Exhibit 10.5

 

PATENT SECURITY AGREEMENT

 

Silicon Graphics, Inc., a Delaware corporation, Silicon Graphics Federal, Inc.,
a Delaware corporation, and Silicon Graphics World Trade Corporation, a Delaware
corporation (collectively, “Grantor”), for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, grant to Wells Fargo
Foothill Capital, Inc., a California corporation, as agent for and
representative of (in such capacity herein called “Secured Party”) the Bank
Product Provider and the financial institutions (“Lenders”) party to that
certain Third Amended and Restated Credit Agreement, entered into by and among
the Grantor, Agent, and Lenders, dated as of October 24, 2005 ( the “Credit
Agreement”), a continuing security interest in the following property:

 

(i) Each patent presently owned and listed on Schedule A hereto; and

 

(ii) All proceeds of the foregoing, including without limitation any claim by
Grantor against third parties for damages (to the extent not effectively
prohibited by an applicable and legally enforceable license agreement) by reason
of past, present or future infringement of any patent now owned or hereafter
owned by Grantor, in each case together with the right to sue for and collect
said damages:

 

to secure performance of all Obligations of Grantor under the Creditor Agreement
and as set out in that certain Intellectual Property Security Agreement dated as
of October 24, 2005, by and among Grantor and Secured Party (the “Agreement”).

 

Grantor does hereby further acknowledge and affirm that the rights and remedies
of Secured Party with respect to the security interest in the works of
authorship, patents, patent registrations and recordings made and granted hereby
are more fully set forth in the Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein.

 

All terms defined in the Agreement, whether by reference or otherwise, when used
herein, shall have their respective meanings set forth therein, unless the
context requires otherwise.

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IN WITNESS WHEREOF, Grantor has caused this Patent Security Agreement to be duly
executed as of October 24, 2005.

 

GRANTOR: SILICON GRAPHICS, INC., a Delaware corporation By:  

/s/ Jean Furter

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Name:   Jean Furter Title:   Vice President, Treasurer

SILICON GRAPHICS FEDERAL, INC., a

Delaware corporation

By:  

/s/ Jeff Zellmer

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Name:   Jeff Zellmer Title:   Vice President SILICON GRAPHICS WORLD TRADE
CORPORATION, a Delaware corporation By:  

/s/ Warren Pratt

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Name:   Warren Pratt Title:   Executive Vice President ACCEPTED BY SECURED
PARTY:

WELLS FARGO FOOTHILL, INC., a California

corporation, as Agent

By:  

/s/ Mara Vaisz

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Name:   Mara Vaisz Title:   Vice President