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<TITLE>Filed by Bowne Pure Compliance</TITLE>
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<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): October 17, 2008</B>


<P style="font-size: 24pt" align="center"><B>Silicon Mountain Holdings,
Inc.<BR>
</B><FONT style="font-size: 10pt">(Exact name of registrant as
specified in its charter) </FONT>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>Colorado</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>000-11284</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>84-0910490</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

</TABLE>
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cellpadding="0" width="100%" border="0">

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  <TD width="49%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="49%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>4755 Walnut Street, Boulder,
Colorado <BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>80301</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(303) 938-1155</B>
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cellpadding="0" width="30%" border="0">

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  <TD width="100%">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: #000000 1px solid" nowrap><B>N/A<BR>
</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


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<P style="font-size: 10pt" align="left"><B>&nbsp;</B>
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<DIV
style="margin-left: 0px; text-indent: 0px"><B>Item&nbsp;1.01.</B>&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left"><B>Entry into a Material Definitive
Agreement.</B></TD>
 </TR>
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</DIV>

<P style="font-size: 10pt" align="left"><U>Agreement with Laurus Master Fund,
Ltd.</U>

<P style="font-size: 10pt" align="left">On October&nbsp;17, 2008, Silicon
Mountain Holdings, Inc., a Colorado corporation (the &#8220;Company&#8221;),
and two of its wholly-owned subsidiaries, Silicon Mountain Memory, Incorporated
(&#8220;Memory&#8221;), and VCI Systems, Inc. (referred to, together with the
Company and Memory, as the &#8220;Companies&#8221;), entered into an Second
Amended and Restated Overadvance Side Letter Agreement (the &#8220;Second
Amended Side Letter&#8221;) with Laurus Master Fund, Ltd.
(&#8220;Laurus&#8221;), Valens U.S. SPV I, LLC (&#8220;Valens U.S.&#8221;), LV
Administrative Services, Inc. as agent (&#8220;Agent&#8221;), Valens Offshore
SPV I, Ltd. (&#8220;Valens Offshore&#8221;) and PSource Structured Debt Limited
(&#8220;PSource&#8221;, and, together with Laurus, Valens U.S., Agent and
Valens Offshore, referred to as the &#8220;Holders&#8221;), to be effective
October&nbsp;14, 2008.

<P style="font-size: 10pt" align="left">Pursuant to the Second Amended Side
Letter, Laurus has agreed to extend to the Companies an additional $792,850 in
excess of the amount currently permissible under the Revolving Note (as defined
below), as modified by the Original Side Letter and the Amended Side Letter (as
defined below), for an aggregate excess amount equal to $1,842,850. Also
pursuant to the Second Amended Side Letter, Agent will be issued a warrant to
purchase up to 2,145,743 shares of common stock of the Company with an exercise
price of $0.01 per share, and Agent will be issued a warrant to purchase up to
10% (on a fully diluted basis) of the outstanding shares of common stock of
Memory (as determined at the date of the exercise) with an exercise price of
$0.01 per share.

<P style="font-size: 10pt" align="left">The Second Amended Side Letter amends
and restates the Overadvance Side Letter Agreement dated as of March&nbsp;14,
2008 (the &#8220;Original Side Letter&#8221;) and the Amended and Restated
Overadvance Side Letter Agreement dated April&nbsp;15, 2008 (the &#8220;Amended
Side Letter&#8221;) each between the Companies and the Holders. Pursuant to the
Original Side Letter, Laurus had agreed to extend to the Companies $300,000 in
excess of the amount then permissible under the Secured Revolving Note dated
September&nbsp;25, 2006 (the &#8220;Revolving Note&#8221;) and pursuant to the
Amended Side Letter, Laurus had agreed to extend to the Companies an additional
$750,000. A copy of the Original Side Letter was included as Exhibit&nbsp;10.3
to the Company&#8217;s Current Report on Form 8-K filed on March&nbsp;20, 2008.
A copy of the Amended Side Letter was included as Exhibit&nbsp;10.22 to the
Company&#8217;s Amendment No.&nbsp;1 to its Annual Report on Form 10-KSB filed
on May&nbsp;19, 2008. A copy of the Revolving Note was included as
Exhibit&nbsp;10.9 to the Company&#8217;s Current Report on Form 8-K filed on
September&nbsp;4, 2007.
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<DIV
style="margin-left: 0px; text-indent: 0px"><B>Item&nbsp;3.02.</B>&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left"><B>Unregistered Sales of Equity
Securities.</B></TD>
 </TR>
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</DIV>

<P style="font-size: 10pt" align="left">To the extent applicable, the
information provided under Item&nbsp;1.01 above is hereby incorporated into
this Item&nbsp;3.02 by reference. The issuance of the warrants described in
this paragraph is exempt from registration under the Securities Act of 1933
pursuant to Section&nbsp;4(2) thereof. Only an accredited investor is to
receive the securities, and the Company did not engage in any general
solicitation or advertising to market the securities.

<P style="font-size: 10pt" align="center">2

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">2
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<P style="font-size: 10pt" align="left"><B>&nbsp;</B>

<P style="font-size: 10pt" align="center"><U>SIGNATURES</U>

<P style="font-size: 10pt; text-indent: 1%"
align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
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<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp; </TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
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  <TD valign="top">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left" colspan="3">SILICON MOUNTAIN HOLDINGS, INC.</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp; </TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
 </TR>
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  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Signature:&nbsp; </TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">/s/ Rudolph (Tr&#233;) A. Cates, III</TD>
 </TR>
 <TR style="font-size: 1px">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD style="border-top: #000000 1px solid" valign="top"
align="left">&nbsp;</TD>
 </TR>
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  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Name:&nbsp;&nbsp; </TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Rudolph (Tr&#233;) A. Cates, III&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">Dated: October&nbsp;23,
2008&nbsp; </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Title:&nbsp;&nbsp; </TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">President &amp; Chief Executive
Officer&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">&nbsp;</TD>
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<P style="font-size: 10pt" align="center">3

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">3
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Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): October 17, 2008
Silicon Mountain Holdings,
Inc.
(Exact name of registrant as
specified in its charter)
Colorado
000-11284
84-0910490
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
4755 Walnut Street, Boulder,
Colorado
80301
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number,
including area code:
(303) 938-1155
N/A
(Former name or former address if changed since last report.)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01.
Entry into a Material Definitive
Agreement.
Agreement with Laurus Master Fund,
Ltd.
On October 17, 2008, Silicon
Mountain Holdings, Inc., a Colorado corporation (the "Company"),
and two of its wholly-owned subsidiaries, Silicon Mountain Memory, Incorporated
("Memory"), and VCI Systems, Inc. (referred to, together with the
Company and Memory, as the "Companies"), entered into an Second
Amended and Restated Overadvance Side Letter Agreement (the "Second
Amended Side Letter") with Laurus Master Fund, Ltd.
("Laurus"), Valens U.S. SPV I, LLC ("Valens U.S."), LV
Administrative Services, Inc. as agent ("Agent"), Valens Offshore
SPV I, Ltd. ("Valens Offshore") and PSource Structured Debt Limited
("PSource", and, together with Laurus, Valens U.S., Agent and
Valens Offshore, referred to as the "Holders"), to be effective
October 14, 2008.
Pursuant to the Second Amended Side
Letter, Laurus has agreed to extend to the Companies an additional $792,850 in
excess of the amount currently permissible under the Revolving Note (as defined
below), as modified by the Original Side Letter and the Amended Side Letter (as
defined below), for an aggregate excess amount equal to $1,842,850. Also
pursuant to the Second Amended Side Letter, Agent will be issued a warrant to
purchase up to 2,145,743 shares of common stock of the Company with an exercise
price of $0.01 per share, and Agent will be issued a warrant to purchase up to
10% (on a fully diluted basis) of the outstanding shares of common stock of
Memory (as determined at the date of the exercise) with an exercise price of
$0.01 per share.
The Second Amended Side Letter amends
and restates the Overadvance Side Letter Agreement dated as of March 14,
2008 (the "Original Side Letter") and the Amended and Restated
Overadvance Side Letter Agreement dated April 15, 2008 (the "Amended
Side Letter") each between the Companies and the Holders. Pursuant to the
Original Side Letter, Laurus had agreed to extend to the Companies $300,000 in
excess of the amount then permissible under the Secured Revolving Note dated
September 25, 2006 (the "Revolving Note") and pursuant to the
Amended Side Letter, Laurus had agreed to extend to the Companies an additional
$750,000. A copy of the Original Side Letter was included as Exhibit 10.3
to the Company's Current Report on Form 8-K filed on March 20, 2008.
A copy of the Amended Side Letter was included as Exhibit 10.22 to the
Company's Amendment No. 1 to its Annual Report on Form 10-KSB filed
on May 19, 2008. A copy of the Revolving Note was included as
Exhibit 10.9 to the Company's Current Report on Form 8-K filed on
September 4, 2007.
Item 3.02.
Unregistered Sales of Equity
Securities.
To the extent applicable, the
information provided under Item 1.01 above is hereby incorporated into
this Item 3.02 by reference. The issuance of the warrants described in
this paragraph is exempt from registration under the Securities Act of 1933
pursuant to Section 4(2) thereof. Only an accredited investor is to
receive the securities, and the Company did not engage in any general
solicitation or advertising to market the securities.
2
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
SILICON MOUNTAIN HOLDINGS, INC.
Signature:
/s/ Rudolph (Tré) A. Cates, III
Name:
Rudolph (Tré) A. Cates, III
Dated: October 23,
2008
Title:
President & Chief Executive
Officer
3