Document:

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                             CONTRACT OF EMPLOYMENT

Dated January 4, 2001

1. The Employer: Nexsan Technologies Ltd, Imperial House, East Service,
                 Road, Raynesway, Derby "We", "Us", or "the Company"

AND

2. The Employee: Martin Boddy of 5 Duck Island ("You")
                 Duffield, Derby PE 564EZ

1. Employment/job title/mobility

         1.1      We will employ you, and you will work for us as Managing
                  Director.

         1.2      While your initial place of work will be Derby you will work
                  at and/or travel to such places as we may reasonably require
                  from time to time.

2. Duration

         2.1      Your employment with us commenced on January 4, 2001 and
                  subject to Clause 11.1 below will continue for an initial
                  fixed term of five years from that date. At any time after
                  January 4, 2005 four years after commencement) this contract
                  can be determined by twelve months notice given by either you
                  or us.

         2.2      If not terminated earlier, this contract will end
                  automatically when you reach age 65.

3. Your Duties

         3.1      You will faithfully and diligently and to the best of your
                  ability exercise

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                  such powers and perform such reasonable duties in relation to
                  our business as we require from time to time, and comply with
                  all limitations, rules and regulations we may notify to you
                  from time to time.

         3.2      You will work such hours including as a minimum normal office
                  hours at your place of work as are needed for the proper
                  performance of your duties. In particular you agree whenever
                  necessary to work longer than 48 hours a week on average. You
                  will not be entitled to additional pay for overtime. 3.3 You
                  will at all time endeavour to promote the interest and
                  reputation of the Company.

4. Pay and benefits in kind

         4.1      We will pay you a basic salary of $143,000 a year during your
                  first year of employment; a basic salary of $218,000 a year
                  during your second year of employment; and thereafter, for
                  every subsequent year of employment a basic salary 5% greater
                  than the basic salary paid to you during your previous year of
                  employment. We will pay this in equal instalments by credit
                  transfer to your nominated bank or building society account in
                  Great Britain on or about the last business day of each
                  monthly pay period. Your salary is deemed to include any fees
                  receivable for holding any office in the Company or its
                  Associates. We will review your salary annually and the
                  Company may in its absolute discretion increase but not reduce
                  your salary by such amount if any as it thinks fit.

         4.2      We may, in our absolute discretion, pay you a bonus in respect
                  of each financial year of the Company. To be eligible for
                  consideration for such a bonus you must have been in service
                  throughout the year in question and to receive it you must
                  still be in service and not under notice of termination on the
                  date appointed for payment of bonus.

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         4.3      You will be eligible to join the Company pension scheme "the
                  Scheme" subject to and in accordance with the rules of the
                  Scheme, which provides that the Scheme may be amended or
                  discontinued. The rules of the Scheme and any amendments to
                  the rules of the Scheme will be notified to you. You will
                  contribute to the Scheme at the level of 4% of your gross
                  earnings and will be treated as having authorised the Company
                  to deduct contributions from your earnings at that level.
                  Members of the scheme are contracted out of the State Earnings
                  Related Pension Scheme.

         4.4      You and members of your immediate family will be eligible to
                  participate in the Company's private health care scheme.
                  Details of the scheme and any amendments to the scheme will be
                  provided to you. At any time after commencement of your
                  employment, at the discretion of the Company, you may be
                  required to undergo a medical examination by a medical advisor
                  approved by the Company and to authorise the medical advisor
                  to disclose to the Company the results of the examination.

         4.5      We will not provide you with a Company car however we will
                  reimburse you in respect of the business mileage incurred by
                  you using your own car on Company business at a rate of inland
                  revenue fixed profit car scheme per mile or such other rate as
                  may from time to time be agreed.

         4.6      We will reimburse you at the end of each pay period for all
                  travelling, hotel, entertainment and other expenses reasonably
                  incurred by you in the performance of your duties in
                  accordance with Company guidelines and subject to receipt from
                  you of a duly vouched expenses claim form. If we issue you
                  with a charge or credit card you must only use it for Company
                  business purposes.

5. Holiday entitlement

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         5.1      Our holiday year is the calendar year from 1 January to 31
                  December. Your annual holiday entitlement will be 20 working
                  days in addition to the normal English Bank and Public
                  holidays. Your holiday must be taken during the holiday year
                  and your holiday dates agreed in advance. Employees who
                  started during the holiday year will be entitled to 1 1/2
                  days' holiday for each complete month left in the holiday
                  year.

         5.2      We, do not normally allow staff to carry unused holiday
                  entitlement forward (and we do not normally pay in lieu of
                  untaken holiday).

         5.3      If you leave during a holiday year, your holiday entitlement
                  will be recalculated as (1 YS) days holiday for each complete
                  month worked in the year. If you have taken less holiday than
                  this you will be paid in lieu. If you have taken more holiday
                  than this, you will have to repay the excess holiday pay. One
                  day's holiday pay will be deemed to be 11260th of your annual
                  basic salary.

6. Notification of Absence

         6.1      If you are unable to come to work for any reason and your
                  absence has not previously been authorised by us you must
                  inform us immediately and keep us informed. You must confirm
                  the reasons for your absence in writing as soon as
                  practicable.

         6.2      Following your return to work after a period of absence due to
                  sickness of 7 calendar days or less you will have to complete
                  a self-certification form. Self-certification forms will be
                  retained in our records.

         6.3      If you are absent from work due to sickness for more than 7
                  calendar days (including weekends) you must provide us with a
                  medical certificate by the 8th day of sickness. You must
                  provide medical certificates to us to cover any further
                  absence.

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7. Sick pay

         7.1.     If you are absent from work due to sickness (including mental
                  illness or a accidental injury) and comply with the
                  requirements in clause 6, you will be paid Company Sick Pay at
                  full pay for a period of ten weeks in any rolling 52 week
                  period thereafter you will be entitled to Statutory Sick Pay.

8. Confidentiality

         You must not at any time during (except in the course of your duties)
         or after your employment disclose or make use of your knowledge of any
         confidential information of the Company and its Associates acquired by
         you during or as a consequence of your employment with us. Confidential
         information includes (without limitation) all and any information about
         business plans, maturing new business opportunities, research and
         development projects, product formulae, processes, inventions, designs,
         discoveries or know-how, sales statistics, marketing surveys and plans,
         costs, profit or loss, prices and discount structures, the names,
         addresses and contact details of customers and potential customers or
         suppliers and potential suppliers (whether or not recorded in writing
         or on computer disk or tape) which the Company or relevant Associate
         treats as confidential.

9. Restrictions on competition

         9.1      You will not for the first 3 months after the end of your
                  employment with us either on your own account or on behalf of
                  any other legal person and in competition with the Company (or
                  any Associate) directly or indirectly be engaged in or be
                  concerned with any trade or business carried on by and/or
                  competitive with us at the end of your employment.

         9.2      You will not for the first 6 months after the end of your
                  employment with us solicit away from us any person who is and
                  was, when your employment ended, employed by us during the
                  last 12 months of your

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                  employment.

         9.3      Each of the above restrictions is separate and severable from
                  the other. If one is enforceable for any reason, but would be
                  enforceable if some of its wording were deleted, it shall
                  apply with such deletions as are necessary to make it
                  enforceable.

         9.4      None of the above provisions shall apply if you have been
                  dismissed by the Company in breach of this contract.

10. Dismissal

         10.1     We can dismiss you without prior notice or pay in lieu (and
                  you will not be entitled to compensation or damages) if you:

         10.1.1   commit any act of gross misconduct or gross incompetence or
                  other repudiatory breach of contract;

         10.1.2   without reasonable excuse and after prior written warning,
                  repeat or continue any breach of contract (not falling within
                  10.1.1 above);

         10.1.3   are absent due to sickness for at least 120 consecutive days,
                  or an aggregate of 180 days in a period of 52 consecutive
                  weeks;

         10.1.4   commit such misconduct outside work of such disrepute that in
                  the reasonable option of your continued employment will
                  materially prejudice the interests of the Company;

         10.1.5   are convicted of any criminal offence (other than road traffic
                  offences) punishable with imprisonment (whether or not such
                  sentence is actually imposed on you);

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         10.1.6   resign (otherwise than at our request) any office you hold in
                  the Company or its Associates or by virtue of your,
                  employment;

         10.1.7   become bankrupt, apply for or have a receiving order made .
                  against you or enter into any voluntary arrangement with your
                  creditors; or

         10.1.8   have an order made against you disqualifying you from acting
                  as a Company director.

         While we will endeavour to deal fairly with allegations against you, we
         reserve the right to proceed under this sub-clause without prior notice
         and without holding a hearing or inviting any representations from you.

10.2     We reserve the option in our absolute discretion to terminate your
         employment by paying you in lieu of notice. The payment shall be solely
         your basic salary without taking into account any bonus, pension
         contributions or benefits in kind and shall be subject to deductions
         for income tax and national insurance contributions as appropriate. You
         will not, under any circumstances, have any right to payment in lieu
         unless we have exercised our option to pay in lieu by notice to you.

10.3     At the end of your employment for whatever reason you must;

         10.3.1   on request resign any directorships or other offices held by
                  you in the Company or its Associates or by virtue of your
                  employment and transfer to the Company or as the Company may
                  direct any shares or other securities held by you as nominee
                  or trustee for the Company or any Associate without payment in
                  either case. If you fail to do so within 7 days of request,
                  the Company is hereby

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                  irrevocably authorised to appoint a person in your name and on
                  your behalf to execute any documents or do any things
                  necessary for such purpose(s) (all of which shall be without
                  prejudice to any claims which you might otherwise have against
                  us).

         10.3.2   return all the Company's Associate's documents, computer disks
                  or tapes and all other tangible items in your possession or
                  control belonging to or containing any confidential
                  information of the Company or its Associates.

11. Miscellaneous

         11.1     Any notice to be given under this contract must be in writing
                  and must either be delivered by hand or courier or sent by
                  first class pre-paid post (or facsimile if the recipient has a
                  facsimile number). Notices to the Company must be addressed to
                  its registered office or sent to the Company secretary's
                  facsimile number as the case may be. Notices to you must be
                  addressed to your last known home address or sent to your
                  facsimile number (if any) at your last known home address as
                  the case . may be. A notice shall be deemed to have served at
                  the time of delivery if delivered by hand or courier, 2 clear
                  days after the time of posting if sent by first class pre-paid
                  post, and at the time of completion of transmission by the
                  sender if sent by facsimile.

         11.2     No omission to exercise or delay in exercising any right,
                  power or remedy provided to the Company by law or under this
                  contract will be a waiver of it.

         11.3     This contract (together with any documents referred to in it)
                  sets out the whole agreement between the parties relating to
                  and cancels all previous agreements, representations and
                  arrangements in connection with your employment by us or any
                  Associate.

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         11.4     The validity, construction and performance of this contract
                  shall be governed by English law.

         11.5     All disputes, claims or proceedings between the parties
                  relating to the validity, construction, performance or
                  termination of this contract shall be subject to the exclusive
                  jurisdiction of the English Courts.

         11.6     Termination of this contract shall not affect any provisions
                  which are intended to operate after termination.

         11.7     We reserve the right and you agree to our deducting any debts
                  you owe us from your wages.

12. Statutory particulars

The further particulars of terms of employment not contained above which must be
given to you under the Employment Rights Act 1996 are as follows:

         12.1     Your continuous employment began on (insert).

         12.2     There are no collective agreements with trade unions which
                  directly affect the terms and conditions of your employment.

         12.3     If you have any grievance relating to your employment or if
                  you are dissatisfied with any disciplinary decision affecting
                  you, you should first attempt to resolve this by discussion
                  with your immediate superior. Failing satisfaction you may
                  refer it in writing for determination at the next level of
                  management.

SIGNED on behalf of the Employer by a duly authorised officer

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Sign                 /s/ Martin Boddy

Print                    Martin Boddy
on (date)                January 4, 2001
(in the presence of
witness (sign)
     (print)

SIGNED by the Employee

Sign                 /s/ Martin Boddy

Print                    Martin Boddy
on (date)                January 4, 2001
(in the presence of
witness (sign)
     (print)

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                          EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement"), dated as of January 4, 2001
between NEXSAN CORPORATION a Delaware corporation ("Company") and GARY WATSON
("Executive").

                              W I T N E S S E T H :

         WHEREAS, the Company desires to employ Executive as its Chief Technical
officer and Executive desires to accept such employment, upon the terms and
conditions hereinafter set forth;

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the parties hereto agree as follows:

         1.       EMPLOYMENT

                  1.1 The Company hereby agrees to employ Executive, and
Executive hereby agrees to accept employment by the Company and to serve, as the
Chief Technical Officer, effective as of the consummation of the transactions
contemplated by (i) the Exchange Agreement among the Company and the
shareholders of Nexsan Technologies Ltd., and by (ii) the Stock Purchase
Agreement among the Company, Beechtree Capital LLC, and the purchasers of the
Company's common stock ("Common Shares") parties thereto (the "Effective Date").

                  1.2 The Executive agrees to undertake the duties and
responsibilities inherent in such position and such other duties and
responsibilities as the Board of Directors of the Company shall from time to
time reasonably assign to him. The Executive shall devote his full-time efforts
to the business of the Company and it Affiliates (defined below) so as to
increase the profitability and shareholder value of the Company; and the
Executive shall not be engaged in any other business activity during the
duration of this Agreement, unless written approval is first secured from the
Board of Directors of the Company.

                  1.3 Executive shall also serve at the option of the Company as
an officer or director of any other entity controlling, controlled by or under
common control with the Company (an "Affiliate") without additional
compensation, it being understood, however, that Executive is contemporaneously
herewith entering into a Contract of Employment with Nexsan Technologies, Ltd.
Without limiting the forgoing, during the term of this Agreement, the Executive
consents to being appointed as a member of the Company's Board of Directors.

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                  1.4 The Executive agrees to abide by the rules, regulations,
instructions, personnel practices and policies of the Company and any changes
therein that may be adopted from time to time by the Company.

          2.      COMPENSATION

                  2.1      Base Salary

                           (a) The Company shall pay Executive a base salary
("Base Salary") at the rate of $25,000 per year. Base Salary shall be payable in
installments consistent with the Company's payroll practices then in effect. The
Company shall increase the Base Salary annually, beginning on the second
anniversary of the Effective Date, by five percent (5%) over the Base Salary in
effect the previous year.

                  2.2      Stock Options

                           Intentionally omitted.

                  2.3      Additional Compensation

                           Nothing contained in this Agreement shall prevent
the Board of Directors of the Company, in its sole and absolute discretion,
from, at any time, increasing Executive's compensation either permanently or for
a limited period, whether in Base Salary or by bonus or otherwise, if the Board
of Directors, in its sole discretion, shall deem it advisable to do so in order
to recognize and fairly compensate the Executive for services rendered,
provided, that nothing in this sentence shall in any manner obligate the Board
of Directors to make any such increase or provide any such additional benefits.

                  2.4      Withholdings, Etc.

                           Payment of all compensation and benefits to
Executive hereunder shall be made in accordance with the relevant Company
policies in effect from time to time, including normal payroll practices, and
shall be subject to all applicable employment and withholding taxes.

          3.      BENEFITS

                  Executive shall be entitled to participate in all health
care, insurance, deferred compensation and other employee benefit plans
generally available to executives of the Company, consistent with the terms of
those plans as they may currently exist or be modified from time to time.

          4.      TERM AND TERMINATION

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                  4.1 Unless earlier terminated as provided herein, the initial
term of this Agreement and of Executive's employment hereunder shall commence on
the Effective Date and shall terminate on the fifth anniversary (the "Expiration
Date") of the Effective Date. Unless this Agreement shall have been earlier
terminated, the term of this Agreement and Executive's employment will be
extended automatically for successive one (1) year terms commencing on the
Expiration Date unless either party elects to terminate this Agreement by
providing written notice to the other party at least one hundred eighty (180)
days prior to the expiration of the Initial Term or any renewal term of this
Agreement.

                  4.2 This Agreement and Executive's employment hereunder shall
terminate:

                      (a) upon the death of Executive;

                      (b) upon written notice to Executive if, as a result of
                          Executive's incapacity due to physical or mental
                          illness, Executive shall have been unable to perform
                          Executive's duties hereunder on a full time basis for
                          a consecutive period of one hundred twenty (120) days
                          or an aggregate of one hundred eighty (180) days
                          within any twelve-month period; or

                      (c) upon written notice to Executive, for Cause. "Cause"
                          means (i) any willful, material violation by the
                          Executive of any law or regulation applicable to the
                          business of the Company or any Affiliate; (ii) the
                          Executive's conviction for, or guilty plea or plea of
                          nolo contendere to, a felony (other than a felony
                          related solely to automobile infractions, unless
                          Executive is incarcerated as a result thereof); (iii)
                          the Executive's commission of an act of personal
                          dishonesty which involves personal profit in
                          connection with the Company or any other entity having
                          a business relationship with the Company, (iv) gross
                          carelessness or unjustifiable neglect of Executive's
                          duties or willful failure to follow the lawful orders
                          of the Board of Directors of the Company; (v) any
                          material breach by the Executive this Agreement; (vi)
                          the Executive's violation of any of the policies of
                          the Company or any Affiliate so as to cause loss,
                          damage or injury to the property, reputation or
                          employees of the Company or any Affiliate, or (vi) any
                          other willful misconduct by the Executive which is
                          materially injurious to the business, financial
                          condition or business reputation the Company or any
                          Affiliate.

                      4.3 Consequences of Termination

         In the event that the Company terminates Executive's employment
pursuant to Section 4.2 then (a) the Executive's Base Salary shall be prorated
as of the date of termination or resignation and such prorated amount shall be
paid to Executive, and (b) the Company shall make such other and further

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payments to Executive as may be provided pursuant to the terms of any employee
benefit plan in which Executive is a participant at the time of termination, to
the extent payable upon such termination in accordance with such plans or
applicable Company policies.

         5. ADDITIONAL AGREEMENTS AND UNDERSTANDINGS

            5.1 Employment Location

         The Executive shall perform the employment duties contemplated by this
Agreement from such location as the Company may from time to time specify, it
being understood that Executive's principal place of residence shall be the U.K.
The Executive acknowledges that his duties hereunder entail substantial travel.

            5.2 Reimbursement of Expenses

         Upon submission of itemized expense statements in the manner specified
by the Company, Executive shall be entitled to reimbursement for reasonable
travel and other reasonable business expenses duly incurred by Executive in the
performance of Executive's duties under this Agreement, all in accordance with
the policies and procedures established by the Company from time to time for the
Company's executives.

            5.3 Company Property

         Executive agrees that all operating and/or financial data and
projections, plans, contracts, agreements, literature, manuals, brochures,
books, schedules, correspondence and other materials furnished, disclosed or
otherwise made available to Executive by the Company or its Affiliates or
secured through the efforts of Executive, relating to the business conducted by
the Company and/or its Affiliates, are and shall remain the property of the
Company and/or its Affiliates, and Executive agrees to deliver all such
materials, including all copies or abstracts thereof, to the Company upon the
termination of Executive's employment hereunder, or at any other time at the
Company's request.

             5.4 Confidential Information

         Executive agrees that, except in the good faith performance of his
duties and responsibilities under this Agreement or as required by order of a
court or governmental agency having jurisdiction, he will not at any time during
or after his employment with the Company use, reveal, divulge or make known to
any person or entity any confidential or proprietary knowledge or information
concerning the Company or its Affiliates, including without limitation any such
information concerning any equipment, facilities, customers, end users,
contracts, leases, operating and/or financial data and projections, processes,
developments, schedules, lists, plans or other matters relating to the business
of the Company or its Affiliates and will retain all knowledge and information
Executive acquired during his

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employment therewith relating to the business of the Company or its Affiliates
in trust in a fiduciary capacity for the sole benefit of the Company,
its Affiliates and their respective successors and assigns. Executive's
obligations under this Section 5.4 shall not apply to any information that (i)
is or becomes known to the general public under circumstances involving no
breach by Executive of this Agreement, (ii) is generally disclosed to third
parties (excluding counsel, accountants, financial advisors, employees, agents
and material creditors of the Company) by the Company without restriction on
such third parties, or (iii) is approved for release by written authorization of
the President of the Company.

         5.5 Developments

             (a) Executive will make full and prompt disclosure to the Company
of all inventions, improvements, discoveries, methods, developments, software,
and works of authorship, whether patentable or not, which are created, made,
conceived or reduced to practice by the Executive or under his direction or
jointly with others during his employment by the Company, whether or not during
normal working hours or on the premises of the Company (all of which are
collectively referred to in this Agreement as "Developments").

             (b) Executive agrees to assign and does hereby assign to the
Company (or any person or entity designated by the Company) all his right, title
and interest in and to all Developments and all related patents, patent
applications, copyrights and copyright applications.

             (c) Executive agrees to cooperate fully with the Company, both
during and after his employment with the Company, with respect to the
procurement, maintenance and enforcement of copyrights and patents (both in the
United States and foreign countries) relating to Developments. Executive shall
sign all papers, including, without limitation, copyright applications, patent
applications, declarations, oaths, formal assignments, assignment of priority
rights, and powers of attorney, which the Company may deem necessary or
desirable in order to protect its rights and interests in any Development.

         5.6 Non-Competition

             While employed hereunder and for a period of one (1) year
thereafter, Executive shall not (i) enter into the employment of, or act as a
consultant, director, officer, or employee of, or render any service or advice
to, any other business, partnership, association, corporation or other entity
which directly engages in competition in any material respect with any business
presently carried on or under development, or which hereafter during the period
of his employment by the Company shall be carried on or be under development by
the Company and which is then being carried on by the Company, in the United
States or any foreign country where such business is then or was within the one
year period ending on the date of termination conducted, other than the Company
or any Affiliate (a "Competing Business") or (ii) invest or otherwise acquire
any interest, whether as a shareholder, lender, partner, proprietor, vendor or
otherwise, in any Competing

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Business (excluding ownership of less than 2% of a class of securities of a
publicly_traded company). While employed hereunder and for a period of one (1)
year after termination of employment, Executive shall not encourage, solicit, or
attempt to induce (or assist others to encourage, solicit, or attempt to induce)
any customer of the Company or any user of products of the Company to reduce,
restrict, or terminate its business relationship with the Company or any
reseller which is a customer of the Company or its use of products, or products
which incorporate products, manufactured by the Company, or to shift its
business from the Company or any such reseller to any other supplier of
competing goods or services.

         5.7 Non-Solicitation

             While employed hereunder and for a period of one (1) year
thereafter, Executive shall not, directly or indirectly, entice, induce or in
any manner influence any person who is, or shall have been during such period,
in the service of the Company or its Affiliates, or employed or engaged by or
otherwise associated with any person or entity, to leave such service.

         5.8 Survival, Rights and Remedies

             The provisions of this Section 5 shall survive the termination of
this Agreement and the termination of Executive's employment with the Company
and shall run to and inure to the benefit of the Company and its successors and
assigns. Executive represents, warrants and acknowledges that he has carefully
read this Section 5, that he has had an opportunity to have the provisions
contained herein explained to him by his attorney, and that he understands the
provisions contained herein. Executive further acknowledges that, by reason of
his training, skills, experience and employment hereunder, the services to be
rendered by him under the provisions of this Agreement and their value to the
Company are of a special, unique and extraordinary character and that it would
be difficult or impossible to replace such services, and he further acknowledges
that a violation by him of any of the provisions of this Section 5 could cause
continuing material and irreparable injury to the Company and that in such event
money damages would not be readily calculable and the Company would not have an
adequate remedy at law. Executive acknowledges and agrees that (i) the
restrictions under this Section 5 are reasonable and will not interfere with
Executive's ability to earn a livelihood or impose upon him any undue hardship,
and (ii) any breach of the covenants, provisions and restrictions contained in
this Section 5 shall cause, and shall be deemed to be, a fundamental and
material breach of Executive's fiduciary and contractual obligations to
Employer. Therefore, Executive agrees that the Company shall be authorized and
entitled to obtain from any court of competent jurisdiction, interim and
permanent equitable relief, including without limitation, injunctive relief, in
the event of any such breach or threatened breach of the provisions of this
Section 5, together with payment of reasonable attorneys' fees and disbursements
and any other costs of enforcement incurred in connection with such breach or
threatened breach. These rights and remedies shall be cumulative and shall be in
addition to any other rights or remedies whatsoever to which the Company shall
otherwise be entitled hereunder, at

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law or otherwise, including the right to seek damages (including any
consequential damages) which any court of competent jurisdiction may deem
appropriate.

         6. APPLICABLE LAW; ARBITRATION

            This Agreement shall in all respects, including all matters of
construction, validity and performance, be governed by and construed and
enforced in accordance with the laws of the State of New York. Except as
provided in Section 5.8, any controversy or claim arising under the provisions
of this Agreement or of any breach or alleged breach thereof shall be subject to
mediation under the auspices of the American Arbitration Association in New
York, New York or any other location mutually agreeable to the parties, and, if
not resolved thereby, shall be settled by arbitration, before a single
arbitrator sitting in New York, New York or any other location mutually
agreeable to the parties, in accordance with the Commercial Arbitration Rules of
the American Arbitration Association, and judgment upon the award rendered by
the arbitrator may be entered in any court having jurisdiction. The arbitrator
shall be authorized to decree any and all relief of an equitable nature, and
shall also be authorized to award damages and costs. Notwithstanding the
foregoing, in the extent of a breach or impending breach of this Agreement,
either party may seek an injunction, restraining order or other equitable relief
from any court of competent jurisdiction.

         7. SUCCESSORS

            This Agreement and all rights of Executive hereunder shall
inure to the benefit of and be enforceable by Executive's personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If Executive should die while any amounts still are
payable to him hereunder if he had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to Executive's devisee, legatee, or other designee or, if there be no
such designee, to Executive's estate.

         8. MISCELLANEOUS

            8.1 Entire Agreement

                This Agreement constitutes the entire agreement between the
parties and supersedes all prior agreements and understandings, whether written
or oral, relating to the subject matter of this Agreement.

            8.2 Notices

                Every notice required by the terms of this Agreement shall be
given in writing by serving the same upon the party to whom it was addressed
personally or by registered or certified mail,

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<PAGE>

return receipt requested, at the address set forth below or at such other
address as may hereafter be designated by notice given in compliance with the
terms hereof:

                           If to Executive:
                                            ------------------------
                                               ------------------------
                                               ------------------------

                           If to Company:   Nexsan Corporation
                                            c/o Beechtree Capital Ltd.
                                            1 Rockefeller Plaza
                                            New York, New York 10020

                           and              Nexsan Technologies, Ltd.
                                            Imperial House
                                            East Service Road
                                            Rayneway
                                            Derby DE21 7BF
                                            England

                           with a copy to:  RubinBaum LLP
                                            30 Rockefeller Plaza
                                            New York, New York  10112
                                            Attn.:  Michael Emont, Esq.
                                            Facsimile No.:  (212) 698-7825

or such other address as shall be provided in accordance with the terms hereof.
Such notice shall be effective upon mailing.

           8.3 Other Agreements

           Executive hereby represents that he is not bound by the terms of any
agreement with any previous employer or other party to refrain from using or
disclosing any trade secret or confidential or proprietary information in the
course of his employment with the Company or to refrain from competing, directly
or indirectly, with the business of such previous employer or any other party.
Executive further represents that his performance of all the terms of this
Agreement and as an employee of the Company does not and will not breach any
agreement to keep in confidence proprietary information, knowledge or data
acquired by him in confidence or in trust prior to his employment with the
Company.

          8.4 Assistance In Proceedings, Etc.

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<PAGE>

          After termination of his employment, and upon reasonable notice,
Executive shall furnish such information and proper assistance to the Company as
may reasonably be required by the Company in connection with any legal or
quasi-legal proceeding, including any external or internal investigation,
involving the Company or any of its affiliates or in which any of them is, or
may become, a party. The Company shall compensate Executive at the rate of
$1,000 per hour for any such services performed after termination and will
reimburse Executive for all reasonable expenses incurred in connection therewith
in accordance with the provisions of Section 2 of this Agreement..

          8.5 Waivers

              No delay or failure by any party hereto in exercising, protecting
or enforcing any of its rights, titles, interests or remedies hereunder, and no
course of dealing or performance with respect thereto, shall constitute a waiver
thereof. The express waiver by a party hereto of any right, title, interest or
remedy in a particular instance or circumstance shall not constitute a waiver
thereof in any other instance or circumstance. All rights and remedies shall be
cumulative and not exclusive of any other rights or remedies.

          8.6 Amendments in Writing

              No amendment, modification, waiver, termination or discharge of
any provision of this Agreement, nor consent to any departure therefrom by
either party hereto, shall in any event be effective unless the same shall be in
writing, specifically identifying this Agreement and the provision intended to
be amended, modified waived, terminated or discharged and signed by the Company
and the Executive, and each such amendment, modification, waiver, termination or
discharge shall be effective only in the specific instance and for the specific
purpose for which given. No provision of this Agreement shall be varied,
contradicted or explained by any oral agreement, course of dealing or
performance or any other matter not set forth in an agreement in writing and
signed by the Company and the Executive.

          8.7 Severability

              If any provision of this Agreement shall be held invalid, illegal
or unenforceable in any jurisdiction, for any reason, including, without
limitation, the duration of such provision, its geographical scope or the
extent of the activities prohibited or required by it, then, to the full
extent permitted by law, (a) all other provisions hereof shall remain in full
force and effect in such jurisdiction and shall be liberally construed in order
to carry out the intent of the parties hereto an nearly as may be possible, (b)
such invalidity, illegality or unenforceability shall not affect the validity,
legality or enforceability of any other provision hereof, and (c) any court or
arbitrator having jurisdiction thereover shall have the power to reform such
provision to the extent necessary for such provision to be enforceable under
applicable law.

         8.8 Cooperation.

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<PAGE>

         Upon termination of employment with the Company, Executive shall
cooperate with the Company, as reasonably requested by the Company, to effect a
transition of Executive's responsibilities and to ensure that the Company is
aware of all matters which had been handled by Executive. The Company will
reimburse Executive for all reasonable expenses incurred in connection
therewith.

         8.9 Protection Of Reputation.

         From the date hereof, Executive agrees that he will take no action
which is intended, or could reasonably be expected, to harm the Company or its
reputation or which could reasonably be expected to lead to unwanted or
unfavorable publicity to the Company, provided, that nothing in this Section 8.9
shall affect the ability of Executive to enforce any remedy available at law or
in equity.

          8.10 Counterparts

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

         IN WITNESS WHEREOF, the parties have executed and entered into this
Agreement on the 4th day of January, 2001

                                                       NEXSAN CORPORATION

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

                                                       /s/ Gary Watson
                                                       ----------------------
                                                       Gary Watson

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