Document:

Unassociated Document

    
      Exhibit
4.1

      

      THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR
TRANSFERRED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SECURITIES IS
EFFECTIVE UNDER THE SECURITIES ACT OR (II) THE TRANSACTION IS EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT AND, IF THE ISSUER REQUESTS, AN OPINION
SATISFACTORY TO THE ISSUER TO SUCH EFFECT  HAS BEEN RENDERED BY
COUNSEL.

      

      WARRANT
TO PURCHASE

      

      SHARES OF
COMMON STOCK

      

      OF

      

      OCZ
TECHNOLOGY GROUP, INC.

       

      
        
          	
                  Warrant
      No.: _______________

                	
                  Number
      of Shares:  _______________

                
	
                  Date
      of Issuance: November 2,
      2010

                	 
      

        

      

       

      FOR VALUE
RECEIVED, subject to the provisions hereinafter set forth, the undersigned, OCZ
Technology Group, Inc., a Delaware corporation (together with its successors and
assigns, the “Issuer”),
hereby certifies that __________ or its registered assigns is entitled to
subscribe for and purchase, during the Term (as hereinafter defined), up to
_______________ (__________) shares of the duly authorized, validly issued,
fully paid and non-assessable Common Stock of the Issuer, par value $0.0025 per
share (the “Common
Stock”), at an exercise price per share equal to $5.25 (the “Warrant
Price”), subject to the provisions and upon the terms and conditions
hereinafter set forth.  Capitalized terms used in this Warrant and not
otherwise defined herein shall have the respective meanings specified in Section
8 hereof.

      

      1. Term.  This
Warrant shall be exercisable six months and one day after the Date of Issuance
set forth above (the “Exercise
Date”) and shall expire at 5:00 p.m., Eastern Time, on the five (5) year
anniversary of the Date of Issuance (such period, the “Term”).

       

      2. Method of Exercise; Payment;
Issuance of New Warrant; Transfer and Exchange.

       

      (a)
Time of
Exercise.  The purchase rights represented by this Warrant may
be exercised in whole or in part at any time during the Term.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      (b)
Method of
Exercise.

       

      (i) General.  The
Holder hereof may exercise this Warrant, in whole or in part, by the surrender
of this Warrant, with the Notice of Exercise attached hereto duly executed, at
the principal office of the Issuer, and the payment to the Issuer of an amount
of consideration therefor equal to the Warrant Price multiplied by the number of
shares of Warrant Stock with respect to which this Warrant is then being
exercised, payable at such Holder’s election (A) by certified or official bank
check or by wire transfer to an account designated by the Issuer, (B) by
“cashless exercise” in accordance with Section 2(b)(ii), or (C) by a combination
of the foregoing methods of payment selected by the Holder of this
Warrant.

       

      (ii) Cashless
Exercise.  In lieu of exercising this Warrant by payment of
cash, the Holder may exercise this Warrant by a “cashless exercise” and shall
receive the number of shares of Common Stock computed using the following
formula:

       

      X = Y - (A)(Y)

                       B

      

      
        	
                Where

              	
                X
      =

              	
                the
      number of shares of Common Stock to be issued to the
    Holder;

              

      

      

      
        	
                 
      

              	
                Y
      =

              	
                the
      number of shares of Common Stock purchasable upon exercise of all of the
      Warrant or, if only a portion of the Warrant is being exercised, the
      portion of the Warrant being
exercised;

              

      

      

      
        	
                 
      

              	
                A
      =

              	
                the
      Warrant Price; and

              

      

      

      
        	
                 
      

              	
                B
      =

              	
                the
      Per Share Market Value of one share of Common Stock on the date of
      exercise.

              

      

      

      (c)
Issuance of Stock
Certificates.  In the event of any exercise of the rights
represented by this Warrant in accordance with and subject to the terms and
conditions hereof, (i) certificates for the shares of Warrant Stock so
purchased shall be dated the date of such exercise and delivered to the Holder
hereof within a reasonable time, not exceeding three (3) Business Days (as
defined in the Purchase Agreement) after such exercise, and the Holder hereof
shall be deemed for all purposes to be the holder of the shares of Warrant Stock
so purchased as of the date of such exercise, and (ii) unless this Warrant
has expired, a new Warrant representing the number of shares of Warrant Stock,
if any, with respect to which this Warrant shall not then have been exercised
(less any amount thereof which shall have been canceled in payment or partial
payment of the Warrant Price as hereinabove provided) shall also be issued to
the Holder hereof at the Issuer’s expense within such time.

       

      (d)
Compliance with Securities
Laws.

       

      (i) The
Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant or
the shares of Warrant Stock to be issued upon exercise hereof are being acquired
solely for the Holder’s own account and not as a nominee for any other party,
and not with a view to or in connection with a distribution, and that the Holder
will not offer, sell or otherwise dispose of this Warrant or any shares of
Warrant Stock to be issued upon exercise hereof except pursuant to an effective
registration statement, or an exemption from registration, under the Securities
Act of 1933, as amended (the “Securities
Act”) and any applicable state securities laws.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (ii) Except as
provided in paragraph (iii) below, this Warrant and all certificates
representing shares of Warrant Stock issued upon exercise hereof shall be
stamped or imprinted with a legend in substantially the following
form:

       

      THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR
TRANSFERRED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SECURITIES IS
EFFECTIVE UNDER THE SECURITIES ACT OR (II) THE TRANSACTION IS EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT AND, IF THE ISSUER REQUESTS, AN OPINION
SATISFACTORY TO THE ISSUER TO SUCH EFFECT HAS BEEN RENDERED BY
COUNSEL.

      

      (iii) Notwithstanding
the foregoing, the legend requirement set forth in Section 2(d)(ii) shall
terminate with respect to certificates representing shares of Warrant Stock
issued upon exercise of the Warrant immediately upon the effectiveness of a
registration statement covering the sale of the Warrant Stock; provided, that for any
exercise after six months but prior to one year from the Date of Issuance, the
Holder represents to the Issuer and its transfer agent that the sale is being or
will be made pursuant to and in compliance with the registration statement or
Rule 144 under the Securities Act.

       

      3. Stock Fully Paid;
Covenants.

       

      (a)
Stock Fully
Paid.  The Issuer represents, warrants, covenants and agrees
that all shares of Warrant Stock which may be issued upon the exercise of this
Warrant or otherwise hereunder will, upon issuance, be duly authorized, validly
issued, fully paid and non-assessable and free from all taxes, liens and charges
created by or through the Issuer.  The Issuer further covenants and
agrees that during the Term, the Issuer will at all times have authorized and
reserved for the purpose of the issue upon exercise of this Warrant a sufficient
number of shares of Common Stock to provide for the exercise of this
Warrant.

       

      (b)
Covenants.  The
Issuer shall not by any action including, without limitation, amending the
Issuer’s Certificate of Incorporation, as amended, or Bylaws, as amended
(collectively, the “Charter
Documents”) of the Issuer or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any
other action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, including without limitation (i) permitting the par
value, if any, of its Common Stock to exceed the Warrant Price, (ii) amending or
modifying any provision of the Charter Documents in any manner that would have a
material adverse effect on the rights of the Holders of the Warrants, and
(iii) take all such action as may be reasonably necessary in order that the
Issuer may validly and legally issue fully paid and nonassessable shares of
Common Stock, free and clear of any liens, claims, encumbrances and restrictions
(other than as provided herein or under applicable securities laws) upon the
exercise of this Warrant.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (c)
Loss, Theft, Destruction of
Warrants.  Upon receipt of evidence satisfactory to the Issuer
of the ownership of and the loss, theft, destruction or mutilation of any
Warrant and, in the case of any such loss, theft or destruction, upon receipt of
indemnity or security satisfactory to the Issuer or, in the case of any such
mutilation, upon surrender and cancellation of such Warrant, the Issuer will
make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant,
a new Warrant of like tenor and representing the right to purchase the same
number of shares of Common Stock.

       

      4. Adjustments Affecting Common
Stock.

       

      (a)
Reclassification, Splits,
Dividends, etc.

       

      (i) If at any
time or from time to time after the Date of Issuance and prior to the exercise
in full of this Warrant or the expiration of the Term, there shall be any
reclassification or change of the Common Stock issuable upon exercise of this
Warrant, the Issuer shall execute a new Warrant, providing that the Holder of
this Warrant shall have the right to exercise such new Warrant (after the
Exercise Date), in substantially the form hereof, and upon such exercise to
receive, in lieu of each share of Common Stock theretofore issuable upon
exercise of this Warrant, the number and kind of shares of stock, other
securities, money or property receivable upon such reclassification or change by
a holder of one share of Common Stock.  Such new Warrant shall provide
for adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 4.

       

      (ii) If at any
time or from time to time after the Date of Issuance and prior to the exercise
in full of this Warrant or the expiration of the Term, the Issuer shall split,
subdivide or combine its Common Stock, then the Warrant Price shall be
proportionately decreased in the case of a split or subdivision or increased in
the case of a combination.  If at any time or from time to time after
the Date of Issuance and prior to the exercise in full of this Warrant or the
expiration of the Term, the Issuer shall pay a stock dividend or other stock
distribution with respect to the Common Stock (except any distribution
specifically provided for in this Section 4(a)), then the Warrant Price
shall be adjusted, from and after the date of determination of the shareholders
entitled to receive such dividend or distribution, to that price determined by
multiplying the Warrant Price in effect immediately prior to such date of
determination by a fraction (A) the numerator of which shall be the total number
of shares of the Common Stock outstanding immediately prior to such dividend or
distribution, and (B) the denominator of which shall be the total number of
shares of the Common Stock outstanding immediately after such dividend or
distribution.

       

      (iii) After any
adjustment of the Warrant Price pursuant to Section 4(a), the number of
shares of Warrant Stock issuable at the new Warrant Price shall be adjusted to
the number obtained by (i) multiplying the number of shares of Warrant
Stock issuable upon exercise of this Warrant immediately before such adjustment
by the Warrant Price in effect immediately before such adjustment and
(ii) dividing the product so obtained by the new Warrant
Price.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (b)
Form of Warrant after
Adjustments.  The form of this Warrant need not be changed
because of any adjustments in the Warrant Price or the number and kind of
securities purchasable upon the exercise of this Warrant.

       

      5. Notice of
Adjustments.  Whenever the Warrant Price shall be adjusted
pursuant to Section 4 hereof (for purposes of this Section 5, each an
“adjustment”), the Issuer shall cause one of its Chief Executive Officer, Chief
Financial Officer or other appropriate officer to prepare and execute a
certificate setting forth, in reasonable detail, the event requiring the
adjustment, the amount of the adjustment, the method by which such adjustment
was calculated (including a description of the basis on which the Board of
Directors of the Issuer (the “Board”)
made any determination hereunder), and the Warrant Price after giving effect to
such adjustment, and shall cause copies of such certificate to be delivered to
the Holder of this Warrant promptly after each adjustment.

       

      6. Fractional
Shares.  No fractional shares of Warrant Stock will be issued
in connection with and exercise hereof. If any fraction of a share of Common
Stock would, except for the provisions of this Section, be issuable on the
exercise hereof, the Issuer will (i) round down and issue to the Holder
only the largest whole number of shares of Common Stock to which the Holder is
otherwise entitled if the fraction of a share otherwise issuable is less than
one-half, or (2) round up and issue to the Holder one additional share of
Common Stock in addition to the largest whole number of shares of Common Stock
to which the Holder is otherwise entitled, if the fraction of a share of Common
Stock otherwise issuable is equal to or greater than one-half.  The
determination as to whether or not any fractional shares are issuable shall be
based upon the total number of shares of Common Stock for which warrants are
being exercised at any one time by the Holder hereof, not upon each warrant
being exercised.

       

      7. Certain
Definitions.  For the purposes of this Warrant, the following
terms have the following meanings:

       

      “Holders”
means the Persons who from time to time own any Warrant.  The term
“Holder” means any one of the Holders.

      

      “Per Share Market
Value” means on any particular date (a) the closing bid price per share
of the Common Stock on such date on any national stock exchange on which the
Common Stock is then listed, or if there is no such price on such date, then the
closing bid price on such exchange on the date nearest preceding such date, or
(b) if the Common Stock is not then listed on any national stock exchange, the
closing bid price for a share of Common Stock in the over-the-counter market, as
reported by the OTC Bulletin Board or in the Pink Sheets, LLC (or similar
organization or agency succeeding to its functions of reporting prices) at the
close of business on such date, or (c) if the Common Stock is not then reported
by the OTC Bulletin Board or the Pink Sheets, LLC (or similar organization or
agency succeeding to its functions of reporting prices), then the fair market
value of a share of Common Stock as determined by the Board in good
faith.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      “Person”
means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization, any other
entity and a government or any department or agency thereof.

      

      “Purchase
Agreement” means the Securities Purchase Agreement of even date herewith,
by and among the Issuer and the purchasers listed on Schedule A attached
thereto.

      

      “Trading
Day” means any day on which the Common Stock are traded on the NASDAQ
Capital Market, or, if the NASDAQ Capital Market is not the principal trading
market for the Common Stock, then on the principal securities exchange or
securities market on which the Common Stock are then traded; provided that “Trading Day”
shall not include any day on which the Common Stock are scheduled to trade on
such exchange or market for less than 4.5 hours or any day that the Common Stock
are suspended from trading during the final hour of trading on such exchange or
market (or if such exchange or market does not designate in advance the closing
time of trading on such exchange or market, then during the hour ending at
4:00:00 p.m., New York time).

      

      “Warrants”
means the Warrants issued and sold pursuant to the Purchase Agreement including,
without limitation, this Warrant, and any other warrants of like tenor issued in
substitution or exchange therefor or herefor.

      

      “Warrant
Stock” means Common Stock issuable upon exercise of any Warrant or
Warrants or otherwise issuable pursuant to any Warrant or Warrants.

       

      8. Amendment and
Waiver.  Any term, covenant, agreement or condition in this
Warrant may be amended, and the observance of any term waived, only with the
written consent of the Issuer and the Holders of at least a majority of the
shares of Warrant Stock issuable upon exercise of the Warrants at the time
outstanding.  Any amendment effected in accordance with this Section
will be binding upon all Holders, the Issuer and their respective successors and
assigns.

       

      9. Governing
Law.  This Warrant will be governed by and construed and
enforced under the internal laws of the State of New York, without reference to
principles of conflict of laws or choice of laws.  EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

       

      10. Notices.  Any
notices and other communications required or permitted under this Warrant shall
be in writing and delivered in the manner and deemed effective as set forth in
the Purchase Agreement.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      11. Successors and
Assigns.  This Warrant and the rights evidenced hereby shall
inure to the benefit of and be binding upon the successors and assigns of the
Issuer, the Holder hereof and (to the extent provided herein) the Holders of
Warrant Stock issued pursuant hereto, and shall be enforceable by any such
Holder or Holders of Warrant Stock.

       

      12. Modification and
Severability.  If any provision of this Warrant is held to be
unenforceable under applicable law, such provision will be excluded from this
Warrant and the balance of the Warrant will be interpreted as if such provision
were so excluded and will be enforceable in accordance with its
terms.

       

      13. Headings.  The
headings of the Sections of this Warrant are for convenience of reference only
and shall not, for any purpose, be deemed a part of this
Warrant.

      

      [Signature page
follows]

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

      IN
WITNESS WHEREOF, the Issuer has executed this Warrant as of the day and year
first above written.

       

      
        	 	OCZ TECHNOLOGY GROUP,
      INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name:
      Arthur F. Knapp	 
	 	 	Title: Chief
      Financial Officer	 

      

    

    
      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      NOTICE
OF EXERCISE

      

      OCZ
TECHNOLOGY GROUP, INC.

      

      The
undersigned Holder, pursuant to the provisions of the Warrant delivered herewith
(the “Warrant”),
hereby irrevocably elects to purchase shares of Common Stock of OCZ Technology
Group, Inc.  Capitalized terms not elsewhere defined herein shall have
the meanings set forth in the Warrant.

      

      The
undersigned tenders herewith payment of the purchase price for such shares in
full, together with all applicable transfer taxes, if any, by (check applicable
method):

      

      
        	
                 
      

              	
                ____  a.

              	
                tendering
      cash payment of the Warrant Price per share required under the
      Warrant;

              
	 	 	 
	 	

                OR

              	 

      

      

      
        	
                 
      

              	
                ____  b.

              	
                utilizing
      the cashless exercise provisions of Section 2(b)(ii) of the
      Warrant.

              

      

       

      The exact
name in which stock certificate(s) should be issued and address for delivery
is:

      

      Name:                                                                           

      Address:                                                                    
                
_____________________________

       

      
        
          	 	“Holder”
	 	 
	 
      	
                  By:
      __________________________________________

                
	 
      	
                  Name:
    ________________________________________

                
	 
      	
                  Title
      (if applicable): ______________________________

                   

                
	 	Date: __________

        

      

      
        
          
          

        

        
          9Unassociated Document

    Exhibit
4.2

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE
SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS
REGISTERED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR OCZ
TECHNOLOGY GROUP, INC. SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT
REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED.

     

    OCZ
TECHNOLOGY GROUP, INC.

    COMMON
STOCK WARRANT

     

    Date of
Issuance:  November 2, 2010

     

    This
certifies that, for good and valuable consideration, receipt of which is hereby
acknowledged, Merriman Capital, Inc. (f/k/a Merriman Curhan Ford & Co.) (the
“Holder”) is entitled to
purchase, subject to and in accordance with the terms and conditions of this
Warrant, from OCZ Technology Group, Inc., a Delaware corporation (the “Issuer”), (i) 214,198 fully
paid and nonassessable shares of the Issuer’s common stock, $0.0025 par value
per share (“Common
Stock”), and (ii) a warrant (the “Subsequent Warrant”) to
acquire 53,549 shares of Common Stock at an exercise price of $5.25 per share,
in the form of Exhibit
A hereto.  This Warrant may be may be exercised at any time
during the period commencing on November 2, 2010 (the “Commencement Date”) and ending
at 5:00 p.m. California time, November 2, 2015 (the “Expiration Date”), at which
time this Warrant will expire and become void unless earlier terminated as
provided herein.  The shares of Common Stock for which this Warrant is
exercisable, as adjusted from time to time pursuant to the terms hereof, are
hereinafter referred to as the “Shares,” and the Shares and
the shares of Common Stock issuable upon exercise of any Subsequent Warrant, as
adjusted from time to time pursuant to the terms hereof or thereof, are
hereinafter referred to as the “Securities.”

     

    1. Exercise
Price.  The initial purchase price for the Shares shall be
$3.08125 per Share.  Such price shall be subject to adjustment
pursuant to the terms hereof (such price, as adjusted from time to time, is
hereinafter referred to as the “Exercise
Price”).  In addition to the Shares purchased upon payment of
the Exercise Price, such payment shall also entitle the Holder to receive a
Subsequent Warrant to purchase that number of shares of Common Stock equal to
twenty-five percent (25%) of the Shares so purchased, rounded down to the
nearest whole number.  For illustrative purposes, the exercise of this
Warrant and payment of $659,997.59 (in accordance with Section 2 of this
Warrant) would entitle the Holder to receive 214,198 Shares together with a
Subsequent Warrant to acquire 53,549 shares of Common Stock, and the exercise of
this Warrant and payment of $308,128.09 (in accordance with Section 2 of this
Warrant) would entitle the Holder to receive 100,001 Shares together with a
Subsequent Warrant to acquire 25,000 shares of Common Stock (in each case
assuming the Exercise Price has not been adjusted pursuant to Section 10 of this
Warrant).

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2. Exercise
and Payment.

     

    (a) Cash
Exercise.  At any time after the Commencement Date, this
Warrant may be exercised, in whole or in part, from time to time by the Holder,
during the term hereof, by surrender of this Warrant and the Notice of Exercise
attached hereto as Exhibit B (the “Notice of Exercise”) duly
completed and executed by the Holder to the Issuer at the principal executive
offices of the Issuer, together with payment in the amount obtained by
multiplying the Exercise Price then in effect by the number of Shares thereby
purchased, as designated in the Notice of Exercise.  Payment may be in
cash or by check payable to the order of the Issuer.

     

    (b) Net
Issuance.  In lieu of payment of the Exercise Price described
in Section 2(a), the Holder may elect to receive, without the payment by
the Holder of any additional consideration, Shares equal to the value of this
Warrant or any portion hereof by the surrender of this Warrant or such portion
to the Issuer, together with the Notice of Exercise duly executed and indicating
that the Holder is utilizing the net exercise provisions of Section 2(b) of this
Warrant (a “Net Issuance
Election”), at the principal executive offices of the
Issuer.  Thereupon, the Issuer shall issue to the Holder such number
of fully paid and nonassessable Shares as is computed using the following
formula (together with a Subsequent Warrant to purchase that number of
shares of Common Stock equal to fifty percent (50%) of the Shares covered by
this Warrant in respect of which the Net Issuance Election is made pursuant to
this Section 2):

     

    X = Y (A-B)

      A

    
    

     

    
      	where:	X =	the number of Shares
      to be issued to the Holder pursuant to this Section 2.
	 	 	 
	 	Y =	the number of Shares
      covered by this Warrant in respect of which the Net Issuance Election is
      made pursuant to this Section 2.
	 	 	 
	 	A =	the fair market
      value of one share of Common Stock, as determined in accordance with the
      provisions of this Section 2.
	 	 	 
	 	B =	the Exercise Price
      in effect under this Warrant at the time the Net Issuance Election is made
      pursuant to this Section 2.

    

     

    For
purposes of this Section 2, the “fair market value” per share of the Common
Stock shall mean:

     

    (i) If the
Common Stock is traded on a national securities exchange or admitted to unlisted
trading privileges on such an exchange, or is quoted on an over-the-counter
quotation system, the fair market value shall be the last reported sale price of
the Common Stock on such exchange or over-the-counter quotation system on the
last business day before the effective date of exercise of the Net Issuance
Election or if no such sale is made on such day, the mean of the closing bid and
asked prices such day on such exchange or over-the-counter quotation system;
and

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (ii) If the
Common Stock is not so listed or admitted to unlisted trading privileges and bid
and ask prices are not reported, the fair market value shall be the price per
share as determined in good faith by the Issuer’s board of
directors.

     

    3. Reservation
of Shares.  The Issuer hereby agrees that at all times there
shall be reserved for issuance and delivery upon exercise of this Warrant such
number of shares of Common Stock or other shares of capital stock of the Issuer
from time to time issuable upon exercise of this Warrant and any Subsequent
Warrant.  All such shares shall be duly authorized, and when issued
upon such exercise, shall be validly issued, fully paid and non-assessable, free
and clear of all liens, security interests, charges and other encumbrances or
restrictions on sale and free and clear of all preemptive rights.

     

    4. Delivery
of Stock Certificates.  Within a reasonable time after
exercise, in whole or in part, of this Warrant, the Issuer shall issue in the
name of and deliver to the Holder a certificate or certificates for the number
of fully paid and nonassessable shares of Common Stock which the Holder shall
have requested in the Notice of Exercise, together with a corresponding
Subsequent Warrant to purchase shares of Common Stock calculated pursuant to
Section 1 of this Warrant.  If this Warrant is exercised in part, the
Issuer shall deliver to the Holder a new Warrant for the unexercised portion of
this Warrant at the time of delivery of such stock certificate or certificates
and such Subsequent Warrant.

     

    5. No
Fractional Shares.  No fractional shares or scrip representing
fractional shares will be issued upon exercise of this Warrant.  If
upon any exercise of this Warrant a fraction of a share results, the Issuer will
pay the Holder the difference between the cash value of the fractional share and
the portion of the Exercise Price allocable to the fractional
share.

     

    6. Listing.  Prior
to the issuance of any shares of Common Stock upon exercise of this Warrant or
any Subsequent Warrant, the Issuer shall secure the listing of such shares of
Common Stock upon each national securities exchange, if any, upon which shares
of Common Stock are then listed (subject to official notice of issuance upon
exercise of this Warrant or any Subsequent Warrant) and shall maintain, so long
as any other shares of Common Stock shall be so listed, such listing of all
shares of Common Stock from time to time issuable upon the exercise of this
Warrant or any Subsequent Warrant; and the Issuer shall so list on each national
securities exchange, and shall maintain such listing of, any other shares of
capital stock of the Issuer issuable upon the exercise of this Warrant or any
Subsequent Warrant if and so long as any shares of the same class shall be
listed on such national securities exchange.

     

    7. Charges,
Taxes and Expenses.  The Issuer shall pay all transfer taxes or
other incidental charges, if any, in connection with the transfer of the Shares
purchased pursuant to the exercise hereof from the Issuer to the
Holder.

     

    8. Loss,
Theft, Destruction or Mutilation of Warrant.  Upon receipt by
the Issuer of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to the Issuer, and
upon reimbursement to the Issuer of all reasonable expenses incidental thereto,
and upon surrender and cancellation of this Warrant, if mutilated, the Issuer
will make and deliver a new Warrant of like tenor and dated as of such
cancellation, in lieu of this Warrant.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    9. Saturdays,
Sundays, Holidays, Etc.  If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall be a Saturday or a Sunday or shall be a legal holiday, then such action
may be taken or such right may be exercised on the next succeeding weekday that
is not a legal holiday.

     

    10. Adjustment
of Exercise Price and Number of Securities.  The Exercise Price
and the number of and kind of securities purchasable upon exercise of this
Warrant shall be subject to adjustment from time to time as set forth
below.  In addition, prior to the exercise of this Warrant, the
exercise price of any Subsequent Warrant and the number of and kind of
securities purchasable upon exercise thereof shall also be subject to adjustment
from time to time as set forth below.

     

    (a) Subdivisions,
Combinations and Other Issuances.  If the Issuer shall at any
time after the date hereof but prior to the Expiration Date or exercise of this
Warrant subdivide its outstanding securities as to which purchase rights under
this Warrant exist, by split-up or otherwise, or combine its outstanding
securities as to which purchase rights under this Warrant exist, the number of
Securities as to which this Warrant is exercisable as of the date of such
subdivision or combination will be proportionately increased in the case of a
subdivision, or proportionately decreased in the case of a
combination.  Appropriate adjustments also will be made to the
Exercise Price and the exercise price of any Subsequent Warrant, but the
aggregate purchase price payable for the total number of Securities purchasable
under this Warrant and any Subsequent Warrant as of such date shall remain the
same.

     

    (b) Stock
Dividend.  If at any time after the date hereof but prior to
the Expiration Date or exercise of this Warrant the Issuer declares a dividend
or other distribution on Common Stock payable in Common Stock or Convertible
Securities without payment of any consideration by such holder for the
additional shares of Common Stock or the Convertible Securities (including the
additional shares of Common Stock issuable pursuant to the terms thereof), then
the number of Securities for which this Warrant and any Subsequent Warrant are
exercisable shall be increased as of the record date (or the date of such
dividend or distribution if no record date is set) for determining which holders
of Common Stock shall be entitled to receive such dividend or distribution, in
proportion to the increase in the number of outstanding shares (and shares of
Common Stock issuable pursuant to the terms of the Convertible Securities) of
Common Stock as a result of such dividend or distribution, and the Exercise
Price and the exercise price of any Subsequent Warrant shall be adjusted so that
the aggregate amount payable for the purchase of all the Securities issuable
under this Warrant and any Subsequent Warrant immediately after the record date
(or on the date of such dividend or distribution, if applicable) for such
dividend or distribution will equal the aggregate amount so payable immediately
before such record date (or on the date of such dividend or distribution, if
applicable).  As used herein, “Convertible Securities” means
evidences of indebtedness, shares of stock or other securities which are
convertible into or exchangeable for, with or without payment of additional
consideration, shares of Common Stock, either immediately or upon the arrival of
a specified date or the happening of a specified event or both.

     

    (c) Other
Distributions.  If at any time after the date hereof but prior
to the Expiration Date or exercise of this Warrant the Issuer distributes to
holders of its Common Stock, other than as part of its dissolution or
liquidation or the winding up of its affairs, any shares of its capital stock,
any evidence of indebtedness or any of its assets (other than cash, Common Stock
or Convertible Securities), then the Issuer may, at its option, either
(i) decrease the Exercise Price of this Warrant and the exercise price of
any Subsequent Warrant by an appropriate amount based upon the value distributed
on each share of Common Stock as determined in good faith by the Issuer’s board
of directors or (ii) provide by resolution of the Issuer’s board of
directors that on exercise of this Warrant or any Subsequent Warrant, the Holder
hereof shall thereafter be entitled to receive, in addition to the Securities
otherwise receivable on exercise hereof or thererof, the number of shares or
other securities or property which would have been received had this Warrant or
any Subsequent Warrant at the time been exercised.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d) Merger.  If
at any time after the date hereof but prior to the Expiration Date or exercise
of this Warrant there shall be a merger or consolidation of the Issuer with or
into another corporation when the Issuer is not the surviving corporation, then
the Holder shall thereafter be entitled to receive upon exercise of this
Warrant, upon payment of the aggregate Exercise Price then in effect, the number
of shares or other securities or property of the successor corporation resulting
from such merger or consolidation that would have been received by the Holder
for the Securities subject to this Warrant had this Warrant been exercised at
such time.

     

    (e) Reclassification,
Etc.  If at any time after the date hereof but prior to the
Expiration Date or exercise of this Warrant there shall be a change or
reclassification of the Securities as to which purchase rights under this
Warrant or any Subsequent Warrant exist into the same or a different number of
securities of any other class or classes, then the Holder shall thereafter be
entitled to receive upon exercise of this Warrant or any Subsequent Warrant,
upon payment of the Exercise Price or the exercise price of any Subsequent
Warrant then in effect, the number of shares or other securities or property
resulting from such change or reclassification that would have been received by
the Holder for the Securities subject to this Warrant or any Subsequent Warrant
had this Warrant or any Subsequent Warrant been exercised at such
time.

     

    11. Notice of
Adjustments; Notices.  Whenever the Exercise Price, the
exercise price of any Subsequent Warrant, or the number of Securities
purchasable under this Warrant or any Subsequent Warrant is adjusted pursuant to
Section 10 hereof, the Issuer shall execute and deliver to the Holder within a
reasonable time after exercise a certificate setting forth, in reasonable
detail, the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated, the Exercise Price hereof or the
exercise price of any Subsequent Warrant and number of and kind of securities
purchasable under this Warrant or any Subsequent Warrant after giving effect to
such adjustment, and shall cause a copy of such certificate to be mailed (by
first class mail, postage prepaid) to the Holder.

     

    12. No Rights
As Stockholder; Notice to Holders.  Nothing contained in this
Warrant will be construed as conferring upon the Holder or its permitted
transferees the right to vote or to receive dividends or to consent or to
receive notice as a stockholder in respect of any meeting of stockholders for
the election of directors of the Issuer or of any other matter, or any rights
whatsoever as stockholders of the Issuer.  The Issuer will notify the
Holder by registered mail if at any time prior to the expiration or exercise in
full of the Warrant, any of the following events occur:

     

    (a) a
dissolution, liquidation or winding up of the Issuer shall be
proposed;

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b) a capital
reorganization or reclassification of the Common Stock (other than a subdivision
or combination of the outstanding Common Stock and other than a change in the
par value of the Common Stock) or any consolidation or merger of the Issuer with
or into another corporation (other than a consolidation or merger in which the
Issuer is the continuing corporation and that does not result in any
reclassification or change of Common Stock outstanding) or in the case of any
sale or conveyance to another corporation of the property of the Issuer as an
entirety or substantially as an entirety; or

     

    (c) a taking
by the Issuer of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any
dividend (other than a cash dividend) or other distribution, any right to
subscribe for, purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other rights.

     

    Such
giving of notice will be simultaneous with the giving of notice to holders of
Common Stock.  Such notice must specify the record date or the date of
closing the stock transfer books, as the case may be.  Failure to
provide such notice will not affect the validity of any action taken in
connection with such dividend, distribution or subscription rights, or proposed
merger, consolidation, sale, conveyance, dissolution, liquidation or winding
up.

     

    13. Restricted
Securities.  The Holder understands that this Warrant and,
subject to the last sentence of this Section 13, any Subsequent Warrant or
Securities purchasable hereunder and thereunder constitute “restricted
securities” under the federal securities laws inasmuch as they are, or will be,
acquired from the Issuer in transactions not involving a public offering and
accordingly may not, under such laws and applicable regulations, be resold or
transferred without registration under the Securities Act of 1933, as amended
(the “1933 Act”) or an
applicable exemption from such registration.  The Holder further
acknowledges that the securities legend set forth below shall be placed on any
Securities issued to the Holder upon exercise of this Warrant and any Subsequent
Warrant:

     

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT
AND APPLICABLE STATE SECURITIES LAWS OR OCZ TECHNOLOGY GROUP, INC. SHALL HAVE
RECEIVED AN OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER
THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED.

     

    Notwithstanding
the foregoing, if the Holder elects a net issuance under Section 2(b), the
Shares and the Subsequent Warrant will be deemed to purchased under
Section 3(a)(9) of the 1933 Act and will not be “restricted securities” or
subject to legend if the Warrant has been held for a period of one year or
more.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    14. Certification
of Investment Purpose.  Unless a current registration statement
under the 1933 Act shall be in effect with respect to the securities to be
issued upon exercise of this Warrant, the Holder covenants and agrees that, at
the time of exercise hereof, it will deliver to the Issuer a written
certification executed by the Holder that the securities acquired by the Holder
upon exercise hereof are for the account of the Holder and acquired for
investment purposes only and that such securities are not acquired with a view
to, or for sale in connection with, any distribution thereof.

     

    15. Disposition;
Transferability; Registration.

     

    (a) Disposition.  The
Holder hereby agrees not to make any disposition of this Warrant, any Subsequent
Warrant or any Securities purchased hereunder or thereunder unless and
until:

     

    (i) The
Holder shall have notified the Issuer of the proposed disposition and provided a
written summary of the terms and conditions of the proposed disposition;
and

     

    (ii) The
Holder shall have complied with all requirements of this Warrant and any
Subsequent Warrant applicable to the disposition.

     

    The
Issuer shall not be required (i) to transfer on its books any Warrant,
Subsequent Warrant, or Securities which have been sold or transferred in
violation of the provisions of this Section 15 or (ii) to treat as the
owner of the Warrant, Subsequent Warrant, or Securities, or otherwise to accord
voting, dividend or other rights to, any transferee to whom the Warrant,
Subsequent Warrant, or Securities have been transferred in contravention of the
terms of this Warrant or any Subsequent Warrant.

     

    (b) Transfer.  This
Warrant shall be transferable only on the books of the Issuer maintained at its
principal office in San Jose, California, or wherever its principal office may
then be located, upon delivery thereof duly endorsed by the Holder or by its
duly authorized attorney or representative, accompanied by proper evidence of
succession, assignment or authority to transfer.  Upon any
registration of transfer, the Issuer shall execute and deliver new Warrants to
the person entitled thereto.

     

    (c) Limitations
on Transfer.  This Warrant may not be sold, transferred,
assigned or hypothecated (any such action, a “Transfer”) by the Holder
except to (i) one or more persons, each of whom on the date of transfer is
an officer of the Holder; (ii) a general partnership or general
partnerships, the general partners of which are the Holder and one or more
persons, each of whom on the date of transfer is an officer of the Holder;
(iii) a successor to the Holder in any merger or consolidation; (iv) a
purchaser of all or substantially all of the Holder’s assets; (v) any
person receiving this Warrant from one or more of the persons listed in this
Section 15(c) at such person’s death pursuant to will, trust or the laws of
intestate succession, or (vi) after one year from the date of this Warrant,
any person receiving the Warrant from the persons listed in this
Section 15.  This Warrant may be divided or combined, upon
request to the Issuer by the Holder, into a certificate or certificates
representing the right to purchase the same aggregate number of
Shares.  If at the time of a Transfer, a registration statement is not
in effect to register this Warrant, the Issuer may require the Holder to make
such representations, and may place such legends on certificates representing
this Warrant, as may be reasonably required in the opinion of counsel to the
Issuer to permit a Transfer without such registration.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (d)           Piggyback
Registration.   If the Issuer at any time after the
Commencement Date proposes to file a registration statement under the 1933 Act
registering shares of its Common Stock, whether for sale for the account of the
Issuer or for the account of any holder of securities of the Issuer, the Issuer
will provide written notice to the Holder at least fifteen (15) days prior to
the anticipated filing date of its intention to file such registration
statement.  If within ten (10) days after receipt of such notice the
Holder provides a written request to the Issuer specifying the Securities that
the Holder requests be included in the registration statement, the Issuer will
use commercially reasonable efforts to include in the registration statement the
Securities so requested by the Holder.  Notwithstanding the foregoing,
(i) the notice and registration rights of this section shall not apply to any
registration statement on Form S-4, Form S-8, or any similar form or to any
initial public offering of Common Stock, (ii) the Issuer may at any time prior
to the effective date of the registration statement determine for any reason not
to register or to delay registration of such securities, and (iii) in an
underwritten offering, if any underwriter advises the Issuer that, in its
opinion, the number of securities requested to be included in such registration
exceeds the number that can be sold in such offering, the Issuer may exclude
from the registration statement any or all of the Securities.  The
notice and registration rights set forth in this Section shall expire and be of
no further force and effect on the earlier of (x) the inclusion in any effective
registration statement of all of the Securities, provided such registration is
continuously effective for at least 6 months, (y) the date on which all of the
Securities may be sold pursuant to Rule 144 under the 1933 Act, or (z) the
two-year anniversary of the Commencement Date.

     

    16. Miscellaneous.

     

    (a) Construction.  Unless
the context indicates otherwise, the term “Holder” shall include any
transferee or transferees of this Warrant pursuant to Section 15(b), and
the term “Warrant” shall
include any and all warrants outstanding pursuant to this Warrant, including
those evidenced by a certificate or certificates issued upon division, exchange,
substitution or transfer pursuant to Section 15.

     

    (b) Restrictions.  By
receipt of this Warrant, the Holder represents that the Warrant is being
acquired for the account of the Holder and for investment purposes, not with a
view to, or for sale in connection with, any distribution of such
Warrant.

     

    (c) Notices.  Unless
otherwise provided, any notice required or permitted under this Warrant shall be
given in writing and shall be deemed effectively given upon personal delivery to
the party to be notified or three (3) days following deposit with the United
States Post Office, by registered or certified mail, postage prepaid and
addressed to the party to be notified (or one (1) day following timely deposit
with a reputable overnight courier with next day delivery instructions), or upon
confirmation of receipt by the sender of any notice by facsimile transmission,
at the address indicated below or at such other address as such party may
designate by ten (10) days’ advance written notice to the other
parties.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              To
      the Holder:

            	
              Merriman
      Capital, Inc.

            

    

    
      	
               
      

            	
              600
      California Street, 9th Floor

            

    

    
      	
               
      

            	
              San
      Francisco, CA 94108

            

    

    
      	
               
      

            	
              Attention: 
      Michael C. Doran, General Counsel

            

    

    

    
      	
            	
              To
      the Issuer: 

            	
              OCZ
      Technology Group, Inc.

            

    

    6373 San Ignacio Avenue

    San Jose, California 95119

    Attention: Chief Financial
Officer

    

    (d) Governing
Law.  This Warrant shall be governed by and construed under the
laws of the State of California as applied to agreements among California
residents entered into and to be performed entirely within
California.

     

    (e) Entire
Agreement.  This Warrant, the annexes, exhibits and schedules
hereto, and the documents referred to herein, constitute the entire agreement
and understanding of the parties hereto with respect to the subject matter
hereof, and supersede all prior and contemporaneous agreements and
understandings, whether oral or written, between the parties hereto with respect
to the subject matter hereof.

     

    (f) Binding
Effect.  This Warrant and the various rights and obligations
arising hereunder shall inure to the benefit of and be binding upon the Issuer
and its successors and assigns, and Holder and its successors and
assigns.

     

    (g) Waiver;
Consent.  This Warrant may not be changed, amended, terminated,
augmented, rescinded or discharged (other than by performance), in whole or in
part, except by a writing executed by the parties hereto, and no waiver of any
of the provisions or conditions of this Warrant or any of the rights of a party
hereto shall be effective or binding unless such waiver shall be in writing and
signed by the party claimed to have given or consented thereto.

     

    (h) Severability.  If
one or more provisions of this Warrant are held to be unenforceable under
applicable law, such provision shall be excluded from this Warrant and the
balance of the Warrant shall be interpreted as if such provision were so
excluded and the balance shall be enforceable in accordance with its
terms.

     

    (i) Counterparts.  This
Warrant may be signed in several counterparts, each of which shall constitute an
original and all of which taken together shall constitute one and the same
instrument.

     

    [Remainder of page intentionally left
blank.  Signature page follows.]

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    IN
WITNESS WHEREOF, the Issuer has executed this Warrant as of the date and year
first above written.

     

    
      
        	 	
                OCZ
      TECHNOLOGY GROUP, INC.

              	 
	 	 	 	 
	
                
                    
      

                

              	
                By:
      

              	

                  
      

              	 
	 	 	Name:
      Arthur F. Knapp	 
	 	 	Title:
      Chief Financial Officer	 
	 	 	 	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    IN
WITNESS WHEREOF, the Holder has executed this Warrant as of the date and year
first above written.

    
       

      
        
          	 	
                  MERRIMAN
      CAPITAL, INC.

                	 
	 	 	 	 
	
                  

                      
      

                  

                	
                  By:
      

                	
                  

                      
      

                  

                	 
	 	 	 	 
	 	Its: 	 
      	 
	 

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

     

    FORM
OF SUBSEQUENT WARRANT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
B

     

    NOTICE
OF EXERCISE

     

    
      	
              To:  OCZ
      Technology Group, Inc.

            

    

     

    1. The
undersigned hereby elects to
purchase ________________________________________ shares of common stock,
$0.0025 par value per share (“Stock”) of OCZ Technology Group, Inc., a Delaware
corporation (the “Issuer”), pursuant to the terms of the attached
Warrant.

     

    2. The
undersigned tenders herewith payment of the exercise price for such shares in
full by (check applicable
method):

     

    
      	
               
      

            	
              ____  a.

            	
              tendering
      cash payment of the exercise price pursuant to Section 2(a) of the
      attached Warrant;

            

    

    

    OR

    

    
      	
               
      

            	
              ____  b.

            	
              utilizing
      the net exercise provisions of Section 2(b) of the attached
      Warrant.

            

    

     

    3. Attached
as Exhibit A is
an investment representation letter addressed to the Issuer and executed by the
undersigned as required by Section 14 of the Warrant.

     

    4. Please
issue certificates representing the shares of Stock purchased hereunder and the
Subsequent Warrant (as defined in the Warrant) in the name of the undersigned or
as otherwise indicated below.

     

    5. Please
issue a new Warrant for the unexercised portion of the attached Warrant, if any,
in the name of the undersigned.

    
       

      
        	 	Holder
      Name: _____________________________
	 	 
	Dated:
      ______________	Signature: 
      _______________________________
	 	By: 
      ____________________________________
	 	Its: _____________________________________

      

       

      
        
          	Name for Certificate
      and Subsequent Warrant (if not Holder):	___________________________________________________________ 
	 	 
	Mailing
      Address: 	___________________________________________________________
	 	___________________________________________________________
	 	___________________________________________________________

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