Document:

EXHIBIT
10.1.1

EMPLOYMENT AGREEMENT

THIS
AGREEMENT, effective as of 12/8/06, is entered into by and
between Ciprico Inc., a Delaware corporation (the “Company”) and Steven
Merrifield, a Texas resident (“Executive”).

WHEREAS,
the Company desires to employ Executive upon and subject to the terms and
conditions set forth in this agreement (“Agreement”), and Executive desires to
render services for the Company on such terms and conditions.

NOW,
THEREFORE, in consideration of the premises and the
respective undertakings of the Company and Executive set forth below, the
Company and Executive agree as follows:

1.                                      Employment.  The Company hereby employs Executive as Chief
Executive Officer and President and other such positions of divisions or
subsidiaries as assigned by the Board of Directors, and Executive accepts such
employment and agrees to perform services for the Company, for the period and
upon the other terms and conditions set forth in this Agreement.

2.                                      Term
of Employment.  The term of Executive’s
employment hereunder shall commence on the effective date hereof and shall
continue for a term of two (2) years (“Initial Term”) expiring 12/7/08.  Within ninety (90) days of each anniversary
of this Agreement, the Board of Directors, or committee thereof, shall review
Executive’s goals and objectives and notify Executive in writing whether the
Agreement will be extended for an additional one year beyond the scheduled
termination date, or terminate as scheduled. 
Failure to provide such written notice of extension within the time
frame noted will result in automatic extension of one year beyond the scheduled
termination date. If Executive chooses not to extend the Agreement, Executive
must notify the Company in writing within thirty (30) days of Executive’s
receipt of the extension. 
Notwithstanding anything to the contrary in this Agreement, this
Agreement may be terminated as provided in Section 8 below.  The Initial Term and additional terms are
collectively referred to as “Term of Employment”).

3.                                      Position
and Duties.

3.01                           Service
with Company.  During his Term of
Employment, Executive agrees to perform such reasonable employment duties, consistent with the terms of this
Agreement and the offices held by Executive as provided in section 1 above, as
the Board of Directors of the Company shall assign to him from time to
time.  Such duties and employment
responsibilities is set forth in Exhibit A
and shall be performed in accordance with the Company’s rules,
regulations and instructions now in force or which may be adopted by the
Company in the future.

3.02                           Performance
of Duties.  During his Term of
Employment, the Executive agrees to serve the Company to the best of his
ability.  The Executive shall have active
involvement and be fully committed to the business and affairs of the
Company.  Executive 

 

hereby confirms that he
is under no contractual commitments inconsistent with his obligations set forth
in this Agreement.  During his Term of
Employment, Executive shall not render or perform services for any other corporation,
firm, entity or person that is in competition with the business of the Company.

3.03                           Noncompetition.  In consideration of the payments to be made
to the Executive under this Agreement as provided in Sections 4.05 and 8.02
which the Executive acknowledges constitute new and valuable consideration, the
Executive hereby covenants and agrees that during the Term of Employment or any
successor employment relationship between Executive and the Company, and for a
period of twelve (12) months following the termination of Executive’s
employment for any reason (the “Restricted Period”), the Executive shall not,
directly or indirectly, own, manage, operate, control, act as an advisor or
consultant to, or participate in, the ownership, management, operation, or control
of any business involving the digital media storage device and related services
in any geographic market served by the Company during the Restricted Period;
provided, however, that the foregoing shall not prevent the Executive from
owning not more than two percent (2%) interest in any entity engaged in such a
competing business whose securities are traded on any securities exchange or in
the over-the-counter markets.

3.04                           Nonsolicitation.  In consideration of the payments to be made
to the Executive under this Agreement as provided in Sections 4.05 and 8.02
which the Executive acknowledges constitute new and valuable consideration, the
Executive hereby covenants and agrees that during the Term of Employment or any
successor employment relationship between Executive and the Company, and for a
period of twelve (12) months following the termination of the employment
relationship between Executive and the Company, Executive agrees that he will
not solicit , either directly or indirectly, as an individual or through a
partnership, corporation, or other entity, any employee of the Company or
consultant under contract with the Company for employment or any other
arrangement for compensation to perform services.

4.                                      Compensation.

4.01                           Base
Salary  As base compensation for all
services to be rendered by the Executive under this Agreement during the Term
of Employment, the Company shall pay to Executive a minimum monthly base salary
of $20,000 per month through September 30, 2007 and not less than $20,833.33
per month for the remainder of the Initial Term, which salary shall be paid in
accordance with the Company’s normal payroll procedures and policies and be
reviewed annually by the Board of Directors. 
Such base compensation shall be reviewed by the Human Capital Committee
of the Board of Directors annually to ensure it is in compliance with the
Company policy and in line with the current market.

4.02                           Stock
Option Grant.  The Executive will be
granted an award of 200,000 shares of Ciprico stock under the qualified and non
qualified Incentive Stock Option Plan, subject to approval by the Board of
Directors who shall set the grant date.

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4.03                           Restricted
Stock Grant.  The Executive will be
granted a restricted stock award pursuant to the Company’s Qualified Restricted
Stock Plan of 25,000 shares in January of 2007 vesting over three years and
25000 shares in  January of 2008  vesting over two years, subject to approval
by the Board of Directors who shall set the grant date and restrictions. Once
granted these shares will vest in the event of a change in control.

4.04                           Benefits.  Executive shall be eligible to participate in
such company-sponsored benefits as are provided to executive employees of the
Company, subject to the terms and conditions of the applicable policies and/or
plans.

4.05                           Expenses.  The Company will pay or reimburse Executive
for all reasonable and necessary out-of-pocket expenses incurred by him in the
performance of his duties under this Agreement, subject to the presentment of
appropriate vouchers in accordance with the Company’s normal policies for
expense verification.  Executive shall be
entitled to reimbursement for educational expenses approved by the Board of
Directors or committee thereof.

4.06                           Development.  Executive will receive an annual written
performance review from the Board of Directors, or committee thereof, within 90
days of the anniversary of this Agreement and the Company will pay for any
developmental, learning or training experiences recommended by the Board of
Directors or committee thereof.

4.07                           Bonuses.  Executive shall be eligible to participate in
the Company’s short-term and long-term management bonuses programs as defined
by management and approved by the Board.

5.                                      Confidential
Information.  Except as permitted or
directed by the Company’s Board of Directors, during the Term of Employment or
at any time thereafter, Executive shall not divulge, furnish or make accessible
to anyone or use in any way (other than in the ordinary course of the business
of the Company) any confidential or secret knowledge or information of the
Company which Executive has acquired or become acquainted with or will acquire
or become acquainted with prior to the termination of the Term of Employment,
whether developed by himself or by others, concerning any trade secrets,
confidential or secret designs, processes, formulae, plans, devices or material
(whether or not patented or patentable) directly or indirectly useful in any
aspect of the business of the Company, any customer or supplier lists of the Company,
any confidential or secret development or research work of the Company, or any
other confidential information or secret aspects of the business of the
Company.  Executive acknowledges that the
above-described knowledge or information constitutes a unique and valuable
asset of the Company and represents a substantial investment of time and
expense by the Company and its predecessors, that any disclosure or other use
of such knowledge or information other than for the sole benefit of the Company
would be wrongful and would cause irreparable harm to the Company.  Both during and after the Term of Employment,
Executive will refrain from any act or omissions that would reduce the value of
such knowledge or information to the Company. 
The foregoing obligations of confidentiality, however, shall not apply
to any knowledge or information which is now published or which subsequently
becomes generally publicly known in the form in which it was obtained from the
Company, other than as 

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a direct or indirect result
of the breach of this Agreement by Executive. 
It is hereby acknowledged that it is not the intention of the foregoing
provisions to preclude the Executive from securing gainful employment with
subsequent employers who are not competitors of the Company or who would
otherwise have no reasonable commercial use of the above described knowledge or
information, but only to protect the Company’s confidential and proprietary
information or knowledge.

6.                                      Ventures.  If, during the Term of Employment, Executive is
engaged in or associated with the planning or implementing of any project,
program or venture involving the Company and a third party or parties, all
rights in such project, program or venture shall belong to the Company.  Except as formally approved by the Company’s
Board of Directors, Executive shall not be entitled to any interest in such
project, program or venture or to any commission, finder’s fee or other
compensation in connection therewith other than the salary or other
compensation to be paid to Executive as provided in this Agreement.

7.                                      Patent,
Copyrights and Related Matters.

7.01                           Disclosure
and Assignment.  Executive will
promptly disclose in writing to the Company complete information concerning
each and every invention, discovery, improvement, device, design, apparatus,
practice, process, method or product, whether patentable or not, made,
developed, perfected, devised, conceived or first reduced to practice by
Executive, either solely or in collaboration with others, during the Term of Employment,
or within six (6) months thereafter, whether or not during regular working
hours, relating to any phase of the business of the Company conducted at such
time (hereinafter referred to as “Developments”).  Executive, to the extent that he has the legal
right to do so, hereby assigns and agrees to assign to the Company and all of
the Executive’s right, title and interest in and to any and all of such
Developments.

7.02                           Future
Developments.  As to any future
Developments made by Executive and which are first conceived or reduced to
practice during the Term of Employment, or within six (6) months thereafter,
but which are claimed for any reason to belong to an entity or person other
than the Company, Executive will promptly disclose the same in writing to the
Company and shall not disclose the same to others if the Company, within sixty
(60) days thereafter, shall claim ownership of such Development under the terms
of this Agreement.  If the Company makes
such claim, Executive agrees that, insofar as the rights (if any) of Executive
are involved, it will be settled by arbitration in accordance with the rules of
the American Arbitration Association. 
The locale of the arbitration shall be Minneapolis, Minnesota (or other
locale convenient to the Company’s principal executive offices).  If the Company makes no such claim, Executive
hereby acknowledges that the Company has made no promise to receive and hold in
confidence any such information disclosed by Executive.

7.03                           Limitation
on Section 7.01 and 7.02.  The
provisions of section 7.01 and 7.02 shall not apply to any Development meeting
the following conditions:

(a)                                  such
Development was developed entirely on Executive’s own time;

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(b)                                 such
Development was made without the use of any Company equipment, supplies,
facility or trade secret information; and

(c)                                  such
Development does not relate (i) directly to the business of the Company, or
(ii) of the Company’s actual or demonstrably anticipated research or
development.

7.04                           Executive
Assistance.  Executive agrees to
assist Company in obtaining patents or copyrights on any Developments assigned
to the Company that Company, in its sole discretion, seeks to patent or
copyright.  Executive also agrees to sign
all documents and do all things deemed necessary by Company to obtain and/or
maintain such patents or copyrights, to assign them to Company, and to protect
them against infringement.  The
obligations of this Section 7 are continuing and shall survive the termination
of Executive’s employment with Company.

7.05                           Appointment
of Agent.  Executive irrevocably
appoints the Company to act as Executive’s agent and attorney in fact to
perform all acts necessary to obtain/or maintain patents or copyrights to any
Developments assigned by Executive to Company under this Agreement if (i)
Executive refuses to perform those acts or (ii) is unavailable, within the
meaning of the United States patent and copyright laws.  Executive acknowledges that the grant of the
foregoing power of attorney is coupled with an interest and shall survive the
death or disability of Executive and the termination of Executive’s employment
with Company.

7.06                           Notice
and Acknowledgment.  Executive
acknowledges that this section of this Agreement does not apply to a
Development for which there was no equipment, supplies, facilities or trade
secret information of the Company used and which was developed entirely on
Executive’s own time, and which does not relate directly to the business of the
Company or the Company’s actual or demonstrably anticipated research or
development.

8.                                      Termination.

8.01                           Grounds
for Termination.  Notwithstanding any
other provision of this Agreement to the contrary, this Agreement will
terminate prior to the end of the Term of Employment under the following
circumstances:

.011                           Employee’s
conviction of or plea of guilty or nolo
contendere to a felony resulting from conduct occurring on or after
the date of the Change of Control;

1.Employee’s willful and repeated failure to fulfill
his employment duties with the Company; provided, however, that for purposes of
this clause (ii), an act or failure to act by Employee shall not be “willful”
unless it is done, or omitted to be done, in bad faith and without any
reasonable belief that Employee’s action or omission was in the best interests
of the Company;

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(i)                                     2.
Employee’s incurable breach of any material element of any proprietary or
confidential information agreement with the Company;

3.Employee’s conduct that is materially detrimental to
Company’s business reputation or goodwill;

4.Any  dishonesty in dealing between Employee and
Company or between Employee and Company’s vendors, advisors, other employees,
or customers;

5.Employee’s active use
of alcohol or controlled substances in a manner which materially impairs
Employee’s ability to perform his duties;

6.Employee’s violation of
any material portion of this Agreement; which violation is not cured within
thirty (30) days after Employee’s receipt of written notice from Company
specifying the violation.

7.Employee’s failure to
substantially perform his material duties, which failure is not cured within
thirty (30) days after Employee’s receipt of written notice from Company
specifying the non-performance.

8.By mutual agreement of
Executive and the Company;

9.Immediately upon the
death of Executive;

10.Immediately upon the
bankruptcy or insolvency of the Company;

11.Immediately, in the
event of (i) Executive’s personal dishonesty, willful misconduct, breach of
fiduciary duty, intentional failure to perform stated duties, willful violation
of any laws (other than minor traffic violations or similar offenses), or
material breach of the policies or procedures of the Company

12.Upon Executive’s inability to perform the essential
functions of his position due to physical or mental disability, with or without
reasonable accommodation, as determined in the good faith judgment of the Board
of Directors, and such inability continues for a period consistent with Company
policy as may otherwise be required by applicable law.

Notwithstanding any
termination of this Agreement, Executive, in consideration of his employment
hereunder to the date of such termination, shall remain bound by the provisions
of this Agreement, which specifically relate to periods, activities or
obligations upon or subsequent to the termination of Executive’s employment.

8.02                           Severance
Payments.

(a)                                  The
rights and obligations of the Company and Executive as to a termination
following a Change of Control (as defined in a Change of Control Agreement) are
governed by a Change of Control 

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Agreement between the Company and Executive.  In the event of any inconsistencies between
this Agreement and the Change of Control Agreement, the Change of Control
Agreement shall control.

(b)                                 If
Executive’s employment is terminated by the Company other than pursuant to
Section 8.01(d) or in connection with a Change of Control, the Company shall
pay Executive as severance pay an amount equal to the compensation paid to
Executive during the 12-month period immediately preceding his termination,
payable at the Company’s option in either a lump sum or in installments in
accordance with the Company’s standard payroll policies (beginning after the
expiration of any applicable consideration and/or rescission periods), subject
to required withholding and deductions.  For purposes of this section total
compensation shall be defined as base salary, plus bonus paid (with a minimum
equal to 50% of base compensation whether such bonus was actually paid or not)
plus consulting pay. The
minimum severance during the first year of employement will be the Executive’s
Annual Base Salary plus an additional amount equal to no less than 50% of the
executive’s Annual bonus opportunity ($360,000).   Any
severance pay provided herein may, at Company’s discretion, be conditioned upon
the execution of a full and final release by the Executive of all claims
against the Company arising out of his employment and the termination thereof,
the form of which will be provided by the Company.

8.03                           Surrender
of Records and Property.  Upon
termination of his employment with the Company, Executive shall deliver
promptly to the Company all records, manuals, books, blank forms, documents,
letters, memoranda, notes, notebooks, reports, data, tables, calculations or
copies thereof, which are the property of the Company or which relate in any
way to the business, products, information of the Company, including, but not
limited to, all documents which in whole or in part contain any trade secrets
or confidential information of the Company, which in any of these cases are in
his possession or under his control. 
Provided, however, that Executive shall be entitled to retain items of
sentimental value, copies of which shall be provided to the Company at the
request of the Company and at the Company’s expense.

9.                                      Miscellaneous.

9.01                           Governing
Law.  This Agreement is made under
and shall be governed by and construed in accordance with the laws of the State
of Minnesota.

9.02                           Prior
Agreements.  This Agreement, together
with the Change of Control Agreement and the offer letter, contain the entire
Agreement of the parties relating to the subject matter hereof and supersede
all prior agreements and understandings with respect to such subject 

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matter, and the parties
hereto have made no agreements, representations or warranties relating to the
subject matter of this Agreement which are not set forth herein.

9.03                           Withholding
Taxes.  The Company shall withhold from all salary, bonus,
severance pay or other benefits payable under this Agreement all federal,
state, city or other taxes as shall be required pursuant to any law or
governmental regulation or ruling.

9.04                           Amendments.  No amendment or modification of this
Agreement shall be deemed effective unless made in writing and signed by the
parties hereto.

9.05                           No
Waiver.  No term or condition of this
Agreement shall be deemed to have been waived, nor shall there be any estoppel
to enforce any provisions of this Agreement except by a statement in writing
signed by the party by whom enforcement of the waiver or estoppel is sought.  Any written waiver shall not be deemed a
continuing waiver unless specifically stated, shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such
term or condition for the future or as to any act other than specifically
waived.

9.06                           Severability.  To the extent any term or provision of this
Agreement shall be invalid or unenforceable, the term or provision shall be
considered deleted herefrom and the remaining term and provision of the
Agreement shall be unaffected and shall continue in full force and effect.  In furtherance and not in limitation of the
foregoing, should the duration or geographical extent of, or business
activities covered by, any provision of this Agreement be in excess of that
which is valid and enforceable under applicable law, then such provision shall
be construed to cover only that duration, extent or activities which may
validly and enforceably be covered. 
Executive acknowledges the uncertainty of the law in this respect and
expressly stipulates that this Agreement be given the construction which
renders its provisions valid and enforceable to the maximum extent (not
exceeding its express terms) possible under applicable law.

9.07                           Assignment.  This Agreement shall be binding upon and
inure to the benefit of the Company’s successor or assigns.  This Agreement shall not be assignable, in
whole or in part, by Executive without prior written consent of the Company.

9.08                           Injunctive
Relief.  Executive agrees that it
would be difficult to compensate the Company fully for damages for any
violation of the provisions of this Agreement, including without limitation the
provisions of Sections 3, 5, 6 and 7. 
Accordingly, Executive specifically agrees that the Company shall be
entitled to temporary and permanent injunctive relief in any court of competent
jurisdiction, to enforce the provisions of this Agreement and that such relief
may be granted without the necessity of proving actual damages.  This provision with respect to injunctive
relief shall not, however, diminish the right of the Company to claim and
recover damages in addition to injunctive relief.

9.09                           Survival.  The parties agree that sections 3, 5 and 7
shall survive termination of this Agreement and term of Executive’s employment
for any reason.

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9.10                           Blue
Pencil Doctrine.  In the event that
any provision of this Agreement is held to be overbroad as written, such
provision shall be deemed amended to narrow its application to the extent
necessary to make the provision enforceable according to applicable law and
shall be enforced as amended.

9.11                           Mandatory
Arbitration.  In the event any
dispute arises under this Agreement, or as to the breach hereof, the parties
shall discuss the dispute in a good faith effort to arrive at a mutual settlement.  If notwithstanding, such dispute cannot be
settled, except for sections 9.08 (which the parties specifically acknowledge
and agree entitles the Company to, among other relief, injunction relief,
relief in any court of competent jurisdiction if Executive breaches section 3,
5, 6 and 7), such dispute shall be submitted to binding arbitration conducted
in Minneapolis, Minnesota, in accordance with the then-current Commercial Rules
of the American Arbitration Association ) (“AAA”).  The costs and expenses of the arbitration
shall be paid by the party against whom the arbitrators render a decision, if a
decision is rendered against a party; otherwise the costs and expenses shall be
shared equally by Executive and the Company. 
The arbitrators shall have full power and authority to rule on any
question of law in the same manner as any judge of any court of competent
jurisdiction, and the decision of the arbitrators shall be final and conclusive
upon the parties, and shall not be subject to any appeal or review if the
arbitrators have followed the Commercial Rules of the AAA.  The arbitrators shall have full power to make
any award (including the award of equitable remedies) that shall under the
circumstances presented to them be deemed to be proper; provided that the
arbitrators shall not have the power to award punitive damages or to limit,
expand or otherwise modify the terms of this Agreement.  Judgment may be entered upon any award
rendered by the arbitrators in accordance with applicable law in any court of
competent jurisdiction.

IN
WITNESS WHEREOF, the parties have executed this Agreement
effective as of the date and year first written above.

	
  

  	
  CIPRICO INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Steven Merrifield

  

 

 9EXHIBIT 10.1.2

CHANGE
OF CONTROL AGREEMENT

	
  Parties:

  	
   

  	
  Ciprico Inc.

  	
   

  	
  (“Company”)

  
	
   

  	
   

  	
  17400 Medina Road

  	
   

  	
   

  
	
   

  	
   

  	
  Plymouth, MN 55447

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Steven Merrifield

  	
   

  	
   

  	
  (“Employee”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  12/8/06

  	
   

  	
   

  

RECITALS:

1.             Employee has been employed by
Company since 12/8/06 in various capacities, has extensive knowledge and
expertise relating to Company’s business and has contributed to Company’s
success.

2.             The parties recognize that a “Change
of Control” may materially change or diminish Employee’s responsibilities and
substantially frustrate Employee’s commitment to the Company.

3.             The parties further recognize that
it is in the best interests of the Company and its stockholders to provide
certain benefits payable upon a “Change of Control Termination” to encourage
Employee to continue in his position in the event of a Change of Control,
although no such Change of Control is now contemplated or foreseen.

4.             The parties further desire to
provide for certain benefits payable upon certain involuntary terminations of
Employee’s employment.

AGREEMENTS:

In consideration
of the mutual covenants set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:

1.             Term
of Agreement.  The term of
this Agreement shall commence on the Effective Date and shall continue in
effect until termination of Employee’s employment which does not constitute a
Change of Control Termination; provided, however, that if a Change of Control
of the Company shall occur during the term of this Agreement, this Agreement
shall instead continue in effect for a period of twelve (12) months following
the date of such Change of Control.  Any
rights and obligations accruing before the termination or expiration of this
Agreement shall survive to the extent necessary to enforce such rights and
obligations.

2.             “Change
of Control.”  For purposes of
this Agreement, “Change of Control” shall mean any of the following events
occurring after the date of this Agreement:

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(a)           A merger or consolidation to which
the Company is a party if the individuals and entities who were shareholders of
the Company immediately prior to the effective date of such merger or
consolidation have, immediately following the effective date of such merger or
consolidation, beneficial ownership (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934) of less than fifty percent (50%) of the total
combined voting power of all classes of securities issued by the surviving
corporation for the election of directors of the surviving corporation;

(b)           The
acquisition of direct or indirect beneficial ownership (as defined in Rule
13d-3 under the Securities Exchange Act of 1934) of securities of the Company
by any person or entity or by a group of associated persons or entities acting
in concert in one or a series of transactions, which causes the aggregate
beneficial ownership of such person, entity or group to equal or exceed twenty
percent (20%) or more of the total combined voting power of all classes of the
Company’s then issued and outstanding securities;

(c)           The
sale of substantially all of the assets of the Company to any person or entity
that is not a wholly-owned subsidiary of the Company;

(d)           The approval by the stockholders of
the Company of any plan or proposal for the liquidation of the Company;

(e)           A change in the composition of the
Board of the Company at any time during any consecutive twenty-four (24) month
period such that the “Continuity Directors” no longer constitute at least a
seventy percent (70%) majority of the Board. 
For purposes of this event, “Continuity Directors” means those members
of the Board who were directors at the beginning of such consecutive
twenty-four (24) month period or were elected by, or on the nomination or
recommendation of, at least a two thirds (2/3) majority of the then-existing
Board of Directors; or

(f)            The execution by the Company of a
letter of intent, an agreement in principle or a definitive agreement relating
to an event described in Section 2(a), 2(b), 2(c), 2(d) or 2(e) that ultimately
results in such a Change of Control, or a tender or exchange offer or proxy
contest is commenced that ultimately results in an event described in Section
2(b) or 2(e).

3.             Termination.  For purposes of this Agreement, “Change of
Control Termination” shall mean any of the following events occurring within
twelve (12) months after a change of control occurring during the term of this
Agreement.

(a)           The termination of Employee’s employment
by the Company for any reason except Good Cause.  For purposes of this Agreement, “Good Cause”
shall include, but not be limited to, the following:

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(i)            Employee’s conviction of or plea of
guilty or nolo contendere to a
felony resulting from conduct occurring on or after the date of the Change of
Control;

(ii)           Employee’s willful and repeated
failure to fulfill his employment duties with the Company; provided, however,
that for purposes of this clause (ii), an act or failure to act by Employee
shall not be “willful” unless it is done, or omitted to be done, in bad faith
and without any reasonable belief that Employee’s action or omission was in the
best interests of the Company;

(iii)          Employee’s incurable breach of any
material element of any proprietary or confidential information agreement with
the Company;

(iv)          Employee’s intentional conduct that is
materially detrimental to Company’s business reputation or goodwill;

(v)           Any intentional dishonesty in dealing
between Employee and Company or between Employee and Company’s vendors,
advisors, other employees, or customers;

(vi)          Employee’s active use of alcohol or
controlled substances in a manner which materially impairs Employee’s ability
to perform his duties;

(vii)         Employee’s violation of any material portion
of this Agreement; which violation is not cured within thirty (30) days after
Employee’s receipt of written notice from Company specifying the violation.

(viii)        Employee’s failure to substantially
perform his material duties, which failure is not cured within thirty (30) days
after Employee’s receipt of written notice from Company specifying the
non-performance.

In no event shall Employee’s death or disability (as defined below)
constitute Good Cause.  “Disability”
shall mean Employee’s failure or inability, for reasons of health, to perform
Employee’s usual and customary duties on behalf of the Company in the usual and
customary manner for a total of more than 90 consecutive business days
(excluding Saturdays, Sundays and days during which the Company is closed due
to a recognized holiday).

(b)           The termination of employment with
the Company by Employee for Good Reason. 
Such termination shall be accomplished by, and effective upon, Employee
giving written notice to the Company of his decision to terminate.  “Good Reason” shall mean a good faith
determination by Employee, in Employee’s sole and absolute judgment that any
one or more of the following events has occurred on or after the date of the
Change of Control without the Employee’s express written consent:

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(i)            A material change in Employee’s
reporting responsibilities, titles or the like as in effect immediately prior
to the date of the Change of Control, or any removal of Employee from or any
failure to re-elect Employee to any of such positions, which has the effect of
diminishing Employee’s responsibility or authority;

(ii)           A
reduction in Employee’s base salary in effect immediately prior to the date of
the Change of Control;

(iii)          Requiring Employee to move to or work
from a location that is outside of a fifty (50) mile radius of Employee’s job
location on the date of the Change of Control;

(iv)          Without
the adoption of a replacement plan, program or arrangement that provides
benefits to Employee that are equal to or greater than those benefits that are
discontinued or adversely affected:

(A)          The
Company’s failure to continue in effect, within its maximum stated term, any
pension, bonus, incentive, stock ownership, stock purchase, stock option, life
insurance, health, accident, disability, or any other employee compensation or
benefit plan, program or arrangement, in which Employee is participating
immediately prior to the date of the Change of Control; or

(B)           The
Company taking any action that would adversely affect Employee’s participation
or materially reduce Employee’s benefits under any of such plans, programs or
arrangements; or

(v)           Any
material breach by the Company of this Agreement so long as Employee has given
the Company thirty (30) days notice of such breach, and the Company has not cured
the breach during that thirty (30) day period.

Termination for “Good Reason” shall not include Employee’s death or a
termination of employment by Employee for any reason other than the events
specified in clauses (1) through (5) above.

4.             Compensation
and Benefits.  Subject to the
limitations contained in Section 5 below, upon a Change of Control Termination,
Employee shall be entitled to the following compensation and benefits:

(a)           The
Company shall pay to Employee:

(i)            Within five (5) days of the Change
of Control Termination, all salary and other compensation earned by Employee
through the date of the Change of Control Termination at the rate in effect
immediately prior to such Change of Control Termination;

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(ii)           Within fifteen (15) days of the Change
of Control Termination, all other amounts to which Employee may be entitled to
receive under any compensation plan maintained by the Company, subject to any
distribution requirements contained in such compensation plans; and

(iii)                                                                               A
severance benefit in a single lump sum payment, an aggregate amount equal to
one hundred percent (100%) of Employee’s then current total compensation (as
outlined in the offer letter to include base and bonus).

(iv)                                                                              At
the employees election all qualified and non-qualified options and restricted
stock may vest at the time of change in control.

(b)           The Company shall provide, at no cost
to Employee, continued coverage under the Company’s group life, health or
dental benefit plans, if any, at a level comparable to the benefits which
Employee was receiving or entitled to receive immediately prior to the Change
of Control Termination or, if greater, at a level comparable to the benefits
which Employee was receiving immediately prior to the event which constituted
Good Reason.  Employee shall be entitled
to such continued coverage for a twelve month period following such Change of
Control Termination or, if earlier, until Employee is eligible to be covered
for such benefits through his employment with another employer.  The Company may, in its sole discretion,
provide such coverage through the purchase of individual insurance contracts
for Employee.

5.             Payment
of Attorneys Fees and Other Costs. 
If, after a Change in Control of the Company, a good faith dispute
arises with respect to the enforcement of Employee’s rights under this
Agreement or if any legal or arbitration proceeding shall be brought in good
faith to enforce or interpret any provision contained herein or to recover
damages for breach hereof, Employee shall recover from the Company (a)
reasonable attorneys’ fees and necessary costs and disbursements incurred by
Employee as a result of such dispute or such legal or arbitration proceeding,
and (b) prejudgment interest on any money judgment or arbitration award
obtained by Employee calculated at the prime rate announced from time to time
by Wells Fargo Bank Minnesota, N. A., or the maximum rate permitted under
Section 280G(d)(4) of the Internal Revenue Code of 1986, as amended, or any
successor provision, whichever rate is lower, such prejudgment interest to be
paid from the date that payments to Employee should have been made under this
Agreement.

6.             Withholding
Taxes. The Company shall be entitled to deduct from all payments or
benefits provided for under this Agreement any federal, state or local income
and employment related taxes required by law to be withheld with respect to
such payments or benefits.

7.             Successors
and Assigns.  This Agreement
shall inure to the benefit of and shall be enforceable by Employee, his heirs
and the personal representative of his estate, and shall be binding upon and
inure to the benefit of the Company and its successors and assigns.  The 

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Company will require the
transferee of any sale of all or substantially all of the business and assets
of the Company or the survivor of any merger, consolidation or other
transaction expressly to agree to honor this Agreement in the same manner and
to the same extent that the Company would be required to perform this Agreement
if no such event had taken place.  Failure of the Company to obtain such
agreement before the effective date of such event shall be a breach of this
Agreement and shall entitle Employee to the benefits provided in Section 4 as
if Employee had terminated employment for Good Reason following a Change in
Control.

8.             Notices.  For the purpose of this Agreement, notices
and all other communications provided for in the Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by United
States certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth on the first page of this
Agreement or to such other address as either party may have furnished to the
other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt. 
All notices to the Company shall be directed to the attention of the
Board of Directors of the Company.

	
  For Ciprico:

  	
   

  	
  17400 Medina Road, Suite 800

  
	
   

  	
   

  	
  Plymouth, MN 55447

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For Employee:

  	
   

  	
  3325 Vintage Drive

  
	
   

  	
   

  	
  Round Rock, TX 78664

  

 

9.             Captions.  The headings or captions set forth in this
Agreement are for convenience only and shall not affect the meaning or
interpretation of this Agreement.

10.           Governing
Law.  The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of Minnesota.

11.           Construction.  Wherever possible, each term and provision of
this Agreement shall be interpreted in such manner as to be effective and valid
under applicable law.  If any term or
provision of this Agreement is invalid or unenforceable under applicable law,
(a) the remaining terms and provisions shall be unimpaired, and (b) the invalid
or unenforceable term or provision shall be deemed replaced by a term or
provision that is valid and enforceable and that comes closest to expressing
the intention of the unenforceable term or provision.

12.           Amendment;
Waivers.  This Agreement may
not be modified, amended, waived or discharged in any manner except by an
instrument in writing signed by both parties hereto.  The waiver by either party of compliance with
any provision of this Agreement by the other party shall not operate or be
construed as a waiver of any other provision of this Agreement, or of any
subsequent breach by such party of a provision of this Agreement.

13.           Entire
Agreement.  This Agreement
supersedes all prior or contemporaneous negotiations, commitments, agreements
(written or oral) and writings between the Company and Employee with respect to
the subject matter hereof and constitutes the entire agreement and
understanding between the parties hereto. 
All such other negotiations, commitments, agreements 

 6
 

 

and writings will have no
further force or effect, and the parties to any such other negotiation,
commitment, agreement or writing will have no further rights or obligations
thereunder.

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

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered as of the day and year first above written.

	
  

  	
  CIPRICO INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee

  

 

 7

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