EXHIBIT 10.1

 

THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Third Amendment”) is made as of
the 9th day of September, 2003, by and among URBAN OUTFITTERS, INC., a
Pennsylvania corporation (“Urban”), and the subsidiaries of Urban listed on
Schedule 1 to the Credit Agreement (as defined below) (together with Urban,
individually and collectively, the “Borrowers”), WACHOVIA BANK, NATIONAL
ASSOCIATION (formerly known as First Union National Bank), as administrative
agent for the Lenders (“Administrative Agent”), JPMORGAN CHASE BANK, as a Lender
and an Issuing Bank, and the other Lenders from time to time party to the Credit
Agreement.

 

BACKGROUND

 

Borrowers and Administrative Agent entered into a Credit Agreement dated
September 12, 2001, as amended by the First Amendment to Credit Agreement and
Guaranty Agreement dated September 11, 2002 and as further amended by the Second
Amendment to Credit Agreement dated November 15, 2002 (as so amended and as may
be further amended, restated or modified from time to time, including by this
Third Amendment, the “Credit Agreement”) to fund the Borrowers’ working capital
and general corporate requirements and support the issuance of letters of credit
for the account of any Borrower.

 

Borrowers, Lenders and Administrative Agent have agreed to certain amendments to
the Credit Agreement, each as set forth herein and subject to the terms and
conditions hereof.

 

In consideration of the foregoing and the premises and the agreements
hereinafter set forth, and intending to be legally bound hereby, effective as of
the Third Amendment Effective Date (as defined below), the parties hereto agree
as follows:

 

1. Definitions.

 

a. General Rule. Unless otherwise defined herein, terms used herein which are
defined in the Credit Agreement shall have the respective meanings assigned to
such terms in the Credit Agreement.

 

b. Additional Definitions. The following definitions are hereby added to Section
1.1 of the Credit Agreement in proper alphabetical order to read as follows:

 

“Third Amendment” means the Third Amendment to Credit Agreement by and among
Borrowers, Lenders and Administrative Agent dated September 9, 2003.

 

“Third Amendment Effective Date” means the date on which the conditions set
forth in Paragraph 9 of the Third Amendment have been satisfied.

 

2. Amendment of Schedule 2 (Lenders and Commitments) of the Credit Agreement and
Section 13 of the Guaranty. The contact information for Wachovia set forth on
Schedule 2 to the

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Credit Agreement (Lenders and Commitments) and for the Administrative Agent set
forth in Section 13 of the Guaranty each are amended to read as follows:

 

Wachovia Bank, National Association

123 South Broad Street, 14th Floor (PA1202)

Philadelphia, PA 19109

Attention: Stephen T. Dorosh, Vice President

 

Telephone No.: (215) 670-6577

Telecopy No.: (215) 670-6543

 

3. Amendment to Section 2.6(a) of the Credit Agreement (Termination of the
Aggregate Commitment). The reference in Section 2.6(a) of the Credit Agreement
to “September 10, 2003” shall be deleted and replaced by “September 8, 2004”.

 

4. Amendment to Section 3.1(b)(vi) of the Credit Agreement (L/C Commitment. The
reference in Section 3.1(b)(vi) of the Credit Agreement to “Ten Million Dollars
($10,000,000)” shall be deleted and replaced by “Fifteen Million Dollars
($15,000,000)”.

 

5. Amendment to Section 10.1 of the Credit Agreement (Limitations on Debt).
Section 10.1 of the Credit Agreement is hereby amended so that:

 

a. The word “and” is deleted from the end of subsection (g) thereof;

 

b. The period appearing at the end of subsection (h) thereof is deleted and
replaced by “; and”; and

 

c. A new subsection (i) is inserted to read in its entirety as follows:

 

“(i) so long as no Event of Default has occurred and is continuing or would
result therefrom, unsecured Debt of Borrowers and their Subsidiaries in an
aggregate principal amount not to exceed $500,000 at any time outstanding,
provided that such Debt is not senior in right of payment to the payment of the
Debt arising under this Agreement and the other Loan Documents;”

 

6. Amendment to Section 10.7(c) of the Credit Agreement (Limitations on
Dividends and Distributions). Section 10.7(c) of the Credit Agreement shall be
amended and restated in its entirety to read as follows:

 

“(c) with the approval of the board of directors of Urban, Urban may: (i)
repurchase shares of its capital stock, provided that the Fixed Charge Coverage
Ratio of Urban and its Consolidated Subsidiaries as of the most recently ended
fiscal quarter is not less than 2.00 to 1.00, and that each such repurchase of
shares of capital stock would not cause the Fixed Charge Coverage Ratio to be
less than the minimum required to be maintained for the next succeeding fiscal
quarter; and (ii) repurchase fractional shares of its capital stock in
connection with any stock split or reverse stock split of Urban’s capital stock,
the purchase price (based on fair market value) of which does not exceed
$1,000,000 in the aggregate from and after the Third Amendment Effective Date.”

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7. Amendment to Section 10.13 of the Credit Agreement (Limitations on Capital
Expenditures Payments). Section 10.13 of the Credit Agreement shall be amended
and restated in its entirety to read as follows:

 

“Section 10.13. Capital Expenditures Payments. Make Capital Expenditure Payments
exceeding: (i) $50,000,000 in the aggregate in the Fiscal Year ending January
31, 2004; and (ii) $55,000,000 in the aggregate in the Fiscal Year ending
January 31, 2005.”

 

8. Representations and Warranties. Borrowers hereby represent and warrant to
Lenders as follows:

 

a. Representations. As of the Third Amendment Effective Date the Borrowers
represent and warrant as follows: (i) the representations and warranties set
forth in Article VI of the Credit Agreement are true and correct in all material
respects, except for any representation or warranty made as of a specific date,
which representation and warranty shall remain true and correct as of such
specific date; (ii) there is no Event of Default or Default under the Credit
Agreement, as amended hereby, which has not been cured or waived; and (iii) no
Borrower is aware of any Material Adverse Effect.

 

b. Power and Authority. Each Borrower has the power and authority under the laws
of its jurisdiction of formation and under its respective formation documents to
enter into and perform this Third Amendment and the other documents and
agreements required hereunder (collectively, the “Amendment Documents”); all
necessary actions (corporate or otherwise) for the execution and performance by
each Borrower of the Amendment Documents have been taken; and each of the
Amendment Documents and the Credit Agreement, as amended, constitute the valid
and binding obligations of Borrowers, enforceable in accordance with its
respective terms.

 

c. No Violations of Law or Agreements. The execution and performance of the
Amendment Documents by Borrowers will not: (i) violate any provisions of any law
or regulation, federal, state, local, or foreign, or any formation document of
any Borrower or (ii) result in any breach or violation of, or constitute a
default or require the obtaining of any consent under, any material agreement or
instrument by which any Borrower or its property may be bound.

 

9. Conditions to Effectiveness of Third Amendment. This Third Amendment shall be
effective upon the date of Administrative Agent’s receipt of the following
documents and other items, each in form and substance reasonably satisfactory to
Administrative Agent:

 

a. Third Amendment. This Third Amendment duly executed by Borrowers, Lenders and
Administrative Agent;

 

b. Stock Split Documents. Copies of board resolutions and other documentation
relating to the two-for-one split of Urban’s common stock for which shares will
be distributed on or about September 19, 2003;

 

c. Other Documents. Such additional documents as Administrative Agent may
reasonably request, including without limitation a good standing certificate for
Urban from its jurisdiction of incorporation and such secretary’s and incumbency
certificates as may be requested by the Administrative Agent; and

 

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d. Administration Fee. Payment to the Administrative Agent, for its own account,
of an administration fee of $15,000 for the period from the Third Amendment
Effective Date through September 8, 2004, which administration fee is
non-refundable and shall be deemed fully earned when paid.

 

10. Affirmations. Borrowers hereby: (a) affirm all the provisions of the Credit
Agreement, as amended by this Third Amendment, and (b) agree that the terms and
conditions of the Credit Agreement shall continue in full force and effect as
amended hereby.

 

11. Guarantors. The Guarantors, as evidenced by their signature below, hereby:
(a) affirm all the provisions of the Credit Agreement, as amended by this Third
Amendment, (b) agree that the terms and conditions of the Credit Agreement shall
continue in full force and effect as amended hereby and (c) agree that the terms
and conditions of the Guaranty Agreement, as amended and supplemented, and as
amended hereby, shall continue in full force and effect.

 

12. Miscellaneous.

 

a. Borrowers agree to pay or reimburse Administrative Agent for all reasonable
fees and expenses (including without limitation reasonable fees and expenses of
counsel) incurred by Administrative Agent in connection with the preparation,
execution and delivery of this Third Amendment.

 

b. This Third Amendment shall be governed by and construed in accordance with
the laws of the Commonwealth of Pennsylvania, without regard to conflicts of law
or choice of law principles.

 

c. This Third Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and shall be binding upon all
parties, their successors and assigns, and all of which taken together shall
constitute one and the same agreement.

 

d. Except as expressly set forth herein, the execution, delivery and performance
of this Third Amendment shall not operate as a waiver of any right, power or
remedy of Administrative Agent, any Issuing Lender, or Lenders under the Credit
Agreement and the agreements and documents executed in connection therewith or
constitute a waiver of any provision thereof.

 

[Signature pages follow.]

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IN WITNESS WHEREOF, the undersigned have executed this Third Amendment the day
and year first above written.

 

Borrowers:

URBAN OUTFITTERS, INC.,

as a Borrower

By:

 

/s/  Richard A. Hayne

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Name:    Richard A. Hayne

   

Title:      President

UO FENWICK, INC.,

as a Borrower

By:

 

/s/  Kenneth J. Kubacki

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Name:    Kenneth J. Kubacki

   

Title:      President

INTER-URBAN, INC.,

as a Borrower

By:

 

/s/  Kenneth J. Kubacki

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Name:    Kenneth J. Kubacki

   

Title:      President

URBAN OUTFITTERS (DELAWARE), INC.,

as a Borrower

By:

 

/s/  Glen A. Bodzy

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Name:    Glen A. Bodzy

   

Title:      Secretary

ANTHROPOLOGIE (DELAWARE), INC.,

as a Borrower

By:

 

/s/  Glen A. Bodzy

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Name:    Glen A. Bodzy

   

Title:      Secretary

 

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URBAN OUTFITTERS UK LIMITED,

as a Borrower

By:

 

/s/  Richard A. Hayne

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Name:    Richard A. Hayne

   

Title:      Director

By:

 

/s/  Glen A. Bodzy

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Name:    Glen A. Bodzy

   

Title:      Director

URBAN OUTFITTERS IRELAND LIMITED,

as a Borrower

By:

 

/s/  Richard A. Hayne

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Name:    Richard A. Hayne

   

Title:      Director

By:

 

/s/  Glen A. Bodzy

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Name:    Glen A. Bodzy

   

Title:      Director

Lenders:

WACHOVIA BANK, NATIONAL ASSOCIATION (f/k/a First Union National Bank),

as a Lender, Issuing Lender and as Administrative Agent

By:

 

/s/  Stephen T. Dorosh

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Name:    Stephen T. Dorosh

   

Title:      Vice President

JPMORGAN CHASE BANK, as a Lender and Issuing

Lender

By:

 

/s/  Meredith L. Vanden Handel

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Name:    Meredith L. Vanden Handel

   

Title:      Vice President

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Guarantors:

ANTHROPOLOGIE, INC.,

as a Guarantor

By:

 

/s/  Richard A. Hayne

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Name:

 

Richard A. Hayne

   

Title:

 

Vice President

URBAN OUTFITTERS WHOLESALE, INC.,

as a Guarantor

By:

 

/s/  Richard A. Hayne

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Name:

 

Richard A. Hayne

   

Title:

 

President

URBAN OUTFITTERS DIRECT, LLC,

as a Guarantor

By:

 

/s/  Glen A. Bodzy

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Name:

 

Glen A. Bodzy

   

Title:

 

Secretary

ANTHROPOLOGIE DIRECT, LLC,

as a Guarantor

By:

 

/s/  Glen A. Bodzy

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Name:

 

Glen A. Bodzy

   

Title:

 

Secretary

U.O.D., INC.,

as a Guarantor

By:

 

/s/  Kenneth J. Kubacki

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Name:

 

Kenneth J. Kubacki

   

Title:

 

President

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U.O.D. SECONDARY, INC.,

as a Guarantor

By:

 

/s/  Kenneth J. Kubacki

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Name:

 

Kenneth J. Kubacki

   

Title:

 

President

UOGC, INC.,

as a Guarantor

By:

 

/s/  Glen A. Bodzy

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Name:

 

Glen A. Bodzy

   

Title:

 

Secretary

URBAN OUTFITTERS WEST LLC,

as a Guarantor

By:

 

/s/  Glen A. Bodzy

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Name:

 

Glen A. Bodzy

   

Title:

 

Secretary

FREE PEOPLE LLC,

as a Guarantor

By:

 

/s/  Glen A. Bodzy

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Name:

 

Glen A. Bodzy

   

Title:

 

Secretary