Document:

Exhibit 10.32

AMENDMENT
NUMBER NINE TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

THIS AMENDMENT NUMBER NINE TO
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of September 1,
2004, 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 Agent revise the concentration limit for a certain account
debtor and that the Loan Agreement be amended to provide for a reset of certain
financial covenants; and

WHEREAS, subject to the
satisfaction of the conditions set forth herein, the Lender Group is willing to
so 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 to amend the Loan Agreement 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)           Clause (i) of the definition of “Eligible
Domestic Accounts” in Section 1.1 of the Loan Agreement is hereby
amended by restating it in its entirety, as follows:

“(i)          Accounts with
respect to an Account Debtor whose total obligations owing to Borrower exceed
10% of all Eligible Accounts, to the extent of the obligations owing by such
Account Debtor in excess of such percentage; provided, however, if Accounts
with respect to which the Account Debtor is (x) General Electric Corporation
exceed 35% (or such other percentage as Agent may determine in its sole discretion)
of all Eligible Accounts in the aggregate, to the extent of the obligations
owing by such Account Debtor in excess of such percentage, (y) Northrop
Grumman, NEC Corporation, General Services Administration, Raytheon Company,
Lockheed Martin or the National Aeronautics and Space Administration (NASA)
exceed 20% (or such other percentage as 

 

Agent may determine in its sole discretion) of all Eligible Accounts in
the aggregate, to the extent of the obligations owing by such Account Debtor in
excess of such percentage, or (z) BAE Systems or Maryland Procurement exceed
15% (or such other percentage as Agent may determine in its sole discretion) of
all Eligible Accounts in the aggregate, to the extent of the obligations owing
by such Account Debtor in excess of such percentage,

(b)           Section 7.20(a) of the Loan
Agreement is hereby amended and restated in its entirety as follows:

“Minimum EBITDA. 
EBITDA, measured on a fiscal quarter-end basis, of not less than the
required amount set forth in the following table for the applicable period set
forth opposite thereto:

 

	
  Applicable Amount

  	
   

  	
  Applicable
  Period

  
	
  $3,718,000

  	
   

  	
  For the 3 month period ending September 24, 2004

  
	
  $13,627,000

  	
   

  	
  For the 3 month period ending December 24, 2004

  
	
  $11,799,000

  	
   

  	
  For the 3 month period ending March 25, 2005

  

 

(c)  
        Section 7.20(c) of
the Loan Agreement is hereby deleted in its entirety and replaced by the
following:

“Maximum Capital Expenditures.  Make capital expenditures in
excess of $23,529,000 during the 2005 fiscal year.”

3.             CONDITIONS PRECEDENT TO THIS
AMENDMENT.  The satisfaction of each of the following
shall constitute conditions precedent to the effectiveness of this Amendment
and each and every provision hereof:

(a)           The representations and warranties in
the 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 Borrower or the Lender Group.

 

4.             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.

5.             ENTIRE AMENDMENT; EFFECT OF AMENDMENT.  This Amendment, and terms and provisions
hereof, constitute the entire agreement among the parties pertaining to the
subject matter hereof and supersedes any and all prior or contemporaneous
amendments relating to the subject matter hereof.  Except for the amendments 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.

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

7.             MISCELLANEOUS.

(a)           Upon
the effectiveness of this Amendment, each reference in the 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.
  Shagrue

  
	
   

  	
  Name:

  	
  Thomas P.
  Shagrue

  
	
   

  	
  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/ Jeffrey V.
  Zellmer

  
	
   

  	
  Name:

  	
  Jeffrey V.
  Zellmer

  
	
   

  	
  Title:

  	
  Vice PresidentExhibit
10.33

 

Confidential

 

 

July 1, 2001

 

Stephen W. Coggins

 

Dear Stephen

 

We are delighted to formally offer you the position of SVP Europe,
Middle East and Africa, and to confirm the terms and conditions of your
employment with us.

 

Statement of terms and conditions of employment

 

	
  Job Title

  	
  Senior Vice President EMEA

  
	
   

  	
   

  
	
  Reporting
  to

  	
  Hal Covert and Warren
  Pratt

  
	
   

  	
   

  
	
  Start
  Date

  	
  To be determined

  
	
   

  	
   

  
	
  Job
  Location

  	
  You will be based at our
  Theale office and will be required to travel as needed by your job

  
	
   

  	
   

  
	
  Remuneration

  	
  Subject to achievement of
  targets, your annual OTE will be L391,000 made up as follows;

  
	
   

  	
   

  
	 
	
  Basic pay:

  	
   

  	
  L230,000

  	
   

  	 

	 
	
  Local variable:

  	
   

  	
  115,000

  	
   

  	 

	 
	
  Corp. Bonus

  	
   

  	
  46,000

  	
   

  	 

	 
	
  Total

  	
   

  	
  L391,000

  	
   

  	 

	
   

  	
   

  
	
   

  	
  Your remuneration will be reviewed annually on 1st July.

  
	
   

  	
   

  
	
   

  	
  We will pay you monthly in arrears, around the 25th of the
  month, by direct bank transfer.

  
	
   

  	
   

  
	
  Stock
  Options

  	
  Subject to approval by the
  Board of Directors you will be recommended for a joining grant of 150,000
  shares. These will vest 20% after 10 months employment and 2% per month
  thereafter. Formal documentation on this option grant will follow after you
  have joined.

  

 

 

Your employment benefits

 

	
  Company car

  	
  You will be eligible for a
  lease company car, up to a maximum lease value of L1000 per month. Company
  cars come with road tax, insurance, accident, breakdown and maintenance cover
  and may be driven by you and one other nominated driver over 25.
  Alternatively, you may take a cash option of LI200 per month. For full
  details see the attached Silicon Graphics company car guide.

  
	
   

  	
   

  
	
  Paid Holidays

  	
  The Silicon Graphics Ltd
  paid holiday entitlement is 22 working days per calendar year, in addition to
  bank holidays. This rises to 25 days in your 5th year and 26 days
  from your 10th year. Holidays must be agreed with your manager,
  and you may carry a maximum of 10 days over into the next calendar year. Your
  holiday entitlement for the remainder of 2001 will be pro-rated depending on
  your start date.

  
	
   

  	
   

  
	
  Pension

  	
  Silicon Graphics UK
  operates a choice of Group Pension Schemes. Membership is optional and
  individual personal Pension arrangements are provided by either Scottish
  Equitable, Standard Life or Skandia. However, if you already have a personal
  pension plan with another main commercial provider it may be possible to
  continue with it.

  
	
   

  	
   

  
	
   

  	
  You may make personal
  contributions to your plan from your start date. SGI will contribute 6% of
  your gross pensionable salary to the scheme after 6 months service, so long
  as you contribute at least 4% of your gross pensionable salary. You may make
  further contributions if you wish, up to Inland Revenue limits. The SGI
  pension scheme is not contracted out of the state scheme, but you may choose
  to contract out individually if you wish. Pension payments are made directly
  from payroll and our retirement age is 60.

  
	
   

  	
   

  
	
  Life Assurance

  	
  You will be automatically
  covered by the Silicon Graphics Ltd life assurance policy which will pay up
  to eight times your gross basic salary to your nominated dependents should
  you die whilst employed by the Company. Four times your salary will be paid
  as a lump sum (subject to Inland Revenue limits) and the rest as a
  dependents’ pension. Business Travel Accident is also provided. This means
  that should you die whilst traveling on SGI business or travelling between
  SGI facilities, you are covered for an additional 3 times your OTE.

  

 

 

	
  Sick pay & permanent

  	
  If you arc unable to work
  due to sickness or accident, you will be paid full basic salary for up to 13
  weeks. You will then automatically be covered by the Silicon Graphics Ltd
  Permanent Health Insurance, which guarantees an income of approximately 75%
  of your gross basic salary, including statutory benefits, until you are fit
  enough to return to work, or until you retire. This income is taxable in the
  normal way.

  
	
   

  	
   

  
	
  Health insurance

  	
  Silicon Graphics Ltd will
  provide BUPA private medical insurance for you, your partner and unmarried
  children under 21. The medical insurance covers the costs of most medical and
  hospital treatment required by referral from a GP, and our scheme is in band
  B.  BUPA cover is taxable and
  therefore an optional benefit. If you decide to take the cover you will be
  taxed on your membership premiums at your marginal tax rate.

  
	
   

  	
   

  
	
  Travel Insurance

  	
  Personal and Business International
  Travel insurance is provided by Home and Overseas Travel.  Cover can be provided for both you and
  your family. If you chose to have cover for your family you will be taxed on
  the family membership portion of the premium at your marginal tax rate. Your
  own cover is  not taxable.

  
	
   

  	
   

  
	
  ESPP

  	
  SGI has a worldwide
  Employee Share Purchase Scheme, (ESPP) which allows you to buy SGI shares at
  a 15% discount from the market rate. Details of this plan can be provided to
  you.

  
	
   

  	
   

  
	
  Employee assistance programme

  	
  SGI provides employees and their families with
  access to a free and
  confidential personal counseling and advisory service to help with any home
  or work related problems.

  
	
   

  	
   

  
	
  Hours of
  Work

  	
  Normal office hours are 09
  00 - 17 30, Monday to Friday with one hour for lunch. You will be expected to
  work such hours as are reasonably necessary to meet your objectives.

  
	
   

  	
   

  
	
  Health
  & safety

  	
  You will be responsible
  for working safely and responsibly, and for looking after the health and
  safety of yourself and others at work.

  
	
   

  	
   

  
	
  Security

  	
  Confidential company
  information obtained as a result of your employment may not be disclosed or
  discussed outside the office, whether during or after your employment with us
  and you should keep confidential documents secure during your work. You may
  not work for any other company or person, which conflicts in any

  

 

 

	
   

  	
  way with your work or
  duties at SGI. You are required to sign and abide by the attached Employee
  Security Agreement.

  
	
   

  	
   

  
	
  Conduct

  	
  SGI disciplinary and
  grievance procedures are in our employee handbook. Criminal activity, gross
  breach of company rules, major disruption to customer relationships and
  serious incapability through alcohol or drug abuse are all regarded as gross
  misconduct.

  
	
   

  	
   

  
	
  Notice
  period

  	
  You will be required to
  give SGI one months notice. You may be terminated by six months written
  notice.

  
	
   

  	
   

  
	
  Further
  information

  	
  Full details of all SGI
  employment terms and benefits are in the SGI UK Employee Handbook. This will
  be given to you when you start work, and is updated as necessary. There are
  no collective agreements as SGI.

  

 

If you need further details
on anything at this stage please do not hesitate to contact me.

 

Otherwise, please confirm
your acceptance of these terms and conditions by returning this letter to me.
You should also sign and return the enclosed employee security agreement.

 

Congratulations on your
appointment Steve, and we very much look forward to you joining the team.

 

Best regards

 

	
   /s/ Bob Bishop

  	
   

  	
   

  
	
  Bob Bishop

  	
   

  
	
  CEO

  	
   

  
	
  SGI

  	
   

  

 

I confirm my acceptance of the above terms and conditions

 

	
  Signed

  	
  /s/  Stephen
  Coggins

  	
   

  	
  Name Stephen Coggins

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