Document:

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 APPLICABLE FOREIGN OR STATE
SECURITIES LAWS. THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED,
SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER SUCH ACT
OR LAWS UNLESS OFFERRED, SOLD OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT OR LAWS.

	
  Warrant No. ___

  	
   

  

 

WARRANT

To Purchase Shares
of Common Stock of

CIPRICO
INC.

June 6,
2006

CIPRICO INC., a
Delaware corporation (the “Company”), for value received, hereby
certifies that Broadcom Corporation (the “Holder”) is entitled, subject
to the terms set forth below, upon exercise of this Warrant to purchase from
the Company such number of shares of the common stock, par value $0.01 per
share, of the Company (the “Ciprico Common Stock”) specified in Section 2(b) below
at the exercise price per share specified in Section 2(a) below (as
adjusted pursuant to the terms of this Warrant). The shares of the Ciprico
Common Stock issuable upon exercise of this Warrant, as adjusted from time to
time pursuant to the provisions of this Warrant, are hereinafter referred to as
the “Warrant Shares.”

This Warrant is
one of a series of warrants issued pursuant to that certain Technology License
and Asset Purchase Agreement of even date herewith to which the Company and the
original Holder are parties (the “Agreement”).

This Warrant is
further subject to the following provisions, terms and conditions:

1.             Term; Termination of Warrant.

(a)           Subject to the
vesting requirements set forth in Section 2, this Warrant may be exercised
by the Holder, in whole or in part, in the manner described in Section 3
hereof at any time before 5:00 p.m. in Minneapolis, Minnesota on June 6,
2012 (the “Expiration Date”). In the event that the Expiration Date of
this Warrant falls on a day which is not a Business Day, the Expiration Date
shall be adjusted to the Business Day immediately following such Expiration
Date. As used herein, the term “Business Day” means each day other than
a Saturday, Sunday or other day on which banks in the location of the principal
office of the Company are legally authorized to close. At 5:00 p.m., Minnesota time on the
Expiration Date, the portion of this Warrant not exercised prior thereto shall
be and become void and of no value, provided, that if the closing sales price
of Ciprico Common Stock on the Expiration Date is greater than 150% of the
Exercise Price on the Expiration Date, then this Warrant shall be deemed to
have been 

 

exercised in full (to the extent not previously
exercised) on a “cashless exercise” basis at 5:00 p.m. Minnesota time on
the Expiration Date.

2.             Warrant Shares and Exercise
Price.

(a)           Exercise Price.
The per share warrant exercise price (the “Exercise Price”) shall equal $8.00, subject to adjustment as provided
herein.

(b)           Number
of Warrant Shares. This Warrant shall become exercisable based on the
vesting provisions set forth in paragraph 2(c), for 300,000 shares of Ciprico Common Stock, subject to adjustment
as provided herein. Holder may continue to exercise this Warrant under the
terms and conditions set forth herein until the termination or expiration of
the Warrant as provided herein. If the
Holder does not purchase upon an exercise of this Warrant the full number of
shares which Holder is then entitled to purchase, the Holder may purchase upon
any subsequent exercise prior to this Warrant’s termination such previously
unpurchased shares in addition to those the Holder is otherwise entitled to
purchase.

(c)  Vesting.
This Warrant shall vest and become exercisable as to 100% of the total Warrant
Shares on June 6, 2008 if Company Revenues from the Licensed Software
(whether pursuant to licenses sold by Holder or Company, and whether for Holder
or non-Holder based platforms) for the period from June 6, 2007 to June 6,
2008 exceed four million dollars ($4,000,000) and Company Revenue related to
RAID Controller Cards for the period from June 6, 2007 to June 6,
2008 exceeds fifteen million dollars ($15,000,000). Otherwise, if this Warrant
has not vested previously, then this Warrant shall vest and become exercisable
as to 100% of the total Warrant Shares on June 6, 2009 if the aggregate
Company Revenues from the Licensed Software (whether pursuant to licenses sold
by Holder or Company, and whether for Holder or non-Holder based platforms) for
the period from the date of the Closing to June 6, 2009 exceed ten million
dollars ($10,000,000) and the aggregate Company Revenues related to RAID
Controller Cards for the period from the date of the Closing to June 6,
2009 exceed forty million dollars ($40,000,000). For purposes of this Warrant,
the terms “Revenue,” “Licensed Software,” “RAID Controller Cards,” and “Closing”
shall have the meaning set forth in the corresponding definitions of the
Agreement.

3.             Manner of Exercise. Subject to the vesting
provisions set forth in paragraph 2 (c) above, this Warrant may be
exercised by the Holder, in whole or in part (but not as to any fraction of a
share of Ciprico Common Stock), by surrendering this Warrant, with the Exercise
Form attached hereto as Exhibit A
filled in and duly executed by such Holder or by such Holder’s duly authorized
attorney, to the Company at its principal office accompanied by payment of the
aggregate exercise price therefore (equal to the Exercise Price multiplied by
the number of shares as to which the Warrant is being exercised).

At the option of the Holder, the Exercise Price may be
paid in one or more of the following manners:

 

(i)                     a certified
check or wire transfer of immediately available funds,

(ii)                  surrender
of stock certificates then held representing that number of shares having an
aggregate current fair market value (as defined in paragraph 5(b) below)
on the date of exercise equal to the aggregate Exercise Price for all shares to
be purchased pursuant to this Warrant, or

(iii)               by a “Cashless
Exercise,” in which event the Company shall issue to the Holder the number of
Warrant Shares determined as follows:

X = Y [(A-B)/A]

where:

X =
the number of Warrant Shares to be issued to the Holder.

Y =
the number of Warrant Shares with respect to which this Warrant is being
exercised.

A =
the fair market value (as defined in paragraph 5(b) below) of Ciprico
Common Stock on the date of exercise.

B =
the Exercise Price.

(iv)              any combination of
the foregoing methods.

For purposes of Rule 144 promulgated under the
Securities Act, it is intended, understood and acknowledged that the Warrant
Shares issued in a cashless exercise transaction shall be deemed to have been
acquired by the Holder, and the holding period for such Warrant Shares shall be
deemed to have commenced, on the date this Warrant was originally issued.

4.             Effective Date of Exercise. Each exercise of this
Warrant shall be deemed effective as of the close of business on the day on
which this Warrant is surrendered to the Company as provided in Section 3
above. At such time, the person or persons in whose name or names any
certificates for Warrant Shares shall be issuable upon such exercise shall be
deemed to have become the holder or holders of record of the Warrant Shares
represented by such certificates. As promptly as practicable, but in no event
later than 15 Business Days after the exercise of this Warrant in full or in
part, the Company will, at its expense, cause to be issued in the name of and
delivered to the Holder or such other person as the Holder may (upon payment by
such Holder of any applicable transfer taxes) direct:  (i) a certificate or certificates for
the number of full Warrant Shares to which such Holder is entitled upon such
exercise (or upon the Holder’s request, the Company will deliver the Warrant
Shares hereunder electronically through the Depository Trust Corporation or
another established clearing corporation performing similar functions), and (ii) unless
this Warrant has expired, a new Warrant or Warrants (dated the date hereof and
in form identical hereto) representing the right to purchase the remaining
number of shares of Ciprico Common Stock, if any, with respect to which this
Warrant has not then been exercised.

 

Notwithstanding the foregoing, however, the Company shall not be
required to deliver any certificate for Warrant Shares upon exercise of this
Warrant except in accordance with exemptions from the applicable securities
registration requirements or registrations under applicable securities laws. Nothing
herein, however, shall obligate the Company to effect registrations under
federal or state securities laws. If registrations are not in effect and if
exemptions are not available when the Holder seeks to exercise the Warrant, the
Warrant exercise period will be extended, if need be, to prevent the Warrant
from expiring, until such time as either registrations become effective or
exemptions are available, and the Warrant shall then remain exercisable for a
period of at least 30 calendar days from the date the Company delivers to the
Holder written notice of the availability of such registrations or exemptions. The
Holder agrees to execute such documents and make such representations,
warranties, and agreements as may be required solely to comply with the
exemptions relied upon by the Company, or the registrations made, for the
issuance of the Warrant Shares.

5.             Protection Against Dilution.

(a)           Adjustment for
Stock Splits, Dividends and Combinations. If the Company, at any time after
the date of this Warrant, subdivides, declares a dividend payable in, or
combines the outstanding shares of Ciprico Common Stock then (i) the
number of shares of Ciprico Common Stock for which this Warrant may be
exercised as of immediately prior to the subdivision, combination or record
date for such dividend payable in Ciprico Common Stock shall forthwith be
proportionately decreased, in the case of combination, or increased, in the
case of subdivision or dividend payable in Ciprico Common Stock (calculated to
the next highest whole share), and (ii) the Exercise Price in effect
immediately prior to the subdivision, combination or record date for such
dividend payable in Ciprico Common Stock shall forthwith be proportionately
increased, in the case of combination, or decreased, in the case of subdivision
or dividend payable in Ciprico Common Stock, computed to the nearest whole
cent.

(b)           Adjustment for
Other Dividends and Distributions. If the Company, at any time after the
date of this Warrant, distributes to holders of Ciprico Common Stock any assets
or debt securities or any rights or warrants to purchase debt securities,
assets or other securities (including Ciprico Common Stock, other than pursuant
to a stock split or stock dividend under Section 5(a) above), the
Exercise Price shall be adjusted in accordance with the formula:

E1 = E x [(O x M) - F]

O x M

where:

E1  =     the
adjusted Exercise Price, computed to the nearest whole cent.

E   =      the
Exercise Price prior to adjustment pursuant to this subsection.

M  =     the
fair market value per share of Ciprico Common Stock before the record date mentioned
below.

 

O  =        the
number of shares of Ciprico Common Stock outstanding on the record date
mentioned below.

F  =         the
fair market value on the record date of the aggregate of all assets,
securities, rights or warrants
                                          distributed,
as determined in good faith by the Company’s Board of Directors.

The adjustment
shall be made successively whenever any such distribution is made and shall
become effective immediately after the record date for the determination of
stockholders entitled to receive the distribution. Upon each adjustment of the
Exercise Price, the Holder shall be entitled to purchase, at the Exercise Price
resulting from such adjustment, the number of shares (calculated to the next
highest whole share) that is equal to the quotient of (i) the Exercise
Price immediately prior to such adjustment multiplied by the number of shares
purchasable pursuant hereto immediately prior to such adjustment; divided by (ii) the
Exercise Price resulting from such adjustment.

(c)           For purposes of this
paragraph 5(b) and paragraph 3 above, the “fair market value” of a
share of Ciprico Common Stock shall be calculated as follows:

(i)            if
the Ciprico Common Stock is listed on the Nasdaq National Market, Nasdaq
SmallCap Market, or an established stock exchange, then the average of the
prices of such stock at the close of the regular trading session of such market
or exchange for the ten (10) Business Days immediately preceding the
applicable valuation date, or

(ii)           if
the Common Stock is not so listed on the
Nasdaq National Market, Nasdaq SmallCap Market, or an established stock
exchange, then the average of the
closing “bid” and “asked” prices quoted by the OTC Bulletin Board, the National
Quotation Bureau, or any comparable reporting service for the ten (10) Business
Days immediately preceding the applicable valuation date, or

(iii)         if the Common Stock
is not publicly traded as of such date, the per share fair market value as
reasonably determined in good faith by the Company’s Board of Directors.

(d)           If,
at any time while this Warrant is outstanding, (i) the Company effects any
merger or consolidation of the Company with or into another Person (as defined
below), (ii) the Company effects any sale of all or substantially all of
its assets or licenses all or substantially all of its intellectual property in
one or a series of related transactions, or (iii) the Company effects any
reclassification of the Ciprico Common Stock or any compulsory share exchange
pursuant to which the Ciprico Common Stock is effectively converted into or
exchanged for other securities, cash or property (in any such case, a “Fundamental
Transaction”), then the Holder shall have the right thereafter to receive,
upon exercise of this Warrant, the same amount and kind of securities, cash or
property as it would have been entitled to receive upon the occurrence of such
Fundamental Transaction if it had been, immediately prior to such Fundamental
Transaction, the holder of the number of Warrant Shares then issuable upon
exercise in full of this Warrant (the “Alternate Consideration”). For
purposes of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Ciprico
Common Stock in 

 

such Fundamental Transaction, and the Company shall
apportion the Exercise Price among the Alternate Consideration in a reasonable
manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Ciprico Common Stock are given any
choice as to the securities, cash or property to be received in a Fundamental
Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. At the Holder’s request, any successor to the Company
or surviving entity in such Fundamental Transaction shall, issue to the Holder
a new warrant substantially in the form of this Warrant and consistent with the
foregoing provisions and evidencing the Holder’s right to purchase the
Alternate Consideration for the aggregate Exercise Price upon exercise thereof.
The terms of any agreement pursuant to which a Fundamental Transaction is
effected shall include terms requiring any such successor or surviving entity
to comply with the provisions of this paragraph (c) and insuring that the
Warrant (or any such replacement security) will be similarly adjusted upon any
subsequent transaction analogous to a Fundamental Transaction. “Person” means any natural person, corporation, general
partnership, limited partnership, limited liability company or partnership,
proprietorship, or other business organization.

(e)           If, prior to June 6,
2009, (i) a Fundamental Transaction occurs, (ii) in the one year
period prior to the Fundamental Transaction the Company has generated Revenues
from the Licensed Software (whether pursuant to licenses sold by Holder or
Company, and whether for Holder or non-Holder based platforms) of at least
three million two hundred thousand dollars ($3,200,000) and Revenues related to
RAID Controller Cards of at least twelve million dollars ($12,000,000), and (iii) the
surviving entity following the Fundamental Transaction (the “Surviving Company”)
fails to generate Minimum Post-Acquisition Revenues (as defined below) in the
period ending on the one year anniversary of the Fundamental Transaction, then
any Warrant Shares at the time subject to this Warrant but not otherwise vested
shall automatically vest so that this Warrant shall become exercisable for all
of the Warrant Shares as fully vested shares of Common Stock of the Surviving
Company and may be exercised for any or all of those vested shares. “Minimum
Post-Acquisition Revenues” shall equal the sum of (i) 80% of the
Company’s Revenue relating to RAID Controller Cards in the four most recent
fiscal quarters prior to the Fundamental Transaction; and (ii) 80% of the
Company’s Revenue from the Licensed Software (whether pursuant to licenses sold
by Holder or Company, and whether for Holder or non-Holder based platforms) in
the four most recent fiscal quarters prior to the Fundamental Transaction.

(f)            Successive
Adjustments and Notice. The above provisions of this Section 5 shall
similarly apply to successive stock splits, combinations, dividends,
reorganizations, reclassifications, consolidations, mergers or sales. The
Company shall deliver written notice of each such event, and of each such
adjustment to the Exercise Price and type of shares or other consideration
acquirable upon exercise of this Warrant resulting from such proposed event, to
the Holder not less than twenty (20) days prior to such event. Such notice
shall set forth, in reasonable detail, the event requiring the adjustment, the
amount of the adjustment and the method by which such adjustment was calculated.
If any event occurs of the type contemplated by the adjustment provisions
herein, but which is not expressly provided for by such provisions, the Company
will deliver notice of such event as provided above and the Company will make
an appropriate adjustment in the Exercise Price and the number and type of
shares acquirable upon 

 

exercise of this Warrant so that the rights of the
Holder shall be neither enhanced nor diminished as a result of such event.

6.             No Voting Rights. This Warrant shall not entitle
the Holder to any voting rights or other rights as a stockholder of the Company
unless and until exercised pursuant to the provisions hereof.

7.             Transfer or Exchange without
Registration; Covenants of Holder.

(a)           In the event the
Holder desires to transfer this Warrant or the Warrant Shares acquirable upon
exercise thereof, the Holder shall provide the Company written notice
describing the manner of such transfer and an opinion of counsel which shall be
satisfactory to the Company and counsel to the Company, that the proposed
transfer may be effected without registration under the Securities Act or
applicable state securities registration laws, whereupon the Holder shall be
entitled to transfer this Warrant or the Warrant Shares in accordance with such
notice upon receipt of the consent of the Company to such transfer, which
consent will not be unreasonably withheld. Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft, or destruction, upon
delivery of an indemnity agreement reasonably satisfactory in form an amount to
the Company, or, in the case of any such mutilation, upon surrender of this
Warrant, the Company, at its expense, will execute and deliver, in lieu
thereof, a new Warrant of like tenor. The
Company may condition any issuance or sale, pledge, assignment or other
disposition of the Warrant or the Warrant Shares on the receipt from the party
to whom this Warrant is to be so transferred or to whom Warrant Shares are to
be issued or so transferred of any representations and agreements requested by
the Company in order to permit such issuance or transfer to be made pursuant to
exemptions from registration under federal and applicable state securities laws.
Each certificate representing the Warrant (or any part thereof) and any Warrant
Shares shall be stamped with appropriate legends setting forth these
restrictions on transferability.

(b)           The Holder, by
acceptance hereof, represents and warrants that (i) the Holder is
acquiring this Warrant for Holder’s own account for investment purposes only
and not with a view to its resale or distribution, (ii) the Holder has no
present intention to resell or otherwise dispose of all or any part of this
Warrant or the Warrant Shares acquirable hereunder, other than pursuant to
registration under federal and state securities laws or an exemption from such
registration, the availability of which the Company shall determine in its sole
and reasonable discretion, (iii) the Holder is an “accredited investor” as
that term is defined in Regulation D of the General Rules and Regulations
promulgated under the Securities Act, and (iv) the Holder is experienced
and knowledgeable in financial and business matters, is capable of evaluating
the merits and risks of investing in the Warrant Shares, and does not need or
desire the assistance of a knowledgeable representative to aid in the
evaluation of such risks.

8.             Covenants of the Company. The Company covenants
and agrees that all shares that may be issued upon exercise of this Warrant
will, upon issuance, be duly authorized and issued, fully paid, nonassessable
and free from all taxes, liens and charges with respect to the issuance thereof.
The Company further covenants and agrees that the Company has and will at all
times have authorized, and reserved for the purpose of issuance upon exercise
hereof, a 

 

sufficient number of shares of its Ciprico Common
Stock to provide for the exercise of this Warrant. The Company agrees that its
issuance of this Warrant shall constitute full authority to its officers who
are charged with the duty of executing stock certificates to execute and issue
the necessary certificates for shares of Ciprico Common Stock upon the exercise
of this Warrant

9.             Certain Notices. The Holder shall be entitled to
receive from the Company, immediately upon declaration thereof and at least 20
days prior to the record date for determination of stockholders entitled
thereto or to vote thereon (or, if no record date is set, prior to the event),
written notice of any event that could require an adjustment pursuant to Section 5
hereof or of the dissolution, liquidation or winding up of the Company. All
notices under this Warrant shall be in writing and shall be delivered
personally or by telecopy (receipt confirmed) to such party (or, in the case of
an entity, to an executive officer of such party) or shall be sent by a
reputable express delivery service or by certified mail, postage prepaid with
return receipt requested, addressed as follows:

if to the Holder, to:

Broadcom Corporation

Attn: David A. Dull

General Counsel

16215 Alton Parkway

Irvine, CA 92618

Fax: (949) 450-0504

if to the Company
to:

Ciprico
Inc.

Attn:  Mr. Monte S. Johnson

Sr. Vice President, Chief
Financial Officer

7400 Medina Road, Suite 800

Plymouth, MN 55447

Ph:  (763) 551-4016

with a copy to:

Fredrikson &
Byron, P.A.

Attn:  Melodie Rose, Esq.

200 South Sixth Street, Suite 4000

Minneapolis, MN 55402-1425

Ph:  (612) 492-7162

Fax:  (612) 492-7077

Any party may
change the above-specified recipient and/or mailing address by notice to
all other parties given in the manner herein prescribed. All notices shall be
deemed given on the day when actually delivered as provided above (if delivered
personally or by telecopy) or on the day shown on the return receipt (if
delivered by mail or delivery service).

 

10.           Governing Law. This Warrant
shall be governed by and construed in accordance with the laws of the State of
Delaware without reference to the choice of law principles thereof. Without
limiting the rights of the parties to pursue in any appropriate jurisdiction
their respective rights with respect to any judgment obtained in respect hereof,
the parties hereby irrevocably consent to the exclusive jurisdiction and venue of the courts of
the State of Delaware or any United States court of competent jurisdiction
situated therein to adjudicate any legal action commenced in respect of this
Warrant and waive any objections either may have at any time to such
jurisdiction and venue. The parties agree to the personal jurisdiction of such
courts and agree that service of process may be made pursuant to notice sent in
accordance with Section 10.

[signature page follows]

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
authorized officer and dated as of the date stated above.

	
  

  	
  CIPRICO INC.

  
	
   

  	
  By:

  	
  /s/ JAMES W. HANSEN

  
	
   

  	
  Its:

  	
  Chairman and Chief Executive OfficerEXHIBIT
10.4

THIS WARRANT, AND THE SHARES OF COMMON STOCK ISSUABLE UPON
EXERCISE HEREOF, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, (THE “SECURITIES ACT”) OR ANY APPLICABLE FOREIGN OR STATE
SECURITIES LAWS. THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED,
SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER SUCH ACT
OR LAWS UNLESS OFFERRED, SOLD OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT OR LAWS.

	
  Warrant No. ___

  	
   

  

 

WARRANT

To Purchase Shares
of Common Stock of

CIPRICO
INC.

June 6, 2006

CIPRICO INC., a
Delaware corporation (the “Company”), for value received, hereby
certifies that Broadcom Corporation (the “Holder”) is entitled, subject
to the terms set forth below, upon exercise of this Warrant to purchase from
the Company such number of shares of the common stock, par value $0.01 per
share, of the Company (the “Ciprico Common Stock”) specified in Section 2(b) below
at the exercise price per share specified in Section 2(a) below (as
adjusted pursuant to the terms of this Warrant). The shares of the Ciprico
Common Stock issuable upon exercise of this Warrant, as adjusted from time to
time pursuant to the provisions of this Warrant, are hereinafter referred to as
the “Warrant Shares.”

This Warrant is
one of a series of warrants issued pursuant to that certain Technology License
and Asset Purchase Agreement of even date herewith to which the Company and the
original Holder are parties (the “Agreement”).

This Warrant is
further subject to the following provisions, terms and conditions:

1.             Term; Termination of Warrant.

(a)           Subject to the
vesting requirements set forth in Section 2, this Warrant may be exercised
by the Holder, in whole or in part, in the manner described in Section 3
hereof at any time before 5:00 p.m. in Minneapolis, Minnesota on June 6,
2012 (the “Expiration Date”). In the event that the Expiration Date of
this Warrant falls on a day which is not a Business Day, the Expiration Date
shall be adjusted to the Business Day immediately following such Expiration
Date. As used herein, the term “Business Day” means each day other than
a Saturday, Sunday or other day on which banks in the location of the principal
office of the Company are legally authorized to close. At 5:00 p.m., Minnesota time on the
Expiration Date, the portion of this Warrant not exercised prior thereto shall
be and become void and of no value, provided, that if the closing sales price
of Ciprico Common Stock on the Expiration Date is greater than 150% of the
Exercise Price on the Expiration Date, then this Warrant shall be deemed to
have been 

 

exercised in full (to the extent not previously exercised) on a “cashless
exercise” basis at 5:00 p.m. Minnesota time on the Expiration Date.

2.             Warrant Shares and Exercise
Price.

(a)           Exercise Price.
The per share warrant exercise price (the “Exercise Price”) shall equal $10.00, subject to adjustment as provided
herein.

(b)           Number
of Warrant Shares. This Warrant shall become exercisable based on the
vesting provisions set forth in paragraph 2(c), for 300,000 shares of Ciprico Common Stock, subject to adjustment
as provided herein. Holder may continue to exercise this Warrant under the
terms and conditions set forth herein until the termination or expiration of
the Warrant as provided herein. If the
Holder does not purchase upon an exercise of this Warrant the full number of
shares which Holder is then entitled to purchase, the Holder may purchase upon
any subsequent exercise prior to this Warrant’s termination such previously
unpurchased shares in addition to those the Holder is otherwise entitled to
purchase.

(c)  Vesting.
This Warrant shall vest and become exercisable as to 100% of the total Warrant
Shares on June 6, 2009 if Company Revenues from the Licensed Software
(whether pursuant to licenses sold by Holder or Company, and whether for Holder
or non-Holder based platforms) for the period from June 6, 2008 to June 6,
2009 exceed four million dollars ($4,000,000) and Company Revenue for the
period from June 6, 2008 to June 6, 2009 related to RAID Controller
Cards exceeds twenty million dollars ($20,000,000). Otherwise, if this Warrant
has not vested previously, then this Warrant shall vest and become exercisable
as to 100% of the total Warrant Shares on June 6, 2009 if the aggregate
Company Revenues from the Licensed Software (whether pursuant to licenses sold
by Holder or Company, and whether for Holder or non-Holder based platforms) for
the period from the date of the Closing to June 6, 2009 exceed ten million
dollars ($10,000,000) and the aggregate Company Revenues related to RAID
Controller Cards for the period from the date of the Closing to June 6,
2009 exceed forty million dollars ($40,000,000). For purposes of this Warrant,
the terms “Revenue,” “Licensed Software,” “RAID Controller Cards,” and “Closing”
shall have the meaning set forth in the corresponding definitions of the
Agreement.

3.             Manner of Exercise. Subject to the vesting
provisions set forth in paragraph 2 (c) above, this Warrant may be
exercised by the Holder, in whole or in part (but not as to any fraction of a
share of Ciprico Common Stock), by surrendering this Warrant, with the Exercise
Form attached hereto as Exhibit A
filled in and duly executed by such Holder or by such Holder’s duly authorized
attorney, to the Company at its principal office accompanied by payment of the
aggregate exercise price therefore (equal to the Exercise Price multiplied by
the number of shares as to which the Warrant is being exercised).

At the option of the Holder, the Exercise Price may be
paid in one or more of the following manners:

 

(i)             a certified check or
wire transfer of immediately available funds,

(ii)          surrender of stock
certificates then held representing that number of shares having an aggregate
current fair market value (as defined in paragraph 5(b) below) on the date
of exercise equal to the aggregate Exercise Price for all shares to be
purchased pursuant to this Warrant, or

(iii)        by a “Cashless Exercise,”
in which event the Company shall issue to the Holder the number of Warrant
Shares determined as follows:

X = Y [(A-B)/A]

where:

X =
the number of Warrant Shares to be issued to the Holder.

Y =
the number of Warrant Shares with respect to which this Warrant is being
exercised.

A =
the fair market value (as defined in paragraph 5(b) below) of Ciprico
Common Stock on the date of exercise.

B =
the Exercise Price.

(iv)      any combination of the
foregoing methods.

For purposes of Rule 144 promulgated under the
Securities Act, it is intended, understood and acknowledged that the Warrant
Shares issued in a cashless exercise transaction shall be deemed to have been
acquired by the Holder, and the holding period for such Warrant Shares shall be
deemed to have commenced, on the date this Warrant was originally issued.

4.             Effective Date of Exercise. Each exercise of this
Warrant shall be deemed effective as of the close of business on the day on
which this Warrant is surrendered to the Company as provided in Section 3
above. At such time, the person or persons in whose name or names any
certificates for Warrant Shares shall be issuable upon such exercise shall be
deemed to have become the holder or holders of record of the Warrant Shares
represented by such certificates. As promptly as practicable, but in no event
later than 15 Business Days after the exercise of this Warrant in full or in
part, the Company will, at its expense, cause to be issued in the name of and
delivered to the Holder or such other person as the Holder may (upon payment by
such Holder of any applicable transfer taxes) direct:  (i) a certificate or certificates for
the number of full Warrant Shares to which such Holder is entitled upon such
exercise (or upon the Holder’s request, the Company will deliver the Warrant
Shares hereunder electronically through the Depository Trust Corporation or
another established clearing corporation performing similar functions), and (ii) unless
this Warrant has expired, a new Warrant or Warrants (dated the date hereof and
in form identical hereto) representing the right to purchase the remaining
number of shares of Ciprico Common Stock, if any, with respect to which this
Warrant has not then been exercised.

Notwithstanding the foregoing, however, the Company shall not be
required to deliver any certificate for Warrant Shares upon exercise of this
Warrant except in accordance with exemptions from the applicable securities
registration requirements or registrations under applicable securities laws. Nothing
herein, however, shall obligate the Company to effect registrations under
federal or 

 

state
securities laws. If registrations are not in effect and if exemptions are not
available when the Holder seeks to exercise the Warrant, the Warrant exercise
period will be extended, if need be, to prevent the Warrant from expiring,
until such time as either registrations become effective or exemptions are
available, and the Warrant shall then remain exercisable for a period of at
least 30 calendar days from the date the Company delivers to the Holder written
notice of the availability of such registrations or exemptions. The Holder
agrees to execute such documents and make such representations, warranties, and
agreements as may be required solely to comply with the exemptions relied upon
by the Company, or the registrations made, for the issuance of the Warrant
Shares.

5.             Protection Against Dilution.

(a)           Adjustment for
Stock Splits, Dividends and Combinations. If the Company, at any time after
the date of this Warrant, subdivides, declares a dividend payable in, or
combines the outstanding shares of Ciprico Common Stock then (i) the
number of shares of Ciprico Common Stock for which this Warrant may be
exercised as of immediately prior to the subdivision, combination or record
date for such dividend payable in Ciprico Common Stock shall forthwith be
proportionately decreased, in the case of combination, or increased, in the
case of subdivision or dividend payable in Ciprico Common Stock (calculated to
the next highest whole share), and (ii) the Exercise Price in effect
immediately prior to the subdivision, combination or record date for such
dividend payable in Ciprico Common Stock shall forthwith be proportionately
increased, in the case of combination, or decreased, in the case of subdivision
or dividend payable in Ciprico Common Stock, computed to the nearest whole
cent.

(b)           Adjustment for
Other Dividends and Distributions. If the Company, at any time after the
date of this Warrant, distributes to holders of Ciprico Common Stock any assets
or debt securities or any rights or warrants to purchase debt securities,
assets or other securities (including Ciprico Common Stock, other than pursuant
to a stock split or stock dividend under Section 5(a) above), the
Exercise Price shall be adjusted in accordance with the formula:

E1 = E x [(O x M) - F]

      O x M

where:

E1  =        the
adjusted Exercise Price, computed to the nearest whole cent.

E   =        the
Exercise Price prior to adjustment pursuant to this subsection.

M  =                       the fair market value per share
of Ciprico Common Stock before the record date mentioned below.

O  =                          the number of shares of
Ciprico Common Stock outstanding on the record date mentioned below.

F  =                            the fair market value on
the record date of the aggregate of all assets, securities, rights or warrants
distributed, as determined in good faith by the Company’s Board of Directors.

 

The adjustment
shall be made successively whenever any such distribution is made and shall
become effective immediately after the record date for the determination of
stockholders entitled to receive the distribution. Upon each adjustment of the
Exercise Price, the Holder shall be entitled to purchase, at the Exercise Price
resulting from such adjustment, the number of shares (calculated to the next
highest whole share) that is equal to the quotient of (i) the Exercise
Price immediately prior to such adjustment multiplied by the number of shares
purchasable pursuant hereto immediately prior to such adjustment; divided by (ii) the
Exercise Price resulting from such adjustment.

(c)           For purposes of this
paragraph 5(b) and paragraph 3 above, the “fair market value” of a
share of Ciprico Common Stock shall be calculated as follows:

(i)            if
the Ciprico Common Stock is listed on the Nasdaq National Market, Nasdaq
SmallCap Market, or an established stock exchange, then the average of the
prices of such stock at the close of the regular trading session of such market
or exchange for the ten (10) Business Days immediately preceding the
applicable valuation date, or

(ii)           if
the Common Stock is not so listed on the
Nasdaq National Market, Nasdaq SmallCap Market, or an established stock
exchange, then the average of the
closing “bid” and “asked” prices quoted by the OTC Bulletin Board, the National
Quotation Bureau, or any comparable reporting service for the ten (10) Business
Days immediately preceding the applicable valuation date, or

(iii)         if the Common Stock
is not publicly traded as of such date, the per share fair market value as
reasonably determined in good faith by the Company’s Board of Directors.

(d)           If, at any time
while this Warrant is outstanding, (i) the Company effects any merger or
consolidation of the Company with or into another Person (as defined below), (ii) the
Company effects any sale of all or substantially all of its assets or licenses
all or substantially all of its intellectual property in one or a series of
related transactions, or (iii) the Company effects any reclassification of
the Ciprico Common Stock or any compulsory share exchange pursuant to which the
Ciprico Common Stock is effectively converted into or exchanged for other
securities, cash or property (in any such case, a “Fundamental Transaction”),
then the Holder shall have the right thereafter to receive, upon exercise of
this Warrant, the same amount and kind of securities, cash or property as it
would have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction,
the holder of the number of Warrant Shares then issuable upon exercise in full
of this Warrant (the “Alternate Consideration”). For purposes of any
such exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Ciprico Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate Consideration.
If holders of Ciprico Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives
upon any exercise of this Warrant following such Fundamental Transaction. At
the Holder’s request, any successor to the Company or surviving entity in such
Fundamental Transaction shall, issue to the Holder a new warrant substantially
in the form of this Warrant and consistent with the foregoing provisions and
evidencing the Holder’s right to purchase the Alternate Consideration for the 

 

aggregate
Exercise Price upon exercise thereof. The terms of any agreement pursuant to
which a Fundamental Transaction is effected shall include terms requiring any
such successor or surviving entity to comply with the provisions of this
paragraph (c) and insuring that the Warrant (or any such replacement
security) will be similarly adjusted upon any subsequent transaction analogous
to a Fundamental Transaction. “Person” means any natural person,
corporation, general partnership, limited partnership, limited liability
company or partnership, proprietorship, or other business organization.

(e)           If, prior to June 6,
2009, (i) a Fundamental Transaction occurs, (ii) in the one year
period prior to the Fundamental Transaction the Company has generated Revenues from the Licensed Software
(whether pursuant to licenses sold by Holder or Company, and whether for Holder
or non-Holder based platforms) of at least three million two hundred thousand
dollars ($3,200,000) and Revenues related to RAID Controller Cards of at least
sixteen million dollars ($16,000,000), and (iii) the surviving
entity following the Fundamental Transaction (the “Surviving Company”) fails to
generate Minimum Post-Acquisition Revenues (as defined below) in the period
ending on the one year anniversary of the Fundamental Transaction, then any
Warrant Shares at the time subject to this Warrant but not otherwise vested
shall automatically vest so that this Warrant shall become exercisable for all
of the Warrant Shares as fully vested shares of Common Stock of the Surviving
Company and may be exercised for any or all of those vested shares. “Minimum
Post-Acquisition Revenues” shall equal the sum of (i) 80% of the
Company’s Revenue relating to RAID Controller Cards in the four most recent
fiscal quarters prior to the Fundamental Transaction; and (ii) 80% of the
Company’s Revenue from the Licensed Software (whether pursuant to licenses sold
by Holder or Company, and whether for Holder or non-Holder based platforms) in
the four most recent fiscal quarters prior to the Fundamental Transaction.

(f)            Successive
Adjustments and Notice. The above provisions of this Section 5 shall
similarly apply to successive stock splits, combinations, dividends,
reorganizations, reclassifications, consolidations, mergers or sales. The
Company shall deliver written notice of each such event, and of each such
adjustment to the Exercise Price and type of shares or other consideration
acquirable upon exercise of this Warrant resulting from such proposed event, to
the Holder not less than twenty (20) days prior to such event. Such notice
shall set forth, in reasonable detail, the event requiring the adjustment, the
amount of the adjustment and the method by which such adjustment was calculated.
If any event occurs of the type contemplated by the adjustment provisions
herein, but which is not expressly provided for by such provisions, the Company
will deliver notice of such event as provided above and the Company will make
an appropriate adjustment in the Exercise Price and the number and type of
shares acquirable upon exercise of this Warrant so that the rights of the
Holder shall be neither enhanced nor diminished as a result of such event.

6.             No Voting Rights. This Warrant shall not entitle
the Holder to any voting rights or other rights as a stockholder of the Company
unless and until exercised pursuant to the provisions hereof.

7.             Transfer or Exchange without
Registration; Covenants of Holder.

(a)           In the event the
Holder desires to transfer this Warrant or the Warrant Shares acquirable upon
exercise thereof, the Holder shall provide the Company written notice
describing the manner of such transfer and an opinion of counsel which shall be
satisfactory to 

 

the Company
and counsel to the Company, that the proposed transfer may be effected without
registration under the Securities Act or applicable state securities
registration laws, whereupon the Holder shall be entitled to transfer this
Warrant or the Warrant Shares in accordance with such notice upon receipt of
the consent of the Company to such transfer, which consent will not be
unreasonably withheld. Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft, or destruction, upon delivery of an indemnity
agreement reasonably satisfactory in form an amount to the Company, or, in the
case of any such mutilation, upon surrender of this Warrant, the Company, at
its expense, will execute and deliver, in lieu thereof, a new Warrant of like
tenor. The Company may condition any
issuance or sale, pledge, assignment or other disposition of the Warrant or the
Warrant Shares on the receipt from the party to whom this Warrant is to be so
transferred or to whom Warrant Shares are to be issued or so transferred of any
representations and agreements requested by the Company in order to permit such
issuance or transfer to be made pursuant to exemptions from registration under
federal and applicable state securities laws. Each certificate representing the
Warrant (or any part thereof) and any Warrant Shares shall be stamped with
appropriate legends setting forth these restrictions on transferability.

(b)           The Holder, by
acceptance hereof, represents and warrants that (i) the Holder is
acquiring this Warrant for Holder’s own account for investment purposes only
and not with a view to its resale or distribution, (ii) the Holder has no
present intention to resell or otherwise dispose of all or any part of this
Warrant or the Warrant Shares acquirable hereunder, other than pursuant to
registration under federal and state securities laws or an exemption from such
registration, the availability of which the Company shall determine in its sole
and reasonable discretion, (iii) the Holder is an “accredited investor” as
that term is defined in Regulation D of the General Rules and Regulations
promulgated under the Securities Act, and (iv) the Holder is experienced
and knowledgeable in financial and business matters, is capable of evaluating
the merits and risks of investing in the Warrant Shares, and does not need or
desire the assistance of a knowledgeable representative to aid in the evaluation
of such risks.

8.             Covenants of the Company. The Company covenants
and agrees that all shares that may be issued upon exercise of this Warrant
will, upon issuance, be duly authorized and issued, fully paid, nonassessable
and free from all taxes, liens and charges with respect to the issuance thereof.
The Company further covenants and agrees that the Company has and will at all
times have authorized, and reserved for the purpose of issuance upon exercise
hereof, a sufficient number of shares of its Ciprico Common Stock to provide
for the exercise of this Warrant. The Company agrees that its issuance of this
Warrant shall constitute full authority to its officers who are charged with
the duty of executing stock certificates to execute and issue the necessary
certificates for shares of Ciprico Common Stock upon the exercise of this
Warrant

9.             Certain Notices. The Holder shall be entitled to
receive from the Company, immediately upon declaration thereof and at least 20
days prior to the record date for determination of stockholders entitled
thereto or to vote thereon (or, if no record date is set, prior to the event),
written notice of any event that could require an adjustment pursuant to Section 5
hereof or of the dissolution, liquidation or winding up of the Company. All
notices under this Warrant shall be in writing and shall be delivered
personally or by telecopy (receipt confirmed) to such party (or, in the case of
an entity, to an executive officer of such party) or shall be sent by a
reputable express delivery service or by certified mail, postage prepaid with
return receipt requested, addressed as follows:

 

if to the Holder, to:

Broadcom Corporation

Attn: David A. Dull

General Counsel

16215 Alton Parkway

Irvine, CA 92618

Fax: (949) 450-0504

if to the Company
to:

Ciprico
Inc.

Attn:  Mr. Monte S. Johnson

Sr. Vice President, Chief
Financial Officer

7400 Medina Road, Suite 800

Plymouth, MN 55447

Ph:  (763) 551-4016

with a copy to:

Fredrikson &
Byron, P.A.

Attn:  Melodie Rose, Esq.

200 South Sixth Street, Suite 4000

Minneapolis, MN 55402-1425

Ph:    (612)
492-7162

Fax:  (612) 492-7077

Any party may
change the above-specified recipient and/or mailing address by notice to
all other parties given in the manner herein prescribed. All notices shall be
deemed given on the day when actually delivered as provided above (if delivered
personally or by telecopy) or on the day shown on the return receipt (if
delivered by mail or delivery service).

10.           Governing Law. This Warrant
shall be governed by and construed in accordance with the laws of the State of
Delaware without reference to the choice of law principles thereof. Without
limiting the rights of the parties to pursue in any appropriate jurisdiction
their respective rights with respect to any judgment obtained in respect
hereof, the parties hereby irrevocably consent to the exclusive jurisdiction and venue of the courts of
the State of Delaware or any United States court of competent jurisdiction
situated therein to adjudicate any legal action commenced in respect of this
Warrant and waive any objections either may have at any time to such
jurisdiction and venue. The parties agree to the personal jurisdiction of such
courts and agree that service of process may be made pursuant to notice sent in
accordance with Section 10.

[signature page follows]

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
authorized officer and dated as of the date stated above.

CIPRICO INC.

By:/s/ James W. Hansen

Its: Chairman
and Chief Executive Officer

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