Document:

Forms of Notice of Stock Option Award - Non-Employee Directors

 Exhibit 10.37 
 FORM OF NOTICE OF STOCK OPTION AWARD FOR NON-EMPLOYEE
DIRECTORS 
 SILICON GRAPHICS, INC. 
 MANAGEMENT INCENTIVE PLAN 
  

			
	Optionee:	 	
		
	Shares Subject to Option:	 	XXX shares of common stock, par value $.01 (“Shares”) of Silicon Graphics, Inc. (the “Company”).
		
	Type of Option:	 	Nonqualified Stock Option
		
	Exercise Price per Share:	 	$xx.xx
		
	Date of Grant:	 	
		
	Date Exercisable:	 	This option may be exercised to the extent it is vested.
		
	Vesting:	 	Time Vesting. This option shall vest on the first anniversary of the date of grant; provided either (i) the Optionee’s Service has not terminated on such date, or (ii) the
Optionee’s Service terminated (other than for Cause) on the date of the Company’s annual meeting of shareholders which occurred prior to the first anniversary of the date of grant due to the Optionee’s not standing for re-election or
not being reelected.
		
	Accelerated Vesting:	 	 Death/Disability. If not then vested, this option shall become 100% vested upon the Optionee’s termination of Service due to the
Optionee’s death or Disability.
  
 Change in Control. If not then vested, this
option shall become 100% vested upon a Change in Control.

		
	Expiration Date:	 	This option shall expire on the earliest of the following dates: (i) 5 years from the date of the grant, (ii) the date Optionee’s Service terminates for Cause (or if Cause exists on such
date), (iii) one year following termination of service due to Optionee’s Death/Disability, (iv) 90 days following termination of Service without cause, and (v) 30 days following the Optionee’s termination of Service due to the
Optionee’s resignation (to the extent then vested).

 This option is granted under and governed by the terms and conditions of Silicon Graphics, Inc. Management
Incentive Plan and the related Non-Employee Director Stock Option Agreement, reference number 001-D, both of which are hereby made a part of this document. Capitalized terms used but not defined in this Non-Employee Director Notice of Stock Option
Grant shall have the meanings assigned to them in the above-referenced documents. The undersigned Optionee acknowledges receipt of, and understands and agrees to, this Notice of Stock Option Grant, the Stock Option Agreement and the Silicon
Graphics, Inc. Management Incentive Plan. 
  

			
	SILICON GRAPHICS, INC.
		
	By:	 	  

		 	Robert H. Ewald, Chief Executive Officer
	
	[Name of Director]
		
	By:	 	  

		 	[Name]

 FORM OF STOCK OPTION
AGREEMENT FOR NON-EMPLOYEE DIRECTORS 
 SILICON GRAPHICS, INC. 
 MANAGEMENT INCENTIVE
PLAN 
 REFERENCE 001-SO-D 
 SECTION 1. GRANT OF OPTION. 
 (a) Option. On the terms and conditions set forth in this Agreement and each
Notice of Stock Option Grant referencing this Agreement (the “Notice”), the Company grants to the Optionee on the Date of Grant an option to purchase at the Exercise Price a number of shares of Common Stock, all as set forth in the Notice.
Each such Notice, together with this referenced Agreement, shall be a separate option governed by the terms of this Agreement. This option is intended to be a Nonqualified Stock Option. 
 (b) Plan and Defined Terms. This option is granted under and subject to the terms of the Plan, which is incorporated herein by this reference. Capitalized terms are defined in Section 8 of this Agreement.

 SECTION 2. RIGHT TO EXERCISE. 
 Subject to the
conditions set forth in this Agreement, all or part of this option may be exercised prior to its expiration at the time or times set forth in the vesting provisions of the Notice. 
 SECTION 3. TRANSFER OR ASSIGNMENT OF OPTION. 
 (a) Generally. This option shall be exercisable during the
Optionee’s lifetime, only by the Optionee. Except as otherwise provided in subsection (b) below, this option and the rights and privileges conferred hereby shall not be sold, pledged or otherwise transferred (whether by operation of law or
otherwise) other than by will or the laws of descent and distribution and shall not be subject to sale under execution, attachment, levy or similar process. 
 (b) Permitted Transfers. The Optionee shall be permitted to transfer this option, (i) in connection with his or her estate plan, to the Optionee’s spouse, siblings, parents, children and grandchildren or a charitable
organization that is exempt under Section 501(c)(3) of the Code or to trusts for the benefit of such persons or partnerships, corporations, limited liability companies or other entities owned solely by such persons, including trusts for such
persons, (ii) to the Optionee’s former spouse in accordance with a domestic relations order or (iii) to the entity that employs the Optionee or to its affiliate, provided that the Optionee owns more than 50% of the voting interests of
such entity or affiliate or such transfer otherwise complies with applicable securities laws. 
 SECTION 4. EXERCISE PROCEDURES. 
 (a) Notice of Exercise. This Option shall be exercisable by written notice signed by the Optionee and delivered to the Company’s Employee Stock Services group
or by using the electronic methods approved from time to time by Employee Stock Services (currently 

 
www.optionslink.com). If an electronic exercise method is not chosen, such notice shall be in the form of Exhibit A (Stock Exercise Request) found at
the Employee Stock Services’ website (currently http://www-finance.corp.sgi.com/stock/) or available upon request from such group. In the event that this option is being exercised by the Optionee’s representative or a permitted
Transferee, the notice shall be accompanied by proof (satisfactory to the Company) of the representative’s right to exercise this option. 
 (b)
Method of Payment. Upon exercise of the notice, the Optionee shall either 
 (i) Acquire the Common Stock –
Make payment of the full amount of the Purchase Price plus any applicable withholding in cash, check or other readily available funds, 
 (ii) Cashless Exercise – Exercise pursuant to the Company’s approved cash-less exercise procedure. 
 (iii) Alternate Method – At the sole discretion, of the Committee, pay all or any part of the Purchase Price and any applicable withholding by an alternate method approved by the Committee. Should the
Committee exercise its discretion to permit the Optionee to exercise this option in whole or in part in accordance with an alternate method, it shall have no obligation to permit such alternative exercise with respect to the remainder of this option
or with respect to any other option to purchase shares of Common Stock held by the Optionee. 
 (c) Issuance of Common Stock. If the Optionee
exercises this option pursuant to Section 4(b)(i) of this Agreement, the Company shall cause to be issued a certificate or certificates for the shares of Common Stock as to which this option has been exercised, registered in the name of the
person exercising this option (or in the names of such person and his or her spouse as community property or as joint tenants with right of survivorship). 
 (d) Cashless Exercise. If the Optionee exercises this option pursuant to Section 4(b)(ii) of this Agreement, the Optionee will receive either the net number of shares of Common Stock after taking into account both the Purchase
Price and any required tax withholding, fees and commissions, or an amount in cash equal to the amount realized upon the sale of such shares of Common Stock after fees and commissions. No fractional shares of Common Stock will be issued. The Company
will pay cash in respect of fractional shares of Common Stock. 
 (e) Withholding. Should the government require the Company to withhold any taxes in
respect of the exercise of this by the Optionee, the Company may, in its discretion, hold the stock certificate to which such Optionee is otherwise entitled upon the exercise of a Stock Option as security for the payment of such withholding tax
liability, until cash sufficient to pay that liability has been accumulated. In addition, should the Company become subject to a withholding obligation under applicable law with respect to the Optionee’s exercise of this Option as of a
particular date (the “Tax Date”), the Optionee may elect to satisfy, in whole or in part, the holder’s related personal tax liabilities by (i) directing the Company to withhold from shares of Common Stock issuable in the related
vesting or exercise either a specified number of shares or shares having a specified value (in each case not in excess of the related personal tax 

 
liabilities), (ii) tendering shares of Common Stock previously issued pursuant to the exercise of a Stock Option or other shares of Common Stock owned
by the holder or (iii) combining any or all of the foregoing elections in any fashion. The withheld shares and other shares of Common Stock tendered in payment shall be valued at their Fair Market Value on the Tax Date. The Committee may
disapprove of any election, suspend or terminate the right to make Elections or provide that the right to make elections shall not apply to particular shares or exercises. The Committee may impose any additional conditions or restrictions on the
right to make an Election as it shall deem appropriate. The Committee may prescribe such rules as it determines with respect to the Optionee subject to the reporting requirements of Section 16(a) of the Exchange Act to effect such tax
withholding in compliance with the rules established by the SEC under Section 16 of the Exchange Act and the positions of the staff of the SEC thereunder expressed in no-action letters exempting such tax withholding from liability under
Section 16(b) of the Exchange Act. 
 (f) Compliance with Law. This option may not be exercised and no shares of Common Stock will be issued
pursuant to the exercise of this option unless each such exercise and each resulting issuance of shares of Common Stock complies with all relevant provisions of law and the requirements of any stock exchange upon which the shares of Common Stock may
then be listed. 
 SECTION 5. TERM AND EXPIRATION. 
 (a)
Basic Term. Subject to earlier termination in accordance with subsection (b) below, the exercise period of this option shall expire five (5) years after the date it is granted. 
 (b) Termination of Service. If the Optionee’s Service terminates for any reason, then the exercise period for this option shall expire as provided in the
Notice. 
 SECTION 6. ADJUSTMENT OF SHARES OF COMMON STOCK. 
 If there shall be any change in the Common Stock of the Company, through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, reverse stock split, split up, spinoff, combination of
shares, exchange of shares, dividend in kind or other like change in capital structure or distribution (other than normal cash dividends) to shareholders of the Company, the Company shall adjust this option such that it shall thereafter be
exercisable for such securities, cash and/or other property as would have been received in respect of the Common Stock subject to this option had it been exercised in full immediately prior to such change or distribution. Such an adjustment shall be
made successively each time any such change shall occur. In the event of any such change or distribution or any extraordinary dividend or distribution of cash or other assets, the Company shall adjust the number and kind of shares of Common Stock
subject to this option and the Exercise Price, to prevent dilution or enlargement of the Optionee’s rights under this option. 
 SECTION 7.
MISCELLANEOUS PROVISIONS. 
 (a) Rights as a Shareholder. Neither the Optionee nor the Optionee’s representative shall have any rights as a
shareholder with respect to any shares of Common Stock subject to this option until the Optionee or the Optionee’s representative becomes entitled to receive such shares of Common Stock by (i) filing a notice of exercise, and
(ii) paying the Purchase Price as provided in this Agreement. 

 (b) Tenure. Nothing in the Notice, Agreement or Plan shall confer upon the Optionee any right to continue in
Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Optionee) or of the Optionee, which rights are hereby expressly reserved
by each, to terminate his or her Service at any time and for any reason, with or without cause. 
 (c) Notification. Any notification required by the
terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. A notice shall be addressed
to the Company at its principal executive office and to the Optionee at the address that he or she most recently provided in writing to the Company. 
 (d)
Entire Agreement. The Notice, this Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral
or written and whether express or implied) which relate to the subject matter hereof. 
 (e) Waiver. No waiver of any breach or condition of this
Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature. 
 (f) Successors and
Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Optionee, the Optionee’s assigns and the legal representatives, heirs and legatees of the
Optionee’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to be joined herein and be bound by the terms hereof. 
 (g) Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State.

 SECTION 8. DEFINITIONS. 
 (a)
“Agreement” shall mean this Stock Option Agreement. 
 (b) “Board of Directors” shall mean the Board of Directors of the
Company, as constituted from time to time. 
 (c) “Cause” shall mean that the Optionee: 
 (i) committed or engaged in an act of fraud, embezzlement, sexual harassment, dishonesty or theft in connection with Optionee’s
Service; or 
 (ii) is convicted of, or pleas nolo contendere with respect to, an act of criminal misconduct.

 (d) “Change in Control” shall be deemed to have occurred upon any of the following events: 

(i) Any person(s) acting together which would constitute a “group” for purposes of Section 13(d) of the Exchange Act
(other than the Company, any subsidiary, or any “permitted holder” as defined below) shall “beneficially own” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, at least 35% of the total voting power of
all classes of capital stock of the Company entitled to vote generally in the election of the Board; or 
 (ii) Either
(A) “incumbent directors”, as defined below, shall cease for any reason to constitute at least a majority of the members of the Board (for these purposes, an “incumbent director” shall mean any member of the Board as of the
Effective Date, and any successor of a incumbent director whose election, or nomination for election by the Company’s shareholders was approved by at least a majority of the current directors then on the Board), or (B) at any meeting of
the shareholders of the Company called for the purpose of electing directors, a majority of the persons nominated by the Board for election as directors shall fail to be elected; or 
 (iii) Consummation of a merger or consolidation of the Company (A) in which the Company is not the continuing or surviving
corporation (other than a consolidation or merger with a wholly-owned subsidiary of the Company in which all shares of Common Stock outstanding immediately prior to the effectiveness thereof are changed into or exchanged for common stock of the
subsidiary) or (B) pursuant to which all shares of Common Stock are converted into cash, securities or other property, except in either case, a consolidation or merger of the Company in which the holders of the shares of Common Stock
immediately prior to the consolidation or merger have, directly or indirectly, at least a majority of the shares of Common Stock of the continuing or surviving corporation immediately after such consolidation or merger or in which the Board
immediately prior to the merger or consolidation would, immediately after the merger or consolidation, constitute a majority of the board of directors of the continuing or surviving corporation; or 
 (iv) Consummation of a plan of complete liquidation of the Company; or 
 (v) The consummation of a sale or other disposition (in one transaction or a series of transactions) of all or substantially all of the
assets of the Company. 
 (e) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the regulations
promulgated thereunder. 
 (f) “Committee” shall mean the committee of the Board, as described in Section 2 of the Plan. 
 (g) “Common Stock” shall mean the common stock of the Company, par value $.01. 
 (h) “Company” shall mean Silicon Graphics, Inc., a Delaware corporation, and any successor thereto. 

 (i) “Date of Grant” shall mean the date specified in the Notice, which date shall be the later of
(i) the date on which the Board or Committee resolved to grant this option or (ii) the first day of the Optionee’s Service. 
 (j)
“Disability” shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months. 
 (k) “Employee” shall mean any individual who is a common-law employee of the
Company, a Parent or a Subsidiary. 
 (l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (m) “Exercise Price” shall mean the amount for which one share of Common Stock may be purchased upon exercise of this option, as specified in the
Notice. 
 (n) “Fair Market Value” shall mean with respect to the fair market value of a share of Common Stock, the average of the high and
low prices of the Common Stock on the date of calculation (or on the last preceding trading date if Common Stock was not traded on such date) if the Common Stock is readily tradeable on a national securities exchange or other market system, and if
the Common Stock is not readily tradeable, Fair Market Value shall mean the amount determined in good faith by the Committee as the fair market value of the Common Stock upon the reasonable application of a reasonable valuation method, as determined
by the Board or Committee in good faith. Such determination shall be conclusive and binding on all persons. 
 (o) “Nonqualified Stock
Option” shall mean a stock option not described in Sections 422(b) of the Code. 
 (p) “Notice” shall have the meaning described in
Section 1(a) of this Agreement. 
 (q) “Optionee” shall mean the person named in the Notice. 
 (r) “Parent” shall mean a “parent corporation” as defined in Section 424(e) of the Code. 
 (s) “Plan” shall mean the Silicon Graphics, Inc. Management Incentive Plan. 
 (t) “Purchase Price” shall mean the Exercise Price multiplied by the number of shares of Common Stock with respect to which this option is being exercised. 
 (u) “Service” shall mean service as a non-Employee member of the Board of Directors. 
 (v) “Subsidiary” shall mean a “subsidiary corporation” as defined in Section 424(f) of the Code.Third Amendment to the Senior Secured Credit Agreement

 Exhibit 10.39 
 THIRD AMENDMENT TO THE 
 SENIOR SECURED CREDIT AGREEMENT 
 This THIRD AMENDMENT TO THE SENIOR SECURED CREDIT AGREEMENT, dated as of February 4, 2008 (this “Amendment”), in respect of and to
that certain Senior Secured Credit Agreement, dated as of October 17, 2006, as amended by the First Amendment to the Credit Agreement, dated as of June 5, 2007, and by the Second Amendment to the Credit Agreement, dated as of
September 11, 2007 (as further amended, modified, restated, amended and restated and/or supplemented from time to time, the “Credit Agreement”), by and among SILICON GRAPHICS, INC., a corporation formed under the laws of
Delaware (the “Parent”), and certain of the Parent’s Subsidiaries identified on the signature pages thereto, as borrowers (such Subsidiaries, together with Parent, are referred to hereinafter each individually as a
“Borrower”, and collectively, jointly and severally, as the “Borrowers”), the other Credit Parties thereto from time to time, as Guarantors, the lenders party thereto from time to time (the
“Lenders”), MORGAN STANLEY SENIOR FUNDING, INC., a corporation formed under the laws of Delaware (“Morgan Stanley”), as administrative agent for the Lenders (in such capacity, together with its successors and
assigns, if any, the “Administrative Agent”), as revolving agent for the Revolving Lenders (in such capacity, together with its successors and assigns, if any, the “Revolving Agent”), and MORGAN STANLEY &
CO., INCORPORATED (“MS& Co.”) as collateral agent for the Secured Creditors (in such capacity, together with its successors and assigns, if any, the “Collateral Agent”). Capitalized terms used in this Amendment
and not otherwise defined shall have the meanings set forth in the Credit Agreement. 
 RECITALS: 
 WHEREAS, the Borrowers have requested that the aggregate principal amount of the Term Loans be increased from $85,000,000 to $127,500,000; 
 WHEREAS, the Administrative Agent, the Borrowers, the Required Lenders and each Lender whose Commitments are being increased are willing to consent to
this Amendment pursuant to, and subject to, the terms and conditions set forth herein. 
 NOW, THEREFORE, the parties agree as follows:

 SECTION 1. Definitions. Capitalized terms used in this Amendment and not otherwise defined shall have the meanings set forth in the
Credit Agreement. 
 SECTION 2. Amendments to the Credit Agreement. The Credit Agreement is hereby amended as follows: 
 2.1 Article I, Section 1.03(a) is hereby amended and restated by deleting the section in its entirety and replacing it with the following:

  

 “(a) Loan Commitments. Subject to the terms and conditions set forth herein, each Term Lender
hereby severally agrees to make a term loan to the Borrowers (i) in the principal amount set forth opposite each such Term Lender’s name on Schedule B hereto to the Borrower on the Closing Date (each an “Initial Term
Loan”), and (ii) in the principal amount set forth opposite each such Term Lender’s name on Schedule C hereto to the Borrowers on the Effective Date (each an “Incremental Term Loan” and, together with
the Initial Term Loans, the “Term Loans”), in each case in accordance with this Section 1.03. The aggregate principal amount of the Term Loans to be advanced shall not exceed one-hundred-twenty-seven million five-hundred
thousand Dollars ($127,500,000). Amounts repaid or prepaid under this Section 1.03 may not be reborrowed.” 
 2.2 Article
I, Section 1.03(b) is hereby amended by: 
 (a) Deleting all references to the term “Closing Date” within such section and
replacing them with the term “Borrowing Date”. 
 2.3 Article I, Section 1.03(c) is hereby amended by: 
 (a) Deleting all references to the term “Closing Date” within such section and replacing them with the term “Borrowing Date”.

 2.4 Article I, Section 1.03(d) is hereby amended by: 
 (a) Deleting all references to the term “Closing Date” within such section and replacing them with the term “Borrowing Date”.

 2.5 Article I, Section 1.03(e) is hereby amended by deleting the table in its entirety and replacing it with the following:

  

				
	 Date
	  	Term Loan
Scheduled Repayment
	 December 26, 2008
	  	$	4,250,000
	 March 27, 2009
	  	$	4,250,000
	 June 26, 2009
	  	$	4,250,000
	 September 25, 2009
	  	$	4,250,000
	 December 25, 2009
	  	$	5,250,000
	 March 26, 2010
	  	$	5,250,000
	 June 25, 2010
	  	$	5,250,000
	 September 24, 2010
	  	$	5,250,000
	 December 24, 2010
	  	$	6,250,000
	 March 25, 2011
	  	$	6,250,000
	 June 24, 2011
	  	$	6,250,000
	 Maturity Date
	  	$	70,750,000
		  	 	 
	 Total
	  	$	127,500,000

  

 2.6 Article II, Section 2.03(a) is hereby amended as follows: 
 (a) The words “the percentage set forth below:” and the chart that follows such words shall be deleted and replaced with “two
(2) percent.”; and 
 (b) The words “pursuant to Section 1.10” in the first sentence thereto shall be deleted
and replaced with “in accordance with Section 1.10.” 
 2.7 Article II, Section 2.03(b) is hereby amended
by deleting the words “the percentage set forth below:” and the chart that follows and replacing such words and chart with “two (2) percent.” 
 2.8 Article IV is hereby amended by adding the following new Section 4.03 as follows: 
 Section 4.03. Conditions Precedent to the Incremental Term Loans. The obligation of each Lender to make the Incremental Term Loans requested on the Effective Date shall be subject to the satisfaction, or waiver by the
Administrative Agent of each of the following conditions precedent: 
 (a) Authority. The Administrative Agent shall have received
certified copies of all resolutions, certificates or other documents evidencing other necessary corporate action and governmental approvals, if any, with respect to the authorization for the execution, delivery and performance of each Loan Document
by a Credit Party and for the consummation of the transactions contemplated thereby. All certificates shall state that the resolutions or other information referred to in such certificates have not been amended, modified, revoked or rescinded as of
the Effective Date. 
 (b) Loan Documents. The Administrative Agent shall have received, on or before the Effective Date, counterparts
of each of the following documents duly executed and delivered by each party thereto, and in full force and effect and in form and substance reasonably satisfactory to the Administrative Agent: 
 (i) this Agreement (including any amendments thereto); 
 (ii) the Notes, if any; 
 (iii) such corporate resolutions, certificates and other documents as the Administrative Agent reasonably requests; and 
 (iv) all other documents and legal matters in connection with the transactions contemplated by the Agreement (including any amendments thereto) shall have been delivered, executed, or recorded. 
 (c) No Change in Condition. There shall not have occurred any event, circumstance, change or condition since March 31, 2006, other than
the filing of the Bankruptcy Petition, which could reasonably be expected to have a Material Adverse Effect. 
  

 (d) No Legal Impediment. No injunction, writ, restraining order, or other order of any nature
(whether temporary, preliminary or permanent) restricting or prohibiting, directly or indirectly, the extending of such credit shall have been issued and remain in force by any Governmental Authority against any Borrower, any Agent or any Lender,
and such extension of credit shall not violate any requirement of applicable law. 
 (d) Consents, Etc. Each Credit Party shall have
received all material consents and authorizations required pursuant to any material contract with any other Person and shall have obtained all material Permits of, or approvals from, and effected all notices to and filings with, any Governmental
Authority as may be necessary to allow such Credit Party lawfully (A) to execute, deliver and perform, in all material respects, their respective obligations under the Loan Documents to which each of them is, or shall be, a party and each other
agreement or instrument to be executed and delivered by each of them pursuant thereto or in connection therewith, (B) consummate the transactions contemplated hereunder and under the other Loan Documents (including the making of the Incremental
Term Loans) and (C) create and perfect the Liens on the Collateral to be owned by each of them to the extent, in the manner and for the purpose contemplated by the Loan Documents. Each Credit Party shall have received all shareholder,
governmental and material third-party consents, licenses, approvals or evidence of other actions, necessary in connection with the execution and delivery of the Loan Documents, and the performance thereunder and the transactions contemplated by the
Loan Documents, and any applicable waiting period shall have expired without any action being taken by any Governmental Authority that could restrain, prevent or impose any material adverse conditions on such Credit Party or such transactions or
that could seek to restrain or threaten any of the foregoing, and no law or regulation shall be applicable which in the reasonable judgment of the Administrative Agent could have such effect. 
 (e) Solvency. Immediately after the incurrence of the Incremental Term Loans on the Effective Date, and after giving effect to such Incremental
Term Loans, and use of the proceeds of the Loans, the Credit Parties, taken as a whole, shall be Solvent. 
 (f) Opinions of
Borrower’s Counsel. The Lenders shall have received the opinion of Weil, Gotshal and Manges LLP, special counsel to the Borrowers and the Guarantors, in form and substance satisfactory to each of the Agents. 
 (g) Fees and Expenses Paid. There shall have been paid to the Agents all fees and, to the extent documented, expenses (including the reasonable
legal fees of counsel to each of the Agents and any local counsel to the Agents) due and payable on or before the Effective Date. 
 (h)
Organizational Documents. The Administrative Agent shall have received on or before the Effective Date, a copy of the certificate of incorporation or certificate of formation, as applicable, and all amendments thereto of each Credit Party,
and copies of each Credit Party’s by-laws or limited liability company agreement, as applicable, in each case certified by the Secretary or Assistant Secretary of each Borrower as true and correct as of the Effective Date. 
  

 (i) Certificates. 
 (i) The Administrative Agent shall have received, on the Effective Date, a certificate of the Secretary or Assistant Secretary of each
Borrower, dated the Effective Date, as to the incumbency and signatures of its officers executing this Agreement (or any amendment thereto) and each other Loan Document to which each such Borrower is a party and any other certificate or other
document to be delivered pursuant hereto or thereto, together with evidence of the incumbency of such Secretary or Assistant Secretary. 
 (ii) The Administrative Agent shall have received, on the Effective Date, a certificate of a Senior Officer of each Borrower, dated the Effective Date, stating that to the knowledge of such officer and on behalf of
each Credit Party (not in such officer’s individual capacity) all of the representations and warranties of each Credit Party contained herein or in any of the other Loan Documents are true and correct in all material respects on and as of the
Effective Date as if made on such date (except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date), that no
breach of any covenant contained in Article VII, Article VIII or Article IX has occurred or would result from the execution, delivery of and performance under this Agreement (as amended as of the Effective Date)
and the transactions contemplated hereunder and that all of the conditions set forth in this Section 4.03 have been satisfied on such date (or shall, to the extent permitted therein, be satisfied substantially simultaneously with the
incurrence of Loans on the Effective Date). 
 (j) Representations and Warranties. Both before and after giving effect to the
Incremental Term Loans to be made on the Effective Date, as the case may be, all of the representations and warranties of any Credit Party contained in Article V and in the other Loan Documents shall be true and correct in all material
respects as if made on such date (except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date). 
 (k) No Defaults. No Event of Default or Default, and no default under any other Loan Document, shall have occurred and be continuing or would
result from the execution and delivery of, or the performance under, the Loan Documents, or making the requested Incremental Term Loans or the application of the proceeds therefrom. 
 2.9 Article V, Section 5.01(k) is hereby amended by deleting the words “except to the extent subject to a Permitted Protest.” and
replacing them with “except (i) to the extent subject to a Permitted Protest, or (ii) to the extent that the failure to have or to so comply could not, individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect.” 
  

 2.10 Article VII, Section 7.19 is hereby amended by deleting clause (a) of such
Section in its entirety and replacing it with the following: 
 “(a) The Credit Parties shall cause the Secured Creditors to have a
valid, perfected, first-priority security interest in all Permitted Accounts as and to the extent provided in the Security Agreement. Notwithstanding the foregoing, the Credit Parties shall be permitted to maintain Approved Accounts to the extent
permitted by Section 8.07 and Section 8.17 hereof.” 
 2.11 Article VIII, Section 8.17 is hereby
amended by deleting such Section in its entirety and replacing it with the following: 
 “Section 8.17 Securities Accounts; Deposit
Accounts. Subject to the Security Agreement and except as permitted by Section 8.07, it shall not, and shall not permit any of its Subsidiaries, to establish or maintain any domestic Securities Account, Deposit Account or similar
account unless the Collateral Agent shall have received a Control Agreement in respect of such domestic Securities Account, Deposit Account or similar account; provided, however, that (i) the Credit Parties and their Subsidiaries
may establish and maintain any Approved Account and (ii) no Credit Party shall be required to deliver a Control Agreement to the Collateral Agent with respect to any Approved Account, in each case so long as the aggregate balance in all such
Approved Accounts does not exceed three million Dollars ($3,000,000) at any time outstanding. Each Credit Party shall comply in all material respects with the provisions of each Control Agreement to which it is a party.” 
 2.12 Article XIV, Section 14.01 is hereby amended by deleting the definition of “Alternate Base Rate” in its entirety and replacing
it with the following: 
 “Alternate Base Rate” at any time means the rate of interest per annum equal to the higher of
(a) the rate of interest quoted by The Wall Street Journal as the “base rate on corporate loans posted by at least 75% of the nation’s 30 largest banks”; (b) the rate that is 0.50% in excess of the Federal Funds Rate; and
(c) 6.25%. Any change in the Alternate Base Rate due to a change in The Wall Street Journal rate referred to in clause (a) of this definition or the Federal Funds Rate shall be effective on the opening of business on the date of
such change. 
 2.13 Article XIV, Section 14.01 is hereby amended by inserting the following definition of “Approved
Account” in the appropriate place to preserve the alphabetical order of the definitions in such Section 14.01: 
 “Approved Account” means any Securities Account, Deposit Account or similar account established by any Credit Party or any Subsidiary of a Credit Party into which such Person may from time to time deposit cash or Cash
Equivalents for the purpose of maintaining and funding cash collateral to secure any performance bond, performance guaranty, surety bond or letter of credit obligation or other similar obligation of such Person. 
  

 2.14 Article XIV, Section 14.01 is hereby amended by inserting the following definition of
“Borrowing Date” in the appropriate place to preserve the alphabetical order of the definitions in such Section 14.01: 
 “Borrowing Date” means, as appropriate, (i) in the case of the Initial Term Loans, the Closing Date, or (ii) in the case of the Incremental Term Loans, the Effective Date. 
 2.15 Article XIV, Section 14.01 is hereby amended by inserting the following definition of “Effective Date” in the appropriate
place to preserve the alphabetical order of the definitions in such Section 14.01: 
 “Effective Date” means the
Business Day, on or before February 4, 2008, on which all of the conditions precedent set forth in Sections 4.01 and 4.03 are satisfied (or waived in accordance with the terms of this Agreement). 
 2.16 Article XIV, Section 14.01 is hereby amended by inserting the following definition of “Incremental Term Loan” in the
appropriate place to preserve the alphabetical order of the definitions in such Section 14.01: 
 “Incremental Term
Loan” has the meaning ascribed to such term in Section 1.03(a). 
 2.17 Article XIV, Section 14.01 is hereby
amended by inserting the following definition of “Incremental Term Loan Commitment” in the appropriate place to preserve the alphabetical order of the definitions in such Section 14.01: 
 “Incremental Term Loan Commitment” means, with respect to any Lender, the obligation of such Lender at such time to make an Incremental
Term Loan pursuant to the terms and conditions of this Agreement.” 
 2.18 Article XIV, Section 14.01 is hereby amended by
inserting the following definition of “Initial Term Loans” in the appropriate place to preserve the alphabetical order of the definitions in such Section 14.01: 
 “Initial Term Loan” has the meaning ascribed to such term in Section 1.03(a). 
 2.19 Article XIV, Section 14.01 is hereby amended by deleting the definition of “LIBOR Rate” in its entirety and replacing it with
the following: 
 “LIBOR Rate” means for each LIBOR Period, a rate of interest determined by the Revolving Agent equal to the
greater of: (i) 3.50% and (ii) the interest rate calculated by dividing: 
 (a) the offered rate for deposits in United States
Dollars for the applicable LIBOR Period that appears on Telerate Page 3750 as of 11:00 a.m. (London time), on the second full Business Day next preceding the first day of such LIBOR Period (unless such date is not a Business Day, in which
event the next succeeding Business Day will be used); by 
  

 (b) a number equal to 1.0 minus the aggregate (but without duplication) of the rates (expressed as
a decimal fraction) of reserve requirements in effect on the day that is two (2) Business Days prior to the beginning of such LIBOR Period (including basic, supplemental, marginal and emergency reserves under any regulations of the Federal
Reserve Board or other Governmental Authority having jurisdiction with respect thereto, as now and from time to time in effect) for Eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Federal
Reserve Board) that are required to be maintained by a member bank of the Federal Reserve System. 
 If such interest rates shall cease to be
available from Telerate News Service (or its successor satisfactory to Administrative Agent), the LIBOR Rate shall be determined from such financial reporting service or other information as shall be mutually acceptable to the Revolving Agent and
Borrower Representative. 
 2.20 The definition of “Permitted Encumbrances” in Article XIV, Section 14.01 is hereby
amended by deleting the word “and” at the end of clause (i) thereof, by replacing the period at the end of clause (j) thereof with “; and”, and by inserting the following as new clause (k):

 (k) Liens on Approved Accounts and cash and Cash Equivalents held therein, to the extent that the aggregate amount of such Liens does not
exceed $3,000,000 in the aggregate at any time outstanding and securing Permitted Indebtedness. 
 2.21 The definition of “Permitted
Indebtedness” in Article XIV, Section 14.01 is hereby amended by deleting the word “and” at the end of clause (k) thereof, by replacing the period at the end of clause (l) thereof with “;
and”, and by inserting the following as new clause (m): 
 (m) Indebtedness under performance bonds, performance guaranties,
surety bonds and related letter of credit obligations or other similar obligations in an aggregate amount not to exceed three million Dollars ($3,000,000) at any time outstanding. 
 2.22 The definition of “Permitted Investments” in Article XIV, Section 14.01 is hereby amended by deleting the word “and”
at the end of clause (i) thereof, by replacing the period at the end of clause (j) thereof with “; and”, and by inserting the following as new clause (k): 
 (k) Investments in Approved Accounts in an aggregate amount at any time outstanding not to exceed three million Dollars ($3,000,000). 
 2.23 The definition of “Pro Rata Share” in Article XIV, Section 14.01 is hereby amended by adding the following to the end of such
definition: “The Pro Rata Shares of (y) the Incremental Term Loan Commitments and (z) the Revolving Commitments as of February 4, 2008 are each set forth in Schedule C.” 
  

 2.24 Article XIV, Section 14.01 is hereby amended by deleting the definition of
“Revolving Commitment” in its entirety and replacing it with the following: 
 “Revolving Commitment” means, with
respect to any Revolving Lender, the obligation of such Revolving Lender at such time to make Revolving Advances pursuant to the terms and conditions of this Agreement. The Initial Revolving Commitments of each Lender are set forth in Schedule
B. As of February 4, 2008, the Revolving Commitments of each Lender are set forth in Schedule C. 
 2.25 Article XIV,
Section 14.01 is hereby amended by deleting the definition of “Term Lender” in its entirety and replacing it with the following: 
 “Term Lender” means a Lender that has an Incremental Term Loan Commitment and/or that has an outstanding Term Loan. 
 2.26 Article XIV, Section 14.01 is hereby amended by deleting the definition of “Term Loan Commitment” in its entirety and replacing it with the following: 
 “Term Loan Commitment” means, with respect to any Lender, the obligation of such Lender at such time to make (a) an Initial Term
Loan or (b) an Incremental Term Loan, in each case pursuant to the terms and conditions of this Agreement. 
 2.27 Schedule B is
hereby amended by deleting the chart in its entirety and replacing it with Schedule B attached hereto as Annex A. 
 2.28 Schedule C
is hereby added and is attached hereto as Annex B. 
 SECTION 3. Representations and Warranties. The Borrowers hereby represents and
warrants as follows: 
 3.1 As of the date hereof, all of the representations and warranties contained in the each of the Credit Agreement and
each of the other Loan Documents are true and correct in all material respects, except to the extent such representations and warranties specifically relate to an earlier date thereto, in which case, such representations and warranties shall be true
and correct as of such earlier date. 
 3.2 The execution, delivery and performance by each Borrower of this Amendment has been duly
authorized by all necessary corporate action, and this Amendment constitutes the legal, valid and binding obligation of the Borrowers and is enforceable against them in accordance with its terms, except as the enforcement hereof may be subject to
the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally or to general principles of equity. 
  

 3.3 The execution, delivery and performance of this Amendment and the consummation of the transactions
contemplated hereby by the Borrowers does not, and will not, contravene or conflict with any provision of (i) applicable law, (ii) any judgment, decree or order to which any Borrower or its property is subject, or (iii) the Governing
Documents of the Borrowers and does not, and will not, contravene, conflict with or cause any Lien to arise under any provision of any indenture, agreement, mortgage, lease, instrument or other document, including the Loan Documents. 
 3.4 No Default or Event of Default has occurred and is continuing under any of the Loan Documents or will be triggered by the execution, delivery or
performance of this Amendment or the consummation of the transactions contemplated hereby. 
 3.5 Each of the Credit Agreement and each of
the other Loan Documents remain in full force and effect. 
 SECTION 4. Conditions Precedent to Effectiveness. This Amendment shall be
effective upon the satisfaction of the following: 
 4.1 This Amendment shall have been duly executed and delivered by each Borrower, the
Administrative Agent, the Required Lenders, and each Lender whose Term Loan Commitments shall be increased pursuant to this Amendment. 
 4.2
No Default or Event of Default has occurred and is continuing under any Loan Document or will be triggered by the execution, delivery or performance of this Amendment or the consummation of the transactions contemplated hereby. 
 4.3 The representations and warranties contained herein shall be true and correct. 
 4.4 The Borrowers shall have paid the fees contained in the OID Letter, dated the date hereof, and the Administrative Agent shall have paid such fees to
the Term Lenders entitled thereto. 
 SECTION 5. Miscellaneous. 
 5.1 Certain Terms. All references in the Credit Agreement to the “Agreement,” “hereof,” “herein,”
“hereunder” or any other words of similar import shall be deemed to be references to the Credit Agreement as amended by this Amendment. 
 5.2 No Waiver. The execution, delivery and effect of this Amendment shall be limited precisely as written and shall not be deemed to (i) be a consent to any waiver, amendment or modification of any term or condition of the Loan
Documents except as specifically provided herein or (ii) prejudice any right, power or remedy that the Agents or any Lender now has or may have in the future under or in connection with the Loan Documents. 
  

 5.3 Confirmation of Guarantee. By executing and delivering this Amendment, each Guarantor hereby
(a) confirms that the Lenders continue, and will continue, to have the benefit of the guaranty contained in the Credit Agreement and the execution and delivery of the Amendment does not in any way modify, reduce, revise, discharge or otherwise
impair or affect the Guarantors’ obligations thereunder, (b) acknowledges that the guaranty contained in the Credit Agreement remains in full force and effect and (c) ratifies the guaranty and further ratifies and confirms any Liens
granted by it to the Collateral Agent for the benefit of the Lenders under the Loan Documents. 
 5.4 GOVERNING LAW. THIS AMENDMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 5.5 Headings. The headings contained in
this Amendment are solely for convenience and shall not be used or relied upon in any manner in the construction or interpretation of this Amendment. 
 5.6 Counterparts. This Amendment may be executed in any number of counterparts, each of which, when so executed and delivered, shall be deemed an original, and all such counterparts, taken together, shall
constitute one and the same Amendment. Delivery of an executed counterpart of a signature page to this Amendment by electronic means shall be as effective as delivery of a manually executed counterpart. 
 [Signature pages follow] 

 IN WITNESS WHEREOF, this Amendment has been duly executed as of the date hereof. 
  

			
	BORROWERS:
	
	SILICON GRAPHICS, INC.
		
	By:	 	 /s/ Kathy Lanterman

	Name:	 	Kathy Lanterman
	Title:	 	Senior Vice President and Chief Financial Officer
	
	SILICON GRAPHICS FEDERAL, INC.
		
	By:	 	 /s/ Harry Fuchigami

	Name:	 	Harry Fuchigami
	Title:	 	Secretary
	
	SILICON GRAPHICS WORLD TRADE CORPORATION
		
	By:	 	 /s/ Kathy Lanterman

	Name:	 	Kathy Lanterman
	Title:	 	Vice President

 SIGNATURE PAGE TO THE THIRD AMENDMENT 
 TO THE SENIOR SECURED CREDIT AGREEMENT 

			
	ADMINISTRATIVE AGENT:
	
	MORGAN STANLEY SENIOR FUNDING, INC., on behalf of the Lenders
		
	By:	 	 /s/ Gavin Baiera

	Name:	 	Gavin Baiera
	Title:	 	Authorized Signatory
	
	REVOLVING AGENT
	
	MORGAN STANLEY SENIOR FUNDING, INC., on behalf of the Revolving Lenders
		
	By:	 	 /s/ Gavin Baiera

	Name:	 	Gavin Baiera
	Title:	 	Authorized Signatory

  

 SIGNATURE PAGE TO THE THIRD AMENDMENT 
 TO THE SENIOR SECURED CREDIT AGREEMENT 

 Annex A 
  

 A-1 

 SCHEDULE B 
 INITIAL PRO RATA SHARES & 
 INITIAL COMMITMENTS 
  

													
	 	  	Commitment	  	Pro Rata Share	 
	 	  	Revolving	  	Term	  	Revolving	 	 	Term	 
	 Lenders:
	  			  			  			 		
	 Morgan Stanley Senior Funding, Inc.
	  	$	0	  	$	85,000,00.00	  	0.00	%	 	100	%
	 General Electric Capital Corporation
	  	$	30,000,000	  	$	0	  	100	%	 	0	%

  

 A-2 

 Annex B 
  

 A-3 

 SCHEDULE C 
 INCREMENTAL TERM LOAN COMMITMENTS AND PRO RATA SHARES 
 & 
 REVOLVING COMMITMENTS AND PRO RATA SHARES 
 AS OF FEBRUARY 4, 2008 
  

													
	 	  	Commitment	  	Pro Rata Share	 
	 	  	Revolving	  	Incremental
Term Loans	  	Revolving	 	 	Incremental
Term Loans	 
	 Lenders:
	  			  			  			 		
	 GRAND CENTRAL ASSET TRUST, DES
	  	 	—  	  	$	10,000,000.00	  	0.00	%	 	23.53	%
	 ENCORE FUND, L.P.
	  	 	—  	  	$	1,250,000.00	  	0.00	%	 	2.94	%
	 FORTISSIMO FUND
	  	 	—  	  	$	3,750,000.00	  	0.00	%	 	8.82	%
	 QUADRANGLE MASTER FUNDING LTD.
	  	$	5,294,588.00	  	$	9,450,000.00	  	26.47	%	 	22.24	%
	 GPC 76, LLC
	  	 	—  	  	 	—  	  	0.00	%	 	0.00	%
	 SOUTHPAW CREDIT OPPORTUNITY
	  	 	—  	  	 	—  	  	0.00	%	 	0.00	%
	 WATERSHED CAPITAL INSTITUTIONAL PARTNERS, L.P.
	  	$	6,098,823.00	  	$	3,985,611.00	  	30.49	%	 	9.38	%
	 WATERSHED CAPITAL PARTNERS, L.P.
	  	$	2,371,765.00	  	$	1,538,345.00	  	11.86	%	 	3.62	%
	 WATERSHED CAPITAL PARTNERS (OFFSHORE), LTD.
	  	 	—  	  	$	3,926,044.00	  			 	9.24	%
	 WATERSHED TECHNOLOGY HOLDINGS
	  	 	—  	  	 	—  	  	0.00	%	 	0.00	%
	 PRESIDENT FELLOWS HARVARD
	  	$	2,926,803.00	  	 	—  	  	14.63	%	 	0.00	%
	 WELLPOINT, INC.
	  	$	1,276,156.00	  	 	—  	  	6.38	%	 	0.00	%
	 WHIPPOORWILL ASSOCIATES, INC.,
	  	$	19,415.00	  	 	—  	  	0.10	%	 	0.00	%
	 WHIPPOORWILL OFFSHORE
	  	$	823,260.00	  	 	—  	  	4.12	%	 	0.00	%
	 WHIPPOORWILL DISTRESSED OPP
	  	$	1,189,190.00	  	 	—  	  	5.95	%	 	0.00	%
	 LC CAPITAL MASTER FUND LTD.
	  	 	—  	  	$	3,600,000.00	  	0.00	%	 	8.47	%
	 MORGAN STANLEY SENIOR FUNDING, INC.
	  	 	—  	  	$	5,000,000.00	  	0.00	%	 	11.76	%
	 Total
	  	$	20,000,000.00	  	$	42,500,000.00	  	100.00	%	 	100.00	%

  

 A-4

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