$15,000,000, and Options as to the remaining 555,556 Shares shall become
exercisable if, and only if, EBITDA for any Rolling Period shall equal at least
$27,000,000, provided, in each case, that Executive is employed by the Company
or any Affiliate on the last day of such Rolling Period. Unless earlier
terminated pursuant to the provisions of the Plan, the unexercised portion of
the Option shall expire and cease to be exercisable at 11:59 p.m. on the day
immediately preceding the 10th anniversary of the date hereof.

     "EBITDA" means the sum, without duplication, of (1) the net income of the
Company and its subsidiaries on a consolidated basis, plus (2) the amount
deducted in determining net income for such period for provision for (a) taxes
based on the income or profits of the Company and its subsidiaries, (b) interest
expense, and (c) amortization and depreciation of assets.

     "Rolling Period" means any twelve (12) month period ending on the last day
of any month from January 2002 to December 2005, inclusive.

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     SECTION 3 Method of Exercise

     The Option (an Option may not be exercised for a fraction of a share) shall
be deemed exercised when the Company receives: (a) written or electronic notice
of exercise on such form and in such manner as the Committee shall prescribe and
(b) payment of the full purchase price for the number of shares being purchased.
Such payment may be made by one or a combination of the following methods: (1)
by cash, (2) check, (3) other shares which (i) in the case of shares acquired
upon exercise of an Option, have been owned by the Optionee for more than six
months on the date of surrender, and (ii) have a Fair Market Value on the date
of surrender equal to the aggregate exercise price of the Shares to which the
Option shall be exercised and (4) consideration received by the Company under a
cashless exercise program implemented by the Company in connection with the
Plan. It shall be a condition precedent to the issuance of Shares upon exercise
of the Option that the Optionee shall remit to the Company an amount sufficient
to satisfy all applicable withholding tax requirements. The date of exercise of
the Option shall be the date on which written notice of exercise is hand
delivered to the Company, during normal business hours, at its address as
provided in Section 12 of this Agreement, or, if sent electronically the date on
which it is actually transmitted, during normal business hours, or if mailed,
the date on which it is postmarked, provided such notice is actually received.

     SECTION 4 Death

     If the Optionee dies during the period in which the Option is exercisable,
the Option shall be exercisable by the Optionee's estate or by a person who
acquires the right to exercise the option by bequest or inheritance only until
the earlier of the expiration date of the Option (specified in Section 2 of this
Agreement) or six months after the Optionee's death.

     SECTION 5 Investment Representations

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

     SECTION 5.1 Acquisition of Shares for Own Account. The Optionee will
     acquire the Shares, if at all, pursuant to this Agreement with the
     Optionee's own funds, and not with the funds of anyone else. The Shares
     will be acquired, if at all, for the Optionee's own account, not as a
     nominee or agent and not for the account of any other person or firm. No
     one else has or will have on any exercise of the Option or any portion
     thereof any interest, beneficial or otherwise, in any of the Shares to be
     acquired on such exercise. The Optionee is not, and prior to any exercise
     of the Option will not be, obligated to transfer any of the Shares or any
     interest therein to anyone else and the Optionee does not and will not have
     any agreement or understandings to do so. The Optionee does not, and on any
     exercise of the Option will not, intend to subdivide the Optionee's
     acquisition of any Shares with anyone.

     SECTION 5.2 Shares May Be "Restricted Securities"; Certificates
     Representing Shares May Be Legended

          The Optionee understands and agrees that:

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

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

               SECTION 5.2.3 The Company shall cause legends set forth below or
          legends substantially equivalent thereto, to be placed upon any
          certificates representing any Shares received by the Optionee on
          exercise of the Option, which legend restricts the sale, transfer or
          disposition of the Shares otherwise than in accordance with this
          Option Agreement, as well as any other legends as the Company may deem
          appropriate or that may be required by the Company or by the
          applicable state or federal securities laws:

               THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
          THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND MAY NOT BE
          OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS
          AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL
          SATISFACTORY TO THE ISSUER OF THESE SECURITIES, THAT SUCH REGISTRATION
          IS NOT REQUIRED UNDER SAID ACT OR SUCH TRANSACTION COMPLIES WITH RULES
          PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION UNDER SAID ACT.

               IN ADDITION, SALE, TRANSFER, ENCUMBRANCE, HYPOTHECATION, GIFT OR
          OTHER DISPOSITION OR ALIENATION OF SUCH SHARES OR ANY INTEREST THEREIN
          IS RESTRICTED BY AND SUBJECT TO A STOCK OPTION AGREEMENT A COPY OF
          WHICH MAY BE INSPECTED AT THE PRINCIPAL OFFICE OF THE ISSUER AND ALL
          OF THE PROVISIONS OF WHICH ARE INCORPORATED BY REFERENCE IN THIS
          CERTIFICATE.

     SECTION 1.1 Agreement to Refrain from Resales. The Optionee agrees that,
     notwithstanding any provision hereof or in the Plan to the contrary, the
     Optionee shall in no event make any disposition of all or any part of or
     interest in the Shares and that such Shares shall not be encumbered,
     pledged, hypothecated, sold or transferred by the Optionee nor shall the
     Optionee receive any consideration for such Shares or for any interest
     therein from any person, unless and until prior to any proposed transfer,
     encumbrance, disposition, pledge, hypothecation or sale of any Shares,
     either (1) a registration statement on form S-1 or S-8 (or any other form
     replacing such form or appropriate for the purpose under the Act) with
     respect to such shares proposed to be transferred or otherwise disposed of
     shall be then effective or (2) (i) the Optionee shall have notified the
     Company of the proposed disposition and shall have furnished the Company
     with a detailed statement of the circumstances surrounding the proposed

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     disposition, (ii) the Optionee shall have furnished the Company with an
     opinion of counsel in form and substance satisfactory to the Company to the
     effect that such disposition will not require registration of any such
     Shares under the Act or qualification of any such shares under any other
     securities law, (iii) such opinion of counsel shall have been concurred in
     by counsel for the Company and (iv) the Company shall have advised the
     Optionee of such concurrence.

     SECTION 6 Right of First Refusal Before any Shares acquired upon exercise
of its Option held by Optionee or any transferee (either being sometimes
referred to herein as the "Holder") may be sold or otherwise transferred
(including transfer by gift or operation of law), the Company or its assignee(s)
shall have a right of first refusal to purchase the Shares on the terms and
conditions set forth in this Section (the "Right of First Refusal").

     SECTION 6.1 Notice of Proposed Transfer. The Holder of the Shares shall
     deliver to the Company a written notice (the "Notice") stating: (i) the
     Holder's bona fide intention to sell or otherwise transfer such Shares;
     (ii) the name of each proposed purchaser or other transferee ("Proposed
     Transferee"); (iii) the number of Shares to be transferred to each Proposed
     Transferee; and (iv) the bona fide cash price or other consideration for
     which the Holder proposes to transfer the Shares (the "Offered Price"), and
     the Holder shall offer the Shares at the Offered Price to the Company or
     its assignee(s).

     SECTION 6.2 Exercise of Right of First Refusal. At any time within thirty
     (30) days after receipt of the Notice, the Company and/or its assignee(s)
     may, by giving written notice to the Holder, elect to purchase all or part
     of the Shares proposed to be transferred to any one or more of the Proposed
     Transferees, at the purchase price determined in accordance with subsection
     (c) below.

     SECTION 6.3 Purchase Price. The purchase price ("Purchase Price") for the
     Shares purchased by the Company or its assignee(s) under this Section shall
     be the Offered. If the Offered Price includes consideration other than
     cash, the cash equivalent value of the non-cash consideration shall be
     determined by the Board of Directors of the Company in good faith.

     SECTION 6.4 Payment. Payment of the Purchase Price shall be made, at the
     option of the Company or its assignee(s), (i) by cash or check, (ii) by
     cancellation of all or a portion of any outstanding indebtedness of the
     Holder to the Company (or, in the case of repurchase by an assignee, to the
     assignee), or (iii) by any combination thereof within thirty (30) days
     after receipt of the Notice or in the manner and at the times set forth in
     the Notice.

     SECTION 6.5 Holder's Right to Transfer. If Shares proposed in the Notice to
     be transferred to a given Proposed Transferee are not purchased by the
     Company and/or its assignee(s) as provided in this Section, then the Holder
     may sell or otherwise transfer such Shares, that are not repurchased by the
     Company, to that Proposed Transferee at the Offered Price or at a higher
     price, provided that such sale or other transfer is consummated within one
     hundred twenty (120) days after the date of the Notice and provided further
     that any such sale or other transfer is effected in accordance with any

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     applicable securities laws and the Proposed Transferee agrees in writing
     that the provisions of this Section shall continue to apply to the Shares
     in the hands of such Proposed Transferee. If the Shares described in the
     Notice are not transferred to the Proposed Transferee within such period, a
     new Notice shall be given to the Company, and the Company and/or its
     assignees shall again be offered the Right of First Refusal before any
     Shares held by the Holder may be sold or otherwise transferred.

     SECTION 6.6 Exception for Certain Family Transfers. Anything to the
     contrary contained in this Section notwithstanding, the transfer of any or
     all of the Shares during the Purchaser's lifetime or on the Purchaser's
     death by will or intestacy to the Purchaser's Immediate Family or a trust
     for the benefit of one or more members of the Purchaser's Immediate Family
     or to a trust, partnership, limited liability company, custodianship or
     other fiduciary account for the benefit of the Purchaser or one or more
     members of the Purchaser's Immediate Family, or the disbursement therefrom
     to Purchaser or one or more members of his Immediate Family, shall be
     exempt from the provisions of this Section, provided that the Purchaser
     notifies the Company in writing within thirty (30) days of said transfer.
     "Immediate Family" as used herein shall mean spouse, lineal descendant or
     antecedent, father, mother, brother or sister. In such case, the transferee
     or other recipient shall receive and hold the Shares so transferred subject
     to the provisions of this Agreement and there shall be no further transfer
     of such Shares except in accordance with the terms of this Section.

     SECTION 6.7 Termination of Right of First Refusal. The Right of First
     Refusal shall terminate as to any Shares upon the date of the first sale of
     Common Stock of the Company to the general public pursuant to a
     registration statement filed with and declared effective by the Securities
     and Exchange Commission under the 1933 Act.

     SECTION 7 Lock-Up Period Optionee hereby agrees that, if so requested by
the Company or any representative of the underwriters (the "Managing
Underwriter") in connection with any registration of the offering of any
securities of the Company under the Securities Act, Optionee (or any transferee)
shall not sell or otherwise transfer any Shares or other securities of the
Company during the 180-day period (or such shorter period as may be requested in
writing by the Managing Underwriter and agreed to in writing by the Company)
(the "Market Standoff Period") following the effective date of a registration
statement of the Company filed under the Securities Act. Such restriction shall
apply only to the first registration statement of the Company to become
effective under the Securities Act that includes securities to be sold on behalf
of the Company to the public in an underwritten public offering under the
Securities Act. The Company may impose stop-transfer instructions with respect
to securities subject to the foregoing restrictions until the end of such Market
Standoff Period.

     SECTION 8 Nonassignability

     The Option shall not be sold, pledged, assigned, hypothecated, transferred
or disposed of in any manner, voluntarily or involuntarily, other than by will
or by the laws of descent and distribution.

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     The Option shall be exercisable during the lifetime of the Optionee only by
the Optionee and thereafter by the Optionee's estate or by a person who acquires
the right to exercise the Option by bequest or inheritance.

     SECTION 9 No Right of Employment

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

     SECTION 10 421(b) Disqualifying Disposition Notice

     With respect to the transfer or other disposition of Shares issued pursuant
to the exercise of any "incentive stock options" granted hereunder, the Optionee
shall notify the Company of any such transfer of disposition made under the
circumstances described in Section 421(b) of the Code (relating to certain
disqualifying dispositions). Such notice shall be delivered to the Company in
accordance with the provisions of Section 11 below within 10 days of such
transfer or other disposition.

     SECTION 11 Plan Provisions to Prevail

     This Option Agreement is subject to all of the terms and provisions of the
Plan. Without limiting the generality of the foregoing, by entering into this
Option Agreement the Optionee agrees that no member of the Board or the
Committee nor any employee of the Company, Parent Corporation or any of the
Company's subsidiaries shall be liable for any action or determination made in
good faith with respect to the Plan or this Option Agreement. In the event that
there is any inconsistency between the provisions of this Agreement and of the
Plan, the provisions of the Plan shall govern.

     SECTION 12 Notices

     Any notice to be given to the Company hereunder shall be in writing and
shall be addressed to Nexsan Corporation, or at such other address as the
Company may hereafter designate to the Optionee by notice as provided in this
Section 12. Any notice to be given to the Optionee hereunder shall be addressed
to the Optionee at the address set forth beneath the Optionee's signature
hereto, or by electronic means if any facsimile number is provided beneath the
Optionee's signature hereto or at such other address as the Optionee may
hereafter designate to the Company by notice as provided herein. A notice shall
be deemed to have been duly given when personally delivered or, if mailed by
registered or certified mail to the party entitled to receive it, five days
after the date the notice was so mailed, or if sent electronically, on the day
on which it is actually transmitted.

     SECTION 13 Successors and Assigns

     This Agreement shall be binding upon and inure to the benefit of the
parties hereto and the successors and assigns of the Company and, to the extent
consistent with Section 4 of this Option Agreement and with the Plan, the heirs
and personal representatives of the Optionee.

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     SECTION 14 Governing Law

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

     SECTION 15 Severability

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

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

                                              NEXSAN CORPORATION

                                              /s/     Martin Boddy

                                              -------------------------------

                                              By:    Martin Boddy

                                              Title: CEO

                                              OPTIONEE:

                                              /s/  Gary Watson

                                              --------------------------------

                                              Address: 25 Wharfedale Road

                                              Long Eaton, Nottingham<PAGE>
                               NEXSAN CORPORATION.

                             STOCK OPTION AGREEMENT

         STOCK OPTION AGREEMENT (the "OPTION AGREEMENT"), dated as of January 4,
2001, between Nexsan Corporation, a Delaware corporation (the "COMPANY"), and
Paul Coxon (the "OPTIONEE"), an employee of the Company.

         The Company's Board of Directors has determined that the objectives of
the Company's 2001 Stock Plan (the "PLAN"), a copy of which has been delivered
to the Optionee, will be furthered by granting to the Optionee a stock option
pursuant to the Plan and pursuant to the Employment Agreement, dated the date
hereof, between the Optionee and the Company (the "EMPLOYMENT AGREEMENT").
Capitalized terms used herein without definition shall have the meaning as
described thereto in the Plan.

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

         SECTION 1 Grant of Option

         The Company hereby grants to the Optionee a stock option (the "OPTION")
to purchase 75,000 shares (the "SHARES") of common stock of the Company ("COMMON
STOCK") exercisable at $0.66 per share (the "EXERCISE PRICE").

         SECTION 2 Exercisability

         The Option shall become exercisable as to 15,000 Shares on each of the
first through fifth anniversaries of the date hereof. Unless earlier terminated
pursuant to the provisions of the Plan, the unexercised portion of the Option
shall expire and cease to exercisable at 11:59 p.m. on the day immediately
preceding the 10th anniversary of the date hereof.

         SECTION 3 Method of Exercise

         The Option (an Option may not be exercised for a fraction of a share)
shall be deemed exercised when the Company receives: (a) written or electronic
notice of exercise on such form and in such manner as the Committee shall
prescribe and (b) payment of the full purchase price for the number of shares
being purchased. Such payment may be made by one or a combination of the
following methods: (1) by cash, (2) check, (3) other shares which (i) in the
case of shares acquired upon exercise of an Option, have been owned by the
Optionee for more than six months on the date of surrender, and (ii) have a Fair
Market Value on the date of surrender equal to the aggregate exercise price of
the Shares to which the Option shall be exercised and (4) consideration received
by the Company under a cashless exercise program implemented by the Company in
connection with the Plan. It shall be a condition precedent to the issuance of
Shares upon exercise of the Option that the Optionee shall remit to the Company
an amount sufficient to satisfy all applicable withholding tax requirements. The
date of exercise of the Option shall be the date on which written notice of
exercise is hand delivered to the Company, during normal

<PAGE>

business hours, at its address as provided in Section 12 of this Agreement, or,
if sent electronically the date on which it is actually transmitted, during
normal business hours, or if mailed, the date on which it is postmarked,
provided such notice is actually received.

         SECTION 4 Death

         If the Optionee dies during the period in which the Option is
exercisable, the Option shall be exercisable by the Optionee's estate or by a
person who acquires the right to exercise the option by bequest or inheritance
only until the earlier of the expiration date of the Option (specified in
Section 2 of this Agreement) or six months after the Optionee's death.

         SECTION 5 Investment Representations

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

         SECTION 5.1 Acquisition of Shares for Own Account. The Optionee will
         acquire the Shares, if at all, pursuant to this Agreement with the
         Optionee's own funds, and not with the funds of anyone else. The Shares
         will be acquired, if at all, for the Optionee's own account, not as a
         nominee or agent and not for the account of any other person or firm.
         No one else has or will have on any exercise of the Option or any
         portion thereof any interest, beneficial or otherwise, in any of the
         Shares to be acquired on such exercise. The Optionee is not, and prior
         to any exercise of the Option will not be, obligated to transfer any of
         the Shares or any interest therein to anyone else and the Optionee does
         not and will not have any agreement or understandings to do so. The
         Optionee does not, and on any exercise of the Option will not, intend
         to subdivide the Optionee's acquisition of any Shares with anyone.

         SECTION 5.2 Shares May Be "Restricted Securities"; Certificates
         Representing Shares May Be Legended

                  The Optionee understands and agrees that:

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

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

                           SECTION 5.2.3 The Company shall cause legends set
                  forth below or legends substantially equivalent thereto, to be
                  placed upon any certificates representing any Shares received
                  by the Optionee on exercise of the Option, which legend
                  restricts the sale, transfer or disposition of the Shares
                  otherwise than in accordance with this Option Agreement, as
                  well as any other legends as the

<PAGE>

                  Company may deem appropriate or that may be required by the
                  Company or by the applicable state or federal securities laws:

                           THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
                  "ACT"), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED,
                  PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE
                  ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER
                  OF THESE SECURITIES, THAT SUCH REGISTRATION IS NOT REQUIRED
                  UNDER SAID ACT OR SUCH TRANSACTION COMPLIES WITH RULES
                  PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION UNDER
                  SAID ACT.

                           IN ADDITION, SALE, TRANSFER, ENCUMBRANCE,
                  HYPOTHECATION, GIFT OR OTHER DISPOSITION OR ALIENATION OF SUCH
                  SHARES OR ANY INTEREST THEREIN IS RESTRICTED BY AND SUBJECT TO
                  A STOCK OPTION AGREEMENT A COPY OF WHICH MAY BE INSPECTED AT
                  THE PRINCIPAL OFFICE OF THE ISSUER AND ALL OF THE PROVISIONS
                  OF WHICH ARE INCORPORATED BY REFERENCE IN THIS CERTIFICATE.

         SECTION 5.3 Agreement to Refrain from Resales. The Optionee agrees
         that, notwithstanding any provision hereof or in the Plan to the
         contrary, the Optionee shall in no event make any disposition of all or
         any part of or interest in the Shares and that such Shares shall not be
         encumbered, pledged, hypothecated, sold or transferred by the Optionee
         nor shall the Optionee receive any consideration for such Shares or for
         any interest therein from any person, unless and until prior to any
         proposed transfer, encumbrance, disposition, pledge, hypothecation or
         sale of any Shares, either (1) a registration statement on form S-1 or
         S-8 (or any other form replacing such form or appropriate for the
         purpose under the Act) with respect to such shares proposed to be
         transferred or otherwise disposed of shall be then effective or (2) (i)
         the Optionee shall have notified the Company of the proposed
         disposition and shall have furnished the Company with a detailed
         statement of the circumstances surrounding the proposed disposition,
         (ii) the Optionee shall have furnished the Company with an opinion of
         counsel in form and substance satisfactory to the Company to the effect
         that such disposition will not require registration of any such Shares
         under the Act or qualification of any such shares under any other
         securities law, (iii) such opinion of counsel shall have been concurred
         in by counsel for the Company and (iv) the Company shall have advised
         the Optionee of such concurrence.

<PAGE>

SECTION 6 Right of First Refusal Before any Shares acquired upon exercise of its
Option held by Optionee or any transferee (either being sometimes referred to
herein as the "Holder") may be sold or otherwise transferred (including transfer
by gift or operation of law), the Company or its assignee(s) shall have a right
of first refusal to purchase the Shares on the terms and conditions set forth in
this Section (the "Right of First Refusal").

         SECTION 6.1 Notice of Proposed Transfer. The Holder of the Shares shall
         deliver to the Company a written notice (the "Notice") stating: (i) the
         Holder's bona fide intention to sell or otherwise transfer such Shares;
         (ii) the name of each proposed purchaser or other transferee ("Proposed
         Transferee"); (iii) the number of Shares to be transferred to each
         Proposed Transferee; and (iv) the bona fide cash price or other
         consideration for which the Holder proposes to transfer the Shares (the
         "Offered Price"), and the Holder shall offer the Shares at the Offered
         Price to the Company or its assignee(s).

         SECTION 6.2 Exercise of Right of First Refusal. At any time within
         thirty (30) days after receipt of the Notice, the Company and/or its
         assignee(s) may, by giving written notice to the Holder, elect to
         purchase all or part of the Shares proposed to be transferred to any
         one or more of the Proposed Transferees, at the purchase price
         determined in accordance with subsection (c) below.

         SECTION 6.3 Purchase Price. The purchase price ("Purchase Price") for
         the Shares purchased by the Company or its assignee(s) under this
         Section shall be the Offered. If the Offered Price includes
         consideration other than cash, the cash equivalent value of the
         non-cash consideration shall be determined by the Board of Directors of
         the Company in good faith.

         SECTION 6.4 Payment. Payment of the Purchase Price shall be made, at
         the option of the Company or its assignee(s), (i) by cash or check,
         (ii) by cancellation of all or a portion of any outstanding
         indebtedness of the Holder to the Company (or, in the case of
         repurchase by an assignee, to the assignee), or (iii) by any
         combination thereof within thirty (30) days after receipt of the Notice
         or in the manner and at the times set forth in the Notice.

         SECTION 6.5 Holder's Right to Transfer. If Shares proposed in the
         Notice to be transferred to a given Proposed Transferee are not
         purchased by the Company and/or its assignee(s) as provided in this
         Section, then the Holder may sell or otherwise transfer such Shares,
         that are not repurchased by the Company, to that Proposed Transferee at
         the Offered Price or at a higher price, provided that such sale or
         other transfer is consummated within one hundred twenty (120) days
         after the date of the Notice and provided further that any such sale or
         other transfer is effected in accordance with any applicable securities
         laws and the Proposed Transferee agrees in writing that the provisions
         of this Section shall continue to apply to the Shares in the hands of
         such Proposed Transferee. If the Shares described in the Notice are not
         transferred to the Proposed Transferee within such period, a new Notice
         shall be given to the Company, and the Company and/or its assignees
         shall again be offered the Right of First Refusal before any Shares
         held by the Holder may be sold or otherwise transferred.

<PAGE>

         SECTION 6.6 Exception for Certain Family Transfers. Anything to the
         contrary contained in this Section notwithstanding, the transfer of any
         or all of the Shares during the Purchaser's lifetime or on the
         Purchaser's death by will or intestacy to the Purchaser's Immediate
         Family or a trust for the benefit of one or more members of the
         Purchaser's Immediate Family or to a trust, partnership, limited
         liability company, custodianship or other fiduciary account for the
         benefit of the Purchaser or one or more members of the Purchaser's
         Immediate Family, or the disbursement therefrom to Purchaser or one or
         more members of his Immediate Family, shall be exempt from the
         provisions of this Section, provided that the Purchaser notifies the
         Company in writing within thirty (30) days of said transfer. "Immediate
         Family" as used herein shall mean spouse, lineal descendant or
         antecedent, father, mother, brother or sister. In such case, the
         transferee or other recipient shall receive and hold the Shares so
         transferred subject to the provisions of this Agreement and there shall
         be no further transfer of such Shares except in accordance with the
         terms of this Section.

         SECTION 6.7 Termination of Right of First Refusal. The Right of First
         Refusal shall terminate as to any Shares upon the date of the first
         sale of Common Stock of the Company to the general public pursuant to a
         registration statement filed with and declared effective by the
         Securities and Exchange Commission under the 1933 Act.

         SECTION 7 Lock-Up Period Optionee hereby agrees that, if so requested
by the Company or any representative of the underwriters (the "Managing
Underwriter") in connection with any registration of the offering of any
securities of the Company under the Securities Act, Optionee (or any transferee)
shall not sell or otherwise transfer any Shares or other securities of the
Company during the 180-day period (or such shorter period as may be requested in
writing by the Managing Underwriter and agreed to in writing by the Company)
(the "Market Standoff Period") following the effective date of a registration
statement of the Company filed under the Securities Act. Such restriction shall
apply only to the first registration statement of the Company to become
effective under the Securities Act that includes securities to be sold on behalf
of the Company to the public in an underwritten public offering under the
Securities Act. The Company may impose stop-transfer instructions with respect
to securities subject to the foregoing restrictions until the end of such Market
Standoff Period.

         SECTION 8 Nonassignability

         The Option shall not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner, voluntarily or involuntarily, other
than by will or by the laws of descent and distribution.

         The Option shall be exercisable during the lifetime of the Optionee
only by the Optionee and thereafter by the Optionee's estate or by a person who
acquires the right to exercise the Option by bequest or inheritance.

<PAGE>

         SECTION 9 No Right of Employment

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

         SECTION 10 421(b) Disqualifying Disposition Notice

         With respect to the transfer or other disposition of Shares issued
pursuant to the exercise of any "incentive stock options" granted hereunder, the
Optionee shall notify the Company of any such transfer of disposition made under
the circumstances described in Section 421(b) of the Code (relating to certain
disqualifying dispositions). Such notice shall be delivered to the Company in
accordance with the provisions of Section 11 below within 10 days of such
transfer or other disposition.

         SECTION 11 Plan Provisions to Prevail

         This Option Agreement is subject to all of the terms and provisions of
the Plan. Without limiting the generality of the foregoing, by entering into
this Option Agreement the Optionee agrees that no member of the Board or the
Committee nor any employee of the Company, Parent Corporation or any of the
Company's subsidiaries shall be liable for any action or determination made in
good faith with respect to the Plan or this Option Agreement. In the event that
there is any inconsistency between the provisions of this Agreement and of the
Plan, the provisions of the Plan shall govern.

         SECTION 12 Notices

         Any notice to be given to the Company hereunder shall be in writing and
shall be addressed to Nexsan Corporation, or at such other address as the
Company may hereafter designate to the Optionee by notice as provided in this
Section 12. Any notice to be given to the Optionee hereunder shall be addressed
to the Optionee at the address set forth beneath the Optionee's signature
hereto, or by electronic means if any facsimile number is provided beneath the
Optionee's signature hereto or at such other address as the Optionee may
hereafter designate to the Company by notice as provided herein. A notice shall
be deemed to have been duly given when personally delivered or, if mailed by
registered or certified mail to the party entitled to receive it, five days
after the date the notice was so mailed, or if sent electronically, on the day
on which it is actually transmitted.

         SECTION 13 Successors and Assigns

         This Agreement shall be binding upon and inure to the benefit of the
parties hereto and the successors and assigns of the Company and, to the extent
consistent with Section 4 of this Option Agreement and with the Plan, the heirs
and personal representatives of the Optionee.

<PAGE>

         SECTION 14 Governing Law

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

         SECTION 15 Severability

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

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

                                             NEXSAN CORPORATION

                                             /s/  Martin Boddy
                                             ---------------------------
                                             By:   Martin Boddy
                                             Title: CEO

                                             OPTIONEE:

                                             /s/ Paul Coxson
                                             ---------------------------
                                             Address: 6 Bramcote Drive, Beeston
                                                         Nottingham, NG91AW
                                                         United Kingdom

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