Document:

Amended and Restated 1993 Long-Term Incentive Stock Plan

 Exhibit 10.2 
  
 SILICON GRAPHICS, INC. 
 AMENDED AND RESTATED 
 1993 LONG-TERM INCENTIVE STOCK PLAN 
  
 1. Purpose of the Plan. The purpose of the Silicon Graphics, Inc. 1993 Long-Term Incentive Stock Plan (the
“Plan”) is to promote the long-term success of Silicon Graphics, Inc. (“SGI”) and to increase stockholder value by providing its eligible employees, consultants, officers and directors with incentives to create excellent
performance and to continue service with the Company, its subsidiaries and affiliates. Both by encouraging such employees, consultants, officers and directors to become owners of Common Stock and by providing actual ownership through Plan awards, it
is intended that Plan participants will view the Company from an ownership perspective. Additionally, the Company believes the Plan will assist in attracting and retaining people of the highest caliber. 
  
 2. Eligibility. SARs and Stock Awards (collectively
“Rights”) and Nonstatutory Stock Options may be granted to Employees, Consultants and Directors. Options that are intended to qualify as incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended (the “Code”) or any successor section (“Incentive Stock Options”) may be granted only to Employees. If otherwise eligible, an Employee, Consultant or Director who has been granted an Option or Right may be granted
additional Options or Rights. 
  
 3. Stock Subject to the
Plan.
  
 (a) Subject to Section 12 of the Plan, the
maximum aggregate number of shares of Common Stock of the Company (“shares”) that may be issued pursuant to Options and Rights granted to participants under the Plan shall be the sum of 3.5% of the issued shares at June 30 of each of
the Company’s fiscal years from 1993 through 1997, plus any unused carried forward shares and any forfeited shares; provided that the number of shares that may be transferred to participants under the Plan in any one fiscal year of the
Company shall not exceed 3.5% of the issued shares determined as of the June 30 of the immediately preceding fiscal year plus any unused carried forward shares and any forfeited shares. The term “shares” shall include shares that have
been subject to SARs that are exercised for cash, whether granted in connection with or independently of Options. For purposes of this Section 3, the following apply: (i) the number of “issued shares” at June 30 of a fiscal
year means the number of shares outstanding at that date, plus all shares reacquired by the Company during the preceding fiscal year, whether or not such shares are designated as retired or treasury shares; (ii) ”unused shares” means
any shares available from a prior Plan year, based on the percentage of issued shares calculation, which were not transferred, plus any shares reserved for grants which have not been covered by grants under prior shareholder-approved plans other
than the 1985 Stock Incentive Program (“Prior Plans”) which will be terminated as of the effective date of the Plan; and (iii) ”forfeited shares” means any shares issued pursuant to awards made under the Plan which are
forfeited to the Company pursuant to award terms and 
  

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 conditions, plus any shares covered by grants made under Prior Plans which are not issued to participants or are returned
to the Company because of the cancellation, expiration or forfeiture of a grant made under the Prior Plans; provided that the term “forfeited shares” shall not include shares as to which the original recipient received any benefits
of ownership (other than voting rights). 
  
 (b) In no event,
however, except as subject to Section 12 of the Plan, shall more than 23,025,560 of the shares eligible for issuance under the Plan be issued upon the exercise of Incentive Stock Options under the Plan. Additionally, the maximum number of
shares which may be issued pursuant to Stock Awards contemplated by Section 8 of the Plan shall be limited to 3,800,000 shares (approximately 3% of the number of shares outstanding at June 30, 1993). At no time shall the total number of
securities issuable upon exercise of all outstanding options and the total number of shares provided for under any stock bonus or similar plan or agreement of the Company exceed 30% of the then outstanding securities of the Company (including
convertible securities on an as if converted basis), unless a higher percentage is approved by at least two-thirds of the outstanding securities entitled to vote. 
  
 (c) The following limitations will apply to grants of Options or SARs under the Plan: 
  
 (i) no Employee will be granted Options or SARs under the Plan to purchase
more than 2,000,000 shares over the term of the Plan; provided that, if the number of shares available for issuance under Section 3(a) of the Plan is increased, the maximum number of Options or SARs that any Employee may be granted also
automatically will increase by an amount equal to 500,000 shares for each additional fiscal year in which shares are allocated for issuance under the Plan. 
  
 The foregoing limitations set forth in this Section 3(c) are intended to satisfy the requirements applicable to Options and SARs intended to qualify
as “performance-based compensation” within the meaning of Section 162(k) of the Code. In the event that the Committee determines that such limitations are not required to qualify Options or SARs as performance-based compensation, the
Committee may modify or eliminate such limitations. 
  
 (d) For
purposes of Section 3(a), except as to forfeited shares, the payment of cash dividends and dividend equivalents in conjunction with outstanding awards shall not be counted against the shares available for issuance. 
  
 (e) Any shares issued under the Plan may consist in whole or in part of
authorized and unissued shares or of treasury shares, and no fractional shares shall be issued under the Plan. Cash may be paid in lieu of any fractional shares in settlement of awards under the Plan. 
  

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 4. Plan Administration.
  
 (a) Committees. 
  
 (i) Multiple Administrative Bodies. The Plan may be administered by different committees with respect to different groups of Employees,
Consultants and Directors. Committee shall mean a committee of Directors appointed by the Board of Directors of the Company (the “Board”). 
  
 (ii) Section 162m. To the extent that the Company determines it to be desirable to qualify Options granted hereunder as
“performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan shall be administered by a committee of two or more “outside directors” within the meaning of Section 162(m) of the Code.

  
 (iii) Rule 16b-3. To the extent desirable to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 
  
 (iv) Other Administration. Other than as provided above, the Plan shall be administered by (A) the Board or
(B) a Committee, which committee shall be constituted to satisfy applicable laws. 
  
 (b) Powers of the Committee. The Committee shall have full and exclusive power to interpret the Plan and to adopt such rules, regulations and guidelines for carrying out the Plan as it may deem necessary or
proper. This power includes, but is not limited to, selecting award recipients, establishing all award terms and conditions and adopting modifications, amendments and procedures, including subplans and the like as may be necessary to comply with
provisions of the laws and applicable regulatory rulings of countries in which the Company operates in order to assure the viability of awards granted under the Plan and to enable participants employed in such countries to receive advantages and
benefits under the Plan and such laws and rulings. 
  
 (c)
Effect of Committee’s Decision. The Committee’s decisions, determinations and interpretations shall be final and binding on all Optionees and any other holders of Options or Rights. 
  
 (d) Tax Withholding. The Committee may, in its discretion, allow
Optionees to satisfy withholding tax obligations by electing to have the Company withhold from the shares to be issued upon exercise of an Option that number of shares having a Fair Market Value of the shares to be withheld shall be determined on
the date that the amount of tax to be withheld is to be determined. All elections by an Optionee to have shares withheld for this purpose shall be made in such form and under such conditions as the Committee may deem necessary or advisable.

  

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 5. Duration of the Plan. The Plan shall continue in effect for a term of ten (10) years from
January 13, 2006, unless sooner terminated by the Board under the terms of the Plan; provided that in no event may Incentive Stock Options be granted under the Plan later than 10 years from the date the Plan was adopted by the Board.

  
 6. Awards. The Committee shall determine the type or
types of award(s) to be made to each participant. Awards may be granted singly, in combination or in tandem. Awards also may be made in combination or in tandem with, in replacement of, as alternatives to, or as the payment form for grants or rights
under any other employee or compensation plan of the Company, including the plan of any acquired entity. The types of awards that may be granted under the Plan are Options, SARs and Stock Awards. 
  
 7. Options and SARs. 
  
 (a) Options; Number of Shares. The Committee, in its discretion, may
grant Options to eligible participants and shall determine whether such Options shall be Incentive Stock Options or Nonstatutory Stock Options. Each Option shall be evidenced by a Notice of Grant which shall specify the number of shares to which it
pertains, expressly identify the Options as Incentive Stock Options or as Nonstatutory Stock Options and be in such form and contain such provisions as the Committee shall from time to time deem appropriate. Without limiting the foregoing, the
Committee may at any time authorize the Company, with the consent of the respective recipients, to issue new Options or Rights in exchange for the surrender and cancellation of outstanding Options or Rights. Option agreements shall contain the
following terms and conditions: 
  
 (i) Exercise Price.
The per share exercise price for the shares issuable pursuant to an Option shall be such price as is determined by the Committee; provided that in no event shall the price of an Option or SAR be less than 100% of the Fair Market Value of the
Common Stock on the date the Option or SAR is granted, subject to any additional conditions set out in Subsection 7(a)(v) below; provided further that in the case of an Option that is granted to an eligible Employee, Consultant, Officer or
Director who, at the time of the grant of such Option, owns stock representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the per share exercise price shall be no less than
110% of the Fair Market Value of the Common Stock on the date the Option is granted. 
  
 (ii) Waiting Period and Exercise Dates. At the time an Option is granted, the Committee shall determine the terms and conditions to be satisfied before shares may be purchased, including the dates on which
shares subject to the Option may first be purchased. The Committee may specify that an Option may not be exercised until the completion of a service period specified at the time of grant. (Any such period is referred to herein as the “waiting
period.”) Except for Options issued to any Officer, Director or Consultant, such Options shall become exercisable at the rate of at least 20% per year over five years from the date of grant. At the time an Option is granted, the Committee
shall fix the period within which the Option may be exercised, which shall not be earlier than the end of the waiting period, if any, nor later than one hundred twenty (120) months, from the date of grant. 
  

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 (iii) Form of Payment. The consideration to be paid for the shares to be issued upon exercise of
an Option, including the method of payment, shall be determined by the Committee (and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and may consist entirely of: 
  
 (1) cash; 
  
 (2) check; 
  
 (3) other shares which (a) in the case of shares acquired upon exercise of an option, have been owned by the Optionee for more than six months on
the date of surrender, and (b) have a Fair Market Value on the date of surrender not greater than the aggregate exercise price of the shares as to which said Option shall be exercised; 
  
 (4) delivery of a properly executed exercise notice together with such other
documentation as the Committee and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price; 
  
 (5) any combination of the foregoing methods of payment; or 
  
 (6) such other consideration and method of payment for the issuance of
shares to the extent permitted by Applicable Laws. 
  
 (iv)
Reload Options. The Committee may grant Options that provide for the award of a new Option when the exercise price has been paid by tendering shares to the Company, subject to such terms and conditions as the Committee shall determine.

  
 (v) Special Incentive Stock Option Provisions. In
addition to the foregoing, Options granted under the Plan which are intended to be Incentive Stock Options shall be subject to the following terms and conditions: 
  
 (1) Dollar Limitation. To the extent that the aggregate Fair Market Value of (a) the shares with respect to
which Options designated as Incentive Stock Options plus (b) the shares of stock of the Company with respect to which other Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year under all plans of
the Company exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of the preceding sentence, (a) Options shall be taken into account in the order in which they were granted, and (b) the Fair Market
Value of the shares shall be determined as of the time the Option or other Incentive Stock Option is granted. 
  

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 (2) 10% Stockholder. If any Optionee to whom an Incentive Stock Option is to be granted pursuant
to the provisions of the Plan is, on the date of grant, an individual described in Section 422(b)(6) of the Code, then the following special provisions shall be applicable to the Option granted to such individual: 
  
 (a) The per share Option price of shares subject to such Incentive Stock
Option shall not be less than 110% of the Fair Market Value of Common Stock on the date of grant; and 
  
 (b) The Option shall not have a term in excess of five (5) years from the date of grant. 
  
 Except as modified by the preceding provisions of this subsection 7(a)(v)
and except as otherwise limited by Section 422 of the Code, all of the provisions of the Plan shall be applicable to the Incentive Stock Options granted hereunder. 
  
 (vi) Other Provisions. Unless otherwise determined by the Committee at the time of grant, each Option shall provide
that in the event of a change in control of the Company (as specified by the Committee), any Optionee’s Options will become exercisable in full if, within twenty-four months after a change in control of the Company, the Optionee’s
employment is terminated without cause or the Optionee resigns due to certain involuntary relocations or reductions in compensation, as specified by the Committee. Each Option granted under the Plan may contain such other terms, provisions, and
conditions not inconsistent with the Plan as may be determined by the Committee. 
  
 (vii) Buyout Provisions. The Committee may at any time offer to buyout for a payment in cash, promissory note or shares, an Option previously granted, based on such terms and conditions as the Committee shall
establish and communicate to the Optionee at the time that such offer is made. 
  
 (b) SARs. 
  
 (i) In
Connection with Options. At the sole discretion of the Committee, SARs may be granted in connection with all or any part of an Option, either concurrently with the grant of the Option or at any time thereafter during the term of the Option. The
following provisions apply to SARs that are granted in connection with Options: 
  
 (1) The SAR shall entitle the Optionee to exercise the SAR by surrendering to the Company unexercised the corresponding portion of the related Option. The Optionee shall receive in exchange from the Company an amount
equal to the excess of (1) the Fair Market Value on the date of exercise of the SAR of the 
  

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 Common Stock covered by the surrendered portion of the related Option over (2) the exercise price of the Common
Stock covered by the surrendered portion of the related Option. Notwithstanding the foregoing, the Committee may place limits on the amount that may be paid upon exercise of an SAR; provided that such limit shall not restrict the
exercisability of the related Option. 
  
 (2) When an SAR is
exercised, the related Option, to the extent surrendered, shall cease to be exercisable. 
  
 (3) An SAR shall be exercisable only when and to the extent that the related Option is exercisable and shall expire no later than the date on which the related Option expires. 
  
 (4) An SAR may only be exercised at a time when the Fair Market Value of the
Common Stock covered by the related Option exceeds the exercise price of the Common Stock covered by the related Option. 
  
 (ii) Independent of Options. At the sole discretion of the Committee, SARs may be granted without related Options. The following provisions apply
to SARs that are not granted in connection with Options: 
  
 (1)
The SAR shall entitle the Optionee, by exercising the SAR, to receive from the Company an amount equal to the excess of (1) the Fair Market Value of the Common Stock covered by the exercised portion of the SAR, as of the date of such exercise,
over (2) the Fair Market Value of the Common Stock covered by the exercised portion of the SAR, as of the last market trading date prior to the date on which the SAR was granted; provided that the Committee may place limits on the
aggregate amount that may be paid upon exercise of an SAR. 
  
 (2) SARs shall be exercisable, in whole or in part, at such times as the Committee shall specify in the Optionee’s SAR agreement. 
  
 (iii) Form of Payment. The Company’s obligation arising upon the exercise of an SAR may be paid in Common Stock or in cash, or in any
combination of Common Stock and cash, as the Committee, in its sole discretion, may determine. Shares issued upon the exercise of an SAR shall be valued at their Fair Market Value as of the date of exercise. 
  
 (c) Method of Exercise.
  
 (i) Procedure for Exercise; Rights as a Stockholder. Any Option or
SAR granted hereunder shall be exercisable at such times and under such conditions as determined by the Committee and as shall be permissible under the terms of the Plan. 
  
 An Option may not be exercised for a fraction of a share. 
  

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 An Option or SAR shall be deemed to be exercised when written notice of such exercise has been given to
the Company in accordance with the terms of the Option or SAR by the person entitled to exercise the Option or SAR and full payment for the shares with respect to which the Option is exercised has been received by the Company. Full payment may, as
authorized by the Committee and permitted by the Option Agreement, consist of any consideration and method of payment allowable under subsection 7(a)(iii) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such shares, no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 12 of the Plan. 
  
 Exercise of an Option in any manner shall result in a decrease in the number
of shares which thereafter shall be available, both for purposes of the Plan and for sale under the Option, by the number of shares as to which the Option is exercised. Exercise of an SAR for Common Stock shall, to the extent the SAR is exercised,
result in a decrease in the number of shares which thereafter shall be available for purposes of the Plan, and the SAR shall cease to be exercisable to the extent it has been exercised. 
  
 (ii) Termination of Employment, Consulting or Director Relationship. In the event an Optionee’s Continuous
Status as an Employee, Consultant or Director terminates (other than upon the Optionee’s death or Disability), the Optionee may exercise his or her Option or SAR, but only within such period of time from the date of such termination as is
determined by the Committee, which period shall not be less than 30 days and, in the case of an Option that is intended to qualify as an Incentive Stock Option, shall not exceed 3 months, and, unless determined otherwise by the Committee, only to
the extent that the Optionee was entitled to exercise it at the date of such termination (but in no event later than the expiration of the term of such Option or SAR as set forth in the Option or SAR Agreement). To the extent that Optionee was not
entitled to exercise an Option or SAR at the date of such termination, and to the extent that the Optionee does not exercise such Option or SAR (to the extent otherwise so entitled) within the time specified herein, the Option or SAR shall
terminate. 
  
 (iii) Disability of Optionee. In the event
an Optionee’s Continuous Status as an Employee, Consultant or Director terminates as a result of the Optionee’s Disability, the Optionee may exercise his or her Option or SAR, but only within twelve (12) months from the date of such
termination, and, unless determined otherwise by the Committee, only to the extent that the Optionee was entitled to exercise it at the date of such termination (but in no event later than the expiration of the term of such Option or SAR as set
forth in the Option or SAR Agreement). To the extent that Optionee was not entitled to exercise an Option or SAR at the date of such termination, and to the extent that the Optionee does not exercise such Option or SAR (to the extent otherwise so
entitled) within the time specified herein, the Option or SAR shall terminate. 
  

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 (iv) Death of Optionee. In the event of an Optionee’s death, the Optionee’s estate or a
person who acquired the right to exercise the deceased Optionee’s Option or SAR by bequest or inheritance may exercise the Option or SAR, but only within twelve (12) months following the date of death, and, unless determined otherwise by
the Committee, only to the extent that the Optionee was entitled to exercise it at the date of death (but in no event later than the expiration of the term of such Option or SAR as set forth in the Option or SAR Agreement). To the extent that
Optionee was not entitled to exercise an Option or SAR at the date of death, and to the extent that the Optionee’s estate or a person who acquired the right to exercise such Option does not exercise such Option or SAR (to the extent otherwise
so entitled) within the time specified herein, the Option or SAR shall terminate. 
  
 8. Stock Awards. 
  
 (a)
Stock Awards. All or part of any Stock Award may be subject to conditions and restrictions established by the Committee, and set forth in the award agreement, which will include, but are not limited to, achievement of specific business
objectives and other measurements of individual, business unit or Company performance measured over a period of not less than twelve (12) months. 
  
 9. Outside Director Grants. 
  
 (a) All Options granted pursuant to this Section shall be Nonstatutory Stock Options and, except as otherwise provided herein, shall be subject to the
other terms and conditions of the Plan. 
  
 (b) All grants of
Options hereunder shall be automatic and non-discretionary and shall be made strictly in accordance with the following provisions: 
  
 (i) No person shall have any discretion to select which Outside Directors shall be granted Options or to determine the number of Shares to be covered by
Options granted to Outside Directors. 
  
 (ii) Each Outside
Director shall be automatically granted an Option to purchase 50,000 Shares (which number shall be subject to adjustment in the manner set forth in Section 12 hereof upon the occurrence of any event described therein) upon the date on which
such person first becomes a Director (an “Initial Grant”), whether through election by the stockholders of the Company or by appointment by the Board to fill a vacancy. 
  
 (iii) On the date of each regular October meeting of the Board of Directors of the Company (or, if the Board does not meet
in October of any year, on the date of the next regularly scheduled Board meeting) during the term of this Plan, each 
  

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 Outside Director who has served as a Director for at least the previous six (6) months shall automatically receive
an Option to purchase 20,000 Shares (which number shall be subject to adjustment in the manner set forth in Section 12 hereof upon the occurrence of any event described therein) (a “Renewal Grant”). 
  
 (iv) The terms of each Option granted pursuant to this Section shall be as
follows: 
  
 (1) the term of the Option shall be one hundred
twenty (120) months. 
  
 (2) the Option shall be exercisable
only while the Outside Director remains a Director of the Company, except as set forth in Section 7 hereof; provided that if the Optionee retires from the Board of Directors of the Company at 65 or more years of age with more than 5
years of continuous service on the Board, he or she may, but only within twelve (12) months from the date of termination, exercise the Option to the extent he or she was entitled to exercise it at the date of such termination; provided
further that in the event the exercise period terminates at a time when the Optionee is prohibited from engaging in transactions in the Company’s stock as a result of the Company’s trading window being closed, the Option shall remain
exercisable until the Optionee is no longer so prohibited; 
  
 (3) the exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of the Option; provided that in the case of an Option that is granted to an eligible Outside Director who, at the time of the
grant of such Option, owns stock representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the per share exercise price shall be no less than 110% of the Fair Market Value of
the Common Stock on the date the Option is granted. 
  
 (4) with
respect to Initial Grants, the Option will become exercisable in two annual installments on each of the first and second anniversaries of the grant date, so long as the Optionee remains a Director on such date; provided that the Option will
become fully exercisable in the event of the occurrence of one of the following events while the Optionee remains a Director (a “Change of Control”): (x) the consummation of a merger or consolidation of the Company with or into any
other entity pursuant to which the stockholders of the Company immediately prior to such merger or consolidation hold, directly or indirectly, less than 50% of the voting power of the surviving entity; (y) the sale or other disposition of all
or substantially all of the Company’s assets; or (z) the acquisition by any person or persons of the beneficial ownership of 50% or more of the voting power of the Company’s equity securities in a single transaction or series of
related transactions; and 
  
 (5) with respect to Renewal Grants,
the Option will be fully exercisable on the grant date. 
  

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 v) In the event that any Option granted under the Plan would cause the number of Shares subject to
outstanding Options plus the number of Shares previously purchased upon exercise of Options to exceed the Pool, then each such automatic grant shall be for that number of Shares determined by dividing the total number of Shares remaining available
for grant by the number of Outside Directors on the automatic grant date. No further grants shall be made until such time, if any, as additional Shares become available for grant under the Plan through action of the shareholders to increase the
number of Shares which may be issued under the Plan or through cancellation or expiration of Options previously granted hereunder. 
  
 10. Deferrals and Settlements. Payment of awards may be in the form of cash, Common Stock, other awards or combinations thereof as the Committee
shall determine, and with such restrictions as it may impose including, without limitation, restrictions imposed on Insiders under Rule 16b-3. The Committee also may require or permit participants to elect to defer the issuance of shares or the
settlement of awards in cash under such rules and procedures as it may establish under the Plan. The Committee may also provide that deferred settlements include the payment or crediting of interest on the deferral amounts. 
  
 11. Transferability of Options and Rights. Unless otherwise determined
by the Committee to the contrary, Options and Rights may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of
the Optionee, only by the Optionee. The Committee may, in the manner established by the Committee, provide for the transfer, without payment of consideration, of an Option or Right by the Optionee to the Optionee’s “immediate family”.
In such case, the Option or Right will be exercisable only by such transferee. Following a transfer, any such Options or Rights shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer. For
purposes of this Section 11, the Optionee’s “immediate family” shall include any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Optionee’s household (other than a tenant or employee), a trust in which these persons have more than fifty percent of the
beneficial interest, a foundation in which these persons (or the Optionee) control the management of assets, and any other entity in which these persons (or the Optionee) own more than fifty percent of the voting interests. A transfer under a
domestic relations order in settlement of marital property rights is not a prohibited transfer for value. 
  
 12. Adjustments Upon Changes in Capitalization, Dissolution, Merger, Asset Sale or Change of Control.
  
 (a) Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by each outstanding Option and Right, and the number of shares of Common Stock which have 
  

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 been authorized for issuance under the Plan but as to which no Options or Rights have yet been granted or which have been
returned to the Plan upon cancellation or expiration of an Option or Right, as well as the price per share of Common Stock covered by each such outstanding Option or Right, shall be proportionately adjusted for any increase or decrease in the number
of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company; provided that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by
the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option or Right. 
  
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, to the extent that an Option or Right has
not been previously exercised, it will terminate immediately prior to the consummation of such proposed action. The Committee may, in the exercise of its sole discretion in such instances, declare that any Option or Right shall terminate as of a
date fixed by the Committee and give each Optionee the right to exercise his or her Option or Right as to all or any part of the Optioned Stock, including shares as to which the Option or Right would not otherwise be exercisable. 
  
 (c) Merger or Asset Sale. In the event of a merger of the Company with
or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding Option and Right shall be assumed or an equivalent Option or Right substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. In the event that the successor corporation does not agree to assume the Option or to substitute an equivalent option, the Committee may, in lieu of such assumption or substitution, provide for the Optionee to have the right
to exercise the Option or Right as to all or a portion of the Optioned Stock, including shares as to which it would not otherwise be exercisable. If the Committee makes an Option or Right exercisable in lieu of assumption or substitution in the
event of a merger or sale of assets, the Committee shall notify the Optionee that the Option or Right shall be exercisable for such period as the Committee may designate, and the Option or Right will terminate upon the expiration of such period. For
the purposes of this Section 12(c), the Option or Right shall be considered assumed if, immediately following the merger or sale of assets, the Option or Right confers the right to receive, for each share of Optioned Stock subject to the Option
or Right immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each share held on the effective date of the
transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided, that if such consideration received in the merger or sale of assets was
not solely common 
  

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 stock of the successor corporation or its parent, the Committee may, with the consent of the successor corporation and
the Optionee, provide for the consideration to be received upon the exercise of the Option or Right, for each share of Optioned Stock subject to the Option or Right, to be solely common stock of the successor corporation or its parent equal in Fair
Market Value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
  
 13. Date of Grant. The date of grant of an Option or Right shall be, for all purposes, the date on which the Committee makes the determination
granting such Option or Right, or such other later date as is determined by the Committee. Notice of the determination shall be provided to each Optionee within a reasonable time after the date of such grant. 
  
 14. Amendment and Termination of the Plan.
  
 (a) Amendment and Termination. The Board may at any time amend,
alter, suspend or terminate the Plan. 
  
 (b) Stockholder
Approval. The Company shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Rule 16b-3 or with Section 422 of the Code (or any successor rule or statute or other applicable law, rule or
regulation, including the requirements of any exchange or quotation system on which the Common Stock is listed or quoted). Such stockholder approval, if required, shall be obtained in such a manner and to such a degree as is required by the
Applicable Laws, rules or regulations. 
  
 (c) Effect of
Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Company, which agreement must be in writing and
signed by the Optionee and the Company. 
  
 15. Conditions Upon
Issuance of Shares.
  
 (a) Legal Compliance. Shares
shall not be issued pursuant to the exercise of an Option or Right unless the exercise of such Option or Right and the issuance and delivery of such shares shall comply with all relevant provisions of law, including, without limitation, the
Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, Applicable Laws, and the requirements of any stock exchange or quotation system upon which the shares may then be listed or quoted, and shall be
further subject to the approval of counsel for the Company with respect to such compliance. 
  
 (b) Investment Representations. As a condition to the exercise of an Option or Right, the Company may require the person exercising such Option or Right to represent and warrant at the time of any such exercise
that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required. 
  

 -13- 

 16. Liability of Company.
  
 (a) Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to
which such requisite authority shall not have been obtained. 
  
 (b) Grants Exceeding Allotted Shares. If the Optioned Stock covered by an Option or Right exceeds, as of the date of grant, the number of shares which may be issued under the Plan without additional stockholder approval, such Option
or Right shall be void with respect to such excess Optioned Stock, unless stockholder approval of an amendment sufficiently increasing the number of shares subject to the Plan is timely obtained in accordance with Section 14 of the Plan.

  
 17. Reservation of Shares. The Company, during the term
of this Plan, will at all times reserve and keep available such number of shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 18. Stockholder Approval. Continuance of the Plan shall be subject to approval by the stockholders of the Company within twelve (12) months
before or after the date the Plan is adopted. Such stockholder approval shall be obtained in the manner and to the degree required by the Applicable Laws, rules and regulations. 
  
 19. Financial Statements. The Company shall provide financial statements at least annually to each eligible Employee,
Consultant, Officer or Director during the period such person has one or more Options outstanding, and in the case of an individual who acquired Common Stock pursuant to the Plan, during the period such individual owns such Common Stock. The Company
shall not be required to provide such information if the issuance of awards under the Plan is limited to key employees whose duties in connection with the Company assure their access to equivalent information. 
  
 20. Definitions. As used herein, the following definitions shall
apply: 
  
 (a) “Applicable Laws” means all
applicable law, including without limitation, the Code, Delaware General Corporation Law, and applicable federal and state securities laws. 
  
 (b) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (c) “Common Stock” means the Common Stock of SGI. 
  

 -14- 

 (d) “Company” means Silicon Graphics, Inc., and any entity that is directly or
indirectly controlled by the Company, or any entity in which the Company has a significant equity interest, as determined by the Committee; provided that with respect to Options that are intended to qualify as Incentive Stock Options, the
term “Company” shall be limited to Silicon Graphics, Inc. and any “parent” or “subsidiary” as those terms are defined in Sections 424(e) and (f) of the Code, respectively, or any successor sections. 
  
 (e) “Consultant” means any person, including an
advisor, engaged by the Company to render services and who is compensated for such services; provided that the term “Consultant” shall not include Directors who are paid only a Director’s fee by the Company or who are not
compensated by the Company for their services as Directors. 
  
 (f) “Continuous Status as an Employee or Consultant”, means that the relationship as an Employee or Consultant is not interrupted or terminated by the Company. Continuous Status as an Employee or Consultant shall not be
considered interrupted in the case of: (i) any leave of absence approved by the Company, including sick leave, military leave, or any other personal leave; provided that for purposes of qualifying an Option as an Incentive Stock Option,
in the event any such leave exceeds ninety (90) days, the Optionee’s Continuous Status as an Employee will be deemed to have terminated on the ninety-first (91st) day after the commencement of such leave, unless re-employment upon the
expiration of such leave is guaranteed by contract (including certain Company policies) or statute; or (ii) transfers between locations of the Company. 
  
 (g) “Director” means any person who is a member of the Board of Directors of the Company or its subsidiaries and affiliates.

  
 (h) “Disability” means total and
permanent disability as defined in Section 22(e)(3) of the Code. 
  
 (i) “Employee” means any person, including Officers, employed by the Company. Neither service solely as a Director nor payment solely of a director’s fee by the Company shall be sufficient to constitute
“employment” by the Company. 
  
 (j) “Fair
Market Value” means, as of any date, the closing price for a share of Common Stock as reported daily in The Wall Street Journal or a similar readily available public source. If no sales of shares were made on such date, the closing
price of a share as reported for the preceding day on which sale of shares were made shall be used. 
  
 (k) “Nonstatutory Stock Option” means any Option that is not an Incentive Stock Option. 
  

 -15- 

 (l) “Notice of Grant” means a written notice evidencing certain terms and
conditions of an individual Option, SAR or Stock Award grant. The Notice of Grant is part of the Option Agreement, the SAR Agreement and the Stock Award Agreement. 
  
 (m) “Officer” means a person who is an officer of the Company. 
  
 (n) “Option” means a stock option granted pursuant to
the Plan. 
  
 (o) “Option Agreement” means a
written agreement between the Company and an Optionee evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
  
 (p) “Optioned Stock” means the Common Stock subject to
an Option or Right. 
  
 (q) “Optionee” means
an Employee, Consultant or Director who holds an outstanding Option or Right. 
  
 (r) “Outside Director” means a Director who is not an Employee and who is not the “beneficial owner” (as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended), directly
or indirectly, of securities of the Company representing 5% or more of the total voting power represented by the Company’s outstanding voting securities on the date of any grant hereunder. 
  
 (s) “Parent” means a “parent corporation,”
whether now or hereafter existing, as defined in Section 424(e) of the Code, or any successor provision. 
  
 (t) “SAR” means a stock appreciation right granted pursuant to Section 7(b) of the Plan. 
  
 (u) “SAR Agreement” means a written agreement between
the Company and an Optionee evidencing the terms and conditions of an individual SAR grant. The SAR Agreement is subject to the terms and conditions of the Plan. 
  
 (v) “Stock Award” means an award made or denominated in shares or equivalent in value to shares
pursuant to Section 8 of the Plan. 
  
 (w)
“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code, or any successor provision. 
  

 -16-Amended and Restated 1996 Supplemental Non-Executive Equity Incentive Plan

 Exhibit 10.3 
  
 SILICON GRAPHICS, INC. 
  
 AMENDED AND RESTATED 
 1996 SUPPLEMENTAL
NON-EXECUTIVE 
 EQUITY INCENTIVE PLAN 
  
 1. Purpose of the Plan. The purpose of the Silicon Graphics, Inc. 1996 Supplemental Non-Executive Equity Incentive Plan (the “Plan”) is
to promote the long-term success of Silicon Graphics, Inc. (“SGI”) by providing supplemental equity incentives to non-executives of the Company to address special circumstances identified from time to time by the Compensation and Human
Resources Committee (the “Committee”) appointed by the Board of Directors of SGI (the “Board”), which could without limitation include special retention programs addressing exceptional competitive pressures in the market for
technical personnel, special recognition programs for outstanding performance, and other circumstances outside of the normal course. 
  
 2. Eligibility. Stock Awards (“Rights”) and Options may be granted to Eligible Employees. If otherwise eligible, an Employee who has been
granted an Option or Right may be granted additional Options or Rights. 
  
 3. Stock Subject to the Plan. 
  
 (a) Subject to
Section 11 of the Plan, the maximum aggregate number of shares of Common Stock of the Company (“shares”) that may be issued pursuant to Options and Rights granted to participants under the Plan shall be 22,500,000 shares. If shares
issued pursuant to a Stock Award are forfeited or otherwise reacquired by the Company, or if an Option or Right expires or becomes unexercisable without having been exercised in full, the reacquired or unpurchased shares, respectively, that were
subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). At no time shall the total number of securities issuable upon exercise of all outstanding options and the total number of shares
provided for under any stock bonus or similar plan or agreement of the Company exceed 30% of the then outstanding securities of the Company (including convertible securities on an as if converted basis), unless a higher percentage is approved by at
least two-thirds of the outstanding securities entitled to vote. 
  
 (b) Any shares issued under the Plan may consist in whole or in part of authorized and unissued shares or of treasury shares, and no fractional shares shall be issued under the Plan. Cash may be paid in lieu of any fractional shares in
settlement of awards under the Plan. 

 4. Plan Administration. 
  
 (a) Committee. The Committee shall be responsible for administering the Plan. The Committee shall have full and
exclusive power to interpret the Plan and to adopt such rules, regulations and guidelines for carrying out the Plan as it may deem necessary or proper. This power includes, but is not limited to, selecting award recipients, establishing all award
terms and conditions and adopting modifications, amendments and procedures, including subplans and the like as may be necessary to comply with provisions of the laws and applicable regulatory rulings of countries in which the Company operates in
order to assure the viability of awards granted under the Plan and to enable participants employed in such countries to receive advantages and benefits under the Plan and such laws and rulings. 
  
 (b) Effect of Committee’s Decision. The Committee’s
decisions, determinations and interpretations shall be final and binding on all Optionees and any other holders of Options or Rights. 
  
 5. Duration of the Plan. The Plan shall continue in effect for a term of ten (10) years from January 13, 2006, unless sooner terminated
by the Board under the terms of the Plan. 
  
 6. Awards.
The Committee shall determine the type or types of award(s) to be made to each participant. Awards may be granted singly, in combination or in tandem. Awards also may be made in combination or in tandem with, in replacement of, as alternatives to,
or as the payment form for grants or rights under any other employee or compensation plan of the Company, including the plan of any acquired entity. The types of awards that may be granted under the Plan are Options and Stock Awards. 
  
 7. Options. 
  
 (a) Options; Number of Shares. The Committee, in its discretion, may
grant Options to eligible participants. Each Option shall be evidenced by a Notice of Grant that shall specify the number of shares to which it pertains and be in such form and contain such provisions as the Committee shall from time to time deem
appropriate. Without limiting the foregoing, the Committee may at any time authorize the Company, with the consent of the respective recipients, to issue new Options or Rights in exchange for the surrender and cancellation of outstanding Options or
Rights. Option agreements shall contain the following terms and conditions: 
  
 (i) Exercise Price. The per share exercise price for the shares issuable pursuant to an Option shall be such price as is determined by the Committee; provided that the per share exercise price shall be
no less than 85% of the Fair Market Value per share on the date of grant; provided further that in the case of an Option that is granted to an eligible participant who, at the time of the grant of such Option, owns stock representing more
than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the per share exercise price shall be no less than 110% of the Fair Market Value of the Common Stock on the date the Option is granted.

 (ii) Waiting Period and Exercise Dates. At the time an Option is granted, the Committee shall
determine the terms and conditions to be satisfied before shares may be purchased, including the dates on which shares subject to the Option may first be purchased. The Committee may specify that an Option may not be exercised until the completion
of a service period specified at the time of grant. (Any such period is referred to herein as the “waiting period.”) Options shall become exercisable at the rate of at least 20% per year over five years from the date of grant. At the
time an Option is granted, the Committee shall fix the period within which the Option may be exercised, which shall not be earlier than the end of the waiting period, if any, nor later than one hundred twenty (120) months, from the date of
grant. 
  
 (iii) Form of Payment. The consideration to be
paid for the shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Committee and may consist entirely of: 
  

(1) cash; 
  
 (2) check; 
  
 (3) other shares that (a) in the case of shares acquired upon exercise of an option, have been owned by the Optionee for more than six months on the
date of surrender, and (b) have a Fair Market Value on the date of surrender not greater than the aggregate exercise price of the shares as to which said Option shall be exercised; 
  
 (4) delivery of a properly executed exercise notice together with such other documentation as the Committee and the broker,
if applicable, shall require to effect an exercise of the Option and delivery to SGI of the sale or loan proceeds required to pay the exercise price; 
  
 (5) any combination of the foregoing methods of payment; or 
  
 (6) such other consideration and method of payment for the issuance of shares to the extent permitted by Applicable Laws. 
  
 (iv) Other Provisions. Unless otherwise determined by the Committee
at the time of grant, each Option shall provide that in the event of a change in control of the Company (as specified by the Committee), any Optionee’s Options will become exercisable in full if, within twenty-four (24) months after a
change in control of the Company, the Optionee’s employment is terminated without cause or the Optionee resigns due to certain involuntary relocations or reductions in compensation, as specified by the Committee. Each Option granted under the
Plan may contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Committee. 

 (v) Buyout Provisions. The Committee may at any time offer to buy out for a payment in cash,
promissory note or shares, an Option previously granted, based on such terms and conditions as the Committee shall establish and communicate to the Optionee at the time that such offer is made. 
  
 (b) Method of Exercise. 
  
 (i) Procedure for Exercise; Rights as a Stockholder. Any Option
granted hereunder shall be exercisable at such times and under such conditions as determined by the Committee and as shall be permissible under the terms of the Plan. 
  
 An Option may not be exercised for a fraction of a share. 
  
 An Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance
with the terms of the Option by the person entitled to exercise the Option and full payment for the shares with respect to which the Option is exercised has been received by the Company. Full payment may, as authorized by the Committee and permitted
by the Option Agreement, consist of any consideration and method of payment allowable under subsection 7(a)(iii) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the stock certificate evidencing such shares, no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 11 of the Plan. 
  
 Exercise of an Option in any manner shall result in a decrease in the number of shares that thereafter shall be available,
both for purposes of the Plan and for sale under the Option, by the number of shares as to which the Option is exercised. 
  
 (ii) Termination of Employment Relationship. In the event an Optionee ceases to be an Employee (other than as a result of the Optionee’s
death or Disability), the Optionee may exercise his or her Option, but only within such period of time from the date of such termination as is determined by the Committee, which period shall not be less than 30 days and, unless determined otherwise
by the Committee, only to the extent that the Optionee was entitled to exercise it at the date of such termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). To the extent that
Optionee was not entitled to exercise an Option at the date of such termination, and to the extent that the Optionee does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate.

 (iii) Disability of Optionee. In the event an Optionee ceases to be an Employee as a result of
the Optionee’s Disability, the Optionee may exercise his or her Option, but only within twelve (12) months from the date of such termination, and, unless determined otherwise by the Committee, only to the extent that the Optionee was
entitled to exercise it at the date of such termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). To the extent that Optionee was not entitled to exercise an Option at the date of
such termination, and to the extent that the Optionee does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
  
 (iv) Death of Optionee. In the event of an Optionee’s death, the Optionee’s estate or a person who
acquired the right to exercise the deceased Optionee’s Option by bequest or inheritance may exercise the Option, but only within twelve (12) months following the date of death, and, unless determined otherwise by the Committee, only to the
extent that the Optionee was entitled to exercise it at the date of death (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). To the extent that Optionee was not entitled to exercise an Option
at the date of death, and to the extent that the Optionee’s estate or a person who acquired the right to exercise such Option does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall
terminate. 
  
 8. Stock Awards. All or part of any Stock
Award may be subject to conditions and restrictions established by the Committee, and set forth in the award agreement, which will include, but are not limited to, achievement of specific business objectives and other measurements of individual,
business unit or Company performance measured over a period of not less than twelve (12) months. 
  
 9. Deferrals and Settlements. Payment of awards may be in the form of cash, Common Stock, other awards or combinations thereof as the Committee
shall determine, and with such restrictions as it may impose. The Committee also may require or permit participants to elect to defer the issuance of shares or the settlement of awards in cash under such rules and procedures as it may establish
under the Plan. The Committee may also provide that deferred settlements include the payment or crediting of interest on the deferral amounts. 
  
 10. Transferability of Options and Rights. Unless otherwise determined by the Committee to the contrary, Options and Rights may not be sold,
pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. The Committee may, in the manner
established by the Committee, provide for the transfer, without payment of consideration, of an 

 Option or Right by the Optionee to the Optionee’s “immediate family”. In such case, the Option or Right
will be exercisable only by such transferee. Following a transfer, any such Options or Rights shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer. For purposes of this Section 10,
the Optionee’s “immediate family” shall include any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Optionee’s household (other than a tenant or employee), a trust in which these persons have more than fifty percent of the beneficial interest, a
foundation in which these persons (or the Optionee) control the management of assets, and any other entity in which these persons (or the Optionee) own more than fifty percent of the voting interests. A transfer under a domestic relations order in
settlement of marital property rights is not a prohibited transfer for value. 
  
 11. Adjustments Upon Changes in Capitalization, Dissolution, Merger, Asset Sale or Change of Control. 
  
 (a) Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option and Right, and the number of shares of Common Stock that have been authorized for issuance under the Plan but as to which no Options or Rights have yet been granted or which have been returned to the Plan upon cancellation or
expiration of an Option or Right, as well as the price per share of Common Stock covered by each such outstanding Option or Right, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock
resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the
Company; provided that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option or Right. 
  
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, to the extent that an Option or Right has
not been previously exercised, it will terminate immediately prior to the consummation of such proposed action. The Committee may, in the exercise of its sole discretion in such instances, declare that any Option or Right shall terminate as of a
date fixed by the Committee and give each Optionee the right to exercise his or her Option or Right as to all or any part of the Optioned Stock, including shares as to which the Option or Right would not otherwise be exercisable. 

 (c) Merger or Asset Sale. In the event of a merger of the Company with or into another
corporation, or the sale of substantially all of the assets of the Company, each outstanding Option and Right shall be assumed or an equivalent Option or Right substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation. In the event that the successor corporation does not agree to assume the Option or to substitute an equivalent option, the Committee may, in lieu of such assumption or substitution, provide for the Optionee to have the right to exercise
the Option or Right as to all or a portion of the Optioned Stock, including shares as to which it would not otherwise be exercisable. If the Committee makes an Option or Right exercisable in lieu of assumption or substitution in the event of a
merger or sale of assets, the Committee shall notify the Optionee that the Option or Right shall be exercisable for such period as the Committee may designate, and the Option or Right will terminate upon the expiration of such period. For the
purposes of this Section 11(c), the Option or Right shall be considered assumed if, immediately following the merger or sale of assets, the Option or Right confers the right to receive, for each share of Optioned Stock subject to the Option or
Right immediately prior to the merger or sale of assets, the consideration (either stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each share held on the effective date of the
transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided that if such consideration received in the merger or sale of assets was not
solely common stock of the successor corporation or its parent, the Committee may, with the consent of the successor corporation and the Optionee, provide for the consideration to be received upon the exercise of the Option or Right, for each share
of Optioned Stock subject to the Option or Right, to be solely common stock of the successor corporation or its parent equal in Fair Market Value to the per share consideration received by holders of Common Stock in the merger or sale of assets.

  
 12. Date of Grant. The date of grant of an Option or
Right shall be, for all purposes, the date on which the Committee makes the determination granting such Option or Right, or such other later date as is determined by the Committee. Notice of the determination shall be provided to each Optionee
within a reasonable time after the date of such grant. 
  
 13.
Amendment and Termination of the Plan. 
  
 (a)
Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 
  
 (b) Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Company, which agreement must be in writing and signed by the Optionee and the Company. 

 14. Conditions Upon Issuance of Shares. 
  
 (a) Legal Compliance. Shares shall not be issued pursuant to the
exercise of an Option or Right unless the exercise of such Option or Right and the issuance and delivery of such shares shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, Applicable Laws, and the requirements of any stock exchange or quotation system upon which the shares may then be listed or quoted, and shall be further subject to the approval of
counsel for the Company with respect to such compliance. 
  
 (b)
Investment Representations. As a condition to the exercise of an Option or Right, the Company may require the person exercising such Option or Right to represent and warrant at the time of any such exercise that the shares are being purchased
only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required. 
  
 15. Liability of Company. The inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to
which such requisite authority shall not have been obtained. 
  
 16. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 17. Financial Statements. The Company shall provide financial
statements at least annually to each eligible participant during the period such person has one or more Options outstanding, and in the case of an individual who acquired Common Stock pursuant to the Plan, during the period such individual owns such
Common Stock. The Company shall not be required to provide such information if the issuance of awards under the Plan is limited to key employees whose duties in connection with the Company assure their access to equivalent information. 

 
 18. Definitions. As used herein, the following definitions shall
apply: 
  
 (a) “Applicable Laws” means all
applicable law, including without limitation, the Code, Delaware General Corporation Law, and applicable federal and state securities laws. 
  
 (b) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (c) “Common Stock” means the Common Stock of SGI. 

 (d) “Company” means Silicon Graphics, Inc., and any entity that is directly or
indirectly controlled by the Company, or any entity in which the Company has a significant equity interest, as determined by the Committee. 
  
 (e) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 
  
 (f) “Eligible Employee” means an Employee who is not a
vice-president or more senior Employee. 
  
 (g)
“Employee” means any person employed by the Company. 
  
 (h) “Fair Market Value” means, as of any date, the closing price for a share of Common Stock as reported daily in The Wall Street Journal or a similar readily available public source. If no sales of shares were made on such
date, the closing price of a share as reported for the preceding day on which sale of shares were made shall be used. 
  
 (i) “Notice of Grant” means a written notice evidencing certain terms and conditions of an individual Option or Stock Award grant. The
Notice of Grant is part of the Option Agreement and the Stock Award Agreement. 
  
 (j) “Option” means a nonstatutory stock option granted pursuant to the Plan. 
  
 (k) “Option Agreement” means a written agreement between the Company and an Optionee evidencing the terms and conditions of an individual
Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
  
 (l) “Optioned Stock” means the Common Stock subject to an Option or Right. 
  
 (m) “Optionee” means an Employee who holds an outstanding Option or Right. 
  
 (n) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in
Section 424(e) of the Code, or any successor provision. 
  
 (o) “Stock Award” means an award made or denominated in shares or equivalent in value to shares pursuant to Section 8 of the Plan. 
  
 (p) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as
defined in Section 424(f) of the Code, or any successor provision.

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