Document:

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                        NEXSAN TECHNOLOGIES INCORPORATED

                                 2001 STOCK PLAN

     1. Purposes of the Plan. The purposes of this Stock Plan are to attract and
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retain the best available personnel for positions of substantial responsibility,
to provide additional incentive to Employees, Directors and Consultants and to
promote the success of the Company's business. Options granted under the Plan
may be Incentive Stock Options or Nonstatutory Stock Options, as determined by
the Administrator at the time of grant. Stock Purchase Rights may also be
granted under the Plan. This Plan is intended to be a written compensatory plan
within the meaning of Rule 701 promulgated under the Securities Act.

2. Definitions.  As used herein, the following definitions shall apply:
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     (a) "Administrator" means the Board or any of its Committees as shall be
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administering the Plan in accordance with Section 4 hereof. (b)"Applicable Laws"
means the requirements relating to the administration of stock option plans
under U.S. state corporate laws, U.S. federal and state securities laws, the
Code, any stock exchange or quotation system on which the Common Stock is listed
or quoted and the applicable laws of any other country or jurisdiction where
Options or Stock Purchase Rights are granted under the Plan.

     (c) "Board" means the Board of Directors of the Company.
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     (d) "Code" means the Internal Revenue Code of 1986, as amended.
          ----

     (e) "Committee" means a committee of Directors appointed by the Board in
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accordance with Section4 hereof.

     (f) "Common Stock" means the common stock, par value $0.001 per share, of
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the Company.

     (g) "Company" means Nexsan Technologies Incorporated, a Delaware
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corporation.

     (h) "Consultant" means any person who is engaged by the Company or any
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Parent or Subsidiary to render consulting or advisory services to such entity.

     (i) "Director" means a member of the Board of Directors of the Company.
          --------
(j)"Disability" means total and permanent disability as defined in Section
22(e)(3) of the Code, or if otherwise defined in any agreement between the
Company and the Service Provider, as so defined.
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     (k) "Employee" means any person, including Officers and Directors, employed
          --------
by the Company or any Parent or Subsidiary of the Company. A Service Provider
shall not cease to be an Employee in the case of (i)any leave of absence
approved by the Company or (ii)transfers between locations of the Company or
between the Company, its Parent, any Subsidiary or any successor. For purposes
of Incentive Stock Options, no such leave may exceed ninety days, unless
re-employment upon expiration of such leave is guaranteed by statute or
contract. If re-employment upon expiration of a leave of absence approved by the
Company is not so guaranteed, on the 181st day of such leave any Incentive Stock
Option held by the Optionee shall cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonstatutory Stock Option.
Neither service as a Director nor payment of a director's fee by the Company
shall be sufficient to constitute "employment" by the Company.

     (l) "Exchange Act" means the Securities Exchange Act of 1934, as amended.
          ------------

     (m) "Fair Market Value" means, as of any date, the value of Common Stock
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determined as follows:

          (i) If the Common Stock is listed on any established stock exchange or
a national market system, including without limitation the Nasdaq National
Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market
Value shall be the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on such exchange or system for the last market
trading day prior to the day of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable;

          (ii)If the Common Stock is regularly quoted by a recognized securities
dealer but selling prices are not reported, its Fair Market Value shall be the
mean between the high bid and low asked prices for the Common Stock on the last
market trading day prior to the day of determination; or

          (iii)In the absence of an established market for the Common Stock, the
Fair Market Value thereof shall be determined in good faith by the
Administrator.

     (n) "Incentive Stock Option" means an Option intended to qualify as an
          ----------------------
incentive stock option within the meaning of Section422 of the Code.

     (o) "Nonstatutory Stock Option" means an Option not intended to qualify as
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an Incentive Stock Option.

     (p) "Officer" means a person who is an officer of the Company within the
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meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

     (q) "Option" means a stock option granted pursuant to the Plan.
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     (r) "Option Agreement" means a written or electronic agreement between the
          ----------------
Company and an Optionee evidencing the terms and conditions of an individual
Option grant. The Option Agreement is subject to the terms and conditions of the
Plan. The Option Agreement will contain such representations and agreements
regarding Optionees investment intent and access to information and other
matters, if any, as may be required or desirable by the Company to comply with
applicable securities laws.

     (s) "Option Exchange Program" means a program whereby outstanding Options
          -----------------------
are exchanged for Options with a lower exercise price.

     (t) "Optioned Stock" means the Common Stock subject to an Option or a Stock
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Purchase Right.

     (u) "Optionee" means the holder of an outstanding Option or Stock Purchase
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Right granted under the Plan.

     (v) "Parent" means a "parent corporation," whether now or hereafter
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existing, as defined in Section 424(e) of the Code.

     (w) "Plan" means this 2001 Stock Plan.
          ----

     (x) "Restricted Stock" means shares of Common Stock acquired pursuant to a
          ----------------
grant of a Stock Purchase Right under Section 11 below.

     (y) "Securities Act" means the Securities Act of 1933, as amended.
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     (z) "Service Provider" means an Employee, Director or Consultant.
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     (aa) "Share" means a share of the Common Stock, as adjusted in accordance
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with Section 12 below.

     (bb) "Stock Purchase Right" means a right to purchase Common Stock pursuant
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to Section 11 below.

     (cc) "Subsidiary" means a "subsidiary corporation," whether now or
           ----------
hereafter existing, as defined in Section 424(f) of the Code.

     3. Stock Subject to the Plan. Subject to the provisions of Section 12 of
the Plan, the maximum aggregate number of Shares which may be subject to option
and sold under the Plan is seven million five hundred seventy two thousand two
hundred twenty two (7,572,222) Shares. The Shares may be authorized but
unissued, or reacquired Common Stock.

     If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the

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unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated). However, Shares
that have actually been issued under the Plan, upon exercise of either an Option
or Stock Purchase Right, shall not be returned to the Plan and shall not become
available for future distribution under the Plan, except that if Shares of
Restricted Stock are repurchased by the Company at their original purchase
price, such Shares shall become available for future grant under the Plan.

     4. Administration of the Plan.
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     (a) Administrator. The Plan shall be administered by the Board or a
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Committee appointed by the Board, which Committee shall be constituted to comply
with Applicable Laws.

     (b) Powers of the Administrator. Subject to the provisions of the Plan and,
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in the case of a Committee, the specific duties delegated by the Board to such
Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority in its discretion:

          (i) to determine the Fair Market Value;

          (ii) to select the Service Providers to whom Options and Stock
Purchase Rights may from time to time be granted hereunder;

          (iii) to determine the number of Shares to be covered by each such
award granted hereunder;

          (iv) to approve forms of agreement for use under the Plan;

          (v) to determine the terms and conditions, of any Option or Stock
Purchase Right granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Options or Stock Purchase
Rights may be exercised (which may be based on performance criteria), any
vesting acceleration or waiver of forfeiture restrictions, and any restriction
or limitation regarding any Option or Stock Purchase Right or the Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

          (vi) to determine whether and under what circumstances an Option may
be settled in cash under subsection 9(f) below instead of Common Stock;

          (vii) to reduce the exercise price of any Option to the then current
Fair Market Value if the Fair Market Value of the Common Stock covered by such
Option has declined since the date the Option was granted;

          (viii) to initiate an Option Exchange Program;

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          (ix) to prescribe, amend and rescind rules and regulations relating to
the Plan, including rules and regulations relating to sub-plans established for
the purpose of qualifying for preferred tax treatment under foreign tax laws;

          (x) to allow Optionees to satisfy withholding tax obligations by
electing to have the Company withhold from the Shares to be issued upon exercise
of an Option or Stock Purchase Right that number of Shares having a Fair Market
Value equal to the amount required to be withheld. The Fair Market Value of the
Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined. All elections by Optionees to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable;

          (xi) to extend the vesting period beyond the term set forth in any
Option Agreement or Stock Purchase Right agreement.

          (xii) to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan.

     (c) Effect of Administrator's Decision. All decisions, determinations and
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interpretations of the Administrator shall be final and binding on all
Optionees.

   5.  Eligibility.
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     (a) Nonstatutory Stock Options and Stock Purchase Rights may be granted to
Service Providers. Incentive Stock Options may be granted only to Employees.

     (b) Each Option shall be designated in the Option Agreement as either an
Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding
such designation, to the extent that the aggregate Fair Market Value of the
Shares with respect to which Incentive Stock Options are exercisable for the
first time by the Optionee during any calendar year (under all plans of the
Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be
treated as Nonstatutory Stock Options. For purposes of this Section 5(b),
Incentive Stock Options shall be taken into account in the order in which they
were granted. The Fair Market Value of the Shares shall be determined as of the
time the Option with respect to such Shares is granted.

     (c) Neither the Plan nor any Option or Stock Purchase Right shall confer
upon any Optionee any right with respect to continuing the Optionee's
relationship as a Service Provider with the Company, nor shall it interfere in
any way with his or her right or the Company's right to terminate such
relationship at any time, with or without cause.

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  6. Term of Plan. The Plan shall become effective upon its adoption by the
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Board. It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 14 of the Plan.

  7. Term of Option. The term of each Option shall be stated in the Option
     --------------
Agreement; provided, however, that the term shall be no more than ten (10) years
from the date of grant thereof. In the case of an Incentive Stock Option granted
to an Optionee who, at the time the Option is granted, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the term of the Option shall be five (5)
years from the date of grant or such shorter term as may be provided in the
Option Agreement.

  8. Option Exercise Price and Consideration.
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     (a) The per share exercise price for the Shares to be issued upon exercise
of an Option shall be such price as is determined by the Administrator, but
shall be subject to the following:

          (i) In the case of an Incentive Stock Option

               (A) granted to an Employee who, at the time of grant of such
          Option, owns stock representing more than ten (10%) percent of the
          voting power of all classes of stock of the Company or any Parent or
          Subsidiary, the per Share exercise price shall be no less than 110% of
          the Fair Market Value per Share on the date of grant; and

               (B) granted to any other Employee, the per Share exercise price
          shall be no less than 100% of the Fair Market Value per Share on the
          date of grant.

          (ii) Notwithstanding the foregoing, Options may be granted with a per
     Share exercise price other than as required above pursuant to a merger or
     other corporate transaction.

     (b) The consideration to be paid for the Shares to be issued upon exercise
of an Option, including the method of payment, shall be determined by the
Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant). Such consideration may be paid:

          (i) in cash; or by check; or by a promissory note;

          (ii) by cancellation of indebtedness of the Company owed to Optionee;

          (iii) by surrender of shares that:(1) either (x) have been owned by
Optionee for more than six (6) months and have been paid for within the meaning
of Exchange Act Rule 144 (and if such shares were purchased from the Company by
use of a promissory note, such

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note has been fully paid with respect to such shares), or (y) were obtained by
Optionee in the public market and (2) are clear of all liens, claims,
encumbrances or security interests;

          (iv) by tender of a promissory note having such terms as may be
approved by the Administrator and bearing interest at a rate sufficient to avoid
imputation of income under Sections 483 and 1274 of the Code; provided, however,
that Optionees who are not employees or directors of the Company will not be
entitled to purchase Shares with a promissory note unless the note is adequately
secured by collateral other than the Shares; provided, further, that the portion
of the exercise price or the purchase price, as the case may be, equal to the
par value of the Shares must be paid in cash or other legal consideration
permitted by the Delaware General Corporation Law;

          (v) by waiver of compensation due or accrued to the Optionee from the
Company for services rendered;

          (vi) with respect only to purchases upon exercise of an Option and
provided that a public market for the Shares exists: (1) through a >same day
sale= commitment from the Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an ANASD Dealer@) whereby the
Optionee irrevocably elects to exercise the Option and to sell a portion of the
Shares so purchased sufficient to pay the total exercise price, and whereby the
NASD Dealer irrevocably commits upon receipt of such Shares to forward the total
exercise price directly to the Company; or (2) through >margin= commitment from
the Optionee and a NASD Dealer whereby the Optionee irrevocably elects to
exercise the option in the amount of the total exercise price, and whereby the
NASD Dealer irrevocably commits upon receipt of such Shares to forward the total
exercise price directly to the Company; or

          (vii) any combination of the foregoing methods of payment.

     In making its determination as to the type of consideration to accept, the
Administrator shall consider if acceptance of such consideration may be
reasonably expected to benefit the Company.

  9. Exercise of Option.
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     (a) Procedure for Exercise; Rights as a Stockholder. Any Option granted
         ----------------------
hereunder shall be exercisable according to the terms hereof at such times and
under such conditions as determined by the Administrator and set forth in the
Option Agreement. Unless the Administrator provides otherwise, vesting of
Options granted hereunder to Officers and Directors

                                      -7-
<PAGE>

shall be tolled during any unpaid leave of absence. An Option may not be
exercised for a fraction of a Share.

     An Option shall be deemed exercised when the Company receives: (i) written
or electronic notice of exercise (in accordance with the Option Agreement) from
the person entitled to exercise the Option; such notice shall include (x) the
number of Shares being purchased, (y) the restriction imposed on the Shares
under the Option Agreement, if any, and (z) such representations and agreements
regarding Optionee=s investment intent and access to information and other
matters, if any, as may be required or desirable by Company to comply with
applicable securities laws; and (ii) full payment for the Shares with respect to
which the Option is exercised. Full payment may consist of any consideration and
method of payment authorized by the Administrator and permitted by the Option
Agreement and the Plan. Shares issued upon exercise of an Option shall be issued
in the name of the Optionee or, if requested by the Optionee, in the name of the
Optionee and his or her spouse. Until the Shares are issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company), no right to vote or receive dividends or any other rights
as a stockholder shall exist with respect to the Shares, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such
Shares promptly after the Option is exercised. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the
Shares are issued, except as provided in Section 12 of the Plan.

     Exercise of an Option in any manner shall result in a decrease in the
number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is
exercised.

     (b) Termination of Relationship as a Service Provider. If an Optionee
         -------------------------------------------------
ceases to be a Service Provider, such Optionee may exercise his or her Option
within such period of time as is specified in the Option Agreement (which shall
be at least thirty (30) days) to the extent that the Option is vested on the
date of termination (but in no event later than the expiration of the term of
the Option as set forth in the Option Agreement). In the absence of a specified
time in the Option Agreement, the Option shall remain exercisable for three (3)
months following the Optionee's termination. If, on the date of termination, the
Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan. If, after termination,
the Optionee does not exercise his or her Option within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

     (c) Disability of Optionee. If an Optionee ceases to be a Service Provider
         ----------------------
as a result of the Optionee's Disability, the Optionee may exercise his or her
Option within such period of time as is specified in the Option Agreement (which
shall be at least six (6) months) to the extent the Option is vested on the date
of termination (but in no event later than the expiration of the term of such
Option as set forth in the Option Agreement). In the absence of a specified time
in the Option Agreement, the Option shall remain exercisable for twelve (12)
months following the

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Optionee's termination. If, on the date of termination, the Optionee is not
vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified herein,
the Option shall terminate, and the Shares covered by such Option shall revert
to the Plan.

     (d) Termination for Cause. Notwithstanding any other provision of the Plan,
         ---------------------
if an Optionee is terminated for Cause, then Optionee=s Options or Stock
Purchase Right shall expire on such termination date, or on such conditions as
are determined by the Administrator. ACause@ has the meaning set forth in any
agreement between the Company and the Optionee, or absent such agreement, means
termination of a Service Provider=s term with the Company because of (i) any
willful, material violation by the Optionee of any law or regulation applicable
to the business of the Company or a Parent or a Subsidiary of the Company, the
Optionee=s conviction for, or guilty plea - or nolo contendere - to, a felony or
a crime involving moral turpitude, (ii) the Optionee=s commission of an act of
personal dishonesty which involves personal profit in connection with the
Company or any other entity having a business relationship with the Company,
(iii) any material breach by the Optionee of any provision of any agreement or
understanding between the Company or any Parent or Subsidiary of the Company and
the Optionee regarding the terms of the Optionee=s service as a Service
Provider, including any contract of employment, (iv) the Optionee=s violation of
any of the policies of the Company or any Parent or Subsidiary of the Company so
as to cause loss, damage or injury to the property, reputation or employees of
the Company or any Parent or Subsidiary of the Company, or (v) any other
misconduct by the Optionee which is materially injurious to the financial
condition or business reputation of, or is otherwise injurious to, the Company
or a Parent or a Subsidiary of the Company.

     (e) Death of Optionee. If an Optionee dies while a Service Provider, the
         -----------------
Option may be exercised within such period of time as is specified in the Option
Agreement (which shall be at least six (6) months) to the extent that the Option
is vested on the date of death (but in no event later than the expiration of the
term of such Option as set forth in the Option Agreement) by the Optionee's
estate or by a person who acquires the right to exercise the Option by bequest
or inheritance. In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following the Optionee's
termination. If, at the time of death, the Optionee is not vested as to the
entire Option, the Shares covered by the unvested portion of the Option shall
immediately revert to the Plan. If the Option is not so exercised within the
time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

     (f) Buyout Provisions. The Administrator may at any time offer to buy out
         -----------------
for a payment in cash or Shares, an Option previously granted, based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

<PAGE>

     (h) Right of First Refusal. At the discretion of the Administrator, the
         ----------------------
Company may reserve to itself the right of first refusal, in any of the Option
Agreements, to purchase all Shares that an Optionee may propose to transfer to a
third party, provided that the right of first refusal terminates upon the
Company=s initial public offering of Common Stock pursuant to an effective
registration statement filed under the Securities Act.

     10. Non-Transferability of Options and Stock Purchase Rights. Except as
         --------------------------------------------------------
otherwise provided in the applicable Option Agreement or Restricted Stock
purchase agreement, the Options and Stock Purchase Rights may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised,
during the lifetime of the Optionee, only by the Optionee.

     11. Stock Purchase Rights.
         ---------------------

          (a) Right of First Refusal. At the discretion of the Administrator,
              ----------------------
the Company may reserve to itself the right of first refusal, in any of the
Restricted Stock purchase agreements, to purchase all Shares that a Service
Provider may propose to transfer to a third party, provided that the right of
first refusal terminates upon the Company=s initial public offering of Common
Stock pursuant to an effective registration statement filed under the Securities
Act.

          (b) Rights to Purchase. Stock Purchase Rights may be issued either
              ------------------
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside of the Plan. After the Administrator determines
that it will offer Stock Purchase Rights under the Plan, it shall advise the
offeree in writing or electronically of the terms, conditions and restrictions
related to the offer, including the number of Shares that such person shall be
entitled to purchase, the price to be paid, and the time within which such
person must accept such offer. The offer shall be accepted by execution of a
Restricted Stock purchase agreement in the form determined by the Administrator.

          (c) Repurchase Option. Unless the Administrator determines otherwise,
              -----------------
the Restricted Stock purchase agreement shall grant the Company a repurchase
option exercisable upon the voluntary or involuntary termination of the
purchaser's service with the Company for any reason (including death or
Disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock purchase agreement shall be the original price paid by the
purchaser and may be paid by cancellation of any indebtedness of the purchaser
to the Company. The repurchase option shall lapse at such rate as the
Administrator may determine.

          (d) Other Provisions. The Restricted Stock purchase agreement shall
              ----------------
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

          (d) Rights as a Stockholder. Once the Stock Purchase Right is
              -----------------------
exercised, the purchaser shall have rights equivalent to those of a stockholder
and shall be a stockholder when his

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<PAGE>

or her purchase is entered upon the records of the duly authorized transfer
agent of the Company. No adjustment shall be made for a dividend or other right
for which the record date is prior to the date the Stock Purchase Right is
exercised, except as provided in Section 12 of the Plan.

     12. Adjustments Upon Changes in Capitalization, Merger or Asset Sale.
         ----------------------------------------------------------------

          (a) Changes in Capitalization. Subject to any required action by the
              -------------------------
stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company. The conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option or Stock Purchase Right.

          (b) Dissolution or Liquidation. In the event of the proposed
              --------------------------
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option or Stock Purchase Right until
fifteen (15) days prior to such transaction as to all of the Optioned Stock
covered thereby, including Shares as to which the Option or Stock Purchase Right
would not otherwise be exercisable. In addition, the Administrator may provide
that any Company repurchase option applicable to any Shares purchased upon
exercise of an Option or Stock Purchase Right shall lapse as to all such Shares,
provided the proposed dissolution or liquidation takes place at the time and in
the manner contemplated. To the extent it has not been previously exercised, an
Option or Stock Purchase Right will terminate immediately prior to the
consummation of such proposed action.

           (c) Merger or Asset Sale. In the event of a merger of the Company
               --------------------
with or into another corporation, or the sale of substantially all of the assets
of the Company, each outstanding Option and Stock Purchase Right shall be
assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the event
that the successor corporation refuses to assume or substitute for the Option or
Stock Purchase Right,

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<PAGE>

the Optionee shall fully vest in and have the right to exercise the Option or
Stock Purchase Right as to all of the Optioned Stock, including Shares as to
which it would not otherwise be vested or exercisable. If an Option or Stock
Purchase Right becomes fully vested and exercisable in lieu of assumption or
substitution in the event of a merger or sale of assets, the Administrator shall
notify the Optionee in writing or electronically that the Option or Stock
Purchase Right shall be fully exercisable for a period of fifteen (15) days from
the date of such notice, and the Option or Stock Purchase Right shall terminate
upon the expiration of such period. For the purposes of this paragraph, the
Option or Stock Purchase Right shall be considered assumed if, following the
merger or sale of assets, the option or right confers the right to purchase or
receive, for each Share of Optioned Stock subject to the Option or Stock
Purchase Right immediately prior to the merger or sale of assets, the
consideration (whether stock, cash, or other securities or property) received in
the merger or sale of assets by holders of Common Stock for each Share held on
the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided, however, that if such consideration received
in the merger or sale of assets is not solely common stock of the successor
corporation or its Parent, the Administrator may, with the consent of the
successor corporation, provide for the consideration to be received upon the
exercise of the Option or Stock Purchase Right, for each Share of Optioned Stock
subject to the Option or Stock Purchase Right, to be solely common stock of the
successor corporation or its Parent equal in fair market value to the per share
consideration received by holders of Common Stock in the merger or sale of
assets.

     13. Time of Granting Options and Stock Purchase Rights. The date of grant
of an Option or Stock Purchase Right shall, for all purposes, be the date on
which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Administrator. Notice
of the determination shall be given to each Service Provider to whom an Option
or Stock Purchase Right is so granted within a reasonable time after the date of
such grant.

     14. Amendment and Termination of the Plan.
         -------------------------------------

          (a) Amendment and Termination. The Board may at any time amend, alter,
              -------------------------
suspend or terminate the Plan.

          (b) Stockholder Approval. The Board shall obtain stockholder approval
              --------------------
of any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws.

          (c) Effect of Amendment or Termination. No amendment, alteration,
              ----------------------------------
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to Options or Stock Purchase
Rights granted under the Plan prior to the date of such termination.

                                      -12-
<PAGE>

     15. Conditions Upon Issuance of Shares.
         ----------------------------------

          (a) Legal Compliance. Shares shall not be issued pursuant to the
              ----------------
exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

          (b) Investment Representations. As a condition to the exercise of an
              --------------------------
Option, the Administrator may require the person exercising such Option to
represent and warrant in the Option Agreement and/or at the time of any such
exercise that the Shares are being purchased only for investment and without any
present intention to sell or distribute such Shares if, in the opinion of
counsel for the Company, such a representation is required or recommended.

     16. Inability to Obtain Authority. The inability of the Company to obtain
         -----------------------------
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

     17. Reservation of Shares. The Company, during the term of this Plan, shall
         ---------------------
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     18. Stockholder Approval. The Plan shall be subject to approval by the
         --------------------
stockholders of the Company within twelve (12) months after the date the Plan is
adopted. Such stockholder approval shall be obtained in the degree and manner
required under Applicable Laws.<PAGE>

                               NEXSAN CORPORATION.

                             STOCK OPTION AGREEMENT

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

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

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

         SECTION 1 Grant of Option
                   ---------------

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

         SECTION 2 Exercisability
                   --------------

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

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

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

<PAGE>

         SECTION 3 Method of Exercise
                   ------------------

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

         SECTION 4 Death
                   -----

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

         SECTION 5 Investment Representations
                   --------------------------

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

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

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

                  The Optionee understands and agrees that:
<PAGE>

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

         SECTION 8 Nonassignability
                   ----------------

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

<PAGE>

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

         SECTION 9 No Right of Employment
                   ----------------------

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

         SECTION 10 421(b) Disqualifying Disposition Notice
                    ---------------------------------------

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

         SECTION 11 Plan Provisions to Prevail
                    --------------------------

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

         SECTION 12 Notices
                    -------

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

         SECTION 13 Successors and Assigns
                    ----------------------

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

<PAGE>

         SECTION 14 Governing Law
                    -------------

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

         SECTION 15 Severability
                    ------------

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

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

                                            NEXSAN CORPORATION

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

                                            OPTIONEE:

                                            /s/ Martin Boddy
                                            -----------------------------
                                            Address: 5 Duck Island
                                                     ------------------------
                                                     Duffield, Derby DE56 4EZ
                                                     ------------------------
                                                     ------------------------

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