Document:

Exhibit 10.1

AMENDMENT NUMBER THIRTEEN TO AMENDED AND RESTATED 

LOAN AND SECURITY AGREEMENT

THIS
AMENDMENT NUMBER THIRTEEN TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”),
dated as of March 7, 2005, is entered into between and among the lenders
identified on the signature pages hereof (such lenders, together with their
respective successors and assigns, are referred to hereinafter each
individually as a “Lender” and collectively as the “Lenders”), WELLS FARGO FOOTHILL,
INC., a California
corporation, as the arranger and administrative agent for the Lenders (“Agent”
and together with the Lenders, collectively, the “Lender Group”), SILICON GRAPHICS, INC., a Delaware corporation (“Parent”),
and each of Parent’s Subsidiaries identified on the signature pages hereof
(such Subsidiaries, together with Parent, are referred to hereinafter each
individually as a “Borrower,” and individually and collectively, jointly
and severally, as “Borrowers”), in light of the following: 

W I T N E S S E T H

WHEREAS,
Borrowers and the Lender Group are parties to that certain Amended and Restated
Loan and Security Agreement, dated as of September 20, 2002 (as amended, restated,
supplemented, or modified from time to time, the “Loan Agreement”); 

WHEREAS,
Borrowers have requested that the Lender Group agree to amendments to the Loan
Agreement to provide for added credit availability in the Borrowing Base based
on Intellectual Property and to delete Section 4.7 of the Loan Agreement
pertaining to an Intercreditor Agreement with respect to certain IP Loans (as
defined and provided in that certain Amendment Number One to Loan and Security
Agreement among the parties hereto dated as of April 11, 2003); 

WHEREAS,
subject to the satisfaction of the conditions set forth herein, the Lender
Group is willing so to consent to the amendment of the Loan Agreement. 

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

1.            DEFINITIONS.

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

2.            AMENDMENTS
TO LOAN AGREEMENT. 

(a)          Section 1.1 of the Loan
Agreement is hereby amended to delete the definitions of “Intercreditor
Agreement,” “IP Lender,” and “IP Loans.”

(b)          Section 2.1(a) of the Loan
Agreement is hereby amended and restated in its entirety as follows: 

“Subject
to the terms and conditions of this Agreement, and during the term of

1

 

this Agreement, each Lender
with a Commitment agrees (severally, not jointly or jointly and severally) to
make advances to Borrowers in an amount at any one time outstanding not to
exceed such Lender’s Pro Rata Share of an amount equal to the lesser of (i) the Maximum
Revolver Amount less the Letter of
Credit Usage, or (ii) the Borrowing Base less
the Letter of Credit Usage.  For purposes of this Agreement, ‘Borrowing
Base,’ as of any date of determination, shall mean the result of: 

“(w)      the
lesser of

“(i)        85% of Eligible Accounts, less the amount, if any, of the Dilution
Reserve; provided that in no event shall the amount of credit availability
created by: 

“(A)     Eligible Canadian Accounts exceed $2,000,000, 

“(B)     Eligible Service Accounts exceed $15,000,000, or 

“(C)     Eligible SGI Solutions Finance Accounts exceed $3,000,000, and

“(ii)        an amount equal to Borrowers’ Collections with respect to Accounts
for the immediately preceding 45 day period, plus

“(x)        the lowest of: (i) 30% of the value of Eligible inventory,
(ii) 80% of the Net Orderly Liquidation Value of the book value of Eligible
Inventory, and (iii) $15,000,000; provided, however, that the limitation set
forth in clause (ii) shall not be applicable during the period beginning on
February 24, 2005 and continuing through April 11, 2005, plus

“(y)       the lower of: (i) 100% of the value of Intellectual Property,
and (ii) $10,000,000, minus 

“(z)        the aggregate amount of reserves, if any, established by
Agent under Section 2.1(b) and the Lender Group Bank Products Reserve.” 

(c)          The provisions of Section 4.7 of
the Loan Agreement, entitled “Intercreditor Agreement,” are hereby deleted and
are replaced with the editorial “[Intentionally Omitted].” 

3.            MODIFICATION FEE. 

Borrowers
shall pay Agent a non-refundable fee of $250,000 (the “Modification Fee”).
The Modification Fee is earned as of the date hereof but is due and payable no
later than April 13, 2005.  If Borrowers
have not paid Agent the Modification Fee prior to April 13, 2005, then on or
after April 13, 2005, Agent shall be authorized to charge Borrowers’ Loan
Account the Modification Fee. The Modification fee is in addition to any and
all other accrued or deferred fees owing by Borrowers under the Loan Agreement.
Notwithstanding the foregoing, if Borrowers extend the credit facility provided
by the Loan Agreement for a period of no less than 

 

2

 

two (2) years on terms
satisfactory to Borrowers and the Lender Group (the “Extension”), then the
Modification Fee shall be waived. 

4.            CONDITIONS PRECEDENT TO THIS AMENDMENT. 

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

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

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

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

5.            CONSTRUCTION. 

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

6.            ENTIRE AMENDMENT; EFFECT OF AMENDMENT. 

This
Amendment, and terms and provisions hereof, constitute the entire agreement
among the parties pertaining to the modification of the Loan Agreement as
herein provided and supersede any and all prior or contemporaneous agreements,
promises, and amendments relating to the subject matter hereof.  Except for the amendment to the Loan Agreement
expressly set forth in Section 2 hereof, the Loan Agreement and other
Loan Documents shall remain unchanged and in full force and effect.  To the extent any terms or provisions of this
Amendment conflict with those of the Loan Agreement or other Loan Documents,
the terms and provisions of this Amendment shall control.  This Amendment is a Loan Document. 

7.            COUNTERPARTS; TELEFACSIMILE EXECUTION. 

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

 

3

 

8.            MISCELLANEOUS. 

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

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

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

	
  WELLS FARGO FOOTHILL, INC.,

  
	
  a California corporation, as Agent and as a Lender

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Thomas P. Shughrue

  
	
  Name: 

  	
  Thomas P. Shughrue

  
	
  Title: 

  	
  Vice President

  
	
   

  	
   

  
	
  SILICON GRAPHICS, INC.,

  
	
  a Delaware Corporation

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Jean Furter

  
	
  Name: 

  	
  Jean Furter

  
	
  Title: 

  	
  Vice President Treasurer

  
	
   

  	
   

  
	
  SILICON GRAPHICS FEDERAL, INC.,

  
	
  a Delaware corporation

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Jeff Zellmer

  
	
  Name: 

  	
  Jeff Zellmer

  
	
  Title: 

  	
  Vice President

  

 

4EXHIBIT
10.1(e)

 

THIS OPTION
AGREEMENT MAY NOT BE TRANSFERRED EXCEPT BY WILL OR UNDER THE LAWS OF
DESCENT AND DISTRIBUTION OR PURSUANT TO A QUALIFIED DOMESTIC RELATIONS ORDER.

 

BSQUARE CORPORATION

 

AMENDED
AND RESTATED STOCK OPTION PLAN

 

 

NON-QUALIFIED STOCK OPTION
AGREEMENT

 

THIS AGREEMENT is entered into as of  %%OPTION_DATE,’MM/DD/YYYY’%-%  (the “Date
of Grant”) between BSQUARE CORPORATION, a Washington corporation (the “Company”),
and %%FIRST_NAME%-% %%LAST_NAME%-% (the “Optionee”).

 

RECITALS:

 

A.     The Company has approved and adopted
the Stock Option Plan (the “Plan”), pursuant to which the Plan
Administrator is authorized to grant to employees of the Company or any Related
Corporation (“Employees”) and certain other designated individuals options to
purchase shares of the Company’s common stock, no par value (the “Common Stock”);

 

B.     The Optionee is an Employee;

 

C.     The options granted hereunder are
intended to qualify as Non-Qualified Stock Options under Section 422 of
the Internal Revenue Code of 1986, as amended (the “Code”);

 

D.     Capitalized terms used herein and not
otherwise defined shall have the definitions given to them in the Plan.

 

 

AGREEMENT:

 

NOW, THEREFORE, the Company hereby grants to
the Optionee the option to purchase, upon the terms and conditions set forth
herein and in the Plan, %%TOTAL_SHARES_GRANTED,’999,999,999’%-% shares of
Common Stock (the “Option”).

 

1.                                       EXERCISE
PRICE.

 

The exercise
price for the Option shall be %%OPTION_PRICE,’$999,999,999.9999’%-% per
share.  If the Optionee is a Ten Percent
Shareholder of the Company, then the per share exercise price is not less than
110 percent of the Fair Market Value of the Common Stock on the Date of Grant.

 

2.                                       VESTING
SCHEDULE.

 

No Option shall be exercisable until it has
vested.  The Option shall be vested
according to the following schedule:

 

	
  Shares

  	
   

  	
  Vest Date

  	
   

  	
  Expiration Date

  	
   

  
	
  %%SHARES_PERIOD1,’999,999,999’%-%

  	
   

  	
  %%VEST_DATE_PERIOD1,’MM/DD/YYYY’%-%

  	
   

  	
  %%EXPIRE_DATE_PERIOD1,’MM/DD/YYYY’%-%

  	
   

  
	
  %%SHARES_PERIOD2,’999,999,999’%-%

  	
   

  	
  %%VEST_DATE_PERIOD2,’MM/DD/YYYY’%-%

  	
   

  	
  %%EXPIRE_DATE_PERIOD1,’MM/DD/YYYY’%-%

  	
   

  
	
  %%SHARES_PERIOD3,’999,999,999’%-%

  	
   

  	
  %%VEST_DATE_PERIOD3,’MM/DD/YYYY’%-%

  	
   

  	
  %%EXPIRE_DATE_PERIOD1,’MM/DD/YYYY’%-%

  	
   

  
	
  %%SHARES_PERIOD4,’999,999,999’%-%

  	
   

  	
  %%VEST_DATE_PERIOD4,’MM/DD/YYYY’%-%

  	
   

  	
  %%EXPIRE_DATE_PERIOD1,’MM/DD/YYYY’%-%

  	
   

  

 

 

3.                                       TERM OF
OPTIONS

 

All Options granted under this Agreement
shall expire ten (10) years from the Date of Grant.

 

4.                                       OPTION NOT
TRANSFERABLE.

 

The Option may not be transferred, assigned,
pledged or hypothecated in any manner (whether by operation of law or
otherwise) other than by will, by the applicable laws of descent and
distribution or pursuant to any qualified domestic relations order, and shall
not be subject to execution, attachment or similar process.  Upon any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of the Option or of any right or privilege
conferred hereby contrary to the provisions hereof, or upon the sale or levy or
any attachment or similar process upon the rights and privileges conferred
hereby, the Option shall thereupon terminate and become null and void.

 

5.                                       INVESTMENT
INTENT.

 

By accepting the Option, the Optionee
represents and agrees, for the Optionee and all persons who acquire rights in
the Option through the Optionee, that none of the shares of Common Stock
purchased upon exercise of the Option will be distributed in violation of
applicable federal and state laws and regulations.  If requested by the Company, the Optionee
shall furnish evidence satisfactory to the Company (including a written and
signed representation letter and a consent to be bound by all transfer
restrictions imposed by applicable law, legend condition or otherwise) to that
effect, before delivery of the purchased shares of Common Stock.

 

 

6.                                       TERMINATION
OF OPTION.

 

Any vested Option granted to an Optionee
shall terminate, to the extent not previously exercised, upon the occurrence of
the first of the following events:

 

(a)                                  as designated by (x)
the Board in accordance with Section 6(n) of the Plan or (y) the
Committee or the Executive Officer in accordance with Section 6(d) of
the Plan or, in the case of an Option granted to a Ten Percent Shareholder (as
defined in the Plan), five (5) years from the Date of Grant;

 

(b)                                 the date of the Optionee’s
termination of employment or contractual relationship with the Company or any
Related Corporation for cause (as determined in the sole discretion of the
Committee);

 

(c)                                  the expiration of
ninety (90) days from the date of the Optionee’s termination of employment or
contractual relationship with the Company or any Related Corporation for any
reason whatsoever other than cause, death or Disability unless the exercise
period is extended by the Committee a date not later than the expiration date
of the Option;

 

(d)                                 the expiration of one
year from (A) the date of death of the Optionee or (B) cessation of
the Optionee’s employment or contractual relationship by reason of Disability
unless the exercise period is extended by the Committee until a date not later
than the expiration date of the Option; or

 

(e)                                  any other event
specified by the Committee at the time of grant of the Option.

 

If an Optionee’s employment or contractual
relationship is terminated by death, any Option granted to the Optionee shall be
exercisable only by the person or persons to whom such Optionee’s rights under
such Option shall pass by the Optionee’s will or by the laws of descent and
distribution of the state or county of the Optionee’s domicile at the time of
death.  The Committee shall determine
whether an Optionee has incurred a Disability on the basis of medical evidence
reasonably acceptable to the Committee. 
Upon making a determination of Disability, the Committee shall, for
purposes of the Plan, determine the date of an Optionee’s termination of
employment or contractual relationship.

 

 

Unless accelerated in accordance with Section 6(f) of
the Plan, any unvested Option granted to an Optionee shall terminate
immediately upon termination of employment of the Optionee by the Company for
any reason whatsoever, including death or Disability.  For purposes of the Plan, transfer of
employment between or among the Company and/or any Related Corporation shall
not be deemed to constitute a termination of employment with the Company or any
Related Corporation.  For purposes of
this subsection with respect to Incentive Stock Options, employment shall
be deemed to continue while the Optionee is on military leave, sick leave or
other bona fide leave of absence (as determined by the Committee). The
foregoing notwithstanding, employment shall not be deemed to continue beyond
the first ninety (90) days of such leave, unless the Optionee’s re-employment
rights are guaranteed by statute or by contract.

 

7.                                       STOCK.

 

In the case of any stock split, stock
dividend or like change in the nature of shares granted by this Agreement, the
number of shares and option price shall be proportionately adjusted as set
forth in Section 6(m) of the Plan.

 

8.                                       EXERCISE OF
OPTION.

 

Each exercise of the Option shall be by means
of delivery of a Notice of Election to Exercise (which may be in the form
attached hereto as Exhibit A) to the Secretary of the Company at
its principal executive office, specifying the number of shares of Common Stock
to be purchased and accompanied by payment in cash, or by certified or cashier’s
check payable to the order of the Company, of the full exercise price for the
Common Stock to be purchased.  Upon
approval of the Committee, the Optionee may pay for all or any portion of the
exercise price by (i) delivery of already held shares of Common Stock, (ii) having
shares withheld from the amount of shares of Common Stock to be received by the
Optionee upon exercise of the Option or (iii) execution and delivery of
appropriate loan documents approved by the Committee.  The shares of Common Stock received or
withheld by the Company as payment shall have a Fair Market Value equal to or
greater than the aggregate exercise price to be paid by the Optionee upon such
exercise.  The Optionee agrees to also
pay to the Company the amount necessary for the Company to satisfy its federal,
state, local and foreign withholding obligations.

 

9.                                       OPTIONEE
ACKNOWLEDGMENTS.

 

The Optionee acknowledges that he or she has
read and understands the terms of this Agreement and the Plan, and that:

 

(a)                                  The issuance of
shares of Common Stock pursuant to the exercise of the Option, and any resale
of the shares of

 

 

Common Stock, may only be effected in compliance with applicable state
and federal laws and regulations and that the Optionee may be required to
execute and deliver representations and warranties to that effect prior to the
exercise of any portion of the Option;

 

(b)                                 The Optionee is not
entitled to any rights as a shareholder with respect to any shares of Common Stock
issuable hereunder until the Optionee becomes a shareholder of record;

 

(c)                                  The shares of Common
Stock subject hereto may be adjusted in the event of certain changes in the
capital structure of the Company or for any other reason required or permitted
by the Plan;

 

(d)                                 As a condition to the
exercise of the Option, the Optionee may be required to make such arrangements
as the Committee requires for the satisfaction of any federal, state or local
withholding tax obligations; and

 

(e)                                  This Agreement does
not constitute an employment agreement nor does it entitle the Optionee to any
specific employment or to employment for a period of time and that the Optionee’s
continued employment, if any, with the Company shall be at will and is subject
to termination in accordance with the Company’s prevailing policies and any
other agreement between the Optionee and the Company.

 

10.                                 PROFESSIONAL ADVICE.
The acceptance and exercise of the Option and the sale of Common Stock issued
pursuant to the exercise of the Option may have consequences under federal and
state tax and securities laws which may vary depending on the individual
circumstances of the Optionee. 
Accordingly, the Optionee acknowledges that the Optionee has been advised
to consult his or her personal legal and tax advisor in connection with this
Agreement and the Optionee’s dealings with respect to the Option or the Common
Stock.

 

11.                                 NOTICES.  Any notice required or permitted to be made
or given hereunder shall be mailed or delivered personally to the addresses set
forth below, or as changed from time to time by written notice to the other:

 

	
   

  	
   

  	
  Company:

  	
  BSQUARE CORPORATION

  
	
   

  	
   

  	
   

  	
  3150 139th Avenue SE

  
	
   

  	
   

  	
   

  	
  Suite 500

  

 

 

	
   

  	
   

  	
   

  	
  Bellevue, Washington 98005

  
	
   

  	
   

  	
   

  	
  Attention: Secretary

  

 

Optionee:

 

%%FIRST_NAME%-% %%LAST_NAME%-%

%%ADDRESS_LINE_1%-%

%%ADDRESS_LINE_2%-%

%%CITY%-%, %%STATE%-% %%ZIPCODE%-%

 

12.                                 AGREEMENT SUBJECT
TO PLAN.  The Option and this
Agreement evidencing and confirming the same are subject to the terms and
conditions set forth in the Plan and in any amendments to the Plan existing now
or in the future, which terms and conditions are incorporated herein by
reference.  A copy of the Plan previously
has been delivered to the Optionee. 
Should any conflict exist between the provisions of the Plan and those of
this Agreement, those of the Plan shall govern and control.  This Agreement and the Plan comprise the
entire understanding between the Company and the Optionee with respect to the
Option and shall be construed and enforced under the laws of the State of Washington.

 

IN WITNESS WHEREOF, clicking the “Accept”
button along with the electronic signature of the Company’s representative
below, you and the Company agree that this Option is granted under and governed
by the terms and conditions of the Plan and this Option Agreement.

 

 

	
  OPTIONEE

  	
  BSQUARE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Brian T. Crowley, CEO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  % %FIRST_NAME%-% %%LAST_NAME%-%

  	
   

  	
   

  	
   

  	
   

  
									

 

 

Exhibit A

 

 

Notice of
Election to Exercise

 

 

This Notice of Election to Exercise shall
constitute proper notice pursuant to Section 6(h) of the BSQUARE
CORPORATION Amended and Restated Stock Option Plan (the “Plan”) and Section 8
of that certain Non-Qualified Stock Option Agreement (the “Agreement”) dated as
of                                           
between BSQUARE CORPORATION (the “Company”) and the undersigned.

 

The undersigned hereby elects to exercise the
Optionee’s option to purchase                               
shares of the Company’s common stock, no par value, at a purchase price of $                      
per share, for aggregate consideration of $                      ,
on the terms and conditions set forth in the Agreement and the Plan.  Such aggregate consideration, in the form
specified in Section 7 of the Agreement, accompanies this Notice.

 

The undersigned has executed this Notice this
         day of                                 ,
            .

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Name Typed or Printed

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature

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