Document:

Warrant Agreement - Silicon Valley Bank

 Exhibit 4.3 
 WARRANT TO PURCHASE STOCK 
 THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT
FROM REGISTRATION. 
 WARRANT TO PURCHASE STOCK 
 Company: BlueArc Corporation, a Delaware corporation 
 Number of Shares: 21,521 
 Class of Stock: Series D-1 Preferred 
 Warrant Price: $4.1819 per share 
 Issue Date: December 30, 2003 
 Expiration Date: Later of
December 30, 2010 or five years after initial public offering of Company’s common stock 
 THIS WARRANT CERTIFIES THAT, for the
agreed upon value of $1.00 and for other good and valuable consideration, SILICON VALLEY BANK (“Holder”) is entitled to purchase the number of fully paid and nonassessable shares of the class of securities (the “Shares”) of the
company (the “Company”) at the Warrant Price, all as set forth above and as adjusted pursuant to Article 2 of this Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant. 
 ARTICLE 1. EXERCISE. 
 1.1 Method
of Exercise. Holder may exercise this Warrant by delivering a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion right set forth in
Article 1.2, Holder shall also deliver to the Company a check, wire transfer (to an account designated by the Company), or other from of payment acceptable to the Company for the aggregate Warrant Price for the Shares being purchased.

 1.2 Conversion Right. In lieu of exercising this Warrant as specified in Article 1.1, Holder may from time to time convert
this Warrant, in whole or in part, into a number of Shares determined by dividing (a) the aggregate fair market value of the Shares or other securities otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of such
Shares by (b) the fair market value of one Share. The fair market value of the Shares shall be determined pursuant to Article 1.3. 

 1.3 Fair Market Value. If the Company’s common stock is traded in a public market and the
shares are common stock, the fair market value of each Share shall be the closing price of a Share reported for the business day immediately before Holder delivers its Notice of Exercise to the Company (or in the instance where the Warrant is
exercised immediately prior to the effectiveness of the Company’s initial public offering, the “price to public” per share price specified in the final prospectus relating to such offering). If the Company’s common stock is
traded in a public market and the Shares are preferred stock, the fair market value of a Share shall be the closing price of a share of the Company’s common stock reported for the business day immediately before Holder delivers its Notice of
Exercise to the Company (or, in the instance where the Warrant is exercised immediately prior to the effectiveness of the Company’s initial public offering, the initial “price to public” per share price specified in the final
prospectus relating to such offering), in both cases, multiplied by the number of shares of the Company’s common stock into which a Share is convertible. If the Company’s common stock is not traded in a public market, the Board of
Directors of the Company shall determine fair market value in its reasonable good faith judgment. 
 1.4 Delivery of Certificate and New
Warrant. Promptly after Holder exercises or converts this Warrant and, if applicable, the Company receives payment of the aggregate Warrant Price, the Company shall deliver to Holder certificates for the Shares acquired and, if this Warrant has
not been fully exercised or converted and has not expired, a new Warrant representing the Shares not so acquired. 
 1.5 Replacement of
Warrants. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory
in form and amount to the Company or, in the case of mutilation, or surrender and cancellation of this Warrant, the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor. 
 1.6 Treatment of Warrant Upon Acquisition of Company. 
 1.6.1 “Acquisition”. For the purpose of this Warrant, “Acquisition” means any sale, license, or other disposition of all or substantially all of the assets of the Company, or any
reorganization, consolidation, or merger of the Company where the holders of the Company’s securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction.

 1.6.2 Treatment of Warrant at Acquisition. 
 (A) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition in which the sole consideration is cash, either (a) Holder shall exercise its conversion or purchase right under
this Warrant and such exercise will be deemed effective immediately prior to the consummation of such Acquisition or (b) if Holder elects not to exercise the Warrant, this Warrant will expire upon the consummation of such Acquisition. The
Company shall provide the Holder with written notice of its request relating to the foregoing (together with such reasonable information as the Holder may request in connection with such contemplated Acquisition giving rise to such notice), which is
to be delivered to Holder not less than ten (10) days prior to the closing of the proposed Acquisition. 
  

 -2- 

 (B) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition that is
an “arms length” sale of all or substantially all of the Company’s assets (and only its assets) to a third party that is not an Affiliate (as defined below) of the Company (a “True Asset Sale”), either (a) Holder shall
exercise its conversion or purchase right under this Warrant and such exercise will be deemed effective immediately prior to the consummation of such Acquisition or (b) if Holder elects not to exercise the Warrant, this Warrant will continue
until the Expiration Date if the Company continues as a going concern following the closing of any such True Asset Sale. The Company shall provide the Holder with written notice of its request relating to the foregoing (together with such reasonable
information as the Holder may request in connection with such contemplated Acquisition giving rise to such notice), which is to be delivered to Holder not less than ten (10) days prior to the closing of the proposed Acquisition. 
 (C) Upon the closing of any Acquisition other than those particularly described in subsections (A) and (B) above, the successor entity shall
assume the obligations of this Warrant, and this Warrant shall be exercisable for the same securities, cash, and property as would be payable for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were
outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price and/or number of Shares shall be adjusted accordingly. 
 As used herein “Affiliate” shall mean any person or entity that owns or controls directly or indirectly ten (10) percent or more of the stock of Company, any person or entity that controls or is controlled by or is
under common control with such persons or entities, and each of such person’s or entity’s officers, directors, joint venturers or partners, as applicable. 
 ARTICLE 2. ADJUSTMENTS TO THE SHARES. 
 2.1 Stock Dividends, Splits, Etc. If the Company declares or
pays a dividend on the Shares payable in common stock, or other securities, then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total number and kind of securities to which Holder would have
been entitled had Holder owned the Shares of record as of the date the dividend occurred. If the Company subdivides the Shares by reclassification or otherwise into a greater number of shares or takes any other action which increase the amount of
stock into which the Shares are convertible, the number of shares purchasable hereunder shall be proportionately increased and the Warrant Price shall be proportionately decreased. If the outstanding shares are combined or consolidated, by
reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased and the number of Shares shall be proportionately decreased. 
 2.2 Reclassification, Exchange, Combinations or Substitution. Upon any reclassification, exchange, substitution, or other event that results in a
change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall be entitled to receive, upon exercise or conversion of this Warrant, the number and kind of securities and property that Holder
would have received for the Shares if this Warrant had been exercised immediately before such reclassification, exchange, substitution, or other event. Such an event shall include any automatic conversion of the outstanding or issuable securities of
the Company of the same class or series as the Shares to common stock pursuant to the terms of the Company’s Articles 

  

 -3- 

 
or Certificate (as applicable) of Incorporation upon the closing of a registered public offering of the Company’s common stock. The Company or its
successor shall promptly issue to Holder an amendment to this Warrant setting forth the number and kind of such new securities or other property issuable upon exercise or conversion of this Warrant as a result of such reclassification, exchange,
substitution or other event that results in a change of the number and/or class of securities issuable upon exercise or conversion of this Warrant. The amendment to this Warrant shall provide for adjustments which shall be as nearly equivalent as
may be practicable to the adjustments provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon exercise of the new Warrant. The provisions of this
Article 2.2 shall similarly apply to successive ^classifications, exchanges, substitutions, or other events. 
 2.3 Adjustments for
Diluting Issuances. The Warrant Price and the number of Shares issuable upon exercise of this Warrant or, if the Shares are Preferred Stock, the number of shares of common stock issuable upon conversion of the Shares, shall be subject to
adjustment, from time to time in the manner set forth in the Company’s Articles or Certificate of Incorporation as if the Shares were issued and outstanding on and as of the date of any such required adjustment. The provisions set forth for the
Shares in the Company’s Articles or Certificate (as applicable) of Incorporation relating to the above in effect as of the Issue Date may not be amended, modified or waived, without the prior written consent of Holder unless such amendment,
modification or waiver affects the rights associated with the Shares in the same manner as such amendment, modification or waiver affects the rights associated with all other shares of the same series and class as the Shares granted to the Holder.

 2.4 No Impairment. The Company shall not, by amendment of its Articles or Certificate (as applicable) of Incorporation or through a
reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this
Warrant by the Company, but shall at all times in good faith assist in carrying out of all the provisions of this Article 2 and in taking all such action as may be necessary or appropriate to protect Holder’s rights under this Article
against impairment. 
 2.5 Fractional Shares. No fractional Shares shall be issuable upon exercise or conversion of the Warrant and
the number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the Warrant, the Company shall eliminate such fractional share interest by paying Holder the
amount computed by multiplying the fractional interest by the fair market value of a full Share. 
 2.6 Certificate as to Adjustments.
Upon each adjustment of the Warrant Price, the Company shall promptly notify Holder in writing, and, at the Company’s expense, promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth
such adjustment and the facts upon which such adjustment is based. The Company shall, upon written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such
Warrant Price. 
  

 -4- 

 ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY. 
 3.1 Representations and Warranties. The Company represents and warrants to the Holder as follows: 
 (A) The initial Warrant Price referenced on the first page of this Warrant is not greater than (i) the price per share at which the Shares were last
issued in an arms-length transaction in which at least $500,000 of the Shares were sold and (ii) the fair market value of the Shares as of the date of this Warrant. 
 (B) All Shares which may be issued upon the exercise of the purchase right represented by this Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance, be duly authorized,
validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state securities laws. 
 (C) The Capitalization Table previously provided to Holder remains true and complete as of the Issue Date. 
 3.2 Notice of Certain Events. If the Company proposes at any time (a) to declare any dividend or distribution upon any of its stock, whether
in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to offer for sale additional shares of any class or series of the Company’s stock; (c) to effect any reclassification or recapitalization of
any of its stock; (d) to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or substantially all of its assets, or to liquidate, dissolve or wind up; or (e) offer holders of registration rights
the opportunity to participate in an underwritten public offering of the company’s securities for cash, then, in connection with each such event, the Company shall give Holder: (1) at least 10 days prior written notice of the date on which
a record will be taken for such dividend, distribution, or subscription rights (and specifying the date on which the holders of common stock will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to
in (c) and (d) above; (2) in the case of the matters referred to in (c) and (d) above at least 10 days prior written notice of the date when the same will take place (and specifying the date on which the holders of common
stock will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event); and (3) in the case of the matter referred to in (e) above, the same notice as is given to the holders
of such registration rights. 
 3.3 Registration Under Securities Act of 1933, as amended. The Company agrees that the Shares or, if
the Shares are convertible into common stock of the Company, such common stock, shall have certain incidental, or “Piggyback,” registration rights pursuant to and as set forth in the Company’s Investor Rights Agreement or similar
agreement. The provisions set forth in the Company’s Investors’ Right Agreement or similar agreement relating to the above in effect as of the Issue Date may not be amended, modified or waived without the prior written consent of Holder
unless such amendment, modification or waiver affects the rights associated with the Shares in the same manner as such amendment, modification, or waiver affects the rights associated with ail other shares of the same series and class as the Shares
granted to the Holder. 
  

 -5- 

 3.4 No Shareholder Rights. Except as provided in this Warrant, the Holder will not have any rights
as a shareholder of the Company until the exercise of this Warrant. 
 ARTICLE 4. REPRESENTATIONS, WARRANTIES OF THE HOLDER. The
Holder represents and warrants to the Company as follows: 
 4.1 Purchase for Own Account. This Warrant and the securities to be
acquired upon exercise of this Warrant by the Holder will be acquired for investment for the Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Act. Holder also
represents that the Holder has not been formed for the specific purpose of acquiring this Warrant or the Shares. 
 4.2 Disclosure of
Information. The Holder has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities. The
Holder further has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional information (to the extent the
Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to the Holder or to which the Holder has access. 
 4.3 Investment Experience. The Holder understands that the purchase of this Warrant and its underlying securities involves substantial risk. The
Holder has experience as an investor in securities of companies in the development stage and acknowledges that the Holder can bear the economic risk of such Holder’s investment in this Warrant and its underlying securities and has such
knowledge and experience in financial or business matters that the Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying securities and/or has a preexisting personal or business relationship with
the Company and certain of its officers, directors or controlling persons of a nature and duration that enables the Holder to be aware of the character, business acumen and financial circumstances of such persons. 
 4.4 Accredited Investor Status. The Holder is an “accredited investor” within the meaning of Regulation D promulgated under the
Act. 
 4.5 The Act. The Holder understands that this Warrant and the Shares issuable upon exercise or conversion hereof have not been
registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein. The Holder understands that this Warrant and
the Shares issued upon any exercise or conversion hereof must be held indefinitely unless subsequently registered under the 1933 Act and qualified under applicable state securities laws, or unless exemption from such registration and qualification
are otherwise available. 
 ARTICLE 5. MISCELLANEOUS. 
 5.1 Term: This Warrant is exercisable in whole or in part at any time and from time to time on or before the Expiration Date. 
  

 -6- 

 5.2 Legends. This Warrant and the Shares (and the securities issuable, directly or indirectly,
upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following form: 
 THIS WARRANT AND THE SHARES
ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE ACT, OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND
UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM
REGISTRATION. 
 5.3 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable upon exercise of this Warrant
(and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance with applicable federal and state securities laws by the transferor and the
transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, as reasonably requested by the Company). The Company shall not require Holder to provide an
opinion of counsel if the transfer is to Silicon Valley Bancshares (Holder’s parent company) or any other affiliate of Holder. Additionally, the Company shall also not require an opinion of counsel if there is no material question as to the
availability of current information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling broker represents that it has complied with Rule 144(f), and the
Company is provided with a copy of Holder’s notice of proposed sale. 
 5.4 Transfer Procedure. Upon receipt by Holder of the
executed Warrant, Holder will transfer all of this Warrant to Silicon Valley Bancshares, Holder’s parent company, by execution of an Assignment substantially in the form of Appendix 2. Subject to the provisions of Article 5.3 and upon
providing Company with written notice, Silicon Valley Bancshares and any subsequent Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the Shares issuable directly or indirectly, upon conversion
of the Shares, if any) to any transferee, provided, however, in connection with any such transfer, Silicon Valley Bancshares or any subsequent Holder will give the Company notice of the portion of the Warrant being transferred with the name, address
and taxpayer identification number of the transferee and Holder will surrender this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable). The Company may refuse to transfer this Warrant or the Shares to any person
who directly competes with the Company, unless, in either case, the stock of the Company is publicly traded. 
 5.5 Notices. All
notices and other communications from the Company to the Holder, or vice versa, shall be deemed delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as may have been
furnished to the Company or the Holder, as the case may (or on the first business day after transmission by facsimile) be, in writing by the Company or such holder from time to time. Effective upon receipt of the fully executed Warrant and the
initial transfer described in Article 5.4 above, all notices to the 

  

 -7- 

 
Holder shall be addressed as follows until the Company receives notice of a change of address in connection with a transfer or otherwise: 
 Silicon Valley Bancshares 
 Attn: Treasury Department 
 3003 Tasman Drive, HA 200 
 Santa Clara, CA 95054 
 Telephone: 408-654-7400 
 Facsimile: 408-496-2405 
 Notice to the Company shall be addressed as follows until the Holder receives notice of a change in address: 
 BLUEARC CORPORATION 
 Attn: CFO 
 225 Baypointe Parkway 
 San Jose, CA 95134 
 Telephone: (408) 576-6600 
 Facsimile: (408) 576-5740 
 5.6 Waiver. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party
against which enforcement of such change, waiver, discharge or termination is sought. 
 5.7 Attorney’s Fees. In the event of any
dispute between the parties concerning the terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorney’s fees.

 5.8 Automatic Conversion upon Expiration. In the event that, upon the Expiration Date, the fair market value of one Share (or other
security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Exercise Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be converted
pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not previously have been exercised or converted, and the Company shall promptly deliver a certificate representing the Shares (or such other
securities) issued upon such conversion to the Holder. 
 5.9 Counterparts. This Warrant may be executed in counterparts, all of which
together shall constitute one and the same agreement. 
 5.10 Governing Law. This Warrant shall be governed by and construed in
accordance with the laws of the State of California, without giving effect to its principles regarding conflicts of law. 
 5.11 Market
Stand-Off Provision. Holder agrees to be bound by the “Market Stand-Off” provision (the “Market Stand-Off Provision”) in section 2.12 of Company’s Investors’ Rights Agreement (the “Rights Agreement”)
dated 7/14/03. The Market Stand-Off Provision provisions set forth in the Rights Agreement may not be amended, modified or waived without the 

  

 -8- 

 
prior written consent of Holder unless such amendment, modification or waiver affects the rights associated with the Shares in the same manner as such
amendment, modification, or waiver affects the rights associated with all other shares of the same series and class as the of Shares granted pursuant to this Warrant. 
 “COMPANY” 
  

							
	 BLUEARC CORPORATION
	 		 	
				
	By:	 	  
	 	By:	 	 /s/ Erik E. Miller

				
	Name:	 	  
	 	Name:	 	Erik E. Miller
		 	(Print)	 		 	(Print)
	Title:	 	 Chairman of the Board, President
 or Vice
President
	 	Title:	 	 Chief Financial Officer, Secretary,
 Assistant
Treasurer or Assistant
 Secretary

 “HOLDER” 
  

			
	 Silicon Valley Bank

		
	By:	 	  

		
	Name:	 	  

		 	(Print)
	Title:	 	Relationship Manager

  

 -9- 

 APPENDIX 1 
 NOTICE OF EXERCISE 
 1. Holder elects to purchase
                    shares of the Common/Series              Preferred
[strike one] Stock of BlueArc Corporation pursuant to the terms of the attached Warrant, and tenders payment of the purchase price of the shares in full. 
 [or] 
 1. Holder elects to convert the attached Warrant into Shares/cash [strike one] in the manner
specified in the Warrant. This conversion is exercised for
                                 of the Shares covered by the Warrant. 

[Strike paragraph that does not apply.] 
 2. Please issue a certificate or certificates representing the shares in the name specified below: 
  

					
		 	  
	 	
		 	Holders Name	 	
			
		 	  
	 	
			
		 	  
	 	
		 	(Address)	 	

 3. By its execution below and for the benefit of the Company, Holder hereby restates each of the
representations and warranties in Article 4 of the Warrant as the date hereof. 
  

			
	 HOLDER:

	
	  

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	 (Date:
	 	  

  

 -10- 

 APPENDIX 2 
 ASSIGNMENT 
 For value received, Silicon Valley Bank hereby sells, assigns and transfers unto

 Name: Silicon Valley Bancshares 
 Address: 3003 Tasman Drive (HA-200) Santa Clara, CA 95054 
 Tax ID: 91-1962278 
 that certain Warrant to Purchase Stock issued by BlueArc Corporation (the “Company”), on December     , 2003 (the
“Warrant”) together with all rights, title and interest therein. 
  

			
	 SILICON VALLEY BANK

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 Date: December__, 2003 
 By its execution below, and for the benefit of the Company, Silicon Valley Bancshares makes each of the representations and warranties set forth in Article 4 of the Warrant as of the date hereof. 
  

			
	SILICON VALLEY BANCSHARES
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 -11-Warrant Agreement - MAST International Limited

 Exhibit 4.4 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE
CORPORATION, (B) IF OUTSIDE THE UNITED STATES, IN ACCORDANCE WITH RULE 904 OR REGULATIONS UNDER THE SECURITIES ACT, IF APPLICABLE, OR (C) IF INSIDE THE UNITED STATES (i) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY
RULE 144 OF THE SECURITIES ACT OR ANOTHER APPLICABLE EXEMPTION, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS THEREUNDER. AT THE OPTION OF THE CORPORATION, SUCH COMPLIANCE SHALL BE EVIDENCED BY AN OPINION OF COUNSEL, IN FORM
ACCEPTABLE TO THE CORPORATION, THAT NO VIOLATION OF SUCH REGISTRATION PROVISIONS WOULD RESULT FROM ANY PROPOSED TRANSFER OR ASSIGNMENT. 
 No.
WB-2                    SERIES B PREFERRED STOCK PURCHASE
WARRANT                    May 17, 2001 
 To Purchase Shares of Series B Preferred Stock of 
 BLUEARC CORPORATION 
 THIS CERTIFIES that, for value received, MAST International Limited (the “Holder”) is entitled to subscribe for and purchase, from BlueArc
Corporation, a Delaware corporation (the “Company”), shares of the Company’s Series B Preferred Stock (the “Series B Preferred”), upon the terms and subject to the conditions set forth herein, at any time on or
after the date of this Warrant, and on or before, but in no case after the earlier of (i) July 25, 2010 or (ii) otherwise as set forth in Section 7 hereof. 
 1. Exercise Price; Number of Warrant Shares. The purchase price of one share of Series B Preferred under this Warrant (the “Exercise
Price”) shall be $2.00. The number of shares of Series B Preferred Stock purchasable upon exercise of this Warrant is FIVE HUNDRED THOUSAND (500,000) (the “Shares”). 
 2. Exercise of Warrant. 
 The purchase
rights set forth in this Warrant are exercisable by the Holder, in whole or in part, at any time, or from time to time, prior to the expiration of the term set forth in Section 1 above, by tendering to the Company at its principal office a
notice of exercise in the form attached hereto as Exhibit A (the “Notice of Exercise”), duly completed and executed, along with this Warrant. Promptly upon receipt of the Notice of Exercise, this Warrant Agreement and the payment of
the purchase price in accordance with the terms set forth below, the Company shall issue to the Warrantholder a certificate for the number of shares of Series B Preferred purchased. 
 The purchase price of the Shares may be paid at the Holder’s election either (i) by cash, check, bank draft payable to the order of the Company
or by cancellation of indebtedness of the Company to the Holder, if any, at the time of exercise or (ii) by converting this Warrant into a number of shares of Series B Preferred in accordance with the following formula
(“Conversion”). If the Holder elects the Conversion method, the Company will issue Series B Preferred in accordance with the following formula: 

					
		  	 X = Y(A-B) 
         A

			
	 Where:
	  	X=	  	the number of shares of Series B Preferred to be issued to the Holder.
			
		  	Y=	  	the number of shares of Series B Preferred requested to be exercised under this Warrant.
			
		  	A=	  	the fair market value of one share of Series B Preferred.
			
		  	B=	  	the Exercise Price.

 For purposes of the above calculation, current fair market value of Series B Preferred shall
mean with respect to each share of Series B Preferred: 
 (a) if the exercise is in connection with an initial public offering of the
Company’s Common Stock, and if the Company’s Registration Statement relating to such public offering has been declared effective by the Securities and Exchange Commission, then the fair market value per share shall be the product of
(x) the initial “Price to Public” specified in the final prospectus with respect to the offering and (y) the number of shares of Common Stock into which each share of Series B Preferred is convertible at the time of such
exercise; 
 (b) if this Warrant is exercised after, and not in connection with the Company’s initial public offering, and: 

(i) if the Company’s Common Stock is traded on a securities exchange, the fair market value shall be deemed to be the product of (x) the
average of the closing prices over a 21-day period ending three days before the day the current fair market value of the securities is being determined and (y) the number of shares of Common Stock into which each share of Series B
Preferred is convertible at the time of such exercise; or 
 (ii) if the Company’s Common Stock is actively traded over-the-counter,
the fair market value shall be deemed to be the product of (x) the average of the closing bid and asked prices quoted on the Nasdaq National Market System (or similar system) over the 21-day period ending three days before the day the current
fair market value of the securities is being determined and (y) the number of shares of Common Stock into which each share of Series B Preferred is convertible at the time of such exercise; 
 (c) if the current fair market value is to be determined at any time the Common Stock is not listed on any securities exchange or quoted in the Nasdaq
National Market System or the over-the-counter market or the exercise is not in connection with an initial public offering, the current fair market value of Series B Preferred shall be determined in good faith by the Board of Directors of the
Company. 
  

 -2- 

 3. Restrictions on Transfer. 
 (a) Investment Representation. The Holder agrees that the Holder will not offer, sell or otherwise dispose of this Warrant or any securities issued
on exercise of this Warrant except under circumstances which will not result in a violation of the Securities Act. Upon exercise of this Warrant, the Holder shall confirm in writing, by executing the Investor Representation Statement in the form
attached as Exhibit B hereto, that the securities purchased thereby are being acquired for investment solely for the Holder’s own account and not with a view toward distribution or resale. 
 (b) Certificate Legends. This Warrant and all securities issued upon exercise of this Warrant (unless registered under the Securities Act) shall
be stamped or imprinted with a legend in substantially the following form (in addition to any legends required by applicable state securities laws): 
 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 (c) Disposition of Warrant or Shares. With respect to any offer, sale or other disposition of this Warrant or any securities issued
upon exercise of this Warrant before a Qualified IPO, the Holder agrees to give written notice to the Company prior thereto, describing briefly the manner of such distribution, together with a written opinion of the Holder’s counsel, if
reasonably requested by the Company, to the effect that such offer, sale or other disposition may be effected without registration under the Securities Act or qualification under any applicable state securities laws applicable this Warrant or such
shares, as the case may be, and indicating whether or not under the certificates for this Warrant or such shares, as the case may be, to be sold or otherwise disposed of require any restrictive legend as to applicable restrictions on transferability
in order to ensure compliance with the Securities Act. Each certificate representing this Warrant or the securities thus transferred (except a transfer pursuant to Rule 144) shall bear a legend as to the applicable restrictions on
transferability in order to ensure compliance with the Securities Act, unless in the aforesaid opinion of counsel for the Holder or the security holder, as the case may be, such legend is not necessary in order to ensure compliance with the
Securities Act. The Company may issue stop-transfer instructions to its transfer agent in connection with such restrictions. 
 4.
Stockholder Rights. This Warrant does not entitle the Holder to any voting rights or other rights as a stockholder of the Company prior to exercise. The Holder shall execute and become a party to that certain Amended and Restated
Investors’ Rights Agreement, dated as of April 11, 2000 (the “Investor Rights Agreement”). 
  

 -3- 

 5. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in case of loss, theft or destruction, of indemnity reasonably satisfactory to it, upon reimbursement to the Company of all reasonable expenses
incidental thereto, and upon surrender and cancellation of this Warrant, if mutilated, the Company will deliver a new Warrant of like tenor in lieu of this Warrant. 
 6. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or a legal holiday, then
such action may be taken or such right may be exercised on the next succeeding day that is not a Saturday, Sunday or legal holiday. 
 7.
Reorganization, Stock Splits, Etc. 
 (a) Reorganization, Reclassification or Recapitalization of the Company. In case of
(1) a capital reorganization, reclassification or recapitalization of the Company’s capital stock (other than in the cases referred to in Section 7(c) hereof), (2) the Company’s consolidation or merger with or into another
corporation in which the Company is not the surviving entity, or a reverse triangular merger in which the Company is the surviving entity but the shares of the Company’s capital stock outstanding immediately prior to the merger are converted,
by virtue of the merger, into other property, whether in the form of securities, cash or otherwise, or (3) the sale or transfer of the Company’s property as an entirety or substantially as an entirety, then, as part of such reorganization,
recapitalization, merger, consolidation, sale or transfer, lawful provision shall be made so that there shall thereafter be deliverable upon the cash or net exercise of this Warrant or any portion thereof (in lieu of or in addition to the number of
shares of Series B Preferred theretofore deliverable, as appropriate), and without payment of any additional consideration, the number of shares of stock or other securities or property to which the holder of the number of shares of
Series B Preferred which would otherwise have been deliverable upon the cash or net exercise of this Warrant or any portion thereof at the time of such reorganization, reclassification, recapitalization, consolidation, merger, sale or transfer
would have been entitled to receive if such transaction had not taken place. This Section 7(a) shall apply to successive reorganizations, reclassifications, recapitalizations, consolidations, mergers, sales and transfers and to the stock or
securities of any other corporation that are at the time receivable upon the exercise of this Warrant. If the consideration payable to the Holder for shares of Series B Preferred in connection with any transaction described in this
Section 7(a) is in a form other than cash or marketable securities, then the value of such consideration shall be determined in good faith by the Company’s Board of Directors. 
 (b) Splits and Combinations. If the Company at any time subdivides any of its outstanding shares of Series B Preferred into a greater number
of shares, the Exercise Price in effect immediately prior to such subdivision shall be proportionately reduced, and, conversely, if the outstanding shares of Series B Preferred are combined into a smaller number of shares, the Exercise Price in
effect immediately prior to such combination shall be proportionately increased. Upon any 

  

 -4- 

 
adjustment of the Exercise Price under this Section 7(b), the number of shares of Series B Preferred issuable upon exercise of this Warrant shall
equal the number of shares determined by dividing (i) the aggregate Exercise Price payable for the purchase of all shares issuable upon exercise of this Warrant immediately prior to such adjustment by (ii) the Exercise Price per share in
effect immediately after such adjustment. 
 (c) Reclassification of Shares. If the Company at any time shall, by combination,
reclassification, exchange, conversion or subdivision of securities or otherwise, change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes
(including without limitation the conversion of the Series B Preferred into Common Stock), this Warrant shall thereafter represent the right to acquire such number and kind of securities as would have been issuable as the result of such change
with respect to the securities which were subject to the purchase rights under this Warrant immediately prior to such combination, reclassification, conversion, exchange, subdivision or other change and the Exercise Price shall be approximately
adjusted. 
 (d) Dividends and Distribution. If the Company declares a dividend or other distribution on the Series B Preferred
or if a dividend or other distribution on the Series B Preferred occurs pursuant to the Company’s Certificate of Incorporation, then, as part of such dividend or distribution, lawful provision shall be made so that there shall thereafter
be deliverable upon the exercise of this Warrant or any portion thereof, in addition to the number of shares of Series B Preferred receivable thereupon and without payment of any additional consideration, the amount of the dividend or other
distribution to which the holder of the number of shares of Series B Preferred obtained upon exercise hereof would have been entitled to receive had the exercise occurred as of the record date for such dividend or distribution. 
 (e) Liquidation; Dissolution. If the Company shall dissolve, liquidate or wind up its affairs, the Holder shall have the right, but not the
obligation, to exercise this Warrant effective as of the date of such dissolution, liquidation or winding up. If any such dissolution, liquidation or winding up results in any cash distribution to the Holder in excess of the aggregate Exercise Price
for the Shares, then the Holder may, at its option, exercise this Warrant without making payment of such aggregate Exercise Price and, in such case, the Company shall, upon distribution to the Holder, consider such aggregate Exercise Price to have
been paid in full, and in making such settlement to the Holder, shall deduct an amount equal to such aggregate Exercise Price from the amount payable to the Holder. 
 (f) Certificates and Notices. 
 (i) Adjustment Certificates. Upon any adjustment of the
Exercise Price and/or the number of shares of securities purchasable upon exercise of this Warrant, a certificate, signed by (i) the Company’s Chief Financial Officer, or (ii) an independent firm of certified public accountants of
recognized national standing selected by the Company, setting forth in reasonable detail the events requiring the adjustment and the method by which such adjustment was calculated, shall be mailed to the Holder and shall specify the adjusted
Exercise Price and the number of shares of securities purchasable upon exercise of the Warrant after giving effect to the adjustment. 
  

 -5- 

 (ii) Extraordinary Corporate Events. If the Company, after the date hereof, proposes to effect
(A) any transaction described in Sections 7(a) or (c) hereof, (B) a liquidation, dissolution or winding up of the Company described in Section 7(e) hereof, or (C) any payment of a dividend or distribution with respect
to the Series B Preferred, then, in each such case, the Company shall mail to the Holder a notice describing such proposed action and specifying the date on which the Company’s books shall close, or a record shall be taken, for determining
the holders of stock entitled to participate in such action, or the date on which such action shall take place or commence, as the case may be, and the date as of which it is expected that holders of stock of record shall be entitled to receive
securities and/or other property deliverable upon such action, if any such date is to be fixed. Such notice shall be mailed to the Holder at least ten (10) days prior to the record date for such action in the case of any action described in
clause (A) or clause (C) above, and in the case of any action described in clause (B) above, at least fifteen (15) days prior to the date on which the action described is to take place and at least fifteen (15) days prior to
the record date for determining holders of Series B Preferred entitled to receive securities and/or other property in connection with such action. Upon a planned initial public offering of the Company’s Common Stock, the Company shall
provide written Notice to the Holder of such planned initial public offering with 30 days of the date of the first filing of a registration statement under the Securities Act. 
 (g) Application. Except as otherwise provided herein, all subsections of this Section 7 are intended to operate independently of one another.
If an event occurs that requires the application of more than one subsection, all applicable subsections shall be given independent effect. 
 8. Standoff Agreement. Holder agrees, in connection with the initial public offering of the Company’s securities, (i) not to sell, make any short sale of, loan, grant any option for the purchase of or otherwise dispose of
this Warrant or any securities issued upon the exercise of this Warrant (other than securities included in the registration, if any) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time
(not to exceed one hundred eighty (180) days from the effective date of such registration) as may be requested by the Company or such underwriters, and (ii) to execute any agreement regarding (i) above as may be requested by the
Company or underwriters. 
 9. Miscellaneous. This Warrant may be amended and any term of this Warrant may be waived only by a written
instrument signed by the Company and the Holder. This Warrant shall be binding upon any successors or assigns of the parties hereunder. This Warrant shall constitute a contract under the laws of the State of California and for all purposes shall be
construed in accordance with and governed by the laws of California applied without reference to its conflict of laws principles. This Warrant and the shares issued upon exercise of this Warrant may be transferred at the Holder’s option subject
to compliance with applicable securities laws and upon exercise and delivery to the Company by the transferee of an agreement to be bound by the same restrictions applicable to the Holder, including Section 8 of this Warrant. 
  

 -6- 

 Dated: May 17, 2001 
  

			
	 BLUEARC CORPORATION

	 a Delaware Corporation

		
	 By:
	 	 /s/ Charles Noreen

	 Name:
	 	Charles Noreen
	 Title:
	 	SVP & CFO

 [Signature Page to MAST Warrant] 

 EXHIBIT A 
 NOTICE OF EXERCISE 
 TO: BLUEARC CORPORATION 
 (1) The undersigned hereby elects to purchase
                     shares of Series B Preferred Stock of BlueArc Corporation pursuant to the terms of the attached Warrant, and tenders
payment of the purchase price in full, together with all applicable transfer taxes, if any. 
 (2) Please issue a certificate or certificates
representing said shares of Series B Preferred Stock in the name of the undersigned. 
 (3) The undersigned represents that the
aforesaid shares of Series B Preferred Stock are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present
intention of distributing or reselling such shares. 
  

					
		 		  	MAST INTERNATIONAL LIMITED
			
	  
	 		  	  

	 Date
	 		  	Signature
			
		 		  	  

		 		  	Print Name
			
		 		  	  

		 		  	Title, if applicable

 EXHIBIT B 
 INVESTMENT REPRESENTATION STATEMENT 
  

					
	 STOCKHOLDER
	  	:	  	MAST International Limited
			
	 COMPANY
	  	:	  	BlueArc Corporation
			
	 SECURITY
	  	:	  	Series B Preferred Stock
			
	 AMOUNT
	  	:	  	
			
	 DATE
	  	:	  	

 In connection with the purchase of the above-listed securities (the “Securities”), the undersigned
stockholder (“Stockholder”) represents to the Company the following: 
 (a) Stockholder is aware of the Company’s business
affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. Stockholder is acquiring the Securities for investment for Stockholder’s own
account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). 
 (b) Stockholder acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not been
registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Stockholder’s investment intent as expressed herein. In this connection, Stockholder
understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Stockholder’s representation was predicated solely upon a present intention to hold the Securities for the
minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future. Stockholder further
understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Stockholder further acknowledges and understands that the Company is
under no obligation to register the Securities. Stockholder understands that the certificate evidencing the Securities will be imprinted with (i) a legend which prohibits the transfer of the Securities (unless they are registered or in the
opinion of counsel satisfactory to the Company, such registration is not required), (ii) a legend prohibiting their transfer without the consent of the Commissioner of Corporations of the State of California and (iii) any other legend
required under applicable state securities laws. 
 (c) Stockholder acknowledges that the Securities must be held indefinitely unless
subsequently registered under the Securities Act or unless an exemption from such registration is available. Stockholder is aware of the provisions of Rule 144 promulgated under the Securities Act, 

 
which permit limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions, including, among other things, the
existence of a public market for the shares, the availability of certain current public information about the Company, the resale occurring not less than a specified period after a party has purchased and paid for the security to be sold, the sale
being effected through a “broker’s transaction” or in transactions directly with a “market maker” and the number of shares being sold during any three-month period not exceeding specified limitations. 
 (d) Stockholder further understands that in the event all of the applicable requirements of Rule 144 are not satisfied, registration under the
Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 is not exclusive, the Staff of the Securities and Exchange Commission has expressed its
opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from registration is
available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Stockholder understands that no assurances can be given that any such other registration exemption
will be available in such event. 
 (e) Stockholder understands that no public market now exists for any of the securities issued by the
Company and that the Company has made no assurances that a public market will ever exist for the Company’s securities. 
 (f)
Stockholder has had the opportunity to review with its own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. Stockholder has relied solely on such advisors and
not on any statements or representations of the Company or any of its agents. Stockholder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions
contemplated by this Statement. 
  

	
	 MAST INTERNATIONAL LIMITED:

	  

	 Signature

	  

	 Name

	  

	 Title, if applicable

	
	 Date:
                                        
                         , 20    

  

 -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]