##### 



EXHIBIT 10.1




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TABLE OF CONTENTS
 PageARTICLE I Definitions
    
    
    1SECTION 1.01. Defined Terms
    
    
    1SECTION 1.02. Classification of Loans and Borrowings
    
    
    30SECTION 1.03. Terms Generally
    
    
    31SECTION 1.04. Accounting Terms; GAAP
    
    
    31ARTICLE II The Credits
    
    
    31SECTION 2.01. Commitments
    
    
    31SECTION 2.02. Loans and Borrowings
    
    
    31SECTION 2.03. Requests for Revolving Borrowings
    
    
    32SECTION 2.04. [Intentionally Omitted.]
    
    
    33SECTION 2.05. Swingline Loans and Overadvances
    
    
    33SECTION 2.06. Letters of Credit
    
    
    35SECTION 2.07. Funding of Borrowings
    
    
    39SECTION 2.08. Interest Elections
    
    
    40SECTION 2.09. Termination and Reduction of Commitments
    
    
    41SECTION 2.10. Repayment of Loans; Evidence of Debt
    
    
    42SECTION 2.11. Prepayment of Loans
    
    
    43SECTION 2.12. Fees
    
    
    43SECTION 2.13. Interest
    
    
    45SECTION 2.14. Alternate Rate of Interest
    
    
    45SECTION 2.15. Increased Costs
    
    
    46SECTION 2.16. Break Funding Payments
    
    
    47SECTION 2.17. Taxes
    
    
    48SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
    
    
    50SECTION 2.19. Mitigation Obligations; Replacement of Lenders
    
    
    52SECTION 2.20. Expansion Option
    
    
    53ARTICLE III Representations and Warranties
    
    
    54SECTION 3.01. Organization; Powers; Subsidiaries
    
    
    54SECTION 3.02. Authorization; Enforceability
    
    
    54SECTION 3.03. Governmental Approvals; No Conflicts
    
    
    54SECTION 3.04. Financial Condition; No Material Adverse Change
    
    
    55SECTION 3.05. Properties
    
    
    55SECTION 3.06. Litigation and Environmental Matters
    
    
    55SECTION 3.07. Compliance with Laws and Agreements
    
    
    56SECTION 3.08. Investment Company Status
    
    
    56SECTION 3.09. Taxes
    
    
    56SECTION 3.10. ERISA
    
    
    56SECTION 3.11. Disclosure
    
    
    56SECTION 3.12. Federal Reserve Regulations
    
    
    57SECTION 3.13. No Default
    
    
    57
 - i -




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TABLE OF CONTENTS
 PageSECTION 3.14. [Intentionally Omitted]
    
    
    57SECTION 3.15. Solvency
    
    
    57SECTION 3.16. Insurance
    
    
    57SECTION 3.17. Security Interest in Collateral
    
    
    57SECTION 3.18. Credit Card Processors
    
    
    58ARTICLE IV Conditions
    
    
    58SECTION 4.01. Effective Date
    
    
    58SECTION 4.02. Each Credit Event
    
    
    60ARTICLE V Affirmative Covenants
    
    
    61SECTION 5.01. Financial Statements; Borrowing Base and Other Information
    
    
    61SECTION 5.02. Notices of Material Events
    
    
    64SECTION 5.03. Existence; Conduct of Business
    
    
    65SECTION 5.04. Payment of Obligations
    
    
    65SECTION 5.05. Maintenance of Properties
    
    
    66SECTION 5.06. Books and Records; Inspection Rights
    
    
    66SECTION 5.07. Compliance with Laws
    
    
    66SECTION 5.08. Use of Proceeds and Letters of Credit
    
    
    66SECTION 5.09. Insurance
    
    
    66SECTION 5.10. Casualty and Condemnation
    
    
    67SECTION 5.11. Field Examinations and Appraisals
    
    
    67SECTION 5.12. Depository Banks; Control Agreements
    
    
    68SECTION 5.13. Credit Card Processors
    
    
    68SECTION 5.14. Additional Collateral; Further Assurances
    
    
    69ARTICLE VI Negative Covenants
    
    
    70SECTION 6.01. Indebtedness
    
    
    70SECTION 6.02. Liens
    
    
    72SECTION 6.03. [Intentionally Omitted]
    
    
    73SECTION 6.04. Fundamental Changes
    
    
    73SECTION 6.05. Investments, Loans, Advances, Guarantees and Acquisitions
    
    
    74SECTION 6.06. Asset Sales
    
    
    75SECTION 6.07. Sale and Leaseback Transactions
    
    
    76SECTION 6.08. Swap Agreements
    
    
    76SECTION 6.09. Restricted Payments; Certain Payments of Indebtedness
    
    
    76SECTION 6.10. Transactions with Affiliates
    
    
    77SECTION 6.11. Restrictive Agreements
    
    
    78SECTION 6.12. Minimum Fixed Charge Coverage Ratio
    
    
    78ARTICLE VII Events of Default
    
    
    78ARTICLE VIII The Administrative Agent
    
    
    81
 - ii -




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TABLE OF CONTENTS
 PageARTICLE IX Miscellaneous
    
    
    84SECTION 9.01. Notices
    
    
    84SECTION 9.02. Waivers; Amendments
    
    
    85SECTION 9.03. Expenses; Indemnity; Damage Waiver
    
    
    87SECTION 9.04. Successors and Assigns
    
    
    89SECTION 9.05. Survival
    
    
    92SECTION 9.06. Counterparts; Integration; Effectiveness
    
    
    92SECTION 9.07. Severability
    
    
    92SECTION 9.08. Right of Setoff
    
    
    93SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
    
    
    93SECTION 9.10. WAIVER OF JURY TRIAL
    
    
    94SECTION 9.11. Headings
    
    
    94SECTION 9.12. Confidentiality
    
    
    94SECTION 9.13. USA PATRIOT Act
    
    
    95SECTION 9.14. Appointment for Perfection
    
    
    95SECTION 9.15. Interest Rate Limitation
    
    
    95SECTION 9.16. Waiver of California Suretyship Laws
    
    
    96
 - iii -




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TABLE OF CONTENTS
 SCHEDULES
 
 EXHIBITS
 
 - iv -




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Definitions
 Defined Terms
 ABR
 Account
 Account Debtor
 Adjusted LIBO Rate
 Administrative Agent
 Administrative Questionnaire
 Affiliate
 Aggregate Revolving Credit Exposure
 Alternate Base Rate 1 2




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Applicable Inventory Advance Rate
 Applicable Inventory Percentage
 Applicable Percentage
 Applicable Rate
 Eurodollar
    
    ABR
    
    Commercial LetterTrailing Average Quarterly Availability:
    
    Spread
    
    Spread
    
    of Credit RateLevel I: < $35,000,000
    
    
    1.75
    %
    
    
    0.75
    %
    
    
    0.70
    %Level II: > $35,000,000 but < $75,000,000
    
    
    1.50
    %
    
    
    0.50
    %
    
    
    0.60
    %Level III: > $75,000,000
    
    
    1.25
    %
    
    
    0.25
    %
    
    
    0.45
    %
  - 2 -




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Applicable Rate Certificate Exhibit G
 Approved Fund
 Assignment and Assumption Exhibit A
 Augmenting Lender
 Availability minus
 Availability Period
 Banking Services
 Banking Services Obligations
 Banking Services Reserves
 Board
 Borrower
 Borrowing
 Borrowing Base
 - 3 -




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plus
 plus
 plus
 minus
  Borrowing Base Certificate Exhibit F
 Borrowing Request
 Business Day Business Day
 Capital Expenditures
 Capital Lease Obligations
 - 4 -




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Cash Dominion Restoration Period
 Cash Dominion Triggering Event
 Change in Control provided however
 Change in Law
 Charges
 Chase
 - 5 -




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Class
 Code
 Collateral
 Collateral Access Agreement
 Collateral Documents
 Commitment Schedule
2.01
 Commitment Fee Rate
 Concentration Account
 Consolidated Capital Expenditures provided
 Consolidated EBITDAR plus minus
 - 6 -




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Consolidated Fixed Charges plus plus plus plus plus
 Consolidated Interest Expense minus
 Consolidated Net Income
 Consolidated Rent Expense
 Control
 Control Agreement
 - 7 -




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Credit Card Accounts
 Credit Card Processor
 Default
 Deposit Account
 Disclosed Matters Schedule 3.06
 Document
 Dollars $
 Domestic Subsidiary
 Effective Date
 Eligible Cash Specified Chase Accounts
 - 8 -




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Eligible Credit Card Accounts provided however
         Eligible Inventory
 - 9 -




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provided clause (g)
  - 10 -




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Eligible LC Inventory
 Environmental Laws
 Environmental Liability
 - 11 -




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Equity Interests
 ERISA
 ERISA Affiliate
 ERISA Event
 Eurodollar
 Event of Default
 Excluded Accounts
 - 12 -




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Excluded Taxes
 Existing Credit Agreement
 Existing Letters of Credit
 Federal Funds Effective Rate
 - 13 -




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Financial Covenant Period
 Financial Officer
 Fitch
 Fixed Charge Coverage Ratio minus
 Reference Period Material Acquisition Material Disposition
 - 14 -




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Fixed Charge Coverage Restoration Period
 Fixed Charge Coverage Ratio Triggering Event
 Foreign Lender
 Funding Accounts
 GAAP
 Governmental Authority
 Guarantee guarantor primary
obligor provided
 - 15 -




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Hazardous Materials
 Hostile Acquisition
 Increasing Lender
 Indebtedness
 Indemnified Taxes
 Information Memorandum
 Interest Election Request
 Interest Payment Date
 - 16 -




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Interest Period provided
 Inventory
 Investment
 Issuing Bank provided however
 - 17 -




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Joinder Agreements
 Kansas Distribution Facility
 Kansas IRB Documents
 Kansas IRB Financing
 Kansas IRB Unwind Transaction
 Landlord Lien State
 LC Collateral Account
 LC Disbursement
 LC Exposure
 - 18 -




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Leased Distribution Center
 Lenders Schedule 2.01
 Letter of Credit
 LIBO Rate LIBO Rate
 Lien
 Loan Documents
 - 19 -




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Loan Parties
 Loans
 Material Adverse Effect
 Material Indebtedness
 Maturity Date
 Maximum Rate
 Moodys
 Multiemployer Plan
 Net Orderly Liquidation Value Percentage
 Net Proceeds
 - 20 -




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Non-Cash Interest Expense
 Obligations
 Operating Lease
 Other Taxes
 Overadvance
 Participant
 Payment Intangible
 PBGC
 Permitted Acquisition
 - 21 -




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provided
  - 22 -




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Permitted Discretion
 Permitted Encumbrances
     - 23 -




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provided
 Permitted Investment Policy
 Permitted Investments
   - 24 -




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Person
 Plan
 - 25 -




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Prime Rate
 Processor Control Agreement/Letter
 Purchased Private Label Accounts
 Register
 Regulation S-X
 Related Line of Business
 - 26 -




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Related Parties
 Report
 Required Lenders
 Reserves
 Restricted Payment
 - 27 -




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Revolving Credit Exposure plus
 Revolving Loan
 S&P
 Secured Obligations provided
 Security Agreement
 Securities Account
 Specified Chase Accounts
 Statutory Reserve Rate
 - 28 -




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Subordinated Indebtedness
 subsidiary parent
 Subsidiary
 Subsidiary Guarantor Schedule 3.01
 Subsidiary Guaranty
 Supermajority Revolving Lenders
 Swap Agreement provided
 Swap Obligations
 - 29 -




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Swingline Exposure
 Swingline Lender
 Swingline Loan
 Syndication Agent
 Taxes
 Trailing Average Quarterly Availability
 Transactions
 Type
 UCC
 Unliquidated Obligations
 Withdrawal Liability
 Classification of Loans and Borrowings e.g. e.g. e.g. e.g. e.g. e.g.
 - 30 -




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Terms Generally
 Accounting Terms; GAAP provided
  The Credits
 Commitments
 Loans and Borrowings
 - 31 -




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provided
 provided
 provided provided
  Requests for Revolving Borrowings
   - 32 -




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Swingline Loans and Overadvances provided
   - 33 -




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mutatis mutandis
 Overadvances provided provided
  - 34 -




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Letters of Credit General Schedule 2.06 Existing Letters of Credit
 Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions
 Expiration Date
 - 35 -




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provided
 Participations
 Reimbursement provided mutatis mutandis
 - 36 -




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Obligations Absolute provided
 Disbursement Procedures
 - 37 -




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##### 



provided
 Interim Interest provided
 Replacement of Any Issuing Bank
 Cash Collateralization LC Collateral Account
 - 38 -




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provided
 Additional Issuing Banks Issuing Bank
 Confirmation of Existing Letters of Credit Issued Under Existing Credit Agreement
 Funding of Borrowings provided provided
 - 39 -




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Interest Elections
     - 40 -




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Termination and Reduction of Commitments
 provided
 provided
 - 41 -




---



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Repayment of Loans; Evidence of Debt th provided
    prima facie provided
  - 42 -




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Prepayment of Loans
    provided
 Fees
 - 43 -




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provided
   - 44 -




---



##### 



Interest
    provided
  Alternate Rate of Interest
   - 45 -




---



##### 



provided
 Increased Costs
      - 46 -




---



##### 



provided provided further
  Break Funding Payments
 - 47 -




---



##### 



Taxes provided
     - 48 -




---



##### 



- 49 -




---



##### 



Payments Generally; Pro Rata Treatment; Sharing of Set-offs
  first second third fourth fifth sixth seventh
 - 50 -




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##### 



eighth ninth tenth
   - 51 -




---



##### 



Mitigation Obligations; Replacement of Lenders
  - 52 -




---



##### 



provided
 Expansion Option Increasing Lender Augmenting Lender Exhibit C Exhibit D
 - 53 -




---



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Representations and Warranties
  Organization; Powers; Subsidiaries Schedule
3.01
 Authorization; Enforceability
 Governmental Approvals; No Conflicts
 - 54 -




---



##### 



Financial Condition; No Material Adverse Change
  Properties
  Litigation and Environmental Matters
 - 55 -




---



##### 



Compliance with Laws and Agreements
 Investment Company Status
 Taxes
 ERISA
 Disclosure
 - 56 -




---



##### 



Federal Reserve Regulations
 No Default
  Solvency
 Insurance Schedule 3.16
 Security Interest in Collateral
 - 57 -




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Credit Card Processors Schedule 3.18 Schedule 3.18
  Conditions
 Effective Date
  Exhibit B
  - 58 -




---



##### 



Exhibit E
     Funding Accounts
   - 59 -




---



##### 



Part A Schedule 3.18
  Each Credit Event
    - 60 -




---



##### 



Affirmative Covenants
  Financial Statements; Borrowing Base and Other Information
 provided however
 provided however
  - 61 -




---



##### 



provided
 Projections
 provided
   - 62 -




---



##### 



provided
 provided
 - 63 -




---



##### 



provided
 provided however
   Notices of Material Events
 - 64 -




---



##### 



Existence; Conduct of Business provided
 Payment of Obligations
 - 65 -




---



##### 



Maintenance of Properties
 Books and Records; Inspection Rights provided however
 Compliance with Laws
 Use of Proceeds and Letters of Credit
 Insurance provided
 - 66 -




---



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Casualty and Condemnation provided however
 Field Examinations and Appraisals provided
 provided however
 - 67 -




---



##### 



Depository Banks; Control Agreements
  provided
  Credit Card Processors Schedule 3.18 provided Schedule 3.18
 - 68 -




---



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Part A provided
 Additional Collateral; Further Assurances Exhibit A Annex
F Joinder Agreements Joinder Agreement
   - 69 -




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##### 



provided
  Negative Covenants
  Indebtedness
  Schedule 6.01
 provided
 provided
 - 70 -




---



##### 



provided
  provided
    ; provided
 - 71 -




---



##### 



Liens
   Schedule 6.02 provided
 provided
 - 72 -




---



##### 



provided
       Fundamental Changes
 - 73 -




---



##### 



,
  Investments, Loans, Advances, Guarantees and Acquisitions
   provided
    Schedule 6.05
  - 74 -




---



##### 



Purchased Private
Label Accounts provided
 Asset Sales
       provided
 - 75 -




---



##### 



provided
 Sale and Leaseback Transactions .
 Swap Agreements
 Restricted Payments; Certain Payments of Indebtedness
 - 76 -




---



##### 



Transactions with Affiliates
 - 77 -




---



##### 



Restrictive Agreements provided Schedule 6.11
 Minimum Fixed Charge Coverage Ratio Financial Covenant Period
  Events of Default
 Events of Default
  - 78 -




---



##### 



;
      - 79 -




---



##### 



- 80 -




---



##### 



provided
  The Administrative Agent
   - 81 -




---



##### 



- 82 -




---



##### 



provided
 - 83 -




---



##### 



Miscellaneous
 Notices
  th ,
 th , ,
 th ,
   - 84 -




---



##### 



provided
  Waivers; Amendments
 provided
 - 85 -




---



##### 



provided further
  - 86 -




---



##### 



provided
 Expenses; Indemnity; Damage Waiver
     - 87 -




---



##### 



Indemnitee provided
 provided
  - 88 -




---



##### 



Successors and Assigns
  provided
     - 89 -




---



##### 



Approved Fund
 Approved Fund
 provided however
 Register
 - 90 -




---



##### 



provided
 Participant provided
  - 91 -




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Survival
 Counterparts; Integration; Effectiveness
 Severability
 - 92 -




---



##### 



Right of Setoff provided
 Governing Law; Jurisdiction; Consent to Service of Process
    - 93 -




---



##### 



WAIVER OF JURY TRIAL
 Headings
 Confidentiality Information provided
 - 94 -




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##### 



USA PATRIOT Act Act
 Appointment for Perfection
 Interest Rate Limitation Charges Maximum Rate
 - 95 -




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##### 



Waiver of California Suretyship Laws
  - 96 -




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PACIFIC SUNWEAR OF CALIFORNIA, INC.By
    /s/ Sally Frame KasaksSally Frame KasaksChief Executive Officer




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JPMORGAN CHASE BANK, N.A., individually as a
Lender, as the Swingline Lender, as an Issuing
Bank and as Administrative AgentBy
    /s/ Joseph A. LisackJoseph A. LisackVice President




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BANK OF AMERICA, N.A., individually as
a Lender, as Syndication Agent and as an
Issuing BankBy
    /s/ Stephen J. GarvinStephen J. GarvinManaging Director




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##### 



BRANCH BANK AND TRUST COMPANY, individually as
a Lender and as a Co-Documentation AgentBy
    /s/ Roberts A. BassRoberts A. BassSenior Vice President




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##### 



U.S. BANK NATIONAL ASSOCIATION,
individually as a Lender and as a Co-Documentation AgentBy
    /s/ Conan SchleicherConan SchleicherVice President




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##### 



WELLS FARGO RETAIL FINANCE, LLC, individually
as a Lender and as a Co-Documentation AgentBy
    /s/ Matthew N. WilliamsMatthew N. WilliamsVice President




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##### 



PNC BANK, N.A., individually as a LenderBy
    /s/ Steve DaveySteve DaveyVice President




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UPS CAPITAL CORPORATION, individually as a LenderBy
    /s/ John P. HollowayJohn P. HollowayDirector, Portfolio Management




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##### 



SCHEDULE 2.01
  LENDER
    
    COMMITMENTJPMORGAN CHASE BANK, N.A.
    
    $
    35,000,000BANK OF AMERICA, N.A.
    
    $
    35,000,000BRANCH BANK AND TRUST COMPANY
    
    $
    20,000,000U.S. BANK NATIONAL ASSOCIATION
    
    $
    20,000,000WELLS FARGO RETAIL FINANCE, LLC
    
    $
    20,000,000PNC BANK
    
    $
    10,000,000UPS CAPITAL CORPORATION
    
    $
    10,000,000TOTAL COMMITMENTS
    
    $
    150,000,000