Document:

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DATED                               25th MARCH                             1999
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1.   IVYGROVE DEVELOPMENTS LIMITED (Landlord)

2.   NEXSAN TECHNOLOGIES LIMITED (Tenant)

                  Counterpart/

                                    L E A S E
                                    ---------

                                       of

       Premises:  Unit 6, Eastside Park, East Service Road, Raynesway, Derby.

       Contractual Term: 6 years.

       Initial Rent:  British Pound 15,000.00 per annum.

       Review Date: In the year 2001.

                             FLINT, BISHOP & BARNETT
                                   SOLICITORS
                                      DERBY

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                                INDEX TO CLAUSES
                                ----------------

1.       Definitions and Interpretation

2.       The letting terms

3.       Tenant's covenants

4.       Provisos

5.       Landlord's covenants

6.       Obligations in Schedules to this Lease

7.       Break Clause

8.       Expert Determination

9.       Legal fees

10.      Stamp duty certificate

11.      Covenant status of Lease

Schedule 1 - Description of the Premises, rights and reservations

Schedule 2 - Rent reviews

Schedule 3 - Insurance provisions

Schedule 4 - Form of guarantee on Assignment

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     DATE: 25TH day of March 1999

     PARTIES:-

     (1)  The Landlord: IVYGROVE DEVELOPMENTS LIMITED whose registered office is
          at Racecourse Industrial Park Mansfield Road Derby DE21 4SX

     (2)  The Tenant: NEXSAN TECHNOLOGIES LIMITED whose registered office is at
          102 Friar Gate Derby DE1 1FH

     OPERATIVE PROVISIONS

1    DEFINITIONS AND INTERPRETATION

     1.1  DEFINITIONS

     In this Lease where the context so allows:

          "BUILDING" means the building of which the Premises form part edged
          blue on the plan annexed hereto and refers to each and every part of
          the Building and the car park service or loading area service road and
          any other areas the use and enjoyment of which is appurtenant to the
          Building whether or not within the structure of the Building

          "COMMON PARTS" means those parts of the site to be used in common by
          any of the Tenant, other tenants and occupiers of the site, the
          Landlord, and those properly authorised or permitted by them to do so,
          and "Common Parts" includes (but without limitation) the courtyards,
          external paviours, service areas, roadway, turning area, main entrance
          and other such amenities, but excludes any such parts as may
          be within the Premises;

          "CONDUCTING MEDIA" means any of the drains, sewers, conduits, flues,
          gutters, gullies, channels, ducts, shafts, watercourses, pipes,
          cables, wires and mains

          "INSURED RISKS" has the meaning given to it in Schedule 3

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          "INTEREST" means interest at the rate of 4 per cent over the base rate
          of Midland Bank Plc for the time being and from time to time (as well
          after as before judgment) or such other comparable rate as the
          Landlord may reasonably designate if the base rate cases to be
          published, compounded at quarterly rests on 31st March, 30th June,
          30th September and 31st December in each year

          "LANDLORD" includes all persons from time to time entitled to the
          immediate reversion to this Lease

          "LEASE" includes any documents supplemental to this Lease

          "MEASURING CODE" means the Code of Measuring Practice (Fourth Edition
          RICS/ISVA 1993)

          "OUTGOINGS" means in relation to the Premises all non-domestic rates,
          water rates, water charges and all existing and future rates, taxes,
          charges, assessments, impositions and outgoings whatsoever (whether
          parliamentary municipal parochial or otherwise) which are now or may
          at any time be payable, charged or assessed on property or the owner
          or occupier of property, but "taxes" in this context does not include
          Value Added Tax, nor any taxes imposed on the Landlord in respect of
          the yearly rent reserved by this Lease or in respect of a disposal of
          the interest in immediate reversion to this Lease

          "PREMISES" means the property described in Part 1, Schedule 1 and
          refers to each and every part of the Premises and includes:-

          (1)  the inside and outside of the windows and other lights and the
               frames, glass, equipment and fitments relating to windows and
               lights of the Premises but excluding the glass panels in the
               roof;

          (2)  the doors, door frames equipment, fitments and any glass relating
               to the doors of the Premises;

          (3)  the internal plaster or other surfaces of load bearing walls and
               columns within the Premises and of walls which form boundaries of
               the Premises;

          (4)  non-load bearing walls within the Premises;

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          (5)  the external sheeting to the load bearing walls and the flooring;

          (6)  the plaster or other surfaces of the ceilings and false ceilings
               within the premises and the voids between the ceilings and false
               ceilings;

          (7)  appurtenances, fixtures, fittings and rights granted by this
               Lease

          and improvements and additions made to, and fixtures fittings and
          appurtenances in, the Premises but excludes the structural parts
          loadbearing framework, roof, foundations, and external walls as
          opposed to sheeting, and the Conducting Media and machinery and plant
          within

          "TENANT" includes the Tenant's successors in title and assigns in whom
          this Lease may for the time being be vested;

          "TERM" means the term of years granted by this Lease;

          "UNSECURED UNDERLETTING" means an underletting of the whole or part of
          the Premises in relation to which the underlessor and the underlessee
          have agreed to exclude the provisions of Section 24 to 28 of the
          Landlord and Tenant Act 1954 and their agreement to do so has been
          duly authorized beforehand by the Court

     1.2  INTERPRETATION OF RESTRICTIONS AND LIABILITY

          1.2.1     Where the Tenant is placed under a restriction in this
                    Lease, the restriction includes the obligation on the Tenant
                    not to permit or allow the infringement of the restriction
                    by any person

          1.2.2     References to "liability" include, where the context allows,
                    claims, demands, proceedings, damages, losses, costs and
                    expenses

     1.3  CLAUSES AND CLAUSE HEADINGS

          1.3.1     The clause and paragraph headings in this Lease are for ease
                    of reference only and are not be taken into account in the
                    construction or interpretation of any covenant condition or
                    proviso to which they refer

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          1.3.2     Unless the context otherwise requires, references

                    1.3.2.1   to numbered clauses and Schedules are references
                              to the relevant clause in or Schedule to this
                              Lease; and

                    1.3.2.2   in any Schedule to a numbered paragraph are
                              references to the relevant paragraphs in that
                              Schedule

     1.4  SINGULAR AND PLURAL MEANINGS

     Words in this Lease importing the singular meaning, where the context so
     allows, include the plural meaning and vice versa

     1.5  STATUES AND STATUTORY INSTRUMENTS

     References in this Lease to any statutes or statutory instruments include
     and refer to any statute or statutory instrument amending consolidating or
     replacing them respectively from time to time in force, and references to a
     statute include statutory instruments and regulations made pursuant to them

     1.6  GENDER

     Words in this Lease importing any one gender include both other genders and
     may be used interchangeably, and words denoting natural persons where the
     context so allows include corporations and vice versa

     1.7  JOINT AND SEVERAL OBLIGATIONS

     At any time that the party of the second part to this Lease is two or more
     persons the expression "the Tenant" include the plural number and
     obligations in this Lease expressed or implied to be made with the Tenant
     or by the Tenant are to be treated as made with or by such individuals
     jointly and severally

2    THE LETTING TERMS

     In consideration of the rent reserved by and the covenants in this Lease:-

     2.1  the Landlord LETS with Full Title Guarantee to the Tenant:

          2.1.1     ALL the Premises;

          2.1.2     TOGETHER with the rights set out in Schedule 1 Part 2; and

          2.1.3     EXCEPT AND RESERVED to the Landlord the rights set out in
                    Schedule Part 3;

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     2.2  for the TERM of Six years commencing on 25th March 1999, determinable
          as provided by this Lease subject to the Encumbrances; and

     2.3  the Tenant PAYING during the Term:

          2.3.1     the yearly rent of FIFTEEN THOUSAND POUNDS inclusive of
                    V.A.T. (subject to clause 2.3.4 hereof and subject to
                    revision under Schedule 2) by equal quarterly payments in
                    advance on the usual quarter days in every year the first
                    (or a proportionate part) of such payments in respect of the
                    period commencing on the _______________ and ending on the
                    quarter day to be made on the grant of this Lease;

          2.3.2     as additional rent the monies payable by the Tenant under
                    Schedule 3 commencing on 25th March 1999; and

          2.3.3     as additional rent any Value Added Tax chargeable on the
                    rent and additional rent reserved in Clauses 2.3.1 and 2.3.2

          2.3.4     the electricity supply for the premises shall be sub-metered
                    and charged accordingly by the Landlord either monthly or
                    quarterly to suit.

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3    TENANT'S COVENANTS

     The Tenant covenants with the Landlord during the Term and any extension by
     statute of the tenancy created by this Lease as follows:-

     3.1  RENT

          3.1.1     To pay the yearly rent reserved by this Lease, free from any
                    deductions and rights of set-off, at the times and in the
                    manner required in clause 2.3.1 and by means of a Standing
                    Order to the Tenant's bankers

          3.1.2     To pay the additional rents reserved by this Lease at the
                    times and in the manner specified in relation to each of
                    them

     3.2. INTEREST

          3.2.1     To pay Interest on so much of the rents, reviewed rents, and
                    other monies payable under this Lease as remain unpaid
                    fourteen days after they have become due from the date that
                    they became due until the payment is made to the Landlord

          3.2.2     To pay Interest under Clause 3.2.1 for any period during
                    which the Landlord properly refuses to accept the tender of
                    payment because of an unremedied breach of covenant of the
                    Tenant

     3.3  OUTGOINGS AND CONTRIBUTIONS

          3.3.1.    To pay Outgoings;

          3.3.2     To refund to the Landlord on demand (where Outgoings relate
                    to the whole or part of the Building or other property
                    including the Premises) a fair and proper proportion
                    attributable to the Premises, such proportion to be
                    conclusively determined by the Landlord or the Landlord's
                    Surveyor

          3.3.3     To reimburse the Landlord for loss of relief from
                    non-domestic rate of unoccupied property which would have
                    been available to the Landlord in respect of vacancy of the
                    Premises after the termination of this Lease but for the
                    allowance of relief to the Tenant or any other person
                    formerly in occupation of the Premises for vacancy
                    commencing before the termination of this Lease

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          3.3.4     To pay electricity consumed on the premises which shall be
                    sub-metered and charged accordingly by the Landlord every
                    quarter period.

          3.3.5     To pay to the Landlord on demand a fair and proper
                    proportion of the expense of repairing and maintaining any
                    party walls

     3.4. REPAIR

     Well and substantially to repair maintain and clean the Premises and to
     keep the Premises in good and substantial repair maintained and in clean
     condition (except in respect of damage by Insured Risks as allowed in
     Schedule 3) PROVIDED THAT the Tenants shall not

     3.5  DECORATIONS

          3.5.1     To decorate the inside of the Premises in the last three
                    months of the Term (howsoever determined) with two coats of
                    good quality paint or good quality polish, and with paper
                    for those parts normally papered, or other suitable and
                    appropriate materials of good quality, in a workmanlike
                    manner (such decorations in the last three months of the
                    Term to be executed in such colours patterns and materials
                    as the Landlord may reasonably require)

          3.5.2     Not without the consent of the Landlord to alter cover up or
                    change any part of the architectural decorations or the
                    external colour of the Premises

     3.6  LANDLORD'S RIGHT OF INSPECTION AND RIGHT OF REPAIR

          3.6.1     To permit the Landlord and its employees or agents at all
                    reasonable times to enter into inspect and view the Premises
                    and examine their condition and also to take a schedule of
                    fixtures in the Premises

          3.6.2     If any breach of covenant, defects, disrepair, removal of
                    fixtures or unauthorized alterations or additions are found
                    on inspection for which the Tenant is liable, then, on
                    notice from

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                    the Landlord, to execute to the reasonable satisfaction of
                    the Landlord or its Surveyor all repairs works replacements
                    or removals required within two months (or sooner if
                    necessary) after the receipt of such notice

          3.6.3     If the Tenant fails to comply with a notice under clause
                    3.6.2, the Landlord may itself or by its workpeople or
                    agents enter the Premises and execute the repairs works
                    replacement or removals

          3.6.4     To pay to the Landlord on demand all expenses so incurred
                    under clause 3.6.3 (such expenses and any Interest on them
                    to be recoverable as if they were rent in arrear)

     3.7  YIELD UP IN REPAIR AT THE END OF THE TERM

     At the termination of this Lease or at such later time as Landlord recovers
     possession of the Premises from the Tenant:

          3.7.1     quietly to yield up the Premises (with all additions and
                    improvements to the Premises and all fixtures in the
                    Premises, other than tenant's fixtures which the Tenant may
                    be entitled to remove) repaired, maintained, cleaned,
                    decorated and kept in accordance with the Tenant's Covenants
                    in this Lease (except in respect of damage by Insured Risks
                    as allowed in Schedule 3);

          3.7.2     if so requested by the Landlord, to remove from the Premises
                    all the Tenant's belongings - that is to say trade fixtures
                    and fittings and all notices, notice boards and signs
                    bearing the name of or otherwise relating to the Tenant
                    (including in this context any persons deriving title to the
                    Premises under the Tenant) or its business; and

          3.7.3     to make good to the satisfaction of the Landlord all damage
                    to the Premises and the Building resulting from the removal
                    of the Tenant's belongings from the Premises

     3.8  LANDLORDS RIGHT OF RE-ENTRY FOR REPAIRS ETC.

          3.8.1     To permit the Landlord or other owners, tenants or occupiers

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                    of the Building or any adjoining or neighbouring property
                    and their respective agents, workmen and employees to enter
                    the Premises at reasonable times, after giving to the Tenant
                    written notice (except in emergency):

                    3.8.1.1   to alter, maintain or repair the Building or the
                              adjoining premises or property of the Landlord or
                              person so entering; or

                    3.8.1.2   to construct, alter, maintain, repair or fix
                              anything or additional thing serving such property
                              and running through or on the Premises; or

                    3.8.1.3   to comply with an obligation to any third party
                              having legal rights over the Building the
                              Premises; or

                    3.8.1.4   in exercise of a right or to comply with an
                              obligation of repair maintenance or renewal under
                              this Lease; or

                    3.8.1.5   in connection with the development of the
                              remainder of the Building or any adjoining or
                              neighbouring land or premises including the right
                              to build on or into or in prolongation of any
                              boundary wall of the Premises -

                    without payment of compensation for any nuisance annoyance
                    inconvenience or damage caused to the Tenant, subject to the
                    Landlord (or other person so entering) exercising the right
                    in a reasonable manner and making good any damage caused to
                    the Premises without unreasonable delay

          3.8.2     On becoming aware of any defects in the Building, which are
                    "relevant defects" for the purposes of Section 4 of the
                    Defective Premises Act 1972, to give notice of them to the
                    Landlord

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     3.9  ALTERATIONS

          3.9.1     Not to make any alterations or additions to or affecting the
                    structure or exterior of the Premises, or the appearance of
                    the Premises as seen from the exterior

          3.9.2     Not without the consent of the Landlord such consent not to
                    be unreasonably withheld or delayed to make any other
                    alterations or additions to the Premises (but the erection,
                    alteration or removal by the Tenant of internal demountable
                    partitioning, and consequential adjustments of ducting,
                    ceiling tiles, light fittings and wiring is authorized
                    without such consent if the plans of the partitions (or
                    details of the alteration or removal of partitioning) are
                    immediately deposited with the Landlord)

          3.9.3     On the termination of this Lease, to the extent required by
                    the Landlord, to reinstate the Premises to the condition in
                    which they were in at the grant of this Lease, such
                    reinstatement to be carried out under the supervision and to
                    the reasonable satisfaction of the Landlord or the
                    Landlord's Surveyor

          3.9.4     To procure that any alterations or additions to the Premises
                    permitted by the Landlord under Clause 3.9.2 be carried out
                    only by a contractor approved by the Landlord (such approval
                    not to be unreasonably withheld)

     3.10 ALIENATION

          3.10.1    Not to assign or charge or underlet part only of the
                    Premises.

          3.10.2    Not to assign or charge the whole of this Lease without the
                    consent of the Landlord but, subject to the operation of the
                    following provisions of this clause 3.10.2, such consent is
                    not to be unreasonably withheld;

                    3.10.2.1  The Landlord may withhold its consent to the
                              application by the Tenant for licence to assign
                              this Lease:

                              3.10.2.1.1  if at the time of the assignment,
                                          there are arrears of rents or other
                                          monies due to the Landlord or the
                                          Tenant has not

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                                          substantially observed and performed
                                          the covenants on the part of the
                                          Tenant herein contained; or

                              3.10.2.1.2  unless the Tenant gives to the
                                          Landlord a guarantee in the form in
                                          Schedule 4; or

                              3.10.2.1.3  if the Tenant fails to demonstrate to
                                          the satisfaction of the Landlord
                                          (acting reasonably) that the proposed
                                          assignee is responsible and
                                          respectable and will be able to pay
                                          the rent and meet the other outgoings
                                          and liabilities arising under the
                                          Lease; or

                              3.10.2.1.4  unless any proposed assignee covenants
                                          by deed with the Landlord to pay the
                                          rents reserved by this Lease and to
                                          observe and perform all the covenants
                                          on the part of the Lessee and
                                          conditions in this Lease during the
                                          Term until released by virtue of the
                                          Landlord and Tenant (Covenants) Act
                                          1995; or

                              3.10.2.1.5  unless (where it is reasonable so to
                                          require) the proposed assignee is able
                                          to procure (in addition to the
                                          guarantee provided by the Tenant and
                                          the Surety under the provisions of
                                          clause 3.10.2.1.2) a guarantee of the
                                          covenants of the assignee from a
                                          guarantor who is reasonably acceptable
                                          to the Landlord in the form in
                                          Schedule 4; or

                              3.10.2.1.6  if it is otherwise reasonable to do so

                    3.10.2.2  The conditions and criteria in clause 3.10.2.1 are
                              specified for the purposes of Section 19 (1A) of
                              the Landlord and Tenant Act 1927

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          3.10.3    Not to underlet the whole of the Premises without the
                    consent of the Landlord (such consent not to be unreasonably
                    withheld or delayed)

          3.10.4    On the grant of an underlease, to obtain covenants by deed
                    from the underlesseee direct with the Landlord in such form
                    as the Landlord may require that the underlessee will:

                    3.10.4.1  not assign, sub-underlet or charge part only of
                              the premises underlet;

                    3.10.4.2  not part with or share possession or occupation of
                              the whole or any part of the premises underlet nor
                              grant to third parties rights over them otherwise
                              than by a permitted assignment or
                              sub-underletting;

                    3.10.4.3  not assign, charge or sub-underlet the whole of
                              the premises without obtaining the previous
                              consent of the Landlord under this Lease;

                    3.10.4.4  provide for the inclusion in any sub-underleases
                              granted out of the underlease (whether immediate
                              or mediate) of covenants to the same effect as
                              those contained in these clauses 3.10.4 and clause
                              3.10.5

          3.10.5    On the grant of any underlease:-

                    3.10.5.1  to include provisions for the revision of the rent
                              reserved by the underlease in an upward only
                              direction to correspond in time and effect with
                              the provisions for the revision of rent in this
                              Lease;

                    3.10.5.2  not to reserve or take a premium or fine;

                    3.10.5.3  to reserve a rent which is the greater of the
                              market rent as at the time of the grant of the
                              underlease (assessed in accordance with the

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                              principles in Schedule 2) or the proportionate
                              part of the market rent of the Premises where only
                              part of the Premises is underlet (such part of the
                              market rent to be approved by the Landlord); and

                    3.10.5.4  to include such covenants of the underlessee as
                              are not inconsistent with or impair the due
                              performance and observance of the covenants of the
                              Tenant in this Lease

          3.10.6    Not to underlet the whole or any part of the Premises
                    otherwise than by way of Unsecured Underletting

          3.10.7    Not otherwise than by assignment or underletting permitted
                    under this clause 3.10 to:

                    3.10.7.1  part with or share possession or occupation of the
                              whole or any part of the Premises; or

                    3.10.7.2  grant to third parties any rights over the
                              Premises

          3.10.8    The preceding provisions of this clause 3.10 do not apply to
                    any parting with possession or occupation or the sharing of
                    occupation or sub-division of the Premises to or with any
                    member of a group of companies of which the Tenant is itself
                    a member if:

                    3.10.8.1  the interest in the Premises so created is and
                              remains no more than a tenancy-at-will; and

                    3.10.8.2  the possession, occupation or subdivision are
                              immediately determined if the Tenant and the
                              relevant member cease for any reason whatsoever to
                              be members of the same group of companies;

                    and for this purpose two companies are members of a group
                    if, and only if, one is a subsidiary of the other or both
                    are subsidiaries of a third company, "subsidiary" having the

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                    meaning given to it by Section 736 of the Companies Act 1985

     3.11 REGISTRATION OF DISPOSITIONS OF THIS LEASE

          To produce to and leave with the Solicitors of the Landlord the
          document effecting the disposition (and in each case a certified copy
          for retention by the Landlord) within one month after any disposition
          of this Lease or the Premises (a "disposition" being an assignment,
          charge, transfer, underlease, assignment or surrender of any
          underlease, or on any transmission by death or otherwise documentary
          evidence of devolution affecting the Premises), and on each occasion
          to pay to the Solicitors such fee as they may reasonably require for
          the registration

     3.12 ENFORCEMENT OF UNDERLEASES

          3.1.2.1   Not without the consent of the Landlord to vary the terms,
                    or waive the benefit, of any covenant of the underlessee or
                    condition in an underlease of the Premises

          3.12.2    Diligently to enforce the covenants of the underlessee and
                    the conditions in an underlease of the Premises

          3.12.3    Not without the consent of the Landlord accept any sum or
                    payment in kind by way of commutation of the rent payable by
                    an underlessee of the Premises

     3.13 USER

          3.13.1    Not without the consent of the Landlord to use the Premises
                    other than as B1, B2 or B8 use

          3.13.2    Nothing in this Lease implies or is to be treated as a
                    warranty to the effect that the use of the Premises for
                    those purposes is in compliance with all town planning laws
                    and regulations now or from time to time in force

     3.14 RESTRICTIONS AFFECTING USE OF THE PREMISES

          3.14.1    Not to erect nor install in the Premises any engine,
                    furnace, plant or machinery which causes noise fumes or
                    vibration which can be heard smelled or felt outside the
                    Premises

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          3.14.2    Not to store in the Premises any petrol or other specially
                    inflammable explosive or combustible substance

          3.14.3    Not to use the Premises for any noxious, noisy or offensive
                    trade or business or for any illegal or immoral act or
                    purpose

          3.14.4    Not to hold any sales by auction on the Premises

          3.14.5    Not to hold in or on the Premises any exhibition public
                    meeting or public entertainment

          3.14.6    Not to permit any vocal or instrumental music in the
                    Premises so that it can be heard outside the Premises

          3.14.7    Not to permit livestock of any kind to be kept on the
                    Premises

          3.14.8    Not to do in the Premises which may be or grow to be a
                    nuisance, annoyance, disturbance, inconvenience or damage to
                    the Landlord or its other tenants of the Building or to the
                    owners tenants and occupiers of adjoining and neighbouring
                    properties

          3.14.9    Not to load or use the floors, walls, ceilings, or structure
                    of the Premises so as to cause strain damage or interference
                    with the structural parts, loadbearing framework, roof,
                    foundations, joists and external walls of the Premises

          3.14.10   Not to do or omit to do anything which may interfere with or
                    which imposes an additional loading on any ventilation,
                    heating, air conditioning or other plant or machinery
                    serving the Premises

          3.14.11   Not to use the Premises as a betting shop or betting office

          3.14.12   Not to use the Premises for the sale of alcoholic liquor for
                    consumption either on or off the Premises

          3.14.13   Not to allow any person to sleep in the Premises nor to use
                    the Premises for residential purposes

          3.14.14   Not at any time to place in the Common Parts any goods,
                    mats, trade empties, rubbish or other obstruction

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          3.14.15   Not to accumulate trade empties upon the Premises

          3.14.16   Not to place leave or install any articles merchandise goods
                    or other things in front of or elsewhere outside the
                    Premises

          3.14.17   Not to permit the drains to be obstructed by oil grease or
                    other deleterious matter, but to keep thoroughly cleaned the
                    Premises and the drains serving the Premises as often as may
                    be necessary

          3.14.18   Not to use any portion of the access roads or service area
                    for the parking of vehicles otherwise than during the course
                    of loading and unloading nor to carry out any repairs or
                    maintenance to vehicles on the access roads or service area

          3.14.19   To observe and perform or cause to be observed and performed
                    the reasonable rules and regulations from time to time made
                    by the Landlord in connection with the orderly and proper
                    use of the Common Parts and the security of the Building and
                    the whole of the site in the Landlord's ownership at Cotton
                    Lane Derby

     3.15 ADVERTISEMENTS AND SIGNS

          3.15.1    Not to place of display on the exterior of the Premises or
                    on the windows or inside the Premises so as to be visible
                    from the exterior of the Premises any name, writing, notice,
                    sign, illuminated sign, display of lights, placard, poster,
                    sticker or advertisement other than:

                    3.15.1.1  a suitable sign of a size and kind first approved
                              by the Landlord or the Landlord's Surveyor showing
                              the Tenant's name and trade;

                    3.15.1.2  such other notices as the Landlord may in its
                              discretion approve; and

                    3.15.1.3  normal window displays sale notices and price
                              tickets attached and relating to the goods in the
                              Premises (but not affixed to the window glass);

                    3.15.1.4  the name of the Tenant signwritten on the

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                              entrance doors of the Premises in a style and
                              manner approved by the Landlord or the Landlord's
                              Surveyor; and

                    3.15.1.5  the name of the Tenant and any permitted
                              sub-tenants displayed in the indicator board in
                              the entrance lobby in the Building

          3.15.2    If any name, writing, notice, sign, placard, poster, sticker
                    or advertisement is placed or displayed in breach of these
                    provisions, to permit the Landlord to enter the Premises and
                    remove such name, writing, notice, sign, placard, poster,
                    sticker or advertisement, and to pay to the Landlord on
                    demand the expenses of so doing

     3.16 COMPLIANCE WITH STATUTES ETC.

          3.16.1    Except where such liability may be expressly within the
                    Landlord's covenants in this Lease to comply in all respects
                    with the provisions of all statutes for the time being in
                    force and requirements of any competent authority relating
                    to the Premises or anything done in or upon them by the
                    Tenant, and to keep the Landlord indemnified against
                    liability in consequence of the Tenant's failure to comply
                    with them

          3.16.2    In particular but without affecting the general operation of
                    clause 3.16.1

                    3.16.2.1  to execute all works and do all things on or in
                              respect of the Premises which are required under
                              the Offices Shops and Railway Premises Act 1963;

                    3.16.2.2  to comply with all requirements under any present
                              or future statute, order, by-law or regulation as
                              to the use or occupation of or otherwise
                              concerning the Premises;

                    3.16.2.3  to execute with all due diligence (commencing work
                              within two months or sooner if necessary

                                       17
<PAGE>

                              and then proceeding continuously) all works to the
                              Premises for which the Tenant is liable in
                              accordance with this clause 3.16 and of which the
                              Landlord has given notice to the Tenant;

                    and, if the Tenant shall not comply with clause 3.16.2.3, to
                    permit the Landlord to enter the Premises to carry out such
                    works, and to indemnify the Landlord on demand for the
                    expenses of so doing (including surveyors' and other
                    professional advisers' fees), such expenses and any Interest
                    on them to be recoverable as if they were rent in arrear

     3.17 PLANNING PERMISSIONS

          3.17.1    Not without the consent of the Landlord to make any
                    application under the Town and Country Planning Acts, as
                    defined in the Town and Country Planning Act 1990, to any
                    local planning authority for permission to develop,
                    including change of use of, the Premises

          3.17.2    To indemnify the Landlord against any development charges,
                    other charges and expenses payable in respect of such
                    applications and to reimburse to the Landlord the costs it
                    may properly incur in connection with such consent

          3.17.3    To keep the Landlord indemnified against any expense
                    incurred in consequence of the use of the Premises reverting
                    to that existing before the application was made

          3.17.4    Forthwith to give to the Landlord full particulars in
                    writing of the grant of planning permission

          3.17.5    Not to implement any planning permission if the Landlord
                    makes reasonable objection to any of the conditions subject
                    to which it has been granted

     3.18 COMPLIANCE WITH TOWN PLANNING AND ENVIRONMENTAL REQUIREMENTS

          3.18.1    To perform and observe the requirements of statutes and
                    regulations relating to town and country planning and
                    environmental protection applying to the Premises, and to

                                       18
<PAGE>

                    obtain any development or other consent permit or licence by
                    reason of the development or manner of use of or on the
                    Premises by the Tenant

          3.18.2    To keep the Landlord indemnified against liability by reason
                    of the Tenant's failure to obtain any requisite development
                    or other consent permit or licence or in complying with the
                    requirements of statutes and regulations

          3.18.3    To give full particulars to the Landlord of any notice, or
                    proposal for a notice, or order or proposal for an order,
                    made given or issued to the Tenant under any statute or
                    regulation relating to town and country planning,
                    environmental protection or otherwise within seven days
                    after the receipt of any such by the Tenant

          3.18.4    Forthwith to take all reasonable and necessary steps to
                    comply with any such notice or order

          3.18.5    At the request and cost of the Landlord, to make or join
                    with the Landlord in making such objections or
                    representations against or in respect of any proposal for
                    such notice or order as the Landlord may consider expedient

     3.19 CLAIMS BY THIRD PARTIES

          3.19.1    To keep the Landlord indemnified against liability in
                    respect of any accident, loss or damage to person or
                    property in the Premises

          3.19.2    To keep the Landlord indemnified against liability of the
                    Landlord to third parties by reason of breach by the Tenant
                    of its obligations in this Lease

     3.20 EXPENSES OF LANDLORD

     To pay to the Landlord on demand all expenses (including solicitors' costs,
     bailiffs' fees and surveyors' and architects' fees) incurred by the
     Landlord:-

          3.20.1    incidental to or in proper contemplation of the preparation
                    and service of a schedule of dilapidations during or after
                    the

                                       19
<PAGE>

                    termination of this Lease and/or a notice under Section 146
                    and 147 of the Law of Property Act 1925, even if forfeiture
                    is avoided otherwise than by relief granted by the Court;

          3.20.2    in connection with or procuring the remedying of any breach
                    of covenant on the part of the Tenant contained in this
                    Lease including (without limitation) the recovery or
                    attempted recovery of arrears of rent or additional rent due
                    from the Tenant; and

          3.20.3    in connection with every application for any consent or
                    approval made under this Lease whether or not consent or
                    approval is given

     3.21 OBSTRUCTION OF WINDOWS OR LIGHTS AND EASEMENTS

          3.21.1    Not to stop up or obstruct any windows of the Premises or
                    any other buildings belonging to the Landlord

          3.21.2    Not to permit any easement or similar right to be made or
                    acquired into against or on the Premises

          3.21.3    Where any such easement or right is or is attempted to be
                    acquired, immediately to give notice of the circumstances to
                    the Landlord, and at the request and cost of the Landlord to
                    adopt such course as it may reasonably require for
                    preventing the acquisition of the easement or right to such
                    easement

     3.22 CLEANING AND INSURANCE OF WINDOWS

          3.22.1    To keep clean the glass in the windows of the Premises

          3.22.2    To keep insured the glass in the windows of the Premises in
                    the joint names of the Landlord and the Tenant in a sum
                    equal to the full replacement cost against damage with an
                    insurer of repute approved by the Landlord; and

          3.22.3    To lay out the monies received in respect of such insurance
                    in replacement with glass of at least the same quality and
                    thickness as before, and to make good any deficiency out of
                    the Tenant's own resources

                                       20
<PAGE>

     3.23 VALUE ADDED TAX

          3.23.1    To pay value added tax on taxable supplies of goods and
                    services made by the Landlord in connection with this Lease,
                    the consideration for which is to be treated as exclusive of
                    value added tax chargeable on the payment

          3.23.2    Where the Landlord is entitled under this Lease to recover
                    from the Tenant the costs of goods and services supplied to
                    the Landlord, but in respect of which the Landlord makes no
                    taxable supply to the Tenant, to indemnify the Landlord
                    against so much of the input tax on the cost for which the
                    Landlord is not entitled to credit allowance under Section
                    26 of the Value Added Tax Act 1994

     3.24 NOTICE "TO-LET" AND "FOR SALE"

          3.24.1    To allow the Landlord or its agents to enter on the Premises
                    at any time:

                    3.24.1.1  within six months next before the termination of
                              this Lease to fix on the Premises a notice board
                              for reletting the Premises; and

                    3.24.1.2  to fix on some part of the Premises a notice board
                              for the sale of the interest of the Landlord

          3.24.2    Not to remove or obscure any such notice board

          3.24.3    To permit all persons authorised by the Landlord or its
                    agents to view the Premises at reasonable hours without
                    interruption in connection with any such letting or sale

4    PROVISOS

     THE PARTIES AGREE to the following provisos:-

     4.1  PROVISO FOR RE-ENTRY

          4.1.1     The Landlord may terminate this Lease by re-entering the
                    Premises (or a part of them) itself or by an authorised
                    agent if:

                    4.1.1.1   any rent remains unpaid twenty one days after
                              becoming due for payment (whether or not formally
                              demanded); or

                                       21
<PAGE>

                    4.1.1.2   the Tenant fails to perform or observe any of its
                              covenants or the conditions in this Lease or
                              allows any distress or execution to be levied its
                              goods, or

                    4.1.1.3   an event of insolvency occurs in relation to the
                              Tenant or one of the Tenants or any guarantor of
                              the Tenant or one of the Tenants

          4.1.2     Re-entry in exercise of the rights in clause 4.1.1 does not
                    affect any other right or remedy of the Landlord for breach
                    of covenant or condition by the Tenant occurring before the
                    termination of this Lease

          4.1.3     The expression "an event of insolvency" in clause 4.1.1.
                    includes:

                    4.1.3.1   (in relation to a company or other corporation
                              which is the Tenant or one of the Tenants or a
                              guarantor) inability of the company to pay its
                              debts, entry into liquidation either compulsory or
                              voluntary (except for the purpose of amalgamation
                              or reconstruction), the passing of a resolution
                              for a creditors winding up, the making of a
                              proposal to the company and its creditors for a
                              composition in satisfaction of its debts or a
                              scheme of arrangement of its affairs, the
                              application to the court for an administration
                              order, and the appointment of a receiver or
                              administrative receiver; and

                    4.1.3.2   (in relation to an individual who is the Tenant
                              or a guarantor) inability to pay or having no
                              reasonable prospect of being able to pay his
                              debts, the presentation of a bankruptcy petition,
                              the making of a proposal to his creditors for a
                              composition in satisfaction of his debts or a

                                       22
<PAGE>

                              scheme of an arrangement of his affairs, the
                              application to the court for an interim order, and
                              the appointment of a receiver or interim receiver;
                              and in relation to the various events of
                              insolvency they are, wherever appropriate, to be
                              interpreted in accordance and conjunction with the
                              relevant provisions of the Insolvency Act 1986

     4.2  POWER FOR THE LANDLORD TO DEAL WITH ADJOINING PROPERTY

          4.2.1     The Landlord may deal as it thinks fit with other property
                    adjoining or nearby belonging to the Landlord, and may erect
                    or permit to be erected on such property any buildings
                    irrespective of whether they affect or diminish the light or
                    air which may now or at any time be enjoyed by the Tenant in
                    respect of the Premises

          4.2.2     The Landlord may at all times, without obtaining any consent
                    from or making any arrangement with the Tenant, alter
                    reconstruct or modify in any way whatsoever or change the
                    use of the Common Parts so long as proper means of access to
                    and egress from the Premises are afforded and essential
                    services are maintained at all times

     4.3. ARBITRATION OF DISPUTES BETWEEN TENANTS

     If any dispute or disagreement at any time arises between the Tenant and
     the tenants and occupiers of the Building or any adjoining or neighbouring
     property belonging to the Landlord relating to the Conducting Media serving
     or easements or rights affecting the Premises the Building or any adjoining
     or neighbouring property, the dispute or disagreement is to be determined
     by the Landlord by which determination the Tenant is to be bound

     4.4  EXEMPTION FROM LIABILITY IN RESPECT OF SERVICES

          4.4.1     The Landlord is not to be liable to the Tenant for any loss
                    damage or inconvenience which may be caused by reason of:-

                    4.4.1.1   temporary interruption of services during periods
                              of inspection maintenance repair and renewal;

                                       23
<PAGE>

                    4.4.1.2   breakdown of or defect in any plant and machinery
                              services or Conducting Media in the Premises the
                              Building or neighbouring or adjoining property; or

                    4.4.1.3   events beyond the reasonable control of the
                              Landlord

          4.4.2     The Landlord's duty of care to the Tenant's employees agents
                    workpeople and visitors in or about the Building does not go
                    beyond the obligations involved in the common duty of care
                    (within the meaning of the Occupiers Liability Act 1957) or
                    the duties imposed by the Defective Premises Act 1972

     4.5  ACCIDENTS

     The Landlord is not to be responsible to the Tenant or the Tenant's
     licensees nor to any other person for any:-

          4.5.1     accident happening or injury suffered in the Premises; or

          4.5.2     damage to or loss of any goods or property sustained in the
                    Building (whether or not due to any failure of any security
                    system for which the Landlord is in any way responsible); or

          4.5.3     act omission or negligence of any employee of the Landlord
                    in the Building

     4.6  COMPENSATION FOR DISTURBANCE

     The Tenant is not entitled on quitting the Premises to claim from the
     Landlord any compensation unless and to the extent that any statutory right
     to compensation precludes the operation of this clause

     4.7  REMOVAL OF PROPERTY AFTER DETERMINATION OF TERM

          4.7.1     If after the Tenant has vacated the Premises following the
                    termination of this Lease any property of the Tenant remains
                    in the Premises, and the Tenant fails to remove it within
                    fourteen days after being requested in writing by the
                    Landlord

                                       24
<PAGE>

                    to do so, the Landlord may as the agent of the Tenant sell
                    such property and hold the proceeds of sale, after deducting
                    the costs and expenses of removal storage and sale
                    reasonably and properly incurred by it, to the order of the
                    Tenant

          4.7.2     The Tenant will indemnify the Landlord against any liability
                    incurred by it to any third party whose property has been
                    sold by the Landlord in the bona fide mistaken belief (which
                    is to be presumed unless the contrary be proved) that it
                    belonged to the Tenant and was liable to be dealt with as
                    such under this clause 4.7

     4.8  NOTICES, CONSENT AND APPROVALS

          4.8.1     Any notice served under or in connection with this Lease is
                    to be in writing and be treated as properly served if
                    compliance is made with either the provisions of Section 196
                    of the Law of Property Act 1925 (as amended by the Recorded
                    Delivery Service Act 1962) or Section 23 of the Landlord and
                    Tenant Act 1927

          4.8.2     Any consent or approval under this Lease is required to be
                    obtained before the act or event to which it applies is
                    carried out or done and is to be effective only if the
                    consent or approval is given in writing

     4.9  Indemnify the Tenant in respect of any contamination or other
          environmental issues arising which are not applicable to or relevant
          to the Tenant's authorised use of the premises to remove any such
          materials from the site at the Landlord's own expense provided that
          the Tenant shall immediately inform the Landlord of the discovery of
          any such matter

                                       25
<PAGE>

5    LANDLORDS COVENANTS

     THE LANDLORD COVENANTS with the Tenant as follows:-

     5.1  QUIET ENJOYMENT

          The Tenant, paying the rents reserved and performing the Tenant's
          covenants in this Lease, may lawfully and peaceably enjoy the Premises
          throughout the Term without interruption by the Landlord or by any
          person lawfully claiming through under or in trust for the Landlord

     5.2  To keep in good repair and maintain rebuild and renew the Conducting
          Media the Building the Common Parts and those parts of the Premises
          for which the Tenant is not responsible for

     5.3  To complete the works set out in the attached schedule of works,
          signed by the parties by no later than the ________ day of
          _________________ 1998 and in any event as soon as practicable to the
          reasonable satisfaction of the Tenant and in a good and workmanlike
          manner. The Tenant shall be deemed to have accepted that the works set
          out in the attached schedule have been satisfactorily completed if the
          Tenant shall take up occupation of the whole or any part thereof. In
          the event of there being any dispute between the parties as to whether
          the works shall have been completed to the satisfaction of the Tenant
          (and the Tenant shall not have taken up occupation of the whole or any
          part of the premises comprised in the works), the matter shall be
          referred to determination in accordance with clause 8 hereof

6    OBLIGATIONS IN SCHEDULES TO THIS LEASE

     The Landlord and the Tenant mutually covenant to observe and perform their
     respective obligations and the conditions in the Schedules

7    EXPERT DETERMINATION

     7.1  In this Lease, where any issue is required to be dealt with by, or
          submitted for the determination of, an independent expert, the
          following provisions of this clause are to apply but, in case of
          conflict with other provisions specifically relating to expert
          determination

                                       26
<PAGE>

          elsewhere in this Lease, those other provisions are to prevail to the
          extent of the conflict

     7.2  The expert is to be appointed by the parties jointly, or if they
          cannot or do not agree on the appointment, appointed by whichever of
          the following is appropriate:

          7.2.1     the President for the time being of the Royal Institution of
                    Chartered Surveyors;

          7.2.2     the President for the time being of the Institute of
                    Chartered Accountants in England and Wales

          or in each such case the duly appointed deputy of the president or
          other person authorised by him to make appointments on his behalf;

     7.3  the person so appointed is to act as an expert, and not as an
          arbitrator;

     7.4  the expert so appointed must afford the parties opportunity within
          such a reasonable time limit as he may stipulate to make
          representations to him (accompanied by professional rental valuations,
          reports or other appropriate evidence in the relevant circumstances)
          and permit each party to make submissions on the representations of
          the other; and

     7.5  the fees and expenses of the expert, including the cost of his
          nomination, are to be borne as the expert may direct (but in the
          absence of such a direction - by the parties in equal shares), but
          (unless they otherwise agree) the parties will bear their own costs
          with respect to the determination of the issue by the expert

     7.6  If the expert refuses to act, becomes incapable of acting, or dies,
          the Landlord or the Tenant may require the appointment of another
          expert in this stead under paragraph 8.2

     7.7  The determination of the independent expert, except in case of
          manifest error, is to be binding on the Landlord and the Tenant

8    LEGAL FEES

     Each party will pay its own legal costs and stamp duty on the Lease

9    STAMP DUTY CERTIFICATE

     It is certified that there is no agreement to which this Lease gives effect

                                       27
<PAGE>

10   COVENANT STATUS OF THIS LEASE

     This Lease is a new tenancy within the meaning of Section 1 of the Landlord
     and Tenant (Covenants) Act 1995

     DELIVERED as a Deed on the date at the head of this Lease

11.  BREAK CLAUSE

     The Tenant may on giving not less than six months' notice in writing to the
     Landlord determine this Lease and the term hereby granted on the second
     anniversary of the term provided it has paid the rent due up to such second
     anniversary and without prejudice to the right of either party to take
     action against the other in respect of antecedent breaches of covenant or
     obligation

                                       28
<PAGE>

                                   SCHEDULE 1

                       PART 1 DESCRIPTION OF THE PREMISES

ALL THAT Warehouse and offices known as Unit 6 Eastside Park, East Service Road,
Raynesway, Derby including the right to use the car parking areas on the plan.

                        PART 2 RIGHTS ENJOYED WITH DEMISE

1.   The rights of ingress to and egress from the Premises in over and along all
     usual entrances staircases landings lifts and passageways leading thereto
     in part shown coloured brown on the plan annexed hereto in common with the
     Landlord and all other persons so authorised by the Landlord and all other
     persons entitled thereto

2.   The right of free passage and running of water soil gas electricity
     telephone and other services in and through the Conducting Media made or to
     be made upon or through or under any part of the Building or upon through
     or under any adjacent land or buildings of the Landlord all such rights to
     be so far as necessary for the enjoyment of the Premises and in common with
     the Landlord and all others so authorised by the Landlord and all other
     persons entitled thereto

3.   The right for the Tenant and all other persons authorised by the Tenant to
     enter upon the other parts of the Building and upon the said adjoining land
     and buildings of the Landlord (giving reasonable prior notice and in an
     emergency without notice) so far as may be reasonably necessary for the
     purpose of inspecting maintaining repairing and renewing and/or making
     connections with the Conducting Media

4.   The right for the Tenant and the Tenant's employees servants agents
     customers and clients and contractors in the event of emergency only to use
     the fire escapes and emergency exits (if any) serving the Premises and any
     adjoining or adjacent parts of the Building and pass through any such
     adjoining or adjacent parts of the Building for the purpose of egress from
     the Premises in the event of emergency

5.   The right of support and protection for the benefit of the Premises as is
     now enjoyed by the Premises from the adjoining parts of the Building

                                       29
<PAGE>

                       PART 3 EXCEPTIONS AND RESERVATIONS

1.   The free passage and running of water soil gas electricity telephone and
     other services from and to other parts of the Building and from and to any
     adjoining buildings or land of the Landlord in and through the Conducting
     Media now or at any time during the Term laid made or to be laid and made
     in upon through or under the Premises

2.   The right to construct and to maintain in over or under the Premises any
     easements or services for the benefit of any part of the Building or any
     adjoining property or buildings of the Landlord

3.   The right at any time during the term (but except in cases of emergency
     only at reasonable times during normal business hours after giving
     reasonable prior notice to the Tenant and by prior appointment except where
     the Tenant unreasonably refuses to make an appointment within a reasonable
     time of the request from the Landlord) to enter (or in the cases of
     emergency to break and enter) upon the Premises in order:

     (a)  To inspect cleanse repair mend remove or replace with others the
          Conducting Media referred to above

     (b)  To inspect and execute works in connection with any of the easements
          or services referred to in this Schedule

     (c)  To view the state and condition of and to repair and maintain the
          Building or any part of the Building and any adjoining buildings or
          land of the Landlord where such work would not otherwise be reasonably
          practicable

     (d)  To carry out work or do anything whatsoever comprised within the
          Landlord's obligations herein contained whether or not the Tenant is
          liable hereunder to make a contribution

     (e)  To exercise any of the rights possessed by the Landlord under the
          terms of this Lease

4.   The right to erect scaffolding for the purpose of repairing or cleaning the
     exterior of the Building or the adjoining land or buildings of the Landlord
     notwithstanding that such scaffolding may temporarily interfere with the
     access to or enjoyment and user of the Premises provided that such
     interference is for

                                       30
<PAGE>

     the minimum reasonable period and that access to the Premises is not
     significantly curtailed thereby

5.   The rights of light air support shelter and all other easements and rights
     now or hereafter belonging to or enjoyed by all adjacent or neighbouring
     land and those parts of the Building not hereby demised any interest
     wherein in possession or reversion is at any time during the term vested in
     the Landlord

6.   Full right and liberty at any time hereafter and from time to time to
     execute works and erections upon or to alter or rebuild any of the
     buildings erected on the Landlord's adjoining and neighbouring land or
     other parts of the Building and to use such adjoining and neighbouring
     lands and buildings and the other parts of the Building in such manner as
     it shall think fit notwithstanding that the access of light and air to the
     Premises may thereby be interfered with PROVIDED that in exercising the
     foregoing rights the Landlord shall cause as little interference as
     possible to the Premises and the business of the Tenant and shall forthwith
     make good any damage caused to the Premises by the exercise of the said
     rights

                                   SCHEDULE 2

                                  RENT REVIEWS

1    THE REVIEW DATES

The yearly rent payable under this Lease is to be reviewed on the expiry of the
third year of the Term (referred to in this Schedule as "the review dates" and
with effect on and from the review date the reviewed rent (as agreed or
determined in accordance with this Schedule) is to become payable as the yearly
rent reserved by this Lease

2    UPWARD ONLY RENT REVIEWS

The reviewed rent is to be the greater of:

     2.1  the yearly rent reserved under this Lease immediately preceding the
          review date; and

     2.2  the market rent of the Premises at the review date

3    THE MARKET RENT

For the purposes of this Lease, the expression "market rent" means the best

                                       31
<PAGE>

yearly rent at which the Premises might reasonably be expected to be let in the
open market by a willing landlord to a willing tenant:

     3.1  with vacant possession

     3.2  for a term of six years from the review date having a rent review, in
          the same terms as this Lease, at the expiry of each period of three
          years throughout the term;

     3.3  without the payment of a premium by a willing tenant;

     3.4  subject to the provisions of this Lease, other than the length of the
          term and the amount of rent, but including these provisions for rent
          review;

     3.5  the Premises have an area of approximately (4000) square feet

     3.6  the Premises have been fitted out ready for occupation and immediate
          use for the willing tenant's business so that the willing tenant would
          not require a rent or other allowance at the review date for that
          purpose (but this assumption does not affect the operation of
          paragraph 4.3);

     3.7  in case the Premises have been destroyed or damaged (or unfit for use
          and occupation by reason of damage to the Building) they have been
          fully reinstated (or rendered fit for use and occupation);

     3.8  the covenants of the Tenant have been fully observed and performed;

     3.9  there is not in operation any statute order or instrument regulation
          or direction which has the effect of regulating or restricting the
          amount of rent of the Premises which might otherwise be payable;

     3.10 the Premises may be lawfully used throughout the Term as workshop and
          office premises within B1 B2 and B8 of the Town and Country (Use
          Classes) Order 1987 (and any actual restriction or qualification which
          may be imposed on such use by the terms of the user covenant in clause
          3 or otherwise is to be disregarded) and that no capital is required
          to be expended

                                       32
<PAGE>

          upon the Premises to enable them to be so used; and

     3.11 the Tenant and anyone who may become the Tenant is a taxable person
          who makes only taxable supplies and no exempt supplies (words and
          expressions used in this paragraph 3.11 having the meanings assigned
          to them respectively in the Value Added Tax Act 1994 and the
          regulations made under that Act) and that demand for the Premises on
          the open market would not be reduced by reason of the Landlord having
          elected to waive exemption from value added tax in respect of them

4    MATTERS TO BE DISREGARDED

In agreeing or determining the market rent the effect upon it of the following
matters are to be disregarded:

     4.1  the occupation of the Premises by the Tenant

     4.2  any goodwill attached to the Premises by reason of the carrying on at
          the Premises of the business of the Tenant;

     4.3  any improvements to the Premises made by the Tenant with the consent
          of the Landlord other than those:

          4.3.1     made in pursuance of an obligation to the Landlord;

          4.3.2     completed by the Tenant more than twenty one years before
                    the review date; or

          4.3.3     for which the Landlord has made a financial contribution;
                    and

     4.4  any works carried out by the Tenant which has diminished the market
          rent

     and in this paragraph 4 reference to "the Tenant" include predecessors in
     title to the Tenant, and sub-tenants of the Tenant or of the predecessors
     in title of the Tenant

5    PROCEDURE FOR DETERMINATION OF MARKET RENT

     5.1  The Landlord and the Tenant are to endeavour to agree the market rent
          at any time not being earlier than twelve months before the review
          date, but if they have not agreed the market rent three months before
          the review date the amount of the

                                       33
<PAGE>

          Market rent is to be determined by reference to the determination of
          an independent expert

     5.2  The expert is to be nominated by the Landlord and the Tenant jointly,
          but, if they cannot or do not do so, then he is to be nominated by the
          President for the time being of the Royal Institution of Chartered
          Surveyors on the application either of the Landlord or of the Tenant

     5.3  The expert nominated must be a chartered surveyor having not less than
          ten years' experience of leasehold valuation of property being put to
          the same or similar use as the Premises and of the property in the
          same region in which the Premises are situated

6    TIME LIMITS

Time is not of the essense in agreeing or determining the reviewed rent or of
appointing an expert.

7    RENTAL ADJUSTMENTS

     7.1  If the market rent has not been agreed or determined in accordance
          with the provisions of this Schedule before the review date, then,
          until the market rent has been so agreed or determined, the Tenant
          will continue to pay on account rent at the rate of yearly rent
          payable immediately before the review date

     7.2  The Tenant will pay to the Landlord within seven days after the time
          that the market rent has been agreed or determined all arrears of the
          reviewed rent which have accrued in the meantime, with interest equal
          to the base rate of Midland Bank Plc on each of the instalments of the
          arrears from the time that it would have become due if the market rent
          had then been agreed or determined until payment becomes due from the
          Tenant to the Landlord under this paragraph 7.2

8    REVIEWED RENT RESERVED IN PHASES

The Landlord and the Tenant may, at any time before the market rent is

                                       34
<PAGE>

determined by an expert settle the reviewed rent in more than one amount and
agree to reserve the amounts increasing in phases until the next review date or,
if none, the expiry of the Term

9    MEMORANDUM OF RENT REVIEW

The parties will cause a memorandum of the reviewed rent duly signed by the
Landlord and the Tenant to be endorsed on or securely annexed to this Lease and
the counterpart of this Lease

                                       35
<PAGE>

                                   SCHEDULE 3

                              INSURANCE PROVISIONS

1    INSURED RISKS

     1.1  "Insured Risks" means the risks and other contingencies against which
          the Premises and the Building are required to be, or which may from
          time to time be, insured under this Lease, but subject to any
          exclusions limitations and conditions in the policy of insurance

     1.2  Insured Risks include, without limitation, fire, lightning, explosion,
          storm, tempest, flood, bursting and overflowing of water tanks
          apparatus or pipes, earthquake, aircraft (but not hostile aircraft)
          and other aerial devices dropped from aircraft, riot and civil
          commotion, malicious damage and such other risks as the Landlord may
          consider it prudent to insure

     1.3  If a risk or contingency itemized, or otherwise included, as an
          Insured Risk, can no longer be insured or can only be insured at an
          uneconomic rate, the risk or contingency shall cease to be treated as
          an Insured Risk from the time that cover is withdrawn and the Landlord
          has notified the Tenant of its withdrawal

2    TENANT'S LIABILITY FOR INSURANCE PREMIUMS

     2.1  The Tenant will pay to the Landlord on demand the due proportion of
          the insurance premiums incurred by the Landlord

     2.2  Insurance premiums are to include all monies expended, or required to
          be expended, by the Landlord in effecting and maintaining cover
          against:

          2.2.1     Insured Risks;

          2.2.2     three years' loss of rent insurance;

          2.2.3     such professional fees as may be incurred in connection with
                    rebuilding or reinstatement of the Building;

          2.2.4     the costs of demolition, shoring up, and site clearance
                    works;

                                       36
<PAGE>

          2.2.5     third party and public liability risks; and

          2.2.6     value added tax liability on such items

     2.3  The insurance cover may take into account cover for the effects of
          inflation and escalation of costs and fees, and the Landlord's
          estimate of the market rent of the Premises as defined in Schedule 2
          in the context of ensuing rent reviews and the termination of the
          Lease

     2.4  The due proportion of the insurance premiums for which the Tenant is
          liable is to be such proportion of the premiums incurred with respect
          to the Building as may fairly be attributed to the Premises by the
          Landlord or the Landlord's surveyor, and the apportionment may as
          appropriate take into account:

          2.4.1     the net internal area (as defined in the Measuring Code) of
                    the Premises relative to the aggregate net internal areas in
                    the Building during the Term;

          2.4.2     the different uses to which the various parts of the
                    Building are put and the degree of special risk associated
                    with those uses;

          2.4.3     the cost of complying with requirements of the insurer;

          2.4.4     an increase in the insurance premiums or expense of renewal
                    resulting from any act or omission of the Tenant or any
                    person occupying or enjoying the use of the Premises through
                    or under the Tenant;

          2.4.5     risks and contingencies that apply only to the Tenant; and

          2.4.6     such other matters as may properly affect the apportionment
                    of insurance premiums between the various tenants and
                    occupiers of the Building;

          and the apportionment may where appropriate attribute the whole of a
          premium, or an increase in premium to the Tenant, and the decision of
          the Landlord or the Landlord's surveyor acting fairly in making
          apportionments is (except in the case of

                                       37
<PAGE>

          manifest error) to be conclusive

          In this Schedule "due proportion" is to be interpreted accordingly

3    TENANT'S OBLIGATIONS IN RELATION TO INSURANCE COVER

     3.1  The Tenant will not do anything which may render void or voidable the
          insurance of the Landlord on the whole or a part of the Building or
          which may cause insurance premiums to be increased

     3.2  The Tenant will provide efficient fire extinguishers of a type
          approved by the Landlord, and will adopt such other precautions
          against Insured Risks as the Landlord or its insurers may consider
          appropriate

     3.3  If the insurance of the Landlord is vitiated in whole or in part in
          consequence of an act or omission of the Tenant, persons occupying or
          enjoying the use of the Premises through or under the Tenant, or their
          respective employees workmen agents or visitors, the Tenant will pay
          to the Landlord on demand a sum equal to the amount of the insurance
          monies which have become irrecoverable in consequence of that act or
          omission

     3.4  The Tenant may not insure the Premises for any of the Insured Risks in
          such a manner as would permit the insurer of the Landlord to average
          the proceeds of insurance, cancel insurance cover, or withhold
          insurance monies

     3.5  The Tenant will notify the Landlord forthwith of the occurrence of
          damage to the Premises by any of the Insured Risks

     3.6  If the Building is damaged by Insured Risks, the Tenant will pay to
          the Landlord on demand the due proportion of the amount of any
          uninsured excess to which the insurance cover of the Landlord is
          subject.

     3.7  The obligations of the Tenant to repair and to yield up in repair the
          Premises are to remain operative to the extent that the insurance of
          the Landlord in respect of Insured Risks is vitiated

                                       38
<PAGE>

          or insurance monies are withheld by reason of an act or omission of
          the Tenant, persons occupying or enjoying the use of the Premises
          through or under the Tenant, or their respective employees workmen
          agents or visitors, but do not otherwise operate in respect of damage
          to the Premises by Insured Risks

4    LANDLORD'S OBLIGATION TO INSURE AND REINSTATE

     4.1  The Landlord will keep the Building insured with an insurer of repute
          against Insured Risks and other items referred to in paragraph 2.2 for
          the full cost of reinstatement, subject to such uninsured excess as
          the insurer may reasonably apply

     4.2  Following the occurrence of damage to or destruction of the Building
          by an Insured Risk, the Landlord will diligently apply, or procure the
          application of, the proceeds of the insurance covering reinstatement
          and rebuilding costs for those purposes, and will make good any
          deficiency in the proceeds of the insurance out of its own resources

     4.3  The obligations of the Landlord in paragraph 4.2 do not apply:

          4.3.1     if the Landlord is unable, after using its reasonable
                    endeavours to do so, to obtain any requisite planning
                    permission or other consents for the reinstatement or
                    rebuilding of the Building or of a building of similar size
                    character and amenity; or

          4.3.2     if the Landlord's insurance is vitiated by reason of an act
                    or omission of the Tenant, persons occupying or enjoying the
                    use of the Premises through or under the Tenant, or their
                    respective employees workmen agents or visitors

     4.4  Where the Building is substantially damaged or destroyed, the Tenant
          may not object to the reinstatement or rebuilding of the Building in a
          form which is not identical to the Building immediately before the
          damage or destruction occurred if the

                                       39
<PAGE>

          Building as reinstated or rebuilt is of equivalent or better standard,
          and affords amenities which are not inferior to or deficient from
          those enjoyed by the Tenant before the occurrence of the damage or
          destruction

5    LANDLORD'S OBLIGATIONS IN RELATION TO INSURANCE

     5.1  The Landlord will use its reasonable endeavours to procure that its
          insurers waive entitlement to rights of subrogation against the
          Tenant, persons occupying or enjoying the use of the Premises through
          or under the Landlord, and their respective employees workmen agents
          or visitors

     5.2  The Landlord will notify its insurers of the Tenant's interest in the
          Premises and, if practicable, have it noted on the policies of
          insurance

     5.3  The Landlord will provide the Tenant with a copy of its insurance
          policies (or other evidence of the conditions of insurance) on the
          Building, and at the request of the Tenant with a receipt for the
          payment of the last premium or other evidence of renewal and
          up-to-date details of the amount of cover

     5.4  The Landlord will promptly notify the Tenant of any changes in its
          insurance cover or of the terms on which cover has been effected

     5.5  The Landlord may retain for its exclusive benefit any discount on the
          insurance premiums or commission offered to it by its insurer

6    SUSPENSION OF RENT

     6.1  Paragraph 6.2 applies if the Building or any part of it is at any time
          during the Term so damaged by an Insured Risk as to render the
          Premises or any part of them unfit for occupation use or enjoyment,
          except in the circumstances referred to in paragraph 4.3.2

     6.2  The rent and additional rent reserved by this Lease, or a fair

                                       40
<PAGE>

          proportion of them according to the nature and extent of the damage
          sustained, is to be suspended and cease to be payable until the
          Premises (excluding fitting out works and replacement of contents)
          have been reinstated and made fit for occupation use and enjoyment or,
          if earlier, until the expiry of three years from the occurrence of the
          damage

     6.3  A dispute as to the amount of the abatement of the rent or the
          duration of the period of abatement is to be submitted to a single
          arbitrator, by whose decision the parties are to be bound, who is to
          be appointed by the parties jointly if they can agree on one, but if
          they do not agree, then by the President for the time being of the
          Royal Institution of Chartered Surveyors at the request of either
          party, and the arbitration is to be conducted under the Arbitration
          Acts 1950 - 1979

7    OPTIONS TO DETERMINE

     7.1  If the Building or a substantial part of it (whether or not directly
          affecting the Premises) is destroyed or damaged by an Insured Risk so
          as to make continued use of the Premises impracticable, the Landlord
          may terminate this Lease by giving to the Tenant notice to that effect
          at any time within 12 months after the occurrence of the damage

     7.2  If for any reason beyond the control of the Landlord it proves
          impossible to commence rebuilding or reinstatement of the Building
          within two years of the occurrence of the damage by an Insured Risk,
          the Landlord may terminate this Lease by giving to the Tenant notice
          to that effect

     7.3  If the rebuilding or reinstatement of the Building has not been
          commenced two years after the occurrence of the damage by an Insured
          Risk, the Tenant may give notice to the Landlord of intention to
          terminate this Lease, and if the rebuilding or reinstatement work has
          not commenced in earnest within six months of the giving of the
          notice, this Lease is to terminate at

                                       41
<PAGE>

          the expiry of the notice

     7.4  The termination of this Lease under this paragraph 7 is not to affect
          any liability which has accrued at any time before the time of
          termination

8    RETENTION OF INSURANCE PROCEEDS

On the termination of this Lease under paragraph 7, or if this Lease is
terminated by the operation of the doctrine of frustration, the Landlord may
retain for its exclusive benefit the proceeds of insurance

                                   SCHEDULE 4

FORM OF GUARANTEE ON ASSIGNMENT UNDER CLAUSE 3.10.2

1    GUARANTEE

     1.1  The Guarantor[s] [jointly and severally] guarantee[s] to the Landlord
          that the Tenant will pay the rents reserved by and perform and observe
          all the Tenant's covenants in this Lease throughout the Term and any
          extension by statute of the tenancy created by this Lease and the
          Guarantor[s] will pay and make good to the Landlord on demand any
          losses damages costs and expenses suffered or incurred by the Landlord
          by reason of any failure of the Tenant to do so

     1.2  This guarantee is to take effect immediately on the assignment of the
          Lease to the Tenant and is to remain in force for so long as and to
          the extent that the Tenant is not released by law from liability for
          the Tenant's covenants in this Lease

     1.3  In the context of these guarantee provisions, references to the Tenant
          are to the assignee only (in its capacity as Tenant) with respect to
          whom this guarantee is given

2    NO WAIVER OR RELEASE OF LIABILITY

The Guarantor[s] is not to be released from liability under these provisions by
reason of:-

     2.1  any forbearance the granting of any time or any other indulgence on
          the part of the Landlord, including (but without affecting the general
          operation of this paragraph 2) any

                                       42
<PAGE>

          granting or extension of time under or varying the procedure set out
          in Schedule 2, paragraph 5; or

     2.2  any variation of this Lease, whether or not made with the consent of
          the Guarantor[s], and the guarantee of the Guarantor[s] in paragraph 1
          is to operate in relation to this Lease as it may be varied from time
          to time

3    GUARANTOR[S] TO ACCEPT NEW LEASE UPON DISCLAIMER

     3.1  If this Lease is determined by re-entry by the Landlord or is
          effectively determined by disclaimer, the Guarantor[s] shall, if the
          Landlord by notice in writing within three months after the date of
          determination so requires take from the Landlord a lease of the
          Premises

     3.2  The lease to be granted to the Guarantor[s] under paragraph 3.1 is to
          be on the following terms:

          3.2.1     the term is to commence on the date of termination of this
                    Lease and to be equal to the residue of the Term which would
                    have remained unexpired at the date of this Lease had not
                    then been terminated;

          3.2.2     the yearly rent is to be the same as would have been payable
                    under this Lease if it had continued and, if a rent review
                    operative from a review date before the grant of the lease
                    has not been completed, the Guarantor[s] will complete the
                    rent review as if it had been the Tenant under this Lease;

          3.2.3     the lease is otherwise to be on the same terms and
                    conditions as would have applied under this Lease if it had
                    continued undetermined; and

          3.2.4     the Guarantor[s] [is] [are] to succeed to the rights and
                    assume the liability of the Tenant under this Lease as if
                    the Lease had continued undetermined

4    SUBORDINATION OF RIGHTS OF THE GUARANTOR[S]

     4.1  With respect to any sums paid by the Guarantor[s] under this

                                       43
<PAGE>

          Schedule and to any other rights which may accrue to the Guarantor[s]
          in respect of any sums so paid or liabilities incurred under this
          guarantee or in the observance performance or discharge of the
          obligations and covenants of the Tenant in this Lease, the
          Guarantor[s] shall rank and be entitled to enforce its rights only
          after all obligations and covenants under this guarantee have been
          fully observed and performed, and if they have not the Guarantor[s]
          shall not:

          4.1.1     seek to recover from the Tenant, or any third party whether
                    directly or by way of set-off lien counterclaim or otherwise
                    or accept any money or other property or security or
                    exercise any rights in respect of any sum which may be or
                    become due to the Guarantor[s] on account of the failure by
                    the Tenant to observe and perform or discharge such
                    obligations or covenants in this Lease;

          4.1.2     claim, prove or accept any payment in composition by way of
                    winding-up, liquidation, bankruptcy or other form of
                    insolvency of the Tenant in competition with the Landlord
                    for any amount whatsoever owing to the Guarantor[s] by the
                    Tenant; nor

          4.1.3     exercise any right or remedy in respect of any amount paid
                    by the Guarantor[s] under this Lease or any liability
                    incurred by the Guarantor[s] in observing, performing or
                    discharging the obligations and covenants of the Tenant

     4.2  The Guarantor[s] warrant[s] that it has not taken, and undertakes with
          the Landlord that it will not without the consent of the Landlord;

          4.2.1     take any security from the Tenant in respect of this
                    guarantee and, if any such security is so taken
                    notwithstanding, it shall be held on trust for the Landlord
                    as security for the respective

                                       44
<PAGE>

                    liabilities of the Guarantor[s] and the Tenant; nor

          4.2.2     be entitled to any right of proof in the bankruptcy,
                    liquidation or other form of insolvency of the Tenant or
                    exercise any other right of the Guarantor[s] discharging his
                    liability in respect of such obligations and covenants

THE COMMON SEAL OF IVYGROVE
DEVELOPMENTS LIMITED was hereunto affixed in
the presence of:-

                                           /s/  illegible
                                           ---------------------------
                                           Director

                                           /s/  illegible
                                           ---------------------------
                                           Secretary

THE COMMON SEAL OF

         was hereunto affixed in the
presence of:-

                                           /s/  illegible
                                           ---------------------------
                                           Director

                                           /s/  illegible
                                           ---------------------------
                                           Secretary

                                       45

<PAGE>

                   [SITE MAP FOR IDENTIFICATION PURPOSES ONLY]

                                [GRAPHIC OMITTED]

<PAGE>

                 [BUILDING MAP FOR IDENTIFICATION PURPOSES ONLY]

                                [GRAPHIC OMITTED]<PAGE>

                  AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

          STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE -- GROSS
               (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)

1.   BASIC PROVISIONS ("BASIC PROVISIONS")

     1.1 PARTIES: This lease ("LEASE"), dated for reference purposes only,
February 6, 2001, is made by and between ROBERT TYLER AND WILFRED HUSKINS
("LESSOR") and NEXSAN TECHNOLOGIES CORPORATION, A DELAWARE CORPORATION
("LESSEE"), collectively the "Parties," or individually a "PARTY").

     1.2 PREMISES: That certain real property, including all improvements
therein or to be provided by Lessor under the terms of this Lease, and commonly
known as 2122 Vineyard Avenue, Escondido, CA 92029, located in the County of San
Diego, State of California, and generally described as (describe briefly the
nature of the property and, if applicable, the "PROJECT", if the property is
located within a Project) Approximately 4,800 square feet Freestanding Building
on a lot of approximately 9,140 square feet (Zoned M-1) APN:232-4720-27
("PREMISES"). (See also Paragraph 2).

     1.3 TERM: Three (3) year and 0 months ("ORIGINAL TERM") commencing April
15, 2001 ("COMMENCEMENT DATE") and ending April 14, 2004 ("EXPIRATION DATE").
(See also Paragraph 3).

     1.4  EARLY POSSESSION:  February 15, 2001 ("EARLY POSSESSION DATE"). (See
also Paragraphs 3.2 and 3.3).

     1.5 BASE RENT: $3,825.00 per month ("BASE RENT"), payable on the Fifteenth
(15th) day of each month commencing April 15, 2001. (See also Paragraph 4) [ ]
If this box is checked, there are provisions in this Lease for the Base Rent to
be adjusted and/or for common area maintenance charges.

     1.6 BASE RENT PAID UPON EXECUTION: $3,825.00 as Base Rent for the period
April 15 - May 14, 2001.

     1.7 SECURITY DEPOSIT: $4,137.00 ("SECURITY DEPOSIT"). (See also
Paragraph 5).

     1.8 AGREED USE: Technical support call center and warehouse of storage
equipment for exchange. (See also Paragraph 6).

     1.9 INSURING PARTY: Lessor is the "INSURING PARTY". The Annual "Base
Premium" is $__________. (See also Paragraph 6)

    1.10 REAL ESTATE BROKERS: (See also Paragraph 15)

         (a) REPRESENTATION: The following real estate brokers (collectively,
the "BROKERS") and brokerage relationships exist in this transaction (check
applicable boxes):
[ ] _________________________ represents Lessor exclusively ("LESSOR'S BROKER");
[ ] ______________________ represents Lessee exclusively ("LESSEE'S BROKER"); or
[X] Colliers International - Howard S. Zatkin represents both Lessor and
Lessee ("DUAL AGENCY").

         (b) PAYMENT TO BROKERS: Upon execution and delivery of this Lease by
both Parties, Lessor shall pay to the Broker the fee agreed to in their separate
written agreement (or if there is no such agreement, the sum of as agreed % of
the total Base Rent for the brokerage services rendered by said Broker).

     1.11 GUARANTOR. The obligations of the Lessee under this Lease are to be
guaranteed by None ("GUARANTOR"). (See also Paragraph 37).

     1.12 ADDENDA AND EXHIBITS. Attached hereto is an Addendum or Addenda
consisting of Paragraphs 50 through 58 and Exhibits "A", "B", all of which
constitute a part of this Lease.

2.   PREMISES.

     2.1 LETTING. Lessor hereby leases to Lessee, and Lessee hereby leases from
Lessor, the Premises, for the term, at the rental, and upon all of the terms,
covenants and conditions set forth in this Lease. Unless otherwise provided
herein, any statement of size set forth in this Lease, or that may have been
used in calculating rental, is an approximation which the Parties agree is
reasonable and the rental based thereon is not subject to revision whether or
not the actual size is more or less.

     2.2 CONDITION. Lessor shall deliver the Premises broom clean and free of
debris on the Commencement Date or the Early Possession Date, whichever first
occurs ("START DATE"), and warrants that the existing electrical, plumbing, fire
sprinkler, lighting, heating, ventilating and air conditioning systems ("HVAC"),
loading doors, if any, and all other such elements of the building, in the
Premises, other than those constructed by Lessee, shall be in good operating
condition on said date and that the surface and structural elements of the roof,
bearing walls and foundation of any buildings on the Premises (the "BUILDING")
shall be free of material defects. If a non-compliance with said warranty exists
as of the Start Date, Lessor shall, except as otherwise provided in this Lease,
promptly after receipt of written notice from Lessee setting forth with
specificity the nature and extent of such non-compliance, rectify same at
Lessor's expense. If, after the Start Date, Lessee does not give Lessor written
notice of any non-compliance with this warranty within (i) six (6) months as to
the HVAC systems or (ii) thirty (30) days as to the remaining systems and other
elements of the Building, correction of such non-compliance shall be the
obligation of Lessee at Lessee's sole cost and expense, except for the roof,
foundations, and bearing walls which are handled as provided in Paragraph 7.

     2.3 COMPLIANCE. Lessor warrants that the improvements on the Premises
comply with all applicable laws, covenants or restrictions of record, building
codes, regulations and ordinances ("APPLICABLE REQUIREMENTS") in effect on the
Start Date. Said warranty does not apply to the use to which Lessee will put the
Premises or to any Alterations or Utility Installations (as defined in Paragraph
7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for
determining whether or not the zoning is appropriate for Lessee's intended use,
and acknowledges that past uses of the Premises may no longer be allowed. If the
Premises do not comply with said warranty, Lessor shall, except as otherwise
provided, promptly after receipt of written notice from Lessee setting forth
with specificity the nature and extent of such non-compliance, rectify the same
at Lessor's expense. If Lessee does not give Lessor written notice if a
non-compliance with this warranty within six (6) months following the Start Date
correction of that non-compliance shall be the obligation of Lessee at Lessee's
sole cost and expense. If the Applicable Requirements are hereafter changed (as
opposed to being in existence at the Start Date, which is addressed in Paragraph
6.2(e) below) so as to require during the term of this Lease the construction of
an addition to or an alteration of the Building, the remediation of any
Hazardous Substance, or the reinforcement or other physical modification of the
Building ("CAPITAL EXPENDITURE"), Lessor and Lessee shall allocate the cost of
such work as follows:

         (a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are
required as a result of the specific and unique use of the Premises by Lessee
as compared with uses by tenants in general, Lessee shall be fully responsible
for the cost thereof, provided, however, that if such Capital

                                                       Initials
                                                                -------  -------

                                       1
<PAGE>

--------------------------------------------------------------------------------
ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN
INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY,
LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT
RELATES. THE PARTIES ARE URGED TO:

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE
PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE
PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL
INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY
OF THE PREMISES FOR THE LESSEE'S INTENDED USE.

WARNING: IF THE PREMISES IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN
PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE
STATE IN WHICH THE PREMISES IS LOCATED.
--------------------------------------------------------------------------------

The Parties hereto have executed this Lease at the place and on the dates
specified above their respective signatures.

Executed at:                               Executed at:
             -----------------------                    -----------------------
on:                                        on:
   ---------------------------------          ---------------------------------
by LESSOR:                                 by LESSEE:
                                           NEXSAN TECHNOLOGIES CORPORATION
                                           A DELAWARE CORPORATION

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

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

By:                                        By:
   ---------------------------------          ---------------------------------

Name Printed:  Robert Tyler                Name Printed:
                                                         ----------------------
Title:                                     Title:
      ------------------------------             ------------------------------

By:                                        By:
    --------------------------------           --------------------------------

Name Printed: Wilfred Huskins              Name Printed:

Title:                                     Title:
      ------------------------------             ------------------------------

Address: 15628 Cobalt Street               Address: 21700 Oxnard Street,
                                                    Suite 1850
         Sylmar, CA 93142                           Woodland Hills, CA 91367
Telephone: (818) 784-2652                  Telephone: (866) 463-9726
Facsimile: (818) 364-0476                  Facsimile: (866) 263-9726
Federal ID No.                             Federal ID No.
               ---------------------                      ---------------------

NOTE: These forms are often modified to meet changing requirements of law and
      industry needs. Always write or call to make sure you are utilizing the
      most current form: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 700 So.
      Flower Street, Suite 600, Los Angeles, California 90017. (213) 687-8777.
      Fax No. (213) 687-8616

                                       2
<PAGE>

            ADDENDUM TO LEASE DATED FEBRUARY 6, 2001 BY AND BETWEEN
                 ROBERT TYLER AND WILFRED HUSKINS, AS LESSOR AND
                      NEXSAN TECHNOLOGIES CORP., AS LESSEE

50. Lessor shall receive a Certificate of Insurance from the Lessee prior to
    Lessee's occupancy but not later than February 15, 2001.

51. Monthly rental payment to be in LESSOR'S POSSESSION by the 15TH of each
    month. (Checks should be mailed to, and made payable to):

                                  WILL HUSKINS
                              15628 COBALT STREET
                                SYLMAR, CA 91342

52. Lessor gives Lessee permission to place a company sign on leased premises as
    long as approval has been received from the City of Escondido, conforming
    with all ordinances and regulations.

53. Lessee shall obtain Lessor's prior written approval to construct (at
    Lessee's sole expense) any tenant improvements. PRIOR to commencing of any
    construction, Lessee shall deliver to Lessor all plans and specification for
    Lessor's approval, which shall not be unreasonably withheld. Lessee agrees
    to furnish Lessor a copy of the building permit, improvement plan, conform
    to all current building codes, ADA and/or any other requirements and to pay
    all applicable fees. Lessee shall warrant a lien-free completion of all
    tenant improvements. Lessor shall post a "Notice of Non-Responsibility" on
    the premises.

54. Lessee shall accept leased premises in its current "as is" condition:

55. MONTHLY RENT SCHEDULE:

      $3,825.00 Gross - Commencing on April 15, 2001 through 14, 2002
      $3,978.00 Gross - Commencing on April 15, 2002 through 14, 2003
      $4,137.00 Gross - Commencing on April 15, 2003 through 14, 2004

56. AMERICANS WITH DISABILITIES ACT: Lessee, at Lessee's expense, shall
    comply with all laws, rules orders, ordinances, directions, regulations,
    and requirements of federal state, county, and municipal force, which shall
    impose any duty upon Lessor or Lessee with respect to the use, occupation,
    or alteration of the Premises, including without limitation the Americans
    with Disabilities Act. Premises means the leased space, not the entire
    facility. (See attached Exhibit "A").

57. HAZARDOUS MATERIALS: See Addendum made a part of this lease as Exhibit "B".

58. TOTAL AMOUNT DUE UPON LEESSEE'S EXECUTION OF LEASE:

    Year 1- First two months pre-paid rent =  $ 7,650.00
    Year 2- First two months pre-paid rent =  $ 7,956.00
    Year 3- First two months pre-paid rent =  $ 8,274.00
    Security Deposit                       =  $ 4,137.00
                                              ----------
    TOTAL AMOUNT DUE                       =  $28,017.00

                                                          Initials
                                                                   -------------

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

<PAGE>

                                  EXHIBIT "A"

                    NOTICE TO OWNERS AND PROSPECTIVE BUYERS
                   OR TENANTS OF REAL PROPERTY REGARDING THE

                     AMERICANS WITH DISABILITIES ACT (ADA)

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

The government of the United States has recently enacted the Americans With
Disabilities Act (ADA), a federal law codified at 42/USC Section 12101 et seq.
Among other requirements of the ADA that could apply to your property, this act
is intended to make owners and tenants of certain types of business
establishments defined as "public accommodations" provide facilities that are
equally accessible to persons with a variety of disabilities. State and local
laws may also impose requirements.

The real estate brokers in this transaction are not qualified to advise you as
to what, if any, changes may be required now, or in the future. We recommend
that owners and tenants consult attorneys and design professionals of their
choice for information regarding these matters and the impact, if any, on the
proposed lease or purchase agreement and the property. These are legal issues
and you are responsible for conducting your own independent investigation of
these issues. Colliers International cannot give legal advice on these issues.

LESSOR:                                    LESSEE:

ROBERT TYLER AND WILFRED HUSKINS           NEXSAN TECHNOLOGIES CORPORATION,
                                           A DELAWARE CORPORATION

BY:                                        BY:
   -------------------------------             -------------------------------
   ROBERT TYLER

BY:
   -------------------------------
   WILFRED HUSKINS

DATE:                                      DATE:
     -----------------------------               -----------------------------

<PAGE>

                                  EXHIBIT "B"

                              HAZARDOUS MATERIALS

1.   Prohibition of Storage. Lessee shall not cause or permit any Hazardous
     Material (as hereinafter defined) to be brought upon, kept or used in or
     about the Premises, the Building or the Project by Lessee, its agents,
     employees, contractors or invitees in a manner or for a purpose prohibited
     by any governmental agency or authority. If Lessee breaches the obligation
     stated in the preceding sentence, or if the presence of Hazardous Materials
     on the Premises caused or permitted by Lessee (including Hazardous
     Materials specifically permitted and identified below) results in
     contamination of the premises, or if contamination of the Premises by
     Hazardous Material otherwise occurs for which Lessee is legally liable to
     Lessor for damage resulting therefrom, then Lessee shall indemnify, defend
     and hold Lessor, its agents and contractors harmless from any and all
     claims, judgments, damages, penalties, fines, costs, liabilities, or losses
     (including without limitation diminution in value of the Premises or any
     portion of the Project, damages for the loss or restriction on use of
     rentable of usable space or of any amenity of the Premises or Project,
     damages arising from any adverse impact on marketing of space in the
     premises or the project, and sums paid in settlement of claims, attorneys
     fees, consultant fees and expert fees) which arise during or after the
     Lease Term as a result of such contamination. With respect to the
     foregoing, Lessee acknowledges that it is familiar with Section 1542 of the
     California Civil Code which reads "A general release does not extend to
     claims which the creditor does not know or suspect to exist in his favor at
     the time of executing the release, which if know by him must have
     materially affected his settlement with the debtor...." and hereby releases
     Lessor from any known claims and waives all rights they may have under
     Section 1542 of the Civil Code or under any other stature or common law
     principle of similar effect.

1.1  Clean-up. This indemnification of Lessor by Lessee pursuant to Subsection 1
     above includes, without limitation, costs incurred in connection with any
     investigation of site conditions or any cleanup, remedial, removal, or
     restoration work required by any federal state or local governmental agency
     or political subdivision because Hazardous Materials present in the soil or
     ground water on or under the Premises. Without limiting the foregoing, if
     the presence of any Hazardous Material on the Premises caused or permitted
     by Lessee results in any contamination of the Premises, Lessee shall
     promptly take all actions at its sole expense as are necessary to return
     the Premises to the condition existing prior to the introduction of any
     such Hazardous Material to the Premises, provided that Lessor's approval of
     such action shall first be obtained which approval shall not be
     unreasonably withheld so long as such actions would not potentially have
     any material adverse long-term or short-term effect on the Premises or the
     Project.

1.2  Business. Lessor acknowledges that it is not the intent of this Exhibit to
     prohibit Lessee from operating its business as described in Section 6
     above. Lessee may operate its business according to the custom of the
     industry so long as the use or presence of Hazardous Materials is strictly
     and properly monitored according to all applicable governmental
     requirements. As a material inducement to Lessor to allow Lessee to use
     Hazardous Materials in connection with its business, Lessee agrees to
     deliver to Lessor within 30 days of Lease execution, and specifically prior
     to the Commencement Date a list identifying each type of Hazardous Material
     to be present on the Premises and setting forth any and all governmental
     approvals or permits required in connection with the presence of Hazardous
     Materials on the Premises ("Hazardous Material List"). Lessee shall deliver
     to Lessor an updated Hazardous Materials List at least once a year and
     shall also deliver an updated Hazardous Material list before any new
     Hazardous Materials are brought onto the Premises or on or before the date
     Lessee obtains any additional permits or approvals.

2.   Termination of Lease. Notwithstanding the provisions of Paragraph 1 above,
     Lessor shall have the right to terminate the Lease in Lessor's sole and
     absolute discretion in the event that (i) any use of the Premises by Lessee
     involves the generation or storage, use, treatment or disposal of Hazardous
     Material in a manner or for a purpose prohibited by any governmental agency
     or authority; (ii) Lessee has been required by any lender or governmental
     authority to take remedial action in connection with Hazardous Material
     contaminating the Premises if the contamination resulted from Lessee's
     action or use of the Premises (unless Lessee is diligently seeking
     compliance with such remedial action); or (iii) Lessee is subject to an
     enforcement order issued by any governmental authority in connection with
     the use, disposal or storage of a Hazardous Material on the Premises
     (unless Lessee is diligently seeking compliance with such enforcement
     order).

<PAGE>

                                                         Initials
                                                                  --------------

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

3.   Assignment and Subletting. Notwithstanding the provision of Paragraph 1
     above, if (i) any anticipated use of the Premises by any proposed assignee
     or Lessee involves the generation or storage, use, treatment or disposal of
     Hazardous Material in a manner or for a purpose prohibited by any
     governmental agency or authority, (ii) the proposed assignee or Lessee has
     been required by any prior Lessor, lender or governmental authority to take
     remedial action in connection with Hazardous Material contaminating a
     property if the contamination resulted from such party's action or use of
     the property in question or (iii) the proposed assignee or Lessee is
     subject to an enforcement order issued by any governmental authority in
     connection with the use, disposal or storage of a Hazardous Material, it
     shall not be unreasonable for Lessor to withhold its consent to an
     assignment or subletting to such proposed assignee or Lessee.

4.   Lessor's Right to Perform Tests. At any time prior to the expiration of the
     Lease Term, Lessor shall have the right to enter upon the Premises at all
     reasonable times in order to conduct appropriate tests of water and soil
     and to deliver to Lessee the results of such tests to demonstrate that
     contamination in excess of permissible levels has occurred as a result of
     Lessee's use of the Premises. Lessee shall further be solely responsible
     for and shall defend, indemnify and hold the Lessor, its agents and
     contractors harmless from and against all claims, costs and liabilities
     including actual attorneys' fees and costs, arising out of or in connection
     with any removal, clean up, restoration and materials required hereunder to
     return the Premises and any other property of whatever nature to their
     condition existing prior to the appearance of the Hazardous Materials.

5.   Lessee's Obligation. Lessee's obligations under this Exhibit B shall
     survive the termination of the Lease. During any period of time employed by
     Lessee after the termination of this Lease to complete the removal from the
     premises of any such Hazardous Materials, Lessee shall continue to pay the
     full rental in accordance with this Lease, which rental shall be prorated
     daily.

6.   Definition of "Hazardous Material." As used herein, the term "Hazardous
     Material" means any hazardous or toxic substance, material or waste which
     is or becomes regulated by any local governmental authority, the State of
     California or the United States Government. The term "Hazardous Material"
     includes, without limitation, any material or substance which is (i)
     defined as a "hazardous waste," "extremely hazardous waste" or "restricted
     hazardous waste" under Sections 25115, 25117 or 25122.7, or listed pursuant
     to Section 2514, of the California Health and Safety Code, Division 20,
     Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a "hazardous
     substance" under Section 25315 of the California Health and Safety Code,
     Division 2, Chapter 6.8 (Carpenter-Presly-Tanner Hazardous Substance
     Account Act), (iii) defined as a "hazardous material," "hazardous
     substance" or "hazardous waste" under Section 25501 of the California
     Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Substances),
     (iv) petroleum, (v) asbestos, (vi) listed under Article 9 and defined as
     hazardous or extremely hazardous pursuant to Article II of Title 22 of the
     California Administrative Code, Division 4, Chapter 20, (vii) designated as
     a "hazardous substance" pursuant to Section 311 of the Federal Water
     Pollution Control Act (33 U.S.C. Section 1317), (ix) defined as a
     "hazardous waste" pursuant to Section 1004 of the Federal Resource
     Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C.
     Section 6903), or (x) defined as a "hazardous substance" pursuant to
     Section 101 of the Comprehensive Environmental Response Compensation and
     Liability Act, 42 U.S.C. Section 9601 et seq. (42 U.S.C. Section 9601).

                                                         Initials:
                                                                   -------------

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