Exhibit 10.46

 

RACKABLE SYSTEMS, INC.

 

FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT

 

This FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT (this “Amendment”), dated
September 1, 2005 (the “Effective Date”), is executed by and among Rackable
Systems, Inc., a Delaware corporation (the “Company”), and
                         (the “Executive”). The Company and the Executive are
each individually referred to in this Amendment as a “Party” and are
collectively referred to in this Amendment as the “Parties.” In this Amendment,
all capitalized terms that are otherwise undefined will have the respective
meanings specified for such terms as set forth in the Employment Agreement (as
defined below).

 

RECITALS

 

A. Executive and the Company are parties to an Employment Agreement, dated
December 23, 2002 (the “Employment Agreement”). The Employment Agreement
outlines the general terms of employment for the Executive.

 

B. Pursuant to this Amendment and effective immediately upon the Parties’ mutual
execution and delivery of this Amendment, the Parties desire to amend the
Employment Agreement as follows.

 

AGREEMENT

 

In consideration of the mutual promises and covenants set forth in this
Amendment, the receipt and sufficiency of which are acknowledged by the Parties,
the Parties agree as follows:

 

1. Amendment to employment agreements. The parties agree that upon the effective
date of this amendment, the employment agreement will be amended as follows:

 

1.1 Bonus Payment. The last sentence of Section 3(b) shall be deleted and
replaced with the following: “The Bonus (if any) may be payable quarterly or as
determined by the Board. At the Board’s discretion, the Company may elect to
make bonus payments to Executive in addition to the Bonus.”

 

1.2 Severance. The reference to “six (6) months” in Sections 4(b)(i) and
4(b)(ii) shall be deleted and replaced with “twelve (12) months”.

 

1.3 Accelerated Vesting. The third sentence of Section 4(b) shall be deleted in
its entirety and replaced with the following “In addition, in accordance with
the Stock Option Agreement, in the event the Employment Period is terminated by
the Company without Cause or by Executive for Good Reason prior to the fifth
anniversary of the date hereof, the vesting of Executive’s stock options issued
thereunder or any other stock options shall be accelerated by 12 months and
notwithstanding the Stock Option Agreement, Executive shall have twelve (12)
months to exercise such stock options.

 

1.4 Section 3(f) shall be deleted in its entirety.

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2. Agreements. Except as expressly amended by this amendment, the employment
agreement will continue in full force and effect. If any inconsistency,
ambiguity, or conflict exists between this amendment and the employment
agreement, then the terms and conditions of this amendment will govern and
control such inconsistency, ambiguity, or conflict.

 

3. Titles and subtitles. The titles and subtitles used in this amendment are
used for convenience only and are not to be considered in construing or
interpreting this amendment.

 

4. Amendments, waivers, and termination. As of any particular time, any term of
this amendment may be amended, the observance of any term of this amendment may
be waived (either generally or in a particular instance and either retroactively
or prospectively), or this amendment may be terminated, in each case only with
the written consent of the company and the executive. Any amendment, waiver, or
termination executed in accordance with this section 4 will be binding upon the
executive, the company, the company’s successors-in-interest, and any person
claiming for or on behalf of the executive or the company.

 

5. Effectiveness. This amendment is effective upon the execution and delivery of
this amendment by the company and the executive.

 

* * * * *

 

The Parties have executed this First Amendment to the Employment Agreement as of
the Effective Date.

 

THE COMPANY:

 

RACKABLE SYSTEMS, INC.

 

By:  

 

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Name:  

 

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Its:  

 

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THE EXECUTIVE:

 

 

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