Document:

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                             CONTRACT OF EMPLOYMENT
                             ----------------------
  Dated January 4, 2001

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

AND

2.   The Employee: Gary Watson of 25 Wharpedale Road Long Eaton, Nottingham
                   ("You")

1.   EMPLOYMENT JOB TITLE MOBILITY

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

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

2.   DURATION

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

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

3.   YOUR DUTIES

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

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

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

     3.3    You will at all time endeavour to promote the interest and
            reputation of the Company.

4.   PAY AND BENEFITS IN KIND

     4.1    We will pay you a basic salary of $103,000 a year during your first
            year of employment; a basic salary of $178,000 a year during your
            second year of employment; and thereafter, for every subsequent year
            of employment a basic salary 5% greater than the basic salary paid
            to you during your previous year of employment. We will pay this in
            equal instalments by credit transfer to your nominated bank or
            building society account in Great Britain on or about the last
            business day of each monthly pay period. Your salary is deemed to
            include any fees receivable for holding any office in the Company or
            its Associates. We will review your salary annually and the Company
            may in its absolute discretion increase but not reduce your salary
            by such amount if any as it thinks fit.

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

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

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

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

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

5.   HOLIDAY ENTITLEMENT

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

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

     5.3    If you leave during a holiday year, your holiday entitlement will
            be recalculated as (1 1/2) days holiday for each complete month
            worked in the year. If you have taken less holiday than this you
            will be paid in lieu. If you have taken more holiday than this,
            you will have to repay the excess holiday pay. One day's holiday
            pay will be deemed to be 1/260th of your annual basic salary.

6.   NOTIFICATION OF ABSENCE

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

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

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

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7.   SICK PAY

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

8.   CONFIDENTIALITY

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

9.   RESTRICTIONS ON COMPETITION

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

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

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            employment.

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

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

10.  DISMISSAL

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

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

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

            10.1.3    are absent due to sickness for at least 120 consecutive
                      days, or an aggregate of 80 days in a period of 52
                      consecutive weeks;

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

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

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

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

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

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

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

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

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

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

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

11.  MISCELLANEOUS

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

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

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

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

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

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

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

12.  STATUTORY PARTICULARS

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

     12.1   Your continuous employment began on (insert).

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

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

SIGNED on behalf of the Employer by a duly authorised officer

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Sign                    /s/ Martin Boddy

Print                   Martin Boddy

on (date)               January 4, 2001

in the presence of
witness (sign)          /s/ Sharon Reid

     (print)                Sharon Reid

SIGNED by the Employee

Sign                    /s/ Gary Watson

Print                   Gary Watson

on (date)               January 4, 2001

in the presence of
witness (sign)          /s/ Sharon Reid

     (print)                Sharon Reid<PAGE>

                              EMPLOYMENT AGREEMENT

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

                              W I T N E S S E T H :

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

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

         1.       EMPLOYMENT

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

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

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

<PAGE>

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

          2.      COMPENSATION

                  2.1  Base Salary

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

                  2.2  Stock Options

                       Intentionally omitted.

                  2.3  Additional Compensation

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

                  2.4  Withholdings, Etc.

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

                  3.   BENEFITS

                       Executive shall be entitled to participate in all health
care, insurance, deferred compensation and other employee benefit plans
generally available to executives of the Company, consistent with the terms of
those plans as they may currently exist or be modified from time to time. 4.

                  4.   TERM AND TERMINATION

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

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

                       (a)  upon the death of Executive;

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

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

                       (d)  upon written notice by the Company of termination.

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                  4.3      Consequences of Termination

         In the event that the Company terminates Executive's employment
pursuant to Section 4.2 then (a) the Executive's Base Salary shall be prorated
as of the date of termination or resignation and such prorated amount shall be
paid to Executive, and (b) the Company shall make such other and further
payments to Executive as may be provided pursuant to the terms of any employee
benefit plan in which Executive is a participant at the time of termination, to
the extent payable upon such termination in accordance with such plans or
applicable Company policies. In addition, if the Company terminates Executive's
employment pursuant to Section 4.2(d), then the Company shall cause the
compensation payable to Executive pursuant to the Contract of Employment with
Nexsan Technologies, Ltd. to be increased by an amount equal to his Base Salary
otherwise payable under Section 2.1 hereof.

          5.  ADDITIONAL AGREEMENTS AND UNDERSTANDINGS

                  5.1      Employment Location

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

                  5.2      Reimbursement of Expenses

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

                  5.3      Company Property

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

                  5.4      Confidential Information

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         Executive agrees that, except in the good faith performance of his
duties and responsibilities under this Agreement or as required by order of a
court or governmental agency having jurisdiction, he will not at any time during
or after his employment with the Company use, reveal, divulge or make known to
any person or entity any confidential or proprietary knowledge or information
concerning the Company or its Affiliates, including without limitation any such
information concerning any equipment, facilities, customers, end users,
contracts, leases, operating and/or financial data and projections, processes,
developments, schedules, lists, plans or other matters relating to the business
of the Company or its Affiliates and will retain all knowledge and information
Executive acquired during his employment therewith relating to the business of
the Company or its Affiliates in trust in a fiduciary capacity for the sole
benefit of the Company, its Affiliates and their respective successors and
assigns. Executive's obligations under this Section 5.4 shall not apply to any
information that (i) is or becomes known to the general public under
circumstances involving no breach by Executive of this Agreement, (ii) is
generally disclosed to third parties (excluding counsel, accountants, financial
advisors, employees, agents and material creditors of the Company) by the
Company without restriction on such third parties, or (iii) is approved for
release by written authorization of the President of the Company.

                  5.5      Developments

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

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

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

                  5.6      Non-Competition

                  While employed hereunder and for a period of one (1) year
thereafter, Executive shall not (i) enter into the employment of, or act as a
consultant, director, officer, or

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employee of, or render any service or advice to, any other business,
partnership, association, corporation or other entity which directly engages in
competition in any material respect with any business presently carried on or
under development, or which hereafter during the period of his employment by the
Company shall be carried on or be under development by the Company and which is
then being carried on by the Company, in the United States or any foreign
country where such business is then or was within the one year period ending on
the date of termination conducted, other than the Company or any Affiliate (a
"Competing Business") or (ii) invest or otherwise acquire any interest, whether
as a shareholder, lender, partner, proprietor, vendor or otherwise, in any
Competing Business (excluding ownership of less than 2% of a class of securities
of a publicly_traded company). While employed hereunder and for a period of one
(1) year after termination of employment, Executive shall not encourage,
solicit, or attempt to induce (or assist others to encourage, solicit, or
attempt to induce) any customer of the Company or any user of products of the
Company to reduce, restrict, or terminate its business relationship with the
Company or any reseller which is a customer of the Company or its use of
products, or products which incorporate products, manufactured by the Company,
or to shift its business from the Company or any such reseller to any other
supplier of competing goods or services

                  5.7      Non-Solicitation

                           While employed hereunder and for a period of one (1)
year thereafter, Executive shallnot, directly or indirectly, entice, induce or
in any manner influence any person who is, or shall have been during such
period, in the service of the Company or its Affiliates, or employed or engaged
by or otherwise associated with any person or entity, to leave such service.

                  5.5      Survival, Rights and Remedies

                           The provisions of this Section 5 shall survive the
termination of this Agreement and the termination of Executive's employment with
the Company and shall run to and inure to the benefit of the Company and its
successors and assigns. Executive represents, warrants and acknowledges that he
has carefully read this Section 5, that he has had an opportunity to have the
provisions contained herein explained to him by his attorney, and that he
understands the provisions contained herein. Executive further acknowledges
that, by reason of his training, skills, experience and employment hereunder,
the services to be rendered by him under the provisions of this Agreement and
their value to the Company are of a special, unique and extraordinary character
and that it would be difficult or impossible to replace such services, and he
further acknowledges that a violation by him of any of the provisions of this
Section 5 could cause continuing material and irreparable injury to the Company
and that in such event money damages would not be readily calculable and the
Company would not have an adequate remedy at law. Executive acknowledges and
agrees that (i) the restrictions under this Section 5 are reasonable and will
not interfere with Executive's ability to earn a livelihood or impose upon him
any undue hardship, and (ii) any breach of the covenants, provisions and
restrictions contained in this Section 5 shall cause, and shall be deemed to be,
a fundamental and material breach of

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<PAGE>

Executive's fiduciary and contractual obligations to Employer. Therefore,
Executive agrees that the Company shall be authorized and entitled to obtain
from any court of competent jurisdiction, interim and permanent equitable
relief, including without limitation, injunctive relief, in the event of any
such breach or threatened breach of the provisions of this Section 5, together
with payment of reasonable attorneys' fees and disbursements and any other costs
of enforcement incurred in connection with such breach or threatened breach.
These rights and remedies shall be cumulative and shall be in addition to any
other rights or remedies whatsoever to which the Company shall otherwise be
entitled hereunder, at law or otherwise, including the right to seek damages
(including any consequential damages) which any court of competent jurisdiction
may deem appropriate.

          6.      APPLICABLE LAW; ARBITRATION

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

          7.      SUCCESSORS

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

          8.      MISCELLANEOUS

                  8.1      Entire Agreement

                                     - 7 -

<PAGE>

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

                  8.2      Notices

                           Every notice required by the terms of this Agreement
shall be given in writing by serving the same upon the party to whom it was
addressed personally or by registered or certified mail, return receipt
requested, at the address set forth below or at such other address as may
hereafter be designated by notice given in compliance with the terms hereof:

                           If to Executive: Paul Coxon
                                            ------------------------
                                                6 Bramcote Drive, Beeston
                                                -------------------------
                                                Nottingham, NG91AW U.K.
                                                -----------------------

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

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

                           with a copy to:    RubinBaum LLP
                                              30 Rockefeller Plaza
                                              New York, New York  10112
                                              Attn.:  Michael Emont, Esq.
                                              Facsimile No.:  (212) 698_7825

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

                  8.3      Other Agreements

           Executive hereby represents that he is not bound by the terms of any
agreement with any previous employer or other party to refrain from using or
disclosing any trade secret or confidential or proprietary information in the
course of his employment with the Company or to refrain from competing,

                                     - 8 -

<PAGE>

directly or indirectly, with the business of such previous employer or any other
party. Executive further represents that his performance of all the terms of
this Agreement and as an employee of the Company does not and will not breach
any agreement to keep in confidence proprietary information, knowledge or data
acquired by him in confidence or in trust prior to his employment with the
Company.

                  8.4      Assistance In Proceedings, Etc.

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

                  8.5      Waivers

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

                  8.6      Amendments in Writing

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

                  8.7      Severability

                           If any provision of this Agreement shall be held
invalid, illegal or unenforceable in any jurisdiction, for any reason,
including, without limitation, the duration of such provision, its geographical
scope or the extent of the activities prohibited or required by it, then, to the
full extent permitted by law, (a) all other provisions hereof shall remain in
full force and effect in such jurisdiction and

                                     - 9 -

<PAGE>

shall be liberally construed in order to carry out the intent of the parties
hereto an nearly as may be possible, (b) such invalidity, illegality or
unenforceability shall not affect the validity, legality or enforceability of
any other provision hereof, and (c) any court or arbitrator having jurisdiction
thereover shall have the power to reform such provision to the extent necessary
for such provision to be enforceable under applicable law.

                  8.8      Cooperation.

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

                  8.9      Protection Of Reputation.

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

                  8.10      Counterparts

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

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

                                             NEXSAN CORPORATION

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

                                             OPTIONEE:

                                             /s/ Paul Coxon
                                             ---------------------------

                                      - 10 -

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