Senior Secured Credit Agreement (2006)Full Document 

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$115,000,000

SENIOR SECURED CREDIT AGREEMENT

by and among

SILICON GRAPHICS, INC.,

together with the Subsidiaries that are signatories hereto,

as Borrowers,

and

the other Credit Parties hereto from time to time,

as Guarantors

and

the LENDERS party hereto from time to time,

and

MORGAN STANLEY SENIOR FUNDING, INC.,

as Administrative Agent, Bookrunner and Lead Arranger,

and

GENERAL ELECTRIC CAPITAL CORPORATION,

as Revolving Agent, Syndication Agent and Collateral Agent.

Dated as of October 17, 2006


TABLE OF CONTENTS

 

          Page

Article I THE FACILITY

   2

Section 1.01.

  

Revolving Advances

   2

Section 1.02.

  

Letter of Credit Facility

   4

Section 1.03.

  

Term Loans

   4

Section 1.04.

  

Use of Proceeds

   7

Section 1.05.

  

Protective Advances

   7

Section 1.06.

  

Promise to Pay

   7

Section 1.07.

  

Notes

   7

Section 1.08.

  

Authorized Officers and Revolving Agent

   8

Section 1.09.

  

Joint and Several Liability of Borrowers

   9

Section 1.10.

  

Allocation of Payments and Proceeds of Collateral

   9

Section 1.11.

  

Limitations on LIBOR Loans

   11

Section 1.12.

  

Swap Related Reimbursement Obligations

   11

Article II PAYMENTS AND OTHER COMPENSATION

   12

Section 2.01.

  

Voluntary Prepayments/Reductions of Commitments

   12

Section 2.02.

  

Mandatory Prepayments

   13

Section 2.03.

  

Prepayment Premiums

   15

Section 2.04.

  

Payments

   16

Section 2.05.

  

Taxes

   17

Article III INTEREST

   20

Section 3.01.

  

Interest on the Loans and Other Obligations

   20

Section 3.02.

  

Conversion or Continuation

   21

Section 3.03.

  

Break Funding Payments

   22

Section 3.04.

  

Increased Costs; Illegality

   22

Section 3.05.

  

Mitigation Obligations

   24

Section 3.06.

  

Fees

   24

Article IV CONDITIONS TO LOANS

   25

Section 4.01.

  

Conditions Precedent to the Initial Loans

   25

Section 4.02.

  

Conditions Precedent to Revolving Advances and Issuances of Letters of Credit

   32

Article V REPRESENTATIONS AND WARRANTIES

   33

Section 5.01.

  

Representations and Warranties

   33

Article VI REPORTING COVENANTS

   43

Section 6.01.

  

Financial Statements

   43

Section 6.02.

  

Other Financial Information

   45

Section 6.03.

  

Defaults, Events of Default

   46

Section 6.04.

  

Lawsuits

   46

Section 6.05.

  

Insurance

   46

Section 6.06.

  

Environmental Notices

   46

Section 6.07.

  

Labor Matters

   47

Section 6.08.

  

Other Information

   47

 

- i -


TABLE OF CONTENTS

(continued)

 

          Page

Article VII AFFIRMATIVE COVENANTS

   48

Section 7.01.

  

Compliance with Laws and Contractual Obligations

   48

Section 7.02.

  

Payment of Taxes and Claims

   48

Section 7.03.

  

Conduct of Business and Preservation of Corporate Existence

   48

Section 7.04.

  

Field Examination; Real Estate Asset Appraisal; Other Appraisals; Lender Meeting

   49

Section 7.05.

  

Maintenance of Properties

   50

Section 7.06.

  

Transactions with Related Parties

   50

Section 7.07.

  

Further Assurances

   50

Section 7.08.

  

Additional Security; Additional Guaranties; Further Assurances

   51

Section 7.09.

  

Powers; Conduct of Business

   53

Section 7.10.

  

Use of Proceeds

   53

Section 7.11.

  

Obtaining of Permits, Etc.

   53

Section 7.12.

  

Environmental

   53

Section 7.13.

  

Fiscal Year

   53

Section 7.14.

  

Condemnation

   53

Section 7.15.

  

Maintenance of Insurance

   54

Section 7.16.

  

Change in Collateral; Collateral Records

   54

Section 7.17.

  

Payment of Contractual Obligations

   54

Section 7.18.

  

Formation of Subsidiaries

   55

Section 7.19.

  

Cash Management.

   55

Section 7.20.

  

Location of Inventory and Equipment

   56

Section 7.21.

  

Post-Closing Matters

   56

Section 7.22.

  

Threshold Inventory

   56

Article VIII NEGATIVE COVENANTS

   56

Section 8.01.

  

Liens

   56

Section 8.02.

  

Indebtedness

   57

Section 8.03.

  

Restrictions on Fundamental Changes

   57

Section 8.04.

  

Asset Dispositions, Etc.

   57

Section 8.05.

  

Limitation on Issuance of Capital Stock

   58

Section 8.06.

  

Limitations on Dividends and Distributions and Other Payment Restrictions Affecting Subsidiaries

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