Exhibit 10.1

                              Cray 2006 Bonus Plan


     The Cray 2006 Bonus Plan, as applicable to executives and other officers,
is based 75% upon the Company's consolidated results from operations (before
taxes, interest and foreign currency effects), adjusted as described below, and
25% on personal goals. No bonus will be paid unless results from operations
reach a base level set by the Board, exclusive of any bonus. In addition, no
bonus will be paid unless 2006 bookings (defined as firm contracts for new
product sales available to be recognized as revenue prior to December 31, 2007,
which are contracted for in 2006), reach a pre-determined minimum level. Each
participant in the Cray 2006 Bonus Plan is assigned a percentage of the
participant's base salary as his/her target bonus, as approved by the Board.

     Bonus would be payable at 25% of target bonus once the adjusted results
from operations reach a pre-approved minimum level and other conditions are met,
and increase up to 150% of the target bonus as specified levels of adjusted
results from operations established by the Board are reached. Bonuses cannot
exceed more than 100% of target bonus unless 2006 bookings are at least at a
pre-determined level (higher than the thresh-hold level). Any bonus higher than
150% of target bonus is at the Board's discretion.

     For purposes of calculating the results from operations, any charges due to
SFAS 123(R) stock compensation, restructuring, 401(k), variable pay, bonus and
retention incentives, are excluded. To the extent there are other unplanned
significant transactions or charges, then the Compensation Committee would
determine what adjustments, if any, are appropriate in determining the results
from operations for purposes of determining the bonuses.

     The Chief Executive Officer, subject to final approval by the Compensation
Committee, would retain the right to adjust the formula bonus (from 0% to 125%)
for each officer. The Board approves the final bonus for the Chief Executive
Officer.