Document:

Note

 Exhibit 10.1 
 NOTE 
  

			
	US $1,000,000	  	September 11, 2007

 FOR VALUE RECEIVED, the undersigned, BioDelivery Sciences International, Inc., a
Delaware corporation with an office at 2501 Aerial Center Parkway, Suite 205, Morrisville, North Carolina 27560 USA (“Parent”) and its wholly-owned subsidiary Arius Pharmaceuticals, Inc., a Delaware corporation with an office
at the same address (“Arius”, and together with Parent, “BDSI”) hereby promises to pay to the order of Meda AB (publ.), a Swedish corporation with its principal office at Pipers väg 2 A, SE-170 09,
Solna, Sweden (“Meda”), the principal sum of US $1,000,000 with interest thereon as hereinafter provided. 
 This note (the
“Note”) is issued in connection with a License and Development Agreement, dated as of September 5, 2007, by and between BDSI and Meda (the “License Agreement”). Capitalized terms used herein and not otherwise
defined that are defined in the License Agreement shall have the same respective meanings herein as therein. Meda, by loaning Parent the above-referenced amount and accepting this Note, acknowledges that its rights hereunder are subordinate to the
secured $3 million note of Parent, dated September 4, 2007, held by Southwest Bank of St. Louis. 
 All payments of principal and
interest on this Note are to be made by BDSI in United States dollars by wire-transfer of immediately available funds to an account designated by Meda. No interest shall be payable until an Event of Default (as defined below), after which time
interest shall accrue and be payable on demand at the rate set forth in Section 4.06(d) of the License Agreement. If not sooner paid, the unpaid principal sum shall be due and payable as follows: 
  

	 	(a)	If the HSR Date occurs prior to termination of the License Agreement by either Party pursuant to Section 1A.03 thereof, payment shall be made by crediting Meda with the unpaid
principal amount against the amount payable by Meda under Section 3.01 thereof; and 

  

	 	 (b)
	 If either Party terminates the License Agreement pursuant to Section 1A.03 thereof, payment shall be due and
payable by BDSI on the tenth (10th) business day following such termination. 

 This Note may be prepaid in whole or in part at any time without premium or penalty. 
 BDSI and endorsers hereby waive presentment, demand, protest and notice of any kind in connection with the delivery, acceptance, performance and
enforcement of this Note, and also hereby assent to extensions of time of payment or forbearance or other indulgences without notice. No failure on the part of Meda in exercising any right or remedy hereunder, and no single, partial or delayed
exercise by Meda of any right or remedy shall preclude the full and 

 
timely exercise by Meda at any time of any right or remedy of Meda hereunder without notice. This Note contains the entire agreement between the parties with
respect to the subject matter hereof. In the event that any court of competent jurisdiction shall determine that any provision, or portion thereof, contained in this Note shall be unenforceable in any respect, then such provision shall be deemed
limited to the extent that such court deems it enforceable, and the remaining provisions of this Note shall nevertheless remain in full force and effect. 
 Upon the occurrence of any one or more of the following events (each, an “Event of Default”), Meda at its option may declare all amounts due hereunder, including, without limitation, the entire unpaid
principal balance of this Note, to be immediately due and payable without presentment, demand, protest or other notice of any kind (all of which are hereby expressly waived): 
 (a) The failure to make any payment of principal due pursuant to the terms of this Note; or 
 (b) The material breach by BDSI of any of its obligations under Section 1A of the License Agreement and the failure to cure such breach within ten
business days after written notice from Meda; 
 (c) Upon or after the cessation of operations of BDSI or the bankruptcy, insolvency,
dissolution or winding up of BDSI. 
 In the event of a default as provided for herein, any reasonable, documented attorneys’ fees incurred by Meda and
directly arising from such default shall be payable by BDSI. 
 None of the terms or provisions of this Note may be excluded, modified, or
amended except by a written instrument duly executed on behalf of both BDSI and Meda expressly referring hereto and setting forth the provision so excluded, modified or amended. No waiver or forbearance of any of the rights and remedies of Meda
hereunder shall be effective unless made specifically in a writing signed by Meda, and any such waiver or forbearance shall be effective only in the specific instance and for the specific purpose for which given. 
 THIS NOTE IS DELIVERED AND SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS PRINCIPLES OF
CONFLICTS OF LAWS. THE BORROWER SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURTS SITUATED THEREIN FOR ALL PURPOSES WITH RESPECT TO THIS NOTE. 
 [Signature page is the next page] 
  

 - 2 - 

 IN WITNESS WHEREOF, BDSI has executed this Note on the day and in the year first above written.

  

			
	 BIODELIVERY SCIENCES
 INTERNATIONAL, INC.

		
	By:	 	 /s/ Mark A. Sirgo

	Name:	 	Mark A. Sirgo
	Title:	 	President and CEO
	
	ARIUS PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Mark A. Sirgo

	Name:	 	Mark A. Sirgo
	Title:	 	President

  

 - 3 -Second Amendment to the Senior Secured Credit Agreement

 Exhibit 10.28 
 EXECUTION VERSION 
 SECOND AMENDMENT TO THE SENIOR SECURED 
 CREDIT AGREEMENT, FIRST AMENDMENT TO THE SECURITY 
 AGREEMENT AND FIRST AMENDMENT TO THE PLEDGE AGREEMENT 
 This Second Amendment to the Senior Secured
Credit Agreement, First Amendment to the Security Agreement and First Amendment to the Pledge Agreement (this “Amendment”) is dated as of September 11, 2007, and is entered into 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 hereof, as borrowers (such Subsidiaries, together with Parent, are referred to hereinafter
each individually as a “Borrower”, and collectively, jointly and severally, as the “Borrowers”), and the other Credit Parties hereto from time to time, as Guarantors, the Participating Lenders who have authorized
the execution of the Amendment by the Administrative Agent and/or the Revolving Agent (each as defined below), 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”). 
 RECITALS: 
 WHEREAS, the Borrowers, the Administrative Agent, the Lead Arranger, the other Credit Parties thereto from time to time, as Guarantors, the Lenders party thereto from time to time and GENERAL ELECTRIC CAPITAL
CORPORATION, a corporation formed under the laws of Delaware (“GE”), as Revolving Agent, Collateral Agent, and Syndication Agent, are parties to that certain Senior Secured Credit Agreement, dated as of October 17, 2006, (as
further amended, modified, restated, amended and restated and/or supplemented from time to time, the “Credit Agreement”); 
 WHEREAS, the Grantors and the Collateral Agent are parties to that certain Security Agreement, dated as of October 17, 2006, (as further amended, modified, restated, amended and restated and/or supplemented from time to time, the
“Security Agreement”); 
 WHEREAS, the Pledgors and the Collateral Agent are parties to that certain Pledge Agreement, dated
as of October 17, 2006, (as further amended, modified, restated, amended and restated and/or supplemented from time to time, the “Pledge Agreement”); 
 WHEREAS, on September 11, 2007, GE resigned as Revolving Agent and as Collateral Agent under each of the Loan Documents and assigned its Revolving
Commitments to the Revolving Lenders listed in Schedule B to the Credit Agreement, attached hereto as Exhibit A; 

 WHEREAS, on September 11, 2007, the Borrower Representative appointed Morgan Stanley as Revolving
Agent and MS& Co. as Collateral Agent under each of the Loan Documents; 
 WHEREAS, the Administrative Agent, the Borrower
Representative, the Revolving Agent, the Collateral Agent and the Required Lenders 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 III, Section 3.06(c) is hereby amended by deleting the section in its entirety and replacing it with the following: 
 “the Revolving Agent, for the account of the Revolving Lenders, a Letter of Credit fee in an amount equal to 4.75% per annum times the undrawn amount of all outstanding Letters of Credit, payable monthly in arrears;
and” 
 2.2 Article VI, Section 6.01(e)(ii) is hereby deleted in its entirety. 
 2.3 Article IX, Section 9.01 is hereby amended by deleting the chart in its entirety and replacing it with the following: 
  

					
	 Period Ending
	 	 Ratio
	 	 
	 March 27, 2009
	 	3.90x	 	
	 June 26, 2009
	 	3.40x	 	
	 September 25, 2009
	 	2.63x	 	
	 December 25, 2009
	 	2.33x	 	
	 March 26, 2010
	 	2.33x	 	
	 June 25, 2010
	 	2.33x	 	
	 September 24, 2010
	 	2.33x	 	
	 December 24, 2010
	 	2.33x	 	
	 March 25, 2011
	 	2.33x	 	
	 June 24, 2011
	 	2.33x	 	
	 September 30, 2011
	 	2.33x	 	

 2.4 Article IX, Section 9.02 is hereby amended by deleting the section in its entirety
and replacing it with the following: 
 Minimum Levels of Consolidated EBITDA. The Credit Parties shall not permit Consolidated EBITDA
for the Parent and its Subsidiaries for the twelve-month period ended on each date set forth below to be less than the amount set forth opposite such date: 
  

 - 2 - 

			
	 Measurement Period Ending
	  	Amount
	 March 27, 2009
	  	$26,900,000
	 June 26, 2009
	  	$30,900,000
	 September 25, 2009
	  	$40,000,000
	 December 25, 2009
	  	$45,000,000
	 March 26, 2010
	  	$45,000,000
	 June 25, 2010
	  	$45,000,000
	 September 24, 2010
	  	$45,000,000
	 December 24, 2010
	  	$45,000,000
	 March 25, 2011
	  	$45,000,000
	 June 24, 2011
	  	$45,000,000
	 September 30, 2011
	  	$45,000,000
	 December 30, 2011
	  	$45,000,000

 2.5 Article IX, Section 9.03 is hereby deleted in its entirety. 
 2.6 Article XIV, Section 14.01 is hereby amended by deleting the definition of “Applicable Margin” in its entirety and replacing it
with the following: 
 “Applicable Margin” means a percentage per annum determined as of the end of the last Fiscal Quarter,
as set forth below: 
  

					
	 	  	Alternate Base
Rate Loan	 	LIBOR Rate Loan
	 Revolving Advances
	  	3.50%	 	4.75%
			
	 Term Loans
	  	5.75%	 	7.00%

 2.7 Article XIV, Section 14.01 is hereby amended by deleting the definition of
“Debt for Borrowed Money” in its entirety and replacing it with the following: 
 “Debt for Borrowed Money” means
the sum of the total outstanding amount of Term Loans, Letter of Credit Obligations, and Revolving Advances made pursuant to the Credit Agreement. 
 2.8 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. As of September 11, 2007, the Revolving Commitments of each Lender are set forth in Schedule B. 
  

 - 3 - 

 2.9 Article XIV, Section 14.01 is hereby amended by deleting the definition of “Total
Leverage Ratio” in its entirety and replacing it with the following: 
 “Total Leverage Ratio” means, as of any date of
determination, the ratio of (i) Debt for Borrowed Money as of such date to (ii) the Parent’s Consolidated EBITDA for the four (4) Fiscal Quarter periods most recently ended on such date.” 
 2.10 Article XIV, Section 14.01 is hereby amended by deleting the definition of “Total Revolving Commitment” in its entirety and
replacing it with the following: 
 “Total Revolving Commitment” means the aggregate principal amount of the Revolving
Commitments of all the Revolving Lenders (it being understood and agreed that the maximum aggregate principal amount of the Revolving Commitments shall not exceed twenty million Dollars ($20,000,000), as reduced from time to time pursuant to the
terms hereof). 
 2.11 Article XIV, Section 14.01 is hereby amended by deleting the definition of “Consolidated Total
Debt” in its entirety. 
 2.12 Schedule B is hereby amended by deleting the chart in its entirety and replacing it with Schedule
B attached hereto as Annex A. 
 2.13 Exhibit B is hereby amended by deleting the exhibit in its entirety and replacing it with a
revised Exhibit B attached hereto as Annex B. 
 2.14 Exhibit G is hereby amended by deleting the exhibit in its entirety and
replacing it with a revised Exhibit G attached hereto as Annex C. 
 SECTION 3. Amendments to the Security Agreement. The Security
Agreement is hereby amended as follows. 
 3.1 All references to the Revolving Agent shall be deemed to refer to Morgan Stanley and its
successors and assigns and all references to the Collateral Agent shall be deemed to refer to MS& Co. and its successors and assigns. 
 SECTION 4. Amendments to the Pledge Agreement. The Pledge Agreement is hereby amended as follows. 
 4.1 All references to the
Revolving Agent shall be deemed to refer to Morgan Stanley and its successors and assigns and all references to the Collateral Agent shall be deemed to refer to MS& Co. and its successors and assigns. 
  

 - 4 - 

 SECTION 5. Representations and Warranties. The Borrowers hereby represent and warrants as follows:

 5.1 As of the date hereof, all of the representations and warranties contained in the Credit Agreement and 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.

 5.2 The execution, delivery and performance by the Borrower Representative 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. 
 5.3 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. 
 5.4 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. 
 5.5 The Credit Agreement and each other Loan Document remain in full force and effect. 
 SECTION 6. Conditions Precedent to Effectiveness. This Amendment shall be effective upon the satisfaction of the following: 
 6.1 This Amendment shall have been duly executed and delivered by each of the Borrower Representative and the Required Lenders. 
 6.2 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. 
 6.3 The representations and warranties contained herein
shall be true and correct. 
 6.4 The Borrowers shall have paid the fees contained in the Fee Letter, dated the hereof, and the
Administrative Agent shall have paid such fees to the Term Lenders and the Revolving Lenders entitled thereto. 
  

 - 5 - 

 6.5 The Borrowers shall pay the reasonable fees, costs and expenses incurred by the Agents in connection
with the preparation, execution and delivery of this Amendment, including, without limitation, attorneys’ fees of Sullivan & Cromwell LLP. 
 SECTION 7. Miscellaneous. 
 7.1 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. 
 7.2 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. 
 7.3 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. 
 7.4 GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 7.5 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. 
 7.6 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] 
  

 - 6 - 

 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:	 	Chief Financial Officer
	
	SILICON GRAPHICS FEDERAL, INC.
		
	By:	 	 /s/ Kathy Lanterman

	Name:	 	Kathy Lanterman
	Title:	 	Chief Financial Officer
	
	SILICON GRAPHICS WORLD TRADE CORPORATION
		
	By:	 	 /s/ Kathy Lanterman

	Name:	 	Kathy Lanterman
	Title:	 	Chief Financial Officer

 SIGNATURE PAGE TO THE SECOND 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
	
	COLLATERAL AGENT:
	
	MORGAN STANLEY & CO., INCORPORATED, on behalf of the Secured Creditors
		
	By:	 	 /s/ Gavin Baiera

	Name:	 	Gavin Baiera
	Title:	 	Authorized Signatory

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

 Annex A 
  

													
	 	  	Commitment	  	Pro Rata Share	 
	 	  	Revolver	  	Term	  	Revolver	 	 	Term	 
	 Lenders:
	  			  			  			 		
	 Morgan Stanley Senior Funding, Inc.
	  	$	0	  	$	2,000,000	  	0	%	 	2.35	%
	 Encore Fund, L.P.
	  	$	0	  	$	10,000,000	  	0	%	 	11.76	%
	 Quadrangle Master Funding Ltd.
	  	$	10,000,000	  	$	22,500,000	  	50	%	 	26.47	%
	 Watershed Technology Holdings, LLC
	  	$	0	  	$	22,500,000	  	0	%	 	26.47	%
	 Watershed Capital Institutional Partners, L.P.
	  	$	2,800,000	  	$	0	  	14	%	 	0	%
	 Watershed Capital Partners, L.P.
	  	$	7,200,000	  	$	0	  	36	%	 	0	%
	 The President Fellows Harvard
	  	$	0	  	$	2,365,902	  	0	%	 	2.78	%
	 Wellpoint, Inc.
	  	$	0	  	$	2,660,864	  	0	%	 	3.13	%
	 Grand Central Asset Trust, DES
	  	$	0	  	$	15,000,000	  	0	%	 	17.65	%
	 Pres. & Fellows Harvard
	  	$	0	  	$	3,736,666	  	0	%	 	4.40	%
	 Whippoorwill Associates, Inc.
	  	$	0	  	$	40,483	  	0	%	 	0.05	%
	 Whippoorwill Offshore
	  	$	0	  	$	1,716,549	  	0	%	 	2.02	%
	 Whippoorwill Distressed Opp.
	  	$	0	  	$	2,479,536	  	0	%	 	2.92	%

  

 A-1 

 Annex B 
 FORM OF NOTICE OF BORROWING 
 [MORGAN STANLEY SENIOR FUNDING, INC., 
 as Lead Arranger, Bookrunner, Administrative Agent 
 Revolving Agent and Syndication Agent under 
 the Credit Agreement Referred to below] 
 [MORGAN STANLEY & CO. INCORPORATED 
 as Collateral
Agent under the Credit Agreement 
 referred to below] 
                     ,
20                         
  

			
	Attention:	 	Silicon Graphics, Inc.
		 	 Re:   Silicon Graphics, Inc. (the “Borrower Representative”)

 Reference is made to the Credit Agreement, dated as of October 17, 2006 (as the same may be
amended, restated, supplemented or extended from time to time, including all exhibits and schedules thereto, the “Credit Agreement”), among the Borrowers, the other Credit Parties thereto from time to time, as Guarantors, the
Lenders party thereto from time to time, Morgan Stanley Senior Funding, Inc., as the Administrative Agent, Bookrunner, Lead Arranger, Revolving Agent and Syndication Agent, and Morgan Stanley & Co., Incorporated as Collateral Agent.
Capitalized terms used herein without definition are used as defined in the Credit Agreement. 
 The Borrower Representative hereby gives you
irrevocable notice, pursuant to [Section 1.01(b)][Section 1.03(b)] of the Credit Agreement of its request, on behalf of [            ], for [a Revolving Advance] [a Term
Loan] (the “Proposed Borrowing”), to be made to [            ] with the following terms: 
 1. Revolving Advance: 
  

							
	(A)	 	Principal amount of Revolving Advance	 	  
	  	
				
	(B)	 	Interest rate basis	 	  
	  	
				
	(C)	 	Requested Funding Date (which is a Business Day)	 	  
	  	
				
	(D)	 	(If a LIBOR Rate Loan is requested) Interest Period and the last date thereof	 	  
	  	

  

 A-2 

 [2. Letter of Credit: 
  

							
	(A)	  	Amount of Letter of Credit	 	  
	 	
				
	(B)	  	Beneficiary	 	  
	 	]

 The other terms and conditions of the proposed Letter of Credit are set forth in the accompanying
application. 
 3. Term Loan: 
  

							
	(A)	  	Principal amount of Term Loan	  	  
	  	
				
	(B)	  	Interest rate basis	  	  
	  	
				
	(C)	  	 Requested Funding Date
 (which is a Business
Day)
	  	  
	  	
				
	(D)	  	(If a LIBOR Rate Loan is requested) Interest Period and the last date thereof	  	  
	  	

 The undersigned hereby certifies that the following statements are true on the date hereof, both
before and after giving effect to the Proposed Borrowing and any other Loan to be made on or before the Funding Date: 
 (i)
the representations and warranties of any Credit Party contained in Article V of the Credit Agreement and elsewhere in the Loan Documents are, and will continue to be as of the Funding Date, true and correct in all material respects as
though made on and as of the date hereof and as of the Funding Date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties were true and correct as of such
date; 
 (ii) no Event of Default [(other than, if Minimum
Liquidity is greater than thirty million Dollars ($30,000,000) based upon a Default under Section 9.01 or Section 9.02))]1 has
occurred and is continuing or would result therefrom; 
 (iii) no injunction, writ, restraining order, or other
order of any nature (whether temporary, preliminary or permanent) restricting or prohibiting, directly or indirectly, the 
  

	 1
	 Bracketed language is not applicable for Term Loan Borrowings and should only be
included if there is a Default under Section 9.01 or Section 9.02. 

  

 A-3 

 
extending of such Proposed Borrowing has been issued and remains in force by any Governmental Authority against any Borrower, any Agent, or any Participating
Lender, and such Proposed Borrowing shall not violate any requirement of applicable law; 
 (iv) since March 31, 2006, no
event or condition has occurred which could reasonably be expected to have a Material Adverse Effect; 
 [(v) after giving effect to the Proposed Borrowing, the Aggregate Exposure does not
exceed the Total Revolving Commitment;]2 and 
 (vi) prior to and after giving effect to the Proposed Borrowing (or the incurrence of any Letter of Credit Obligation), the Parent and its Subsidiaries on a consolidated basis shall be in compliance with the financial
covenants as set forth for the applicable period in Article IX of the Credit Agreement (other than, if Minimum Liquidity is greater than thirty million Dollars ($30,000,000), Section 9.01 or Section 9.02)). 

 

			
	 SILICON GRAPHICS, INC.,
 as Borrower
Representative

		
	By:	 	  

	Name:	 	
	Title:	 	

	 2
	 Included for Revolving Advances only. 

  

 A-4 

 Annex C 
 Form of Compliance Certificate 
 The undersigned hereby certifies solely in his capacity as the [Chief Financial
Officer]/[Controller]/[Treasurer] of Silicon Graphics, Inc. as follows: 
  

	1.	I am the [Chief Financial Officer]/[Controller]/[Treasurer] of SILICON GRAPHICS, INC. 

 2. I have reviewed the terms and conditions of (i) that certain Senior Secured Credit Agreement, dated as of October 17, 2006 (as it may be
amended, restated, modified, supplemented, or extended from time to time, including all exhibits and schedules thereto, the “Credit Agreement”), by and among SILICON GRAPHICS, INC. (the “Parent”), together with the
Subsidiaries that are signatories thereto (each a “Borrower” and together, the “Borrowers”), the other Credit Parties party thereto from time to time, as Guarantors, the Lenders party thereto from time to time,
Morgan Stanley Senior Funding, Inc., as Administrative Agent, Bookrunner and Lead Arranger, Revolving Agent, and Syndication Agent, and Morgan Stanley & Co., Incorporated as Collateral Agent, and (ii) each of the other Loan Documents,
and I have made, or have caused to be made under my supervision, a review in reasonable detail of the transactions and financial condition of the Parent and its Subsidiaries during the accounting period covered by the attached financial statements

 3. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Credit Agreement. 

4. The attached financial statements for the [Fiscal Year][Fiscal Quarter] ended [mm/dd/yy] are prepared in accordance with GAAP. Attached as
Annex I is a calculation of compliance with [Section 8.02, Section 8.04, Section 8.07] and Article IX of the Credit Agreement, including a reconciliation of the applicable items to the financial
statements being delivered herewith. 
 The foregoing certifications, together with the financial statements delivered with this Certificate
in support hereof, are made and delivered on [mm/dd/yy] pursuant to Section 6.01(d) of the Credit Agreement. 
  

			
	 SILICON GRAPHICS, INC.

		
	 By:
	 	  

	 Title:
	 	

  

 A-5 

 SCHEDULE 1 
 ALL AMOUNTS CONTAINED HEREIN ARE WITHOUT DUPLICATION AND, UNLESS OTHERWISE INDICATED, ARE CALCULATED FOR SILICON GRAPHICS, INC. AND ITS SUBSIDIARIES ON A CONSOLIDATED BASIS. 
 INDEBTEDNESS 
 (Section 8.02) 
  

			
	 In Compliance
	  	Yes/No

 ASSET DISPOSITIONS, ETC. 
 (Section 8.04) 
  

			
	 In Compliance
	  	Yes/No

 INVESTMENTS 
 (Section 8.07) 
  

			
	 In Compliance
	  	Yes/No

  

 A-6 

 TOTAL LEVERAGE RATIO 
 (Section 9.01) 
  

					
	[The ratio of:	  		  	
			
		  	(1) Debt for Borrowed Money	  	$                        
			
	TO	  		  	
			
		  	(2) Parent’s Consolidated EBITDA for the four Fiscal Quarter period then ending (using the calculations below)	  	$                        
		
	 Total Leverage Ratio:
	  	                    x
		
	 Applicable Total Leverage Ratio from Chart below:
	  	                    x
		
	 In Compliance
	  	Yes/No]

 Total Leverage Ratio: 
  

					
	 Measurement Period Ending
	 	 Ratio
	 	 
	 March 27, 2009
	 	3.90x	 	
	 June 26, 2009
	 	3.40x	 	
	 September 25, 2009
	 	2.63x	 	
	 December 25, 2009
	 	2.33x	 	
	 March 26, 2010
	 	2.33x	 	
	 June 25, 2010
	 	2.33x	 	
	 September 24, 2010
	 	2.33x	 	
	 December 24, 2010
	 	2.33x	 	
	 March 25, 2011
	 	2.33x	 	
	 June 24, 2011
	 	2.33x	 	
	 September 30, 2011
	 	2.33x	 	

  

 A-7 

 MINIMUM LEVELS OF CONSOLIDATED EBITDA 
 (Section 9.02) 
  

					
	[Consolidated EBITDA for each four Fiscal Quarter period ending on or after March 27, 2009 and on or before June 26, 2009 is:	 		 	
			
	the GAAP operating income of such Person for such period	 	$	 	
		 		 	 
			
	Plus: depreciation expense	 	$	 	
		 		 	 
			
	Plus: amortization expense	 	$	 	
		 		 	 
			
	Plus or Minus: fresh start accounting adjustment	 	$	 	
		 		 	 
			
	Plus or Minus: 97-2 accounting adjustment	 	$	 	
		 		 	 
			
	Applicable minimum permitted Consolidated EBITDA from the chart below	 	$	 	
		 		 	 
			
	Consolidated EBITDA	 	$	 	
		 		 	 
			
	Applicable minimum permitted Consolidated EBITDA from the chart below	 	$	 	
		 		 	 
		
	In Compliance	 	Yes/No]
			
	[Consolidated EBITDA for each four Fiscal Quarter period ending after June 26, 2009 is:	 		 	
			
	the GAAP operating income of such Person for such period	 	$	 	
		 		 	 
			
	Plus: depreciation expense	 	$	 	
		 		 	 
			
	Plus: amortization expense	 	$	 	
		 		 	 
			
	Applicable minimum permitted Consolidated EBITDA from the chart below	 	$	 	
		 		 	 
			
	Consolidated EBITDA	 	$	 	
		 		 	 
			
	Applicable minimum permitted Consolidated EBITDA from the chart below	 	$	 	
		 		 	 
		
	In Compliance	 	Yes/No]

  

 A-8 

 Minimum Permitted Consolidated EBITDA: 
  

				
	 Measurement Period
	  	Consolidated EBITDA
	 Twelve-month period ending March 27, 2009
	  	$	26,900,000
	 Twelve-month period ending June 26, 2009
	  	$	30,900,000
	 Twelve-month period ending September 25, 2009
	  	$	40,000,000
	 Twelve-month period ending December 25, 2009
	  	$	45,000,000
	 Twelve-month period ending March 26, 2010
	  	$	45,000,000
	 Twelve-month period ending June 25, 2010
	  	$	45,000,000
	 Twelve-month period ending September 24, 2010
	  	$	45,000,000
	 Twelve-month period ending December 24, 2010
	  	$	45,000,000
	 Twelve-month period ending March 25, 2011
	  	$	45,000,000
	 Twelve-month period ending June 24, 2011
	  	$	45,000,000
	 Twelve-month period ending September 30, 2011
	  	$	45,000,000
	 Twelve-month period ending December 30, 2011
	  	$	45,000,000

  

 A-9 

 CAPITAL EXPENDITURES 
 (Section 9.04) 
 Aggregate Capital Expenditures made by any of the Credit Parties (excluding Capital Expenditures
made with the Net Cash Proceeds of a Disposition, to the extent such Net Cash Proceeds are not required to be applied to repay Term Loans) for the Fiscal Year ending on June 29, 2007 
  

			
	Actual Capital Expenditures	  	$                        
		
	Permitted Capital Expenditures for the Fiscal Year ending on June 29, 2007	  	[$20,000,000]
		
	In Compliance	  	Yes/No

 Aggregate Capital Expenditures made by any of the Credit Parties (excluding Capital Expenditures made with the Net
Cash Proceeds of a Disposition, to the extent such Net Cash Proceeds are not required to be applied to repay Term Loans) for the Fiscal Year ending on June 27, 2008 
  

			
	Actual Capital Expenditures	  	$                        
		
	Permitted Capital Expenditures in any Fiscal Year ending on June 27, 2008	  	[$15,000,000]
		
	Permitted carry over of unused amounts from the first Fiscal Year (to be used only in the next Fiscal Year)	  	[$5,000,000]
		
	In Compliance	  	Yes/No

 Aggregate Capital Expenditures made by any of the Credit Parties (excluding Capital Expenditures made with the Net
Cash Proceeds of a Disposition, to the extent such Net Cash Proceeds are not required to be applied to repay Term Loans) for the Fiscal Year ending on June 26, 2009 
  

					
	  
	Actual Capital Expenditures	  		  	$                        
			
	Permitted Capital Expenditures in any Fiscal Year ending on                 	  		  	[$15,000,000]
			
	Permitted carry over of unused amounts from subsequent Fiscal Years	  		  	[$3,000,000]
			
	In Compliance	  		  	Yes/No

  

 A-10

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