<PAGE>

                                PROMISSORY NOTE
                            SECURED BY DEED OF TRUST
                           AND STOCK PLEDGE AGREEMENT

             NOTICE:  THIS PROMISSORY NOTE PROVIDES FOR A BALLOON PAYMENT.


$400,000.00                                   Mountain View, California
                                              June 18, 1997

    For value received, the undersigned, WILLIAM MARTIN KELLY ("Employee") 
and MARY JANE ROSKOSKY KELLY (collectively, "Borrower") jointly and severally 
promise to pay to SILICON GRAPHICS, INC., a Delaware corporation ("SGI"), or 
order, at 2011 N. Shoreline Boulevard, PO Box 7311, Mountain View, California 
94039-7311, or such other place as SGI may designate in writing from time to 
time, in lawful money of the United States of America, without abatement, 
demand, deduction, setoff or counterclaim, the principal sum of Four Hundred 
Thousand and 00/100 Dollars ($400,000.00), together with interest thereon at 
the rate of seven and forty-five hundredths percent (7.45%) per annum, 
compounded annually, from the date first set forth above ("Effective Date") 
until all principal, interest and other charges under this Promissory note 
are paid in full.

    1.   PAYMENTS.  All outstanding principal and accrued interest under this 
Promissory note shall be due and payable on the Due Date (as defined below).  
Interest shall be computed based upon a three hundred sixty (360) day year 
and thirty (30) day month.  Every payment received by SGI with respect to 
this Promissory note shall be applied as follows: first, to the payment of 
any late charges; second, to the payment of accrued but unpaid interest; and, 
third, to the payment of the outstanding principal balance of this Promissory 
Note.  Notwithstanding the foregoing, outstanding principal and accrued 
interest under this Promissory Note shall be due and payable prior to the Due 
Date to the extent of fifty percent (50%) of the sales proceeds payable to 
Borrower in connection with the sale of any Shares (as defined below); 
provided, however, if SGI's employment of Employee shall terminate or cease 
for any reason, whether voluntary or involuntary, and whether with or without 
cause, or if Borrower shall be in default hereunder, outstanding principal 
and accrued interest under this Promissory Note shall be due and payable 
prior to the Due Date to the extent of one hundred percent (100%) of the 
sales proceeds payable to Borrower in connection with the sale of any such 
Shares.  In no event shall the preceding sentence be deemed a limit of SGI's 
recourse or Borrower's liability under this Promissory Note.  Borrower may 
prepay the principal amount outstanding under this Promissory Note in whole 
or in part at any time without penalty.

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    2.   DUE DATE.  The "Due Date" shall be the earlier of (i) thirty (30) 
days after the date of termination or cessation of SGI's employment of 
Employee, whether voluntarily or involuntarily, and whether with or without 
cause, (ii) the date that Borrower sells, leases, transfer or otherwise 
conveys all or any interest in the Residence (as defined below), or (iii) the 
fifth (5th) anniversary of the date first set forth above.

    3.   PURPOSE OF LOAN.  Borrower acknowledges and agrees that SGI is 
making this loan to Borrower for executive retention purposes consistent with 
Section 143 of the Delaware General Corporation Law.   Borrower shall use the 
proceeds of this loan for purposes of improving and renovating Borrower's 
principal residence located at 10 Peak Lane, Portola Valley, California 
("Residence").

    4.   DEFAULT.  In the event that Borrower fails to timely pay any amount 
or perform any other obligation of Borrower under this Promissory Note, the 
Deed of Trust (as defined below), the Pledge Agreement (as defined below), or 
any other agreement or instrument now or hereafter executed by Borrower to 
evidence or secure the performance of Borrower's obligations thereunder, SGI 
may, at its option, declare the entire principal sum under this Promissory 
Note immediately due and payable.  In the event that SGI exercises this 
option, or the principal balance of this Promissory Note otherwise becomes 
due and payable, all principal then outstanding under this Promissory Note 
shall thereafter bear simple interest at the lesser of ten percent (10%) per 
annum or the maximum rate permitted by law.  Failure to exercise this option 
shall not constitute a waiver of SGI's right to exercise the same with 
respect to any prior or subsequent defaults.

    5.   SECURITY.  Borrower's obligations under this Promissory Note are 
secured by (i) that certain Deed of Trust with Assignment of Rents of even 
date herewith ("Deed of Trust") encumbering the Residence, as more 
particularly described in the Deed of Trust, and (ii) that certain Pledge 
Agreement of even date herewith ("Pledge Agreement") encumbering Borrower's 
right, title and interest in and to certain stock options and other pledged 
collateral, as more particularly described in the Pledge Agreement ("Pledged 
Collateral").

    6.   DUE ON SALE.  The Deed of Trust provides as follows:

         If the trustor shall sell, convey or alienate said property, or any 
         part thereof, or any interest therein, or shall be divested of his 
         title or any interest therein in any manner or way, whether 
         voluntarily or involuntarily, without the written consent of the 
         beneficiary being first had and obtained, beneficiary shall have the 
         right, at its option, except as prohibited by law, to declare any 
         indebtedness or obligations secured hereby, irrespective of the 
         maturity date specified in any not evidencing the same, immediately 
         due and payable.

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    7.   ATTORNEYS' FEES.  In the event any legal action or proceeding is 
required to enforce or interpret any provision of this Promissory Note, 
Borrower shall pay to SGI upon demand all costs of collection and reasonable 
attorneys' fees incurred by SGI in connection therewith. 

    8.   TAX LIABILITY.  Borrower understands and agrees that any and all 
income tax liability to Borrower resulting from this Promissory Note shall be 
the sole responsibility of Borrower.

    9.   MISCELLANEOUS.  If any provision of this Promissory Note shall be 
invalid or unenforceable for any reason, the same shall be ineffective, but 
the remainder of this Promissory Note shall not be affected thereby and shall 
remain in full force and effect. Time is of the essence of each and every 
obligation of Borrower hereunder.  Presentment and demand for payment, notice 
of dishonor, protest and notice of protest are hereby waived by Borrower.  If 
the due date for any payment under this Promissory Note falls on a Saturday, 
Sunday or legal holiday, then such due date shall be extended to the next 
business day.  None of the terms or provisions of this Promissory note may be 
waived, altered, modified or amended except by a writing signed by SGI and 
Borrower.  The provisions of this Promissory Note shall be governed by 
California law.  The covenants, terms and conditions hereof shall bind the 
heirs, successors and assigns of Borrower and shall insure to the benefit of 
the successors and assigns of SGI.

IN WITNESS WHEREOF, Borrower has executed this Promissory Note as of the date 
first set forth above.

                                                 BORROWER:



                                                 /s/  William Martin Kelly
                                                 ----------------------------
                                                 WILLIAM MARTIN KELLY


                                                 /s/  Mary Jane Roskosky Kelly
                                                 -----------------------------
                                                 MARY JANE ROSKOSKY KELLY


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