Exhibit 10.59
LOAN AND SECURITY AGREEMENT
FLEET RETAIL FINANCE INC.,
ADMINISTRATIVE AGENT, COLLATERAL AGENT
AND SYNDICATION AGENT FOR
THE LENDERS NAMED HEREIN
CONGRESS FINANCIAL CORPORATION (CENTRAL)
and
WELLS FARGO RETAIL FINANCE II, LLC,
CO-DOCUMENTATION AGENTS
THE REVOLVING CREDIT LENDERS
NAMED HEREIN
BACK BAY CAPITAL FUNDING LLC,
TRANCHE B LENDER
FAO, INC. AND ITS SUBSIDIARIES
THE BORROWERS
April 23, 2003
TABLE OF CONTENTS
1.
DEFINITIONS AND RULES OF INTERPRETATION
1.1
DEFINITIONS
1.2.
RULES OF INTERPRETATION
2.
THE REVOLVING CREDIT FACILITY.
2.1.
COMMITMENT TO LEND
2.2.
MATURITY
2.3.
UNUSED FEE
2.4.
REDUCTION OF COMMITMENT
2.5.
MANDATORY REPAYMENTS OF REVOLVING CREDIT LOANS
2.6.
OPTIONAL REPAYMENTS OF REVOLVING CREDIT LOANS
2.7.
THE LOAN ACCOUNT AND REVOLVING CREDIT NOTES
2.8.
INTEREST ON REVOLVING CREDIT LOANS.
2.9.
REQUESTS FOR REVOLVING CREDIT LOANS
2.10.
CONVERSION OPTIONS
2.11.
FUNDS FOR REVOLVING CREDIT LOAN
2.12.
BORROWING BASE/REDUCTIONS TO AVAILABILITY
2.13.
SETTLEMENTS
2.14.
REPAYMENTS OF REVOLVING CREDIT LOANS ABSENT AN EVENT OF DEFAULT
2.15.
REPAYMENTS OF REVOLVING CREDIT LOANS AFTER EVENT OF DEFAULT
2.16.
OVERLOANS AND PROTECTIVE OVERADVANCES
3.
THE TRANCHE B FACILITY
3.1.
COMMITMENT TO LEND
3.2.
THE TRANCHE B NOTE
3.3.
PAYMENTS OF PRINCIPAL OF TRANCHE B LOAN
3.4.
INTEREST ON TRANCHE B LOAN
3.5.
PAYMENTS ON ACCOUNT OF TRANCHE B LOAN
3.6.
BUYOUT OPTION
4.
LETTERS OF CREDIT
4.1.
LETTER OF CREDIT COMMITMENTS
4.2.
REIMBURSEMENT OBLIGATION OF THE BORROWERS
4.3.
LETTER OF CREDIT PAYMENTS
4.4.
OBLIGATIONS ABSOLUTE
4.5.
RELIANCE BY ISSUER
4.6.
LETTER OF CREDIT FEE
5.
CERTAIN GENERAL PROVISIONS
5.1.
AGENT FEES
5.2.
TRANCHE B LENDER FEES
5.3.
FUNDS FOR PAYMENTS
i
5.4.
COMPUTATIONS
5.5.
INABILITY TO DETERMINE EURODOLLAR RATE
5.6.
ILLEGALITY
5.7.
ADDITIONAL COSTS, ETC
5.8.
CERTIFICATE
5.9.
INDEMNITY
5.10.
INTEREST AFTER DEFAULT
5.11.
FEES NON-REFUNDABLE
5.12.
CONCERNING JOINT AND SEVERAL LIABILITY OF THE BORROWERS
6.
COLLATERAL SECURITY
6.1.
GRANT OF SECURITY INTEREST
6.2.
AUTHORIZATION TO FILE FINANCING STATEMENTS
6.3.
OTHER ACTIONS
6.4.
RELATION TO OTHER SECURITY DOCUMENTS
7.
REPRESENTATIONS AND WARRANTIES
7.1.
CORPORATE AUTHORITY
7.2.
GOVERNMENTAL APPROVALS
7.3.
TITLE TO PROPERTIES; LEASES
7.4.
FINANCIAL STATEMENTS AND PROJECTIONS
7.5.
NO MATERIAL ADVERSE CHANGES, ETC.
7.6.
FRANCHISES, PATENTS, COPYRIGHTS, ETC.
7.7.
LITIGATION
7.8.
NO MATERIALLY ADVERSE CONTRACTS, ETC.
7.9.
COMPLIANCE WITH OTHER INSTRUMENTS, LAWS, ETC.
7.10.
TAX STATUS
7.11.
NO DEFAULT
7.12.
HOLDING COMPANY AND INVESTMENT COMPANY ACTS
7.13.
ABSENCE OF FINANCING STATEMENTS, ETC.
7.14.
COLLATERAL
7.15.
CERTAIN TRANSACTIONS
7.16.
EMPLOYEE BENEFIT PLANS
7.17.
USE OF PROCEEDS
7.18.
ENVIRONMENTAL COMPLIANCE
7.19.
SUBSIDIARIES, ETC.
7.20.
BANK ACCOUNTS; CREDIT CARD ARRANGEMENTS
7.21.
LABOR RELATIONS
7.22.
DISCLOSURE
8.
CERTAIN AFFIRMATIVE COVENANTS
8.1.
PUNCTUAL PAYMENT
8.2.
NOTICE OF CHANGE OF ORGANIZATION/MAINTENANCE OF OFFICE
8.3.
RECORDS AND ACCOUNTS
8.4.
FINANCIAL STATEMENTS, CERTIFICATES AND INFORMATION
8.5.
NOTICES
8.6.
LEGAL EXISTENCE; MAINTENANCE OF PROPERTIES
8.7.
INSURANCE
ii
8.8.
TAXES
8.9.
INSPECTION OF PROPERTIES AND BOOKS, ETC.
8.10.
COMPLIANCE WITH LAWS, CONTRACTS, LICENSES, AND PERMITS
8.11.
EMPLOYEE BENEFIT PLANS
8.12.
USE OF PROCEEDS
8.13.
ADDITIONAL SUBSIDIARIES
8.14.
BANK ACCOUNTS
8.15.
COVENANTS CONCERNING COLLATERAL, ETC.
8.16.
FURTHER ASSURANCES
9.
CERTAIN NEGATIVE COVENANTS
9.1.
RESTRICTIONS ON INDEBTEDNESS
9.2.
RESTRICTIONS ON LIENS
9.3.
RESTRICTIONS