Exhibit 10.1

 

AMENDMENT NUMBER ONE TO THIRD AMENDED AND RESTATED

CREDIT AGREEMENT

 

THIS AMENDMENT NUMBER ONE TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”), dated as of November 18, 2005, is entered into between and among
the lenders identified on the signature pages hereof (such lenders, together
with their respective successors and assigns, are referred to hereinafter each
individually as a “Lender” and collectively as the “Lenders”), WELLS FARGO
FOOTHILL, INC., a California corporation, as the arranger and administrative
agent for the Lenders (“Agent” and together with the Lenders, collectively, the
“Lender Group”), SILICON GRAPHICS, INC., a Delaware corporation (“Parent”), and
each of Parent’s Subsidiaries identified on the signature pages hereof (such
Subsidiaries, together with Parent, are referred to hereinafter each
individually as a “Borrower,” and individually and collectively, jointly and
severally, as “Borrowers”), in light of the following:

 

W I T N E S S E T H

 

WHEREAS, Borrowers and the Lender Group are parties to that certain Third
Amended and Restated Credit Agreement, dated as of October 24, 2005 (as amended,
restated, supplemented, or modified from time to time, the “Credit Agreement”);

 

WHEREAS, Section 3.6(a) of the Credit Agreement sets forth, as a condition
subsequent to the Lender Group continuing to extend credit to Borrower, that
within 30 days of the Closing Date, Borrowers shall execute and deliver to Agent
such documents as Agent may require in order to perfect Agent’s Lien on 66% of
the outstanding shares of Stock of Silicon Graphics World Trade B.V. (the
“Pledge Condition”);

 

WHEREAS, in order to satisfy the Pledge Condition, the Credit Agreement must be
amended by the addition of certain language as set forth herein;

 

WHEREAS, Borrowers and the Lender Group have agreed to amend a certain provision
of the Credit Agreement as set forth herein;

 

WHEREAS, subject to the satisfaction of the conditions set forth herein, the
Lender Group is willing to consent to the amendment of the Credit Agreement as
provided herein;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

1. DEFINITIONS.

 

Capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed to them in the Credit Agreement, as amended hereby.

 

2. AMENDMENTS TO CREDIT AGREEMENT.

 

(a) Schedule 1.1 of the Loan Agreement is hereby amended by adding the following
defined terms in proper alphabetical order or amending and restating the
following definitions in their entirety, as the case may be:

 

“Obligor” has the meaning specified therefor in Section 5.19.

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“Parallel Debt Undertaking” has the meaning specified therefor in Section 5.19.

 

“Required Availability” means that Excess Availability exceeds $70,000,000.

 

(b) Section 5.19 of the Credit Agreement is hereby added as follows:

 

“5.19 Parallel Debt.

 

  (a) For the purpose of this Section 5.19 only, ‘Secured Obligations’ means the
Secured Obligations (as defined in the Security Agreement) with the exception of
the Parallel Debt Undertaking.

 

  (b) Each Grantor (as defined in the Security Agreement), Borrower, Subsidiary
of Administrative Borrower (each, an ‘Obligor’) irrevocably and unconditionally
undertakes to pay to Agent, on each date that a payment is due in connection
with the Secured Obligations (notwithstanding Section 5.19(a), as defined in the
Security Agreement), an amount equal to the Secured Obligations owed by such
Obligor due on such date (the ‘Parallel Debt Undertaking’).

 

  (c) The rights of Agent under Section 5.19(b) are several and independent of
any right that any Lender or Bank Product Provider may have under the Secured
Obligations.

 

  (d) An amount paid by an Obligor to Agent in respect of the Parallel Debt
Undertaking will discharge the liability of that Obligor under the Secured
Obligations in an equal amount, and an amount paid by an Obligor in respect of
the Secured Obligations will discharge the liability of that Obligor under the
Parallel Debt Undertaking in an equal amount. The aggregate amount outstanding
under the Parallel Debt Undertaking will never exceed the aggregate amount
outstanding under the Secured Obligations.

 

  (e) Nothing in this Section 5.19 shall affect Borrowers’ joint and several
liability for payment and performance of the Obligations.”

 

3. CONDITIONS PRECEDENT TO THIS AMENDMENT.

 

The satisfaction of each of the following shall constitute conditions precedent
to the effectiveness of this Amendment and each and every provision hereof:

 

(a) The representations and warranties in the Credit Agreement and the other
Loan Documents shall be true and correct in all material respects on and as of
the date hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date);

 

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(b) No Default or Event of Default shall have occurred and be continuing on the
date hereof or as of the date of the effectiveness of this Amendment; and

 

(c) No injunction, writ, restraining order, or other order of any nature
prohibiting, directly or indirectly, the consummation of the transactions
contemplated herein shall have been issued and remain in force by any
Governmental Authority against Borrowers or the Lender Group.

 

4. CONSTRUCTION.

 

THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE
STATE OF NEW YORK.

 

5. ENTIRE AMENDMENT; EFFECT OF AMENDMENT.

 

This Amendment, and terms and provisions hereof, constitute the entire agreement
among the parties pertaining to the subject matter hereof and supersede any and
all prior or contemporaneous amendments relating to the subject matter hereof.
Except as expressly set forth herein, the Credit Agreement and other Loan
Documents shall remain unchanged and in full force and effect. To the extent any
terms or provisions of this Amendment conflict with those of the Credit
Agreement or other Loan Documents, the terms and provisions of this Amendment
shall control. This Amendment is a Loan Document.

 

6. COUNTERPARTS; TELEFACSIMILE EXECUTION.

 

This Amendment may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument and any of the parties
hereto may execute this Amendment by signing any such counterpart. Delivery of
an executed counterpart of this Amendment by telefacsimile shall be equally as
effective as delivery of an original executed counterpart of this Amendment. Any
party delivering an executed counterpart of this Amendment by telefacsimile also
shall deliver an original executed counterpart of this Amendment, but the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Amendment.

 

7. MISCELLANEOUS.

 

(a) Upon the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like
import referring to the Credit Agreement shall mean and refer to the Credit
Agreement as amended by this Amendment.

 

(b) Upon the effectiveness of this Amendment, each reference in the Loan
Documents to the “Credit Agreement”, “thereunder”, “therein”, “thereof” or words
of like import referring to the Credit Agreement shall mean and refer to the
Credit Agreement as amended by this Amendment.

 

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IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and
delivered as of the date first written above.

 

WELLS FARGO FOOTHILL, INC.,

a California corporation, as Agent and as a Lender

By  

/s/ Mara Vaisz

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Name   Mara Vaisz Title   Vice President

ABLECO FINANCE LLC,

a Delaware limited liability company, as a Lender

By  

/s/ Kevin Genda

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Name   Kevin Genda Title   Senior Vice President

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/ Jeff Zellmer

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Name   Jeff Zellmer Title   Senior Vice President

 

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