Document:

Allis EX-10.48

    
      
        	 	
                EXHIBIT
                  10.48

              
	 	 
	
                September
                  2005

                Company
                  Fact Sheet

                 

                ALLIS-CHALMERS
                  ENERGY INC.

                AMEX:  
                  ALY

                 

                We're
                  All about Service

              	
                 

              
	
              	
                WWW.ALCHENERGY.COM

              
	 	 

      

       

      
        	
                Investor
                  Considerations:

              	 	
              
	 	 	Price
                (Sept. 16, 2005)	
                $10.20

              
	
                • 
                  Positioned
                  in High-Growth Niche Markets. Allis-
                  Chalmers strategically pursues markets that are growing faster
                  than the
                  oilfield services industry.

                 

                • 
                  Positive
                  Industry Backdrop. Approximately
                  80%-85% of ALY’s revenue is derived from natural gas drilling activities.
                  With national average gas prices in 2005 more than twice that of
                  2002,
                  natural gas drilling activity has moved to record highs. With industrywide
                  predictions of further increases in overall E&P spending in 2005 and
                  2006, the Company believes industry demand for its drilling services
                  will
                  continue to remain strong.

                 

                • 
                  Established
                  Growth Track Record. Since
                  its effective inception in 2001, ALY has grown its total revenues
                  at an
                  average annual rate of 115%, principally driven through strategic
                  acquisition. Likewise, EBITDA5)
                  has
                  grown from a slight loss in 2001 to $7.8 million in 2004 and to
                  $8.0
                  million for the first six months of 2005.

                 

                • 
                  Growth
                  Continuing into 2005.
                  Excluding any benefit from future acquisitions, and using the midpoint
                  of
                  its 2005 guidance, Allis-Chalmers expects to achieve annual growth
                  in 2005
                  of over 80% in revenues, a doubling of EBITDA, and potentially
                  fivetimes
                  the diluted EPS results of 2004. (2005
                  guidance was given on May 5, 2005 and has not been updated or reiterated
                  herewith.)

                 

                • 
                  Proven
                  Acquisition Expertise. ALY successfully
                  acquired and integrated ten organizations over the last four years,
                  including three in 2005. Given the highly fragmented nature of
                  the
                  oilfield service industry, strategic acquisitions are expected
                  to remain a
                  key driver fueling long term earnings growth.

                 

                •  
                  Improving
                  Balance Sheet. ALY
                  strengthened its balance sheet in 2004 bringing its net debt to
                  capital
                  below 40% at year-end 2004 from 87% at year-end 2003. Recently,
                  ALY
                  completed a secondary offering (8/05) of 5.8 million shares, with
                  1.8
                  million newly issued and expanded its bank credit facility
                  (7/05).

                 

                • 
                  Experienced
                  Management Team. Averaging
                  nearly 20 years of experience, the members of the management team
                  have
                  strong reputations and have developed long lasting relationships
                  with
                  major independent and small exploration and production
                  companies.

              	 	
                 

                Stock
                  Data

                
                  

                

                
                  Symbol
                    /
                    Exchange:                                                                                            
                    ALY / AMEX

                  52-Week
                    Range:                                                                                                     $1.75-$14.70

                  Diluted
                    Shares Outstanding 1):                                                                                   
                    16.9 mm

                  Market
                    Capitalization:                                                                                                 
                    $170 mm

                  Total
                    Enterprise Value (TEV) 2):                                                                                 
                    $205 mm

                  Avg.
                    Daily Stock Volume
                    (2005):                                                                                 154,000

                  Insider
                    Ownership 3):                                                                                                        
                    28.3%

                  Public
                    Float:                                                                                                                       
                    71.1%

                  Institutional
                    Ownership 4):                                                                                                  
                    N/A

                   

                  Financial
                    Data &
                    Guidance (FY
                    Dec; 12/31/04 audited)

                  
                    

                  

                  
                    Select
                      Income
                      Statement:                                                                
                      2004                   
                      2005E5)

                    Revenue:                                                                                       
                      $47.7
                      mm              
                      $87.6 mm

                    EBITDA
                      6):                                                                                      
                      $7.8
                      mm              
                       $15.9 mm

                    Diluted
                      EPS:                                                                                       
                      $0.09                    
                         $0.37

                    TEV
                      /
                      EBITDA:                                                                                   
                       26.3x                    
                         12.9x

                    P
                      /
                      E:                                                                                                 
                        
                      113.3x                 
                            27.6x

                     

                    Select
                      Balance
                      Sheet:                                                                      
                      2004                     
                      2Q05

                    Total
                      Cash:                                                                                      $7.3
                      mm                
                        $2.7 mm

                    Total
                      Debt:                                                                                     $30.5
                      mm               
                      $37.9 mm

                    Total
                      Stockholders’
                      Equity:                                                       
                      $35.1
                      mm               
                      $40.2 mm

                    Net
                      Debt / Net
                      Capital:                                                                      
                      39.7%                     
                      46.7%

                     

                    
                      Business
                        Composition

                      
                        

                      

                      EBITDA
                        Mix                                                                                       
                        2004                  
                        2005E5)

                      Casing
                        Services:                                                                                      
                        44%                      
                        32%

                      Directional
                        Drilling:                                                                                 
                        33%                      
                        32%

                      Compressed
                        Air
                        Drilling:                                                                        
                        23%                      
                        19%

                      Production
                        Services:                                                                                 
                        0%                        
                        9%

                      Rental
                        Tools:                                                                                              
                        0%                        
                        8%

                       

                      Stock
                        Price (Sep
                        20047)
                        -
                        Present)

                      
                        

                      

                       

                       

                    

                  

                   

                

                

                  1)
                    Diluted shares reflect average outstanding as of second quarter
                    2005 (15.1
                    MM shares) adjusted for the
                    primary shares sold in the secondary offering (1.8 MM
                    shares).

                  2)
                    Total Enterprise Value (TEV) is defined as current Market Capitalization,
                    plus Total Debt, less Total Cash
                    as of the latest financial filing with the SEC.

                  3)
                    Represents executive officers and directors as disclosed in SEC
                    Form 424B4
                    filing August 31, 2005.

                  4)
                    As tracked by Thomson Financial.

                  5)
                    Based on midpoint of 2005E company guidance range which is detailed
                    in
                    last page of Fact Sheet.

                  6)
                    EBITDA is a non-GAAP financial measure; see last page of Fact
                    Sheet for
                    Reg. G Reconciliation.

                  7)
                    Stock price history since listing on the American Stock Exchange,
                    September 13, 2004.

                

              
	 	 	 

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	  
              Fact Sheet	 	
              September
                2005

            
	 	 	 
	
              OUR
                SHARED
                VISION

               

              Allis-Chalmers
                Energy Inc. is a multi-faceted oilfield services company. ALY’s objective
                is to provide its oil and gas customers the most technologically
                advanced
                equipment and operating personnel in the most productive, safe and
                cost
                effective manner.

               

              The
                Company provides its services both on land and offshore to operators
                in
                the United States, Mexico and most recently the Middle East. In achieving
                excellence in all aspects of its operations, the Company strives
                to be the
                “first call” when its services are required, helping to mitigate sector
                cycles in the process.

               

              The
                services provided will continue to grow through strategic acquisitions,
                geographic expansion and diversification in many aspects of the upstream
                drilling and production market. The Company’s goal is to achieve a leading
                position in markets that are growing faster than the oilfield services
                industry overall.

               

              Allis-Chalmers
                is committed to maintaining the highest ethical standards in all
                aspects
                of its business, and is committed to investor transparency. The Company
                also recognizes that its people are its greatest assets, and is dedicated
                to making all of its employees proud shareholders of Allis-Chalmers
                Energy.

               

              TAKING
                ADVANTAGE

               

              In
                early 2000, Munawar (Micki) Hidayatallah founded OilQuip Rentals
                to serve
                an oil industry that he believed was in the midst of a long term
                bullish
                cycle. Over the last five years, he and his team have consummated
                ten
                acquisitions, including the reverse merger of Allis-Chalmers in May
                2001.
                Over the same time, the highest natural gas and crude oil prices
                in over
                20 years have driven industry drilling activity to record levels;
                this is
                especially true for natural gas, which is nearing three times the
                drilling
                rigs running than were running in early 2000. Currently, ALY receives
                80%-85% of its revenues from gas drilling services; however, most
                of its
                services can be utilized for either gas or oil drilling activity.
                

               

              The
                execution of its marketing strategy has enabled Allis-Chalmers to
                obtain
                an increase in revenues between 2002 and 2004 that is greater than
                the
                growth in the active rig count. Looking forward, ALY expects to remain
                a
                high-growth company with projected revenue growth of 70%-100% in
                2005 over
                2004, excluding
                future
                acquisitions.

               

              Allis-Chalmers
                is focused on building a successful long term track record with investors
                as it has operationally done with its customers. The management team
                will
                continue to focus on growth opportunities that will enhance shareholder
                value

            	 	
              COMPANY
                OVERVIEW

               

              Since
                2001, Allis-Chalmers has built a balanced and diversified portfolio
                of
                oilfield service companies. Key to this has been management’s ability to
                successfully, and repeatedly, acquire and integrate strategic and
                complementary skill-sets. To date, ten such acquisitions have been
                made,
                including three in 2005. ALY expects it will continue to grow organically
                through increased service offerings in its operating locations as
                well as
                through targeted, strategic acquisitions. 

               

              The
                Company’s operations are carried out in five primary business lines. Each
                operation has its own technical expertise and historical success,
                along
                with a common commitment to providing its customers with the highest
                quality equipment and services.

               

              1)
                Directional
                & Horizontal Drilling:

              This
                segment provides directional, horizontal and "measurement while drilling"
                services to oil and gas companies operating on both land and offshore
                in
                the domestic United States. Since 2002 ALY has increased its team
                of
                directional drillers from 10 to more than 60.

               

              2)
                Casing
                & Tubing:

              This
                segment supplies specialized equipment and trained operators to install
                casing and tubing, change out drill pipe and retrieve production
                tubing
                for both onshore and offshore drilling and workover operations in
                Texas,
                the Gulf Coast and Mexico. In September 2005, ALY expanded its operations
                and entered the higher profit margin offshore market by acquiring
                used
                equipment from Patterson Services, Inc.

               

              3)
                Compressed
                Air Drilling:

              This
                segment provides compressed air and related products and services
                for the
                air drilling, workover, completion, and transmission segments of
                the oil,
                gas and geothermal industries. In July 2005, ALY acquired the remaining
                equity interest in AirComp LLC and the compressed air drilling assets
                of
                W.T. Enterprises, Inc.

               

              4)
                Production
                Services:

              Production
                Services provides chemical injection techniques and installation
                of
                capillary coil tubing to increase production in producing oil and
                gas
                wells. ALY started this segment with the purchase of Downhole Injection
                Systems in December 2004, and expanded its capabilities with the
                purchase
                of Capcoil in May 2005.

               

              5)
                Rental
                Tools:

              The
                Rental Tools segment provides specialty rental tools for the oil
                and gas
                industry, such as supplying spiral heavy weight drill pipe. ALY initiated
                this segment with the purchase of Safco in September 2004, and expanded
                its market presence with the purchase of Delta in April
                2005.

            
	 	 	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	  
              Fact Sheet	 	
              September
                2005

            
	 	 	 

    

    
      TAKING
        ADVANTAGE
        OF RECORD
        DRILLING
        ACTIVITY
        &
        BUSINESS
        EXECUTION...
        
          

        

      

      
        	10-Year
                U.S. Rig Count & Composition (1)	 	
                10-Year
                  Oil & Gas Prices

              
	
                 

              	 	
                 

              
	 	 	 

      

    

    
      
        ...TO
          ACHIEVE
          SIGNIFICANT
          GROWTH
          IN ITS NICHE
          MARKETS. 

        
          

        

      

      
        	Growth
                in Total Revenue	 	
                Growth
                  in Total EBITDA(2)

              
	
                 

              	 	
                 

              
	 	 	 

      

    

    
      
        
          ATTRACTIVE
            GROWTH
            OPPORTUNITIES 

        

        
          

        

      

      
        	ALY
                Growing at a Faster Pace than Competitorts	 	
                Diversified
                  Business Mix (2005E EBITDA) (2)

              
	
                 

              	 	
                 

              
	 	 	 

      

    

     

    
      
        

      

      1)
        Source:
        Baker Hughes

      2)
        EBITDA
        is a non-GAAP financial measure; see last page for Regulation G GAAP
        reconciliation and published 2005 Company guidance.

      3)
        Relative performance history since listing on the American Stock Exchange,
        September 13, 2004.

      4)
        2005E
        EPS and EBITDA represent mean of Wall Street expectations as compiled by
        Thomson/First Call. 2005E EPS and EBITDA for ALY is based on the midpoint
        of
        2005 Company guidance; there
        is
        no guarantee, however, that the Company will achieve the result of such
        estimates.

      5)
        Total
        Enterprise Value is defined as market capitalization (using diluted shares
        outstanding) plus total debt less total cash as of latest SEC filing
        available.

      6)
        Fiscal
        Year September

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

      Allis-Chalmers
        Energy Inc.

      AMEX:
        ALY

      Corporate
        Headquarters

      5075
        Westheimer, Suite 890

      Houston,
        Texas, 77056

      713-369-0550

      invest@alchenergy.com

       

      Reader
        Advisory and Forward Looking Statements

       

      This
        Fact
        Sheet is presented as a brief company overview for the information of investors,
        analysts and other parties with an interest in Allis-Chalmers
        Energy Inc. (herein referred to as “the Company”, “Allis-Chalmers” and by its
        stock exchange ticker, “ALY”). The management of Allis-Chalmers
        hopes that this Fact Sheet will encourage analysts and investors to investigate
        more about the Company through its Securities and Exchange Commission
        (SEC) filings, press releases and other public materials. This Fact Sheet
        does
        not constitute an offer to sell or a solicitation of an offer to buy
        any
        securities of the Company. This Fact Sheet contains forward-looking statements,
        including, in particular, statements about ALY’s plans, strategies
        and prospects. These statements are based on the Company’s current assumptions,
        expectations and projections about future events, which are
        subject to a wide range of business risks. The Company encourages investors
        to
        review the information regarding the risks inherent to Allis-Chalmers
        and the energy industry in which it operates, as described in its Form 10-K
        for
        the year ended December 31, 2004, a copy of which is available
        free of charge over the Internet at the SEC’s website (http://www.sec.gov). This
        Fact Sheet does not purport to be all-inclusive or to contain all
        of
        the information that a reader may desire as to the structure or the affairs
        of
        the Company. Although the Company believes that the assumptions reflected
        in these forward-looking statements are reasonable, the Company can give
        no
        assurance that these assumptions will prove to be correct or that
        financial or market forecasts, savings or other benefits anticipated in the
        forward-looking statements will be achieved. Forward-looking statements
        are not guarantees of future performance and actual results may differ
        materially from those projected. The information contained in this Fact
        Sheet is only current as of its date, and the Company undertakes no obligation
        to update this Fact Sheet.

       

      REGULATION
        G
        EBITDA RECONCILIATION
        &
        2005 COMPANY
        GUIDANCE

       

      This
        Fact
        Sheet contains references to the non-GAAP financial measure of Earnings (net
        income) before Interest, Taxes, Depreciation, and Amortization,
        or EBITDA. Reconciliations of this financial measure to the most directly
        comparable GAAP financial measure are provided in the table
        below. Management believes EBITDA is useful to an investor in evaluating
        ALY’s
        operating performance because it is widely used by investors
        in the energy industry to measure a company’s operating performance, it helps
        investors more meaningfully evaluate and compare the results
        of the Company’s operations from period to period by removing the impact of the
        Company’s capital structure and asset base from ALY’s operating
        results and it is used by management as a measure of operating performance,
        in
        presentations to its board of directors, as a basis for strategic planning
        and forecasting and as a component for setting incentive
        compensation.

       

      Reconciliation
        of EBITDA to GAAP Net Income (Loss) ($mm)

      
        
          
            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
                    Historical
                      Results

                  	 	
                    Company
                      Guidance

                  	 
	
                    Year
                      Ended December 31, 

                  	 	
                    2001

                  	 	
                    2002

                  	 	
                    2003

                  	 	
                    2004

                  	 	
                    2005E1)

                  	 	
                    2005E1)

                  	 
	 	 	 	 	 	 	 	 	 	 	
                    Lo
                      case 

                  	 	
                    Hi
                      Case 

                  	 
	
                    Consolidated
                      EBITDA (loss)

                  	 	 	
                    ($0.3

                  	
                    )

                  	
                    $

                  	
                    1.4

                  	 	
                    $

                  	
                    5.6

                  	 	
                    $

                  	
                    7.8

                  	 	
                    $

                  	
                    14.2

                  	 	
                    $

                  	
                    17.5

                  	 
	
                    Depreciation
                      and amortization 

                  	 	 	
                    1.1
                      

                  	 	 	
                    2.6
                      

                  	 	 	
                    2.9
                      

                  	 	 	
                    3.6
                      

                  	 	 	
                    6.0
                      

                  	 	 	
                    6.0
                      

                  	 
	
                    GAAP
                      Income / (loss) from operations

                  	 	$	
                    ($1.4

                  	
                    )

                  	$	
                    (1.2

                  	
                    )

                  	
                    $

                  	
                    2.6

                  	 	
                    $

                  	
                    4.2

                  	 	
                    $

                  	
                    8.2

                  	 	
                    $

                  	
                    11.5

                  	 
	
                    Interest
                      expense, net 

                  	 	 	
                    0.9
                      

                  	 	 	
                    2.3
                      

                  	 	 	
                    2.5
                      

                  	 	 	
                    2.8
                      

                  	 	 	
                    2.2
                      

                  	 	 	
                    2.2
                      

                  	 
	
                    Income
                      taxes 

                  	 	 	
                    0.0
                      

                  	 	 	
                    0.3
                      

                  	 	 	
                    0.4
                      

                  	 	 	
                    0.5
                      

                  	 	 	
                    0.6
                      

                  	 	 	
                    0.7
                      

                  	 
	
                    Gains
                      on asset sales & litigation 

                  	 	 	
                    0.0
                      

                  	 	 	
                    0.0
                      

                  	 	 	
                    3.4
                      

                  	 	 	
                    0.0
                      

                  	 	 	
                    0.1
                      

                  	 	 	
                    0.1
                      

                  	 
	
                    Minority
                      Interest, other expense & dividends 

                  	 	 	
                    0.0

                  	 	 	
                    0.7
                      

                  	 	 	
                    1.0
                      

                  	 	 	
                    0.2
                      

                  	 	 	
                    0.6

                  	 	 	
                    0.7
                      

                  	 
	
                    Net
                      income (loss) from continuing operations 

                  	 	 	
                    (2.3

                  	
                    )

                  	 	
                    (4.3

                  	
                    )

                  	 	
                    2.3
                      

                  	 	 	
                    0.8
                      

                  	 	
                    $

                  	
                    4.9

                  	 	
                    $

                  	
                    8.0

                  	 
	
                    (Loss)
                      from discontinued operations & (Loss) from 

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    sale
                      of discontinued operations 

                  	 	 	
                    (2.3

                  	
                    )

                  	 	
                    0.0

                  	 	 	
                    0.0

                  	 	 	
                    0.0
                      

                  	 	 	
                    0

                  	 	 	
                    0
                      

                  	 
	
                    Net
                      income (loss) to common 

                  	 	$	
                    (4.6

                  	
                    )

                  	$	
                    (4.3

                  	
                    )

                  	
                    $

                  	
                    2.3

                  	 	
                    $

                  	
                    0.8

                  	 	
                    $

                  	
                    5.0

                  	 	
                    $

                  	
                    8.1

                  	 
	
                    Weighted
                      Average Diluted Shares O/S (mm) 

                  	 	 	
                    0.8
                      

                  	 	 	
                    3.8
                      

                  	 	 	
                    5.9
                      

                  	 	 	
                    9.5
                      

                  	 	 	
                    18.0
                      

                  	 	 	
                    18.0
                      

                  	 
	
                    Diluted
                      EPS 

                  	 	$	
                    (5.79

                  	
                    )

                  	$	
                    (1.14

                  	
                    )

                  	
                    $

                  	
                    0.50

                  	 	
                    $

                  	
                    0.09

                  	 	
                    $

                  	
                    0.28

                  	 	
                    $

                  	
                    0.45

                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

          

        

      

    

    
      
        
          

        

      

      1)
        Based
        on published 2005 Company guidance range.<PAGE>

EXHIBIT 10.3

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 STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR RAPTOR NETWORKS TECHNOLOGY, INC. SHALL HAVE
RECEIVED AN OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER
THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS
IS NOT REQUIRED.

                               WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                        RAPTOR NETWORKS TECHNOLOGY, INC.

                            Expires February 11, 2010

No.: W-I-ADV-__                                       Number of Shares: ________
Date of Issuance: February 11, 2005

         FOR VALUE RECEIVED, subject to the provisions hereinafter set forth,
the undersigned, Raptor Networks Technology, Inc., a Colorado 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 period specified in this Warrant, ________ thousand (_________)
shares (subject to adjustment as hereinafter provided) of the duly authorized,
validly issued, fully paid and non-assessable Common Stock of the Issuer, at an
initial exercise price per share of $0.60. Capitalized terms used in this
Warrant and not otherwise defined herein shall have the respective meanings
specified in Section 8 hereof.

         1. TERM. The right to subscribe for and purchase shares of Warrant
Stock represented hereby shall commence on February 11, 2005 and shall expire at
5:00 p.m., eastern time, on February 11, 2010 (such period being 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 and from time to time during
the Term.

                                       1

<PAGE>

         (b) METHOD OF EXERCISE. The Holder hereof may exercise this Warrant, in
whole or in part, by the surrender of this Warrant (with the exercise form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment to the Issuer of an amount of consideration therefor equal to the
Warrant Price in effect on the date of such exercise 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 (i) by certified or official bank
check or by wire transfer to an account designated by the Issuer, (ii) by
"cashless exercise" in accordance with the provisions of subsection (c) of this
Section 2 or (iii) by a combination of the foregoing methods of payment selected
by the Holder of this Warrant.

         (c) CASHLESS EXERCISE. If the Per Share Market Value of one share of
Common Stock is greater than the Warrant Price (at the date of calculation as
set forth below), 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 equal to an amount (as determined below) by
surrender of this Warrant at the principal office of the Issuer together with
the properly endorsed Notice of Exercise in which event the Issuer shall issue
to the Holder a 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.

                  B =   the Per Share Market Value of one share of Common Stock.

         (d) 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 five (5) Trading Days after such
exercise or, at the request of the Holder (provided that a registration
statement under the Securities Act providing for the resale of the Warrant Stock
is then in effect), issued and delivered to the Depository Trust Company ("DTC")
account on the Holder's behalf via the Deposit Withdrawal Agent Commission
System ("DWAC") within a reasonable time, not exceeding five (5) Trading Days
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.

                                       2

<PAGE>

         (e) TRANSFERABILITY OF WARRANT. Subject to Section 2(g), this Warrant
may be transferred by a Holder without the consent of the Issuer. If transferred
pursuant to this paragraph and subject to the provisions of subsection (g) of
this Section 2, this Warrant may be transferred on the books of the Issuer by
the Holder hereof in person or by duly authorized attorney, upon surrender of
this Warrant at the principal office of the Issuer, properly endorsed (by the
Holder executing an assignment in the form attached hereto) and upon payment of
any necessary transfer tax or other governmental charge imposed upon such
transfer. This Warrant is exchangeable at the principal office of the Issuer for
Warrants for the purchase of the same aggregate number of shares of Warrant
Stock, each new Warrant to represent the right to purchase such number of shares
of Warrant Stock as the Holder hereof shall designate at the time of such
exchange. All Warrants issued on transfers or exchanges shall be dated the
Original Issue Date and shall be identical with this Warrant except as to the
number of shares of Warrant Stock issuable pursuant hereto.

         (f) CONTINUING RIGHTS OF HOLDER. The Issuer will, at the time of or at
any time after each exercise of this Warrant, upon the request of the Holder
hereof, acknowledge in writing the extent, if any, of its continuing obligation
to afford to such Holder all rights to which such Holder shall continue to be
entitled after such exercise in accordance with the terms of this Warrant,
PROVIDED that if any such Holder shall fail to make any such request, the
failure shall not affect the continuing obligation of the Issuer to afford such
rights to such Holder.

         (g) 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 for
         investment, 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
         and any applicable state securities laws.

                  (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 STATE
                  SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
                  DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND
                  UNDER APPLICABLE STATE SECURITIES LAWS OR RAPTOR NETWORKS
                  TECHNOLOGY, INC. SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL
                  THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT
                  AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS
                  IS NOT REQUIRED.

                                       3

<PAGE>

                  (iii) The Issuer agrees to reissue this Warrant or
         certificates representing any of the Warrant Stock, without the legend
         set forth above if at such time, prior to making any transfer of any
         such securities, the Holder shall give written notice to the Issuer
         describing the manner and terms of such transfer and removal as the
         Issuer may reasonably request. Such proposed transfer and removal will
         not be effected until: (a) either (i) the Issuer has received an
         opinion of counsel reasonably satisfactory to the Issuer, to the effect
         that the registration of such securities under the Securities Act is
         not required in connection with such proposed transfer, (ii) a
         registration statement under the Securities Act covering such proposed
         disposition has been filed by the Issuer with the Securities and
         Exchange Commission and has become effective under the Securities Act,
         (iii) the Issuer has received other evidence reasonably satisfactory to
         the Issuer that such registration and qualification under the
         Securities Act and state securities laws are not required, or (iv) the
         Holder provides the Issuer with reasonable assurances that such
         security can be sold pursuant to Rule 144 under the Securities Act; and
         (b) either (i) the Issuer has received an opinion of counsel reasonably
         satisfactory to the Issuer, to the effect that registration or
         qualification under the securities or "blue sky" laws of any state is
         not required in connection with such proposed disposition, or (ii)
         compliance with applicable state securities or "blue sky" laws has been
         effected or a valid exemption exists with respect thereto. The Issuer
         will respond to any such notice from a holder within five (5) business
         days. In the case of any proposed transfer under this Section 2(g), the
         Issuer will use reasonable efforts to comply with any such applicable
         state securities or "blue sky" laws, but shall in no event be required,
         (x) to qualify to do business in any state where it is not then
         qualified, or (y) to take any action that would subject it to tax or to
         the general service of process in any state where it is not then
         subject. The restrictions on transfer contained in this Section 2(g)
         shall be in addition to, and not by way of limitation of, any other
         restrictions on transfer contained in any other section of this
         Warrant.

         (h) In no event may the Holder exercise this Warrant in whole or in
part unless the Holder is an "accredited investor" as defined in Regulation D
under the Securities Act.

         3. STOCK FULLY PAID; RESERVATION AND LISTING OF SHARES; 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 Issuer. The Issuer further covenants and agrees
that during the period within which this Warrant may be exercised, 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.

                                       4

<PAGE>

         (b) RESERVATION. If any shares of Common Stock required to be reserved
for issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any governmental authority under any
federal or state law before such shares may be so issued, the Issuer will in
good faith use its best efforts as expeditiously as possible at its expense to
cause such shares to be duly registered or qualified. If the Issuer shall list
any shares of Common Stock on any securities exchange or market it will, at its
expense, list thereon, maintain and increase when necessary such listing, of,
all shares of Warrant Stock from time to time issued upon exercise of this
Warrant or as otherwise provided hereunder, and, to the extent permissible under
the applicable securities exchange rules, all unissued shares of Warrant Stock
which are at any time issuable hereunder, so long as any shares of Common Stock
shall be so listed. The Issuer will also so list on each securities exchange or
market, and will maintain such listing of, any other securities which the Holder
of this Warrant shall be entitled to receive upon the exercise of this Warrant
if at the time any securities of the same class shall be listed on such
securities exchange or market by the Issuer.

         (c) COVENANTS. The Issuer shall not by any action including, without
limitation, amending the Articles of Incorporation or the by-laws 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, but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such actions as may be necessary or appropriate to protect
the rights of the Holder hereof against dilution (to the extent specifically
provided herein) or impairment. Without limiting the generality of the
foregoing, the Issuer will (i) not permit the par value, if any, of its Common
Stock to exceed the then effective Warrant Price, (ii) not amend or modify any
provision of the Articles of Incorporation or by-laws of the Issuer in any
manner that would adversely affect the rights of the Holders of the Warrants,
(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) upon the exercise of this Warrant, and (iv) use
its best efforts to obtain all such authorizations, exemptions or consents from
any public regulatory body having jurisdiction thereof as may be reasonably
necessary to enable the Issuer to perform its obligations under this Warrant.

         (d) 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. ADJUSTMENT OF WARRANT PRICE AND WARRANT SHARE NUMBER. The number of
shares of Common Stock for which this Warrant is exercisable, and the price at
which such shares may be purchased upon exercise of this Warrant, shall be
subject to adjustment from time to time as set forth in this Section 4. The
Issuer shall give the Holder notice of any event described below which requires
an adjustment pursuant to this Section 4 in accordance with Section 5.

         (a) RECAPITALIZATION, REORGANIZATION, RECLASSIFICATION, CONSOLIDATION,
MERGER OR SALE.

                                       5

<PAGE>

                  (i) In case the Issuer after the Original Issue Date shall do
         any of the following (each, a "TRIGGERING Event"): (a) consolidate with
         or merge into any other Person and the Issuer shall not be the
         continuing or surviving corporation of such consolidation or merger, or
         (b) permit any other Person to consolidate with or merge into the
         Issuer and the Issuer shall be the continuing or surviving Person but,
         in connection with such consolidation or merger, any Capital Stock of
         the Issuer shall be changed into or exchanged for Securities of any
         other Person or cash or any other property, or (c) transfer all or
         substantially all of its properties or assets to any other Person, or
         (d) effect a capital reorganization or reclassification of its Capital
         Stock, then, and in the case of each such Triggering Event, proper
         provision shall be made so that, upon the basis and the terms and in
         the manner provided in this Warrant, the Holder of this Warrant shall
         be entitled upon the exercise hereof at any time after the consummation
         of such Triggering Event, to the extent this Warrant is not exercised
         prior to such Triggering Event, to receive at the Warrant Price in
         effect at the time immediately prior to the consummation of such
         Triggering Event in lieu of the Common Stock issuable upon such
         exercise of this Warrant prior to such Triggering Event, the
         Securities, cash and property to which such Holder would have been
         entitled upon the consummation of such Triggering Event if such Holder
         had exercised the rights represented by this Warrant immediately prior
         thereto, subject to adjustments (subsequent to such corporate action)
         as nearly equivalent as possible to the adjustments provided for
         elsewhere in this Section 4.

                  (ii) Notwithstanding anything contained in this Warrant to the
         contrary, the Issuer will not effect any Triggering Event if, prior to
         the consummation thereof, each Person (other than the Issuer) which may
         be required to deliver any Securities, cash or property upon the
         exercise of this Warrant as provided herein shall assume, by written
         instrument delivered to, and reasonably satisfactory to, the Holder of
         this Warrant, (A) the obligations of the Issuer under this Warrant (and
         if the Issuer shall survive the consummation of such Triggering Event,
         such assumption shall be in addition to, and shall not release the
         Issuer from, any continuing obligations of the Issuer under this
         Warrant) and (B) the obligation to deliver to such Holder such shares
         of Securities, cash or property as, in accordance with the foregoing
         provisions of this subsection (a), such Holder shall be entitled to
         receive, and such Person shall have similarly delivered to such Holder
         an opinion of counsel for such Person, which counsel shall be
         reasonably satisfactory to such Holder, stating that this Warrant shall
         thereafter continue in full force and effect and the terms hereof
         (including, without limitation, all of the provisions of this
         subsection (a)) shall be applicable to the Securities, cash or property
         which such Person may be required to deliver upon any exercise of this
         Warrant or the exercise of any rights pursuant hereto.

         (b) STOCK DIVIDENDS, SUBDIVISIONS AND COMBINATIONS. If at any time the
Issuer shall:

                           (i) take a record of the holders of its Common Stock
         for the purpose of entitling them to receive a dividend payable in, or
         other distribution of, Additional Shares of Common Stock,

                           (ii) subdivide its outstanding shares of Common Stock
         into a larger number of shares of Common Stock, or

                                       6

<PAGE>

                           (iii) combine its outstanding shares of Common Stock
         into a smaller number of shares of Common Stock,

then (1) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (2) the Warrant Price then in
effect shall be adjusted to equal (A) the Warrant Price then in effect
multiplied by the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the adjustment divided by (B) the number of
shares of Common Stock for which this Warrant is exercisable immediately after
such adjustment.

         (c) CERTAIN OTHER DISTRIBUTIONS. If at any time the Issuer shall take a
record of the holders of its Common Stock for the purpose of entitling them to
receive any dividend or other distribution of:

                           (i) cash (other than a cash dividend payable out of
         earnings or earned surplus legally available for the payment of
         dividends under the laws of the jurisdiction of incorporation of the
         Issuer),

                           (ii) any evidences of its indebtedness, any shares of
         stock of any class or any other securities or property of any nature
         whatsoever (other than cash, Common Stock Equivalents or Additional
         Shares of Common Stock), or

                           (iii) any warrants or other rights to subscribe for
         or purchase any evidences of its indebtedness, any shares of stock of
         any class or any other securities or property of any nature whatsoever
         (other than cash, Common Stock Equivalents or Additional Shares of
         Common Stock),

then (1) the number of shares of Common Stock for which this Warrant is
exercisable shall be adjusted to equal the product of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
adjustment multiplied by a fraction (A) the numerator of which shall be the Per
Share Market Value of Common Stock at the date of taking such record and (B) the
denominator of which shall be such Per Share Market Value minus the amount
allocable to one share of Common Stock of any such cash so distributable and of
the fair value (as determined in good faith by the Board of Directors of the
Issuer and supported by an opinion from an investment banking firm of recognized
national standing acceptable to the Holder) of any and all such evidences of
indebtedness, shares of stock, other securities or property or warrants or other
subscription or purchase rights so distributable, and (2) the Warrant Price then
in effect shall be adjusted to equal (A) the Warrant Price then in effect
multiplied by the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the adjustment divided by (B) the number of

                                       7

<PAGE>

shares of Common Stock for which this Warrant is exercisable immediately after
such adjustment. A reclassification of the Common Stock (other than a change in
par value, or from par value to no par value or from no par value to par value)
into shares of Common Stock and shares of any other class of stock shall be
deemed a distribution by the Issuer to the holders of its Common Stock of such
shares of such other class of stock within the meaning of this Section 4(c) and,
if the outstanding shares of Common Stock shall be changed into a larger or
smaller number of shares of Common Stock as a part of such reclassification,
such change shall be deemed a subdivision or combination, as the case may be, of
the outstanding shares of Common Stock within the meaning of Section 4(b).

         (d) ISSUANCE OF ADDITIONAL SHARES OF COMMON STOCK.

                  (i) In the event the Issuer shall at any time following the
Original Issue Date issue any Additional Shares of Common Stock (otherwise than
as provided in the foregoing subsections (a) through (c) of this Section 4), at
a price per share less than the Warrant Price then in effect or without
consideration, then the Warrant Price upon each such issuance shall be adjusted
to that price determined by multiplying the Warrant Price then in effect by a
fraction:

                           (A) the numerator of which shall be equal to the sum
                  of (x) the number of shares of Outstanding Common Stock
                  immediately prior to the issuance of such Additional Shares of
                  Common Stock PLUS (y) the number of shares of Common Stock
                  (rounded to the nearest whole share) which the aggregate
                  consideration for the total number of such Additional Shares
                  of Common Stock so issued would purchase at a price per share
                  equal to the Warrant Price then in effect, and

                           (B) the denominator of which shall be equal to the
                  number of shares of Outstanding Common Stock immediately after
                  the issuance of such Additional Shares of Common Stock.

                  (ii) No adjustment of the number of shares of Common Stock for
which this Warrant shall be exercisable shall be made under paragraph (i) of
Section 4(d) upon the issuance of any Additional Shares of Common Stock which
are issued pursuant to the exercise of any Common Stock Equivalents, if any such
adjustment shall previously have been made upon the issuance of such Common
Stock Equivalents or upon the issuance of any warrant or other rights therefor
pursuant to Sections 4(e) or 4(f), or in connection with any Permitted
Issuances.

         (e) ISSUANCE OF WARRANTS OR OTHER RIGHTS. If at any time the Issuer
shall take a record of the Holders of its Common Stock for the purpose of
entitling them to receive a distribution of, or shall in any manner (whether
directly or by assumption in a merger in which the Issuer is the surviving
corporation) issue or sell any warrants or options, whether or not immediately
exercisable, and the Warrant Consideration (hereafter defined) per share for
which Common Stock is issuable upon the exercise of such warrant or option shall
be less than the Warrant Price in effect immediately prior to the time of such
issue or sale, then the Warrant Price then in effect immediately prior to the
time of such issue or sale, shall be adjusted to that price (rounded to the
nearest cent) determined by multiplying the Warrant Price by a fraction: (1) the
numerator of which shall be equal to the sum of (A) the number of shares of
Common Stock outstanding immediately prior to the issuance or sale of such
warrants or options PLUS (B) the number of shares of Common Stock (rounded to
the nearest whole share) which the Warrant Consideration multiplied by the
number of shares of Common Stock issuable upon the exercise or conversion of all

                                       8

<PAGE>

such warrants or options, would purchase at a price per share equal to the
Warrant Price then in effect, and (2) the denominator of which shall be equal to
the number of shares of Common Stock that would be outstanding assuming the
exercise or conversion of all such warrants and options. No adjustments of the
Warrant Price then in effect shall be made upon the actual issue of such Common
Stock or of such Common Stock Equivalents upon exercise of such warrants or
other rights or upon the actual issue of such Common Stock upon such conversion
or exchange of such Common Stock Equivalents. No adjustments of the Warrant
Price shall be required under this Section 4(e) in connection with any Permitted
Issuances.

         (f) ISSUANCE OF COMMON STOCK EQUIVALENTS. If at any time the Issuer
shall take a record of the Holders of its Common Stock for the purpose of
entitling them to receive a distribution of, or shall in any manner (whether
directly or by assumption in a merger in which the Issuer is the surviving
corporation) issue or sell, any Common Stock Equivalents, whether or not the
rights to exchange or convert thereunder are immediately exercisable, and the
Common Stock Equivalent Consideration (hereafter defined) per share for which
Common Stock is issuable upon such conversion or exchange shall be less than the
Warrant Price in effect immediately prior to the time of such issue or sale,
then the Warrant Price then in effect immediately prior to the time of such
issue or sale, shall upon each such issuance or sale be adjusted to that price
(rounded to the nearest cent) determined by multiplying the Warrant Price by a
fraction: (1) the numerator of which shall be equal to the sum of (A) the number
of shares of Common Stock outstanding immediately prior to the issuance or sale
of such Common Stock Equivalents PLUS (B) the number of shares of Common Stock
(rounded to the nearest whole share) which the Common Stock Equivalent
Consideration multiplied by the number of shares of Common Stock issuable upon
the exercise or conversion of all such Common Stock Equivalents, would purchase
at a price per share equal to the Warrant Price then in effect, and (2) the
denominator of which shall be equal to the number of shares of Common Stock that
would be outstanding assuming the exercise or conversion of all such Common
Stock Equivalents. No further adjustment of the Warrant Price then in effect
shall be made under this Section 4(f) upon the issuance of any Common Stock
Equivalents which are issued pursuant to the exercise of any warrants or other
subscription or purchase rights therefor, if any such adjustment shall
previously have been made upon the issuance of such warrants or other rights
pursuant to Section 4(e). No further adjustments of the Warrant Price then in
effect shall be made upon the actual issue of such Common Stock upon conversion
or exchange of such Common Stock Equivalents. No adjustments of the Warrant
Price shall be required under this Section 4(f) in connection with any Permitted
Issuances.

         (g) SUPERSEDING ADJUSTMENT. If, at any time after any adjustment of the
number of shares of Common Stock for which this Warrant is exercisable and the
Warrant Price then in effect shall have been made pursuant to Section 4(e) or
Section 4(f) as the result of any issuance of warrants, other rights or Common
Stock Equivalents, and (i) such warrants or other rights, or the right of
conversion or exchange in such other Common Stock Equivalents, shall expire, and
all or a portion of such warrants or other rights, or the right of conversion or
exchange with respect to all or a portion of such other Common Stock
Equivalents, as the case may be shall not have been exercised, or (ii) the
consideration per share for which shares of Common Stock are issuable pursuant
to such Common Stock Equivalents, shall be increased solely by virtue of
provisions therein contained for an automatic increase in such consideration per
share upon the occurrence of a specified date or event, then for each
outstanding Warrant such previous adjustment shall be rescinded and annulled and
the Additional Shares of Common Stock which were deemed to have been issued by

                                       9

<PAGE>

virtue of the computation made in connection with the adjustment so rescinded
and annulled shall no longer be deemed to have been issued by virtue of such
computation. Upon the occurrence of an event set forth in this Section 4(g)
above, there shall be a recomputation made of the effect of such Common Stock
Equivalents on the basis of: (i) treating the number of Additional Shares of
Common Stock or other property, if any, theretofore actually issued or issuable
pursuant to the previous exercise of any such warrants or other rights or any
such right of conversion or exchange, as having been issued on the date or dates
of any such exercise and for the consideration actually received and receivable
therefor, and (ii) treating any such Common Stock Equivalents which then remain
outstanding as having been granted or issued immediately after the time of such
increase of the consideration per share for which shares of Common Stock or
other property are issuable under such Common Stock Equivalents; whereupon a new
adjustment of the number of shares of Common Stock for which this Warrant is
exercisable and the Warrant Price then in effect shall be made, which new
adjustment shall supersede the previous adjustment so rescinded and annulled.

         (h) PURCHASE OF COMMON STOCK BY THE ISSUER. If the Issuer at any time
while this Warrant is outstanding shall, directly or indirectly through a
Subsidiary or otherwise, purchase, redeem or otherwise acquire any shares of
Common Stock at a price per share greater than the Per Share Market Value, then
the Warrant Price upon each such purchase, redemption or acquisition shall be
adjusted to that price determined by multiplying such Warrant Price by a
fraction (i) the numerator of which shall be the number of shares of Common
Stock outstanding immediately prior to such purchase, redemption or acquisition
minus the number of shares of Common Stock which the aggregate consideration for
the total number of such shares of Common Stock so purchased, redeemed or
acquired would purchase at the Per Share Market Value; and (ii) the denominator
of which shall be the number of shares of Common Stock outstanding immediately
after such purchase, redemption or acquisition. For the purposes of this
subsection (h), the date as of which the Per Share Market Price shall be
computed shall be the earlier of (x) the date on which the Issuer shall enter
into a firm contract for the purchase, redemption or acquisition of such Common
Stock, or (y) the date of actual purchase, redemption or acquisition of such
Common Stock. For the purposes of this subsection (h), a purchase, redemption or
acquisition of a Common Stock Equivalent shall be deemed to be a purchase of the
underlying Common Stock, and the computation herein required shall be made on
the basis of the full exercise, conversion or exchange of such Common Stock
Equivalent on the date as of which such computation is required hereby to be
made, whether or not such Common Stock Equivalent is actually exercisable,
convertible or exchangeable on such date.

         (i) OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS UNDER THIS SECTION. The
following provisions shall be applicable to the making of adjustments of the
number of shares of Common Stock for which this Warrant is exercisable and the
Warrant Price then in effect provided for in this Section 4:

                  (i) COMPUTATION OF CONSIDERATION. To the extent that any
Additional Shares of Common Stock or any Common Stock Equivalents (or any
warrants or other rights therefor) shall be issued for cash consideration, the
consideration received by the Issuer therefor shall be the amount of the cash
received by the Issuer therefor, or, if such Additional Shares of Common Stock
or Common Stock Equivalents are offered by the Issuer for subscription, the
subscription price, or, if such Additional Shares of Common Stock or Common
Stock Equivalents are sold to underwriters or dealers for public offering
without a subscription offering, the initial public offering price (in any such

                                       10

<PAGE>

case subtracting any amounts paid or receivable for accrued interest or accrued
dividends and without taking into account any compensation, discounts or
expenses paid or incurred by the Issuer for and in the underwriting of, or
otherwise in connection with, the issuance thereof). To the extent that such
issuance shall be for a consideration other than cash, then, except as herein
otherwise expressly provided, the amount of such consideration shall be deemed
to be the fair value of such consideration at the time of such issuance as
determined in good faith by the Board of Directors of the Issuer. The
consideration for any Additional Shares of Common Stock issuable pursuant to any
warrants or other rights to subscribe for or purchase the same shall be the
consideration received by the Issuer for issuing such warrants or other rights
divided by the number of shares of Common Stock issuable upon the exercise of
such warrant or right plus the additional consideration payable to the Issuer
upon exercise of such warrant or other right for one share of Common Stock
(together the "Warrant Consideration"). The consideration for any Additional
Shares of Common Stock issuable pursuant to the terms of any Common Stock
Equivalents shall be the consideration received by the Issuer for issuing such
Common Stock Equivalent, divided by the number of shares of Common Stock
issuable upon the conversion or other exercise of such Common Stock Equivalent,
plus the additional consideration, if any, payable to the Issuer upon the
exercise of the right of conversion or exchange in such Common Stock Equivalent
for one share of Common Stock (together the "Common Stock Equivalent
Consideration"). In case of the issuance at any time of any Additional Shares of
Common Stock or Common Stock Equivalents in payment or satisfaction of any
dividends upon any class of stock other than Common Stock, the Issuer shall be
deemed to have received for such Additional Shares of Common Stock or Common
Stock Equivalents a consideration equal to the amount of such dividend so paid
or satisfied.

                  (ii) WHEN ADJUSTMENTS TO BE MADE. The adjustments required by
this Section 4 shall be made whenever and as often as any specified event
requiring an adjustment shall occur, except that any adjustment of the number of
shares of Common Stock for which this Warrant is exercisable that would
otherwise be required may be postponed (except in the case of a subdivision or
combination of shares of the Common Stock, as provided for in Section 4(b)) up
to, but not beyond the date of exercise if such adjustment either by itself or
with other adjustments not previously made adds or subtracts less than one
percent (1%) of the shares of Common Stock for which this Warrant is exercisable
immediately prior to the making of such adjustment. Any adjustment representing
a change of less than such minimum amount (except as aforesaid) which is
postponed shall be carried forward and made as soon as such adjustment, together
with other adjustments required by this Section 4 and not previously made, would
result in a minimum adjustment or on the date of exercise. For the purpose of
any adjustment, any specified event shall be deemed to have occurred at the
close of business on the date of its occurrence.

                  (iii) FRACTIONAL INTERESTS. In computing adjustments under
this Section 4, fractional interests in Common Stock shall be taken into account
to the nearest one one-hundredth (1/100th) of a share.

                                       11

<PAGE>

                  (iv) WHEN ADJUSTMENT NOT REQUIRED. If the Issuer shall take a
record of the holders of its Common Stock for the purpose of entitling them to
receive a dividend or distribution or subscription or purchase rights and shall,
thereafter and before the distribution to stockholders thereof, legally abandon
its plan to pay or deliver such dividend, distribution, subscription or purchase
rights, then thereafter no adjustment shall be required by reason of the taking
of such record and any such adjustment previously made in respect thereof shall
be rescinded and annulled.

         (j) 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.

         (k) ESCROW OF WARRANT STOCK. If after any property becomes
distributable pursuant to this Section 4 by reason of the taking of any record
of the holders of Common Stock, but prior to the occurrence of the event for
which such record is taken, and the Holder exercises this Warrant, any shares of
Common Stock issuable upon exercise by reason of such adjustment shall be deemed
the last shares of Common Stock for which this Warrant is exercised
(notwithstanding any other provision to the contrary herein) and such shares or
other property shall be held in escrow for the Holder by the Issuer to be issued
to the Holder upon and to the extent that the event actually takes place, upon
payment of the current Warrant Price. Notwithstanding any other provision to the
contrary herein, if the event for which such record was taken fails to occur or
is rescinded, then such escrowed shares shall be cancelled by the Issuer and
escrowed property returned.

         5. NOTICE OF ADJUSTMENTS. Whenever the Warrant Price or Warrant Share
Number shall be adjusted pursuant to Section 4 hereof (for purposes of this
Section 5, each an "adjustment"), the Issuer shall cause its Chief Financial
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 made any determination hereunder), and the Warrant
Price and Warrant Share Number 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. Any dispute between the Issuer and the Holder of
this Warrant with respect to the matters set forth in such certificate may at
the option of the Holder of this Warrant be submitted to one of the national
accounting firms currently known as the "big five" selected by the Holder,
PROVIDED that the Issuer shall have ten (10) days after receipt of notice from
such Holder of its selection of such firm to object thereto, in which case such
Holder shall select another such firm and the Issuer shall have no such right of
objection. The firm selected by the Holder of this Warrant as provided in the
preceding sentence shall be instructed to deliver a written opinion as to such
matters to the Issuer and such Holder within thirty (30) days after submission
to it of such dispute. Such opinion shall be final and binding on the parties
hereto.

         6. FRACTIONAL SHARES. No fractional shares of Warrant Stock will be
issued in connection with and exercise hereof, but in lieu of such fractional
shares, the Issuer shall make a cash payment therefor equal in amount to the
product of the applicable fraction multiplied by the Per Share Market Value then
in effect.

         7. CERTAIN EXERCISE RESTRICTIONS.

                                       12

<PAGE>

                  (a) Notwithstanding anything to the contrary set forth in this
Warrant, at no time may a Holder of this Warrant exercise this Warrant if the
number of shares of Common Stock to be issued pursuant to such exercise would
cause the number of shares of Common Stock owned by the Holder at such time to
exceed, when aggregated with all other shares of Common Stock owned by such
Holder at such time, the number of shares of Common Stock which would result in
such Holder beneficially owning (as determined in accordance with Section 13(d)
of the Exchange Act and the rules thereunder) in excess of 4.9% of all of the
Common Stock outstanding at such time; PROVIDED, HOWEVER, that upon the Holder
of this Warrant providing the Issuer with sixty-one (61) days notice (pursuant
to Section 12 hereof) (the "WAIVER NOTICE") that such Holder would like to waive
this Section 7(a) with regard to any or all shares of Common Stock issuable upon
exercise of this Warrant, this Section 7(a) will be of no force or effect with
regard to all or a portion of the Warrant referenced in the Waiver Notice;
PROVIDED, FURTHER, that this provision shall be of no further force or effect
(i) during the sixty-one (61) days immediately preceding the expiration of the
term of this Warrant or (ii) upon the Holder's receipt of a Call Notice.

                  (b) Notwithstanding anything to the contrary set forth in this
Warrant, at no time may a Holder of this Warrant exercise this Warrant if the
number of shares of Common Stock to be issued pursuant to such exercise would
cause the number of shares of Common Stock owned by the Holder at such time to
exceed, when aggregated with all other shares of Common Stock owned by such
Holder at such time, the number of shares of Common Stock which would result in
such Holder beneficially owning (as determined in accordance with Section 13(d)
of the Exchange Act and the rules thereunder) in excess of 9.9% of all of the
Common Stock outstanding at such time; PROVIDED, HOWEVER, that upon a holder of
this Warrant providing the Issuer with a Waiver Notice that such holder would
like to waive this Section 7(b) with regard to any or all shares of Common Stock
issuable upon exercise of this Warrant, this Section 7(b) shall be of no force
or effect with regard to those shares of Warrant Stock referenced in the Waiver
Notice; PROVIDED, FURTHER, that this provision shall be of no further force or
effect (i) during the sixty-one (61) days immediately preceding the expiration
of the term of this Warrant or (ii) upon the Holder's receipt of a Call Notice.

         8. DEFINITIONS. For the purposes of this Warrant, the following terms
have the following meanings:

                  "ADDITIONAL SHARES OF COMMON STOCK" means all shares of Common
         Stock (including Common stock Equivalents) issued by the Issuer after
         the Original Issue Date, and all shares of Other Common, if any, issued
         by the Issuer after the Original Issue Date, except for Permitted
         Issuances.

                  "BOARD" shall mean the Board of Directors of the Issuer.

                  "CAPITAL STOCK" means and includes (i) any and all shares,
         interests, participations or other equivalents of or interests in
         (however designated) corporate stock, including, without limitation,
         shares of preferred or preference stock, (ii) all partnership interests
         (whether general or limited) in any Person which is a partnership,
         (iii) all membership interests or limited liability company interests
         in any limited liability company, and (iv) all equity or ownership
         interests in any Person of any other type.

                                       13

<PAGE>

                  "ARTICLES OF INCORPORATION" means the Articles of
         Incorporation of the Issuer as in effect on the Original Issue Date,
         and as hereafter from time to time amended, modified, supplemented or
         restated in accordance with the terms hereof and thereof and pursuant
         to applicable law.

                  "COMMON STOCK" means the Common Stock, par value $0.001 per
         share, of the Issuer and any other Capital Stock into which such stock
         may hereafter be changed.

                  "COMMON STOCK EQUIVALENT" means any Convertible Security or
         warrant, option or other right to subscribe for or purchase any
         Additional Shares of Common Stock or any Convertible Security.

                  "COMMON STOCK EQUIVALENT CONSIDERATION" has the meaning
         specified in Section 4 (i) (i) hereof.

                  "CONVERTIBLE SECURITIES" means evidences of Indebtedness,
         shares of Capital Stock or other Securities which are or may be at any
         time convertible into or exchangeable for Additional Shares of Common
         Stock. The term "Convertible Security" means one of the Convertible
         Securities.

                  "GOVERNMENTAL AUTHORITY" means any governmental, regulatory or
         self-regulatory entity, department, body, official, authority,
         commission, board, agency or instrumentality, whether federal, state or
         local, and whether domestic or foreign.

                  "HOLDERS" mean the Persons who shall from time to time own any
         Warrant. The term "Holder" means one of the Holders.

                  "INDEPENDENT APPRAISER" means a nationally recognized or major
         regional investment banking firm or firm of independent certified
         public accountants of recognized standing (which may be the firm that
         regularly examines the financial statements of the Issuer) that is
         regularly engaged in the business of appraising the Capital Stock or
         assets of corporations or other entities as going concerns, and which
         is not affiliated with either the Issuer or the Holder of any Warrant.

                  "ISSUER" means Raptor Networks Technology, Inc., a Colorado
         corporation, and its successors.

                  "MAJORITY HOLDERS" means at any time the Holders of Warrants
         exercisable for a majority of the shares of Warrant Stock issuable
         under the Warrants at the time outstanding.

                  "ORIGINAL ISSUE DATE" means February 11, 2005.

                  "OTC BULLETIN BOARD" means the over-the-counter electronic
         bulletin board.

                                       14

<PAGE>

                  "OTHER COMMON" means any other Capital Stock of the Issuer of
         any class which shall be authorized at any time after the date of this
         Warrant (other than Common Stock) and which shall have the right to
         participate in the distribution of earnings and assets of the Issuer
         without limitation as to amount.

                  "OUTSTANDING COMMON STOCK" means, at any given time, the
         aggregate amount of outstanding shares of Common Stock, assuming full
         exercise, conversion or exchange (as applicable) of all options,
         warrants and other Securities which are convertible into or exercisable
         or exchangeable for, and any right to subscribe for, shares of Common
         Stock that are outstanding at such time.

                  "PERMITTED ISSUANCES" means (i) the issuance of the Warrant
         Stock; (ii) issuances in connection with strategic license agreements
         or other partnering arrangements so long as such issuances are not for
         the purpose of raising capital; (iii) issuances (other than for cash)
         in connection with a merger, acquisition or consolidation of the
         Issuer; (iv) issuances in connection with a bona fide firm underwritten
         public offering by the Issuer of its shares of Common Stock; (v)
         issuances to the Issuer's officers, directors and employees for the
         issuance of (A) up to 1,800,000 shares of Common Stock without payment
         therefor, provided that the persons or other entities to whom such
         shares are issued agree in writing not to sell, hypothecate, transfer
         or otherwise dispose of such shares prior to January 2007, (B) grants
         of options or warrants to purchase up to an aggregate of 1,000,000
         shares of Common Stock in addition to options that may be granted
         pursuant to the Issuer's stock option plan as it now exists whether the
         grants of such options or warrants are made under the Issuer's Employee
         Stock Option Plan as it may be hereafter amended, an employee or
         director stock option plan hereafter adopted or otherwise and (C)
         common stock or warrants to third party providers of goods and services
         for goods or services provided or in satisfaction of outstanding
         liabilities, as approved by the Company's Board of Directors; (vi)
         securities issued upon the exercise, conversion or exchange of any
         Common Stock Equivalents outstanding on the Original Issue Date and
         shares of Common Stock hereafter issued upon the exercise of options
         hereafter granted pursuant to the Company's stock option plan as it now
         exists (vii) any issuance of Common Stock, warrants, convertible notes
         or any other securities issued to investors, brokers, dealers or any
         other persons or entities in conjunction with, and/or pursuant to the
         terms of, the Company's Private Placement Memorandum dated March 15,
         2005; and (viii) any warrants, shares of Common Stock or other
         securities issued to a placement agent and its designees in conjunction
         with any sales of the Company's securities and the shares of Common
         Stock issued upon exercise of any such warrants or conversion of any
         such other securities.

                  "PERSON" means an individual, corporation, limited liability
         company, partnership, joint stock company, trust, unincorporated
         organization, joint venture, Governmental Authority or other entity of
         whatever nature.

                  "PER SHARE MARKET VALUE" means on any particular date (a) 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 National
         Quotation Bureau Incorporated or similar organization or agency
         succeeding to its functions of reporting prices) at the close of

                                       15

<PAGE>

         business on such date, or (b) if the Common Stock is not then reported
         by the OTC Bulletin Board or the National Quotation Bureau Incorporated
         (or similar organization or agency succeeding to its functions of
         reporting prices), then the average of the "Pink Sheet" quotes for the
         relevant conversion period, as determined in good faith by the holder,
         or (c) if the Common Stock is not then publicly traded the fair market
         value of a share of Common Stock as determined by the Board in good
         faith; PROVIDED, HOWEVER, that the Majority Holders, after receipt of
         the determination by the Board, shall have the right to select, jointly
         with the Issuer, an Independent Appraiser, in which case, the fair
         market value shall be the determination by such Independent Appraiser;
         and PROVIDED, FURTHER that all determinations of the Per Share Market
         Value shall be appropriately adjusted for any stock dividends, stock
         splits or other similar transactions during such period. The
         determination of fair market value shall be based upon the fair market
         value of the Issuer determined on a going concern basis as between a
         willing buyer and a willing seller and taking into account all relevant
         factors determinative of value, and shall be final and binding on all
         parties. In determining the fair market value of any shares of Common
         Stock, no consideration shall be given to any restrictions on transfer
         of the Common Stock imposed by agreement or by federal or state
         securities laws, or to the existence or absence of, or any limitations
         on, voting rights.

                  "SECURITIES" means any debt or equity securities of the
         Issuer, whether now or hereafter authorized, any instrument convertible
         into or exchangeable for Securities or a Security, and any option,
         warrant or other right to purchase or acquire any Security. "Security"
         means one of the Securities.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended,
         or any similar federal statute then in effect.

                  "SUBSIDIARY" means any corporation at least 50% of whose
         outstanding Voting Stock shall at the time be owned directly or
         indirectly by the Issuer or by one or more of its Subsidiaries, or by
         the Issuer and one or more of its Subsidiaries.

                  "TERM" has the meaning specified in Section 1 hereof.

                  "TRADING DAY" means (a) a day on which the Common Stock is
         traded on the OTC Bulletin Board, or (b) if the Common Stock is not
         traded on the OTC Bulletin Board, a day on which the Common Stock is
         quoted in the over-the-counter market as reported by the National
         Quotation Bureau Incorporated (or any similar organization or agency
         succeeding its functions of reporting prices); PROVIDED, HOWEVER, that
         in the event that the Common Stock is not listed or quoted as set forth
         in (a) or (b) hereof, then Trading Day shall mean any day except
         Saturday, Sunday and any day which shall be a legal holiday or a day on
         which banking institutions in the State of New York are authorized or
         required by law or other government action to close.

                  "VOTING STOCK" means, as applied to the Capital Stock of any
         corporation, Capital Stock of any class or classes (however designated)
         having ordinary voting power for the election of a majority of the
         members of the Board of Directors (or other governing body) of such
         corporation, other than Capital Stock having such power only by reason
         of the happening of a contingency.

                                       16

<PAGE>

                  "WARRANTS" means the Advisory Warrants issued pursuant to the
         Addendum to Agreement dated February 11, 2005 between the Company and
         Burnham Hill Partners, a division of Pali Capital, Inc., and any other
         warrants of like tenor issued in substitution or exchange for any
         thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof
         or of any of such other Warrants.

                  "WARRANT CONSIDERATION" has the meaning specified in Section
         4(i)(i) hereof.

                  "WARRANT PRICE" means an initial exercise price of U.S. $0.60
         per share. The exercise price may be adjusted from time to time as
         shall result from the adjustments specified in this Warrant, including
         Section 4 hereto.

                  "WARRANT SHARE NUMBER" means at any time the aggregate number
         of shares of Warrant Stock which may at such time be purchased upon
         exercise of this Warrant, after giving effect to all prior adjustments
         and increases to such number made or required to be made under the
         terms hereof.

                  "WARRANT STOCK" means Common Stock issuable upon exercise of
         any Warrant or Warrants or otherwise issuable pursuant to any Warrant
         or Warrants.

         9. OTHER NOTICES. In case at any time:

                           (A)      the Issuer shall make any distributions to
                                    the holders of Common Stock; or

                           (B)      the Issuer shall authorize the granting to
                                    all holders of its Common Stock of rights to
                                    subscribe for or purchase any shares of
                                    Capital Stock of any class or of any Common
                                    Stock Equivalents or other rights; or

                           (C)      there shall be any reclassification of the
                                    Capital Stock of the Issuer; or

                           (D)      there shall be any capital reorganization by
                                    the Issuer; or

                           (E)      there shall be any (i) consolidation or
                                    merger involving the Issuer or (ii) sale,
                                    transfer or other disposition of all or
                                    substantially all of the Issuer's property,
                                    assets or business (except a merger or other
                                    reorganization in which the Issuer shall be
                                    the surviving corporation and its shares of
                                    Capital Stock shall continue to be
                                    outstanding and unchanged and except a
                                    consolidation, merger, sale, transfer or
                                    other disposition involving a wholly-owned
                                    Subsidiary); or

                                       17

<PAGE>

                           (F)      there shall be a voluntary or involuntary
                                    dissolution, liquidation or winding-up of
                                    the Issuer or any partial liquidation of the
                                    Issuer or distribution to holders of Common
                                    Stock;

then, in each of such cases, the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer shall close or a record shall
be taken for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be. Such notice shall be given at least twenty
(20) days prior to the action in question and not less than twenty (20) days
prior to the record date or the date on which the Issuer's transfer books are
closed in respect thereto. The Holder shall have the right to send two (2)
representatives selected by it to each meeting, who shall be permitted to
attend, but not vote at, such meeting and any adjournments thereof. This Warrant
entitles the Holder to receive copies of all financial and other information
distributed or required to be distributed to the holders of the Common Stock.

         10. AMENDMENT AND WAIVER. Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), by a written instrument or written instruments executed by the
Issuer and the Majority Holders; PROVIDED, HOWEVER, that no such amendment or
waiver shall reduce the Warrant Share Number, increase the Warrant Price,
shorten the period during which this Warrant may be exercised or modify any
provision of this Section 10 without the consent of the Holder of this Warrant.

         11. GOVERNING LAW. This Warrant shall be governed by and construed in
accordance with the internal laws of the State of California, without giving
effect to any of the conflicts of law principles which would result in the
application of the substantive law of another jurisdiction. This Warrant shall
not be interpreted or construed with any presumption against the party causing
this Warrant to be drafted.

         12. NOTICES. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earlier of (i) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice prior to 5:00 p.m., eastern time, on a
Trading Day, (ii) the Trading Day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile telephone number
specified for notice later than 5:00 p.m., eastern time, on any date and earlier
than 11:59 p.m., eastern time, on such date, (iii) the Trading Day following the
date of mailing, if sent by nationally recognized overnight courier service or
(iv) actual receipt by the party to whom such notice is required to be given.
The addresses for such communications shall be with respect to the Holder of
this Warrant or of Warrant Stock issued pursuant hereto, addressed to such
Holder at its last known address or facsimile number appearing on the books of
the Issuer maintained for such purposes, or with respect to the Issuer,
addressed to:

                                       18

<PAGE>

                                            Raptor Networks Technology, Inc.
                                            1241 E. Dyer Road
                                            Santa Ana, CA 92705
                                            Attention: Chief Financial Officer
                                            Tel. No.: (949) 623-9300
                                            Fax No.:  (949) 623-9400

                      with a copy to:       Rutan & Tucker, LLP
                                            611 Anton Blvd., Fourteenth Floor
                                            Costa Mesa, CA 92626
                                            Attn: Thomas J. Crane, Esq.
                                            Tel. No.: (714) 641-5100
                                            Fax No.: (714) 546-9035

Copies of notices to the Holder shall be sent to the Holder's address of record
on the issuance date. Any party hereto may from time to time change its address
for notices by giving at least ten (10) days written notice of such changed
address to the other party hereto.

         13. WARRANT AGENT. The Issuer may, by written notice to each Holder of
this Warrant, appoint an agent having an office in New York, New York for the
purpose of issuing shares of Warrant Stock on the exercise of this Warrant
pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant
to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any
such issuance, exchange or replacement, as the case may be, shall be made at
such office by such agent.

         14. REMEDIES. The Issuer stipulates that the remedies at law of the
Holder of this Warrant in the event of any default or threatened default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that, to the fullest extent permitted by
law, such terms may be specifically enforced by a decree for the specific
performance of any agreement contained herein or by an injunction against a
violation of any of the terms hereof or otherwise.

         15. 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 Holder of Warrant Stock.

         16. MODIFICATION AND SEVERABILITY. If, in any action before any court
or agency legally empowered to enforce any provision contained herein, any
provision hereof is found to be unenforceable, then such provision shall be
deemed modified to the extent necessary to make it enforceable by such court or
agency. If any such provision is not enforceable as set forth in the preceding
sentence, the unenforceability of such provision shall not affect the other
provisions of this Warrant, but this Warrant shall be construed as if such
unenforceable provision had never been contained herein.

                                       19

<PAGE>

         17. 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.

                                       20

<PAGE>

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

                                        RAPTOR NETWORKS TECHNOLOGY, INC.

                                        By:      /S/ Bob Van Leyen
                                              ------------------------------
                                              Name: Bob van Leyen
                                              Title: Chief Financial Officer

                                       21

<PAGE>

                                  EXERCISE FORM

                        RAPTOR NETWORKS TECHNOLOGY, INC.

The undersigned _______________, pursuant to the provisions of the within
Warrant, hereby elects to purchase _____ shares of Common Stock of Raptor
Networks Technology, Inc. covered by the within Warrant.

Dated: _________________                    Signature __________________________

                                            Address  _____________________
                                                     _____________________

Number of shares of Common Stock beneficially owned or deemed beneficially owned
by the Holder on the date of Exercise determined in accordance with Section 16
of the Securities Exchange Act of 1934, as amended: _________________________

                                   ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: _________________                    Signature __________________________

                                            Address  _____________________
                                                     _____________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the right to purchase _________ shares of Warrant Stock
evidenced by the within Warrant together with all rights therein, and does
irrevocably constitute and appoint ___________________, attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: _________________                    Signature __________________________

                                            Address  _____________________
                                                     _____________________

                                       22

<PAGE>

                           FOR USE BY THE ISSUER ONLY:

This Warrant No. W-_____ canceled (or transferred or exchanged) this _____ day
of ___________, _____, shares of Common Stock issued therefor in the name of
_______________, Warrant No. W-_____ issued for ____ shares of Common Stock in
the name of _______________.

                                       23

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