as the Lead Borrower
as Administrative Agent, Swing Line Lender
and
L/C Issuer,
as Canadian Agent
GENERAL ELECTRIC CAPITAL CORPORATION
as Co-Collateral Agents,
as Syndication Agent
GE CAPITAL MARKETS, INC.
as Joint Lead Arrangers
and Joint Bookrunners
Section | Page | |||
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS | 1 | |||
1.01 Defined Terms | 1 | |||
1.02 Other Interpretive Provisions | 63 | |||
1.03 Accounting Terms; Currency Equivalents | 64 | |||
1.04 Rounding | 64 | |||
1.05 Times of Day | 64 | |||
1.06 Letter of Credit Amounts | 64 | |||
1.07 Certifications | 65 | |||
1.08 Currency Equivalents Generally | 65 | |||
1.09 Québec Matters | 65 | |||
ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS | 65 | |||
2.01 Committed Loans; Reserves | 65 | |||
2.02 Committed Borrowings, Conversions and Continuations of Committed Loans | 67 | |||
2.03 Letters of Credit | 70 | |||
2.04 Swing Line Loans | 75 | |||
2.05 Prepayments | 82 | |||
2.06 Termination or Reduction of Commitments | 83 | |||
2.07 Repayment of Loans | 84 | |||
2.08 Interest | 84 | |||
2.09 Fees | 85 | |||
2.10 Computation of Interest and Fees | 86 | |||
2.11 Evidence of Debt | 87 | |||
2.12 Payments Generally; Administrative Agent’s Clawback | 88 | |||
2.13 Sharing of Payments by Lenders | 89 | |||
2.14 Settlement Amongst Lenders | 90 | |||
2.15 Increase in Commitments | 91 | |||
2.16 CFC Payments | 93 | |||
ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY; APPOINTMENT OF LEAD BORROWER | 93 | |||
3.01 Taxes | 93 | |||
3.02 Illegality | 95 | |||
3.03 Inability to Determine Rates | 95 | |||
3.04 Increased Costs; Reserves on LIBO Rate Loans | 96 | |||
3.05 Compensation for Losses | 97 | |||
3.06 Mitigation Obligations; Replacement of Lenders | 98 | |||
3.07 Survival | 98 | |||
3.08 Designation of Lead Borrower as Borrowers’ Agent | 98 | |||
ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS | 99 | |||
4.01 Conditions of Initial Credit Extension | 99 | |||
4.02 Conditions to all Credit Extensions | 102 | |||
ARTICLE V REPRESENTATIONS AND WARRANTIES | 103 | |||
5.01 Existence, Qualification and Power | 103 | |||
(i) |
Section | Page | |||
5.02 Authorization; No Contravention | 103 | |||
5.03 Governmental Authorization; Other Consents | 104 | |||
5.04 Binding Effect | 104 | |||
5.05 Financial Statements; No Material Adverse Effect | 104 | |||
5.06 Litigation | 105 | |||
5.07 No Default | 105 | |||
5.08 Ownership of Property; Liens | 105 | |||
5.09 Environmental Compliance | 105 | |||
5.10 Insurance | 106 | |||
5.11 Taxes | 106 | |||
5.12 Plans | 106 | |||
5.13 Subsidiaries; Equity Interests | 107 | |||
5.14 Margin Regulations; Investment Company Act | 107 | |||
5.15 Disclosure | 107 | |||
5.16 Compliance with Laws | 107 | |||
5.17 Intellectual Property; Licenses, Etc. | 108 | |||
5.18 Labor Matters | 108 | |||
5.19 Security Documents | 108 | |||
5.20 Solvency | 109 | |||
5.21 Deposit Accounts; Credit Card Arrangements | 109 | |||
5.22 Brokers | 109 | |||
5.23 Customer and Trade Relations | 109 | |||
5.24 Material Contracts | 109 | |||
5.25 Casualty | 109 | |||
ARTICLE VI AFFIRMATIVE COVENANTS | 110 | |||
6.01 Financial Statements | 110 | |||
6.02 Certificates; Other Information | 111 | |||
6.03 Notices | 113 | |||
6.04 Payment of Obligations | 114 | |||
6.05 Preservation of Existence, Etc. | 114 | |||
6.06 Maintenance of Properties | 115 | |||
6.07 Maintenance of Insurance | 115 | |||
6.08 Compliance with Laws | 116 | |||
6.09 Books and Records | 116 | |||
6.10 Inspection Rights | 116 | |||
6.11 Use of Proceeds | 117 | |||
6.12 Additional Loan Parties | 117 | |||
6.13 Cash Management | 118 | |||
6.14 Information Regarding the Collateral | 120 | |||
6.15 Physical Inventories | 120 | |||
6.16 Environmental Laws | 121 | |||
6.17 Further Assurances | 121 | |||
6.18 Intentionally Omitted | 122 | |||
6.19 Material Contracts | 122 | |||
6.20 Canadian Pension Benefit Plans | 122 | |||
ARTICLE VII NEGATIVE COVENANTS | 122 | |||
7.01 Liens | 122 | |||
7.02 Investments | 123 | |||
7.03 Indebtedness | 123 | |||
(ii) |
Section | Page | |||
7.04 Fundamental Changes | 123 | |||
7.05 Dispositions | 124 | |||
7.06 Restricted Payments | 124 | |||
7.07 Prepayments of Indebtedness | 124 | |||
7.08 Change in Nature of Business | 125 | |||
7.09 Transactions with Affiliates | 125 | |||
7.10 Burdensome Agreements | 125 | |||
7.11 Use of Proceeds | 126 | |||
7.12 Amendment of Material Documents | 126 | |||
7.13 Fiscal Year | 126 | |||
7.14 Deposit Accounts; Credit Card Processors | 126 | |||
7.15 Financial Covenants | 126 | |||
ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES | 126 | |||
8.01 Events of Default | 126 | |||
8.02 Remedies Upon Event of Default | 129 | |||
8.03 Application of Funds | 130 | |||
8.04 Waivers By Loan Parties | 134 | |||
ARTICLE IX AGENTS AND LENDERS | 135 | |||
9.01 Appointment and Authority | 135 | |||
9.02 Rights as a Lender | 136 | |||
9.03 Exculpatory Provisions | 136 | |||
9.04 Reliance by Agents | 137 | |||
9.05 Delegation of Duties | 137 | |||
9.06 Resignation of Agents | 137 | |||
9.07 Non-Reliance on Agents, Canadian Agent and Other Lenders | 139 | |||
9.08 No Other Duties, Etc | 139 | |||
9.09 Administrative Agent May File Proofs of Claim | 139 | |||
9.10 Collateral and Guaranty Matters | 140 | |||
9.11 Notice of Transfer | 140 | |||
9.12 Reports and Financial Statements | 140 | |||
9.13 Agency for Perfection | 141 | |||
9.14 Indemnification of Agents and Canadian Agent | 142 | |||
9.15 Relation among Lenders | 142 | |||
9.16 Defaulting Lender | 142 | |||
9.17 Actions In Concert | 143 | |||
9.18 Collateral Issues | 143 | |||
ARTICLE X MISCELLANEOUS | 143 | |||
10.01 Amendments, Etc. | 143 | |||
10.02 Notices; Effectiveness; Electronic Communications | 145 | |||
10.03 No Waiver; Cumulative Remedies | 147 | |||
10.04 Expenses; Indemnity; Damage Waiver | 147 | |||
10.05 Reinstatement; Payments Set Aside | 148 | |||
10.06 Successors and Assigns | 149 | |||
10.07 Treatment of Certain Information; Confidentiality | 152 | |||
10.08 Right of Setoff | 153 | |||
10.09 Interest Rate Limitation | 153 | |||
10.10 Counterparts; Integration; Effectiveness | 153 | |||
10.11 Survival | 154 | |||
(iii) |
Section | Page | |||
10.12 Severability | 154 | |||
10.13 Replacement of Lenders | 154 | |||
10.14 Governing Law; Jurisdiction; Etc. | 155 | |||
10.15 Waiver of Jury Trial | 156 | |||
10.16 No Advisory or Fiduciary Responsibility | 156 | |||
10.17 USA PATRIOT Act Notice; Proceeds of Crime Act | 157 | |||
10.18 Foreign Asset Control Regulations | 157 | |||
10.19Error! Bookmark not defined | ||||
10.20 Time of the Essence | 157 | |||
10.21 Foreign Subsidiaries | 157 | |||
10.22 Press Releases | 157 | |||
10.23 Additional Waivers | 158 | |||
10.24 Judgment Currency | 159 | |||
10.25 No Strict Construction | 160 | |||
10.26 Attachments | 160 | |||
10.27 Conflict of Terms | 160 | |||
SIGNATURES | S-1 | |||
(iv) |
1.01 | Domestic Borrowers | |||
1.02 | Guarantors | |||
2.01 | Commitments and Applicable Percentages | |||
4.01(x) | Security Documents | |||
4.01(xi) | Other Loan Documents | |||
5.01 | Loan Parties’ Organizational Information | |||
5.01 | Material Indebtedness | |||
5.08(b)(1) | Owned Real Estate | |||
5.08(b)(2) | Leased Real Estate | |||
5.10 | Insurance | |||
0 | Subsidiaries, including Immaterial Subsidiaries; Other Equity Investments | |||
5.21(a) | DDAs | |||
5.21(b) | Credit Card Arrangements | |||
5.22 | Brokers | |||
5.24 | Material Contracts | |||
6.02 | Financial and Collateral Reporting | |||
0 | Existing Liens | |||
7.02 | Existing Investments | |||
0 | Existing Indebtedness | |||
10.02 | Administrative Agent’s Office; Canadian Agent’s Office; Certain Addresses for Notices |
Form of | ||
A-1 | Domestic Committed Loan Notice | |
A-2 | Canadian Committed Loan Notice | |
(v) |
Form of | ||
B-1 | Domestic Swing Line Loan Notice | |
B-2 | Canadian Swing Line Loan Notice | |
C-1 | Canadian Note | |
C-2 | Domestic Note | |
C-3 | Canadian Swing Line Note | |
C-4 | Domestic Swing Line Note | |
D | Compliance Certificate | |
E-1 | Assignment and Assumption (Domestic Lenders) | |
E-2 | Assignment and Assumption (Canadian Lenders) | |
F-1 | Joinder Agreement – Domestic Loan Parties | |
F-2 | Joinder Agreement – Canadian Loan Parties | |
G | Borrowing Base Certificate | |
H | Credit Card Processor Notification | |
I-1 | Collateral Access Agreement – Domestic Loan Parties | |
I-2 | Collateral Access Agreement – Canadian Loan Parties | |
J-1 | Customs Broker Agent Agreement (Domestic Loan Parties) | |
J-2 | Customs Broker Agent Agreement (Canadian Loan Parties) | |
K-1 | Domestic Guarantee | |
K-2 | Canadian Guarantee | |
(vi) |
DEFINITIONS AND ACCOUNTING TERMS
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Average Daily Domestic | LIBOR | Domestic Prime | Canadian Prime | BA Rate | ||||||||||||||
Level | Availability | Margin | Rate Margin | Rate Margin | Margin | |||||||||||||
I | Equal to or greater than 66% of the Total Loan Cap | 4.00 | % | 3.00 | % | 3.50 | % | 4.00 | % | |||||||||
II | Less than 66%, but equal to or greater than 33%, of the Total Loan Cap | 4.25 | % | 3.25 | % | 3.75 | % | 4.25 | % | |||||||||
III | Less than 33% of the Total Loan Cap | 4.50 | % | 3.50 | % | 4.00 | % | 4.50 | % |
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THE COMMITMENTS AND CREDIT EXTENSIONS
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Average Daily Total Domestic | ||||
Outstandings | Domestic Commitment Fee | |||
Less than 33% of Aggregate Domestic Commitments | 1.00 | % | ||
Greater than or equal to 33% but less than 66% of Aggregate Domestic Commitments | 0.75 | % | ||
Greater than or equal to 66% of Aggregate Domestic Commitments | 0.50 | % |
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Average Daily Total Canadian | ||||
Outstandings | Canadian Commitment Fee | |||
Less than 33% of Aggregate Canadian Commitments | 1.00 | % | ||
Greater than or equal to 33% but less than 66% of Aggregate Canadian Commitments | 0.75 | % | ||
Greater than or equal to 66% of Aggregate Canadian Commitments | 0.50 | % |
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TAXES, YIELD PROTECTION AND ILLEGALITY;
APPOINTMENT OF LEAD BORROWER
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CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
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REPRESENTATIONS AND WARRANTIES
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AFFIRMATIVE COVENANTS
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NEGATIVE COVENANTS
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EVENTS OF DEFAULT AND REMEDIES
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AGENTS AND LENDERS
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MISCELLANEOUS
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QUIKSILVER AMERICAS, INC., as the Lead Borrower | ||||
By: | ||||
Name: | ||||
Title: | ||||
DC SHOES, INC., as a Domestic Borrower | ||||
By: | ||||
Name: | ||||
Title: | ||||
HAWK DESIGNS, INC., as a Domestic Borrower | ||||
By: | ||||
Name: | ||||
Title: | ||||
MERVIN MANUFACTURING, INC., as a Domestic Borrower | ||||
By: | ||||
Name: | ||||
Title: | ||||
QS WHOLESALE, INC., as a Domestic Borrower | ||||
By: | ||||
Name: | ||||
Title: |
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QS RETAIL, INC., as a Domestic Borrower | ||||
By: | ||||
Name: | ||||
Title: | ||||
QUIKSILVER, INC., as a Guarantor | ||||
By: | ||||
Name: | ||||
Title: | ||||
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QUIKSILVER CANADA CORP., as the Canadian Borrower | ||||
By: | ||||
Name: | ||||
Title: | ||||
QS RETAIL CANADA CORP., as a Guarantor | ||||
By: | ||||
Name: | ||||
Title: | ||||
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BANK OF AMERICA, N.A., as Administrative Agent and as a Co-Collateral Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
BANK OF AMERICA, N.A.(acting through its Canada branch), as Canadian Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
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BANK OF AMERICA, N.A., as a Domestic Lender, L/C Issuer and Swing Line Lender | ||||
By: | ||||
Name: | ||||
Title: | ||||
BANK OF AMERICA, N.A.(acting through its Canada branch), as a Canadian Lender, L/C Issuer and Swing Line Lender | ||||
By: | ||||
Name: | ||||
Title: | ||||
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GENERAL ELECTRIC CAPITAL CORPORATION,as Co-Collateral Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
GENERAL ELECTRIC CAPITAL CORPORATION,as a Domestic Lender | ||||
By: | ||||
Name: | ||||
Title: | ||||
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GENERAL ELECTRIC CAPITAL CORPORATION,as a Canadian Lender | ||||
By: | ||||
Name: | ||||
Title: | ||||
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