Document:

Exhibit 10.2

 

Exhibit 10.2

SECOND AMENDMENT TO BUSINESS LOAN AGREEMENT

This Second Amendment to Business Loan Agreement (the “Amendment”) is made as
of August 18, 2004, between Bank of America, N. A. (“Bank”), and Pacific
Sunwear of California, Inc., a California corporation (the “Borrower”).

RECITALS

     A. Borrower and Bank entered into that certain Business Loan Agreement
dated as of January 30, 2004 (the “Agreement”).

     B. Borrower and Bank desire to amend the Agreement as herein provided.

AGREEMENT

     1. Definitions. Capitalized terms used but not defined in this Amendment
shall have the meaning given to them in the Agreement.

     2. Amendments. The Agreement is hereby amended as follows:

          2.1 In subsection (c) of Section 7.10 of the Agreement, the first sentence
is amended to read as follows:

“(c) capital stock repurchases not in excess of (x) Fifty
Million Dollars ($50,000,000) in the aggregate from the date
of this Agreement through May 6, 2004, (y) Twenty-Five
Million Dollars ($25,000,000) in the aggregate from May 7,
2004 through August 18, 2004, or (z) Fifty Million Dollars
($50,000,000) in the aggregate from August 19, 2004 through
the Expiration Date; provided that, after giving effect to
such stock repurchase (i) No Event of Default under this
Agreement has occurred and is continuing and (ii) Borrower
has not less than Fifty Million Dollars ($50,000,000) in
Unencumbered Liquid Assets....”

     3. Representations and Warranties. Borrower hereby represents and warrants
to Bank that: (i) no default specified in the Agreement and no event which with
notice or lapse of time or both would become such a default has occurred and is
continuing and has not been previously waived, (ii) the representations and
warranties of Borrower pursuant to the Agreement are true on and as of the date
hereof as if made on and as of said date, (iii) the making and performance by
Borrower of this Amendment have been duly authorized by all necessary action,
and (iv) no consent, approval, authorization, permit or license is required in
connection with the making or performance of the Agreement as amended hereby.

     4. Conditions. This Amendment will be effective when the Bank receives the
following items, in form and content acceptable to the Bank:

 

 

          4.1 This Amendment duly executed by all parties hereto.

          4.2 Payment of all out-of-pocket expenses, including attorneys’ fees,
incurred by the Bank in connection with the preparation of this Amendment.

     5. Effect of Amendment. Except as provided in this Amendment, the
Agreement shall remain in full force and effect and shall be performed by the
parties hereto according to its terms and provisions.

	 	 	IN WITNESS WHEREOF, this Amendment has been executed by the parties
hereto as of the date first above written.

	 	 	 
	 

	 	BANK OF AMERICA, N.A.
	 
	 	 
	

	 	By:
	

	 	Name:
	

	 	Title:
	 
	 	 
	

	 	PACIFIC SUNWEAR OF CALIFORNIA, INC.
	 
	 	 
	

	 	By:
	

	 	Name:
	

	 	Title:
	 
	 	 
	

	 	By:
	

	 	Name:
	

	 	Title:Exhibit 10.3

 

Exhibit 10.3

AMENDMENT NO. 1

to

RIGHTS AGREEMENT

          This AMENDMENT NO. 1 TO RIGHTS AGREEMENT (this “Amendment”) is dated as of
June 18, 2004, between Pacific Sunwear of California, Inc., a California
corporation (the “Company”), and U.S. Stock Transfer Corporation, a California
corporation (the “Rights Agent”). Capitalized terms that are not defined
herein shall have the meanings ascribed to them in the Agreement (as defined
below).

          WHEREAS, the Company and the Rights Agent previously entered into that
certain Rights Agreement dated as of December 16, 1998 (the “Agreement”);

          WHEREAS, Section 27 of the Agreement provides that, prior to the
Distribution Date, the Company and the Rights Agent shall, if the Company so
directs, supplement or amend any provision of the Agreement without the
approval of any holders of certificates representing Common Shares and no
Distribution Date, as of the date hereof, has occurred; and

          WHEREAS, the Company has determined that it is in the best interests of
the shareholders of the Company to amend the terms of the Agreement as set
forth herein;

          NOW, THEREFORE, the parties agree as follows:

          1. Section 1(h)(ii) of the Agreement is hereby amended and restated in its
entirety to read as follows:

          “(ii) any Person designated prior to the Distribution Date by the Board
of Directors of the Company as an Exempt Person, unless and until such Person
shall thereafter become the Beneficial Owner of additional shares constituting
1% or more of the Common Shares otherwise than in a transaction or series of
transactions approved prior to such transaction or transactions by the Board of
Directors of the Company; or”

          2. The first sentence of Section 11(a)(ii) of the Agreement is hereby
amended and restated in its entirety to read as follows:

          “Subject to Section 24 of this Agreement, in the event any Person becomes
an Acquiring Person and the Distribution Date has occurred, each holder of a
Right shall thereafter have a right to receive, upon exercise thereof at a
price equal to the then current Purchase Price multiplied by the number of one
one-hundredths of a Preferred Share for which a Right is then exercisable, in
accordance with the terms of this Agreement and in lieu of Preferred Shares,
such number of Common Shares of the Company as shall equal the result obtained
by (x) multiplying the then current Purchase Price by the number of one
one-hundredths of a Preferred Share for which a Right is then exercisable and
dividing that product by (y) 50% of the then current per share market price of
the Company’s Common Shares (determined pursuant to Section 11(d) hereof) on
the date of the occurrence of such event.” In the event that any Person shall
become an Acquiring Person, the Distribution Date has occurred and the Rights
are then outstanding, the

 

 

Company shall not take any action which would eliminate or diminish the
benefits intended to be afforded by the Rights.

          3. The first sentence of Section 13 of the Agreement is hereby amended and
restated in its entirety to read as follows:

          “In the event, directly or indirectly, at any time after a Person has
become an Acquiring Person and the Distribution Date has occurred, (a) the
Company shall consolidate with, or merge with and into, any other Person, (b)
any Person shall consolidate with the Company, or merge with and into the
Company and the Company shall be the continuing or surviving corporation of
such merger and, in connection with such merger, all or part of the Common
Shares shall be changed into or exchanged for stock or other securities of any
other Person (or the Company) or cash or any other property, or (c) the Company
shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell
or otherwise transfer), in one or more transactions, assets or earning power
aggregating 50% or more of the assets or earning power of the Company and its
Subsidiaries (taken as a whole) to any other Person other than the Company or
one or more of its wholly-owned Subsidiaries, then, and in each such case,
proper provision shall be made so that (i) each holder of a Right (except as
otherwise provided herein) shall thereafter have the right to receive, upon the
exercise thereof at a price equal to the then current Purchase Price multiplied
by the number of one one-hundredths of a Preferred Share for which a Right is
then exercisable, in accordance with the terms of this Agreement and in lieu of
Preferred Shares, such number of Common Shares of such other Person (including
the Company as successor thereto or as the surviving corporation) as shall
equal the result obtained by (A) multiplying the then current Purchase Price by
the number of one one-hundredths of a Preferred Share for which a Right is then
exercisable and dividing that product by (B) 50% of the then current per share
market price of the Common Shares of such other Person (determined pursuant to
Section 11(d) hereof) on the date of consummation of such consolidation,
merger, sale or transfer; (ii) the issuer of such Common Shares shall
thereafter be liable for, and shall assume, by virtue of such consolidation,
merger, sale or transfer, all the obligations and duties of the Company
pursuant to this Agreement; (iii) the term “Company” shall thereafter be deemed
to refer to such issuer; and (iv) such issuer shall take such steps (including,
but not limited to, the reservation of a sufficient number of its Common Shares
in accordance with Section 9 hereof) in connection with such consummation as
may be necessary to assure that the provisions hereof shall thereafter be
applicable, as nearly as reasonably may be, in relation to the Common Shares
thereafter deliverable upon the exercise of the Rights.”

          4. Section 31 is amended in its entirety to read as follows:

          “Section 31. Governing Law. This Agreement and each Right Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
state of California and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts to be made and
performed within such State.”

          5. Except as expressly modified herein, the Agreement shall remain in full
force and effect in accordance with its original terms.

2

 

          6. This Amendment may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

[Signatures on following page.]

3

 

     IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to Rights
Agreement to be duly executed and delivered on the day and year first above
written.

	 	 	 	 
	

	 	PACIFIC SUNWEAR OF CALIFORNIA, INC.
	 	 
	 	 
	ATTEST:
	 	 
	 	 
	 	 
	By: /s/ CARL W. WOMACK

	By: /s/ GREG H. WEAVER
	 	
 

	 	
 
	 	Carl W. Womack

	 	Greg H. Weaver
	 	Sr. Vice President,

	 	Chairman of the Board and
	 	Chief Financial Officer

	 	Chief Executive Officer
	 	and Secretary
	 	 
	 	 
	 	 
	ATTEST:

	U.S. STOCK TRANSFER CORPORATION
	 	 
	 	 
	By: /s/ RICHARD BROWN

	By: /s/ NEIL T. ROSSO
	 	
 

	 	
 
	 	Richard Brown

	 	Neil T. Rosso
	 	Vice President

	 	Assistant Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]