Document:

exv10w5

Exhibit 10.5

Portions of this exhibit have been omitted pursuant
to a request for confidential treatment filed with the Securities and Exchange Commission. The omissions have been
indicated by asterisks (“*****”), and the omitted text has been filed separately with the Securities and Exchange
Commission.

 

CREDIT AGREEMENT

Dated as of July 31, 2009

among

QUIKSILVER AMERICAS, INC.

as the Lead Borrower

The Other Borrowers From Time to Time Party Hereto

The Guarantors From Time to Time Party Hereto

BANK OF AMERICA, N.A.

as Administrative Agent, Swing Line Lender

and

L/C Issuer,

BANK OF AMERICA, N.A. (acting through its Canada branch)

as Canadian Agent

BANK OF AMERICA, N.A.

GENERAL ELECTRIC CAPITAL CORPORATION

as Co-Collateral Agents,

and

The Other Lenders Party Hereto

BANK OF AMERICA, N.A.,

as Syndication Agent

BANC OF AMERICA SECURITIES LLC

GE CAPITAL MARKETS, INC.

as Joint Lead Arrangers

and Joint Bookrunners

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	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	 
	10.19 Error! 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)

 

 

SCHEDULES

	 	 	 	 	 
	 
	 	1.01	 	Domestic Borrowers
	 
	 	 	 	 
	 
	 	1.02	 	Guarantors
	 
	 	 	 	 
	 
	 	2.01	 	Commitments and Applicable Percentages
	 
	 	 	 	 
	 
	 	4.01(a)(x)	 	Closing Date Security Documents
	 
	 	 	 	 
	 
	 	4.01(a)(xi)	 	Other Closing Date Loan Documents
	 
	 	 	 	 
	 
	 	5.01	 	Loan Parties’ Organizational Information
	 
	 	 	 	 
	 
	 	5.05	 	Material Indebtedness and Other
Liabilities
	 
	 	 	 	 
	 
	 	5.08(b)(1)	 	Owned Real Estate
	 
	 	 	 	 
	 
	 	5.08(b)(2)	 	Leased Real Estate
	 
	 	 	 	 
	 
	 	5.10	 	Insurance
	 
	 	 	 	 
	 
	 	5.13	 	Subsidiaries; Equity Interests
	 
	 	 	 	 
	 
	 	5.21(a)	 	DDAs
	 
	 	 	 	 
	 
	 	5.21(b)	 	Credit Card Arrangements
	 
	 	 	 	 
	 
	 	5.22	 	Brokers
	 
	 	 	 	 
	 
	 	5.24	 	Material Contracts
	 
	 	 	 	 
	 
	 	6.02	 	Financial and Collateral Reporting
	 
	 	 	 	 
	 
	 	7.01	 	Existing Liens
	 
	 	 	 	 
	 
	 	7.02	 	Existing Investments
	 
	 	 	 	 
	 
	 	7.03	 	Existing Indebtedness
	 
	 	 	 	 
	 
	 	7.10	 	Existing Restrictions
	 
	 	 	 	 
	 
	 	10.02	 	Administrative Agent’s Office; Certain Addresses

EXHIBITS

	 	 	 
	 	 	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)

 

 

CREDIT AGREEMENT

     This CREDIT AGREEMENT is entered into as of July 31, 2009, among

     QUIKSILVER AMERICAS, INC., a California corporation (the “Lead Borrower”);

     QUIKSILVER CANADA CORP., a Nova Scotia unlimited liability company (the “Canadian
Borrower”),

     the Persons named on Schedule 1.01 hereto (collectively, with the Lead Borrower and
each other Person that from time to time becomes a “Domestic Borrower” hereunder, the “Domestic
Borrowers”);

     QUIKSILVER, INC., a Delaware corporation (the “Parent”);

     the Persons named on Schedule 1.02 hereto (collectively, with each other Person that
from time to time becomes a “Guarantor” hereunder, the “Guarantors”);

     each lender from time to time party hereto;

     BANK OF AMERICA, N.A., as Administrative Agent, Syndication Agent, Swing Line Lender and L/C
Issuer;

     BANK OF AMERICA, N.A. (acting through its Canada branch), as Canadian Agent, Swing Line Lender
and L/C Issuer; and

     BANK OF AMERICA, N.A. and GENERAL ELECTRIC CAPITAL CORPORATION, as Co-Collateral Agents.

     The Borrowers have requested that the Lenders provide certain revolving credit facilities, and
the Lenders have indicated their willingness to lend and the L/C Issuer has indicated its
willingness to issue Letters of Credit, in each case on the terms and conditions set forth herein.

     In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

     Defined Terms. As used in this Agreement, the following terms shall have the meanings set
forth below:

     “Accelerated Borrowing Base Delivery Event” means either (i) the occurrence and
continuance of any Event of Default, or (ii) the failure of the Borrowers to maintain Domestic
Availability at least equal to the greater of (x) twenty percent (20%) of the Total Loan Cap or (y)
$30,000,000. For purposes of this Agreement, the occurrence of an Accelerated Borrowing Base
Delivery Event shall be deemed continuing (i) so long as such Event of Default is continuing,
and/or (ii) if the Accelerated Borrowing Base Delivery Event arises as a result of the Domestic
Borrowers’ failure to maintain Domestic Availability as required in clause (ii) of the immediately
preceding sentence, until Domestic Availability has equaled or exceeded the greater of (x) twenty
percent (20%) of the Total Loan Cap or (y) $30,000,000, for sixty (60) consecutive calendar days,
in which case an Accelerated Borrowing Base Delivery Event shall no longer be deemed to be
continuing for purposes of this Agreement.

-1-

 

     “Acceptable BOL” means with respect to In-Transit Inventory, a tangible, negotiable
bill of lading that (i) is issued by a common carrier which is not an Affiliate of the applicable
foreign vendor or Borrowing Base Party and which is in actual possession of such In-Transit
Inventory or by an Eligible NVOCC; (ii) covers only such In-Transit Inventory; (iii) is issued to
the order of a Domestic Borrower or a Canadian Loan Party or, while an Event of Default exists, if
so requested by any Agent or, with respect to In-Transit Inventory of a Canadian Loan Party, any
Agent, or the Canadian Agent, to the order of the Administrative Agent or the Canadian Agent, as
applicable; (iv) is subject to the Administrative Agent’s or the Canadian Agent’s, as applicable,
first priority Lien and no other Lien that is not a Permitted Encumbrance; and (v) the Agents and,
with respect to In-Transit Inventory of a Canadian Loan Party, the Agents and the Canadian Agent,
have not notified the Lead Borrower or the applicable Canadian Loan Party that such bill of lading
is not in form and content reasonably acceptable to the Agents and, if applicable, the Canadian
Agent.

     “Accommodation Payment” has the meaning provided in Section 10.08(d).

     “Account” means “accounts” as defined in the UCC and in the PPSA, and also means a
right to payment of a monetary obligation, whether or not earned by performance, (a) for property
that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (b) for
services rendered or to be rendered, (c) for a policy of insurance issued or to be issued, (d) for
a secondary obligation incurred or to be incurred, (e) for energy provided or to be provided, (f)
for the use or hire of a vessel under a charter or other contract, (g) arising out of the use of a
credit or charge card or information contained on or for use with the card, or (h) as winnings in a
lottery or other game of chance operated or sponsored by a state, province, territory, governmental
unit of a state, province or territory, or person licensed or authorized to operate the game by a
state, province, territory or governmental unit of a state, province or territory. The term
“Account” includes health-care-insurance receivables.

     “ACH” means automated clearing house transfers.

     “Acquisition” means, with respect to any Person, (a) an Investment in, or a purchase
of a Controlling interest in, the Equity Interests of any other Person, (b) a purchase or other
acquisition of all or substantially all of the assets or properties of, another Person or of any
business unit of another Person, (c) any merger, amalgamation or consolidation of such Person with
any other Person or other transaction or series of transactions resulting in the acquisition of all
or substantially all of the assets, or a Controlling interest in the Equity Interests, of any
Person, or (d) any acquisition of Store locations of any Person (which, for the avoidance of doubt,
shall exclude lease improvements and Store build-outs) for which the aggregate consideration
payable in connection with such acquisition is $5,000,000 or more in any single transaction or
$10,000,000 or more in the aggregate during the Availability Period, in each case in any
transaction or group of transactions which are part of a common plan.

     “Additional Commitment Lender” has the meaning provided in Section 2.13(c).

     “Adjusted LIBO Rate” means, with respect to any LIBO Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of one percent
(1%)) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve
Rate. The Adjusted LIBO Rate will be adjusted automatically as to all LIBO Borrowings then
outstanding as of the effective date of any change in the Statutory Reserve Rate.

     “Adjustment Date” means the first day of each Fiscal Quarter; provided that, the first
Adjustment Date after the Closing Date shall be January 31, 2010.

-2-

 

     “Administrative Agent” means Bank of America in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent.

     “Administrative Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other address or account as
the Administrative Agent may from time to time notify the Lead Borrower and the Lenders.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

     “Affiliate” means, with respect to any Person, (i) another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified, (ii) any other Person directly or indirectly holding 10% or more
of any class of the Equity Interests of that Person, and (iii) any other Person 10% or more of any
class of whose Equity Interests is held directly or indirectly by that Person.

     “Agent Parties” has the meaning specified in Section 10.02(c).

     “Agent(s)” means, individually, the Administrative Agent or any of the Co-Collateral
Agents, and collectively means all of them.

     “Aggregate Canadian Commitments” means the Canadian Commitments of all the Canadian
Lenders. As of the Closing Date, the Aggregate Canadian Commitments are $15,000,000.

     “Aggregate Domestic Commitments” means the Domestic Commitments of all the Domestic
Lenders. As of the Closing Date, the Aggregate Domestic Commitments are $185,000,000.

     “Aggregate Total Commitments” means all Domestic Commitments and all Canadian
Commitments. As of the Closing Date, the Aggregate Total Commitments are $200,000,000.

     “Agreement” means this Credit Agreement.

     “Allocable Amount” has the meaning specified in Section 10.08(d).

     “Americas Consolidated” means, when used to modify a financial term, test, statement,
or report of the Parent, the application or preparation of such term, test, statement or report (as
applicable) based upon the financial condition or operating results of the Parent and the Americas
Subsidiaries, calculated or prepared (as the case may be) as if such entities were a consolidated
group.

     “Americas Subsidiaries” means, collectively, (a) each direct or indirect Domestic
Subsidiary of the Parent, and (b) each Canadian Subsidiary; provided that, in the case of financial
statements referred to in Section 4.01(e)(ii), “Americas Subsidiaries” shall also include
Quiksilver Industria e Comercio de Artigos Esportivos Ltda., Quiksilver Mexico, S. de R. L. de C.V.
and Quiksilver Mexico Service, S. de R. L. de C.V.

     “Applicable Margin” means:

     (a) From and after the Closing Date until the first Adjustment Date, the percentages
set forth in Level II of the pricing grid below, unless the Average Daily Domestic
Availability requirements for Level II (or lower) have not been satisfied, in which event
the Applicable Margin shall be set at Level III. In no event shall the Applicable Margin be
set at Level I prior to

-3-

 

the first Adjustment Date (even if the Average Daily Domestic Availability requirements
for Level I have been satisfied); and

     (b) From and after the first Adjustment Date, the Applicable Margin shall be determined
from the following pricing grid based upon the Average Daily Domestic Availability for the
most recent Fiscal Quarter ended immediately preceding such Adjustment Date;
provided however, that notwithstanding anything to the contrary set forth
herein, upon the occurrence of an Event of Default, any Agent may, and the Administrative
Agent shall at the direction of the Required Lenders, immediately increase the Applicable
Margin to the percentage set forth in Level III which shall apply for so long as such Event
of Default is continuing (even if the Average Daily Domestic Availability requirements for
a different Level have been met and without limiting the right of the Administrative Agent
or the Required Lenders to charge interest at the Default Rate as provided in Section
2.08(b)); provided further that, if any Borrowing Base Certificate is at
any time restated or otherwise revised (including as a result of an audit) or if the
information set forth in any such Borrowing Base Certificate otherwise proves to be false or
incorrect such that the Applicable Margin would have been higher than was otherwise in
effect during any period, without constituting a waiver of any Default or Event of Default
arising as a result thereof, interest due under this Agreement shall be immediately and
retroactively recalculated at such higher rate for any applicable periods and shall be due
and payable (to the extent not already paid) on demand.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	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	%

     “Applicable Percentage” means (a) with respect to any Canadian Lender at any time, the
percentage (carried out to the ninth decimal place) of the Aggregate Canadian Commitments
represented by the Canadian Commitment of such Canadian Lender at such time and (b) with respect to
any Domestic Lender at any time, the percentage (carried out to the ninth decimal place) of the
Aggregate Domestic Commitments represented by the Domestic Commitment of such Domestic Lender at
such time. As to each Lender, if the commitment of each Lender to make Loans and the obligation of
the L/C Issuer to make L/C Credit Extensions has been terminated pursuant to Section 0 or
if the Aggregate Total Commitments have expired, then the Applicable Percentage of each Lender
shall be determined based on the Applicable Percentage of such Lender most recently in effect,
giving effect to any subsequent assignments. The initial Applicable Percentage of each Lender is
set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable.

     “Applicable Rate” means, at any time of calculation, a per annum rate equal to the
Applicable Margin for Loans which are LIBO Rate Loans.

     “Appraisal Percentage” means eighty-five percent (85%).

-4-

 

     “Appraised Value” means the appraised orderly liquidation value, net of costs and
expenses to be incurred in connection with any such liquidation, which value is expressed as a
percentage of Cost of the Borrowing Base Parties’ Eligible Inventory as set forth in the Borrowing
Base Parties’ inventory stock ledger, which value shall be determined from time to time by the most
recent appraisal undertaken by an independent appraiser engaged by any Agent.

     “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) a
Lender Affiliate of a Lender or (c) an entity or Lender Affiliate of an entity that administers or
manages a Lender.

     “Arrangers” means Banc of America Securities LLC and GE Capital Markets, Inc., in
their capacities as joint lead arrangers.

     “Assignee Group” means two or more Eligible Assignees that are Lender Affiliates of
one another or two or more Approved Funds managed by the same investment advisor.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 10.04(b)), and accepted by the Administrative Agent, in substantially the form of
Exhibit E-1 (Assignment and Assumption (Domestic Lenders)) or Exhibit E-2
(Assignment and Assumption (Canadian Lenders)), as applicable, or any other form approved by the
Administrative Agent.

     “Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease
Obligation of any Person, the capitalized amount thereof that would appear on a balance sheet of
such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic
Lease Obligation (other than any Capital Lease Obligation), the capitalized amount of the remaining
lease or similar payments under the relevant lease or other applicable agreement or instrument that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease, agreement or instrument were accounted for as a capital lease.

     “Audited Financial Statements” means the audited Consolidated balance sheet of the
Parent and its Subsidiaries for the Fiscal Year ended October 31, 2008, and the related
Consolidated statements of income or operations, Shareholders’ Equity and cash flows for such
Fiscal Year of the Parent and its Subsidiaries, including the notes thereto.

     “Auto-Extension Letter of Credit” has the meaning specified in Section
2.03(b)(iii).

     “Availability Condition” means at the time of determination with respect to any
specified transaction or payment, Domestic Availability immediately preceding, and on a pro forma
basis on the date thereof and a projected basis for the twelve (12) months immediately following,
such transaction or payment was, and is projected to be, equal to or greater than the greater of
(a) thirty percent (30%) of the Total Loan Cap and (b) $45,000,000.

     “Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Total Commitments
pursuant to Section 2.06, and (c) the date of termination of the commitment of each Lender
to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to
Section 0.

     “Availability Reserves” means, without duplication of any other Reserves or items that
are otherwise addressed or excluded through eligibility criteria, such reserves as any Agent from
time to time determines in its Permitted Discretion as reflecting (a) any impediments to (i) the
Administrative Agent’s ability to realize upon the Collateral included in the Domestic Borrowing
Base or (ii) the Canadian

-5-

 

Agent’s ability to realize upon the Collateral included in the Canadian Borrowing Base, (b)
claims and liabilities that (i) any Agent determines in its Permitted Discretion will need to be
satisfied in connection with the realization upon the Collateral included in the Domestic Borrowing
Base or (ii) the Canadian Agent determines in its Permitted Discretion will need to be satisfied in
connection with the realization upon the Collateral included in the Canadian Borrowing Base, (c)
criteria, events, conditions, contingencies or risks which adversely affect any component of the
Domestic Borrowing Base or the Canadian Borrowing Base, or the assets, business, financial
performance or financial condition of any Borrowing Base Party, or (d) that a Default or an Event
of Default then exists. Without limiting the generality of the foregoing, by way of example and not
limitation, Availability Reserves may include (but are not limited to), in any Agent’s Permitted
Discretion, or with respect to Collateral included in the Canadian Borrowing Base, any Agent’s or
the Canadian Agent’s Permitted Discretion, reserves based on: (i) rent; (ii) customs duties,
freight charges, taxes, tariffs insurance charges and other charges that may reasonably be expected
to come due with respect to any Eligible In-Transit Inventory or any Inventory associated with any
Eligible Letter of Credit and other costs associated with Inventory of any Borrowing Base Party
which is being imported into the United States or Canada; (iii) outstanding Taxes and other
governmental charges due and owing by any Borrowing Base Party but unpaid, including, without
limitation, ad valorem, real estate, personal property, sales, goods and services, claims of PBGC
and other Governmental Authorities in respect of Plans and other Taxes due and owing by any
Borrowing Base Party which may be subject to Liens that have priority over or are pari passu with
the Liens of the Administrative Agent or the Canadian Agent in the Collateral; (iv) salaries,
wages, vacation pay and benefits due and owing to employees of any Loan Party but unpaid and
Canadian Priority Payable Reserves; (v) Customer Credit Liabilities; (v) reserves for reasonably
anticipated changes in the Appraised Value of Eligible Inventory between appraisals; (vi) unpaid
warehousemen’s or bailee’s charges due and owing by any Borrowing Base Party relating to Inventory
of any Borrowing Base Party and other Permitted Encumbrances which may have priority over or are
pari passu with the Liens of the Administrative Agent or the Canadian Agent in the Collateral;
(vii) amounts due to vendors on account of consigned goods of any Borrowing Base Party; (viii) Cash
Management Reserves; (ix) Bank Products Reserves; and (x) Dilution Reserves. Upon the
determination by any Co-Collateral Agent in its Permitted Discretion that an Availability Reserve
should be established or modified, such Co-Collateral Agent shall notify the Administrative Agent
and, if applicable, the Canadian Agent, in writing and the Administrative Agent shall thereupon
establish or modify such Availability Reserve, subject to the provisions of Section 0.

     “Average Daily Domestic Availability” means, as of any date of determination, the
average daily Domestic Availability for the immediately preceding Fiscal Quarter.

     “BA Equivalent Loan” means any Canadian Loan in CD$ bearing interest at a rate
determined by reference to the BA Rate in accordance with the provisions of Article II.

     “BA Equivalent Loan Borrowing” means any Committed Borrowing comprised of BA
Equivalent Loans.

     “BA Rate” means, for the Interest Period of each BA Equivalent Loan, the rate of
interest per annum equal to the annual rates applicable to CD$ bankers’ acceptances having an
identical or comparable term as the proposed BA Equivalent Loan displayed and identified as such on
the display referred to as the “CDOR Page” (or any display substituted therefor) of Reuter Monitor
Money Rates Service as at approximately 10:00 A.M. (Toronto time) on such day (or, if such day is
not a Business Day, as of 10:00 A.M. (Toronto time) on the immediately preceding Business Day),
plus five (5) basis points; provided that if such rates do not appear on the CDOR
Page at such time on such date, the rate for such date will be the annual discount rate (rounded
upward to the nearest whole multiple of 1/100 of 1%) as of 10:00 A.M. on such day at which a
Canadian chartered bank listed on Schedule 1 of the Bank Act

-6-

 

(Canada) as selected by the Canadian Agent is then offering to purchase CD$ bankers’
acceptances accepted by it having such specified term (or a term as closely as possible comparable
to such specified term), plus five (5) basis points.

     “Bank of America” means Bank of America, N.A., a national banking association, and its
successors.

     “Bank of America-Canada Branch” means Bank of America, N.A. (acting through its Canada
branch), a banking corporation carrying on business under the Bank Act (Canada).

     “Bank of Canada Overnight Rate” means, on any date of determination, the rate of
interest charged by the Bank of Canada on one-day Canadian dollar loans to financial institutions,
for such date.

     “Bank Products” means any services or facilities provided to any Loan Party by the
Administrative Agent, the Canadian Agent, any Lender or any of their respective Lender Affiliates,
including, without limitation, on account of (a) Swap Contracts, (b) purchase cards, and (c)
leasing, but excluding Credit Extensions and Cash Management Services.

     “Bank Product Reserves” means such reserves as the Administrative Agent from time to
time determines in its Permitted Discretion as being appropriate to reflect the liabilities and
obligations of the Loan Parties with respect to Bank Products then provided or outstanding.

     “BAS” means Banc of America Securities LLC and its successors.

     “Blocked Account” has the meaning provided in Section 6.07(a)(ii).

     “Blocked Account Agreement” means, with respect to a Blocked Account established by a
Loan Party, an agreement, in form and substance reasonably satisfactory to the Co-Collateral Agents
and (if a party thereto) the Canadian Agent, establishing control (as defined in the UCC or in the
PPSA, as applicable) of such Blocked Account by the Administrative Agent (for the benefit of itself
and the other Credit Parties) or the Canadian Agent (for the benefit of itself and the other
Canadian Credit Parties) and whereby the bank maintaining such account agrees, upon the occurrence
and during the continuance of a Cash Dominion Event (and delivery of notice thereof from the
Administrative Agent or the Canadian Agent, as applicable, to the Lead Borrower and the Blocked
Account Bank party to such agreement), to comply only with the instructions originated by the
Administrative Agent or the Canadian Agent, as applicable, without the further consent of any Loan
Party.

     “Blocked Account Bank” means Bank of America, N.A., Bank of America-Canada Branch and
each other bank with whom deposit accounts are maintained in which any funds of any of the Loan
Parties from one or more DDAs are concentrated and with whom a Blocked Account Agreement has been,
or is required to be, executed in accordance with the terms hereof.

     “Borrower Materials” has the meaning specified in Section 0.

     “Borrowers” means, collectively, the Domestic Borrowers and the Canadian Borrower.

     “Borrowing” means a Committed Borrowing or a Swing Line Borrowing, as the context may
require.

-7-

 

     “Borrowing Base Certificate” means a certificate substantially in the form of
Exhibit G hereto (with such changes therein as may be required by any Agent to reflect the
components of and reserves against the Domestic Borrowing Base as provided for hereunder from time
to time, and as may be required by the Canadian Agent or any Agent to reflect the components of and
reserves against the Canadian Borrowing Base as provided for hereunder from time to time), executed
and certified as being accurate and complete in accordance with the terms of the Borrowing Base
Certificate, by a Responsible Officer of the Lead Borrower or the Parent (with respect to the
Domestic Borrowing Base) and any Canadian Loan Party (with respect to the Canadian Borrowing Base)
which shall include appropriate exhibits, schedules, supporting documentation, and additional
reports as reasonably requested in advance by any Agent (with respect to the Domestic Borrowing
Base) or the Canadian Agent or any Agent (with respect to the Canadian Borrowing Base).

     “Borrowing Base Parties” means, collectively, the Domestic Borrowers and the Canadian
Loan Parties, and, in the singular, any one of them.

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent’s Office is located and, if such day relates to any LIBO Rate Loan,
means any such day on which dealings in Dollar deposits are conducted by and between banks in the
London interbank market; provided that, when used in connection with any Loan to the Canadian
Borrower, the term “Business Day” shall also exclude any day on which banks are authorized or
required by Law to be closed in Toronto, Ontario, Canada.

     “Canadian Agent” means Bank of America, N.A. (acting through its Canada branch), for
its own benefit and the benefit of the other Canadian Credit Parties, or any successor Canadian
agent.

     “Canadian Agent’s Office” means the Canadian Agent’s address and, as appropriate,
account as set forth on Schedule 10.02, or such other address or account as the Canadian
Agent may from time to time notify the Canadian Borrower and the Canadian Lenders.

     “Canadian Availability” means, as of any date of determination thereof, the result, if
a positive number, of:

     (a) the Canadian Loan Cap

minus

     (b) the Total Canadian Outstandings on such date.

     In calculating Canadian Availability at any time and for any purpose under this Agreement any
amount calculated or referenced in Dollars shall also refer to the Equivalent Amount in CD$.

     “Canadian Borrower” has the meaning specified in the introductory paragraph hereto.

     “Canadian Borrowing” means a Committed Canadian Borrowing or a Swing Line Borrowing
made to the Canadian Borrower, as the context may require.

     “Canadian Borrowing Base” means, at any time of calculation, an amount in CD$ (or the
Equivalent CD$ Amount, if applicable) equal to:

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     (a) the face amount of Eligible Credit Card Receivables of the Canadian Loan Parties
multiplied by the Credit Card Advance Rate;

     plus

     (b) the face amount of Eligible Trade Receivables of the Canadian Loan Parties (net of
Receivables Reserves applicable thereto) multiplied by the Receivables Advance Rate;

     plus

     (c) the Cost of Eligible Inventory (other than Eligible In-Transit Inventory) of the
Canadian Loan Parties, net of Inventory Reserves applicable thereto, multiplied by
the Appraisal Percentage of the Appraised Value of Eligible Inventory (other than Eligible
In-Transit Inventory) of the Canadian Loan Parties;

     plus

     (d) the lesser of (i) $2,250,000 and (ii) the sum of (x) the Cost of Eligible
In-Transit Inventory of the Canadian Loan Parties, net of Inventory Reserves applicable
thereto, multiplied by the Appraisal Percentage of the Appraised Value of Eligible
In-Transit Inventory of the Canadian Loan Parties, and (y) with respect to any Eligible
Letter of Credit, the Appraisal Percentage of the Appraised Value of the Inventory of the
Canadian Loan Parties supported by such Eligible Letter of Credit, multiplied by the Cost of
such Inventory of the Canadian Loan Parties when completed, net of applicable Reserves;

     minus

     (e) the then amount of all Availability Reserves applicable to the Canadian Loan
Parties. In no event shall the amount of Availability Reserves subtracted in calculating
the Canadian Borrowing Base be duplicative of Availability Reserves subtracted in
calculating the Domestic Borrowing Base.

     “Canadian Commitment Fee” has the meaning provided in Section 2.08(d)(ii).

     “Canadian Commitments” means, as to each Canadian Lender, its obligation to (a) make
Committed Canadian Loans to the Canadian Borrower pursuant to Section 2.01(b), (b) purchase
participations in Canadian L/C Obligations, and (c) purchase participations in Swing Line Loans
made to the Canadian Borrower, in an aggregate principal amount at any one time outstanding not to
exceed the amount set forth opposite such Canadian Lender’s name on Schedule 2.01 or in the
Assignment and Assumption pursuant to which such Canadian Lender becomes a party hereto, as
applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

     “Canadian Concentration Account” has the meaning provided in Section 6.13(c).

     “Canadian Credit Extensions” mean each of the following: (a) a Canadian Borrowing and
(b) a Canadian L/C Credit Extension.

     “Canadian Credit Party” or “Canadian Credit Parties” means (a) individually,
(i) each Canadian Lender and its Lender Affiliates, (ii) the Canadian Agent and its Lender
Affiliates, (iii) each L/C Issuer of any Canadian Letter of Credit and (iv) the successors and
assigns of each of the foregoing, and (b) collectively, all of the foregoing.

-9-

 

     “Canadian L/C Borrowing” means an extension of credit resulting from a drawing under
any Canadian Letter of Credit which has not been reimbursed on or prior to the date required to be
reimbursed by the Canadian Borrower pursuant to Section 2.03(c)(i) or refinanced as a
Committed Canadian Borrowing.

     “Canadian L/C Credit Extension” means, with respect to any Canadian Letter of Credit,
the issuance thereof or extension of the expiry date thereof, or the increase of the amount
thereof.

     “Canadian L/C Obligations” means, as at any date of determination and without
duplication, the aggregate Stated Amount of all outstanding Canadian Letters of Credit plus the
aggregate of all Unreimbursed Amounts under Canadian Letters of Credit, including all Canadian L/C
Borrowings.

     “Canadian Lenders” means the Lenders having Canadian Commitments from time to time or
at any time. Any Person may be a Canadian Lender only if it is a financial institution that is
listed on Schedule I, II or III of the Bank Act (Canada) or is not a foreign bank for purposes of
the Bank Act (Canada), and if such financial institution is not resident in Canada and is not
deemed to be resident in Canada for purposes of the Income Tax Act (Canada), then such financial
institution deals at arm’s length with each Canadian Loan Party for purposes of the Income Tax Act
(Canada).

     “Canadian Letter of Credit” means each Letter of Credit issued hereunder for the
account of the Canadian Borrower.

     “Canadian Letter of Credit Sublimit” means an amount equal to $10,000,000. The
Canadian Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Canadian
Commitments. A permanent reduction of the Aggregate Canadian Commitments shall not require a
corresponding pro rata reduction in the Canadian Letter of Credit Sublimit; provided,
however, that if the Aggregate Canadian Commitments are reduced to an amount less than the
Canadian Letter of Credit Sublimit, then the Canadian Letter of Credit Sublimit shall be reduced to
an amount equal to (or, at Canadian Borrower’s option, less than) the Aggregate Canadian
Commitments.

     “Canadian Liabilities” means (a) all advances to, and debts (including principal,
interest, fees, costs, and expenses), liabilities, obligations, covenants, indemnities, and duties
of, any Canadian Loan Party arising under any Loan Document or otherwise with respect to any
Canadian Loan or Canadian Letter of Credit (including payments in respect of reimbursement of
disbursements, interest thereon and obligations to provide cash collateral therefor), whether
direct or indirect (including those acquired by assumption), absolute or contingent, due or to
become due, now existing or hereafter arising and including interest, fees, costs and expenses that
accrue after the commencement by or against any Canadian Loan Party or any Lender Affiliate thereof
of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such proceeding, and (b) any
Other Canadian Liabilities.

     “Canadian Loan” means an extension of credit by a Canadian Lender to the Canadian
Borrower under Article II in the form of a Committed Loan or a Swing Line Loan.

     “Canadian Loan Cap” means, at any time of determination, the lesser of (a) the
Aggregate Canadian Commitments and (b) the Canadian Borrowing Base.

     “Canadian Loan Parties” means, collectively, the Canadian Borrower and each Canadian
Subsidiary that is a Guarantor of the Canadian Liabilities. “Canadian Loan Party” means any one of
such Persons.

-10-

 

     “Canadian Note” means a promissory note made by the Canadian Borrower in favor of a
Canadian Lender evidencing Canadian Loans made by such Canadian Lender, substantially in the form
of Exhibit C-1.

     “Canadian Overadvance” means a Canadian Credit Extension to the extent that,
immediately after the making of such Canadian Credit Extension, the aggregate principal balance of
all Canadian Credit Extensions then outstanding exceeds the Canadian Loan Cap as then in effect.

     “Canadian Pension Plan” means an employee pension benefit plan or pension plan that is
covered by the Laws of any jurisdiction in Canada including the Pension Benefits Act (Ontario) and
the Income Tax Act (Canada) or subject to minimum funding standards and that is either (a)
maintained or sponsored by any Canadian Loan Party or any Canadian Subsidiary for employees, (b)
maintained pursuant to a collective bargaining agreement, or other arrangement under which more
than one employer makes contributions and to which any Canadian Loan Party or any Canadian
Subsidiary is making or accruing an obligation to make contributions or has within the preceding
five years made or accrued such contributions or (c) any other plan with respect to which any
Canadian Loan Party has incurred or may incur liability, including contingent liability either to
such plan or to any Person, administration or Governmental Authority, including the FSCO.
“Canadian Pension Plan” shall not include the group registered retirement savings plan in
which the employees of any Canadian Loan Party or any Canadian Subsidiary participate and which is
not subject to any pension benefits standards legislation or the registered pension plan provisions
of the Income Tax Act (Canada).

     “Canadian Prime Rate” means, for any day, the greater of (i) the rate of interest
publicly announced from time to time by the Canadian Agent as its reference rate of interest for
loans made in CD$ and designated as its “prime” rate being a rate set by Canadian Agent based upon
various factors, including Canadian Agent’s costs and desired return, general economic conditions
and other factors and is used as a reference point for pricing some loans, provided that in the
event that the Canadian Agent (including any successor or assignor) does not at any time publicly
announce a prime rate, such rate shall be the “prime rate” publicly announced by a Schedule 1
chartered bank in Canada selected by the Canadian Agent, (ii) the Bank of Canada overnight rate,
which is the rate of interest charged by the Bank of Canada on one-day loans to financial
institutions, for such day, plus 0.50%, and (iii) the BA Equivalent Rate for a one month Interest
Period as determined on such day, plus 1.0%. Any change in the prime rate announced by the
Canadian Agent shall take effect at the opening of business on the day specified in the public
announcement of such change. Each interest rate based on the Canadian Prime Rate hereunder, shall
be adjusted simultaneously with any change in the Canadian Prime Rate.

     “Canadian Prime Rate Loan” means a Loan that bears interest based on the Canadian
Prime Rate.

     “Canadian Priority Payable Reserves” means, without duplication of any other Reserves
with respect to the Canadian Loan Parties, such reserves as any Co-Collateral Agent or the Canadian
Agent from time to time determines in its Permitted Discretion as being appropriate to reflect any
amounts secured by any Liens, choate or inchoate, which rank or are capable of ranking in priority
to, or pari passu with the Liens of the Administrative Agent or the Canadian Agent, as applicable,
and/or any amounts which may represent costs relating to the enforcement of the Liens of the
Administrative Agent or the Canadian Agent, as applicable, on the Collateral including, without
limitation, any such amounts due and owing by any Borrowing Base Party and not paid for wages
(including any amounts protected by the Wage Earner Protection Program Act (Ontario)), amounts due
and owing by any Borrowing Base Party and not paid for vacation pay, amounts due and owing by any
Borrowing Base Party and not paid under any legislation relating to workers’ compensation or to
employment insurance, all amounts deducted or withheld and not paid and remitted when due under the
Income Tax Act (Canada), amounts currently or past due and owing by any Borrowing Base Party and
not paid for realty, municipal or similar

-11-

 

Taxes (to the extent impacting personal or movable property) and all amounts currently or past
due and owing by any Borrower and not contributed, remitted or paid to any Plan or under the Canada
Pension Plan, the Pension Benefits Act (Ontario) or any similar legislation.

     “Canadian Security Documents” means each General Security Agreement, Deed of Hypothec
and each other security agreement or other instrument or document executed and delivered by any
Canadian Loan Party to the Canadian Agent pursuant to this Agreement or any other Loan Document
granting a Lien on assets of any Canadian Loan Party for the benefit of the Canadian Credit
Parties, as security for the Canadian Liabilities.

     “Canadian Subsidiary” means any Subsidiary that is organized under the laws of Canada
or any province or territory thereof.

     “Canadian Swing Line Note” means the promissory note of the Canadian Borrower
substantially in the form of Exhibit C-3, payable to the order of the applicable Swing Line
Lender, evidencing the Swing Line Loans made by the Swing Line Lender to the Canadian Borrower.

     “Canadian Swing Line Sublimit” means an amount equal to the lesser of (a) $1,500,000
and (b) the Aggregate Canadian Commitments. The Canadian Swing Line Sublimit is part of, and not
in addition to, the Aggregate Canadian Commitments.

     “Capital Expenditures” means, without duplication and with respect to any Person for
any period, all expenditures made (whether made in the form of cash or other property) or costs
incurred for the acquisition or improvement of fixed or capital assets of such Person (excluding
normal replacements and maintenance which are properly charged to current operations), in each case
that are (or should be) capitalized under GAAP, but excluding Capital Lease Obligations incurred by
a Person during such period. For purposes of this definition, the purchase price of Equipment that
is purchased substantially contemporaneously with the trade-in or sale of similar Equipment or with
insurance proceeds therefrom shall be included in Capital Expenditures only to the extent of the
gross amount by which such purchase price exceeds the credit granted to such Person for the
Equipment being traded in by the seller of such new Equipment, the proceeds of such sale or the
amount of the insurance proceeds, as the case may be.

     “Capital Lease Obligations” means, with respect to any Person for any period, the
obligations of such Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof, which obligations
are required to be classified and accounted for as a capital lease on a balance sheet of such
Person under GAAP and the amount of which obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

     “Cash Collateral Account” means (i) in the case of the Domestic L/C Obligations, an
account established by one or more of the Domestic Loan Parties with the Administrative Agent, for
its own benefit and the benefit of the other Domestic Credit Parties, at Bank of America under the
sole and exclusive dominion and control of the Administrative Agent (subject to the rights of the
US Term Loan Agent, Term Loan Collateral Agent and the Euro Term Loan Agent as described in the
Intercreditor Agreement), in the name of the Administrative Agent or as the Administrative Agent
shall otherwise direct, in which deposits are required to be made by the Domestic Borrowers in
respect of the Domestic L/C Obligations in accordance with Section 2.03(g) or Section
ARTICLE VIII(u); and (ii) in the case of the Canadian L/C Obligations, an interest bearing
account established by any Canadian Loan Party with the Canadian Agent, for its own benefit and the
benefit of the other Canadian Credit Parties, at Bank of America-Canada Branch under the sole and
exclusive dominion and control of the Canadian Agent, in the name of the Canadian Agent or as the
Canadian Agent shall otherwise direct, in which deposits are

-12-

 

required to be made by the Canadian Borrower in respect of the Canadian L/C Obligations in
accordance with Section 2.03(g) or Section ARTICLE VIII(u).

     “Cash Collateralize” has the meaning specified in Section 2.03(g).

     “Cash Dominion Event” means any of (i) the occurrence and continuance of any Event of
Default, (ii) the failure of the Borrowers to maintain Domestic Availability for three (3)
consecutive Business Days at least equal to the greater of (x) twenty percent (20%) of the Total
Loan Cap or (y) $30,000,000, or (iii) at any time after the Closing Date, the failure to either (a)
refinance the Pilot SAS Facility or (b) enter into a binding commitment reasonably satisfactory to
the Agents to refinance the Pilot SAS Facility (such refinancing to close by no later than the
maturity date thereof then in effect), in each case by no later than that date which is fifteen
(15) days prior to the maturity date of the Pilot SAS Facility then in effect. For purposes of
this Agreement, the occurrence of a Cash Dominion Event shall be deemed continuing (i) so long as
such Event of Default is continuing, (ii) if such Cash Dominion Event arises as a result of the
Borrowers’ failure to maintain Domestic Availability as required under clause (ii) of the
immediately preceding sentence, until Domestic Availability is at least equal to the greater of (x)
twenty percent (20%) of the Total Loan Cap or (y) $30,000,000 for sixty (60) consecutive calendar
days, and/or (iii) if such Cash Dominion Event has occurred due to events described in clause (iii)
of the immediately preceding sentence, until such time as the Pilot SAS Facility has been
refinanced, or a satisfactory binding commitment to refinance the Pilot SAS Facility (such
refinancing to close by no later than the maturity date thereof then in effect) has been entered
into; in which case a Cash Dominion Event shall no longer be deemed to be continuing for purposes
of this Agreement; provided that a Cash Dominion Event shall be deemed continuing (even if an Event
of Default is no longer continuing and/or Domestic Availability exceeds the required amount for
sixty (60) consecutive calendar days and/or the Pilot SAS Facility is refinanced or a binding
commitment therefor has been entered into) at all times after a Cash Dominion Event has occurred
and been discontinued on three (3) occasions after the Closing Date.

     “Cash Equivalent” means an Investment of any type specified in clauses (a) through (h)
in the definition below of the term “Permitted Investment”.

     “Cash Management Reserves ” means such reserves as the Administrative Agent, from time
to time, determines in its Permitted Discretion as being appropriate to reflect the reasonably
anticipated liabilities of the Loan Parties with respect to Cash Management Services then provided
or outstanding.

     “Cash Management Services” means any one or more of the following types or services or
facilities provided to any Loan Party by the Administrative Agent or any Lender or any of their
respective Lender Affiliates: (a) ACH transactions, (b) cash management services, including,
without limitation, controlled disbursement services, treasury, depository, overdraft, and
electronic funds transfer services, (c) foreign exchange facilities, (d) credit card processing
services, and (e) credit or debit cards.

     “CD$” or “Canadian Dollars” means lawful money of Canada.

     “CERCLA” means the Comprehensive Environmental Response, Compensation, and Liability
Act, 42 U.S.C. § 9601 et seq.

     “CFC” means (a) a Subsidiary that is a controlled foreign corporation under Section
957 of the Code, or (b) an entity treated as disregarded for United States federal income tax
purposes that owns more than 65% of the voting Equity Interests of a Subsidiary described in clause
(a) of this definition.

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule,

-13-

 

regulation or treaty or in the administration, interpretation or application thereof by any
Governmental Authority or (c) the making or issuance of any request, guideline or directive
(whether or not having the force of law) by any Governmental Authority, requiring compliance by any
Credit Party (or any lending office of such Credit Party or by such Credit Party’s holding company,
if any).

     “Change of Control” means an event or series of events by which:

     (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, but excluding (i) any employee benefit plan of such person
or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or
other fiduciary or administrator of any such plan and (ii) Rhône Capital L.P. and its
Affiliates) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Securities Exchange Act of 1934, except that a person or group shall be deemed to have
“beneficial ownership” of all securities that such person or group has the right to acquire,
whether such right is exercisable immediately or only after the passage of time (such right,
an “option right”)), directly or indirectly, of 35% or more of the Equity Interests
of the Parent entitled to vote for members of the board of directors or equivalent governing
body of the Parent on a fully-diluted basis (and taking into account all such Equity
Interests that such “person” or “group” has the right to acquire pursuant to any option
right); or

     (b) during any period of twelve (12) consecutive months, a majority of the members of
the board of directors or other equivalent governing body of the Parent cease to be composed
of individuals (i) who were members of that board or equivalent governing body on the first
day of such period, (ii) whose election or nomination to that board or equivalent governing
body was approved by individuals referred to in clause (i) above constituting at the time of
such election or nomination at least a majority of that board or equivalent governing body
or (iii) whose election or nomination to that board or other equivalent governing body was
approved by individuals referred to in clauses (i) and (ii) above constituting at the time
of such election or nomination at least a majority of that board or equivalent governing
body (excluding, in the case of both clause (ii) and clause (iii), any individual whose
initial nomination for, or assumption of office as, a member of that board or equivalent
governing body occurs as a result of an actual or threatened solicitation of proxies or
consents for the election or removal of one or more directors by any person or group other
than a solicitation for the election of one or more directors by or on behalf of the board
of directors); or

     (c) any “change in control” as defined in any document governing Material Indebtedness
of any Loan Party; or

     (d) the Parent fails at any time to own, directly or indirectly, 100% of the Equity
Interests of each other Loan Party free and clear of all Liens (other than (i) the Liens in
favor of the Administrative Agent or the Canadian Agent under the Security Documents, (ii)
Liens securing obligations in respect of the U.S. Term Loan Credit Agreement and loan
documents relating thereto, and (iii) Liens securing obligations in respect of the Euro Term
Loan Credit Agreement and loan documents relating thereto), except where such failure is as
a result of a transaction permitted by the Loan Documents.

     “Closing Date” means July 31, 2009.

     “Co-Collateral Agents” means, collectively, Bank of America and GECC, acting in their
capacity as co-collateral agents, each for its own benefit and the benefit of the other Credit
Parties, or any successor collateral agent.

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     “Code” means the Internal Revenue Code of 1986, and the regulations promulgated
thereunder, as amended and in effect.

     “Collateral” means any and all “Collateral” as defined in any applicable Security
Document and all other property of any Loan Party that is or is intended under the terms of the
Security Documents to be subject to Liens in favor of the Administrative Agent (for the benefit of
itself and the other Credit Parties) or the Canadian Agent (for the benefit of itself and the other
Canadian Credit Parties), as applicable.

     “Collateral Access Agreement” means an agreement substantially in the form attached
hereto as Exhibit I-1 (Collateral Access Agreement – Domestic Loan Parties) or Exhibit
I-2 (Collateral Access Agreement – Canadian Loan Parties) or otherwise reasonably satisfactory
in form and substance to the Agents (with respect to any location of the Domestic Loan Parties) or
the Canadian Agent or any Agent (with respect to any location of the Canadian Loan Parties),
executed by (a) a bailee or other Person in possession of Collateral, or (b) a landlord of Real
Estate leased by any Borrowing Base Party, in each case, pursuant to which such landlord, bailee or
other Person (i) acknowledges the Lien granted to the Administrative Agent or the Canadian Agent,
as applicable, on the Collateral, (ii) releases or subordinates such Person’s Liens in the
Collateral held by such Person or located on such Real Estate, (iii) provides the Administrative
Agent or the Canadian Agent, as applicable, with access to the Collateral held by such bailee or
other Person or located in or on such Real Estate, (iv) as to any landlord (x) provides the
Administrative Agent or the Canadian Agent, as applicable, with access to the Collateral located in
or on such Real Estate and a reasonable time to sell and dispose of the Collateral from such Real
Estate, and (y) agrees to give the Administrative Agent or the Canadian Agent, as applicable,
reasonable prior notice before terminating the lease covering such Real Estate and an opportunity
to cure any default of the applicable tenant if the Administrative Agent or the Canadian Agent, as
applicable, so elects.

     “Collateral Issues” has the meaning given such term in Section 0.

     “Commercial Letter of Credit” means any letter of credit or similar instrument
(including, without limitation, bankers’ acceptances) issued for the purpose of providing the
primary payment mechanism in connection with the purchase of any materials, goods or services by a
Loan Party in the ordinary course of business of such Loan Party.

     “Commitment” means, as to each Lender, its Domestic Commitment and its Canadian
Commitment.

     “Commitment Fee Adjustment Date” means the first day of each calendar quarter.

     “Commitment Increase” has the meaning provided in Section 2.13(a).

     “Committed Borrowing” means each Committed Canadian Borrowing and each Committed
Domestic Borrowing.

     “Committed Canadian Borrowing” means a borrowing consisting of simultaneous Committed
Canadian Loans of the same Type and, in the case of BA Equivalent Loans or LIBO Rate Loans, having
the same Interest Period made by each of the Canadian Lenders pursuant to Section 2.01.

     “Committed Canadian Loan” means any loan at any time made by any Canadian Lender
pursuant to Section 2.01.

-15-

 

     “Committed Domestic Borrowing” means a borrowing consisting of simultaneous Committed
Domestic Loans of the same Type and, in the case of LIBO Rate Loans, having the same Interest
Period made by each of the Domestic Lenders pursuant to Section 2.01.

     “Committed Domestic Loan” means any loan at any time made by any Domestic Lender
pursuant to Section 2.01.

     “Committed Loan” means any loan at any time made by any Lender (including, without
limitation, any Committed Domestic Loan and any Committed Canadian Loan) pursuant to Section
2.01.

     “Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion
of a Committed Loan from one Type to the other, or (c) a continuation of a LIBO Rate Loan or a BA
Equivalent Loan, pursuant to Section 2.02(b), which, if in writing, shall be substantially
in the form of Exhibit A-1 (Domestic Committed Loan Notice) or Exhibit A-2
(Canadian Committed Loan Notice), as applicable.

     “Compliance Certificate” means a certificate substantially in the form of Exhibit
D.

     “Consent” means (a) actual written consent given by a Lender from whom such consent is
sought; or (b) the passage of ten (10) Business Days from receipt of written notice to a Lender
from the Administrative Agent of a proposed course of action to be followed by the Administrative
Agent without such Lender’s giving the Administrative Agent written notice that such Lender objects
to such course of action.

     “Consolidated” means, when used to modify a financial term, test, statement, or report
of a Person, the application or preparation of such term, test, statement or report (as applicable)
based upon the consolidation, in accordance with GAAP, of the financial condition or operating
results of such Person and its Subsidiaries.

     “Consolidated EBITDA” means, at any date of determination, an amount equal to
Consolidated Net Income of the Parent and the Americas Subsidiaries on an Americas Consolidated
basis for the most recently completed Measurement Period, plus (a) the following to the extent
deducted in calculating such Consolidated Net Income: (i) Consolidated Interest Charges, (ii) the
provision for federal, state, local and foreign income Taxes, (iii) depreciation and amortization
expense, (iv) other non-recurring expenses reducing such Consolidated Net Income which do not
represent a cash item in such period or any future period, (v) costs, fees and expenses in
connection with the Loan Documents, the Term Loan Documents and the other transactions occurring on
or about the Closing Date, (vi) costs, fees and expenses of business consultants, advisors and
other outside professionals incurred prior to July 31, 2009, not to exceed $2,000,000, (vii)
impairment charges and asset write-offs pursuant to GAAP and any non-cash stock compensation
expenses, and (viii) other non-cash restructuring, severance and integration charges reducing such
Consolidated Net Income (provided that if any such non-cash charge represents an accrual or reserve
for potential cash items in any future period, the cash payment in respect thereof in such future
period shall be subtracted from Consolidated EBITDA to such extent in such future period) (in each
case of or by the Parent and the Americas Subsidiaries for such Measurement Period), minus (b) the
following to the extent included in calculating such Consolidated Net Income: (i) federal, state,
local and foreign income tax credits and (ii) all non-cash items increasing Consolidated Net Income
(in each case of or by the Parent and the Americas Subsidiaries for such Measurement Period), all
as determined on an Americas Consolidated basis, in accordance with GAAP, as applicable.

     “Consolidated Fixed Charge Coverage Ratio” means, at any date of determination, the
ratio of (a) (i) Consolidated EBITDA for the most recently completed Measurement Period
minus (ii) Capital

-16-

 

Expenditures paid in cash during such Measurement Period minus (iii) the aggregate
amount of Federal, state, local, provincial, territorial, municipal and foreign income taxes paid
in cash during such Measurement Period (net of federal, state, local, provincial, territorial,
municipal and foreign income tax refunds received in cash during such Measurement Period) to (b)
the sum of (i) Debt Service Charges for such Measurement Period plus (ii) the aggregate
amount of all Restricted Payments paid in cash by the Parent during such Measurement Period, in
each case, of or by the Parent and the Americas Subsidiaries (other than clause (b)(ii) above), and
determined on an Americas Consolidated basis, in accordance with GAAP, as applicable.

     “Consolidated Interest Charges” means, for any Measurement Period, the sum of (a) all
interest, premium payments, debt discount, fees, charges and related expenses , in each case to the
extent treated as interest in accordance with GAAP, including, without limitation, all commissions,
discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance
financing and net costs under Swap Contracts, (b) all interest paid or payable with respect to
discontinued operations and (c) the portion of rent expense with respect to such period under
Capital Lease Obligations that is treated as interest, in accordance with GAAP in each case of or
by the Parent and the Americas Subsidiaries for the most recently completed Measurement Period, all
as determined on an Americas Consolidated basis.

     “Consolidated Net Income” means, as of any date of determination, the net income of
the Parent and the Americas Subsidiaries for the most recently completed Measurement Period, all as
determined on an Americas Consolidated basis, in accordance with GAAP, as applicable;
provided, however, that there shall be excluded (a) extraordinary gains and
extraordinary losses for such Measurement Period, (b) the income (or loss) of such Person during
such Measurement Period in which any other Person has a joint interest, except to the extent of the
amount of cash dividends or other distributions actually paid in cash to such Person during such
period, (c) the income (or loss) of such Person during such Measurement Period and accrued prior to
the date it becomes a Subsidiary of a Person or any of such Person’s Subsidiaries or is merged into
or consolidated with a Person or any of its Subsidiaries or that Person’s assets are acquired by
such Person or any of its Subsidiaries, and (d) the income of any direct or indirect Subsidiary of
a Person to the extent that the declaration or payment of dividends or similar distributions by
that Subsidiary of that income is not at the time permitted by operation of the terms of its
Organization Documents or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Subsidiary, except that the Parent’s equity in any net
loss of any such Americas Subsidiary for such Measurement Period shall be included in determining
Consolidated Net Income.

     “Contractual Obligation” means, as to any Person, any provision of any agreement,
instrument or other undertaking to which such Person is a party or by which it or any of its
property is bound.

     “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings
correlative thereto.

     “Cost” means the lower of cost or market value of Inventory, based upon the Borrowers’
accounting practices, known to the Administrative Agent, which practices are in effect on the
Closing Date as such calculated cost is determined from invoices received by the Borrowing Base
Parties, the Borrowing Base Parties’ purchase journals or the Borrowing Base Parties’ stock ledger.
“Cost” does not include inventory capitalization costs or other non-purchase price charges (such
as freight) used in the Borrowing Base Parties’ calculation of cost of goods sold.

     “Covenant Compliance Event” means, as of any date, Domestic Availability at any time
is less than the greater of (x) fifteen percent (15%) of the Total Loan Cap or (y) $30,000,000.
For purposes

-17-

 

hereof, the occurrence of a Covenant Compliance Event shall be deemed continuing until
Domestic Availability is at least equal to the greater of (x) fifteen percent (15%) of the Total
Loan Cap or (y) $30,000,000 for sixty (60) consecutive calendar days, in which case a Covenant
Compliance Event shall no longer be deemed to be continuing for purposes of this Agreement.

     “Credit Card Advance Rate” means eighty-five percent (85%).

     “Credit Card Notifications” has the meaning provided in Section 6.07(a)(i).

     “Credit Card Receivables” means each Account, together with all income, payments and
proceeds thereof, owed by a major credit or debit card issuer (including, but not limited to, Visa,
MasterCard and American Express and such other issuers approved by the Agents (such approval not to
be unreasonably withheld)) to a Borrowing Base Party resulting from charges by a customer of a
Borrowing Base Party on credit or debit cards issued by such issuer in connection with the sale of
goods by a Borrowing Base Party, or services performed by a Borrower, in each case in the ordinary
course of its business.

     “Credit Extension” means each of (a) a Canadian Credit Extension and (b) a Domestic
Credit Extension.

     “Credit Party” or “Credit Parties” means (a) individually, (i) each Canadian
Credit Party, (ii) each Domestic Credit Party, (iii) the Arrangers, (iv) each beneficiary of each
indemnification obligation undertaken by any Loan Party under any Loan Document, (v) each Lender
Affiliate of any Domestic Lender or Canadian Lender or the Administrative Agent or Canadian Agent
providing Cash Management Services or Bank Products to a Loan Party, and (vi) the successors and
assigns of each of the foregoing, and (b) collectively, all of the foregoing.

     “Credit Party Expenses” means: (a) all reasonable and documented out-of-pocket
expenses incurred by any of the Agents, the Canadian Agent, the Arrangers and their respective
Lender Affiliates, in connection with this Agreement and the other Loan Documents, including,
without limitation (but in any event subject to the limitations described hereinbelow), (i) the
reasonable and documented fees, charges and disbursements of (A) counsel for any of the Agents, the
Canadian Agent, and the Arrangers (limited to not more than one primary counsel (except in the
case of counsel to GECC’s and GECM’s incurred in connection with the initial closing of the credit
facility provided under this Agreement, subject to the limitation described in the proviso below)
and necessary local counsel (limited to one local counsel per jurisdiction except in the case of
Canadian counsel to GECC incurred in connection with the initial closing of the credit facility
provided in this Agreement)), (B) outside consultants for any of the Agents and the Canadian Agent,
(C) appraisers, (D) commercial finance examinations, and (E) all such out-of-pocket expenses
incurred during any workout or restructuring negotiations in respect of the Obligations, and (ii)
all reasonable and documented out-of-pocket expenses incurred in connection with (A) the
syndication of the credit facility provided for herein, (B) the preparation, negotiation,
administration, management, execution and delivery of this Agreement and the other Loan Documents
or any amendments, modifications or waivers of the provisions thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (C) the enforcement or
protection of their rights in connection with this Agreement or the other Loan Documents or efforts
to preserve, protect, collect, or enforce the Collateral or in connection with any proceeding under
any Debtor Relief Laws, or (D) any workout or restructuring negotiations in respect of any
Obligations; provided that, notwithstanding anything to the contrary contained herein, the
aggregate amount included in the definition of Credit Party Expenses on account of fees, charges
and disbursements of counsel to GECC and GECM incurred in connection with the initial closing of
the credit facility provided under this Agreement shall be limited to $200,000 inclusive of the
fees, charges and disbursements of such Credit Parties’ Canadian counsel; and (b) with respect to
the L/C Issuer and its Lender Affiliates, all reasonable and documented out-of-pocket

-18-

 

expenses incurred in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder; and (c) all reasonable and documented
out-of-pocket expenses incurred by the Credit Parties who are not the Agents, the Canadian Agent,
the Arrangers, the L/C Issuer or any Lender Affiliate of any of them in connection with the
enforcement of the Credit Parties’ rights and remedies under any of the Loan Documents or
applicable Law including in the course of any work-out or restructuring of the Loans or other
Obligations during the pendency of any Event of Default, provided that such Credit Parties shall be
entitled to reimbursement for no more than one counsel representing all such Credit Parties (absent
a conflict of interest in which case the Credit Parties may engage and be reimbursed for additional
counsel).

     “Customer Credit Liabilities” means, at any time, the aggregate remaining value at
such time of (a) outstanding gift certificates and gift cards of the Borrowing Base Parties
entitling the holder thereof to use all or a portion of the certificate or gift card to pay all or
a portion of the purchase price for any Inventory, and (b) outstanding merchandise credits and
customer deposits of the Borrowing Base Parties.

     “Customs Broker Agreement” means an agreement substantially in the form attached
hereto as Exhibit J-1 (with respect to any Domestic Borrower), Exhibit J-2 (with
respect to any Canadian Loan Party), or otherwise in form and substance reasonably satisfactory to
the Agents and (if a party thereto) the Canadian Agent, among a Borrowing Base Party, a customs
broker, NVOCC or carrier, and the Administrative Agent or the Canadian Agent, as applicable, in
which the customs broker, NVOCC or carrier acknowledges that it has control over and holds the
documents evidencing ownership of the subject Inventory or other property for the benefit of the
Administrative Agent or the Canadian Agent, as applicable, and agrees, upon notice from the
Administrative Agent or the Canadian Agent, as applicable, to hold and dispose of the subject
Inventory and other property solely as directed by the Administrative Agent or the Canadian Agent,
as applicable.

     “DDA” means any checking, savings or other deposit account maintained by any of the
Loan Parties. All funds in each DDA shall be conclusively presumed to be Collateral or the
proceeds of Collateral and the Credit Parties shall have no duty to inquire as to the source of the
amounts on deposit in any DDA.

     “Debt Service Charges” means, for any Measurement Period, the sum of (a) Consolidated
Interest Charges paid in cash or required to be paid in cash for such Measurement Period, plus (b)
the principal amount of all scheduled amortization payments made in cash or required to be made in
cash by the Parent or the Americas Subsidiaries on account of Indebtedness (excluding the
Obligations and any Synthetic Lease Obligations but including, without limitation, any Capital
Lease Obligations) during such Measurement Period, in each case determined on an Americas
Consolidated basis, in accordance with GAAP, as applicable.

     “Debtor Relief Laws” means each of (i) the Bankruptcy Code of the United States, (ii)
the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada) and
the Winding-up and Restructuring Act (Canada), and (iii) all other liquidation, conservatorship,
bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership,
insolvency, reorganization, or similar debtor relief Laws of the United States, Canada or other
applicable jurisdictions from time to time in effect and affecting the rights of creditors
generally.

     “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would be an Event of Default.

     “Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, or Canadian Liabilities, an interest rate equal to (i) the Prime Rate plus (ii) the
Applicable Margin, if any,

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applicable to Domestic Prime Rate Loans, plus (iii) two percent (2%) per annum;
provided, however, that with respect to a LIBO Rate Loan, the Default Rate shall be
an interest rate equal to the interest rate (including any Applicable Margin) otherwise applicable
to such LIBO Rate Loan plus two percent (2%) per annum; (b) when used with respect to Canadian
Liabilities, an interest rate equal to (i) the Canadian Prime Rate plus (ii) the Applicable Margin,
if any, applicable to Canadian Prime Rate Loans, plus (iii) two percent (2%) per annum;
provided, however, that with respect to a (A) LIBO Rate Loan, the Default Rate
shall be an interest rate equal to the interest rate (including any Applicable Margin) otherwise
applicable to such LIBO Rate Loan plus two percent (2%) per annum, and (B) BA Equivalent Loan, the
Default Rate shall be an interest rate equal to the interest rate (including any Applicable Margin)
otherwise applicable to such BA Equivalent Loan plus two percent (2%) per annum; and (c) when used
with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus two percent (2%)
per annum.

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Committed Loans, participations in L/C Obligations or participations in Swing Line Loans required
to be funded by it hereunder within one Business Day of the date required to be funded by it
hereunder, (b) has otherwise failed to pay over to the Administrative Agent, the Canadian Agent or
any other Lender any other amount required to be paid by it hereunder within one Business Day of
the date when due, unless the subject of a good faith dispute, or (c) has been deemed insolvent by
the Administrative Agent in good faith or become the subject of any proceeding under any Debtor
Relief Law.

     “Deteriorating Lender” means any Defaulting Lender or any Lender as to which (a) the
L/C Issuer or the Swing Line Lender believes in good faith that such Lender has defaulted in
fulfilling its obligations under one or more other syndicated credit facilities, or (b) a Person
that Controls such Lender has been deemed insolvent by the Administrative Agent in good faith or
become the subject of any proceeding under any Debtor Relief Law.

     “Dilution Percent” means, for any period, that percentage reasonably determined by the
Agents in their Permitted Discretion (with respect to the Domestic Borrowing Base) or the Canadian
Agent and the Agents in their Permitted Discretion (with respect to the Canadian Borrowing Base) by
dividing (a) the amount of charge-offs, returns of goods purchased from the Borrowing Base Parties
and any other non-cash reductions to trade receivables during such period which had, at the time of
sale, resulted in the creation of a trade receivable, by (b) the amount of sales (exclusive of
sales and other similar taxes) of the Borrowing Base Parties during such period.

     “Dilution Reserve” means a Reserve in amounts established by any Agent (with respect
to the Domestic Borrowing Base) or the Canadian Agent or any Agent (with respect to the Canadian
Borrowing Base) from time to time in its Permitted Discretion as being appropriate to reflect that
the Dilution Percent is or is reasonably anticipated to be greater than five percent (5%).

     “Disposition” or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction) (whether in one transaction or in a
series of transactions) of any property (including, without limitation, any Equity Interests) by
any Person, including any sale, assignment, transfer or other disposal, with or without recourse,
of any notes or accounts receivable or any rights and claims associated therewith.

     “Disqualified Stock” means any Equity Interest that, by its terms (or by the terms of
any security into which it is convertible, or for which it is exchangeable, in each case at the
option of the holder thereof), or upon the happening of any event, matures or is mandatorily
redeemable (other than solely for Equity Interests that do not constitute Disqualified Stock),
pursuant to a sinking fund obligation or otherwise, or redeemable (other than solely for Equity
Interests that do not constitute Disqualified Stock)

-20-

 

at the option of the holder thereof, in whole or in part, on or prior to the date that is 91
days after the Maturity Date; provided, however, that (i) only the portion of such
Equity Interests which so matures or is so mandatorily redeemable, is so convertible or
exchangeable or is so redeemable at the option of the holder thereof prior to such date shall be
deemed to be Disqualified Stock and (ii) with respect to any Equity Interests issued to any
employee or to any plan for the benefit of employees of the Parent or its Subsidiaries or by any
such plan to such employees, such Equity Interest shall not constitute Disqualified Stock solely
because it may be required to be repurchased by the Parent or one of its Subsidiaries in order to
satisfy applicable statutory or regulatory obligations or as a result of such employee’s
termination, resignation, death or disability and if any class of Equity Interest of such Person
that by its terms authorizes such Person to satisfy its obligations thereunder by delivery of an
Equity Interest that is not Disqualified Stock, such Equity Interests shall not be deemed to be
Disqualified Stock. Notwithstanding the preceding sentence, any Equity Interest that would
constitute Disqualified Stock solely because the holders thereof have the right to require a Loan
Party to repurchase such Equity Interest upon the occurrence of a change of control or an asset
sale shall not constitute Disqualified Stock. The amount of Disqualified Stock deemed to be
outstanding at any time for purposes of this Agreement will be the maximum amount that the any Loan
Party may become obligated to pay upon maturity of, or pursuant to any mandatory redemption
provisions of, such Disqualified Stock or portion thereof, plus accrued dividends.

     “Dollars” and “$” mean lawful money of the United States.

     “Domestic Availability” means, as of any date of determination thereof, the result, if
a positive number, of:

     (a) the Domestic Loan Cap

Minus

     (b) the Total Domestic Outstandings on such date.

     “Domestic Borrowers” has the meaning specified in the introductory paragraph hereto.

     “Domestic Borrowing” means a Committed Domestic Borrowing or a Swing Line Borrowing
made to the Domestic Borrowers, as the context may require.

     “Domestic Borrowing Base” means, at any time of calculation, an amount equal to:

     (a) the face amount of Eligible Credit Card Receivables of the Domestic Borrowers
multiplied by the Credit Card Advance Rate;

     plus

     (b) the face amount of Eligible Trade Receivables of the Domestic Borrowers (net of
Receivables Reserves applicable thereto) multiplied by the Receivables Advance Rate;

     plus

     (c) the Cost of Eligible Inventory (other than Eligible In-Transit Inventory) of the
Domestic Borrowers, net of Inventory Reserves applicable thereto, multiplied by the
Appraisal Percentage of the Appraised Value of Eligible Inventory (other than Eligible
In-Transit Inventory) of the Domestic Borrowers;

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     plus

     (d) the lesser of (i) $27,750,000 and (ii) the sum of (x) the Cost of Eligible
In-Transit Inventory of the Domestic Borrowers, net of Inventory Reserves applicable
thereto, multiplied by the Appraisal Percentage of the Appraised Value of Eligible
In-Transit Inventory of the Domestic Borrowers, and (y) with respect to any Eligible Letter
of Credit, the Appraisal Percentage of the Appraised Value of the Inventory of the Domestic
Borrowers supported by such Eligible Letter of Credit, multiplied by the Cost of such
Inventory of the Domestic Borrowers when completed, net of applicable Reserves;

     minus 

     (e) the then amount of all Availability Reserves applicable to the Domestic Borrowers.
In no event shall the amount of Availability Reserves subtracted in calculating the Domestic
Borrowing Base be duplicative of Availability Reserves subtracted in calculating the
Canadian Borrowing Base.

     “Domestic Commitment Fee” has the meaning provided in Section 2.08(d)(i).

     “Domestic Commitments” means, as to each Domestic Lender, its obligation to (a) make
Committed Domestic Loans to the Domestic Borrowers pursuant to Section 2.01, (b) purchase
participations in Domestic L/C Obligations, and (c) purchase participations in Swing Line Loans
made to the Domestic Borrowers, in an aggregate principal amount at any one time outstanding not to
exceed the amount set forth opposite such Domestic Lender’s name on Schedule 2.01 or in the
Assignment and Assumption pursuant to which such Domestic Lender becomes a party hereto, as
applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

     “Domestic Concentration Account” has the meaning provided in Section 6.13(c).

     “Domestic Credit Extensions” mean each of the following: (a) a Domestic Borrowing and
(b) a Domestic L/C Credit Extension.

     “Domestic Credit Party” or “Domestic Credit Parties” means (a) individually,
(i) each Domestic Lender and its Lender Affiliates, (ii) the Agents and their respective Lender
Affiliates, (iii) each L/C Issuer of any Domestic Letter of Credit and (iv) the successors and
assigns of each of the foregoing, and (b) collectively, all of the foregoing.

     “Domestic L/C Borrowing” means an extension of credit resulting from a drawing under
any Domestic Letter of Credit which has not been reimbursed on or prior to the date required to be
reimbursed by the Domestic Borrowers pursuant to Section 2.03(c)(i) or refinanced as a
Committed Domestic Borrowing.

     “Domestic L/C Credit Extension” means, with respect to any Domestic Letter of Credit,
the issuance thereof or extension of the expiry date thereof, or the increase of the amount
thereof.

     “Domestic L/C Obligations” means, as at any date of determination and without
duplication, the aggregate Stated Amount of all outstanding Domestic Letters of Credit plus the
aggregate of all Unreimbursed Amounts under Domestic Letters of Credit, including all Domestic L/C
Borrowings.

     “Domestic Lenders” means the Lenders having Domestic Commitments from time to time or
at any time.

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     “Domestic Letter of Credit” means each Letter of Credit issued hereunder for the
account of the Domestic Borrowers.

     “Domestic Letter of Credit Sublimit” means an amount equal to $92,500,000. The
Domestic Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Domestic
Commitments. A permanent reduction of the Aggregate Domestic Commitments shall not require a
corresponding pro rata reduction in the Domestic Letter of Credit Sublimit; provided, however, that
if the Aggregate Domestic Commitments are reduced to an amount less than the Domestic Letter of
Credit Sublimit, then the Domestic Letter of Credit Sublimit shall be reduced to an amount equal to
(or, at Lead Borrower’s option, less than) the Aggregate Domestic Commitments.

     “Domestic Loan” means an extension of credit by a Domestic Lender to the Domestic
Borrowers under Article II in the form of a Committed Loan or a Swing Line Loan.

     “Domestic Loan Cap” means, at any time of determination, the lesser of (a) the
Aggregate Domestic Commitments or (b) the Domestic Borrowing Base.

     “Domestic Loan Parties” means, collectively, the Parent, the Domestic Borrowers and
each Domestic Subsidiary that is a Guarantor of the Obligations. “Domestic Loan Party” means any
one of such Persons.

     “Domestic Note” means a promissory note made by the Domestic Borrowers in favor of a
Domestic Lender evidencing Domestic Loans made by such Domestic Lender, substantially in the form
of Exhibit C-2.

     “Domestic Overadvance” means a Domestic Credit Extension to the extent that,
immediately after the making of such Domestic Credit Extension, the aggregate principal balance of
all Domestic Credit Extensions then outstanding exceeds the Domestic Loan Cap as then in effect.

     “Domestic Pension Plan” means any “employee pension benefit plan” (as such term is
defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of
ERISA and is sponsored or maintained by a Loan Party or any ERISA Affiliate or to which a Loan
Party or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a
multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at
any time during the immediately preceding five plan years.

     “Domestic Prime Rate Loan” means a Loan that bears interest based on the Prime Rate.

     “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States.

     “Domestic Swing Line Note” means the promissory note of the Domestic Borrowers
substantially in the form of Exhibit C-4, payable to the order of the applicable Swing Line
Lender, evidencing the Swing Line Loans made by such Swing Line Lender to the Domestic Borrowers.

     “Domestic Swing Line Sublimit” means an amount equal to the lesser of (a) $20,00,000
and (b) the Aggregate Domestic Commitments. The Domestic Swing Line Sublimit is part of, and not
in addition to, the Aggregate Domestic Commitments.

     “Eligible Assignee” means (a) a Lender or any of its Lender Affiliates; (b) a bank,
insurance company, or company engaged in the business of making commercial loans, which Person,
together with

-23-

 

its Lender Affiliates, has a combined capital and surplus in excess of $250,000,000; (c) an
Approved Fund; (d) any Person to whom a Lender assigns its rights and obligations under this
Agreement as part of an assignment and transfer of such Lender’s rights in and to a material
portion of such Lender’s portfolio of asset based credit facilities, and (e) any other Person
(other than a natural person) approved by (i) the Administrative Agent, the L/C Issuer and the
Swing Line Lender, and (ii) unless an Event of Default has occurred and is continuing, the Lead
Borrower (each such approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include the Parent or any of its
Subsidiaries or other Affiliates, or the US Term Loan Agent or the Euro Term Loan Agent, or any of
their respective Lender Affiliates or Subsidiaries except in connection with the exercise of the
purchase right, as set forth in Section 5.4 of the Intercreditor Agreement.

     “Eligible Credit Card Receivables” means, at the time of any determination thereof,
each Credit Card Receivable that satisfies the following criteria at the time of creation and
continues to meet the same at the time of such determination: such Credit Card Receivable (i) has
been earned by performance and represents the bona fide amounts due to a Borrowing Base Party from
a credit card payment processor and/or credit card issuer, and in each case originated in the
ordinary course of business of such Borrowing Base Party, and (ii) in each case is acceptable to
the Agents (with respect to Credit Card Receivables of a Domestic Borrower) or the Canadian Agent
and the Agents (with respect to Credit Card Receivables of the Canadian Loan Parties), as
applicable, in their Permitted Discretion, and is not ineligible for inclusion in the calculation
of the Canadian Borrowing Base or the Domestic Borrowing Base, as applicable, pursuant to any of
clauses (a) through (k) below. Without limiting the foregoing, to qualify as an Eligible Credit
Card Receivable, an Account shall indicate no Person other than a Borrowing Base Party as payee or
remittance party. In determining the amount to be so included, the face amount of an Account shall
be reduced by, without duplication of any Reserve or any of clauses (a) through (k) below or
otherwise, to the extent not reflected in such face amount, (i) the amount of all accrued and
actual discounts, claims, credits or credits pending, promotional program allowances, price
adjustments, finance charges or other allowances (including any amount that a Borrowing Base Party
may be obligated to rebate to a customer, a credit card payment processor, or credit card issuer
pursuant to the terms of any agreement or understanding (written or oral)) and (ii) the aggregate
amount of all cash received in respect of such Account but not yet applied by the applicable
Borrowing Base Party to reduce the amount of such Credit Card Receivable. Any Credit Card
Receivable meeting the foregoing criteria shall be deemed to be an Eligible Credit Card Receivable
but only as long as such Credit Card Receivable is not included within any of the following
categories, in which case such Credit Card Receivable shall not constitute an Eligible Credit Card
Receivable, unless otherwise agreed by the Agents and (if applicable) the Canadian Agent:

     (a) Credit Card Receivables which do not constitute an “Account” (as defined in the
UCC or the PPSA, as applicable);

     (b) Credit Card Receivables that have been outstanding for more than five (5) Business
Days from the date of sale;

     (c) Credit Card Receivables with respect to which a Borrowing Base Party does not have
good and valid title, free and clear of any Lien (other than Liens granted to the
Administrative Agent or the Canadian Agent, as applicable, pursuant to the Security
Documents and other Permitted Encumbrances not having priority over, or that are pari passu
with, the Lien of the Administrative Agent or the Canadian Agent under applicable Law);

     (d) Credit Card Receivables that are not subject to a first priority Lien in favor of
the Administrative Agent or the Canadian Agent, as applicable, pursuant to the Security
Documents (other than Permitted Encumbrances not having priority over, or that are pari
passu with, the Lien of the Administrative Agent or the Canadian Agent under applicable Law)
(it being the intent that

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chargebacks in the ordinary course by such processors shall not be deemed violative of
this clause);

     (e) Credit Card Receivables which are disputed, are with recourse, or with respect to
which a claim, counterclaim, offset or chargeback has been asserted (but only to the extent
of such disputed amount, claim, counterclaim, offset or chargeback);

     (f) Credit Card Receivables as to which the processor has the right under certain
circumstances to require a Borrowing Base Party to repurchase the Accounts from such credit
card processor;

     (g) Credit Card Receivables due from an issuer or payment processor of the applicable
credit card which is the subject of any proceeding under any Debtor Relief Law;

     (h) Credit Card Receivables which are not a valid, legally enforceable obligation of
the applicable issuer with respect thereto;

     (i) Credit Card Receivables which do not conform in all material respects to all
representations, warranties or other provisions in the Loan Documents relating to Credit
Card Receivables or which are not payable in Dollars (with respect to Credit Card
Receivables of a Domestic Borrower) or in Dollars or CD$ (with respect to Credit Card
Receivables of a Canadian Loan Party);

     (j) Credit Card Receivables which are evidenced by chattel paper or an instrument of
any kind unless such chattel paper or instrument is in the possession of the Administrative
Agent or the Canadian Agent, and to the extent necessary or appropriate, endorsed to the
Administrative Agent or the Canadian Agent, as applicable; or

     (k) Credit Card Receivables which any Agent or, if applicable, the Canadian Agent,
determines in its Permitted Discretion to be uncertain of collection.

     Subject to Section 0, the Agents shall have the right to establish or modify or
eliminate Reserves against Eligible Credit Card Receivables from time to time in their
Permitted Discretion.

     “Eligible In-Transit Inventory” means, as of any date of determination thereof,
without duplication of other Eligible Inventory, In-Transit Inventory:

     (a) Which satisfies all of the requirements for Eligible Inventory other than the
requirement that it be located in the United States (with respect to In-Transit Inventory of
a Domestic Borrower) or Canada (with respect to In-Transit Inventory of a Canadian Loan
Party);

     (b) Which has been fully paid for by the applicable Borrowing Base Party, or,
alternatively, for which the full purchase price thereof is secured by a Commercial Letter
of Credit issued under this Agreement;

     (c) For which title to such In-Transit Inventory has passed to such Borrowing Base
Party;

     (d) For which the purchase order is in the name of such Borrowing Base Party;

-25-

 

     (e) Which is scheduled for delivery within thirty (30) days or less from the date of
shipment;

     (f) For which an Acceptable BOL has been issued and in each case as to which the
Administrative Agent or the Canadian Agent, as applicable, has possession of the Acceptable
BOL which evidences ownership of the subject In-Transit Inventory (which possession
requirement can be satisfied by the delivery of a Customs Broker Agreement from any third
party with possession over such Acceptable BOL);

     (g) Which is in the possession of a common carrier or Eligible NVOCC which issued the
Acceptable BOL in respect of such In-Transit Inventory;

     (h) The common carrier (to the extent an NVOCC has not engaged such common carrier),
NVOCC and customs broker (as applicable) with respect to such In-Transit Inventory has
entered into a Customs Broker Agreement which is then in effect; and

     (i) Which is fully insured by marine cargo and other insurance in accordance with
Section 0.

     Subject to Section 0, the Agents shall have the right to establish or modify or
eliminate Reserves against Eligible In-Transit Inventory from time to time in their
Permitted Discretion.

     “Eligible Inventory” means, as of the date of determination thereof, without
duplication, (i) Eligible In-Transit Inventory, and (ii) items of Inventory of a Borrowing Base
Party (other than Eligible In-Transit Inventory) that are raw materials or finished goods,
merchantable and readily saleable to the public in the ordinary course deemed by the Agents (with
respect to Inventory of a Domestic Borrower) or the Canadian Agent and the Agents (with respect to
Inventory of a Canadian Loan Party), as applicable, in their Permitted Discretion, to be eligible
for inclusion in the calculation of the Canadian Borrowing Base or the Domestic Borrowing Base, as
applicable (including blank t-shirts which otherwise satisfy the requirements set forth in this
definition), in each case that, except as otherwise agreed by the Agents and, if applicable, the
Canadian Agent, complies in all material respects with each of the representations and warranties
respecting Inventory made by a Borrowing Base Party in the Loan Documents, and that is not excluded
as ineligible by virtue of one or more of the criteria set forth below. Except as otherwise agreed
by the Agents and, if applicable, the Canadian Agent, the following items of Inventory shall not be
included in Eligible Inventory:

     (a) Inventory that is not solely owned by a Borrowing Base Party or a Borrowing Base
Party does not have good and valid title thereto;

     (b) Inventory that is leased by or is on consignment to a Borrowing Base Party or that
is consigned by a Borrowing Base Party to a Person which is not a Loan Party;

     (c) Inventory (other than Eligible In Transit Inventory) that (i) is not located in the
United States in the case of Inventory of a Domestic Borrower (excluding territories or
possessions thereof) or Canada in the case of Inventory of a Canadian Loan Party (excluding
territories or possessions thereof), (ii) is in transit, (iii) is located at a location that
is not owned or leased by a Borrowing Base Party, except to the extent that a Collateral
Access Agreement executed by the Person owning any such location is delivered to the
Administrative Agent or the Canadian Agent, as applicable, or (iv) is in the possession of
any Person who is a processor;

-26-

 

     (d) Inventory that is located in a distribution center leased by a Borrowing Base Party
unless the applicable lessor has delivered to the Administrative Agent, if requested by any
Agent or (if applicable) the Canadian Agent, a Collateral Access Agreement;

     (e) Inventory that is comprised of goods which (i) are damaged, defective, “seconds,”
or otherwise unmerchantable, (ii) are to be returned to the vendor, (iii) are obsolete or
slow moving, or custom items, work-in-process, raw materials (but excluding blank t-shirts),
or that constitute spare parts, display, promotional, marketing, packaging and shipping
materials or supplies used or consumed in a Borrowing Base Party’s business, (iv) are
seasonal in nature and which have been packed away for sale in a subsequent season, (v) are
not in compliance with all standards imposed by any Governmental Authority having regulatory
authority over such Inventory, its use or sale, (vi) are bill and hold goods, or (vii) are
of a type which is not held for sale by the Borrowing Base Parties in the ordinary course of
their business;

     (f) Inventory that is not subject to a perfected first-priority security interest in
favor of the Administrative Agent or the Canadian Agent, as applicable, pursuant to the
Security Documents (other than Permitted Encumbrances not having priority over, or that are
pari passu with, the Lien of the Administrative Agent or the Canadian Agent under applicable
Law, or having priority but acceptable to the Co-Collateral Agents and, if applicable, the
Canadian Agent in their Permitted Discretion);

     (g) Inventory that consists of samples, labels, bags, and other similar non-merchandise
categories;

     (h) Inventory that is not insured in compliance with the provisions of Section
0 hereof;

     (i) Inventory that has been sold but not yet delivered or as to which a Borrowing Base
Party has accepted a deposit;

     (j) Inventory that is subject to any licensing, patent, royalty, trademark, trade name
or copyright agreement with any third party which any Borrowing Base Party or any of their
Subsidiaries has received notice of a dispute in respect of any such agreement or which
would require the payment of fees or royalties to or the consent of the licensor under such
agreement for any sale or other disposition of such Inventory by the Administrative Agent or
the Canadian Agent, unless the Agents and, if applicable, the Canadian Agent, have reviewed
the underlying agreements and determined the terms to be acceptable, and subject to the
imposition of a Reserve for the payment of any such fees or royalties; or

     (k) Inventory acquired in a Permitted Acquisition or series of related Permitted
Acquisitions if the aggregate fair market value of the Inventory of the Borrowing Base
Parties acquired in connection with such Permitted Acquisition or series of related
Permitted Acquisitions exceeds $5,000,000, unless and until the Co-Collateral Agents, and,
if applicable, the Canadian Agent have (i) completed or received an appraisal of such
Inventory from appraisers reasonably satisfactory to the Co-Collateral Agents, and, if
applicable, the Canadian Agent, and such other due diligence as the Co-Collateral Agents,
and, if applicable, the Canadian Agent may reasonably require, all of the results of the
foregoing to be reasonably satisfactory to the Co-Collateral Agents, and, if applicable, the
Canadian Agent, and (ii) established an Inventory advance rate and Inventory Reserves (if
applicable) therefor, and (iii) otherwise agreed that such Inventory shall be deemed
Eligible Inventory in their Permitted Discretion.

-27-

 

     Subject to Section 0, the Agents and, if applicable, the Canadian Agent shall
have the right to establish or modify or eliminate Reserves against Eligible Inventory from
time to time in their Permitted Discretion.

     “Eligible Letter of Credit” means, as of any date of determination thereof, a
Commercial Letter of Credit which supports the full purchase price of Inventory (other than
In-Transit Inventory), (a) which Inventory does not constitute Eligible In-Transit Inventory and
for which no Acceptable BOL or other documents of title have then been issued; (b) which Commercial
Letter of Credit (i) has an expiry within thirty (30) days of the date of determination, and (ii)
provides that such Commercial Letter of Credit may be drawn only after the Inventory is completed
and after an Acceptable BOL has been issued for such Inventory; and (c) with respect to the
Inventory to be purchased with such Commercial Letter of Credit, such Inventory satisfies all of
the requirements for Eligible In-Transit Inventory other than the requirement set forth in clause
(e) of the definition of the term herein.

     “Eligible NVOCC” means, with respect to any In-Transit Inventory, an NVOCC for such
In-Transit Inventory that (i) is not an Affiliate of a Borrowing Base Party or the applicable
foreign vendor and is otherwise acceptable to the Agents and, with respect to In-Transit Inventory
of a Canadian Loan Party, the Canadian Agent; (ii) is engaged by a Domestic Borrower or a Canadian
Loan Party as freight forwarder with respect to such In-Transit Inventory; (iii) has received from
the carrier a tangible bill of lading with respect to such In-Transit Inventory that names such
NVOCC as consignee; (iv) has issued an Acceptable BOL to the order of a Borrowing Base Party in
respect of such In-Transit Inventory; and (v) has entered into a Customs Broker Agreement which is
then in effect.

     “Eligible Trade Receivables” means Accounts arising from the sale of a Borrowing Base
Party’s Inventory (other than those consisting of Credit Card Receivables) that satisfy the
following criteria at the time of creation and continue to meet the same at the time of such
determination: such Account (i) has been earned by performance and represents the bona fide amounts
due to a Borrowing Base Party from an account debtor, and in each case originated in the ordinary
course of business of such Borrowing Base Party, and (ii) in each case is acceptable to the Agents
(with respect to Accounts of a Domestic Borrower) or the Canadian Agent and the Agents (with
respect to Accounts of a Canadian Loan Party), as applicable, in their Permitted Discretion, and is
not ineligible for inclusion in the calculation of the Canadian Borrowing Base or the Domestic
Borrowing Base, as applicable, pursuant to any of clauses (a) through (v) below. Without limiting
the foregoing, to qualify as an Eligible Trade Receivable, an Account shall indicate no Person
other than a Borrowing Base Party as payee or remittance party. In determining the amount to be so
included, the face amount of an Account shall be reduced by, without duplication, to the extent not
reflected in such face amount, (i) the amount of all accrued and actual discounts, claims, credits
or credits pending, promotional program allowances, price adjustments, finance charges or other
allowances (including any amount that a Borrowing Base Party may be obligated to rebate to a
customer pursuant to the terms of any agreement or understanding (written or oral)) and (ii) the
aggregate amount of all cash received in respect of such Account but not yet applied by the
applicable Borrowing Base Party to reduce the amount of such Eligible Trade Receivable. Any
Account meeting the foregoing criteria shall be deemed to be an Eligible Trade Receivable but only
as long as such Account is not included within any of the following categories, in which case such
Account shall not constitute an Eligible Trade Receivable, unless otherwise agreed by the Agents
and (if applicable) the Canadian Agent:

     (a) Accounts that are not evidenced by an invoice;

     (b) Accounts (i) that have been outstanding for more than ninety (90) days from the
original invoice date (or, with respect to Accounts having an aggregate face amount of not
more than $5,000,000, one hundred twenty (120) days from the original invoice date) or (ii)
that are more than sixty (60) days past the due date;

-28-

 

     (c) Accounts due from any account debtor if fifty percent (50%) or more of Accounts due
from account debtor are ineligible under the provisions of clause (b) above;

     (d) Accounts with respect to which a Borrowing Base Party does not have good and valid
title thereto, free and clear of any Lien (other than Liens granted to the Administrative
Agent pursuant to the Security Documents and other Permitted Encumbrances not having
priority over, or that are pari passu with, the Lien of the Administrative Agent or the
Canadian Agent under applicable Law);

     (e) Accounts that are not subject to a first priority security interest in favor of the
Administrative Agent or the Canadian Agent, as applicable, pursuant to the Security
Documents (other than Permitted Encumbrances not having priority over, or that are pari
passu with, the Lien of the Administrative Agent or the Canadian Agent under applicable
Law);

     (f) Accounts which are disputed or with respect to which a claim, counterclaim, offset
or chargeback has been asserted, but only to the extent of such dispute, counterclaim,
offset or chargeback;

     (g) Accounts which arise out of any sale made not in the ordinary course of business,
made on a basis other than upon credit terms usual to the business of a Borrowing Base
Party;

     (h) Accounts which are owed by any account debtor whose principal place of business is
not within the United States (with respect to Inventory of a Domestic Borrower) or Canada
(with respect to Inventory of a Canadian Loan Party);

     (i) Accounts which are owed by any Affiliate or any employee of a Loan Party;

     (j) Accounts for which all consents, approvals or authorizations of, or registrations
or declarations with any Governmental Authority required to be obtained, effected or given
in connection with the performance of such Account by the account debtor or in connection
with the enforcement of such Account by the Agents have not been duly obtained, effected or
given and are not in full force and effect;

     (k) Accounts due from an account debtor which is the subject of any bankruptcy or
insolvency proceeding, has had a trustee or receiver appointed for all or a substantial part
of its property, has made an assignment for the benefit of creditors or has suspended its
business;

     (l) Accounts due from (i) the federal government of the United States of America unless
such Accounts have been assigned by the applicable Borrowing Base Party to the
Administrative Agent in accordance with the Federal Assignment of Claims Act of 1940 or (ii)
the federal government of Canada or a political subdivision thereof, or any province or
territory, or any municipality or department or agency or instrumentality thereof unless the
provisions of the Financial Administration Act (Canada) or any applicable provincial,
territorial or municipal law of similar purpose and effect restricting the assignment
thereof, as the case may be, have been complied with, or any other Governmental Authority
except to the extent reasonably acceptable to the Co-Collateral Agents and, if applicable,
the Canadian Agent; and in any event such Accounts described in this subsection shall not
exceed $6,000,000 at any time outstanding;

     (m) Accounts (i) owing from any Person that is also a supplier to or creditor of a Loan
Party or any of its Subsidiaries unless such Person has waived any right of setoff in a
manner reasonably acceptable to the Agents and, if applicable, the Canadian Agent, or (ii)

-29-

 

representing any manufacturer’s or supplier’s credits, discounts, incentive plans or
similar arrangements entitling a Loan Party or any of its Subsidiaries to discounts on
future purchase therefrom;

     (n) Accounts arising out of sales on a bill-and-hold, guaranteed sale, sale-or-return,
sale on approval or consignment basis or subject to any right of return;

     (o) Accounts arising out of sales to account debtors outside the United States (with
respect to Accounts of a Domestic Borrower) or Canada (with respect to Accounts of a
Canadian Loan Party), unless such Accounts are fully backed by an irrevocable letter of
credit on terms, and issued by a financial institution, reasonably acceptable to the Agents
and, if applicable, the Canadian Agent;

     (p) Accounts payable other than in Dollars (with respect to Accounts of a Domestic
Borrower) or in Dollars or CD$ (with respect to Accounts of a Canadian Loan Party);

     (q) Accounts evidenced by a judgment, chattel paper, promissory note or other
instrument;

     (r) Accounts consisting of amounts due from vendors as rebates or allowances, or as
finance or interest charges;

     (s) Accounts which are in excess of the credit limit for such account debtor
established by a Borrowing Base Party in the ordinary course of business and consistent with
past practices;

     (t) Accounts which include extended payment terms (datings) beyond those generally
furnished to other account debtors in the ordinary course of business;

     (u) Accounts due from an account debtor and its Affiliates, where the aggregate amount
due on such Accounts to the Borrowing Base Parties at any time exceeds fifteen percent (15%)
of the total Eligible Trade Receivables then due to the Borrowing Base Parties, only to the
extent of such amount in excess of fifteen percent (15%) of the total Eligible Trade
Receivables due to the Borrowing Base Parties; or

     (v) Accounts which any Agent and, if applicable, the Canadian Agent, determines in its
Permitted Discretion to be unacceptable for borrowing.

     Subject to Section 0, the Agents and, if applicable, the Canadian Agent, shall
have the right to establish or modify or eliminate Reserves against Eligible Trade
Receivables from time to time in their Permitted Discretion.

     “Environmental Laws” means any and all federal, state, provincial, territorial,
municipal, local, and foreign statutes, laws, regulations, ordinances, final and enforceable rules,
judgments, orders, decrees or governmental restrictions governing pollution and the protection of
the environment or the release of any materials into the environment, including those governing
Hazardous Materials, air emissions and discharges to waste or public systems.

     “Environmental Liability” means any liability, obligation, damage, loss, claim,
action, suit, judgment, order, fine, penalty, fee, expense, or cost (including any liability for
damages, costs of environmental remediation, fines, penalties or indemnities), of any Borrower, any
other Loan Party or any

-30-

 

of their respective Subsidiaries resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal or presence of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
release or threatened release of any Hazardous Materials into the environment or (e) any contract,
agreement or other consensual arrangement imposing liability under Environmental Law or for
Hazardous Materials.

     “Environmental Permit” means any permit, approval, license or other authorization
required under any Environmental Law.

     “Equipment” shall mean “equipment”, as defined in the UCC or in the PPSA, and shall
also mean all furniture, store fixtures, motor vehicles, rolling stock, machinery, office
equipment, plant equipment, tools, dies, molds, and other goods, property, and assets which are
used and/or were purchased for use in the operation or furtherance of a Loan Party’s business, and
any and all accessions or additions thereto, and substitutions therefor.

     “Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, and all of the warrants or
options for the purchase or acquisition from such Person of shares of capital stock of (or other
ownership or profit interests in) such Person.

     “Equivalent Amount” means, on any date, the rate at which Canadian Dollars may be
exchanged into Dollars, determined by reference to the Bank of Canada noon rate as published on the
Reuters Screen BOFC on the immediately preceding Business Day. In the event that such rate does
not appear on such Reuters page, “Equivalent Amount” shall mean, on any date, the amount of Dollars
into which an amount of Canadian Dollars may be converted or the amount of Canadian Dollars into
which an amount of Dollars may be converted, in either case, at, in the case of the Canadian
Borrower, the Canadian Agent’s spot buying rate in Toronto as at approximately 12:00 noon (Toronto
time) on such date and, in the case of a Domestic Borrower, the Administrative Agent’s spot buying
rate in New York as at approximately 12:00 noon (New York City time) on the immediately preceding
Business Day.

     “Equivalent CD$ Amount” means, on any day with respect to any amount of Dollars, the
amount of Canadian Dollars which would be required to buy such amount of Dollars using the spot
rate of the Bank of Canada at approximately 12:00 noon (Toronto time) on the day or, if such day is
not a Business Day, on the Business Day immediately preceding such day.

     “ERISA” means the Employee Retirement Income Security Act of 1974.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under
common control with a Loan Party within the meaning of Section 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the
Code).

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by a Loan Party or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (c) a complete or partial withdrawal by a Loan Party or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing
of a notice of intent to terminate, the treatment of a Plan amendment as a termination under
Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under

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Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of
ERISA, upon a Loan Party or any ERISA Affiliate.

     “Euro Term Loan Agent” means Rhône Group L.L.C., in its capacity as agent for the
lenders under the Euro Term Loan Credit Agreement, together with any successor agent (including
pursuant to any Permitted Amendment/Refinancing of the Euro Term Loan Credit Agreement).

     “Euro Term Loan Credit Agreement” means that certain Credit Agreement dated as of the
Closing Date among the Parent, Mountain & Wave S.à r.l., the lenders party thereto and the Euro
Term Loan Agent (including any Permitted Amendment/Refinancing thereof).

     “Event of Default” has the meaning specified in Section 0.

     “Excluded Taxes” means, with respect to any Agent, the Canadian Agent, any Lender, the
L/C Issuer or any other recipient of any payment to be made by or on account of any obligation of
any Loan Party hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction
(or any political subdivision thereof) under the laws of which such recipient is organized or in
which its principal office is located or in which it is otherwise treated as doing business, in the
case of any Lender, in which its applicable Lending Office is located, (b) any branch profits taxes
imposed by the United States or any similar tax imposed by any other jurisdiction in which any Loan
Party is located, (c) in the case of a Foreign Lender (other than a Canadian Lender or an assignee
pursuant to a request by the Lead Borrower under Section 0) or L/C Issuer, any withholding
tax that is imposed on amounts payable to such Foreign Lender or L/C Issuer at the time such
Foreign Lender or L/C Issuer becomes a party to this Agreement (or designates a new lending office)
or is attributable to such Foreign Lender’s or L/C Issuer’s failure or inability (other than as a
result of a Change in Law after such Foreign Lender or L/C Issuer becomes a party hereto) to comply
with Section 3.01(e), except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive
additional amounts from the Loan Parties with respect to such withholding tax pursuant to
Section 3.01(a), and (d) in the case of a Canadian Lender (other than an assignee pursuant
to a request by the Canadian Borrower under Section 0), any withholding tax that is imposed
on amounts payable to such Canadian Lender at the time such Canadian Lender becomes a party to this
Agreement (or designates a new Lending Office) or is attributable to such Canadian Lender’s failure
or inability (other than as a result of a Change in Law) to comply with Section 3.01(e),
except to the extent that such Canadian Lender (or its assignor, if any) was entitled, at the time
of designation of a new Lending Office (or assignment), to receive additional amounts from the
Canadian Borrower with respect to such withholding tax pursuant to Section 3.01(a). For
the avoidance of doubt, any Participant that is entitled to the benefits of Section 3.01(a)
shall be treated as a Lender for purposes of this defined term.

     “Executive Order” has the meaning set forth in Section 0.

     “Existing Credit Agreement” means that certain Amended and Restated Credit Agreement
dated as of June 3, 2005, among, inter alia, the Lead Borrower, the Parent, the several banks and
other financial institutions party thereto, Bank of America, N.A., as documentation agent, Union
Bank of California, N.A., as syndication agent, and JPMorgan Chase Bank, N.A., as administrative
agent, as amended.

     “Existing Increasing Lender” shall have the meaning provided in Section
2.13(c).

     “Facility Guaranty” means (a) a Guarantee of the Obligations made by a Guarantor which
is a Domestic Loan Party in favor of the Administrative Agent and the other Credit Parties, in
substantially the form attached hereto as Exhibit K-1 or otherwise in form reasonably
satisfactory to the Agents, and

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(b) a Guarantee of the Canadian Liabilities made by a Guarantor which is a Canadian Loan Party
in favor of the Canadian Agent and the other Canadian Credit Parties, in substantially the form
attached hereto as Exhibit K-2 or otherwise in form reasonably satisfactory to the Canadian
Agent and the Agents.

     “Federal Funds Rate” means, for any day, the rate per annum equal to the
weighted average of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve
Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such
rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day
shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by the Administrative
Agent.

     “Fee Letter” means the letter agreement, dated May 21, 2009, among the Lead Borrower,
the Parent, the Administrative Agent, Bank of America, GECC and the Arrangers.

     “Fiscal Month” means any fiscal month of any Fiscal Year, which month shall generally
end on the last day of each calendar month in accordance with the fiscal accounting calendar of the
Loan Parties.

     “Fiscal Quarter” means any fiscal quarter of any Fiscal Year, which quarters shall
generally end on the last day of each April, July, October and January of such Fiscal Year in
accordance with the fiscal accounting calendar of the Loan Parties.

     “Fiscal Year” means any period of twelve (12) consecutive months ending on October
31st of any calendar year.

     “Foreign Assets Control Regulations” has the meaning set forth in Section 0.

     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Lead Borrower is resident for tax purposes. For purposes of this
definition, the United States, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

     “Foreign Subsidiary” means each Subsidiary other than a Domestic Subsidiary.

     FRB” means the Board of Governors of the Federal Reserve System of the United States.

     “French Credit Agreement” means the Facilities Agreement dated as of July 31, 2009
among, inter alia, Pilot SAS and Na Pali, a Société par Actions Simplifiée, as borrowers, the
Parent and Pilot SAS, as original guarantors, and Crédit Lyonnais, BNP Paribas and Société Générale
Corporate & Investment Banking, as mandated lead arrangers, and any Permitted Amendment/Refinancing
thereof.

     “FSCO” means the Financial Services Commission of Ontario and any Person succeeding to
the functions thereof and includes the Superintendent under such statute and any other Governmental
Authority empowered or created by the Supplemental Pension Plans Act (Quebec) or the Pension
Benefits Act (Ontario) or any Governmental Authority of any other Canadian jurisdiction exercising
similar functions in respect of any Canadian Pension Plan of any Canadian Loan Party and any
Governmental Authority succeeding to the functions thereof.

     “Fronting Fee” has the meaning specified in Section 2.03(j).

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     “Fund” means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business.

     “GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied; provided that, with respect to Foreign Subsidiaries
of Parent organized under the laws of Canada, or any province or territory thereof, unless GAAP is
being applied, “GAAP” shall mean principles which are consistent with those promulgated or adopted
by the Canadian Institute of Chartered Accountants and its predecessors (or successors) in effect
and applicable to the accounting period in respect of which reference to GAAP is being made.

     “GECC” means General Electric Capital Corporation, a Delaware corporation, and its
successors.

     “GECM” means GE Capital Markets, Inc. and its successors.

     “General Security Agreements” means each General Security Agreement dated as of the
Closing Date among the respective Canadian Loan Parties and the Canadian Agent for the benefit of
the Canadian Credit Parties.

     “Governmental Authority” means the government of the United States, Canada, or any
other nation, or any political subdivision thereof, whether state, local, provincial, territorial
or municipal and any agency, authority, instrumentality, regulatory body, court, tribunal, central
bank or other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including any supra-national
bodies such as the European Union or the European Central Bank).

     “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or
otherwise, of any holder of such Indebtedness to obtain any such Lien); provided that the
term “Guarantee” shall not include endorsements of checks, drafts and other items for the payment
of money for collection or deposit, in either case in the ordinary course of business. The amount
of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the
related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if
not stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a
corresponding meaning.

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     “Guarantor” means (a) with respect to the Obligations (including, without limitation,
the Canadian Liabilities), the Parent and each other direct Domestic Subsidiary of any Domestic
Loan Party that shall be required to execute and deliver a Facility Guaranty or Facility Guaranty
supplement pursuant to Section 6.06(a) and (b) with respect to the Canadian Liabilities, QS
Retail Canada Corp., an unlimited company organized under the laws of the Province of Nova Scotia,
and each other direct Canadian Subsidiary of any Canadian Loan Party that shall be required to
execute and deliver a Facility Guaranty or Facility Guaranty supplement pursuant to
Section 6.06(b).

     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes regulated pursuant to any Environmental Law.

     “Honor Date” has the meaning specified in Section 2.03(c)(i).

     “Immaterial Subsidiary” means each Subsidiary of any Loan Party which has assets with
a fair market value of less than $100,000, and no income or operations. Schedule 5.13
specifically identifies those Immaterial Subsidiaries in existence as of the Closing Date.

     “Increase Effective Date” has the meaning provided therefor in Section
2.13(d).

     “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) the maximum amount of all direct or contingent obligations of such Person arising
under letters of credit (including standby and commercial), bankers’ acceptances, bank
guaranties, surety bonds and similar instruments;

     (c) net obligations of such Person under any Swap Contract;

     (d) all obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business not past due
for more than sixty (60) days after the date on which such trade account payables were
created);

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements), whether or not such indebtedness shall have been
assumed by such Person or is limited in recourse;

     (f) all Attributable Indebtedness of such Person;

     (g) all obligations of such Person in respect of Disqualified Stock; and

     (h) all Guarantees of such Person in respect of any of the foregoing.

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is

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expressly made non-recourse to such Person and except to the extent such Person’s liability
for such Indebtedness is otherwise limited under applicable Law or otherwise. The amount of any
net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value
thereof as of such date.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitee” has the meaning specified in Section 10.03(b).

     “Information” has the meaning specified in Section 0.

     “Intellectual Property” means all: trade secrets, know-how and other proprietary
information; trademarks, trademark applications, internet domain names, service marks, trade dress,
trade names, designs, logos, slogans, indicia of origin and other source identifiers, and all
registrations or applications for registrations which have heretofore been or may hereafter be
issued thereon throughout the world; copyrights and copyright applications (including copyrights
for computer programs), unpatented inventions (whether or not patentable); patents and patent
applications; industrial design applications and registered industrial designs; any Loan Party’s
rights in any license agreements related to any of the foregoing and income therefrom; intellectual
property rights in books, records, writings, computer tapes or disks, flow diagrams, specification
sheets, computer software, source codes, object codes, executable code, data and databases; all
other intellectual property; and all common law and other rights throughout the world in and to all
of the foregoing.

     “Intellectual Property Security Agreement” means the Intellectual Property Security
Agreement dated as of the Closing Date among the Domestic Loan Parties and the Administrative
Agent.

     “Intercreditor Agreement” means that certain Intercreditor Agreement, dated as of the
Closing Date, between the Administrative Agent, the US Term Loan Agent, the Term Loan Collateral
Agent and the Euro Term Loan Agent.

     “Interest Payment Date” means, (a) as to any LIBO Rate Loan or BA Equivalent Loan, the
last day of each Interest Period applicable to such LIBO Rate Loan or BA Equivalent Loan and the
Maturity Date; provided, however, that if any Interest Period for a LIBO Rate Loan
or BA Equivalent Loan exceeds three months, the date that falls every three months after the
beginning of such Interest Period shall also be an Interest Payment Date; and (b) as to any Prime
Rate Loan (including a Swing Line Loan), the last Business Day of each calendar quarter and the
Maturity Date.

     “Interest Period” means, as to each LIBO Rate Loan or BA Equivalent Loan, the period
commencing on the date such Committed Borrowing is disbursed, converted into or continued as such
Type of Committed Borrowing and ending on the date one, two, three or six months thereafter, as
selected by the Lead Borrower or the Canadian Borrower, as applicable, in its Committed Loan
Notice; provided that:

     (i) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding
Business Day;

     (ii) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business Day of the calendar month at the
end of such Interest Period;

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     (iii) no Interest Period shall extend beyond the Maturity Date; and

     (iv) notwithstanding the provisions of clause (iii) no Interest Period shall have a
duration of less than one (1) month, and if any Interest Period applicable to a LIBO
Borrowing or a BA Equivalent Loan, as applicable, would be for a shorter period, such
Interest Period shall not be available hereunder.

For purposes hereof, the date of a Committed Borrowing initially shall be the date on which such
Committed Borrowing is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Committed Borrowing.

     “Internal Control Event” means a material weakness in, or fraud that involves
management or other employees who have a significant role in, the Parent’s and/or its Subsidiaries’
internal controls over financial reporting, in each case as described in the Securities Laws.

     “In-Transit Inventory” means Inventory of a Borrowing Base Party that is in the
possession of a common carrier and is in transit from a foreign location to either (a) with respect
to Inventory of a Domestic Borrower, a location of such Domestic Borrower (or a location designated
by such Domestic Borrower) that is in the United States or (b) with respect to Inventory of a
Canadian Loan Party, a location of such Canadian Loan Party (or a location designated by such
Canadian Loan Party) that is in Canada.

     “Inventory” means all “inventory” as defined in the UCC or the PPSA, as applicable,
and shall also include, without limitation, all: (a) goods which (i) are leased by a Person as
lessor, (ii) are held by a Person for sale or lease or to be furnished under a contract of service,
(iii) are furnished by a Person under a contract of service, or (iv) consist of raw materials, work
in process, or materials used or consumed in a business; (b) goods of said description in transit;
(c) goods of said description which are returned, repossessed or rejected; and (d) packaging,
advertising, and shipping materials related to any of the foregoing.

     “Inventory Reserves” means, without duplication of any other Reserves or items that
are otherwise addressed or excluded through eligibility criteria, such reserves as may be
established from time to time by any Agent and, with respect to the Canadian Borrowing Base, the
Canadian Agent and any Agent, as applicable, in its Permitted Discretion with respect to the
determination of the saleability, at retail or wholesale, of the Eligible Inventory or which
reflect such other factors as affect the market value of the Eligible Inventory. Without limiting
the generality of the foregoing, Inventory Reserves may, in the Permitted Discretion of any Agent
and, with respect to the Canadian Borrowing Base, the Canadian Agent and any Agent, as applicable,
include (but are not limited to) reserves based on:

     (a) obsolescence;

     (b) seasonality;

     (c) Shrink;

     (d) imbalance;

     (e) change in Inventory character;

     (f) change in Inventory composition;

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     (g) change in Inventory mix;

     (h) mark-downs (both permanent and point of sale);

     (i) retail mark-ons and mark-ups inconsistent with prior period practice and
performance, industry standards, current business plans or advertising calendar and planned
advertising events;

     (j) out-of-date and/or expired Inventory; and

     (k) seller’s reclamation or repossession rights under any Debtor Relief Laws.

     Upon the determination by any Agent or, if applicable, the Canadian Agent, in its
Permitted Discretion, that an Inventory Reserve should be established or modified, such
Agent or the Canadian Agent, as applicable, shall notify the Administrative Agent and, if
applicable, the Canadian Agent, in writing and the Administrative Agent or the Canadian
Agent, as applicable, shall thereupon establish or modify such Inventory Reserve, subject to
the provisions of Section 0 of this Agreement.

     “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of
another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of,
or purchase or other acquisition of any other debt or Equity Interest in, another Person, or (c)
any Acquisition. For purposes of covenant compliance, the amount of any Investment shall be the
amount actually invested, without adjustment for subsequent increases or decreases in the value of
such Investment.

     “IP Collateral” has the meaning assigned to such term in the Intellectual Property
Security Agreement.

     “IRS” means the United States Internal Revenue Service.

     “ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice (or such later
version thereof as may be in effect at the time of issuance).

     “Issuer Documents” means, with respect to any Letter of Credit, the Letter Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and
any Borrower (or any Subsidiary) or in favor the L/C Issuer and relating to any such Letter of
Credit.

     “Joinder Agreement” means an agreement, in the form attached hereto as Exhibit
F-1 (Joinder Agreement — Domestic Loan Parties) or Exhibit F-2 (Joinder Agreement -
Canadian Loan Parties) (or such other form as is reasonably satisfactory to the Agents) pursuant to
which, among other things, a Person becomes a party to, and bound by the terms of, this Agreement
and/or the other Loan Documents in the same capacity and to the same extent as either a Borrower or
a Guarantor, as applicable.

     “Landlord Lien State” means (a) Pennsylvania, Virginia, Washington and such other
state(s) determined by the Agents in their Permitted Discretion in which a landlord’s claim for
rent may have priority over the Liens of the Administrative Agent in any of the Eligible Inventory
of the Domestic Borrowers, under the Security Documents and (b) Ontario, Nova Scotia, Alberta,
Manitoba and British Columbia and such other province(s) determined by the Agents and, if
applicable, the Canadian Agent in their Permitted Discretion in which a landlord’s claim for rent
may have priority over the Liens of the

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Canadian Agent in any of the Eligible Inventory of the Canadian Loan Parties under the
Security Documents.

     “Laws” means each international, foreign, federal, state, provincial, territorial,
municipal and local statute, treaty, rule, guideline, regulation, ordinance, code and
administrative or judicial precedent or authority, including the interpretation or administration
thereof by any Governmental Authority charged with the enforcement, interpretation or
administration thereof, and each applicable administrative order, directed duty, license,
authorization and permit of, and agreement with, any Governmental Authority, in each case whether
or not having the force of law.

     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable Percentage.

     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on or prior to the date required to be reimbursed by the
Borrowers pursuant to Section 2.03(c)(i) or refinanced as a Committed Borrowing.

     “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount thereof.

     “L/C Issuer” means (a) as to Domestic Letters of Credit, (i) Bank of America in its
capacity as issuer of Domestic Letters of Credit hereunder, or any successor issuer of Domestic
Letters of Credit hereunder (which successor may only be a Domestic Lender selected by the
Administrative Agent in its discretion and reasonably acceptable to the Lead Borrower), or (ii) any
other Domestic Lender (or its Lender Affiliates) requested by the Lead Borrower and approved by the
Administrative Agent in its reasonable discretion; and (b) as to Canadian Letters of Credit, (i)
Bank of America-Canada Branch in its capacity as issuer of Canadian Letters of Credit hereunder, or
any successor issuer of Canadian Letters of Credit hereunder (which successor may only be a
Canadian Lender selected by the Canadian Agent in its discretion and reasonably acceptable to the
Canadian Borrower), or (ii) any other Canadian Lender (or its Lender Affiliates) requested by the
Canadian Borrower and approved by the Canadian Agent in its reasonable discretion. The L/C Issuer
may, in its discretion, arrange for one or more Letters of Credit to be issued by Lender Affiliates
of the L/C Issuer, in which case the term “L/C Issuer” shall include any such Lender Affiliate with
respect to Letters of Credit issued by such Lender Affiliate.

     “L/C Obligations” means, collectively, the Canadian L/C Obligations and the Domestic
L/C Obligations. For purposes of computing the amounts available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance with Section
0. For all purposes of this Agreement, if on any date of determination a Letter of Credit has
expired by its terms but any amount may still be drawn thereunder by reason of the operation of
Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so
remaining available to be drawn.

     “Lead Borrower” has the meaning specified in the introductory paragraph hereto.

     “Lease” means any written agreement pursuant to which a Loan Party is entitled to the
use or occupancy of any real property for any period of time.

     “Lender” means each Domestic Lender and each Canadian Lender and, as the context
requires, includes the Swing Line Lender.

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     “Lender Affiliate” means, with respect to any Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

     “Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as
a Lender may from time to time notify the Lead Borrower and the Administrative Agent.

     “Letter of Credit” means each Standby Letter of Credit and each Commercial Letter of
Credit issued hereunder.

     “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.

     “Letter of Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business
Day).

     “Letter of Credit Fee” has the meaning specified in Section 2.03(i).

     “LIBO Borrowing” means a Committed Borrowing comprised of LIBO Rate Loans.

     “LIBO Rate” means, for any Interest Period with respect to a LIBO Rate Loan, the rate
per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published
by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated
by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery
on the first day of such Interest Period) with a term equivalent to such Interest Period, provided
that there shall be a two percent (2%) floor on the LIBO Rate for LIBO Rate Loans with a one (1) or
two (2) month Interest Period, and provided further that LIBO Rate Loans may be requested by the
Lead Borrower or the Canadian Borrower at the three (3) month LIBO Rate for one (1) or two (2)
month Interest Periods. If such rate is not available at such time for any reason, then the “LIBO
Rate” for such Interest Period shall be the rate per annum determined by the Administrative Agent
to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period
in same day funds in the approximate amount of the LIBO Rate Loan being made, continued or
converted by Bank of America and with a term equivalent to such Interest Period would be offered by
Bank of America’s London Branch to major banks in the London interbank eurodollar market at their
request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of
such Interest Period.

     “LIBO Rate Loan” means a Committed Loan that bears interest at a rate based on the
Adjusted LIBO Rate.

     “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or
other security interest or preferential arrangement in the nature of a security interest of any
kind or nature whatsoever (including any conditional sale, Capital Lease Obligation, Synthetic
Lease Obligation, or other title retention agreement, any easement, right of way or other
encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing relating to such asset) and, with respect to the Canadian
Loan Parties, also includes any deemed trust or prior claim in, on or of such asset and (b) in the
case of securities, any purchase option, call or similar right of a third party with respect to
such securities.

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     “Liquidation” means the exercise by the Administrative Agent, the Co-Collateral Agents
or the Canadian Agent, as applicable, of those rights and remedies accorded to such Persons under
the Loan Documents and applicable Law as a creditor of the Loan Parties with respect to the
realization on the Collateral, including (after the occurrence and during the continuation of an
Event of Default) the conduct by the Loan Parties acting with the consent of the Agents, of any
public, private or “going-out-of-business”, “store closing” or other similar sale or any other
disposition of the Collateral for the purpose of liquidating the Collateral as well as the
collection or other disposition of any of the Collateral. Derivations of the word “Liquidation”
(such as “Liquidate”) are used with like meaning in this Agreement.

     “Loan” means a Domestic Loan and a Canadian Loan.

     “Loan Account” has the meaning assigned to such term in Section 2.10(a).

     “Loan Documents” means this Agreement, each Note, each Issuer Document, the Fee
Letter, all Borrowing Base Certificates, the Security Documents, each Facility Guaranty,
Post-Closing Letter and any other instrument or agreement now or hereafter executed and delivered
by any Loan Party in connection herewith.

     “Loan Parties” means, collectively, the Domestic Loan Parties and the Canadian Loan
Parties. “Loan Party” means any one of such Persons.

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual or contingent) or
condition (financial or otherwise) of the Parent and the Americas Subsidiaries taken as a whole;
(b) a material impairment of the ability of any Loan Party to perform its obligations under any
Loan Document to which it is a party; or (c) a material impairment of the rights and remedies of
the Administrative Agent, the Canadian Agent or the Lenders under the Loan Documents or a material
adverse effect upon the legality, validity, binding effect or enforceability against any Loan Party
of the Loan Documents to which it is a party. In determining whether any individual event would
result in a Material Adverse Effect for the purposes of determining compliance with any
representation, warranty, covenant or event of default under this Agreement, notwithstanding that
such event in and of itself does not have such effect, a Material Adverse Effect shall be deemed to
have occurred if the cumulative effect of such event and all other then existing events subject to
such representation, warranty, covenant or event of default would result in a Material Adverse
Effect.

     “Material Contract” means, with respect to any Person, each contract to which such
Person is a party, the breach or termination of which would (or would be reasonably likely to)
result in a Material Adverse Effect. Without limitation of the foregoing, the US Term Loan Credit
Agreement and the Senior Note Indenture (for so long as each such agreement is in effect), shall
each be deemed a Material Contract.

     “Material Indebtedness” means Indebtedness (other than the Obligations) of the Loan
Parties in an aggregate principal amount exceeding $15,000,000 (including, for purposes of
calculating such amount, undrawn committed or available amounts and amounts owing to all creditors
under any combined or syndicated credit arrangement). Without limitation of the foregoing, the
Indebtedness under the US Term Loan Credit Agreement and the Indebtedness under the Senior Note
Indenture (for so long as each such agreement is in effect) shall be deemed Material Indebtedness.
For purposes of determining the amount of Material Indebtedness at any time, the amount of the
obligations in respect of any Swap Contract at such time shall be calculated at the Swap
Termination Value thereof.

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     “Maturity Date” means July 31, 2012.

     “Maximum Rate” has the meaning provided in Section 0.

     “Measurement Period” means, at any date of determination, (x) at any time prior to the
end of the first Fiscal Month which occurs after the first full eighteen (18) months following the
Closing Date, the most recently completed four Fiscal Quarters of the Parent for which financial
statements have been (or were required to be) delivered pursuant to Section 6.01, and (y)
at any time thereafter, the twelve (12) Fiscal Months most recently ended for which financial
statements are available.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

     “Multiemployer Plan” means any employee benefit plan of the type described in
Section 4001(a)(3) of ERISA, to which a Loan Party or any ERISA Affiliate makes or is obligated to
make contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     “Net Proceeds” means:

     (a) with respect to any Disposition by any Loan Party described in clause (b), (h) or
(p) of the definition of “Permitted Disposition”, the excess, if any, of (i) the sum of cash
and cash equivalents received by any Loan Party in connection with such transaction
(including any cash or cash equivalents received by way of deferred payment pursuant to, or
by monetization of, a note receivable or otherwise, but only as and when so received) over
(ii) the sum of (A) the principal amount, premium or penalty, if any, interest and other
amounts on any Indebtedness that is secured by the applicable asset by a Lien permitted
hereunder on such asset and that is required to be repaid (or to establish an escrow for the
future repayment thereof) in connection with such transaction (other than Indebtedness under
the Loan Documents), (B) the reasonable and customary out-of-pocket expenses incurred by
such Loan Party in connection with such transaction (including, without limitation,
appraisals, and brokerage, legal, title and recording or transfer tax expenses and
commissions) paid by any Loan Party to third parties (other than another Loan Party or an
Affiliate of any Loan Party), and (C) taxes paid in connection therewith; and

     (b) with respect to the incurrence or issuance of any Indebtedness by any Loan Party,
the excess of (i) the sum of the cash and cash equivalents received by any Loan Party in
connection with such transaction over (ii) the underwriting discounts and commissions, and
other reasonable and customary out-of-pocket expenses, incurred by such Loan Party in
connection therewith to third parties (other than another Loan Party or an Affiliate of any
Loan Party).

     “Non-Consenting Lender” has the meaning provided therefor in Section 0.

     “Non-Extension Notice Date” has the meaning specified in Section 2.03(b)(iii).

     “Note” means either a Domestic Note or a Canadian Note, as the context may require.

     “NPL” means the National Priorities List under CERCLA.

     “NVOCC” means with respect to any In-Transit Inventory, a non-vessel operating common
carrier engaged as a freight forwarder or otherwise to assist in the importation of In-Transit
Inventory.

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     “Obligations” means (a) all advances to, and debts (including principal, interest,
fees, costs, and expenses), liabilities, obligations, covenants and indemnities of, any Loan Party
arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit
(including payments in respect of reimbursement of disbursements, interest thereon and obligations
to provide cash collateral therefor), whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or hereafter arising and
including interest, fees, costs and expenses that accrue after the commencement by or against any
Loan Party or any Subsidiary thereof of any proceeding under any Debtor Relief Laws naming such
Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding, and (b) any Other Liabilities. Without limiting the foregoing, for
purposes of clarity, whenever used herein the term “Obligations” shall include all Canadian
Liabilities.

     “Operating Cash” means, without duplication, (a) cash maintained in the cash registers
in the Stores in the normal course of business and consistent with past practices, (b) minimum
balances maintained in DDAs consistent with past practices, and (c) minimum balances maintained in
Blocked Accounts consistent with past practices, provided that Operating Cash described in
the foregoing clauses (b) and (c) shall not exceed $500,000 in the aggregate at any time.

     “Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement (or equivalent or
comparable constitutive documents with respect to any non-U.S. jurisdiction); (c) with respect to
any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity, (d) with
respect to any unlimited liability company, the memorandum of association and articles of
association (or equivalent or comparable constitutive documents with respect to any non-U.S.
jurisdiction); and (e) in each case, all shareholder or other equity holder agreements, voting
trusts and similar arrangements to which such Person is a party or which is applicable to its
Equity Interests.

     “Other Canadian Liabilities” means any obligation on account of: (a) any Cash
Management Services furnished to any of the Canadian Loan Parties or any of their Canadian
Subsidiaries and/or (b) any transaction which arises out of any Bank Product entered into with any
Canadian Loan Party.

     “Other Domestic Liabilities” means any obligation on account of: (a) any Cash
Management Services furnished to any of the Domestic Loan Parties or any of their Domestic
Subsidiaries and/or (b) any transaction which arises out of any Bank Product entered into with any
Domestic Loan Party.

     “Other Liabilities” means, collectively, all Other Canadian Liabilities and all Other
Domestic Liabilities.

     “Other Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder or
under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any other Loan Document.

     “Outstanding Amount” means: (i) with respect to Committed Loans and Swing Line Loans
on any date, the aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of Committed Loans and Swing Line Loans, as the case may
be, occurring on

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such date; and (ii) with respect to any L/C Obligations on any date, the amount of such L/C
Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and
any other changes in the aggregate amount of the L/C Obligations as of such date, including as a
result of any reimbursements by any Borrower of Unreimbursed Amounts, or the refinancing of such
unreimbursed amounts as Committed Borrowings.

     “Overadvance” means either a Canadian Overadvance or a Domestic Overadvance.

     “Parent” has the meaning specified in the introductory paragraph hereto.

     “Participant” has the meaning specified in Section 10.04(d).

     “Patriot Act” means USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)).

     “Payment Conditions” means, at the time of determination with respect to any specified
transaction or payment, that (a) no Default or Event of Default then exists or would arise as a
result of entering into such transaction or the making such payment, and (b) the Availability
Condition has been satisfied, and (c) the Consolidated Fixed Charge Coverage Ratio, calculated for
the Measurement Period most recently ended for which financial statements have been (or were
required to be) delivered pursuant to Section 6.01 is (x) with respect to any Restricted
Payment, equal to or greater than 1.25:1.0 and (y) with respect to any Investments or Acquisitions
or any voluntary prepayments, repurchases, redemptions or defeasances of Permitted Indebtedness
(other than Subordinated Indebtedness), equal to or greater than 1.1:1.0, in each case, immediately
preceding, and on a pro forma basis on the date thereof and projected basis for the twelve (12)
months (or four (4) Fiscal Quarters) immediately following, such transaction or payment. Prior to
undertaking any transaction or payment which is subject to the Payment Conditions, the Lead
Borrower shall deliver to the Administrative Agent evidence of satisfaction of the conditions
contained in clause (b) in the preceding sentence on a basis (including, without limitation, giving
due consideration to results for prior periods) reasonably satisfactory to the Agents.

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “PCAOB” means the Public Company Accounting Oversight Board.

     “Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by a Loan Party or any ERISA Affiliate or to which a Loan Party or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five plan years.

     “Permitted Acquisition” means an Acquisition by any Loan Party or any Subsidiary
thereof in which all of the following conditions are satisfied:

     (a) No Default exists at the time of or immediately after giving effect to the
consummation of such Acquisition;

     (b) Such Acquisition shall have been approved by the Board of Directors of the Person
(or similar governing body if such Person is not a corporation) which is the subject of such
Acquisition and such Person shall not have announced that it will oppose such Acquisition

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or shall not have commenced any action which alleges that such Acquisition shall
violate applicable Law;

     (c) In the case of a Permitted Acquisition, or a series of related Permitted
Acquisitions, involving consideration in the aggregate in excess of $10,000,000, the Lead
Borrower shall have furnished the Administrative Agent with at least thirty (30) days’ (or
such shorter period as the Administrative Agent shall agree) prior written notice of such
intended Acquisition and shall have furnished the Administrative Agent with a current draft
of the documents, instruments and agreements contemplated to be executed in connection with
such Acquisition (and final copies thereof as and when executed), a summary of any due
diligence undertaken by the Loan Parties in connection with such Acquisition, appropriate
financial statements of the Person which is the subject of such Acquisition, pro forma
projected financial statements for the twelve (12) month period following such Acquisition
after giving effect to such Acquisition (including balance sheets, cash flows and income
statements by month for the acquired Person, individually, and on an Americas Consolidated
basis), and such other information as the Administrative Agent may reasonably require, all
of which shall be reasonably satisfactory to the Administrative Agent in its Permitted
Discretion;

     (d) In the case of a Permitted Acquisition, or a series of related Permitted
Acquisitions, involving consideration in the aggregate in excess of $10,000,000, either (i)
the legal structure of such Acquisition shall be reasonably acceptable to the Administrative
Agent in its Permitted Discretion, or (ii) the Loan Parties shall have provided the
Administrative Agent with a solvency opinion from an unaffiliated third party valuation firm
reasonably satisfactory to the Administrative Agent in its Permitted Discretion;

     (e) After giving effect to such Acquisition, if such Acquisition is an Acquisition of
the Equity Interests, a Loan Party shall acquire and own, directly or indirectly, a majority
of the Equity Interests in the Person being acquired and shall Control a majority of any
voting interests or shall otherwise Control the governance of the Person being acquired;

     (f) Any assets acquired shall be utilized in, and if such Acquisition involves a
merger, amalgamation, consolidation or stock acquisition, the Person which is the subject of
such Acquisition shall be engaged in, a business otherwise permitted to be engaged in by a
Borrowing Base Party under this Agreement;

     (g) Intentionally Omitted;

     (h) The business and assets acquired in such Acquisition shall be free and clear of all
Liens (other than Permitted Encumbrances);

     (i) No Indebtedness shall be incurred or assumed by any Loan Party in connection with
or as a result of such Acquisition (other than Permitted Indebtedness); and

     (j) The Loan Parties shall have satisfied the Payment Conditions with respect to such
Acquisition.

     “Permitted Amendment/Refinancing” means, in respect of any Indebtedness, any
amendments, restatements,  refinancings, refundings, renewals, extensions or replacements of such
Indebtedness; provided that (i) the principal amount of such Indebtedness is not increased at the
time of such amendment, restatement, refinancing, refunding, renewal, extension or replacement
except by an amount equal to any premium or other amount paid, interest then due, and fees and
expenses incurred, in

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connection with such amendment, restatement, refinancing, refunding, renewal, extension or
replacement and by an amount equal to any existing commitments unutilized thereunder, (ii) the
result of such amendment, restatement, refinancing, refunding, renewal, extension or replacement
shall not be an earlier maturity date or decreased weighted average life of such Indebtedness, and
(iii) the terms relating to collateral (if any) and subordination (if any), financial covenants,
mandatory prepayments, events of default, and interest, fees and other amounts payable, of any such
amended, restated, refinanced, refunded, renewed, extended or replacement Indebtedness, and of any
agreement entered into and of any instrument issued in connection therewith, are no less favorable
in any material respect to the Loan Parties or the Lenders than the terms of the agreements and
instruments governing the Indebtedness being so amended, restated, refinanced, refunded, renewed,
extended or replaced, provided that (A) the interest rates in effect on the Term Loans may be
increased by a spread of no more than four percent (4%) in the aggregate above the rates in effect
as of the Closing Date, of which no more than two percent  (2%) shall be cash pay, and the balance
shall be capitalized and paid at or after the initial maturity of the Term Loans and (B) the
foregoing shall not prevent any payment in the form of equity securities (not constituting
Indebtedness) in consideration of any such amendment, restatement, refinancing, refunding, renewal,
extension or replacement.

     “Permitted Canadian Overadvance” means a Canadian Overadvance made by the Canadian
Agent, in its Permitted Discretion, which:

     (a) is made to maintain, protect or preserve the Collateral of the Canadian Loan
Parties and/or the Canadian Credit Parties’ rights under the Loan Documents or which is
otherwise for the benefit of the Credit Parties; or

     (b) is made to enhance the likelihood of, or maximize the amount of, repayment of any
of the Canadian Liabilities; or

     (c) is made to pay any other amount chargeable to any Canadian Loan Party hereunder or
under any other Loan Document; and

     (d) together with all other Permitted Canadian Overadvances then outstanding, shall not
(i) exceed at any time the lesser of $1,000,000 or ten percent (10%) of the Canadian
Borrowing Base at any time or (ii) unless a Liquidation is occurring, remain outstanding for
more than thirty (30) consecutive Business Days, unless in each case, the Required Lenders
otherwise agree;

     provided, that the foregoing shall not (i) modify or abrogate any of the provisions of
Section 2.03 regarding each Canadian Lender’s obligations with respect to Canadian Letters
of Credit, or (ii) result in any claim or liability against the Canadian Agent (regardless of the
amount of any Canadian Overadvance) for “inadvertent Canadian Overadvances” (i.e. where a Canadian
Overadvance results from changed circumstances beyond the control of the Canadian Agent (such as a
reduction in the value of Collateral)), and such “inadvertent Canadian Overadvances” shall not
reduce the amount of Permitted Canadian Overadvances allowed hereunder, and provided
further, that in no event shall the Canadian Agent make a Canadian Overadvance, if after giving
effect thereto, the principal amount of the Canadian Credit Extensions would exceed the Aggregate
Canadian Commitments (as in effect prior to any termination of the Canadian Commitments pursuant to
Section 2.06 hereof).

     “Permitted Discretion” means a determination made in good faith and in the exercise of
commercially reasonable business judgment.

     “Permitted Disposition” means each of the following:

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     (a) Dispositions of Inventory in the ordinary course of business;

     (b) bulk sales or other Dispositions of the Inventory of a Loan Party in connection
with Store closings, at arm’s length, provided, that such Store closures and related
Inventory Dispositions shall not exceed (i) in any period of twelve (12) consecutive months,
thirty-five (35) Stores (net of new Store openings) and (ii) in the aggregate from and after
the Closing Date, seventy-five (75) Stores (net of new Store openings), provided
that at any time after the Disposition of an aggregate of twenty-five (25) or more
Stores, in addition to the number of appraisals that may be conducted in accordance with
Section 6.10, upon the request of either Co-Collateral Agent, an additional
inventory appraisal may be required to be performed at the expense of the Loan Parties;
provided, further that, if reasonably required by either of the Co-Collateral Agents
or the Canadian Agent, all sales of Inventory in connection with Store closings shall be in
accordance with liquidation agreements and with professional liquidators reasonably
acceptable to the Agents; provided, further that an amount equal to the Net Proceeds
received in connection therewith is applied to the prepayment of Loans if and to the extent
then required in accordance with Section 2.05(f) hereof;

     (c) licenses of Intellectual Property of a Loan Party or any of its Subsidiaries in the
ordinary course of business;

     (d) licenses for the conduct of licensed departments within the Loan Parties’ Stores in
the ordinary course of business; provided that, if requested by the Agents, the applicable
Loan Party shall have used commercially reasonable efforts to cause the Person operating
such licensed department to enter into an intercreditor agreement with the Administrative
Agent or Canadian Agent, as applicable, on terms and conditions reasonably satisfactory to
the Agents;

     (e) Dispositions of Equipment and other assets (including abandonment of or other
failures to maintain, preserve, renew, protect or keep in full force and effect Intellectual
Property) in the ordinary course of business that is substantially worn, damaged, obsolete
or, in the judgment of a Loan Party, no longer useful or necessary in its business or that
of any Americas Subsidiary;

     (f) Dispositions among the Loan Parties or by any Subsidiary to a Loan Party;

     (g) Dispositions by any Subsidiary which is not a Loan Party to another Subsidiary that
is not a Loan Party;

     (h) Dispositions of Real Estate of any Loan Party or any Americas Subsidiary (or
Dispositions of any Person or Persons created to hold such Real Estate or the equity
interests in such Person or Persons), including sale-leaseback transactions involving any
such Real Estate pursuant to leases on market terms, as long as, (i) such Disposition is
made for fair market value, and (ii) an amount equal to the Net Proceeds of such Disposition
received by any Loan Party is applied to the prepayment of Loans in the manner required by
Section 2.05(f);

     (i) Dispositions consisting of the compromise, settlement or collection of Accounts
receivable in the ordinary course of business, consistent with past practices;

     (j) leases, subleases, space leases, licenses or sublicenses of Real Estate (and
terminations of any of the foregoing), in each case in the ordinary course of business and
which do not materially interfere with the business of the Parent and its Subsidiaries,
taken as a whole;

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     (k) Dispositions of cash, cash equivalents and Permitted Investments described in
clauses (a) through (h) of the definition of “Permitted Investments” contained in this
Agreement, in each case on ordinary business terms and, to the extent constituting a
Disposition, the making of Permitted Investments;

     (l) any Disposition of Real Estate to a Governmental Authority as a result of the
condemnation of such Real Estate;

     (m) Dispositions of property to the extent that (i) such property is exchanged for
credit against the purchase price of similar replacement property that is promptly purchased
or (ii) the proceeds of such Disposition are promptly applied to the purchase price of such
replacement property (which replacement property is actually promptly purchased);

     (n) to the extent constituting a Disposition, (i) transactions permitted by
Sections 0, (ii) Restricted Payments permitted by Section 0 and (iii) Liens
permitted by Section 0;

     (o) Dispositions of Investments in joint ventures; and

     (p) other Dispositions for consideration not exceeding $5,000,000 in the aggregate
during any consecutive twelve (12) month period so long as no Event of Default has occurred
and is continuing or would immediately result therefrom, provided that an amount equal to
the Net Proceeds of such Disposition received by any Loan Party is applied to the prepayment
of Loans in the manner and to the extent required by Section 2.05(f).

     “Permitted Domestic Overadvance” means a Domestic Overadvance made by the
Administrative Agent, in its Permitted Discretion, which:

     (a) is made to maintain, protect or preserve the Collateral and/or the Credit Parties’
rights under the Loan Documents or which is otherwise for the benefit of the Credit Parties;
or

     (b) is made to enhance the likelihood of, or to maximize the amount of, repayment of
any Obligation; or

     (c) is made to pay any other amount chargeable to any Loan Party hereunder or any other
Loan Document; and

     (d) together with all other Permitted Domestic Overadvances then outstanding, shall not
(i) exceed at any time the lesser of $10,000,000 or ten percent (10%) of the Domestic
Borrowing Base at any time or (ii) unless a Liquidation is occurring, remain outstanding for
more than thirty (30) consecutive Business Days, unless in each case, the Required Lenders
otherwise agree;

     provided, that the foregoing shall not (i) modify or abrogate any of the provisions of
Section 2.03 regarding each Domestic Lender’s obligations with respect to Domestic Letters
of Credit, or (ii) result in any claim or liability against the Administrative Agent (regardless of
the amount of any Domestic Overadvance) for “inadvertent Domestic Overadvances” (i.e. where a
Domestic Overadvance results from changed circumstances beyond the control of the Administrative
Agent (such as a reduction in the value of Collateral)), and such “inadvertent Domestic
Overadvances” shall not reduce the amount of Permitted Domestic Overadvances allowed hereunder, and
provided further, that in no event shall the Administrative Agent make a Domestic
Overadvance, if after giving effect thereto, the principal amount

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of the Domestic Credit Extensions would exceed the Aggregate Domestic Commitments (as in
effect prior to any termination of the Domestic Commitments pursuant to Section 2.06
hereof).

     “Permitted Encumbrances” means any of the following:

     (a) Liens imposed by law for Taxes that are not yet due or are being contested in
compliance with Section 0;

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by applicable Law, arising in the ordinary course of business and securing
obligations that are not overdue by more than thirty (30) days or are being contested in
compliance with Section 0;

     (c) pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security or similar laws or
regulations, other than any Lien imposed by ERISA or any other applicable Law relating to
Plans;

     (d) deposits to secure or relating to the performance of bids, trade contracts,
government contracts and leases (other than Indebtedness), statutory obligations, surety,
stay, customs and appeal bonds, performance bonds and other obligations of a like nature
incurred in the ordinary course of business;

     (e) Liens in respect of judgments that do not constitute an Event of Default hereunder;

     (f) easements, covenants, conditions, restrictions, building code laws, zoning
restrictions, rights-of-way and similar encumbrances on real property imposed by law or
arising in the ordinary course of business that do not secure any monetary obligations and
do not materially detract from the value of the affected property or materially interfere
with the ordinary conduct of business of the Parent and the Americas Subsidiaries, taken as
a whole, and such other minor title defects or survey matters that are disclosed by current
surveys that, in each case, do not materially interfere with the ordinary conduct of
business of the Parent and the Americas Subsidiaries, taken as a whole;

     (g) Liens existing on the date hereof and listed on Schedule 0 and any renewals
or extensions thereof, provided that (i) the property covered thereby is not changed
other than after-acquired property affixed or incorporated thereto and proceeds or products
thereof, (ii) the amount secured or benefited thereby is not increased except to the extent
permitted hereunder, and (iii) any renewal or extension of the obligations secured or
benefited thereby is permitted hereunder;

     (h) Liens on fixed or capital assets acquired by any Loan Party securing Indebtedness
permitted under clause (c) of the definition of Permitted Indebtedness so long as (i) such
Liens and the Indebtedness secured thereby are incurred prior to or within one hundred and
eighty (180) days after such acquisition (other than refinancing thereof permitted
hereunder), (ii) the Indebtedness secured thereby does not exceed the cost of acquisition of
such fixed or capital assets and (iii) such Liens shall not extend to any other property or
assets of the Loan Parties, replacements thereof and additions and accessions to such
property and the proceeds and the products thereof;

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     (i) Liens in favor the Administrative Agent and the Canadian Agent under the Security
Documents for their own benefit and the benefit of the other Credit Parties, as applicable;

     (j) landlords’ and lessors’ Liens in respect of rent not in default for more than any
applicable grace period, not to exceed thirty (30) days;

     (k) possessory Liens in favor of brokers and dealers arising in connection with the
acquisition or disposition of Investments owned as of the date hereof and other Permitted
Investments, provided that such Liens (i) attach only to such Investments or other
Investments held by such broker or dealer and (ii) secure only obligations incurred in the
ordinary course and arising in connection with the acquisition or disposition of such
Investments and not any obligation in connection with margin financing;

     (l) Liens arising solely by virtue of any statutory or common law provisions relating
to banker’s liens, liens in favor of securities intermediaries, rights of setoff or similar
rights and remedies as to deposit accounts or securities accounts or other funds maintained
with depository institutions or securities intermediaries;

     (m) Liens (if any) arising from precautionary UCC or PPSA filings regarding “true”
operating leases or the consignment of goods to a Loan Party or any Subsidiary;

     (n) voluntary Liens on property (other than property of any Loan Party of the type
included in either the Canadian Borrowing Base or the Domestic Borrowing Base) in existence
at the time such property is acquired pursuant to a Permitted Investment or on such property
of a Subsidiary of a Loan Party in existence at the time such Subsidiary is acquired
pursuant to a Permitted Investment; provided that such Liens are not incurred in
connection with, or in anticipation of, such Permitted Investment and do not attach to any
other assets of any Loan Party or any Subsidiary;

     (o) Liens in favor of customs and revenues authorities imposed by applicable Law
arising in the ordinary course of business in connection with the importation of goods and
securing obligations (i) that are not overdue by more than thirty (30) days, or (ii)(A) that
are being contested in good faith by appropriate proceedings, (B) the applicable Loan Party
or Subsidiary has set aside on its books adequate reserves with respect thereto in
accordance with GAAP and (C) such contest effectively suspends collection of the contested
obligation and enforcement of any Lien securing such obligation;

     (p) Liens on cash advances or any cash earnest money deposits in favor of the seller of
any property to be acquired in any Permitted Acquisition or other Permitted Investment;

     (q) leases or subleases granted to others in the ordinary course of business which do
not interfere in any material respect with the business of the Parent and its Subsidiaries,
taken as a whole;

     (r) any interest or title of a licensor, sublicensor, lessor or sublessor under
licenses, leases, sublicenses, or subleases entered into by the Parent or any of its
Subsidiaries in the ordinary course of business provided such interest or title is limited
to the property that is the subject of such transaction;

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     (s) Liens in respect of the licensing and sublicensing of Intellectual Property in the
ordinary course of business;

     (t) Liens that are contractual rights of set-off relating to purchase orders and other
similar agreements entered into by the Parent or any of its Subsidiaries;

     (u) Liens on insurance policies and the proceeds thereof securing the financing of the
premiums with respect thereto incurred in the ordinary course of business;

     (v) Liens arising out of any sale and leaseback transaction permitted hereunder in the
real property and related improvements that are the subject of such transaction and securing
the related Indebtedness under clause (f) of the definition of “Permitted Indebtedness”;

     (w) Liens securing Indebtedness in respect of the Term Loan Documents (or any Permitted
Amendment/Refinancing in respect of any of the foregoing); provided such Liens (to
the extent covering Collateral) are subject to the Intercreditor Agreement (or, in the case
of any Permitted Amendment/Refinancing thereof, another intercreditor agreement containing
terms that are at least as favorable to the Credit Parties as those contained in the
Intercreditor Agreement); and

     (x) other Liens securing Indebtedness in an aggregate outstanding principal amount not
to exceed $5,000,000.

     “Permitted Indebtedness” means, without duplication, each of the following:

     (a) Indebtedness in respect of the Term Loan Documents and any other Indebtedness
outstanding on the date hereof and listed on Schedule 7.03 and any Permitted
Amendment/Refinancing of any of the foregoing Indebtedness;

     (b) Indebtedness (i) of any Loan Party to any other Loan Party; (ii) of any Subsidiary
that is not a Loan Party to any other Subsidiary that is not a Loan Party; and (iii) of any
Americas Subsidiary that is not a Loan Party to any Loan Party in an aggregate principal
amount not to exceed $5,000,000 outstanding at any time;

     (c) without duplication of Indebtedness described in clause (f) of this definition,
purchase money Indebtedness of any Loan Party to finance the acquisition of any fixed or
capital assets, including Capital Lease Obligations and Synthetic Lease Obligations, and any
Indebtedness assumed in connection with the acquisition of any such assets or secured by a
Lien on any such assets prior to the acquisition thereof, and extensions, renewals and
replacements of any such Indebtedness that do not increase the outstanding principal amount
thereof or result in an earlier maturity date or decreased weighted average life thereof
provided that the terms relating to principal amount, amortization, maturity, collateral (if
any) and subordination (if any), and other material terms taken as a whole, of any such
refinancing, refunding, renewing or extending Indebtedness, and of any agreement entered
into and of any instrument issued in connection therewith, are no less favorable in any
material respect to the Loan Parties or the Lenders than the terms of any agreement or
instrument governing the Indebtedness being refinanced, refunded, renewed or extended and
the interest rate applicable to any such refinancing, refunding, renewing or extending
Indebtedness does not exceed the then applicable market interest rate, provided,
however, that the aggregate principal amount of Indebtedness permitted by this
clause (c) shall not exceed $25,000,000 at any time outstanding; provided further
that, if reasonably requested by any Agent (or in the case of any such Indebtedness of a

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Canadian Loan Party, the Canadian Agent), the Loan Parties shall use commercially
reasonable efforts to cause the holders of such Indebtedness to enter into a Collateral
Access Agreement in favor of the Administrative Agent or the Canadian Agent as applicable;

     (d) obligations (contingent or otherwise) of any Loan Party or any Subsidiary thereof
existing or arising under any Swap Contract, provided that such obligations are (or
were) entered into by such Person in the ordinary course of business for the purpose of
mitigating risks associated with fluctuations in interest rates or foreign exchange rates,
and not for purposes of speculation or taking a “market view”;

     (e) Indebtedness in respect of performance bonds, bid bonds, customs and appeal bonds,
surety bonds, performance and completion guarantees and similar obligations related thereto,
in each case provided in the ordinary course of business;

     (f) Indebtedness incurred for the construction or acquisition or improvement of, or to
finance or to refinance, any Real Estate owned by any Loan Party (including therein any
Indebtedness incurred in connection with sale-leaseback transactions permitted hereunder),
provided that, (i) in the case of any sale-leaseback transaction, an amount equal to
the Net Proceeds received by any Loan Party in connection with any such Indebtedness is
applied to the outstanding Loans in the manner and to the extent required by Section
2.05(f) and (ii) if reasonably requested by the Agents or, if applicable, the Canadian
Agent, the Loan Parties shall use commercially reasonable efforts to cause the holders of
such Indebtedness to enter into a Collateral Access Agreement in favor of the Administrative
Agent or the Canadian Agent, as applicable;

     (g) Indebtedness with respect to the deferred purchase price for any Permitted
Acquisition, provided that such Indebtedness does not require the payment in cash of
principal (other than in respect of working capital adjustments) prior to the Maturity Date,
has a maturity which extends beyond the Maturity Date, and is subordinated to the
Obligations on terms reasonably acceptable to the Agents;

     (h) Indebtedness of any Person that becomes a Subsidiary of a Loan Party in a Permitted
Acquisition, which Indebtedness is existing at the time such Person becomes a Subsidiary
(other than Indebtedness incurred solely in contemplation of such Person’s becoming a
Subsidiary of a Loan Party);

     (i) the Obligations;

     (j) Intentionally Omitted;

     (k) Guarantees by the Parent in connection with the French Credit Agreement so long as
the aggregate principal amount of the obligations Guaranteed does not exceed €268,000,000
(inclusive of any principal amounts described in subsection (m), of this definition;

     (l) any obligations related to the call and put option arrangements to purchase the
preferred shares in Pilot SAS held by Jeannine Boix-Vives, Christine Simon and Sylvie
Bernard in connection with the shareholders agreement, dated as of April 12, 2005, among the
Parent, Laurent Boix-Vives, Jeannine Boix-Vives, Christine Simon and Sylvie Bernard (it
being understood, for the avoidance of doubt, that the amount of such obligations for
purposes of this Agreement shall not be increased as a result of any amendment to such
shareholders agreement);

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     (m) Guarantees of the Parent in connection with the Pilot SAS Facility so long as the
aggregate principal amount of the obligations Guaranteed does not exceed €55,000,000;

     (n) Guarantees of the Parent with respect to the obligations under the Societe Generale
Agreement in an aggregate principal amount not to exceed €50,000,000;

     (o) (i) Indebtedness constituting indemnification obligations or obligations in respect
of purchase price or other similar adjustments in connection with Permitted Dispositions;
and (ii) Indebtedness consisting of obligations of any Loan Party or any Americas Subsidiary
under deferred compensation or other similar arrangements incurred by such Person in
connection with any Permitted Investment;

     (p) Indebtedness consisting of the financing of insurance premiums incurred in the
ordinary course of business of any Loan Party or any Subsidiary;

     (q) Guarantees (i) of any Indebtedness of any Loan Party or any Subsidiary thereof
described in clause (a) hereof, (ii) by any Loan Party of any Indebtedness of another Loan
Party permitted hereunder, and (iii) by any Loan Party of Indebtedness otherwise permitted
hereunder of any Subsidiary that is not a Loan Party to the extent such Guarantees are
permitted pursuant to Section 7.02;

     (r) Indebtedness to current or former officers, directors, managers, consultants and
employees, their respective estates, spouses or former spouses to finance the purchase or
redemption of Equity Interests of the Parent to the extent permitted by
Section 7.06;

     (s) Indebtedness consisting of obligations of any Loan Party under deferred
compensation or other similar arrangements incurred by such Person in connection with any
Investment to the extent permitted under Section 7.02;

     (t) Obligations in respect of Bank Products and Cash Management Services and other
Indebtedness in respect of netting services, automatic clearinghouse arrangements, overdraft
protections and similar arrangements;

     (u) without duplication of any Indebtedness described in clause (a) through (t) above,
other Indebtedness in an aggregate principal amount not to exceed $40,000,000 at any time
outstanding; and

     (v) all premiums (if any), interest (including post-petition interest), fees, expenses,
charges and additional or contingent interest on obligations described in clauses (a)
through (u) above.

     “Permitted Investments” means each of the following:

     (a) readily marketable obligations issued or directly and fully guaranteed or insured
by the United States of America or, with respect to the Canadian Loan Parties, Canada (or by
any agency or instrumentality of the United States of America or Canada, as applicable)
having maturities of not more than one year from the date of acquisition thereof;
provided that the full faith and credit of the United States of America or Canada,
as applicable, is pledged in support thereof;

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     (b) commercial paper issued by any Person organized under the laws of any state of the
United States of America or Canada or any province thereof and rated, at the time of
acquisition thereof, at least “Prime-1” (or the then equivalent grade) by Moody’s or at
least “A-1” (or the then equivalent grade) by S&P, in each case with maturities of not more
than one year from the date of acquisition thereof;

     (c) time deposits with, or insured certificates of deposit or bankers’ acceptances of,
any commercial bank that (i) (A) is a Lender or (B) is organized under the laws of the
United States of America, any state thereof or the District of Columbia (or with respect to
the Canadian Loan Parties, Canada or any province thereof) or is the principal banking
subsidiary of a bank holding company organized under the laws of the United States of
America, any state thereof or the District of Columbia, and is a member of the Federal
Reserve System, (ii) issues (or the parent of which issues) commercial paper rated, at the
time of acquisition thereof, as described in clause (b) of this definition and (iii) has
combined capital and surplus of at least $500,000,000, in each case with maturities of not
more than one year from the date of acquisition thereof;

     (d) fully collateralized repurchase agreements with a term of not more than thirty (30)
days for securities described in clause (a) above (without regard to the limitation on
maturity contained in such clause) and entered into with a financial institution satisfying
the criteria described in clause (c) above at the time of acquisition thereof or with any
primary dealer and having a market value at the time that such repurchase agreement is
entered into of not less than 100% of the repurchase obligation of such counterparty entity
with whom such repurchase agreement has been entered into;

     (e) securities with maturities of one year or less from the date of acquisition issued
or fully guaranteed by any state, commonwealth or territory of the United States or province
or territory of Canada, by any political subdivision or taxing authority of any such state,
commonwealth or territory or by any foreign government, the securities of which state,
commonwealth, territory, political subdivision, taxing authority or foreign government (as
the case may be) are rated at least A by S&P or A by Moody’s;

     (f) securities with maturities of six months or less from the date of acquisition
backed by standby letters of credit issued by any commercial bank satisfying the
requirements of clause (c) of this definition;

     (g) marketable short-term money market and similar securities or funds having, at the
time of acquisition thereof, a rating of at least A-2 from S&P (or, if at any time S&P shall
not be rating such obligations, an equivalent rating from another nationally recognized
rating service);

     (h) Investments, classified in accordance with GAAP as current assets of the Loan
Parties, in any money market fund, mutual fund, or other shares of investment companies that
are registered under the Investment Company Act of 1940, and which invest primarily in one
or more of the types of securities described in clauses (a) through (g) above;

     (i) Investments existing on the Closing Date and set forth on Schedule 7.02,
and any modification, renewal or extension thereof; provided that the amount of any
Investment permitted pursuant to this clause is not increased from the amount of such
Investment on the Closing Date except pursuant to the terms of such Investment as of the
Closing Date or as otherwise permitted by Section 7.02;

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     (j) Investments (i) by any Loan Party in any other Loan Party, (ii) by any Subsidiary
that is not a Loan Party in any other Subsidiary that is not a Loan Party, and (iii) by any
Loan Party in any Subsidiary that is not a Loan Party; provided that all such Investments
pursuant to this clause (iii) shall not exceed $10,000,000 in the aggregate at any one time
outstanding, exclusive of any Investments in any Subsidiary organized under the laws of
Japan for purposes of refinancing, or providing a Guarantee by the Parent in respect of,
Indebtedness of any such Subsidiary, which shall not exceed $10,000,000 in the aggregate at
any one time outstanding;

     (k) (i) Investments by any Loan Party and its Subsidiaries in their respective
Subsidiaries outstanding on the date hereof; (ii) additional Investments by any Loan Party
and its Subsidiaries in Loan Parties; and (iii) Investments in, or for purposes of funding,
Quiksilver Brazil JV and QS Mexico Holdings to the extent required or contemplated by the
applicable joint venture agreement; provided that all such Investments made pursuant to this
clause (iii) shall not exceed $20,000,000 in the aggregate;

     (l) Investments consisting of extensions of credit in the nature of accounts receivable
or notes receivable arising from the grant of trade credit in the ordinary course of
business, and Investments received in satisfaction or partial satisfaction thereof from
financially troubled account debtors and other credits to suppliers in the ordinary course
of business;

     (m) Guarantees constituting Permitted Indebtedness;

     (n) Investments in Swap Contracts permitted hereunder;

     (o) Investments received in connection with the bankruptcy or reorganization of, or
settlement of delinquent accounts and disputes with, customers and suppliers, in each case
in the ordinary course of business;

     (p) (i) advances of payroll payments to employees in the ordinary course of business
and (ii) other loans and advances to officers, directors and employees of the Loan Parties
and Subsidiaries in the ordinary course of business in an amount not to exceed $100,000 to
any individual at any time or in an aggregate amount not to exceed $1,000,000 at any time
outstanding; provided, however, that an individual’s use of a cashless
exercise procedure to pay the exercise price and required tax withholding (or either of
them) in connection with such individual’s exercise of a compensatory option to purchase
stock issued by the Parent shall not give rise to a loan or advance for the purposes of this
clause (ii) to the extent that all funds representing full payment of such option exercise
price and required tax withholding are actually remitted to the Parent before the close of
business on either (x) the date of exercise of the stock option or (y) the date of issuance
of the stock pursuant to the option exercise;

     (q) Investments constituting Permitted Acquisitions and earnest money deposits made in
connection with any letter of intent or purchase agreement entered into in connection with
any Permitted Acquisition;

     (r) capital contributions made by any Loan Party to another Loan Party;

     (s) Investments of any Person existing at the time such Person becomes a Subsidiary of
any Loan Party or consolidates, amalgamates or merges with the Parent or any of its
Subsidiaries (including in connection with a Permitted Acquisition) so long as such
Investments were not made in contemplation of such Person becoming a Subsidiary or of such
consolidation, amalgamation or merger;

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     (t) Guarantees of leases or other obligations of any Loan Party that do not constitute
Indebtedness, in each case entered into in the ordinary course of business;

     (u) other Investments in an aggregate amount not the exceed $10,000,000 at any time
outstanding; and

     (v) other Investments as long as the Payment Conditions are satisfied at the time of
consummation thereof;

provided, however, that notwithstanding the foregoing, (i) except as otherwise
provided in any Security Document, no Investment of any Loan Party of a type specified in clauses
(a) through (h) above (each, a “Cash Equivalent”) shall constitute a Permitted Investment unless
such Investment is pledged to the Administrative Agent or the Canadian Agent, as applicable, as
additional collateral for the applicable Obligations pursuant to such security and control
agreements as may be reasonably required by any Agent and (ii) no Cash Equivalent of any Loan Party
shall constitute a Permitted Investment after the occurrence and during the continuance of a Cash
Dominion Event while any Loans are outstanding unless such Cash Equivalent is a temporary
Investment pending expiration of an Interest Period for a LIBO Rate Loan or a BA Equivalent Loan
and the proceeds of such Cash Equivalent will be applied to the outstanding Loans (if any), in the
manner provided in Section 2.05, after the expiration of such Interest Period if a Cash
Dominion Event then exists and is continuing.

     “Permitted Overadvance” means either a Permitted Domestic Overadvance or a Permitted
Canadian Overadvance.

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, limited partnership, Governmental Authority or
other entity.

     “Pilot SAS” means Pilot SAS, a société par actions simplifiée and an indirect
subsidiary of the Parent.

     “Pilot SAS Facility” means that certain credit agreement dated as of March 14, 2008
among, inter alia, Pilot SAS, Crédit Lyonnais, BNP Paribas and Société Générale SA, as amended.

     “Plan” means (a) in respect of the Domestic Loan Parties any Pension Plan or “employee
benefit plan” (as such term is defined in Section 3(3) of ERISA) established by a Loan Party or,
with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any
ERISA Affiliate, or (b) in respect of the Canadian Loan Parties, any Canadian Pension Plan or other
pension benefit or retirement savings plan maintained by any of the Canadian Loan Parties for its
employees or its former employees to which any of the Canadian Loan Parties contributes or are
required to contribute with respect to which any of the Canadian Loan Parties have incurred or may
incur liability, including contingent liability.

     “Platform” has the meaning specified in Section 0.

     “Pledge Agreement” means the Pledge Agreement dated as of the Closing Date among the
Domestic Loan Parties party thereto and the Administrative Agent.

     “Post-Closing Letter” means that certain letter dated July 31, 2009 amongst the
Administrative Agent and the Loan Parties with respect to certain matters to be finalized and
delivered subsequent to the Closing Date.

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     “PPSA” means the Personal Property Security Act (Ontario) (or any successor statute)
or similar legislation of any other Canadian jurisdiction, including, without limitation, the Civil
Code of Quebec, the laws of which are required by such legislation to be applied in connection with
the issue, perfection, enforcement, opposability, validity or effect of security interests or other
applicable Liens.

     “Prepayment Event” means:

     (a) any Disposition (including pursuant to a sale and leaseback transaction) of any
property or asset of a Loan Party described in clause (b), (h) or (p) of the definition of
“Permitted Disposition” generating Net Proceeds in excess of $1,000,000;

     (b) any casualty, expropriation or other insured damage to, or any taking under power
of eminent domain or by condemnation or similar proceeding of, any property or asset of a
Loan Party generating Net Proceeds in excess of $1,000,000, unless (i) the proceeds
therefrom are required to be paid to the holder of a Lien on such property or asset having
priority over the Lien of the Administrative Agent or the Canadian Agent, as applicable, or
(ii) except while a Cash Dominion Event exists, the proceeds therefrom are utilized for
purposes of replacing or repairing the assets in respect of which such proceeds were
received within 180 days of the occurrence of the damage to or loss of the assets being
repaired or replaced; or

     (c) the incurrence by a Loan Party of any Indebtedness for borrowed money other than
Permitted Indebtedness.

     “Prime Rate” means, for any day, a fluctuating rate per annum equal to the
highest of (a) the rate of interest in effect for such day as publicly announced from time to time
by Bank of America as its “prime rate”, (b) the Federal Funds Rate for such day plus one-half of
one percent (0.50%) or (c) the Adjusted LIBO Rate for a one month interest period as determined on
such day plus one percent (1.00%). The “prime rate” is a rate set by Bank of America based upon
various factors including Bank of America’s costs and desired return, general economic conditions
and other factors, and is used as a reference point for pricing some loans, which may be priced at,
above, or below such announced rate. Any change in such rate announced by Bank of America shall
take effect at the opening of business on the day specified in the public announcement of such
change.

     “Prime Rate Loan” means a Canadian Prime Rate Loan or a Domestic Prime Rate Loan, as
the context may require.

     “Public Lender” has the meaning specified in Section 6.02.

     “Real Estate” means all land, together with the buildings, structures, parking areas,
and other improvements thereon, now or hereafter owned or leased by any Loan Party or any
Subsidiary, including all easements, rights-of-way, and similar rights relating thereto.

     “Receivables Advance Rate” means eighty-five percent (85%).

     “Receivables Reserves” means, without duplication of any other Reserves or items that
are otherwise addressed or excluded through eligibility criteria, such Reserves as may be
established from time to time by any Agent or, if applicable, the Canadian Agent in its Permitted
Discretion with respect to the determination of the collectibility in the ordinary course of
Eligible Trade Receivables. Upon the determination by any Agent or the Canadian Agent in its
Permitted Discretion that a Receivables Reserve should be established or modified, the
Co-Collateral Agent shall notify the Administrative Agent or the Canadian Agent, as applicable, in
writing and the Administrative Agent or the Canadian Agent, as

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applicable, shall thereupon establish or modify such Receivables Reserve, in all cases subject
to the provisions of Section 0.

     “Register” has the meaning specified in Section 10.04(c).

     “Registered Public Accounting Firm” has the meaning specified by the Securities Laws
and shall be independent of the Parent and its Subsidiaries as prescribed by the Securities Laws.

     “Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents and advisors of such Person and of such Person’s
Affiliates.

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the 30 day notice period has been waived.

     “Reports” has the meaning provided in Section 9.04(b).

     “Request for Credit Extension” means (a) with respect to a Committed Borrowing,
conversion or continuation of Committed Loans, a Committed Loan Notice, (b) with respect to an L/C
Credit Extension, a Letter of Credit Application, and (c) with respect to a Swing Line Loan, a
Swing Line Loan Notice.

     “Required Lenders” means, as of any date of determination, (a) at such time as there
are three (3) or fewer Lenders, all such Lenders and (b) at such time as there are more than three
(3) Lenders, at least two Lenders holding more than fifty percent (50%) of the Aggregate Total
Commitments or, if the commitment of each Lender to make Loans and the obligation of the L/C Issuer
to make L/C Credit Extensions have been terminated pursuant to Section 8.02, at least two
Lenders holding in the aggregate more than 50% of the Total Outstandings (with the aggregate amount
of each Lender’s risk participation and funded participation in L/C Obligations and Swing Line
Loans being deemed “held” by such Lender for purposes of this definition); provided that the
Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting
Lender shall be excluded for purposes of making a determination of Required Lenders.

     “Reserves” means all (if any) Inventory Reserves, Availability Reserves and
Receivables Reserves.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, treasurer or assistant treasurer of a Loan Party or any of the other individuals
designated in writing to the Administrative Agent by an existing Responsible Officer of a Loan
Party as an authorized signatory of any certificate or other document to be delivered hereunder.
Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed
to have acted on behalf of such Loan Party.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity Interest of any
Loan Party or any of its Americas Subsidiaries, or any payment (whether in cash, securities or
other property), including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, defeasance, acquisition, cancellation or termination of any such capital
stock or other Equity Interest, or on account of any return of capital to such Person’s
stockholders, partners or members (or the equivalent of any thereof), or any option, warrant or
other right to acquire any such dividend or other distribution or payment. Without limiting the
foregoing, “Restricted Payments” with respect to any Loan Party or any

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Americas Subsidiary shall also include all payments made by such Person with any proceeds of a
dissolution or liquidation of such Loan Party or such Americas Subsidiary.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. and any successor thereto.

     “Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002, as amended and in effect from
time to time.

     “SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     “Securities Laws” means, collectively, the Securities Act of 1933, the Securities
Exchange Act of 1934, Sarbanes-Oxley, and the applicable accounting and auditing principles, rules,
standards and practices promulgated, approved or incorporated by the SEC or the PCAOB; and all
applicable securities laws in each province and territory of Canada and the respective regulations,
rules regulations, blanket orders and blanket rulings under such laws together with applicable
published policy statements and notices of the securities regulator of each such province and
territory.

     “Security Agreement” means the Security Agreement dated as of the Closing Date among
the Domestic Loan Parties and the Administrative Agent.

     “Security Documents” means the Security Agreement, the Canadian Security Documents,
the Pledge Agreement, the Intellectual Property Security Agreement, the Blocked Account Agreements,
the Credit Card Notifications, and each other security agreement or other instrument or document
executed and delivered by or on behalf of any Loan Party to the Administrative Agent or the
Canadian Agent pursuant to this Agreement or any other Loan Document granting a Lien to secure any
of the Obligations or the Canadian Liabilities, as applicable.

     “Senior Note Indenture” means the Indenture, dated as of July 22, 2005, between the
Parent as issuer and Wilmington Trust Company as trustee in connection with the issuance of the
Senior Notes.

     “Senior Notes” means the senior unsecured notes issued by the Parent pursuant to the
Senior Note Indenture.

     “Settlement Date” has the meaning provided in Section 2.12(a).

     “Shareholders’ Equity” means, as of any date of determination, consolidated
shareholders’ equity of the Parent and its Subsidiaries, or the Parent and its Americas
Subsidiaries, as applicable, as of that date determined in accordance with GAAP, as applicable.

     “Shrink” means Inventory of the Borrowing Base Parties which has been lost, misplaced,
stolen, or is otherwise unaccounted for.

     “Societe Generale Agreement” means the Subscription Agreement, dated July 11, 2005,
with QS Finance Luxembourg SA, as issuer, and Société Générale, as subscriber, relating to
Indebtedness in an original aggregate principal amount of €50,000,000, as amended as the date
hereof and any Permitted Amendment/Refinancing thereof.

     “Solvent” and “Solvency” means, with respect to any Person on a particular
date, that on such date (a) at fair valuation, all of the properties and assets of such Person are
greater than the sum of the

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debts, including contingent liabilities, of such Person, (b) the present fair saleable value
of the properties and assets of such Person is not less than the amount that would be required to
pay the probable liability of such Person on its debts as they become absolute and matured, (c)
such Person is able to realize upon its properties and assets and pay its debts and other
liabilities, contingent obligations and other commitments as they mature in the normal course of
business, (d) such Person does not intend to, and does not believe that it will, incur debts beyond
such Person’s ability to pay as such debts mature, (e) such Person is not engaged in a business or
a transaction, and is not about to engage in a business or transaction, for which such Person’s
properties and assets would constitute unreasonably small capital after giving due consideration to
the prevailing practices in the industry in which such Person is engaged, and (f) such Person is
not “insolvent” within the meaning of Section 101(32) of the Bankruptcy Code and, in the case of
any Canadian Loan Party, is not an “insolvent person” within the meaning of such term in the
Bankruptcy and Insolvency Act (Canada), as applicable. The amount of all guarantees or other
contingent liabilities at any time shall be computed as the amount that, in light of all the facts
and circumstances existing at the time, can reasonably be expected to become an actual or matured
liability.

     “Standby Letter of Credit” means any Letter of Credit that is not a Commercial Letter
of Credit.

     “Stated Amount” means at any time, the maximum amount for which a Letter of Credit may
be honored.

     “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the FRB to which the Administrative Agent is subject with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the FRB). Such reserve percentages shall include those imposed
pursuant to such Regulation D. LIBO Rate Loans shall be deemed to constitute eurocurrency funding
and to be subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender under such Regulation D
or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as
of the effective date of any change in any reserve percentage.

     “Store” means any retail store (which may include any real property, fixtures,
equipment, inventory and other property related thereto) operated, or to be operated, by any Loan
Party.

     “Subordinated Indebtedness” means Indebtedness which is expressly subordinated in
right of payment to the prior payment in full of the Obligations and which is in form and on terms
approved in writing by the Administrative Agent.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company, unlimited liability company or other business entity of which a majority of the
shares of Equity Interests having ordinary voting power for the election of directors or other
governing body are at the time beneficially owned, or the management of which is otherwise
Controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.
Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall
refer to a Subsidiary or Subsidiaries of a Loan Party.

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap

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transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other
similar transactions or any combination of any of the foregoing (including any options to enter
into any of the foregoing), whether or not any such transaction is governed by or subject to any
master agreement, and (b) any and all transactions of any kind, and the related confirmations,
which are subject to the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement (any such master agreement, together with
any related schedules, a “Master Agreement”), including any such obligations or liabilities under
any Master Agreement.

     “Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts (which may include a
Lender or any Lender Affiliate of a Lender).

     “Swing Line” means the revolving credit facility made available by the Swing Line
Lender pursuant to Section 2.04.

     “Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section
2.04.

     “Swing Line Lender” means Bank of America, in its capacity as provider of Swing Line
Loans to the Domestic Borrowers, and Bank of America-Canada Branch, in its capacity as provider of
Swing Line Loans to the Canadian Borrower, or any successor swing line lender hereunder.

     “Swing Line Loan” has the meaning specified in Section 2.04(a), and shall
include all such Loans made by the Swing Line Lender to the Domestic Borrowers and the Canadian
Borrower.

     “Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to
Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit
B-1 (Domestic Swing Line Loan Notice) or Exhibit B-2 (Canadian Swing Line Loan Notice),
as applicable.

     “Swing Line Note” means the Domestic Swing Line Note and the Canadian Swing Line Note,
as the context may require.

     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property (including sale and leaseback transactions), in each case, creating
obligations that do not appear on the balance sheet of such Person but which, upon the application
of any Debtor Relief Laws to such Person, would be characterized as the indebtedness of such Person
(without regard to accounting treatment).

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

     “Term Loan Collateral Agent” means, collectively, (a) Rhône Group L.L.C., in its
capacity as sub-agent for the U.S. Term Loan Agent, as collateral agent, together with any
successor agent (including pursuant to any Permitted Amendment/Refinancing of the US Term Loan
Credit Agreement) and (b)

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Rhône Group L.L.C., in its capacity as sub-agent for the Euro Term Loan Agent, as collateral
agent, together with any successor agent (including pursuant to any Permitted Amendment/Refinancing
of the Euro Term Loan Credit Agreement).

     “Term Loans” means the term loans in the original principal amount of $125,000,000
made pursuant to the US Term Loan Credit Agreement and €20,000,000 made pursuant to the Euro Term
Loan Credit Agreement, in each case together with all interest paid in kind, if any, that has been
added to the principal balance of such loans.

     “Term Loan Documents” means any and all documents executed in connection with the US
Term Loan Credit Agreement or the Euro Term Loan Credit Agreement.

     “Termination Date” means the earliest to occur of (i) the Maturity Date, (ii) the date
on which the maturity of the Obligations is accelerated (or deemed accelerated) and the Commitments
are irrevocably terminated (or deemed terminated) in accordance with Article VIII, or (iii)
the date of the occurrence of any Event of Default pursuant to Section ARTICLE VIII(f).

     “Total Canadian Outstandings” means, without duplication, the aggregate Outstanding
Amount of all Canadian Loans and all Canadian L/C Obligations.

     “Total Domestic Outstandings” means, without duplication, the aggregate Outstanding
Amount of all Domestic Loans and all Domestic L/C Obligations.

     “Total Loan Cap” means the aggregate of the Canadian Loan Cap and the Domestic Loan
Cap.

     “Total Outstandings” means the aggregate of all Total Canadian Outstandings and all
Total Domestic Outstandings.

     “Trading with the Enemy Act” has the meaning set forth in Section 0.

     “Type” means, with respect to a Committed Loan, its character as a Prime Rate Loan, a
LIBO Rate Loan or a BA Equivalent Loan.

     “UCC” or “Uniform Commercial Code” means the Uniform Commercial Code as in
effect from time to time in the State of New York and all terms used in this Agreement or any other
Loan Document and not otherwise defined herein or therein shall have the respective meanings (if
any) given such terms in the UCC; provided that, if a term is defined in Article 9 of the
Uniform Commercial Code differently than in another Article thereof, the term shall have the
meaning set forth in Article 9; provided further that, if by reason of mandatory provisions
of law, perfection, or the effect of perfection or non-perfection, of a security interest in any
Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than the State of New York, “Uniform Commercial Code” means
the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such perfection or effect of perfection or non-perfection or availability of
such remedy, as the case may be.

     “UFCA ” has the meaning specified in Section 10.08(d).

     “UFTA” has the meaning specified in Section 10.08(d).

     “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities
under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets,
determined in

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accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of
the Code for the applicable plan year.

     “United States” and “U.S.” mean the United States of America.

     “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

     “US Term Loan Agent” means Rhône Group L.L.C., in its capacity as agent for the
lenders under the US Term Loan Credit Agreement, together with any successor agent (including
pursuant to any Permitted Amendment/Refinancing of the US Term Loan Credit Agreement).

     “US Term Loan Credit Agreement” means that certain Credit Agreement dated as of the
Closing Date among the Parent, the Lead Borrower, the lenders party thereto and the US Term Loan
Agent (and any Permitted Amendment/Refinancing thereof).

     “Wholly Owned Subsidiary” means, with respect to any Person, any corporation,
partnership or other entity of which all of the Equity Interests (other than, in the case of a
corporation, directors’ qualifying shares) are directly or indirectly owned or controlled by such
Person or one or more Wholly Owned Subsidiaries of such Person or by such Person and one or more
Wholly Owned Subsidiaries of such Person.

     Other Interpretive Provisions. With reference to this Agreement and each other Loan Document,
unless otherwise specified herein or in such other Loan Document:

     (c) The definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase
“without limitation.” The word “will” shall be construed to have the same meaning
and effect as the word “shall.” Unless the context requires otherwise, (i) any
definition of or reference to any agreement, instrument or other document (including any
Organization Document) shall be construed as referring to such agreement, instrument or
other document as from time to time amended, restated, amended and restated, supplemented or
otherwise modified (subject to any restrictions on such amendments, restatements, amendment
and restatements, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to include such
Person’s successors and assigns, (iii) the words “herein,” “hereof” and
“hereunder,” and words of similar import when used in any Loan Document, shall be
construed to refer to such Loan Document in its entirety and not to any particular provision
thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any
law shall include all statutory and regulatory provisions consolidating, amending replacing
or interpreting such law and any reference to any law or regulation shall, unless otherwise
specified, refer to such law or regulation as amended, modified or supplemented from time to
time, and (vi) the words “asset” and “property” shall be construed to have
the same meaning and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.

     (d) In the computation of periods of time from a specified date to a later specified
date, unless otherwise expressly provided, the word “from” means “from and
including;” the words “to” and “until” each mean “to but
excluding;” and the word “through” means “to and including.”

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     (e) Article and Section headings used herein and in the other Loan Documents are for
convenience of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this Agreement or any other
Loan Document.

     (f) Any other undefined term contained in any of the Loan Documents shall, unless the
context indicates otherwise, have the meaning provided for such term in the Uniform
Commercial Code as in effect in the State of New York or the PPSA, as the context may
require, to the extent the same are used or defined therein.

     (g) Whenever any provision in any Loan Document refers to the knowledge (or an
analogous phrase) of any Loan Party, such words are intended to signify that such Loan Party
has actual knowledge or awareness of a particular fact or circumstance or that such Loan
Party, if it had exercised reasonable diligence, would have known or been aware of such fact
or circumstance.

     1.02 Accounting Terms; Currency Equivalents.

     (a) Generally. All accounting terms not specifically or completely defined
herein shall be construed in conformity with, and all financial data (including financial
ratios and other financial calculations) required to be submitted pursuant to this Agreement
shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from
time to time, applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed herein.

     (b) Changes in GAAP. If at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in any Loan Document, and either
the Lead Borrower or the Required Lenders shall so request, the Administrative Agent, the
Lenders and the Lead Borrower shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in GAAP (subject
to the approval of the Required Lenders); provided that, until so amended,
(i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to
such change therein and (ii) the Lead Borrower shall provide to the Administrative Agent and
the Lenders financial statements and other documents required under this Agreement or as
reasonably requested hereunder setting forth a reconciliation between calculations of such
ratio or requirement made before and after giving effect to such change in GAAP.

     Rounding. Any financial ratios required to be maintained by the Loan Parties pursuant to this
Agreement shall be calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

     Times of Day. Unless otherwise specified, all references herein to times of day shall be
references to Eastern time (daylight or standard, as applicable).

     Letter of Credit Amounts. Unless otherwise specified, all references herein to the amount of
a Letter of Credit at any time shall be deemed to be the Stated Amount of such Letter of Credit in
effect at such time; provided, however, that with respect to any Letter of Credit that, by
its terms of any Issuer Documents related thereto, provides for one or more automatic increases in
the Stated Amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum
Stated Amount of such Letter of

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Credit after giving effect to all such increases, whether or not such maximum Stated Amount is
in effect at such time.

     1.03 Certifications.

     All certifications to be made hereunder by an officer or representative of a Loan Party shall
be made by such Person in his or her capacity solely as an officer or a representative of such Loan
Party, on such Loan Party’s behalf and not in such Person’s individual capacity.

     Currency Equivalents Generally. Any amount specified in this Agreement (other than in
Articles II, IX and X, and except as may be calculated pursuant to the definitions of Equivalent
Amount or Equivalent CD$ Amount) or any of the other Loan Documents to be in Dollars shall also
include the equivalent of such amount in any currency other than Dollars, such equivalent amount
thereof in the applicable currency to be determined by the Administrative Agent at such time on the
basis of the Spot Rate (as defined below) for the purchase of such currency with Dollars. For
purposes of this Section 1.08, the “Spot Rate” for a currency means the rate determined by
the Administrative Agent to be the rate quoted by the Person acting in such capacity as the spot
rate for the purchase by such Person of such currency with another currency through its principal
foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to
the date of such determination; provided that the Administrative Agent may obtain such spot rate
from another financial institution designated by the Administrative Agent if the Person acting in
such capacity does not have as of the date of determination a spot buying rate for any such
currency. Notwithstanding the foregoing, for purposes of determining compliance with Sections
0, 0 and 0 with respect to any amount of Indebtedness or Investment in a
currency other than Dollars, no Default or Event of Default shall be deemed to have occurred solely
as a result of changes in rates of exchange occurring after the time such Indebtedness or
Investment is incurred.

     Québec Matters. For purposes of any assets, liabilities or entities located in the Province
of Québec and for all other purposes pursuant to which the interpretation or construction of this
Agreement may be subject to the laws of the Province of Québec or a court or tribunal exercising
jurisdiction in the Province of Québec, (a) “personal property” shall include “movable property”,
(b) “real property” or “real estate” shall include “immovable property”, (c) “tangible property”
shall include “corporeal property”, (d) “intangible property” shall include “incorporeal property”,
(e) “security interest”, “mortgage” and “security” shall include a “hypothec”, “right of
retention”, “prior claim” and a resolutory clause, (f) all references to filing, perfection,
priority, remedies, registering or recording under the UCC or a PPSA shall include publication
under the Civil Code of Québec, (g) all references to “perfection” of or “perfected” security or
security interest shall include a reference to an “opposable” or “set up” hypothec, security or
security interest as against third parties, (h) any “right of offset”, “right of setoff” or similar
expression shall include a “right of compensation”, (i) “goods” shall include “corporeal movable
property” other than chattel paper, documents of title, instruments, money and securities, (j) an
“agent” shall include a “mandatary”, (k) “construction security” shall include “legal hypothecs”,
(l) “joint and several” shall include “solidary”, (m) “gross negligence or willful misconduct”
shall be deemed to be “intentional or gross fault”, (n) “beneficial ownership” shall include
“ownership on behalf of another as mandatary”; (o) “easement” shall include “servitude”, (p)
“priority” shall include “prior claim”, (q) “survey” shall include “certificate of location and
plan”, (r) “state” shall include “province”, (s) “fee simple title” shall include “absolute
ownership”, and (t) “accounts” shall include “claims”.

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01 Committed Loans; Reserves.

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          (a) Subject to the terms and conditions set forth herein, each Domestic Lender severally
agrees to make Committed Domestic Loans to the Domestic Borrowers from time to time, on any
Business Day during the Availability Period, in an aggregate principal amount not to exceed at any
time outstanding the lesser of (x) the amount of the Domestic Commitment of such Domestic Lender,
or (y) the Applicable Percentage of the Domestic Borrowing Base for such Domestic Lender; subject
in each case to the following limitations:

          (i) after giving effect to any Committed Domestic Borrowing, the Total Domestic
Outstandings shall not exceed the Domestic Loan Cap,

          (ii) after giving effect to any Committed Domestic Borrowing, the aggregate Outstanding
Amount of the Committed Domestic Loans of any Domestic Lender, plus (without
duplication) the Applicable Percentage of the Outstanding Amount of all Domestic L/C
Obligations for such Domestic Lender, plus such Domestic Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans made to the Domestic Borrowers
shall not exceed the Domestic Commitment of such Domestic Lender, and

          (iii) the Outstanding Amount of all Domestic L/C Obligations shall not at any time
exceed the Domestic Letter of Credit Sublimit.
Within the limits of the Domestic Commitment for each Domestic Lender, and subject to the other
terms and conditions hereof, the Domestic Borrowers may borrow under this Section 2.01,
prepay under Section 2.05, and reborrow under this Section 2.01. Committed
Domestic Loans may be Domestic Prime Rate Loans or LIBO Rate Loans, as further provided herein.

          (b) Subject to the terms and conditions set forth herein, each Canadian Lender severally
agrees to make Committed Canadian Loans to the Canadian Borrower from time to time, on any Business
Day during the Availability Period, in an aggregate principal amount not to exceed at any time
outstanding the lesser of (x) the amount of the Canadian Commitment of such Canadian Lender, or (y)
the Applicable Percentage of the Canadian Borrowing Base for such Canadian Lender; subject in each
case to the following limitations:

          (i) after giving effect to any Committed Canadian Borrowing, the Total Canadian
Outstandings shall not exceed the Canadian Loan Cap,

          (ii) after giving effect to any Committed Canadian Borrowing, the aggregate Outstanding
Amount of the Committed Canadian Loans of any Canadian Lender, plus (without
duplication) the Applicable Percentage of the Outstanding Amount of all Canadian L/C
Obligations for such Canadian Lender, plus such Canadian Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans made to the Canadian Borrower,
shall not exceed the Canadian Commitment of such Canadian Lender, and

          (iii) the Outstanding Amount of all Canadian L/C Obligations shall not at any time
exceed the Canadian Letter of Credit Sublimit.

Within the limits of the Canadian Commitment for each Canadian Lender, and subject to the other
terms and conditions hereof, the Canadian Borrower may borrow under this Section 2.01,
prepay under Section 2.05, and reborrow under this Section 2.01. Committed
Canadian Loans may be Canadian Prime Rate Loans, LIBO Rate Loans (if in Dollars) or BA Equivalent
Loans, as further provided herein.

          (c) The following are the Inventory Reserves and Availability Reserves as of the Closing Date:

          (i) Shrink (an Inventory Reserve): In the amounts set forth on the Borrowing Base
Certificate delivered on the Closing Date;

          (ii) Domestic Rent (an Availability Reserve): An amount equal to two (2) months’ rent
for all of the Domestic Borrowers’ leased locations in each Landlord Lien State in the
United States, other than leased locations with respect to which the Administrative Agent
has received a Collateral Access Agreement (to be deducted from the Domestic Borrowing
Base);

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          (iii) Canadian Rent (an Availability Reserve): An amount equal to two (2) months’ rent
for all of the Canadian Loan Parties’ leased locations in each Landlord Lien State in
Canada, other than leased locations with respect to which the Canadian Agent has received a
Collateral Access Agreement (to be deducted from the Canadian Borrowing Base);

          (iv) Customer Deposit Liabilities (an Availability Reserve): An amount equal to one
hundred percent (100%) of the customer deposits with the Domestic Borrowers (to be deducted
from the Domestic Borrowing Base) and an amount equal to one hundred percent (100%) of the
customer deposits with the Canadian Loan Parties (to be deducted from the Canadian Borrowing
Base); and

          (v) Gift Certificate and Card Liabilities (an Availability Reserve): An amount equal to
fifty percent (50%) of the Customer Credit Liabilities related to gift certificates or gift
cards as reflected in the Domestic Borrowers’ books and records (to be deducted from the
Domestic Borrowing Base) and an amount equal to fifty percent (50%) of the Customer Credit
Liabilities related to gift certificates or gift cards as reflected in the Canadian Loan
Parties’ books and records (to be deducted from the Canadian Borrowing Base).

          (vi) Other Reserves: As set forth on the Borrowing Base Certificate delivered on the
Closing Date.

          (d) Subject to the provisions of Section 0, any Agent and, if applicable, the Canadian
Agent, shall have the right, at any time and from time to time after the Closing Date, in its
Permitted Discretion to establish new, or modify or eliminate any existing Reserves.

     2.02 Committed Borrowings, Conversions and Continuations of Committed Loans.

          (a) Committed Domestic Loans shall be either Domestic Prime Rate Loans or LIBO Rate Loans, as
the Lead Borrower or the Parent, on behalf of the Domestic Borrowers, may request subject to and in
accordance with this Section 2.02. All Swing Line Loans made to the Domestic Borrowers
shall be only Domestic Prime Rate Loans. Committed Canadian Loans shall be either Canadian Prime
Rate Loans, LIBO Rate Loans (if in Dollars) or BA Equivalent Loans, as the Canadian Borrower or
the Parent, on behalf of the Canadian Borrower, may request subject to and in accordance with this
Section 2.02. All Swing Line Loans made to the Canadian Borrower shall be only Canadian
Prime Rate Loans. Subject to the other provisions of this Section 2.02, Committed
Borrowings of more than one Type may be incurred at the same time.

          (b) Each Committed Borrowing, each conversion of a Committed Loan from one Type to the other,
and each continuation of LIBO Rate Loans and BA Equivalent Loans shall be made upon the irrevocable
notice of the Lead Borrower or the Parent on behalf of the Domestic Borrowers or the Canadian
Borrower or the Parent on behalf of the Canadian Borrower, as applicable, to the Administrative
Agent or the Canadian Agent, as applicable, which may be given by telephone. Each such notice must
be received by the Administrative Agent or the Canadian Agent, as applicable, not later than 11:00
a.m. (i) three Business Days prior to the requested date of any Committed Borrowing of, conversion
to or continuation of LIBO Rate Loans or BA Equivalent Loans, or of any conversion of (x) LIBO Rate
Loans to Domestic Prime Rate Loans or, (in the case of the Canadian Borrower), to Canadian Prime
Rate Loans or (y) BA Equivalent Loans to Canadian Prime Rate Loans, and (ii) one Business Day prior
to the requested date of any Committed Borrowing of either Canadian Prime Rate Loans or Domestic
Prime Rate Loans. Each telephonic notice by the Lead Borrower, the Parent or the Canadian Borrower
pursuant to this Section 2.02(b) must be confirmed promptly by delivery to the
Administrative Agent or the Canadian Agent, as applicable, of a written Committed Loan Notice,
appropriately completed and signed by a Responsible Officer of the Lead Borrower, the Parent or the
Canadian Borrower, as applicable. Each Committed Borrowing of, conversion to or continuation of
LIBO Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in
excess thereof. Each Committed Borrowing of, conversion to or continuation of BA Equivalent Loans
shall be in a principal amount of CD$500,000 or a whole multiple of CD$100,000 in excess thereof.
Except as provided in Sections 2.03(c) and 2.04(c), each Committed Borrowing of or
conversion to Canadian Prime

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Rate Loans or Domestic Prime Rate Loans, as applicable, shall be in a principal amount of
$500,000 or CD$500,000, as applicable, or a whole multiple of $100,000 or CD$100,000, as
applicable, in excess thereof. Each Committed Loan Notice (whether telephonic or written) shall
specify (i) whether the request is for a Committed Borrowing, a conversion of Committed Loans from
one Type to the other, or a continuation of LIBO Rate Loans or BA Equivalent Loans, (ii) the
requested date of the Committed Borrowing, conversion or continuation, as the case may be (which
shall be a Business Day), (iii) the principal amount of Committed Loans to be borrowed, converted
or continued, (iv) the Type of Committed Loans to be borrowed or to which existing Committed Loans
are to be converted, and (v) if applicable, the duration of the Interest Period with respect
thereto. If the request fails to specify a Type of Committed Loan in a Committed Loan Notice or if
the Lead Borrower, the Parent or the Canadian Borrower, as the case may be, fails to give a timely
notice of a conversion or continuation of a LIBO Rate Loan or a BA Equivalent Loan, then the
applicable Committed Loans shall be made as, or converted to, Domestic Prime Rate Loans or Canadian
Prime Rate Loans, as applicable. Any such automatic conversion to Prime Rate Loans shall be
effective as of the last day of the Interest Period then in effect with respect to the applicable
LIBO Rate Loans or BA Equivalent Loans. If the Lead Borrower requests a Committed Borrowing of,
conversion to, or continuation of LIBO Rate Loans or the Canadian Borrower requests a Committed
Borrowing of, conversion to, or continuation of LIBO Rate Loans or BA Equivalent Loans in any such
Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified
an Interest Period of one month. Notwithstanding anything to the contrary herein, a Swing Line
Loan may not be converted to a LIBO Rate Loan or a BA Equivalent Loan.

          (c) Following receipt of a Committed Loan Notice, the Administrative Agent or the Canadian
Agent, as applicable, shall promptly notify each Lender of the amount of its Applicable Percentage
of the applicable Committed Loans, and if no timely notice of a conversion or continuation is
provided by the Lead Borrower or the Parent, on behalf of the Domestic Borrower or by the Parent on
behalf of the Canadian Borrower, the Administrative Agent or the Canadian Agent, as applicable,
shall notify each Lender of the details of any automatic conversion to Prime Rate Loans described
in Section 2.02(b). In the case of a Committed Domestic Borrowing, each Domestic Lender
shall make the amount of its Committed Domestic Loan available to the Administrative Agent in
immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m. on the
Business Day specified in the applicable Committed Loan Notice. In the case of a Committed
Canadian Borrowing, each Canadian Lender shall make the amount of its Committed Canadian Loan
available to the Canadian Agent in immediately available funds at the Canadian Agent’s Office not
later than 1:00 p.m. (Toronto time) on the Business Day specified in the applicable Committed Loan
Notice. Upon satisfaction of the applicable conditions set forth in Section 0 (and, if
such Committed Borrowing is the initial Credit Extension, Section 0), the Administrative
Agent or the Canadian Agent, as applicable, shall use reasonable efforts to make all funds so
received available to the applicable Borrowers in like funds by no later than 4:00 p.m. (and, if
such Borrowing is the initial Credit Extension, 4:00 p.m.) on the day of receipt by the
Administrative Agent or the Canadian Agent, as applicable, either by (i) crediting either the
account of the Lead Borrower or the Canadian Borrower, as applicable, on the books of Bank of
America, with the amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent
(by the Lead Borrower) or the Canadian Agent (by the Canadian Borrower); provided,
however, that (A) if, on the date a Committed Loan Notice with respect to a Committed
Canadian Borrowing is given by the Parent on behalf of the Canadian Borrower or the Canadian
Borrower, as applicable, there are Canadian L/C Borrowings outstanding, then the proceeds of such
Committed Canadian Borrowing, first, shall be applied to the payment in full of any such
Canadian L/C Borrowings, and second, shall be made available to the Canadian Borrower as
provided above; or (B) if, on the date a Committed Loan Notice with respect to a Committed Domestic
Borrowing is given by the Lead Borrower or the Parent on behalf of the Domestic Borrowers, there
are Domestic L/C Borrowings outstanding, then the proceeds of such Committed Domestic Borrowing,
first, shall be applied to the payment in full of any such Domestic L/C Borrowings, and
second, shall be made available to the Domestic Borrowers as provided above.

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          (d) In the event that the Domestic Borrowers, after receipt of an invoice therefor, fail to
pay any interest, fee, service charge, Credit Party Expenses, or other payment to which any Lender
or any Agent is entitled from the Domestic Loan Parties pursuant hereto when due, or at any time
after the occurrence and during the continuance of a Cash Dominion Event, or the Administrative
Agent’s reasonable determination that an Event of Default is likely to occur, the Administrative
Agent, without the request of the Lead Borrower, may advance such interest, fee, service charge,
Credit Party Expenses, or other payment to which any Lender or any Agent is entitled from the
Domestic Loan Parties pursuant hereto or any other Loan Document and may charge the same to the
Loan Account with respect to the Domestic Credit Extensions, notwithstanding that a Domestic
Overadvance may result thereby. In the event that the Canadian Borrower, after receipt of an
invoice therefor, fail to pay any interest, fee, service charge, Credit Party Expenses, or other
payment to which any Lender or any Agent or the Canadian Agent is entitled from the Canadian Loan
Parties pursuant hereto when due, or at any time after the occurrence and during the continuance of
a Cash Dominion Event, or the Administrative Agent’s reasonable determination that an Event of
Default is likely to occur, the Canadian Agent, without the request of the Parent on behalf of the
Canadian Borrower or the Canadian Borrower, may advance such interest, fee, service charge, Credit
Party Expenses, or other payment to which any Lender, any Agent or the Canadian Agent is entitled
from the Canadian Loan Parties pursuant hereto or any other Loan Document and may charge the same
to the Loan Account with respect to the Canadian Credit Extensions, as applicable, notwithstanding
that a Canadian Overadvance may result thereby. The Administrative Agent shall advise the Lead
Borrower of any such advance or charge by the Administrative Agent promptly after the making
thereof, and the Canadian Agent shall advise the Canadian Borrower of any such advance or charge by
the Canadian Agent promptly after the making thereof. Such action on the part of the
Administrative Agent or the Canadian Agent shall not constitute a waiver of the applicable Credit
Party’s rights and the applicable Borrowers’ obligations under Section 2.05(c). Any amount
which is added to the principal balance of the applicable Loan Account as provided in this
Section 2.02(d) shall be deemed to be a Domestic Prime Rate Loan or a Canadian Prime Rate
Loan, as applicable.

          (e) Except as otherwise provided herein, a LIBO Rate Loan or a BA Equivalent Loan may be
continued or converted only on the last day of an Interest Period for such LIBO Rate Loan or BA
Equivalent Loan. During the existence of an Event of Default, no Loans may be requested as,
converted to or continued as LIBO Rate Loans or BA Equivalent Loans without the Consent of the
Required Lenders.

          (f) The Administrative Agent shall promptly notify the Lead Borrower and the applicable
Lenders of the interest rate applicable to any Interest Period for LIBO Rate Loans upon
determination of such interest rate. At any time that Domestic Prime Rate Loans are outstanding,
the Administrative Agent shall notify the Lead Borrower and the Domestic Lenders of any change in
Bank of America’s prime rate used in determining the Prime Rate promptly following the public
announcement of such change.

          (g) The Canadian Agent shall promptly notify the Canadian Borrower and the Canadian Lenders of
the interest rate applicable to any Interest Period for BA Equivalent Loans upon determination of
such interest rate. At any time that Canadian Prime Rate Loans are outstanding, the Canadian Agent
shall notify the Canadian Borrower and the Canadian Lenders of any change in Bank of America-Canada
Branch’s prime rate used in determining the Canadian Prime Rate promptly following the public
announcement of such change.

          (h) After giving effect to all Committed Borrowings, all conversions of Committed Loans from
one Type to the other, and all continuations of Committed Loans as the same Type, there shall not
be more than ten (10) Interest Periods in effect with respect to Committed Loans.

          (i) The Administrative Agent, the Canadian Agent, the Lenders, the Swing Line Lender and the
L/C Issuer shall have no obligation to make any Loan or to provide any Letter of Credit if an
Overadvance would result. The Administrative Agent may, in its Permitted Discretion, make
Permitted Domestic Overadvances without the consent of the Lenders, the Swing Line Lender and the
L/C Issuer and each Domestic Lender shall be bound thereby. The Canadian Agent may, in its
Permitted

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Discretion, make Permitted Canadian Overadvances without the consent of the Lenders, the Swing
Line Lender and the L/C Issuer and each Canadian Lender shall be bound thereby. Any Permitted
Overadvance may constitute a Swing Line Loan. A Permitted Domestic Overadvance is for the account
of the Domestic Borrowers and shall constitute a Domestic Prime Rate Loan and an Obligation and
shall be repaid by the Domestic Borrowers in accordance with the provisions of Section
2.05(c). A Permitted Canadian Overadvance is for the account of the Canadian Borrower and
shall constitute a Canadian Prime Rate Loan and a Canadian Liability and shall be repaid by the
Canadian Borrower in accordance with the provisions of Section 2.05(c). The making of any
such Permitted Overadvance on any one occasion shall not obligate the Administrative Agent, the
Canadian Agent or any Lender to make or permit any Permitted Overadvance on any other occasion or
to permit such Permitted Overadvances to remain outstanding. The making by the Administrative Agent
or the Canadian Agent, as applicable, of a Permitted Overadvance shall not modify or abrogate any
of the provisions of Section 2.03 regarding the Lenders’ obligations to purchase
participations with respect to Letters of Credit or of Section 2.04 regarding the Lenders’
obligations to purchase participations with respect to Swing Line Loans. Neither the
Administrative Agent nor the Canadian Agent shall have any liability for, and no Loan Party or
Credit Party shall have the right to, or shall, bring any claim of any kind whatsoever against the
Administrative Agent or the Canadian Agent with respect to “inadvertent Overadvances” (i.e. where
an Overadvance results from changed circumstances beyond the control of the Administrative Agent or
the Canadian Agent (such as a reduction in the Collateral value)) regardless of the amount of any
such Overadvance(s).

     2.03 Letters of Credit.

          (a) The Letter of Credit Commitment.

     Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in reliance
upon the agreements of the Lenders set forth in this Section 2.03, (1) from time to time on
any Business Day during the period from the Closing Date until the Letter of Credit Expiration
Date, to issue Letters of Credit for the account of any Borrower (provided that any Canadian Letter
of Credit may be for the benefit of any Canadian Loan Party), and to amend or extend Letters of
Credit previously issued by it, in accordance with Section 2.03(b) below, and (2) to honor
drawings under the Letters of Credit; (B) each Domestic Lender severally agrees to participate in
Domestic Letters of Credit and any drawings thereunder; provided that, after giving effect
to any L/C Credit Extension with respect to any Domestic Letter of Credit, (x) the Total Domestic
Outstandings shall not exceed the Domestic Loan Cap, (y) the aggregate Outstanding Amount of the
Committed Domestic Loans of any Domestic Lender, plus (without duplication) such Domestic
Lender’s Applicable Percentage of the Outstanding Amount of all Domestic L/C Obligations,
plus such Domestic Lender’s Applicable Percentage of the Outstanding Amount of all Swing
Line Loans made to the Domestic Borrowers shall not exceed such Domestic Lender’s Domestic
Commitment, and (z) the Outstanding Amount of the Domestic L/C Obligations shall not exceed the
Domestic Letter of Credit Sublimit; and (C) each Canadian Lender severally agrees to participate in
Canadian Letters of Credit and any drawings thereunder; provided that, after giving effect
to any Canadian L/C Credit Extension, (x) the Total Canadian Outstandings shall not exceed the
Canadian Loan Cap, (y) the aggregate Outstanding Amount of the Committed Canadian Loans of such
Canadian Lender, plus (without duplication) such Canadian Lender’s Applicable Percentage of
the Outstanding Amount of all Canadian L/C Obligations, plus such Canadian Lender’s
Applicable Percentage of the Outstanding Amount of all Swing Line Loans made to the Canadian
Borrower shall not exceed such Canadian Lender’s Canadian Commitment, and (z) the Outstanding
Amount of the Canadian L/C Obligations shall not exceed the Canadian Letter of Credit Sublimit.
Each request by the Lead Borrower or the Canadian Borrower, as applicable, for the issuance or
amendment of a Letter of Credit shall be deemed to be a representation by the Domestic Borrowers or
the Canadian Borrower, as applicable, that the L/C Credit Extension so requested complies with the
conditions set forth in the proviso to the preceding sentence. Within the foregoing limits, and
subject to the terms and conditions hereof, each Borrower’s ability to obtain Letters of Credit
shall be fully revolving, and accordingly such Borrower may, during the foregoing period, obtain
Letters of Credit to replace Letters of Credit that have expired or that have been

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drawn upon and reimbursed. Any L/C Issuer (other than Bank of America or any of its Lender
Affiliates) shall notify the Administrative Agent or the Canadian Agent, as applicable, in writing
on each Business Day of all Letters of Credit issued on the prior Business Day by such L/C Issuer,
provided that (i) until the Administrative Agent advises any such L/C Issuer that the provisions of
Section 4.02 are not satisfied, or (ii) the aggregate amount of the Letters of Credit
issued in any such week exceeds such amount as shall be agreed by the Administrative Agent and the
L/C Issuer, such L/C Issuer shall be required to so notify the Administrative Agent in writing only
once each week of the Letters of Credit issued by such L/C Issuer during the immediately preceding
week as well as the daily amounts outstanding for the prior week, such notice to be furnished on
such day of the week as the Administrative Agent and such L/C Issuer may agree.

               (i) The L/C Issuer shall not issue any Letter of Credit, if:

               (A) subject to Section 2.03(b)(iii), the expiry date of such requested Standby
Letter of Credit would occur more than twelve months after the date of issuance or last
extension, unless the Required Lenders have approved such expiry date; or

               (B) subject to Section 2.03(b)(iii), the expiry date of such requested
Commercial Letter of Credit would occur more than 180 days after the date of issuance or
last extension, unless the Required Lenders have approved such expiry date; or

               (C) the expiry date of such requested Letter of Credit would occur after the Letter of
Credit Expiration Date, unless either such Letter of Credit is Cash Collateralized on or
prior to the Letter of Credit Expiration Date or all the Lenders have approved such expiry
date.

               (ii) The L/C Issuer shall not issue any Letter of Credit without the prior consent of the
Administrative Agent or the Canadian Agent, as applicable, if:

          (A) any order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter of Credit,
or any Law applicable to the L/C Issuer or any request or directive (whether or not having
the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer
shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of
credit generally or such Letter of Credit in particular or shall impose upon the L/C Issuer
with respect to such Letter of Credit any restriction, reserve or capital requirement (for
which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing
Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or expense which was
not applicable on the Closing Date and which the L/C Issuer in good faith deems material to
it;

          (B) the issuance of such Letter of Credit would violate one or more policies of the L/C
Issuer applicable to letters of credit generally;

          (C) except as otherwise agreed by the Administrative Agent or the Canadian Agent, as
applicable, and the L/C Issuer, such Letter of Credit is in an initial Stated Amount less
than $25,000 or CD$25,000, as applicable, in the case of a Commercial Letter of Credit, or
$100,000 or CD$100,000, as applicable, in the case of a Standby Letter of Credit;

          (D) such Letter of Credit is to be denominated in a currency other than Dollars or, in
the case of any Canadian Letter of Credit, Canadian Dollars; provided that if the
L/C Issuer, in its discretion, issues a Letter of Credit denominated in a currency other
than Dollars, all reimbursements by the applicable Borrowers of the honoring of any drawing
under such Letter of Credit shall be paid in the currency in which such Letter of Credit was
denominated;

          (E) such Letter of Credit contains any provisions for automatic reinstatement of the
Stated Amount after any drawing thereunder; or

          (F) a default of any Lender’s obligations to fund under Section 2.03(c) exists
or any Lender is at such time a Defaulting Lender or Deteriorating Lender hereunder, unless
the L/C Issuer has received Cash Collateral or otherwise entered into

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arrangements satisfactory to the L/C Issuer with the applicable Borrowers or such
Lender to eliminate the L/C Issuer’s risk with respect to such Lender.

               (iii) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under the terms hereof or
if the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter
of Credit.

               (iv) The L/C Issuer shall act on behalf of the applicable Lenders with respect to any Letters
of Credit issued by it and the documents associated therewith, and the L/C Issuer shall have all of
the benefits and immunities (A) provided to the Administrative Agent and the Canadian Agent in
Article IX with respect to any acts taken or omissions suffered by the L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents
pertaining to such Letters of Credit as fully as if the terms “Administrative Agent” and “Canadian
Agent” as used in Article IX included the L/C Issuer with respect to such acts or
omissions, and (B) as additionally provided herein with respect to the L/C Issuer.

          (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

               (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of
the Lead Borrower or the Parent on behalf of the Domestic Borrowers, or the Canadian Borrower or
Parent on behalf of the Canadian Borrower, as applicable, delivered to the L/C Issuer (with a copy
to the Administrative Agent and, if applicable, the Canadian Agent) in the form of a Letter of
Credit Application, appropriately completed and signed by a Responsible Officer of the Lead
Borrower or the Parent or the Canadian Borrower, as applicable. Such Letter of Credit Application
must be received by the L/C Issuer and the Administrative Agent and, if applicable, the Canadian
Agent, not later than 11:00 a.m. at least two (2) Business Days (or such later date and time as the
Administrative Agent and the L/C Issuer may agree in a particular instance in their sole
discretion) prior to the proposed issuance date or date of amendment, as the case may be. In the
case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application
shall specify in form and detail reasonably satisfactory to the L/C Issuer: (A) whether such Letter
of Credit is to be a Domestic Letter of Credit or a Canadian Letter of Credit, and the proposed
issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount
thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the
documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text
of any certificate to be presented by such beneficiary in case of any drawing thereunder; (G) the
identity of the Borrower for the account of which such Letter of Credit is requested to be issued;
and (H) such other matters as the L/C Issuer may reasonably require. In the case of a request for
an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify
in form and detail reasonably satisfactory to the L/C Issuer: (A) the Letter of Credit to be
amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature
of the proposed amendment; and (D) such other matters as the L/C Issuer may require. Additionally,
the Lead Borrower or the Canadian Borrower, as applicable, shall furnish to the L/C Issuer and the
Administrative Agent and, if applicable, the Canadian Agent, such other documents and information
pertaining to such requested Letter of Credit issuance or amendment, including any Issuer
Documents, as the L/C Issuer, the Administrative Agent or the Canadian Agent may require.

               (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will confirm
with the Administrative Agent and, if applicable, the Canadian Agent (by telephone or in writing)
that the Administrative Agent and, if applicable, the Canadian Agent has received a copy of such
Letter of Credit Application from the Lead Borrower or the Canadian Borrower, as applicable, and,
if not, the L/C Issuer will provide the Administrative Agent and, if applicable, the Canadian
Agent, with a copy thereof. Unless the L/C Issuer has received written notice from any Lender, the
Administrative Agent, the Canadian Agent or any Loan Party, at least one (1) Business Day prior to
the requested date of issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Article IV shall not then be satisfied, then, subject to
the terms and conditions hereof, the

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L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the
applicable Borrower or enter into the applicable amendment, as the case may be, in each case in
accordance with the L/C Issuer’s usual and customary business practices. Immediately upon the
issuance or amendment of each Letter of Credit, each Domestic Lender or each Canadian Lender, as
applicable, shall be deemed to (without any further action), and hereby irrevocably and
unconditionally severally agrees to, purchase from the L/C Issuer, without recourse or warranty, a
risk participation in such Letter of Credit in an amount equal to the product of such Lender’s
Applicable Percentage times the Stated Amount of such Letter of Credit. Upon any change in
the Domestic Commitments or the Canadian Commitments under this Agreement, it is hereby agreed that
with respect to all L/C Obligations, there shall be an automatic adjustment to the participations
hereby created to reflect the new Applicable Percentages of the assigning and assignee Lenders.

               (iii) If the Lead Borrower on behalf of the Domestic Borrowers, or the Canadian Borrower, as
applicable, so requests in any applicable Letter of Credit Application, the L/C Issuer may, in its
sole and absolute discretion, agree to issue a Standby Letter of Credit that has automatic
extension provisions (each, an “Auto-Extension Letter of Credit”); provided that
any such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any such extension
at least once in each twelve-month period (commencing with the date of issuance of such Standby
Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the
“Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at the time
such Standby Letter of Credit is issued. Unless otherwise directed by the L/C Issuer, the Lead
Borrower or the Canadian Borrower, as applicable, shall not be required to make a specific request
to the L/C Issuer for any such extension. Once an Auto-Extension Letter of Credit has been issued,
the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit the
extension of such Standby Letter of Credit at any time to an expiry date not later than the Letter
of Credit Expiration Date; provided, however, that the L/C Issuer shall not permit
any such extension if (A) the L/C Issuer has determined that it would not be permitted, or would
have no obligation, at such time to issue such Standby Letter of Credit in its revised form (as
extended) under the terms hereof (by reason of the provisions of clauses (ii) or (iii) of
Section 2.03(a) or otherwise), or (B) it has received notice (which may be by telephone or
in writing) on or before the day that is five Business Days before the Non-Extension Notice Date
(1) from the Administrative Agent that the Required Lenders have elected not to permit such
extension or (2) from the Administrative Agent, the Canadian Agent, any Lender or the Lead Borrower
that one or more of the applicable conditions specified in Section 0 is not then satisfied,
and in each such case directing the L/C Issuer not to permit such extension.

               (iv) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C Issuer will
also deliver to the Lead Borrower and the Administrative Agent and, if applicable, the Canadian
Agent, a true and complete copy of such Letter of Credit or amendment.

          (c) Drawings and Reimbursements; Funding of Participations.

               (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under
such Letter of Credit, the L/C Issuer shall notify the Lead Borrower or the Canadian Borrower, as
applicable, and the Administrative Agent and, if applicable, the Canadian Agent, thereof;
provided, however, that any failure to give or delay in giving such notice shall
not relieve the applicable Borrower of its obligation to reimburse the L/C Issuer and the
applicable Lenders with respect to any such payment. Not later than 11:00 a.m. on the first
(1st) Business Day after the date of any payment by the L/C Issuer under a Letter of
Credit (each such date, an “Honor Date”), the applicable Borrower shall reimburse the L/C
Issuer through the Administrative Agent or the Canadian Agent, as applicable, in an aggregate
principal amount equal to the amount of such drawing. If such Borrower fails to so reimburse the
L/C Issuer by such time, the Administrative Agent or the Canadian Agent, as applicable, shall
promptly notify each Domestic Lender or each Canadian Lender, as applicable, of the Honor Date, the
amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such
Lender’s Applicable Percentage thereof. In such event, the Domestic Borrowers or the Canadian
Borrower, as

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applicable, shall be deemed to have requested a Committed Borrowing of Domestic Prime Rate
Loans or Canadian Prime Rate Loans, as applicable, to be disbursed on the Honor Date in an amount
equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in
Section 2.02 for the principal amount of Prime Rate Loans, but subject to the amount of the
unutilized portion of the Aggregate Domestic Commitments or the Aggregate Canadian Commitments, as
applicable, and the conditions set forth in Section 0 (other than the delivery of a
Committed Loan Notice). Any notice given by the L/C Issuer, the Administrative Agent or the
Canadian Agent pursuant to this Section 2.03(c)(i) may be given by telephone if immediately
confirmed in writing; provided that the lack of such an immediate confirmation shall not
affect the conclusiveness or binding effect of such notice.

               (ii) Each Lender shall upon any notice delivered pursuant to Section 2.03(c)(i) make
funds available to the Administrative Agent or the Canadian Agent, as applicable, for the account
of the L/C Issuer at the Administrative Agent’s Office or the Canadian Agent’s Office, as
applicable, in an amount equal to its Applicable Percentage of the Unreimbursed Amount not later
than 1:00 p.m. on the Business Day specified in such notice by the Administrative Agent or the
Canadian Agent, as applicable, whereupon, subject to the provisions of Section
2.03(c)(iii), each Lender that so makes funds available shall be deemed to have made a Domestic
Prime Rate Loan to the Domestic Borrowers, or a Canadian Prime Rate Loan to the Canadian Borrower,
as applicable, in such amount. The Administrative Agent or the Canadian Agent, as applicable,
shall remit the funds so received to the L/C Issuer.

               (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Committed
Borrowing of Prime Rate Loans because the conditions set forth in Section 0 cannot be
satisfied or for any other reason, the Domestic Borrowers or the Canadian Borrower, as applicable,
shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on
demand (together with interest) and shall bear interest at the Default Rate. In such event, each
Lender’s payment to the Administrative Agent for the account of the L/C Issuer pursuant to
Section 2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C
Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation
obligation under this Section 2.03.

               (iv) Until each applicable Lender funds its Committed Loan or L/C Advance pursuant to this
Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of
Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall be solely
for the account of the L/C Issuer.

               (v) Each Lender’s obligation to make Committed Loans or L/C Advances to reimburse the L/C
Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c),
shall be absolute and unconditional and shall not be affected by any circumstance, including (A)
any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the
L/C Issuer, any Borrower or any other Person for any reason whatsoever; (B) the occurrence or
continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar
to any of the foregoing; provided, however, that each Lender’s obligation to make
Committed Loans pursuant to this Section 2.03(c) is subject to the conditions set forth in
Section 0 (other than delivery of a Committed Loan Notice). No such making of an L/C
Advance shall relieve or otherwise impair the obligation of the Borrowers to reimburse the L/C
Issuer for the amount of any payment made by the L/C Issuer under any Letter of Credit, together
with interest as provided herein.

               (vi) If any Lender fails to make available to the Administrative Agent or the Canadian Agent,
as applicable, for the account of the L/C Issuer any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section 2.03(c) by the time specified in
Section 2.03(c)(ii), the L/C Issuer shall be entitled to recover from such Lender (acting
through the Administrative Agent or the Canadian Agent, as applicable), on demand, such amount with
interest thereon for the period from the date such payment is required to the date on which such
payment is immediately available to the L/C Issuer at a rate per annum equal to the greater of the
Federal Funds Rate, with respect to the Administrative Agent or payments due to the Canadian Agent
in Dollars, and the

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Bank of Canada Overnight Rate with respect to payments due to the Canadian Agent in Canadian
Dollars, and a rate determined by the L/C Issuer in accordance with banking industry rules on
interbank compensation plus any administrative, processing or similar fees customarily charged by
the L/C Issuer in connection with the foregoing. If such Lender pays such amount (with interest
and fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan included
in the relevant Committed Borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the
case may be. A certificate of the L/C Issuer submitted to any Lender (through the Administrative
Agent or the Canadian Agent, as applicable) with respect to any amounts owing under this clause
(vi) shall be conclusive absent manifest error.

          (d) Repayment of Participations.

               (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and has
received from any Lender such Lender’s L/C Advance in respect of such payment in accordance with
Section 2.03(c), if the Administrative Agent or the Canadian Agent, as applicable, receives
for the account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from the applicable Borrowers or otherwise, including proceeds
of Cash Collateral applied thereto by the Administrative Agent or the Canadian Agent, as
applicable), the Administrative Agent or the Canadian Agent, as applicable, will distribute to such
Lender its Applicable Percentage thereof (appropriately adjusted, in the case of interest payments,
to reflect the period of time during which such Lender’s L/C Advance was outstanding) in the same
funds as those received by the Administrative Agent or the Canadian Agent, as applicable.

               (ii) If any payment received by the Administrative Agent or the Canadian Agent, as applicable,
for the account of the L/C Issuer pursuant to Section 2.03(c)(i) is required to be returned
under any of the circumstances described in Section 0 (including pursuant to any settlement
entered into by the L/C Issuer in its discretion), each Domestic Lender or Canadian Lender, as
applicable, shall pay to the Administrative Agent or the Canadian Agent, as applicable, for the
account of the L/C Issuer its Applicable Percentage thereof on demand of the Administrative Agent
or the Canadian Agent, as applicable, plus interest thereon from the date of such demand to the
date such amount is returned by such Lender, at a rate per annum equal to the Federal Funds Rate,
with respect to the Administrative Agent or payments due to the Canadian Agent in Dollars, and the
Bank of Canada Overnight Rate with respect to payments due to the Canadian Agent in Canadian
Dollars, from time to time in effect. The obligations of the Lenders under this clause shall
survive the payment in full of the Obligations and the termination of this Agreement.

          (e) Obligations Absolute. The obligation of each Borrower to reimburse the L/C Issuer
for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute,
unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

               (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or any
other Loan Document;

               (ii) the existence of any claim, counterclaim, setoff, defense or other right that any
Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of such
Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be
acting), the L/C Issuer or any other Person, whether in connection with this Agreement, the
transactions contemplated hereby or by such Letter of Credit or any agreement or instrument
relating thereto, or any unrelated transaction;

               (iii) any draft, demand, certificate or other document presented under such Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of
any document required in order to make a drawing under such Letter of Credit;

               (iv) any payment by the L/C Issuer under such Letter of Credit against presentation of a draft
or certificate that does not strictly comply with the terms of such Letter of Credit; or any
payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a

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trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors,
liquidator, receiver or other representative of or successor to any beneficiary or any transferee
of such Letter of Credit, including any arising in connection with any proceeding under any Debtor
Relief Law;

               (v) any other circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including any other circumstance that might otherwise constitute a defense available to,
or a discharge of, any Borrower or any of their respective Subsidiaries; or

               (vi) the fact that any Event of Default shall have occurred and be continuing.

     The Lead Borrower or the Canadian Borrower, as applicable, shall promptly examine a copy of
each Domestic Letter of Credit or each Canadian Letter of Credit, as applicable, and each amendment
thereto that is delivered to such Person and, in the event of any claim of noncompliance with the
Lead Borrower’s or the Canadian Borrower’s, as applicable, instructions or other irregularity, the
Lead Borrower or the Canadian Borrower, as applicable, will promptly notify the L/C Issuer. The
Borrowers shall be conclusively deemed to have waived any such claim against the L/C Issuer and its
correspondents unless such notice is given as aforesaid.

          (f) Role of L/C Issuer. Each Lender and the Borrowers agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the L/C Issuer, the
Administrative Agent, the Canadian Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of the L/C Issuer shall be liable to any Lender for (i) any
action taken or omitted in connection herewith at the request or with the approval of the Lenders
or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of gross
negligence or willful misconduct; (iii) any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or relating to any
Letter of Credit or any error in interpretation of technical terms; or (iv) the due execution,
effectiveness, validity or enforceability of any document or instrument related to any Letter of
Credit or Issuer Document. The Borrowers hereby assume all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not, preclude the Borrowers’
pursuing such rights and remedies as it may have against the beneficiary or transferee at law or
under any other agreement. None of the L/C Issuer, the Administrative Agent, the Canadian Agent,
any of their respective Related Parties nor any correspondent, participant or assignee of the L/C
Issuer shall be liable or responsible for any of the matters described in clauses (i) through (v)
of Section 2.03(e); provided, however, that anything in such clauses to the
contrary notwithstanding, the Borrowers may have a claim against the L/C Issuer, and the L/C Issuer
may be liable to the Borrowers, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Borrowers which the Borrowers prove were caused
by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to
pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In
furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation, regardless of any
notice or information to the contrary (or the L/C Issuer may refuse to accept and make payment upon
such documents if such documents are not in strict compliance with the terms of such Letter of
Credit), and the L/C Issuer shall not be responsible for the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

          (g) Cash Collateral. Upon the written request of the Administrative Agent or the
Canadian Agent, as applicable, if, as of the Letter of Credit Expiration Date, any L/C Obligation
(other than L/C Borrowings) for any reason remains outstanding, then, the Domestic
Borrowers shall, in each case, promptly Cash Collateralize the then Outstanding Amount of all
Domestic L/C Obligations (other

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than Domestic L/C Borrowings) and the Canadian Borrower shall, in each case, promptly Cash
Collateralize the then Outstanding Amount of all Canadian L/C Obligations (other than Canadian L/C
Borrowings). Sections 2.05 and 8.02(c) set forth certain additional requirements
to deliver Cash Collateral hereunder. For purposes of this Section 2.03, Section
2.05 and Section 8.02(c), “Cash Collateralize” means to pledge and deposit into
the applicable Cash Collateral Account or deliver to the Administrative Agent or the Canadian
Agent, as applicable, for the benefit of the L/C Issuer and the Domestic Lenders or the Canadian
Lenders, as applicable, as collateral for the Domestic L/C Obligations or the Canadian L/C
Obligations, as applicable, cash or deposit account balances in an amount equal to one hundred
eight percent (108%) of the Outstanding Amount of all Domestic L/C Obligations (other than Domestic
L/C Borrowings) or the Canadian L/C Obligations (other than Canadian L/C Borrowings), as
applicable, pursuant to documentation in form and substance reasonably satisfactory to the
Administrative Agent or the Canadian Agent, as applicable, and the L/C Issuer (which documents are
hereby Consented to by the Lenders). Derivatives of such term have corresponding meanings. The
Domestic Borrowers hereby grant to the Administrative Agent (for the benefit of itself and the
other Credit Parties) a security interest in all such cash, deposit accounts and all balances in
the Cash Collateral Account established by the Domestic Loan Parties and all proceeds of the
foregoing to secure the Secured Obligations (as defined in the Security Agreement) of the Domestic
Loan Parties. The Canadian Loan Parties hereby grant to the Canadian Agent a security interest in
all such cash, deposit accounts and all balances in the Cash Collateral Account established by the
Canadian Loan Parties and all proceeds of the foregoing to secure the Canadian Liabilities. Cash
Collateral shall be maintained in blocked, interest-bearing deposit accounts at Bank of America or
Bank of America-Canada Branch, as applicable. If at any time the Administrative Agent reasonably
determines that any funds held by it as Cash Collateral are subject to any right or claim of any
Person other than the Administrative Agent (for the benefit of itself and the other Domestic Credit
Parties) and the US Term Loan Agent (subject to the Intercreditor Agreement) or that the total
amount of such funds is less than 108% of the aggregate Outstanding Amount of all Domestic L/C
Obligations (other than Domestic L/C Borrowings), the Domestic Borrowers will, forthwith upon
demand by the Administrative Agent, pay to the Administrative Agent, as additional funds to be
deposited as Cash Collateral, an amount equal to the excess of (x) such aggregate Outstanding
Amount of all Domestic L/C Obligations (other than Domestic L/C Borrowings) over (y) the total
amount of funds, if any, then held by the Administrative Agent as Cash Collateral that the
Administrative Agent reasonably determines to be free and clear of any such right and claim. If
at any time the Canadian Agent reasonably determines that any funds held by it as Cash Collateral
are subject to any right or claim of any Person other than the Canadian Agent (for the benefit of
itself and the other Canadian Credit Parties) or that the total amount of such funds is less than
108% of the aggregate Outstanding Amount of all Canadian L/C Obligations (other than Canadian L/C
Borrowings), the Canadian Borrower will, forthwith upon demand by the Canadian Agent, pay to the
Canadian Agent, as additional funds to be deposited as Cash Collateral, an amount equal to the
excess of (x) such aggregate Outstanding Amount of all Canadian L/C Obligations (other than
Canadian L/C Borrowings) over (y) the total amount of funds, if any, then held by the Canadian
Agent as Cash Collateral that the Canadian Agent reasonably determines to be free and clear of any
such right and claim. Upon the drawing of any Letter of Credit for which funds are on deposit as
Cash Collateral, such funds shall be applied, to the extent permitted under applicable Laws, to
reimburse the L/C Issuer and, to the extent not so applied, shall thereafter be applied to satisfy
other Obligations in the manner specified in Section 2.05 and Section 8.03.

          (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by the L/C Issuer
and the Lead Borrower or the Canadian Borrower, as applicable, when a Letter of Credit is issued,
(i) the rules of the ISP shall apply to each Standby Letter of Credit, and (ii) the rules of the
Uniform Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce at the time of issuance shall apply to each Commercial Letter of
Credit.

          (i) Letter of Credit Fees. The Domestic Borrowers shall pay to the Administrative
Agent for the account of the Domestic Lenders, and the Canadian Borrower shall pay to the Canadian
Agent, for the account of the Canadian Lenders, as applicable, each in accordance with its
Applicable

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Percentage, a Letter of Credit fee (the “Letter of Credit Fee”) for (i) in the case of
the Letter of Credit Fee payable by the Domestic Borrowers, each Domestic Letter of Credit equal to
the Applicable Rate multiplied by the daily Stated Amount under each such Domestic Letter
of Credit (whether or not such maximum amount is then in effect under such Domestic Letter of
Credit) and (ii) in the case of the Letter of Credit Fee payable by the Canadian Borrower, each
Canadian Letter of Credit equal to the Applicable Rate multiplied by the daily Stated
Amount under each such Canadian Letter of Credit (whether or not such maximum amount is then in
effect under such Canadian Letter of Credit). For purposes of computing the daily amount available
to be drawn under any Letter of Credit, the amount of the Letter of Credit shall be determined in
accordance with Section 0. Letter of Credit Fees shall be (i) due and payable on the last
Business Day of each calendar quarter, commencing with the first such date to occur after the
issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on
demand, and (ii) computed on a quarterly basis in arrears. If there is any change in the
Applicable Rate during any quarter, the daily amount available to be drawn under each Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for each period during
such quarter that such Applicable Rate was in effect. Notwithstanding anything to the contrary
contained herein, while any Event of Default exists, Administrative Agent may, and upon the request
of the Required Lenders shall, notify the Lead Borrower that all Letter of Credit Fees shall accrue
at the Default Rate and thereafter such Letter of Credit Fees shall accrue at the Default Rate to
the fullest extent permitted by applicable Law so long as such Event of Default is continuing.

          (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The
Domestic Borrowers and the Canadian Borrower, as applicable, shall pay directly to the L/C Issuer
for its own account a fronting fee (the “Fronting Fee”) (i) with respect to each Commercial
Letter of Credit, at a rate equal to 0.125% per annum, computed on the amount of such Letter of
Credit, and payable on a quarterly basis in arrears, and (ii) with respect to each Standby Letter
of Credit, at a rate equal to 0.125% per annum, computed on the daily amount available to be drawn
under such Letter of Credit and payable on a quarterly basis in arrears. Such Fronting Fees shall
be due and payable on the last Business Day of each calendar quarter, commencing with the first
such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration
Date and thereafter on demand. For purposes of computing the daily amount available to be drawn
under any Letter of Credit, the amount of the Letter of Credit shall be determined in accordance
with Section 0. In addition, the Domestic Borrowers shall pay directly to the L/C Issuer
for its own account the customary issuance, presentation, amendment and other processing fees, and
other standard costs and charges, of the L/C Issuer relating to Domestic Letters of Credit as from
time to time in effect. In addition, the Canadian Borrower shall pay directly to the L/C Issuer
for its own account the customary issuance, presentation, amendment and other processing fees, and
other standard costs and charges, of the L/C Issuer relating to Canadian Letters of Credit as from
time to time in effect. Such customary fees and standard costs and charges are due and payable on
demand and are nonrefundable.

          (k) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

     2.04 Swing Line Loans.

          (a) The Swing Line. Subject to the terms and conditions set forth herein, the Swing
Line Lender agrees, in reliance upon the agreements of the other Lenders set forth in this
Section 2.04, to from time to time on any Business Day during the Availability Period, make
loans (each such loan, a “Swing Line Loan”) (i) to the Domestic Borrowers in an aggregate
principal amount not to exceed at any time outstanding the amount of the Domestic Swing Line
Sublimit, notwithstanding the fact that the Outstanding Amount of such Swing Line Loans made to the
Domestic Borrowers, when aggregated with the Applicable Percentage of the Outstanding Amount of
Committed Domestic Loans and Domestic L/C Obligations of the Lender acting as Swing Line Lender,
may exceed the amount of such Lender’s Domestic Commitment; provided, however, that
after giving effect to any Swing Line Loan made to the Domestic Borrowers, (x) the Total Domestic
Outstandings shall not exceed the Domestic Loan Cap, and

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(y) the aggregate Outstanding Amount of the Committed Domestic Loans of any Domestic Lender at
such time, plus (without duplication) such Lender’s Applicable Percentage of the
Outstanding Amount of all Domestic L/C Obligations at such time, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all Swing Line Loans made to the Domestic
Borrowers at such time shall not exceed such Lender’s Domestic Commitment; and (ii) to the Canadian
Borrower in an aggregate principal amount not to exceed at any time outstanding the amount of the
Canadian Swing Line Sublimit, notwithstanding the fact that the Outstanding Amount of such Swing
Line Loans made to the Canadian Borrower, when aggregated with the Applicable Percentage of the
Outstanding Amount of Committed Canadian Loans and Canadian L/C Obligations of the Lender acting as
Swing Line Lender, may exceed the amount of such Lender’s Canadian Commitment; provided,
however, that after giving effect to any Swing Line Loan made to the Canadian Borrower, (x)
the Total Canadian Outstandings shall not exceed the Canadian Loan Cap, and (y) the aggregate
Outstanding Amount of the Committed Canadian Loans of any Canadian Lender at such time,
plus (without duplication) such Lender’s Applicable Percentage of the Outstanding Amount of
all Canadian L/C Obligations at such time, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all Swing Line Loans made to the Canadian Borrower at such time shall not
exceed such Lender’s Canadian Commitment. No Borrower shall use the proceeds of any Swing Line
Loan to refinance any outstanding Swing Line Loan, and the Swing Line Lender shall not be obligated
to make any Swing Line Loan at any time when any Lender is at such time a Defaulting Lender or
Deteriorating Lender hereunder, unless the Swing Line Lender has entered into satisfactory
arrangements with the applicable Borrower or such Lender to eliminate the Swing Line Lender’s risk
with respect to such Lender. Within the foregoing limits, and subject to the other terms and
conditions hereof, the Borrowers may borrow under this Section 2.04, prepay under
Section 2.05, and reborrow under this Section 2.04. Each Swing Line Loan shall
bear interest only at a rate based on the Prime Rate or the Canadian Prime Rate, as applicable.
Immediately upon the making of a Swing Line Loan to the Domestic Borrowers, each Domestic Lender
shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing
Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such
Lender’s Applicable Percentage times the amount of such Swing Line Loan made to the
Domestic Borrowers. Immediately upon the making of a Swing Line Loan to the Canadian Borrower,
each Canadian Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal
to the product of such Lender’s Applicable Percentage times the amount of such Swing Line
Loan made to the Canadian Borrower. The Swing Line Lender shall have all of the benefits and
immunities (A) provided to the Administrative Agent in Article IX with respect to any acts
taken or omissions suffered by the Swing Line Lender in connection with Swing Line Loans made by it
or proposed to be made by it as if the term “Administrative Agent” as used in Article IX
included the Swing Line Lender with respect to such acts or omissions, and (B) as additionally
provided herein with respect to the Swing Line Lender.

          (b) Swing Line Borrowing Procedures. Each Swing Line Borrowing shall be made upon the
irrevocable notice of the Lead Borrower or the Parent on behalf of the Domestic Borrowers or the
Parent on behalf of the Canadian Borrower or the Canadian Borrower, as applicable, to the Swing
Line Lender and the Administrative Agent or the Canadian Agent, as applicable, which may be given
by telephone. Each such notice must be received by the Swing Line Lender and the Administrative
Agent or the Canadian Agent, as applicable, not later than 1:00 p.m. on the requested borrowing
date, and shall specify (i) the amount to be borrowed, which shall be a minimum of $100,000 or
CD$100,000, as applicable, and (ii) the requested borrowing date, which shall be a Business Day.
Each such telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the
Administrative Agent or the Canadian Agent, as applicable, of a written Swing Line Loan Notice,
appropriately completed and signed by a Responsible Officer of the Lead Borrower, the Parent or the
Canadian Borrower, as applicable. Promptly after receipt by the Swing Line Lender of any
telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent
or the Canadian Agent, as applicable (by telephone or in writing) that the Administrative Agent or
the Canadian Agent, as applicable, has also received such Swing Line Loan Notice and, if not, the
Swing Line Lender will notify the Administrative

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Agent or the Canadian Agent, as applicable (by telephone or in writing) of the contents
thereof. Unless the Swing Line Lender has received notice (by telephone or in writing) from the
Administrative Agent or the Canadian Agent at the request of the Required Lenders prior to 2:00
p.m. on the date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to
make such Swing Line Loan as a result of the limitations set forth in the proviso in clause (i) or
clause (ii) to the first sentence of Section 2.04(a), or (B) that one or more of the
applicable conditions specified in Article IV is not then satisfied, then, subject to the
terms and conditions hereof, the Swing Line Lender may, in its discretion, not later than 3:00 p.m.
on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line
Loan available to the Domestic Borrowers or the Canadian Borrower, as applicable, at its office by
crediting the account of the Lead Borrower or such other account as directed by the Parent or the
applicable Borrower, as applicable, on the books of the Swing Line Lender in immediately available
funds.

          (c) Refinancing of Swing Line Loans.

               (i) The Swing Line Lender, at any time in its sole and absolute discretion, may request, on
behalf of the Domestic Borrowers or the Canadian Borrower, as applicable (which hereby irrevocably
authorize the Swing Line Lender to so request on their behalf), that each Domestic Lender or each
Canadian Lender, as applicable, make a Prime Rate Loan in an amount equal to such Lender’s
Applicable Percentage of the amount of Swing Line Loans then outstanding to the Domestic Borrowers
or the Canadian Borrower, as applicable; provided that the Swing Line Lender shall settle the Swing
Line Loans with the Lenders weekly in accordance with Section 2.12(a). Such request shall
be made in writing (which written request shall be deemed to be a Committed Loan Notice for
purposes hereof) and in accordance with the requirements of Section 2.02, without regard to
the minimum and multiples specified therein for the principal amount of Prime Rate Loans, but
subject to the unutilized portion of the Aggregate Domestic Commitments or the Aggregate Canadian
Commitments, as applicable, and the conditions set forth in Section 0. The Swing Line
Lender shall furnish the Lead Borrower or the Canadian Borrower, as applicable, with a copy of the
applicable Committed Loan Notice promptly after delivering such notice to the Administrative Agent
or the Canadian Agent, as applicable. Each Domestic Lender or each Canadian Lender, as applicable,
shall make an amount equal to its Applicable Percentage of the amount specified in such Committed
Loan Notice available to the Administrative Agent or the Canadian Agent, as applicable, in
immediately available funds for the account of the Swing Line Lender at the Administrative Agent’s
Office or the Canadian Agent’s Office, as applicable, not later than 1:00 p.m. on the day specified
in such Committed Loan Notice, whereupon, subject to Section 2.04(c)(ii), each Domestic
Lender or each Canadian Lender, as applicable, that so makes funds available shall be deemed to
have made a Domestic Prime Rate Loan to the Domestic Borrowers or a Canadian Prime Rate Loan to the
Canadian Borrower, as applicable, in such amount. The Administrative Agent or the Canadian Agent,
as applicable, shall remit the funds so received to the Swing Line Lender.

               (ii) If for any reason any Swing Line Loan cannot be refinanced by such a Committed Borrowing
in accordance with Section 2.04(c)(i), the request for Prime Rate Loans submitted by the
Swing Line Lender as set forth herein shall be deemed to be a request by the Swing Line Lender that
each of the applicable Lenders fund its risk participation in the relevant Swing Line Loan and each
such Lender’s payment to the Administrative Agent or the Canadian Agent, as applicable, for the
account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed payment in
respect of such participation.

               (iii) If any Lender fails to make available to the Administrative Agent or the Canadian Agent,
as applicable, for the account of the Swing Line Lender any amount required to be paid by such
Lender pursuant to the foregoing provisions of this Section 2.04(c) by the time specified
in Section 2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Lender
(acting through the Administrative Agent or the Canadian Agent, as applicable), on demand, such
amount with interest thereon for the period from the date such payment is required to the date on
which such payment is immediately available to the Swing Line Lender at a rate per annum equal to
the greater of the Federal

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Funds Rate, with respect to the Administrative Agent or payments due to the Canadian Agent in
Dollars, and the Bank of Canada Overnight Rate with respect to payments due to the Canadian Agent
in Canadian Dollars, and a rate determined by the Swing Line Lender in accordance with banking
industry rules on interbank compensation plus any administrative, processing or similar fees
customarily charged by the Swing Line Lender in connection with the foregoing. If such Lender pays
such amount (with interest and fees as aforesaid), the amount so paid shall constitute such
Lender’s Committed Loan included in the relevant Committed Borrowing or funded participation in the
relevant Swing Line Loan, as the case may be. A certificate of the Swing Line Lender submitted to
any Lender (through the Administrative Agent or the Canadian Agent, as applicable) with respect to
any amounts owing under this clause (iii) shall be conclusive absent manifest error.

               (iv) Each Lender’s obligation to make Committed Loans or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section 2.04(c) shall be absolute and
unconditional and shall not be affected by any circumstance, including (A) any setoff,
counterclaim, recoupment, defense or other right which such Lender may have against the Swing Line
Lender, the Borrowers or any other Person for any reason whatsoever, (B) the occurrence or
continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar
to any of the foregoing; provided, however, that each Lender’s obligation to make
Committed Loans pursuant to this Section 2.04(c) is subject to the conditions set forth in
Section 0. No such funding of risk participations shall relieve or otherwise impair the
obligation of any Borrower to repay Swing Line Loans, together with interest as provided herein.

          (d) Repayment of Participations.

               (i) At any time after any Lender has purchased and funded a risk participation in a Swing Line
Loan, if the Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing
Line Lender will distribute to such Lender its Applicable Percentage of such payment (appropriately
adjusted, in the case of interest payments, to reflect the period of time during which such
Lender’s risk participation was funded) in the same funds as those received by the Swing Line
Lender.

               (ii) If any payment received by the Swing Line Lender in respect of principal or interest on
any Swing Line Loan made to a Domestic Borrower is required to be returned by the Swing Line Lender
under any of the circumstances described in Section 0 (including pursuant to any settlement
entered into by the Swing Line Lender in its discretion), each Domestic Lender shall pay to the
Swing Line Lender its Applicable Percentage thereof on demand of the Administrative Agent, plus
interest thereon from the date of such demand to the date such amount is returned, at a rate per
annum equal to the Federal Funds Rate. The Administrative Agent will make such demand upon the
request of the Swing Line Lender. The obligations of the Domestic Lenders under this clause shall
survive the payment in full of the Obligations and the termination of this Agreement.

               (iii) If any payment received by the Swing Line Lender in respect of principal or interest on
any Swing Line Loan made to the Canadian Borrower is required to be returned by the Swing Line
Lender under any of the circumstances described in Section 0 (including pursuant to any
settlement entered into by the Swing Line Lender in its discretion), each Canadian Lender shall pay
to the Swing Line Lender its Applicable Percentage thereof on demand of the Canadian Agent, plus
interest thereon from the date of such demand to the date such amount is returned, at a rate per
annum equal to the Bank of Canada Overnight Rate with respect to payments due to the Canadian Agent
in Canadian Dollars and the Federal Funds Rate with respect to payments due to the Canadian Agent
in Dollars. The Canadian Agent will make such demand upon the request of the Swing Line Lender.
The obligations of the Canadian Lenders under this clause shall survive the payment in full of the
Canadian Liabilities and the termination of this Agreement.

          (e) Interest for Account of Swing Line Lender. The Swing Line Lender shall be
responsible for invoicing the Borrowers for interest on the Swing Line Loans. Until each Lender
funds its Prime Rate Loan or risk participation pursuant to this Section 2.04 to refinance
such Lender’s Applicable

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Percentage of any Swing Line Loan, interest in respect of such Applicable Percentage shall be
solely for the account of the Swing Line Lender.

          (f) Payments Directly to Swing Line Lender. The Borrowers shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender at the
office specified by the Swing Line Lender in writing to the Lead Borrower.

     2.05 Prepayments.

          (a) The Borrowers may, upon irrevocable notice from the Lead Borrower to the Administrative
Agent (with respect to Committed Loans made to Domestic Borrowers) or from the Canadian Borrower to
the Canadian Agent (with respect to Committed Loans made to the Canadian Borrower), at any time or
from time to time voluntarily prepay Committed Loans in whole or in part without premium or
penalty; provided that (i) such notice must be received by the Administrative Agent or the Canadian
Agent, as applicable, not later than 11:00 a.m. (A) three Business Days prior to any date of
prepayment of LIBO Rate Loans or BA Equivalent Loans and (B) on the date of prepayment of Prime
Rate Loans; (ii) any voluntary prepayment of LIBO Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof; (iii) any voluntary prepayment of
BA Equivalent Loans shall be in a principal amount of CD$500,000 or a whole multiple of CD$100,000
in excess thereof; and (iv) any voluntary prepayment of Prime Rate Loans shall be in a principal
amount of $500,000 or CD$500,000, as applicable, or a whole multiple of $100,000 or CD$100,000, as
applicable, in excess thereof or, in each case, if less, the entire principal amount thereof then
outstanding. Each such notice shall specify the date and amount of such prepayment and the Type(s)
of Loans to be prepaid and, if LIBO Rate Loans or BA Equivalent Loans, the Interest Period(s) of
such Loans. The Administrative Agent or the Canadian Agent, as applicable, will promptly notify
each Domestic Lender or Canadian Lender, as applicable, of its receipt of each such notice, and of
the amount of such Lender’s Applicable Percentage of such prepayment. If such notice is given by
the Lead Borrower or the Canadian Borrower, the applicable Borrowers shall make such prepayment and
the payment amount specified in such notice shall be due and payable on the date specified therein.
Any prepayment of a LIBO Rate Loan or a BA Equivalent Loan shall be accompanied by all accrued
interest on the amount prepaid, together with any additional amounts required pursuant to
Section 0. Each such prepayment shall be applied to the Committed Loans of the Lenders in
accordance with their respective Applicable Percentages.

          (b) The Borrowers may, upon irrevocable notice from the Lead Borrower (with respect to Swing
Line Loans made to the Domestic Borrowers) or the Canadian Borrower (with respect to Swing Line
Loans made to the Canadian Borrower) to the Swing Line Lender (with a copy to the Administrative
Agent or the Canadian Agent, as applicable), at any time or from time to time, voluntarily prepay
Swing Line Loans in whole or in part without premium or penalty; provided that (i) such
notice must be received by the Swing Line Lender and the Administrative Agent or the Canadian
Agent, as applicable, not later than 1:00 p.m. on the date of the prepayment, and (ii) any such
prepayment shall be in a minimum principal amount of $100,000 or CD$100,000, as applicable, or, if
less, the entire principal amount thereof then outstanding. Each such notice shall specify the
date and amount of such prepayment. If such notice is given, the Domestic Borrowers or the
Canadian Borrower, as applicable, shall make such prepayment and the payment amount specified in
such notice shall be due and payable on the date specified therein.

          (c) If for any reason the Total Domestic Outstandings at any time exceed the Domestic Loan Cap
as then in effect, the Domestic Borrowers shall immediately prepay Committed Domestic Loans, Swing
Line Loans made to the Domestic Borrowers and Domestic L/C Borrowings and/or Cash Collateralize the
Domestic L/C Obligations (other than Domestic L/C Borrowings) in an aggregate amount equal to such
excess; provided, however, that the Domestic Borrowers shall not be required to
Cash Collateralize the Domestic L/C Obligations pursuant to this Section 2.05(c) unless
after the prepayment in full of the Domestic Loans the Total Domestic Outstandings exceed the
lesser of the Aggregate Domestic Commitments or the Domestic Borrowing Base, each as then in
effect.

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          (d) If for any reason the Total Canadian Outstandings at any time exceed the Canadian Loan Cap
as then in effect, the Canadian Borrower shall immediately prepay Committed Canadian Loans, Swing
Line Loans made to the Canadian Borrower and Canadian L/C Borrowings and/or Cash Collateralize the
Canadian L/C Obligations (other than Canadian L/C Borrowings) in an aggregate amount equal to such
excess; provided, however, that the Canadian Borrower shall not be required to Cash
Collateralize the Canadian L/C Obligations pursuant to this Section 2.05(d) unless after
the prepayment in full of the Canadian Loans the Total Canadian Outstandings exceed the lesser of
the Aggregate Canadian Commitments or the Canadian Borrowing Base, each as then in effect.

          (e) The Borrowers shall prepay the Loans in accordance with the provisions of Section
6.07 hereof.

          (f) The Domestic Borrowers shall prepay the Domestic Loans in an amount equal to the Net
Proceeds received by a Domestic Loan Party on account of a Prepayment Event in the event that a
Cash Dominion Event then exists. The Canadian Borrower shall prepay the Canadian Loans in an
amount equal to the Net Proceeds received by a Canadian Loan Party on account of a Prepayment Event
in the event that a Cash Dominion Event then exists. Nothing in this Section 2.05(f) shall
be construed to constitute any Agent’s or any Lender’s consent to any Prepayment Event that is not
permitted by other provisions of this Agreement or the other Loan Documents.

          (g) Prepayments made pursuant to (i) Section 2.05(c), (ii) to the extent representing
funds on deposit in the Domestic Concentration Account, Section 2.05(e) and (iii) to the
extent the Net Proceeds received by a Domestic Loan Party from a Prepayment Event relating to a
Domestic Loan Party, Section 2.05(f), first, shall be applied ratably to the
Domestic L/C Borrowings and the Swing Line Loans made to the Domestic Borrowers, second,
shall be applied ratably to the outstanding Committed Domestic Loans, and third, the amount
remaining, if any, after the prepayment in full of all Domestic L/C Borrowings, Swing Line Loans
made to the Domestic Borrowers and Committed Domestic Loans outstanding at such time may be
retained by (or shall be returned to) the Domestic Borrowers for use in a manner not prohibited by
this Agreement.

          (h) Prepayments made pursuant to (i) Section 2.05(d), (ii) to the extent representing
funds on deposit in the Canadian Concentration Account, Section 2.05(e) and (iii) to the
extent the Net Proceeds received a Canadian Loan Party from a Prepayment Event relating to a
Canadian Loan Party, Section 2.05(f), first, shall be applied ratably to the
Canadian L/C Borrowings and the Swing Line Loans made to the Canadian Borrower, second,
shall be applied ratably to the outstanding Committed Canadian Loans, and third the amount
remaining, if any, after the prepayment in full of all Canadian L/C Borrowings, Swing Line Loans
made to the Canadian Borrower and Committed Canadian Loans outstanding at such time may be retained
by (or shall be returned to) the Canadian Borrower for use in a manner not prohibited by this
Agreement.

     2.06 Termination or Reduction of Commitments.

          (a) The Domestic Borrowers may, upon irrevocable notice from the Lead Borrower to the
Administrative Agent, terminate the Aggregate Domestic Commitments, the Domestic Letter of Credit
Sublimit or the Domestic Swing Line Sublimit or from time to time permanently reduce in part the
Aggregate Domestic Commitments, the Domestic Letter of Credit Sublimit or the Domestic Swing Line
Sublimit; provided that (i) any such notice shall be received by the Administrative Agent
not later than 11:00 a.m. three (3) Business Days prior to the date of termination or reduction,
(ii) any such partial reduction shall be in an aggregate amount of $10,000,000 or any whole
multiple of $1,000,000 in excess thereof and (iii) the Domestic Borrowers shall not reduce (A) the
Aggregate Domestic Commitments if, after giving effect thereto and to any concurrent prepayments
hereunder, the Total Domestic Outstandings would exceed the Aggregate Domestic Commitments, (B) the
Domestic Letter of Credit Sublimit if, after giving effect thereto, the Outstanding Amount of
Domestic L/C Obligations (other than Domestic L/C Borrowings) not fully Cash Collateralized
hereunder would exceed the Domestic Letter of Credit Sublimit, and (C) the Domestic Swing Line
Sublimit if, after giving effect thereto, and to any concurrent

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payments hereunder, the Outstanding Amount of Swing Line Loans made to the Domestic Borrowers
hereunder would exceed the Domestic Swing Line Sublimit.

          (b) The Canadian Borrower may, upon irrevocable notice from the Canadian Borrower to the
Canadian Agent, terminate the Aggregate Canadian Commitments, the Canadian Letter of Credit
Sublimit or the Canadian Swing Line Sublimit or from time to time permanently reduce in part the
Aggregate Canadian Commitments, the Canadian Letter of Credit Sublimit or the Canadian Swing Line
Sublimit; provided that (i) any such notice shall be received by the Canadian Agent not
later than 11:00 a.m. (Toronto time) three (3) Business Days prior to the date of termination or
reduction, (ii) any such partial reduction shall be in an aggregate amount of $2,000,000 or any
whole multiple of $1,000,000 in excess thereof and (iii) the Canadian Borrower shall not reduce (A)
the Aggregate Canadian Commitments if, after giving effect thereto and to any concurrent
prepayments hereunder, the Total Canadian Outstandings would exceed the Aggregate Canadian
Commitments, (B) the Canadian Letter of Credit Sublimit if, after giving effect thereto, the
Outstanding Amount of Canadian L/C Obligations (other than Canadian L/C Borrowings) not fully Cash
Collateralized hereunder would exceed the Canadian Letter of Credit Sublimit, and (C) the Canadian
Swing Line Sublimit if, after giving effect thereto, and to any concurrent payments hereunder, the
Outstanding Amount of Swing Line Loans made to the Canadian Borrower hereunder would exceed the
Canadian Swing Line Sublimit.

          (c) If, after giving effect to any reduction of the Aggregate Domestic Commitments, the
Domestic Letter of Credit Sublimit or the Domestic Swing Line Sublimit exceeds the amount of the
Aggregate Domestic Commitments, such Domestic Letter of Credit Sublimit or Domestic Swing Line
Sublimit shall be automatically reduced by the amount of such excess.

          (d) If, after giving effect to any reduction of the Aggregate Canadian Commitments, the
Canadian Letter of Credit Sublimit or the Canadian Swing Line Sublimit exceeds the amount of the
Aggregate Canadian Commitments, such Canadian Letter of Credit Sublimit or Canadian Swing Line
Sublimit shall be automatically reduced by the amount of such excess.

          (e) The Administrative Agent or the Canadian Agent, as applicable, will promptly notify the
Domestic Lenders or the Canadian Lenders, as applicable, of any termination or reduction made
pursuant to this Section 2.06. Upon any reduction of the Aggregate Domestic Commitments,
the Domestic Commitment of each Domestic Lender shall be reduced by such Domestic Lender’s
Applicable Percentage of such reduction amount. Upon any reduction of the Aggregate Canadian
Commitments, the Canadian Commitment of each Canadian Lender shall be reduced by such Canadian
Lender’s Applicable Percentage of such reduction amount. All fees (including, without limitation,
Commitment Fees and Letter of Credit Fees) and interest in respect of the Aggregate Total
Commitments accrued until the effective date of any termination of the Aggregate Total Commitments
shall be paid on the effective date of such termination.

     2.07 Repayment of Loans.

          (a) The Domestic Borrowers shall repay to the Administrative Agent, for the account of the
Domestic Lenders, on the Termination Date the aggregate principal amount of Committed Domestic
Loans outstanding on such date. To the extent not previously paid, the Domestic Borrowers shall
repay the outstanding balance of the Swing Line Loans made to the Domestic Borrowers on the
Termination Date.

          (b) The Canadian Borrower shall repay to the Canadian Agent, for the account of the Canadian
Lenders, on the Termination Date the aggregate principal amount of Committed Canadian Loans
outstanding on such date. To the extent not previously paid, the Canadian Borrower shall repay the
outstanding balance of the Swing Line Loans made to the Canadian Borrower on the Termination Date.

     2.08 Interest.

          (a) Subject to the provisions of Section 2.08(b) below, (i) each LIBO Rate Loan shall
bear interest on the outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the LIBO Rate for such Interest Period plus the Applicable Margin; (ii) each
BA Equivalent Loan

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shall bear interest on the outstanding principal amount thereof for each Interest Period at a
rate per annum equal to the BA Rate for such Interest Period plus the Applicable Margin;
(iii) each Domestic Prime Rate Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Prime Rate plus the
Applicable Margin; (iv) each Canadian Prime Rate Loan shall bear interest on the outstanding
principal amount thereof from the applicable borrowing date at a rate per annum equal to the
Canadian Prime Rate plus the Applicable Margin; (v) each Swing Line Loan made to the
Domestic Borrowers shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Prime Rate plus the Applicable
Margin; and (vi) each Swing Line Loan made to the Canadian Borrower shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal
to the Canadian Prime Rate plus the Applicable Margin.

          (b) (i) If any amount payable under any Loan Document is not paid when due (after giving
effect to any applicable grace periods), whether at stated maturity, by acceleration or otherwise,
such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable Laws.

               (ii) If any other Event of Default exists, then the Administrative Agent may, and upon the
request of the Required Lenders shall, notify the Lead Borrower that all outstanding Obligations
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate and thereafter such Loans and L/C Obligations shall bear interest at the Default Rate
to the fullest extent permitted by applicable Laws for so long as such or any other Event of
Default is continuing.

               (iii) Accrued and unpaid interest on past due amounts (including interest on past due interest
to the fullest extent permitted by applicable Laws) shall be due and payable upon demand.

          (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall be
due and payable in accordance with the terms hereof before and after judgment, and before and after
the commencement of any proceeding under any Debtor Relief Law.

     Fees. In addition to certain fees described in subsections (i) and (j) of Section
2.03:

          (d) Commitment Fee.

          (i) The Domestic Borrowers shall pay to the Administrative Agent, for the account of
each Domestic Lender in accordance with its Applicable Percentage, a commitment fee (the
“Domestic Commitment Fee”) based upon the average daily Total Domestic Outstandings
(excluding the principal amount of Swing Line Loans made to the Domestic Borrowers) equal to
the percentages set forth in the grid below times the actual daily amount by which the
Aggregate Domestic Commitments exceed the sum of (i) the Outstanding Amount of the Domestic
Loans and (ii) the Outstanding Amount of the Domestic L/C Obligations.

	 	 	 	 	 
	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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The Domestic Commitment Fee shall accrue at all times during the Availability Period,
including at any time during which one or more of the conditions in Article IV is
not met, and shall be due
and payable quarterly in arrears on the last Business Day of each calendar quarter,
commencing with the first such date to occur after the Closing Date, and on the last day of
the Availability Period. The Domestic Commitment Fee, expressed as a percentage, shall be
calculated on the Closing Date and thereafter, the Domestic Commitment Fee shall be
calculated on each Commitment Fee Adjustment Date for the most recent calendar quarter
immediately preceding such Commitment Fee Adjustment Date.

     (ii) The Canadian Borrower shall pay to the Canadian Agent, for the account of each
Canadian Lender in accordance with its Applicable Percentage, a commitment fee (the
“Canadian Commitment Fee”) based upon the average daily Total Canadian Outstandings
(excluding the principal amount of Swing Line Loans made to the Canadian Borrower) equal to
the percentages set forth in the grid below times the actual daily amount by which the
Aggregate Canadian Commitments exceed the sum of (i) the Outstanding Amount of the Canadian
Loans and (ii) the Outstanding Amount of the Canadian L/C Obligations.

	 	 	 	 	 
	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	%

The Canadian Commitment Fee shall accrue at all times during the Availability Period,
including at any time during which one or more of the conditions in Article IV is
not met, and shall be due and payable quarterly in arrears on the last Business Day of each
calendar quarter, commencing with the first such date to occur after the Closing Date, and
on the last day of the Availability Period. The Canadian Commitment Fee, expressed as a
percentage, shall be calculated on the Closing Date and thereafter, the Canadian Commitment
Fee shall be calculated on each Commitment Fee Adjustment Date for the most recent calendar
quarter immediately preceding such Commitment Fee Adjustment Date.

          (e) Other Fees. The Borrowers shall pay to the Agents, the Canadian Agent and the
Arrangers for their own respective accounts fees in the amounts and at the times specified in the
Fee Letter. Such fees shall be fully earned when paid and shall not be refundable for any reason
whatsoever.

     2.09 Computation of Interest and Fees.

          (a) All computations of interest for Prime Rate Loans and BA Equivalent Loans shall be made on
the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other
computations of fees and interest shall be made on the basis of a 360-day year and actual days
elapsed (which results in more fees or interest, as applicable, being paid than if computed on the
basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is
made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day on which it is made
shall, subject to Section 2.11(a), bear

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interest for one day. Each determination by the Administrative Agent or the Canadian Agent, as
applicable, of an interest rate or fee hereunder shall be conclusive and binding for all purposes,
absent manifest error.

          (b) For the purposes of this Agreement, whenever interest to be paid hereunder is to be
calculated on the basis of a year of three hundred and sixty (360) days or any other period of time
that is less than a calendar year, the yearly rate of interest which the rate determined pursuant
to such calculation is equivalent is the rate so determined multiplied by the actual number of days
in the calendar year in which the same is to be ascertained and divided by either three hundred and
sixty (360) or such other period of time, as the case may be.

          (c) For the purposes of the Interest Act (Canada) and disclosure thereunder, whenever any
interest or any fee to be paid hereunder or in connection herewith is to be calculated on the basis
of a 360-day or any other period of time that is less than a calendar year, the yearly rate of
interest to which the rate used in such calculation is equivalent is the rate so used multiplied by
the actual number of days in the calendar year in which the same is to be ascertained and divided
by three hundred and sixty (360) or the number of days in such period, as applicable. The rates of
interest under this Agreement are nominal rates, and not effective rates or yields. The principle
of deemed reinvestment of interest does not apply to any interest calculation under this Agreement.

     2.10 Evidence of Debt.

          (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or
records maintained by the Administrative Agent (with respect to Domestic Credit Extensions) and the
Canadian Agent (with respect to Canadian Credit Extensions) (each, the “Loan Account”) in
the ordinary course of business. In addition, each Lender may record in such Lender’s internal
records, an appropriate notation evidencing the date and amount of each Loan from such Lender, each
payment and prepayment of principal of any such Loan, and each payment of interest, fees and other
amounts due in connection with the Obligations due to such Lender. The accounts or records
maintained by the Administrative Agent, the Canadian Agent and each Lender shall be conclusive
absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrowers
and the interest and payments thereon. Any failure to so record or any error in doing so shall
not, however, limit or otherwise affect the obligation of the Borrowers hereunder to pay any amount
owing with respect to the Obligations. In the event of any conflict between the accounts and
records maintained by any Lender and the accounts and records of the Administrative Agent or the
Canadian Agent, as applicable, in respect of such matters, the accounts and records of the
Administrative Agent or the Canadian Agent, as applicable, shall control in the absence of manifest
error. Upon the request of any Domestic Lender made through the Administrative Agent (who shall
notify the Domestic Borrowers), or any Canadian Lender through the Canadian Agent (who shall notify
the Canadian Borrower), the applicable Borrowers shall execute and deliver to such Lender (through
the Administrative Agent or the Canadian Agent, as applicable) a Note, which shall evidence such
Lender’s Loans in addition to such accounts or records. Each Lender may attach schedules to its
Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and
payments with respect thereto. Any failure to so attach or endorse, or any error in doing so,
shall not, however, limit or otherwise affect the obligation of the Borrowers hereunder to pay any
amount owing with respect to the Obligations or the Canadian Liabilities, as applicable. Upon
receipt of an affidavit and indemnity of a Lender as to the loss, theft, destruction or mutilation
of such Lender’s Note and upon cancellation of such Note, the applicable Borrowers will issue, in
lieu thereof, a replacement Note in favor of such Lender, in the same principal amount thereof and
otherwise of like tenor (subject to adjustment in the case of any assignments of such Lender’s
Commitments).

          (b) In addition to the accounts and records referred to in Section 2.10(a), each
Lender and the Administrative Agent or, as applicable, the Canadian Agent, shall maintain in
accordance with its usual practice accounts or records evidencing the purchases and sales by such
Lender of participations in Letters of Credit and Swing Line Loans. In the event of any conflict
between the accounts and records maintained by the Administrative Agent or the Canadian Agent and
the accounts

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and records of any Lender in respect of such matters, the accounts and records of the
Administrative Agent or the Canadian Agent, as applicable, shall control in the absence of manifest
error.

     2.11 Payments Generally; Administrative Agent’s Clawback.

          (a) General. All payments to be made by the Borrowers shall be made without condition
or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by the Borrowers hereunder shall be made, as applicable, to the
Administrative Agent, for the account of the respective Domestic Lenders to which such payment is
owed, at the Administrative Agent’s Office in Dollars and to the Canadian Agent, for the account of
the respective Canadian Lenders to which such payment is owed, at the Canadian Agent’s Office, in
each case, in immediately available funds not later than 2:00 p.m. on the date specified herein.
The Administrative Agent or the Canadian Agent, as applicable, will promptly distribute to each
Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in
like funds as received by wire transfer to such Lender’s Lending Office in accordance with the
provisions of Section 2.12. All payments received by the Administrative Agent or the
Canadian Agent after 2:00 p.m. shall, at the option of the Administrative Agent or the Canadian
Agent, as applicable, be deemed received on the next succeeding Business Day and any applicable
interest or fee shall continue to accrue. If any payment (other than with respect to payment of a
LIBO Loan or a BA Equivalent Loan) to be made by the Borrowers shall come due on a day other than a
Business Day, payment shall be made on the next following Business Day, and such extension of time
shall be reflected in computing interest or fees, as the case may be.

          (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent or the Canadian Agent, as applicable, shall have received notice from a Lender
prior to the proposed date of any Committed Borrowing of LIBO Rate Loans or BA Equivalent Loans, as
applicable (or in the case of any Committed Borrowing of Prime Rate Loans, prior to 1:00 p.m. on
the date of such Committed Borrowing) that such Lender will not make available to the
Administrative Agent or the Canadian Agent, as applicable, such Lender’s share of such Committed
Borrowing, the Administrative Agent or the Canadian Agent, as applicable, may assume that such
Lender has made such share available on such date in accordance with Section 2.02 (or in
the case of a Committed Borrowing of Prime Rate Loans, that such Lender has made such share
available in accordance with and at the time required by Section 2.02) and may, in reliance
upon such assumption, make available to the applicable Borrowers a corresponding amount. In such
event, if a Lender has not in fact made its share of the applicable Committed Borrowing available
to the Administrative Agent or the Canadian Agent, as applicable, then the applicable Lender and
the Domestic Borrowers severally agree with respect to Committed Domestic Loans, and the Canadian
Borrower severally agrees with respect to Committed Canadian Loans, to pay to the Administrative
Agent or the Canadian Agent, as applicable, forthwith on demand such corresponding amount in
immediately available funds with interest thereon, for each day from and including the date such
amount is made available to such Borrowers to but excluding the date of payment to the
Administrative Agent or the Canadian Agent, as applicable, at (A) in the case of a payment to be
made by a Domestic Lender, the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation plus any
administrative processing or similar fees customarily charged by the Administrative Agent in
connection with the foregoing, (B) in the case of a payment to be made by a Canadian Lender, the
greater of the Bank of Canada Overnight Rate with respect to payments due to the Canadian Agent in
Canadian Dollars and the Federal Funds Rate with respect to payments due to the Canadian Agent in
Dollars, and a rate determined by the Canadian Agent in accordance with banking industry rules on
interbank compensation plus any administrative processing or similar fees customarily charged by
the Canadian Agent in connection with the foregoing, (C) in the case of a payment to be made by the
Domestic Borrowers, the interest rate applicable to Domestic Prime Rate Loans and (D) in the case
of a payment to be made by the Canadian Borrower, the interest rate applicable to Canadian Prime
Rate Loans. If the applicable Borrowers and such Lender shall pay such interest to the
Administrative Agent

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or the Canadian Agent, as applicable, for the same or an overlapping period, the
Administrative Agent or the Canadian Agent, as applicable, shall promptly remit to such Borrowers
the amount of such interest paid by such Borrowers for such period. If such Lender pays its share
of the applicable Committed Borrowing to the Administrative Agent or the Canadian Agent, as
applicable, then the amount so paid shall constitute such Lender’s Committed Loan included in such
Committed Borrowing. Any payment by the Borrowers shall be without prejudice to any claim the
Borrowers may have against a Lender that shall have failed to make such payment to the
Administrative Agent or the Canadian Agent, as applicable.

               (ii) Payments by Borrowers; Presumptions by Administrative Agent and Canadian Agent.
Unless the Administrative Agent or the Canadian Agent, as applicable, shall have received notice
from the Lead Borrower or the Canadian Borrower, as applicable, prior to the time at which any
payment is due to the Administrative Agent or the Canadian Agent, as applicable, for the account of
the Lenders or the L/C Issuer hereunder that the Borrowers will not make such payment, the
Administrative Agent or the Canadian Agent, as applicable, may assume that the Borrowers have made
such payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the L/C Issuer, as the case may be, the amount due. In such event, if
the Borrowers have not in fact made such payment, then each of the Lenders or the L/C Issuer, as
the case may be, severally agrees to repay to the Administrative Agent or the Canadian Agent, as
applicable, forthwith on demand the amount so distributed to such Lender or the L/C Issuer, in
immediately available funds with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to, as applicable, the
Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation, or the
Canadian Agent, the greater of the Bank of Canada Overnight Rate with respect to payments due to
the Canadian Agent in Canadian Dollars and the Federal Funds Rate with respect to payments due to
the Canadian Agent in Dollars, and a rate determined by the Canadian Agent in accordance with
banking rules on interbank compensation.

     A notice of the Administrative Agent or the Canadian Agent, as applicable, to any Lender or
the Lead Borrower with respect to any amount owing under this Section 2.11(b) shall be
conclusive, absent manifest error.

          (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the
Administrative Agent or the Canadian Agent, as applicable, funds for any Loan to be made by such
Lender as provided in the foregoing provisions of this Article II, and such funds are not
made available to the Borrowers by the Administrative Agent or the Canadian Agent, as applicable,
because the conditions to the applicable Credit Extension set forth in Article IV are not
satisfied or waived in accordance with the terms hereof (subject to the provisions of the last
paragraph of Section 0 hereof), the Administrative Agent or the Canadian Agent, as
applicable, shall promptly return such funds (in like funds as received from such Lender) to such
Lender, without interest.

          (d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make
Committed Loans, to fund participations in Letters of Credit and Swing Line Loans and to make
payments pursuant to Section 10.03(c) are several and not joint. The failure of any Lender
to make any Committed Loan, to fund any such participation or to make any payment under Section
10.03(c) on any date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the failure of any other
Lender to so make its Committed Loan, to purchase its participation or to make its payment under
Section 10.03(c).

          (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

     Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or interest on principal
of or interest on any of the Committed Loans made by it, or the participations in L/C Obligations
or in Swing

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Line Loans held by it resulting in such Lender’s receiving payment of a proportion of the
aggregate amount of such Committed Loans or participations and accrued interest thereon greater
than its pro rata share thereof as provided herein, then the Lender receiving such
greater proportion shall (a) if a Domestic Lender, notify the Administrative Agent of such fact,
and if a Canadian Lender, notify the Canadian Agent of such fact, and (b) purchase (for cash at
face value) participations in the Committed Loans and subparticipations in L/C Obligations and
Swing Line Loans of the other applicable Lenders, or make such other adjustments as shall be
equitable, so that the benefit of all such payments shall be shared by the Lenders ratably,
provided that:

          (f) if any such participations or subparticipations are purchased and all or any portion of
the payment giving rise thereto is recovered, such participations or subparticipations shall be
rescinded and the purchase price restored to the extent of such recovery, without interest; and

          (g) the provisions of this Section shall not be construed to apply to (x) any payment made by
any Loan Party pursuant to and in accordance with the express terms of this Agreement or (y) any
payment obtained by a Lender as consideration for the assignment of or sale of a participation in
any of its Committed Loans or subparticipations in L/C Obligations or Swing Line Loans to any
assignee or participant, other than to the Borrowers or any Subsidiary thereof (as to which the
provisions of this Section shall apply).

          Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so
under applicable Law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

     2.12 Settlement Amongst Lenders.

     (a) The amount of each Lender’s Applicable Percentage of outstanding Loans (including
outstanding Swing Line Loans) shall be computed weekly (or more frequently in the
Administrative Agent’s discretion) and shall be adjusted upward or downward based on all
Loans (including Swing Line Loans) and repayments of Loans (including Swing Line Loans)
received by the Administrative Agent (with respect to Domestic Loans) or the Canadian Agent
(with respect to Canadian Loans) as of 3:00 p.m. on the first Business Day (such date, the
“Settlement Date”) following the end of the period specified by the Administrative
Agent or the Canadian Agent, as applicable.

     (b) The Administrative Agent shall deliver to each of the Domestic Lenders and the
Canadian Agent shall deliver to the Canadian Lenders, promptly after a Settlement Date a
summary statement of the amount of outstanding Committed Loans and Swing Line Loans for the
period and the amount of repayments received for the period. As reflected on the summary
statement, (i) the Administrative Agent or the Canadian Agent, as applicable, shall transfer
to each Lender its Applicable Percentage of repayments, and (ii) each Lender shall transfer
to the Administrative Agent or the Canadian Agent, as applicable (as provided below) or the
Administrative Agent or the Canadian Agent, as applicable, shall transfer to each Lender,
such amounts as are necessary to insure that, after giving effect to all such transfers, the
amount of Committed Loans made by each Lender shall be equal to such Lender’s Applicable
Percentage of all Committed Loans outstanding as of such Settlement Date. If the summary
statement requires transfers to be made to the Administrative Agent or the Canadian Agent,
as applicable, by the Lenders and is received prior to 1:00 p.m. on a Business Day, such
transfers shall be made in immediately available funds no later than 3:00 p.m. that day;
and, if received after 1:00 p.m., then no later than 3:00 p.m. on the next Business Day.
The obligation of each Lender to transfer such funds is irrevocable, unconditional and
without recourse to or warranty by the Administrative Agent or the Canadian Agent, as
applicable. If and to the extent any Domestic Lender shall not

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have so made its transfer to the Administrative Agent, such Domestic Lender agrees to
pay to the Administrative Agent forthwith on demand such amount, together with interest
thereon, for each day from such date until the date such amount is paid to the
Administrative Agent equal to the greater of the Federal Funds Rate and a rate determined by
the Administrative Agent in accordance with banking industry rules on interbank compensation
plus any administrative, processing, or similar fees customarily charged by the
Administrative Agent in connection with the foregoing. If and to the extent any Canadian
Lender shall not have so made its transfer to the Canadian Agent, such Canadian Lender
agrees to pay to the Canadian Agent forthwith on demand such amount, together with interest
thereon, for each day from such date until the date such amount is paid to the Canadian
Agent equal to the greater of the greater of the Bank of Canada Overnight Rate with respect
to payments due to the Canadian Agent in Canadian Dollars and the Federal Funds Rate with
respect to payments due to the Canadian Agent in Dollars, and a rate determined by the
Canadian Agent in accordance with banking industry rules on interbank compensation plus any
administrative processing or similar fees customarily charged by the Canadian Agent in
connection with the foregoing.

     2.13 Increase in Commitments.

          (a) Request for Increase. Provided no Default then exists or would arise therefrom,
upon notice to the Administrative Agent (which shall promptly notify the Lenders), the Lead
Borrower may request an increase in the Aggregate Canadian Commitments not exceeding $10,000,000
and/or Aggregate Domestic Commitments by an amount not exceeding $50,000,000; provided that the
aggregate total amount of all Commitment Increases shall not exceed $50,000,000 (each such
increase, a “Commitment Increase”); provided that (i) any such request for a
Commitment Increase shall be in a minimum amount of $25,000,000 (or not less than $10,000,000 in
the case of the Canadian Commitments), and (ii) the Lead Borrower may make a maximum of two (2)
such requests for a Commitment Increase. At the time of sending such request for a Commitment
Increase, the Lead Borrower (in consultation with the Administrative Agent) shall specify the time
period within which each applicable Lender is requested to respond (which shall in no event be less
than ten (10) Business Days from the date of delivery of such notice to the Lenders).

          (b) Lender Elections to Increase. Each Lender shall notify the Administrative Agent
within such time period whether or not it agrees to increase its applicable Commitment and, if so,
whether by an amount equal to, greater than, or less than its Applicable Percentage of such
requested Commitment Increase (each Lender agreeing to increase its Commitment, an “Existing
Increasing Lender”). Any Lender not responding within such time period shall be deemed to have
declined to increase its Commitment.

          (c) Notification by Administrative Agent; Additional Commitment Lenders. The
Administrative Agent shall notify the Lead Borrower and each applicable Lender of the Lenders’
responses to each request made hereunder for a Commitment Increase. To achieve the full amount of
a requested Commitment Increase, to the extent that the existing applicable Lenders decline to
increase their Commitments, or decline to increase their Commitments to the amount requested by the
Lead Borrower, the Administrative Agent, in consultation with the Lead Borrower, will use its
reasonable efforts to arrange for other Eligible Assignees to become a Domestic Lender or Canadian
Lender, as applicable, hereunder and to issue commitments in an amount equal to the amount of the
increase in the Aggregate Total Commitments requested by the Lead Borrower and not accepted by the
existing applicable Lenders (and the Lead Borrower may also invite additional Eligible Assignees to
become Lenders) (each such Eligible Assignee issuing a commitment and becoming a Lender, an
“Additional Commitment Lender”), provided, however, that without the
consent of the Administrative Agent, at no time shall the Commitment of any Additional Commitment
Lender be less than $10,000,000.

          (d) Effective Date and Allocations. If the Aggregate Domestic Commitments or the
Aggregate Canadian Commitments are increased in accordance with this Section 2.13, the
Administrative

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Agent, in consultation with the Lead Borrower, shall determine the effective date (the
“Increase Effective Date”) and the final allocation of such Commitment Increase. The
Administrative Agent shall promptly notify the Lead Borrower and the Lenders of the final
allocation of such Commitment Increase and the Increase Effective Date and on the Increase
Effective Date (i) the Aggregate Domestic Commitments or Aggregate Canadian Commitments, as
applicable, and the Aggregate Total Commitments under, and for all purposes of, this Agreement
shall be increased by the aggregate amount of such Commitment Increase, and (ii) Schedule
2.01 shall be deemed modified, without further action, to reflect the revised Commitments and
Applicable Percentages of the Lenders.

          (e) Conditions to Effectiveness of Increase. As a condition precedent to such
Commitment Increase, (i) the Lead Borrower shall have delivered to the Administrative Agent a
certificate of each Loan Party dated as of the Increase Effective Date (in sufficient copies for
each Lender) signed by a Responsible Officer of such Loan Party (A) certifying and attaching the
resolutions adopted by such Loan Party approving or consenting to such Commitment Increase, and (B)
in the case of the Borrowers, certifying that, before and after giving effect to such Commitment
Increase, (1) the representations and warranties contained in Article V and the other Loan
Documents are true and correct in all material respects on and as of the Increase Effective Date,
except to the extent that such representations and warranties specifically refer to an earlier
date, in which case they are true and correct in all material respects as of such earlier date, and
except that for purposes of this Section 2.13, the representations and warranties contained
in subsections (a), (b) and (f) of Section 5.01 shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a), (b) and (c), respectively, of Section 0 (if
applicable); (ii) the Borrowers, the Administrative Agent, and any Additional Commitment Lender
shall have executed and delivered a joinder to the Loan Documents in such form as the
Administrative Agent shall reasonably require; (iii) the applicable Borrowers shall have paid such
fees and other compensation to the Existing Increasing Lenders and the Additional Commitment
Lenders as the Lead Borrower, the Administrative Agent and such Existing Increasing Lenders and
Additional Commitment Lenders shall agree; (iv) the Borrowers shall have paid such arrangement fees
to BAS and the Administrative Agent as the Lead Borrower, the Administrative Agent and BAS may
agree; (v) if reasonably requested by the Administrative Agent, the Borrowers shall deliver to the
Administrative Agent and the Lenders an opinion or opinions, in form and substance reasonably
satisfactory to the Administrative Agent, from counsel to the Borrowers and dated the Increase
Effective Date; (vi) the Borrowers, the Existing Increasing Lenders and the Additional Commitment
Lenders shall have delivered such other instruments, documents and agreements as the Administrative
Agent may reasonably have requested; and (vii) no Default exists. The Borrowers shall prepay any
Committed Domestic Loans or Committed Canadian Loans, as applicable, outstanding on the Increase
Effective Date (and pay any additional amounts required pursuant to Section 0) to the
extent necessary to keep the outstanding Committed Domestic Loans or Committed Canadian Loans, as
applicable, ratable with any revised Applicable Percentages arising from any nonratable increase in
the Commitments under this Section 2.13. Upon each increase in the Commitments pursuant to
this Section, (a) each applicable Lender immediately prior to such increase will automatically and
without further act be deemed to have assigned to each Additional Commitment Lender in respect of
such increase, and each such Additional Commitment Lender will automatically and without further
act be deemed to have assumed, a portion of such applicable Lender’s participations hereunder in
outstanding Domestic Letters of Credit or Canadian Letters of Credit, as applicable, and Swing Line
Loans made to the applicable Borrowers such that, after giving effect to each such deemed
assignment and assumption of participations, the percentage of the aggregate outstanding (i)
participations hereunder in the applicable Letters of Credit and (ii) participations hereunder in
Swing Line Loans made to the applicable Borrowers held by each applicable
 Lender (including each
such Additional Commitment Lender) will equal the percentage of the aggregate applicable
Commitments of all applicable Lenders represented by the applicable Commitment of such applicable
Lender and (b) if, on the date of such increase, there are any Committed Domestic Loans or
Committed Canadian Loans, as applicable, outstanding, such Committed Domestic Loans or Committed
Canadian Loans, as applicable, shall on or prior to the effectiveness of such Commitment Increase
be

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prepaid from the proceeds of additional Committed Domestic Loans or Committed Canadian Loans,
as applicable, made hereunder (reflecting such increase in applicable Commitments), which
prepayment shall be accompanied by accrued interest on the Committed Domestic Loans or Committed
Canadian Loans, as applicable, being prepaid and any costs incurred by any applicable Lender in
accordance with Section 0. The Administrative Agent and the Lenders hereby agree that the
minimum borrowing, pro rata borrowing and pro rata payment requirements contained elsewhere in this
Agreement shall not apply to the transactions effected pursuant to this Section.

          (f) Conflicting Provisions. This Section 2.13 shall supersede any provisions
in Sections 0 or 0 to the contrary.

     CFC Payments. Any references to Borrowers (in the context of payments, proceeds, liabilities
or Obligations), Commitments, Collateral, L/C Borrowings or Loans shall mean, in the case of and as
applied to the foregoing, with respect to any Obligations of the Domestic Borrowers, only the
Domestic Borrowers (or any of its Domestic Subsidiaries and only for their own account), the
Collateral that is property of Domestic Borrowers, or L/C Borrowings or Loans constituting
Obligations of Domestic Borrowers (or any of its Domestic Subsidiaries), so that collections
received from the Canadian Loan Parties and proceeds of the Collateral that is property of the
Canadian Loan Parties (or any other Canadian Loan Party) shall be applied solely and exclusively to
the payment of the Canadian Liabilities. All provisions contained in any Loan Document or side
letter shall be interpreted consistently with this Section 0 to the extent possible, and
where such other provisions conflict with the provisions of this Section 0, the provisions
this Section 0 shall govern.

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY;

APPOINTMENT OF LEAD BORROWER

     3.01 Taxes.

          (a) Payments Free of Taxes. Any and all payments by or on account of any obligation
of the Loan Parties hereunder or under any other Loan Document shall be made free and clear of and
without deduction or withholding for any Indemnified Taxes or Other Taxes, provided that if
a Loan Party shall be required by applicable Law to deduct or withhold, or an Agent, the Canadian
Agent or a Lender shall be required to remit, any Indemnified Taxes (including any Other Taxes)
from such payments, then (i) the sum payable shall be increased as necessary so that after making
all required deductions, withholdings or remittances (including deductions, withholdings or
remittances applicable to additional sums payable under this Section), the applicable Credit Party
receives an amount equal to the sum it would have received had no such deductions, withholdings or
remittances been made, (ii) the Loan Parties shall make such deductions or withholdings and (iii)
the Loan Parties shall timely pay the full amount deducted or withheld to the relevant Governmental
Authority in accordance with applicable Law.

          (b) Payment of Other Taxes by the Loan Parties. Without limiting or duplicating the
provisions of subsection (a) above, the Loan Parties shall timely pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable Law.

          (c) Indemnification by the Loan Parties. The Domestic Loan Parties shall indemnify
each Credit Party, and the Canadian Loan Parties shall indemnify each Canadian Credit Party, within
ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section 3.01) paid by such Credit Party, as the case may be, and any
penalties, interest and reasonable out-of-pocket expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Lead Borrower by a Lender or the L/C Issuer (with a copy to the
Administrative Agent or the Canadian Agent, as applicable), or by the Administrative Agent on its
own behalf or on behalf of a Domestic Credit Party,

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or by the Canadian Agent on its own behalf or on behalf of a Canadian Credit Party, shall be
conclusive absent manifest error.

          (d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by a Loan Party to a Governmental Authority, the Lead Borrower shall deliver
to the Administrative Agent or the Canadian Borrower shall deliver to the Canadian Agent, as
applicable, the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent or the Canadian Agent, as applicable.

          (e) Status of Lenders. Any Lender or L/C Issuer that is entitled to an exemption
from, or reduction of, withholding tax under the law of the jurisdiction in which any Loan Party is
resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to
payments hereunder or under any other Loan Document shall deliver to the Lead Borrower (with a copy
to the Administrative Agent) or the Canadian Borrower (with a copy to the Canadian Agent), as
applicable, at the time or times prescribed by applicable Law or reasonably requested by the Lead
Borrower, the Administrative Agent, the Canadian Borrower or the Canadian Agent, such properly
completed and executed documentation prescribed by applicable Law as will permit such payments to
be made without withholding or at a reduced rate of withholding. Such delivery shall be required
on the Closing Date (or, in the case of an assignee, on the date of assignment) and on or before
the date such documentation expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent documentation so delivered or as may reasonably be requested
by the Lead Borrower, the Administrative Agent, the Canadian Borrower or the Canadian Agent. In
addition, any Lender, if requested by the Lead Borrower, the Administrative Agent, the Canadian
Borrower or the Canadian Agent, shall deliver such other documentation prescribed by applicable Law
or reasonably requested by the Lead Borrower, the Administrative Agent, the Canadian Borrower or
the Canadian Agent, as will enable the Lead Borrower, the Administrative Agent, the Canadian
Borrower or the Canadian Agent, to determine whether or not such Lender is subject to backup
withholding or information reporting requirements.

     Without limiting the generality of the foregoing, in the event that any Loan Party is resident
for tax purposes in the United States, any Lender or L/C Issuer that is entitled to an exemption
from or reduction of, withholding tax shall deliver to the Lead Borrower and the Administrative
Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on
which such Foreign Lender or L/C Issuer becomes a Lender or L/C Issuer under this Agreement (and
from time to time thereafter upon the request of the Lead Borrower or the Administrative Agent, but
only if such Foreign Lender is legally entitled to do so), whichever of the following is
applicable:

          (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income tax treaty to which the United States is a party,

          (ii) duly completed copies of Internal Revenue Service Form W-8ECI,

          (iii) in the case of a Lender or L/C Issuer that is entitled to claim the benefits of
the exemption for portfolio interest under section 881(c) of the Code, (x) a certificate to
the effect that such Foreign Lender or L/C Issuer is not (A) a “bank” within the meaning of
section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Domestic Borrowers
within the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign
corporation” related to the Domestic Borrowers, as described in section 881(c)(3)(C) of the
Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN, or

          (iv) any other form prescribed by applicable Law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together with such
supplementary documentation as may be prescribed by applicable Law to permit the Lead
Borrower to determine the withholding or deduction required to be made.

     (f) Treatment of Certain Refunds. If any Credit Party determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been
indemnified by any Loan Party or with respect to which any Loan Party have paid additional amounts
pursuant to this

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Section 3.01, it shall pay to the applicable Loan Party an amount equal to such refund
(but only to the extent of indemnity payments made, or additional amounts paid, by such Loan Party
under this Section 3.01 with respect to the Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the applicable Credit Party and without interest
(other than any interest paid by the relevant Governmental Authority with respect to such refund),
provided that the Loan Parties, upon the request of the Administrative Agent or the
Canadian Agent, as applicable, such Lender or the L/C Issuer, agree to repay the amount paid over
to the Loan Parties (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the applicable Credit Party in the event such Credit Party is required
to repay such refund to such Governmental Authority. This subsection shall not be construed to
require any Credit Party to make available its tax returns (or any other information relating to
its taxes that it deems confidential) to the Loan Parties or any other Person.

          (g) Sale or Transfer. If a Lender or Participant claims exemption from, or reduction
of, withholding tax and such Lender or Participant sells, assigns, grants a participation in, or
otherwise transfers all or part of the Obligations of Loan Parties to such Lender or Participant,
such Lender or Participant agrees to notify the Administrative Agent (or, in the case of a sale of
a participation interest, the Lender granting the participation) of the percentage amount in which
it is no longer the beneficial owner of Obligations of Loan Parties to such Lender. To the extent
of such percentage amount, the Administrative Agent will treat such Lender’s or such Participant’s
documentation provided pursuant to subsections (d) or (e) of this Section 3.01 as no
longer valid. With respect to such percentage amount, such Participant or Assignee may provide new
documentation, pursuant to subsections (d) or (e) of this Section 3.01, as applicable.

     Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending
Office to make, maintain or fund LIBO Rate Loans or, in the case of Canadian Lenders only, BA
Equivalent Loans, as applicable, or to determine or charge interest rates based upon the LIBO Rate
or the BA Rate, as applicable, or any Governmental Authority has imposed material restrictions on
the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to the Lead Borrower through the
Administrative Agent, any obligation of such Lender to make or continue LIBO Rate Loans or, in the
case of Canadian Lenders only, BA Equivalent Loans, as applicable, or to convert Domestic Prime
Rate Loans to LIBO Rate Loans or Canadian Prime Rate Loans to BA Rate Loans, as applicable, shall
be suspended until such Lender notifies the Administrative Agent and the Lead Borrower that the
circumstances giving rise to such determination no longer exist. Upon receipt of such notice, the
applicable Borrowers shall, upon demand from such Lender (with a copy to the Administrative Agent),
prepay or, if applicable, convert all LIBO Rate Loans of such Lender to Domestic Prime Rate Loans
or Canadian Prime Rate Loans, as applicable, either on the last day of the Interest Period
therefor, if such Lender may lawfully continue to maintain such LIBO Rate Loans to such day, or
immediately, if such Lender may not lawfully continue to maintain such LIBO Rate Loans. Upon any
such prepayment or conversion, the applicable Borrowers shall also pay accrued interest on the
amount so prepaid or converted.

     Inability to Determine Rates. If the Required Lenders determine that for any reason in
connection with any request for a LIBO Rate Loan or a BA Equivalent Loan, or a conversion to or
continuation thereof that (a) with respect to LIBO Rate Loans only, Dollar deposits are not being
offered to banks in the London interbank market for the applicable amount and Interest Period of
such LIBO Rate Loan, (b) with respect to BA Equivalent Loans only, there is no market for Bankers
Acceptances, (c) adequate and reasonable means do not exist for determining the LIBO Rate or the BA
Rate for any requested Interest Period with respect to a proposed LIBO Rate Loan or BA Equivalent
Loan, or (d) the LIBO Rate or the BA Rate for any requested Interest Period with respect to a
proposed LIBO Rate Loan or BA Equivalent Loan does not adequately and fairly reflect the cost to
such Lenders of funding such Loan, the Administrative Agent (if with respect to LIBO Rate Loans
made to a Domestic Borrower) will promptly so notify the Lead Borrower and each Domestic Lender or
the Canadian Agent (if with respect to LIBO

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Rate Loans or BA Equivalent Loans made to the Canadian Borrower) will promptly so notify the
Canadian Borrower and each Canadian Lender. Thereafter, the obligation of the Lenders to make or
maintain LIBO Rate Loans or of the Canadian Lenders to make or maintain BA Equivalent Loans, as
applicable, shall be suspended until the Administrative Agent or the Canadian Agent, as applicable
(but in either case upon the instruction of the Required Lenders) revokes such notice. Upon
receipt of such notice, the Lead Borrower may revoke any pending request for a Committed Borrowing
of, conversion to or continuation of LIBO Rate Loans made to a Domestic Borrower or the Canadian
Borrower may revoke any pending request for a Committed Borrowing of, conversion to or continuation
of LIBO Rate Loans or BA Equivalent Loans, as applicable, made to the Canadian Borrower, as
applicable, or, failing that, will be deemed to have converted such request into either a request
for a Committed Domestic Borrowing of Domestic Prime Rate Loans in the amount specified therein, or
a request for a Committed Canadian Borrowing of Canadian Prime Rate Loans in the amount specified
therein, as applicable.

     3.02 Increased Costs; Reserves on LIBO Rate Loans.

          (a) Increased Costs Generally. If any Change in Law shall:

          (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or credit extended or participated in by, any Lender (except any reserve requirement
reflected in the LIBO Rate) or the L/C Issuer;

          (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or
any LIBO Rate Loan made by it, or change the basis of taxation of payments to such Lender or
the L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes covered by
Section 3.01 and the imposition of, or any change in the rate of, any Excluded Tax
payable by such Lender or the L/C Issuer); or

          (iii) impose on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or LIBO Rate Loans or BA Equivalent
Loans made by such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any LIBO Rate Loan or BA Equivalent Loan (or of maintaining its obligation to make any
such Loan), or to increase the cost to such Lender or the L/C Issuer of participating in, issuing
or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue
any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or
the L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of
such Lender or the L/C Issuer and delivery of the certificate contemplated by Section
3.04(c), the applicable Borrowers will pay to such Lender or the L/C Issuer, as the case may
be, such additional amount or amounts as will compensate such Lender or the L/C Issuer, as the case
may be, for such additional costs incurred or reduction suffered.

          (b) Capital Requirements. If any Lender or the L/C Issuer determines that any Change
in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such
Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has had, or
would have, the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital
or on the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of
this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters
of Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below
that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C
Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with
respect to capital adequacy), then from time to time upon delivery of the certificate contemplated
by Section 3.04(c), the applicable Borrowers will pay

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to such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company, as the
case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer or
such Lender’s or the L/C Issuer’s holding company, as the case may be, for any such reduction
suffered.

          (c) Certificates for Reimbursement. A certificate of a Lender or the L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its
holding company, as the case may be, as specified in subsection (a) or (b) of this Section and
delivered to the Lead Borrower shall be conclusive absent manifest error. The applicable Borrowers
shall pay such Lender or the L/C Issuer, as the case may be, the amount shown as due on any such
certificate within 10 days after receipt thereof.

          (d) Delay in Requests. Failure or delay on the part of any Lender or the L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section 3.02 shall not
constitute a waiver of such Lender’s or the L/C Issuer’s right to demand such compensation,
provided that the applicable Borrower shall not be required to compensate a Lender or the
L/C Issuer pursuant to the foregoing provisions of this Section 3.02 for any increased
costs incurred or reductions suffered more than six (6) months prior to the date that such Lender
or the L/C Issuer, as the case may be, notifies the Lead Borrower of the Change in Law giving rise
to such increased costs or reductions and of such Lender’s or the L/C Issuer’s intention to claim
compensation therefor (except that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the six (6)-month period referred to above shall be extended to
include the period of retroactive effect thereof).

          (e) Reserves on LIBO Rate Loans. The applicable Borrowers shall pay to each Lender,
as long as such Lender shall be required to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency
liabilities”), additional interest on the unpaid principal amount of each LIBO Rate Loan equal to
the actual costs of such reserves allocated to such Loan by such Lender (as determined by such
Lender in good faith, which determination shall be conclusive), which shall be due and payable on
each date on which interest is payable on such Loan, provided that, the Lead Borrower shall
have received at least ten (10) days’ prior notice (with a copy to the Administrative Agent) of
such additional interest from such Lender. If a Lender fails to give notice ten (10) days prior to
the relevant Interest Payment Date, such additional interest shall be due and payable ten (10) days
from receipt of such notice.

     Compensation for Losses. Upon demand of any Domestic Lender (with a copy to the
Administrative Agent) or any Canadian Lender (with a copy to the Canadian Agent) from time to time,
each Borrower shall promptly compensate such Lender for and hold such Lender harmless from any
loss, cost or expense incurred by it as a result of:

     (b) any continuation, conversion, payment or prepayment of any LIBO Rate Loan or BA
Equivalent Loan made to such Borrower on a day other than the last day of the Interest
Period for such LIBO Rate Loan or BA Equivalent Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise);

     (c) any failure by such Borrower, to the extent it is a Domestic Borrower (for a reason
other than the failure of such Domestic Lender to make a Domestic Loan) to prepay, borrow,
continue or convert any LIBO Rate Loan on the date or in the amount notified by the Lead
Borrower;

     (d) any failure by such Borrower, to the extent it is the Canadian Borrower (for a
reason other than the failure of such Canadian Lender to make a Canadian Loan) to prepay,
borrow, continue or convert any LIBO Rate Loan or any BA Equivalent Loan made to such
Borrower on the date or in the amount notified by the Canadian Borrower;

     (e) any assignment of a LIBO Rate Loan made to such Borrower on a day other than the
last day of the Interest Period therefor as a result of a request by the Lead Borrower (if
such

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Borrower is a Domestic Borrower) or the Canadian Borrower (if such Borrower is the
Canadian Borrower) pursuant to Section 0; or

     (f) any assignment of a BA Equivalent Loan made to such Borrower on a day other than
the last day of the Interest Period therefor as a result of a request by the Canadian
Borrower pursuant to Section 0;

including any loss of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained. The applicable Borrower shall also pay any customary
and reasonable administrative fees charged by such Lender in connection with the foregoing.

     For purposes of calculating amounts payable by a Borrower to the Lenders under this
Section 0, each Lender shall be deemed to have funded each LIBO Rate Loan made by it at the
LIBO Rate for such Loan by a matching deposit or other borrowing in the London interbank market for
a comparable amount and for a comparable period, whether or not such LIBO Rate Loan was in fact so
funded. A certificate of any Lender setting forth any amount or amounts that such Lender is
entitled to receive pursuant to this Section and setting forth in reasonable detail the manner in
which such amount or amounts was determined shall be delivered to the Lead Borrower.

     3.03 Mitigation Obligations; Replacement of Lenders.

          (a) Designation of a Different Lending Office. If any Lender or L/C Issuer requests
compensation under Section 3.02, or the Borrowers are required to pay any additional amount
to any Lender or L/C Issuer or any Governmental Authority for the account of any Lender or L/C
Issuer pursuant to Section 3.01, or if any Lender or L/C Issuer gives a notice pursuant to
Section 0, then such Lender or L/C Issuer shall use reasonable efforts to designate a
different Lending Office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of
such Lender or L/C Issuer, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 3.01 or Section 3.02, as the case may be, in the
future, or eliminate the need for the notice pursuant to Section 0, as applicable, and (ii)
in each case, would not subject such Lender or L/C Issuer to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender or L/C Issuer. The Borrowers hereby agree to
pay all reasonable costs and expenses incurred by any Lender or L/C Issuer in connection with any
such designation or assignment.

          (b) Replacement of Lenders. If any Lender requests compensation under Section
3.02, or if any Loan Party is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01, the
Borrowers may replace such Lender in accordance with Section 0.

     Survival. All of the obligations of each Loan Party under this Article III shall
survive termination of the Aggregate Total Commitments and repayment of all other Obligations
hereunder.

     3.04 Designation of Lead Borrower as Borrowers’ Agent.

          (a) Each Domestic Borrower hereby irrevocably designates and appoints each of the Parent and
the Lead Borrower as such Domestic Borrower’s agent to obtain Credit Extensions, the proceeds of
which shall be available to each Domestic Borrower for such uses as are permitted under this
Agreement. As the disclosed principal for its agent, each Domestic Borrower shall be obligated to
each Credit Party on account of Credit Extensions so made as if made directly by the applicable
Credit Party to such Domestic Borrower, notwithstanding the manner by which such Credit Extensions
are recorded on the books and records of the Lead Borrower and of any other Domestic Borrower. In
addition, each

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Domestic Loan Party other than the Domestic Borrowers hereby irrevocably designates and
appoints each of the Parent and the Lead Borrower as such Loan Party’s agent to represent such Loan
Party in all respects under this Agreement and the other Loan Documents.

          (b) The Canadian Borrower hereby irrevocably designates and appoints the Parent as the
Canadian Borrower’s agent to obtain Credit Extensions, the proceeds of which shall be available to
the Canadian Borrower for such uses as are permitted under this Agreement. In addition, each
Canadian Loan Party other than the Canadian Borrower hereby irrevocably designates and appoints
each of the Parent and the Canadian Borrower as such Canadian Loan Party’s agent to represent such
Loan Party in all respects under this Agreement and the other Loan Documents.

          (c) Each Borrower recognizes that credit available to it hereunder is in excess of and on
better terms than it otherwise could obtain on and for its own account and that one of the reasons
therefor is its joining in the applicable credit facility contemplated herein with all other
Borrowers. Consequently, subject to the terms and conditions of this Agreement, each Borrower
hereby assumes, guarantees payment and performance of, and agrees to discharge all Obligations of
each of the other Borrowers; provided that, notwithstanding anything herein or in any of
the other Loan Documents to the contrary, the Canadian Loan Parties shall be liable only for the
Canadian Liabilities.

          (d) The Lead Borrower shall act as a conduit for each Borrower (including itself, as a
“Borrower”) on whose behalf the Lead Borrower has requested a Credit Extension. Neither the
Administrative Agent nor any other Credit Party shall have any obligation to see to the application
of such proceeds therefrom.

ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

     Conditions of Initial Credit Extension. The obligation of the L/C Issuer and each Lender to
make its initial Credit Extension hereunder is subject to satisfaction of the following conditions
precedent:

     (a) The Administrative Agent’s receipt of the following, each of which shall be
originals or telecopies or other electronic image scan transmission (e.g., “pdf” or “tif”
via e-mail) (followed promptly by originals) unless otherwise specified, and each properly
executed by a Responsible Officer of the signing Loan Party (if applicable):

     (i) executed counterparts of this Agreement;

     (ii) a Note executed by each applicable Borrower in favor of each Lender
requesting a Note;

     (iii) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Responsible Officers of each Loan Party evidencing (A)
the authority of each Loan Party to enter into this Agreement and the other Loan
Documents to which such Loan Party is a party and (B) the identity, authority and
capacity of each Responsible Officer thereof authorized to act as a Responsible
Officer in connection with this Agreement and the other Loan Documents to which such
Loan Party is a party;

     (iv) copies of each Loan Party’s certificate or articles of incorporation and
bylaws (or equivalent or comparable constitutive documents with respect to any
non-U.S. jurisdiction) and a certificate of good standing (where applicable, or such
other customary functionally equivalent certificates, to the extent available in the
applicable jurisdiction) from such Loan Party’s jurisdiction of organization and
from each jurisdiction where such Loan Party’s ownership, lease or operation of
properties or the conduct of its business requires such qualification, except to the
extent that failure to so qualify in such jurisdiction could not reasonably be
expected to have a Material Adverse Effect;

     (v) a favorable opinion of (x) Skadden, Arps, Slate, Meagher & Flom LLP,
special counsel to the Domestic Loan Parties, addressed to the Administrative Agent
and

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each Domestic Lender, as to customary matters concerning the Domestic Loan
Parties and the Loan Documents; and (y) Fraser Milner Casgrain LLP and McInnes
Cooper LLP, counsels to the Canadian Loan Parties, addressed to the Canadian Agent
and each Canadian Lender, as to customary matters concerning the Canadian Loan
Parties and the Loan Documents;

     (vi) a certificate signed by a Responsible Officer of the Lead Borrower,
satisfactory in form and substance to the Agents, certifying (A) that the conditions
specified in Sections ARTICLE IV(o) and (p) have been satisfied, (B)
either that (1) no consents, licenses or approvals are required in connection with
the execution, delivery and performance by any Loan Party and the validity against
such Loan Party of the Loan Documents to which it is a party, or (2) that all such
consents, licenses and approvals have been obtained and are in full force and
effect, (C) that, as of the Closing Date after giving effect to the transactions
contemplated hereby, the Loan Parties on a consolidated basis are Solvent, and (D)
that this Agreement and all Obligations satisfy the requirements of section 3.3 of
the Senior Note Indenture;

     (vii) intentionally omitted;

     (viii) except as set forth in the post-Closing Letter, evidence that all
insurance required to be maintained pursuant to the Loan Documents and all
endorsements in favor of the Administrative Agent or the Canadian Agent, as
applicable, required under the Loan Documents have been obtained and are in effect;

     (ix) a payoff letter from the agent for the lenders under the Existing Credit
Agreement reasonably satisfactory in form and substance to the Agents evidencing
that the Existing Credit Agreement has been or concurrently with the Closing Date is
being terminated, all obligations thereunder are being paid in full (except to the
extent expressly set forth therein), and all Liens securing obligations under the
Existing Credit Agreement have been, or concurrently with the Closing Date are
being, released;

     (x) the Security Documents set forth on Schedule 4.01(a)(x) hereto and
copies of certificates evidencing any stock being pledged under the Pledge Agreement
on the Closing Date (to the extent required by the Pledge Agreement), together with
copies of undated stock powers executed in blank, each duly executed by the
applicable Loan Parties (originals of which are being delivered to the US Term Loan
Agent subject to the Intercreditor Agreement);

     (xi) all other Loan Documents set forth on Schedule 4.01(a)(xi) hereto,
each duly executed by the applicable Loan Parties;

     (xii) the Intercreditor Agreement;

     (xiii) (A) a written report regarding the results of a commercial finance
examination of the Loan Parties, which shall be reasonably satisfactory to the
Co-Collateral Agents and (B) background checks on the Parent, the Loan Parties and
their management reasonably requested by any Agent, in each case with results
reasonably satisfactory to the Agents;

     (xiv) results of searches or other evidence reasonably satisfactory to the
Co-Collateral Agents (in each case dated as of a date reasonably satisfactory to the
Co-Collateral Agents) indicating the absence of Liens on the assets of the Loan
Parties, except for Permitted Encumbrances and Liens for which termination
statements and releases are being tendered concurrently with the initial extension
of credit hereunder or other arrangements reasonably satisfactory to the
Co-Collateral Agents for the delivery of such termination statements and releases,
satisfactions and discharges have been made; and

     (xv) (A) all UCC financing statements and PPSA financing statements, required
by Law or reasonably requested by the Agents or the Canadian Agent, as applicable,
to be filed, registered or recorded to create, perfect or protect the Liens

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intended to be created under the Loan Documents, and (B) Credit Card
Notifications and Blocked Account Agreements required to be delivered on or prior to
the Closing Date pursuant to Section 6.07 hereof.

     (b) After giving effect to (i) the first funding under the Loans (if any) on the
Closing Date, (ii) the payment of all fees and other amounts due to the Credit Parties by
the Borrowers on the Closing Date as required under the Loan Documents, (iii) all Letters of
Credit to be issued on the Closing Date, and (iv) the pay off of obligations under the
Existing Credit Agreement on the Closing Date, and with the Loan Parties’ trade payables
being paid currently and the Loan Parties’ expenses and liabilities being paid in the
ordinary course of business and without acceleration of sales, Domestic Availability shall
be not less than $80,000,000 and Canadian Availability shall not be less than $10,000,000.

     (c) The Administrative Agent and the Canadian Agent shall have received a Borrowing
Base Certificate dated the Closing Date, relating to the month ended on June 30, 2009, and
executed by a Responsible Officer of the Lead Borrower or the Parent.

     (d) The Co-Collateral Agents shall be reasonably satisfied with the results of the
inventory appraisal conducted by Great American Group dated April, 2009.

     (e) The Administrative Agent shall have received, (i) and the Agents shall be
reasonably satisfied with a Consolidated balance sheet of the Parent and its Subsidiaries as
at the Fiscal Quarter ended April 30, 2009, and the related Consolidated statements of
income or operations, Shareholders’ Equity and cash flows for such Fiscal Quarter and for
the portion of the Parent’s Fiscal Year then ended, and (ii) a detailed forecast for the
period commencing with the Fiscal Quarter ending July 31, 2009 and ending with the end of
the Fiscal Quarter ending October 31, 2010, which shall include an Availability model,
Americas Consolidated income statement, balance sheet, and statement of cash flow, by month,
each prepared in conformity with GAAP (in the case of clause (i)) and consistent with the
Loan Parties’ then current practices.

     (f) The Lead Borrower or any Subsidiary shall have entered into the Term Loan Credit
Agreements substantially consistent with the term sheet attached to Rhône Capital III L.P.’s
commitment letter dated June 8, 2009 relating thereto or otherwise in form and substance
reasonably satisfactory to the Agents and received, or substantially simultaneously with the
initial Credit Extension under this Agreement shall receive, gross proceeds of the Term
Loans in a minimum amount of $125,000,000.

     (g) The Agents shall have received (i) the Intercreditor Agreement duly executed by all
parties thereto and (ii) copies of all material documents and agreements duly executed by
all parties thereto with respect to the Term Loans and such agreements described in this
clause (ii) shall be substantially consistent with the term sheet dated June 8, 2009
relating thereto or otherwise in form and substance reasonably acceptable to the Agents.

     (h) All necessary consents and approvals to the transactions contemplated hereby shall
have been obtained.

     (i) All fees required to be paid by the Borrowers to any of the Agents or the Arrangers
on or before the Closing Date shall have been paid in full, and all fees required to be paid
by the Borrowers to the Lenders on or before the Closing Date shall have been paid in full.

     (j) The Borrowers shall have paid all reasonable and documented fees, charges and
disbursements of counsels to the Agents and Arrangers to the extent payable by the Borrowers

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hereunder and invoiced prior to or on the Closing Date, plus such additional amounts of
such fees, charges and disbursements payable by the Borrowers hereunder as shall constitute
such counsels’ reasonable estimate of such fees, charges and disbursements incurred or to be
incurred by it through the closing proceedings (provided that such estimates shall not
thereafter preclude a final settling of accounts between the Borrowers and any Agent or
Arranger).

     (k) The Agents shall have received all documentation and other information required by
regulatory authorities under applicable “know your customer” and anti-money laundering rules
and regulations including, without limitation, the Patriot Act.

     (l) Since June 8, 2009, no material changes in governmental regulations or policies
affecting any Loan Party or any Credit Party shall have occurred prior to the Closing Date.

     (m) intentionally omitted.

     (n) The Closing Date shall have occurred on or before July 31, 2009. The
Administrative Agent shall notify the Lead Borrower and the Lenders of the Closing Date, and
such notice shall be conclusive and binding on the Loan Parties.

Without limiting the generality of the provisions of Section 9.02, for purposes of
determining compliance with the conditions specified in this Section 0, each Lender (other
than an Agent or the Canadian Agent) that has signed this Agreement shall be deemed to have
Consented to, approved or accepted or to be satisfied with, each document or other matter required
thereunder to be Consented to or approved by or acceptable or satisfactory to a Lender unless the
Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

     Conditions to all Credit Extensions. The obligation of each Lender to honor any Request for
Credit Extension (other than a Committed Loan Notice requesting only a conversion of a Committed
Loan to another Type of Committed Loan, or a continuation of LIBO Rate Loans or BA Equivalent
Loans) and of each L/C Issuer to issue each Letter of Credit is subject to the following conditions
precedent:

     (o) The representations and warranties of the Borrowers and each other Loan Party
contained in Article V or any other Loan Document, shall be true and correct in all
material respects (or, in the case of any representation and warranty qualified by
materiality, in all respects) on and as of the date of such Credit Extension, except to the
extent that such representations and warranties specifically refer to an earlier date, in
which case they shall be true and correct in all material respects as of such earlier date,
and except that for purposes of this Section 0, the representations and warranties
contained in subsections (a), (b) and (f) of Section 5.01 shall be deemed to refer
to the most recent statements, if any, furnished pursuant to clauses (a), (b) and (d),
respectively, of Section 0.

     (p) No Default shall exist, or would result from such proposed Credit Extension or from
the application of the proceeds thereof.

     (q) The Administrative Agent or the Canadian Agent, if applicable, and, if applicable,
the L/C Issuer or the Swing Line Lender shall have received a Request for Credit Extension
in accordance with the requirements hereof.

Each Request for a Credit Extension (other than a Committed Loan Notice requesting only a
conversion of a Committed Loan to another Type of Committed Loan or a continuation of LIBO Rate
Loans or BA

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Equivalent Loans) submitted by the Lead Borrower or the Canadian Borrower, as applicable, shall be
deemed to be a representation and warranty by the Domestic Borrowers or the Canadian Borrower, as
applicable, that the conditions specified in Sections ARTICLE IV(o) and (p) have
been satisfied on and as of the date of the applicable Credit Extension. The conditions set forth
in this Section 0 are for the sole benefit of the Credit Parties but unless and until the
Required Lenders otherwise direct the Administrative Agent and the Canadian Agent (in accordance
with the terms of this Agreement) to cease making Committed Loans, the Lenders will fund their
Applicable Percentage of all Loans that are requested by the Lead Borrower or the Canadian
Borrower, as applicable, of all L/C Advances required to be made hereunder and participate in all
Swing Line Loans and Letters of Credit whenever made or issued in accordance with the provisions of
this Agreement, and which, notwithstanding the failure of the Loan Parties to comply with the
provisions of this Article IV, are agreed to by the Administrative Agent or the Canadian
Agent, as applicable; provided that, the making of any such Loans or the issuance of any
Letters of Credit in the event the provisions of this Article IV are not complied with
shall not be deemed to be a modification or waiver by any Credit Party of the provisions of this
Article IV on any future occasion or a waiver of any rights of the Credit Parties as a
result of any such failure to comply.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     To induce the Credit Parties to enter into this Agreement and to make Loans and to issue
Letters of Credit hereunder, each Loan Party and each Americas Subsidiary (and, in the case of
Section 5.06, 5.09, 5.11 and 5.16, for each Subsidiary of the
Parent) represents and warrants to the Administrative Agent, the L/C Issuer and the Lenders that:

     Existence, Qualification and Power. Each Loan Party and each Americas Subsidiary (a) is a
corporation, limited liability company, unlimited liability company, partnership or limited
partnership, duly organized or formed, validly existing and, where applicable, in good standing
under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite
power and authority and all requisite governmental licenses, permits, authorizations, consents and
approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and
perform its obligations under the Loan Documents to which it is a party, and (c) is duly qualified
and is licensed and, where applicable, in good standing under the Laws of each jurisdiction where
its ownership, lease or operation of properties or the conduct of its business requires such
qualification or license; except in each case referred to in clause (a) (in the case of any
Americas Subsidiary that is not a Loan Party), (b)(i) or (c), to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect. Schedule 5.01 annexed
hereto sets forth, in each case as of the Closing Date, each Loan Party’s name as it appears in
official filings in its state or province of incorporation or organization, its state or province
of incorporation or organization, organization type, organization number, if any, issued by its
state of incorporation or organization (in the case of each Domestic Loan Party), and its federal
employer identification number (if any).

     Authorization; No Contravention. The execution, delivery and performance by each Loan Party
of each Loan Document to which such Person is a party, has been duly authorized by all necessary
corporate or other organizational action, and does not and will not (a) contravene the terms of any
of such Person’s Organization Documents; (b) conflict with or result in any breach, termination, or
contravention of, or constitute a default under, or require any payment to be made under (i) any
Material Contract or any Material Indebtedness to which such Person is a party or affecting such
Person or the properties of such Person or any of its Subsidiaries (other than any Loan Document)
or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award
to which such Person or its property is subject; (c) result in or require the creation of any Lien
upon any asset of any Loan Party (other than Liens in favor of the Administrative Agent or the
Canadian Agent, as applicable, under the Security

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Documents and other than in accordance with the Intercreditor Agreement); or (d) violate any
applicable Law.

     Governmental Authorization; Other Consents. No approval, consent, exemption, authorization,
or other action by, or notice to, or filing with, any Governmental Authority, and no material
approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any
other Person is necessary or required in connection with the execution, delivery or performance by,
or enforcement against, any Loan Party of this Agreement or any other Loan Document to which such
Person is a party, except for (a) the perfection or maintenance of the Liens created under the
Security Documents or (b) such as have been obtained or made and are in full force and effect.

     Binding Effect. This Agreement has been, and each other Loan Document, when delivered, will
have been, duly executed and delivered by each Loan Party that is party thereto. This Agreement
constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and
binding obligation of each Loan Party that is party thereto, enforceable against such Loan Party in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

     5.01 Financial Statements; No Material Adverse Effect.

          (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present in all material respects the financial condition of the Parent and its Subsidiaries
as of the date thereof and their results of operations for the period covered thereby in accordance
with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly
noted therein; and (iii) to the extent required by GAAP show all Material Indebtedness and other
liabilities, direct or contingent, of the Parent and its Subsidiaries as of the date thereof,
including liabilities for taxes, material commitments and Indebtedness.

          (b) The unaudited Consolidated balance sheet of the Parent and its Subsidiaries dated April
30, 2009, and the related Consolidated statements of income or operations, Shareholders’ Equity and
cash flows for the Fiscal Quarter ended on that date, in each case, (i) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly
noted therein, and (ii) fairly present in all materials respects the financial condition of the
Parent and its Subsidiaries as of the date thereof and their results of operations for the period
covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to
normal year-end audit adjustments. Schedule 5.01 sets forth all Material Indebtedness of
the Loan Parties and their Consolidated Subsidiaries (other than any intercompany Indebtedness)
outstanding as of the Closing Date (after giving effect to all the transactions occurring on the
Closing Date).

          (c) Since the date of the Audited Financial Statements, there has been no event or
circumstance, either individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect.

          (d) To the knowledge of the Lead Borrower, no Internal Control Event exists or has occurred
since the date of the Audited Financial Statements that has resulted in or could reasonably be
expected to result in a misstatement in any material respect, in any financial information
delivered or to be delivered to the Administrative Agent or the Lenders, of (i) covenant compliance
calculations provided hereunder or (ii) the assets, liabilities, financial condition or results of
operations of the Parent and the Americas Subsidiaries on an Americas Consolidated basis.

          (e) Intentionally Omitted.

          (f) The Americas Consolidated forecasted balance sheet and statements of income and cash flows
of the Parent and Americas Subsidiaries delivered pursuant to Section 0 and (if applicable)

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Section 0 were prepared in good faith on the basis of the assumptions stated therein,
which assumptions were fair in light of the conditions existing at the time of delivery of such
forecasts, and represented, at the time of delivery, the Loan Parties’ reasonable estimate of their
future financial performance (it being understood that such forecasted financial information is
subject to significant uncertainties and contingencies, many of which are beyond the control of the
Loan Parties, that no assurance is given that any particular forecasts will be realized, that
actual results may differ and that such differences may be material).

     Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the
knowledge of the Loan Parties threatened in writing, at law, in equity, in arbitration or before
any Governmental Authority, against any Loan Party or any of its Subsidiaries or against any of its
properties or revenues that (a) purport to affect or pertain to this Agreement or any other Loan
Document, or any of the transactions contemplated hereby to occur on the Closing Date, or (b)
either individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect.

     No Default. No Loan Party or any Americas Subsidiary is in default under or with respect to
any Material Contract or any Material Indebtedness (exclusive of the Term Loan Documents or the
Senior Note Indenture). No Default has occurred and is continuing or would result on the Closing
Date from the consummation of the transactions contemplated by this Agreement or any other Loan
Document.

     5.02 Ownership of Property; Liens.

          (a) Each of the Loan Parties and each Americas Subsidiary thereof has good record and
marketable title in fee simple to or valid leasehold interests in, all real property necessary or
used in the ordinary conduct of its business, except for such defects in title or failure to have
such title or other interest as could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. Each of the Loan Parties and each Americas Subsidiary has good
title to, valid leasehold interests in, or valid licenses or other rights to use all personal
property and assets material to the ordinary conduct of its business, except where failure to have
such title, interest, license or other right could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

          (b) Schedule 5.08(b)(1) sets forth the address (including street address and state,
province or territory and postal or zip code) of all Real Estate that is owned by the Loan Parties
as of the Closing Date, together with a list of the holders of any mortgage thereon as of the
Closing Date. Schedule 5.08(b)(2) sets forth the address (including street address and
state or province or territory) of all locations leased by the Loan Parties as of the Closing Date.

          (c) The property of each Loan Party and each of the Americas Subsidiaries is subject to no
Liens, other than Permitted Encumbrances.

     5.03 Environmental Compliance.

          (a) No Loan Party or any Subsidiary (i) is in violation of any Environmental Law or has not
obtained or, to its knowledge, has not complied with any Environmental Permit required under any
Environmental Law, (ii) is subject to any Environmental Liability that remains outstanding, or
(iii) has received written notice of any claim alleging Environmental Liability by any of them,
except, in each case, as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

          (b) Except, in each case, as would not reasonably be expected to have a Material Adverse
Effect: (i) none of the properties currently owned by any Loan Party or any Subsidiary, or to the
knowledge of any Loan Party, leased by any Loan Party or any Subsidiary, is listed or, to the
knowledge of any Loan Party, proposed for listing on the NPL or any analogous foreign, state,
provincial, territorial, municipal or local list; (ii) there are no underground storage tanks or
any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are
being treated, stored or disposed of except in compliance with applicable Environmental Laws on any
property currently owned by any Loan Party

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or any Subsidiary in violation of applicable Environmental Law and (iii) to the knowledge of
the Loan Parties, Hazardous Materials have not been released, discharged or disposed on any
property currently owned by any Loan Party or any Subsidiary in violation of applicable
Environmental Law.

          (c) Except, in each case, as would not reasonably be expected to have a Material Adverse
Effect: (i) no Loan Party or any Subsidiary is undertaking, either individually or together with
other “potentially responsible parties” (as that term is defined in CERCLA), any investigation,
assessment, or remedial or response action to remove Hazardous Materials at any location, either
voluntarily or pursuant to the order of any Governmental Authority or the requirements of any
Environmental Law.

     Insurance. The properties of the Loan Parties and their Americas Subsidiaries are insured
with financially sound and reputable insurance companies which are not Affiliates of the Loan
Parties, in such amounts, with such deductibles and covering such risks (including, without
limitation, workmen’s compensation, public liability, business interruption and property damage
insurance) as are customarily carried by companies engaged in similar businesses and owning similar
properties in localities where the Loan Parties or the applicable Americas Subsidiary operates.
Schedule 5.10 sets forth a summary of all insurance maintained by or on behalf of the Loan
Parties as of the Closing Date. As of the Closing Date, each insurance policy listed on
Schedule 5.10 is in full force and effect and all premiums in respect thereof that are due
and payable have been paid.

     Taxes. The Loan Parties and their Subsidiaries have filed all material federal, state,
provincial, local and other material tax returns and reports required to be filed, and have paid
all material federal, state, provincial, territorial, municipal, local and other material taxes,
assessments, fees and other governmental charges levied or imposed upon them or their properties,
income or assets otherwise due and payable, except those which are being contested in good faith by
appropriate proceedings for which adequate reserves have been provided in accordance with GAAP, as
to which taxes no Lien has been filed and which contest effectively suspends the collection of the
contested obligation and the enforcement of any Lien securing such obligation. There is no
proposed tax assessment against any Loan Party or any Subsidiary that would, if made, have a
Material Adverse Effect. No Loan Party or any Subsidiary thereof is a party to any tax sharing
agreement, other than any tax sharing agreement between or among such Loan Party (or any Subsidiary
thereof) and any Affiliate of such Loan Party (or any Subsidiary thereof).

     5.04 Plans.

          (a) Except as would not reasonably be expected to result in a Material Adverse Effect: (i)
each Plan in respect of employees of any Domestic Loan Party is in compliance in all material
respects with the applicable provisions of ERISA, the Code and other federal or state Laws; (ii)
each Plan in respect of employees of any Domestic Loan Party that is intended to qualify under
Section 401(a) of the Code has received a favorable determination letter from the IRS or an
application for such a letter is currently being processed by the IRS with respect thereto and, to
the knowledge of the Lead Borrower, nothing has occurred which would prevent, or cause the loss of,
such qualification; (iii) the Domestic Loan Parties and each ERISA Affiliate have made all required
contributions to each Plan subject to Section 412 of the Code, and no application for a funding
waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made
with respect to any Plan in respect of employees of any Domestic Loan Party; and (iv) no Lien
imposed under the Code or ERISA exists or is likely to arise on account of any Plan in respect of
employees of any Domestic Loan Party.

          (b) There has been no prohibited transaction or violation of the fiduciary responsibility
rules with respect to any Plan in respect of employees of any Domestic Loan Party that has resulted
or could reasonably be expected to result in a Material Adverse Effect.

          (c) Except as would not reasonably be expected to result in a Material Adverse Effect: (i) no
ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan has any Unfunded
Pension Liability; (iii) neither any Domestic Loan Party nor any ERISA Affiliate has incurred,

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or reasonably expects to incur, any liability under Title IV of ERISA with respect to any
Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither
any Domestic Loan Party nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA,
would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a
Multiemployer Plan; and (v) neither any Loan Party nor any ERISA Affiliate has engaged in a
transaction that could be subject to Sections 4069 or 4212(c) of ERISA.

          (d) As of the Closing Date, no Plan in respect of employees of any Canadian Loan Party or any
of their Related Parties is a pension plan or subject to any pension benefits legislation. As of
the Closing Date, no Canadian Loan Party has any Canadian Pension Plan.

     Subsidiaries; Equity Interests. As of the Closing Date, the Loan Parties have no direct
Subsidiaries other than those specifically disclosed in Part (a) of Schedule 5.13, which
Schedule sets forth, in each case as of the Closing Date, the legal name, jurisdiction of
incorporation or formation and authorized Equity Interests of each such Subsidiary. All of the
outstanding Equity Interests owned by a Loan Party in such Subsidiaries have been validly issued,
are fully paid and non-assessable and are owned by a Loan Party in the amounts specified on Part
(a) of Schedule 5.13 free and clear of all Liens except for Permitted Encumbrances. As
of the Closing Date, the Loan Parties have no equity investments in any other corporation or entity
other than (i) Investments described in clause (g) and (h) of the definition of “Permitted
Investments” and (ii) those specifically disclosed in Part (b) of Schedule 5.13. All of
the outstanding Equity Interests in the Loan Parties (other than the Parent) have been validly
issued, and are fully paid and non-assessable and, as of the Closing Date, are owned in the amounts
specified on Part (c) of Schedule 5.13 free and clear of all Liens except for Permitted
Encumbrances.

     5.05 Margin Regulations; Investment Company Act.

          (a) None of the proceeds of the Credit Extensions shall be used directly or indirectly for any
purpose that would entail a violation of Regulations T, U, or X issued by the FRB.

          (b) None of the Loan Parties is, or is required to be registered as an “investment company”
under the Investment Company Act of 1940.

     Disclosure. No financial statement, certificate or other factual written information
(excluding projections, forward-looking information and information of a general economic or
general industry nature) furnished by or on behalf of any Loan Party to any Agent or any Lender in
connection with the transactions contemplated hereby and the negotiation of this Agreement or
delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by
other information so furnished, and taken as a whole) contains any material misstatement of fact or
omits to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not materially misleading; provided that, with
respect to projected financial information, the Loan Parties represent only that such information
was prepared in good faith based upon assumptions believed to be reasonable at the time (it being
understood that such projected financial information is subject to significant uncertainties and
contingencies, many of which are beyond the control of the Loan Parties, that no assurance is given
that any particular projections will be realized, that actual results may differ and that such
differences may be material).

     Compliance with Laws. Each of the Loan Parties and each Subsidiary is in compliance in all
material respects with the requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its properties, except in such instances in which (a) such requirement of
Law or order, writ, injunction or decree is being contested in good faith by appropriate
proceedings diligently conducted or (b) the failure to comply therewith, either individually or in
the aggregate, could not reasonably be expected to have a Material Adverse Effect.

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     Intellectual Property; Licenses, Etc. Except, in each case, as would not reasonably be
expected to have a Material Adverse Effect, the Loan Parties and their Americas Subsidiaries own,
or possess the right to use, all of the Intellectual Property that is reasonably necessary for the
operation of their respective businesses as currently conducted, without violation of the rights of
any other Person. To the knowledge of the Lead Borrower, no slogan or other advertising device,
product, process, method, substance, part or other material now employed, by any Loan Party
infringes upon any rights held by any other Person, except, in each case, as would not reasonably
be expected to have a Material Adverse Effect. No claim or litigation against any Loan Party
alleging any such infringement is pending or, to the knowledge of the Lead Borrower, threatened in
writing, which, either individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect.

     5.06 Labor Matters.

     There are no strikes, lockouts, slowdowns or other labor disputes against any Loan Party or
any Americas Subsidiary thereof pending or, to the knowledge of any Loan Party, threatened that, in
any case, could reasonably be expected to have a Material Adverse Effect. The hours worked by, and
payments made to employees of, the Loan Parties comply with the Fair Labor Standards Act and any
other applicable federal, state, provincial, territorial, municipal, local or foreign Law dealing
with such matters except to the extent that any such violation could not reasonably be expected to
have a Material Adverse Effect. No Loan Party or any of its Americas Subsidiaries has incurred any
liability or obligation under the Worker Adjustment and Retraining Act or similar federal, state,
provincial, local or foreign Law dealing with such matters that, in any case, could reasonably be
expected to have a Material Adverse Effect. All payments due from any Loan Party and its Americas
Subsidiaries, or for which any claim may be made against any Loan Party, on account of wages and
employee health and welfare insurance and other benefits, have been paid or properly accrued in
accordance with GAAP as a liability on the books of such Loan Party except to the extent that
failure to do so could not reasonably be expected to have a Material Adverse Effect. As of the
Closing Date, no Loan Party or any Americas Subsidiary is a party to or bound by any collective
bargaining agreement. There are no representation proceedings pending or, to any Loan Party’s
knowledge, threatened to be filed with the National Labor Relations Board or other applicable
Governmental Authority, and no labor organization or group of employees of any Loan Party or any
Subsidiary has made a pending demand for recognition that, in any case, could reasonably be
expected to have a Material Adverse Effect. There are no complaints, unfair labor practice charges,
grievances, arbitrations, unfair employment practices charges or any other claims or complaints
against any Loan Party or any Americas Subsidiary pending or, to the knowledge of any Loan Party,
threatened to be filed with any Governmental Authority or arbitrator based on, arising out of, in
connection with, or otherwise relating to the employment or termination of employment of any
employee of any Loan Party or any of its Americas Subsidiaries that, in any case, could reasonably
be expected to have a Material Adverse Effect. The consummation of the transactions contemplated by
the Loan Documents will not give rise to any right of termination or right of renegotiation on the
part of any union under any collective bargaining agreement to which any Loan Party or any of its
Americas Subsidiaries is bound.

     5.07 Security Documents.

     The Security Documents create in favor of the Administrative Agent (for the benefit of itself
and the other Credit Parties) or the Canadian Agent (for the benefit of itself and the other
Canadian Credit Parties), as applicable, a legal, valid, continuing and enforceable security
interest in the Collateral, and the Security Documents constitute, or will upon the filing of
financing statements or other requisite registrations and recordations (including, with respect to
IP Collateral, the filing and recordation of the Intellectual Property Security Agreement with the
United States Patent and Trademark Office, United States Copyright Office, Canadian Intellectual
Property Office and any substitute or successor agency) and/or the obtaining of “control”, in each
case with respect to the relevant Collateral as required under the

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applicable UCC or similar legislation of any jurisdiction, including, without limitation, the
PPSA and the Civil Code of Quebec, the creation of a perfected Lien on, and security interest in,
all right, title and interest of the Loan Parties thereunder in such Collateral that may be
perfected in the United States or Canada by filing, recording or registering a financing statement
or analogous document (and, in the case of IP Collateral and any other Intellectual Property, the
filing and recordation of the Intellectual Property Security Agreement with the United States
Patent and Trademark Office and the United States Copyright Office or the Canadian Intellectual
Property Office) or, to the extent required by the Loan Documents (it being understood that
subsequent recordings in the United States Patent and Trademark Office, United States Copyright
Office, Canadian Intellectual Property Office or a substitute or successor agency may be necessary
to perfect a Lien on Intellectual Property acquired, register or applied for after the date
hereof). Notwithstanding anything to the contrary herein, the Loan Parties shall have no
obligation to prefect Liens on any IP Collateral or other Intellectual Property in any jurisdiction
outside the United States of America or Canada.

     5.08 Solvency.

     After giving effect to the transactions contemplated by this Agreement, and before and after
giving effect to each Credit Extension, the Loan Parties, on a consolidated basis, are Solvent. No
transfer of property has been or will be made by any Loan Party and no obligation has been or will
be incurred by any Loan Party in connection with the transactions contemplated by this Agreement or
the other Loan Documents with the intent to hinder, delay, or defraud either present or future
creditors of any Loan Party.

     5.09 Deposit Accounts; Credit Card Arrangements.

          (a) Annexed hereto as Schedule 5.21(a) is a list of all DDAs maintained by the Loan
Parties as of the Closing Date, which Schedule includes, with respect to each DDA and in each case
as of the Closing Date: (i) the name of the depository; (ii) the account number(s) maintained with
such depository; and (iii) the identification of each Blocked Account Bank.

          (b) Annexed hereto as Schedule 5.21(b) is a list of all arrangements as of the Closing
Date to which any Loan Party is a party with respect to the processing and/or payment to such Loan
Party of the proceeds of any credit card charges and debit card charges for sales made by such Loan
Party.

     Brokers. Except as disclosed on Schedule 5.22 no broker or finder brought about the
obtaining, making or closing of the Loans or transactions contemplated by the Loan Documents, and
no Loan Party or Affiliate thereof has any obligation to any Person in respect of any finder’s or
brokerage fees in connection therewith.

     Customer and Trade Relations. There exists no actual or, to the knowledge of any Loan Party,
threatened, termination or cancellation of, or any material adverse modification or change in the
business relationship of any Loan Party with any supplier material to its operations except to the
extent that any of the foregoing could not reasonably be expected to have a Material Adverse
Effect.

     Material Contracts. Schedule 5.24 sets forth a list of all Material Contracts to
which any Loan Party is a party as of the Closing Date (other than the Loan Documents and the Term
Loan Documents). The Loan Parties have delivered true, correct and complete copies of such
Material Contracts to the Administrative Agent on or before the date hereof. The Loan Parties are
not in breach or in default in any material respect of or under any Material Contract (exclusive of
the Term Loan Documents or the Senior Note Indenture) and have not received any notice of the
intention of any other party thereto to terminate any Material Contract.

     Casualty. Neither the businesses nor the properties of any Loan Party or any of its Americas
Subsidiaries are affected by any fire, explosion, accident, drought, storm, hail, earthquake,
embargo, act

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of God or of the public enemy or other casualty (whether or not covered by insurance) that,
either individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect.

ARTICLE VI

AFFIRMATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied (other than contingent indemnification Obligations for
which a claim has not then been asserted), or any Letter of Credit shall remain outstanding, the
Loan Parties shall, and shall, (except in the case of the covenants set forth in Sections
0, 0, and 0), cause each Americas Subsidiary and, in the case of the covenants
set forth in Sections 6.08 and 6.16, cause each of its Subsidiaries to:

     Financial Statements. Deliver to the Administrative Agent (for distribution to each Lender):

     (a) within ninety (90) days after the end of each Fiscal Year of the Parent, (i) a
Consolidated balance sheet of the Parent and its Subsidiaries as at the end of such Fiscal
Year, and the related Consolidated statements of income or operations, Shareholders’ Equity
and cash flows for such Fiscal Year, setting forth in each case in comparative form the
figures for the previous Fiscal Year, all prepared in accordance with GAAP, such
Consolidated statements to be audited and accompanied by a report and opinion of a
Registered Public Accounting Firm of nationally recognized standing or otherwise reasonably
acceptable to the Administrative Agent, which report and opinion shall be prepared in
accordance with generally accepted auditing standards and shall not be subject to any “going
concern” or like qualification or exception or any qualification or exception as to the
scope of such audit, and (ii) an Americas Consolidated and consolidating balance sheet of
the Parent and the Americas Subsidiaries as at the end of such Fiscal Year, and the related
Americas Consolidated and consolidating statements of income or operations of the Parent and
the Americas Subsidiaries, and Americas Consolidated cash flows for such Fiscal Year,
setting forth in each case (in the case of clause (ii), to the extent practicable) in
comparative form the figures for the previous Fiscal Year, such consolidating statements of
the Parent and its Americas Subsidiaries to be certified by a Responsible Officer of the
Lead Borrower or the Parent to the effect that such statements are fairly stated in all
material respects when considered in relation to the Americas Consolidated financial
statements of the Parent and its Americas Subsidiaries;

     (b) within forty-five (45) days after the end of each of the first three Fiscal
Quarters of each Fiscal Year of the Parent, (i) a Consolidated balance sheet of the Parent
and its Subsidiaries as at the end of such Fiscal Quarter, and the related Consolidated
statements of income or operations, Shareholders’ Equity and cash flows for such Fiscal
Quarter and for the portion of the Parent’s Fiscal Year then ended, and (ii) an Americas
Consolidated and consolidating balance sheet of the Parent and the Americas Subsidiaries as
at the end of such Fiscal Quarter, and the related Americas Consolidated and consolidating
statements of income or operations and Shareholders’ Equity of the Parent and the Americas
Subsidiaries and (commencing with the first such Fiscal Quarter which ends after delivery of
the first 10-K annual report of the Parent following the Closing Date) an Americas
Consolidated cash flows for such Fiscal Quarter and (to the extent practicable) for the
portion of the Parent’s Fiscal Year then ended, setting forth in each case (to the extent
practicable) in comparative form the figures for (A) such period set forth in the
projections delivered pursuant to Section ARTICLE VI(d) hereof, (B) the
corresponding Fiscal Quarter of the previous Fiscal Year and (C) the corresponding portion
of the previous Fiscal Year, all in reasonable detail, such Americas Consolidated statements
to be certified by a Responsible Officer of the Lead Borrower or the Parent as fairly

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presenting in all material respects the financial condition, results of operations,
Shareholders’ Equity and cash flows of the Parent and the Americas Subsidiaries as of the
end of such Fiscal Quarter in accordance with GAAP, subject only to normal year-end audit
adjustments and the absence of footnotes and such consolidating statements of the Parent and
its Americas Subsidiaries to be certified by a Responsible Officer of the Lead Borrower to
the effect that such statements are fairly stated in all material respects when considered
in relation to the Americas Consolidated financial statements of the Parent and the Americas
Subsidiaries;

     (c) within thirty (30) days after the end of each of the Fiscal Months of each Fiscal
Year of the Parent (commencing with the first such Fiscal Month which occurs after the first
full six (6) months following the Closing Date), an Americas Consolidated and consolidating
balance sheet of the Parent and the Americas Subsidiaries as at the end of such Fiscal
Month, and the related Americas Consolidated and consolidating statements of income or
operations, Shareholders’ Equity and Americas Consolidated cash flows for such Fiscal Month,
and (to the extent practicable) for the portion of the Parent’s Fiscal Year then ended,
setting forth in each case (to the extent practicable) in comparative form the figures for
(A) such period set forth in the projections delivered pursuant to Section ARTICLE
VI(d) hereof, (B) the corresponding Fiscal Month of the previous Fiscal Year and (C) the
corresponding portion of the previous Fiscal Year, all in reasonable detail and prepared in
accordance with GAAP, to the extent applicable, subject to normal year end audit adjustments
and in the absence of footnotes, and in any event, in a manner consistent with the Parent’s
accounting practices, such Americas Consolidated statements to be certified by a Responsible
Officer of the Lead Borrower or the Parent as fairly presenting in all material respects the
financial condition, results of operations, Shareholders’ Equity and cash flows of the
Parent and the Americas Subsidiaries as of the end of such Fiscal Month and such
consolidating statements to be certified by a Responsible Officer of the Lead Borrower or
the Parent to the effect that such statements are fairly stated in all material respects
when considered in relation to the Americas Consolidated financial statements of the Parent
the Americas Subsidiaries; and

     (d) within thirty (30) days after the end of each Fiscal Year of the Parent, forecasts
prepared by management of the Parent and Lead Borrower, in form reasonably satisfactory to
the Agents, of Americas Consolidated balance sheets, statements of income or operations and
cash flows, and Availability projections of the Parent and the Americas Subsidiaries on a
monthly basis for the immediately following Fiscal Year (including the Fiscal Year in which
the Maturity Date occurs), and promptly after they become available, any significant
revisions to such forecast with respect to such Fiscal Year.

     Certificates; Other Information. Deliver to the Administrative Agent (for distribution to
each Lender) and, with respect to items (b), (c) and (f) below, the Co-Collateral Agents:

     (e) intentionally omitted;

     (f) concurrently with the delivery of the financial statements referred to in
Sections ARTICLE VI(a), (b) and (c), (i) a duly completed Compliance
Certificate signed by a Responsible Officer of the Lead Borrower or the Parent (to be
furnished even if a Covenant Compliance Event is not then in effect) and (ii) a copy of
management’s discussion and analysis with respect to such financial statements. In the
event of any change in GAAP used in the preparation of such financial statements, the Lead
Borrower or the Parent shall also provide a statement of reconciliation conforming such
financial statements to GAAP;

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     (g) until the first month following delivery of the first 10-K annual report of the
Parent following the Closing Date, on the fifteenth (15th) day of each Fiscal
Month (or, if such day is not a Business Day, on the next succeeding Business Day), and
thereafter, on the tenth (10th) day of each Fiscal Month (or, if such day is not
a Business Day, on the next succeeding Business Day) (or more frequently at the option of
the Lead Borrower), a Borrowing Base Certificate showing the Domestic Borrowing Base and the
Canadian Borrowing Base, as of the close of business as of the last day of the immediately
preceding Fiscal Month; provided that, upon the occurrence and during the
continuance of an Accelerated Borrowing Base Delivery Event, such Borrowing Base Certificate
(which shall include information relating to the Inventory only to the extent then
available) shall be delivered on Wednesday of each week (or, if any Wednesday is not a
Business Day, on the next succeeding Business Day), as of the close of business on the
immediately preceding Saturday;

     (h) promptly upon receipt, copies of any detailed audit reports, management letters or
recommendations submitted to the board of directors (or the audit committee of the board of
directors) of any Loan Party by its Registered Public Accounting Firm in connection with the
accounts or books of the Loan Parties or any Subsidiary, or any audit of any of them,
including, without limitation, specifying any Internal Control Event;

     (i) promptly after the same are available, copies of each annual report, proxy or
financial statement or other report which any Loan Party files with the SEC and copies of
all annual, regular, periodic and special reports and registration statements which any Loan
Party files with the SEC under Sections 13 or 15(d) of the Securities Exchange Act of 1934
or with any national or foreign securities exchange or applicable Governmental Authority,
and in any case not otherwise required to be delivered to the Administrative Agent pursuant
hereto;

     (j) the financial and collateral reports described on Schedule 6.02 hereto, no
later than the times set forth in such Schedule, provided that certain of the
reports listed on Schedule 6.02 may not be required if such delivery is not required
by all of the Agents, and, if applicable, the Canadian Agent;

     (k) promptly after the furnishing thereof, copies of any statement or report furnished
to any holder of debt securities of any Loan Party pursuant to the terms of the Senior Note
Indenture (or any other indenture relating to Material Indebtedness) or the US Term Loan
Credit Agreement or the Euro Term Loan Credit Agreement and not otherwise required to be
furnished to the Lenders pursuant to Section 0 or any other clause of this
Section 0;

     (l) within thirty (30) days after the end of each Fiscal Year of the Loan Parties, a
report summarizing the insurance coverage (specifying type, amount and carrier) in effect
for each Loan Party and its Americas Subsidiaries and containing such additional information
as the Administrative Agent, Canadian Agent, any Co-Collateral Agent, or any Lender through
the Administrative Agent, may reasonably specify;

     (m) promptly, and in any event within five (5) Business Days after receipt thereof by
any Loan Party or any Subsidiary thereof, copies of each notice or other correspondence
received from any Governmental Authority (including, without limitation, the SEC (or
comparable agency in any applicable non-U.S. jurisdiction)) concerning any proceeding with,
or investigation or possible investigation or other inquiry by such Governmental Authority
regarding financial or other operational results of any Loan Party or any Subsidiary thereof
or any other matter which could reasonably be expected to have a Material Adverse Effect;
and

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     (n) promptly, such additional information regarding the business affairs, financial
condition or operations of any Loan Party or any Americas Subsidiary, or compliance with the
terms of the Loan Documents, as the Administrative Agent, Canadian Agent, any Co-Collateral
Agent, or any Lender (through the Administrative Agent or the Canadian Agent, as applicable)
may from time to time reasonably request.

Documents required to be delivered pursuant to Section ARTICLE VI(a) or (b) or
Section 6.02(c) (to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Parent posts such documents, or provides a link thereto on
the Parent’s website on the Internet at the website address listed on Schedule 10.02; or
(ii) on which such documents are posted on the Parent’s behalf on an Internet or intranet website,
if any, to which each Lender and Agent has access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that: the Lead Borrower shall
deliver paper copies of such documents to any Agent or Lender that requests the Lead Borrower to
deliver such paper copies until a written request to cease delivering paper copies is given by such
Agent or such Lender. No Agent shall have any obligation to request the delivery or to maintain
copies of the documents referred to above, and in any event shall have no responsibility to monitor
compliance by the Loan Parties with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such documents

     The Loan Parties hereby acknowledge that (a) the Administrative Agent and/or the Arrangers
will make available to the Lenders and the L/C Issuer materials and/or information provided by or
on behalf of the Loan Parties hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to
receive material non-public information with respect to the Loan Parties or their securities)
(each, a “Public Lender”). The Loan Parties hereby agree that so long as any Loan Party is
the issuer of any outstanding debt or equity securities that are registered or issued pursuant to a
private offering they will use commercially reasonable efforts to identify that portion of the
Borrower Materials that may be distributed to the Public Lenders and that (w) the Lead Borrower
shall use commercially reasonable efforts to provide that such Borrower Materials shall be clearly
and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall
appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Loan
Parties shall be deemed to have authorized the Administrative Agent, the Arrangers, the L/C Issuer
and the Lenders to treat such Borrower Materials as not containing any material non-public
information (although it may be sensitive and proprietary) with respect to the Loan Parties or
their securities for purposes of all applicable securities Laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall be treated as set
forth in Section 0); (y) all Borrower Materials marked “PUBLIC” are permitted to be made
available through a portion of the Platform designated “Public Investor”; and (z) the
Administrative Agent and the Arrangers shall be entitled to treat any Borrower Materials that are
not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated
“Public Investor.”

     Notices. Promptly, and in any event within five (5) Business Days after any Responsible
Officer of any Loan Party obtains knowledge thereof, notify the Administrative Agent (and the
Co-Collateral Agents in the case of (h), (i) or (j), below) of:

     (o) the occurrence of any Default or Event of Default;

     (p) any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect;

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     (q) the occurrence of any ERISA Event;

     (r) any material change in accounting policies or financial reporting practices by any
Loan Party;

     (s) any change in the Parent’s senior executive officers;

     (t) the discharge by any Loan Party of its present Registered Public Accounting Firm or
any withdrawal or resignation by such Registered Public Accounting Firm;

     (u) any collective bargaining agreement to which a Loan Party becomes a party;

     (v) the filing of any Lien for unpaid Taxes against any Loan Party in excess of
$500,000;

     (w) any casualty or other insured damage to any material portion of the Collateral or
the commencement of any action or proceeding for the taking of any interest in a material
portion of the Collateral under power of eminent domain or by condemnation or similar
proceeding or if any material portion of the Collateral is damaged or destroyed; and

     (x) any failure by any Loan Party to pay rent at (i) five (5%) or more of such Loan
Party’s locations, (ii) any location which is a distribution center or warehouse, or (iii)
any of such Loan Party’s locations if such failure continues for more than ten (10) days
following the day on which such rent first came due and, in any such case, such failure
would be reasonably likely to result in a Material Adverse Effect.

Each notice pursuant to this Section 6.03 shall be accompanied by a statement of a
Responsible Officer of the Lead Borrower or the Parent setting forth details of the occurrence
referred to therein and stating what action the Lead Borrower has taken and proposes to take with
respect thereto. Each notice pursuant to Section ARTICLE VI(o) shall describe with
reasonable particularity the provisions of this Agreement and any other Loan Document that have
been breached.

     Payment of Obligations. Pay and discharge as the same shall become due and payable, all its
obligations and liabilities, including (a) all tax liabilities, assessments and governmental
charges or levies upon it or its properties or assets, (b) all lawful claims (including, without
limitation, claims of landlords, warehousemen, customs brokers, and carriers) which, if unpaid,
would by law become a Lien upon its property; and (c) all Indebtedness, as and when due and
payable, but subject to any subordination provisions contained in any instrument or agreement
evidencing such Indebtedness and the other provisions of Section 7.07, to the extent
applicable, except, in each case, where (a) (i) the validity or amount thereof is being contested
in good faith by appropriate proceedings, (ii) such Loan Party has set aside on its books adequate
reserves with respect thereto in accordance with GAAP, (iii) such contest effectively suspends
collection of the contested obligation and enforcement of any Lien securing such obligation, and
(iv) no Lien has been filed with respect thereto or (b) the failure to pay or discharge the same
could not reasonably be expected to result in a Material Adverse Effect. Nothing contained herein
shall be deemed to limit the rights of the Agents with respect to establishing or modifying
Reserves in manner permitted by this Agreement.

     6.02 Preservation of Existence, Etc.

          (a) Preserve, renew and maintain in full force and effect its legal existence and good
standing under the Laws of the jurisdiction of its organization or formation except (i) in a
transaction

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permitted by Section 0 or 0 or (ii) in the case of any Americas Subsidiary
that is not a Loan Party, to the extent that failure to do so would not reasonably be expected to
have a Material Adverse Effect.

          (b) Take all reasonable action to maintain all rights, privileges, permits, licenses and
franchises necessary or desirable in the normal conduct of its business, except (i) to the extent
that failure to do so could not reasonably be expected to have a Material Adverse Effect or (ii)
pursuant to a transaction permitted by Section 0 or 0.

          (c) Preserve or renew all of its Intellectual Property, except (i) to the extent such
Intellectual Property is no longer used or useful in the conduct of the business of such Loan
Party, (ii) pursuant to a transaction permitted by Section 0 or 0 or (iii) to the
extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

     Maintenance of Properties. Maintain, preserve and protect all of its material properties and
Equipment necessary in the operation of its business in good working order and condition, ordinary
wear and tear and casualty or condemnation events excepted, and make all necessary repairs thereto
and renewals and replacements thereof, except in each case where the failure to do so could not
reasonably be expected to have a Material Adverse Effect.

     6.03 Maintenance of Insurance.

          (a) Maintain with financially sound and reputable insurance companies reasonably acceptable to
the Agents (which insurance companies are not Affiliates of the Loan Parties), insurance with
respect to its properties and business against loss or damage of the kinds customarily insured
against by Persons engaged in the same or similar business and operating in the same or similar
locations or as is required by applicable Law, of such types and in such amounts as are customarily
carried under similar circumstances by such other Persons and as are reasonably acceptable to the
Agents.

          (b) In each case except as set forth in the post-Closing Letter: Fire and extended coverage
policies maintained with respect to any Collateral shall name the Administrative Agent or the
Canadian Agent, as applicable, as a loss payee and shall be endorsed or otherwise amended to
include (i) a non-contributing mortgage clause (regarding improvements to real property) and
lenders’ loss payable clause (regarding personal property), in form and substance satisfactory to
the Agents, which endorsements or amendments shall provide that the insurer shall pay all proceeds
otherwise payable to the Loan Parties under the policies directly to the Administrative Agent or
the Canadian Agent, as applicable, (ii) a provision to the effect that none of the Loan Parties,
Credit Parties or any other Person shall be a co-insurer and (iii) such other provisions as the
Agents and the Canadian Agent may reasonably require from time to time to protect the interests of
the Credit Parties. Commercial general liability policies shall be endorsed to name the
Administrative Agent or the Canadian Agent, as applicable, as an additional insured. Business
interruption policies shall name the Administrative Agent or the Canadian Agent, as applicable, as
a loss payee and shall be endorsed or amended to include (i) a provision that, from and after the
Closing Date, the insurer shall pay all proceeds otherwise payable to the Loan Parties under the
policies directly to the Administrative Agent or the Canadian Agent, as applicable (subject to the
rights of the US Term Loan Agent, the Euro Term Loan Agent and the Term Loan Collateral Agent and
as described in the Intercreditor Agreement), (provided that unless a Cash Dominion Event
then exists, the Administrative and/or Canadian Agent shall promptly remit the proceeds to the Lead
Borrower or as the Lead Borrower may direct), (ii) a provision to the effect that none of the Loan
Parties, the Agents, the Canadian Agent or any other party shall be a co-insurer and (iii) such
other provisions as the Agents or, if applicable, the Canadian Agent, may reasonably require from
time to time to protect the interests of the Credit Parties. Each such policy referred to in this
Section 6.03(b) shall also provide that it shall not be canceled, modified or not renewed
(i) by reason of nonpayment of premium except upon not less than thirty (30) days prior written
notice thereof by the insurer to the Administrative Agent or the Canadian Agent, as applicable,
(giving such Person the right to cure defaults in the payment of premiums) or (ii) for any other
reason except upon not less than thirty (30) days prior written notice thereof by the insurer to
the Administrative Agent or the Canadian Agent, as applicable. The Lead Borrower shall deliver to
the

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Agents, and the Canadian Borrower shall deliver to the Canadian Agent, on or prior to the date
of the cancellation or expiration of any such policy of insurance, or modification materially
reducing the scope or amount of coverage of such policies of insurance, a copy of any applicable
renewal or replacement insurance certificate.

          (c) None of the Credit Parties, or their agents or employees shall be liable for any loss or
damage insured by the insurance policies required to be maintained under this Section 6.03.
Each Loan Party shall look solely to its insurance companies or any other parties other than the
Credit Parties for the recovery of such loss or damage and such insurance companies shall have no
rights of subrogation against any Credit Party or its agents or employees. If, however, the
insurance policies do not provide waiver of subrogation rights against such parties, as required
above, then the Loan Parties hereby agree, to the extent permitted by law, to waive their right of
recovery, if any, against the Credit Parties and their agents and employees. The designation of
any form, type or amount of insurance coverage by the any Credit Party under this Section
6.03 shall in no event be deemed a representation, warranty or advice by such Credit Party that
such insurance is adequate for the purposes of the business of the Loan Parties or the protection
of their properties.

          (d) Maintain for themselves and their Americas Subsidiaries, a Directors and Officers
insurance policy, and a “Blanket Crime” policy including employee dishonesty, forgery or
alteration, theft, disappearance and destruction, robbery and safe burglary, property, and computer
fraud coverage with responsible companies in such amounts as are customarily carried by business
entities engaged in similar businesses similarly situated, and will upon request by any Agent,
furnish the Administrative Agent certificates evidencing renewal of each such policy.

     Compliance with Laws. Comply, and cause each Subsidiary to comply, with the requirements of
all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or
property, except in such instances in which (a)(i) such requirement of Law or order, writ,
injunction or decree is being contested in good faith by appropriate proceedings diligently
conducted and with respect to which adequate reserves have been set aside and maintained by the
Loan Parties in accordance with GAAP; and (ii) such contest effectively suspends enforcement of
the contested Laws, or (b) the failure to comply therewith could not reasonably be expected to have
a Material Adverse Effect. Nothing contained herein shall be deemed to limit the rights of the
Agents or the Canadian Agent with respect to establishing or modifying Reserves in a manner
permitted by this Agreement.

     6.04 Books and Records.

     (i) Maintain proper books of record and account, in which entries full, true and correct in
all material respects and in conformity with GAAP consistently applied shall be made of all
financial transactions and matters involving the assets and business of the Loan Parties or such
Americas Subsidiary, as the case may be; and (ii) maintain such books of record and account in
material conformity with all applicable requirements of any Governmental Authority having
regulatory jurisdiction over the Loan Parties or such Subsidiary, as the case may be.

     6.05 Inspection Rights.

          (a) Permit representatives and independent contractors of the Co-Collateral Agents (acting in
consultation with the Administrative Agent) to visit and inspect any of its properties, to examine
its corporate, financial and operating records, and insurance policies, and make copies thereof or
abstracts therefrom, and to discuss its affairs, finances and accounts with its directors,
officers, and (in the presence of a Responsible Officer of the Parent or the Lead Borrower)
Registered Public Accounting Firm, all at the expense of the Loan Parties and at such reasonable
times during normal business hours and as often as may be reasonably desired, upon reasonable
advance notice to the Lead Borrower; provided, however, that when an Event of Default
exists the Co-Collateral Agents (acting in consultation with the Administrative Agent) (or any of
their representatives or independent contractors) may do any of

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the foregoing at the expense of the Loan Parties at any time during normal business hours and
without advance notice.

          (b) Upon the request of any Co-Collateral Agent (acting in consultation with the
Administrative Agent) after reasonable prior notice, permit such Co-Collateral Agent (acting in
consultation with the Administrative Agent) or professionals (including investment bankers,
consultants, accountants, lawyers and appraisers) retained by the Administrative Agent to conduct
appraisals, commercial finance examinations and other evaluations, including, without limitation,
of (i) the Lead Borrower’s practices in the computation of the Domestic Borrowing Base and the
Canadian Borrower’s practices in the computation of the Canadian Borrowing Base and (ii) the assets
included in the Domestic Borrowing Base and the Canadian Borrowing Base, respectively, and related
financial information such as, but not limited to, sales, gross margins, payables, accruals and
reserves. Subject to the following sentence, the Loan Parties shall pay the reasonable and
documented out-of-pocket fees and expenses of any of the Administrative Agent and the Co-Collateral
Agents and such professionals with respect to such evaluations and appraisals. Without limiting
the foregoing, the Loan Parties acknowledge that (A) subject to clause (B) below, the Co-Collateral
Agents (acting in consultation with the Administrative Agent) shall undertake up to two (2)
inventory appraisals and two (2) commercial finance examinations each Fiscal Year for each of the
Domestic Borrowers and the Canadian Loan Parties at the Loan Parties’ expense, and (B) if the
Domestic Borrowers fail to maintain Domestic Availability, for three (3) consecutive Business Days,
at least equal to the greater of (x) thirty percent (30%) of the Total Loan Cap and (y)
$45,000,000, the Co-Collateral Agents (acting in consultation with the Administrative Agent) shall
undertake up to three (3) inventory appraisals and three (3) commercial finance examinations each
Fiscal Year for each of the Borrowing Base Parties at the Loan Parties’ expense. Notwithstanding
the foregoing, any Co-Collateral Agent (acting in consultation with the Administrative Agent) may
cause additional appraisals and commercial finance examinations to be undertaken (i) as it in its
Permitted Discretion deems necessary or appropriate, at its own expense or, (ii) if required by
applicable Law or if a Default shall have occurred and be continuing, at the expense of the Loan
Parties. In all events, any professional engaged to perform any evaluations, appraisals,
commercial finance examinations or other services pursuant to this clause (b) shall be retained by
the Administrative Agent and no other Person.

          (c) Notwithstanding anything to the contrary in this Section 6.05, none of the Parent
or any of its Subsidiaries will be required to disclose, permit the inspection, examination or
making of extracts, or discussion of, any documents, information or other matter that
(i) constitutes non-financial trade secrets or non-financial proprietary information, (ii) in
respect of which disclosure to the Agents, the Canadian Agent, any Lender (or any of their
representatives) is then prohibited by Law or any agreement binding on the Parent or any of its
Subsidiaries or (iii) is subject to attorney-client or similar privilege or constitutes attorney
work-product.

     Use of Proceeds. Use the proceeds of the Credit Extensions only (a) to refinance Indebtedness
of the Parent and its Subsidiaries under the Existing Credit Agreement, (b) to finance transaction
fees and expenses related hereto, (c) to finance the acquisition of working capital assets of the
Loan Parties, including the purchase of Inventory and Equipment, in each case, in the ordinary
course of business, (d) to finance Capital Expenditures of the Loan Parties, and (e) for other
general corporate purposes of the Loan Parties, in each case to the extent not prohibited under
applicable Law and the Loan Documents.

     6.06 Additional Loan Parties.

          (a) Notify the Administrative Agent promptly after any Person becomes a Domestic Subsidiary
that is a Wholly Owned Subsidiary of any Domestic Loan Party (other than any Immaterial
Subsidiary), and promptly thereafter (and in any event within thirty (30) days or such longer
period as the Agents may agree), (a) cause any such Domestic Subsidiary that is a Wholly Owned
Subsidiary (other than any Immaterial Subsidiary) to (i) become a Domestic Borrower or Guarantor by
executing and delivering to the Administrative Agent a Joinder Agreement, and, in the case of a
Guarantor, a Facility Guaranty (or a counterpart or supplement thereto), (ii) grant a Lien to the
Administrative Agent on such

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Person’s assets to the extent required by the Security Documents, and (iii) deliver to the
Administrative Agent documents of the types referred to in clauses (iii), (iv), (xiv) and (xv) of
Section ARTICLE IV(a) and, if requested by the Administrative Agent, customary opinions of
counsel to such Person (which shall cover, among other things, the legality, validity, binding
effect and enforceability of the documentation referred to in clause (a)), and (b) if any Equity
Interests or Indebtedness of such Person are owned by any Domestic Loan Party, such Domestic Loan
Party shall pledge such Equity Interests and promissory notes evidencing such Indebtedness (if any)
(except that, if such Subsidiary is a CFC, the Equity Interests of such Subsidiary will not be
required to be pledged), in the manner and format required by the Pledge Agreement; provided
that, no Equity Interests of any Foreign Subsidiary which is not a Canadian Loan Party shall be
required to be pledged.

          (b) Notify the Canadian Agent promptly after any Person becomes a Canadian Subsidiary that is
a Wholly Owned Subsidiary of any Canadian Loan Party (other than any Immaterial Subsidiary), and
promptly thereafter (and in any event within thirty (30) days or such longer period as the Canadian
Agent may agree), (a) cause any such Canadian Subsidiary that is a Wholly Owned Subsidiary (other
than any Immaterial Subsidiary) to (i) become a Guarantor of the Canadian Liabilities by executing
and delivering to the Canadian Agent a Joinder Agreement and a Facility Guaranty (or a counterpart
or supplement thereto), (ii) grant a Lien to the Canadian Agent on such Person’s assets to secure
the Canadian Liabilities by executing and delivering to the Canadian Agent Canadian Security
Documents, to the extent required by the Security Documents, and (iii) deliver to the Canadian
Agent documents of the types referred to in clauses (iii) and (iv) of Section ARTICLE IV(a)
and, if requested by the Canadian Agent, customary opinions of counsel to such Person (which shall
cover, among other things, the legality, validity, binding effect and enforceability of the
documentation referred to in clause (a)), and (b) if any Equity Interests or Indebtedness of such
Person are owned by any Canadian Loan Party, such Canadian Loan Party shall pledge such Equity
Interests and promissory notes evidencing such Indebtedness (if any) (except that, if such
Subsidiary is a CFC, the Equity Interests of such Subsidiary will not be required to be pledged),
in the manner and format required by the Pledge Agreement; provided that, no Equity
Interests of any Foreign Subsidiary which is not a Canadian Loan Party, and no Equity Interests of
any unlimited company incorporated or amalgamated and existing under the laws of the Province of
Nova Scotia, shall be required to be pledged.

          (c) In no event shall compliance with this Section 6.06 waive or be deemed a waiver or
Consent to any transaction giving rise to the need to comply with this Section 6.06 if such
transaction was not otherwise expressly permitted by this Agreement or constitute or be deemed to
constitute, with respect to any Subsidiary, an approval of such Person as a Borrowing Base Party or
permit the inclusion of any acquired assets in the computation of the Domestic Borrowing Base or
the Canadian Borrowing Base, as applicable.

     6.07 Cash Management.

          (a) On or prior to the Closing Date or such later dates specified in the Post-Closing Letter:

          (i) deliver to the Administrative Agent (with respect to the Domestic Loan Parties) and
the Canadian Agent (with respect to the Canadian Loan Parties) copies of notifications
(each, a “Credit Card Notification”) substantially in the form attached hereto as
Exhibit H which have been executed on behalf of such Loan Party and delivered to
such Loan Party’s credit card clearinghouses and processors listed on Schedule
5.21(b); and

          (ii) enter into a Blocked Account Agreement with each Blocked Account Bank maintained
by the Loan Parties as of the Closing Date with respect to each DDA specified by the Agents
(other than payroll and other specific DDAs as may be acceptable to the Agents) established
or maintained by any Loan Party as of the Closing Date with such Blocked Account Bank
(collectively, the “Blocked Accounts”).

          (b) Subject to the terms of the Post-Closing Letter, the Loan Parties shall ACH or wire
transfer no less frequently than once each Business Day (and whether or not there are then any

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outstanding Obligations) to a Blocked Account all amounts on deposit in each such DDA (net of
such minimum balance consistent with past practices, but not to exceed $200,000 in the aggregate
for all DDAs in any event) and all payments received by any Loan Party from credit card processors.

     (c) After the occurrence and during the continuance of a Cash Dominion Event (and delivery of
notice thereof from the Administrative Agent or the Canadian Agent, as applicable, to the Lead
Borrower and the applicable Blocked Account Bank), the Loan Parties and each Blocked Account Bank
shall ACH or wire transfer no less frequently than once each Business Day (and whether or not there
are then any outstanding Obligations) to the concentration account maintained by the Administrative
Agent at Bank of America (the “Domestic Concentration Account”) (in the case of any
Domestic Loan Party) or maintained by the Canadian Agent at Bank of America-Canada Branch (the
“Canadian Concentration Account”) (in the case of any Canadian Loan Party) all cash
receipts and collections by the Loan Parties (other than Operating Cash, and Cash Equivalents being
held in accordance with the terms of the proviso at the end of the definition of “Permitted
Investments”), including, without limitation, the following:

          (i) all available cash receipts of the Loan Parties from the sale of Inventory and
other assets (other than Operating Cash);

          (ii) all proceeds of collections of Accounts of the Loan Parties;

          (iii) all other cash payments received by a Loan Party from any Person or from any
source or on account of any sale or other transaction or event, including, without
limitation, all Net Proceeds from any Prepayment Event;

          (iv) the then cash balance of each DDA (net of any minimum balance, not to exceed
$200,000 in the aggregate) for all DDAs combined;

          (v) the then entire ledger balance of each Blocked Account (net of any minimum balance,
not to exceed $200,000 in the aggregate) for all Blocked Accounts combined; and

          (vi) the cash proceeds of all credit card charges received by any Loan Party.

          (d) The Domestic Concentration Account shall at all times be under the sole dominion and
control of the Administrative Agent, and the Canadian Concentration Account shall at all times be
under the sole dominion and control of the Canadian Agent. The Loan Parties hereby acknowledge and
agree that (i) the Loan Parties have no right of withdrawal from the Domestic Concentration Account
or the Canadian Concentration Account, (ii) the funds on deposit in each Domestic Concentration
Account shall at all times be collateral security for the Secured Obligations (as defined in the
Security Agreement), (iii) the funds on deposit in each Canadian Concentration Account shall at all
times be collateral security for all of the Canadian Liabilities and (iv) the funds on deposit in
the Domestic Concentration Account and the Canadian Concentration Account shall be applied as
provided in Section 2.05 of this Agreement. In the event that, notwithstanding the
provisions of this Section 6.07, any Domestic Loan Party or Canadian Loan Party receives or
otherwise has dominion and control of any such proceeds or collections (other than Operating Cash,
and Cash Equivalents being held in accordance with the terms of the proviso at the end of the
definition of “Permitted Investments”) while a Cash Dominion Event Exists, such proceeds and
collections shall be held in trust by such Domestic Loan Party for the Administrative Agent and by
such Canadian Loan Party for the Canadian Agent, shall not be commingled with any of such Loan
Party’s other funds or deposited in any account of such Loan Party and shall, not later than the
Business Day after receipt thereof, be deposited into the Domestic Concentration Account or the
Canadian Concentration Account, as applicable, or dealt with in such other fashion as such Loan
Party may be instructed by the Administrative Agent or the Canadian Agent, as applicable.

          (e) Upon the request of the Administrative Agent, the Domestic Loan Parties shall cause bank
statements and/or other reports to be delivered to the Administrative Agent not less often than
monthly, accurately setting forth all amounts deposited in each Blocked Account to ensure the
proper transfer of funds as set forth above. Upon the request of the Canadian Agent, the Canadian
Loan Parties shall cause bank statements and/or other reports to be delivered to the Administrative
Agent not less often

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than monthly, accurately setting forth all amounts deposited in each Blocked Account to ensure
the proper transfer of funds as set forth above. So long as no Cash Dominion Event has occurred
and is continuing, the Loan Parties may direct, and shall have sole control over, the manner of
disposition of funds in the Blocked Accounts. Any amounts held or received in the Domestic
Concentration Account at any time when no Cash Dominion Event exists or while no Loans are
outstanding (except as provided in Section 8.02) shall be promptly remitted to an account
of the Lead Borrower, or as the Lead Borrower may otherwise direct. Any amounts held or received
in the Canadian Concentration Account at any time when no Cash Dominion Event exists or while no
Loans are outstanding (except as provided in Section 8.02) shall be promptly remitted to an
account of the Canadian Borrower or as the Canadian Borrower may otherwise direct.

          (f) The Loan Parties shall not permit cash in an aggregate amount in excess of 10% of the
aggregate of the Domestic Borrowing Base and the Canadian Borrowing Base, each as then in effect
(other than (i) “store” cash, cash held in local, non-concentration deposit accounts, cash in
transit between stores and depository accounts and cash receipts from sales in the process of
inter-account transfers, in each case as a result of the ordinary course operations of the Loan
Parties, and (ii) to the extent necessary for the Loan Parties to satisfy in the ordinary course of
their business the current liabilities incurred by them in the ordinary course of their business
and without acceleration of the satisfaction of such current liabilities) to accumulate and be
maintained in the deposit accounts or Cash Equivalents of the Loan Parties; provided, however, that
the Loan Parties’ obligations under this Section 6.13(f) shall be suspended if and for so
long as there are no Loans outstanding.

     6.08 Information Regarding the Collateral.

     Furnish to the Administrative Agent at least fifteen (15) days’ (or such shorter period as the
Administrative Agent shall agree) prior written notice of any change in: (i) any Loan Party’s legal
name; (ii) the location of any Loan Party’s chief executive office or its principal place of
business; (iii) any Loan Party’s organizational type or jurisdiction of incorporation or formation;
or (iv) any Loan Party’s Federal Taxpayer Identification Number or organizational identification
number assigned to it by its jurisdiction of organization. The Loan Parties agree not to effect or
permit any change referred to in the preceding sentence unless all filings have been made under the
UCC, PPSA or otherwise that are required in order for the Administrative Agent or the Canadian
Agent, as applicable, to continue, following such change, to have a valid, legal and perfected
security interest in the Collateral for its own benefit and the benefit of the other applicable
Credit Parties (to the extent a security interest in such Collateral can be perfected by the filing
of a financing statement under the UCC or a filing under the PPSA).

     6.09 Physical Inventories.

          (a) Cause (i) not less than two (2) physical inventories of raw materials to be undertaken, at
the expense of the Loan Parties, in each twelve (12) month period, conducted by a Loan Party or
such other inventory takers as are reasonably satisfactory to the Co-Collateral Agents and
following such methodology as is consistent with the methodology used in the immediately preceding
inventory or as otherwise may be reasonably satisfactory to the Co-Collateral Agents and (ii) daily
cycle counts of finished goods located at distribution centers, in each case consistent with past
practices; provided, however, until such time as the Canadian Borrower transitions
to periodic cycle counts with respect to its Inventory, (x) any physical inventory undertaken by
the Canadian Borrower shall only include finished goods and (y) the Canadian Borrower shall not be
required to comply with clause (ii) above. In the event that at any time Domestic Availability is
less than twenty-five percent (25%) of the Total Loan Cap, any Agent may require that in addition
to the two (2) physical inventories of raw materials, an additional physical inventory of all
inventory be undertaken, at the expense of the Loan Parties, in the manner described above, during
such twelve (12) month period. The Co-Collateral Agents, at the expense of the Loan Parties, may
participate in and/or observe each scheduled physical count of Inventory which is undertaken on
behalf of any Loan Party. The Lead Borrower (with respect to the

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inventory of the Domestic Loan Parties) and the Canadian Borrower (with respect to the
inventory of the Canadian Loan Parties), within twenty (20) days following the completion of such
physical inventory, shall provide the Administrative Agent or the Canadian Agent, as applicable,
with a reconciliation of the results of such physical inventory (as well as of any other physical
inventory) and shall post such results to the Loan Parties’ stock ledgers and general ledgers, as
applicable. At the request of the Administrative Agent, the Lead Borrower shall, within thirty (30)
days after such request, provide the Administrative Agent a summary of the average daily cycle
count for the most recently ended Fiscal Quarter.

          (b) Any Agent (after consultation with the Administrative Agent), in its discretion, if any
Default or Event of Default exists, may cause additional inventories to be taken as such Agent
determines (each, at the expense of the Loan Parties).

     6.10 Environmental Laws.

          (a) Conduct, and cause each Subsidiary to conduct, its operations in compliance with all
Environmental Laws, except where the failure to do so would not reasonably be expected to have a
Material Adverse Effect; (b) obtain and renew, and cause each Subsidiary to obtain and renew, all
Environmental Permits required for its operations, except where the failure to do so would not
reasonably be expected to have a Material Adverse Effect; and (c) implement, and cause each
Subsidiary to implement, any and all investigation, remediation, removal and response actions that
are required under applicable Environmental Laws to prevent the release of any Hazardous Materials
on, at, or from any of its Real Estate; provided, however, that neither a Loan
Party nor any of its Subsidiaries shall be required to undertake any such investigation, cleanup,
removal, remedial or other action to the extent that (i) its obligation to do so is being contested
in good faith and by proper proceedings and adequate reserves have been set aside and are being
maintained by the Loan Parties with respect to such circumstances in accordance with GAAP or (ii)
failure to undertake any investigation, clean up, removal, remedial or other action would not
reasonably be expected to have a Material Adverse Effect. Nothing contained herein shall be deemed
to limit the rights of the Agents or the Canadian Agent with respect to establishing or modifying
Reserves in a manner permitted by this Agreement.

     6.11 Further Assurances.

          (a) Execute any and all further documents, financing statements, filings, agreements and
instruments, and take all such further actions (including the filing and recording of financing
statements, amendments to financing statements or other documents under the UCC, the PPSA or any
other similar legislation), that may be required under any applicable Law, or which any Agent or
the Canadian Agent may reasonably request, to grant, preserve, protect or perfect the Liens created
or intended to be created by the Security Documents or the validity or priority of any such Lien,
all at the expense of the Loan Parties and to the extent required by, and subject to the
limitations set forth in, the Security Documents and this Agreement.

          (b) If any material personal property assets are acquired by any Loan Party after the Closing
Date (other than assets constituting Collateral under the Security Documents that become subject to
the Lien of the Security Documents upon acquisition thereof), notify the Agents thereof (in the
case of Intellectual Property, solely with respect to Intellectual Property which is the subject of
a registration or application with the PTO, Copyright Office or CIPO and within the time frames
set forth in Schedule 6.02), and the Loan Parties will cause such assets to be subjected to
a perfected Lien securing the Secured Obligations (as defined in the Security Agreement) of the
Domestic Loan Parties (in the case of a Domestic Loan Party) or the Canadian Liabilities (in the
case of a Canadian Loan Party), as applicable, and will take such actions as shall be necessary or
shall be requested by any Agent or the Canadian Agent, as applicable, to grant and perfect such
Liens, in each case to the extent required by, and subject to the limitations set forth in, the
Security Documents and this Agreement, including actions described in paragraph (a) of this
Section 6.11, all at the expense of the Loan Parties. In no event shall compliance with
this Section 6.11(b) waive or be deemed a waiver or Consent to any transaction giving rise
to the need to comply with this Section 6.11(b) if such transaction was not otherwise
expressly permitted by this

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Agreement or constitute or be deemed to constitute Consent to the inclusion of any acquired
assets in the computation of the Borrowing Base.

          (c) If, after the Closing Date, any Loan Party acquires a fee interest in real property
located in the United States with a fair market value of $5.0 million or more (other than to the
extent such real property was financed through the incurrence of any Indebtedness permitted by
Section 7.03), such Loan Party shall notify the Administrative Agent and, if requested by any
Agent, take such actions and execute such documents as any Agent shall reasonably require to create
a mortgage Lien on such real property.

     6.12 Intentionally Omitted

     Material Contracts. In each case, exclusive of the Term Loan Documents or the Senior Note
Indenture or any other Material Contract relating to Material Indebtedness, perform and observe all
the terms and provisions of each Material Contract to be performed or observed by it, maintain each
such Material Contract in full force and effect (other than expirations pursuant to the terms
thereof), and enforce each such Material Contract in accordance with its terms.

     6.13 Canadian Pension Benefit Plans.

     Each Canadian Loan Party shall cause each of its Canadian Pension Plans to be duly qualified
and administered in all respects in compliance with, as applicable, the Supplemental Pension Plans
Act (Quebec) and the Pension Benefits Act (Ontario) and all other applicable laws (including
regulations, orders and directives), and the terms of the Canadian Pension Plans and any agreements
relating thereto. Each Canadian Loan Party shall ensure:

     (a) it has no unfunded, solvency, or deficiency on windup liability and no accumulated
funding deficiency (whether or not waived), or any amount of unfunded benefit liabilities in
respect of any Canadian Pension Plan, including any Canadian Pension Plan to be established
and administered by it or them;

     (b) all amounts required to be paid by it or them are paid when due;

     (c) no liability upon it or them or Lien on any of its or their asset property arises
or exists in respect of any Canadian Pension Plan;

     (d) it makes all required contributions to any Canadian Pension Plan when due; and

     (e) it does not engage in a prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Canadian Pension Plan that could reasonably be
expected to result in liability.

ARTICLE VII

NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied (other than contingent indemnification Obligations for
which a claim has not then been asserted), or any Letter of Credit shall remain outstanding, no
Loan Party shall, nor shall it permit any Americas Subsidiary to, directly or indirectly:

     Liens. Create, incur, assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, or sign or file under the UCC, the PPSA or any
similar Law or statute of any jurisdiction a financing statement or similar document that names any
Loan

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Party or any Americas Subsidiary as debtor; or sign or authorize any security agreement
authorizing any Person thereunder to file such financing statement or similar document other than,
as to all of the above, Permitted Encumbrances.

     Investments. Make any Investments, except Permitted Investments.

     Indebtedness. Create, incur, assume, guarantee, suffer to exist or otherwise become or remain
liable with respect to, any Indebtedness, except Permitted Indebtedness. The accrual of interest
and the accretion or amortization of original issue discount on Indebtedness and the payment of
interest in the form of additional Indebtedness originally incurred in accordance with this
Section 0 will not constitute an incurrence of Indebtedness. In the event that any item of
Indebtedness meets more than one of the categories set forth in the definition of “Permitted
Indebtedness”, the Lead Borrower may classify such item of Indebtedness and only be required to
include the amount and type of such Indebtedness in one or more of such clauses, at its election.
For purposes of determining compliance with any Dollar-denominated restriction on the incurrence of
Indebtedness, the Dollar-equivalent principal amount of Indebtedness denominated in a foreign
currency shall be calculated based on the relevant currency exchange rate in effect on the date
such Indebtedness was incurred, in the case of term debt, or first committed, in the case of
revolving credit debt; provided that if such Indebtedness is incurred to extend, replace,
refund, refinance, renew or defease other Indebtedness denominated in a foreign currency, and such
extension, replacement, refunding, refinancing, renewal or defeasance would cause the applicable
Dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate
in effect on the date of such extension, replacement, refunding, refinancing, renewal or
defeasance, such Dollar-denominated restriction shall be deemed not to have been exceeded so long
as the principal amount of such refinancing Indebtedness does not exceed the principal amount of
such Indebtedness being extended, replaced, refunded, refinanced, renewed or defeased.

     Fundamental Changes. Merge, amalgamate, dissolve, liquidate, consolidate with or into another
Person, except that, so long as no Default or Event of Default shall have occurred and be
continuing prior to, or immediately after giving effect to, any action described below or would
result therefrom:

     (a) any Subsidiary which is not a Loan Party may merge, amalgamate or consolidate with
or into (i) a Loan Party, provided that a Loan Party shall be the continuing or
surviving Person, or (ii) any one or more other Subsidiaries which are not Loan Parties,
provided that when any Americas Subsidiary that is a Wholly-Owned Subsidiary is
merging or amalgamating with another Subsidiary, a Wholly-Owned Subsidiary shall be the
continuing or surviving Person;

     (b) any Loan Party or any Subsidiary which is a Loan Party may merge, amalgamate, or
consolidate with or into any other Subsidiary which is a Loan Party, provided that
in any merger, amalgamation or consolidation involving a Borrowing Base Party, a Borrowing
Base Party shall be the continuing or surviving Person;

     (c) in connection with a Permitted Investment, any Loan Party or any Americas
Subsidiary may merge, amalgamate with or into or consolidate with any other Person or permit
any other Person to merge with or into or consolidate with it; provided that in any
merger, amalgamation or consolidation involving a Loan Party, a Loan Party is the surviving
Person;

     (d) (i) any Loan Party or any Americas Subsidiary may Dispose of all or substantially
all of its assets (upon voluntary liquidation or otherwise) to another Loan Party; and (ii)
any Subsidiary which is not a Loan Party may Dispose of all or substantially all of its
assets (upon voluntary liquidation or otherwise) to another Subsidiary which is not a Loan
Party; and

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     (e) any Guarantor or any Subsidiary which is not a Loan Party may liquidate or dissolve
or change its legal form if the Parent determines in good faith that such action is in the
best interests of the Parent and its Subsidiaries and is not materially disadvantageous to
the Lenders.

     Dispositions. Make any Disposition, except Permitted Dispositions. To the extent any
Collateral is Disposed of as permitted by this Section 0 to any Person other than any Loan
Party, such Collateral shall be sold free and clear of the Liens created by the Loan Documents.

     Restricted Payments. Declare or make, directly or indirectly, any Restricted Payment, except:

     (f) each Loan Party and each Americas Subsidiary may make Restricted Payments to any
Loan Party;

     (g) the Loan Parties and each Americas Subsidiary may declare and make dividend
payments or other distributions payable solely in Equity Interests (other than Disqualified
Stock not otherwise permitted by Section 0);

     (h) each Americas Subsidiary that is not a Loan Party may make Restricted Payments to
any other Americas Subsidiary that is not a Loan Party;

     (i) the Parent may pay for and otherwise effect the repurchase, retirement or other
acquisition or retirement for value of Equity Interests of the Parent by any employee,
director or officer of the Parent or any of its Subsidiaries pursuant to any equity plan,
stock option plan or any other benefit plan or any agreement with any employee, director or
officer of the Parent or any of its Subsidiaries; provided that the aggregate amount
of Restricted Payments made pursuant to this clause (d) shall not exceed $1,000,000 in any
calendar year;

     (j) any Loan Party and each Americas Subsidiary may (i) pay cash in lieu of fractional
Equity Interests in connection with any dividend, split or combination thereof or any
Permitted Investment and (ii) honor any conversion request by a holder of convertible
Indebtedness and make cash payments in lieu of fractional shares in connection with any such
conversion;

     (k) any Canadian Subsidiary may make Restricted Payments to any direct or indirect
Subsidiary of the Parent so long as an amount equal to such Restricted Payments made by such
Canadian Subsidiary is transferred to a Domestic Loan Party substantially concurrently with
such Restricted Payment; and

     (l) if the Payment Conditions are satisfied, the Loan Parties and each Americas
Subsidiary may make Restricted Payments in addition to those set forth in clauses (a)
through (f) above.

     Prepayments of Indebtedness. Prepay, redeem, purchase, defease or otherwise satisfy prior to
the scheduled maturity thereof in any manner any Permitted Indebtedness (other than the Obligations
or Indebtedness between Loan Parties), or make any payment in violation of any subordination terms
of any Subordinated Indebtedness, except (a) as long as no Event of Default then exists or would
arise therefrom, regularly scheduled or mandatory repayments, repurchases, redemptions, defeasances
or other satisfaction of Permitted Indebtedness (other than Subordinated Indebtedness), (b) as long
as no Event of Default has occurred and is continuing, voluntary prepayments, redemptions,
repurchases, defeasances or other satisfaction of Permitted Indebtedness (but excluding any payment
in violation of the subordination terms

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of any Subordinated Indebtedness) (i) in an amount less than $6,000,000 in the aggregate
during the Availability Period as long as the Availability Condition is satisfied, or (ii)
constituting intercompany Indebtedness owing by a Loan Party to any Subsidiary that is not a Loan
Party so long as an amount equal to such amount prepaid, redeemed, purchased or otherwise satisfied
is transferred to a Loan Party substantially concurrently with such prepayment, redemption,
purchase or other satisfaction, (c) as long as no Event of Default then exists, repayments and
prepayments of Subordinated Indebtedness in accordance with the subordination terms thereof, (d)
voluntary prepayments, repurchases, redemptions, defeasances or other satisfaction of Permitted
Indebtedness (but excluding on account of any Subordinated Indebtedness) as long as the Payment
Conditions are satisfied, and (e) any Permitted Amendment/Refinancings of such Indebtedness.

     7.02 Change in Nature of Business

     Engage in any line of business substantially different from the lines of business conducted by
such Loan Parties and their Subsidiaries on the date hereof or any business substantially related
or incidental thereto.

     Transactions with Affiliates. Enter into, renew, extend or be a party to any transaction of
any kind with any Affiliate of any Loan Party, whether or not in the ordinary course of business,
other than on fair and reasonable terms substantially as favorable to the Loan Parties or such
Americas Subsidiary as would be obtainable by the Loan Parties or such Americas Subsidiary at the
time in a comparable arm’s length transaction with a Person other than an Affiliate,
provided that the foregoing restriction shall not apply to (a) a transaction between or
among the Loan Parties not prohibited hereunder; (b) transactions not otherwise prohibited
hereunder between or among the Parent or any Subsidiary or any entity that becomes a Subsidiary as
a result of such transaction; (c) equity issuances, repurchases, retirements or other acquisitions
or retirements of Equity Interests by the Parent permitted under Section 0; (d) the
transactions occurring on the Closing Date and the payment of fees and expenses related thereto;
(e) the issuance of Equity Interests to any officer, director, employee or consultant of the Parent
or any of its Subsidiaries; (f) transactions, arrangements, reimbursements and indemnities
permitted between or among such parties under this Agreement; (g) the payment of reasonable fees
and out-of-pocket costs to directors, and compensation and employee benefit arrangements paid to,
and indemnities provided for the benefit of, directors, officers or employees of the Parent or any
of its Subsidiaries; (h) any issuances of securities or other payments, awards or grants in cash,
securities or otherwise pursuant to, or the funding of, employment agreements, stock options and
stock ownership plans of the Parent or any of its Subsidiaries; (i) any transfers by or among any
Affiliates to pay tax liabilities, or (j) transactions pursuant to and in connection with the Term
Loan Documents (including the issuance of warrants in connection therewith and any Permitted
Amendment/Refinancing thereof).

     Burdensome Agreements. Enter into or permit to exist any Contractual Obligation (other than
(x) this Agreement or any other Loan Document or (y) the Term Loan Credit Agreements or any
document relating thereto or (z) the Senior Note Indenture or any Permitted Amendment/Refinancing
of any of the foregoing) that limits the ability (i) any Americas Subsidiary that is not a Loan
Party to make Restricted Payments to any Loan Party or (ii) of the Loan Parties to create, incur,
assume or suffer to exist Liens on property of such Person in favor of the Administrative Agent or
the Canadian Agent, as applicable, under the Loan Documents; provided, however,
that none of the foregoing shall prohibit (A) any negative pledge incurred or provided in favor of
any holder of Indebtedness permitted under clauses (c) or (f) of the definition of Permitted
Indebtedness solely to the extent any such negative pledge relates to the property financed by or
the subject of such Indebtedness; (B) customary anti-assignment provisions in contracts restricting
the assignment thereof or in contracts for the Disposition of any assets or any Person, provided
that the restrictions in any such contract shall apply only to the assets or Person that is to be
Disposed of; (C) provisions in leases of real property that prohibit mortgages or pledges of the
lessee’s

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interest under such lease or restricting subletting or assignment of such lease; (D) customary
provisions in joint venture agreements and other similar agreements applicable to joint ventures to
the extent such joint ventures are not prohibited hereunder; (E) customary restrictions arising
under licenses and other contracts entered into in the ordinary course of business; (F) Contractual
Obligations which (x) exist on the date hereof and (to the extent not otherwise permitted by this
Section 0) are listed on Schedule 0 hereto and (y) to the extent Contractual
Obligations permitted by clause (x) are set forth in an agreement evidencing Indebtedness, are set
forth in any agreement evidencing any permitted renewal, extension or refinancing of such
Indebtedness so long as such renewal, extension or refinancing does not expand the scope of such
Contractual Obligation; or (G) Contractual Obligations which are binding on a Subsidiary at the
time such Subsidiary first becomes a Subsidiary, so long as such Contractual Obligations were not
entered into in contemplation of such Person becoming a Subsidiary.

     Use of Proceeds. Use the proceeds of any Credit Extension in a manner inconsistent with
Section 6.11 or in any manner which violates Regulations T, U or X of the FRB.

     7.03 Amendment of Material Documents.

     Amend, modify or waive any of a Loan Party’s rights under (a) its Organization Documents in a
manner materially adverse to the Credit Parties, or (b) any Material Contract (other than any Loan
Document) or Material Indebtedness (other than on account of any refinancing or Permitted
Amendment/Refinancing otherwise permitted hereunder), in each case to the extent that such
amendment, modification or waiver would be reasonably likely to have a Material Adverse Effect.

     7.04 Fiscal Year.

     Change the Fiscal Year of any Loan Party without the prior consent of the Administrative
Agent, except as required by GAAP.

     7.05 Deposit Accounts; Credit Card Processors.

     In the case of any Loan Party, open new Blocked Accounts or engage any new credit card
processors unless the Loan Parties shall have delivered to the Administrative Agent appropriate
Blocked Account Agreements or Credit Card Notifications, as applicable, consistent with the
provisions of Section 6.07 or otherwise reasonably satisfactory to the Agents and, if
applicable, the Canadian Agent.

     7.06 Financial Covenants.

          (a) Consolidated Fixed Charge Coverage Ratio. During the continuance of a Covenant
Compliance Event, permit the Consolidated Fixed Charge Coverage Ratio, calculated as of the last
day of each Measurement Period during such continuation, to be less than 1.1:1.0.

          (b) Availability. Permit Domestic Availability at any time to be less than or equal
to seven and one half percent (7.5%) of the Total Loan Cap.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

     Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment. Any Borrower or any other Loan Party fails to pay when and as
required to be paid herein, (i) any amount of principal of any Loan or any L/C Obligation,
or

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deposit any funds as Cash Collateral in respect of L/C Obligations, or (ii) any
interest on any Loan or on any L/C Obligation, or any fee due hereunder, which failure
continues for two (2) Business Days, or (iii) any other amount payable hereunder or under
any other Loan Document which failure continues for two (2) Business Days; or

     (b) Specific Covenants. Any Loan Party fails to perform or observe any term,
covenant or agreement contained in any of Section 0, 6.02 (exclusive of Section
6.02(f)), 0, 6.02, 6.03, 6.05, 0, 6.06,
6.07, 6.08 or Article VII; or any Loan Party fails to deliver any
one or more of the financial and collateral reports described on Schedule 6.02
hereto, no later than the times set forth in such Schedule, and such failure continues for
three (3) Business Days after notice thereof by the Administrative Agent to the Lead
Borrower, or

     (c) Other Defaults. Any Loan Party fails to perform or observe any other
covenant or agreement (not specified in subsection (a) or (b) above) contained in any Loan
Document on its part to be performed or observed and such failure continues for 30 days
after notice thereof by the Administrative Agent to the Lead Borrower; or

     (d) Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of any Borrower or
any other Loan Party herein or in any other Loan Document, shall be incorrect or misleading
in any material respect (or in the case of any representation or warranty qualified by
materiality, in any respect) when made or deemed made; or

     (e) Cross-Default. (i) Any Loan Party or any Subsidiary thereof (A) fails to
make any payment when due, after giving effect to any applicable grace period (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of
any Material Indebtedness, or (B) fails to observe or perform any other agreement or
condition relating to any such Material Indebtedness or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event occurs, the effect of
which default or other event is to cause, or to permit the holder or holders of such
Material Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause,
with the giving of notice if required, such Indebtedness to be demanded or to become due or
to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer
to repurchase, prepay, defease or redeem such Indebtedness to be made, in each case, prior
to its stated maturity; provided that any such failure is unremedied and is not waived by
the holders of such Indebtedness; provided further that this clause (i)(B) shall not
apply to (x) secured Indebtedness of a Loan Party or a Subsidiary that becomes due upon the
sale or transfer by such Loan Party or Subsidiary of the property or assets securing such
Indebtedness; or (y) scheduled payments, defeasances or redemptions of Indebtedness on the
dates set forth in the instruments and agreements governing such Indebtedness; or (ii) there
occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract)
resulting from (A) any event of default under such Swap Contract as to which a Loan Party or
any Subsidiary thereof is the Defaulting Party (as defined in such Swap Contract) or (B) any
Termination Event (as so defined) under such Swap Contract as to which a Loan Party or any
Subsidiary thereof is an Affected Party (as so defined) and, in either event, the Swap
Termination Value owed by the Loan Party or such Subsidiary as a result thereof is greater
than $15,000,000; provided that such failure is unremedied and is not waived by the
applicable counterparty to such Swap Contract; or

     (f) Insolvency Proceedings, Etc. Any Loan Party or any of its Subsidiaries
institutes or consents to the institution of any proceeding or makes any filing under any
Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or
consents to the appointment of any receiver, interim receiver, trustee, monitor, custodian,
conservator, liquidator, rehabilitator

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or similar officer for it or for all or any material part of its property; or a
proceeding shall be commenced or a petition filed, without the application or consent of
such Person, seeking or requesting the appointment of any receiver, interim receiver,
trustee, monitor, custodian, conservator, liquidator, rehabilitator or similar officer and
such receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer
is appointed and the appointment continues undischarged, undismissed or unstayed for 45
calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or
to all or any material part of its property is instituted without the consent of such Person
and continues undismissed or unstayed for 45 calendar days, or an order for relief is
entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) Any Loan Party or any Subsidiary
thereof becomes unable or admits in writing its inability or fails generally to pay its
debts as they become due in the ordinary course of business, or (ii) any writ or warrant of
attachment or execution or similar process is issued or levied against all or any material
part of the property of any such Person and is not released, vacated or fully bonded within
thirty (30) days after its issuance or levy; or

     (h) Judgments. There is entered against any Loan Party or any Subsidiary
thereof (i) one or more final judgments for the payment of money in an aggregate amount (as
to all such final judgments) exceeding $5,000,000 (to the extent not covered by independent
third-party insurance as to which the insurer is rated at least “A” by A.M. Best Company,
has been notified of the potential claim and does not dispute coverage), or (ii) any one or
more non-monetary judgments that have, or could reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect and, in either case such judgment is not,
within 30 days after the entry thereof, satisfied, vacated, discharged or execution thereof
stayed or bonded pending appeal, or such final judgment is not satisfied, vacated or
discharged prior to the expiration of any such stay; or

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result in liability
of any Loan Party under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the
PBGC in an aggregate amount in excess of $2,000,000 or which could reasonably be expected to
result in a Material Adverse Effect, or (ii) a Loan Party or any ERISA Affiliate fails to
pay when due, after the expiration of any applicable grace period, any installment payment
with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer
Plan in an aggregate amount in excess of $2,000,000 or which could reasonably be expected to
result in a Material Adverse Effect; or

     (j) Canadian Pension Plan. Any event or condition shall occur or exist with
respect to a Canadian Pension Plan that could reasonably be expected to subject any Canadian
Loan Party to any tax, penalty or other liabilities under the Supplemental Pension Plans Act
(Quebec) and the Pension Benefits Act (Ontario) or any other applicable Laws, or if a
Canadian Loan Party is in default with respect to required payments to a Canadian Pension
Plan or any Lien arises (save for contribution amounts not yet due) in connection with any
Canadian Pension Plan, and which could reasonably be expected to result in a Material
Adverse Effect.

     (k) Invalidity of Loan Documents. (i) Any provision of any material Loan
Document, at any time after its execution and delivery and for any reason other than as
expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations,
ceases to be in full force and effect; or any Loan Party contests in any manner the validity
or enforceability of any provision of any Loan Document; or any Loan Party denies that it
has any or further liability or

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obligation under any provision of any Loan Document, or purports to revoke, terminate
or rescind any provision of any Loan Document or seeks to avoid, limit or otherwise
adversely affect any Lien purported to be created under any Security Document; or (ii) any
Lien purported to be created under any Security Document shall cease to be, or shall be
asserted by any Loan Party or any Subsidiary not to be, a valid and (to the extent required
by the Security Documents and this Agreement) perfected Lien on any Collateral (other than
an immaterial portion of the Collateral), with the priority required by the applicable
Security Document; or

     (l) Change of Control. There occurs any Change of Control; or

     (m) Cessation of Business. Except as otherwise expressly permitted hereunder,
any Loan Party shall take any action to suspend the operation of the business of the Loan
Parties, taken as a whole, in the ordinary course or liquidate all or a material portion of
the assets of the Loan Parties, taken as a whole;

     (n) Loss of Collateral. There occurs any uninsured loss to any material
portion of the Collateral; or

     (o) Intentionally Omitted.

     (p) Indictment. The indictment against any Loan Party or any Subsidiary
thereof, under any federal, state, provincial, territorial, municipal, foreign or other
criminal statute, rule, regulation, order, or other requirement having the force of law for
a felony and such indictment remains unquashed or undismissed for a period of ninety (90)
days or more, unless the Administrative Agent, in its reasonable discretion, determines that
the indictment is not material; or

     (q) Guaranty. The termination, revocation or attempted termination or
revocation by any Loan Party of any Facility Guaranty except as expressly permitted
hereunder or under any other Loan Document; or

     (r) Subordination. (i) The subordination provisions of the documents
evidencing or governing any Subordinated Indebtedness (the “Subordination
Provisions”) shall, in whole or in part, terminate, cease to be effective or cease to be
legally valid, binding and enforceable against any holder of the applicable Subordinated
Indebtedness; or (ii) any Borrower or any other Loan Party shall, directly or indirectly,
disavow or contest in any manner (A) the effectiveness, validity or enforceability of any of
the Subordination Provisions, (B) that the Subordination Provisions exist for the benefit of
the Credit Parties, or (C) that all payments of principal of or premium and interest on the
applicable Subordinated Indebtedness, or realized from the liquidation of any property of
any Loan Party, shall be subject to any of the Subordination Provisions.

     Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent and, if applicable, the Canadian Agent may, or, at the request of the Required
Lenders shall, take any or all of the following actions:

     (s) declare the Commitments of each Lender to make Loans and any obligation of the L/C
Issuer to make L/C Credit Extensions to be terminated, whereupon such Commitments and
obligation shall be terminated;

     (t) declare the unpaid principal amount of all outstanding Loans, all interest accrued
and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan

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Document to be immediately due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby expressly waived by the Loan Parties;

     (u) require that the Domestic Borrowers Cash Collateralize the Domestic L/C Obligations
(other than L/C Borrowings), and require that the Canadian Loan Parties Cash Collateralize
the Canadian L/C Obligations (other than L/C Borrowings); and

     (v) whether or not the maturity of the Obligations shall have been accelerated pursuant
hereto, proceed to protect, enforce and exercise all rights and remedies of the Credit
Parties under this Agreement, any of the other Loan Documents or applicable Law, including,
but not limited to, by suit in equity, action at law or other appropriate proceeding,
whether for the specific performance of any covenant or agreement contained in this
Agreement and the other Loan Documents or any instrument pursuant to which the Obligations
are evidenced, and, if such amount shall have become due, by declaration or otherwise,
proceed to enforce the payment thereof or any other legal or equitable right of the Credit
Parties;

provided, however, that upon the entry of an order for relief with respect to any
Loan Party or any Subsidiary thereof under any Debtor Relief Law, the obligation of each Lender to
make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions shall automatically
terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts
as aforesaid shall automatically become due and payable, and the obligation of the Loan Parties to
Cash Collateralize the L/C Obligations (other than L/C Borrowings) as aforesaid shall automatically
become effective, in each case without further act of the Agents, the Canadian Agent, the L/C
Issuer, or any Lender.

     No remedy herein is intended to be exclusive of any other remedy and each and every remedy
shall be cumulative and shall be in addition to every other remedy given hereunder or now or
hereafter existing at law or in equity or by statute or any other provision of Law.

     8.02 Application of Funds.

          (a) After the exercise of remedies provided for in Section 0 (or after the Loans have
automatically become immediately due and payable and the L/C Obligations have automatically been
required to be Cash Collateralized as set forth in the proviso to Section 0), any amounts
received from any Domestic Loan Party, from the liquidation of any Collateral of any Domestic Loan
Party, or on account of the Obligations (excluding the Canadian Liabilities), shall be applied by
the Administrative Agent against the Obligations in the following order:

     First, to payment of that portion of the Obligations (excluding the Other
Liabilities and the Canadian Liabilities) constituting fees, indemnities, Credit Party
Expenses and other amounts (including fees, charges and disbursements of counsel to the
Administrative Agent and the Co-Collateral Agents and amounts payable under Article
III) payable to the Administrative Agent and the Co-Collateral Agents, each in its
capacity as such;

     Second, to payment of that portion of the Obligations (excluding the Other
Liabilities) constituting indemnities, Credit Party Expenses, and other amounts (other than
principal, interest and fees) payable to the Domestic Lenders and the L/C Issuer (on account
of Domestic Letters of Credit) (including fees, charges and disbursements of counsel to the
respective Domestic Lenders and the L/C Issuer (on account of Domestic Letters of Credit)
and amounts payable under Article III), ratably among them in proportion to the
amounts described in this clause Second payable to them;

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     Third, to the extent not previously reimbursed by the Domestic Lenders, to
payment to the Domestic Lenders of that portion of the Obligations constituting principal
and accrued and unpaid interest on any Permitted Domestic Overadvances, ratably among the
Domestic Lenders in proportion to the amounts described in this clause Third payable
to them;

     Fourth, to the extent that Swing Line Loans made to the Domestic Borrowers have
not been refinanced by a Committed Domestic Loan, payment to the Swing Line Lender of that
portion of the Obligations constituting accrued and unpaid interest on the Swing Line Loans
made to the Domestic Borrowers;

     Fifth, to payment of that portion of the Obligations constituting accrued and
unpaid interest on the Domestic Loans, Domestic L/C Borrowings and other Obligations (other
than the Canadian Liabilities), and fees (including Letter of Credit Fees, other than any
fees due on account of any Canadian Letter of Credit), ratably among the Domestic Lenders
and the L/C Issuer in proportion to the respective amounts described in this clause
Fifth payable to them;

     Sixth, to the extent that Swing Line Loans made to the Domestic Borrowers have
not been refinanced by a Committed Domestic Loan, to payment to the Swing Line Lender of
that portion of the Obligations constituting unpaid principal of the Swing Line Loans made
to the Domestic Borrowers;

     Seventh, to payment of that portion of the Obligations constituting unpaid
principal of the Domestic Loans and Domestic L/C Borrowings, ratably among the Domestic
Lenders and the L/C Issuer in proportion to the respective amounts described in this clause
Seventh held by them;

     Eighth, to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of Domestic L/C Obligations comprised of the aggregate undrawn
amount of Domestic Letters of Credit;

     Ninth, subject to Section 8.02(c), to the Canadian Agent to be held by
the Canadian Agent, for the ratable benefit of the Canadian Lenders as cash collateral to
payment of that portion of the Canadian Liabilities (excluding the Other Canadian
Liabilities) constituting fees, indemnities, Credit Party Expenses and other amounts
(including fees, charges and disbursements of counsel to the Canadian Agent and amounts
payable under Article III) payable to the Canadian Agent, in its capacity as such;

     Tenth, subject to Section 8.02(c), to the Canadian Agent to be held by
the Canadian Agent, for the ratable benefit of the Canadian Lenders and the L/C Issuer as
cash collateral to payment of that portion of the Canadian Liabilities (excluding the Other
Canadian Liabilities) constituting indemnities, Credit Party Expenses, and other amounts
(other than principal, interest and fees) payable to the Canadian Lenders and the L/C Issuer
(on account of Canadian Letters of Credit) (including fees, charges and disbursements of
counsel to the respective Domestic Lenders and the L/C Issuer (on account of Canadian
Letters of Credit) and amounts payable under Article III), ratably among them in
proportion to the amounts described in this clause Tenth payable to them;

     Eleventh, to the extent not previously reimbursed by the Canadian Lenders and
subject to Section 8.02(c), to the Canadian Agent to be held by the Canadian Agent,
for the ratable benefit of the Canadian Lenders as cash collateral to payment to the
Canadian Lenders of that portion of the Canadian Liabilities constituting principal and
accrued and unpaid interest on any Permitted

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Canadian Overadvances, ratably among the Canadian Lenders in proportion to the amounts
described in this clause Eleventh payable to them;

     Twelfth, to the extent that Swing Line Loans made to the Canadian Borrower have
not been refinanced by a Committed Canadian Loan and subject to Section 8.02(c), to
the Canadian Agent to be held by the Canadian Agent, for the ratable benefit of the Canadian
Lenders and the Swing Line Lender as cash collateral to payment to the Swing Line Lender of
that portion of the Canadian Liabilities constituting accrued and unpaid interest on the
Swing Line Loans made to the Canadian Borrower;

     Thirteenth, subject to Section 8.02(c), to the Canadian Agent to be
held by the Canadian Agent, for the ratable benefit of the Canadian Lenders and the L/C
Issuer as cash collateral to payment of that portion of the Canadian Liabilities
constituting accrued and unpaid interest on the Canadian Loans, Canadian L/C Borrowings and
other Canadian Liabilities, and fees (including Letter of Credit Fees not paid pursuant to
clause Fifth above), ratably among the Canadian Lenders and the L/C Issuer in
proportion to the respective amounts described in this clause Thirteenth payable to
them;

     Fourteenth, to the extent that Swing Line Loans made to the Canadian Borrower
have not been refinanced by a Committed Canadian Loan and subject to Section
8.02(c), to the Canadian Agent to be held by the Canadian Agent, for the ratable benefit
of the Canadian Lenders and the Swing Line Lender as cash collateral to payment to the Swing
Line Lender of that portion of the Canadian Liabilities constituting unpaid principal of the
Swing Line Loans made to the Canadian Borrower;

     Fifteenth, subject to Section 8.02(c), to the Canadian Agent to be held
by the Canadian Agent, for the ratable benefit of the Canadian Lenders and the L/C Issuer as
cash collateral to payment of that portion of the Canadian Liabilities constituting unpaid
principal of the Canadian Loans and Canadian L/C Borrowings, ratably among the Canadian
Lenders and the L/C Issuer in proportion to the respective amounts described in this clause
Fifteenth held by them;

     Sixteenth, subject to Section 8.02(c), to the Canadian Agent to be held
by the Canadian Agent, for the ratable benefit of the Canadian Lenders and the L/C Issuer,
to Cash Collateralize that portion of Canadian L/C Obligations comprised of the aggregate
undrawn amount of Canadian Letters of Credit;

     Seventeenth, to payment of all other Obligations (including without limitation
the cash collateralization of unliquidated indemnification obligations for which a claim has
been made as provided in Section 10.03, but excluding any Other Domestic Liabilities
and Other Canadian Liabilities), ratably among the Credit Parties in proportion to the
respective amounts described in this clause Seventeenth held by them;

     Eighteenth, to payment of that portion of the Obligations arising from Cash
Management Services to the extent secured under the Security Documents, ratably among the
Credit Parties in proportion to the respective amounts described in this clause
Eighteenth held by them;

     Nineteenth, to payment of all other Obligations arising from Bank Products to
the extent secured under the Security Documents, ratably among the Credit Parties in
proportion to the respective amounts described in this clause Nineteenth held by
them; and

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     Last, the balance, if any, after all of the Obligations have been indefeasibly
paid in full, to the Domestic Loan Parties or as otherwise required by Law.

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn
amount of Domestic Letters of Credit pursuant to clause Eighth above shall be
applied to satisfy drawings under such Domestic Letters of Credit as they occur. If any
amount remains on deposit as Cash Collateral after all Domestic Letters of Credit have
either been fully drawn or expired, such remaining amount shall be applied to the other
Obligations, if any, in the order set forth above.

          (b) After the exercise of remedies provided for in Section 0 (or after the Loans have
automatically become immediately due and payable and the L/C Obligations have automatically been
required to be Cash Collateralized as set forth in the proviso to Section 0), any amounts
received from any Canadian Loan Party, from the liquidation of any Collateral of any Canadian Loan
Party, or on account of the Canadian Liabilities, shall be applied by the Canadian Agent against
the Canadian Liabilities in the following order:

     First, to payment of that portion of the Canadian Liabilities (excluding the
Other Canadian Liabilities) constituting fees, indemnities, Credit Party Expenses and other
amounts (including fees, charges and disbursements of counsel to the Canadian Agent and
amounts payable under Article III) payable to the Canadian Agent, in its capacity as
such;

     Second, to payment of that portion of the Canadian Liabilities (excluding the
Other Canadian Liabilities) constituting indemnities, Credit Party Expenses, and other
amounts (other than principal, interest and fees) payable to the Canadian Lenders and the
L/C Issuer (on account of Canadian Letters of Credit) (including fees, charges and
disbursements of counsel to the respective Domestic Lenders and the L/C Issuer (on account
of Canadian Letters of Credit) and amounts payable under Article III), ratably among
them in proportion to the amounts described in this clause Second payable to them;

     Third, to the extent not previously reimbursed by the Canadian Lenders, to the
Canadian Agent to be held by the Canadian Agent, for the ratable benefit of the Canadian
Lenders as cash collateral to payment to the Canadian Lenders of that portion of the
Canadian Liabilities constituting principal and accrued and unpaid interest on any Permitted
Canadian Overadvances, ratably among the Canadian Lenders in proportion to the amounts
described in this clause Third payable to them;

     Fourth, to the extent that Swing Line Loans made to the Canadian Borrower have
not been refinanced by a Committed Canadian Loan, to the Canadian Agent to be held by the
Canadian Agent, for the ratable benefit of the Canadian Lenders as cash collateral to
payment to the Swing Line Lender of that portion of the Canadian Liabilities constituting
accrued and unpaid interest on the Swing Line Loans made to the Canadian Borrower;

     Fifth, to payment of that portion of the Canadian Liabilities constituting
accrued and unpaid interest on the Canadian Loans, Canadian L/C Borrowings and other
Canadian Liabilities, and fees (including Letter of Credit Fees due on account of Canadian
Letters of Credit), ratably among the Canadian Lenders and the L/C Issuer in proportion to
the respective amounts described in this clause Fifth payable to them;

     Sixth, to the extent that Swing Line Loans made to the Canadian Borrower have
not been refinanced by a Committed Canadian Loan, to payment to the Swing Line Lender of
that portion of the Canadian Liabilities constituting unpaid principal of the Swing Line
Loans made to the Canadian Borrower;

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      Seventh, to payment of that portion of the Canadian Liabilities
constituting unpaid principal of the Canadian Loans and Canadian L/C Borrowings, ratably
among the Canadian Lenders and the L/C Issuer in proportion to the respective amounts
described in this clause Seventh held by them;

     Eighth, to the Canadian Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of Canadian L/C Obligations comprised of the aggregate undrawn
amount of Canadian Letters of Credit;

     Ninth, to payment of all other Canadian Liabilities (including without
limitation the cash collateralization of unliquidated indemnification obligations as
provided in Section 10.03, but excluding any Other Canadian Liabilities), ratably
among the Credit Parties in proportion to the respective amounts described in this clause
Ninth held by them;

     Tenth, to payment of that portion of the Canadian Liabilities arising from Cash
Management Services to the extent secured under the Security Documents, ratably among the
Credit Parties in proportion to the respective amounts described in this clause
Tenth held by them;

     Eleventh, to payment of all other Canadian Liabilities arising from Bank
Products to the extent secured under the Security Documents, ratably among the Credit
Parties in proportion to the respective amounts described in this clause Eleventh
held by them; and

     Last, the balance, if any, after all of the Canadian Liabilities have been
indefeasibly paid in full, to the Canadian Loan Parties or as otherwise required by Law.

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount
of Canadian Letters of Credit pursuant to clause Eighth above shall be applied to satisfy
drawings under such Canadian Letters of Credit as they occur. If any amount remains on deposit as
Cash Collateral after all Canadian Letters of Credit have either been fully drawn or expired, such
remaining amount shall be applied to the other Canadian Liabilities, if any, in the order set forth
above.

          (c) Any amounts received by the Canadian Agent pursuant to clauses Ninth through
Sixteenth of Section 8.02(a) shall be held as cash collateral for the applicable
Canadian Liabilities until the earlier of (i) the substantial Liquidation of the Collateral granted
by the Canadian Loan Parties to secure the Canadian Liabilities, or (ii) such date that the
Canadian Agent and the Administrative Agent shall otherwise determine.

     Waivers By Loan Parties. Except as otherwise provided for in this Agreement or by applicable
Law, each Loan Party waives (a) presentment, demand and protest and notice of presentment,
dishonor, notice of intent to accelerate, notice of acceleration, protest, default, nonpayment,
maturity, release, compromise, settlement, and hereby ratifies and confirms whatever the
Administrative Agent may do in this regard, (b) all rights to notice and a hearing prior to the
Administrative Agent’s taking possession or control of, or to the Administrative Agent’s replevy,
attachment or levy upon, the Collateral or any bond or security that might be required by any court
prior to allowing the Administrative Agent to exercise any of its remedies, and (c) the benefit of
all valuation, appraisal, marshaling and exemption Laws.

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ARTICLE IX

AGENTS AND LENDERS

     9.01 Appointment and Authority.

          (a) Each of the Domestic Lenders and the L/C Issuer (with respect to Domestic Letters of
Credit) hereby irrevocably appoints Bank of America to act on its behalf as the Administrative
Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take
such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof or thereof, together with such actions and powers as are reasonably incidental
thereto. The provisions of this Article IX are for the benefit of the Agents, the Domestic
Lenders and the L/C Issuer, and no Loan Party or any Subsidiary thereof shall have rights as a
third party beneficiary of any of such provisions (other than the provisions of Section
9.06).

          (b) Each of the Canadian Lenders and the L/C Issuer (with respect to Canadian Letters of
Credit) hereby irrevocably appoints Bank of America-Canada Branch to act on its behalf as the
Canadian Agent hereunder and under the other Loan Documents and authorizes the Canadian Agent to
take such actions on its behalf and to exercise such powers as are delegated to the Canadian Agent
by the terms hereof or thereof, together with such actions and powers as are reasonably incidental
thereto. The provisions of this Article IX are for the benefit of the Canadian Agent, the
Canadian Lenders and the L/C Issuer, and no Loan Party or any Subsidiary thereof shall have rights
as a third party beneficiary of any of such provisions (other than the provisions of Section
9.06).

          (c) Without limiting the generality of the foregoing Section 9.01(b), for the purposes of
creating a solidarité active in accordance with article 1541 of the Civil Code of Québec between
each Credit Party that is owed any Canadian Liabilities, taken individually, on the one hand, and
the Canadian Agent, on the other hand, each Canadian Loan Party and each such Credit Party
acknowledge and agree with the Canadian Agent that such Credit Party and the Canadian Agent are
hereby conferred the legal status of solidary creditors of the Canadian Loan Parties in respect of
all Canadian Liabilities, present and future, owed by any Canadian Loan Party to each such Credit
Party and the Canadian Agent (collectively, for the purposes of this paragraph, the “solidary
claim”). Accordingly, but subject (for the avoidance of doubt) to article 1542 of the Civil Code
of Québec, the Canadian Loan Parties are irrevocably bound towards the Canadian Agent and each such
Credit Party in respect of the entire solidary claim of the Canadian Agent and such Credit Party.
As a result of the foregoing, the Canadian Loan Parties confirm and agree that subject to Section
9.01(b), above, the rights of the Canadian Agent and each of the Credit Parties who are owed
Canadian Liabilities from time to time a party to this Agreement or any of the other Loan Documents
by way of assignment or otherwise are solidary and, as regards the Canadian Liabilities owing from
time to time to each such Credit Party, each of the Canadian Agent and such Credit Party is
entitled, when permitted pursuant to Section 8.01, to: (i) demand payment of all outstanding
amounts from time to time in respect of the Canadian Liabilities; (ii) exact the whole performance
of such Canadian Liabilities from the Canadian Loan Parties; (iii) benefit from the Canadian
Agent’s Liens in the Collateral in respect of such Canadian Liabilities; (iv) give a full
acquittance of such Canadian Liabilities (each Credit Party that is owed Canadian Liabilities
hereby agreeing to be bound by any such acquittance); and (v) exercise all rights and recourses
under the Loan Documents with respect to those Canadian Liabilities. The Canadian Liabilities of
the Canadian Loan Parties will be secured by the Canadian Agent’s Liens in the Collateral and the
Canadian Agent and the Credit Parties who are owed Canadian Liabilities will have a solidary
interest therein.

          (d) Each of the Lenders (in its capacities as a Lender), the Swing Line Lender and the L/C
Issuer hereby irrevocably appoints Bank of America as Administrative Agent and authorizes the
Administrative Agent to act as the agent of such Lender and the L/C Issuer for purposes of
acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Domestic
Loan Parties to secure any of the Obligations, together with such powers and discretion as are
reasonably incidental thereto. In this connection, the Administrative Agent, as “collateral agent”
and any co-agents, sub-agents and attorneys-in-fact appointed by the Administrative Agent pursuant
to Section 0 for purposes of holding or enforcing any Lien on the Collateral (or any
portion thereof) granted under the Security Documents, or for exercising any rights and remedies
thereunder at the direction of the Administrative Agent), shall be entitled to the benefits of all
provisions of this Article IX and Article X (including Section 10.03(c)),
as

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though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the
Loan Documents, as if set forth in full herein with respect thereto.

     Rights as a Lender. The Persons serving as the Agents hereunder shall have the same rights
and powers in their capacity as a Lender as any other Lender and may exercise the same as though
they were not the Administrative Agent, the Canadian Agent or the Co-Collateral Agents and the term
“Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent, the Canadian Agent or the
Co-Collateral Agents hereunder in its individual capacity. Such Person and its Lender Affiliates
may accept deposits from, lend money to, act as the financial advisor or in any other advisory
capacity for and generally engage in any kind of business with the Loan Parties or any Subsidiary
or other Affiliate thereof as if such Person were not the Administrative Agent, the Canadian Agent
or the Co-Collateral Agents hereunder and without any duty to account therefor to the Lenders.

     Exculpatory Provisions. The Agents and the Canadian Agent shall not have any duties or
obligations except those expressly set forth herein and in the other Loan Documents. Without
limiting the generality of the foregoing, the Agents and the Canadian Agent:

     (b) shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing;

     (c) shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated hereby
or by the other Loan Documents that the Administrative Agent, the Canadian Agent or the
Co-Collateral Agents, as applicable, is required to exercise as directed in writing by the
Required Lenders (or such other number or percentage of the Lenders as shall be expressly
provided for herein or in the other Loan Documents), provided that no Agent nor the
Canadian Agent shall be required to take any action that, in its respective opinion or the
opinion of its counsel, may expose such Agent or the Canadian Agent to liability or that is
contrary to any Loan Document or applicable Law; and

     (d) shall not, except as expressly set forth herein and in the other Loan Documents,
have any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Loan Parties or any of its Affiliates that is communicated to or
obtained by the Person serving as the Administrative Agent, the Canadian Agent, the
Co-Collateral Agents or any of its Lender Affiliates in any capacity.

No Agent nor the Canadian Agent shall be liable to any Credit Party for any action taken or not
taken by it (i) with the Consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as such Agent shall believe in good faith shall
be necessary, under the circumstances as provided in Sections 0 and 0) or (ii) in
the absence of its own gross negligence or willful misconduct as determined by a final and
non-appealable judgment of a court of competent jurisdiction.

     The Agents and the Canadian Agent shall not be deemed to have knowledge of any Default unless
and until notice describing such Default is given to such Agent or the Canadian Agent by the Loan
Parties, a Lender or the L/C Issuer. In the event that the Agents or the Canadian Agent obtains
such actual knowledge or receives such a notice, the Agents or the Canadian Agent, as applicable,
shall give prompt notice thereof to each of the other Lenders. Upon the occurrence of an Event of
Default, the Agents or the Canadian Agent, as applicable, shall take such action with respect to
such Default or Event of Default as shall be reasonably directed by the Required Lenders. Unless
and until the Agents or the Canadian Agent, as applicable, shall have received such direction, the
Agents and the Canadian Agent, as

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applicable, may (but shall not be obligated to) take such action, or refrain from taking such
action, with respect to any such Default or Event of Default as they shall deem advisable in the
best interest of the Credit Parties. In no event shall the Agents or the Canadian Agent be
required to comply with any such directions to the extent that any Agent or the Canadian Agent
believes that its compliance with such directions would be unlawful.

     The Agents and the Canadian Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in connection with this
Agreement or any other Loan Document, (ii) the contents of any certificate, report or other
document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement,
instrument or document or the creation, perfection or priority of any Lien purported to be created
by the Security Documents, (v) the value or the sufficiency of any Collateral, or (vi) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the Agents or the Canadian Agent.

     9.02 Reliance by Agents.

     Each Agent and the Canadian Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent, statement, instrument,
document or other writing (including, but not limited to, any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine and to have been
signed, sent or otherwise authenticated by the proper Person. Each Agent and the Canadian Agent
also may rely upon any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of
Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the
Administrative Agent and the Canadian Agent may presume that such condition is satisfactory to such
Lender or the L/C Issuer unless the Administrative Agent or the Canadian Agent, as applicable,
shall have received written notice to the contrary from such Lender or the L/C Issuer prior to the
making of such Loan or the issuance of such Letter of Credit. Each Agent and the Canadian Agent
may consult with legal counsel (who may be counsel for any Loan Party), independent accountants and
other experts selected by it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

     Delegation of Duties. Each Agent and the Canadian Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any other Loan Document by or through any one
or more sub-agents appointed by such Agent or the Canadian Agent. Each Agent, the Canadian Agent
and any such sub-agent may perform any and all of its duties and exercise its rights and powers by
or through their respective Related Parties. The exculpatory provisions of this Article shall
apply to any such sub-agent and to the Related Parties of the Agents or the Canadian Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as such Agent or the Canadian
Agent.

     Resignation of Agents. Any Agent or the Canadian Agent may at any time give written notice of
its resignation to the Lenders, the L/C Issuer and the Lead Borrower. Upon receipt of any such
notice of resignation, the Required Lenders shall have the right, in consultation with the Lead
Borrower, to appoint a successor, which, in the case of any Agent, shall be a bank with an office
in the United States, or a Lender Affiliate of any such bank with an office in the United States
and shall, unless an Event of Default has occurred and is continuing at the time of such
appointment, be reasonably acceptable to the Lead Borrower (whose consent shall not be unreasonably
withheld or delayed), and in the case of the Canadian

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Agent, shall be a financial institution that is listed on Schedule I, II or III of the Bank
Act (Canada) or is not a foreign bank for purposes of the Bank Act (Canada), and if such financial
institution is not resident in Canada and is not deemed to be resident in Canada for purposes of
the Income Tax Act (Canada), then such financial institution deals at arm’s length with each
Canadian Loan Party for purposes of the Income Tax Act (Canada) and shall, unless an Event of
Default has occurred and is continuing at the time of such appointment, be reasonably acceptable to
the Canadian Borrower (whose consent shall not be unreasonably withheld or delayed). If no such
successor shall have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Agent or Canadian Agent, as applicable, gives notice
of its resignation, then the retiring Agent or Canadian Agent, as applicable, may on behalf of the
Lenders and the L/C Issuer, appoint a successor Administrative Agent, Canadian Agent or
Co-Collateral Agent, as applicable, meeting the qualifications set forth above; provided
that if the Administrative Agent, the Canadian Agent or the Co-Collateral Agent shall notify the
Lead Borrower and the Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (1) the retiring
Agent or Canadian Agent, as applicable, shall be discharged from its duties and obligations
hereunder and under the other Loan Documents (except that in the case of any Collateral held by
such Person on behalf of the Lenders or the L/C Issuer under any of the Loan Documents, the
retiring Administrative Agent or Canadian Agent, as applicable, shall continue to hold such
collateral security until such time as a successor Administrative Agent or Canadian Agent, as
applicable, is appointed) and (2) all payments, communications and determinations provided to be
made by, to or through the Administrative Agent or Canadian Agent, as applicable, shall instead be
made by or to each Lender and the L/C Issuer directly, until such time as the Required Lenders
appoint a successor Administrative Agent or Canadian Agent, as applicable, as provided for above in
this Section 0. Upon the acceptance of a successor’s appointment as Administrative Agent,
Canadian Agent or Co-Collateral Agent, as applicable, hereunder, such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the retiring (or
retired) Agent or Canadian Agent, as applicable, and the retiring Agent or Canadian Agent, as
applicable, shall be discharged from all of its duties and obligations hereunder or under the other
Loan Documents (if not already discharged therefrom as provided above in this Section 0).
The fees payable by the Borrowers to a successor Administrative Agent or Canadian Agent, as
applicable, shall be the same as those payable to its predecessor unless otherwise agreed between
the Lead Borrower and such successor. After the retiring Agent’s or Canadian Agent’s resignation
hereunder and under the other Loan Documents, the provisions of this Article and Section
10.03 shall continue in effect for the benefit of such retiring Agent or Canadian Agent, as
applicable, its sub-agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while the retiring Agent was acting as Administrative Agent, or
Canadian Agent, or Co-Collateral Agent hereunder.

     Any resignation by Bank of America as Administrative Agent pursuant to this Section 0
shall also constitute its resignation as L/C Issuer and Swing Line Lender. Upon the acceptance of
a successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer
and Swing Line Lender, (b) the retiring L/C Issuer and Swing Line Lender shall be discharged from
all of their respective duties and obligations hereunder or under the other Loan Documents, and (c)
the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit,
if any, outstanding at the time of such succession or make other arrangements satisfactory to the
retiring L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with respect
to such Letters of Credit.

     Any resignation by Bank of America-Canada Branch as Canadian Agent pursuant to this
Section 0 shall also constitute its resignation as L/C Issuer and Swing Line Lender. Upon
the acceptance of a successor’s appointment as Canadian Agent hereunder, (a) such successor shall
succeed to and become vested with all of the rights, powers, privileges and duties of the retiring
L/C Issuer and Swing Line Lender, (b) the retiring L/C Issuer and Swing Line Lender shall be
discharged from all of their respective

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duties and obligations hereunder or under the other Loan Documents, and (c) the successor L/C
Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding
at the time of such succession or make other arrangements satisfactory to the retiring L/C Issuer
to effectively assume the obligations of the retiring L/C Issuer with respect to such Letters of
Credit.

     Non-Reliance on Agents, Canadian Agent and Other Lenders. Each Lender and the L/C Issuer
acknowledges that it has, independently and without reliance upon the Agents, the Canadian Agent or
any other Lender or any of their Related Parties and based on such documents and information as it
has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.
Each Lender and the L/C Issuer also acknowledges that it will, independently and without reliance
upon the Agents or any other Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make its own decisions in
taking or not taking action under or based upon this Agreement, any other Loan Document or any
related agreement or any document furnished hereunder or thereunder. Except as provided in
Section 9.04, the Agents and the Canadian Agent shall not have any duty or responsibility
to provide any Credit Party with any other credit or other information concerning the affairs,
financial condition or business of any Loan Party that may come into the possession of the Agents
or the Canadian Agent, as applicable.

     No Other Duties, Etc. Notwithstanding anything to the contrary in this Agreement or any of
the other Loan Documents, no Person who is or becomes an Arranger, a Bookrunner or a Syndication
Agent shall have any powers, rights, duties, responsibilities or liabilities with respect to this
Agreement and the other Loan Documents.

     Administrative Agent May File Proofs of Claim. In case of the pendency of any proceeding
under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the
Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall
then be due and payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Loan Parties) shall be entitled
and empowered, by intervention in such proceeding or otherwise

     (a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing
and unpaid and to file such other documents as may be necessary or advisable in order to
have the claims of the Lenders, the L/C Issuer, the Administrative Agent and the other
Credit Parties (including any claim for the reasonable compensation, expenses, disbursements
and advances of the Lenders, the L/C Issuer, the Administrative Agent, such Credit Parties
and their respective agents and counsel and all other amounts due the Lenders, the L/C
Issuer the Administrative Agent and such Credit Parties under Sections 2.03(i),
2.03(j), 0 and 10.03) allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;

and any custodian, receiver, interim receiver, assignee, trustee, monitor, liquidator, sequestrator
or other similar official in any such judicial proceeding is hereby authorized by each Lender and
the L/C Issuer to make such payments to the Administrative Agent and, if the Administrative Agent
shall consent to the making of such payments directly to the Lenders and the L/C Issuer, to pay to
the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements
and advances of the Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 0 and 10.03.

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     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of reorganization,
arrangement, adjustment, compromise or composition or proposal affecting the Obligations or the
rights of any Lender or the L/C Issuer or to authorize the Administrative Agent to vote in respect
of the claim of any Lender or the L/C Issuer in any such proceeding.

     Collateral and Guaranty Matters. The Credit Parties irrevocably authorize the Agents and the
Canadian Agent, at their option and in their discretion,

     (c) to release any Lien on any property granted to or held by the Administrative Agent
or the Canadian Agent under any Loan Document (i) upon termination of the Aggregate Total
Commitments and payment in full of all Obligations (other than contingent indemnification
obligations for which no claim has been asserted) and the expiration or termination of all
Letters of Credit, (ii) solely with respect to any Lien on any property of the Canadian Loan
Parties, upon termination of the Aggregate Canadian Commitments and payment in full of all
Canadian Liabilities (other than contingent indemnification obligations for which no claim
has been asserted) and the expiration or termination of all Canadian Letters of Credit,
(iii) that is Disposed of or to be Disposed of as part of or in connection with any
Disposition permitted hereunder or under any other Loan Document, or (iv) if approved,
authorized or ratified in writing by the Required Lenders in accordance with Section
0;

     (d) to subordinate any Lien on any property granted to or held by the Administrative
Agent or the Canadian Agent under any Loan Document to the holder of any Lien on such
property that is permitted by clause (h) of the definition of Permitted Encumbrances; and

     (e) to release any Guarantor from its obligations under any Facility Guaranty and each
other applicable Loan Document if such Person ceases to be a Subsidiary as a result of a
transaction permitted hereunder.

Upon request by any Agent or the Canadian Agent at any time, the Required Lenders (or such other
number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan
Documents) will confirm in writing such Agent’s or Canadian Agent’s authority to release or
subordinate its interest in particular types or items of property, or to release any Guarantor from
its obligations under the Facility Guaranty and each other applicable Loan Document pursuant to
this Section 0. In each case as specified in this Section 0, the Agents or
Canadian Agent (as applicable) will, at the Loan Parties’ expense, execute and deliver to the
applicable Loan Party such documents as such Loan Party may reasonably request to evidence the
release of such item of Collateral from the assignment and Lien granted under the Security
Documents or to subordinate its interest in such item, or to release such Guarantor from its
obligations under the Facility Guaranty, in each case in accordance with the terms of the Loan
Documents and this Section 0.

     9.03 Notice of Transfer.

     The Agents and the Canadian Agent may deem and treat a Lender party to this Agreement as the
owner of such Lender’s portion of the Loans and Commitments for all purposes, unless and until, and
except to the extent, an Assignment and Assumption shall have become effective as set forth in
Section 10.04.

     9.04 Reports and Financial Statements.

     By signing this Agreement, each Lender:

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     (a) agrees to furnish the Administrative Agent or the Canadian Agent, as applicable,
after the occurrence and during the continuance of a Cash Dominion Event (and thereafter at
such frequency as the Administrative Agent or the Canadian Agent may reasonably request)
with a summary of all Other Domestic Liabilities or Other Canadian Liabilities due or to
become due to such Lender. In connection with any distributions to be made hereunder, the
Administrative Agent and the Canadian Agent shall be entitled to assume that no amounts are
due to any Lender on account of Other Liabilities unless the Administrative Agent or the
Canadian Agent, as applicable, has received written notice thereof from such Lender;

     (b) is deemed to have requested that the Administrative Agent or the Canadian Agent, as
applicable, furnish such Lender, promptly after they become available, copies of all
financial statements, notices or other written communications required to be delivered by
any Loan Party hereunder and all commercial finance examinations and appraisals of the
Collateral received by the Agents or the Canadian Agent (collectively, the
“Reports”) and the Administrative Agent and the Canadian Agent each hereby agrees to
honor each such request;

     (c) expressly agrees and acknowledges that neither the Administrative Agent nor the
Canadian Agent makes any representation or warranty as to the accuracy of the Reports, and
shall not be liable for any information contained in any Report;

     (d) expressly agrees and acknowledges that the Reports are not comprehensive audits or
examinations, that the Agents, the Canadian Agent or any other party performing any audit or
examination will inspect only specific information regarding the Loan Parties and will rely
significantly upon the Loan Parties’ books and records, as well as on representations of the
Loan Parties’ personnel;

     (e) agrees to keep all Reports confidential in accordance with the provisions of
Section 0 hereof; and

     (f) without limiting the generality of any other indemnification provision contained in
this Agreement, agrees: (i) to hold the Agents, the Canadian Agent and any such other
Lender preparing a Report harmless from any action the indemnifying Lender may take or
conclusion the indemnifying Lender may reach or draw from any Report in connection with any
Credit Extensions that the indemnifying Lender has made or may make to the Borrowers, or the
indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a Loan or
Loans; and (ii) to pay and protect, and indemnify, defend, and hold the Agents, the Canadian
Agent and any such other Lender preparing a Report harmless from and against, the claims,
actions, proceedings, damages, costs, expenses, and other amounts (including attorney costs)
incurred by the Agents, the Canadian Agent and any such other Lender preparing a Report as
the direct or indirect result of any third parties who might obtain all or part of any
Report through the indemnifying Lender.

     9.05 Agency for Perfection.

     Each Agent and Lender hereby appoints each other Agent and Lender as agent for the purpose of
perfecting Liens for the benefit of the Agents, the Canadian Agent and the Lenders, in assets
which, in accordance with Article 9 of the UCC, the PPSA or any other applicable Law of the United
States or Canada can be perfected only by possession. Should any Lender (other than the Agents and
the Canadian Agent) obtain possession of any such Collateral, such Lender shall notify the Agents
and the Canadian Agent, as applicable, thereof, and, promptly upon the Administrative Agent’s or
the Canadian Agent’s request therefor, shall deliver such Collateral to the Administrative Agent or
the Canadian Agent, as

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applicable, or otherwise deal with such Collateral in accordance with the Administrative
Agent’s or the Canadian Agent’s instructions.

     Indemnification of Agents and Canadian Agent. The Lenders shall indemnify the Agents and the
Canadian Agent (to the extent not reimbursed by the Loan Parties and without limiting the
obligations of Loan Parties hereunder), ratably according to their Applicable Percentages, from and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on,
incurred by, or asserted against any Agent or the Canadian Agent in any way relating to or arising
out of this Agreement or any other Loan Document or any action taken or omitted to be taken by any
Agent or the Canadian Agent in connection therewith; provided, that no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from such Agent’s or the Canadian
Agent’s gross negligence or willful misconduct as determined by a final and nonappealable judgment
of a court of competent jurisdiction.

     Relation among Lenders. The Lenders are not partners or co-venturers, and no Lender shall be
liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Agents
and the Canadian Agent) authorized to act for, any other Lender.

     9.06 Defaulting Lender.

          (a) If for any reason any Lender shall fail or refuse to abide by its obligations under this
Agreement, including without limitation its obligation to make available to Administrative Agent or
the Canadian Agent, as applicable, its Applicable Percentage of any Loans, expenses or setoff or
purchase its Applicable Percentage of a participation interest in the Swing Line Loans or L/C
Borrowings and such failure is not cured within one (1) Business Day of receipt from the
Administrative Agent of written notice thereof, then, in addition to the rights and remedies that
may be available to the other Credit Parties, the Loan Parties or any other party at law or in
equity, and not at limitation thereof, (i) such Defaulting Lender’s right to participate in the
administration of, or decision-making rights related to, the Obligations, this Agreement or the
other Loan Documents shall be suspended during the pendency of such failure or refusal, and (ii) a
Defaulting Lender shall be deemed to have assigned any and all payments due to it from the Loan
Parties, whether on account of outstanding Loans, interest, fees or otherwise, to the remaining
non-Defaulting Lenders for application to, and reduction of, their proportionate shares of all
outstanding Obligations until, as a result of application of such assigned payments the Lenders’
respective Applicable Percentages of all outstanding Obligations shall have returned to those in
effect immediately prior to such delinquency and without giving effect to the nonpayment causing
such delinquency, and (iii) at the option of the Administrative Agent, any amount payable to such
Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise) shall,
in lieu of being distributed to such Defaulting Lender, be retained by the Administrative Agent as
cash collateral for future funding obligations of the Defaulting Lender in respect of any Loan or
existing or future participating interest in any Swing Line Loan or Letter of Credit. The
Defaulting Lender’s decision-making and participation rights and rights to payments as set forth in
clauses (i) and (ii) hereinabove shall be restored only upon the payment by the Defaulting Lender
of its Applicable Percentage of any Obligations, any participation obligation, or expenses as to
which it is delinquent, together with interest thereon at the rate set forth in Section
2.08(b) hereof from the date when originally due until the date upon which any such amounts are
actually paid.

          (b) The non-Defaulting Lenders shall also have the right, but not the obligation, in their
respective, sole and absolute discretion, to cause the termination and assignment, without any
further action by the Defaulting Lender for no cash consideration (pro rata, based
on the respective Domestic Commitments of those Domestic Lenders electing to exercise such right,
and the respective Canadian Commitments of those Canadian Lenders electing to exercise such right),
of the Defaulting Lender’s

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Domestic Commitment or Canadian Commitment, as applicable, to fund future Loans. Upon any
such purchase of the Applicable Percentage of any Defaulting Lender, the Defaulting Lender’s share
in future Credit Extensions and its rights under the Loan Documents with respect thereto shall
terminate on the date of purchase, and the Defaulting Lender shall promptly execute all documents
reasonably requested to surrender and transfer such interest, including, if so requested, an
Assignment and Assumption.

          (c) Each Defaulting Lender shall indemnify the Administrative Agent or the Canadian Agent, as
applicable, and each non-Defaulting Lender from and against any and all loss, damage or expenses,
including but not limited to reasonable attorneys’ fees and funds advanced by the Administrative
Agent or the Canadian Agent, as applicable, or by any non-Defaulting Lender, on account of a
Defaulting Lender’s failure to timely fund its Applicable Percentage of a Loan or to otherwise
perform its obligations under the Loan Documents.

     Actions In Concert. Anything in this Agreement to the contrary notwithstanding, each Lender
hereby agrees with each other Lender that no Lender shall take any action to protect or enforce its
rights arising out of this Agreement or any other Loan Document (including exercising any rights of
setoff) without first obtaining the prior written consent of the Agents and the Required Lenders,
it being the intent of Lenders that any such action to protect or enforce rights under this
Agreement and the other Loan Documents shall be taken in concert and at the direction or with the
consent of the Agents or the Required Lenders.

     Collateral Issues. Notwithstanding any other provisions of this Agreement or any of the other
Loan Documents to the contrary, each Co-Collateral Agent shall have rights at least as expansive as
the rights afforded to the Administrative Agent or the Canadian Agent relating to (i) (x) the
definitions herein of the terms “Domestic Availability” and “Canadian Availability” and any
component definition of either of the foregoing, and (y) the definitions herein of the terms
“Domestic Borrowing Base” and “Canadian Borrowing Base” and any component thereof (including,
without limitation, Reserves, advance rates, eligibility criteria, reporting requirements and
appraisals, examinations and collateral audits) and (ii) the validity, extent, perfection or
priority of the Liens granted to the Administrative Agent or the Canadian Agent in regards to the
Collateral (collectively, the “Collateral Issues”), and any provision in this Agreement or
any other Loan Document relating to a Collateral Issue which would otherwise only need the consent
of or to be satisfactory or acceptable to the Administrative Agent or the Canadian Agent shall be
deemed to require the consent of or be satisfactory or acceptable (as the case may be) to the
Co-Collateral Agents. In addition, in the event that all of the Agents and, as applicable, the
Canadian Agent, cannot agree on issues relating to the Domestic Borrowing Base, the Canadian
Borrowing Base, Domestic Availability, Canadian Availability, Domestic Borrowing Base eligibility
standards, Canadian Borrowing Base eligibility standards, Reserves, advance rates, borrowing base
reporting, appraisals or examinations or any other action or determination relating to a Collateral
Issue, the determination shall be made by the Agent and, if applicable, the Canadian Agent, either
asserting the more conservative credit judgment (that is, that would result in the least amount of
credit being available to the Borrowers hereunder) or declining to permit the requested action.

ARTICLE X

MISCELLANEOUS

     Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan
Document, and no Consent to any departure by any Loan Party therefrom, shall be effective unless in
writing signed by the Required Lenders (or the Administrative Agent, with the Consent of the
Required Lenders), and the Lead Borrower or the applicable Loan Party, as the case may be, and each
such waiver or Consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no such amendment, waiver or
consent shall:

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     (a) extend or increase the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Section 0) without the written Consent of such Lender;

     (b) postpone any date fixed by this Agreement or any other Loan Document for any
payment or mandatory prepayment of principal, interest or fees due to the applicable Lenders
(or any of them) hereunder without the written Consent of each Lender entitled to such
payment;

     (c) reduce the principal of, or the rate of interest specified herein on, any Loan or
L/C Borrowing, or any fees payable hereunder, without the written Consent of each Lender
entitled to such amount; provided, however, that only the Consent of the
Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive
any obligation of the Borrowers to pay interest or Letter of Credit Fees at the Default
Rate;

     (d) change Section 0 or Section 8.02 in a manner that would alter the
pro rata sharing of payments required thereby without the written Consent of each Lender;

     (e) change any provision of this Section or change the definition of “Required Lenders”
or any other provision hereof specifying the number or percentage of Lenders required to
amend, waive or otherwise modify any rights hereunder or make any determination or grant any
consent hereunder, without the written Consent of each Lender;

     (f) except as expressly permitted hereunder or under any other Loan Document, release,
or limit the liability of, any Loan Party without the written Consent of each Lender;

     (g) except for Permitted Dispositions, release all or substantially all of the
Collateral from the Liens of the Security Documents without the written Consent of each
Lender;

     (h) except as provided in Section 2.13, increase the Aggregate Domestic
Commitments or the Aggregate Canadian Commitments without the written Consent of each
Lender;

     (i) change the definition of the term “Domestic Borrowing Base”, “Canadian Borrowing
Base” or any component definition of either term, if as a result thereof the amount of
credit available to the Borrowers hereunder would be increased without the written Consent
of each Lender, provided that, subject to Section 0 hereof, the foregoing shall not
limit the discretion of any Agent to change, establish or eliminate any Reserves with
respect to the Domestic Borrowing Base, or of any Agent or the Canadian Agent to change,
establish or eliminate any Reserves with respect to the Canadian Borrowing Base even if such
change or elimination results in an increase in the amount of credit available to the
Borrowers hereunder;

     (j) modify the definition of “Permitted Domestic Overadvance” or the definition of
“Permitted Canadian Overadvance” so as to increase the amount thereof or, except as provided
in such definitions, the time period for a Permitted Domestic Overadvance or a Permitted
Canadian Overadvance without the written Consent of each Lender; and

     (k) except as expressly permitted herein or in any other Loan Document, subordinate any
of the Obligations hereunder or the Liens granted hereunder or under the other Loan
Documents, to any other Indebtedness or Lien, as the case may be without the written Consent
of each Lender;

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and, provided further, that (i) no amendment, waiver or Consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above, affect the rights
or duties of the L/C Issuer under this Agreement or any Issuer Document relating to any Letter of
Credit issued or to be issued by it; (ii) no amendment, waiver or Consent shall, unless in writing
and signed by the Swing Line Lender in addition to the Lenders required above, affect the rights or
duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or Consent shall,
unless in writing and signed by the Administrative Agent in addition to the Lenders required above,
affect the rights or duties of the Administrative Agent under this Agreement or any other Loan
Document; (iv) no amendment, waiver or Consent shall, unless in writing and signed by the Canadian
Agent in addition to the Lenders required above, affect the rights or duties of the Canadian Agent
under this Agreement or any other Loan Document; (v) no amendment, waiver or Consent shall, unless
in writing and signed by the Co-Collateral Agents in addition to the Lenders required above, affect
the rights or duties of any Co-Collateral Agent under this Agreement or any other Loan Document;
and (vi) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto. Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or Consent
hereunder, except that the Commitment of such Lender may not be increased or extended without the
consent of such Lender.

     If any Lender does not Consent (a “Non-Consenting Lender”) to a proposed amendment,
waiver, consent or release with respect to any Loan Document that requires the Consent of each or
each affected Lender and that has been approved by the Required Lenders, the Lead Borrower may
replace such Non-Consenting Lender in accordance with Section 0; provided that such
amendment, waiver, consent or release can be effected as a result of the assignment contemplated by
such Section (together with all other such assignments required by the Lead Borrower to be made
pursuant to this paragraph).

     10.02 Notices; Effectiveness; Electronic Communications.

          (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in subsection (b) below), all
notices and other communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail or sent by telecopier as
follows, and all notices and other communications expressly permitted hereunder to be given by
telephone shall be made to the applicable telephone number, as follows:

     (i) if to the Loan Parties, the Agents, the Canadian Agent, the L/C Issuer or the Swing
Line Lender, to the address, telecopier number, electronic mail address or telephone number
specified for such Person on Schedule 10.02; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

     Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall
be deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next Business Day for the recipient).
Notices delivered through electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

          (b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuer hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent or the Canadian Agent, as applicable, provided that the foregoing shall not apply to
notices to any Lender or the L/C Issuer pursuant to Article II if such Lender or the L/C
Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving
notices under such Article by electronic

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communication. The Administrative Agent or the Lead Borrower or the Canadian Agent and the
Canadian Borrower may, in their discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided that
approval of such procedures may be limited to particular notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next Business Day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

          (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Agents, the Canadian Agent or any of
their Related Parties (collectively, the “Agent Parties”) have any liability to any Loan
Party, any Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or
expenses of any kind (whether in tort, contract or otherwise) arising out of the Loan Parties’ or
the Agent Parties’ transmission of Borrower Materials through the Internet, except to the extent
that such losses, claims, damages, liabilities or expenses are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Agent Party; provided, however, that in no event shall
any Agent Party have any liability to any Loan Party, any Lender, the L/C Issuer or any other
Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct
or actual damages).

          (d) Change of Address, Etc. Each of the Loan Parties, the Agents, the Canadian Agent,
the L/C Issuer and the Swing Line Lender may change its address, telecopier or telephone number for
notices and other communications hereunder by notice to the other parties hereto. Each other
Lender may change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the Lead Borrower, the Agents, the Canadian Agent, the L/C Issuer and the
Swing Line Lender. In addition, each Lender agrees to notify the Administrative Agent from time to
time to ensure that the Administrative Agent has on record (i) an effective address, contact name,
telephone number, telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such Lender.

          (e) Reliance by Agents, L/C Issuer and Lenders. The Agents, the Canadian Agent, the
L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including telephonic
Committed Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of the Loan
Parties even if (i) such notices were not made in a manner specified herein, were incomplete or
were not preceded or followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof. The Loan Parties
shall indemnify the Agents, the Canadian Agent, the L/C Issuer, each Lender and the Related Parties
of each of them from all losses, costs, expenses and liabilities resulting from the reliance by
such Person on each notice purportedly given by or on behalf of the Loan Parties. All telephonic
notices to and other telephonic communications with

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the Agents and the Canadian Agent, may be recorded by the Agents or the Canadian Agent, and
each of the parties hereto hereby consents to such recording.

     No Waiver; Cumulative Remedies. No failure by any Credit Party to exercise, and no delay by
any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder or under any other Loan Document preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies, powers and
privileges provided herein and in the other Loan Documents are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law. Without limiting the generality of the
foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether any Credit Party may have had notice or knowledge of
such Default at the time.

     10.03 Expenses; Indemnity; Damage Waiver.

          (a) Costs and Expenses. The Borrowers shall pay all Credit Party Expenses (provided
that the Canadian Borrower shall be obligated to pay only those Credit Party Expenses which
constitute Credit Party Expenses incurred by the Canadian Agent or the Canadian Lenders in
connection with the Canadian Loans and Canadian Letters of Credit).

          (b) Indemnification by the Loan Parties. The Loan Parties shall indemnify the Agents
and the Canadian Agent (and any of their sub-agents), each other Credit Party, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, causes of action,
damages, liabilities, settlement payments, costs and related expenses (including the fees, charges
and disbursements of any counsel for any Indemnitee, but excluding Taxes which shall be governed by
Section 3.01), incurred by any Indemnitee or asserted against any Indemnitee by any third
party or by any Borrower or any other Loan Party arising out of, in connection with, or as a result
of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, or, in the case of the Agents and the Canadian Agent (and any of their
sub-agents) and their Related Parties only, the administration of this Agreement and the other Loan
Documents, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom
(including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if
the documents presented in connection with such demand do not strictly comply with the terms of
such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on
or from any property owned or operated by any Loan Party or any of its Subsidiaries, or any
Environmental Liability related in any way to any Loan Party or any of its Subsidiaries, (iv) any
claims of, or amounts paid by any Credit Party to, a Blocked Account Bank or other Person which has
entered into a control agreement with any Credit Party hereunder, or (v) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by any Borrower or any
other Loan Party or any of the Loan Parties’ directors, shareholders or creditors, and regardless
of whether any Indemnitee is a party thereto, in all cases, whether or not caused by or arising, in
whole or in part, out of the comparative, contributory or sole negligence of the Indemnitee;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by a
Borrower or any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s
obligations hereunder or under any other Loan Document, if such Borrower or such Loan Party has
obtained a final and nonappealable judgment in its favor on such claim as determined by a court of
competent jurisdiction; provided that with respect to the Canadian Loan Parties, “Indemnitees”
shall only refer to the Canadian Credit Parties and each Related Party of the Canadian Credit
Parties.

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          (c) Reimbursement by Lenders. Without limiting their obligations under Section
0 hereof, to the extent that the Loan Parties for any reason fail to indefeasibly pay any
amount required under subsection (a) or (b) of this Section to be paid by it, each Lender severally
agrees to pay to the Agents and the Canadian Agent (and any of their sub-agents), the L/C Issuer or
such Related Party, as the case may be, such Lender’s Applicable Percentage (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the Agents
and the Canadian Agent (and any of their sub-agents) or the L/C Issuer in its capacity as such, or
against any Related Party of any of the foregoing acting for the Agents and the Canadian Agent (and
any of their sub-agents) or L/C Issuer in connection with such capacity. The obligations of the
Lenders under this subsection (c) are subject to the provisions of Section 2.11(d).

          (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable Law, the Loan Parties shall not assert, and hereby waive, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the
proceeds thereof. No Indemnitee shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed to such unintended recipients by such
Indemnitee through telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions contemplated hereby
or thereby other than for direct or actual damages resulting from the gross negligence or willful
misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of
competent jurisdiction.

          (e) Payments. All amounts due under this Section shall be payable on demand therefor.

          (f) Survival. The agreements in this Section shall survive the resignation of any
Agent, the Canadian Agent and the L/C Issuer, the assignment of any Commitment or Loan by any
Lender, the replacement of any Lender, the termination of the Aggregate Total Commitments and the
repayment, satisfaction or discharge of all the other Obligations and the termination of this
Agreement.

     Reinstatement; Payments Set Aside. This Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against any Loan Party for liquidation
or reorganization or otherwise under any Debtor Relief Law, should any Loan Party become insolvent
or make an assignment for the benefit of any creditor or creditors or should a receiver, interim
receiver, trustee, monitor, custodian, conservator, liquidator, rehabilitator or similar officer be
appointed for all or any significant part of any Loan Party’s assets, and shall continue to be
effective or to be reinstated, as the case may be, if at any time payment and performance of the
Obligations, or any part thereof, is, pursuant to applicable Law, rescinded or reduced in amount,
or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable
preference”, “fraudulent conveyance”, or otherwise, all as though such payment or performance had
not been made. To the extent that any payment by or on behalf of the Loan Parties is made to any
Credit Party, or any Credit Party exercises its right of setoff, and such payment or the proceeds
of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement entered into by such
Credit Party in its discretion) to be repaid to a receiver, interim receiver, trustee, monitor,
custodian, conservator, liquidator, rehabilitator or similar officer, or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of
such recovery, the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such setoff had not
occurred, (b) each Domestic Lender and the L/C Issuer (with respect to Domestic Letters of Credit)
severally agrees to pay to the Agents upon demand its Applicable Percentage (without duplication)
of any amount so recovered from or repaid by the Agents, plus interest thereon from the date of
such demand to the date such payment is

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made at a rate per annum equal to the Federal Funds Rate from time to time in effect, and (c)
each Canadian Lender and the L/C Issuer (with respect to Canadian Letters of Credit) severally
agrees to pay to the Canadian Agent upon demand its Applicable Percentage (without duplication) of
any amount so recovered from or repaid by the Canadian Agent, plus interest thereon from the date
of such demand to the date such payment is made at a rate per annum equal to the Canadian Prime
Rate from to time in effect. The obligations of the Lenders and the L/C Issuer under clause (b)
and clause (c) of the preceding sentence shall survive the payment in full of the Obligations and
the termination of this Agreement.

     10.04 Successors and Assigns.

          (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that no Loan Party may assign or otherwise transfer any of its
rights or obligations hereunder or under any other Loan Document without the prior written Consent
of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of
its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the
provisions of Section 10.04(b), (ii) by way of participation in accordance with the
provisions of subsection Section 10.04(d), or (iii) by way of pledge or assignment of a
security interest subject to the restrictions of Section 10.04(f) (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby, Participants to the extent provided in
subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Credit Parties) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

          (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment(s) and the Loans (including for purposes of this Section
10.04(b), participations in L/C Obligations and in Swing Line Loans) at the time owing to it);
provided that any such assignment shall be subject to the following conditions:

     (i) Minimum Amounts

          (A) in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an assignment to
a Lender or a Lender Affiliate of a Lender or an Approved Fund with respect to a Lender, no
minimum amount need be assigned; and

          (B) in any case not described in subsection (b)(i)(A) of this Section, the
aggregate amount of the Commitment (which for this purpose includes Loans outstanding
thereunder) or, if the Commitment is not then in effect, the principal outstanding balance
of the Loans of the assigning Lender subject to each such assignment, determined as of the
date the Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as
of the Trade Date, shall not be less than $10,000,000 unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the Lead Borrower
otherwise consents (each such consent not to be unreasonably withheld or delayed);
provided, however, that concurrent assignments to members of an Assignee
Group and concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has been met;

     (ii) Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement with respect to the Loans or the Commitment assigned, except that this
clause (ii) shall not apply to the Swing Line Lender’s rights and obligations in respect of
Swing Line Loans;

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     (iii) Required Consents. No consent shall be required for any assignment
except to the extent required by subsection (b)(i)(B) of this Section and, in
addition:

          (A) the consent of the Lead Borrower (such consent not to be unreasonably withheld or
delayed) shall be required unless (1) an Event of Default has occurred and is continuing at
the time of such assignment or (2) such assignment is to a Lender, a Lender Affiliate of a
Lender or an Approved Fund; and

          (B) the consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed) shall be required for assignments in respect of any Commitment if such
assignment is to a Person that is not a Lender, a Lender Affiliate of such Lender or an
Approved Fund with respect to such Lender; and

          (C) the consent of the L/C Issuer (such consent not to be unreasonably withheld or
delayed) shall be required for any assignment that increases the obligation of the assignee
to participate in exposure under one or more Letters of Credit (whether or not then
outstanding) if such assignment is to a Person that is not a Lender, a Lender Affiliate of
such Lender or an Approved Fund with respect to such Lender; and

          (D) the consent of the Swing Line Lender (such consent not to be unreasonably withheld
or delayed) shall be required for any assignment in respect of the assignment of any
Commitment if such assignment is to a Person that is not a Lender, a Lender Affiliate of
such Lender or an Approved Fund with respect to such Lender provided that the provisions of
this clause (iii) shall not apply to any assignment to Rhône Capital L.P. or its Affiliates
pursuant to the purchase right in Section 5.4 of the Intercreditor Agreement. The parties
agree that Rhône Capital L.P. (“Rhône”) is a vested third party beneficiary of this Section
10.06 solely to the extent of its purchase right in the Intercreditor Agreement, and the
parties agree that this Section 10.06 shall not be amended in a manner that would prohibit
such purchase right without the prior written consent of Rhône.

     (iv) Assignment and Assumption. The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500, provided, however, that the
Administrative Agent may, in its sole discretion, elect to waive such processing and
recordation fee in the case of any assignment. The assignee, if it shall not be a Lender,
shall deliver to the Administrative Agent an Administrative Questionnaire.

     (v) Restrictions on Canadian Lenders. No Person may be a Canadian Lender
unless it (or any of its Lender Affiliates) also has a Domestic Commitment in an amount at
least equal to its Canadian Commitment, unless consented to by the Administrative Agent.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 3.01, 3.02, 0, and 10.03 with
respect to facts and circumstances occurring prior to the effective date of such assignment. Upon
request, the applicable Borrowers (at their expense) shall execute and deliver a Note to the
assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in accordance with
Section 10.04(d).

          (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Loan Parties, shall maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Lenders,

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and the Commitments of, and principal amounts of the Loans and L/C Obligations owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, absent manifest error, and the Loan Parties, the Administrative Agent
and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Lead Borrower, the Canadian
Borrower and any Lender at any reasonable time and from time to time upon reasonable prior notice.
This Section 10.06(c) shall be construed so that the Obligations are at all times
maintained in “registered form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of
the Code and any regulations promulgated thereunder (and any other relevant or successor provisions
of the Code or such regulations).

          (d) Participations. Any Lender may at any time, without the consent of, or notice to,
the Loan Parties or the Administrative Agent, sell participations to any Person (other than a
natural person or the Loan Parties or any of the Loan Parties’ Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Domestic Commitment, Canadian Commitment and/or the
Loans (including such Lender’s participations in L/C Obligations and/or Swing Line Loans) owing to
it); provided that (i) such Lender’s obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Loan Parties, the Agents, the Lenders and the L/C
Issuer shall continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. Any Participant shall agree in writing to comply with
all confidentiality obligations set forth in Section 0 as if such Participant was a Lender
hereunder.

     Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the consent of the Participant, agree
to any amendment, waiver or other modification described in the first proviso to Section 0
that affects such Participant. Subject to subsection (e) of this Section, the Loan Parties agree
that each Participant shall be entitled to the benefits of Sections 3.01, 3.02 and
0 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to Section 10.04(b), provided that such Participant’s participation is
recorded in the Register as set forth in Section 10.06(c) as though it were a Lender. To
the extent permitted by Law, each Participant also shall be entitled to the benefits of Section
0 as though it were a Lender, provided such Participant agrees to be subject to Section
0 as though it were a Lender and such Participant’s participation is recorded in the Register
as set forth in Section 10.06(c) as though it were a Lender..

          (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.02 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant. A
Participant shall not be entitled to the benefits of Section 3.01 unless the Lead Borrower
is notified of the participation sold to such Participant and such Participant complies, for the
benefit of the Loan Parties, with Section 3.01(e), as though it were a Lender.

          (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

          (g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based

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recordkeeping system, as the case may be, to the extent and as provided for in any applicable
law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York
State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

          (h) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding
anything to the contrary contained herein, if at any time Bank of America assigns all of its
Commitment and Loans pursuant to subsection (b) above, Bank of America may, (i) upon 30 days’
notice to the Lead Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice
to the Lead Borrower, resign as Swing Line Lender. In the event of any such resignation as L/C
Issuer or Swing Line Lender, the Lead Borrower shall be entitled to appoint from among the Lenders
a successor L/C Issuer or Swing Line Lender hereunder; provided, however, that no
failure by the Lead Borrower to appoint any such successor shall affect the resignation of Bank of
America as L/C Issuer or Swing Line Lender, as the case may be. If Bank of America resigns as L/C
Issuer, it shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder
with respect to all Letters of Credit issued by Bank of America or its Lender Affiliates
outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with
respect thereto (including the right to require the Lenders to make Prime Rate Loans or fund risk
participations in Unreimbursed Amounts pursuant to Section 2.03(c)). If Bank of America
resigns as Swing Line Lender, it shall retain all the rights of the Swing Line Lender provided for
hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of
such resignation, including the right to require the Lenders to make Prime Rate Loans or fund risk
participations in outstanding Swing Line Loans pursuant to Section 2.04(c). Upon the
appointment of a successor L/C Issuer and/or Swing Line Lender, (a) such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer
or Swing Line Lender, as the case may be, and (b) the successor L/C Issuer shall issue letters of
credit in substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory to Bank of America or Bank of America, N.A.
(acting through its Canada branch), as applicable, to effectively assume the obligations of Bank of
America or Bank of America, N.A. (acting through its Canada branch), as applicable, with respect to
such Letters of Credit.

     Treatment of Certain Information; Confidentiality. Each of the Credit Parties agrees to
maintain the confidentiality of the Information (as defined below), except that Information may be
disclosed (a) to its Lender Affiliates and to its and its Lender Affiliates’ respective partners,
directors, officers, employees, agents, funding sources, attorneys, advisors and representatives
(it being understood that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information confidential), (b)
to the extent requested by any regulatory authority purporting to have jurisdiction over it
(including any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable Laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any
remedies hereunder or under any other Loan Document or any action or proceeding relating to this
Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f)
subject to an agreement containing provisions substantially the same as those of this Section, to
(i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to any Loan Party and its obligations, (g)
with the consent of the Lead Borrower or (h) to the extent such Information (x) becomes publicly
available other than as a result of a breach of this Section or (y) becomes available to any Credit
Party or any of their respective Lender Affiliates on a non-confidential basis from a source other
than the Loan Parties (only if such Credit Party has no knowledge that such source itself is not in
breach of a confidentiality obligation).

     For purposes of this Section, “Information” means all information received from the Loan
Parties or any Subsidiary thereof relating to the Loan Parties or any Subsidiary thereof or their
respective businesses, other than any such information that is available to any Credit Party on a
non-confidential

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basis prior to disclosure by the Loan Parties or any Subsidiary thereof (provided that
if such information is furnished by a source known to such Credit Party to be subject to a
confidentiality obligation, such source, to the knowledge of such Credit Party, is not in violation
of such obligation by such disclosure). Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered to have complied with its obligation to
do so if such Person has exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

     Each of the Credit Parties acknowledges that (a) the Information may include material
non-public information concerning the Loan Parties or a Subsidiary, as the case may be, (b) it has
developed compliance procedures regarding the use of material non-public information and (c) it
will handle such material non-public information in accordance with applicable Law, including
Federal and state securities Laws.

     Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender,
the L/C Issuer and each of their respective Lender Affiliates is hereby authorized at any time and
from time to time, after obtaining the prior written consent of the Administrative Agent or the
Required Lenders, to the fullest extent permitted by applicable law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final, in whatever currency) at
any time held and other obligations (in whatever currency) at any time owing by such Lender, the
L/C Issuer or any such Lender Affiliate to or for the credit or the account of the Borrowers or any
other Loan Party against any and all of the Obligations existing under this Agreement or any other
Loan Document then due and owing to such Lender or the L/C Issuer, regardless of the adequacy of
the Collateral, and irrespective of whether or not such Lender or the L/C Issuer shall have made
any demand under this Agreement or any other Loan Document and although such obligations of the
Borrowers or such Loan Party are owed to a branch or office of such Lender or the L/C Issuer
different from the branch or office holding such deposit or obligated on such indebtedness. The
rights of each Lender, the L/C Issuer and their respective Lender Affiliates under this Section are
in addition to other rights and remedies (including other rights of setoff) that such Lender, the
L/C Issuer or their respective Lender Affiliates may have. Each Lender and the L/C Issuer agrees
to notify the Lead Borrower and the Administrative Agent promptly after any such setoff and
application, provided that the failure to give such notice shall not affect the validity of
such setoff and application. Notwithstanding the foregoing, any amounts of the Canadian Loan
Parties so offset shall be applied solely to the Canadian Liabilities.

     Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Loan
Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If
the Administrative Agent, the Canadian Agent or any Lender shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if
it exceeds such unpaid principal, refunded to the applicable Borrowers. In determining whether the
interest contracted for, charged, or received by the Administrative Agent, the Canadian Agent or a
Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a)
characterize any payment that is not principal as an expense, fee, or premium rather than interest,
(b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the contemplated term of
the Obligations hereunder.

     Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and
by different parties hereto in different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract. This Agreement and the
other Loan Documents constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous letters of intent, commitment letters, agreements
and understandings, oral

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or written, relating to the subject matter hereof; provided that the Fee Letter shall survive
the execution and delivery of this Agreement and shall continue to be a binding obligation of each
of the parties thereto. Except as provided in Section 0, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when the Administrative
Agent shall have received counterparts hereof that, when taken together, bear the signatures of
each of the other parties hereto. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy or other electronic image scan transmission (e.g., “pdf” or “tif” via e-mail)
shall be as effective as delivery of a manually executed counterpart of this Agreement.

     Survival. All representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith or therewith shall
survive the execution and delivery hereof and thereof. Such representations and warranties have
been or will be relied upon by the Credit Parties, regardless of any investigation made by any
Credit Party or on their behalf and notwithstanding that any Credit Party may have had notice or
knowledge of any Default at the time of any Credit Extension, and shall continue in full force and
effect as long as any Loan or any other Obligation hereunder (other than contingent indemnity
obligations for which claims have not been asserted) shall remain unpaid or unsatisfied or any
Letter of Credit shall remain outstanding. Further, the provisions of Article III,
Article IX and Section 10.04 all survive and remain in full force and effect after
the expiration or termination of the Letters of Credit and the Commitments or the termination of
this Agreement or any provision hereof and repayment of all of the Obligations (including, without
limitation, those arising under Article III, Article IX and Section 10.04)
hereunder. In connection with the termination of this Agreement and the release and termination of
the security interests in the Collateral, the Agents or the Canadian Agent may require such
indemnities and collateral security as they shall reasonably deem necessary or appropriate to
protect the Credit Parties against (x) loss on account of credits previously applied to the
Obligations that may subsequently be reversed or revoked, and (y) any obligations that may
thereafter arise with respect to the Other Liabilities.

     Severability. If any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining
provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a
provision in a particular jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

     Replacement of Lenders. If any Lender requests compensation under Section 3.02, or if
any Lender delivers a notice described in Section 3.02, the Loan Parties are required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 3.01, or if any Lender is a Defaulting Lender or a Non-Consenting
Lender, then the Lead Borrower may, at the Borrowers’ (in the case of the Canadian Borrower, only
in respect of any Canadian Lender) sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Section
10.04), all of its interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment), provided that:

     (b) the applicable Borrowers shall have paid to the Administrative Agent the assignment
fee specified in Section (b);

     (c) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees in respect
thereof

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and all other amounts payable to it hereunder and under the other Loan Documents in
respect thereof (including any amounts under Section 0) from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or the Borrowers (in the
case of all other amounts);

     (d) in the case of any such assignment resulting from a claim for compensation under
Section 3.02 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments thereafter; and

     (e) such assignment does not conflict with applicable Laws.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to
require such assignment and delegation cease to apply.

     10.05 Governing Law; Jurisdiction; Etc.

          (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

          (b) SUBMISSION TO JURISDICTION. EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE
OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN
DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE LOAN PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT
ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK
STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF
THE LOAN PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT ANY CREDIT PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

          (c) WAIVER OF VENUE. EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE LOAN
PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

          (d) SERVICE OF PROCESS. EACH LOAN PARTY IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN
THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT
THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

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          (e) ACTIONS COMMENCED BY LOAN PARTIES. EACH LOAN PARTY AGREES THAT ANY ACTION
COMMENCED BY ANY LOAN PARTY ASSERTING ANY CLAIM OR COUNTERCLAIM ARISING UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT SOLELY IN A COURT OF THE STATE OF NEW
YORK SITTING IN NEW YORK COUNTY OR ANY FEDERAL COURT SITTING THEREIN AS THE ADMINISTRATIVE AGENT
MAY ELECT IN ITS SOLE DISCRETION AND CONSENTS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS WITH
RESPECT TO ANY SUCH ACTION.

     Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction
contemplated hereby, the Loan Parties each acknowledge and agree that: (i) the credit facility
provided for hereunder and any related arranging or other services in connection therewith
(including in connection with any amendment, waiver or other modification hereof or of any other
Loan Document) are an arm’s-length commercial transaction between the Loan Parties, on the one
hand, and the Credit Parties, on the other hand, and each of the Loan Parties is capable of
evaluating and understanding and understands and accepts the terms, risks and conditions of the
transactions contemplated hereby and by the other Loan Documents (including any amendment, waiver
or other modification hereof or thereof); (ii) in connection with the process leading to such
transaction, each Credit Party is and has been acting solely as a principal and is not the
financial advisor, agent or fiduciary, for the Loan Parties or any of their respective Affiliates,
stockholders, creditors or employees or any other Person; (iii) none of the Credit Parties has
assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Loan Parties
with respect to any of the transactions contemplated hereby or the process leading thereto,
including with respect to any amendment, waiver or other modification hereof or of any other Loan
Document (irrespective of whether any of the Credit Parties has advised or is currently advising
any Loan Party or any of its Affiliates on other matters) and none of the Credit Parties has any
obligation to any Loan Party or any of its Affiliates with respect to the transactions contemplated
hereby except those obligations expressly set forth herein and in the other Loan Documents; (iv)
the Credit Parties and their respective Lender Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Loan Parties and their respective
Lender Affiliates, and none of the Credit Parties has any obligation to disclose any of such
interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Credit Parties
have not provided and will not provide any legal, accounting, regulatory or tax advice with respect
to any of the transactions contemplated hereby (including any amendment, waiver or other
modification hereof or of any other Loan Document) and each of the Loan Parties has consulted its
own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. Each
of the Loan Parties hereby waives and releases, to the fullest extent permitted by law, any claims
that it may have against each of the Credit Parties with respect to any breach or alleged breach of
agency or fiduciary duty.

-156-

 

     USA PATRIOT Act Notice; Proceeds of Crime Act . Each Lender that is subject to the Patriot
Act and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the
Loan Parties that pursuant to the requirements of the Patriot Act and all applicable “know your
customer” rules, regulations and procedures applicable to such Lender in Canada), it is required to
obtain, verify and record information that identifies each Loan Party, which information includes
the name and address of each Loan Party and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify each Loan Party in accordance with the Act. Each
Loan Party is in compliance, in all material respects, with the Patriot Act and the Proceeds of
Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “Proceeds of Crime
Act”). No part of the proceeds of the Loans will be used by the Loan Parties, directly or
indirectly, for any purpose which would contravene or breach the Proceeds of Crime Act or for any
payments to any governmental official or employee, political party, official of a political party,
candidate for political office, or anyone else acting in an official capacity, in order to obtain,
retain or direct business or obtain any improper advantage, in violation of the United States
Foreign Corrupt Practices Act of 1977, as amended.

     Foreign Asset Control Regulations. Neither of the advance of the Loans, the issuance of the
Letters of Credit, nor the use of the proceeds of any thereof will violate the Trading With the
Enemy Act (50 U.S.C. § 1 et seq., as amended) (the “Trading With the Enemy Act”) or any of
the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) (the “Foreign Assets Control Regulations”) or any enabling
legislation or executive order relating thereto (which for the avoidance of doubt shall include,
but shall not be limited to (a) Executive Order 13224 of September 21, 2001 Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed.
Reg. 49079 (2001)) (the “Executive Order”) and (b) the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law
107-56)). Furthermore, none of the Loan Parties or their Affiliates (a) is or will become a
“blocked person” as described in the Executive Order, the Trading With the Enemy Act or the Foreign
Assets Control Regulations or (b) engages or will engage in any dealings or transactions, or be
otherwise associated, with any such “blocked person” or in any manner violative of any such order.

     Time of the Essence. Time is of the essence of the Loan Documents.

     10.06 Foreign Subsidiaries.

     Notwithstanding any provision of any Loan Document to the contrary, (including any provision
that would otherwise apply notwithstanding other provisions or that is the beneficiary of other
overriding language), (i) no more than 65% of the total combined voting power of all classes of
stock entitled to vote in or of any CFC shall be pledged or similarly hypothecated to guarantee or
support any Obligation of the Domestic Borrowers, (ii) no CFC shall guarantee or support any
Obligation of the Domestic Borrowers and (iii) no security or similar interest shall be granted in
the assets of any CFC, which security or similar interest guarantees or supports any Obligation of
the Domestic Borrowers. The parties agree that any pledge, guaranty or similar interest made or
granted in contravention of this Section 10.21 shall be void ab initio. For purposes of
this Section 10.21, a CFC shall include a Subsidiary substantially all of the assets of
which consist of Equity Interests in one or more CFCs.

     10.07 Press Releases.

          (a) Each Credit Party executing this Agreement agrees that neither it nor its Lender
Affiliates will in the future issue any press releases or other public disclosure using the name of
any Lender or Agent or the Canadian Agent or such Person’s Lender Affiliates or referring to this
Agreement or the other Loan Documents without at least two (2) Business Days’ prior notice to such
Lender or Agent

-157-

 

or Canadian Agent and without the prior written consent of such Lender or Agent or Canadian
Agent unless (and only to the extent that) such Credit Party or Lender Affiliate is required to do
so under applicable Law and then, in any event, such Credit Party or Lender Affiliate will consult
with such Lender or Agent or Canadian Agent before issuing such press release or other public
disclosure.

          (b) Each Credit Party agrees that neither it nor its Lender Affiliates will in the future
issue any press releases or other public disclosure using the name of the Parent or its
Subsidiaries without at least two (2) Business Days’ prior notice to the Administrative Agent and
without the prior written consent of the Administrative Agent unless (and only to the extent that)
such Credit Party or Lender Affiliate is required to do so under applicable Law and then, in any
event, such Credit Party or Lender Affiliate will consult with the Lead Borrower before issuing
such press release or other public disclosure. Subject to the foregoing, each Loan Party consents
to the publication by Administrative Agent or any Lender of advertising material relating to the
financing transactions contemplated by this Agreement using any Loan Party’s name, product
photographs, logo or trademark. Administrative Agent or such Lender shall provide a draft
reasonably in advance of any advertising material to the Lead Borrower for review and comment prior
to the publication thereof and reasonably cooperate with Lead Borrower in connection with any
modifications requested by Lead Borrower. Administrative Agent reserves the right to provide to
industry trade organizations information necessary and customary for inclusion in league table
measurements.

     10.08 Additional Waivers.

          (a) Except as provided herein or in any other Loan Document or pursuant to any amendment or
waiver executed pursuant to Section 10.01, the Obligations (including, for avoidance of
doubt, the Canadian Liabilities) are the joint and several obligation of each Loan Party; provided
that the Canadian Borrower and the other Canadian Loan Parties shall be liable only for the
Canadian Liabilities. To the fullest extent permitted by applicable Law, the obligations of each
Loan Party shall not be affected by (i) the failure of any Credit Party to assert any claim or
demand or to enforce or exercise any right or remedy against any other Loan Party under the
provisions of this Agreement, any other Loan Document or otherwise, (ii) any release of any other
Loan Party from any of the terms or provisions of, this Agreement or any other Loan Document, or
(iii) the failure to perfect any security interest in, or the release of, any of the Collateral or
other security held by or on behalf of the Administrative Agent, the Canadian Agent, the
Co-Collateral Agents or any other Credit Party.

          (b) Except as provided herein or in any other Loan Document or pursuant to any amendment or
waiver executed pursuant to Section 10.01, the Obligations of each Loan Party shall not be
subject to any reduction, limitation, impairment or termination for any reason (other than the
indefeasible payment in full in cash of the Obligations after the termination of the Commitments),
including any claim of waiver, release, surrender, alteration or compromise of any of the
Obligations, and shall not be subject to any defense or setoff, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality or unenforceability of any of the
Obligations or otherwise. Without limiting the generality of the foregoing, the Obligations of each
Loan Party shall not be discharged or impaired or otherwise affected by the failure of any Agent or
any other Credit Party to assert any claim or demand or to enforce any remedy under this Agreement,
any other Loan Document or any other agreement, by any waiver or modification of any provision of
any thereof, any default, failure or delay, willful or otherwise, in the performance of any of the
Obligations, or by any other act or omission that may or might in any manner or to any extent vary
the risk of any Loan Party or that would otherwise operate as a discharge of any Loan Party as a
matter of law or equity (other than the indefeasible payment in full in cash of all of the
Obligations after the termination of the Commitments).

          (c) To the fullest extent permitted by applicable Law, each Loan Party waives any defense
based on or arising out of any defense of any other Loan Party or the unenforceability of the
Obligations or any part thereof from any cause, or the cessation from any cause of the liability of
any other Loan Party, other than the indefeasible payment in full in cash of all the Obligations
and the termination of the Commitments. The Administrative Agent, the Canadian Agent and the other
Credit

-158-

 

Parties may, at their election, foreclose on any security held by one or more of them by one or
more judicial or non-judicial sales, accept an assignment of any such security in lieu of
foreclosure, compromise or adjust any part of the Obligations, make any other accommodation with
any other Loan Party, or exercise any other right or remedy available to them against any other
Loan Party, without affecting or impairing in any way the liability of any Loan Party hereunder
except to the extent that all the Obligations have been indefeasibly paid in full in cash and the
Commitments have been terminated. Each Loan Party waives any defense arising out of any such
election even though such election operates, pursuant to applicable Law, to impair or to extinguish
any right of reimbursement or subrogation or other right or remedy of such Loan Party against any
other Loan Party, as the case may be, or any security.

          (d) Each Domestic Borrower is obligated to repay the Obligations as joint and several obligors
under this Agreement. Upon payment by any Loan Party of any Obligations, all rights of such Loan
Party against any other Loan Party arising as a result thereof by way of right of subrogation,
contribution, reimbursement, indemnity or otherwise shall in all respects be subordinate and junior
in right of payment to the prior indefeasible payment in full in cash of all the Obligations and
the termination of the Commitments. Any indebtedness of any Loan Party now or hereafter held by
any other Loan Party is hereby subordinated in right of payment to the prior indefeasible payment
in full of the Obligations but may be paid in the ordinary course of business. If any amount shall
erroneously be paid to any Loan Party on account of (i) such subrogation, contribution,
reimbursement, indemnity or similar right or (ii) any such indebtedness of any Loan Party, such
amount shall be held in trust for the benefit of the Credit Parties and shall forthwith be paid to
the Administrative Agent or the Canadian Agent, as applicable, to be credited against the payment
of the applicable Obligations, whether matured or unmatured, in accordance with the terms of this
Agreement and the other Loan Documents. Subject to the foregoing, to the extent that any Domestic
Borrower shall, under this Agreement as a joint and several obligor, repay any of the Obligations
constituting Loans made to another Borrower hereunder or other Obligations incurred directly and
primarily by any other Borrower (an “Accommodation Payment”), then the Domestic Borrower
making such Accommodation Payment shall be entitled to contribution and indemnification from, and
be reimbursed by, each of the other Domestic Borrowers (or the Canadian Borrower, if applicable) in
an amount, (x) for each of such other Domestic Borrower, equal to a fraction of such Accommodation
Payment, the numerator of which fraction is such other Domestic Borrower’s Allocable Amount and the
denominator of which is the sum of the Allocable Amounts of all of the Domestic Borrowers, or (y)
for the Canadian Borrower, in an amount equal to such Accommodation Payment. As of any date of
determination, the “Allocable Amount” of each Domestic Borrower shall be equal to the
maximum amount of liability for Accommodation Payments which could be asserted against such
Domestic Borrower hereunder without (a) rendering such Domestic Borrower “insolvent” within the
meaning of Section 101 (31) of the Bankruptcy Code, Section 2 of the Uniform Fraudulent Transfer
Act (“UFTA”) or Section 2 of the Uniform Fraudulent Conveyance Act (“UFCA”), (b)
leaving such Domestic Borrower with unreasonably small capital or assets, within the meaning of
Section 548 of the Bankruptcy Code, Section 4 of the UFTA, or Section 5 of the UFCA, or (c) leaving
such Domestic Borrower unable to pay its debts as they become due within the meaning of Section 548
of the Bankruptcy Code or Section 4 of the UFTA, or Section 5 of the UFCA.

     Without limiting the generality of the foregoing, or of any other waiver or other provision
set forth in this Agreement, each Loan Party hereby absolutely, knowingly, unconditionally, and
expressly waives any and all claim, defense or benefit arising directly or indirectly under any one
or more of Sections 2787 to 2855 inclusive of the California Civil Code or any similar law of
California.

          (e) Judgment Currency. If, for the purposes of obtaining judgment in any court in any
jurisdiction with respect to this Agreement or any other Loan Document, it becomes necessary to
convert into a particular currency (the “Judgment Currency”) any amount due under this
Agreement or under any other Loan Document in any currency other than the Judgment Currency (the
“Currency Due”), then conversion shall be made at the rate of exchange prevailing on the
Business Day before the day on which judgment is given. For this purpose “rate of exchange” means
the rate at which the applicable

-159-

 

Agent or the Canadian Agent, as applicable, is able, on the relevant date, to purchase the
Currency Due with the Judgment Currency in accordance with its normal practice. In the event that
there is a change in the rate of exchange prevailing between the Business Day before the day on
which the judgment is given and the date of receipt by such Agent or the Canadian Agent, as
applicable, of the amount due such Agent or the applicable Loan Party will, on the date of receipt
by such Agent or the Canadian Agent, as applicable, pay such additional amounts, if any, or be
entitled to receive reimbursement of such amount, if any, as may be necessary to ensure that the
amount received by such Agent or the Canadian Agent, as applicable, on such date, as applicable, is
the amount in the Judgment Currency which when converted at the rate of exchange prevailing on the
date of receipt by the Canadian Agent, as applicable, is the amount then due under this Agreement
or such other Loan Document in the Currency Due. If the amount of the Currency Due which the
applicable Agent or the Canadian Agent is so able to purchase is less than the amount of the
Currency Due originally due to it, the applicable Loan Party shall indemnify and save the Agents,
the Canadian Agent, the L/C Issuer and the Lenders harmless from and against all loss or damage
arising as a result of such deficiency. This indemnity shall constitute an obligation separate and
independent from the other obligations contained in this Agreement and the other Loan Documents,
shall give rise to a separate and independent cause of action, shall apply irrespective of any
indulgence granted by any Agent or the Canadian Agent, as applicable, from time to time and shall
continue in full force and effect notwithstanding any judgment or order for a liquidated sum in
respect of an amount due under this Agreement or any other Loan Document or under any judgment or
order.

     No Strict Construction. The parties hereto have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement.

     Attachments. The exhibits and schedules attached to this Agreement are incorporated herein
and shall be considered a part of this Agreement for the purposes stated herein, except that in the
event of any conflict between any of the provisions of such exhibits (other than the Intercreditor
Agreement) and the provisions of this Agreement, the provisions of this Agreement shall prevail.

     Conflict of Terms. Except as otherwise provided in this Agreement or any of the other Loan
Documents by specific reference to the applicable provisions of this Agreement, if any provision
contained in this Agreement conflicts with any provision in any of the other Loan Documents (other
than the Intercreditor Agreement), the provision contained in this Agreement shall govern and
control.

[SIGNATURE PAGES FOLLOW]

-160-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the date first above written.

	 	 	 	 	 
	 	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:  	 	 

-1-

 

	 	 	 	 	 

	 	 	 	 	 
	 	QS RETAIL, INC.,

as a Domestic Borrower

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	QUIKSILVER, INC.,

as a Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

-2-

 

	 	 	 	 	 
	 	QUIKSILVER CANADA CORP.,

as the Canadian Borrower

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

	 	 	 	 	 
	 	QS RETAIL CANADA CORP.,

as a Guarantor

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

-3-

 

	 	 	 	 	 
	 	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:  	 	 
	 

-4-

 

	 	 	 	 	 
	 	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:  	 	 
	 

-5-

 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL 

CORPORATION, as
Co-Collateral Agent

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	GENERAL ELECTRIC CAPITAL 

CORPORATION, as a
Domestic Lender

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

-6-

 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL 

CORPORATION, as a
Canadian Lender

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

-7-

 

Schedule 1.01

to Credit Agreement

BORROWERS

	1.	 	Quiksilver Americas, Inc.
	2.	 	DC Shoes, Inc.
	3.	 	Hawk Designs, Inc.
	4.	 	Mervin Manufacturing, Inc.
	5.	 	QS Wholesale, Inc.
	6.	 	QS Retail, Inc.

 

 

Schedule 1.02

to Credit Agreement

GUARANTOR OF OBLIGATIONS

	1.	 	Quiksilver, Inc.

GUARANTOR OF CANADIAN OBLIGATIONS

	1.	 	QS Retail Canada Corp.

 

 

Schedule 2.01

to Credit Agreement

DOMESTIC COMMITMENTS AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 	 	 
	Domestic Lender	 	Commitment	 	 	Applicable Percentage
	Bank of America, N.A.
	 	$	92,500,000	 	 	 	50	%
	 
	 	 	 	 	 	 	 	 
	General Electric Capital
Corporation
	 	$	92,500,000	 	 	 	50	%
	 
	 	 	 	 	 	 	 	 
	Total:
	 	$	185,000,000	 	 	 	100	%

CANADIAN COMMITMENTS AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 	 	 
	Canadian Lender	 	Commitment	 	 	Applicable Percentage
	Bank of America, N.A. (acting
through its Canada branch)
	 	$	7,500,000	 	 	 	50	%
	 
	 	 	 	 	 	 	 	 
	General Electric Capital Corporation
	 	$	7,500,000	 	 	 	50	%
	 
	 	 	 	 	 	 	 	 
	Total:
	 	$	15,000,000	 	 	 	100	%

 

 

Schedule 4.01(a)(x)

to Credit Agreement

CLOSING DATE SECURITY DOCUMENTS

1. Security Agreement (Domestic Loan Parties)

2. General Security Agreement (Quiksilver Canada Corp.)

3. General Security Agreement (QS Retail Canada Corp.)

4. Intellectual Property Security Agreement (Domestic Loan Parties)

5. Deed of Hypothec to be filed in Quebec for Quiksilver Canada Corp.

6. Deed of Hypothec to be filed in Quebec for QS Retail Canada Corp.

7. Pledge Agreement from Quiksilver, Inc., Quiksilver Americas, Inc., and DC Shoes Inc. with
respect to the Pledged Securities

 

 

Schedule 4.01(a)(xi)

to Credit Agreement

OTHER CLOSING DATE LOAN DOCUMENTS

1. Guaranty of Obligations from Guarantors which are Domestic Loan Parties

2. Guaranty of Canadian Liabilities from Guarantors which are Canadian Loan Parties

3. Perfection Certificate for all Canadian Loan Parties

4. Committed Loan Notice (Domestic)

5. Committed Loan Notice (Canadian)

6. Post Closing Agreement

 

 

Schedule 5.01

to Credit Agreement

LOAN PARTIES’ ORGANIZATIONAL INFORMATION

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Organizational ID	 	 
	 	 	Jurisdiction of	 	 	 	Number / Registry	 	FEIN / Corporate
	Name	 	Organization	 	Type of Organization	 	Number	 	Tax Number
	Quiksilver, Inc.
	 	Delaware	 	Corporation	 	2105452	 	33-0199426
	Quiksilver Americas, Inc.
	 	California	 	Corporation	 	C2670927	 	14-1914126
	DC Shoes, Inc.
	 	California	 	Corporation	 	C1844922	 	33-0610965
	Hawk Designs, Inc.
	 	California	 	Corporation	 	C2119497	 	33-0831121
	Mervin Manufacturing, Inc.
	 	California	 	Corporation	 	C1685430	 	33-0461211
	QS Wholesale, Inc.
	 	California	 	Corporation	 	C2670928	 	80-0118795
	QS Retail, Inc.
	 	California	 	Corporation	 	C2000264	 	33-0740505
	Quiksilver Canada Corp.
	 	Nova Scotia	 	Unlimited Liability	 	3096129	 	86029 6037 RC0001
	 
	 	 	 	Company	 	 	 	 
	QS Retail Canada Corp.
	 	Nova Scotia	 	Unlimited Liability	 	3192873	 	834615569--RC0001
	 
	 	 	 	Company	 	 	 	 

 

 

Schedule 5.05

to Credit Agreement

MATERIAL INDEBTEDNESS AND OTHER LIABILITIES

1. Indenture, dated as of July 22, 2005 (the “Indenture”), among Quiksilver, Inc., the
Subsidiary Guarantors party thereto and Wilmington Trust Company, as trustee.

2. Credit Agreement, dated as of July 31, 2009, among Quiksilver, Inc., Quiksilver Americas, Inc.,
the lenders party thereto and Rhône Group L.L.C., as administrative agent.

3. Credit Agreement, dated as of July 31, 2009, among Quiksilver, Inc., Mountain & Wave S.à r.l.,
the lenders party thereto and Rhône Group L.L.C., as administrative agent.

4. Indebtedness outstanding under the Societe General Agreement, and associated guaranty
obligations of Parent.

5. Indebtedness outstanding under the Pilot SAS Facility, and associated guaranty obligations of
Parent.

6. AR Financing Facility Contract, dated September 19, 2008, among Na Pali S.A.S. and GE
Factofrance SNC (as amended, restated, amended and restated, supplemented, or otherwise modified
from time to time).

7. Indebtedness of Na Pali S.A.S. in an approximate outstanding principal amount of €14,532,000
owing to Caissse Regionale de Credit Agricole Mutuel Pyrenees Gascogne in connection with a certain
term loan facility.

8. Indebtedness of Na Pali S.A.S. in an approximate outstanding principal amount of €18,159,000
owing to Societe Generale SA in connection with a certain term loan facility.

9. Indebtedness Na Pali S.A.S., Cariboo S.à r.l., Zebraska S.à r.l., and Emerald Coast S.A.S. in an
approximate outstanding principal amount of €84,853,000 owing to BNP Paribas SA, Banqu Populaire du
Sud-Ouest, Credit Agricole, HSBC, Societe Generale SA and certain other lenders under certain
uncommitted overdraft facilities.

10. Indebtedness Na Pali S.A.S. and Emerald Coast S.A.S. in an approximate outstanding amount of
€23,100,000 owing to BNP Paribas SA, Banqu Populaire du Sud-Ouest, Credit Agricole, Societe
Generale SA and certain other lenders under certain uncommitted letters of credit facilities.

11. Facilities Agreement, dated as of July 31, 2009, by and among, inter alia, Pilot SAS, a Société
par Actions Simplifiée, Na Pali, a Société par Actions Simplifiée, as borrowers, the Parent and
Credit Lyonnais SA, BNP Paribas SA and Societe Generale SA, as mandated lead arrangers, and
associated guaranty obligations of Parent.

12. Deferred purchase price obligations of approximately $43,300,000 incurred in connection with
the Ski Rossignol S.A.

 

 

13. Indebtedness of Quiksilver Japan K.K. in an approximate outstanding principal amount of
¥1,600,000,000 owing to Tokyo Mitsubishi UFJ in connection with a certain short-term loan facility,
and associated guaranty obligations of Parent of approximately $5,000,000.

14. Indebtedness of Quiksilver Japan K.K. in an approximate outstanding principal amount of
¥200,000,000 owing to Tokyo Mitsubishi UFJ in connection with a certain overdraft facility, and
associated guaranty obligations of Parent.

15. Indebtedness of Quiksilver Japan K.K. in an approximate outstanding principal amount of
¥1,000,000,000 owing to Resona in connection with a certain short-term loan facility, and
associated guaranty obligations of Parent.

16. Indebtedness of UG Manufacturing Co. Pty in an approximate potential principal amount of
AUD$22,000,000 owing to Westpac Banking Corporation in connection with a certain commercial bill
line, trade finance, letters of credit, overdraft and short-term loan facilities.

 

 

Schedule 5.08(b)(1)

to Credit Agreement

OWNED REAL ESTATE

	 	 	 	 	 
	Loan Party	 	Property Address	 	Lien / Mortgage Holders
	QS Retail, Inc.

	 	59-176 Kamehameha Highway Sunset Beach, HI 96712
	 	N/A

 

 

Schedule 5.08(b)(2)

to Credit Agreement

LEASED REAL ESTATE

	 	 	 	 	 
	Loan Party / Lessee	 	Address	 	Type of Property
	Quiksilver, Inc.
	 	c/o Quiksilver, Inc.	 	Chief Executive Office
	Quiksilver Americas, Inc.
	 	15202 Graham Street 
	 	 
	 
	 	Huntington Beach, CA 92649	 	 
	 
	 	 	 	 
	DC Shoes, Inc.
	 	DC Shoes, Inc.
	 	Chief Executive Office
	 
	 	1255 & 1333 Keystone Way 
	 	 
	 
	 	Vista, CA 92081	 	 
	 
	 	 	 	 
	Mervin Manufacturing, Inc.
	 	155 Business Park Loop	 	Chief Executive Office
	 
	 	Sequim, WA 98382	 	 
	 
	 	 	 	 
	DC Shoes, Inc.
	 	1496 West Red Hawk Trail	 	Marketing Facility / Office
	 
	 	Park City, UT 84098	 	 
	 
	 	 	 	 
	Quiksilver, Inc.
	 	c/o Quiksilver, Inc.	 	Books and Records
	 
	 	15362 Graham Street	 	 
	 
	 	Huntington Beach, CA 92649	 	 
	 
	 	 	 	 
	Quiksilver, Inc.
	 	5600 Argosy Circle	 	Books and Records
	 
	 	Suite 100 - 300	 	 
	 
	 	Huntington Beach, CA 92649	 	 
	 
	 	 	 	 
	Quiksilver Canada Corp.
	 	c/o Quiksilver Canada	 	Books and Records
	 
	 	140-890 Harbourside Drive	 	 
	 
	 	North Vancouver, BC V7P 3T7	 	 
	 
	 	Canada	 	 
	 
	 	 	 	 
	Quiksilver Canada Corp.
	 	Quiksilver Toronto	 	Regional Office
	 
	 	67 Mowat Ave., Suite 249	 	 
	 
	 	Toronto, Ontario	 	 
	 
	 	M6K3E3	 	 
	 
	 	Canada	 	 
	 
	 	 	 	 
	Quiksilver Canada Corp.
	 	Econo Moving & Storage	 	Storage Facility
	 
	 	991 West 1st St	 	 
	 
	 	North Vancouver, BC V7P 1A4	 	 
	 
	 	Canada	 	 
	 
	 	 	 	 
	QS Wholesale, Inc.
	 	c/o Quiksilver Wholesale	 	Inventory
	 
	 	11310 Cantu Galleano Ranch Rd.	 	 
	 
	 	Mira Loma, CA 91752	 	 
	 
	 	 	 	 
	Quiksilver, Inc.
	 	530 Seventh Avenue	 	Inventory
	 
	 	Unit 1201	 	 
	 
	 	New York, NY 10018	 	 
	 
	 	 	 	 
	Mervin Manufacturing, Inc.
	 	169 Business Park Loop	 	Inventory
	
	 	Sequim, WA 98382	 	 
	 
	 	 	 	 
	Mervin Manufacturing, Inc.
	 	71 Ruths Place, Unit 2 & 3	 	Inventory
	 
	 	Sequim, WA 98382	 	 
	 
	Quiksilver Canada Corp.
	 	174 Spadina Avenue	 	Regional Office
	 
	 	Suite 600	 	 
	 
	 	Toronto, Ontario, Canada	 	 
	 
	 	 	 	 
	Quiksilver Canada Corp.
	 	15 Notre-Dame St. East, 2nd floor 	 	Regional Office
	 
	 	Montreal, Canada	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#22 QUIKSILVER - MAUI	 	Retail Store
	 
	 	851 Front Street	 	 
	 
	 	Lahaina, HI 96761	 	 

 

 

	 	 	 	 	 
	Loan Party / Lessee	 	Address	 	Type of Property
	QS Retail, Inc.
	 	#23 QS YOUTH - PARK CITY	 	Retail Store
	 
	 	577 Main Street Suite B	 	 
	 
	 	Park City, UT 84060	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#24 DC - SOHO	 	Retail Store
	 
	 	109-111 Spring Street	 	 
	 
	 	New York, NY 10012	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#26 QUIKSILVER - MIAMI	 	Retail Store
	 
	 	750 Collins Ave.	 	 
	 
	 	Miami Beach, FL 33139	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#27 QUIKSILVER- UNIVERSAL CITYWALK	 	Retail Store
	 
	 	1000 Universal Studios Blvd.	 	 
	 
	 	Space V114	 	 
	 
	 	Universal City, CA 91608	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#28 QUIKSILVER - SEATTLE	 	Retail Store
	 
	 	409 Pike Street	 	 
	 
	 	Seattle, WA 98101	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#29 ROXY - SOUTH COAST PLAZA	 	Retail Store
	 
	 	3333 Bristol Street	 	 
	 
	 	Space 2031	 	 
	 
	 	Costa Mesa, CA 92626	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#30 ROXY - GARDEN STATE PLAZA	 	Retail Store
	 
	 	1 Garden State Plaza	 	 
	 
	 	Space 2210	 	 
	 
	 	Routes 4 & 17	 	 
	 
	 	Paramus, NJ 07652	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#30 QUIKSILVER - GARDEN STATE PLAZA	 	Retail Store
	 
	 	1 Garden State Plaza	 	 
	 
	 	Space 2210	 	 
	 
	 	Routes 4 & 17	 	 
	 
	 	Paramus, NJ 07652	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#32 QUIKSILVER - WAIKIKI (IMP)	 	Retail Store
	 
	 	2330 Kalakaua Ave.	 	 
	 
	 	Honolulu, HI 96815	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#35 QUIKSILVER - ARDEN FAIR	 	Retail Store
	 
	 	1689 Arden Way	 	 
	 
	 	Space 2182	 	 
	 
	 	Sacramento, CA 95815	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#38 QUIKSILVER - THE GATEWAY	 	Retail Store
	 
	 	136 S. Rio Grande	 	 
	 
	 	Salt Lake City, UT 84101	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#39 QUIKSILVER - THE GATEWAY	 	Retail Store
	 
	 	136 S. Rio Grande	 	 
	 
	 	Salt Lake City, UT 84101	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#40 QUIKSILVER -  CHANDLER FASHION SQUARE	 	Retail Store
	 
	 	3111 W. Chandler Blvd.	 	 
	 
	 	Space 2192	 	 
	 
	 	Chandler, AZ 85226	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#41 QUIKSILVER - MALL OF AMERICA	 	Retail Store
	 
	 	60 E. Broadway	 	 
	 
	 	Space N-144	 	 
	 
	 	Bloomington, MN 55425	 	 

 

 

	 	 	 	 	 
	Loan Party / Lessee	 	Address	 	Type of Property
	QS Retail, Inc.
	 	#42 QUIKSILVER - THE GROVE	 	Retail Store
	 
	 	189 The Grove Drive	 	 
	 
	 	Space G-80	 	 
	 
	 	Los Angeles, CA 90036	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#43 QS YOUTH - THE GROVE	 	Retail Store
	 
	 	189 The Grove Drive	 	 
	 
	 	Space O-20	 	 
	 
	 	Los Angeles, CA 90036	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#44 QUIKSILVER - STONERIDGE MALL	 	Retail Store
	 
	 	2221 Stoneridge Mall Rd.	 	 
	 
	 	Pleasanton, CA 94588	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#48 QUIKSILVER - THE MALL AT MILLENIA	 	Retail Store
	 
	 	4200 Conroy Road	 	 
	 
	 	Suite 213	 	 
	 
	 	Orlando, FL 32839	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#49 QUIKSILVER - THE AVENUES MALL	 	Retail Store
	 
	 	10300 South Side Blvd. #249	 	 
	 
	 	Jacksonville, FL 32256	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#50 QUIKSILVER - TIMES SQUARE	 	Retail Store
	 
	 	3 Times Square	 	 
	 
	 	New York, NY 10036	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#51 QUIKSILVER - VALLEY FAIR	 	Retail Store
	 
	 	2855 Stevens Creek Blvd., #2505	 	 
	 
	 	Santa Clara, CA  95050	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#52 QUIKSILVER - CHARLESTON	 	Retail Store
	 
	 	299 King Street	 	 
	 
	 	Charleston, SC 29401	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#53 QUIKSILVER - WHALERS VILLAGE MAUI	 	Retail Store
	 
	 	2435 Kaanapali Parkway, #K1	 	 
	 
	 	Maui, HI 96761	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#53 ROXY - WHALERS VILLAGE MAUI	 	Retail Store
	 
	 	2435 Kaanapali Parkway, #K1	 	 
	 
	 	Maui, HI 96761	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#54 QUIKSILVER - LAS VEGAS	 	Retail Store
	 
	 	3200 Las Vegas Blvd. South #1250	 	 
	 
	 	Las Vegas, NV 89109	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#55 QUIKSILVER - LINCOLN ROAD	 	Retail Store
	 
	 	1023 Lincoln Road	 	 
	 
	 	Miami Beach, FL  33139	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#56 QUIKSILVER - GASLAMP	 	Retail Store
	 
	 	402 5th Ave	 	 
	 
	 	San Diego, CA 92101	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	# 57 QUIKSILVER - DOWNTOWN DISNEY	 	Retail Store
	 
	 	1570 South Disneyland Drive # 103	 	 
	 
	 	Anaheim, CA 92802	 	 

 

 

	 	 	 	 	 
	Loan Party / Lessee	 	Address	 	Type of Property
	QS Retail, Inc.
	 	# 58 QUIKSILVER - HOLLYWOOD, FL	 	Retail Store
	 
	 	5780 Seminole Way	 	 
	 
	 	Hollywood, FL 33314	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	# 59 QUIKSILVER - SANTA MONICA	 	Retail Store
	 
	 	1422 3rd Street Promenade	 	 
	 
	 	Santa Monica, CA 90401	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#60 QUIKSILVER - TAMPA	 	Retail Store
	 
	 	2223 N. Westshore # 182	 	 
	 
	 	Tampa, FL 33607	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#62 QUIKSILVER - BROADWAY	 	Retail Store
	 
	 	519 Broadway	 	 
	 
	 	New York, NY 10012	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#64 QUIKSILVER - ASPEN	 	Retail Store
	 
	 	428 East Hyman	 	 
	 
	 	Aspen, CO 81611	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#65 QS YOUNG MENS - SOUTH COAST PLAZA	 	Retail Store
	 
	 	3333 Bristol Street Space #2007	 	 
	 
	 	Costa Mesa, CA 92626	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#67 QUIKSILVER  - POWELL	 	Retail Store
	 
	 	207 Powell Street	 	 
	 
	 	San Francisco, CA 94102	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#68 QUIKSILVER  - ATLANTIC CITY	 	Retail Store
	 
	 	1 Atlantic Ocean Space BW218	 	 
	 
	 	Atlantic City, NJ 08401	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#69 QUIKSILVER  - MIRACLE MILE SHOPS	 	Retail Store
	 
	 	3663 Las Vegas Blvd South Space H-123	 	 
	 
	 	Las Vegas, NV 89109	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#70 QUIKSILVER  - WAIKIKI BEACH WALK	 	Retail Store
	 
	 	270 Lewers St. suite 101	 	 
	 
	 	Honolulu, HI 96815	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#72 QUIKSILVER  - PALM DESERT	 	Retail Store
	 
	 	73-595 El Paseo Suite 1216	 	 
	 
	 	Palm Desert, CA 92260	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#73 QUIKSILVER  - CITY PLACE	 	Retail Store
	 
	 	550 S Rosemary Ave. Suite 164	 	 
	 
	 	West Palm Beach, FL 33401	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#74 QUIKSILVER  - TYLER MALL	 	Retail Store
	 
	 	2279 Galleria @ Tyler Space EU11	 	 
	 
	 	Riverside, CA 92503	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#75 ROXY - SCOTTSDALE	 	Retail Store
	 
	 	7014-590 E. Camelback Rd	 	 
	 
	 	Scottsdale, AZ 85251	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#76 DC - PARK CITY	 	Retail Store
	 
	 	577 Main St. Suite C	 	 
	 
	 	Park City UT 84060	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#77 QUIKSILVER - BRANDON MALL	 	Retail Store
	 
	 	459 Brandon Town Ctr. Space 925	 	 
	 
	 	Brandon, FL 33511	 	 
	 
	 	 	 	 
	QS Retail Canada Corp.
	 	#78 QUIKSILVER - ST. CATHERINE	 	Retail Store
	 
	 	1192 Rue Ste-Catherine Ouest	 	 
	 
	 	Montreal, Quebec H3Z-2P9 Canada	 	 

 

 

	 	 	 	 	 
	Loan Party / Lessee	 	Address	 	Type of Property
	QS Retail, Inc.
	 	#80 QUIKSILVER - VINTAGE FAIR	 	Retail Store
	 
	 	3401 Dale Road #T09	 	 
	 
	 	Modesto, CA 95356	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#81 QUIKSILVER - BOULDER	 	Retail Store
	 
	 	1122 Pearl St.	 	 
	 
	 	Boulder, CO 80302	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#82 ROXY/QUIKSILVER - LA JOLLA	 	Retail Store
	 
	 	1111 Prospect St.	 	 
	 
	 	La Jolla, CA 92037	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#83 QUIKSILVER - TEMPE MARKET PLACE	 	Retail Store
	 
	 	2000 E. Rio Salado Pkwy  Suite 1124	 	 
	 
	 	Tempe, AZ 85281	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#84 QUIKSILVER - QUEEN'S MARKET PLACE	 	Retail Store
	 
	 	201 Waikoloa Beach Dr. Suite F14-16	 	 
	 
	 	Waikoloa, HI 96738	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#85 ROXY/QUIKSILVER - FLORIDA MALL	 	Retail Store
	 
	 	8001 S. Orange Blossom Trail Space 306B	 	 
	 
	 	Orlando, FL 32809	 	 
	 
	 	 	 	 
	QS Retail Canada Corp.
	 	#86 QUIKSILVER - TORONTO	 	Retail Store
	 
	 	339 Queen St. West	 	 
	 
	 	Toronto, Ontario M5V2A4 Canada	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#87 ROXY/QUIKSILVER - TROY	 	Retail Store
	 
	 	2800 W. Big Beaver Space W 314 & W 312	 	 
	 
	 	Troy, Michigan 48084	 	 
	 
	 	 	 	 
	QS Retail Canada Corp.
	 	#88 QUIKSILVER - VANCOUVER	 	Retail Store
	 
	 	820 Granville St.	 	 
	 
	 	Vancouver, British Columbia V6Z1K3 Canada	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#89 QUIKSILVER - FRESNO FASHION FAIRE	 	Retail Store
	 
	 	645 E. Shaw Ave.  #101 Space E - 08	 	 
	 
	 	Fresno, CA 93710	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#90 ROXY - WAILEA	 	Retail Store
	 
	 	3750 Wailea Alanui  Space B - 3	 	 
	 
	 	Wailea, HI 96753	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#91 QUIKSILVER - PASADENA	 	Retail Store
	 
	 	380 E. Colorado Blvd Suite 149	 	 
	 
	 	Pasadena, CA  91101	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#92 QUIKSILVER - PARK CITY	 	Retail Store
	 
	 	570 Main St	 	 
	 
	 	Park City, UT 84060	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#93 ROXY/QUIKSILVER - TOWN SQUARE	 	Retail Store
	 
	 	6611 Las Vegas Blvd. South Bldg. G A-157	 	 
	 
	 	Las Vegas, NV 89119	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#94 QUIKSILVER - ANNAPOLIS	 	Retail Store
	 
	 	2002 Annapolis Mall	 	 
	 
	 	Annapolis, MD 21401	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#95 DC- MELROSE	 	Retail Store
	 
	 	8025 Melrose Ave	 	 
	 
	 	Los Angeles, CA 90046	 	 

 

 

	 	 	 	 	 
	Loan Party / Lessee	 	Address	 	Type of Property
	QS Retail, Inc.
	 	#96 QUIKSILVER - WAILEA	 	Retail Store
	 
	 	3750 Wailea Alanui Space B- 45	 	 
	 
	 	Wailea, Hawaii 96753	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#97 QUIKSILVER - WESTGATE	 	Retail Store
	 
	 	6770 Sunrise Blvd  Suite G-101	 	 
	 
	 	Glendale, AZ 85305	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#98 QUIKSILVER - KAI KANE	 	Retail Store
	 
	 	5-5088 Kuhio Highway	 	 
	 
	 	Hanalei, Hawaii 96714	 	 
	 
	 	 	 	 
	QS Retail Canada Corp.
	 	#99 QUIKSILVER - OAKRIDGE CENTER	 	Retail Store
	 
	 	650 West 41st Ave Ste 272A	 	 
	 
	 	Vancouver, British Columbia V5Z 2M9 Canada	 	 
	 
	 	 	 	 
	QS Retail Canada Corp.
	 	#100 QUIKSILVER - BANFF	 	Retail Store
	 
	 	114 Banff Ave	 	 
	 
	 	Banff, Alberta, Canada T1L 1A1	 	 
	 
	 	 	 	 
	QS Retail Canada Corp.
	 	#101 QUIKSILVER - LAVAL	 	Retail Store
	 
	 	3003 Blvd le Carrefour, #T030B	 	 
	 
	 	Chomedey, Quebec, Canada H7T 1C7	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#102 QUIKSILVER - SCOTTSDALE	 	Retail Store
	 
	 	7014 E Camelback Rd Ste 2117	 	 
	 
	 	Scottsdale, AZ 85251	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#103 DC - IRVINE SPECTRUM	 	Retail Store
	 
	 	71 Fortune Dr. Suite 824	 	 
	 
	 	Irvine, CA 92618	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#104 QUIKSILVER - FIFTH AVENUE	 	Retail Store
	 
	 	587 Fifth Ave.	 	 
	 
	 	New York, NY 10017	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#105 QUIKSILVER YOUTH - THE OAKS MALL	 	Retail Store
	 
	 	196 West Hillcrest Drive  Suite #95	 	 
	 
	 	Thousand Oaks, CA 91360	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#106 QUIKSILVER - AVENTURA MALL	 	Retail Store
	 
	 	19501 Biscayne Blvd.  #1265	 	 
	 
	 	Aventura, FL 33180	 	 
	 
	 	 	 	 
	QS Retail Canada Corp.
	 	#107 QUIKSILVER - POLO PARK	 	Retail Store
	 
	 	1485 Portage Ave Space 0240 A	 	 
	 
	 	Winnipeg, Manitoba R3G 0W4	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#109 DC - MIRACLE MILE	 	Retail Store
	 
	 	3663 Las Vegas Blvd. South #D4	 	 
	 
	 	Las Vegas, NV 89109	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#801 QUIKSILVER FACTORY STORE - SAWGRASS	 	Factory Store
	 
	 	12801 West Sunrise Blvd., #811	 	 
	 
	 	Sunrise, FL  33323	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#802 QUIKSILVER FACTORY STORE - ARUNDEL	 	Factory Store
	 
	 	7000 Arundel Mills Circle, #423	 	 
	 
	 	Hanover, MD  21076	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#803 QUIKSILVER FACTORY STORE - CORONA	 	Factory Store
	 
	 	530 Hidden Valley Parkway #101	 	 
	 
	 	Corona, CA  92879	 	 

 

 

	 	 	 	 	 
	Loan Party / Lessee	 	Address	 	Type of Property
	QS Retail, Inc.
	 	#805 QUIKSILVER FACTORY STORE - PROVO	 	Factory Store
	 
	 	2255 North University Parkway, #22	 	 
	 
	 	Provo, UT  84604	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#806 QUIKSILVER FACTORY STORE - CENTRALIA	 	Factory Store
	 
	 	1324 Lum Road	 	 
	 
	 	Centrailia, WA  98531	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#807 QUIKSILVER FACTORY STORE - PHOENIX	 	Factory Store
	 
	 	4250 West Anthem Way, #715	 	 
	 
	 	Phoenix, AZ  85086	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#808 QUIKSILVER FACTORY STORE - LINCOLN CITY 	 	Factory Store
	 
	 	1500 SE Devils Lake Road, #114	 	 
	 
	 	Lincoln City, OR  97367	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#810 QUIKSILVER FACTORY STORE - BARSTOW	 	Factory Store
	 
	 	2796 Tanger Way Suite204	 	 
	 
	 	Barstow, CA  92311	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#811 QUIKSILVER FACTORY STORE - SAN MARCOS	 	Factory Store
	 
	 	4015 Interstate 35 South Suite 880	 	 
	 
	 	San Marcos, TX  78666	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#815 QUIKSILVER FACTORY STORE - CABAZON	 	Factory Store
	 
	 	48650 Seminole Drive, #236	 	 
	 
	 	Cabazon, CA  92230	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#817 QUIKSILVER FACTORY STORE - DAWSONVILLE	 	Factory Store
	 
	 	800 Highway 400 South, #850	 	 
	 
	 	Dawsonville, GA  30534	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#818 QUIKSILVER FACTORY STORE - QUEENSTOWN	 	Factory Store
	 
	 	407 Outlet Center Drive	 	 
	 
	 	Queenstown, MD  21658	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#821 QUIKSILVER FACTORY STORE - WRENTHAM	 	Factory Store
	 
	 	1 Premium Outlets Blvd., #475	 	 
	 
	 	Wrentham, MA 02093	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#822 QUIKSILVER FACTORY STORE - PRIMM	 	Factory Store
	 
	 	32100 Las Vegas Blvd., #306	 	 
	 
	 	Primm, NV  89019	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#823 QUIKSILVER FACTORY STORE - COMMERCE	 	Factory Store
	 
	 	100 Citadel Drive, #434	 	 
	 
	 	Commerce, CA  90040	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#825 QUIKSILVER FACTORY STORE - ELLENTON	 	Factory Store
	 
	 	5131 Factory Shops Blvd.	 	 
	 
	 	Ellenton, FL  34222	 	 

 

 

	 	 	 	 	 
	Loan Party / Lessee	 	Address	 	Type of Property
	QS Retail, Inc.
	 	#826 QUIKSILVER FACTORY STORE - CENTRAL VALLEY	 	Factory Store
	 
	 	 	 	 
	 
	 	954 Grapevine Court	 	 
	 
	 	Central Valley, NY  10917	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#828 QUIKSILVER FACTORY STORE - ELIZABETH	 	Factory Store
	 
	 	651 Kapkowski Road, #2222	 	 
	 
	 	Elizabeth, NJ 07201	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#829 QUIKSILVER FACTORY STORE - CLINTON	 	Factory Store
	 
	 	20 Killingworth Turnpike, #160	 	 
	 
	 	Clinton, CT 06413	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#830 QUIKSILVER FACTORY STORE - MIAMI	 	Factory Store
	 
	 	11401 NW 12 Street, #289	 	 
	 
	 	Miami, FL  33172	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#831 QUIKSILVER FACTORY STORE - LAS VEGAS	 	Factory Store
	 
	 	605 South Grand Central Parkway, #1247	 	 
	 
	 	Las Vegas, NV  89106	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#833 QUIKSILVER FACTORY STORE - GILROY	 	Factory Store
	 
	 	681 Leavesley Road, Space C110	 	 
	 
	 	Gilroy, CA 95020	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#834 QUIKSILVER FACTORY STORE - LAKEWOOD	 	Factory Store
	 
	 	14500 West Colfax Avenue Space #447	 	 
	 
	 	Lakewood, CO 80401	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#835 QUIKSILVER FACTORY STORE - TULALIP	 	Factory Store
	 
	 	10600 Quil Ceda Blvd. Suite #359	 	 
	 
	 	Tulalip, WA 98271	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#836 QUIKSILVER FACTORY STORE - ONTARIO	 	Factory Store
	 
	 	1 East Mills Circle Suite 123	 	 
	 
	 	Ontario, CA 91764	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#837 QUIKSILVER FACTORY STORE - BELZ	 	Factory Store
	 
	 	7400 Las Vegas Blvd S Space #B32	 	 
	 
	 	Las Vegas, NV 89123	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#838 DC FACTORY STORE - PISMO	 	Factory Store
	 
	 	333 Five cities Drive Suite 126	 	 
	 
	 	Pismo Beach, CA 93449	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#839 QUIKSILVER FACTORY STORE - WOODBURN	 	Factory Store
	 
	 	1001 Arney Rd Suite 422	 	 
	 
	 	Woodburn, OR 97071	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#840 DC FACTORY STORE - TULALIP	 	Factory Store
	 
	 	10600 Quil Ceda Blvd #316	 	 
	 
	 	Tulalip, WA 98271	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#841 QUIKSILVER FACTORY STORE - LAUGHLIN	 	Factory Store
	 
	 	1955 S. Casino Dr. Space 202	 	 
	 
	 	Laughlin, NV 89029	 	 

 

 

	 	 	 	 	 
	Loan Party / Lessee	 	Address	 	Type of Property
	QS Retail, Inc.
	 	#842 QUIKSILVER FACTORY STORE - ROUND ROCK	 	Factory Store
	 
	 	4401 North & I-35 #824	 	 
	 
	 	Round Rock, TX 78664	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#843 DC FACTORY STORE- CAMARILLO	 	Factory Store
	 
	 	610 E. Ventura Blvd Suite 1317	 	 
	 
	 	Camarillo, CA 93010	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#844 DC FACTORY STORE - VEGAS	 	Factory Store
	 
	 	705 Grand Central Pkwy Suite 1043	 	 
	 
	 	Las Vegas, NV 89106	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#845 DC FACTORY STORE - PRIMM	 	Factory Store
	 
	 	32100 Las Vegas Blvd South Suite 416	 	 
	 
	 	Primm, NV 89019	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#846 DC FACTORY STORE - TULARE	 	Factory Store
	 
	 	1549 Rethford Suite C-75	 	 
	 
	 	Tulare, CA 93274	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#847 DC FACTORY STORE - COMMERCE	 	Factory Store
	 
	 	100 Citadel Drive South Suite 432	 	 
	 
	 	Commerce City, CA 90040	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#848 QUIKSILVER FACTORY STORE - FOLSOM	 	Factory Store
	 
	 	13000 Folsom Blvd. Ste 302/303	 	 
	 
	 	Folsom, CA 95630	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#848 DC FACTORY STORE - FOLSOM	 	Factory Store
	 
	 	13000 Folsom Blvd. Ste 302, 303	 	 
	 
	 	Folsom, CA 95630	 	 
	 
	 	 	 	 
	QS Retail Canada Corp.
	 	#849 QUIKSILVER  FACTORY STORE - NEW	 	Factory Store
	 
	 	WESTMINSTER	 	 
	 
	 	805 Boyd Street Unit D120	 	 
	 
	 	Queensborough Shopping Centre	 	 
	 
	 	New Westminster, BC V3M5X2	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#850 DC  FACTORY STORE - EL PASO	 	Factory Store
	 
	 	7051 South Desert Blvd Suite D 425	 	 
	 
	 	Canutillo, TX 79835	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#851 DC FACTORY STORE - SAN MARCOS	 	Factory Store
	 
	 	4015 I-35, Suite 1020	 	 
	 
	 	San Marcos, TX 78666	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#852 DC FACTORY STORE - GILROY	 	Factory Store
	 
	 	681 Leavesley Rd Ste 270	 	 
	 
	 	Gilroy, CA 95020	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#853 QUIKSILVER FACTORY STORE - EL PASO	 	Factory Store
	 
	 	Sun Valley Factory Shoppes	 	 
	 
	 	7051 South Desert Blvd. STE A 137	 	 
	 
	 	Canutillo, TX 79835	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#854 BOARDRIDERS - OAKVIEW	 	Factory Store
	 
	 	3001 South 144th St. Space F-04	 	 
	 
	 	Omaha, NE 68144	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#855 BOARDRIDERS - HAMILTON PLACE	 	Factory Store
	 
	 	2100 Hamilton Place Space 125B	 	 
	 
	 	Chattanooga, TN 37421	 	 

 

 

	 	 	 	 	 
	Loan Party / Lessee	 	Address	 	Type of Property
	QS Retail, Inc.
	 	#856 BOARDRIDERS - THE AVENUES MALL	 	Factory Store
	 
	 	2615 Medical Center Pkwy Ste 1355	 	 
	 
	 	Murfreesboro, TN 37129	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#857 QUIKSILVER FACTORY STORE - RIO GRANDE	 	Factory Store
	 
	 	5001 E. Expressway 83 Suite 319	 	 
	 
	 	Mercedes, TX 78570	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#858 QUIKSILVER FACTORY STORE - POTOMAC MILLS	 	Factory Store
	 
	 	 	 	 
	 
	 	2700 Potomac Mills Cir. Suite 242	 	 
	 
	 	Prince Williams County, VA 22192	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#859 DC FACTORY STORE - LAUGHLIN	 	Factory Store
	 
	 	1955 South Casino Dr  Suite 248	 	 
	 
	 	Laughlin, NV 89029	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#860 QUIKSILVER FACTORY STORE - HOUSTON	 	Factory Store
	 
	 	29300 Hempstead Road Suite 610	 	 
	 
	 	Cypress, TX 77433	 	 
	 
	 	 	 	 
	QS Retail, Inc.
	 	#861 DC FACTORY STORE - DOLPHIN MALL	 	Factory Store
	 
	 	11401 N. W. 12th Street #289	 	 
	 
	 	Miami, Florida 33172	 	 
	 
	 	 	 	 
	QS Retail Canada Corp.
	 	#862 DC FACTORY STORE - NEW WESTMINSTER	 	Factory Store
	 
	 	805 Boyd St. #F180	 	 
	 
	 	New Westminster, BC V3M5X2	 	 
	 
	 	 	 	 
	Quiksilver Canada Corp.
	 	6455 Macleod Trail	 	Retail Store
	 
	 	South Calgary, Alberta, Canada	 	 
	 
	 	 	 	 
	DC Shoes, Inc.
	 	2620 Progress Street	 	Other
	 
	 	Vista, California 92010	 	 

 

 

Schedule 5.10

to Credit Agreement

INSURANCE

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Limit
	Insurance	 	Broker	 	Insurer	 	Coverage Definition	 	Deductible
	Global
	 	 	 	 	 	 	 	 
	 
	Foreign Liability

	 	Willis
	 	Chubb
	 	Global Difference in Conditions/ Difference in Limits general, auto, product, operations liability
	 	Limit: $1M 

Ded: $0
	 
	 	 	 	 	 	 	 	 
	Umbrella Liability

	 	Willis
	 	Chubb, Liberty Mutual
	 	Third party general, auto, product, operations liability
	 	Limit: $40M 

Ded: $0
	 
	 	 	 	 	 	 	 	 
	Athlete AD&D

	 	Willis
	 	ACE
	 	Athlete accidental death and dismemberment
	 	Limit: $250K/$150K 

Ded: $0
	 
	 	 	 	 	 	 	 	 
	D&O / Fiduciary

	 	Willis
	 	Chubb primary, various excess carriers
	 	Directors and officers management and fiduciary liability
	 	Limit: $50M 

Ded: $1M ($0 for Side-A)
	 
	 	 	 	 	 	 	 	 
	U.S. and Canada
	 	 	 	 	 	 	 	 
	 
	Property

	 	Willis
	 	FM Global
	 	First party building, tenant improvement, business interruption
	 	Limit: $200M 

Ded: $10K
	 
	 	 	 	 	 	 	 	 
	General Liability

	 	Willis
	 	Chubb
	 	Third party general and product liability
	 	Limit: $1M 

Ded: $25K, $100K/$350K
	 
	 	 	 	 	 	 	 	 
	Auto

	 	Willis
	 	Chubb
	 	Third party auto bodily and property damage liability, and first party auto damage
	 	Limit: $1M 

Ded: $1K
	 
	 	 	 	 	 	 	 	 
	Computer and Information Security Liability

	 	Willis
	 	Lloyd’s of London
	 	Third party loss or compromise of sensitive customer data
	 	Limit: $5M 

Ded: $100K
	 
	 	 	 	 	 	 	 	 
	Marine Cargo

	 	Expeditors
	 	 	 	First party product marine cargo loss
	 	Limit: $2M 

Ded: $1K
	 
	 	 	 	 	 	 	 	 
	Work Comp

	 	Willis
	 	ACE
	 	Statutory employee work injury
	 	Limit: Statutory 

Ded: $500K

 

 

Schedule 5.13

to Credit Agreement

SUBSIDIARIES; EQUITY INTERESTS

(a) Loan Party Subsidiaries:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Authorized	 	Issued	 	 
	 	 	 	 	 	 	Equity	 	Equity	 	Ownership
	Direct Parent	 	Subsidiary	 	Jurisdiction	 	Interests	 	Interests	 	Percentage
	Quiksilver, Inc.
	 	Quiksilver Americas, Inc.	 	California	 	1,000	 	1,000	 	 	100	%
	Quiksilver, Inc.
	 	Mountain & Wave S.à r.l.	 	Luxembourg	 	N/A	 	2,739,552	 	 	100	%
	Quiksilver, Inc.
	 	Quiksilver Greater China Ltd.	 	Hong Kong	 	10,000	 	10,000	 	 	100	%
	Quiksilver Americas, Inc.
	 	Q.S. Optics, Inc.*	 	California	 	7,000	 	800	 	 	100	%
	Quiksilver Americas, Inc.
	 	Quiksilver Wetsuits, Inc.*	 	California	 	1,000,000	 	660	 	 	100	%
	Quiksilver Americas, Inc.
	 	Mt. Waimea, Inc.*	 	California	 	100,000	 	1,000	 	 	100	%
	Quiksilver Americas, Inc.
	 	Quiksilver Entertainment, Inc.*	 	California	 	1,000	 	1,000	 	 	100	%
	Quiksilver Americas, Inc.
	 	DC Shoes, Inc.	 	California	 	100,000,000	 	6,000,000	 	 	100	%
	Quiksilver Americas, Inc.
	 	Fidra, Inc.*	 	California	 	1,000	 	100	 	 	100	%
	Quiksilver Americas, Inc.
	 	Hawk Designs, Inc.	 	California	 	100	 	100	 	 	100	%
	Quiksilver Americas, Inc.
	 	Mervin Manufacturing, Inc.	 	California	 	100,000	 	10,000	 	 	100	%
	Quiksilver Americas, Inc.
	 	QS Wholesale, Inc.	 	California	 	1,000	 	1,000	 	 	100	%
	Quiksilver Americas, Inc.
	 	QS Retail, Inc.	 	California	 	1,000	 	100	 	 	100	%
	Quiksilver Americas, Inc.
	 	QS Mexico Holdings	 	Delaware	 	N/A	 	N/A	 	 	60	%
	DC Shoes, Inc.
	 	DC Direct, Inc.*	 	California	 	100,000	 	N/A	 	 	100	%
	Quiksilver Canada Corp.
	 	QS Retail Canada Corp.	 	Nova Scotia	 	100,000,000	 	100	 	 	100	%

 

			
	*	 	Indicates Immaterial Subsidiary as of the Closing Date
	 
	(b)	 	Equity Investments:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Authorized	 	Issued	 		 	
	 	 	 	 	 	 	Equity	 	Equity	 	Ownership
	Holder	 	Issuer	 	Jurisdiction	 	Interests	 	Interests	 	Percentage
	Quiksilver Americas, Inc.

	 	QS Mexico Holdings
	 	Delaware
	 	N/A
	 	N/A
	 	 	60%1	 

 

			
	1	 	40% held by PBM International, LLC, a
Delaware limited liability company.

 

 

(c) Loan Party:

	 	 	 	 	 	 	 
	 	 	Direct	 	Ownership
	Loan Party	 	Parent	 	Percentage
	Quiksilver Americas, Inc.
	 	Quiksilver, Inc.	 	 	100	%
	QS Retail, Inc.
	 	Quiksilver Americas, Inc.	 	 	100	%
	QS Wholesale, Inc.
	 	Quiksilver Americas, Inc.	 	 	100	%
	DC Shoes, Inc.
	 	Quiksilver Americas, Inc.	 	 	100	%
	Hawk Designs, Inc.
	 	Quiksilver Americas, Inc.	 	 	100	%
	Mervin Manufacturing, Inc.
	 	Quiksilver Americas, Inc.	 	 	100	%
	Quiksilver Canada Corp.
	 	Quiksilver Deluxe S.à r.l.	 	 	100	%
	QS Retail Canada Corp.
	 	Quiksilver Canada Corp.	 	 	100	%

 

 

Schedule 5.21(a)

to Credit Agreement

DDAs

Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. The omissions have been indicated by asterisks
(“*****”), and the omitted text has been filed separately with the Securities and Exchange
Commission.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Name of Bank or Financial	 	 	 	 
	Loan Party	 	Institution	 	Account Number	 	Type of Account
	Quiksilver, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	Quiksilver Americas, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Wholesale, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	DC Shoes, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	Hawk Designs, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	Mervin Manufacturing, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	Quiksilver Americas, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Wholesale, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	DC Shoes, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	Hawk Designs, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	Mervin Manufacturing, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	Quiksilver, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	Quiksilver Americas, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Wholesale, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	DC Shoes, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	Hawk Designs, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****
	Mervin Manufacturing, Inc.
	 	 	*	****	 	 	*	****	 	 	*	****

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Name of Bank or Financial	 	 	 	 
	Loan Party	 	Institution	 	Account Number	 	Type of Account
	Quiksilver Canada Corp.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail Canada Corp.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail Canada Corp.
	 	 	*	****	 	 	*	****	 	 	*	****
	Quiksilver Canada Corp.
	 	 	*	****	 	 	*	****	 	 	*	****
	Quiksilver Canada Corp.
	 	 	*	****	 	 	*	****	 	 	*	****
	QS Retail Canada Corp.
	 	 	*	****	 	 	*	****	 	 	*	****

 

			
	*	 	Blocked Account Bank

 

 

Schedule 5.21(b)

to Credit Agreement

CREDIT CARD ARRANGEMENTS

	1.	 	First Data Corporation (QS Retail, Inc.)1
	 
	2.	 	Elavon, Inc. (QS Wholesale, Inc. and DC Shoes, Inc.)

 

			
	1	 	Agreement between First Data and QS Retail,
Inc. has on one-year term with automatic renewal on March 15.

 

 

Schedule 5.22

to Credit Agreement

BROKERS

	1.	 	Banc of America Securities LLC
	 
	2.	 	GE Capital Markets, Inc.
	 
	3.	 	Rhône Group L.L.C.
	 
	4.	 	Peter J. Solomon Company
	 
	5.	 	Lazard Ltd.

 

 

Schedule 5.24

to Credit Agreement

MATERIAL CONTRACTS

1. Indenture, dated as of July 22, 2005 (the “Indenture”), among Quiksilver, Inc., the
Subsidiary Guarantors party thereto and Wilmington Trust Company, as trustee.

2. Guaranty obligations of Parent associated with the Societe General Agreement.

3. Guaranty obligations of Parent associated with the Pilot SAS Facility.

4. Facilities Agreement, dated as of July 31, 2009, by and among, inter alia, Pilot SAS, a Société
par Actions Simplifiée, Na Pali, a Société par Actions Simplifiée, as borrowers, the Parent and
Credit Lyonnais SA, BNP Paribas SA and Societe Generale SA, as mandated lead arrangers.

 

 

Schedule 6.02

Financial and Collateral Reporting

Quiksilver Americas, Inc. et al.

Note: System-generated reports should be provided where applicable.

Capitalized terms used but not otherwise defined herein that are defined in the Credit Agreement to
which this Schedule 6.02 is attached (the “Credit Agreement”) shall have the meanings
assigned to such terms in the Credit Agreement.

	 	 	 	 	 	 	 
	 	 	 	 	DATE	 	(X)
	Monthly (due on 15th day of each Fiscal Month (or, if such day is
not a Business Day, on the next succeeding Business Day) until delivery of
Fiscal 2009 10-K of the Parent, and due on the 10th day of each
Fiscal Month thereafter (or, if such day is not a Business Day, on the next
succeeding Business Day)), or if required under the Credit Agreement, weekly,
(due on Wednesday of each week (or, if such Wednesday is not a Business Day, on
the next succeeding Business Day) provided that, if Borrowing Base Certificates
are required to be delivered weekly, updated inventory reports shall only be
required in connection therewith to the extent then available):	 	 	 	 
	•

	 	Borrowing Base Certificate (BBC)
	 	 

	 	 
 
	Borrowing Base backup to be received with BBC:	 	 	 	 
	•

	 	Accounts Receivable Aging Summary
	 	 

	 	 
 
	•

	 	Schedule Detailing Extended Terms Customers
	 	 

	 	 
 
	•

	 	Schedule Detailing Cross-Age Customers
	 	 

	 	 
 
	•

	 	Schedule of Foreign Receivables
	 	 

	 	 
 
	•

	 	Schedule of Government Receivables
	 	 

	 	 
 
	•

	 	Schedule of Intercompany Receivables
	 	 

	 	 
 
	•

	 	Schedule of Employee Receivables
	 	 

	 	 
 
	•

	 	Schedule of Accounts due from Bankrupt Customers
	 	 

	 	 
 
	•

	 	Schedule of Chargebacks on Aging
	 	 

	 	 
 
	•

	 	Schedule of Finance Charges/Interest on Aging
	 	 

	 	 
 
	•

	 	Schedule Detailing Calculation of Contra Accounts
	 	 

	 	 
 
	•

	 	Schedule Detailing Customers Exceeding 15% of Eligible A/R
	 	 

	 	 
 
	•

	 	Eligible Credit Card Receivables Summary
	 	 

	 	 
 
	 
	 	 	 	 	 	 
	•

	 	Inventory Perpetual/Stock Ledger Summary
	 	 

	 	 
 
	•

	 	Schedule of Irregulars/Seconds (Season “W” Inventory)
	 	 

	 	 
 
	•

	 	Schedule of Off-Price Styles (Season “O” Inventory)
	 	 

	 	 
 
	•

	 	Schedule of Drop-Ship Inventory (QDS Warehouse)
	 	 

	 	 
 
	•

	 	Schedule of Hawaii Virtual Warehouse Inventory
	 	 

	 	 
 
	•

	 	Schedule of Inventory in Foreign Locations (incl. Hong Kong)
	 	 

	 	 
 
	•

	 	Schedule of Inventory Located at Outside Processors
	 	 

	 	 
 
	•

	 	Schedule of Supplies & Packaging Inventory
	 	 

	 	 
 
	•

	 	Schedule of Samples Inventory
	 	 

	 	 
 
	•

	 	Raw Materials Summary – Fabric & Trim
	 	 

	 	 
 
	•

	 	Raw Materials Summary – Specialty (Season “Y”)
	 	 

	 	 
 
	•

	 	Raw Materials Summary – Mervin Raw Materials
	 	 

	 	 
 
	•

	 	Work-in-Process Inventory Summary
	 	 

	 	 
 
	•

	 	Schedule of Inventory In-Transit Between Retail Stores
	 	 

	 	 
 
	•

	 	Schedule of Inventory In-Transit From Warehouse to Stores
	 	 

	 	 
 
	•

	 	Schedule of Inventory In-Transit From U.S. to Canada
	 	 

	 	 
 
	•

	 	Detail of Any Unreconciled Variance Between Perpetual and G/L
	 	 

	 	 
 
	•

	 	Monthly Cycle Count Results on a Trailing 12 Month Basis
	 	 

	 	 
 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	DATE	 	(X)
	 
	•

	 	Eligible Import In-Transit Inventory Summary
	 	 

	 	 
 
	•

	 	Eligible Import Letter of Credit Inventory Summary
	 	 

	 	 
 
	 
	 	 	 	 	 	 
	•

	 	Backup to Support Gift Certificates and Merchandise Credits
	 	 

	 	 
 
	•

	 	Backup to Support Customer Deposits
	 	 

	 	 
 
	•

	 	Rent Reserve Detail
	 	 

	 	 
 
	•

	 	Monthly Self-Funded Insurance Claims on Trailing 12 Mo. Basis
	 	 

	 	 
 
	•

	 	Schedule of additional (since date of prior BBC) registered
or applied-for Intellectual Property
	 	 

	 	 
 
	•

	 	Schedule of new (since date of prior BBC) contracts with
any Governmental Authority
	 	 

	 	 
 

	 	 	 	 	 	 	 
	 	 	 	 	DATE	 	(X)
	Monthly (within thirty (30) days after the end of each Fiscal Month of each
Fiscal Year of the Parent, commencing with the first such Fiscal Month which
occurs after the first full six (6) months following the Closing Date):	 	 	 	 
	•

	 	Monthly Financial Statements with MD&A
	 	 

	 	 
 
	•

	 	Compliance Certificate
	 	 

	 	 
 

	 	 	 	 	 	 	 
	Quarterly (within 45 days after Fiscal Quarter end):	 	 	 	 
	•

	 	Quarterly Financial Statements with MD&A (Form 10-Q)
	 	 

	 	 
 
	•

	 	Compliance Certificate
	 	 

	 	 
 

	 	 	 	 	 	 	 
	Annually (within 90 days after Fiscal Year end):	 	 	 	 
	•

	 	Audited Financial Statements with MD&A (Form 10-K)
	 	 

	 	 
 
	•

	 	Compliance Certificate
	 	 

	 	 
 

	 	 	 	 	 	 	 
	Annually (within 30 days after Fiscal Year end):	 	 	 	 
	•

	 	Forecast for Immediately Following Fiscal Year
	 	 

	 	 
 

	 	 	 

	Email / Mail to:

	 	Theresa Espinola
	 

	 	Bank of America
	 

	 	100 Federal Street
	 

	 	MA5-100-09-09

Boston, MA 02110
	 

	 	theresa.m.espinola@bankofamerica.com

 

 

Schedule 7.01

to Credit Agreement

EXISTING LIENS

Liens:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Collateral
	Debtor(S)	 	Jurisdiction	 	Secured Party	 	File No./ File Date	 	Description
	QS Retail, Inc.

	 	CA SOS
	 	Vestar TM-OPCO,
L.L.C.
	 	06-7089343858

10/20/2006
	 	Fixtures,
improvements and
additions to Suite
F-5 Tempe
Marketplace, Tempe,
AZ
	 
	 	 	 	 	 	 	 	 
	Quiksilver Canada
Corp.

	 	British Columbia
	 	The Royal Bank of
Canada
	 	793112C

1/17/2006

Amended:

104218F

7/30/2009
	 	Guaranteed
Investment
Certificate No.
00920153700 in the
amount of $300,000
and all extensions,
renewals and
replacements
thereof

Tax Liens:

None.

 

 

Schedule 7.02

to Credit Agreement

EXISTING INVESTMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Authorized	 	Issued	 	 
	Holder	 	Issuer	 	Jurisdiction	 	Equity Interests	 	Equity Interests	 	Ownership Percentage
	Quiksilver Americas, Inc.

	 	QS Mexico Holdings LP
	 	Delaware
	 	N/A
	 	N/A
	 	 	60	%
	Quiksilver, Inc.

	 	Kelly Slater Wave

Company, LLC
	 	Delaware
	 	N/A
	 	N/A
	 	 	8.5	%

 

 

Schedule 7.03

to Credit Agreement

EXISTING INDEBTEDNESS

1. Master Installment Payment Agreement among Parent and CIT Technology Financing Services, Inc.,
in connection with worldwide software license agreements with Microsoft Corp., in an the original
principal amount of $3,000,000, maturing on September 1, 2010, of which approximately $1,447,315
remains outstanding as of the Closing Date.

2. Deferred purchase price obligations of Parent of approximately $43,300,000 incurred in
connection with the Ski Rossignol S.A.

3. Guaranty obligations of Parent associated with Indebtedness of Quiksilver Japan K.K. in an
approximate outstanding principal amount of ¥1,600,000,000 owing to Tokyo Mitsubishi UJF in
connection with a certain short-term loan facility.

4. Guaranty obligations of Parent associated with Indebtedness of Quiksilver Japan K.K. in an
approximate outstanding principal amount of ¥200,000,000 owing to Tokyo Mitsubishi UFJ in
connection with a certain overdraft facility.

5. Guaranty obligations of Parent associated with Indebtedness of Quiksilver Japan K.K. in an
approximate outstanding principal amount of ¥1,000,000,000 owing to Resona in connection with a
certain short-term loan facility.

6. Guaranty obligations of Quiksilver, Inc. in connection with that certain lease, dated as of May
30, 2006, between Cottonwood Newpark Two L.C. and Rossignol Ski Company.

7. Indebtedness of Quiksilver Canada Corp. in an approximate outstanding principal amount of
$2,500,000 owing to QS Holdings S.à r.l.

 

 

Schedule 7.10

to Credit Agreement

EXISTING RESTRICTIONS

1. Indenture, dated as of July 22, 2005 (the “Indenture”), among Quiksilver, Inc., the
Subsidiary Guarantors party thereto and Wilmington Trust Company, as trustee.

 

 

Schedule 10.02

to Credit Agreement

ADMINISTRATIVE AGENT’S OFFICE; CERTAIN ADDRESSES

	 	 	 
	Party	 	Notice Information
	Loan Parties:

	 	c/o Quiksilver, Inc.
	Quiksilver, Inc.

	 	15202 Graham Street
	Quiksilver Americas, Inc.

	 	Huntington Beach, CA 92649
	DC Shoes, Inc.

	 	Attention: Chief Financial Officer
	Hawk Designs, Inc.

	 	Telephone: (714) 889-2200
	Mervin Manufacturing, Inc.

	 	Telecopier: (714) 889-2322
	QS Wholesale, Inc.

	 	Email: Joe.scirocco@quiksilver.com
	 
	QS Retail, Inc.

	 	with a copy to:
	 
	Quiksilver Canada Corp.

	 	Skadden, Arps, Slate, Meagher & Flom LLP
	QS Retail Canada Corp.

	 	300 South Grand Avenue
	 

	 	Los Angeles, California 90071-3144
	 

	 	Attention: K. Kristine Dunn, Esq.
	 

	 	Telephone: (213) 687-5493
	 

	 	Facsimile: (213) 621-5493
	 

	 	Email: kristine.dunn@skadden.com
	 
	 

	 	Lead Borrower’s Website: www.quiksilverinc.com
	 
	 	 
	Administrative Agent, Co-Collateral

	 	Bank of America, N.A.
	Agent, L/C Issuer & Swing Line

	 	100 Federal Street, 9th Floor
	Lender:

	 	Boston, Massachusetts 02110
	Bank of America, N.A.

	 	Attention: Stephen J. Garvin, Managing Director
	 

	 	Telephone: (617) 434-9399
	 

	 	Facsimile: (617) 434-6685
	 

	 	Email: stephen.garvin@bankofamerica.com
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Riemer & Braunstein LLP
	 

	 	Three Center Plaza
	 

	 	Boston, Massachusetts 02108
	 

	 	Attention: Jason S. DelMonico, Esquire
	 

	 	Telephone: (617) 880-3496
	 

	 	Facsimile: (617) 880-3456
	 

	 	Email: jdelmonico@riemerlaw.com
	 
	 	 
	 

	 	Administrative Agent’s Account:

 

 

	 	 	 
	Party	 	Notice Information
	 

	 	Bank of America
	 

	 	ABA: 026-009-593
	 

	 	Account Name: Bank of America Retail Group Collection
	 

	 	Account Number: 0050252044
	 

	 	Ref: Quiksilver Americas, Inc.
	 
	 	 
	Co-Collateral Agent

General Electric Capital Corporation

	 	General Electric Capital Corporation 

10 Riverview Drive 

Danbury, CT 06810
	 

	 	Attention: Quiksilver Account Manager
	 

	 	Telephone: (203) 749-6296
	 

	 	Facsimile: (203) 749-4666
	 

	 	Email: joshua.osher@ge.com
	 
	 	 
	 

	 	with a copies to:
	 
	 	 
	 

	 	Kilpatrick Stockton LLP
	 

	 	Suite 2800
	 

	 	1100 Peachtree Street NE
	 

	 	Atlanta, GA 30309-4530
	 

	 	Attention: Hilary P. Jordan, Esq.
	 

	 	Telephone: (404) 815- 6362
	 

	 	Facsimile: (404) 541-3256
	 

	 	Email: hjordan@kilpatrickstockton.com
	 
	 

	 	and
	 
	 

	 	General Electric Capital Corporation
	 

	 	201 Merritt 7
	 

	 	Norwalk, CT 06851
	 

	 	Attention: Corporate Counsel-Commercial Finance
	 

	 	Telephone: (203) 956-4378
	 

	 	Facsimile: (203) 956-4001
	 

	 	Email: john.pistocchi@ge.com
	 
	 	 
	Canadian Agent:

Bank of America, N.A. (acting
through its Canada branch)

	 	Bank of America, N.A. (acting through its Canada branch)

200 Front Street West

Toronto, Ontario, Canada M5V 3L2

Attention: Medina Sales de Andrade, Vice President
	 

	 	Telephone: (416) 349-5433
	 

	 	Facsimile: (416) 349-4283
	 

	 	Email: medina.sales_de_andrade@bankofamerica.com
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Riemer & Braunstein LLP
	 

	 	Three Center Plaza
	 

	 	Boston, Massachusetts 02108
	 

	 	Attention: Jason S. DelMonico, Esquire
	 

	 	Telephone: (617) 880-3496
	 

	 	Facsimile: (617) 880-3456

 

 

	 	 	 
	Party	 	Notice Information
	 

	 	Email: jdelmonico@riemerlaw.com
	 
	 	 
	 

	 	and
	 
	 	 
	 

	 	Ogilvy Renault LLP
	 

	 	Suite 3800
	 

	 	Royal Bank Plaza, South Tower
	 

	 	200 Bay Street
	 

	 	P.O. Box 84
	 

	 	Toronto, Ontario M5J 2Z4
	 

	 	Attention: C. Nicole Sigouin, Esq.
	 

	 	Telephone: (416) 216-3929
	 

	 	Facsimile: (416) 216-3930
	 

	 	Email: nsigouin@ogilvyrenault.com
	 
	 	 
	 

	 	Canadian Agent’s Account for Canadian Loans (US Dollar):
	 
	 	 
	 

	 	Bank America International New York
	 

	 	335 Madison Avenue, New York, NY. 10017
	 

	 	Swift Code: BOFAUS3N ABA# 026009593
	 

	 	For the Account of: Bank of America, N.A., Canada Branch
	 

	 	Account # 65502-01805
	 

	 	Swift Code: BOFACATT
	 

	 	Ref: Quiksilver Canada Corp
	 
	 	 
	 

	 	Canadian Agent’s Account for Canadian Loans (Canadian
	 

	 	Dollar):
	 
	 	 
	 

	 	LVTS — Large Value Transaction System
	 

	 	Bank of America NA, Canada Branch
	 

	 	200 Front Street West, Toronto
	 

	 	Swift Code: BOFACATT
	 

	 	A/C # 90083255
	 

	 	Attn: Loans Department
	 

	 	Transit #: 024156792
	 

	 	Ref: Quiksilver Canada Corp

 

 

Exhibit A-1

Committed Loan Notice (Committed Domestic Borrowing)

Date:                     

	 	 	 

	To:

	 	Bank of America, N.A., as Administrative Agent
	 

	 	100 Federal Street, 9th Floor
	 

	 	Boston, Massachusetts 02110

          Re: Credit Agreement dated as of July 31, 2009 (as amended, amended and restated, modified,
supplemented or restated and in effect from time to time, the “Credit Agreement”) by
and among, inter alia (i) Quiksilver Americas, Inc., as the Lead Borrower, (ii) Quiksilver
Canada Corp., as the Canadian Borrower, (iii) the other Borrowers from time to time party
thereto, (iv) the Guarantors from time to time party thereto, (v) the Lenders from time to
time party thereto, (vi) Bank of America, N.A., as Administrative Agent, Co-Collateral
Agent, Swing Line Lender, L/C Issuer, and Syndication Agent, (vii) General Electric Capital
Corporation, as Co-Collateral Agent, and (viii) Bank of America, N.A. (acting through its
Canada branch), as Canadian Agent.
Capitalized terms used but not defined herein shall have the meanings set forth in the
Credit Agreement.

Ladies and Gentlemen:

     The [Lead Borrower] [Parent] refers to the above described Credit Agreement and hereby
irrevocably notifies you of the [Committed Domestic Borrowing] [conversion of a Committed
Domestic Loan] [continuation of a LIBO Rate Loan] (the “Requested Action”) requested
below:

	 	1.	 	The Business Day of the Requested Action is                     , 20[                    ]1.
	 
	 	2.	 	The principal amount of the Requested Action2 is $                    ,
which shall consist of the following Types:

[remainder of page intentionally left blank]

 

			
	1	 	Each such notice must be received by the Administrative Agent not later than
11:00 a.m. (i) three (3) Business Days prior to the requested date of any Committed Borrowing of,
conversion to or continuation of LIBO Rate Loans, or of any conversion of LIBO Rate Loans to
Domestic Prime Rate Loans, and (ii) one (1) Business Day prior to the requested date of any
Committed Borrowing of Domestic Prime Rate Loans.
	 
	2	 	Each Committed Borrowing of, conversion to or continuation of LIBO Rate Loans
shall be in a principal amount of $1,000,000.00 or a whole multiple of $1,000,000.00 in excess
thereof, and, except as provided in Sections 2.03(c) and 2.04(c) of the Credit Agreement, each
Committed Borrowing of or conversion to Domestic Prime Rate Loans shall be in a principal amount of
$500,000.00 or a whole multiple of $100,000.00 in excess thereof.

 

 

	 	 	 	 	 	 	 	 	 
	Type of Committed Domestic Loans (Domestic Prime Rate Loans	 	 	 	 	 	 	 
	or	 	 	 	 	 	Interest Period for LIBO Rate	 
	LIBO Rate Loans)3	 	Amount	 	 	Loans4	 
	 
	 	$__________	 	 	 	[1] [2] [3] [6] months
	 
	 	 	 	 	 	 	 
	 
	 	$__________	 	 	 	[1] [2] [3] [6] months
	 
	 	 	 	 	 	 	 
	 
	 	$__________	 	 	 	[1] [2] [3] [6] months
	 
	 	 	 	 	 	 	 
	 
	 	$__________	 	 	 	[1] [2] [3] [6] months
	 
	 	 	 	 	 	 	 

	3.	 	[Proceeds of the requested Committed Domestic Borrowing are to be disbursed to
the following account(s):

                                        

                                        ]

     The [Lead Borrower] [Parent] hereby represents and warrants that the conditions specified in
Sections 4.02(a) and (b) of the Credit Agreement shall be satisfied on and as of the date of the
requested Committed Borrowing.

	 	 	 	 	 
	 	[QUIKSILVER AMERICAS, INC., a California

corporation, as Lead Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	] 	 
	 
	 	[QUIKSILVER, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	] 	 
	 

 

			
	3	 	Type of Committed Domestic Loans to be
borrowed or to which existing Committed Domestic Loans are to be converted. If
no election of Type of Committed Domestic Loans is specified, such Committed
Domestic Loans shall be made as Domestic Prime Rate Loans.
	 
	4	 	If no election of Interest Period is
specified, such notice shall be deemed a request for an Interest Period of one
(1) month.

 

 

Exhibit A-2

Committed Loan Notice (Committed Canadian Borrowing)

Date:                                         

	To:  	 	Bank of America, N.A. (acting through its Canada branch),

as Canadian Agent

200 Front Street West

Toronto, Ontario, Canada M5V 3L2

	 	 	     Re: Credit Agreement dated as of July 31, 2009 (as amended, amended and restated,
modified, supplemented or restated and in effect from time to time, the “Credit
Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead
Borrower, (ii) Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other Borrowers
from time to time party thereto, (iv) the Guarantors from time to time party thereto, (v)
the Lenders from time to time party thereto, (vi) Bank of America, N.A., as Administrative
Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and Syndication Agent, (vii)
General Electric Capital Corporation, as Co-Collateral Agent, and (viii) Bank of America,
N.A. (acting through its Canada branch), as Canadian Agent. Capitalized terms used but not
defined herein shall have the meanings set forth in the Credit Agreement.

Ladies and Gentlemen:

     The [Lead Borrower] [Parent] [Canadian Borrower] refers to the above described Credit
Agreement and hereby irrevocably notifies you of the [Committed Canadian Borrowing] [conversion of
a Committed Canadian Loan] [continuation of a BA Equivalent Loan] (the “Requested Action”)
requested below:

	 	1.	 	The Business Day of the Requested Action is                     , 20[___]1.

	 	2.	 	The principal amount of the Requested Action2 is CD$                    ,
which shall consist of the following Types:

[remainder of page intentionally left blank]

 

			
	1	 	Each such notice must be received by the
Canadian Agent not later than 11:00 a.m. (i) three (3) Business Days prior to
the requested date of any Committed Borrowing of, conversion to or continuation
of BA Equivalent Loans, or of any conversion of BA Equivalent Loans to Canadian
Prime Rate Loans and (ii) one (1) Business Day prior to the requested date of
any Committed Borrowing of Canadian Prime Rate Loans.
	 
	2	 	Each Committed Borrowing of, conversion to or
continuation of BA Equivalent Loans shall be in a principal amount of
CD$[                    ] or a whole multiple of CD$[                    ] in excess thereof, and,
except as provided in Sections 2.03(c) and 2.04(c) of the Credit Agreement,
each Committed Borrowing of Canadian Prime Rate Loans shall be in a principal
amount of CD$500,000.00 or a whole multiple of CD$100,000.00 in excess thereof.

 

 

	 	 	 	 	 
	Type of Committed Canadian	 	 	 	 
	Loan	 	 	 	
	(Canadian Prime Rate Loans or	 	 	 	 
	BA Equivalent Loans)3	 	Amount	 	Interest Period for BA Equivalent Loans4
	 

	 	CD$                    
	 	[1] [2] [3] [6] months
	 

	 	CD$                    
	 	[1] [2] [3] [6] months
	 

	 	CD$                    
	 	[1] [2] [3] [6] months
	 

	 	CD$                    
	 	[1] [2] [3] [6] months

	 	3.	 	[Proceeds of the requested Committed Canadian Borrowing are to be disbursed to
the following account(s):

                                        

                                        ]

     The [Lead Borrower] [Parent] [Canadian Borrower] hereby represents and warrants that the
conditions specified in Sections 4.02(a) and (b) of the Credit Agreement shall be satisfied on and
as of the date of the requested Committed Borrowing.

	 	 	 	 	 
	 	[QUIKSILVER CANADA CORP., a
Nova 
Scotia
unlimited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: ]	 	 
	 
	 	[QUIKSILVER AMERICAS, INC., a California

corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: ]	 	 
	 
	 	[QUIKSILVER, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: ]	 	 
	 

 

			
	3	 	Type of Committed Canadian Loans to be
borrowed or to which existing Committed Canadian Loans are to be converted. If
no election of Type of Committed Canadian Loans is specified, such Committed
Canadian Loans shall be made as Canadian Prime Rate Loans.
	 
	4	 	If no election of Interest Period is
specified, such notice shall be deemed a request for an Interest Period of one
(1) month.

 

 

Exhibit B-1

Swing Line Loan Notice (Domestic)

Date:                                         

	To:	 	Bank of America, N.A., as Administrative Agent and as Swing Line Lender

100 Federal Street, 9th Floor

Boston, Massachusetts 02110

	  	 	Re: Credit Agreement dated as of July 31, 2009 (as amended, amended and restated,
modified, supplemented or restated and in effect from time to time, the “Credit
Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead
Borrower, (ii) Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other Borrowers
from time to time party thereto, (iv) the Guarantors from time to time party thereto, (v)
the Lenders from time to time party thereto, (vi) Bank of America, N.A., as Administrative
Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and Syndication Agent, (vii)
General Electric Capital Corporation, as Co-Collateral Agent, and (viii) Bank of America,
N.A. (acting through its Canada branch), as Canadian Agent. Capitalized terms used but not
defined herein shall have the meanings set forth in the Credit Agreement.

Ladies and Gentlemen:

     The [Lead Borrower] [Parent] refers to the above described Credit Agreement and hereby
irrevocably notifies you of the Swing Line Borrowing requested below:

	 	1.	 	The Business Day of the requested Swing Line Borrowing is                     ,
20[___].1

	 	2.	 	The aggregate amount of the requested Swing Line Borrowing2 is
$                    , which Swing Line Borrowing shall consist of a Domestic Prime Rate
Loan.

	 	3.	 	Proceeds of the requested Swing Line Borrowing are to be disbursed to the
following account(s):

 

[remainder of page intentionally left blank]

 

			
	1	 	Each such notice must be received by the
Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the
requested borrowing date.
	 
	2	 	Each such Borrowing shall be in a principal
amount of not less than $100,000.00.

 

 

     The [Lead Borrower] [Parent] hereby represents and warrants that the conditions specified in
Sections 4.02(a) and (b) of the Credit Agreement shall be satisfied on and as of the date of the
requested Swing Line Borrowing.

	 	 	 	 	 
	 	[QUIKSILVER AMERICAS, INC., a California

corporation, as Lead Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: ]	 	 
	 
	 	[QUIKSILVER, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: ]	 	 

 

 

Exhibit B-2

Swing Line Loan Notice (Canadian)

Date:                                         

	To:	 	Bank of America, N.A. (acting through its Canada branch), as Canadian Agent
and as Swing Line Lender

200 Front Street West

Toronto, Ontario, Canada M5V 3L2

	  	 	Re: Credit Agreement dated as of July 31, 2009 (as amended, amended and restated,
modified, supplemented or restated and in effect from time to time, the “Credit
Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead
Borrower, (ii) Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other Borrowers
from time to time party thereto, (iv) the Guarantors from time to time party thereto, (v)
the Lenders from time to time party thereto, (vi) Bank of America, N.A., as Administrative
Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and Syndication Agent, (vii)
General Electric Capital Corporation, as Co-Collateral Agent, and (viii) Bank of America,
N.A. (acting through its Canada branch), as Canadian Agent. Capitalized terms used but not
defined herein shall have the meanings set forth in the Credit Agreement.

Ladies and Gentlemen:

     The [Lead Borrower] [Parent] [Canadian Borrower] refers to the above described Credit
Agreement and hereby irrevocably notifies you of the Swing Line Borrowing requested below:

	 	1.	 	The Business Day of the requested Swing Line Borrowing is                     ,
20[___].1

	 	2.	 	The aggregate amount of the requested Swing Line Borrowing2 is
CD$                    , which Swing Line Borrowing shall consist of a Canadian Prime Rate
Loan.

	 	3.	 	Proceeds of the requested Swing Line Borrowing are to be disbursed to the
following account(s):

 

[remainder of page intentionally left blank]

 

			
	1	 	Each such notice must be received by the
Swing Line Lender and the Canadian Agent not later than 1:00 p.m. on the
requested borrowing date.
	 
	2	 	Each such Borrowing shall be in a principal
amount of not less than CD$100,000.00.

 

 

     The [Lead Borrower] [Parent] [Canadian Borrower] hereby represents and warrants that the
conditions specified in Sections 4.02(a) and (b) of the Credit Agreement shall be satisfied on and
as of the date of the requested Swing Line Borrowing.

	 	 	 	 	 
	 	[QUIKSILVER CANADA CORP., a Nova 
Scotia
unlimited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: ]	 	 
	 
	 	[QUIKSILVER AMERICAS, INC., a California

corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: ]	 	 
	 
	 	[QUIKSILVER, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: ]	 	 

 

 

	 	 	 	 	 

Exhibit C-1

 

CANADIAN NOTE

 

	 	 	 
	$[                    ]  	 	July [___], 2009 

     FOR VALUE RECEIVED, the undersigned (the “Canadian Borrower”) promises to
pay to the order of [                                        ] (hereinafter, with any subsequent holders,
the “Lender”), c/o Bank of America, N.A. (acting through its Canada branch),
200 Front Street West, Toronto, Ontario, Canada M5V 3L2, the principal sum of
[                                        ] ($                    ), or, if less, the aggregate unpaid principal
balance of Committed Canadian Loans made by the Lender to or for the account of any
Canadian Borrower pursuant to the Credit Agreement dated as of July 31, 2009 (as
amended, amended and restated, modified, supplemented or restated and in effect from
time to time, the “Credit Agreement”) by and among, inter alia (i) Quiksilver
Americas, Inc., as the Lead Borrower, (ii) the Canadian Borrower, (iii) the other
Borrowers from time to time party thereto, (iv) the Guarantors from time to time party
thereto, (v) the Lenders from time to time party thereto, (vi) Bank of America, N.A.,
as Administrative Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and
Syndication Agent, (vii) General Electric Capital Corporation, as Co-Collateral Agent,
and (viii) Bank of America, N.A. (acting through its Canada branch), as Canadian Agent,
with interest at the rate and payable in the manner stated therein.

     This is a “Note” to which reference is made in the Credit Agreement and is subject
to all terms and provisions thereof. The principal of, and interest on, this Note
shall be payable at the times, in the manner, and in the amounts as provided in the
Credit Agreement and shall be subject to prepayment and acceleration as provided
therein. Capitalized terms used herein and not defined herein shall have the meanings
assigned to such terms in the Credit Agreement.

     The Canadian Agent’s books and records concerning the Committed Canadian Loans, the
accrual of interest thereon, and the repayment of such Committed Canadian Loans, shall
be prima facie evidence of the indebtedness hereunder, absent manifest error.

     No delay or omission by the Canadian Agent, any Agent or the Lender in exercising
or enforcing any of such Agent’s or the Lender’s powers, rights, privileges, remedies
or discretions hereunder shall operate as a waiver thereof on that occasion nor on any
other occasion. No waiver of any Event of Default shall operate as a waiver of any
other Event of Default, nor as a continuing waiver.

     The Canadian Borrower, and each endorser and guarantor of this Note, waives
presentment, demand, notice (other than any notice expressly required by the terms of
this Note or the other Loan Documents), and protest, and also waives any delay on the
part of the holder hereof. The Canadian Borrower assents to any extension or other
indulgence (including,
without limitation, the release or substitution of Collateral) permitted by the
Canadian Agent, any Agent and/or the Lender with respect to this Note and/or any
Collateral or any extension or other indulgence with respect to any other liability
or any collateral given to secure any other liability of the Canadian Borrower or
any other Person obligated on account of this Note.

1

 

     This Note shall be binding upon the Canadian Borrower, and each endorser and
guarantor hereof, and upon their respective successors and assigns, and shall inure to
the benefit of the Lender and its successors, endorsees, and permitted assigns.

     The liabilities of the Canadian Borrower, and of any endorser or guarantor of this
Note, are joint and several, provided, however, the release by the Canadian Agent, any
Agent or the Lender of any one or more such Persons shall not release any other Person
obligated on account of this Note. Each reference in this Note to the Canadian
Borrower, any endorser, and any guarantor, is to such Person individually and also to
all such Persons jointly.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

     THE CANADIAN BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK
SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN
DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND THE CANADIAN BORROWER IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY
BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. THE CANADIAN BORROWER AGREES THAT
A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED
BY LAW. NOTHING IN THIS NOTE OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT
ANY CREDIT PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS
NOTE OR ANY OTHER LOAN DOCUMENT AGAINST THE CANADIAN BORROWER OR ITS PROPERTIES IN THE
COURTS OF ANY JURISDICTION.

     THE CANADIAN BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR
ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN THE PRECEDING PARAGRAPH. THE
CANADIAN BORROWER HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE
OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

     THE CANADIAN BORROWER IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER
PROVIDED FOR NOTICES IN SECTION 10.02 OF THE CREDIT AGREEMENT. NOTHING IN THIS NOTE
WILL AFFECT THE RIGHT OF ANY SUCH PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
BY APPLICABLE LAW.

     THE CANADIAN BORROWER AGREES THAT ANY ACTION COMMENCED BY THE CANADIAN BORROWER
ASSERTING ANY CLAIM OR COUNTERCLAIM ARISING UNDER OR IN CONNECTION WITH THIS NOTE OR
ANY OTHER LOAN DOCUMENT SHALL BE

2

 

BROUGHT SOLELY IN A COURT OF THE STATE OF NEW YORK
SITTING IN NEW YORK COUNTY OR ANY FEDERAL COURT SITTING THEREIN AS THE ADMINISTRATIVE
AGENT MAY ELECT IN ITS SOLE DISCRETION AND CONSENTS TO THE EXCLUSIVE JURISDICTION OF
SUCH COURTS WITH RESPECT TO ANY SUCH ACTION.

     The Canadian Borrower, each guarantor, endorser, surety and Lender makes the
following waiver knowingly, voluntarily, and intentionally, and understands that the
other parties to this Note, the Canadian Agent, the Agents and the Lender, in the
establishment and maintenance of their respective relationship with each other
contemplated by this Note, is relying thereon. THE CANADIAN BORROWER, EACH GUARANTOR,
ENDORSER, SURETY, AND LENDER, BY ITS ACCEPTANCE HEREOF, HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS NOTE, ANY
OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY). THE CANADIAN BORROWER (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER, AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THE CREDIT
AGREEMENT, THIS NOTE AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS HEREIN.

[SIGNATURE PAGE FOLLOWS]

3

 

     IN WITNESS WHEREOF, the Canadian Borrower has caused this Note to be duly executed
as of the date set forth above.

CANADIAN BORROWER:

	 	 	 	 	 
	 	QUIKSILVER CANADA CORP., a
Nova Scotia 
unlimited
liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature
Page to Canadian Note

 

 

Exhibit C-2

 

DOMESTIC NOTE

 

	 	 	 

	$[                    ]

	 	July [___], 2009

     FOR VALUE RECEIVED, the undersigned (singly, a “Domestic Borrower”, and collectively,
the “Domestic Borrowers”) jointly and severally promise to pay to the order of
[                                        ] (hereinafter, with any subsequent holders, the “Lender”), c/o Bank
of America, N.A., 100 Federal Street, 9th Floor, Boston, Massachusetts 02110, the
principal sum of [                                        ] ($                    ), or, if less, the aggregate unpaid
principal balance of Committed Domestic Loans made by the Lender to or for the account of any
Domestic Borrower pursuant to the Credit Agreement dated as of July 31, 2009 (as amended, amended
and restated, modified, supplemented or restated and in effect from time to time, the “Credit
Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead Borrower, (ii)
Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other Borrowers from time to time
party thereto, (iv) the Guarantors from time to time party thereto, (v) the other Lenders (as
defined in the Credit Agreement) from time to time party thereto, (vi) Bank of America, N.A., as
Administrative Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and Syndication Agent,
(vii) General Electric Capital Corporation, as Co-Collateral Agent, and (viii) Bank of America,
N.A. (acting through its Canada branch), as Canadian Agent.

     This is a “Note” to which reference is made in the Credit Agreement and is subject to all
terms and provisions thereof. The principal of, and interest on, this Note shall be payable at the
times, in the manner, and in the amounts as provided in the Credit Agreement and shall be subject
to prepayment and acceleration as provided therein. Capitalized terms used herein and not defined
herein shall have the meanings assigned to such terms in the Credit Agreement.

     The Administrative Agent’s books and records concerning the Committed Domestic Loans, the
accrual of interest thereon, and the repayment of such Committed Domestic Loans, shall be prima
facie evidence of the indebtedness hereunder, absent manifest error.

     No delay or omission by any Agent or the Lender in exercising or enforcing any of such Agent’s
or the Lender’s powers, rights, privileges, remedies or discretions hereunder shall operate as a
waiver thereof on that occasion nor on any other occasion. No waiver of any Event of Default shall
operate as a waiver of any other Event of Default, nor as a continuing waiver.

     Each Domestic Borrower, and each endorser and guarantor of this Note, waives presentment,
demand, notice (other than any notice expressly required by the terms of this Note or the other
Loan Documents), and protest, and also waives any delay on the part of the holder hereof. Each
Domestic Borrower assents to any extension or other indulgence (including, without limitation, the
release or substitution of Collateral) permitted by any Agent and/or the Lender with respect to
this Note and/or any Collateral or any extension or other indulgence with respect to any other
liability or any collateral given to secure any other liability of any Domestic Borrower or any
other Person obligated on account of this Note.

1

 

     This Note shall be binding upon each Domestic Borrower, and each endorser and guarantor
hereof, and upon their respective successors and assigns, and shall inure to the benefit of the
Lender and its successors, endorsees, and permitted assigns.

     The liabilities of each Domestic Borrower, and of any endorser or guarantor of this Note, are
joint and several, provided, however, the release by any Agent or the Lender of any one or more
such Persons shall not release any other Person obligated on account of this Note. Each reference
in this Note to each Domestic Borrower, any endorser, and any guarantor, is to such Person
individually and also to all such Persons jointly.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

     EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF
THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM
ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OTHER LOAN
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH PARTY HERETO IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN
SUCH FEDERAL COURT. EACH PARTY HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS NOTE OR IN ANY OTHER LOAN DOCUMENT SHALL
AFFECT ANY RIGHT THAT ANY CREDIT PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS NOTE OR ANY OTHER LOAN DOCUMENT AGAINST ANY PARTY HERETO OR ITS PROPERTIES IN THE
COURTS OF ANY JURISDICTION.

     EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OTHER LOAN DOCUMENT IN ANY
COURT REFERRED TO IN THE PRECEDING PARAGRAPH. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 10.02 OF THE CREDIT AGREEMENT. NOTHING IN THIS NOTE WILL AFFECT THE RIGHT OF
ANY SUCH PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     EACH PARTY HERETO AGREES THAT ANY ACTION COMMENCED BY ANY DOMESTIC BORROWER ASSERTING ANY
CLAIM OR COUNTERCLAIM ARISING UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER LOAN DOCUMENT
SHALL BE BROUGHT SOLELY IN A COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK

2

 

COUNTY OR ANY FEDERAL COURT SITTING THEREIN AS THE ADMINISTRATIVE AGENT MAY ELECT IN ITS SOLE
DISCRETION AND CONSENTS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS WITH RESPECT TO ANY SUCH
ACTION.

     Each Domestic Borrower, guarantor, endorser, surety and Lender makes the following waiver
knowingly, voluntarily, and intentionally, and understands that the other parties to this Note, the
Agents and the Lender, in the establishment and maintenance of their respective relationship with
each other contemplated by this Note, is relying thereon. EACH DOMESTIC BORROWER, EACH GUARANTOR,
ENDORSER, SURETY, AND LENDER, BY ITS ACCEPTANCE HEREOF, HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS NOTE, ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THE CREDIT AGREEMENT, THIS NOTE AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS HEREIN.

[SIGNATURE PAGES FOLLOWS]

3

 

     IN WITNESS WHEREOF, the Domestic Borrowers have caused this Note to be duly executed as of the
date set forth above.

DOMESTIC BORROWERS:

	 	 	 	 	 
	 	QUIKSILVER AMERICAS, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	DC SHOES, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	HAWK DESIGNS, INC., a California corporation

	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MERVIN MANUFACTURING, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Domestic Note

 

 

	 	 	 	 	 
	 	QS WHOLESALE, INC., a California corporation
 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	QS RETAIL, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Domestic Note

 

 

Exhibit C-3

 

CANADIAN SWING LINE NOTE

 

	 	 	 

	$[                    ]

	 	July [___], 2009

     FOR VALUE RECEIVED, the undersigned (the “Canadian Borrower”) promises to pay to the
order of BANK OF AMERICA, N.A. (acting through its Canada branch) (hereinafter, with any subsequent
holders, the “Swing Line Lender”), c/o Bank of America, N.A. (acting through its Canada
branch), 200 Front Street West, Toronto, Ontario, Canada M5V 3L2, the principal sum of
[                                        ] ($                    ), or, if less, the aggregate unpaid principal balance of
Swing Line Loans made by the Swing Line Lender to or for the account of any Canadian Borrower
pursuant to the Credit Agreement dated as of July 31, 2009 (as amended, amended and restated,
modified, supplemented or restated and in effect from time to time, the “Credit Agreement”)
by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead Borrower, (ii) the Canadian
Borrower, (iii) the other Borrowers from time to time party thereto, (iv) the Guarantors from time
to time party thereto, (v) the Lenders from time to time party thereto, (vi) Bank of America, N.A.,
as Administrative Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and Syndication Agent,
(vii) General Electric Capital Corporation, as Co-Collateral Agent, and (viii) Bank of America,
N.A. (acting through its Canada branch), as Canadian Agent, with interest at the rate and payable
in the manner stated therein.

     This is a “Swing Line Note” to which reference is made in the Credit Agreement and is subject
to all terms and provisions thereof. The principal of, and interest on, this Swing Line Note shall
be payable at the times, in the manner, and in the amounts as provided in the Credit Agreement and
shall be subject to prepayment and acceleration as provided therein. Capitalized terms used herein
and not defined herein shall have the meanings assigned to such terms in the Credit Agreement.

     The Canadian Agent’s books and records concerning the Swing Line Loans made to the Canadian
Borrowers, the accrual of interest thereon, and the repayment of such Swing Line Loans, shall be
prima facie evidence of the indebtedness hereunder, absent manifest error.

     No delay or omission by the Canadian Agent, any Agent or the Swing Line Lender in exercising
or enforcing any of such Agent’s or the Swing Line Lender’s powers, rights, privileges, remedies or
discretions hereunder shall operate as a waiver thereof on that occasion nor on any other occasion.
No waiver of any Event of Default shall operate as a waiver of any other Event of Default, nor as
a continuing waiver.

     The Canadian Borrower, and each endorser and guarantor of this Swing Line Note, waives
presentment, demand, notice (other than any notice expressly required by the terms of this Swing
Line Note or the other Loan Documents), and protest, and also waives any delay on the part of the
holder hereof. The Canadian Borrower assents to any extension or other indulgence (including,
without limitation, the release or substitution of Collateral) permitted by the Canadian Agent, any
Agent and/or the Swing Line Lender with respect to this Swing Line Note and/or any Collateral or
any extension or other indulgence with respect to any other liability or any collateral given to secure any
other liability of the Canadian Borrower or any other Person obligated on account of this Swing
Line Note.

1

 

     This Swing Line Note shall be binding upon the Canadian Borrower, and each endorser and
guarantor hereof, and upon their respective successors and assigns, and shall inure to the benefit
of the Swing Line Lender and its successors, endorsees, and permitted assigns.

     The liabilities of the Canadian Borrower, and of any endorser or guarantor of this Swing Line
Note, are joint and several, provided, however, the release by the Canadian Agent, any Agent or the
Swing Line Lender of any one or more such Persons shall not release any other Person obligated on
account of this Swing Line Note. Each reference in this Swing Line Note to the Canadian Borrower,
any endorser, and any guarantor, is to such Person individually and also to all such Persons
jointly.

     THIS SWING LINE NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

     THE CANADIAN BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO
THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY
AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE
COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SWING LINE
NOTE OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND THE
CANADIAN BORROWER IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. THE CANADIAN BORROWER AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
SWING LINE NOTE OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY CREDIT PARTY MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS SWING LINE NOTE OR ANY OTHER LOAN
DOCUMENT AGAINST THE CANADIAN BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     THE CANADIAN BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SWING LINE NOTE OR ANY OTHER LOAN DOCUMENT
IN ANY COURT REFERRED TO IN THE PRECEDING PARAGRAPH. THE CANADIAN BORROWER HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO
THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     THE CANADIAN BORROWER IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 10.02 OF THE CREDIT AGREEMENT. NOTHING IN THIS SWING LINE NOTE WILL AFFECT THE
RIGHT OF ANY SUCH PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     THE CANADIAN BORROWER AGREES THAT ANY ACTION COMMENCED BY THE CANADIAN BORROWER ASSERTING ANY
CLAIM OR COUNTERCLAIM ARISING UNDER OR IN CONNECTION WITH THIS SWING LINE NOTE OR ANY OTHER LOAN
DOCUMENT SHALL

2

 

BE BROUGHT SOLELY IN A COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY OR
ANY FEDERAL COURT SITTING THEREIN AS THE ADMINISTRATIVE AGENT MAY ELECT IN ITS SOLE DISCRETION AND
CONSENTS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS WITH RESPECT TO ANY SUCH ACTION.

     The Canadian Borrower, each guarantor, endorser, surety and Swing Line Lender makes the
following waiver knowingly, voluntarily, and intentionally, and understands that the other parties
to this Swing Line Note, the Canadian Agent, the Agents and the Swing Line Lender, in the
establishment and maintenance of their respective relationship with each other contemplated by this
Swing Line Note, is relying thereon. THE CANADIAN BORROWER, EACH GUARANTOR, ENDORSER, SURETY, AND
SWING LINE LENDER, BY ITS ACCEPTANCE HEREOF, HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS SWING LINE NOTE, ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). THE
CANADIAN BORROWER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THE CREDIT AGREEMENT, THIS SWING LINE NOTE AND THE OTHER LOAN
DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS HEREIN.

[SIGNATURE PAGE FOLLOWS]

3

 

     IN WITNESS WHEREOF, the Canadian Borrower has caused this Swing Line Note to be duly executed
as of the date set forth above.

CANADIAN BORROWER:

	 	 	 	 	 
	 	QUIKSILVER CANADA CORP., a Nova Scotia unlimited
liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Signature Page to Canadian Swing Line Note

 

 

Exhibit C-4

 

DOMESTIC SWING LINE NOTE

 

	 	 	 

	$[                    ]

	 	July [___], 2009

     FOR VALUE RECEIVED, the undersigned (singly, a “Domestic Borrower”, and collectively,
the “Domestic Borrowers”) jointly and severally promise to pay to the order of BANK OF
AMERICA, N.A. (hereinafter, with any subsequent holders, the “Swing Line Lender”), 100
Federal Street, 9th Floor, Boston, Massachusetts 02110, the principal sum of
[                                        ] ($                    ), or, if less, the aggregate unpaid principal balance of
Swing Line Loans made by the Swing Line Lender to or for the account of any Domestic Borrower
pursuant to the Credit Agreement dated as of July 31, 2009 (as amended, amended and restated,
modified, supplemented or restated and in effect from time to time, the “Credit Agreement”)
by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead Borrower, (ii) Quiksilver
Canada Corp., as the Canadian Borrower, (iii) the other Borrowers from time to time party thereto,
(iv) the Guarantors from time to time party thereto, (v) the Lenders from time to time party
thereto, (vi) Bank of America, N.A., as Administrative Agent, Co-Collateral Agent, Swing Line
Lender, L/C Issuer, and Syndication Agent, (vii) General Electric Capital Corporation, as
Co-Collateral Agent, and (viii) Bank of America, N.A. (acting through its Canada branch), as Canadian Agent, with
interest at the rate and payable in the manner stated therein.

     This is a “Swing Line Note” to which reference is made in the Credit Agreement and is subject
to all terms and provisions thereof. The principal of, and interest on, this Swing Line Note shall
be payable at the times, in the manner, and in the amounts as provided in the Credit Agreement and
shall be subject to prepayment and acceleration as provided therein. Capitalized terms used herein
and not defined herein shall have the meanings assigned to such terms in the Credit Agreement.

     The Administrative Agent’s books and records concerning the Swing Line Loans made to the
Domestic Borrowers, the accrual of interest thereon, and the repayment of such Swing Line Loans,
shall be prima facie evidence of the indebtedness hereunder, absent manifest error.

     No delay or omission by any Agent or the Swing Line Lender in exercising or enforcing any of
such Agent’s or the Swing Line Lender’s powers, rights, privileges, remedies or discretions
hereunder shall operate as a waiver thereof on that occasion nor on any other occasion. No waiver
of any Event of Default shall operate as a waiver of any other Event of Default, nor as a
continuing waiver.

     Each Domestic Borrower, and each endorser and guarantor of this Swing Line Note, waives
presentment, demand, notice (other than any notice expressly required by the terms of this Swing
Line Note or the other Loan Documents), and protest, and also waives any delay on the part of the
holder hereof. Each Domestic Borrower assents to any extension or other indulgence (including,
without limitation, the release or substitution of Collateral) permitted by any Agent and/or the
Swing Line Lender with respect to this Swing Line Note and/or any Collateral or any extension or
other indulgence with respect to any other liability or any collateral given to secure any other
liability of any Domestic Borrower or any other Person obligated on account of this Swing Line
Note.

1

 

     This Swing Line Note shall be binding upon each Domestic Borrower, and each endorser and
guarantor hereof, and upon their respective successors and assigns, and shall inure to the benefit
of the Swing Line Lender and its successors, endorsees, and permitted assigns.

     The liabilities of each Domestic Borrower, and of any endorser or guarantor of this Swing Line
Note, are joint and several, provided, however, the release by any Agent or the Swing Line Lender
of any one or more such Persons shall not release any other Person obligated on account of this
Swing Line Note. Each reference in this Swing Line Note to each Domestic Borrower, any endorser,
and any guarantor, is to such Person individually and also to all such Persons jointly.

     THIS SWING LINE NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

     EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF
THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM
ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SWING LINE NOTE OR ANY
OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH PARTY HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH PARTY HERETO AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
SWING LINE NOTE OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY CREDIT PARTY MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS SWING LINE NOTE OR ANY OTHER LOAN
DOCUMENT AGAINST ANY PARTY HERETO OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SWING LINE NOTE OR ANY OTHER LOAN DOCUMENT
IN ANY COURT REFERRED TO IN THE PRECEDING PARAGRAPH. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 10.02 OF THE CREDIT AGREEMENT. NOTHING IN THIS SWING LINE NOTE WILL AFFECT THE
RIGHT OF ANY SUCH PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     EACH PARTY HERETO AGREES THAT ANY ACTION COMMENCED BY ANY DOMESTIC BORROWER ASSERTING ANY
CLAIM OR COUNTERCLAIM ARISING UNDER OR IN CONNECTION WITH THIS SWING LINE NOTE OR ANY OTHER LOAN
DOCUMENT SHALL

2

 

BE BROUGHT SOLELY IN A COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY OR
ANY FEDERAL COURT SITTING THEREIN AS THE ADMINISTRATIVE AGENT MAY ELECT IN ITS SOLE DISCRETION AND
CONSENTS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS WITH RESPECT TO ANY SUCH ACTION.

     Each Domestic Borrower, guarantor, endorser, surety and Swing Line Lender makes the following
waiver knowingly, voluntarily, and intentionally, and understands that the other parties to this
Swing Line Note, the Agents and the Swing Line Lender, in the establishment and maintenance of
their respective relationship with each other contemplated by this Swing Line Note, is relying
thereon. EACH DOMESTIC BORROWER, EACH GUARANTOR, ENDORSER, SURETY, AND SWING LINE LENDER, BY ITS
ACCEPTANCE HEREOF, HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS SWING LINE NOTE, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THE CREDIT
AGREEMENT, THIS SWING LINE NOTE AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS HEREIN.

[SIGNATURE PAGES FOLLOW]

3

 

     IN WITNESS WHEREOF, the Domestic Borrowers have caused this Swing Line Note to be duly
executed as of the date set forth above.

DOMESTIC BORROWERS:

	 	 	 	 	 
	 	QUIKSILVER AMERICAS, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	DC SHOES, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	HAWK DESIGNS, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MERVIN MANUFACTURING, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Signature Page to Domestic Swing Line Note

 

 

	 	 	 	 	 
	 	QS WHOLESALE, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	QS RETAIL, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Signature Page to Domestic Swing Line Note

 

 

Exhibit D

Compliance Certificate

Date of Certificate:                     

	 	 	 

	To:

	 	Bank of America, N.A., as Administrative Agent
	 

	 	100 Federal Street, 9th Floor
	 

	 	Boston, Massachusetts 02110
	 

	 	Attention: Mr. Stephen J. Garvin, Managing Director

     Re: Credit Agreement dated as of July 31, 2009 (as amended, amended and restated,
modified, supplemented or restated and in effect from time to time, the “Credit
Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead
Borrower, (ii) Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other Borrowers
from time to time party thereto, (iv) the Guarantors from time to time party thereto, (v)
the Lenders from time to time party thereto, (vi) Bank of America, N.A., as Administrative
Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and Syndication Agent, (vii)
General Electric Capital Corporation, as Co-Collateral Agent, and (viii) Bank of America,
N.A. (acting through its Canada branch), as Canadian Agent. Capitalized terms used but not
defined herein shall have the meanings set forth in the Credit Agreement.

     The undersigned, a duly authorized and acting Responsible Officer of the [Lead Borrower]
[Parent], hereby certifies on behalf of the Loan Parties as of the date hereof the following:

	1.	 	Covenant Compliance Event.
	 
	 	 	As of the date hereof, there [is a/is no] continuing Covenant Compliance Event.
	 
	2.	 	Consolidated Fixed Charge Coverage Ratio.
	 
	 	 	[Set forth in Appendix I, in reasonable detail, are calculations with respect to
Consolidated Fixed Charge Coverage Ratio for the [four (4) Fiscal Quarters/twelve (12)
Fiscal Months]1 ending [                    ].]
	 
	3.	 	No Material Accounting Changes, Etc.

	 	(a)	 	The financial statements furnished to the Administrative Agent for the [Fiscal
Year/Fiscal Quarter/Fiscal Month] ending [                    ] were prepared in conformity
with, GAAP applied on a consistent basis, as in effect from time to time, applied in a
manner consistent with that used in preparing the Audited Financial Statements and the
Americas Consolidated statements present fairly in all material respects the financial
condition and

 

			
	1	 	To be the most recently completed four (4) Fiscal
Quarters of the Parent for which financial statements have been or were
required to be delivered for any period prior to the end of the first Fiscal
Month which occurs after the first full eighteen (18) months following the
Closing Date and the twelve (12) Fiscal Months most recently ended for which
financial statements are available all periods thereafter.

-1-

 

	 	 	 	results of operations of the Parent and its Americas Subsidiaries, as
of the end of the period(s) covered, subject to (i) with respect to the monthly and
quarterly financial statements, normal year end audit adjustments and the absence of
footnotes and (ii) any changes as disclosed on Appendix II hereto.
	 
	 	(b)	 	Except as set forth in Appendix II, there has been no change in GAAP
which has been applied in the most recent audited financial statements delivered by
Lead Borrower since [                                        ] (the date of the most recent audited financial
statements delivered by Lead Borrower), and if such a change has occurred, the effect
of such change on the financial statements is detailed in Appendix II.

	4.	 	No Default or Event of Default.
	 
	 	 	[As of the date hereof, no Default or Event of Default has occurred and is continuing.][ No
Default or Event of Default has occurred and is continuing, except as set forth on
Appendix III. The Borrowers have taken or propose to take those actions with
respect to such Default or Event of Default as described on said Appendix III.]

[Signature Page Follows]

-2-

 

     IN WITNESS WHEREOF, the [Lead Borrower] [Parent], on behalf of itself and each of the other
Loan Parties, has duly executed this Compliance Certificate as the date first written above.

	 	 	 	 	 
	 	[LEAD BORROWER] [PARENT]:

[QUIKSILVER AMERICAS, INC., a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: ]	 	 
	 
	 	[QUIKSILVER, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: ]	 	 

-3-

 

APPENDIX I

The following is a reasonably detailed calculation of the Consolidated Fixed Charge Coverage Ratio:

	 	 	 	 	 	 	 

	1.

	 	Consolidated EBITDA For Such Measurement Period:	 	 	 	 
	 
	 	 	 	 	 	 
	(a)

	 	Consolidated Net Income of the
Parent and the Americas Subsidiaries on an Americas Consolidated
basis for the most recently completed Measurement Period:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Plus the following (to the extent deducted in calculating
such Consolidated Net Income) (in each case of or by the
Parent and the Americas Subsidiaries for such
Measurement Period):	 	 	 	 
	 
	 	 	 	 	 	 
	(b)

	 	Consolidated Interest Charges:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(c)

	 	the provision for federal, state,
local and foreign income Taxes:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(d)

	 	depreciation and amortization expense:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(f)

	 	other non-recurring expenses
reducing such Consolidated Net Income which do not represent a cash item in such period or any future period:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(g)

	 	costs, fees and expenses in
connection with the Loan Documents, the Term Loan Documents and the
other transactions occurring on or about the Closing Date:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(h)

	 	costs, fees and expenses of
business consultants, advisors and other outside professionals
incurred prior to July 31, 2009, not to exceed $2,000,000:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(i)

	 	impairment charges and asset
write-offs pursuant to GAAP and any non-cash stock compensation expenses:	 	 	 	 
	 

	 	 	 	 	 	 

-4-

 

	 	 	 	 	 	 	 

	(j)

	 	other non-cash restructuring,
severance and integration charges reducing such Consolidated Net
Income (provided that if any such non-cash charge represents an
accrual or reserve for any potential cash items in any future period,
the cash payment in respect thereof in such future period shall be
subtracted from Consolidated EBITDA to such extent for such future period):	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(k)

	 	the sum of lines 1(a) through 1(j):	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	minus the sum of the following (to the extent included in
calculating such Consolidated Net Income) (in each case
of or by the Parent and the Americas Subsidiaries for such
Measurement Period):	 	 	 	 
	 
	 	 	 	 	 	 
	(l)

	 	federal, state, local and foreign income tax credits:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(m)

	 	all non-cash items increasing
Consolidated Net Income:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(n)

	 	the sum of line 1(l) and Line 1(m):	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(o)

	 	Consolidated EBITDA [line 1(k)
minus line 1(n)]:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	2.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(a)

	 	Capital Expenditures for such period:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(b)

	 	aggregate amount of federal, state,
local, provincial, territorial, municipal and foreign income taxes
paid in cash during such Measurement Period (net of federal, state,
local, provincial, territorial, municipal and foreign income tax
refunds received in cash during such Measurement Period:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(c)

	 	the sum of lines 2(a) through 2(b):	 	 	 	 
	 

	 	 	 	 	 	 

-5-

 

	 	 	 	 	 	 	 

	3.

	 	line 1(o) minus line 2(c):	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	4.

	 	Debt Service Charges for such
Measurement Period (in each case determined on an Americas
Consolidated basis, in accordance with GAAP, as applicable):	 	 	 	 
	 
	 	 	 	 	 	 
	(a)

	 	Consolidated Interest Charges paid
in cash or required to be paid in cash for such Measurement Period:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(b)

	 	principal amount of all scheduled
amortization payments made in cash or required to be made in cash by
the Parent or the Americas Subsidiaries on account of Indebtedness
(excluding the Obligations and any Synthetic Lease Obligations but
including, without limitation, any Capital Lease Obligations) during such Measurement Period:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(c)

	 	Debt Service Charges: [the sum
of lines 4(a) and 4(b)]:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	5.

	 	The aggregate amount of all
Restricted Payments Paid in cash by the Parent during such Measurement Period:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	6.

	 	the sum of line 5 and line 4(c):	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	7.

	 	Consolidated Fixed Charge Coverage
Ratio [line 3 divided by line 6]:	 	 	 	 
	 

	 	 	 	 	 	 

COVENANT: During the continuance of a Covenant Compliance Event, the Consolidated Fixed Charge
Coverage Ratio referenced on line 7 above may not be less than 1.10: 1.00.

	 	 	 	 	 	 	 

	8.

	 	In Compliance?
	 	[N/A][Yes/No]
	 	 

-6-

 

APPENDIX II

     Except as set forth below, no change in GAAP which has been applied in the most recent audited
financial statements delivered by Lead Borrower has occurred since [                                        ] (the date
of the most recent audited financial statements delivered by Lead Borrower). [If any such change
has occurred, the following describes the nature of the change in reasonable detail and the effect,
if any, of each such change in GAAP or in application thereof on the financial statements delivered
in accordance with the Credit Agreement].

-7-

 

[APPENDIX III

     Except as set forth below, no Default or Event of Default has occurred and is continuing as of
the date hereof. The following describes the nature of the Default or Event of Default in
reasonable detail and the steps, if any, being taken or contemplated by the Loan Parties to be
taken on account thereof.]

-8-

 

Exhibit E-1

Assignment and Assumption (Domestic Lenders)

     This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [the][each]1 Assignor
identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2
Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and
agreed that the rights and obligations of [the Assignors][the Assignees]3 hereunder are
several and not joint.]4 Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, amended and restated,
modified, supplemented or restated and in effect from time to time, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by [the][each] Assignee. The
Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full.

     For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a Domestic Lender][their respective capacities as
Domestic Lenders] under the Credit Agreement and any other documents or instruments delivered
pursuant thereto to the extent related to the amount and percentage interest identified below of
all of such outstanding rights and obligations of [the Assignor][the respective Assignors] under
the respective facilities identified below (including, without limitation, with respect to the
Domestic L/C Obligations and the Swing Line Loans made to the Domestic Borrowers included in such
facilities5) and (ii) to the extent permitted to be assigned under applicable Law, all
claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Domestic
Lender)][the respective Assignors (in their respective capacities as Domestic Lenders)] against any
Person, whether known or unknown, arising under or in connection with the Credit Agreement, any
other documents or instruments delivered pursuant thereto or the loan transactions governed thereby
or in any way based on or related to any of the foregoing, including, but not limited to, contract
claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights
and obligations sold and assigned by [the][any]

 

			
	1	 	For bracketed language here and elsewhere in
this form relating to the Assignor(s), if the assignment is from a single
Assignor, choose the first bracketed language. If the assignment is from
multiple Assignors, choose the second bracketed language.
	 
	2	 	For bracketed language here and elsewhere in
this form relating to the Assignee(s), if the assignment is to a single
Assignee, choose the first bracketed language. If the assignment is to
multiple Assignees, choose the second bracketed language.
	 
	3	 	Select as appropriate.
	 
	4	 	Include bracketed language if there are
either multiple Assignors or multiple Assignees.
	 
	5	 	Include all applicable subfacilities, if
any.

 

 

Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to
herein collectively as [the][an] “Assigned Interest”). Each such sale and assignment is
without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by [the][any] Assignor.

	 	 	 	 	 	 	 

	1.

	 	Assignor[s]:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	2.

	 	Assignee[s]:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	[for each Assignee, indicate if [Affiliate][Approved Fund] of [identify Lender]]

	3.	 	Domestic Borrowers: Quiksilver Americas, Inc., as Lead Borrower, and the other
Domestic Borrowers party to the Credit Agreement.
	 
	4.	 	Administrative Agent: Bank of America, N.A., as the Administrative Agent under the
Credit Agreement.
	 
	5.	 	Credit Agreement: Credit Agreement dated as of July 31, 2009 (as amended, amended
and restated, modified, supplemented or restated and in effect from time to time, the
“Credit Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the
Lead Borrower, (ii) Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other
Borrowers from time to time party thereto, (iv) the Guarantors from time to time party
thereto, (v) the Lenders from time to time party thereto, (vi) Bank of America, N.A., as
Administrative Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and Syndication
Agent, (vii) General Electric Capital Corporation, as Co-Collateral Agent, and (viii) Bank of
America, N.A. (acting through its Canada branch), as Canadian Agent.

[remainder of page intentionally left blank]

	6.	 	Assigned Interest[s]:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Amount of	 	 	Amount of	 	 	Percentage	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Assignor’s Domestic	 	 	Domestic	 	 	of Aggregate	 	 	Resulting Domestic	 	 	Resulting Domestic	 	 	 	 
	 	 	 	 	 	 	Commitment	 	 	Commitment/Domestic	 	 	Domestic Commitment/	 	 	Commitment/	 	 	Commitment/	 	 	 	 
	 	 	 	 	 	 	/Domestic	 	 	Loans	 	 	Domestic Loans	 	 	Domestic Loans of	 	 	Domestic Loans of	 	 	CUSIP	 
	Assignor[s]6	 	Assignee[s]7	 	 	Loans	 	 	Assigned8	 	 	Assigned9	 	 	Assignor	 	 	Assignee	 	 	Number	 
	 
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	$	 	 	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	$	 	 	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$	 	 	 	$	 	 	 	 	 	%	 	$	 	 	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	6	 	List each Assignor, as appropriate.
	 
	7	 	List each Assignee, as appropriate.
	 
	8	 	Subject to minimum amount requirements
pursuant to Section 10.06(b)(i) of the Credit Agreement and subject to
proportionate amount requirements pursuant to Section 10.06(b)(ii) of
the Credit Agreement.
	 
	9	 	Set forth, to at least 9 decimals, as a
percentage of the Domestic Commitment/Domestic Loans of all
Domestic Lenders thereunder.

 

 

	[7. 	 	 Trade Date: __________________]10
	 
	 	 	Effective Date:
____________________, 20___[ TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]
	 
	 	 	The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF
ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged, consented to:11

BANK OF
AMERICA, N.A., as

Administrative Agent

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

			
	10	 	To be completed if the Assignor and the
Assignee intend that the minimum assignment amount is to be determined as of
the Trade Date.
	 
	11	 	To the extent required under Section
10.06(b)(i)(B) or Section 10.06(b)(iii)(B) of the Credit Agreement.

 

 

Acknowledged and consented to:12

	 	 	 	 	 
	BANK OF AMERICA, N.A., as Swing Line Lender

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

			
	12	 	To the extent required under Section
10.06(b)(iii)(D) of the Credit Agreement.

 

 

Acknowledged and consented to:13

	 	 	 	 	 
	BANK OF AMERICA, N.A., as L/C Issuer

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

			
	13	 	To the extent required under Section
10.06(b)(iii)(C) of the Credit Agreement.

 

 

Acknowledged and consented to:14

	 	 	 	 	 
	QUIKSILVER AMERICAS, INC., as

the Lead Borrower

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

			
	14	 	To the extent required under Section
10.06(b)(i)(B) or Section 10.06(b)(iii)(A) of the Credit Agreement.

 

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

Reference is made to a certain Credit Agreement dated as of July 31, 2009 (as amended, amended and
restated, modified, supplemented or restated and in effect from time to time, the “Credit
Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead Borrower, (ii)
Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other Borrowers from time to time
party thereto, (iv) the Guarantors from time to time party thereto, (v) the Lenders from time to
time party thereto, (vi) Bank of America, N.A., as Administrative Agent, Co-Collateral Agent, Swing
Line Lender, L/C Issuer, and Syndication Agent, (vii) General Electric Capital Corporation, as
Co-Collateral Agent, and (viii) Bank of America, N.A. (acting through its Canada branch), as
Canadian Agent.

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1. Representations and Warranties.

          1.1. Assignor. [The][Each] Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made in or in
connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral
thereunder, (iii) the financial condition of the Loan Parties or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Loan Parties or any other
Person of any of their respective obligations under any Loan Document.

          1.2. Assignee. [The][Each] Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Domestic Lender
under the Credit Agreement, (ii) it meets all the requirements to be an Eligible Assignee under the
Credit Agreement (subject to such consents, if any, as may be required under Section
10.06(b) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound
by the provisions of the Credit Agreement as a Domestic Lender thereunder and, to the extent of
[the][the relevant] Assigned Interest, shall have the obligations of a Domestic Lender thereunder,
(iv) it is sophisticated with respect to decisions to acquire assets of the type represented by
[the][such] Assigned Interest and either it, or the Person exercising discretion in making its
decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such type,
(v) it has received a copy of the Credit Agreement, and has received or has been accorded the
opportunity to receive copies of the most recent financial statements delivered pursuant to
Section 6.01 thereof, as applicable, and such other documents and information as it deems
appropriate to make its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase [the][such] Assigned Interest, (vi) it has, independently and without
reliance upon the Administrative Agent, any other Agent, or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, and
(vii) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by
it pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such]
Assignee; and (b) agrees that (i) it will, independently and without reliance upon the
Administrative Agent, any other Agent, [the][any] Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Loan Documents,

 

 

and (ii) it will perform in accordance with their terms all of the obligations which by the
terms of the Loan Documents are required to be performed by it as a Domestic Lender.

          2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of [the][each] Assigned Interest (including payments of principal,
interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to
but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued
from and after the Effective Date.

          3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy or other electronic image scan transmission (e.g., “pdf” or
“tif” via email) shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of New York.

          4. Fees. Unless waived by the Administrative Agent in accordance with Section
10.06(b)(iv) of the Credit Agreement, this Assignment and Assumption shall be delivered to the
Administrative Agent with a processing and recordation fee of $3,500.00.

          5. Delivery. If [the][any] Assignee is not a Lender, such Assignee shall deliver to
the Administrative Agent an Administrative Questionnaire.

 

 

Exhibit E-2

Assignment and Assumption (Canadian Lenders)

     This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [the][each]1 Assignor
identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2
Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and
agreed that the rights and obligations of [the Assignors][the Assignees]3 hereunder are
several and not joint.]4 Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, amended and restated,
modified, supplemented or restated and in effect from time to time, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by [the][each] Assignee. The
Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full.

     For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a Canadian Lender][their respective capacities as
Canadian Lenders] under the Credit Agreement and any other documents or instruments delivered
pursuant thereto to the extent related to the amount and percentage interest identified below of
all of such outstanding rights and obligations of [the Assignor][the respective Assignors] under
the respective facilities identified below (including, without limitation, with respect to the
Canadian L/C Obligations and the Swing Line Loans made to the Canadian Borrower included in such
facilities5) and (ii) to the extent permitted to be assigned under applicable Law, all
claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Canadian
Lender)][the respective Assignors (in their respective capacities as Canadian Lenders)] against any
Person, whether known or unknown, arising under or in connection with the Credit Agreement, any
other documents or instruments delivered pursuant thereto or the loan transactions governed thereby
or in any way based on or related to any of the foregoing, including, but not limited to, contract
claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights
and obligations sold and assigned by [the][any]

 

			
	1	 	For bracketed language here and elsewhere in
this form relating to the Assignor(s), if the assignment is from a single
Assignor, choose the first bracketed language. If the assignment is from
multiple Assignors, choose the second bracketed language.
	 
	2	 	For bracketed language here and elsewhere in
this form relating to the Assignee(s), if the assignment is to a single
Assignee, choose the first bracketed language. If the assignment is to
multiple Assignees, choose the second bracketed language.
	 
	3	 	Select as appropriate.
	 
	4	 	Include bracketed language if there are
either multiple Assignors or multiple Assignees.
	 
	5	 	Include all applicable subfacilities, if
any.

 

 

Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to
herein collectively as [the][an] “Assigned Interest”). Each such sale and assignment is
without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by [the][any] Assignor.

	 	 	 	 	 

	1. Assignor[s]:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	2. Assignee[s]:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

	 	 	[for each Assignee, indicate if [Affiliate][Approved Fund] of [identify Lender]]
	 
	3.	 	Canadian Borrower: Quiksilver Canada Corp.
	 
	4.	 	Administrative Agent: Bank of America, N.A., as the Administrative Agent under the
Credit Agreement.
	 
	5.	 	Canadian Agent: Bank of America, N.A. (acting through its Canada branch), as the
Canadian Agent under the Credit Agreement.
	 
	6.	 	Credit Agreement: Credit Agreement dated as of July 31, 2009 (as amended, amended
and restated, modified, supplemented or restated and in effect from time to time, the
“Credit Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the
Lead Borrower, (ii) Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other
Borrowers from time to time party thereto, (iv) the Guarantors from time to time party
thereto, (v) the Lenders from time to time party thereto, (vi) Bank of America, N.A., as
Administrative Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and Syndication
Agent, (vii) General Electric Capital Corporation, as Co-Collateral Agent, and (viii) Bank of
America, N.A. (acting through its Canada branch), as Canadian Agent.

[remainder of page intentionally left blank]

 

 

	7.	 	Assigned Interest[s]:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of	 	Amount of	 	Percentage	 	Resulting Canadian	 	Resulting Canadian	 	 
	 	 	 	 	Assignor’s Canadian	 	Canadian	 	of Aggregate	 	Commitment/Canadian	 	Commitment/Canadian	 	 
	 	 	 	 	Commitment/	 	Commitment/Canadian	 	Canadian Commitment/	 	Loans of	 	Loans of	 	CUSIP
	Assignor[s]6	 	Assignee[s]7	 	Canadian Loans	 	Loans Assigned8	 	Canadian Loans Assigned9	 	Assignor	 	Assignee	 	Number
	 
	 	 
	 	CD$___
	 	CD$___
	 	                    %
	 	CD$___
	 	CD$___
	 	 
	 
	 	 	 	CD$___
	 	CD$___
	 	                    %
	 	CD$___
	 	CD$___	 	 
	 
	 	 	 	CD$___
	 	CD$___
	 	                    %
	 	CD$___
	 	CD$___	 	 

	[8.	 	 Trade Date:                     ]10

     Effective
Date:
                    , 20___ [ TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

     The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	6	 	List each Assignor, as appropriate.
	 
	7	 	List each Assignee, as appropriate.
	 
	8	 	Subject to minimum amount requirements
pursuant to Section 10.06(b)(i) of the Credit Agreement and subject to
proportionate amount requirements pursuant to Section 10.06(b)(ii) of
the Credit Agreement.
	 
	9	 	Set forth, to at least 9 decimals, as a
percentage of the Canadian Commitment/Canadian Loans of all
Canadian Lenders thereunder.
	 
	10	 	To be completed if the Assignor and the
Assignee intend that the minimum assignment amount is to be determined as of
the Trade Date.

 

 

Acknowledged, consented to:11

	 	 	 	 	 
	BANK OF AMERICA, N.A., as

  Administrative Agent

 	 
	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	11	 	To the extent required under Section
10.06(b)(i)(B) or Section 10.06(b)(iii)(B) of the Credit Agreement.

 

 

Acknowledged and consented to:12

	 	 	 	 	 
	BANK OF AMERICA, N.A., as Swing Line Lender

 	 
	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	12	 	To the extent required under Section
10.06(b)(iii)(D) of the Credit Agreement.

 

 

Acknowledged and consented to:13

	 	 	 	 	 
	BANK OF AMERICA, N.A., as L/C Issuer

 	 
	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	13	 	To the extent required under Section
10.06(b)(iii)(C) of the Credit Agreement.

 

 

Acknowledged and consented to:14

	 	 	 	 	 
	QUIKSILVER AMERICAS, INC., as

the Lead Borrower

 	 
	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	14	 	To the extent required under Section
10.06(b)(i)(B) or Section 10.06(b)(iii)(A) of the Credit Agreement.

 

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

Reference is made to a certain Credit Agreement dated as of July 31, 2009 (as amended, amended and
restated, modified, supplemented or restated and in effect from time to time, the “Credit
Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead Borrower, (ii)
Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other Borrowers from time to time
party thereto, (iv) the Guarantors from time to time party thereto, (v) the Lenders from time to
time party thereto, (vi) Bank of America, N.A., as Administrative Agent, Co-Collateral Agent, Swing
Line Lender, L/C Issuer, and Syndication Agent, (vii) General Electric Capital Corporation, as
Co-Collateral Agent, and (viii) Bank of America, N.A. (acting through its Canada branch), as
Canadian Agent.

STANDARD
TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

     1. Representations and Warranties.

     1.1. Assignor. [The][Each] Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made in or in
connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral
thereunder, (iii) the financial condition of the Loan Parties or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Loan Parties or any other
Person of any of their respective obligations under any Loan Document.

     1.2. Assignee. [The][Each] Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Canadian Lender
under the Credit Agreement, (ii) it meets all the requirements to be an Eligible Assignee under the
Credit Agreement (subject to such consents, if any, as may be required under Section
10.06(b) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound
by the provisions of the Credit Agreement as a Canadian Lender thereunder and, to the extent of
[the][the relevant] Assigned Interest, shall have the obligations of a Canadian Lender thereunder,
(iv) it is sophisticated with respect to decisions to acquire assets of the type represented by
[the][such] Assigned Interest and either it, or the Person exercising discretion in making its
decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such type,
(v) it has received a copy of the Credit Agreement, and has received or has been accorded the
opportunity to receive copies of the most recent financial statements delivered pursuant to
Section 6.01 thereof, as applicable, and such other documents and information as it deems
appropriate to make its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase [the][such] Assigned Interest, (vi) it has, independently and without
reliance upon the Administrative Agent, Canadian Agent, any other Agent, or any other Lender and
based on such documents and information as it has deemed appropriate, made its own credit analysis
and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned
Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by
[the][such] Assignee; and (b) agrees that (i) it will, independently and without reliance upon the
Administrative Agent, Canadian Agent, any other Agent, [the][any] Assignor or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action

 

 

under the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a
Canadian Lender.

     2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of [the][each] Assigned Interest (including payments of principal,
interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to
but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued
from and after the Effective Date.

     3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy other electronic image scan transmission (e.g., “pdf” or
“tif” via email) shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of New York.

     4. Fees. Unless waived by the Administrative Agent in accordance with Section
10.06(b)(iv) of the Credit Agreement, this Assignment and Assumption shall be delivered to the
Administrative Agent with a processing and recordation fee of $3,500.00.

     5. Delivery. If [the][any] Assignee is not a Lender, such Assignee shall deliver to
the Administrative Agent an Administrative Questionnaire.

 

 

Exhibit F-1

Form of Joinder Agreement – Domestic Loan Parties

JOINDER AGREEMENT

     This JOINDER AGREEMENT (this “Joinder”) is made as of                                         , by and among:

                                                                 , a    
                                                          (the “New
[Borrower/Guarantor]”), with its principal executive offices at
                                                            ; and

     BANK OF AMERICA, N.A., a national banking association with offices at 100 Federal
Street, 9th Floor, Boston, Massachusetts 02110, as administrative agent (in such capacity,
the “Administrative Agent”) for its own benefit and the benefit of the other
Lenders;

     in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

W I T N E S S E T H :

     A. Reference is made to that certain Credit Agreement dated as of July 31, 2009 (as amended,
amended and restated, modified, supplemented or restated and in effect from time to time, the
“Credit Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead
Borrower, (ii) Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other Borrowers from
time to time party thereto, including, without limitation, the Domestic Borrowers party thereto
(collectively, the “Existing Domestic Borrowers”) (iv) the Guarantors from time to time
party thereto, (v) the Lenders from time to time party thereto, (vi) Bank of America, N.A., as
Administrative Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and Syndication Agent,
(vii) General Electric Capital Corporation, as Co-Collateral Agent, and (viii) Bank of America,
N.A. (acting through its Canada branch), as Canadian Agent. Capitalized terms used but not defined
herein shall have the meanings set forth in the Credit Agreement.

     B. Reference is also made to that certain Facility Guaranty, dated as of July 31, 2009,
executed by that certain Guarantor that is a Domestic Loan Party and party thereto (the
“Existing Domestic Guarantor”) in favor of the Administrative Agent and the other Credit
Parties.

1

 

     C. The New [Borrower/Guarantor] desires to become a party to, and be bound by the terms of,
the Credit Agreement in the same capacity and to the same extent as the Existing Domestic
[Borrowers/Guarantor] thereunder.

     D. Pursuant to the terms of the Credit Agreement, in order for the New [Borrower/Guarantor] to
become party to the Credit Agreement as provided herein, the New [Borrower/Guarantor] and the
Existing Domestic Borrowers and Existing Domestic Guarantor are required to execute this Joinder.

     NOW, THEREFORE, in consideration of the premises contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

	1.	 	Joinder and Assumption of Obligations. Effective as of the date of this Joinder, the
New [Borrower/Guarantor] hereby acknowledges that the New [Borrower/Guarantor] has received
and reviewed a copy of the Credit Agreement, and hereby:

	 	(a)	 	joins in the execution of, and becomes a party to, the Credit Agreement as a
[Domestic Borrower/Guarantor] thereunder, as indicated with its signature below;
	 
	 	(b)	 	covenants and agrees to be bound by all covenants, agreements, liabilities and
acknowledgments of a [Domestic Borrower/Guarantor] under the Credit Agreement as of the
date hereof (other than covenants, agreements, liabilities and acknowledgments that
relate solely to an earlier date), in each case, with the same force and effect as if
such New [Borrower/Guarantor] was a signatory to the Credit Agreement and was expressly
named as a [Domestic Borrower/Guarantor] therein;
	 
	 	(c)	 	makes all representations, warranties, and other statements of a [Domestic
Borrower/Guarantor] under the Credit Agreement as of the date hereof (other than
representations, warranties and other statements that relate solely to an earlier
date), in each case, with the same force and effect as if such New [Borrower/Guarantor]
was a signatory to the Credit Agreement and was expressly named as a [Domestic
Borrower/Guarantor] therein; and
	 
	 	(d)	 	assumes and agrees to perform all applicable duties and obligations of the
Existing Domestic [Borrowers/Guarantor] under the Credit Agreement.

	2.	 	Supplemental Schedules. To the extent that any representations, warranties, and
covenants of the New [Borrower/Guarantor] require any amendments to the schedules to the
Credit Agreement or any of the other Loan Documents, such schedules are hereby updated, as
evidenced by any supplemental schedules (if any) annexed to this Joinder.

2

 

	3.	 	Ratification of Loan Documents. Except as specifically amended by this Joinder and
the other documents executed and delivered in connection herewith, all of the terms and
conditions of the Credit Agreement and of the other Loan Documents shall remain in full force
and effect as in effect prior to the date hereof, without releasing any Loan Party
thereunder or Collateral therefor.
	 
	4.	 	Conditions Precedent to Effectiveness. This Joinder shall not be effective until
each of the following conditions precedent has been fulfilled to the reasonable satisfaction
of the Agents:

	 	(a)	 	This Joinder shall have been duly executed and delivered by the respective
parties hereto.
	 
	 	(b)	 	The New [Borrower/Guarantor] shall have delivered the following to the
Administrative Agent, in form and substance reasonably satisfactory to the Agents:

	 	(i)	 	Copies of the New [Borrower’s/Guarantor’s]
Organization Documents.
	 
	 	(ii)	 	Certificates of resolutions or other action, incumbency
certificates and/or other certificates of Responsible Officers of the New
[Borrower/Guarantor] evidencing (A) the authority of the New
[Borrower/Guarantor] to enter into this Joinder and the other Loan Documents to
which New [Borrower/Guarantor] is a party and (B) the identity, authority and
capacity of each Responsible Officer thereof authorized to act as a Responsible
Officer in connection with this Joinder and the other Loan Documents to which
New [Borrower/Guarantor] is a party.
	 
	 	(iii)	 	Certificate of good standing (where applicable, or such other
customary functionally equivalent certificates, to the extent available in the
applicable jurisdiction) from the New [Borrower/Guarantor]’s jurisdiction of
organization.
	 
	 	(iv)	 	Certificates of good standing (where applicable or such other
customary functionally equivalent certificates, to the extent available in the
applicable jurisdiction) from each jurisdiction where the New
[Borrower’s/Guarantor’s] ownership, lease or operation of properties or the
conduct of its business requires such qualification, except to the extent that
failure to so qualify in such jurisdiction could not be reasonably expected to
have a Material Adverse Effect.
	 
	 	(v)	 	Execution and delivery by the New [Borrower/Guarantor] of the
following Loan Documents:

3

 

	 	a)	 	[In the case of a New Borrower, Joinders to the
Domestic Note and the Domestic Swing Line Note, as applicable];
	 
	 	b)	 	[Joinder Agreement to the Security Agreement];
	 
	 	c)	 	[If the New [Borrower/Guarantor] maintains
Blocked Account(s), Blocked Account Agreement(s) with _________];
	 
	 	d)	 	[In the case of a New Guarantor, a Facility
Guaranty]; and
	 
	 	e)	 	To the extent required by the Loan Documents,
such other documents and agreements as any of the Agents may reasonably
require.

	 	(c)	 	Upon the request of Administrative Agent, the Administrative Agent shall have
received a customary written legal opinion of the New [Borrower/Guarantor]’s counsel,
addressed to the Administrative Agent and each Domestic Lender, covering such matters
relating to the New [Borrower/Guarantor], the Loan Documents and/or the transactions
contemplated thereby as the Administrative Agent may reasonably request.
	 
	 	(d)	 	To the extent required by the Loan Documents, the Administrative Agent shall
have received all documents and instruments, including UCC financing statements and
Blocked Account Agreements, required by applicable Laws or reasonably requested by any
Agent to create or perfect the Liens intended to be created under any Security Document
and all such documents and instruments shall have been so filed, registered or recorded
to the satisfaction of the Agents.
	 
	 	(e)	 	The New [Borrower/Guarantor] shall have paid in full all reasonable fees and
documented out-of-pocket expenses incurred by the Agents (including, without
limitation, the reasonable and documented fees and expenses of counsel to the Agents)
in connection with the preparation, negotiation, execution and delivery of this Joinder
and related documents.

	5.	 	Miscellaneous.

	 	(a)	 	This Joinder may be executed in several counterparts and by each party on a
separate counterpart, each of which when so executed and delivered shall be an
original, and all of which together shall constitute one instrument.
	 
	 	(b)	 	This Joinder and the other Loan Documents and instruments referred to herein
express the entire understanding of the parties with respect to the transactions
contemplated hereby. No prior negotiations or discussions shall limit, modify, or
otherwise affect the provisions hereof.

4

 

	 	(c)	 	Any determination that any provision of this Joinder or any application hereof
is invalid, illegal or unenforceable in any respect and in any instance shall not
affect the validity, legality, or enforceability of such provision in any other
instance, or the validity, legality or enforceability of any other provisions of this
Joinder.
	 
	 	(d)	 	The New [Borrower/Guarantor] warrants and represents that the New
[Borrower/Guarantor] is not relying on any representations or warranties of any Agent
or the other Credit Parties or their counsel in entering into this Joinder.
	 
	 	(e)	 	THIS JOINDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK.

[SIGNATURE PAGES FOLLOW]

5

 

     IN WITNESS WHEREOF, each of the undersigned has caused this Joinder to be duly executed and
delivered by its proper and duly authorized officer as of the date set forth below.

	 	 	 	 	 
	 	NEW [BORROWER/GUARANTOR]:

[                                                                                      ]

	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Joinder Agreement

 

 

	 	 	 	 	 

	Acknowledged and Agreed:
	 
	 	 	 	 
	EXISTING DOMESTIC BORROWERS:
	 
	 	 	 	 
	QUIKSILVER AMERICAS, INC., a California corporation
	 
	 	 	 	 
	By: 
	 	 	 
	 	Name: 

	 
	 	 
	 	Title:

	 
	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	DC SHOES, INC., a California corporation
	 
	 	 	 	 
	By: 
	 	 	 
	 	Name: 

	 	 	 
	 	Title:

	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	HAWK DESIGNS, INC., a California corporation
	 
	 	 	 	 
	By: 
	 	 	 
	 	Name: 

	 	 	 
	 	Title:

	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	MERVIN MANUFACTURING, INC., a California corporation
	 
	 	 	 	 
	By: 
	 	 	 
	 	Name: 

	 	 	 
	 	Title:

	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	QS WHOLESALE, INC., a California corporation
	 
	 	 	 	 
	By: 
	 	 	 
	 	Name: 

	 	 	 
	 	Title:

	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	QS RETAIL, INC., a California corporation
	 
	 	 	 	 
	By: 
	 	 	 
	 	Name: 

	 	 	 
	 	Title:

	 	 	 
	 

	 	 

	 	 

Signature Page to Joinder Agreement

 

 

	 	 	 	 	 

	EXISTING DOMESTIC GUARANTOR:
	 
	 	 	 	 
	QUIKSILVER, INC., a Delaware corporation
	 
	By:
	 	 	 
	 	Name:

	 	 	 
	 	Title:

	 	 	 
	 

	 	 

	 	 

Signature Page to Joinder Agreement

 

 

Supplemental Schedules to Loan Documents

[see attached]

Joinder Agreement

 

 

Exhibit F-2

Form of Joinder Agreement — Canadian Loan Parties

JOINDER AGREEMENT

     This JOINDER AGREEMENT (this “Joinder”) is made as of                                         , by and among:

                                                                 , a    
                                                          (the “New
[Borrower/Guarantor]”), with its principal executive offices at
                                                            ; and

     BANK OF AMERICA, N.A. (acting through its Canada branch), a national banking
association with offices at 200 Front Street West, Toronto, Ontario, Canada, as Canadian
agent (in such capacity, the “Canadian Agent”) for its own benefit and the benefit
of the other Canadian Lenders;

     in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

W I T N E S S E T H :

     A. Reference is made to that certain Credit Agreement dated as of July 31, 2009 (as amended,
amended and restated, modified, supplemented or restated and in effect from time to time, the
“Credit Agreement”) by and among, inter alia (i) Quiksilver Americas, Inc., as the Lead
Borrower, (ii) Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other Borrowers from
time to time party thereto, including, without limitation, the Canadian Borrowers party thereto
(collectively, the “Existing Canadian Borrowers”) (iv) the Guarantors from time to time
party thereto, (v) the Lenders from time to time party thereto, (vi) Bank of America, N.A., as
Administrative Agent, Co-Collateral Agent, Swing Line Lender, L/C Issuer, and Syndication Agent,
(vii) General Electric Capital Corporation, as Co-Collateral Agent, and (viii) the Canadian Agent.
Capitalized terms used but not defined herein shall have the meanings set forth in the Credit
Agreement.

     B. Reference is also made to that certain Facility Guaranty, dated as of July 31, 2009,
executed by that certain Guarantor that is a Canadian Loan Party and party thereto (the
“Existing Canadian Guarantor”) in favor of the Canadian Agent and the other Canadian Credit
Parties pursuant to which the Existing Canadian Guarantor thereunder guarantees the payment and
performance of the Canadian Liabilities.

1

 

     C. The New [Borrower/Guarantor] desires to become a party to, and be bound by the terms of,
the Credit Agreement in the same capacity and to the same extent as the Existing Canadian
[Borrowers/Guarantor] thereunder.

     D. Pursuant to the terms of the Credit Agreement, in order for the New [Borrower/Guarantor] to
become party to the Credit Agreement as provided herein, the New [Borrower/Guarantor] and the
Existing Canadian Borrowers and Existing Canadian Guarantor are required to execute this Joinder.

     NOW, THEREFORE, in consideration of the premises contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

	1.	 	Joinder and Assumption of Obligations. Effective as of the date of this Joinder, the
New [Borrower/Guarantor] hereby acknowledges that the New [Borrower/Guarantor] has received
and reviewed a copy of the Credit Agreement, and hereby:

	 	(a)	 	joins in the execution of, and becomes a party to, the Credit Agreement as a
[Canadian Borrower/Guarantor] thereunder, as indicated with its signature below;
	 
	 	(b)	 	covenants and agrees to be bound by all covenants, agreements, liabilities and
acknowledgments of a [Canadian Borrower/Guarantor] under the Credit Agreement as of the
date hereof (other than covenants, agreements, liabilities and acknowledgments that
relate solely to an earlier date), in each case, with the same force and effect as if
such New [Borrower/Guarantor] was a signatory to the Credit Agreement and was expressly
named as a [Canadian Borrower/Guarantor] therein;
	 
	 	(c)	 	makes all representations, warranties, and other statements of a [Canadian
Borrower/Guarantor] under the Credit Agreement as of the date hereof (other than
representations, warranties and other statements that relate solely to an earlier
date), in each case, with the same force and effect as if such New [Borrower/Guarantor]
was a signatory to the Credit Agreement and was expressly named as a [Canadian
Borrower/Guarantor] therein; and
	 
	 	(d)	 	assumes and agrees to perform all applicable duties and obligations of the
Existing Canadian [Borrowers/Guarantor] or under the Credit Agreement.

	2.	 	Supplemental Schedules. To the extent that any representations, warranties, and
covenants of the New [Borrower/Guarantor] require any amendments to the schedules to the
Credit Agreement or any of the other Loan Documents, such schedules are hereby updated, as
evidenced by any supplemental schedules (if any) annexed to this Joinder.

2

 

	3.	 	Ratification of Loan Documents. Except as specifically amended by this Joinder and
the other documents executed and delivered in connection herewith, all of the terms and
conditions of the Credit Agreement and of the other Loan Documents shall remain in full force
and effect as in effect prior to the date hereof, without releasing any Loan Party
thereunder or Collateral therefor.
	 
	4.	 	Conditions Precedent to Effectiveness. This Joinder shall not be effective until
each of the following conditions precedent has been fulfilled to the reasonable satisfaction
of the Canadian Agent and the Agents:

	 	(a)	 	This Joinder shall have been duly executed and delivered by the respective
parties hereto.
	 
	 	(b)	 	The New [Borrower/Guarantor] shall have delivered the following to the Canadian
Agent, in form and substance reasonably satisfactory to the Canadian Agent and the
Agents:

	 	(i)	 	Copies of the New [Borrower’s/Guarantor’s]
Organization Documents.
	 
	 	(ii)	 	Certificates of resolutions or other action, incumbency
certificates and/or other certificates of Responsible Officers of the New
[Borrower/Guarantor] evidencing (A) the authority of the New
[Borrower/Guarantor] to enter into this Joinder and the other Loan Documents to
which New [Borrower/Guarantor] is a party and (B) the identity, authority and
capacity of each Responsible Officer thereof authorized to act as a Responsible
Officer in connection with this Joinder and the other Loan Documents to which
New [Borrower/Guarantor] is a party.
	 
	 	(iii)	 	Certificate of good standing (where applicable, or such other
customary functionally equivalent certificates, to the extent available in the
applicable jurisdiction) from the New [Borrower/Guarantor]’s jurisdiction of
organization.
	 
	 	(iv)	 	Certificates of good standing (where applicable or such other
customary functionally equivalent certificates, to the extent available in the
applicable jurisdiction) from each jurisdiction where the New
[Borrower’s/Guarantor’s] ownership, lease or operation of properties or the
conduct of its business requires such qualification, except to the extent that
failure to so qualify in such jurisdiction could not be reasonably expected to
have a Material Adverse Effect.
	 
	 	(v)	 	A Perfection Certificate.

3

 

	 	(vi)	 	Execution and delivery by the New [Borrower/Guarantor] of the
following Loan Documents:

	 	a)	 	[In the case of a New Borrower, Joinders to the
Canadian Note and the Canadian Swing Line Note, as applicable];
	 
	 	b)	 	[A General Security Agreement, Deed of Hypothec
(if applicable) and each of the other Canadian Security Documents];
	 
	 	c)	 	[If the New [Borrower/Guarantor] maintains
Blocked Account(s), Blocked Account Agreement(s) with                                         ];
	 
	 	d)	 	[In the case of a New Guarantor, a Facility
Guaranty]; and
	 
	 	e)	 	To the extent required by the Loan Documents,
such other documents and agreements as the Canadian Agent or any of the
Agents may reasonably require.

	 	(c)	 	Upon the request of the Canadian Agent, the Canadian Agent shall have received
a customary written legal opinion of the New [Borrower/Guarantor]’s Canadian counsel,
addressed to the Canadian Agent and each Canadian Lender, covering such matters
relating to the New [Borrower/Guarantor], the Loan Documents and/or the transactions
contemplated thereby as the Canadian Agent may reasonably request.
	 
	 	(d)	 	To the extent required by the Loan Documents, the Canadian Agent shall have
received all documents and instruments, including PPSA financing statements and other
like filings and Blocked Account Agreements, required by applicable Laws or reasonably
requested by the Canadian Agent or any Agent to create or perfect the Liens intended to
be created under any Canadian Security Document and all such documents and instruments
shall have been so filed, registered or recorded to the satisfaction of the Canadian
Agent and the Agents.
	 
	 	(e)	 	The New [Borrower/Guarantor] shall have paid in full all reasonable fees and
documented out-of-pocket expenses incurred by the Canadian Agent and the Agents
(including, without limitation, the reasonable and documented fees and expenses of
counsel to the Canadian Agent and the Agents) in connection with the preparation,
negotiation, execution and delivery of this Joinder and related documents.

	5.	 	Miscellaneous.

4

 

	 	(a)	 	This Joinder may be executed in several counterparts and by each party on a
separate counterpart, each of which when so executed and delivered shall be an
original, and all of which together shall constitute one instrument.
	 
	 	(b)	 	This Joinder and the other Loan Documents and instruments referred to herein
express the entire understanding of the parties with respect to the transactions
contemplated hereby. No prior negotiations or discussions shall limit, modify, or
otherwise affect the provisions hereof.
	 
	 	(c)	 	Any determination that any provision of this Joinder or any application hereof
is invalid, illegal or unenforceable in any respect and in any instance shall not
affect the validity, legality, or enforceability of such provision in any other
instance, or the validity, legality or enforceability of any other provisions of this
Joinder.
	 
	 	(d)	 	The New [Borrower/Guarantor] warrants and represents that the New
[Borrower/Guarantor] is not relying on any representations or warranties of any Agent
or the other Credit Parties or their counsel in entering into this Joinder.
	 
	 	(e)	 	THIS JOINDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK.

[SIGNATURE PAGES FOLLOW]

5

 

     IN WITNESS WHEREOF, each of the undersigned has caused this Joinder to be duly executed and
delivered by its proper and duly authorized officer as of the date set forth below.

	 	 	 	 	 
	 	NEW [BORROWER/GUARANTOR]:

[                                                                       
         ]

 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CANADIAN AGENT:

BANK OF AMERICA, N.A. (acting through its Canada branch)

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Joinder Agreement

 

 

Acknowledged and Agreed:

EXISTING CANADIAN BORROWER:

	 	 	 	 	 
	QUIKSILVER CANADA CORP., a Nova Scotia unlimited liability company

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature Page to Joinder Agreement

 

 

EXISTING CANADIAN GUARANTOR:

QS CANADA RETAIL CORP., a Nova Scotia 

unlimited liability company

	 	 	 	 	 
	 	 
	By:  	
 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature Page to Joinder Agreement

 

 

Supplemental Schedules to Loan Documents

[see attached]

Joinder Agreement

 

 

Exhibit G

Borrowing Base Certificate(s)

	 	 	 	 	 

	Quiksilver Americas, Inc.

	 	Certificate No.	 	 
	 

	 	 	 	 
	U.S. Borrowing Base Certificate

	 	Certificate Date	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	A/R as of:	 	Quiksilver	 	 	DC Shoes	 	 	QS Retail	 	 	 	 	 	 	Total US	 	 	 	 
	lnventory as of:	 	US	 	 	US	 	 	US	 	 	Mervin	 	 	Company	 	 	 	 	 
	Trade accounts receivable per aging
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Less ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts > 60 days past due date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Accounts > 90 days past invoice date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Addback: extended terms 90-120 days past invoice
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Credit balances > 60 days past due date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Credit balances > 90 days past invoice date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Cross-age (50%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Foreign accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Government accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Intercompany accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Employee accounts/Promo
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Accounts due from bankrupt customers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Chargebacks
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Finance charges / interest charges
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Unapplied cash
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Contra accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Credit memo lag reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Excess concentration (15%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Total ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Eligible trade accounts receivable
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	Advance rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Trade Accounts Receivable Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Third party credit card receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Less ineligibles
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amounts outstanding > 5 business days.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	DC Shoes credit card receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Total ineligibles
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Eligible credit card receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Advance Rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Credit Card Receivable Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Finished goods inventory per perpetual at cost
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Raw materials
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Less ineligibles
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Irregulars / seconds (season “W”)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Off-price styles (season “O”)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Displays / brochures (product code “PP” / POP warehouse)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Drop ship — QDS warehouse
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Virtual warehouse inventory (Hawaii and other)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Inventory in foreign location (Hong Kong warehouse)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Raw materials — fabric & trim
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Raw materials — specialty (season “Y”)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Raw materials — Mervin
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Work in process inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Goods at outside processors (including blank t-shirts)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	In-transit between stores & from warehouse to stores
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Supplies and packaging
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Samples
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 
	Unreconciled variance (if perpetual is greater than G/L)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	Retail Sales Since
Last Physical Adj.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Shrink
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Test count variance reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Total ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Eligible inventory
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	Appraised NOLV
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Advance Rate (85% x NOLV)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	lnventory Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Eligible import in-transit inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Eligible import LIC inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Appraised NOLV
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Advance Rate (85% x NOLV)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	In-transit and L/C Inventory Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Total Available Collateral Before Reserves
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	Less availability reserves:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dilution reserve
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	Gift certificates and merchandise credits (50%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Customer deposits (100%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Rent reserve (2 months rent in PA, VA and WA)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Self funded insurance (avg monthly claims paid)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Accrued royalties
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	In-transit short shipment reserve (5%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	Landing costs (26% of eligible imports in-transit)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Total availability reserves 
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	 	 	 	 	 
	Total Domestic Borrowing Base (capped at $185MM)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 
	 	 	 	 	 

 

 

Quiksilver Americas, Inc.

U.S. Borrowing Base Certificate

	 	 	 	 	 
	Availability Calculation	 	As of:	 
	Total Domestic Borrowing Base
	 	 	—	 
	 
	 	 	 	 
	Beginning Principal Balance
	 	 	—	 
	 
	 	 	 	 
	Add: Prior Day Advance
	 	 	 	 
	Add: Fees Charged Today
	 	 	 	 
	Less: Prior Day Pay Down
	 	 	 	 
	 
	 	 	 	 
	Ending Principal Balance
	 	 	—	 
	 
	 	 	 	 
	Add: Standby Letters of Credit
	 	 	 	 
	Add: Documentary Letter of Credit
	 	 	 	 
	 
	 	 	 	 
	Total Obligations Prior to Today’s Advance Request
	 	 	—	 
	 
	 	 	 	 
	Total Availability Prior to Advance Request
	 	 	 	 
	 
	 	 	 	 
	Pay Down Amount
	 	 	 	 
	Advance Request
	 	 	 	 
	 
	 	 	 	 
	 
	Excess Availability
	 	 	—	 
	 

The undersigned represents and warrants that (a) the information set forth above is true,
complete and accurate, and has been prepared in accordance with the requirements of the Credit
Agreement between the Borrower and Bank of America, N.A.; (b) no “Default” (as defined in the Credit
Agreement) is presently in existence; and (c) all or a portion of the advance requested hereby will
be set aside by the Borrower to cover 100% of the Borrower’s obligation for sales tax on account of
sales since the most recent borrowing under the Loan Agreement.

	 	 	 	 
	Authorized Signer:
	 	 	
	 

	 	 	
	Name:
	 	 	
	 

	 	 	
	Title:
	 	 	
	 

	 	 	
	Lead Borrower:
	 	 	
	 

	 	 	

 

 

	 	 	 	 	 

	Quiksilver Americas, Inc.

	 	Exchange Rate as of Certificate Date                     
	 	Certificate No.                     
	Canadian Borrowing Base Certificate

	 	 	 	Certificate Date                     

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	A/R as of: 6/30/09	 	Quiksilver	 	 	DC Shoes	 	 	QS Retail	 	 	Total Canadian	 	 	US Dollar	 	 	 	 	 
	Inventory as of: 6/30/09	 	Canada (CAD)	 	 	Canada (CAD)	 	 	Canada (CAD)	 	 	Company (CAD)	 	 	Equivalent	 	 	 	 	 
	Trade accounts receivable per aging
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Less ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts > 60 days past due date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Accounts > 90 days past invoice date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Addback: extended terms 90-120 days past invoice
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Credit balances > 60 days past due date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Credit balances > 90 days past invoice date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cross-age (50%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Foreign accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Government accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Intercompany accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Employee accounts/Promo
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts due from bankrupt customers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Chargebacks
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Finance
charges / interest charges
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Unapplied cash
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contra accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Excess concentration (15%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Eligible trade accounts receivable
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	Advance rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Trade Accounts Receivable Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Third party credit card receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Less ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amounts outstanding >5 days
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	DC Shoes credit card receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Eligible credit card receivables
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	Advance Rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Credit Card Receivable Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Finished goods inventory per perpetual at cost
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Raw materials
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Less ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Irregulars / seconds (season “W”)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Off-price
styles (season “O”)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Displays/brochures (product code “PP” / POP warehouse)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Drop ship — QDS warehouse
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Virtual warehouse inventory (Hawaii and other)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Inventory in foreign location (Hong Kong warehouse)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Raw materials — fabric & trim
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Raw materials — specialty (season“Y”)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Raw materials — Mervin
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Work in process inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Goods at
outside processors (including blank t-shirts)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	In-transit between stores & from warehouse to stores
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Supplies and packaging
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Samples
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 
	Unreconciled variance (if perpetual is greater than G/L)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	Retail Sales Since
Last Physical Adj.
	Shrink
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Test count variance reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Eligible inventory
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	Appraised NOLV
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Advance Rate (85% x NOLV)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Inventory Availability
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Eligible
import in-transit inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Eligible import L/C inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Appraised NOLV
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Advance Rate (85% x NOLV)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	In-Transit and L/C Inventory Availability
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total Available Collateral Before Reserves
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	Less availability reserves:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dilution reserve
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	Gift certificates and merchandise credits (50%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Customer deposits (100%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	GST tax reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	PST/QST tax reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Payroll-related taxes and income taxes — Canada
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	In-transit short shipment reserve (5%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Landing costs (26% of eligible imports in-transit)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total availability reserves
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total Canadian Borrowing Base
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total Canadian Line Limit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	15,000,000	 	 	 	 	 
	 	 	 	 	 
	Amount
Available to Borrow — Lesser of Borrowing Base and Line Limit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 

 

 

	 	 	 	 	 

	Quiksilver Americas, Inc.

	 	Exchange Rate as of Certificate Date                     
	 	Certificate No.                     
	Canadian Borrowing Base Certificate

	 	 	 	Certificate Date                     

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	A/R as of: 6/30/09	 	Quiksilver	 	 	DC Shoes	 	 	QS Retail	 	 	Total Canadian	 	 	US Dollar	 	 	 	 	 
	Inventory as of: 6/30/09	 	Canada (CAD)	 	 	Canada (CAD)	 	 	Canada (CAD)	 	 	Company (CAD)	 	 	Equivalent	 	 	 	 	 
	Trade accounts receivable per aging
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Less Ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts > 60 days past due date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Accounts > 90 days past invoice date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Addback: extended terms 90-120 days past invoice
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Credit balances > 60 days past due date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Credit balances > 90 days past invoice date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cross-age (50%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Foreign accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Government accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Intercompany accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Employee accounts/Promo
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts due from bankrupt customers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Chargebacks
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Finance charges / interest charges
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Unapplied cash
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contra accounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Excess concentration (15%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Eligible trade accounts receivable
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	Advance rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Trade Accounts Receivable Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Third party credit card receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Less ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amounts outstanding > 5 days
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	DC Shoes credit card receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Eligible credit card receivables
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	Advance Rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Credit Card Receivable Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Finished goods inventory per perpetual at cost
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Raw materials
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Less ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Irregulars / seconds (season “W”)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Off-price
styles (season “O”)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Displays / brochures (product code “ PP” / POP warehouse)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Drop ship — QDS warehouse
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Virtual warehouse inventory (Hawaii and other)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Inventory in foreign location (Hong Kong
warehouse)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Raw materials — fabric & trim
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Raw materials — specialty (season “Y”)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Raw materials — Mervin
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Work in process inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Goods at outside processors (including
blank t-shirts)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	In-transit between stores & from warehouse to
stores
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Supplies and packaging
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Samples
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 
	Unreconciled variance (if perpetual is greater than G/L)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	Retail Sales Since
Last Physical Adj.
	Shrink
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Test count variance reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Eligible inventory
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	Appraised NOLV
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Advance Rate (85% x NOLV)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Inventory Availability
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Eligible import in-transit inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Eligible import L/C inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Appraised NOLV
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Advance Rate (85% x NOLV)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	In-Transit and L/C Inventory Availability
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total Available Collateral Before Reserves
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 
	Less availablity reserves:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dilution reserve
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	Gift certificates and merchandise credits (50%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Customer deposits (100%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	GST tax reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	PST/QST tax reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Payroll-related taxes and income taxes — Canada
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	In-transit short shipment reserve (5%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	Landing costs (26% of eligible imports in-transit)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total availability reserves
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total Canadian Borrowing Base
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Total Canadian Line Limit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	15,000,000	 	 	 	 	 
	 	 	 	 	 
	Amount Available to Borrow-Lesser of Borrowing Base and Line Limit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	 	 	 	 	 

 

 

	 	 	 

	Quiksilver Americas, Inc.
	 	 
	Canadian Borrowing Base Certificate

	 	Exchange Rate as of Certificate
Date                                         

	 	 	 	 	 	 	 	 	 
	 	 	As of:	 
	Availability Calculation	 	CAD	 	 	USD	 
	Total Canadian Borrowing Base
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Beginning Principal Balance
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Add: Prior Day Advance
	 	 	 	 	 	 	 	 
	Add: Fees Charged Today
	 	 	 	 	 	 	 	 
	Less: Prior Day Pay Down
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Ending Principal Balance
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Add: Standby Letters of Credit
	 	 	 	 	 	 	 	 
	Add: Documentary Letter of Credit
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total Obligations Prior to Today’s Advance Request
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total
Availability Prior to Advance Request
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Pay Down Amount
	 	 	 	 	 	 	 	 
	Advance Request
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	Excess Availability
	 	 	—	 	 	 	 	 
	 

The undersigned represents and warrants that (a) the information set forth above is true, complete and accurate, and has been prepared in
accordance with the requirements of the Credit Agreement between the Borrower and Bank of America, N.A.; (b) no “Default” (as defined in the
Credit Agreement) is presently in existence; and (c) all or a portion of the advance requested hereby will be set aside by the Borrower to
cover 100% of the Borrower’s obligation for sales tax on account of sales since the most recent borrowing under the Loan Agreement

	 	 	 	 
				
	Authorized Signer:
	 	 	
	 

	 	 	
	Name:
	 	 	
	 

	 	 	
	Title:
	 	 	
	 

	 	 	
	Lead Borrower:
	 	 	
	 

	 	 	

 

 

Exhibit H

FORM OF CREDIT CARD PROCESSOR NOTIFICATION

CREDIT CARD PROCESSOR NOTIFICATION

PREPARE ON BORROWER/LOAN PARTY LETTERHEAD — ONE FOR EACH PROCESSOR

July __, 2009

	To: 	 	[First Data Corporation]

[6200 South Quebec St.

Greenwood Village, CO 80111]

(the “Processor”)1

	 	Re:	 	[QS Retail, Inc.]

Merchant Account Number:                                                             

Dear Sir/Madam:

     [QS RETAIL, INC., a California corporation] (the “Borrower”),2 has entered
into various financing agreements with BANK OF AMERICA, N.A., a national banking association with
offices at 100 Federal Street, 9th Floor, Boston, Massachusetts 02110, as administrative agent (in
such capacity, the “Administrative Agent”) for its own benefit and the benefit of certain
other credit parties (the “Credit Parties”), pursuant to which the Administrative Agent and
the other Credit Parties may from time to time make loans or furnish certain other financial
accommodations to the Borrower. The Borrower’s obligations on account of such loans and financial
accommodations are secured by, among other things, all credit card charges submitted by the
Borrower to the Processor for processing and the amounts which the Processor owes to the Borrower
on account thereof (the “Credit Card Proceeds”).

     The Processor is hereby instructed that (a) unless and until the Processor receives written
notification from the Administrative Agent directing the Processor not to act on the Borrower’s
instructions (a “Notice of Control”), and (b) so long as no Control Period (defined below) is in
effect all amounts as may become due from time to time from the Processor to the Borrower may be
transferred in accordance with the Borrower’s instructions.

     As used herein, the term “Control Period” shall mean such period of time beginning with the
day that the Processor shall receive a Notice of Control from the Administrative Agent and ending
upon the day the Processor shall receive a notice (a “Control Cancellation Notice”) from the
Administrative Agent that the previously issued Notice of Control is no longer in effect.

 

			
	1	 	The identity of the Processor should be
changed to the appropriate Processor as necessary.
	 
	2	 	The identity of the Borrower should be
changed to the appropriate Borrower as necessary.

1

 

     From and after receipt of a Notice of Control, and for the duration of the related Control
Period, all amounts as may become due from time to time from the Processor to the Borrower
(including, without limitation, Credit Card Proceeds, payments from any reserve account or the
like, or other payments) shall be transferred only as follows:

	 	(a)	 	By ACH, Depository Transfer Check, or Electronic Depository Transfer to:

Bank of America, N.A.

ABA #[                                        ]

Account Name: [                    ]

Account No.                                         

or

	 	(b)	 	As the Processor may be otherwise instructed from time to time in writing by an
officer of the Administrative Agent.

     Upon the written request of the Administrative Agent, a copy of each periodic statement issued
by the Processor to the Borrower should be provided to the Administrative Agent at the following
address (which address may be changed upon seven (7) days written notice given to the Processor by
the Administrative Agent):

Bank of America, N.A.

100 Federal Street, 9th Floor

Boston, Massachusetts 02110

Attention: Stephen J. Garvin, Managing Director

Re: Quiksilver

     The Processor shall be fully protected in acting on any order or direction by the
Administrative Agent respecting the Credit Card Proceeds and other amounts without making any
inquiry whatsoever as to the Administrative Agent’s right or authority to give such order or
direction or as to the application of any payment made pursuant thereto. Nothing contained herein
is intended to, nor shall it be deemed to, modify the rights and obligations of the Borrower and
the Administrative Agent under the terms of the loan arrangement and the loan documents executed in
connection therewith between, among others, the Borrower and the Administrative Agent.

     This Credit Card Notification may be amended only by the written agreement of the Processor,
the Borrower and the Administrative Agent and may be terminated solely by written notice signed by
an officer of the Administrative Agent. The Borrower shall not have any right to terminate this
Credit Card Notification or, except as provided in this Credit Card Notification, amend it.

2

 

	 	 	 	 	 
	 	Very truly yours,

[QS RETAIL, INC.]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

cc: Bank of America, N.A., as Administrative Agent

3

 

Exhibit I

Form of Collateral Access Agreement

 

LANDLORD’S WAIVER

 

July           , 2009

     For good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged,                     , a                      (the “Landlord”), executes this waiver in
favor of BANK OF AMERICA, N.A., as administrative agent (in such capacity, the “Administrative
Agent”) for its own benefit and the benefit of certain other credit parties (the “Credit
Parties”) which are making loans or furnishing other financial accommodations to the Tenant (as
defined below).

WITNESSETH:

     WHEREAS, the Landlord owns real property located at                     (collectively, the
“Leased Premises”), which real property the Landlord leases to [Quiksilver, Inc.], a
corporation organized and existing under the laws of the State of [Delaware] (the
“Tenant”)1.

     WHEREAS, the Tenant has entered into certain loan arrangements with the Administrative Agent
and the Credit Parties, pursuant to which the Administrative Agent and the Credit Parties have
agreed to make loans or furnish other financial accommodations to the Tenant.

     WHEREAS, loans and financial accommodations under the loan arrangement will be secured by,
among other things, all of the Tenant’s present and after acquired assets (the
“Collateral”), including, without limitation, the Tenant’s inventory and equipment located,
and to be located, upon the Leased Premises.

     WHEREAS, in order to induce the Administrative Agent and the Credit Parties to make loans or
furnish other financial accommodations to the Tenant, the Landlord hereby represents, warrants,
covenants and agrees as follows:

	1.	 	To the best of the Landlord’s knowledge, the Tenant is not in default under the terms of its
lease of the Leased Premises.

 

			
	1	 	The identity of the Tenant should be changed
to the appropriate Loan Party as necessary.

1

 

	2.	 	The Landlord hereby waives and releases in favor of the Administrative Agent and the Credit
Parties: (a) any and all rights of distraint, levy, and execution which the Landlord may now
or hereafter have against the Collateral; (b) any and all statutory liens, security interests,
or other liens which the Landlord may now or hereafter have in the Collateral; and (c) any and
all other interests or claims of every nature whatsoever which the Landlord may now or
hereafter have in or against the Collateral for any rent, storage charges, or other sums due,
or to become due, to the Landlord by the Tenant. The Landlord agrees not to exercise any of
the Landlord’s rights, remedies, powers, privileges, or discretions with respect to the
Collateral, or the Landlord’s liens or security interests in the Collateral, unless and until
the Landlord receives written notice from an officer of the Administrative Agent that the
Tenant’s obligations to the Administrative Agent and the Credit Parties have been paid in
full, and that the commitment of the Administrative Agent and the Credit Parties to make loans
or furnish other financial accommodations to the Tenant has been terminated. The foregoing
waiver is for the benefit of the Administrative Agent and the Credit Parties only and does not
affect the obligations of the Tenant to the Landlord.

	3.	 	In the event of the exercise by the Administrative Agent of its rights upon default with
respect to the Collateral, the Administrative Agent shall have a reasonable time in which to
repossess and/or dispose of the Collateral from the Leased Premises; provided,
however, that such period will be tolled during any period in which the Administrative
Agent has been stayed from taking action to remove the Collateral in any bankruptcy,
insolvency or similar proceeding, and the Administrative Agent shall have an additional period
of time thereafter in which to repossess and/or dispose of the Collateral from the Leased
Premises. In those circumstances, the Landlord will, upon reasonable prior written notice
from the Administrative Agent, (a) cooperate with the Administrative Agent in gaining access
to the Leased Premises for the purpose of repossessing said Collateral and (b) if requested by
the Administrative Agent, permit the Administrative Agent, or its agents or nominees, to
dispose of the Collateral on the Leased Premises in a manner reasonably designed to minimize
any interference with any of the Landlord’s other tenants at the Leased Premises. The
Administrative Agent shall promptly repair, at the Administrative Agent’s expense, any
physical damage to the Leased Premises actually caused by removal of the Collateral, but shall
not be liable for any diminution in value of the Leased Premises caused by the removal or
absence of the Collateral.

	4.	 	To the extent not paid or prepaid by the Tenant, the Administrative Agent shall pay the
Landlord a sum for its use and occupancy of the Leased Premises on a per diem basis in an
amount equal to the monthly base rent required to be paid by the Tenant under the lease
between the Landlord and the Tenant from the date on which the Administrative Agent shall have
taken possession of the Collateral on the Leased Premises until the date on which the
Administrative Agent vacates the Leased Premises, it being understood, however, that the
Administrative Agent shall not, thereby, have assumed any of the obligations of the Tenant to
the Landlord, including, without limitation, any obligation to pay any past due rent owing by
the Tenant.

2

 

	5.	 	Prior to the Landlord’s terminating its lease with the Tenant or evicting the Tenant from the
Leased Premises for breach of the lease, the Landlord shall give the Administrative Agent not
less than sixty (60) days written notice of such action at the address set forth below, and a
reasonable opportunity to preserve, protect, liquidate, or remove any Collateral on the Leased
Premises and, if the Administrative Agent so elects, to cure such breach of the lease.
Notwithstanding the provisions of this paragraph, the Administrative Agent shall have no
obligation to cure any such breach or default. The cure of any such breach or default by the
Administrative Agent on any one occasion shall not obligate the Administrative Agent to cure
any other breach or default or to cure such default on any other occasion.

	6.	 	All notices under this waiver shall be made to the following addresses by recognized
overnight courier, by hand delivery or by facsimile transmission:

If to the Administrative Agent:

Bank of America, N.A.

100 Federal Street, 9th Floor

Boston, Massachusetts 02110

Attention: Stephen J. Garvin, Managing Director

Re: Quiksilver

If to the Landlord:

 

 

 

Attention:                                         

	7.	 	This waiver shall inure to the benefit of the Administrative Agent and each of the Credit
Parties, and their respective successors and assigns, and shall be binding upon the Landlord,
its heirs, assigns, representatives, and successors.

	8.	 	This waiver may not be amended or waived except by an instrument in writing signed by the
Administrative Agent, the Landlord, and the Tenant. This waiver shall be governed by, and
construed in accordance with, the laws of the State of New York. Delivery of an executed
signature page of this waiver by facsimile transmission shall be binding on the Landlord as if
the original of such facsimile had been delivered to the Administrative Agent.

[signature page follows]

3

 

Dated as of the date above first written.

	 	 	 	 	 
	 	LANDLORD:

 	 
	 	 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Landlord Waiver

 

 

Exhibit J-1

Form of Customs Broker Agency Agreement

(Domestic Loan Parties)

Name and Address of Customs Broker:

	 	 	 	 	 

	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	Attention:
	 	 	 	 
	 

	 	 	 	 

Dear Sir/Madam:

     [                                                            ], a corporation organized and
existing under the laws of
[                                        ] (the “Company”), among others, has entered into financing agreements
with, among others, Bank of America, N.A., a national banking association with offices at 100
Federal Street, 9th Floor, Boston, Massachusetts 02110, as administrative agent (in such
capacity herein, the “Administrative Agent”) for its own benefit and the benefit of a
syndicate of revolving lenders and certain other credit parties (collectively, the “Credit
Parties”) which are making loans or furnishing other financial accommodations to the Company or
its subsidiaries or affiliates, pursuant to which agreements the Company has granted to the
Administrative Agent, for its own benefit and the benefit of the other Credit Parties, a security
interest in and to, substantially all of the Company’s assets (the “Collateral”),
including, among other things, all of the Company’s inventory, goods, documents, bills of lading
and other documents of title.

     The Administrative Agent has requested that you (the “Customs Broker”) act as its
agent for the limited purpose of more fully perfecting and protecting the interest of the
Administrative Agent and the other Credit Parties in such bills of lading, documents and other
documents of title, and in the goods and inventory for which such bills of lading, documents, or
other documents of title have been issued, and, by acknowledging and executing this letter
agreement (this “Agreement”), the Customs Broker has agreed to do so. This Agreement shall
set forth the terms of the Customs Broker’s engagement.

     1. Acknowledgment of Security Interest: The Customs Broker acknowledges, consents, and agrees
that the Company has assigned to the Administrative Agent, for its own benefit and the benefit of
the other Credit Parties, all of the Company’s right, title, and interest in, to and under all
goods or documents constituting, evidencing, or relating to such inventory and any contracts or
agreements with carriers, customs brokers, and/or freight forwarders for shipment or delivery of
such goods.

     2. Appointment of Customs Broker as Agent of Administrative Agent: The Customs Broker is
hereby appointed as agent for the Administrative Agent to receive and retain possession of all
bills of lading, waybills, documents, and any other documents of title or

 

 

carriage constituting, evidencing, or relating to the Company’s goods, inventory or other
property (collectively, the “Title Documents”) heretofore or at any time hereafter issued
for any goods, inventory, or other property of the Company which are received by the Customs Broker
for processing (collectively, the “Property”), such receipt and retention of possession
being for the purpose of more fully perfecting and preserving the Administrative Agent’s security
interests in the Title Documents and the Property. The Customs Broker will maintain possession of
the Title Documents and the Property, subject to the security interest of the Administrative Agent,
and will note the security interests of the Administrative Agent on the Customs Broker’s books and
records. In the event that the Administrative Agent is designated as the consignor, co-consignor,
consignee or co-consignee on any such Title Documents, subject to the terms and conditions hereof,
the Administrative Agent hereby appoints the Customs Broker as its attorney-in-fact solely to
execute and deliver any such Title Documents for and on behalf of the Administrative Agent pursuant
to the terms of this Agreement.

     3. Delivery of Title Documents; Release of Goods: Until the Customs Broker receives written
notification from the Administrative Agent to the contrary (in accordance with Section 4 below),
the Customs Broker is authorized by the Administrative Agent to, and the Customs Broker may,
deliver:

     (a) the Title Documents to the issuing carrier or to its agent (who shall act on the
Customs Broker’s behalf as the Customs Broker’s sub-agent hereunder) for the purpose of
permitting the Company, as consignee, to obtain possession or control of the Property
subject to such Title Documents; and

     (b) the Property, in each instance as directed by the Company.

     4. Notice To Follow Administrative Agent’s Instructions: Upon the Customs Broker’s receipt of
written notification from the Administrative Agent, the Customs Broker shall thereafter follow
solely the instructions of the Administrative Agent concerning the disposition of the Title
Documents and the Property and will not follow any instructions of the Company or any other person
concerning the same.

     5. Limited Authority: The Customs Broker’s sole authority as the agent of the Administrative
Agent is to receive and maintain possession of the Title Documents on behalf of the Administrative
Agent and to follow the instructions of the Administrative Agent to the extent provided herein.
Except as may be specifically authorized and instructed by the Administrative Agent, the Customs
Broker shall have no authority as the agent of the Administrative Agent to undertake any other
action or to enter into any other commitments on behalf of the Administrative Agent.

     6. Expenses: The Administrative Agent shall not be obligated to compensate the Customs Broker
for serving as agent hereunder, nor shall the Administrative Agent be responsible for any fees,
expenses, customs, duties, taxes, or other charges relating to the Title Documents or the Property.
The Customs Broker acknowledges that the Company is solely responsible for payment of any
compensation and charges which are to the Company’s account. The Company is further responsible
for paying any fees, expenses, customs duties, taxes, or other charges which are, or may, accrue,
to the account of the Title Documents or the Property.

2

 

The Administrative Agent may, in its discretion, authorize the Customs Broker to perform
specified services on behalf of the Administrative Agent at mutually agreed rates of compensation,
which shall be charged to the Administrative Agent’s account, and payable to the Customs Broker by
the Administrative Agent (provided, however, such payment shall not affect any obligation of the
Company to reimburse the Administrative Agent for any such compensation or other costs or expenses
incurred by the Administrative Agent pursuant to the terms of the financing agreements referred to
above).

     7. Term of Agreement; Notices; Amendments:

     (a) In the event that the Customs Broker desires to terminate this Agreement, the
Customs Broker shall furnish the Administrative Agent with sixty (60) days prior written
notice of the Customs Broker’s intention to do so. During such sixty (60) day period (which
may be shortened by notice to the Customs Broker from the Administrative Agent), the Customs
Broker shall continue to serve as agent hereunder. The Customs Broker shall also cooperate
with the Administrative Agent and execute all such documentation and undertake all such
action as may be reasonably required by the Administrative Agent in connection with such
termination.

     (b) Except as provided in Section 7(a), above, this Agreement shall remain in full
force and effect until the Customs Broker receives written notification from the
Administrative Agent of the termination of the Customs Broker’s responsibilities hereunder.

     (c) Any written notice provided to any party hereto shall be delivered to such party at
the following address (or to such other address, written notice of which is given by such
party to the other parties hereto in writing with at least seven (7) days’ prior written
notice):

If to the Administrative Agent:

Bank of America, N.A.

100 Federal Street, 9th Floor

Boston, Massachusetts 02110

Attention: Stephen J. Garvin, Managing Director

Re: Quiksilver

If to Customs Broker:

                                                            

                                                            

                                                            

Attention:                                            

     (d) This Agreement may be amended only by notice in writing signed by the Company and
an officer of the Administrative Agent and may be terminated solely by written notice signed
by the Company and an officer of the Administrative Agent.

3

 

     8. Custom Broker’s Lien: The Customs Broker shall have a lien, to the extent provided by law,
on any Property then in the possession of the Customs Broker, which lien shall be to the extent of
any out-of-pocket costs, fees, freight charges, storage charges, or other charges or out-of-pocket
expenses incurred or paid by the Customs Broker with respect only to that Property then in the
possession of the Customs Broker, for which the Customs Broker has not received payment, but not
for any amount owed on account of any other Property, item, or matter.

     9. Counterparts; Integration: This Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract. This Agreement constitutes
the entire agreement between the Customs Broker and the Administrative Agent relating to the
subject matter hereof. In the event that the terms of any agreement between the Company and
Customs Broker (a) are in conflict or are inconsistent with the terms of this Agreement, the terms
of this Agreement shall govern, or (b) provide rights in favor of the Customs Broker in the Title
Documents or the Property which are greater than those provided herein, such rights shall be
limited to the extent provided for herein. This Agreement shall become effective when it shall
have been executed by the parties and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of the other parties
hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy or other electronic transmission shall be effective as delivery of a
manually executed counterpart of this Agreement.

     10. Governing Law: THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES).

[SIGNATURE PAGE FOLLOWS]

4

 

     If the foregoing correctly sets forth our understanding, please indicate the Customs Broker’s
assent below, following which this letter will take effect.

	 	 	 	 	 
	 	Very truly yours,

COMPANY:

[                                                            ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Agreed:

CUSTOMS BROKER:

[                                                            ]

	 	 	 	 	 
	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A.

	 	 	 	 	 
	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature Page to Customs Broker Agency Agreement

 

 

Exhibit J-2

Form of Customs Broker Agency Agreement

(Canadian Loan Parties)

Name and Address of Customs Broker:

	 	 	 

	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

Attention:                  
                         

	 	 

Dear Sir/Madam:

     
[                  
                    
                      
], a corporation organized and existing under the laws of [                  
                      ] (the “Company”), among others, has entered into financing agreements
with, among others, Bank of America, N.A. (acting through its Canada branch), a banking corporation
carrying on business under the Bank Act (Canada), having a place of business at 200 Front Street
West, Toronto, Ontario, Canada M5V 3L2, as Canadian Agent (in such capacity herein, the
“Canadian Agent”) for its own benefit and the benefit of a syndicate of revolving lenders
and certain other credit parties (collectively, the “Credit Parties”) which are making
loans or furnishing other financial accommodations to the Company or its subsidiaries or
affiliates, pursuant to which agreements the Company has granted to the Canadian Agent, for its own
benefit and the benefit of the other Credit Parties, a security interest in and to, substantially
all of the Company’s assets (the “Collateral”), including, among other things, all of the
Company’s inventory, goods, documents, bills of lading and other documents of title.

     The Canadian Agent has requested that you (the “Customs Broker”) act as its agent for
the limited purpose of more fully perfecting and protecting the interest of the Canadian Agent and
the other Credit Parties in such bills of lading, documents and other documents of title, and in
the goods and inventory for which such bills of lading, documents, or other documents of title have
been issued, and, by acknowledging and executing this letter agreement (this “Agreement”),
the Customs Broker has agreed to do so. This Agreement shall set forth the terms of the Customs
Broker’s engagement.

     1. Acknowledgment of Security Interest: The Customs Broker acknowledges, consents, and agrees
that the Company has assigned to the Canadian Agent, for its own benefit and the benefit of the
other Credit Parties, all of the Company’s right, title, and interest in, to and under all goods or
documents constituting, evidencing, or relating to such inventory and any contracts or agreements
with carriers, customs brokers, and/or freight forwarders for shipment or delivery of such goods.

     2. Appointment of Customs Broker as Agent of Canadian Agent: The Customs Broker is hereby
appointed as agent for the Canadian Agent to receive and retain possession of all bills of lading,
waybills, documents, and any other documents of title or carriage constituting,

 

 

evidencing, or relating to the Company’s goods, inventory or other property (collectively, the “Title
Documents”) heretofore or at any time hereafter issued for any goods, inventory, or other
property of the Company which are received by the Customs Broker for processing (collectively, the
“Property”), such receipt and retention of possession being for the purpose of more fully
perfecting and preserving the Canadian Agent’s security interests in the Title Documents and the
Property. The Customs Broker will maintain possession of the Title Documents and the Property,
subject to the security interest of the Canadian Agent, and will note the security interests of the
Canadian Agent on the Customs Broker’s books and records. In the event that the Canadian Agent is
designated as the consignor, co-consignor, consignee or co-consignee on any such Title Documents,
subject to the terms and conditions hereof, the Canadian Agent hereby appoints the Customs Broker
as its attorney-in-fact solely to execute and deliver any such Title Documents for and on behalf of
the Canadian Agent pursuant to the terms of this Agreement.

     3. Delivery of Title Documents; Release of Goods: Until the Customs Broker receives written
notification from the Canadian Agent to the contrary (in accordance with Section 4 below), the
Customs Broker is authorized by the Canadian Agent to, and the Customs Broker may, deliver:

     (a) the Title Documents to the issuing carrier or to its agent (who shall act on the
Customs Broker’s behalf as the Customs Broker’s sub-agent hereunder) for the purpose of
permitting the Company, as consignee, to obtain possession or control of the Property
subject to such Title Documents; and

     (b) the Property, in each instance as directed by the Company.

     4. Notice To Follow Canadian Agent’s Instructions: Upon the Customs Broker’s receipt of
written notification from the Canadian Agent, the Customs Broker shall thereafter follow solely the
instructions of the Canadian Agent concerning the disposition of the Title Documents and the
Property and will not follow any instructions of the Company or any other person concerning the
same.

     5. Limited Authority: The Customs Broker’s sole authority as the agent of the Canadian Agent
is to receive and maintain possession of the Title Documents on behalf of the Canadian Agent and to
follow the instructions of the Canadian Agent to the extent provided herein. Except as may be
specifically authorized and instructed by the Canadian Agent, the Customs Broker shall have no
authority as the agent of the Canadian Agent to undertake any other action or to enter into any
other commitments on behalf of the Canadian Agent.

     6. Expenses: The Canadian Agent shall not be obligated to compensate the Customs Broker for
serving as agent hereunder, nor shall the Canadian Agent be responsible for any fees, expenses,
customs, duties, taxes, or other charges relating to the Title Documents or the Property. The
Customs Broker acknowledges that the Company is solely responsible for payment of any compensation
and charges which are to the Company’s account. The Company is further responsible for paying any
fees, expenses, customs duties, taxes, or other charges which are, or may, accrue, to the account
of the Title Documents or the Property. The Canadian Agent may, in its discretion, authorize the
Customs Broker to perform specified services on

2

 

behalf of the Canadian Agent at mutually agreed
rates of compensation, which shall be charged to the Canadian Agent’s account, and payable to the
Customs Broker by the Canadian Agent (provided, however, such payment shall not affect any
obligation of the Company to reimburse the Canadian Agent for any such compensation or other costs
or expenses incurred by the Canadian Agent pursuant to the terms of the financing agreements
referred to above).

     7. Term of Agreement; Notices; Amendments:

     (a) In the event that the Customs Broker desires to terminate this Agreement, the
Customs Broker shall furnish the Canadian Agent with sixty (60) days prior written notice of
the Customs Broker’s intention to do so. During such sixty (60) day period (which may be
shortened by notice to the Customs Broker from the Canadian Agent), the Customs Broker shall
continue to serve as agent hereunder. The Customs Broker shall also cooperate with the
Canadian Agent and execute all such documentation and undertake all such action as may be
reasonably required by the Canadian Agent in connection with such termination.

     (b) Except as provided in Section 7(a), above, this Agreement shall remain in full
force and effect until the Customs Broker receives written notification from the Canadian
Agent of the termination of the Customs Broker’s responsibilities hereunder.

     (c) Any written notice provided to any party hereto shall be delivered to such party at
the following address (or to such other address, written notice of which is given by such
party to the other parties hereto in writing with at least seven (7) days’ prior written
notice):

If to the Canadian Agent:

Bank of America, N.A. (acting through its Canada branch)

200 Front Street West

Toronto, Ontario, Canada M5V 3L2

Attention:                                         

Re: Quiksilver

If to Customs Broker:

                  
                    
                      

              
                        
                      

              
                      
                        

Attention:                
                             

     (d) This Agreement may be amended only by notice in writing signed by the Company and
an officer of the Canadian Agent and may be terminated solely by written notice signed by
the Company and an officer of the Canadian Agent.

3

 

     8. Custom Broker’s Lien: The Customs Broker shall have a lien, to the extent provided by law,
on any Property then in the possession of the Customs Broker, which lien shall be to the extent of
any out-of-pocket costs, fees, freight charges, storage charges, or other charges or out-of-pocket
expenses incurred or paid by the Customs Broker with respect only to that Property then in the
possession of the Customs Broker, for which the Customs Broker has not received payment, but not
for any amount owed on account of any other Property, item, or matter.

     9. Counterparts; Integration: This Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract. This Agreement constitutes
the entire agreement between the Customs Broker and the Canadian Agent relating to the subject
matter hereof. In the event that the terms of any agreement between the Company and Customs Broker
(a) are in conflict or are inconsistent with the terms of this Agreement, the terms of this
Agreement shall govern, or (b) provide rights in favor of the Customs Broker in the Title Documents
or the Property which are greater than those provided herein, such rights shall be limited to the
extent provided for herein. This Agreement shall become effective when it shall have been executed
by the parties and when the Canadian Agent shall have received counterparts hereof that, when taken
together, bear the signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other
electronic transmission shall be effective as delivery of a manually executed counterpart of this
Agreement.

     10. Governing Law: THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES).

[SIGNATURE PAGE FOLLOWS]

4

 

     The parties hereto acknowledge that they have requested and are satisfied that the
foregoing, as well as all notices, actions and legal proceedings be drawn up in the English
language.

     Les parties à cette convention reconnaissent qu’elles ont exigé que ce qui précède ainsi que
tous avis, actions et procédures légales soient rédigés et exécutés en anglais et s’en déclarent
satisfaites.

     If the foregoing correctly sets forth our understanding, please indicate the Customs Broker’s
assent below, following which this letter will take effect.

	 	 	 	 	 
	 	Very truly yours,

COMPANY:

[                                        ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Agreed:

CUSTOMS BROKER:

[              
                          ]

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

CANADIAN AGENT:

BANK OF AMERICA, N.A.

(acting through its Canada branch)

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Customs Broker Agency Agreement

 

 

Exhibit K-1

GUARANTY

     GUARANTY (this “Guaranty”), dated as of July [___], 2009, by the undersigned (each such
Person, individually, a “Guarantor” and, collectively with any other Person now or
hereafter party hereto as a Guarantor, the “Guarantors”) executed in favor of (a) Bank of
America, N.A. as administrative agent (in such capacity, the “Administrative Agent”) for
its own benefit and the benefit of the other Credit Parties (as defined in the Credit Agreement
referred to below), and (b) the other Credit Parties.

W I T N E S S E T H

     WHEREAS, reference is made to that certain Credit Agreement, dated as of July [___], 2009 (as
amended, amended and restated, modified, supplemented or restated and in effect from time to time,
the “Credit Agreement”), by and among, inter alia (i) Quiksilver Americas, Inc., as the
Lead Borrower, (ii) Quiksilver Canada Corp., as the Canadian Borrower, (iii) the other Borrowers
from time to time party thereto, (iv) the Guarantors from time to time party thereto, (v) the
Lenders from time to time party thereto (individually, a “Lender” and, collectively, the
“Lenders”), (vi) Bank of America, N.A., as Administrative Agent, Co-Collateral Agent, Swing
Line Lender, L/C Issuer, and Syndication Agent, (vii) General Electric Capital Corporation, as
Co-Collateral Agent and (viii) Bank of America, N.A. (acting through its Canada branch), as
Canadian Agent, pursuant to which the Lenders have agreed to make Loans to the Borrowers, and the
L/C Issuer has agreed to issue Letters of Credit for the account of the Borrowers, upon the terms
and subject to the conditions specified in the Credit Agreement. Capitalized terms used herein and
not defined herein shall have the meanings assigned to such terms in the Credit Agreement.

     WHEREAS, the Lenders have agreed to make Loans to the Borrowers, and the L/C Issuer has agreed
to issue Letters of Credit for the account of the Borrowers, pursuant to, and upon the terms and
subject to the conditions specified in, the Credit Agreement.

     WHEREAS, each Guarantor acknowledges that it is an integral part of a consolidated enterprise
and that it will receive direct and indirect benefits from the availability of the credit facility
provided for in the Credit Agreement, from the making of the Loans by the Lenders, and the issuance
of the Letters of Credit by the L/C Issuer.

     WHEREAS, the obligations of the Lenders to make Loans and of the L/C Issuer to issue Letters
of Credit are each conditioned upon, among other things, the execution and delivery by the
Guarantors of a guaranty in the form hereof. As consideration therefor, and in order to induce the
Lenders to make Loans and the L/C Issuer to issue Letters of Credit, the Guarantors are willing to
execute this Guaranty.

     Accordingly, the parties hereto agree as follows:

     1. Guaranty. Each Guarantor irrevocably and unconditionally guaranties, jointly with
the other Guarantors and severally, as a primary obligor and not merely as a surety, the due and
punctual payment when due (whether at the stated maturity, by required prepayment, by

1

 

acceleration or otherwise) and performance by each of the Borrowers of all Obligations
(collectively, the “Guaranteed Obligations”), including all such Guaranteed Obligations
which shall become due but for the operation of the Bankruptcy Code. Each Guarantor further agrees
that the Guaranteed Obligations may be extended or renewed, in whole or in part, without notice to
or further assent from it, and that it will remain bound upon this Guaranty notwithstanding any
extension or renewal of any Guaranteed Obligation.

     2. Guaranteed Obligations Not Affected. To the fullest extent permitted by applicable
Law, each Guarantor waives presentment to, demand of payment from, and protest to, any Loan Party
of any of the Guaranteed Obligations, and also waives notice of acceptance of this Guaranty, notice
of protest for nonpayment and all other notices of any kind. To the fullest extent permitted by
applicable Law, the obligations of each Guarantor hereunder shall not be affected by (a) the
failure of the Administrative Agent or any other Credit Party to assert any claim or demand or to
enforce or exercise any right or remedy against any Loan Party under the provisions of the Credit
Agreement, any other Loan Document or otherwise or against any other party with respect to any of
the Guaranteed Obligations, (b) any rescission, waiver, amendment or modification of, or any
release from any of the terms or provisions of, this Guaranty, the Credit Agreement, any other Loan
Document or any other agreement, with respect to any Loan Party or with respect to the Guaranteed
Obligations (except as expressly set forth in such recission, waiver, amendment, modification or
release), (c) the failure to perfect any security interest in, or the release of, any of the
Collateral held by or on behalf of the Administrative Agent or any other Credit Party, or (d) the
lack of legal existence of any Loan Party or legal obligation to discharge any of the Guaranteed
Obligations by any Loan Party for any reason whatsoever, including, without limitation, in any
insolvency, bankruptcy or reorganization of any Loan Party.

     3. Security. Each of the Guarantors hereby acknowledges and agrees that the
Administrative Agent, on behalf of itself and the other Credit Parties, may (a) take and hold
security in the manner set forth in the Loan Documents for the payment of this Guaranty and the
Guaranteed Obligations and exchange, enforce, waive and release any such security, (b) apply such
security and direct the order or manner of sale thereof as provided in the Credit Agreement, and
(c) release or substitute any one or more endorsees, Borrowers, other Loan Parties or other
obligors, in each case without affecting or impairing in any way the liability of any Guarantor
hereunder.

     4. Guaranty of Payment. Each of the Guarantors further agrees that this Guaranty
constitutes a guaranty of payment and performance when due of all Guaranteed Obligations and not of
collection and, to the fullest extent permitted by applicable Law, waives any right to require that
any resort be had by the Administrative Agent or any other Credit Party to any of the Collateral or
other security held for payment of the Guaranteed Obligations or to any balance of any deposit
account or credit on the books of the Administrative Agent or any other Credit Party in favor of
any Loan Party or any other Person or to any other guarantor of all or part of the Guaranteed
Obligations. Any payment required to be made by any Guarantor hereunder may be required by the
Administrative Agent or any other Credit Party on any number of occasions and shall be payable to
the Administrative Agent, for its own benefit and the benefit of the other Credit Parties, in the
manner provided in the Credit Agreement.

2

 

     5. No Discharge or Diminishment of Guaranty. The obligations of each Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason (other than, following the termination of the Aggregate Total Commitments, the indefeasible
payment in full in cash of the Guaranteed Obligations or as otherwise provided in Section
10 of this Guaranty), including any claim of waiver, release, surrender, alteration or
compromise of any of the Guaranteed Obligations, and shall not be subject to any defense or
set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality
or unenforceability of the Guaranteed Obligations or otherwise. Without limiting the generality of
the foregoing, the Guaranteed Obligations of each Guarantor hereunder shall not be discharged or
impaired or otherwise affected by the failure of the Administrative Agent or any other Credit Party
to assert any claim or demand or to enforce any remedy under this Guaranty, the Credit Agreement,
any other Loan Document or any other agreement, by any waiver or modification of any provision of
any thereof (except as expressly set forth in any such waiver or modification), by any default,
failure or delay, willful or otherwise, in the performance of any of the Guaranteed Obligations, or
by any other act or omission that may or might in any manner or to any extent vary the risk of any
Guarantor or that would otherwise operate as a discharge of any Guarantor as a matter of law or
equity (other than, following the termination of the Aggregate Total Commitments, the indefeasible
payment in full in cash of the Guaranteed Obligations or as otherwise provided in Section
10 of this Guaranty).

     6. Defenses of Loan Parties Waived. To the fullest extent permitted by applicable
Law, each of the Guarantors waives any defense based on or arising out of any defense of any other
Loan Party or the unenforceability of the Guaranteed Obligations or any part thereof from any
cause, or the cessation from any cause of the liability of any other Loan Party, other than,
following the termination of the Aggregate Total Commitments, the indefeasible payment in full in
cash of the Guaranteed Obligations. Each Guarantor hereby acknowledges that the Administrative
Agent and the other Credit Parties may, at their election in accordance with the provisions of the
Loan Documents, foreclose on any security held by one or more of them by one or more judicial or
nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or
adjust any part of the Guaranteed Obligations, make any other accommodation with any other Loan
Party, or exercise any other right or remedy available to them against any other Loan Party,
without affecting or impairing in any way the liability of each such Guarantor hereunder except to
the extent that, following the termination of the Aggregate Total Commitments, the Guaranteed
Obligations have been indefeasibly paid in full in cash. Pursuant to, and to the extent permitted
by, applicable Law, each of the Guarantors waives any defense arising out of any such election and
waives any benefit of and right to participate in any such foreclosure action, even though such
election operates, pursuant to applicable Law, to impair or to extinguish any right of
reimbursement, indemnity, contribution or subrogation or other right or remedy of such Guarantor
against any Loan Party, as the case may be, or any security. Each Guarantor agrees that it shall
not assert any claim in competition with the Administrative Agent or any other Credit Party in
respect of any payment made hereunder in connection with any proceedings under any Debtor Relief
Laws.

3

 

     7. Limitation on Guaranty of Guaranteed Obligations. In any action or proceeding with
respect to any Guarantor involving any state corporate law, the Bankruptcy Code of the United
States or any other Debtor Relief Law, if the obligations of such Guarantor under Section 1
hereof would otherwise be held or determined to be void, invalid or unenforceable, or subordinated
to the claims of any other creditors, on account of the amount of its liability under said
Section 1, then, notwithstanding any other provision hereof to the contrary, the amount of
such liability shall, without any further action by such Guarantor, any Credit Party, the
Administrative Agent or any other Person, be automatically limited and reduced to the highest
amount which is valid and enforceable and not subordinated to the claims of other creditors as
determined in such action or proceeding.

     8. Subordination. Upon payment by any Guarantor of any Guaranteed Obligations, all
rights of such Guarantor against any other Loan Party arising as a result thereof by way of right
of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be
subordinate and junior in right of payment to the prior indefeasible payment in full in cash of all
the Guaranteed Obligations and the termination of the Aggregate Total Commitments. In addition,
any indebtedness of any Loan Party now or hereafter held by any Guarantor is hereby subordinated in
right of payment to the prior indefeasible payment in full in cash of all of the Guaranteed
Obligations. Notwithstanding the foregoing, prior to the occurrence of an Event of Default, any
Loan Party may make payments to any Guarantor on account of any such indebtedness. After the
occurrence and during the continuance of an Event of Default, no Guarantor will demand, sue for, or
otherwise attempt to collect any such indebtedness. If any amount shall erroneously be paid to any
Guarantor on account of (a) such subrogation, contribution, reimbursement, indemnity or similar
right or (b) any such indebtedness of any Loan Party, such amount shall be held in trust for the
benefit of the Credit Parties and shall forthwith be paid to the Administrative Agent to be
credited against the payment of the Guaranteed Obligations, whether matured or unmatured, in
accordance with the terms of the Credit Agreement. Subject to the foregoing, to the extent that
any Guarantor shall, repay any of the Guaranteed Obligations constituting Loans made to another
Loan Party under the Credit Agreement or other Guaranteed Obligations incurred directly and
primarily by any other Loan Party (an “Accommodation Payment”), then the Guarantor making
such Accommodation Payment shall be entitled to contribution and indemnification from, and be
reimbursed by, each of the other Domestic Loan Parties in an amount, for each of such other
Domestic Loan Parties, equal to a fraction of such Accommodation Payment, the numerator of which
fraction is such other Domestic Loan Party’s Allocable Amount and the denominator of which is the
sum of the Allocable Amounts of all of the Domestic Loan Parties. As of any date of determination,
the “Allocable Amount” of any Guarantor and each other Domestic Loan Party shall be equal
to the maximum amount of liability for Accommodation Payments which could be asserted against such
Guarantor or Domestic Loan Party hereunder without (a) rendering such Person “insolvent” within the
meaning of Section 101 (31) of the Bankruptcy Code, Section 2 of the Uniform Fraudulent Transfer
Act (“UFTA”) or Section 2 of the Uniform Fraudulent Conveyance Act (“UFCA”), (b)
leaving such Person with unreasonably small capital or assets, within the meaning of Section 548 of
the Bankruptcy Code, Section 4 of the UFTA, or Section 5 of the UFCA, or (c) leaving such Person
unable to pay its debts as they become due within the meaning of Section 548 of the Bankruptcy Code
or Section 4 of the UFTA, or Section 5 of the UFCA.

4

 

     9. Information. Each of the Guarantors assumes all responsibility for being and
keeping itself informed of each Loan Party’s financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature,
scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that
none of the Administrative Agent or the other Credit Parties will have any duty to advise any of
the Guarantors of information known to it or any of them regarding such circumstances or risks.

     10. Termination; Release.

     (a) This Guaranty (a) shall terminate when (i) the Aggregate Total Commitments have
expired or been terminated, (ii) all of the Guaranteed Obligations (other than contingent
indemnification obligations for which claims have not yet been asserted) have been paid in
full in cash or otherwise satisfied, (iii) all L/C Obligations have been reduced to zero (or
fully Cash Collateralized), and (iv) the L/C Issuer has no further obligation to issue
Letters of Credit under the Credit Agreement, and (b) shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of any
Guaranteed Obligation is rescinded or must otherwise be restored by any Credit Party or any
Guarantor upon the bankruptcy or reorganization of any Loan Party or otherwise.

     (b) A Guarantor shall automatically be released from its obligations hereunder upon the
consummation of any transaction permitted by the Credit Agreement as a result of which such
Guarantor ceases to be a Subsidiary; provided that each Credit Party that is required to
consent to such transaction (if any) pursuant to the Credit Agreement has consented to such
transaction. The Administrative Agent will, at such Guarantor’s expense, execute and
deliver to such Guarantor such documents as such Guarantor may reasonably request to release
such Guarantor from its obligations under this Guaranty and each other applicable Loan
Documents, in each case in accordance with the terms of the Loan Documents and Section 9.10
of the Credit Agreement.

     11. Binding Effect; Several Agreement; Assignments. This Guaranty, and all covenants,
promises and agreements by or on behalf of the Guarantors that are contained in this Guaranty,
shall be binding upon each of the Guarantors and their respective successors and assigns, and shall
inure to the benefit of the Administrative Agent and the other Credit Parties, and their respective
successors and permitted assigns, except that no Guarantor shall have the right to assign or
transfer its rights or obligations hereunder or any interest herein (and any such attempted
assignment or transfer shall be void), except as expressly permitted by this Guaranty or the Credit
Agreement. This Guaranty shall be construed as a separate agreement with respect to each Guarantor
and may be amended, modified, supplemented, waived or released with respect to any Guarantor
without the approval of any other Guarantor and without affecting the obligations of any other
Guarantor hereunder.

     12. Waivers; Amendment.

     (a) The rights, remedies, powers, privileges, and discretions of the Administrative
Agent hereunder and under applicable Law (herein, the “Administrative

5

 

Agent’s Rights and Remedies”) shall be cumulative and not exclusive of any
rights or remedies which they would otherwise have. No delay or omission by the
Administrative Agent in exercising or enforcing any of the Administrative Agent’s Rights and
Remedies shall operate as, or constitute, a waiver thereof. No waiver by the Administrative
Agent of any Event of Default or of any default under any other agreement shall operate as a
waiver of any other default hereunder or under any other agreement (except as expressly set
forth in such waiver). No single or partial exercise of any of the Administrative Agent’s
Rights or Remedies, and no express or implied agreement or transaction of whatever nature
entered into between the Administrative Agent and any Person, at any time, shall preclude
the other or further exercise of the Administrative Agent’s Rights and Remedies. No waiver
by the Administrative Agent of any of the Administrative Agent’s Rights and Remedies on any
one occasion shall be deemed a waiver on any subsequent occasion, nor shall it be deemed a
continuing waiver. The Administrative Agent’s Rights and Remedies may be exercised at such
time or times and in such order of preference as the Administrative Agent may determine. The
Administrative Agent’s Rights and Remedies may be exercised without resort or regard to any
other source of satisfaction of the Guaranteed Obligations. No notice to or demand on any
Guarantor in any case shall entitle such Guarantor or any other Guarantor to any other or
further notice or demand in the same, similar or other circumstances.

     (b) Neither this Guaranty nor any provision hereof may be waived, amended or modified
except pursuant to a written agreement entered into in accordance with Section 10.01 of the
Credit Agreement, and, if given, such waiver, amendment or modification shall be effective
only in the specific instance and for the purpose for which given.

     13. Governing Law. THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

     14. Notices. All communications and notices hereunder shall (except as otherwise
expressly permitted herein) be in writing and given as provided in Section 10.02 of the Credit
Agreement, provided that communications and notices to the Guarantors may be
delivered to the Lead Borrower on behalf of each of the Guarantors.

     15. Survival of Agreement; Severability.

     (a) All covenants, agreements, indemnities, representations and warranties made by the
Guarantors herein and in the certificates or other instruments delivered in connection with
or pursuant to this Guaranty, the Credit Agreement or any other Loan Document (i) shall be
considered to have been relied upon by the Administrative Agent and the other Credit
Parties, (ii) shall survive the execution and delivery of this Guaranty, the Credit
Agreement and the other Loan Documents and the making of any Loans by the Lenders and the
issuance of any Letters of Credit by the L/C Issuer, regardless of any investigation made by
the Administrative Agent or any other Credit Party or on their behalf and notwithstanding
that the Administrative Agent or other Credit Party may have had notice or knowledge of any
Default or Event of Default or incorrect representation or warranty at the time any credit
is extended, (iii) shall continue in full force and effect

6

 

until such time as this Guaranty has been terminated or, with respect to any Guarantor
that has been released from its obligations hereunder in accordance with the terms of this
Guaranty and the Credit Agreement, such time as such Guarantor has been so released, in each
case in accordance with Section 10 hereof, and (iv) shall be reinstated to the
extent required by Section 10 hereof. The provisions of Section 10 hereof
shall survive and remain in full force and effect regardless of the repayment of the
Guaranteed Obligations, the expiration or termination of the Letters of Credit and the
Aggregate Total Commitments or the termination of this Guaranty or any provision hereof.

     (b) Any provision of this Guaranty held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof, and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

     16. Counterparts. This Guaranty may be executed in counterparts, each of which shall
constitute an original but all of which, when taken together, shall constitute a single contract.
Delivery of an executed counterpart of a signature page to this Guaranty by facsimile or other
electronic transmission shall be as effective as delivery of a manually executed counterpart of
this Guaranty.

     17. Rules of Interpretation. The rules of interpretation specified in Sections 1.02
through 1.07 of the Credit Agreement shall be applicable to this Guaranty.

     18. Jurisdiction; Waiver of Venue; Consent to Service of Process.

     (a) EACH OF THE GUARANTORS AND EACH CREDIT PARTY, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES
DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY
THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY
OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
GUARANTORS AND EACH CREDIT PARTY, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, IN SUCH FEDERAL COURT. EACH OF THE GUARANTORS AND EACH CREDIT PARTY, BY ITS ACCEPTANCE
HEREOF, AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. NOTHING IN THIS GUARANTY OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT ANY CREDIT

7

 

PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS GUARANTY OR
ANY OTHER LOAN DOCUMENT AGAINST ANY GUARANTOR OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

     (b) EACH OF THE GUARANTORS AND EACH CREDIT PARTY, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION
THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (A) OF THIS SECTION 18. EACH OF THE GUARANTORS AND EACH CREDIT PARTY, BY
ITS ACCEPTANCE HEREOF, IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN
ANY SUCH COURT.

     (c) EACH OF THE GUARANTORS AND EACH CREDIT PARTY, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY
CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 14.
NOTHING IN THIS GUARANTY WILL AFFECT THE RIGHT OF ANY GUARANTOR OR ANY CREDIT PARTY TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     (d) EACH OF THE GUARANTORS AGREES THAT IT WILL BRING ANY ACTION ASSERTING ANY CLAIM OR
COUNTERCLAIM AGAINST ANY CREDIT PARTY ARISING UNDER OR IN CONNECTION WITH THIS GUARANTY OR
ANY OTHER LOAN DOCUMENT SOLELY IN A COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK
COUNTY OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE EXCLUSIVE JURISDICTION OF
SUCH COURTS WITH RESPECT TO ANY SUCH ACTION; PROVIDED HOWEVER, THAT, IN THE
EVENT THAT ANY CREDIT PARTY BRINGS AN ACTION ASSERTING A CLAIM AGAINST ANY GUARANTOR ARISING
UNDER OR IN CONNECTION WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT IN A COURT OF COMPETENT
JURISDICTION OTHER THAN ONE OF THOSE REFERENCED HEREIN, SUCH GUARANTOR SHALL BE ENTITLED TO
ASSERT ANY COMPULSORY COUNTERCLAIM RELATED THERETO IN THE SAME COURT.

     19. Waiver of Jury Trial. EACH OF THE GUARANTORS AND EACH CREDIT PARTY, BY ITS
ACCEPTANCE HEREOF, HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH OF THE GUARANTORS AND EACH
CREDIT PARTY, BY ITS ACCEPTANCE HEREOF, (A)

8

 

CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS
GUARANTY AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 19.

[SIGNATURE PAGE FOLLOWS]

9

 

     IN WITNESS WHEREOF, each of the undersigned Guarantors has duly executed this Guaranty as of
the day and year first above written.

	 	 	 	 	 
	GUARANTOR: 	QUIKSILVER, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Guaranty

 

Exhibit K-2

GUARANTEE

	TO:  	 	BANK OF AMERICA, N.A., a national banking association organized under the federal laws of the
United States of America and carrying on business in Canada through its Canada branch, having
an office at 200 Front Street West, Suite 2700, Toronto, Ontario, M5V 3L2, as Canadian Agent
(in such capacity, the “Agent”) for its own benefit and the benefit of the other Canadian
Credit Parties (as defined in the Credit Agreement (as hereinafter defined)), in consideration
of the mutual covenants contained herein and benefits derived herefrom.
	 
	GRANTED BY:  	 	QS RETAIL CANADA CORP., a Nova Scotia unlimited company, having its principal offices
at 140-890 Harbourside Drive, North Vancouver, British Columbia, V7P 3T7, Canada.

WITNESSETH

Reference is made to that certain Credit Agreement, dated as of July 31, 2009 (as amended, amended
and restated, modified, supplemented or restated and in effect from time to time, the “Credit
Agreement”), by and among, inter alia, (i) Quiksilver Americas, Inc., as the Lead Borrower, (ii)
Quiksilver Canada Corp., as Canadian Borrower, (iii) the other Borrowers from time to time party
thereto, (iv) the Guarantors from time to time party thereto, (v) the Lenders from time to time
party thereto, (vi) Bank of America, N.A., as Administrative Agent, Co-Collateral Agent, Swing Line
Lender, L/C Issuer, and Syndication Agent, (vii) General Electric Capital Corporation, as
Co-Collateral Agent and (viii) Bank of America, N.A. (acting through its Canada branch), as
Canadian Agent (capitalized terms used herein and not defined herein shall have the meanings
assigned to such terms in the Credit Agreement).

The Canadian Credit Parties have agreed to make Canadian Loans and otherwise extend credit support
to the Canadian Borrower pursuant to, and upon the terms and subject to the conditions specified
in, the Credit Agreement.

The obligations of the Canadian Lenders to make Canadian Loans and of the L/C Issuer to issue
Canadian Letters of Credit from time to time are each conditioned upon, among other things, the
execution and delivery by the undersigned of a guarantee in the form hereof.

As consideration therefor and in order to induce the Canadian Lenders to make Loans and the L/C
Issuer to issue Canadian Letters of Credit from time to time, the undersigned is willing to execute
this Guarantee and agrees as follows:

	1.	 	For valuable consideration, the undersigned hereby irrevocably and unconditionally
guarantees, as a primary obligor and not merely as a surety, the due and punctual payment when
due (whether at the stated maturity, by required prepayment, by acceleration or otherwise) and
performance by the Canadian Borrower of, and promises

 

 

	 	 	to pay, all Canadian Liabilities (collectively, the “Guaranteed Indebtedness”) to the Agent,
for its own benefit and the benefit of the other Canadian Credit Parties.

	2.	 	The liability of the undersigned under this Guarantee shall be unlimited. Regardless of
whether or not any proposed guarantor or any other Person has executed or shall execute this
Guarantee or is or are or shall become in any other way responsible to the Agent and/or the
other Canadian Credit Parties for the Guaranteed Indebtedness or any part thereof whether
under this Guarantee or otherwise shall cease to be so liable, this shall be a continuing
Guarantee relating to any Guaranteed Indebtedness, including that arising under successive
transactions which shall either continue the Guaranteed Indebtedness or from time to time
renew it after it has been satisfied and shall secure the ultimate repayment of all monies
owing from the Canadian Borrower to the Agent and the other Canadian Credit Parties and shall
be binding as a continuing security on the undersigned. Any payment by the undersigned shall
not reduce the maximum obligation of the undersigned hereunder.
	 
	3.	 	The obligations hereunder are independent of the obligations of the Canadian Borrower and a
separate action or actions may be brought and prosecuted against the undersigned whether
action is brought against the Canadian Borrower or whether the Canadian Borrower be joined in
any such action or actions; and the undersigned waives, to the extent permitted by applicable
Law, the benefit of any statute of limitations affecting its liability.
	 
	4.	 	The undersigned authorizes the Agent, without notice or demand and without affecting its
liability hereunder, from time to time, either before or after revocation hereof, to:

	 	(a)	 	renew, compromise, extend, accelerate or otherwise change the time for payment
of, or otherwise change the terms of the Guaranteed Indebtedness or any part thereof,
including increase or decrease of the rate of interest thereon;
	 
	 	(b)	 	receive and hold security for the payment of this Guarantee or the Guaranteed
Indebtedness guaranteed, and exchange, enforce, waive, release, fail to perfect, sell,
or otherwise dispose of any such security;
	 
	 	(c)	 	apply such security and direct the order or manner of sale thereof in
accordance with Section 8.03 of the Credit Agreement; and
	 
	 	(d)	 	release or substitute any guarantors.

	5.	 	The undersigned waives any right to require the Agent or the other Canadian Credit Parties
to:

	 	(a)	 	proceed against the Canadian Borrower;
	 
	 	(b)	 	proceed against or exhaust any security held from the Canadian Borrower or any
other Person; or
	 
	 	(c)	 	pursue any other remedy in the Agent’s or the other Canadian Credit Parties’
power whatsoever.

- 2 -

 

	 	 	The undersigned waives any defense arising by reason of any disability or other defense of
the Canadian Borrower, or the cessation from any cause whatsoever of the liability of the
Canadian Borrower, or any claim that the undersigned’s obligations exceed or are more
burdensome than those of the Canadian Borrower, the undersigned waives (until such time as
the Aggregate Canadian Commitments have been terminated and the Guaranteed Indebtedness has
been indefeasibly paid in full in cash) any right of subrogation, reimbursement,
indemnification, and contribution (contractual, statutory or otherwise), arising from the
existence or performance of this Guarantee and the undersigned waives any right to enforce
any remedy which the Agent and/or the other Canadian Credit Parties now have or may
hereafter have against the Canadian Borrower, and waives any benefit of, and any right to
participate in, any security now or hereafter held by the Agent or the other Canadian Credit
Parties. The Agent may foreclose, either by judicial foreclosure or by exercise of power of
sale, or realize any deed of trust or other security securing the Guaranteed Indebtedness,
and, even though the foreclosure or other realization may destroy or diminish the
undersigned’s rights against the Canadian Borrower or may result in security being sold at
an under value, the undersigned shall be liable to the Agent and the other Canadian Credit
Parties for any part of the Guaranteed Indebtedness remaining unpaid after the foreclosure
or other realization. The undersigned waives all presentments, demands for performance,
notices of nonperformance, protests, notices of protest, notices of dishonour, and notices
of acceptance of this Guarantee and of the existence, creation, or incurring of new or
additional Guaranteed Indebtedness.

	6.	 	The undersigned acknowledges and agrees that it shall have the sole responsibility for
obtaining from the Canadian Borrower such information concerning the Canadian Borrower’s
financial conditions or business operations as the undersigned may require, and that neither
the Agent nor the other Canadian Credit Parties have any duty at any time to disclose to the
undersigned any information relating to the business operations or financial condition of the
Canadian Borrower.
	 
	7.	 	To secure all of the undersigned’s obligations hereunder, the undersigned assigns and grants
to the Agent for itself and on behalf of the other Canadian Credit Parties a security interest
in all now owned or hereafter acquired moneys, securities and other property of the
undersigned (other than Excluded Assets (as defined in the Security Agreement made by the
undersigned in favour of the Agent)), and all deposit accounts of the undersigned maintained
with the Agent and the other Canadian Credit Parties (or otherwise), and all proceeds thereof.
Upon default or breach of any of the undersigned’s obligations to the Agent and the other
Canadian Credit Parties, the Agent may apply any monies in any deposit account to reduce the
Guaranteed Indebtedness, and may realize upon any collateral as provided by law and in any
security agreements between the Agent and/or the other Canadian Credit Parties and the
undersigned.
	 
	8.	 	Any obligations of the Canadian Borrower to the undersigned, now or hereafter existing,
including but not limited to any obligations to the undersigned as subrogee of the Agent or
the other Canadian Credit Parties or resulting from the undersigned’s performance under this
Guarantee, are hereby assigned to the Agent and postponed and subordinated to the Guaranteed
Indebtedness. Subject to the Credit Agreement and unless otherwise provided therein, any such
obligations of the Canadian Borrower to the undersigned

- 3 -

 

	 	 	received by the undersigned after the occurrence of an Event of Default that is continuing
shall be received in trust for the Agent and the other Canadian Credit Parties and the
proceeds thereof shall forthwith be paid over to the Agent on account of the Guaranteed
Indebtedness of the Canadian Borrower to the Agent and the other Canadian Credit Parties,
but without reducing or affecting in any manner the liability of the undersigned under the
provisions of this Guarantee. This assignment and postponement is independent of and
severable from this Guarantee and shall remain in full force and effect whether or not the
undersigned is liable for any amount under this Guarantee.

	9.	 	Where the Canadian Borrower becomes bankrupt or makes an assignment for the benefit of
creditors or if any circumstances arise necessitating the Agent and/or the other Canadian
Credit Parties to file a claim against the Canadian Borrower and/or to value its securities,
the Agent shall be entitled to place such valuation on its securities as the Agent may in its
absolute discretion see fit and the filing of such claim and the valuing of securities shall
not in any way prejudice or restrict the claim of the Agent and the other Canadian Credit
Parties against the undersigned and in no way discharges the undersigned from its liability
hereunder to the Agent and the other Canadian Credit Parties, either in whole or in part and
until all Guaranteed Indebtedness of the Canadian Borrower to the Agent and the other Canadian
Credit Parties has been fully paid, the Agent shall have the right to include in its claim the
amount of all sums paid by the undersigned to the Agent under this Guarantee and to prove and
rank for and receive dividends in respect of such claim, any and all rights to prove and rank
for such sums paid for by the undersigned and receive the full amount of all dividends in
respect thereto are hereby assigned and transferred to the Agent by the undersigned.
	 
	10.	 	Any account settled or stated by or between the Agent and/or the other Canadian Credit
Parties and the Canadian Borrower, or, if any such account has not been so settled or stated
immediately before demand for payment under this Guarantee, any account stated by the Agent,
shall be accepted by the undersigned as conclusive evidence (absent manifest error) of the
amount which at the date of the account so settled or stated is due by the Canadian Borrower
to the Agent or remains unpaid by the Canadian Borrower to the Agent and/or the other Canadian
Credit Parties.
	 
	11.	 	The undersigned shall make payment to the Agent of the amount of its liability to the Agent
forthwith after demand therefor is made, in accordance with Section 10.02 of the Credit
Agreement, in writing at its address or telecopier number last known to the Agent. All
payments hereunder shall be made to the Agent pursuant to the terms of the Credit Agreement.
	 
	12.	 	Any and all payments by the undersigned to the Agent and/or the other Canadian Credit Parties
under this Guarantee or the Credit Agreement shall be made free and clear of, and without
deduction or withholding for any Indemnified Taxes unless the undersigned is required to
withhold or deduct taxes in which case paragraph 13 shall apply.
	 
	13. 	 	 

	 	(a)	 	Any and all payments by or on account of any obligation of the undersigned
under this Guarantee shall be made free and clear of and without deduction or
withholding for any Indemnified Taxes or Other Taxes, provided that if the

- 4 -

 

	 	 	 	undersigned shall be required by applicable Law to deduct or withhold, or the Agent
or any other Canadian Credit Party shall be required to remit, any Indemnified
Taxes (including any Other Taxes) from such payments, then (i) the sum payable shall
be increased as necessary so that after making all required deductions, withholdings
or remittances (including deductions, withholdings or remittances applicable to
additional sums payable under this paragraph 13), the applicable Canadian Credit
Party receives an amount equal to the sum it would have received had no such
deductions, withholdings or remittances been made, (ii) the undersigned shall make
such deductions or withholdings and (iii) the undersigned shall timely pay the full
amount deducted or withheld to the relevant Governmental Authority in accordance
with applicable Law.

	 	(b)	 	The undersigned shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable Law.
	 
	 	(c)	 	The undersigned shall indemnify the Agent and each other Canadian Credit Party,
within ten (10) days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this paragraph 13) paid by such
Canadian Credit Party and any penalties, interest and reasonable out-of-pocket expenses
arising therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority and a certificate as to the amount of such payment or liability delivered to
the undersigned by the Agent or any other Canadian Credit Party (with a copy to Agent),
or by the Agent on its own behalf or on behalf of a Canadian Credit Party, shall be
conclusive absent manifest error.
	 
	 	(d)	 	As soon as practicable after any payment of Indemnified Taxes or Other Taxes by
the undersigned to a Governmental Authority, the undersigned shall deliver to the
Agent, the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Agent;

	14.	 	If any provision of this Guarantee is determined in any proceeding in a court of competent
jurisdiction to be void or to be wholly or partly unenforceable, that provision shall for the
purposes of such proceeding, be severed from this Guarantee at the Agent’s option and shall be
treated as not forming a part hereof and all the remaining provisions of this Guarantee shall
remain in full force and be unaffected thereby.
	 
	15.	 	This Guarantee shall not be subject to or affected by any promise or condition affecting or
limiting the liability of the undersigned except as expressly set forth herein and no
statement, representation, agreement or promise on the part of the Agent or any officer,
employee or agent thereof, unless contained herein, forms any part of this contract or has
induced the making thereof or shall be deemed in any way to affect the liability of the
undersigned hereunder.

- 5 -

 

	16.	 	This Guarantee shall extend to and enure to the benefit of the Agent and the other Canadian
Credit Parties and its and their successors and assigns, and shall extend to and be binding
upon the undersigned and its successors and permitted assigns.
	 
	17.	 	It is not necessary for the Agent or the other Canadian Credit Parties to inquire into the
powers of the Canadian Borrower or the undersigned or of the officers, directors, partners, or
agents acting or purporting to act on their behalf, and any Guaranteed Indebtedness made or
created in reliance upon the professed exercise of such powers shall be guaranteed hereunder.
	 
	18.	 	The Agent may, without notice to the undersigned and without affecting the undersigned’s
obligations hereunder, assign the Guaranteed Indebtedness and this Guarantee, in whole or in
part. The undersigned agrees that the Agent and the other Canadian Credit Parties may
disclose to any assignee or purchaser, or any prospective assignee or purchaser, of all or
part of the Guaranteed Indebtedness any and all information in the Agent’s or any other
Canadian Lender’s possession concerning the undersigned, this Guarantee, and any security for
this Guarantee.
	 
	19.	 	If, for the purposes of obtaining judgment in any court in any jurisdiction with respect to
this Guarantee, it becomes necessary to convert into a particular currency (the “Judgment
Currency”) any amount due under this Guarantee in any currency other than the Judgment
Currency (the “Currency Due”), then conversion shall be made at the rate of exchange
prevailing on the Business Day before the day on which judgment is given. For this purpose
“rate of exchange” means the rate at which the Agent is able, on the relevant date, to
purchase the Currency Due with the Judgment Currency in accordance with its normal practice.
In the event that there is a change in the rate of exchange prevailing between the Business
Day before the day on which the judgment is given and the date of receipt by the Agent of the
amount due, the Agent will, on the date of receipt by the Agent, pay such additional amounts,
if any, or be entitled to receive reimbursement of such amount, if any, as may be necessary to
ensure that the amount received by the Agent, on such date, is the amount in the Judgment
Currency which, when converted at the rate of exchange prevailing on the date of receipt by
the Agent, is the amount then due under this Guarantee in the Currency Due. If the amount of
the Currency Due which the Agent is so able to purchase is less than the amount of the
Currency Due originally due to it, the undersigned shall indemnify and save the Agent and the
other Canadian Credit Parties harmless from and against all loss or damage arising as a result
of such deficiency. This indemnity shall constitute an obligation separate and independent
from the other obligations contained in this Guarantee, shall give rise to a separate and
independent cause of action, shall apply irrespective of any indulgence granted by the Agent,
from time to time and shall continue in full force and effect notwithstanding any judgment or
order for a liquidated sum in respect of an amount due under this Guarantee or under any
judgment or order.
	 
	20.	 	If the undersigned is a partnership, this Guarantee shall extend to each Person for the time
being, and from time to time, carrying on the business now being carried on by the undersigned
notwithstanding any change or changes in the name or membership of the partnership or the
incorporation of a company for the purpose of acquiring the business of the partnership and
where the undersigned is a corporation, this Guarantee shall extend to

- 6 -

 

	 	 	any amalgamated or new company formed to take over the business of the undersigned and any
reorganization thereof, whether the new company is the same or different in its objects,
character and constitution.
	 
	21.	 	The undersigned will pay on demand, and will indemnify and save the Agent and the Canadian
Credit Parties harmless from, any and all Credit Party Expenses incurred by or on behalf of
the Agent and the Canadian Credit Parties in connection with or relating to this Guarantee.
	 
	22.	 	All words used herein in the plural shall be deemed to have been used in the singular where
the context and construction so require.
	 
	23.	 	This Guarantee shall be governed by and construed in accordance with the laws of the Province
of Ontario and the laws of Canada applicable therein.
	 
	24.	 	The undersigned acknowledges receipt of an executed copy of this Guarantee.

The parties acknowledge that they have required that this Guarantee and all related documents be
prepared in English.

Les parties reconnaissent avoir exigé que la présente convention et tous les documents connexes
soient rédigés en anglais.

[remainder of page intentionally left blank]

- 7 -

 

Executed
as of this ___ day of                                         , 2009.

	 	 	 	 	 
	 	QS RETAIL CANADA CORP.

 	 
	 	Per:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	Per:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Canadian Guaranteeexv10w6

Exhibit 10.6

 

€268,000,000

FACILITIES AGREEMENT

dated 31 July 2009

among

PILOT SAS

and

NA PALI

as Borrowers

QUIKSILVER, INC.

and

PILOT SAS

as Original Guarantors

and

BNP PARIBAS

CRÉDIT LYONNAIS

and

SOCIÉTÉ GÉNÉRALE CORPORATE & INVESTMENT BANKING

as Mandated Lead Arrangers

and

BNP PARIBAS

as Agent

SOCIÉTÉ GÉNÉRALE

as Security Agent

and

CAISSE REGIONALE DE CRÉDIT AGRICOLE MUTUEL PYRÉNÉES-

GASCOGNE

as Issuing Bank

 

WHITE & CASE LLP

11, boulevard de la Madeleine

75001 Paris

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	SECTION 1 — INTERPRETATION
	 	 	3	 
	 
	1. Definitions and Interpretation
	 	 	3	 
	 
	1.1 Definitions
	 	 	3	 
	 
	1.2 Construction
	 	 	42	 
	 
	 	 	 	 
	SECTION 2 — THE FACILITIES
	 	 	45	 
	 
	 	 	 	 
	2. The Facilities
	 	 	45	 
	 
	2.1 The Facilities
	 	 	45	 
	 
	2.2 Finance Parties’ rights and obligations
	 	 	46	 
	 
	2.3 Obligors’ Agent
	 	 	46	 
	 
	3. Purpose
	 	 	47	 
	 
	3.1 Purpose
	 	 	47	 
	 
	3.2 Monitoring
	 	 	47	 
	 
	4. Conditions of Utilisation
	 	 	47	 
	 
	4.1 Initial conditions precedent
	 	 	47	 
	 
	4.2 Further conditions precedent
	 	 	48	 
	 
	4.3 Conditions relating to Optional Currencies
	 	 	48	 
	 
	4.4 Maximum number of Utilisations
	 	 	48	 
	 
	 	 	 	 
	SECTION 3 — UTILISATION
	 	 	49	 
	 
	5. Utilisation — Loans
	 	 	49	 
	 
	5.1 Delivery of a Utilisation Request
	 	 	49	 
	 
	5.2 Completion of a Utilisation Request for Loans
	 	 	49	 
	 
	5.3 Currency and amount
	 	 	49	 
	 
	5.4 Lenders’ participation
	 	 	50	 
	 
	5.5 Limitations on Utilisations
	 	 	50	 
	 
	5.6 Cancellation of Commitments
	 	 	50	 
	 
	5.7 Clean down
	 	 	50	 
	 
	6. Utilisation — Letters of Credit
	 	 	51	 
	 
	6.1 The L/C Facility
	 	 	51	 
	 
	6.2 Delivery of an L/C Request for Letters of Credit
	 	 	51	 
	 
	6.3 Completion of an L/C Request for Letters of Credit
	 	 	51	 
	 
	6.4 Currency and amount
	 	 	52	 
	 
	6.5 Issuance of Letters of Credit
	 	 	52	 
	 
	6.6 Extension of a Letter of Credit
	 	 	53	 
	 
	6.7 Reduction of a Letter of Credit
	 	 	53	 

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	 	 	Page
	6.8 Revaluation of Letters of Credit
	 	 	54	 
	 
	6.9 Cancellation of L/C Facility Commitments
	 	 	54	 
	 
	7. Letters of Credit
	 	 	54	 
	 
	7.1 Existing Letters of Credit
	 	 	54	 
	 
	7.2 Immediately payable
	 	 	54	 
	 
	7.3 Claims under a Letter of Credit
	 	 	55	 
	 
	7.4 Indemnities
	 	 	55	 
	 
	7.5 Cash collateral by Non-Acceptable L/C Lender
	 	 	57	 
	 
	7.6 Cash cover by Borrower
	 	 	58	 
	 
	7.7 Rights of contribution
	 	 	59	 
	 
	8. Ancillary Facilities
	 	 	59	 
	 
	8.1 Type of Facility
	 	 	59	 
	 
	8.2 Availability
	 	 	59	 
	 
	8.3 Terms of Ancillary Facilities
	 	 	60	 
	 
	8.4 Repayment of Ancillary Facility
	 	 	61	 
	 
	8.5 Ancillary Outstandings
	 	 	62	 
	 
	8.6 Adjustment for Ancillary Facilities upon acceleration
	 	 	62	 
	 
	8.7 Information
	 	 	63	 
	 
	8.8 Revolving Facility Commitment amounts
	 	 	63	 
	 
	SECTION 4 — REPAYMENT, PREPAYMENT AND CANCELLATION
	 	 	63	 
	 
	 	 	 	 
	9. Repayment
	 	 	63	 
	 
	9.1 Repayment of Term Loans
	 	 	63	 
	 
	9.2 Repayment of Revolving Facility Loans
	 	 	64	 
	 
	9.3 Final Repayment
	 	 	65	 
	 
	9.4 Mandatory Cancellation of the Revolving Facility
	 	 	65	 
	 
	10. Illegality, Voluntary Prepayment and Cancellation
	 	 	65	 
	 
	10.1 Illegality
	 	 	65	 
	 
	10.2 Illegality in relation to Issuing Banks
	 	 	65	 
	 
	10.3 Voluntary cancellation
	 	 	66	 
	 
	10.4 Voluntary prepayment of Term Loans
	 	 	66	 
	 
	10.5 Voluntary prepayment of Revolving Facility Utilisations
	 	 	66	 
	 
	10.6 Voluntary prepayment of L/C Facility Utilisations
	 	 	67	 
	 
	10.7 Right of cancellation and repayment in relation to a single Lender or
Issuing Bank
	 	 	67	 
	 
	10.8 Right of cancellation and repayment in relation to a Defaulting Lender

	 	 	67	 
	 
	11. Mandatory Prepayment
	 	 	68	 
	 
	11.1 Exit
	 	 	68	 

ii

 

	 	 	 	 	 
	 	 	Page
	11.2 Disposal, Insurance, Issuance and Reimbursement Proceeds and Excess
Cashflow
	 	 	68	 
	 
	11.3 Application of mandatory prepayments
	 	 	71	 
	 
	11.4 Mandatory Prepayment Accounts
	 	 	73	 
	 
	11.5 Restrictions on Mandatory Prepayments
	 	 	73	 
	 
	11.6 Excluded proceeds
	 	 	74	 
	 
	12. Restrictions
	 	 	74	 
	 
	12.1 Notices of Cancellation or Prepayment
	 	 	74	 
	 
	12.2 Interest and other amounts
	 	 	74	 
	 
	12.3 No reborrowing of Term Facilities
	 	 	74	 
	 
	12.4 Reborrowing of Revolving Facility and the L/C Facility
	 	 	74	 
	 
	12.5 Prepayment in accordance with Agreement
	 	 	74	 
	 
	12.6 No reinstatement of Commitments
	 	 	75	 
	 
	12.7 Agent’s receipt of Notices
	 	 	75	 
	 
	12.8 Effect of Repayment and Prepayment on Commitments
	 	 	75	 
	 
	SECTION 5 — COSTS OF UTILISATION
	 	 	75	 
	 
	13. Interest
	 	 	75	 
	 
	13.1 Calculation of interest
	 	 	75	 
	 
	13.2 Payment of interest
	 	 	75	 
	 
	13.3 Default interest
	 	 	76	 
	 
	13.4 Notification of rates of interest
	 	 	76	 
	 
	13.5 Effective Global Rate (Taux Effectif Global)
	 	 	76	 
	 
	14. Interest Periods
	 	 	77	 
	 
	14.1 Selection of Interest Periods and Terms
	 	 	77	 
	 
	14.2 Non-Business Days
	 	 	77	 
	 
	15. Changes to the Calculation of Interest
	 	 	77	 
	 
	15.1 Absence of quotations
	 	 	77	 
	 
	15.2 Market disruption
	 	 	77	 
	 
	15.3 Alternative basis of interest or funding
	 	 	78	 
	 
	15.4 Break Costs
	 	 	78	 
	 
	16. Fees
	 	 	78	 
	 
	16.1 Commitment fee
	 	 	78	 
	 
	16.2 Arrangement, Participation and Coordination fees
	 	 	79	 
	 
	16.3 Agency fee
	 	 	79	 
	 
	16.4 Security Agent fee
	 	 	79	 
	 
	16.5 Fees payable in respect of Letters of Credit
	 	 	79	 
	 
	16.6 Interest, commission and fees on Ancillary Facilities
	 	 	80	 

iii

 

	 	 	 	 	 
	 	 	Page
	SECTION 6 — ADDITIONAL PAYMENT OBLIGATIONS
	 	 	80	 
	 
	 	 	 	 
	17. Tax Gross Up and Indemnities
	 	 	80	 
	 
	17.1 Definitions
	 	 	80	 
	 
	17.2 Tax gross-up
	 	 	81	 
	 
	17.3 Tax indemnity
	 	 	82	 
	 
	17.4 Tax Credit
	 	 	82	 
	 
	17.5 Stamp taxes
	 	 	83	 
	 
	17.6 Value added tax
	 	 	83	 
	 
	18. Increased Costs
	 	 	83	 
	 
	18.1 Increased costs
	 	 	83	 
	 
	18.2 Increased cost claims
	 	 	84	 
	 
	18.3 Exceptions
	 	 	84	 
	 
	19. Other Indemnities
	 	 	84	 
	 
	19.1 Currency indemnity
	 	 	84	 
	 
	19.2 Other indemnities
	 	 	85	 
	 
	19.3 Indemnity to the Agent
	 	 	86	 
	 
	19.4 Indemnity to the Security Agent
	 	 	86	 
	 
	20. Mitigation by The Lenders
	 	 	86	 
	 
	20.1 Mitigation
	 	 	86	 
	 
	20.2 Limitation of liability
	 	 	86	 
	 
	21. Costs and Expenses
	 	 	87	 
	 
	21.1 Transaction expenses
	 	 	87	 
	 
	21.2 Amendment costs
	 	 	87	 
	 
	21.3 Enforcement and preservation costs
	 	 	87	 
	 
	SECTION 7 — REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT
	 	 	87	 
	 
	22. Representations
	 	 	87	 
	 
	22.1 General
	 	 	87	 
	 
	22.2 Status
	 	 	88	 
	 
	22.3 Binding obligations
	 	 	88	 
	 
	22.4 Non-conflict with other obligations
	 	 	88	 
	 
	22.5 Power and authority
	 	 	88	 
	 
	22.6 Validity and admissibility in evidence
	 	 	89	 
	 
	22.7 Governing law and enforcement
	 	 	89	 
	 
	22.8 Insolvency
	 	 	89	 
	 
	22.9 No filing or stamp taxes
	 	 	89	 
	 
	22.10 Deduction of Tax
	 	 	90	 
	 
	22.11 No default
	 	 	90	 

iv

 

	 	 	 	 	 
	 	 	Page
	22.12 No misleading information
	 	 	90	 
	 
	22.13 Financial Statements
	 	 	91	 
	 
	22.14 No proceedings pending or threatened
	 	 	92	 
	 
	22.15 No breach of laws
	 	 	92	 
	 
	22.16 Environmental laws
	 	 	92	 
	 
	22.17 Taxation
	 	 	92	 
	 
	22.18 Security and Financial Indebtedness
	 	 	93	 
	 
	22.19 Ranking
	 	 	93	 
	 
	22.20 Good title to assets
	 	 	93	 
	 
	22.21 Legal and beneficial ownership
	 	 	93	 
	 
	22.22 Shares
	 	 	93	 
	 
	22.23 Intellectual Property
	 	 	93	 
	 
	22.24 Structure Chart
	 	 	94	 
	 
	22.25 Accounting reference date
	 	 	94	 
	 
	22.26 Centre of main interests and establishments
	 	 	94	 
	 
	22.27 Pensions
	 	 	94	 
	 
	22.28 No adverse consequences
	 	 	94	 
	 
	22.29 Existing guarantees and off-balance sheet liabilities
	 	 	95	 
	 
	22.30 Equity capital of Pilot
	 	 	95	 
	 
	22.31 Investment Company Act
	 	 	95	 
	 
	22.32 Carried Forward Tax Losses
	 	 	95	 
	 
	22.33 J.P. Morgan Guarantee
	 	 	95	 
	 
	22.34 Times when representations made
	 	 	95	 
	 
	23. Information Undertakings
	 	 	96	 
	 
	23.1 Financial statements
	 	 	97	 
	 
	23.2 Provision and contents of Compliance Certificate
	 	 	97	 
	 
	23.3 Requirements as to financial statements
	 	 	97	 
	 
	23.4 Business Plan
	 	 	99	 
	 
	23.5 Budget
	 	 	99	 
	 
	23.6 Material Subsidiaries
	 	 	100	 
	 
	23.7 Presentations
	 	 	100	 
	 
	23.8 Year-end
	 	 	100	 
	 
	23.9 Information: miscellaneous
	 	 	100	 
	 
	23.10 Notification of default
	 	 	101	 
	 
	23.11 “Know your customer” checks
	 	 	101	 
	 
	24. Financial Covenants
	 	 	102	 
	 
	24.1 Financial definitions
	 	 	102	 

v

 

	 	 	 	 	 
	 	 	Page
	24.2 Financial condition
	 	 	106	 
	 
	24.3 Financial testing
	 	 	107	 
	 
	25. General Undertakings
	 	 	107	 
	 
	25.1 Authorisations
	 	 	107	 
	 
	25.2 Compliance with laws
	 	 	108	 
	 
	25.3 Environmental compliance
	 	 	108	 
	 
	25.4 Environmental claims
	 	 	108	 
	 
	25.5 Taxation
	 	 	108	 
	 
	25.6 Merger
	 	 	109	 
	 
	25.7 Change of business
	 	 	109	 
	 
	25.8 Acquisitions
	 	 	110	 
	 
	25.9 Joint ventures
	 	 	110	 
	 
	25.10 Preservation of assets
	 	 	110	 
	 
	25.11 Pari passu ranking
	 	 	110	 
	 
	25.12 Negative pledge
	 	 	110	 
	 
	25.13 Disposals
	 	 	111	 
	 
	25.14 Arm’s length basis
	 	 	111	 
	 
	25.15 Loans or credit
	 	 	112	 
	 
	25.16 No Guarantees or indemnities or off-balance sheet liabilities
	 	 	112	 
	 
	25.17 Dividends and share redemption
	 	 	112	 
	 
	25.18 Royalties
	 	 	113	 
	 
	25.19 Capital Expenditure
	 	 	113	 
	 
	25.20 Financial Indebtedness
	 	 	113	 
	 
	25.21 Miscellaneous
	 	 	115	 
	 
	25.22 Insurance
	 	 	115	 
	 
	25.23 Access
	 	 	115	 
	 
	25.24 Intellectual Property
	 	 	116	 
	 
	25.25 Amendments
	 	 	116	 
	 
	25.26 Treasury Transactions
	 	 	116	 
	 
	25.27 Further assurance
	 	 	117	 
	 
	25.28 Equity capital of Pilot
	 	 	117	 
	 
	25.29 Banks accounts
	 	 	118	 
	 
	25.30 Post-signing conditions
	 	 	118	 
	 
	25.31 Post-closing conditions
	 	 	118	 
	 
	25.32 DC Shoes Disposal Proceeds
	 	 	118	 
	 
	25.33 Factoring
	 	 	119	 

vi

 

	 	 	 	 	 
	 	 	Page
	25.34 Subordinated Debt
	 	 	119	 
	 
	26. Events of Default
	 	 	119	 
	 
	26.1 Non-payment
	 	 	119	 
	 
	26.2 Financial covenants and other obligations
	 	 	120	 
	 
	26.3 Other obligations
	 	 	120	 
	 
	26.4 Misrepresentation
	 	 	120	 
	 
	26.5 Cross default
	 	 	120	 
	 
	26.6 Insolvency
	 	 	122	 
	 
	26.7 Insolvency of TopCo Obligors
	 	 	122	 
	 
	26.8 Insolvency proceedings
	 	 	123	 
	 
	26.9 Creditors’ process
	 	 	123	 
	 
	26.10 Unlawfulness and invalidity
	 	 	124	 
	 
	26.11 Intercreditor Agreements
	 	 	124	 
	 
	26.12 Cessation of business
	 	 	124	 
	 
	26.13 Audit qualification
	 	 	124	 
	 
	26.14 Expropriation
	 	 	124	 
	 
	26.15 Litigation
	 	 	125	 
	 
	26.16 Material adverse change
	 	 	125	 
	 
	26.17 Cessation of tax consolidation of the Group
	 	 	125	 
	 
	26.18 Carried forward tax losses
	 	 	125	 
	 
	26.19 Equity capital of Pilot
	 	 	125	 
	 
	26.20 NP Cash Collateral Release
	 	 	126	 
	 
	26.21 Acceleration
	 	 	126	 
	 
	SECTION 8 — CHANGES TO PARTIES
	 	 	127	 
	 
	 	 	 	 
	27. Changes to the Lenders
	 	 	127	 
	 
	27.1 Assignments and transfers by the Lenders
	 	 	127	 
	 
	27.2 Conditions of assignment or transfer
	 	 	127	 
	 
	27.3 Assignment or transfer fee
	 	 	128	 
	 
	27.4 Limitation of responsibility of Existing Lenders
	 	 	128	 
	 
	27.5 Procedure for transfer
	 	 	129	 
	 
	27.6 Copy of Transfer Agreement to Company
	 	 	130	 
	 
	27.7 Security on Lenders’ rights
	 	 	130	 
	 
	28. Changes to the Obligors
	 	 	131	 
	 
	28.1 Assignment and transfers by Obligors
	 	 	131	 
	 
	28.2 Additional Guarantors
	 	 	131	 
	 
	28.3 Repetition of Representations
	 	 	131	 
	 
	SECTION 9 — THE FINANCE PARTIES
	 	 	132	 

vii

 

	 	 	 	 	 
	 	 	Page
	29. Role of the Agent, the Arrangers, the Issuing Banks and others
	 	 	132	 
	 
	29.1 Appointment of the Agent
	 	 	132	 
	 
	29.2 Duties of the Agent
	 	 	132	 
	 
	29.3 Role of the Arrangers
	 	 	132	 
	 
	29.4 No fiduciary duties
	 	 	132	 
	 
	29.5 Business with the Group
	 	 	133	 
	 
	29.6 Rights and discretions
	 	 	133	 
	 
	29.7 Majority Lenders’ instructions
	 	 	134	 
	 
	29.8 Responsibility for documentation
	 	 	134	 
	 
	29.9 Exclusion of liability
	 	 	135	 
	 
	29.10 Lenders’ indemnity to the Agent
	 	 	135	 
	 
	29.11 Resignation of the Agent
	 	 	135	 
	 
	29.12 Replacement of the Agent
	 	 	136	 
	 
	29.13 Confidentiality
	 	 	136	 
	 
	29.14 Relationship with the Lenders
	 	 	137	 
	 
	29.15 Credit appraisal by the Lenders, Issuing Banks and Ancillary Lenders

	 	 	137	 
	 
	29.16 Reference Banks
	 	 	138	 
	 
	29.17 Agent’s management time
	 	 	138	 
	 
	29.18 Deduction from amounts payable by the Agent
	 	 	138	 
	 
	29.19 Reliance and engagement letters
	 	 	138	 
	 
	30. Conduct of Business by the Finance Parties
	 	 	139	 
	 
	31. Sharing among the Finance Parties
	 	 	139	 
	 
	31.1 Payments to Finance Parties
	 	 	139	 
	 
	31.2 Redistribution of payments
	 	 	139	 
	 
	31.3 Recovering Finance Party’s rights
	 	 	139	 
	 
	31.4 Reversal of redistribution
	 	 	140	 
	 
	31.5 Exceptions
	 	 	140	 
	 
	31.6 Ancillary Lenders
	 	 	140	 
	 
	SECTION 10 — ADMINISTRATION
	 	 	141	 
	 
	32. Payment Mechanics
	 	 	141	 
	 
	32.1 Payments to the Agent
	 	 	141	 
	 
	32.2 Distributions by the Agent
	 	 	141	 
	 
	32.3 Distributions to an Obligor
	 	 	141	 
	 
	32.4 Clawback
	 	 	142	 
	 
	32.5 Impaired Agent
	 	 	142	 
	 
	32.6 Partial payments
	 	 	142	 
	 
	32.7 No set-off by Obligors
	 	 	143	 

viii

 

	 	 	 	 	 
	 	 	Page
	32.8 Business Days
	 	 	143	 
	 
	32.9 Currency of account
	 	 	143	 
	 
	32.10 Change of currency
	 	 	144	 
	 
	32.11 Disruption to Payment Systems etc.
	 	 	144	 
	 
	33. Set-Off
	 	 	145	 
	 
	34. Notices
	 	 	145	 
	 
	34.1 Communications in writing
	 	 	145	 
	 
	34.2 Addresses
	 	 	145	 
	 
	34.3 Delivery
	 	 	145	 
	 
	34.4 Notification of address and fax number
	 	 	146	 
	 
	34.5 Communication when Agent is Impaired Agent
	 	 	146	 
	 
	34.6 Electronic communication
	 	 	146	 
	 
	34.7 Use of websites
	 	 	147	 
	 
	34.8 English language
	 	 	148	 
	 
	35. Calculations and Certificates
	 	 	148	 
	 
	35.1 Accounts
	 	 	148	 
	 
	35.2 Certificates and determinations
	 	 	148	 
	 
	35.3 Day count convention
	 	 	148	 
	 
	36. Partial Invalidity
	 	 	148	 
	 
	37. Remedies And Waivers
	 	 	148	 
	 
	38. Amendments and Waivers
	 	 	149	 
	 
	38.1 Required consents
	 	 	149	 
	 
	38.2 Technical Amendments
	 	 	149	 
	 
	38.3 Exceptions
	 	 	149	 
	 
	38.4 Replacement of Lenders
	 	 	150	 
	 
	38.5 Disenfranchisement of Defaulting Lenders
	 	 	151	 
	 
	38.6 Replacement of a Defaulting Lender
	 	 	152	 
	 
	39. Confidentiality
	 	 	152	 
	 
	39.1 Confidential Information
	 	 	152	 
	 
	39.2 Disclosure of Confidential Information
	 	 	153	 
	 
	39.3 Entire agreement
	 	 	154	 
	 
	SECTION 11 — GOVERNING LAW AND ENFORCEMENT
	 	 	154	 
	 
	 	 	 	 
	40. Governing Law
	 	 	154	 
	 
	41. Enforcement — Jurisdiction of French Courts
	 	 	154	 
	 
	42. Election of Domicile
	 	 	155	 
	 
	 	 	 	 
	SECTION 12 — MISCELLANEOUS
	 	 	155	 
	 
	 	 	 	 
	43. Limited
Recourse against QSH
	 	 	155	 

ix

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	44. Additional Working Capital Financing Exceptions
	 	 	155	 
	 
	 	 	 	 
	Schedule 1 The Original Lenders
	 	 	156	 
	 	 
	 	 	 	 	 
	Schedule 2 Conditions Precedent
	 	 	157	 
	 	 
	 	 	 	 	 
	 	Part I  
	Conditions precedent to signing of this Agreement	 	 	157	 
	 	 
	 	 	 	 	 
	 	Part II  
	  Conditions precedent to the first Utilisation of the
Facilities	 	 	160	 
	 	 
	 	 	 	 	 
	 	Part III  

	Conditions precedent to any Utilisation of a Facility	 	 	165	 
	 	 
	 	 	 	 	 
	 	Part IV  
	Conditions precedent required to be delivered by an
Additional Guarantor (other than Biarritz Holdings, Quiksilver Europa and
QSH)	 	 	166	 
	 	 
	 	 	 	 	 
	 	Part V  
	Transaction Security Documents and security related
documents to be delivered on the Closing Date	 	 	168	 
	 	 
	 	 	 	 	 
	 	Part VI  
	Transaction Security Documents and security related
documents to be delivered by the Additional Guarantors (other than
Biarritz Holdings, Quiksilver Europa and QSH)	 	 	171	 
	 	 
	 	 	 	 	 
	Schedule 3 Requests
	 	 	172	 
	 	 
	 	 	 	 	 
	 
	 	Part I  
	Utilisation Request Loans	 	 	172	 
	 
	 	Part II  
	L/C Request Letters of Credit	 	 	174	 
	 
	 	Part III  
	Selection Notice	 	 	176	 
	 	 
	 	 	 	 	 
	Schedule 4 Mandatory Cost Formula
	 	 	177	 
	 	 
	 	 	 	 	 
	Schedule 5 Form of Transfer Agreement
	 	 	180	 
	 	 
	 	 	 	 	 
	Schedule 6 Form of Accession Letter
	 	 	183	 
	 	 
	 	 	 	 	 
	Schedule 7 Form of Compliance Certificate
	 	 	185	 
	 	 
	 	 	 	 	 
	Schedule 8 Timetables
	 	 	187	 
	 	 
	 	 	 	 	 
	 	Part I  
	Loans	 	 	187	 
	 
	 	Part II  
	Letters of Credit	 	 	188	 
	 	 
	 	 	 	 	 
	Schedule 9 Material Subsidiaries
	 	 	189	 
	 	 
	 	 	 	 	 
	Schedule 10 Agreed Security Principles
	 	 	190	 
	 	 
	 	 	 	 	 
	Schedule 11 List of Securities
	 	 	192	 
	 	 
	 	 	 	 	 
	Schedule 12 List of Loans
	 	 	196	 
	 	 
	 	 	 	 	 
	Schedule 13 Guarantees and Off-Balance Sheet Liabilities
	 	 	198	 
	 	 
	 	 	 	 	 
	Schedule 14 Existing Financial Indebtedness
	 	 	201	 
	 	 
	 	 	 	 	 
	Schedule 15 Existing Letters of Credit
	 	 	203	 

x

 

THIS AGREEMENT is dated 31 July 2009 and made between:

	(1)	 	PILOT SAS, a société par actions simplifiée with a share capital of €124,813,632, whose
registered office is at 26/28 rue Danielle Casanova, 75002 Paris, registered under the unique
identification number 070 501 374 RCS Paris (“Pilot” or the “Company”) as borrower and
original guarantor;
	 
	(2)	 	NA PALI, a société par actions simplifiée, with a share capital of €3,444,300, whose
registered office is at 162, rue Belharra, 64500 Saint Jean-de-Luz, registered under the
unique identification number 331 377 036 RCS Bayonne (“Na Pali”) as borrower;
	 
	(3)	 	QUIKSILVER, INC., a corporation incorporated under the laws of the State of Delaware, United
States of America, whose registered office is at 15202 Graham Street, Huntington Beach,
California 92649, United States of America (“Quiksilver, Inc.”) as original guarantor;
	 
	(4)	 	BNP PARIBAS, a société anonyme with a share capital of €2,508,353,266, organized and existing
under the laws of the French Republic, whose registered office is at 16, boulevard des
Italiens, 75009 Paris, registered at the trade registry of Paris under number 662 042 449 RCS
Paris, CRÉDIT LYONNAIS, a société anonyme with a share capital of €1,847,857,783, organized
and existing under the laws of the French Republic, whose registered office is at 18 rue de la
République, 69002 Lyon, with a head office at 19 boulevard des Italiens, 75002 Paris,
registered at the trade registry of Lyon under number 954 509 741 RCS Lyon and SOCIÉTÉ
GÉNÉRALE CORPORATE & INVESTMENT BANKING, a société anonyme with a share capital of
€812,925,836.25, organized and existing under the laws of the French Republic, whose
registered office is at 29 boulevard Haussmann, 75009 Paris, registered at the trade registry
of Paris under number 552 120 222 RCS Paris, as mandated lead arrangers (together the
“Arrangers”);
	 
	(5)	 	THE FINANCIAL INSTITUTIONS listed in Schedule 1 (The Original Lenders) as lenders (the
“Original Lenders”);
	 
	(6)	 	BNP PARIBAS, as agent of the other Finance Parties (the “Agent”); and
	 
	(7)	 	CAISSE RéGIONALE DE CRéDIT AGRICOLE MUTUEL PYRéNéES- GASCOGNE, a société anonyme with a share
capital of €42,999,250, organized and existing under the laws of the French Republic, whose
registered office is at 11 boulevard du President Kennedy, 65000 Tarbes, registered at the
trade registry of Tarbes under number 776 983 546 RCS Tarbes, as Issuing Bank.

2

 

IT IS AGREED as follows:

SECTION 1 — INTERPRETATION

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions

In this Agreement:

“Acceptable Bank” means:

	(a)	 	a bank or financial institution which has a rating for its long-term unsecured and non
credit-enhanced debt obligations of A or higher by Standard & Poor’s Rating Services or Fitch
Ratings Ltd or A2 or higher by Moody’s Investor Services Limited or a comparable rating from
an internationally recognised credit rating agency; or
	 
	(b)	 	any Finance Party and other bank or financial institution approved by the Agent.

“Acceptable Master Agreement” means the 1992 or the 2002 Multicurrency — Cross Border Master
Agreement published by the International Swaps and Derivatives Association, the AFB 1994 Master
Agreement entitled “Convention Cadre relative aux Opérations de Marché à Terme”, the FBF 2001
Master Agreement entitled “Convention Cadre FBF relative aux Opérations sur Instruments Financiers
à Terme” or any other form agreed by the Agent and the Security Agent.

“Accession Letter” means a document substantially in the form set out in Schedule 6 (Form of
Accession Letter).

“Accounting Principles” means (i) with respect to the financial statements of QSH, Biarritz
Holdings, Quiksilver Europa and the Credit Obligors (excluding the Pilot Consolidated Financial
Statements), generally accepted accounting principles as in effect from time to time in their
respective jurisdictions of organization and (ii) US GAAP with respect to the financial statements
of Quiksilver, Inc. and the Pilot Consolidated Financial Statements.

“Accounting Reference Date” means 31 October.

“Addendum to the Structure Memorandum” means the addendum to the Structure Memorandum prepared by
Skadden, Arps, Slate, Meagher & Flom LLP, addressed to, and/or capable of being relied upon by, the
Reliance Parties and referred to in Part II of Schedule 2 (Conditions Precedent).

“Additional Cost Rate” has the meaning given to that term in Schedule 4 (Mandatory Cost Formula).

“Additional Guarantor” means (i) on the Closing Date, QSH (as “caution réelle” only), Biarritz
Holdings and Quiksilver Europa and (ii) otherwise, a company which becomes a Guarantor in
accordance with Clause 28 (Changes to the Obligors).

“Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding Company of
that person or any other Subsidiary of that Holding Company.

3

 

“Agent’s Spot Rate of Exchange” means the Agent’s spot rate of exchange for the purchase of the
relevant currency with the Base Currency in the Paris foreign exchange market at or about 11:00
a.m. on a particular day.

“Agreed Security Principles” means the principles set out in Schedule 10 (Agreed Security
Principles).

“Ancillary Commencement Date” means, in relation to an Ancillary Facility, the date on which that
Ancillary Facility is first made available, which date shall be a Business Day within the
Availability Period for the Revolving Facility.

“Ancillary Commitment” means, in relation to an Ancillary Lender and an Ancillary Facility, the
maximum Base Currency Amount which that Ancillary Lender has agreed (whether or not subject to
satisfaction of conditions precedent) to make available from time to time under an Ancillary
Facility and which has been authorised as such under Clause 8 (Ancillary Facilities), to the extent
that amount is not cancelled or reduced under this Agreement or the Ancillary Documents relating to
that Ancillary Facility.

“Ancillary Document” means each document relating to or evidencing the terms of an Ancillary
Facility.

“Ancillary Facility” means any ancillary facility made available by an Ancillary Lender in
accordance with Clause 8 (Ancillary Facilities).

“Ancillary Lender” means the Lender which manages the cash pooling scheme of the Group pursuant to
the Cash Pooling Agreement and makes available an Ancillary Facility in accordance with Clause 8
(Ancillary Facilities).

“Ancillary Outstandings” means, at any time, in relation to an Ancillary Lender and an Ancillary
Facility then in force the aggregate of the equivalents (as calculated by that Ancillary Lender) in
the Base Currency of the following amounts outstanding under that Ancillary Facility:

	(a)	 	the principal amount under each overdraft facility and on-demand short term loan facility
(net of any credit balances on any account of any Borrower of an Ancillary Facility with the
Ancillary Lender making available that Ancillary Facility to the extent that the credit
balances are freely available to be set off by that Ancillary Lender against liabilities owed
to it by that Borrower under that Ancillary Facility);
	 
	(b)	 	the face amount of each guarantee, bond and letter of credit under that Ancillary Facility;
and
	 
	(c)	 	the amount fairly representing the aggregate exposure (excluding interest and similar
charges) of that Ancillary Lender under each other type of accommodation provided under that
Ancillary Facility,

in each case as determined by such Ancillary Lender, acting reasonably in accordance with its
normal banking practice and in accordance with the relevant Ancillary Document.

“Annual Pilot Consolidated Financial Statements” has the meaning given to that term in Clause 23
(Information Undertakings).

4

 

“Approved Jurisdiction” shall mean any member state of the European Union, any of Turkey, China,
Vietnam, Indonesia, Malaysia, India, Pakistan, Bangladesh, Thailande, Hong Kong, Taiwan, South
Korea, Laos, Macao, Algeria, Morocco, Tunisia, Japan and Egypt or any other country approved by the
Issuing Banks.

“Auditors” means Deloitte & Touche LLP and its Affiliates or any other firm approved in advance by
the Majority Lenders (such approval not to be unreasonably withheld or delayed).

“Authorisation” means an authorisation, consent, approval, resolution, licence, exemption, filing,
notarisation or registration.

“Availability Period” means:

	(a)	 	in relation to each Term Facility, the period from and including the date of this Agreement
to and including 29 September 2009;
	 
	(b)	 	in relation to the Revolving Facility, the period from and including the Closing Date to and
including the date falling one month prior to the Termination Date; and
	 
	(c)	 	in relation to the L/C Facility, the period from and including the Closing Date to and
including the date falling one month prior to the Termination Date.

“Available Ancillary Commitment” means in relation to an Ancillary Facility, an Ancillary Lender’s
Ancillary Commitment less the Ancillary Outstandings in relation to that Ancillary Facility.

“Available Commitment” means, in relation to a Facility, a Lender’s Commitment under that Facility
minus:

	(a)	 	the Base Currency Amount of its participation in any outstanding Utilisations under that
Facility and, in the case of the Revolving Facility only, the Base Currency Amount of the
aggregate of its Ancillary Commitments; and
	 
	(b)	 	in relation to any proposed Utilisation, the Base Currency Amount of its participation in any
other Utilisations that are due to be made under that Facility on or before the proposed
Utilisation Date and, in the case of the Revolving Facility only, the Base Currency Amount of
its Ancillary Commitment in relation to any new Ancillary Facility that is due to be made
available on or before the proposed Utilisation Date.

For the purposes of calculating a Lender’s Available Commitment in relation to any proposed
Utilisation under the Revolving Facility only, the following amounts shall not be deducted from a
Lender’s Commitment under that Facility:

	 	(i)	 	that Lender’s participation in any Revolving Facility Utilisations that are due
to be repaid or prepaid on or before the proposed Utilisation Date; and
	 
	 	(ii)	 	that Lender’s Ancillary Commitments to the extent that they are due to be
reduced or cancelled on or before the proposed Utilisation Date.

For the purposes of calculating a Lender’s Available Commitment in relation to any proposed
Utilisation under the L/C Facility only, that Lender’s participation in Letters of Credit that are

5

 

due to be cancelled on or before the proposed Utilisation Date shall not be deducted from that
Lender’s Commitment under that Facility.

“Available Facility” means, in relation to a Facility, the aggregate for the time being of each
Lender’s Available Commitment in respect of that Facility.

“Base Currency” means the euro.

“Base Currency Amount” means:

	(a)	 	in relation to a Utilisation, the amount specified in the Utilisation Request delivered by a
Borrower for that Utilisation (or, if the amount requested is not denominated in the Base
Currency, that amount converted into the Base Currency at the Agent’s Spot Rate of Exchange on
the date which is three Business Days before the Utilisation Date or, if later, on the date
the Agent receives the Utilisation Request in accordance with the terms of this Agreement)
and, in the case of a Letter of Credit, as adjusted under Clause 6.8 (Revaluation of Letters
of Credit) at six-monthly intervals; and
	 
	(b)	 	in relation to an Ancillary Commitment, the amount specified as such in the notice delivered
to the Agent by the Company pursuant to Clause 8.2 (Availability) (or, if the amount specified
is not denominated in the Base Currency, that amount converted into the Base Currency at the
Agent’s Spot Rate of Exchange on the date which is three Business Days before the Ancillary
Commencement Date for that Ancillary Facility or, if later, the date the Agent receives the
notice of the Ancillary Commitment in accordance with the terms of this Agreement),

as adjusted to reflect any repayment, prepayment, consolidation or division of a Utilisation, or
(as the case may be) cancellation or reduction of an Ancillary Facility.

“Biarritz Holdings” means Biarritz Holdings S.à r.l., a Luxembourg société à responsabilité
limitée, with a share capital of €1,344,530, whose registered office is at 9-11 rue Louvigny,
L-1946 Luxembourg, registered with the Luxembourg Registre de Commerce et des Sociétés under number
B 147.205.

“Borrowers” means the Company and Na Pali and “Borrower” means any of them.

“Borrowings” has the meaning given to that term in Clause 24.1 (Financial definitions).

“Break Costs” means the amount (if any) by which:

	(a)	 	the interest excluding the Margin which a Lender should have received for the period from the
date of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last
day of the current Interest Period in respect of that Loan or Unpaid Sum, had the principal
amount or Unpaid Sum received been paid on the last day of that Interest Period;

exceeds:

	(b)	 	the amount which that Lender would be able to obtain by placing an amount equal to the
principal amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant
Interbank Market for a period starting on the Business Day following receipt or recovery and
ending on the last day of the current Interest Period.

6

 

“Budget” means:

	(a)	 	in relation to the period beginning on 1 November 2008 and ending on 31 October 2009, the
budget delivered by the Company to the Agent pursuant to paragraph 4(f) of Part I of Schedule
2 (Conditions Precedent); and

	(b)	 	in relation to any other period, any budget delivered by the Company to the Agent in respect
of that period pursuant to Clause 23.5 (Budget).

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general
business in Paris and:

	(a)	 	(in relation to any date for payment or purchase of a currency other than euro) the principal
financial centre of the country of that currency; or

	(b)	 	(in relation to any date for payment or purchase of euro) any TARGET Day.

“Business Plan” means:

	(a)	 	in relation to the period beginning on the date of this Agreement and ending on 31 October
2013, the Initial Business Plan; and

	(b)	 	in relation to any other period, any business plan delivered by the Company to the Agent
pursuant to Clause 23.4 (Business Plan) in the same format as the one delivered pursuant to
the definition of “Initial Business Plan”.

“Capex Basket” has the meaning given to that term in Clause 25.19 (Capital Expenditure).

“Capital Expenditure” has the meaning given to that term in Clause 24.1 (Financial definitions).

“Carried Forward Tax Losses” has the meaning given to that term in Clause 22.32 (Carried Forward
Tax Losses).

“Cash” means, at any time, the amount of cash (converted into the Base Currency at the Agent’s Spot
Rate of Exchange at the relevant time) in hand or at bank and (in the latter case) credited to an
account in the name of a member of the Group with an Acceptable Bank and to which a member of the
Group is alone (or together with other members of the Group) beneficially entitled and for so long
as:

	(a)	 	that cash is repayable on demand;

	(b)	 	repayment of that cash is not contingent on the prior discharge of any other indebtedness of
any member of the Group or of any other person whatsoever or on the satisfaction of any other
condition;

	(c)	 	there is no Security over that cash except for Transaction Security or any Permitted Security
constituted by a netting or set-off arrangement entered into by members of the Group in the
ordinary course of their banking arrangements; and

	(d)	 	the cash is freely and immediately available to be applied in repayment or prepayment of the
Facilities.

7

 

“Cash Collateral Agreement” means the cash collateral agreement dated 9 December 2008 entered into
between Na Pali and JPMorgan Chase, NA, London Branch and JP Morgan Europe Limited as
beneficiaries.

“Cash Equivalent Investments” means at any time the amount (converted into the Base Currency at the
Agent’s Spot Rate of Exchange at the relevant time) of:

	(a)	 	certificates of deposit maturing within one year after the relevant date of calculation and
issued by an Acceptable Bank;

	(b)	 	any investment in marketable debt obligations issued or guaranteed by the government of the
United States of America, the United Kingdom, any member state of the European Economic Area
or any Participating Member State or by an instrumentality or agency of any of them having an
equivalent credit rating, maturing within one year after the relevant date of calculation and
not convertible or exchangeable to any other security;

	(c)	 	commercial paper not convertible or exchangeable to any other security:

	 	(i)	 	for which a recognised trading market exists;
	 
	 	(ii)	 	issued by an issuer incorporated in the United States of America, the United
Kingdom, any member state of the European Economic Area or any Participating Member
State;
	 
	 	(iii)	 	which matures within one year after the relevant date of calculation; and
	 
	 	(iv)	 	which has a credit rating of either A-1 or higher by Standard & Poor’s Rating
Services or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investor
Services Limited, or, if no rating is available in respect of the commercial paper, the
issuer of which has, in respect of its long-term unsecured and non-credit enhanced debt
obligations, an equivalent rating;

	(d)	 	any investment in money market funds which (i) have a credit rating of either A-1 or higher
by Standard & Poor’s Rating Services or F1 or higher by Fitch Ratings Ltd or P-1 or higher by
Moody’s Investor Services Limited, (ii) which invest substantially all their assets in
securities of the types described in paragraphs (a) to (d) above and (iii) can be turned into
cash on not more than 30 days’ notice; or

	(e)	 	any other debt security approved by the Majority Lenders (acting reasonably),

in each case, to which any member of the Group is alone (or together with other members of the
Group) beneficially entitled at that time and which is not issued or guaranteed by any member of
the Group or subject to any Security (other than Security arising under the Transaction Security
Documents).

“Cashflow” has the meaning given to that term in Clause 24.1 (Financial definitions).

“Cash Pooling Agreement” means:

	(a)	 	the cash pooling agreement dated 1 May 1997 initially concluded by Na Pali with the following
of its then direct and indirect Subsidiaries: Sumbawa Sarl, Gen X

8

 

	 	 	
Publishing Limited, Molokai Limited, Emerald Coast Europe SARL, Kauai GmbH and Lanai Limited
as well as the adherence forms executed by Cariboo SARL (22 April 1998), Namotu Limited (31
October 2001), SCI Tavarua (31 October 2003), Zebraska SARL and DC Europe SARL (31 October
2004);
	 
	(b)	 	the cash pooling agreement dated 11 July 2000 between Na Pali and its then direct Subsidiary
Gotcha Europe SA;
	 
	(c)	 	the cash pooling agreement dated 3 November 2003 initially concluded by Na Pali with the
following of its then direct and indirect Subsidiaries: Sumbawa SL, Bakio SL, Kauai GmbH,
Makaha GmbH, Pukalani BV, Tuvalu BV, Haapiti SRL and Moorea SRL as well as the adherence forms
executed by Kiribati Lda (1 November 2005), Hanalei (23 May 2006), Pilot (1 March 2008),
Vanuatu GmbH, Lumahai BVBA, Waimea BVBA and Namotu Ltd (16 October 2007);
	 
	(d)	 	the cash pooling agreement dated 1 October 2006 between Na Pali and Tanna SARL dated 1
October 2006;
	 
	(e)	 	the cash pooling agreement dated 31 October 2006 between Na Pali and Tyax SNC;
	 
	(f)	 	the cash pooling agreement dated 28 May 2007 between Na Pali and Kokolo SAS;
	 
	(g)	 	the cash pooling agreement dated 16 October 2007 between Na Pali and Tuamotu;

and any supplement thereto or replacement thereof

“Change of Control” means

	 	(i)	 	(x) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such
person or its subsidiaries, and any person or entity acting in its capacity as trustee,
agent or other fiduciary or administrator of any such plan) other than Rhône Capital
III L.P. and its Affiliates becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Securities Exchange Act of 1934, except that a person or group
shall be deemed to have “beneficial ownership” of all securities that such person or
group has the right to acquire, whether such right is exercisable immediately or only
after the passage of time (such right, an “option right”)), directly or indirectly, of
more than 35% of the equity interests of Quiksilver, Inc. entitled to vote for members
of the board of directors or equivalent governing body of Quiksilver, Inc. on a
fully-diluted basis (and taking into account all such equity interests that such
“person” or “group” has the right to acquire pursuant to any option right); or
	 
	 		 	(y) during any period of twelve (12) consecutive months, a majority of the members
of the board of directors or other equivalent governing body of Quiksilver, Inc.
ceases to be composed of individuals (i) who were members of such board or
equivalent governing body on the first day of such period, (ii) whose election or
nomination to such board or equivalent governing body was approved by individuals
referred to in preceding sub-clause (i) constituting at the time of such election or
nomination at least a majority of such board or

9

 

	 	 	 	equivalent governing body or (iii) whose election or nomination to such board or
other equivalent governing body was approved by individuals referred to in preceding
sub-clauses (i) and (ii) constituting at the time of such election or nomination at
least a majority of such board or equivalent governing body; or (excluding, in the
case of both clause (ii) and clause (iii), any individual whose initial nomination
for, or assumption of office as, a member of that board or equivalent governing body
occurs as a result of an actual or threatened solicitation of proxies or consents
for the election or removal of one or more directors by any person or group other
than a solicitation for the election of one or more directors by or on behalf of the
board of directors); or

	 	(ii)	 	Quiksilver, Inc. ceasing to directly or indirectly (x) own 100% of the share
capital of QSH (on a fully-diluted basis and/or on a non-diluted basis), or (y) own
100% of the voting rights in QSH (on a fully-diluted basis and/or on a non-diluted
basis) or (z) have the right or ability to control the composition of the majority of
the board of directors (or equivalent body) of QSH; or
	 
	 	(iii)	 	QSH ceasing to directly (x) own 100% of the share capital of Biarritz Holdings
(on a fully-diluted basis and/or on a non-diluted basis), or (y) own 100% of the voting
rights in Biarritz Holdings (on a fully-diluted basis and/or on a non-diluted basis) or
(z) have the right or ability to control the composition of the majority of the board
of directors (or equivalent body) of Biarritz Holdings; or
	 
	 	(iv)	 	Biarritz Holdings ceasing to directly (x) own 100% of the share capital of
Quiksilver Europa (on a fully-diluted basis and/or on a non-diluted basis), or (y) own
100% of the voting rights in Quiksilver Europa (on a fully-diluted basis and/or on a
non-diluted basis) or (z) have the right or ability to control the composition of the
majority of the board of directors (or equivalent body) of Quiksilver Europa; or
	 
	 	(v)	 	Quiksilver Europa ceasing to directly (x) own 100% (less the Rossignol Vendors
Restricted Shares until they are acquired by Quiksilver Europa as described in the
Structure Memorandum) of the share capital of the Company (on a fully-diluted basis
and/or on a non-diluted basis), or (y) own 100% (less the voting rights related to the
Rossignol Vendors Restricted Shares until such shares are acquired by Quiksilver Europa
as described in the Structure Memorandum) of the voting rights in the Company (on a
fully-diluted basis and/or on a non-diluted basis) or (z) have the right or ability to
control the composition of the majority of the board of directors (or equivalent body)
of the Company; or
	 
	 	(vi)	 	the Company ceasing to directly (x) own 100% of the share capital of Na Pali
(on a non-diluted basis) and/or 100% (less the shares to be issued by Na Pali to repay
the NP ORAs in accordance with the NP ORAs Subscription Agreement until the date on
which the NP ORAs are acquired by the Company as described in the Structure Memorandum)
of the share capital of Na Pali on a fully-diluted basis, or (y) own 100% of the voting
rights in Na Pali (on a non-diluted basis) and/or 100% (less the voting rights related
to the shares to be issued by Na Pali to repay the NP ORAs in accordance with the NP
ORAs Subscription Agreement until the date on which the NP ORAs are

10

 

	 	 	 	acquired by the Company as described in the Structure Memorandum) of the voting
rights in Na Pali on a fully-diluted basis or (z) have the right or ability to
control the composition of the majority of the board of directors (or equivalent
body) of Na Pali.

“Charged Property” means all of the assets of the Obligors which from time to time are, or are
expressed to be, the subject of the Transaction Security, but excluding, for the avoidance of
doubt, in the case of QSH any assets other than the shares of Biarritz Holdings and certain
receivables from time to time held by QSH against Biarritz Holdings and its Subsidiaries.

“Chartreuse et Montblanc” means Chartreuse et Mont-Blanc, a société par actions simplifiée
unipersonnelle whose registered office is at 41, avenue George V, 75008 Paris, France, registered
under the unique identification number 508 758 745 RCS Paris.

“Closing Date” means the date on which the first Utilisation is made.

“Commitment” means a Facility A Commitment, Facility B Commitment, L/C Facility Commitment or
Revolving Facility Commitment.

“Compliance Certificate” means a certificate substantially in the form set out in Schedule 7 (Form
of Compliance Certificate) or otherwise in form and substance satisfactory to the Agent (acting
reasonably).

“Confidential Information” means all information relating to the Company, any Obligor, the Group,
the European Group, the Finance Documents or a Facility in respect of which a Finance Party becomes
aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a
Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance
Documents or a Facility from either:

	(a)	 	any member of the Group, the European Group or any of its advisers, or
	 
	(b)	 	another Finance Party, if the information was obtained by that Finance Party directly or
indirectly from any member of the Group or the European Group or any of its advisers,

in whatever form, and includes information given orally and any document, electronic file or any
other way of representing or recording information which contains or is derived or copied from such
information but excludes information that:

	 	(i)	 	is or becomes public information other than as a direct or indirect result of
any breach by that Finance Party of Clause 39 (Confidentiality); or
	 
	 	(ii)	 	is identified in writing at the time of delivery as non-confidential by any
Obligor, any member of the Group or the European Group or any of its advisers; or
	 
	 	(iii)	 	is known by that Finance Party before the date the information is disclosed to
it in accordance with paragraphs (a) or (b) above or is lawfully obtained by that
Finance Party after that date, from a source which is, as far as that Finance Party is
aware, unconnected with the Obligors, the Group or the European Group and which, in
either case, as far as that Finance Party is aware, has not

11

 

	 	 	 	
been obtained in breach of, and is not otherwise subject to, any obligation of
confidentiality.

“Confidentiality Undertaking” means either a confidentiality undertaking substantially in the
latest recommended LMA form or any other form agreed between the Company and the Agent.

“Credit Obligors” means the Company, Na Pali and the Additional Guarantors.

“DC Shoes Business” means the business of designing, manufacturing, selling, distributing and
marketing products bearing “DC”, “DC Shoes” and related trademarks and logos.

“Debt Service Cover Ratio” has the meaning given to that term in Clause 24.1 (Financial
definitions).

“Debtor Relief Laws” means the Bankruptcy Code of the United States of America, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the
United States of America or other applicable jurisdictions from time to time in effect and
affecting the rights of creditors generally.

“Default” means an Event of Default or any event or circumstance specified in Clause 26 (Events of
Default) which would (with the expiry of a grace period, the giving of notice, the making of any
determination in each case under the Finance Documents or any combination of any of the foregoing)
be an Event of Default.

“Defaulting Lender” means any Lender:

	(a)	 	which has failed to make its participation in a Loan available or has notified the Agent that
it will not make its participation in a Loan available by the Utilisation Date of that Loan in
accordance with Clause 5.4 (Lenders’ participation) or has failed to provide cash collateral
(or has notified any Issuing Bank that it will not provide cash collateral) in accordance with
Clause 7.5 (Cash collateral by Non-Acceptable L/C Lender);
	 
	(b)	 	which has otherwise rescinded Finance Document; or
	 
	(c)	 	with respect to which an Insolvency Event has occurred and is continuing,

unless, in the case of paragraph (a) above:

	 	(i)	 	its failure to pay is caused by:

	 	(A)	 	administrative or technical error; or
	 
	 	(B)	 	a Disruption Event; and

	 	 	 	payment is made within 5 Business Days of its due date; or
	 
	 	(ii)	 	the Lender is disputing in good faith whether it is contractually obliged to
make the payment in question.

12

 

“Delegate” means any delegate, agent, attorney or co-trustee appointed by the Security Agent.

“Designated Gross Amount” has the meaning given to that term in Clause 8.2 (Availability).

“Designated Net Amount” has the meaning given to that term in Clause 8.2 (Availability).

“Disruption Event” means either or both of:

	(a)	 	a material disruption to those payment or communications systems or to those financial
markets which are, in each case, required to operate in order for payments to be made in
connection with the Facilities (or otherwise in order for the transactions contemplated by the
Finance Documents to be carried out) which disruption is not caused by, and is beyond the
control of, any of the Parties; or
	 
	(b)	 	the occurrence of any other event which results in a disruption (of a technical or
systems-related nature) to the treasury or payments operations of a Party preventing that, or
any other Party:

	 	(i)	 	from performing its payment obligations under the Finance Documents; or
	 
	 	(ii)	 	from communicating with other Parties in accordance with the terms of the
Finance Documents,

	 	 	and which (in either such case) is not caused by, and is beyond the control of, the Party
whose operations are disrupted.

“Dormant Subsidiary” means a member of the Group which does not trade (for itself or as agent for
any person) and does not own, legally or beneficially, assets (including, without limitation,
indebtedness owed to it) which in aggregate have a value of €250,000 or more or its equivalent in
other currencies.

“EBIT” has the meaning given to that term in Clause 24.1 (Financial definitions).

“EBITDA” has the meaning given to that term in Clause 24.1 (Financial definitions).

“Environment” means humans, animals, plants and all other living organisms including the ecological
systems of which they form part and the following media:

	(a)	 	air (including, without limitation, air within natural or man-made structures, whether above
or below ground);
	 
	(b)	 	water (including, without limitation, territorial, coastal and inland waters, water under or
within land and water in drains and sewers); and
	 
	(c)	 	land (including, without limitation, land under water).

“Environmental Claim” means any claim, proceeding, formal notice or investigation by any person in
respect of any Environmental Law.

13

 

“Environmental Law” means any applicable law or regulation which relates to:

	(a)	 	the pollution or protection of the Environment;
	 
	(b)	 	the conditions of the workplace; or
	 
	(c)	 	the generation, handling, storage, use, release or spillage of any substance which, alone or
in combination with any other, is capable of causing harm to the Environment, including,
without limitation, any waste.

“Environmental Permits” means any permit and other Authorisation and the filing of any
notification, report or assessment required under any Environmental Law for the operation of the
business of any member of the Group conducted on or from the properties owned or used by any member
of the Group.

“Estacade” means Estacade Limited, an English limited company whose registered office is at 5A Fore
Street, Topsham, Exeter, Devon, EX3 0HF, England, registered under number 04731282.

“EU Term Loan Credit Agreement” means that certain credit agreement dated as of 31 July 2009 among
Mountain and Wave S.à. r.l., Quiksilver, Inc., the lenders party thereto and Rhône Group L.L.C.

“EURIBOR” means, in relation to any Loan in euro:

	(A)	 	in respect of any Interest Period (other than Interest Periods of one month):

	 	(a)	 	the applicable Screen Rate; or
	 
	 	(b)	 	(if no Screen Rate is available for the Interest Period of that Loan) the
arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to
the Agent at its request quoted by the Reference Banks to leading banks in the European
interbank market,

as of the Specified Time on the Quotation Day for the offering of deposits in euro for a period
comparable to the Interest Period of the relevant Loan; and

	(B)	 	in respect of any Interest Period of one month, the highest of

	 	(a)	 	the applicable Screen Rate; and
	 
	 	(b)	 	the rate determined by the Agent to be the arithmetic mean (after excluding the
highest and the lowest quotations as long as all Reference Banks give their quotation
to the Agent) of the annual rates (rounded upwards to four decimal places) as supplied
to the Agent at its request, quoted by the Reference Banks to leading banks in the
Paris interbank market,

as of the Specified Time on the Quotation Day for the offering of deposits in euro for a period of
one month.

“European Group” means QSH, Biarritz Holdings and the Subsidiaries of Biarritz Holdings.

14

 

“European Obligors” means QSH, Biarritz Holdings, Quiksilver Europa, the Company and Na Pali.

“Event of Default” means any event or circumstance specified as such in Clause 26 (Events of
Default).

“Excess Cashflow” has the meaning given to that term in Clause 24.1 (Financial definitions).

“Existing Letters of Credit” has the meaning given to that term in Clause 7.1 (Existing Letters of
Credit).

“Expiry Date” means, for a Letter of Credit, the last day of its Term.

“Extension Request” means a written notice delivered to the Agent in accordance with Clause 6.6
(Extension of a Letter of Credit).

“Facilities” means the Term Facilities, the L/C Facility and the Revolving Facility and “Facility”
means any of them as the context may require.

“Facility A” means the term loan facility made available under this Agreement as described in
paragraph (a)(i) of Clause 2.1 (The Facilities).

“Facility A Commitment” means:

	(a)	 	in relation to an Original Lender, the amount in the Base Currency set opposite its name
under the heading “Facility A Commitment” in Schedule 1 (The Original Lenders) and the amount
of any other Facility A Commitment transferred to it under this Agreement; and
	 
	(b)	 	in relation to any other Lender, the amount in the Base Currency of any Facility A Commitment
transferred to it under this Agreement,

as it may be cancelled, reduced or transferred by it under this Agreement.

“Facility A Loan” means a loan made or to be made under Facility A or the principal amount
outstanding for the time being of that loan.

“Facility A Repayment Date” means each date set out in paragraph (a) of Clause 9.1 (Repayment of
Term Loans).

“Facility B” means the term loan facility made available under this Agreement as described in
paragraph (a)(ii) of Clause 2.1 (The Facilities).

“Facility B Commitment” means:

	(a)	 	in relation to an Original Lender, the amount in the Base Currency set opposite its name
under the heading “Facility B Commitment” in Schedule 1 (The Original Lenders) and the amount
of any other Facility B Commitment transferred to it under this Agreement; and
	 
	(b)	 	in relation to any other Lender, the amount in the Base Currency of any Facility B Commitment
transferred to it under this Agreement,

15

 

as it may be cancelled, reduced or transferred by it under this Agreement.

“Facility B Loan” means a loan made or to be made under Facility B or the principal amount
outstanding for the time being of that loan.

“Facility B Repayment Date” means each date set out in paragraph (b) of Clause 9.1 (Repayment of
Term Loans).

“Facility Office” means:

	(a)	 	in respect of a Lender or an Issuing Bank, the office notified by that Lender or that Issuing
Bank to the Agent in writing on or before the date it becomes a Lender or an Issuing Bank (or,
following that date, by not less than five Business Days’ written notice) as the office
through which it will perform its obligations under this Agreement; or
	 
	(b)	 	in respect of any other Finance Party, the office in the jurisdiction in which it is resident
for tax purposes.

“Fee Letter” means:

	(a)	 	any letter or letters dated on or about the date of this Agreement between the Arrangers and
the Company and/or Na Pali (or the Agent and the Company and/or Na Pali) (or the Security
Agent and the Company and/or Na Pali) setting out any of the fees referred to in Clause 16
(Fees); and
	 
	(b)	 	any agreement setting out fees payable to a Finance Party referred to in Clause 16.5 (Fees
payable in respect of Letters of Credit) or Clause 16.6 (Interest, commission and fees on
Ancillary Facilities) of this Agreement or under any other Finance Document.

“Finance Document” means this Agreement, any Accession Letter, the TEG Letter, any Guarantee, any
Ancillary Document, the Hedging Letter, any Compliance Certificate, any Fee Letter, any Hedging
Agreement, the Intercreditor Agreements, any Selection Notice, any Transaction Security Document,
any Utilisation Request, any L/C Request, each Letter of Credit, the Quiksilver, Inc.
Undertaking/Macquarie and any other document designated as a “Finance Document” by the Agent and
the Company; provided that where the term “Finance Document” is used in, and construed for
the purposes of, this Agreement or the Intercreditor Agreements, a Hedging Agreement shall be a
Finance Document only for the purposes of:

	(a)	 	the definition of “Material Adverse Effect”;
	 
	(b)	 	the definition of “Transaction Document”;
	 
	(c)	 	the definition of “Transaction Security Document”;
	 
	(d)	 	paragraph (a)(iv) of Clause 1.2 (Construction); and
	 
	(e)	 	Clause 26 (Events of Default) (other than Clause 26.21 (Acceleration)).

“Finance Lease” means any lease or hire purchase contract which would, in accordance with the
Accounting Principles, be treated as a finance or capital lease.

16

 

“Finance Parties” means the Agent, the Arrangers, the Security Agent, the Lenders, the Issuing
Banks, each Hedge Counterparty or any Ancillary Lender and “Finance Party” shall mean any of them;
provided that, where the term “Finance Party” is used in, and construed for the purposes
of, this Agreement or the Intercreditor Agreements, a Hedge Counterparty shall be a Finance Party
only for the purposes of:

	(a)	 	the definition of “Secured Parties”;
	 
	(b)	 	paragraph (a)(i) of Clause 1.2 (Construction);
	 
	(c)	 	paragraph (c) of the definition of “Material Adverse Effect”; and
	 
	(d)	 	Clause 30 (Conduct of Business by the Finance Parties).

“Financial Indebtedness” means, without double counting, any indebtedness for or in respect of:

	(a)	 	moneys borrowed and debit balances at banks or other financial institutions;
	 
	(b)	 	any acceptance raised under any acceptance credit or bill discounting facility (or
dematerialised equivalent);
	 
	(c)	 	any note purchase facility or the issue of bonds, notes, debentures, loan stock or any
similar instrument;
	 
	(d)	 	the amount of any liability in respect of Finance Leases;
	 
	(e)	 	receivables sold or discounted (other than any receivables to the extent they are sold or
discounted on a non-recourse basis) including, for the avoidance of doubt, receivables
transferred under the NP Factoring Agreements or under any other factoring program;
	 
	(f)	 	any Treasury Transaction (and, when calculating the value of that Treasury Transaction, only
the marked to market value (or, if any actual amount is due as a result of the termination or
close-out of that Treasury Transaction, that amount) shall be taken into account);
	 
	(g)	 	any counter-indemnity obligation in respect of any guarantee, bond, standby or documentary
letter of credit or any other instrument issued by a bank or financial institution in respect
of (i) an underlying liability of an entity which is not a member of the Group which liability
would fall within one of the other paragraphs of this definition or (ii) any liabilities of
any member of the Group relating to any post-retirement benefit scheme;
	 
	(h)	 	any amount raised by the issue of redeemable shares which are redeemable (other than at the
option of the issuer) before the day after the Termination Date or are otherwise classified as
borrowings under the Accounting Principles;
	 
	(i)	 	any amount of any liability under an advance or deferred purchase agreement if (i) one of the
primary reasons behind entering into the agreement is to raise finance or to finance the
acquisition or construction of the asset or service in question or (ii) the

17

 

	 	 	agreement is in respect of the supply of assets or services and payment is due more than 180
days after the date of supply;
	 
	(j)	 	any amount raised under any other transaction (including any forward sale or purchase, sale
and sale back or sale and leaseback agreement) having the commercial effect of a borrowing or
otherwise classified as borrowings under the Accounting Principles; and
	 
	(k)	 	the amount of any liability in respect of any guarantee for any of the items referred to in
paragraphs (a) to (j) above,

provided that Financial Indebtedness shall not include the obligation to pay the purchase
price for the Rossignol Vendor Restricted Shares pursuant to the Shareholders’ Agreement.

“Financial Semester” means either of the six-month periods of each Financial Year commencing on the
first day of the Financial Year and on 1 May.

“Financial Year” means the annual accounting period of the Group ending on 31 October in each year.

“Funds Flow Statement” means a funds flow statement in agreed form.

“Gearing” has the meaning given to that term in Clause 24.1 (Financial definitions).

“GE Factofrance” means GE Factofrance, SNC, a société en nom collectif whose registered office is
at Tour Facto, 92988 Paris La Défense Cedex, registered under the unique identification number 063
002 446 RCS Nanterre.

“Group” means, at any time, the Company and each of its Subsidiaries at such time.

“Guarantee” means a guarantee, in form and substance satisfactory to the Lenders and the Company,
given by an Original Guarantor or an Additional Guarantor (other than QSH) in respect of the
obligations under the Finance Documents (for the Guarantees to be issued by the Guarantors on the
Closing Date, as described in Part V of Schedule 2).

“Guarantor” means an Original Guarantor or an Additional Guarantor.

“Hanalei” means Hanalei, a Dutch Naamloze Vennootschap, whose registered office is at Antoon
Catriestraat, 39F, 9031 Drongen, The Netherlands, registered under the Register Gent.

“Hedge Counterparty” means each Arranger which is a party to a Hedging Agreement as hedge
counterparty and “Hedge Counterparties” means all such Arrangers.

“Hedging Agreement” means any Acceptable Master Agreement and related confirmations and schedules
entered into or to be entered into by an Obligor and a Hedge Counterparty for the purpose of
hedging interest rate liabilities in relation to the Facilities (other than the L/C Facility) in
accordance with the Hedging Letter and Clause 25.31 (Post-closing conditions).

“Hedging Letter” means the letter dated the date of this Agreement from the Arrangers to the
Company relating to the Hedging Agreements.

18

 

“Holding Company” means, in relation to a company or corporation, any other company or corporation
in respect of which it is a Subsidiary.

“IFRS” means international accounting standards within the meaning of IAS Regulation 1606/2002 to
the extent applicable to the relevant financial statements.

“Impaired Agent” means the Agent at any time when:

	(a)	 	it has failed to make (or has notified a Party that it will not make) a payment required to
be made by it under the Finance Documents by the due date for payment;
	 
	(b)	 	the Agent otherwise rescinds a Finance Document;
	 
	(c)	 	(if the Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the
definition of “Defaulting Lender”; or
	 
	(d)	 	an Insolvency Event has occurred and is continuing with respect to the Agent;
	 
	 	 	unless, in the case of paragraph (a) above:

	 	(i)	 	its failure to pay is caused by:

	 	(A)	 	administrative or technical error; or
	 
	 	(B)	 	a Disruption Event; and

	 	 	payment is made within 5 Business Days of its due date; or

	 	(ii)	 	the Agent is disputing in good faith whether it is contractually obliged to
make the payment in question.

“Infoborne” means Infoborne, a French société à responsabilité limitée whose registered office is
at c/o Na Pali, ZI de Jalday, 64500 Saint Jean de Luz, registered under the unique identification
number 397 872 805 RCS Bayonne.

“Information Package” means the Reports, the Business Plan and the Budget delivered to the Agent
pursuant to Schedule 2 (Conditions Precedent).

“Initial Business Plan” means the business plan delivered by the Company to the Agent pursuant to
paragraph 4(e) of Part I of Schedule 2 (Conditions Precedent) containing a consolidated balance
sheet, a consolidated profit and loss account and a consolidated cash flow statement for the
Company and its Subsidiaries for the five Financial Years ending after the date of this Agreement.

“Insolvency Event” in relation to a Finance Party means that the Finance Party:

	(a)	 	is dissolved (other than pursuant to a consolidation, amalgamation or merger);
	 
	(b)	 	becomes insolvent or is unable to pay its debts or fails or admits in writing its inability
generally to pay its debts as they become due;
	 
	(c)	 	makes a general assignment, arrangement or composition with or for the benefit of its
creditors;

19

 

	(d)	 	institutes or has instituted against it, by a regulator, supervisor or any similar official
with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction
of its incorporation or organisation or the jurisdiction of its head or home office, a
proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any
bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition
is presented for its winding-up or liquidation by it or such regulator, supervisor or similar
official;
	 
	(e)	 	has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any
other relief under any bankruptcy or insolvency law or other similar law affecting creditors’
rights, or a petition is presented for its winding-up or liquidation, and, in the case of any
such proceeding or petition instituted or presented against it, such proceeding or petition is
instituted or presented by a person or entity not described in paragraph (d) above and:

	 	(i)	 	results in a judgment of insolvency or bankruptcy or the entry of an order for
relief or the making of an order for its winding-up or liquidation; or
	 
	 	(ii)	 	is not dismissed, discharged, stayed or restrained in each case within 30 days
of the institution or presentation thereof;

	(f)	 	has a resolution passed for its winding-up, official management or liquidation (other than
pursuant to a consolidation, amalgamation or merger);
	 
	(g)	 	seeks or becomes subject to the appointment of an administrator, provisional liquidator,
conservator, receiver, trustee, custodian or other similar official for it or for all or
substantially all its assets;
	 
	(h)	 	has a secured party take possession of all or substantially all its assets or has a distress,
execution, attachment, sequestration or other legal process levied, enforced or sued on or
against all or substantially all its assets and such secured party maintains possession, or
any such process is not dismissed, discharged, stayed or restrained, in each case within 30
days thereafter;
	 
	(i)	 	causes or is subject to any event with respect to it which, under the applicable laws of any
jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h)
above; or
	 
	(j)	 	takes any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts.

“Intellectual Property” means:

	(a)	 	any patents, trade-marks, service marks, designs, business names, copyrights, database
rights, design rights, domain names, moral rights, inventions, confidential information,
knowhow and other intellectual property rights and interests (which may now or in the future
subsist), whether registered or unregistered; and
	 
	(b)	 	the benefit of all applications and rights to use such assets of each member of the Group
(which may now or in the future subsist).

20

 

“Intellectual Property Memorandum” means the intellectual property memorandum delivered to the
Agent pursuant to paragraph 4 (j) of Part I of Schedule 2 (Conditions Precedent).

“Intercreditor Agreements” means the Security Sharing Agreement and the Subordination Agreement.

“Interest Period” means, in relation to a Loan, each period determined in accordance with Clause 14
(Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with
Clause 13.3 (Default interest).

“Issuance and Reimbursement Agreement” means the issuance and reimbursement agreement dated 14
September 2007 between Na Pali as applicant and JP Morgan Europe Limited as issuing bank.

“Issuing Bank” means (i) with respect to the Existing Letters of Credit, each Lender which has
issued an Existing Letter of Credit and (ii) with respect to any other Letter of Credit, Caisse
Régionale de Crédit Agricole Mutuel Pyrénées-Gascogne and any other Lender which has notified the
Agent that it has agreed in an Accession Letter to the Company’s request to be an Issuing Bank
pursuant to the terms of this Agreement (each such Lender shall be referred to, whether acting
individually or together, as the “Issuing Bank”) provided that, in respect of a Letter of Credit
issued or to be issued pursuant to the terms of this Agreement, the “Issuing Bank” shall be the
Issuing Bank which has issued or agreed to issue that Letter of Credit.

“Joint Venture” means any joint venture entity, whether a company, unincorporated firm,
undertaking, association, joint venture or partnership or any other entity.

“J.P. Morgan Guarantee” means the €35,600,000 bank guarantee issued on 14 September 2007 by J.P.
Morgan Europe Limited, London Branch, in favour of the Rossignol Vendors pursuant to the Issuance
and Reimbursement Agreement dated 14 September 2007 between Na Pali and J.P. Morgan Europe Limited.

“L/C Facility” means the revolving letter of credit facility made available under this Agreement as
described in paragraph (a)(iii) of Clause 2.1 (The Facilities).

“L/C Facility Commitment” means:

	(a)	 	in relation to an Original Lender, the amount in the Base Currency set opposite its name
under the heading “L/C Facility Commitment” in Schedule 1 (The Original Lenders) and the
amount of any other L/C Facility Commitment transferred to it under this Agreement; and
	 
	(b)	 	in relation to any other Lender, the amount in the Base Currency of any L/C Facility
Commitment transferred to it under this Agreement,

as it may be cancelled, reduced or transferred by it under this Agreement.

“L/C Facility Utilisation” means a Letter of Credit.

“L/C Proportion” means in relation to a Lender in respect of any Letter of Credit, the proportion
(expressed as a percentage) borne by that Lender’s Available Commitment to the

21

 

Available Facility in respect of the L/C Facility immediately prior to the issue of that Letter of
Credit, adjusted to reflect any assignment or transfer under this Agreement to or by that Lender.

“L/C Request” means either (i) a paperless letter of credit request submitted using a secured
banking transaction exchange management software (“progiciel de gestion de portail transactionnel
bancaire sécurisé”) or (ii) a written notice substantially in the relevant form set out in Part II
of Schedule 3 (Requests).

“Legal Opinion” means any legal opinion delivered to the Agent under Clause 4.1 (Initial conditions
precedent) or Clause 28 (Changes to the Obligors).

“Legal Reservations” means any matters which are set out as qualifications or reservations as to
matters of law of general application in the Legal Opinions.

“Lender” means:

	(a)	 	any Original Lender; and
	 
	(b)	 	any bank, financial institution, trust, fund or other entity which has become a Party as a
Lender in accordance with Clause 27 (Changes to the Lenders),

which in each case has not ceased to be a Lender in accordance with the terms of this Agreement.

“Letter of Credit” means (i) each Existing Letter of Credit and (ii) any letter of credit or other
documentary credit issued pursuant to this Agreement by the Issuing Bank at the request of and for
the account of Na Pali pursuant to an L/C Request, each such Letter of Credit to be subject to the
UCP.

“Leverage Ratio” has the meaning given to that term in Clause 24.1 (Financial definitions).

“Licence Agreements” means the NP Licence Agreements, the Omareef Licence Agreements and the New
Pier License Agreements.

“LMA” means the Loan Market Association.

“Loan” means a Term Loan or a Revolving Facility Loan.

“Majority Lenders” means:

	(a)	 	(for the purposes of paragraph (a) of Clause 38.1 (Required consents) in the context of a
waiver in relation to a proposed Utilisation of the Revolving Facility (other than a
Utilisation on the Closing Date) of the condition in Clause 4.2 (Further conditions
precedent)), a Lender or Lenders whose Revolving Facility Commitments aggregate more than 662/3
per cent. of the Total Revolving Facility Commitments;
	 
	(b)	 	(for the purposes of (i) paragraph (a) of Clause 38.1 (Required consents) in the context of a
waiver in relation to a proposed Utilisation of the L/C Facility (other than a Utilisation on
the Closing Date) of the condition in Clause 4.2 (Further conditions precedent) and (ii)
paragraph (x) of Clause 6.3 (Completion of an L/C Request for

22

 

	 	 	Letters of Credit)), a Lender or Lenders whose L/C Facility Commitments aggregate more than
662/3 per cent. of the Total L/C Facility Commitments; and
	 
	(c)	 	(in any other case), a Lender or Lenders whose Commitments aggregate more than 662/3 per cent.
of the Total Commitments (or, if the Total Commitments have been reduced to zero, whose
participations in the outstanding Utilisations aggregated more than 662/3 per cent. of the Total
Commitments immediately prior to that reduction).

“Mandatory Cost” means the percentage rate per annum calculated by the Agent in accordance with
Schedule 4 (Mandatory Cost Formula).

“Mandatory Prepayment Account” means an interest-bearing account:

	(a)	 	held by a Borrower with the Agent or Security Agent;
	 
	(b)	 	identified in a letter between the Company and the Agent as a Mandatory Prepayment Account;
	 
	(c)	 	subject to Security in favour of the Security Agent which Security is in form and substance
reasonably satisfactory to the Agent and Security Agent and subject to the Agreed Security
Principles; and
	 
	(d)	 	from which no withdrawals may be made by any members of the Group except as contemplated by
this Agreement,

(as the same may be redesignated, substituted or replaced from time to time).

“Margin” means:

	(a)	 	in relation to the Facility A Loan, 4.75 per cent. per annum;
	 
	(b)	 	in relation to the Facility B Loan, 4.25 per cent. per annum;
	 
	(c)	 	in relation to any Revolving Facility Loan, 4.25 per cent. per annum;
	 
	(d)	 	in relation to any Unpaid Sum in relation to a Facility, the rate per annum specified above
for that Facility (or, in the case of the L/C Facility, the rate per annum specified above for
the Revolving Facility); and
	 
	(e)	 	in relation to any other Unpaid Sum, the highest rate specified above.

but if:

	(x)	 	no Default has occurred and is continuing; and
	 
	(y)	 	the Leverage Ratio in respect of the most recently completed Relevant Period is within a
range set out below,

then, commencing on the date of the delivery of the Pilot Consolidated Financial Statements for the
Financial Year ending on 31 October 2009, the Margin for each Loan under Facility A, Facility B and
the Revolving Facility will mean the percentage per annum set out below in the column for such
Facility opposite that range:

23

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Facility B and
	 	 	 	 	 	 	Revolving Facility
	 	 	Facility A Margin	 	Margin
	Leverage Ratio	 	% p.a.	 	% p.a.
	Greater than or equal to 3.00:1.00

	 	 	4.75	 	 	 	4.25	 
	 
	Less than 3.00:1.00 but greater
than or equal to 2.50:1.00

	 	 	4.50	 	 	 	4.00	 
	 
	Less than 2.50:1.00 but greater
than or equal to 2.00:1.00

	 	 	4.25	 	 	 	3.75	 
	 
	Less than 2.00:1.00 but greater
than or equal to 1.50:1.00

	 	 	4.00	 	 	 	3.50	 
	 
	Less than 1.50:1.00

	 	 	3.75	 	 	 	3.25	 

However:

	 	(i)	 	any increase or decrease in the Margin for a Loan shall take effect on the date
(the “reset date”) which is the first day of the next Interest Period for that Loan
following receipt by the Agent of the Compliance Certificate for that Relevant Period
pursuant to Clause 23.2 (Provision and contents of Compliance Certificate);
	 
	 	(ii)	 	if, following the receipt by the Agent of the Annual Pilot Consolidated
Financial Statements and related Compliance Certificate, such financial statements and
Compliance Certificate do not confirm the basis for a Margin reduction or increase
effected pursuant to the preceding paragraphs, then paragraphs (b) or (c) of Clause
13.2 (Payment of interest), as the case may be, shall apply;
	 
	 	(iii)	 	while a Default is continuing, the Margin for each Loan under Facility A,
Facility B and the Revolving Facility shall be the highest percentage per annum set out
above for a Loan under that Facility; and
	 
	 	(iv)	 	for the purpose of determining the Margin, Leverage Ratio and Relevant Period
shall be determined in accordance with Clause 24.1 (Financial definitions).

“Material Adverse Effect” means in the reasonable opinion of the Majority Lenders a material
adverse effect on:

	(a)	 	the business, operations, property, performance, condition (financial or otherwise) or
prospects of any European Obligor (other than QSH) or the Group taken as a whole; or
	 
	(b)	 	the ability of an Obligor (other than Quiksilver, Inc. and QSH) to perform its obligations
under the Finance Documents; or

24

 

	(c)	 	the validity or enforceability of, or the effectiveness or ranking of any Security granted or
purporting to be granted pursuant to any of, the Finance Documents or the rights or remedies
of any Finance Party under any of the Finance Documents.

“Material Subsidiary” means, at any time:

	(a)	 	an Obligor (other than a TopCo Obligor); or
	 
	(b)	 	a Subsidiary of the Company which:

	 	(i)	 	is listed in Schedule 9 (Material Subsidiaries); or
	 
	 	(ii)	 	has earnings before interest, tax, depreciation and amortisation calculated on
the same basis as EBITDA (as defined in Clause 24.1 (Financial definitions))
representing 5% or more of EBITDA (as defined in Clause 24.1 (Financial definitions))
or has gross assets representing 5%, or more of the gross assets of the Group,
calculated on a consolidated basis; or
	 
	 	(iii)	 	(to the extent the aggregate earnings before interest, tax, depreciation and
amortisation (calculated on the same basis as EBITDA) and the aggregate gross assets of
all the entities constituting Material Subsidiaries pursuant to the provisions of
paragraphs (a) and (b)(i) and (ii) above does not represent at least 75% of the EBITDA
of the Group and at least 75% of the consolidated gross assets of the Group) any
Subsidiary or Subsidiaries of the Company from time to time, in order to ensure that
the aggregate earnings before interest, tax, depreciation and amortisation (calculated
on the same basis as EBITDA) and the aggregate gross assets of all the Material
Subsidiaries represent at least 75% of the total EBITDA and 75% of the consolidated
gross assets of the Group, provided that any such Subsidiary shall constitute a
Material Subsidiary by decreasing order of its respective earnings and gross assets;

Compliance with the conditions set out in paragraphs (b) (ii) and (b) (iii) shall be determined by
reference to the most recent Compliance Certificate supplied by the Company and/or the latest
audited financial statements of that Subsidiary (consolidated in the case of a Subsidiary which
itself has Subsidiaries) and the latest Pilot Consolidated Financial Statements. However, if a
Subsidiary has been acquired since the date as at which the latest Pilot Consolidated Financial
Statements were prepared, the financial statements shall be deemed to be adjusted in order to take
into account the acquisition of that Subsidiary (such adjustment being certified by the Group’s
Auditors as representing an accurate reflection of the revised EBITDA (as defined in Clause 24.1
(Financial definitions) or gross assets of the Group)).

A report by the Auditors of the Company that a Subsidiary is or is not a Material Subsidiary shall,
in the absence of manifest error, be conclusive and binding on all Parties.

“Material Trademark” means (i) any of the following marks: QUIKSILVER, MOUNTAIN AND WAVE LOGO,
ROXY, or HEART LOGO, with respect to the following jurisdictions: France, Spain, Great Britain,
Italy, Germany, Poland, Czech Republic, Belgium, Greece, Switzerland, Russia, Portugal, and South
Africa and (ii) any other trademarks listed on the list entitled “Material Trademarks” delivered by
the Company to the Agent pursuant to Part I of Schedule 2 (Conditions Precedent) and updated from
time to time pursuant to Clause

25

 

25.24 (Intellectual Property) (but excluding, for the avoidance of doubt, trademarks not owned by
Biarritz Holdings and its Subsidiaries).

“Month” means a period starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month, except that:

	(a)	 	if the numerically corresponding day is not a Business Day, that period shall end on the next
Business Day in that calendar month in which that period is to end if there is one, or if
there is not, on the immediately preceding Business Day; and
	 
	(b)	 	if there is no numerically corresponding day in the calendar month in which that period is to
end, that period shall end on the last Business Day in that calendar month.

The above rules will only apply to the last Month of any period. “Monthly” shall be construed
accordingly.

“New Pier Licence Agreements” means the licence agreements entered into between QSH (and
transferred to Biarritz Holdings as a result of the QSH/Biarritz Holdings Contribution) and New
Pier, whereby QSH (and Biarritz Holdings following the QSH/Biarritz Holdings Contribution) has
granted to New Pier the right to use the QUIKSILVER, MOUNTAIN AND WAVE LOGO, ROXY, and HEART LOGO
trademarks in certain territories as described therein.

“Non-Acceptable L/C Lender” means a Lender under the L/C Facility which:

	(a)	 	is not an Acceptable Bank within the meaning of paragraph (a) of the definition of
“Acceptable Bank” (other than a Lender which each Issuing Bank has agreed is acceptable to it
notwithstanding that fact); or
	 
	(b)	 	which has failed to provide cash collateral (or has notified the Issuing Bank that it will
not provide cash collateral) in accordance with Clause 7.5 (Cash collateral by Non-Acceptable
L/C Lender);
	 
	(c)	 	has failed to make (or has notified the Agent that it will not make) a payment to be made by
it under Clause 7.4 (Indemnities) or Clause 29.10 (Lenders’ indemnity to the Agent) or any
other payment to be made by it under the Finance Documents to or for the account of any other
Finance Party in its capacity as Lender by the due date for payment;
	 
	(d)	 	which has otherwise rescinded a Finance Document; or
	 
	(e)	 	with respect to which an Insolvency Event has occurred and is continuing,

unless, in the case of paragraphs (b) and (c) above:

	(i)	 	its failure to pay is caused by:
	 
	(A)	 	administrative or technical error; or
	 
	(B)	 	a Disruption Event; and

payment is made within 5 Business Days of its due date.

26

 

“Note” means the €10,000,000 Subordinated Promissory Note dated 12 November 2008 issued by
Chartreuse et Montblanc as debtor in favour of the Company as creditor.

“NP Cash Collateral” means the €35,600,000 cash collateral granted by Na Pali to JP Morgan pursuant
to the Cash Collateral Agreement.

“NP Factoring Agreements” means (i) the financing facility contract n°12692 dated 22 August 2008
entered into between Na Pali and GE Factofrance, (ii) the financing facility contract n°15106 dated
22 August 2008 entered into between Emerald Coast S.A.S. and GE Factofrance, (iii) the financing
facility contract n°12014 dated 6 November 2008 entered into between Sumbawa SL and GE Factofrance
and (iv) the financing facility contract n°12012 and the supplemental deed to the AR Financing
Facility Contract n°12012 dated 30 October 2008 entered into between Lanai Limited and GE
Factofrance.

“NP Licence Agreements” means the licence agreements entered into between QSH (and transferred to
Biarritz Holdings as a result of the QSH/Biarritz Holdings Contribution) and Na Pali, whereby QSH
(and Biarritz Holdings following the QSH/Biarritz Holdings Contribution) has granted to Na Pali the
right to use the QUIKSILVER, MOUNTAIN AND WAVE LOGO, ROXY, and HEART LOGO trademarks in certain
territories as described therein.

“NP ORAs” means the €68,500,000 mandatory convertible bonds (obligations remboursables en actions)
issued by Na Pali on 26 April 2002 and initially subscribed by Quiksilver Europa, S.L (formerly
designated The Aqua Division Company, S.L.).

“NP ORAs Subscription Agreement” means the mandatory convertible bonds (obligations remboursables
en actions) subscription agreement dated 26 April 2002 entered into between Na Pali and Quiksilver
Europa, S.L (formerly designated The Aqua Division Company, S.L.) and the amendment n°1 thereto
dated 24 April 2009 entered into between Na Pali, the Company and QSH.

“NP Perimeter Indebtedness To Be Refinanced” means the Financial Indebtedness of Na Pali and its
Subsidiaries outstanding under bank loans and overdraft facilities and owed to the Lenders as of
the date hereof, the amount of which has been certified to the Agent pursuant to Part I of Schedule
2 (Conditions Precedent).

“NP Permanent Advance” means the permanent advances for an aggregate amount of €45,000,000 made
available by Na Pali to Quiksilver, Inc. as evidenced by the €15,000,000 promissory note dated 20
August 2005 and the €30,000,000 promissory note dated 20 September 2005 issued by Quiksilver, Inc.

“Obligor” means a Borrower or a Guarantor.

“Obligors’ Agent” means the Company, appointed to act on behalf of each Obligor in relation to the
Finance Documents pursuant to Clause 2.3 (Obligors’ Agent).

“Omareef” means Omareef Europe, a French société par actions simplifiée whose registered office is
at 1468 route des Lacs, 40150 Soorts-Hossegor, registered under the unique identification number
389 024 621 RCS Dax.

“Omareef Licence Agreements” means the licence agreements entered into between QSH (and transferred
to Biarritz Holdings as a result of the QSH/Biarritz Holdings Contribution)

27

 

and Omareef, whereby QSH (and Biarritz Holdings following the QSH/Biarritz Holdings Contribution)
has granted to Omareef the right to use the QUIKSILVER, MOUNTAIN AND WAVE LOGO, ROXY, and HEART
LOGO trademarks in certain territories as described therein.

“Optional Currency” means a currency (other than the Base Currency) which complies with the
conditions set out in Clause 4.3 (Conditions relating to Optional Currencies).

“Original Financial Statements” means:

	(a)	 	in relation to the Company, the Pilot consolidated financial statements for its Financial
Year ended 31 October 2008;
	 
	(b)	 	in relation to each Obligor other than QSH, Quiksilver Europa, Biarritz Holdings and the
Company, its audited financial statements for its Financial Year ended 31 October 2008;
	 
	(c)	 	in relation to each of QSH and Quiksilver Europa, its unaudited financial statements for its
Financial Year ended 31 October 2008;
	 
	(d)	 	in relation to any other Obligor other than Biarritz Holdings, its audited financial
statements delivered to the Agent as required by Clause 28 (Changes to the Obligors); and
	 
	(e)	 	in relation to Biarritz Holdings, a balance sheet as of the date of this Agreement.

“Original Guarantors” means Quiksilver, Inc. and the Company and “Original Guarantor” means any of
them.

“Original Obligor” means a Borrower or an Original Guarantor.

“Participating Member State” means any member state of the European Communities that adopts or has
adopted the euro as its lawful currency in accordance with legislation of the European Union
relating to Economic and Monetary Union.

“Party” means a party to this Agreement.

“Permitted Acquisition” means:

	 	(i)	 	an acquisition by a member of the Group of an asset sold, leased, transferred
or otherwise disposed of by another member of the Group in circumstances constituting a
Permitted Disposal;
	 
	 	(ii)	 	an acquisition of securities which are Cash Equivalent Investments, such
acquisition being made at arm’s length terms and in the ordinary course of business so
long as those Cash Equivalent Investments promptly become subject to the Transaction
Security (subject to the Agreed Security Principles);
	 
	 	(iii)	 	the incorporation of a company which on incorporation becomes a member of the
Group, but only if:

	 	(A)	 	that company is incorporated in a member state of the European
Union

28

 

	 	 	 	with limited liability; and
	 
	 	(B)	 	if the shares in the company are owned by an Obligor, Security
over the shares of that company (in form and substance satisfactory to the
Agent (acting reasonably)) is created in favour of the Security Agent (subject
to the Agreed Security Principles) within 30 days of the date of its
incorporation;

	 	(iv)	 	an acquisition contemplated by the Structure Memorandum;
	 
	 	(v)	 	an acquisition of all of the issued share capital of a limited liability
company, but only if:

	 	(A)	 	no Default is continuing on the closing date for the
acquisition or would occur as a result of the acquisition;
	 
	 	(B)	 	the acquired company is incorporated or established, and
carries on its principal business in, a member state of the European Union and
is engaged in a business substantially the same as that carried on by the
Group;
	 
	 	(C)	 	the consideration (including associated costs and expenses) for
the acquisition and any Financial Indebtedness or other assumed actual or
contingent liability, in each case which is not discharged at the date of
acquisition (when aggregated with the consideration (including associated costs
and expenses) for any other Permitted Acquisition consummated in such Financial
Year and any Financial Indebtedness or other actual or contingent liability
assumed pursuant to a Permitted Acquisition consummated in such Financial Year,
in each case which is not discharged at the time of acquisition (the “Total
Purchase Price”)) does not exceed in any Financial Year of the Company
€4,000,000 (or its equivalent) in the aggregate;
	 
	 	(D)	 	the acquisition is not funded by a Revolving Facility
Utilisation or financed by a L/C Facility Utilisation; and
	 
	 	(E)	 	the Company has delivered to the Agent not later than 30
Business Days before legally committing to make such acquisition a certificate
signed by two legal representatives of the Company to which is attached a copy
of the latest audited accounts (or if not available, management accounts) of
the target company. Such certificate shall (i) confirm that the target company
has positive EBIT for the latest financial year and (ii) include reasonably
detailed calculations demonstrating that the Company would have remained in
compliance with its obligations under Clause 24.2 (Financial condition) and the
Leverage Ratio would be less than 3.0 if the Ratios were recalculated for the
Relevant Period ending on the most recent test date consolidating the financial
statements of the target company (consolidated if it has Subsidiaries) with the
financial statements of the Group for such period on a pro forma basis and as
if the consideration for the proposed acquisition had been paid at the start of
that relevant

29

 

	 	 	 	period;

	 	(vi)	 	the acquisition of shares in members of the Group from an employee on the
death, retirement or resignation of that employee, but only if the consideration for
such acquisition (when aggregated with the consideration for any other acquisition of
shares in members of the Group from employees) does not in any Financial Year of the
Company exceed €250,000 or its equivalent in the aggregate;
	 
	 	(vii)	 	the acquisition of the Rossignol Vendor Restricted Shares pursuant to the
Shareholders Agreement as described in the Structure Memorandum for a maximum purchase
price of €35,600,000, provided that simultaneously with such acquisition the NP Cash
Collateral is released in full in favor of (or to the order of) Na Pali and Na Pali has
no longer any obligation under the Cash Collateral Agreement;
	 
	 	(viii)	 	the acquisition of shares representing 49% of the share capital of Hanalei for a
maximum purchase price not exceeding €3,000,000 and 49% of Estacade for a maximum
purchase price not exceeding €1,000,000; and
	 
	 	(ix)	 	the acquisition of shares representing 49% of the share capital of Tanna for a
maximum purchase price not exceeding €500,000.

“Permitted Disposal” means any sale, lease, licence, transfer or other disposal:

	(a)	 	of trading stock or cash (which is not subject to Transaction Security) made by any member of
the Group in the ordinary course of trading of the disposing entity;
	 
	(b)	 	of any asset (which is not subject to Transaction Security) by a member of the Group (the
“Disposing Company”) to another member of the Group (the “Acquiring Company”), but if:

	 	(i)	 	the Disposing Company is an Obligor, the Acquiring Company must also be an
Obligor; and
	 
	 	(ii)	 	the Disposing Company is a Guarantor, the Acquiring Company must be a Guarantor
guaranteeing at all times an amount no less than that guaranteed by the Disposing
Company;

	(c)	 	of assets (other than shares, businesses and assets which are subject to Transaction
Security) in exchange for other assets of a comparable or superior type, value and quality;
	 
	(d)	 	of obsolete or redundant vehicles, plant and equipment for cash;
	 
	(e)	 	of Cash Equivalent Investments for Cash or in exchange for other Cash Equivalent Investments;
	 
	(f)	 	arising as a result of any Permitted Security or in connection with a Permitted Loan;

30

 

	(g)	 	of receivables transferred pursuant to the NP Factoring Agreements (or any other factoring
programme entered into in replacement thereof in accordance with this Agreement);
	 
	(h)	 	of receivables and intra-Group loans as described in the Structure Memorandum;
	 
	(i)	 	of the DC Shoes Business;
	 
	(j)	 	of the shares of Infoborne;
	 
	(k)	 	of 51% of the share capital of Tuamotu, Estacade and Tanna;
	 
	(l)	 	of real estate properties located at

	 	(i)	 	Lieudit “Les Terrasses de l’Océan”, Capbreton Landes, France, namely an
apartment with one basement and car park (lot number 115, lot number 188, and lot
number 362) purchased according to a contract signed on September 19, 2007 before
Maître Jean-Christophe Gaymard, Notaire, residing at 38 Cours Galliéni, Dax, Landes,
France;
	 
	 	(ii)	 	23 and 135 Avenue de Jalday, Saint-Jean-de-Luz, namely an industrial estate of
a total surface of 01 ha 40 a 51 ca (lot number 64, lot number 35, lot number 65 and a
part of lot number 66 of Zone d’Aménagement Concerté de JALDAY) purchased according to
a contract signed on July 23, 2009 before Maître Dominique Larralde, Notaire, residing
at 21 Rue Chauvin Dragon, BP 419, Résidence “les Palmiers”, Saint-Jean-de-Luz, Pyrénées
Atlantiques, France; and
	 
	 	(iii)	 	162, 171 and 173 rue des Routiers Saint-Jean-de-Luz, namely an industrial
estate with two buildings, of a total surface of 02 ha 52a 75 ca (land register number
BX n°11, BX n°12, BX n°13, and BX n°16) purchased according to a contract signed on
June 18, 2007 before Maître Dominique Larralde, Notaire, residing at 21 Rue Chauvin
Dragon, BP 419, Résidence “les Palmiers”, Saint-Jean-de-Luz, Pyrénées Atlantiques,
France; and

	(m)	 	of the vessel whose identification number (“Numéro d’Acte de Francisation”) is 22115/0243.

“Permitted Financial Indebtedness” means Financial Indebtedness permitted by Clause 25.20
(Financial Indebtedness).

“Permitted Guarantee” means:

	 	(i)	 	any guarantee or indemnity issued by a TopCo Obligor in respect of the
Financial Indebtedness, liabilities or obligations of a member of the Group;
	 
	 	(ii)	 	any guarantee or indemnity issued by a member of the Group which is a Credit
Obligor in respect of the Financial Indebtedness, liabilities or obligations of another
Credit Obligor or any guarantee or indemnity issued by a member of the Group which is
not a Credit Obligor in respect of the Financial Indebtedness, liabilities or
obligations of another member of the Group;

31

 

	 	(iii)	 	any guarantee or indemnity issued by a Credit Obligor in respect of the
Financial Indebtedness, liabilities or obligations of a member of the Group which is
not a Credit Obligor so long as the aggregate amount of Financial Indebtedness under
any such loans (when aggregated with the aggregate Financial Indebtedness of the
outstanding loans permitted under paragraph (iii) of the definition of “Permitted Loan”
below) does not exceed €3,000,000 (or its equivalent) at any time;
	 
	 	(iv)	 	the guarantees and off-balance sheet liabilities existing on the date of this
Agreement and set out in Schedule 13 (Guarantees and Off-Balance Sheet Liabilities)
and, in the case of the NP Factoring Agreements, as replaced or renewed pursuant to any
Working Capital Financing (not provided by Quiksilver, Inc.) permitted pursuant to
paragraph (vi) of Clause 25.20 (Financial Indebtedness);
	 
	 	(v)	 	any guarantee or indemnity given in favour of any relevant tax or regulatory
authority in the ordinary course of business, save where calling on that guarantee or
indemnity would have a Material Adverse Effect; and
	 
	 	(vi)	 	any guarantee or indemnity given in respect of rental payments under leases of
real property entered into at arms’ length terms and in the ordinary course of
business.

“Permitted Loan” means:

	 	(i)	 	any loan made by a TopCo Obligor to a member of the Group; provided
that, any such loan is subordinated to the Facilities in accordance with the
Subordination Agreement;
	 
	 	(ii)	 	any loan made by a Credit Obligor to another Credit Obligor or by a member of
the Group which is not a Credit Obligor to another member of the Group;
	 
	 	(iii)	 	any loan made by a Credit Obligor to a member of the Group which is not a
Credit Obligor so long as the aggregate amount of Financial Indebtedness under any such
loans (when aggregated with the aggregate Financial Indebtedness under the guarantees
and indemnities permitted under paragraph (iii) of the definition of “Permitted
Guarantee” above) does not exceed €3,000,000 (or its equivalent) at any time;
	 
	 	(iv)	 	any trade credit extended by an Obligor or any member of the Group to its
customers on normal commercial terms and in the ordinary course of its trading
activities;
	 
	 	(v)	 	any loan under the Cash Pooling Agreement;
	 
	 	(vi)	 	the loans and credits existing on the date of this Agreement and set out in
Schedule 12 (List of Loans); and
	 
	 	(vii)	 	the loans detailed in the Structure Memorandum.

32

 

“Permitted Security” means:

	 	(i)	 	any Security listed in Schedule 11 (List of Securities) on the date hereof
except to the extent the principal amount secured by that Security exceeds the amount
stated in that schedule and, in the case of the NP Factoring Agreements, as replaced or
renewed pursuant to any Working Capital Financing (not provided by Quiksilver, Inc.)
permitted pursuant to paragraph (vi) of Clause 25.20 (Financial Indebtedness);
	 
	 	(ii)	 	any lien arising by operation of law (privilège légal) and in the ordinary
course of trading and not as a result of any default or omission by any Obligor or any
member of the Group;
	 
	 	(iii)	 	any netting or set-off arrangement entered into by any member of the Group in
the ordinary course of its banking arrangements for the purpose of netting debit and
credit balances;
	 
	 	(iv)	 	any Security or Quasi-Security over or affecting any asset acquired by a member
of the Group after the date of this Agreement if:

	 	(A)	 	the Security or Quasi-Security was not created in contemplation
of the acquisition of that asset by a member of the Group;
	 
	 	(B)	 	the principal amount secured has not been increased in
contemplation of, or since the acquisition of that asset by a member of the
Group; and
	 
	 	(C)	 	the Security or Quasi-Security is removed or discharged within
2 months of the date of acquisition of such asset;

	 	(v)	 	any Security or Quasi-Security over or affecting any asset of any company which
becomes a member of the Group after the Closing Date, where the Security or
Quasi-Security is created prior to the date on which that company becomes a member of
the Group if:

	 	(A)	 	the Security or Quasi-Security was not created in contemplation
of the acquisition of that company;
	 
	 	(B)	 	the principal amount secured has not increased in contemplation
of or since the acquisition of that company; and
	 
	 	(C)	 	the Security or Quasi-Security is removed or discharged within
2 months of that company becoming a member of the Group;

	 	(vi)	 	any Security arising under any retention of title, hire purchase or conditional
sale arrangement or arrangements having similar effect in respect of goods supplied to
a member of the Group in the ordinary course of trading and on the supplier’s standard
or usual terms and not arising as a result of any default or omission by any member of
the Group;
	 
	 	(vii)	 	any Security or Quasi-Security arising as a consequence of any finance or
capital lease in respect of vehicles, plant, equipment or computers, provided that the
aggregate capital value of all of such items so leased does not exceed

33

 

	 	 	 	€500,000 (or its equivalent in other currencies) outstanding for the Group at any
time;
	 
	 	(viii)	 	any Security entered into pursuant to any Finance Document;
	 
	 	(ix)	 	any transfer of receivables pursuant to the NP Factoring Agreements (or any
Working Capital Financing (not provided by Quiksilver, Inc.) permitted pursuant to
paragraph (vi) of Clause 25.20 (Financial Indebtedness));
	 
	 	(x)	 	any transfer of receivables contemplated under the Structure Memorandum; and
	 
	 	(xi)	 	any Security (including any security deposit given in respect of rental
payments under leases of real property entered into at arms’ length terms and in the
ordinary course of business) securing indebtedness the outstanding principal amount of
which (when aggregated with the outstanding principal amount of any other indebtedness
which has the benefit of Security given by any member of the Group other than any
permitted under paragraphs (i) to (x) above) does not exceed €5,000,000 (or its
equivalent in other currencies) in the aggregate .

“Pilot Consolidated Financial Statements” has the meaning given to that term in Clause 23
(Information Undertakings).

“Pilot Facility Agreement” means the €70,000,000 credit agreement dated 14 June 2008 (as amended on
14 August 2008, 30 October 2008, 9 March 2009, 30 June 2009 and 31 July 2009) entered into among
the Company as borrower, Société Générale as lender and facility agent, BNP Paribas as lender and
security agent and Crédit Lyonnais as lender.

“Pilot ORAs” means the €208,248,624.48 obligations remboursables en actions issued by the Company
on 31 October 2005 and initially subscribed by QSH.

“Pilot Tax Consolidated Group” means the Company and each of its Subsidiaries incorporated in
France which is a member of the consolidated tax group of the Company.

“Pre-Closing Permitted Restructuring” means any of the corporate restructuring transactions to be
completed prior to the Closing Date as described in the Structure Memorandum (including steps n° 1
through 8 (inclusive) of the Structure Memorandum).

“QSH” means QS Holdings S.à r.l., a Luxembourg société à responsabilité limitée, with a share
capital of €8,345,580, whose registered office is at 1 rue des Glacis, L-1628 Luxembourg,
registered with the Luxembourg Registre de Commerce et des Sociétés under number B 103.193.

“QS Finance” means QS Finance S.A., a Luxembourg société anonyme, with a share capital of €31,000,
whose registered office is at 11, avenue Emile Reuter, L-2420 Luxembourg, registered with the
Luxembourg Registre de Commerce et des Sociétés under number B 109.345.

“QSH/Biarritz Holdings Contribution” means the contribution by QSH to Biarritz Holdings of all of
the marks held by it which are used by Na Pali and its Subsidiaries (including the Material
Trademarks), all of the shares of QS Finance and all of the shares of

34

 

Quiksilver Europa) and the other assets and liabilities as described in the Structure Memorandum.

“Qualifying Lender” has the meaning given to that term in Clause 17 (Tax Gross Up and Indemnities).

“Quasi-Security” has the meaning given to that term in Clause 25.12 (Negative pledge).

“Quiksilver Americas, Inc.” means Quiksilver Americas, Inc., a corporation incorporated under the
laws of the State of California, United States of America, whose registered office is at 15202
Graham Street, Huntington Beach, California 92649, United States of America.

“Quiksilver Europa” means Quiksilver Europa SL, a company organized under the laws of Spain, whose
registered office is at C/Serrano 73, Madrid and registered with the Commercial Registry of Madrid
(Spain) under Volume 16,781, Page 1 and Sheet number M-286696.

“Quiksilver, Inc. Guarantee/SG Financing” means the guarantee (governed by the laws of the State of
New York) to be issued by Quiksilver, Inc. in favour of Société Générale (to be in form and
substance satisfactory to Société Générale), whereby Quiksilver, Inc. guarantees the payment of all
sums due by QS Finance under the SG Financing Documents.

“Quiksilver, Inc. Undertaking/Macquarie” means the letter of undertaking (governed by the laws of
the State of New York) to be executed by Quiksilver, Inc. in favour of the Finance Parties, whereby
Quiksilver, Inc. undertakes to provide the Company with an amount of cash funds equal to cash
payments required to be made by the Company to the purchasers under the Stock Purchase Agreement.

“Quiksilver, Inc. Undertaking/SG Financing” means the letter of undertaking (governed by the laws
of the State of New York) to be executed by Quiksilver, Inc. in favour of Société Générale, as
described in the Security Sharing Agreement.

“Quotation Day” means, in relation to any period for which an interest rate is to be determined:

	(a)	 	(if the currency is sterling) the first day of that period;
	 
	(b)	 	(if the currency is euro) two TARGET Days before the first day of that period; or
	 
	(c)	 	(for any other currency) two Business Days before the first day of that period,

unless market practice differs in the Relevant Interbank Market for a currency, in which case the
Quotation Day for that currency will be determined by the Agent in accordance with market practice
in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the
Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).

“Ratios” means the Leverage Ratio, the Debt Service Cover Ratio and the Gearing.

“Reference Banks” means, in relation to EURIBOR the principal Paris offices of BNP Paribas, Crédit
Lyonnais, Société Générale and Natixis or such other banks as may be appointed by the Agent in
consultation with the Company.

35

 

“Refinancing” means the refinancing of the NP Perimeter Indebtedness To Be Refinanced, the
Financial Indebtedness under the Pilot Facility Agreement and all corporate actions taken in
relation thereto as described in the Structure Memorandum.

“Related Fund” in relation to a fund (the “first fund”), means a fund which is managed or advised
by the same investment manager or investment adviser as the first fund or, if it is managed by a
different investment manager or investment adviser, a fund whose investment manager or investment
adviser is an Affiliate of the investment manager or investment adviser of the first fund.

“Relevant Interbank Market” means in relation to euro, the European interbank market and, in
relation to any other currency, the London interbank market.

“Relevant Jurisdiction” means, in relation to an Obligor:

	(a)	 	its jurisdiction of incorporation;
	 
	(b)	 	any jurisdiction where any asset subject to or intended to be subject to the Transaction
Security to be created by it is situated;
	 
	(c)	 	any jurisdiction where it conducts its business; and
	 
	(d)	 	the jurisdiction whose laws govern the perfection of any of the Transaction Security
Documents entered into by it.

“Relevant Period” means each period of twelve months ending on the last day of the Financial Year
and each period of twelve months ending on the last day of each Financial Semester.

“Reliance Parties” means the Agent, the Arrangers, the Security Agent, the Issuing Banks, each
Ancillary Lender, each Original Lender and each person which becomes a Lender within six months of
the Closing Date.

“Repayment Date” means a Facility A Repayment Date or a Facility B Repayment Date or the last day
of an Interest Period for a Revolving Facility Loan.

“Repayment Instalment” means any repayment instalment referred to in paragraphs (a) or (b) of
Clause 9.1 (Repayment of Term Loans).

“Repeating Representations” has the meaning given to that term in Clause 22.34 (Times when
representations made).

“Reports” means the Intellectual Property Memorandum and the Structure Memorandum.

“Representative” means any delegate, agent, manager, administrator, nominee, attorney, trustee or
custodian.

“Revolving Facility” means the revolving credit facility made available under this Agreement as
described in paragraph (a)(iv) of Clause 2.1 (The Facilities).

36

 

“Revolving Facility Commitment” means:

	(a)	 	in relation to an Original Lender, the amount in the Base Currency set opposite its name
under the heading “Revolving Facility Commitment” in Schedule 1 (The Original Lenders) and the
amount of any other Revolving Facility Commitment transferred to it under this Agreement; and
	 
	(b)	 	in relation to any other Lender, the amount in the Base Currency of any Revolving Facility
Commitment transferred to it under this Agreement,

as it may be cancelled, reduced or transferred by it under this Agreement.

“Revolving Facility Loan” means a loan made or to be made under the Revolving Facility or the
principal amount outstanding for the time being of that loan.

“Revolving Facility Utilisation” means a Revolving Facility Loan.

“Rhône Financing” means the financing to be made available by Rhône Group L.L.C. in an amount of
€20,000,000 pursuant to the EU Term Loan Credit Agreement and in an amount of US$125,000,000
pursuant to the US Term Loan Credit Agreement.

“Rhône Financing Documents” means the EU Term Loan Credit Agreement and the US Term Loan Credit
Agreement.

“Rollover Loan” means one or more Revolving Facility Loans:

	(a)	 	made or to be made on the same day that a maturing Revolving Facility Loan is due to be
repaid;
	 
	(b)	 	the aggregate amount of which is equal to or less than the amount of the maturing Revolving
Facility Loan;
	 
	(c)	 	in the same currency as the maturing Revolving Facility Loan; and
	 
	(d)	 	made or to be made to Na Pali for the purpose of refinancing that maturing Revolving Facility
Loan.

“Rossignol Documents” means the Issuance and Reimbursement Agreement, the J.P. Morgan Guarantee,
the Cash Collateral Agreement and the Shareholders Agreement.

“Rossignol Liabilities” means the amount due to the Rossignol Vendors by Quiksilver Europa pursuant
to the Shareholders Agreement in an amount not to exceed €35,600,000.

“Rossignol Liabilities Royalties” means the royalties which are permitted to be paid to Biarritz
Holdings pursuant to the Subordination Agreement in order to satisfy the Rossignol Liabilities.

“Rossignol Sale” means the transactions contemplated in the Stock Purchase Agreement dated as of
November 12, 2008 entered into between Quiksilver, Inc., Pilot S.A.S., Meribel S.A.S., Quiksilver
Americas, Inc., Chartreuse et Mont Blanc LLC, Chartreuse et Mont Blanc SAS, Chartreuse et Mont
Blanc Global Holdings S.C.A., Macquarie Asset Finance Limited and Mavilia SAS.

37

 

“Rossignol Vendors” means Laurent Boix-Vives, Jeanine Boix-Vives, Christine Simon and Sylvie
Bernard.

“Rossignol Vendors Restricted Shares” means the 146,619 preferred shares (actions de préférence) of
the Company held by the Rossignol Vendors.

“Screen Rate” means, in relation to EURIBOR, the percentage rate per annum determined by the
Banking Federation of the European Union for the relevant period, displayed on the appropriate page
of the Reuters screen. If the agreed page is replaced or service ceases to be available, the Agent
may specify another page or service displaying the appropriate rate after consultation with the
Company and the Lenders.

“Secured Parties” means each Finance Party from time to time party to this Agreement and any
Delegate and Société Générale in its capacity as creditor of the SG Financing.

“Security” means a mortgage, charge, pledge, lien or other security interest securing any
obligation of any person or any other agreement or arrangement having a similar effect.

“Security Agent” means the security agent to be appointed pursuant to the Security Sharing
Agreement and to accede to this Agreement, or any successor thereof in accordance with the Security
Sharing Agreement.

“Security Sharing Agreement” means the security sharing agreement to be entered into substantially
in form of the draft dated the date of this Agreement on or prior to the Closing Date between,
among others, the Obligors, Société Générale, as Security Agent, BNP Paribas, as Agent, the
Lenders, the Arrangers, the Ancillary Lenders, the Issuing Bank and Société Générale, as SG
Creditor.

“Selection Notice” means a notice substantially in the form set out in Part III of Schedule 3
(Requests) given in accordance with Clause 14 (Interest Periods) in relation to a Term Facility.

“Senior Management” means each and all of Pierre Agnes, as president of Na Pali and Pierre
Boccon-Liaudet, as president of Pilot and chief financial officer of Na Pali.

“Senior Notes” means the 6-7/8% senior notes due 2015 issued by Quiksilver, Inc. which are subject
to the terms of the US Indenture.

“SG Bonds” means the bonds issued by QS Finance and subscribed by Société Générale for an
outstanding amount of €50,000,000.

“SG Financing” means the SG Bonds and the SG Forward Financing.

“SG Financing Documents” means the SG Bonds, the SG Forward Financing Documents and the Quiksilver,
Inc. Guarantee/SG Financing.

“SG Forward Financing” has the meaning given to that term in the Security Sharing Agreement.

“SG Forward Financing Documents” means the financing agreement to be entered into (in form and
substance satisfactory to Société Générale) pursuant to which the SG Forward Financing shall be
made available.

38

 

“Shareholders Agreement” means the Shareholders Agreement dated 12 April 2005 between Quiksilver,
Inc. and the Rossignol Vendors in respect of the Company (formerly designated Ski Expansion SCA).

“Specified Time” means a time determined in accordance with Schedule 8 (Timetables).

“Stock Purchase Agreement” means the Stock Purchase Agreement dated 12 November 2008 among, inter
alia, Quiksilver, Inc. and Macquarie Assets Finance Limited in respect of, inter alia, the sale of
Skis Rossignol SAS.

“Structure Chart” means the group structure chart in the agreed form.

“Structure Memorandum” means the legal and tax structure memorandum dated the date hereof prepared
by Skadden, Arps, Slate, Meagher & Flom LLP, addressed to, and/or capable of being relied upon by,
the Reliance Parties and referred to in Part I of Schedule 2 (Conditions Precedent) together with
the Addendum to the Structure Memorandum when the same is delivered to the Agent pursuant to Part
II of Schedule 2 (Conditions Precedent).

“Subordinated Debt” has the meaning given to that term in the Subordination Agreement.

“Subordination Agreement” means the subordination agreement to be entered into substantially in
form of the draft dated the date of this Agreement on or prior to the Closing Date between, among
others, Quiksilver, Inc. as Parent, QS Finance as SG Financing Debtor, Société Générale, as
Security Agent, the Subordinated Creditors and the Intra-Group Debtors (in each case, as defined in
the Subordination Agreement).

“Subsidiary” means, in relation to any company, another company which is directly or indirectly
controlled by it within the meaning of article L.233-3 of the French Code de commerce. For the
avoidance of doubt, such definition shall apply to any company registered in any jurisdiction
whatsoever.

“Tanna” means Tanna, a French société à responsabilité limitée whose registered office is at 162
rue Belharra, 64500 Saint Jean de Luz, registered under the unique identification number 492 402
276 RCS Bayonne.

“TARGET2” means the Trans-European Automated Real-time Gross Settlement Express Transfer payment
system which utilises a single shared platform and which was launched on 19 November 2007.

“TARGET Day” means any day on which TARGET2 is open for the settlement of payments in euro.

“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature
(including any penalty or interest payable in connection with any failure to pay or any delay in
paying any of the same).

“Tax Consolidation Agreement” means the tax consolidation agreement effective as of 1 November 2005
entered into among the Company and certain of its French Subsidiaries.

“TEG Letter” has the meaning given to that term in Clause 13.5 (Effective Global Rate (Taux
Effectif Global)).

39

 

“Term” means each period determined under this Agreement for which the Issuing Bank is under a
liability under a Letter of Credit.

“Term Facility” means Facility A or Facility B.

“Term Loan” means a Facility A Loan or a Facility B Loan.

“Termination Date” means:

	(a)	 	in relation to Facility A, 31 July 2013;
	 
	(b)	 	in relation to Facility B, 31 July 2013;
	 
	(c)	 	in relation to the L/C Facility, 31 July 2013; and
	 
	(d)	 	in relation to the Revolving Facility, 31 July 2013.

“TopCo Obligors” means Quiksilver, Inc., QSH, Biarritz Holdings and Quiksilver Europa and “TopCo
Obligor” means any one of them as the context may require.

“Total Commitments” means the aggregate of the Total Facility A Commitments, the Total Facility B
Commitments, the Total L/C Facility Commitments and the Total Revolving Facility Commitments, being
€268,000,000 at the date of this Agreement.

“Total Facility A Commitments” means the aggregate of the Facility A Commitments, being €55,000,000
at the date of this Agreement.

“Total Facility B Commitments” means the aggregate of the Facility B Commitments, being
€115,000,000 at the date of this Agreement.

“Total L/C Facility Commitments” means the aggregate of the L/C Facility Commitments, being
€40,000,000 at the date of this Agreement.

“Total Revolving Facility Commitments” means the aggregate of the Revolving Facility Commitments,
being €58,000,000 at the date of this Agreement and as reduced in accordance with the terms of this
Agreement thereafter.

“Transaction Documents” means (i) the Finance Documents, (ii) the Note, (iii) all documents
evidencing the Na Pali ORAs and the Pilot ORAs, (iv) all documents evidencing all outstanding loans
made by Quiksilver, Inc. or any Subsidiary of the latter (other than the European Group) to any
member of the European Group (other than QSH), (v) the Tax Consolidation Agreement, (vi) the
Quiksilver, Inc Undertaking/Macquarie, (vii) the Quiksilver, Inc Undertaking/SG Financing, (viii)
the Quiksilver, Inc. Guarantee/SG Financing, (ix) the SG Financing Documents, (x) the NP Factoring
Agreements, (xi) the Stock Purchase Agreement and (xii) the Rossignol Documents.

“Transaction Security” means the Security created or expressed to be created in favour of the
Security Agent pursuant to the Transaction Security Documents.

“Transaction Security Documents” means each of the documents listed as being a Transaction Security
Document in Part V of Schedule 2 (Conditions Precedent), each of the documents listed as being a
Transaction Security Document in Part VI of Schedule 2

40

 

(Conditions Precedent) together with any other document entered into by any Obligor creating or
expressed to create any Security over all or any part of its assets in respect of the obligations
of any of the Obligors under any of the Finance Documents.

“Transfer Agreement” means an agreement substantially in the form set out in Schedule 5 (Form of
Transfer Agreement) or any other form agreed between the Agent and the Company.

“Transfer Date” means, in relation to a transfer, the later of:

	(a)	 	the proposed Transfer Date specified in the relevant Transfer Agreement; and
	 
	(b)	 	the date on which the Agent executes the relevant Transfer Agreement.

“Treasury Transactions” means any derivative transaction entered into in connection with protection
against or benefit from fluctuation in any rate or price.

“Tuamotu” means Tuamotu, a French société à responsabilité limitée whose registered office is at
162, rue Belharra, 64500 Saint Jean de Luz, registered under the unique identification number 497
841 064 RCS Bayonne.

“Tyax” means a société a responsabilite limitée, whose registered office is at 162 rue Belharra,
64500 Saint Jean de Luz, registered under the unique identification number 487 539 173 RCS Bayonne.

“UCP” means Uniform Customs and Practices for Documentary Credits, International Chamber of
Commerce Publication No. 600.

“Unpaid Sum” means any sum due and payable but unpaid by an Obligor under the Finance Documents.

“US GAAP” means generally accepted accounting principles as in effect in the United States of
America from time to time.

“US Group” means Quiksilver Americas, Inc. and its Subsidiaries.

“US Group Change of Control” means Quiksilver, Inc. ceasing to directly or indirectly (x) own at
least 95% of the share capital of Quiksilver Americas, Inc. (on a fully-diluted basis and/or on a
non-diluted basis), or (y) own at least 95% of the voting rights in Quiksilver Americas, Inc. (on a
fully-diluted basis and/or on a non-diluted basis) or (z) have the right or ability to control the
composition of the majority of the board of directors (or equivalent body) of Quiksilver Americas,
Inc.

“US Indenture” means the Indenture dated 22 July 2005 entered into among Quiksilver, Inc., the
Subsidiary Guarantors and Wilmington Trust Company as Trustee relating to the Senior Notes.

“US Term Loan Credit Agreement” means that certain credit agreement dated as of 31 July 2009 among
Quiksilver, Inc., Quiksilver Americas, the lenders party thereto and Rhône Group L.L.C.

“Utilisation” means a Loan or a Letter of Credit.

41

 

“Utilisation Date” means the date on which a Utilisation is made.

“Utilisation Request” means (i) a notice substantially in the relevant form set out in Part I of
Schedule 3 (Requests) or (ii) a L/C Request.

“VAT” means value added tax in any jurisdiction and any other tax of a similar nature.

“Working Capital Financing” means (i) any factoring programme replacing all or any portion of the
factoring programme under the NP Factoring Agreements, provided that the nature and
financial characteristics of such factoring programme are not substantially different from the
nature and financial characteristics of the factoring programme under the NP Factoring Agreements
and/or (ii) loans made or equity contributed by Quiksilver, Inc. or any of its Subsidiaries (other
than Biarritz Holdings and its Subsidiaries) to Na Pali in replacement of all or any portion of the
factoring programme under the NP Factoring Agreements which are subordinated pursuant to the
Subordination Agreement.

“2005 ABL Agreement” means the amended and restated credit agreement dated 3 June 2005 (as amended)
entered into among Quiksilver, Inc., Quiksilver Americas, Inc., Bank of America, N.A., Union Bank
of California, N.A., JPMorgan Chase Bank, N.A., JPMorgan Chase Bank, N.A., Toronto Branch, J.P.
Morgan Securities Inc. and certain financial institutions as lenders.

“2009 ABL Agreement” means that certain credit agreement dated as of the date hereof among
Quiksilver Americas, Inc, the other borrowers party thereto, Quiksilver, Inc., the lenders party
thereto, the ABL agent, Bank of America, N.A. and General Electric Capital Corporation, as
co-collateral agents, and the other agents party thereto, and any refinancings, refundings,
renewals or extensions thereof permitted hereunder.

	1.2	 	Construction
	 
	(a)	 	Unless a contrary indication appears, a reference in this Agreement to:

	 	(i)	 	the “Agent”, any “Arranger”, any “Finance Party”, any “Hedge Counterparty”, any
“Issuing Bank”, any “Lender”, any “Obligor”, any “Party”, any “Secured Party”, the
“Security Agent” or any other person shall be construed so as to include its successors
in title, permitted assigns and permitted transferees and, in the case of the Security
Agent, any person for the time being appointed as Security Agent or Security Agents in
accordance with the Finance Documents;
	 
	 	(ii)	 	a document in “agreed form” is a document which is previously agreed in writing
by or on behalf of the Company and the Agent;
	 
	 	(iii)	 	“assets” includes present and future properties, revenues and rights of every
description;
	 
	 	(iv)	 	“corporate reconstruction” includes in relation to any company any contribution
of part of its business in consideration of shares (apport partiel d’actifs) and any
demerger (scission) implemented in accordance with articles L.236-1 to L.236-24 of the
French Code de commerce;

42

 

	 	(v)	 	a “Finance Document” or a “Transaction Document” or any other agreement or
instrument is a reference to that Finance Document or Transaction Document or other
agreement or instrument as amended, novated, supplemented, extended or restated;
	 
	 	(vi)	 	“gross negligence” means “faute lourde”;
	 
	 	(vii)	 	a “guarantee” includes any guarantee, any “cautionnement”, “aval”, any
“garantie” and any indemnity or similar assurance against loss which is independent
from the debt to which it relates;
	 
	 	(viii)	 	“indebtedness” includes any obligation (whether incurred as principal or as surety)
for the payment or repayment of money, whether present or future, actual or contingent;
	 
	 	(ix)	 	“merger” includes any “fusion” implemented in accordance with articles L.236-1
to L.236.24 of the French Code de commerce;
	 
	 	(x)	 	a Lender’s “participation” in relation to a Letter of Credit, shall be
construed as a reference to the relevant amount that is or may be payable by a Lender
in relation to that Letter of Credit;
	 
	 	(xi)	 	a “person” includes any individual, firm, company, corporation, government,
state or agency of a state or any grouping (whether or not having separate legal
personality);
	 
	 	(xii)	 	a “regulation” includes any regulation, rule, official directive, request or
guideline (whether or not having the force of law) of any governmental,
intergovernmental or supranational body, agency, department or regulatory,
self-regulatory or other authority or organization;
	 
	 	(xiii)	 	a “security interest” includes any type of security (“sûreté réelle”) and transfer by
way of security;
	 
	 	(xiv)	 	“trustee, fiduciary and fiduciary duty” has in each case the meaning given to
such term under any applicable law;
	 
	 	(xv)	 	“wilful misconduct” means “dol”;
	 
	 	(xvi)	 	a provision of law is a reference to that provision as amended or re-enacted;
and
	 
	 	(xvii)	 	unless a contrary indication appears, a time of day is a reference to Paris time.

	(b)	 	Section, Clause and Schedule headings are for ease of reference only.
	 
	(c)	 	Unless a contrary indication appears, a term used in any other Finance Document or in any
notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement.
	 
	(d)	 	A Borrower providing “cash cover” for a Letter of Credit or an Ancillary Facility means a
Borrower paying an amount in the currency of the Letter of Credit (or, as the

43

 

	 	 	case may be, Ancillary Facility) to an interest-bearing account in the name of the Borrower
and the following conditions being met:

	 	(i)	 	the account is with the Security Agent or with the Issuing Bank or Ancillary
Lender for which that cash cover is to be provided;
	 
	 	(ii)	 	subject to paragraph (b) of Clause 7.6 (Cash cover by Borrower) until no amount
is or may be outstanding under that Letter of Credit or Ancillary Facility, withdrawals
from the account may only be made to pay a Finance Party amounts due and payable to it
under this Agreement in respect of that Letter of Credit or Ancillary Facility; and
	 
	 	(iii)	 	the Borrower has, subject to the Agreed Security Principles, executed a
security document over that account, in form and substance reasonably satisfactory to
the Security Agent or the Lender or Ancillary Lender with which that account is held,
creating a first ranking security interest over that account.

	(e)	 	A Default (other than an Event of Default) is “continuing” if it has not been remedied or
waived and an Event of Default is “continuing” if it has not been remedied or waived.
	 
	(f)	 	A Borrower “repaying” or “prepaying” a Letter of Credit or Ancillary Outstandings means:

	 	(i)	 	that Borrower providing cash cover for that Letter of Credit or in respect of
the Ancillary Outstandings;
	 
	 	(ii)	 	the maximum amount payable under the Letter of Credit or Ancillary Facility
being reduced or cancelled in accordance with its terms; or
	 
	 	(iii)	 	the Issuing Bank or Ancillary Lender being satisfied that it has no further
liability under that Letter of Credit or Ancillary Facility,

and the amount by which a Letter of Credit is, or Ancillary Outstandings are, repaid or prepaid
under paragraphs (f)(i) and (f)(ii) above is the amount of the relevant cash cover or reduction.

	(g)	 	An amount borrowed includes any amount utilised by way of Letter of Credit or under an
Ancillary Facility.
	 
	(h)	 	A Lender funding its participation in a Utilisation includes a Lender participating in a
Letter of Credit.
	 
	(i)	 	An outstanding amount of a Letter of Credit at any time is the maximum amount that is or may
be payable by the relevant Borrower in respect of that Letter of Credit at that time.
	 
	(j)	 	Without prejudice to the generality of any provision of this Agreement, in this Agreement
where it relates to an Obligor organized under the laws of Luxembourg, a reference to:

44

 

	 	(i)	 	a winding-up, administration or dissolution includes, without
limitation, bankruptcy (faillite), insolvency, liquidation, composition with
creditors (concordat préventif de faillite), moratorium or reprieve from
payment (sursis de paiement), controlled management (gestion contrôlée),
fraudulent conveyance (actio pauliana), general settlement with creditors,
reorganization or similar laws affecting the rights of creditors generally;
	 
	 	(ii)	 	a receiver, administrative receiver, administrator, trustee,
custodian, sequestrator, conservator or similar officer includes, without
limitation, a juge délégué, commissaire, juge-commissaire, mandataire ad hoc,
administrateur provisoire, liquidateur or curateur;
	 
	 	(iii)	 	a lien or security interest includes any hypothèque,
nantissement, gage, privilège, sûreté réelle, droit de retention, and any type
of security in rem (sûreté réelle) or agreement or arrangement having a similar
effect and any transfer of title by way of security;
	 
	 	(iv)	 	a guarantee includes any cautionnement, aval and any garantie
which is independent from the debt to which it relates; and
	 
	 	(v)	 	a person being unable to pay its debts includes that person
being in a state of cessation de paiements,

	 	 	in each case, as such terms would be interpreted under the laws of Luxembourg.
	 
	(k)	 	Prior to the Closing Date, each reference in this Agreement (except in the Schedules) to the
Subordination Agreement or the Security Sharing Agreement shall be deemed to refer to each
such agreement in the draft form dated the date of this Agreement as if it were in effect in
such form on and from the date of this Agreement.

SECTION 2 — THE FACILITIES

	2.	 	THE FACILITIES
	 
	2.1	 	The Facilities
	 
	(a)	 	Subject to the terms of this Agreement, the Lenders make available:

	 	(i)	 	a Base Currency term loan facility in an aggregate amount equal to the Total
Facility A Commitments;
	 
	 	(ii)	 	a Base Currency term loan facility in an aggregate amount equal to the Total
Facility B Commitments;
	 
	 	(iii)	 	a multicurrency revolving letter of credit facility in an aggregate amount the
Base Currency Amount of which is equal to the Total L/C Facility Commitments; and
	 
	 	(iv)	 	a Base Currency revolving credit facility in an aggregate amount equal to the
Total Revolving Facility Commitments.

45

 

	(b)	 	The Facility A will be available to the Company and the Facility B, the L/C Facility and the
Revolving Facility will be available to Na Pali.
	 
	(c)	 	Subject to the terms of this Agreement and the Ancillary Documents, the Ancillary Lender may
make available an Ancillary Facility to Na Pali in place of all or part of its Commitment
under the Revolving Facility.
	 
	2.2	 	Finance Parties’ rights and obligations
	 
	(a)	 	The obligations of each Finance Party under the Finance Documents are several (conjointes et
non solidaires). Failure by a Finance Party to perform its obligations under the Finance
Documents does not affect the obligations of any other Party under the Finance Documents. No
Finance Party is responsible for the obligations of any other Finance Party under the Finance
Documents.
	 
	(b)	 	The rights of each Finance Party under or in connection with the Finance Documents are
separate and independent rights and any debt arising under the Finance Documents to a Finance
Party from an Obligor shall be a separate and independent debt.
	 
	(c)	 	A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce
its rights under the Finance Documents.
	 
	2.3	 	Obligors’ Agent
	 
	(a)	 	Each Obligor (other than the Company) by its execution of this Agreement or an Accession
Letter irrevocably appoints the Company to act on its behalf as its agent in relation to the
Finance Documents and irrevocably authorises:

	 	(i)	 	the Company on its behalf to supply all information concerning itself
contemplated by this Agreement to the Finance Parties and to give all notices and
instructions (including, in the case of a Borrower, Utilisation Requests), to execute
on its behalf any Accession Letter, to make such agreements and to effect the relevant
amendments, supplements and variations capable of being given, made or effected by any
Obligor notwithstanding that they may affect the Obligor (including, without
limitation, by increasing the obligations of such Obligor howsoever fundamentally,
whether by increasing the liabilities guaranteed by it or otherwise), without further
reference to or the consent of that Obligor; and
	 
	 	(ii)	 	each Finance Party to give any notice, demand or other communication to that
Obligor pursuant to the Finance Documents to the Company,

	 	 	and in each case the Obligor shall be bound as though the Obligor itself had given the
notices and instructions (including, without limitation, any Utilisation Requests) or
executed or made the agreements or effected the amendments, supplements or variations, or
received the relevant notice, demand or other communication.
	 
	(b)	 	Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement,
variation, notice or other communication given or made by the Obligors’ Agent or given to the
Obligors’ Agent under any Finance Document on behalf of another Obligor or in connection with
any Finance Document (whether or not known

46

 

	 	 	to any other Obligor and whether occurring before or after such other Obligor became an
Obligor under any Finance Document) shall be binding for all purposes on that Obligor as if
that Obligor had expressly made, given or concurred with it. In the event of any conflict
between any notices or other communications of the Obligors’ Agent and any other Obligor,
those of the Obligors’ Agent shall prevail.
	 
	3.	 	PURPOSE
	 
	3.1	 	Purpose
	 
	(a)	 	The Company shall apply all amounts borrowed by it under Facility A towards refinancing all
of its Financial Indebtedness under the Pilot Facility Agreement as described in the Structure
Memorandum and the Funds Flow Statement.
	 
	(b)	 	Na Pali shall apply all amounts borrowed by it under Facility B towards:

	 	(i)	 	refinancing the NP Perimeter Indebtedness To Be Refinanced; and
	 
	 	(ii)	 	payment of breakage costs and any other costs related to such refinancing
(including hedge close-out costs, if any),

	 	 	in each case, as described in the Structure Memorandum and the Funds Flow Statement.
	 
	(c)	 	Na Pali shall apply all amounts borrowed by it under the Revolving Facility, the L/C Facility
and any Letter of Credit towards the general corporate and working capital purposes of the
Group (including towards the payment of fees, costs and expenses incurred in connection with
the implementation of the Facilities but not towards acquisitions of companies, businesses or
undertakings or prepayment of any Term Loan). Na Pali shall apply all utilizations of any
Ancillary Facility for the purpose of the cash pooling of the Group in accordance with the
Cash Pooling Agreement (but not towards acquisitions of companies, businesses or undertakings
or prepayment of any Term Loan or towards prepayment of any Revolving Facility Utilisation or
any L/C Facility Utilisation).
	 
	3.2	 	Monitoring

No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to
this Agreement.

	4.	 	CONDITIONS OF UTILISATION
	 
	4.1	 	Initial conditions precedent

The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) in relation to
any Utilisation if on or before the Utilisation Date for that Utilisation, (i) in the case of a
Utilisation on the Closing Date, the Agent has received all of the documents and other evidence
listed in Part I and Part II of Schedule 2 (Conditions Precedent) in form and substance
satisfactory to each of the Lenders and (ii) in the case of any other Utilisation, the Agent has
received all of the documents and other evidence listed in Part III of Schedule 2 (Conditions
Precedent) in form and substance satisfactory to the Agent. The Agent shall notify the Company and
the Lenders promptly such satisfaction.

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	4.2	 	Further conditions precedent

Subject to Clause 4.1 (Initial conditions precedent), the Lenders will only be obliged to comply
with Clause 5.4 (Lenders’ participation), if on the date of the Utilisation Request and on the
proposed Utilisation Date:

	(a)	 	(i) in the case of a Rollover Loan, no Event of Default is continuing or would result from
the proposed Loan, (ii) in the case of any Utilisation (other than a Rollover Loan or a
Utilisation on the Closing Date), no Default is continuing or would result from the proposed
Utilisation and (iii) in the case of any Utilisation on the Closing Date, no Default (other
than a Default referred to in Clause 26.16 (Material adverse change)) is continuing or would
result from the proposed Utilisation; and
	 
	(b)	 	in relation to any Utilisation on the Closing Date, all the representations and warranties in
Clause 22 (Representations) (other than representations and warranties set out in paragraphs
(d) and (g) of Clause 22.13 (Financial Statements)) or, in relation to any other Utilisation,
the Repeating Representations to be made by each Obligor are true and correct in all material
respects.
	 
	4.3	 	Conditions relating to Optional Currencies
	 
	(a)	 	A currency will constitute an Optional Currency in relation to an L/C Facility Utilisation
if:

	 	(i)	 	it is readily available in the amount required and freely convertible into the
Base Currency in the Relevant Interbank Market on the Quotation Day and the Utilisation
Date for that Utilisation; and
	 
	 	(ii)	 	is US dollars or has been approved by the Agent (acting on the instructions of
all the Lenders) on or prior to receipt by the Agent of the relevant Utilisation
Request for that Utilisation.

	(b)	 	If the Agent has received a written request from the Company for a currency to be approved
under paragraph (a)(ii) above, the Agent will confirm to the Company by the Specified Time:

	 	(i)	 	whether or not the Lenders have granted their approval; and
	 
	 	(ii)	 	if approval has been granted, the minimum amount for any subsequent Utilisation
in that currency.

	4.4	 	Maximum number of Utilisations
	 
	(a)	 	A Borrower (or the Company) may not deliver a Utilisation Request if as a result of the
proposed Utilisation:

	 	(i)	 	2 or more Facility A Loans would be outstanding;
	 
	 	(ii)	 	2 or more Facility B Loans would be outstanding; or

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	 	(iii)	 	15 or more Revolving Facility Utilisations would be outstanding, provided
that a minimum period of 5 Business Days shall have expired between any two
Revolving Facility Utilisations.

	(b)	 	A Borrower (or the Company) may not request that a Facility A Loan or a Facility B Loan be
divided.

SECTION 3 — UTILISATION

	5.	 	UTILISATION — LOANS
	 
	5.1	 	Delivery of a Utilisation Request

A Borrower (or the Company on its behalf) may utilise a Facility by delivery to the Agent of a duly
completed Utilisation Request not later than the Specified Time.

	5.2	 	Completion of a Utilisation Request for Loans
	 
	(a)	 	Each Utilisation Request for a Loan is irrevocable and will not be regarded as having been
duly completed unless:

	 	(i)	 	it identifies the Facility to be utilised;
	 
	 	(ii)	 	the proposed Utilisation Date is a Business Day within the Availability Period
applicable to that Facility;
	 
	 	(iii)	 	the currency and amount of the Utilisation comply with Clause 5.3 (Currency
and amount); and
	 
	 	(iv)	 	the proposed Interest Period complies with Clause 14 (Interest Periods).

	(b)	 	Multiple Utilisations may be requested in a Utilisation Request where the proposed
Utilisation Date is the Closing Date. Only one Utilisation may be requested in each
subsequent Utilisation Request.

	5.3	 	Currency and amount
	 
	(a)	 	The currency specified in a Utilisation Request must be:

	 	(i)	 	in relation to a Term Facility, the Base Currency; and
	 
	 	(ii)	 	in relation to a Revolving Facility Loan, the Base Currency.

	(b)	 	The amount of the proposed Utilisation must be:

	 	(i)	 	for Facility A an amount not to exceed the Available Facility; or
	 
	 	(ii)	 	for Facility B an amount not to exceed the Available Facility; or
	 
	 	(iii)	 	in the case of a Revolving Facility Loan, a minimum of €3,000,000 or, if less,
the Available Facility.

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	5.4	 	Lenders’ participation
	 
	(a)	 	If the conditions set out in this Agreement have been met, each Lender shall make its
participation in each Loan available by the Utilisation Date through its Facility Office.
	 
	(b)	 	The amount of each Lender’s participation in each Loan will be equal to the proportion borne
by its Available Commitment to the Available Facility immediately prior to making the Loan.
	 
	5.5	 	Limitations on Utilisations
	 
	(a)	 	The Revolving Facility shall not be utilised unless each Term Facility has been utilised in
full.
	 
	(b)	 	A Term Facility may only be utilised on the Closing Date.
	 
	(c)	 	The maximum aggregate amount of the Ancillary Commitments of all the Lenders shall not at any
time exceed €3,000,000.
	 
	5.6	 	Cancellation of Commitments
	 
	(a)	 	The Facility A Commitments which, at that time, are unutilized shall be immediately cancelled
at the end of the Availability Period for Facility A.
	 
	(b)	 	The Facility B Commitments which, at that time, are unutilized shall be immediately cancelled
at the end of the Availability Period for Facility B.
	 
	(c)	 	The Revolving Facility Commitments which, at that time, are unutilized shall be immediately
cancelled at the end of the Availability Period for the Revolving Facility.
	 
	5.7	 	Clean down

The Company shall ensure that the aggregate of the Base Currency Amounts of:

	(a)	 	all Revolving Facility Loans; and
	 
	(b)	 	any cash loan element of the Ancillary Outstandings under all the Ancillary Facilities,

(as confirmed in a certificate signed by a legal representative of the Company provided to the
Agent within 5 Business Days after the end of each twelve-month period starting from the date of
this Agreement (or, in the case of sub-paragraph (iv) below, within 5 Business Days after the
relevant 10 successive day period)) shall not exceed for a period of at least 10 successive days
(i) 80% of the Total Revolving Facility Commitments in effect during the period commencing on the
date of this Agreement and ending on the first anniversary of this Agreement, (ii) 80% of the Total
Revolving Facility Commitments in effect during the period commencing on the first day following
the first anniversary of this Agreement and ending on the second anniversary of this Agreement,
(iii) 50% of the Total Revolving Facility Commitments in effect during the period commencing on the
first day following the second anniversary of this Agreement and ending on the third anniversary of
this Agreement and (iv) €0 for any twelve-month period commencing on the first day following the
third anniversary of this Agreement. Not less than 2 months shall elapse between two such periods.

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	6.	 	UTILISATION — LETTERS OF CREDIT
	 
	6.1	 	The L/C Facility
	 
	(a)	 	The L/C Facility shall only be utilised by way of Letters of Credit.
	 
	(b)	 	The L/C Facility shall not be utilised unless each Term Facility has been utilised in full.
	 
	6.2	 	Delivery of an L/C Request for Letters of Credit

Na Pali (or the Company on its behalf) may request a Letter of Credit to be issued by delivery to
the Agent of a duly completed L/C Request not later than the Specified Time.

	6.3	 	Completion of an L/C Request for Letters of Credit
	 
	(a)	 	Each L/C Request for a Letter of Credit is irrevocable and will not be regarded as having
been duly completed unless:

	 	(i)	 	it specifies that it is for a Letter of Credit;
	 
	 	(ii)	 	it identifies Na Pali as the applicant/account party of the Letter of Credit;
	 
	 	(iii)	 	it identifies the Issuing Bank which has agreed to issue the Letter of Credit;
	 
	 	(iv)	 	the proposed Utilisation Date is a Business Day within the Availability Period
applicable to the L/C Facility;
	 
	 	(v)	 	the currency and amount of the Letter of Credit comply with Clause 6.4
(Currency and amount);
	 
	 	(vi)	 	the form of Letter of Credit in a form agreed by the Issuing Bank and Na Pali
is attached and it specifies that it is subject to the UCP;
	 
	 	(vii)	 	the Expiry Date of the Letter of Credit falls on or before the date which is
30 days prior to the Termination Date in relation to the L/C Facility;
	 
	 	(viii)	 	the Term of the Letter of Credit is 180 days or less (as may be extended pursuant to
Clause 6.6 (Extension of a Letter of Credit));
	 
	 	(ix)	 	the delivery instructions for the Letter of Credit are specified;
	 
	 	(x)	 	the entity for the account of which the Letter of Credit is issued is Na Pali,
Emerald Coast, Omareef or any other entity approved by the Issuing Bank and the
Majority Lenders (it being understood, for the avoidance of doubt, that Na Pali shall
remain liable for all sums due in respect of such Letter of Credit); and
	 
	 	(xi)	 	the identity of the beneficiary of the Letter of Credit (which may not be, for
the avoidance of doubt, Quiksilver, Inc. or any of its Subsidiaries) is approved by the
relevant Issuing Bank and the country in which the beneficiary is registered is an
Approved Jurisdiction.

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	(b)	 	If the details and instructions in the L/C Request are not sufficiently specific, the
relevant Issuing Bank shall inform Na Pali within two (2) Business Days following receipt of
the L/C Request and the Letter Credit will not be issued unless and until such Issuing Bank is
satisfied that it has received the necessary additional details and instructions.
	 
	6.4	 	Currency and amount
	 
	(a)	 	The currency specified in a L/C Request must be the Base Currency or an Optional Currency.
	 
	(b)	 	Subject to paragraph (c) below, the amount of the proposed Letter of Credit must be an amount
whose Base Currency Amount is not more than the Available Facility and which is:

	 	(i)	 	if the currency selected is the Base Currency, a minimum of €150,000 or, if
less, the Available Facility; or
	 
	 	(ii)	 	if the currency selected is U.S. dollars, a minimum of $150,000 or, if less,
the Available Facility; or
	 
	 	(iii)	 	if the currency selected is an Optional Currency other than US dollars, the
minimum amount specified by the Agent pursuant to paragraph (b)(ii) of Clause 4.3
(Conditions relating to Optional Currencies) or, if less, the Available Facility.

	(c)	 	The maximum aggregate Base Currency Amount of all Letters of Credit shall not exceed
€40,000,000 at any time.
	 
	6.5	 	Issuance of Letters of Credit
	 
	(a)	 	If the conditions set out in this Agreement have been met and (other than with respect to an
Existing Letter of Credit) the form of the Letter of Credit has been agreed by the relevant
Issuing Bank and the Agent, such Issuing Bank shall issue the Letter of Credit on the
Utilisation Date.
	 
	(b)	 	Subject to Clause 4.1 (Initial conditions precedent), the Issuing Bank will only be obliged
to comply with paragraph (a) above, if on the date of the L/C Request or Extension Request and
on the proposed Utilisation Date:

	 	(i)	 	in the case of a Letter of Credit to be renewed in accordance with Clause 6.6
(Extension of a Letter of Credit) no Event of Default is continuing or would result
from the proposed Utilisation and, in the case of any other Utilisation, no Default is
continuing or would result from the proposed Utilisation; and
	 
	 	(ii)	 	in relation to any Utilisation on the Closing Date, all the representations and
warranties in Clause 22 (Representations) or, in relation to any other Utilisation, the
Repeating Representations to be made by each Obligor are true and correct in all
material respects.

	(c)	 	The amount of each Lender’s participation in each Letter of Credit will be equal to the
proportion borne by its Available Commitment to the Available Facility (in each case

52

 

	 	 	
in relation to the L/C Facility) immediately prior to the issuance of the Letter of Credit.
	 
	(d)	 	The Agent shall determine the Base Currency Amount of each Letter of Credit which is to be
issued in an Optional Currency and shall notify the Issuing Bank and each Lender of the
details of the requested Letter of Credit and its participation (which shall equal its L/C
Proportion) in that Letter of Credit by the Specified Time.
	 
	6.6	 	Extension of a Letter of Credit
	 
	(a)	 	Na Pali (or the Company on its behalf) may request that any Letter of Credit (other than an
Existing Letter of Credit) issued on behalf of Na Pali be extended by delivery to the Agent of
an Extension Request in substantially similar form to a Utilisation Request for a Letter of
Credit by the Specified Time.
	 
	(b)	 	The Finance Parties shall treat any Extension Request in the same way as an L/C Request
except that the conditions set out in paragraph (a)(vi) of Clause 6.3 (Completion of an L/C
Request for Letters of Credit) shall not apply.
	 
	(c)	 	The terms of each extended Letter of Credit shall be the same as those of the relevant Letter
of Credit immediately prior to its extension, except that:

	 	(i)	 	its amount may be less than the amount of the Letter of Credit immediately
prior to its extension; and
	 
	 	(ii)	 	its Term shall end on the proposed Expiry Date specified in the Extension
Request.

	(d)	 	If the conditions set out in this Agreement have been met, the relevant Issuing Bank shall
amend any Letter of Credit (other than an Existing Letter of Credit) pursuant to an Extension
Request.
	 
	6.7	 	Reduction of a Letter of Credit
	 
	(a)	 	If, on the proposed Utilisation Date of a Letter of Credit, any of the Lenders under the L/C
Facility is a Non-Acceptable L/C Lender and:

	 	(i)	 	that Lender has failed to provide cash collateral to the Issuing Bank in
accordance with Clause 7.5 (Cash collateral by Non-Acceptable L/C Lender); and
	 
	 	(ii)	 	either:

	 	(A)	 	the Issuing Bank has not required Na Pali to provide cash cover
pursuant to Clause 7.6 (Cash cover by Borrower); or
	 
	 	(B)	 	Na Pali has failed to provide cash cover to the Issuing Bank in
accordance with Clause 7.6 (Cash cover by Borrower),

the Issuing Bank may reduce the amount of that Letter of Credit by an amount equal to the
amount of the participation of that Non-Acceptable L/C Lender in respect of that Letter of
Credit and that Non-Acceptable L/C Lender shall be deemed not to have

53

 

any participation (or obligation to indemnify the Issuing Bank) in respect of that Letter of
Credit for the purposes of the Finance Documents.

	(b)	 	The Issuing Bank shall notify the Agent of each reduction made pursuant to this Clause 6.7.
	 
	(c)	 	This Clause 6.7 shall not affect the participation of each other Lender in that Letter of
Credit.
	 
	6.8	 	Revaluation of Letters of Credit
	 
	(a)	 	If any Letters of Credit are denominated in an Optional Currency, the Agent shall on 31 July
and 31 January of each Financial Year falling after the date of the Letter of Credit,
recalculate the Base Currency Amount of each Letter of Credit by notionally converting into
the Base Currency the outstanding amount of that Letter of Credit on the basis of the Agent’s
Spot Rate of Exchange on the date of calculation.
	 
	(b)	 	The Company shall, if requested by the Agent within 3 Business Days of any calculation under
paragraph (a) above, ensure that within three Business Days sufficient L/C Facility
Utilisations are prepaid to prevent the Base Currency Amount of the L/C Facility Utilisations
exceeding the Total L/C Facility Commitments following any adjustment to a Base Currency
Amount under paragraph (a) of this Clause 6.8.
	 
	6.9	 	Cancellation of L/C Facility Commitments

The L/C Facility Commitments, which, at that time, are unutilized shall be immediately cancelled at
the end of the Availability Period for the L/C Facility.

	7.	 	LETTERS OF CREDIT
	 
	7.1	 	Existing Letters of Credit

Schedule 16 (Existing Letters of Credit) hereto contains on the date hereof a description of
certain letters of credit issued (or deemed issued) by the Initial Issuing Bank and which shall be
outstanding on the Closing Date (and setting forth, with respect to each such letter of credit, (i)
the letter of credit number, (ii) the name(s) of the account party or account parties, (iii) the
face amount (including the currency in which such letter of credit is denominated), (iv) the name
of the beneficiary and (v) the expiry date). Each such letter of credit, until its expiration and
reimbursement in full (to the extent drawn) (an “Existing Letter of Credit”) shall, on the Closing
Date and once each Term Facility has been drawn in full, constitute a “Letter of Credit” for all
purposes of this Agreement, issued, for purposes of Clause 6.5 (Issuance of Letters of Credit), on
the Closing Date. For the avoidance of doubt, no Existing Letter of Credit may be extended.

	7.2	 	Immediately payable

If a Letter of Credit or any amount outstanding under a Letter of Credit is expressed to be
immediately payable, Na Pali shall repay or prepay that amount immediately.

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	7.3	 	Claims under a Letter of Credit
	 
	(a)	 	Na Pali irrevocably and unconditionally authorises the Issuing Banks to pay any claim made or
purported to be made under a Letter of Credit requested by it (or requested by the Company on
its behalf) and which appears on its face to be in order (in this Clause 7, a “claim”).
	 
	(b)	 	Na Pali shall immediately on demand pay to the relevant Issuing Bank an amount equal to the
amount of any claim.
	 
	(c)	 	Na Pali acknowledges that each Issuing Bank:

	 	(i)	 	is not obliged to carry out any investigation or seek any confirmation from any
other person before paying a claim; and
	 
	 	(ii)	 	deals in documents only and will not be concerned with the legality of a claim
or any underlying transaction or any available set-off, counterclaim or other defence
of any person.

	(d)	 	The obligations of Na Pali under this Clause 7 will not be affected by:

	 	(i)	 	the sufficiency, accuracy or genuineness of any claim or any other document; or
	 
	 	(ii)	 	any incapacity of, or limitation on the powers of, any person signing a claim
or other document.

	(e)	 	Each of the Parties acknowledges and agrees that, notwithstanding anything to the contrary
contained herein, the obligations of the Issuing Banks to examine any documents presented in
connection with a claim shall be limited to those set forth in the UCP.
	 
	7.4	 	Indemnities
	 
	(a)	 	Na Pali shall immediately on demand indemnify the Issuing Banks against any cost, loss or
liability incurred by the Issuing Banks (otherwise than by reason of such Issuing Bank’s gross
negligence or wilful misconduct) in acting as the Issuing Bank under any Letter of Credit
requested by (or on behalf of) Na Pali.
	 
	(b)	 	Each Lender shall (according to its L/C Proportion) immediately on demand from the relevant
Issuing Bank indemnify such Issuing Bank against any cost, loss or liability incurred by that
Issuing Bank (including, without limitation, any losses as a result of the failure of Na Pali
to reimburse the Issuing Bank in full for the amount of any claim pursuant to Clause 7.3(b)
(Claims under a Letter of Credit)) (otherwise than by reason of the Issuing Bank’s gross
negligence or wilful misconduct) in acting as the Issuing Bank under any Letter of Credit
(unless the Issuing Bank has been reimbursed by an Obligor pursuant to a Finance Document).
	 
	(c)	 	If any Lender is not permitted (by its constitutional documents or any applicable law) to
comply with paragraph (b) above, then that Lender will not be obliged to comply with paragraph
(b) and shall instead be deemed to have taken, on the date the Letter of Credit is issued (or
if later, on the date the Lender’s participation in the Letter of

55

 

	 	 	Credit is transferred or assigned to the Lender in accordance with the terms of this
Agreement), an undivided interest and participation in the Letter of Credit in an amount
equal to its L/C Proportion of that Letter of Credit. On receipt of demand from the Issuing
Bank, that Lender shall pay to the Issuing Bank an amount equal to its L/C Proportion of the
amount demanded.
	 
	(d)	 	Na Pali shall immediately on demand reimburse any Lender for any payment it makes to the
Issuing Bank under this Clause 7.4 in respect of a Letter of Credit.
	 
	(e)	 	Whenever the Issuing Bank receives a payment of a reimbursement obligation as to which it has
received any payments from the Lenders pursuant to clause (c) above, the Issuing Bank shall
pay to each such Lender which has paid its L/C Proportion thereof (and which has not been
reimbursed directly by Na Pali therefore pursuant to paragraph (d) above) an amount equal to
such Lender’s share (based upon the proportionate aggregate amount originally funded by such
Lender to the aggregate amount funded by all Lenders) of the principal amount of such
reimbursement obligation and interest thereon accruing after the purchase of the respective
participations.
	 
	(f)	 	The obligations of each Lender or Na Pali under this Clause are continuing obligations and
will extend to the ultimate balance of sums payable by that Lender or Na Pali in respect of
any Letter of Credit, regardless of any intermediate payment or discharge in whole or in part.
	 
	(g)	 	The obligations of any Lender or Na Pali under this Clause will not be affected by any act,
omission, matter or thing which, but for this Clause, would reduce, release or prejudice any
of its obligations under this Clause (without limitation and whether or not known to it or any
other person) including:

	 	(i)	 	any time, waiver or consent granted to, or composition with, any Obligor, any
beneficiary under a Letter of Credit or any other person;
	 
	 	(ii)	 	the release of any other Obligor or any other person under the terms of any
composition or arrangement with any creditor or any member of the Group;
	 
	 	(iii)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or neglect to perfect, take up or enforce, any rights against, or security over assets
of, any Obligor, any beneficiary under a Letter of Credit or other person or any
non-presentation or non-observance of any formality or other requirement in respect of
any instrument or any failure to realise the full value of any security;
	 
	 	(iv)	 	any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of an Obligor, any beneficiary under a
Letter of Credit or any other person;
	 
	 	(v)	 	any amendment (however fundamental) or replacement of a Finance Document, any
Letter of Credit or any other document or security;

56

 

	 	(vi)	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Finance Document, any Letter of Credit or any other document or security;
	 
	 	(vii)	 	any insolvency or similar proceedings;
	 
	 	(viii)	 	the existence of any claim, setoff, defense, counterclaim or other right which Na
Pali or any member of the Group may have at any time against a beneficiary named in a
Letter of Credit, any transferee of any Letter of Credit (or any person for whom any
such transferee may be acting), the Agent, any Lender (including in its capacity as an
Issuing Bank), or any other person, whether in connection with this Agreement, any
Letter of Credit, the transactions contemplated herein or any unrelated transactions
(including any underlying transaction between Na Pali or any member of the Group and
the beneficiary named in any such Letter of Credit); or
	 
	 	(ix)	 	the occurrence of any Default.

	7.5	 	Cash collateral by Non-Acceptable L/C Lender
	 
	(a)	 	If, at any time, a Lender under the L/C Facility is a Non-Acceptable L/C Lender, the Issuing
Bank may, by notice to that Lender, request that Lender to pay and that Lender shall pay, on
or prior to the date falling 3 Business Days after the request by the Issuing Bank, an amount
equal to that Lender’s L/C Proportion of the outstanding amount of a Letter of Credit and in
the currency of that Letter of Credit to an interest-bearing account held in the name of that
Lender with the Issuing Bank.
	 
	(b)	 	The Non-Acceptable L/C Lender to whom a request has been made in accordance with paragraph
(a) above shall enter into a security document or other form of collateral arrangement over
the account, in form and substance satisfactory to the Issuing Bank, as collateral for any
amounts due and payable under the Finance Documents by that Lender to the Issuing Bank in
respect of that Letter of Credit.
	 
	(c)	 	Until the outstandings under that Letter of Credit have been reduced to zero and such Letter
of Credit has been cancelled, withdrawals from the account may only be made to pay to the
Issuing Bank amounts due and payable to the Issuing Bank by the Non-Acceptable L/C Lender
under the Finance Documents in respect of that Letter of Credit.
	 
	(d)	 	Each Lender under the L/C Facility shall notify the Agent and the Company:

	 	(i)	 	on the date of this Agreement or on any later date on which it becomes such a
Lender in accordance with Clause 27 (Changes to the Lenders) whether it is a
Non-Acceptable L/C Lender; and
	 
	 	(ii)	 	as soon as practicable upon becoming aware of the same, that it has become a
Non-Acceptable L/C Lender,

	 	 	and an indication in Schedule 1 (The Original Lenders) or in a Transfer Agreement or to that
effect will constitute a notice under paragraph (d)(i) to the Agent and, upon delivery in
accordance with Clause 27.6 (Copy of Transfer Agreement to Company), to the Company.

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	(e)	 	Any notice received by the Agent pursuant to paragraph (d) above shall constitute notice to
the Issuing Bank of that Lender’s status and the Agent shall, upon receiving each such notice,
promptly notify the Issuing Bank of that Lender’s status as specified in that notice.
	 
	(f)	 	If a Lender who has provided cash collateral in accordance with this Clause 7.5:

	 	(i)	 	ceases to be a Non-Acceptable L/C Lender; and
	 
	 	(ii)	 	no amount is due and payable by that Lender in respect of a Letter of Credit,

	 	 	that Lender may, at any time it is not a Non-Acceptable L/C Lender, by notice to the Issuing
Bank request that an amount equal to the amount of the cash provided by it as collateral in
respect of that Letter of Credit (together with any accrued interest) standing to the credit
of the relevant account held with the Issuing Bank be returned to it and the Issuing Bank
shall pay that amount to the Lender within 3 Business Days after the request from the Lender
(and shall cooperate with the Lender in order to procure that the relevant security or
collateral arrangement is released and discharged).
	 
	7.6	 	Cash cover by Borrower
	 
	(a)	 	If a Lender which is a Non-Acceptable L/C Lender fails to provide cash collateral (or
notifies the Issuing Bank that it will not provide cash collateral) in accordance with Clause
7.5 (Cash collateral by Non-Acceptable L/C Lender) and the Issuing Bank notifies the Company
(with a copy to the Agent) that it requires Na Pali to provide cash cover to an account with
the Issuing Bank in an amount equal to that Lender’s L/C Proportion of the outstanding amount
of that Letter of Credit and in the currency of that Letter of Credit then Na Pali shall do so
within 5 Business Days after the notice is given.
	 
	(b)	 	Notwithstanding paragraph (d) of Clause 1.2 (Construction), the Issuing Bank may agree to the
withdrawal of amounts up to the level of that cash cover from the account if:

	 	(i)	 	it is satisfied that the relevant Lender is no longer a Non-Acceptable L/C
Lender; or
	 
	 	(ii)	 	the relevant Lender’s obligations in respect of the relevant Letter of Credit
are transferred to a New Lender in accordance with the terms of this Agreement.

	(c)	 	To the extent that Na Pali has complied with its obligations to provide cash cover in
accordance with this Clause 7.6, the relevant Lender’s L/C Proportion in respect of that
Letter of Credit will remain (but that Lender’s obligations in relation to that Letter of
Credit may be satisfied in accordance with paragraph (d)(ii) of Clause 1.2 (Construction)).
However, Na Pali’s obligation to pay any Letter of Credit fee in relation to the relevant
Letter of Credit to the Agent (for the account of that Lender) in accordance with paragraph
(b) of Clause 16.5 (Fees payable in respect of Letters of Credit) will be reduced
proportionately as from the date on which it complies with that obligation to provide cash
cover (and for so long as the relevant amount of cash cover continues to stand as collateral).

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	(d)	 	The relevant Issuing Bank shall promptly notify the Agent of the extent to which Na Pali
provides cash cover pursuant to this Clause 7.6 and of any change in the amount of cash cover
so provided.
	 
	7.7	 	Rights of contribution

No Obligor will be entitled to any right of contribution or indemnity from any Finance Party in
respect of any payment it may make under this Clause 7.

	8.	 	ANCILLARY FACILITIES
	 
	8.1	 	Type of Facility

An Ancillary Facility may be made available by way of:

	(a)	 	an overdraft facility;
	 
	(b)	 	a short term loan facility; or
	 
	(c)	 	any other facility or accommodation required in connection with the business of the Group and
which is agreed by the Company with an Ancillary Lender.
	 
	8.2	 	Availability
	 
	(a)	 	If the Company and the Lender which manages the cash pooling scheme of the Group pursuant to
the Cash Pooling Agreement agree then, except as otherwise provided in this Agreement, such
Lender may provide an Ancillary Facility on a bilateral basis in place of that Lender’s
unutilised Revolving Facility Commitment (which shall (except for the purposes of determining
the Majority Lenders) be reduced by the amount of all or part of the Ancillary Commitment
under that Ancillary Facility) up to a maximum amount such that the aggregate of the Ancillary
Commitments shall not exceed €3,000,000 at any time.
	 
	(b)	 	No Ancillary Facility shall be made available unless, not later than 2 Business Days prior to
the Ancillary Commencement Date for an Ancillary Facility, the Agent has received from the
Company:

	 	(i)	 	a notice in writing of the establishment of an Ancillary Facility and
specifying:

	 	(A)	 	the proposed Ancillary Commencement Date and expiry date of the
Ancillary Facility;
	 
	 	(B)	 	the proposed type of Ancillary Facility to be provided;
	 
	 	(C)	 	the Lender which manages the cash pooling scheme of the Group
pursuant to the Cash Pooling Agreement as Ancillary Lender;
	 
	 	(D)	 	the proposed Ancillary Commitment, the maximum amount of the
Ancillary Facility and, if the Ancillary Facility is an overdraft facility
comprising more than one account its maximum gross amount (that amount being
the “Designated Gross Amount”) and its maximum net amount (that amount being
the “Designated Net Amount”); and

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	 	(E)	 	the proposed currency of the Ancillary Facility (if not
denominated in the Base Currency); and

	 	(ii)	 	any other information which the Agent may reasonably request in connection with
the Ancillary Facility.

	 	 	The Agent shall promptly notify the Ancillary Lender and the other Lenders of the
establishment of an Ancillary Facility.
	 
	 	 	No amendment or waiver of a term of any Ancillary Facility shall require the consent of any
Finance Party other than the relevant Ancillary Lender unless such amendment or waiver
itself relates to or gives rise to a matter which would require an amendment of or under
this Agreement (including, for the avoidance of doubt, under this Clause). In such a case,
the provisions of this Agreement with regard to amendments and waivers will apply.
	 
	(c)	 	Subject to compliance with paragraph (b) above:

	 	(i)	 	the Lender concerned will become an Ancillary Lender; and
	 
	 	(ii)	 	the Ancillary Facility will be available,

	 	 	with effect from the date agreed by the Company and the Ancillary Lender.
	 
	8.3	 	Terms of Ancillary Facilities
	 
	(a)	 	Except as provided below, the terms of any Ancillary Facility will be those agreed by the
Ancillary Lender and the Company.
	 
	(b)	 	However, those terms:

	 	(i)	 	must be based upon normal commercial terms at that time (except as varied by
this Agreement);
	 
	 	(ii)	 	may allow only Na Pali to use the Ancillary Facility;
	 
	 	(iii)	 	may not allow the Ancillary Outstandings to exceed the Ancillary Commitment,
including following a fluctuation in an exchange rate;
	 
	 	(iv)	 	may not allow the Ancillary Commitment of a Lender to exceed the Available
Commitment with respect to the Revolving Facility of that Lender; and
	 
	 	(v)	 	must require that the Ancillary Commitment is reduced to nil, and that all
Ancillary Outstandings are repaid (or cash cover provided in respect of all the
Ancillary Outstandings) not later than the Termination Date for the Revolving Facility
(or such earlier date as the Revolving Facility Commitment of the relevant Ancillary
Lender (or its Affiliate) is reduced to zero).

	(c)	 	If there is any inconsistency between any term of an Ancillary Facility and any term of this
Agreement, this Agreement shall prevail except for (i) Clause 35.3 (Day count convention)
which shall not prevail for the purposes of calculating fees, interest or commission relating
to an Ancillary Facility; (ii) an Ancillary Facility comprising

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	 	 	more than one account where the terms of the Ancillary Documents shall prevail to the extent
required to permit the netting of balances on those accounts; and (iii) where the relevant
term of this Agreement would be contrary to, or inconsistent with, the law governing the
relevant Ancillary Document, in which case that term of this Agreement shall not prevail.
	 
	(d)	 	Interest, commission and fees on Ancillary Facilities are dealt with in Clause 16.6
(Interest, commission and fees on Ancillary Facilities).
	 
	8.4	 	Repayment of Ancillary Facility
	 
	(a)	 	An Ancillary Facility shall cease to be available on the Termination Date in relation to the
Revolving Facility or such earlier date on which its expiry date occurs or on which it is
cancelled in accordance with the terms of this Agreement.
	 
	(b)	 	If an Ancillary Facility expires in accordance with its terms the Ancillary Commitment of the
Ancillary Lender shall be reduced to zero (and its Revolving Facility Commitment shall be
increased accordingly).
	 
	(c)	 	No Ancillary Lender may demand repayment or prepayment of any amounts or demand cash cover
for any liabilities made available or incurred by it under its Ancillary Facility (except
where the Ancillary Facility is provided on a net limit basis to the extent required to bring
any gross outstandings down to the net limit) unless:

	 	(i)	 	the Total Revolving Facility Commitments have been cancelled in full, or all
outstanding Utilisations under the Revolving Facility have become due and payable in
accordance with the terms of this Agreement, or the Agent has declared all outstanding
Utilisations under the Revolving Facility immediately due and payable, or the expiry
date of the Ancillary Facility occurs; or
	 
	 	(ii)	 	it becomes unlawful in any applicable jurisdiction for the Ancillary Lender to
perform any of its obligations as contemplated by this Agreement or to fund, issue or
maintain its participation in its Ancillary Facility; or
	 
	 	(iii)	 	the Ancillary Outstandings (if any) under that Ancillary Facility can be
refinanced by a Revolving Facility Utilisation and the Ancillary Lender gives
sufficient notice to enable a Revolving Facility Utilisation to be made to refinance
those Ancillary Outstandings.

	(d)	 	For the purposes of determining whether or not the Ancillary Outstandings under an Ancillary
Facility mentioned in paragraph (c)(iii) above can be refinanced by a Utilisation of the
Revolving Facility:

	 	(i)	 	the Revolving Facility Commitment of the Ancillary Lender will be increased by
the amount of its Ancillary Commitment; and
	 
	 	(ii)	 	the Utilisation may (so long as paragraph (c)(i) above does not apply) be made
irrespective of whether a Default is outstanding or any other applicable condition
precedent is not satisfied (but only to the extent that the proceeds are applied in
refinancing those Ancillary Outstandings) and irrespective of whether Clause 4.4
(Maximum number of Utilisations) or paragraph (a)(iii) of Clause 5.2 (Completion of a
Utilisation Request for Loans) applies.

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	(e)	 	On the making of a Utilisation of the Revolving Facility to refinance Ancillary Outstandings:

	 	(i)	 	each Lender will participate in that Utilisation in an amount (as determined by
the Agent) which will result as nearly as possible in the aggregate amount of its
participation in the Revolving Facility Utilisations then outstanding bearing the same
proportion to the aggregate amount of the Revolving Facility Utilisations then
outstanding as its Revolving Facility Commitment bears to the Total Revolving Facility
Commitments; and
	 
	 	(ii)	 	the relevant Ancillary Facility shall be cancelled.

	(f)	 	In relation to an Ancillary Facility which comprises an overdraft facility where a Designated
Net Amount has been established, the Ancillary Lender providing that Ancillary Facility shall
only be obliged to take into account for the purposes of calculating compliance with the
Designated Net Amount those credit balances which it is permitted to take into account by the
then current law and regulations in relation to its reporting of exposures to the European
Central Bank or the applicable regulatory authorities as netted for capital adequacy purposes.
	 
	8.5	 	Ancillary Outstandings

Each of Na Pali, the Company and each Ancillary Lender agrees with and for the benefit of each
Lender that:

	(a)	 	the Ancillary Outstandings under any Ancillary Facility provided by that Ancillary Lender
shall not exceed the Ancillary Commitment applicable to that Ancillary Facility including
following any fluctuation in exchange rates and where the Ancillary Facility is an overdraft
facility comprising more than one account, Ancillary Outstandings under that Ancillary
Facility shall not exceed the Designated Net Amount in respect of that Ancillary Facility; and
	 
	(b)	 	where all or part of the Ancillary Facility is an overdraft facility comprising more than one
account, the Ancillary Outstandings (calculated on the basis that the words in brackets in
paragraph (a) of the definition of that term were deleted) shall not exceed the Designated
Gross Amount applicable to that Ancillary Facility.
	 
	8.6	 	Adjustment for Ancillary Facilities upon acceleration

In this Clause 8.6:

“Revolving Outstandings” means, in relation to a Lender, the aggregate of the equivalent in the
Base Currency of (i) its participation in each Revolving Facility Utilisation then outstanding
(together with the aggregate amount of all accrued interest, fees and commission owed to it as a
Lender under the Revolving Facility), and (ii) if the Lender is also an Ancillary Lender, the
Ancillary Outstandings in respect of Ancillary Facilities provided by that Ancillary Lender
(together with the aggregate amount of all accrued interest, fees and commission owed to it as an
Ancillary Lender in respect of the Ancillary Facility).

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“Total Revolving Outstandings” means the aggregate of all Revolving Outstandings.

	(a)	 	If a notice is served under Clause 26.21 (Acceleration), each Lender and each Ancillary
Lender shall promptly adjust by corresponding transfers (to the extent necessary) of their
claims in respect of amounts outstanding to them under the Revolving Facility and each
Ancillary Facility to ensure that after such transfers the Revolving Outstandings of each
Lender bear the same proportion to the Total Revolving Outstandings as such Lender’s Revolving
Facility Commitment bears to the Total Revolving Facility Commitments, each as at the date the
notice is served under Clause 26.21 (Acceleration).
	 
	(b)	 	If an amount outstanding under an Ancillary Facility is a contingent liability and that
contingent liability becomes an actual liability or is reduced to zero after the original
adjustment is made under paragraph (a) above, then each Lender and Ancillary Lender will make
a further adjustment by corresponding transfers (to the extent necessary) to put themselves in
the position they would have been in had the original adjustment been determined by reference
to the actual liability or, as the case may be, zero liability and not the contingent
liability.
	 
	(c)	 	Prior to the application of the provisions of paragraph (a) of this Clause 8.6, an Ancillary
Lender that has provided an overdraft comprising more than one account under an Ancillary
Facility shall set-off any liabilities owing to it under such overdraft facility against
credit balances on any account comprised in such overdraft facility.
	 
	(d)	 	All calculations to be made pursuant to this Clause 8.6 shall be made by the Agent based upon
information provided to it by the Lenders and Ancillary Lenders.
	 
	8.7	 	Information

Na Pali and each Ancillary Lender shall, promptly upon request by the Agent, supply the Agent with
any information relating to the operation of an Ancillary Facility (including the Ancillary
Outstandings) as the Agent may reasonably request from time to time. Na Pali consents to all such
information being released to the Agent and the other Finance Parties.

	8.8	 	Revolving Facility Commitment amounts

Notwithstanding any other term of this Agreement, each Lender shall ensure that at all times its
Revolving Facility Commitment is not less than its Ancillary Commitment.

SECTION 4 — REPAYMENT, PREPAYMENT AND CANCELLATION

	9.	 	REPAYMENT
	 
	9.1	 	Repayment of Term Loans
	 
	(a)	 	The Company shall repay the Facility A Loan in instalments by repaying on each Facility A
Repayment Date an amount which reduces the Base Currency Amount of the outstanding Facility A
Loan by the amount set out opposite that Facility A Repayment Date below:

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	Facility A Repayment Date	 	 	Repayment Instalment
	31 January 2010
	 		€4,529,412	 
	 
	31 July 2010
	 		€4,529,412	 
	 
	31 January 2011
	 		€5,500,000	 
	 
	31 July 2011
	 		€5,500,000	 
	 
	31 January 2012
	 		€8,735,294	 
	 
	31 July 2012
	 		€8,735,294	 
	 
	31 January 2013
	 		€8,735,294	 
	 
	31 July 2013
	 		€8,735,294	 

	(b)	 	Na Pali shall repay the Facility B Loan in instalments by repaying on each Facility B
Repayment Date an amount which reduces the Base Currency Amount of the outstanding Facility B
Loan by the amount set out opposite that Facility B Repayment Date below:

	 	 	 
	Facility B Repayment Date	 	Repayment Instalment
	31 January 2010

	 	€9,470,588
	 
	31 July 2010

	 	€9,470,588
	 
	31 January 2011

	 	€11,500,000
	 
	31 July 2011

	 	€11,500,000
	 
	31 January 2012

	 	€18,264,706
	 
	31 July 2012

	 	€18,264,706
	 
	31 January 2013

	 	€18,264,706
	 
	31 July 2013

	 	€18,264,706

	(c)	 	The Borrowers may not reborrow any part of a Term Facility which has been repaid.
	 
	9.2	 	Repayment of Revolving Facility Loans

Na Pali shall repay each Revolving Facility Loan on the last day of its Interest Period.

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	9.3	 	Final Repayment

For the avoidance of doubt, all of the outstanding principal of each Loan shall be repaid in full
on the Termination Date for such Loan.

For the avoidance of doubt all Letters of Credit shall be repaid in full on the Termination Date
for the L/C Facility.

	9.4	 	Mandatory Cancellation of the Revolving Facility

On the first anniversary of the date of this Agreement, the Total Revolving Facility Commitments
shall be reduced to €55,000,000 (to the extent not otherwise cancelled or reduced under this
Agreement) (such reduction to be applied pro rata to reduce the Revolving Facility Commitment of
each Lender).

On the second anniversary of the date of this Agreement, the Total Revolving Facility Commitments
shall be reduced to €50,000,000 (to the extent not otherwise cancelled or reduced under this
Agreement) (such reduction to be applied pro rata to reduce the Revolving Facility Commitment of
each Lender).

	10.	 	ILLEGALITY, VOLUNTARY PREPAYMENT AND CANCELLATION
	 
	10.1	 	Illegality

If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its
obligations as contemplated by this Agreement or to fund, issue or maintain its participation in
any Utilisation:

	(a)	 	that Lender, shall promptly notify the Agent upon becoming aware of that event;
	 
	(b)	 	upon the Agent notifying the Company, the Commitment of that Lender will be immediately
cancelled; and
	 
	(c)	 	each Borrower shall repay that Lender’s participation in the Utilisations made to that
Borrower on the last day of the Interest Period for each Utilisation occurring after the Agent
has notified the Company or, if earlier, the date specified by the Lender in the notice
delivered to the Agent (being no earlier than the last day of any applicable grace period
permitted by law).
	 
	10.2	 	Illegality in relation to Issuing Banks

If it becomes unlawful for an Issuing Bank to issue or leave outstanding any Letter of Credit,
then:

	(a)	 	that Issuing Bank shall promptly notify the Agent upon becoming aware of that event;
	 
	(b)	 	upon the Agent notifying the Company, the Issuing Bank shall not be obliged to issue any
Letter of Credit;
	 
	(c)	 	the Company and each Obligor shall procure that Na Pali shall use its best endeavours to
procure the release of each Letter of Credit issued by that Issuing Bank and outstanding at
such time; and

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	(d)	 	unless any other Lender has agreed to be an Issuing Bank pursuant to the terms of this
Agreement, the L/C Facility shall cease to be available for the issue of Letters of Credit.
	 
	10.3	 	Voluntary cancellation
	 
	(a)	 	Subject to paragraph (b) below, the Company may, if it gives the Agent not less than 5
Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, cancel
the whole or any part (being, if in part, a minimum amount of €5,000,000 and a multiple of
€1,000,000) of the Available Commitments with respect to the Revolving Facility or the L/C
Facility. Any cancellation under this Clause 10.3 shall reduce the Commitments of the Lenders
rateably under the relevant Facility. Any notice of cancellation of the Available Commitments
with respect to the Revolving Facility shall be accompanied by: (i) (to the extent the Terms
Loans have not been fully repaid and cancelled on the date of such notice) evidence that Na
Pali and its Subsidiaries will have sufficient working capital available to them following
such cancellation having regard to the working capital needs of Na Pali and its Subsidiaries
identified in the Business Plan and (ii) (to the extent the Term Loans have been fully repaid
and cancelled on the date of such notice) a consolidated statement of the cash position of Na
Pali and its Subsidiaries.
	 
	(b)	 	The Borrowers (and the Company on behalf of Na Pali) shall not cancel any part of the
Available Commitment with respect to a Term Facility.
	 
	10.4	 	Voluntary prepayment of Term Loans
	 
	(a)	 	Subject to paragraph (c) below, a Borrower to which a Term Loan has been made may, if it or
the Company gives the Agent not less than 5 Business Days’ (or such shorter period as the
Majority Lenders may agree) prior notice, prepay the whole or any part of that Term Loan (but,
if in part, being an amount that reduces the Base Currency Amount of that Term Loan by a
minimum amount of €5,000,000 and a multiple of €1,000,000).
	 
	(b)	 	A Term Loan may only be prepaid after the last day of the Availability Period (or, if
earlier, the day on which the applicable Available Facility is zero).
	 
	(c)	 	A Term Loan shall only be prepaid in accordance with paragraph (a) above if all the Term
Loans are:

	 	(i)	 	prepaid at the same time; and
	 
	 	(ii)	 	prepaid in amounts which reduce the Facility A Loan and the Facility B Loan by
the same amount, such prepayments being applied against Repayment Instalments in
chronological order.

	10.5	 	Voluntary prepayment of Revolving Facility Utilisations

Na Pali may, if it or the Company gives the Agent not less than 5 Business Days’ (or such shorter
period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Revolving
Facility Utilisation (but if in part, being an amount that reduces the Base Currency Amount of the
Revolving Facility Utilisation by a minimum amount of €5,000,000 and a multiple of €1,000,000).

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	10.6	 	Voluntary prepayment of L/C Facility Utilisations

Na Pali may, if it or the Company gives the Agent not less than 5 Business Days’ (or such shorter
period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a L/C
Facility Utilisation (but if in part, being an amount that reduces the Base Currency Amount of the
L/C Facility Utilisation by a minimum amount of €5,000,000 and a multiple of €1,000,000).

	10.7	 	Right of cancellation and repayment in relation to a single Lender or Issuing Bank
	 
	(a)	 	If:

	 	(i)	 	any sum payable to any Lender by an Obligor is required to be increased under
paragraph (c) of Clause 17.2 (Tax gross-up); or
	 
	 	(ii)	 	any Lender or Issuing Bank claims indemnification from the Company or an
Obligor under Clause 17.3 (Tax indemnity) or Clause 18.1 (Increased costs),

	 	 	the Company may, whilst the circumstance giving rise to the requirement for increased
payment or indemnification continues, give the Agent notice:

	 	(i)	 	(if such circumstances relate to a Lender) of cancellation of the Commitment of
that Lender and its intention to procure the repayment of that Lender’s participation
in the Utilisations; or
	 
	 	(ii)	 	(if such circumstances relate to the Issuing Bank) of repayment of any
outstanding Letter of Credit issued by it and cancellation of its appointment as an
Issuing Bank under this Agreement in relation to any Letters of Credit to be issued in
the future.

	(b)	 	On receipt of a notice referred to in paragraph (a) above in relation to a Lender, the
Commitment of that Lender shall immediately be reduced to zero.
	 
	(c)	 	On the last day of each Interest Period which ends after the Company has given notice under
paragraph (a) above in relation to a Lender (or, if earlier, the date specified by the Company
in that notice), each Borrower to which a Utilisation is outstanding shall repay that Lender’s
participation in that Utilisation together with all interest and other amounts accrued under
the Finance Documents.

	10.8	 	Right of cancellation and repayment in relation to a Defaulting Lender
	 
	(a)	 	If any Lender becomes a Defaulting Lender, the Company may, at any time whilst the Lender
continues to be a Defaulting Lender, give the Agent 5 Business Days’ notice of cancellation of
each Available Commitment of that Lender.
	 
	(b)	 	On the notice referred to in paragraph (a) above becoming effective, each Commitment of the
Defaulting Lender shall immediately be reduced to zero.
	 
	(c)	 	On the last day of each Interest Period which ends after the Company has given notice under
paragraph (a) above in relation to a Lender (or, if earlier, the date specified by the Company
in that notice), each Borrower to which a Utilisation is outstanding shall

67

 

	 	 	repay that Lender’s participation in that Utilisation together with all interest and other
amounts accrued under the Finance Documents.
	 
	(d)	 	The Agent shall as soon as practicable after receipt of a notice referred to in paragraph (a)
above, notify all the Lenders
	 
	11.	 	MANDATORY PREPAYMENT
	 
	11.1	 	Exit

Upon the occurrence of:

	 	(i)	 	a Change of Control; or
	 
	 	(ii)	 	any mandatory prepayment event (in whole or in part) of any Financial
Indebtedness under the the 2009 ABL Agreement, the Senior Notes, the SG Bonds and/or
the Rhône Financing Documents (or any document entered into in replacement or
refinancing thereof (in whole or in part)) as a result of the implementation of (x) any
provision relating to any change in the shareholding of Quiksilver, Inc., the
composition of the board of directors or any governing body of the latter or (y) any
other provisions relating to the change of control of Quiksilver, Inc. (however
described) under any of such documents or agreements; or
	 
	 	(iii)	 	the sale, disposal or transfer (for any reason whatsoever) (other than (i) the
QSH/Biarritz Holdings Contribution and (ii) the entering into of the Transaction
Security Documents) by Quiksilver, Inc. or any of its Subsidiaries of any of the
Material Trademarks or the sale, disposal or transfer (for any reason whatsoever) by
Quiksilver, Inc. or any of its Subsidiaries of any person holding, directly or
indirectly, any of the Material Trademarks; or
	 
	 	(iv)	 	the sale, disposal or transfer (for any reason whatsoever) of all or
substantially all of the assets of the European Group or the Group whether in a single
transaction or a series of related transactions; or
	 
	 	(v)	 	a US Group Change of Control; or
	 
	 	(vi)	 	the sale, disposal or transfer (for any reason whatsoever) of all or
substantially all of the assets of the US Group whether in a single transaction or a
series of related transactions,

	 	 	the Facilities will be cancelled and all outstanding Utilisations and Ancillary
Outstandings, together with accrued interest, and all other amounts accrued under the
Finance Documents, shall become immediately due and payable (and, for the avoidance of
doubt, the L/C Facility Utilisations shall be immediately repaid).
	 
	11.2	 	Disposal, Insurance, Issuance and Reimbursement Proceeds and Excess Cashflow
	 
	(a)	 	For the purposes of this Clause 11.2, Clause 11.3 (Application of mandatory prepayments) and
Clause 11.4 (Mandatory Prepayment Accounts):

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	 	 	“DC Shoes Disposal” means a sale, lease, transfer or other disposal by Quiksilver, Inc. or
any of its Subsidiaries of all or any material part of the DC Shoes Business and/or the DC
Shoes Trademarks (whether by a voluntary or involuntary single transaction or series of
transactions) (other than (i) pursuant to a sale, lease, transfer or other disposal to
Quiksilver, Inc. or any of its Subsidiaries and (ii) the entering into of Security in
respect thereof).
	 
	 	 	“DC Shoes Disposal Proceeds” means the consideration receivable by Quiksilver, Inc. or any
of its Subsidiaries (including any amount receivable in repayment of intercompany debt) for
any DC Shoes Disposal made by Quiksilver, Inc. or any of its Subsidiaries after deducting
the portion of such proceeds actually applied towards the repayment in full of the then
outstanding Financial Indebtedness under the 2009 ABL Agreement.
	 
	 	 	“DC Shoes Trademarks” means the “DC” and “DC Shoes” trade names and related marks,
trademarks and logos.
	 
	 	 	“Disposal” means a sale, lease, licence, transfer, loan or other disposal by a person of any
asset (of any nature whatsoever), undertaking or business (whether by a voluntary or
involuntary single transaction or series of transactions) other than asset sales listed in
paragraphs (a), (b), (c), (e), (f), (g) and (h) of the definition of Permitted Disposals.
	 
	 	 	“Disposal Proceeds” means the consideration receivable by any member of the European Group
(other than QSH) (including any amount receivable in repayment of intercompany debt) for any
Disposal made by any member of the European Group (other than QSH) except for Excluded
Disposal Proceeds and after deducting:

	 	(i)	 	any reasonable costs and expenses which are incurred by any member of the
European Group with respect to such Disposal to persons who are not members of the
European Group; and
	 
	 	(ii)	 	any Tax incurred and required to be paid by the seller in connection with such
Disposal (as reasonably determined by the seller, on the basis of existing rates and
taking account of any available credit, deduction or allowance).

	 	 	“European Issuance Proceeds” means all proceeds of any equity, quasi-equity or debt capital
market issuance (i) made by Biarritz Holdings or any of its Subsidiaries or (ii) made by
Quiksilver, Inc. or any of its Subsidiaries and secured in whole or in part by assets held
by members of the European Group (other than QSH) and after deducting any reasonable
expenses which are incurred by any member of the European Group with respect to that
issuance.
	 
	 	 	“Excluded Disposal Proceeds” means in respect of Disposals relating to assets other than
shares, securities or on-going business, the related Disposal Proceeds which do not exceed
in the aggregate in any Financial Year €2,000,000 (or its equivalent in other currencies).
	 
	 	 	“Excluded Insurance Proceeds” means any proceeds of an insurance claim which the Company
notifies the Agent are, or are to be, applied:

	 	(i)	 	to meet a third party claim;

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	 	(ii)	 	to cover operating losses in respect of which the relevant insurance claim was
made; or
	 
	 	(iii)	 	in the replacement, reinstatement and/or repair of the assets or otherwise in
amelioration of the loss in respect of which the relevant insurance claim was made,

	 	 	in each case as soon as possible (but in any event within 180 days, or such longer period as
the Majority Lenders may agree) after receipt.
	 
	 	 	“Insurance Proceeds” means the proceeds of any insurance claim under any insurance
maintained by any member of the European Group (other than QSH) except for Excluded
Insurance Proceeds and after deducting any reasonable expenses in relation to that claim
which are incurred by any member of the Group to persons who are not members of the Group to
the extent the aggregate amount of all such proceeds equals or exceeds €500,000 in any
Financial Year of the Group.
	 
	 	 	“Reimbursement Proceeds” means the proceeds of any reimbursement (other than any
reimbursement by way of set-off specifically contemplated by the Structure Memorandum) or
(in the case of the NP Cash Collateral) of any release:

	 	(i)	 	by a TopCo Obligor, any Subsidiary of the latter or any member of the Group to
Na Pali or the Company of any intercompany debt (other than (x) any debt from Tyax as
debtor, (y) any debt arising from the Cash Pooling Agreement or any commercial
receivables and (z) any other debt owed by Na Pali to the Company and vice versa);
	 
	 	(ii)	 	of the Note (other than by way of set-off against liabilities of the Company
pursuant to the Stock Purchase Agreement);
	 
	 	(iii)	 	from the NP Cash Collateral less any amount paid to the Rossignol Vendors by
J.P. Morgan Europe Limited under the J.P. Morgan Guarantee or by Quiksilver Europa
under the Shareholders Agreement simultaneously with such release from the NP Cash
Collateral.

	(b)	 	The Company shall ensure that the Borrowers prepay Utilisations in the following amounts at
the times and in the order of application contemplated by Clause 11.3 (Application of
mandatory prepayments):

	 	(i)	 	the amount of Reimbursement Proceeds;
	 
	 	(ii)	 	an amount equal to the amount of any mandatory prepayment or repayment of any
Financial Indebtedness under the 2009 ABL Agreement, the Senior Notes or the Rhône
Financing Documents (or any other Financial Indebtedness incurred in refinancing
thereof) to the extent that such mandatory prepayment or repayment is triggered by an
obligation to apply the proceeds of unsecured equity, quasi-equity or debt capital
market issuances by Quiksilver, Inc. in repayment or prepayment of the 2009 ABL
Agreement, the Senior Notes, the Rhône Financing Documents or such other Financial
Indebtedness pursuant to the finance documents governing such Financial Indebtedness;
	 
	 	(iii)	 	the amount of Disposal Proceeds;

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	 	(iv)	 	the amount of Insurance Proceeds;
	 
	 	(v)	 	the amount of European Issuance Proceeds;
	 
	 	(vi)	 	the amount of DC Shoes Disposal Proceeds up to the outstanding Facility A Loan
from time to time; and
	 
	 	(vii)	 	the amount equal to 75% of Excess Cashflow (up to a maximum amount of
€8,500,000 for the Financial Year commencing on 1 November 2010) for any Financial Year
of the Company commencing on or after 1 November 2010.

	11.3	 	Application of mandatory prepayments
	 
	(a)	 	A prepayment made under Clause 11.2 (Disposal, Insurance, Issuance and Reimbursement Proceeds
and Excess Cashflow) shall be applied in the following order:

	 	(i)	 	first, in prepayment of Term Loans as contemplated in paragraph (c) below;
	 
	 	(ii)	 	second, in cancellation of Available Commitments under the Revolving Facility
(and the Available Commitment of the Lenders under the Revolving Facility will be
cancelled rateably);
	 
	 	(iii)	 	third, in prepayment of Revolving Facility Utilisations and cancellation of
Revolving Facility Commitments;
	 
	 	(iv)	 	fourth, in cancellation of Available Commitments under the L/C Facility (and
the Commitments of each Lender under the L/C Facility will be cancelled rateably);
	 
	 	(v)	 	fifth, in prepayment of outstanding Letters of Credit and cancellation of L/C
Facility Commitments; and
	 
	 	(vi)	 	then, in repayment and cancellation of the Ancillary Outstandings and Ancillary
Commitments.

	(b)	 	The Borrowers shall prepay the Loans at the following times:

	 	(i)	 	in the case of any prepayment relating to the amounts of Reimbursement
Proceeds, Disposal Proceeds, Insurance Proceeds, European Issuance Proceeds or DC Shoes
Disposal Proceeds, promptly upon receipt of those proceeds;
	 
	 	(ii)	 	in the case of any prepayment referred to in paragraph (b)(ii) of Clause 11.2
(Disposal, Insurance, Issuance and Reimbursement Proceeds and Excess Cashflow),
simultaneously with the mandatory prepayment or repayment of any Financial Indebtedness
under the 2009 ABL Agreement or the Senior Notes or the Rhône Financing Documents or
the mandatory prepayment or repayment of any Financial Indebtedness incurred in
refinancing thereof; and
	 
	 	(iii)	 	in the case of any prepayment relating to an amount of Excess Cashflow
referred to in paragraph (b)(vii) of Clause 11.2 (Disposal, Insurance, Issuance and
Reimbursement Proceeds and Excess Cashflow), within 7 days of delivery

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	 	 	 	pursuant to Clause 23.1 (Financial statements) of the annual financial statements of
the Company for the relevant Financial Year.

	(c)	 	A prepayment under Clause 11.2 (Disposal, Insurance, Issuance and Reimbursement Proceeds and
Excess Cashflow) shall prepay the Term Loans as follows:

	 	(i)	 	in the case of European Issuance Proceeds (other than proceeds of any equity,
quasi-equity or debt capital market issuance made by Na Pali or any of its Subsidiaries
(the “Na Pali Issuance Proceeds”)) or in the case of prepayment amounts referred to in
paragraph (b)(ii) of Clause 11.2 (Disposal, Insurance, Issuance and Reimbursement
Proceeds and Excess Cashflow), in prepayment of the Facility A Loan and, when the
Facility A Loan has been prepaid in full, prepayment of the Facility B Loan;
	 
	 	(ii)	 	in the case of Na Pali Issuance Proceeds, in prepayment of the Facility B Loan
and, when the Facility B Loan has been prepaid in full, prepayment of the Facility A
Loan;
	 
	 	(iii)	 	in the case of Disposal Proceeds (other than Disposal Proceeds relating to
Disposals made by Na Pali and its Subsidiaries (the “Na Pali Disposal Proceeds”)), in
prepayment of the Facility A Loan and, when the Facility A Loan has been prepaid in
full, prepayment of the Facility B Loan;
	 
	 	(iv)	 	in the case of Na Pali Disposal Proceeds, in prepayment of the Facility B Loan
and, when the Facility B Loan has been prepaid in full, prepayment of the Facility A
Loan;
	 
	 	(v)	 	in the case of DC Shoes Disposal Proceeds, in prepayment of the Facility A
Loan, provided that when the Facility A Loan has been prepaid in full any remaining DC
Shoes Disposal Proceeds shall be applied in accordance with Clause 25.32 (DC Shoes
Disposal Proceeds);
	 
	 	(vi)	 	in the case of any Reimbursement Proceeds received by the Company, in
prepayment of the Facility A Loan and, when the Facility A Loan has been prepaid in
full, prepayment of the Facility B Loan;
	 
	 	(vii)	 	in the case of any Reimbursement Proceeds received by Na Pali, in prepayment
of the Facility B Loan and, when the Facility B Loan has been prepaid in full,
prepayment of the Facility A Loan;
	 
	 	(viii)	 	in the case of any Insurance Proceeds, in prepayment of the Facility A Loan and the
Facility B Loan in equal amounts; and
	 
	 	(ix)	 	in the case of prepayment amounts referred to in paragraph (b)(vii) of Clause
11.2 (Disposal, Insurance, Issuance and Reimbursement Proceeds and Excess Cashflow), in
prepayment of the Facility B Loan and, when the Facility B Loan has been prepaid in
full, prepayment of the Facility A Loan,

	 	 	each such prepayment being applied against Repayment Instalments on a pro rata basis.

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	11.4	 	Mandatory Prepayment Accounts
	 
	(a)	 	The Company shall ensure that:

	 	(i)	 	Disposal Proceeds, Insurance Proceeds, DC Shoes Disposal Proceeds, European
Issuance Proceeds, Reimbursement Proceeds and repayment amounts referred to in
paragraph (b)(ii) of Clause 11.2 (Disposal, Insurance, Issuance and Reimbursement
Proceeds and Excess Cashflow) are paid into a Mandatory Prepayment Account as soon as
reasonably practicable after receipt by a member of the Group or the relevant
Subsidiary of Quiksilver, Inc.; and
	 
	 	(ii)	 	an amount equal to any Excess Cashflow is paid into a Mandatory Prepayment
Account.

	(b)	 	The Company and Na Pali irrevocably authorise the Agent to apply amounts credited to the
Mandatory Prepayment Account to pay amounts due and payable under Clause 11.3 (Application of
mandatory prepayments) and otherwise under the Finance Documents.
	 
	(c)	 	A Lender, Security Agent or Agent with which a Mandatory Prepayment Account is held
acknowledges and agrees that (i) interest shall accrue at normal commercial rates on amounts
credited to those accounts and that the account holder shall be entitled to receive such
interest (which shall be paid in accordance with the mandate relating to such account) unless
a Default is continuing and (ii) each such account is subject to the Transaction Security.
	 
	11.5	 	Restrictions on Mandatory Prepayments
	 
	(a)	 	Mandatory prepayments required pursuant to the terms of Clause 11.2 (Disposal, Insurance,
Issuance and Reimbursement Proceeds and Excess Cashflow) will be limited to an amount
determined according to the following formula (to the extent the amount owed by a Borrower
corresponds to amounts, proceeds or distributions received by a Subsidiary of such Borrower):
	 
	 	 	Cash of the relevant Borrower + [(amount of distributable profits of the relevant Borrower’s
Subsidiaries + amount of distributable reserves of such Subsidiaries)] X [percentage of
shares held directly or indirectly by the applicable Borrower in each of its Subsidiaries] +
[amount of shareholder capital accounts and loans by the relevant Borrower to its
Subsidiaries] + [amount of loans which could be made by such Borrower’s Subsidiaries to such
Borrower without violating applicable laws and regulations].
	 
	(b)	 	Each Obligor shall, subject to applicable laws and regulations, directly or indirectly
through Subsidiaries, employ all available means and cause each Subsidiary to employ all
available means to ensure the distribution (in any form, including capital account
distributions or loans) of amounts necessary to make all mandatory prepayments required
hereunder.
	 
	(c)	 	To the extent that any Borrower’s obligation to make a mandatory prepayment under Clause 11.2
(Disposal, Insurance, Issuance and Reimbursement Proceeds and Excess

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	 	 	Cashflow) is limited by the provisions of
this Clause 11.5, the balance of such
Borrower’s portion of such mandatory
prepayment shall be paid by the other
Borrower to the extent permitted hereunder
to be applied in accordance with Clause
11.3 (Application of mandatory
prepayments) and to the extent permitted
by applicable laws and regulations. Any
prepayment obligation by any Borrower
which is limited by the provisions of this
Clause 11.5 and which cannot be allocated
to prepayment by the other Borrower as
previously provided, shall be on-going and
shall be reinstated at the time and to the
extent that the events or circumstances
giving rise to such limitation shall cease
to exist.

	11.6	 	 Excluded proceeds

Where Excluded Insurance Proceeds include amounts which are intended to be used for a specific
purpose within a specified period (as set out in the relevant definition of Excluded Insurance
Proceeds), the Company shall ensure that those amounts are used for that purpose and, if requested
to do so by the Agent, shall promptly deliver a certificate to the Agent at the time of such
application and at the end of such period confirming the amount (if any) which has been so applied
within the requisite time periods provided for in the relevant definition.

	12.	 	RESTRICTIONS
	 
	12.1	 	Notices of Cancellation or Prepayment

Any notice of cancellation, prepayment or authorisation given by any Party under Clause 10
(Illegality, Voluntary Prepayment and Cancellation) shall (subject to the terms of those Clauses)
be irrevocable and, unless a contrary indication appears in this Agreement, any such notice shall
specify the date or dates upon which the relevant cancellation or prepayment is to be made and the
amount of that cancellation or prepayment.

	12.2	 	Interest and other amounts

Any prepayment under this Agreement shall be made together with accrued interest on the amount
prepaid and Break Costs but otherwise without premium or penalty.

	12.3	 	No reborrowing of Term Facilities

No Borrower may reborrow any part of a Term Facility which is prepaid.

	12.4	 	Reborrowing of Revolving Facility and the L/C Facility

Unless a contrary indication appears in this Agreement, any part of the Revolving Facility or the
L/C Facility which is prepaid or repaid may be reborrowed in accordance with the terms of this
Agreement.

	12.5	 	Prepayment in accordance with Agreement

No Borrower shall repay or prepay all or any part of the Utilisations or cancel all or any part of
the Commitments except at the times and in the manner expressly provided for in this Agreement.

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	12.6	 	No reinstatement of Commitments

No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.

	12.7	 	Agent’s receipt of Notices

If the Agent receives a notice under Clause 10 (Illegality, Voluntary Prepayment and Cancellation),
it shall promptly forward a copy of that notice or election to either the Company or the affected
Lender, as appropriate.

	12.8	 	Effect of Repayment and Prepayment on Commitments

If all or part of a Utilisation under a Facility is repaid or prepaid and is not available for
redrawing (other than by operation of Clause 4.2 (Further conditions precedent)), an amount of the
Commitments (equal to the Base Currency Amount of the amount of the Utilisation which is repaid or
prepaid) in respect of that Facility will be deemed to be cancelled on the date of repayment or
prepayment. Any cancellation under this Clause 12.8 shall reduce the Commitments of the Lenders
rateably under that Facility.

SECTION 5 — COSTS OF UTILISATION

	13.	 	INTEREST
	 
	13.1	 	Calculation of interest

The rate of interest on each Loan for each Interest Period is the percentage rate per annum which
is the aggregate of the applicable:

	(a)	 	Margin;
	 
	(b)	 	EURIBOR; and
	 
	(c)	 	Mandatory Cost, if any.
	 
	13.2	 	Payment of interest
	 
	(a)	 	The Borrower to which a Loan has been made shall pay accrued interest on that Loan on the
last day of each Interest Period (and, if the Interest Period is longer than six Months, on
the dates falling at six Monthly intervals after the first day of the Interest Period).
	 
	(b)	 	If the Annual Pilot Consolidated Financial Statements and related Compliance Certificate
received by the Agent show that a higher Margin should have applied during a certain period,
then the Company shall (or shall ensure that the relevant Borrower shall) promptly pay to the
Agent any amounts necessary to put the Agent and the Lenders in the position they would have
been in had the appropriate rate of the Margin applied during such period.
	 
	(c)	 	If the Annual Pilot Consolidated Financial Statements and related Compliance Certificate
received by the Agent show that a lower Margin should have applied

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	 	 	during a certain period, then the Lenders
shall make appropriate adjusting payments
(which shall only be made by way of
credits against future payments to be
made pursuant to this Clause 13.2 to such
Lenders which are still party to this
Agreement), provided that payments to be
made by the Lenders shall only be made by
those Lenders which actually received the
excess Margin and provided further that
any Lender which has assigned or
transferred all or part of its
participation in the Facilities shall no
longer be bound to make any payment
adjustment with respect to its
participation so assigned or transferred
as from the relevant assignment date or
Transfer Date.
	 
	13.3	 	Default interest
	 
	(a)	 	If an Obligor fails to pay any amount payable by it under a Finance Document on its due date,
interest shall accrue to the fullest extent permitted by law on the overdue amount from the
due date up to the date of actual payment (both before and after judgment) at a rate which,
subject to paragraph (b) below, is 2 per cent. higher than the rate which would have been
payable if the overdue amount had, during the period of non-payment, constituted a Loan in the
currency of the overdue amount for successive Interest Periods, each of a duration selected by
the Agent (acting reasonably). Any interest accruing under this Clause 13.3 shall be
immediately payable by the Obligor on demand by the Agent.
	 
	(b)	 	If any overdue amount consists of all or part of a Loan which became due on a day which was
not the last day of an Interest Period relating to that Loan:

	 	(i)	 	the first Interest Period for that overdue amount shall have a duration equal
to the unexpired portion of the current Interest Period relating to that Loan; and
	 
	 	(ii)	 	the rate of interest applying to the overdue amount during that first Interest
Period shall be 2 per cent. higher than the rate which would have applied if the
overdue amount had not become due.

	(c)	 	Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue
amount only if, within the meaning of article 1154 of the French Code civil, such interest is
due for a period of at least one year, but will remain immediately due and payable.
	 
	13.4	 	Notification of rates of interest

The Agent shall promptly notify the Lenders and the relevant Borrower (or the Company) of the
determination of a rate of interest under this Agreement.

	13.5	 	Effective Global Rate (Taux Effectif Global)

For the purposes of articles L.313-1 et seq., R.313-1 and R.313-2 of the French Code de la
consommation, the Parties acknowledge that by virtue of certain characteristics of the Facilities
(and in particular the variable interest rate applicable to Loans and the Borrowers’ right to
select the duration of the Interest Period of each Loan) the taux effectif global cannot be
calculated at the date of this Agreement. However, the Borrowers acknowledge that they have
received from the Agent a letter containing an indicative calculation of the taux effectif global,
based on examples calculated on assumptions as to the taux de période and durée de

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période set out in the letter (the “TEG Letter”). The Parties acknowledge that such letter forms
part of this Agreement.

	14.	 	INTEREST PERIODS
	 
	14.1	 	Selection of Interest Periods and Terms
	 
	(a)	 	A Borrower (or the Company on behalf of a Borrower) may select an Interest Period for a Loan
in the Utilisation Request for that Loan or (if the Loan is a Term Loan and has already been
borrowed) in a Selection Notice.
	 
	(b)	 	Each Selection Notice for a Term Loan is irrevocable and must be delivered to the Agent by
the Borrower (or the Company on behalf of the Borrower) to which that Term Loan was made not
later than the Specified Time.
	 
	(c)	 	If a Borrower (or the Company) fails to deliver a Selection Notice to the Agent in accordance
with paragraph (b) above, the relevant Interest Period will be three Months.
	 
	(d)	 	Subject to this Clause 14, a Borrower (or the Company) may select an Interest Period of one,
three or six Months or any other period agreed between the Company and the Agent (acting on
the instructions of all the Lenders in relation to the relevant Loan).
	 
	(e)	 	An Interest Period for a Loan shall not extend beyond the Termination Date applicable to its
Facility.
	 
	(f)	 	Each Interest Period for a Term Loan shall start on the Utilisation Date or (if already made)
on the last day of its preceding Interest Period.
	 
	(g)	 	A Revolving Facility Loan has one Interest Period only.
	 
	14.2	 	Non-Business Days

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest
Period will instead end on the next Business Day in that calendar month (if there is one) or the
preceding Business Day (if there is not).

	15.	 	CHANGES TO THE CALCULATION OF INTEREST
	 
	15.1	 	Absence of quotations

Subject to Clause 15.2 (Market disruption), if EURIBOR is to be determined by reference to the
Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on the
Quotation Day, the applicable EURIBOR shall be determined on the basis of the quotations of the
remaining Reference Banks.

	15.2	 	Market disruption
	 
	(a)	 	If a Market Disruption Event occurs in relation to any Interest Period, then the rate of
interest on each Lender’s share of the applicable Loan for the Interest Period shall be the
percentage rate per annum which is the sum of:

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	 	(i)	 	the Margin;
	 
	 	(ii)	 	the rate notified to the Agent by that Lender as soon as practicable and in any
event before interest is due to be paid in respect of that Interest Period, to be that
which expresses as a percentage rate per annum the cost to that Lender of funding its
participation in that Loan from whatever source it may reasonably select; and
	 
	 	(iii)	 	the Mandatory Cost, if any, applicable to that Lender’s participation in the
Loan.

	(b)	 	In this Agreement “Market Disruption Event” means:

	 	(i)	 	at or about noon on the Quotation Day for the relevant Interest Period the
Screen Rate is not available and none or only one of the Reference Banks supplies a
rate to the Agent to determine EURIBOR for the relevant currency and Interest Period;
or
	 
	 	(ii)	 	before close of business in Paris on the Quotation Day for the relevant
Interest Period, the Agent receives notifications from a Lender or Lenders (whose
participations in the Facilities exceed 35% of the Facilities) that the cost to it of
obtaining matching deposits in the Relevant Interbank Market would be in excess of
EURIBOR.

	15.3	 	Alternative basis of interest or funding
	 
	(a)	 	If a Market Disruption Event occurs and the Agent or the Company so requires, the Agent and
the Company shall enter into negotiations (for a period of not more than thirty days) with a
view to agreeing a substitute basis for determining the rate of interest.
	 
	(b)	 	Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of
all the Lenders and the Company, be binding on all Parties.

	15.4	 	Break Costs
	 
	(a)	 	Each Borrower shall, within two Business Days of demand by a Finance Party, pay to that
Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being
paid by that Borrower on a day other than the last day of an Interest Period for that Loan or
Unpaid Sum.
	 
	(b)	 	Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a
certificate confirming the amount of its Break Costs for any Interest Period in which they
accrue.
	 
	16.	 	FEES
	 
	16.1	 	Commitment fee
	 
	(a)	 	The Company shall pay to the Agent (for the account of each Lender) a fee in the Base
Currency computed at the rate of:

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	 	(i)	 	40 per cent. of the applicable Margin per annum on that Lender’s Available
Commitment under Facility A for the Availability Period applicable to Facility A;
	 
	 	(ii)	 	40 per cent. of the applicable Margin per annum on that Lender’s Available
Commitment under Facility B for the Availability Period applicable to Facility B; and
	 
	 	(iii)	 	40 per cent. of the applicable Margin per annum on that Lender’s Available
Commitment under the Revolving Facility for the Availability Period applicable to the
Revolving Facility.

	(b)	 	The accrued commitment fee is payable on the last day of each successive period of three
Months which ends during the relevant Availability Period, on the last day of the relevant
Availability Period and on the cancelled amount of the relevant Lender’s Commitment at the
time the cancellation is effective.
	 
	(c)	 	No commitment fee is payable to the Agent (for the account of a Lender) on any Available
Commitment of that Lender for any day on which that Lender is a Defaulting Lender.
	 
	16.2	 	Arrangement, Participation and Coordination fees
	 
	(a)	 	The Company and/or Na Pali shall pay to the Arrangers an arrangement fee in the amount and at
the times agreed in a Fee Letter.
	 
	(b)	 	The Company and/or Na Pali shall pay to the Lenders a participation fee in the amount and at
the times agreed in a Fee Letter.
	 
	(c)	 	The Company and/or Na Pali shall pay to Société Générale a coordination fee in the amount and
at the times agreed in a Fee Letter.

	16.3	 	Agency fee

The Company shall pay to the Agent (for its own account) an agency fee in the amount and at the
times agreed in a Fee Letter.

	16.4	 	Security Agent fee

The Company shall pay to the Security Agent (for its own account) the Security Agent fee in the
amount and at the times agreed in a Fee Letter.

	16.5	 	Fees payable in respect of Letters of Credit
	 
	(a)	 	The Company or Na Pali shall pay to each Issuing Bank (for its own account) a fronting fee on
the outstanding amount of each Letter of Credit requested by it from such Issuing Bank for the
period from the issue of that Letter of Credit until its Expiry Date at the rate per annum
specified in a Fee Letter.
	 
	(b)	 	The Company or Na Pali shall pay to the Issuing Bank (who shall transfer such amounts to the
Agent) (for the account of each Lender under the L/C Facility) a Letter of Credit fee in the
Base Currency (computed at the rate per annum equal to 1.20 percent.

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	 	 	per annum) on the outstanding amount of each Letter of Credit requested by it for the
period from the issue of that Letter of Credit until its Expiry Date. This fee shall be
distributed according to each Lender’s L/C Proportion of that Letter of Credit.
	 
	(c)	 	The accrued fronting fee and Letter of Credit fee on a Letter of Credit shall be payable on
the last day of each month (or such shorter period as shall end on the Expiry Date for that
Letter of Credit) starting on the date of issue of that Letter of Credit. The accrued
fronting fee and Letter of Credit fee is also payable to the Agent or the Issuing Bank (as
applicable) on the cancelled amount of any Lender’s L/C Facility Commitment at the time the
cancellation is effective if that Commitment is cancelled in full and the Letter of Credit is
prepaid or repaid in full.
	 
	16.6	 	Interest, commission and fees on Ancillary Facilities

The rate and time of payment of interest, commission, fees and any other remuneration in respect of
each Ancillary Facility shall be determined by agreement between the relevant Ancillary Lender and
the Borrower of that Ancillary Facility based upon normal market rates and terms.

SECTION 6 — ADDITIONAL PAYMENT OBLIGATIONS

	17.	 	TAX GROSS UP AND INDEMNITIES
	 
	17.1	 	Definitions
	 
	(a)	 	In this Agreement:
	 
	 	 	“Protected Party” means a Finance Party which is or will be subject to any liability, or
required to make any payment, for or on account of Tax in relation to a sum received or
receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a
Finance Document.
	 
	 	 	“Qualifying Lender” means a Lender which:

	 	(i)	 	has its Facility Office in France; or
	 
	 	(ii)	 	fulfils the conditions imposed by French Law taking into account, as the case
may be, any double taxation agreement in force on the relevant date (subject to the
completion of any necessary procedural formalities), in order for a payment not to be
subject to (or as the case may be, to be exempt from) any Tax Deduction.

	 	 	“Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.
	 
	 	 	“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment
under a Finance Document.
	 
	 	 	“Tax Payment” means an increased payment made by an Obligor to a Finance Party under Clause
17.2 (Tax gross-up) or a payment under Clause 17.3 (Tax indemnity).

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	 	 	“Treaty Lender” means a Lender which is entitled to a payment under a double taxation
agreement (subject to the completion of any necessary procedural formalities) without a Tax
Deduction or with the benefit of a Tax Credit.
	 
	(b)	 	Unless a contrary indication appears, in this Clause 17 a reference to “determines” or
“determined” means a determination made in the absolute discretion of the person making the
determination and applying the relevant tax law and regulations.
	 
	17.2	 	Tax gross-up
	 
	(a)	 	Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax
Deduction is required by law.
	 
	(b)	 	The Company shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or
that there is any change in the rate or the basis of a Tax Deduction) notify the Agent
accordingly. Similarly, a Lender or Issuing Bank shall notify the Agent on becoming so aware
in respect of a payment payable to that Lender or Issuing Bank. If the Agent receives such
notification from a Lender or Issuing Bank it shall notify the Company and that Obligor.
	 
	(c)	 	If a Tax Deduction is required by law to be made by an Obligor, the amount of the payment due
from that Obligor shall be increased to an amount which (after making any Tax Deduction)
leaves an amount equal to the payment which would have been due if no Tax Deduction had been
required.
	 
	(d)	 	An Obligor is not required to make an increased payment to a Lender under paragraph (c) above
for a Tax Deduction in respect of tax imposed by France from a payment of interest on a Loan,
if on the date on which the payment falls due:

	 	(i)	 	the payment could have been made to the relevant Lender without a Tax Deduction
if it was a Qualifying Lender, but on that date that Lender is not or has ceased to be
a Qualifying Lender other than as a result of any change after the date it became a
Lender under this Agreement in (or in the interpretation, administration, or
application of) any law or double taxation agreement, or any published practice or
concession of any relevant taxing authority; or
	 
	 	(ii)	 	the relevant Lender is a Treaty Lender and the Obligor making the payment is
able to demonstrate that the payment could have been made to the Lender without the Tax
Deduction had that Lender complied with its obligations under paragraph (g) below.

	(e)	 	If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction
and any payment required in connection with that Tax Deduction within the time allowed and in
the minimum amount required by law.
	 
	(f)	 	Within thirty days of making either a Tax Deduction or any payment required in connection
with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for
the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance
Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to
the relevant taxing authority.

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	(g)	 	A Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is
entitled shall co-operate in completing any procedural formalities necessary for that Obligor
to obtain authorisation to make that payment without a Tax Deduction.

	17.3	 	Tax indemnity
	 
	(a)	 	The Company or the relevant Obligor shall (within three Business Days of demand by the Agent)
pay to a Protected Party an amount equal to the loss, liability or cost which that Protected
Party determines will be or has been (directly or indirectly) suffered for or on account of
Tax by that Protected Party in respect of a Finance Document.
	 
	(b)	 	Paragraph (a) above shall not apply:

	 	(i)	 	with respect to any Tax assessed on a Finance Party:

	 	(A)	 	under the law of the jurisdiction in which that Finance Party
is incorporated or, if different, the jurisdiction (or jurisdictions) in which
that Finance Party is treated as resident for tax purposes; or
	 
	 	(B)	 	under the law of the jurisdiction in which that Finance Party’s
Facility Office is located in respect of amounts received or receivable in that
jurisdiction,
	 
	 	if that Tax is imposed on or calculated by reference to the net income received or
receivable (but not any sum deemed to be received or receivable) by that Finance
Party; or

	 	(ii)	 	to the extent a loss, liability or cost:

	 	(A)	 	is compensated for by an increased payment under Clause 17.2
(Tax gross-up); or
	 
	 	(B)	 	would have been compensated for by an increased payment under
Clause 17.2 (Tax gross-up) but was not so compensated solely because one of the
exclusions in paragraph (d) of Clause 17.2 (Tax gross-up) applied.

	(c)	 	A Protected Party making, or intending to make a claim under paragraph (a) above shall
promptly notify the Agent of the event which will give, or has given, rise to the claim,
following which the Agent shall notify the Company.
	 
	(d)	 	A Protected Party shall, on receiving a payment from an Obligor under this Clause 17.3,
notify the Agent.
	 
	17.4	 	Tax Credit
	 
	If an Obligor makes a Tax Payment and the relevant Finance Party determines that:
	 
	(a)	 	a Tax Credit is attributable to that Tax Payment; and
	 
	(b)	 	that Finance Party has obtained, utilised and retained that Tax Credit,

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the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave
it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment
not been made by the Obligor.

	17.5	 	Stamp taxes

The Company shall pay and, within three Business Days of demand, indemnify each Finance Party
against any cost, loss or liability that such Finance Party incurs in relation to all stamp duty,
registration and other similar Taxes payable in respect of any Finance Document.

	17.6	 	Value added tax
	 
	(a)	 	All amounts set out, or expressed to be payable under a Finance Document by any Party to a
Finance Party which (in whole or in part) constitute the consideration for VAT purposes shall
be deemed to be exclusive of any VAT which is chargeable on the relevant supply, and
accordingly, subject to paragraph (c) below, if VAT is chargeable on any supply made by any
Finance Party to any Party under a Finance Document, that Party shall pay to the Finance Party
(in addition to and at the same time as paying the consideration) an amount equal to the
amount of the VAT (and such Finance Party shall promptly provide an appropriate VAT invoice to
such Party).
	 
	(b)	 	If VAT is chargeable on any supply made by any Finance Party (the “Supplier”) to any other
Finance Party (the “Recipient”) under a Finance Document, and any Party (the “Relevant Party”)
is required by the terms of any Finance Document to pay an amount equal to the consideration
for such supply to the Supplier (rather than being required to reimburse the Recipient in
respect of that consideration), such Party shall also pay to the Supplier (in addition to and
at the same time as paying such amount) an amount equal to the amount of such VAT (and such
Finance Party shall promptly provide an appropriate VAT invoice to such Party). The Recipient
will promptly pay to the Relevant Party an amount equal to any credit or repayment from the
relevant tax authority which it reasonably determines relates to the VAT chargeable on that
supply.
	 
	(c)	 	Where a Finance Document requires any Party to reimburse a Finance Party for any costs or
expenses, that Party shall also at the same time pay and indemnify the Finance Party against
all VAT incurred by the Finance Party in respect of the costs or expenses to the extent that
the Finance Party reasonably determines that neither it nor any other member of any group of
which it is a member for VAT purposes is entitled to credit or repayment from the relevant tax
authority in respect of the VAT (and such Finance Party shall promptly provide an appropriate
VAT invoice to such Party).
	 
	18.	 	INCREASED COSTS
	 
	18.1	 	Increased costs
	 
	(a)	 	Subject to Clause 18.3 (Exceptions) the Company shall, within three Business Days of a demand
by the Agent, pay for the account of a Finance Party the amount of any Increased Costs
incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of
or any change in (or in the interpretation, administration or application of) any law or
regulation or (ii) compliance with any law or regulation made after the date of this
Agreement.

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	(b)	 	In this Agreement “Increased Costs” means:

	 	(i)	 	a reduction in the rate of return from a Facility or on a Finance Party’s (or
its Affiliate’s) overall capital;
	 
	 	(ii)	 	an additional or increased cost; or
	 
	 	(iii)	 	a reduction of any amount due and payable under any Finance Document,

	 	 	which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that
it is attributable to that Finance Party having entered into its Commitment or an Ancillary
Commitment or funding or performing its obligations under any Finance Document or Letter of
Credit.
	 
	18.2	 	Increased cost claims
	 
	(a)	 	A Finance Party intending to make a claim pursuant to Clause 18.1 (Increased costs) shall
notify the Agent of the event giving rise to the claim, following which the Agent shall
promptly notify the Company.
	 
	(b)	 	Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a
certificate confirming the amount of its Increased Costs.
	 
	18.3	 	Exceptions
	 
	(a)	 	Clause 18.1 (Increased costs) does not apply to the extent any Increased Cost is:

	 	(i)	 	attributable to a Tax Deduction required by law to be made by an Obligor;
	 
	 	(ii)	 	compensated for by Clause 17.3 (Tax indemnity) (or would have been compensated
for under Clause 17.3 (Tax indemnity) but was not so compensated solely because any of
the exclusions in paragraph (b) of Clause 17.3 (Tax indemnity) applied);
	 
	 	(iii)	 	compensated for by the payment of the Mandatory Cost; or
	 
	 	(iv)	 	attributable to the wilful breach by the relevant Finance Party or its
Affiliates of any law or regulation.

	(b)	 	In this Clause 18.3 reference to a “Tax Deduction” has the same meaning given to the term in
Clause 17.1 (Definitions).
	 
	19.	 	OTHER INDEMNITIES
	 
	19.1	 	Currency indemnity
	 
	(a)	 	If any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment
or award given or made in relation to a Sum, has to be converted from the currency (the “First
Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the
purpose of:

	 	(i)	 	making or filing a claim or proof against that Obligor; or

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	 	(ii)	 	obtaining or enforcing an order, judgment or award in relation to any
litigation or arbitration proceedings,

	 	 	that Obligor shall as an independent obligation, within three Business Days of demand,
indemnify (to the extent permitted by law) the Arrangers and each other Finance Party to
whom that Sum is due against any cost, loss or liability arising out of or as a result of
the conversion including any discrepancy between (A) the rate of exchange used to convert
that Sum from the First Currency into the Second Currency and (B) the rate or rates of
exchange available to that person at the time of its receipt of that Sum.
	 
	(b)	 	Each Obligor waives any right it may have in any jurisdiction to pay any amount under the
Finance Documents in a currency or currency unit other than that in which it is expressed to
be payable.
	 
	19.2	 	Other indemnities
	 
	(a)	 	The Company shall (or shall procure that an Obligor will), within three Business Days of
demand, indemnify the Arrangers and each other Finance Party against any cost, loss or
liability incurred by it as a result of:

	 	(i)	 	the occurrence of any Event of Default;
	 
	 	(ii)	 	a failure by an Obligor to pay any amount due under a Finance Document on its
due date, including without limitation, any cost, loss or liability arising as a result
of Clause 31 (Sharing among the Finance Parties);
	 
	 	(iii)	 	funding, or making arrangements to fund, its participation in a Utilisation
requested by a Borrower in a Utilisation Request but not made by reason of the
operation of any one or more of the provisions of this Agreement (other than by reason
of default or negligence by that Finance Party alone);
	 
	 	(iv)	 	issuing or making arrangements to issue a Letter of Credit requested by the
Company or a Borrower in a Utilisation Request but not issued by reason of the
operation of any one or more of the provisions of this Agreement; or
	 
	 	(v)	 	a Utilisation (or part of a Utilisation) not being prepaid in accordance with a
notice of prepayment given by a Borrower or the Company.

	(b)	 	The Company shall promptly indemnify each Finance Party, each Affiliate of a Finance Party
and each officer or employee of a Finance Party or its Affiliate, against any cost, loss or
liability incurred by that Finance Party or its Affiliate (or officer or employee of that
Finance Party or Affiliate) in connection with or arising out of the Refinancing or the
funding of the Refinancing (including but not limited to those incurred in connection with any
litigation, arbitration or administrative proceedings or regulatory enquiry concerning the
Refinancing), unless such loss or liability is caused by the gross negligence or wilful
misconduct of that Finance Party or its Affiliate (or employee or officer of that Finance
Party or Affiliate). Any Affiliate or any officer or employee of a Finance Party or its
Affiliate may rely on this Clause 19.2.

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	19.3	 	Indemnity to the Agent

The Company shall promptly indemnify the Agent against any cost, loss or liability incurred by the
Agent (acting reasonably) as a result of:

	(a)	 	investigating any event which it reasonably believes is a Default; or
	 
	(b)	 	acting or relying on any notice, request or instruction which it reasonably believes to be
genuine, correct and appropriately authorised.
	 
	19.4	 	Indemnity to the Security Agent
	 
	(a)	 	Each Obligor shall promptly indemnify the Security Agent and every Delegate against any cost,
loss or liability incurred by any of them as a result of:

	 	(i)	 	the taking, holding, protection or enforcement of the Transaction Security,
	 
	 	(ii)	 	the exercise of any of the rights, powers, discretions and remedies vested in
the Security Agent and each Delegate by the Finance Documents or by law; or
	 
	 	(iii)	 	any default by any Obligor in the performance of any of the obligations
expressed to be assumed by it in the Finance Documents.

	(b)	 	The Security Agent may, in priority to any payment to the Secured Parties, indemnify itself
out of the Charged Property in respect of, and pay and retain, all sums necessary to give
effect to the indemnity in this Clause 19.4 and shall have a lien on the Transaction Security
and the proceeds of the enforcement of the Transaction Security for all monies payable to it.
	 
	20.	 	MITIGATION BY THE LENDERS
	 
	20.1	 	Mitigation
	 
	(a)	 	Each Finance Party shall, in consultation with the Company, take all reasonable steps to
mitigate any circumstances which arise and which would result in any amount becoming payable
under or pursuant to, or cancelled pursuant to, any of Clause 10.1 (Illegality) (or, in
respect of the Issuing Banks, Clause 10.2 (Illegality in relation to Issuing Bank)), Clause 17
(Tax Gross Up and Indemnities) or Clause 18 (Increased Costs) or Schedule 4 (Mandatory Cost
Formula) including (but not limited to) transferring its rights and obligations under the
Finance Documents to another Affiliate or Facility Office.
	 
	(b)	 	Paragraph (a) above does not in any way limit the obligations of any Obligor under the
Finance Documents.
	 
	20.2	 	Limitation of liability
	 
	(a)	 	The Company shall promptly indemnify each Finance Party for all costs and expenses reasonably
incurred by that Finance Party as a result of steps taken by it under Clause 20.1
(Mitigation).

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	(b)	 	A Finance Party is not obliged to take any steps under Clause 20.1 (Mitigation) if, in the
opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.
	 
	21.	 	COSTS AND EXPENSES
	 
	21.1	 	Transaction expenses

The Company shall promptly on demand pay the Agent, the Arrangers, the Issuing Banks and the
Security Agent the amount of all costs and expenses (including legal fees) reasonably incurred by
any of them (and, in the case of the Security Agent, by any Delegate) in connection with the
negotiation, preparation, printing, execution, syndication and perfection of:

	(a)	 	this Agreement and any other documents referred to in this Agreement and the Transaction
Security; and
	 
	(b)	 	any other Finance Documents executed after the date of this Agreement.
	 
	21.2	 	Amendment costs

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant
to Clause 32.10 (Change of currency), the Company shall, within three Business Days of demand,
reimburse each of the Agent and the Security Agent for the amount of all costs and expenses
(including legal fees) reasonably incurred by the Agent and the Security Agent (and, in the case of
the Security Agent, by any Delegate) in responding to, evaluating, negotiating or complying with
that request or requirement.

	21.3	 	Enforcement and preservation costs

The Company shall, within three Business Days of demand, pay to the Arrangers and each other
Secured Party the amount of all costs and expenses (including legal fees) incurred by it in
connection with the enforcement of or the preservation of any rights under any Finance Document and
the Transaction Security and any proceedings instituted by or against the Security Agent as a
consequence of taking or holding the Transaction Security or enforcing these rights.

SECTION 7 — REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	22.	 	REPRESENTATIONS
	 
	22.1	 	General

Each Obligor makes the representations and warranties set out in this Clause 22 to each Finance
Party, provided that Quiksilver, Inc. and QSH shall not make for themselves the
representations and warranties set out in Clauses 22.10 (Deduction of Tax), 22.11 (No default),
22.12 (No misleading information), 22.14 (No proceedings pending or threatened), 22.15 (No breach
of laws), 22.16 (Environmental laws), 22.17 (Taxation), 22.18 (Security and Financial
Indebtedness), 22.20 (Good title to assets), 22.25 (Accounting reference date), 22.27 (Pensions),
22.29 (Existing guarantees and off-balance sheet liabilities) and 22.30

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(Equity capital of Pilot) and provided further that Quiksilver, Inc. shall
not make the representations and warranties set out in Clauses 22.21 (Legal and beneficial
ownership), 22.22 (Shares), 22.23 (Intellectual Property) and 22.26 (Centre of main interests and
establishments).

	22.2	 	Status
	 
	(a)	 	It and each of its Subsidiaries which is a member of the European Group is a company with
limited liability (with the exception of Tyax which is a société en nom collectif), duly
incorporated and validly existing under the law of its jurisdiction of incorporation.
	 
	(b)	 	It and each of its Subsidiaries which is a member of the European Group has the power to own
its assets and carry on its business as it is being conducted.
	 
	22.3	 	Binding obligations

Subject to the Legal Reservations:

	(a)	 	the obligations expressed to be assumed by it in each Finance Document to which it is a party
are legal, valid, binding and enforceable obligations; and
	 
	(b)	 	(without limiting the generality of paragraph (a) above), each Transaction Security Document
to which it is a party creates the security interests which that Transaction Security Document
purports to create and those security interests are valid and effective.

22.4 Non-conflict with other obligations

The entry into and performance by it of, and the transactions contemplated by, the Finance
Documents and the granting of the Transaction Security do not and will not conflict with:

	(a)	 	any law or regulation applicable to it;
	 
	(b)	 	its constitutional documents and the constitutional documents of any member of the Group; or
	 
	(c)	 	any agreement (including for the avoidance of doubt the 2009 ABL Agreement, the Senior Notes
and the Rhône Financing Documents) or instrument binding upon it or any of its Subsidiaries or
any of its or any of its Subsidiaries’ assets or constitute a default or termination event
(however described) under any such agreement or instrument.
	 
	22.5	 	Power and authority
	 
	(a)	 	It has the power to enter into, perform and deliver, and has taken, or will have taken prior
to the relevant time, all necessary action to authorise its entry into, performance and
delivery of, the Transaction Documents to which it is or will be a party and the transactions
contemplated by those Transaction Documents.

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	(b)	 	No limit on its powers will be exceeded as a result of the borrowing, grant of security or
giving of guarantees or indemnities contemplated by the Transaction Documents to which it is a
party.
	 
	22.6	 	Validity and admissibility in evidence
	 
	(a)	 	All Authorisations required or desirable:

	 	(i)	 	to enable it lawfully to enter into, exercise its rights and comply with its
obligations in the Transaction Documents to which it is a party; and
	 
	 	(ii)	 	to make the Transaction Documents to which it is a party admissible in evidence
in its Relevant Jurisdictions,

	 	 	have been obtained or effected and are in full force and effect.
	 
	(b)	 	All Authorisations necessary for the conduct of the business, trade and ordinary activities
of members of the Group have been obtained or effected and are in full force and effect if
failure to obtain or effect those Authorisations has or is reasonably likely to have a
Material Adverse Effect.
	 
	22.7	 	Governing law and enforcement
	 
	(a)	 	The choice of governing law of the Finance Documents will be recognised and enforced in its
Relevant Jurisdictions.
	 
	(b)	 	Any judgment obtained in relation to a Finance Document in the jurisdiction of the governing
law of that Finance Document will be recognised and enforced in its Relevant Jurisdictions.
	 
	22.8	 	Insolvency
	 
	No:
	 
	(a)	 	corporate action, legal proceeding or other procedure or step described in Clause 26.7
(Insolvency of ) and paragraph (a) of Clause 26.8 (Insolvency proceedings); or
	 
	(b)	 	creditors’ process described in Clause 26.9 (Creditors’ process),

has been taken or, to the knowledge of the Company, Na Pali or any TopCo Obligor, threatened (in
writing) in relation to a member of the Group or the relevant TopCo Obligor; and none of the
circumstances described in Clause 26.6 (Insolvency) applies to a member of the Group or a TopCo
Obligor.

	22.9	 	No filing or stamp taxes

Under the laws of its Relevant Jurisdiction it is not necessary that the Finance Documents be
filed, recorded or enrolled with any court or other authority in that jurisdiction or that any
stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Finance
Documents or the transactions contemplated by the Finance Documents, except any filing, recording
or enrolling or any tax or fee payable as contemplated in the relevant Transaction Security
Document.

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	22.10	 	Deduction of Tax

Neither the Company nor Na Pali is required under the law of its jurisdiction of incorporation to
make any deduction for or on account of Tax from any payment it may make under any Finance Document
to a Lender which is a Qualifying Lender (subject, in the case of a Treaty Lender, to the
completion of procedural formalities).

	22.11	 	No default
	 
	(a)	 	No Event of Default (other than on the Closing Date only, any Event of Default arising
pursuant to Clause 26.16 (Material adverse change)) and, on the date of this Agreement and the
Closing Date, no Default (other than on the Closing Date only, any Default arising pursuant to
Clause 26.16 (Material adverse change)) is continuing or is reasonably likely to result from
the making of any Utilisation or the entry into, the performance of, or any transaction
contemplated by, any Transaction Document.
	 
	(b)	 	No other event or circumstance is outstanding which constitutes (or, with the expiry of a
grace period, the giving of notice, the making of any determination or any combination of any
of the foregoing, would constitute) a default or termination event (however described) under
any other agreement or instrument which is binding on it or any of its Subsidiaries or to
which its (or any of its Subsidiaries’) assets are subject which has or is reasonably likely
to have a Material Adverse Effect.
	 
	22.12	 	No misleading information

Save as disclosed in writing to the Agent and the Arrangers prior to the date of this Agreement:

	(a)	 	any factual information contained in the Information Package was true and accurate in all
material respects as at the date of the relevant report or document containing the information
or (as the case may be) as at the date the information is expressed to be given;
	 
	(b)	 	the Business Plan has been prepared in accordance with the Accounting Principles as applied
to the Original Financial Statements, and the financial projections contained in the Business
Plan have been prepared on the basis of recent historical information, are fair and based on
reasonable assumptions and have been approved by the board of directors of the Company;
	 
	(c)	 	any financial projection or forecast contained in the Information Package has been prepared
on the basis of recent historical information and on the basis of reasonable assumptions and
was fair (as at the date of the relevant report or document containing the projection or
forecast) and arrived at after careful consideration;
	 
	(d)	 	the expressions of opinion or intention provided by or on behalf of an Obligor for the
purposes of the Information Package were made after careful consideration and (as at the date
of the relevant report or document containing the expression of opinion or intention) were
fair and based on reasonable grounds;
	 
	(e)	 	no event or circumstance has occurred or arisen and no information has been omitted from the
Information Package and no information has been given or withheld that

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results in the information, opinions, intentions, forecasts or projections contained in the
Information Package being untrue or misleading in any material respect;
	 
	(f)	 	all material information provided to a Finance Party by the Obligors in connection with the
Group or the Obligors on or before the date of this Agreement and not superseded before that
date (whether or not contained in the Information Package) is accurate and not misleading in
any material respect and all projections provided to any Finance Party on or before the date
of this Agreement have been prepared in good faith on the basis of assumptions which were
reasonable at the time at which they were prepared and supplied; and
	 
	(g)	 	all other written information provided by any Obligor or any member of the Group (including
its advisers) to a Finance Party was true, complete and accurate in all material respects as
at the date it was provided and is not misleading in any respect.
	 
	22.13	 	Financial Statements
	 
	(a)	 	Its Original Financial Statements were prepared in accordance with the Accounting Principles,
consistently applied.
	 
	(b)	 	Its unaudited Original Financial Statements fairly represent its financial condition and
results of operations (consolidated in the case of the Company) for the relevant Financial
Semester.
	 
	(c)	 	Its audited Original Financial Statements give a true and fair view of its financial
condition and results of operations (consolidated in the case of the Company) during the
relevant financial year.
	 
	(d)	 	There has been no material adverse change in its assets, business or financial condition (or
the assets, business or consolidated financial condition of the Group, in the case of the
Company) since the date of the Original Financial Statements, other than the changes reflected
in the Information Package disclosed to the Lenders as of the date of this Agreement.
	 
	(e)	 	Its most recent financial statements delivered pursuant to Clause 23.1 (Financial statements)
:

	 	(i)	 	have been prepared in accordance with the Accounting Principles as applied to
the Original Financial Statements; and
	 
	 	(ii)	 	give a true and fair view of (if audited) or fairly present (if unaudited) its
consolidated financial condition as at the end of, and consolidated results of
operations for, the period to which they relate.

	(f)	 	The Budgets and the Business Plan supplied under this Agreement were arrived at after careful
consideration and have been prepared in good faith on the basis of recent historical
information and on the basis of assumptions which were considered by the Company to be
reasonable as at the date they were prepared and supplied and have been reviewed by Ernst &
Young as financial adviser of the Group.

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	(g)	 	Since the date of the most recent financial statements delivered pursuant to Clause 23.1
(Financial statements) there has been no material adverse change in the business, assets or
financial condition of the Group taken as a whole.
	 
	22.14	 	No proceedings pending or threatened

No litigation, arbitration or administrative proceedings or investigations of, or before, any
court, arbitral body or agency which, if adversely determined, are reasonably likely to have a
Material Adverse Effect have (to the best of its knowledge and belief (having made due and careful
enquiry)) been started or threatened in writing against it or any of its Subsidiaries which is a
member of the European Group.

	22.15	 	No breach of laws
	 
	(a)	 	It has not (and none of its Subsidiaries which is a member of the European Group has)
breached any law or regulation which breach has or is reasonably likely to have a Material
Adverse Effect.
	 
	(b)	 	No labour disputes are current or, to the best of its knowledge and belief (having made due
and careful enquiry), threatened in writing against any member of the Group which have or are
reasonably likely to have a Material Adverse Effect.
	 
	22.16	 	Environmental laws
	 
	(a)	 	Each member of the Group is in compliance with Clause 25.3 (Environmental compliance) and to
the best of its knowledge and belief (having made due and careful enquiry) no circumstances
have occurred which would prevent such compliance in a manner or to an extent which has or is
reasonably likely to have a Material Adverse Effect.
	 
	(b)	 	No Environmental Claim has been commenced or (to the best of its knowledge and belief (having
made due and careful enquiry)) is threatened against any member of the Group where that claim
has or is reasonably likely, if determined against that member of the Group, to have a
Material Adverse Effect.
	 
	22.17	 	Taxation
	 
	(a)	 	It is not (and none of its Subsidiaries which is a member of the European Group is)
materially overdue in the filing of any Tax returns and it is not (and none of its
Subsidiaries which is a member of the European Group is) overdue in the payment of any amount
in respect of Tax of €2,000,000 (or its equivalent in any other currency) or more.
	 
	(b)	 	No claims or investigations are being, or are reasonably likely to be, made or conducted
against it (or any of its Subsidiaries which is a member of the European Group) with respect
to Taxes such that the aggregate amount of such claims and liabilities for the whole European
Group equals or exceeds €2,000,000 (or its equivalent in any other currency) or more.
	 
	(c)	 	It is resident for Tax purposes only in the jurisdiction of its incorporation.

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	22.18	 	Security and Financial Indebtedness
	 
	(a)	 	No Security or Quasi-Security exists over all or any of the present or future assets of any
member of the European Group other than as permitted by this Agreement (provided, for the
avoidance of doubt, that this Agreement does not prevent the existence of Security or
Quasi-Security over present or future assets of QSH, other than Charged Property of QSH).
	 
	(b)	 	No member of the European Group has any Financial Indebtedness outstanding other than as
permitted by this Agreement.
	 
	22.19	 	Ranking

The Transaction Security has or will have first ranking priority and it is not subject to any prior
ranking or pari passu ranking Security.

	22.20	 	Good title to assets

It and each member of the European Group has a good, valid and (subject to any Permitted Security)
marketable title to, or valid leases or licences of, and all appropriate Authorisations to use, the
assets necessary to carry on its business as presently conducted.

	22.21	 	Legal and beneficial ownership

It and each of its Subsidiaries is the sole legal and beneficial owner of the respective assets
over which it purports to grant Security.

	22.22	 	Shares

The shares of companies which are subject to the Transaction Security are fully paid and not
subject to any option to purchase or similar rights. The constitutional documents of companies
whose shares are subject to the Transaction Security do not and could not restrict or inhibit any
transfer of those shares on creation or enforcement of the Transaction Security.

	22.23	 	Intellectual Property

	(a)	 	It and each of its Subsidiaries:

	 	(i)	 	is the sole legal and beneficial owner of or has licensed to it or has the
right to use on normal commercial terms all the Intellectual Property which is material
in the context of its business and which is required by it in order to carry on its
business as it is being conducted and as contemplated in the Business Plan;
	 
	 	(ii)	 	does not (nor does any of its Subsidiaries), in carrying on its businesses,
infringe any Intellectual Property of any third party in any respect which has or is
reasonably likely to have a Material Adverse Effect; and
	 
	 	(iii)	 	has taken all formal or procedural actions (including payment of fees)
required to maintain any material Intellectual Property owned by it.

	(b)	 	The revenue generated by products bearing the Material Trademarks represents at least 80% of
the consolidated revenue of the Group (excluding revenues from the DC

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	 	 	Shoes Business) for the most recently
closed six-month period for which
financial information is available and
such Material Trademarks constitute all
of the marks and trademarks which are
necessary, useful and sufficient to
generate such revenue.
	 
	22.24	 	Structure Chart
	 
	(a)	 	The Structure Chart delivered to the Agent pursuant to Schedule 2 (Conditions Precedent) is
true, complete and accurate in all material respects and shows the following information:

	 	(i)	 	Quiksilver, Inc., QSH, Biarritz Holdings and each of the Subsidiaries of the
latter, including current name, their jurisdiction of incorporation and/or
establishment, a list of shareholders and indicating whether a company is a Dormant
Subsidiary or is not a company with limited liability; and
	 
	 	(ii)	 	all minority interests in Biarritz Holdings and each of its Subsidiaries and
any person in which Biarritz Holdings or any of its Subsidiaries hold shares in its
issued share capital or equivalent ownership interest of such person.

	(b)	 	All necessary intra-Group loans, transfers, share exchanges and other steps resulting in the
final Group structure are set out in the Structure Chart and have been or will be taken in
compliance with all relevant laws and regulations and all requirements of relevant regulatory
authorities.
	 
	22.25	 	Accounting reference date

The Accounting Reference Date of each member of the Group is 31 October.

	22.26	 	Centre of main interests and establishments

For the purposes of The Council of the European Union Regulation No. 1346/2000 on Insolvency
Proceedings (the “Regulation”), the centre of main interest (as that term is used in Article 3(1)
of the Regulation) of the Obligors incorporated in the European Union, is situated in its
jurisdiction of incorporation and it has no “establishment” (as that term is used in Article 2(h)
of the Regulations) in any other jurisdiction.

	22.27	 	Pensions

All pension schemes operated by or maintained for the benefit of members of the Group and/or any of
their employees are fully funded based on applicable statutory requirements and no action or
omission has been taken by any member of the Group in relation to such a pension scheme which has
or is reasonably likely to have a Material Adverse Effect (including, without limitation, the
termination or commencement of winding-up proceedings of any such pension scheme or any member of
the Group ceasing to employ any member of such a pension scheme).

	22.28	 	No adverse consequences

	(a)	 	It is not necessary under the laws of its Relevant Jurisdictions:

	 	(i)	 	in order to enable any Finance Party to enforce its rights under any Finance
Document; or

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	 	(ii)	 	by reason of the execution of any Finance Document or the performance by it of
its obligations under any Finance Document,

	 	 	that any Finance Party should be licensed, qualified or otherwise entitled to carry on
business in any of its Relevant Jurisdictions.
	 
	(b)	 	No Finance Party is or will be deemed to be resident, domiciled or carrying on business in
its Relevant Jurisdictions by reason only of the execution, performance and/or enforcement of
any Finance Document.
	 
	22.29	 	Existing guarantees and off-balance sheet liabilities

No member of the European Group has given or incurred any guarantee or off-balance sheet
liabilities other than as permitted by this Agreement.

	22.30	 	Equity capital of Pilot

No later than 31 October 2009, the Company’s equity capital (capitaux propres) shall be equal to at
least half of its share capital (capital social) in accordance with article L.225-248 of the French
Code de commerce.

	22.31	 	Investment Company Act

Neither Quiksilver, Inc. nor any of its Subsidiaries is an “investment company” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as amended.

	22.32	 	Carried Forward Tax Losses

The Group’s tax losses to be carried forward as of 31 October 2008 is equal to at least
€210,000,000 (such minimum amount, the “Carried Forward Tax Losses”).

	22.33	 	J.P. Morgan Guarantee

The maximum aggregate amount of the payment obligations of Na Pali under the J.P. Morgan Guarantee
and the Issuance and Reimbursement Agreement shall not exceed €35,600,000 at any time during the
life of the Facilities.

	22.34	 	Times when representations made
	 
	(a)	 	Except the representations and warranties set out in Clause 22.30 (Equity capital of Pilot),
all the representations and warranties in this Clause 22 are made by each relevant Original
Obligor on the date of this Agreement and (other than representations and warranties set out
in paragraphs (d) and (g) of Clause 22.13 (Financial Statements)) on the Closing Date and by
Biarritz Holdings, Quiksilver Europa and QSH on the Closing Date.
	 
	(b)	 	The representations and warranties set out in Clause 22.2 (Status) to Clause 22.7 (Governing
law and enforcement), Clause 22.10 (Deduction of Tax), Clause 22.11 (No default), paragraph
(g) of Clause 22.12 (No misleading information), paragraphs (e) and (g) of Clause 22.13
(Financial Statements), Clause 22.14 (No proceedings pending or threatened) to Clause 22.22
(Shares), Clause 22.26 (Centre of main

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	 	 	interests and establishments), Clause 22.27 (Pensions), Clause 22.31 (Investment Company
Act) and Clause 22.33 (J.P. Morgan Guarantee) (the “Repeating Representations”) are deemed
to be made by each Obligor on the date of each Utilisation Request, on each Utilisation Date
and on the first day of each Interest Period, provided that the representation and warranty
set out in paragraph (g) of Clause 22.13 (Financial Statements) shall not be made on the
Closing Date.
	 
	(c)	 	The representations and warranties set out in Clause 22.30 (Equity capital of Pilot) are
deemed to be made by the Company and each TopCo Obligor (other than Quiksilver, Inc. and QSH)
on 31 October 2009.
	 
	(d)	 	The representations and warranties set out in paragraph (b) of Clause 22.23 (Intellectual
Property) are deemed to be made on the last day of each Financial Semester.
	 
	(e)	 	Each representation or warranty deemed to be made after the date of this Agreement shall be
deemed to be made by reference to the facts and circumstances existing at the date the
representation or warranty is deemed to be made.
	 
	(f)	 	This Clause 22.34 is subject in all respects to the limitations set forth in the introductory
paragraph of Clause 22.1 (General).
	 
	23.	 	INFORMATION UNDERTAKINGS

The undertakings in this Clause 23 remain in force from the date of this Agreement for so long as
any amount is outstanding under the Finance Documents or any Commitment is in force.

In this Clause 23:

“Annual Financial Statements” means the financial statements for a Financial Year delivered
pursuant to paragraphs (a) and (b) of Clause 23.1 (Financial statements).

“Annual Pilot Consolidated Financial Statements” means the Pilot Consolidated Financial Statements
for a Financial Year delivered pursuant to paragraph (a) of Clause 23.1 (Financial statements).

“Pilot Consolidated Financial Statements” means the portion of each Business Plan (delivered to the
Agent on the date of this Agreement pursuant to Schedule 2 (Conditions Precedent) and thereafter
pursuant to paragraph (b) of Clause 23.4 (Business Plan)) comprising a consolidated balance sheet,
a consolidated profit and loss account and a consolidated cash flow statement for the Company and
its Subsidiaries (together with all annexes relating thereto), provided that within 90 days
following the end of each Financial Year and each Financial Semester a new version of the Business
Plan shall be delivered to the Agent including the foregoing financial statements for such
Financial Year or Financial Semester, as the case may be.

“Deloitte Letter” means the letter setting out the procedures applicable to Deloitte’s review of
the Pilot Consolidated Financial Statements, in form and substance reasonably satisfactory to the
Majority Lenders.

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	23.1	 	Financial statements

The Company shall supply to the Agent in sufficient copies for all the Lenders:

	(a)	 	as soon as they are available, but in any event within 90 days after the end of each of its
Financial Years, the Pilot Consolidated Financial Statements for that Financial Year;
	 
	(b)	 	as soon as they are available, but in any event within 180 days after the end of each of its
Financial Years:

	 	(i)	 	its audited financial statements for that Financial Year;
	 
	 	(ii)	 	the audited financial statements of Biarritz Holdings, Quiksilver Europa and Na
Pali and the consolidated financial statements of Na Pali for that Financial Year; and
	 
	 	(iii)	 	the audited financial statements of any other Material Subsidiary for that
Financial Year; and

	(c)	 	as soon as they are available, but in any event within 90 days after the end of each
Financial Semester ending 30 April its financial statements and the Pilot Consolidated
Financial Statements for that Financial Semester.
	 
	23.2	 	Provision and contents of Compliance Certificate
	 
	(a)	 	The Company shall supply a Compliance Certificate to the Agent with each set of its Pilot
Consolidated Financial Statements for each Financial Year and each Financial Semester.
	 
	(b)	 	The Compliance Certificate shall, amongst other things, set out (in reasonable detail)
computations as to compliance with Clause 24 (Financial Covenants).
	 
	(c)	 	Each Compliance Certificate shall be signed by one legal representative of the Company and
shall be reported on by the Company’s Auditors in the form agreed by the Company and the
Majority Lenders.
	 
	23.3	 	Requirements as to financial statements
	 
	(a)	 	The Company shall procure that each set of financial statements and Pilot Consolidated
Financial Statements delivered pursuant to this Clause 23 includes a balance sheet, profit and
loss account and cashflow statement. In addition the Company shall procure that each set of
Pilot Consolidated Financial Statements shall be reviewed by the Auditors in accordance with
the “agreed upon procedure” defined in the Deloitte Letter together with any comments and
notes relating thereto from the Auditors (in accordance with the Deloitte Letter) and the
Senior Management.
	 
	(b)	 	Each set of financial statements delivered pursuant to Clause 23.1 (Financial statements) :

	 	(i)	 	shall be certified by a legal representative of the relevant company as giving
a true and fair view of (in the case of Annual Financial Statements for any

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	 	 	 	Financial Year), or fairly representing (in other cases), its financial condition
and operations as at the date as at which those financial statements were drawn up
and, in the case of the Annual Financial Statements, shall be accompanied by any
letter addressed to the management of the relevant company by the Auditors and
accompanying those Annual Financial Statements;
	 
	 	(ii)	 	in the case of Pilot Consolidated Financial Statements, shall be accompanied by
a statement by a legal representative of the Company comparing actual performance for
the period to which the financial statements relate to:

	 	(A)	 	the projected performance for that period set out in the
Budget; and
	 
	 	(B)	 	the actual performance for the corresponding period in the
preceding Financial Year of the Group; and

	 	(iii)	 	shall be prepared using the Accounting Principles, accounting practices and
financial reference periods consistent with those applied:

	 	(A)	 	in the case of the Company, in the preparation of the Initial
Business Plan; and
	 
	 	(B)	 	in the case of any Obligor, in the preparation of the Original
Financial Statements for that Obligor,

	 	 	unless, in relation to any set of financial statements, the Company notifies the Agent that
there has been a change in the Accounting Principles or the accounting practices and its
Auditors (or, if appropriate, the Auditors of the Obligor) deliver to the Agent:

	 	(C)	 	a description of any change necessary for those financial
statements to reflect the Accounting Principles or accounting practices upon
which the Initial Business Plan or, as the case may be, that Obligor’s Original
Financial Statements were prepared; and
	 
	 	(D)	 	sufficient information, in form and substance as may be
reasonably required by the Agent, to enable the Lenders to determine whether
Clause 24 (Financial Covenants) has been complied with, to determine the Margin
as set out in the definition of “Margin”, to determine the amount of any
prepayments to be made from excess cashflow under Clause 11.2 (Disposal,
Insurance, Issuance and Reimbursement Proceeds and Excess Cashflow) and to make
an accurate comparison between the financial position indicated in those
financial statements and the Initial Business Plan (in the case of the Company)
or that Obligor’s Original Financial Statements (in the case of an Obligor).

	 	 	Any reference in this Agreement to any financial statements shall be construed as a
reference to those financial statements as adjusted to reflect the basis upon which the
Initial Business Plan or, as the case may be, the Original Financial Statements were
prepared.
	 
	(c)	 	If any Lender wishes to discuss the financial position of any Obligor or any member of the
Group with the Auditors, the Agent on the instructions and on behalf of such Lender may notify
the Company, stating the questions or issues which the Lender

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	 	 	wishes to discuss with the Auditors. In this event, the Company must ensure that the
Auditors are authorised (at the expense of the Company):

	 	(i)	 	to discuss the financial position of each Obligor and each member of the Group
with the relevant Lender on request from that Lender; and
	 
	 	(ii)	 	to disclose to the relevant Lender and the Agent any information which that
Lender and the Agent on behalf of that Lender may reasonably request.

	23.4	 	Business Plan
	 
	(a)	 	The Company shall supply to the Agent in sufficient copies for all the Lenders, as soon as
the same become available but in any event no later than 30 days before the start of each of
its Financial Years, an updated Business Plan covering the following four year period
(including such Financial Year) reviewed by Ernst & Young (or any other financial adviser as
agreed in writing by the Agent acting upon instructions of the Majority Lenders) as financial
adviser of the Group.
	 
	(b)	 	The Company shall supply to the Agent in sufficient copies for all the Lenders, as soon as
the same become available but in any event within 90 days after the start of each of its
Financial Years, an updated Business Plan covering the following four year period (including
such Financial Year) and including the Pilot Consolidated Financial Statements for the
immediately preceding Financial Year reviewed by Ernst & Young (or any other financial adviser
as agreed in writing by the Agent acting upon the instructions of the Majority Lenders) as
financial adviser of the Group.
	 
	23.5	 	Budget
	 
	(a)	 	The Company shall supply to the Agent in sufficient copies for all the Lenders, as soon as
the same become available but in any event within 30 Business Days before the start of each of
its Financial Years, an annual Budget for that Financial Year.
	 
	(b)	 	The Company shall ensure that each Budget:

	 	(i)	 	is in the same format as the Budget delivered to the Agent pursuant to Schedule
2 (Conditions Precedent) and includes a projected consolidated profit and loss, balance
sheet and cashflow statement for the Group and projected financial covenant
calculations;
	 
	 	(ii)	 	is prepared in accordance with the Accounting Principles and the accounting
practices and financial reference periods applied to financial statements under Clause
23.1 (Financial statements); and
	 
	 	(iii)	 	has been approved by the Président of the Company.

	(c)	 	If the Company updates or changes the Budget, it shall within not more than 10 Business Days
of the update or change being made deliver to the Agent, in sufficient copies for each of the
Lenders, such updated or changed Budget together with a written explanation of the main
changes in that Budget.

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	23.6	 	Material Subsidiaries

The Company shall supply to the Agent within 90 days after the start of each of its Financial Years
a report issued by its Auditors stating which of its Subsidiaries are Material Subsidiaries.

	23.7	 	Presentations

Once in every Financial Year, or more frequently if requested to do so by the Agent if the Agent
reasonably suspects a Default is continuing or may have occurred or may occur, at least two legal
representatives of the Company (one of whom shall be the chief financial officer) must give a
presentation to the Finance Parties about the on-going business and financial performance of the
Group.

	23.8	 	Year-end

The Obligors shall not change the Group’s Financial Year and shall procure that each member of the
Group’s Financial Year end will not change.

	23.9	 	Information: miscellaneous

The Company shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so
requests):

	(a)	 	as soon as the same become available but in any event no later than on the 5th Business Day
of each calendar month a cash position statement of the Group detailing (a) the sources and
uses of the cash within the Group for the past month and (b) the forecast of the sources and
uses of the cash within the Group for the three month period following the date of delivery of
such statement, such cash position statement being certified by a legal representative of the
Company;
	 
	(b)	 	at the same time as they are dispatched, copies of all documents dispatched by the Borrowers
to their creditors generally (or any class of them) (other than the documents delivered to GE
Factofrance under the NP Factoring Agreements in the normal course of such factoring
programme);
	 
	(c)	 	promptly upon becoming aware of them, the details of any litigation, arbitration or
administrative proceedings which are current, threatened in writing or pending against any
European Obligor or any member of the Group, and which, if adversely determined, are
reasonably likely to have a Material Adverse Effect or which would involve a liability, or a
potential or alleged liability, exceeding €2,000,000 (or its equivalent in other currencies);
	 
	(d)	 	promptly upon becoming aware of it, any event giving rise to a mandatory prepayment referred
to under Clause 11 (Mandatory Prepayment);
	 
	(e)	 	promptly, such information as the Security Agent may reasonably require about the Charged
Property and compliance of the Obligors with the terms of any Transaction Security Documents;
and
	 
	(f)	 	promptly on request, such further information regarding the financial condition, assets and
operations of the Obligors, the Group and/or any member of the Group (including

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	 	 	any requested amplification or explanation of
any item in the financial statements, budgets or
other material provided by any Obligor under
this Agreement), any changes to the composition
of the Senior Management and an up to date copy
of any Obligor’s shareholders’ register (or
equivalent in its jurisdiction of
incorporation)) as any Finance Party through the
Agent may reasonably request.
	 
	23.10	 	Notification of default
	 
	(a)	 	Each Obligor shall notify the Agent of any Default (and the steps, if any, being taken to
remedy it) promptly upon becoming aware of its occurrence (unless that Obligor has proven that
a notification has already been provided by another Obligor).
	 
	(b)	 	Promptly upon a request by the Agent, the Company shall supply to the Agent a certificate
signed by two legal representatives on its behalf certifying that no Default is continuing (or
if a Default is continuing, specifying the Default and the steps, if any, being taken to
remedy it).
	 
	23.11	 	“Know your customer” checks
	 
	(a)	 	If:

	 	(i)	 	the introduction of or any change in (or in the interpretation, administration
or application of) any law or regulation made after the date of this Agreement;
	 
	 	(ii)	 	any change in the status of an Obligor or the composition of the shareholders
of an Obligor after the date of this Agreement; or
	 
	 	(iii)	 	a proposed assignment or transfer by a Lender of any of its rights and/or
obligations under this Agreement to a party that is not a Lender prior to such
assignment or transfer,

		 	obliges the Agent or any Lender (or, in the case of paragraph (iii) above, any prospective
new Lender) to comply with “know your customer” or similar identification procedures in
circumstances where the necessary information is not already available to it, each Obligor
shall promptly upon the request of the Agent or any Lender supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the Agent (for itself or
on behalf of any Lender) or any Lender (for itself or, in the case of the event described in
paragraph (iii) above, on behalf of any prospective new Lender) in order for the Agent, such
Lender or, in the case of the event described in paragraph (iii) above, any prospective new
Lender to carry out and be satisfied with the results of all necessary “know your customer”
or other similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Finance Documents.
	 
	(b)	 	Each Lender shall promptly upon the request of the Agent supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the Agent (for itself) in
order for the Agent to carry out and be satisfied with the results of all necessary “know your
customer” or other similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Finance Documents.
	 
	(c)	 	Following the giving of any notice pursuant to paragraph (a) of Clause 28.2 (Additional
Guarantors), if the accession of such Additional Guarantor obliges the

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	 	 	Agent or any Lender to comply with “know your customer” or similar identification procedures
in circumstances where the necessary information is not already available to it, the Company
shall promptly upon the request of the Agent or any Lender supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the Agent (for itself or
on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new
Lender) in order for the Agent or such Lender or any prospective new Lender to carry out and
be satisfied it has complied with all necessary “know your customer” or other similar checks
under all applicable laws and regulations pursuant to the accession of such Subsidiary to
this Agreement as an Additional Guarantor.
	 
	24.	 	FINANCIAL COVENANTS
	 
	24.1	 	Financial definitions

“Business Acquisition” means the acquisition from an entity which is not Pilot or one of its
Subsidiaries of a company or any shares or securities or a business or undertaking (or, in each
case, any interest in any of them) or the incorporation of a company, in each case to the extent it
would constitute a Permitted Acquisition.

“Capital Expenditure” means any expenditure or obligation in respect of expenditure which, in
accordance with the Accounting Principles, is treated as capital expenditure (and including the
capital element of any expenditure or obligation incurred in connection with a Finance Lease).

“Cashflow” means, in respect of any Relevant Period, net income of the Group for that Relevant
Period after:

	(a)	 	adding back the amount of depreciation and amortization (as defined in the Business Plan) for
that Relevant Period;
	 
	(b)	 	adding the amount of any increase in provisions, other non-cash debits and other non-cash
charges (which are not Current Assets or Current Liabilities) and deducting the amount of any
non-cash credits (which are not Current Assets or Current Liabilities) in each case to the
extent taken into account in establishing net income for that Relevant Period;
	 
	(c)	 	adding the amount of any decrease (and deducting the amount of any increase) in Working
Capital for that Relevant Period;
	 
	(d)	 	adding the amount of any decrease (and deducting the amount of any increase) in non trade
working capital (as defined in the Business Plan) for that Relevant Period;
	 
	(e)	 	deducting the amount of any Capital Expenditure actually made during that Relevant Period by
any member of the Group and the aggregate of any cash consideration paid for, or the cash
cost, of any Business Acquisitions;
	 
	(f)	 	adding (to the extent not already taken into account in determining net income) the amount of
any dividends or other profit distributions received in cash by any member of the Group during
that Relevant Period from any entity which is itself not a member of the Group and deducting
(to the extent not already deducted in determining net

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		 	income) the amount of any dividends paid in cash during that Relevant Period to minority
shareholders in members of the Group;
	 
	(g)	 	adding the amount of financing intercompany (as defined in the Business Plan) for that
Relevant Period;
	 
	(h)	 	adding the amount of the profit sharing and subsidies (as defined in the Business Plan) for
that Relevant Period,

and so that no amount shall be added (or deducted) more than once.

“Consolidated Shareholders’ Funds” means the Group’s share capital and reserves, regulated
provisions, retained earnings (positive or negative) and profits including minority shareholders’
interests being “Total des Capitaux Propres” in the Pilot Consolidated Financial Statements.

“Current Assets” means the aggregate (on a consolidated basis) of all inventory, work in progress,
trade and other receivables of each member of the Group including prepayments in relation to
operating items and sundry debtors (but excluding Cash and Cash Equivalent Investments) maturing
within twelve months from the date of computation but excluding amounts in respect of:

	(a)	 	receivables in relation to Tax;
	 
	(b)	 	Exceptional Items and other non-operating items;
	 
	(c)	 	insurance claims; and
	 
	(d)	 	any interest owing to any member of the Group.

“Current Liabilities” means the aggregate (on a consolidated basis) of all liabilities (including
trade creditors, accruals and provisions) of each member of the Group falling due within twelve
months from the date of computation but excluding amounts in respect of:

	(a)	 	liabilities for Financial Indebtedness and Finance Charges;
	 
	(b)	 	liabilities for Tax;
	 
	(c)	 	Exceptional Items and other non-operating items;
`
	 
	(d)	 	insurance claims; and
	 
	(e)	 	liabilities in relation to dividends declared but not paid by the Company or by a member of
the Group in favour of a person which is not a member of the Group.

“Debt Service” means, in respect of any Relevant Period, the aggregate of:

	(a)	 	Net Finance Charges for that Relevant Period;
	 
	(b)	 	the aggregate of all scheduled and mandatory repayments of Financial Indebtedness falling due
and any voluntary prepayments made during that Relevant Period but excluding:

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	 	(i)	 	any amounts falling due under any overdraft or revolving
facility (including, without limitation, the Revolving Facility, any Ancillary
Facility and the L/C Facility) and which were available for simultaneous
redrawing according to the terms of that facility;
	 
	 	(ii)	 	any mandatory prepayment made pursuant to Clause 11.2
(Disposal, Insurance, Issuance and Reimbursement Proceeds and Excess Cashflow);
	 
	 	(iii)	 	any such obligations owed to any member of the Group; and
	 
	 	(iv)	 	any prepayment of Financial Indebtedness existing on the
Closing Date which is required to be repaid under the terms of this Agreement;
and

	(c)	 	the amount of the capital element of any payments in respect of that Relevant Period payable
under any Finance Lease entered into by any member of the Group,

and so that no amount shall be included more than once.

“Debt Service Cover Ratio” means the ratio of Cashflow (after adding back Net Finance Charges) to
Debt Service in respect of any Relevant Period.

“EBIT” means, in respect of any Relevant Period, the consolidated operating profit of the Group
before taxation (excluding the results from discontinued operations):

	(a)	 	before deducting any interest, commission, fees, discounts, prepayment fees, premiums or
charges and other finance payments whether paid, payable or capitalised by any member of the
Group (calculated on a consolidated basis) in respect of that Relevant Period;
	 
	(b)	 	not including any accrued interest owing to any member of the Group;
	 
	(c)	 	before taking into account any Exceptional Items;
	 
	(d)	 	after deducting the amount of any profit (or adding back the amount of any loss) of any
member of the Group which is attributable to minority interests;
	 
	(e)	 	plus or minus the Group’s share of the profits or losses (after finance costs and tax) of
Non-Group Entities;
	 
	(f)	 	excluding the charge to profit represented by the expensing of stock options; and
	 
	(g)	 	after deducting the amount of any royalties and fees paid by the Group to Non-Group Entities
in respect of that Relevant Period,

in each case, to the extent added, deducted or taken into account, as the case may be, for the
purposes of determining operating profits of the Group before taxation.

“EBITDA” means, in respect of any Relevant Period, EBIT for that Relevant Period after adding back
any amount attributable to the amortisation or depreciation of assets of members of the Group.

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“Exceptional Items” means any exceptional, one off, non-recurring or extraordinary items.

“Excess Cashflow” means, for any period for which it is being calculated, Cashflow for that period
less (except to the extent already deducted in calculating Cashflow) Debt Service for that period.

“Finance Charges” means, for any Relevant Period, the aggregate amount of the accrued interest,
commission, fees, discounts, prepayment fees, premiums or charges and other finance payments in
respect of Financial Indebtedness whether paid or payable by any member of the Group (calculated on
a consolidated basis) in respect of that Relevant Period:

	(a)	 	including any upfront fees or costs;
	 
	(b)	 	including the interest (but not the capital) element of payments in respect of Finance
Leases;
	 
	(c)	 	including any commission, fees, discounts and other finance payments payable by (and
deducting any such amounts payable to) any member of the Group under any interest rate hedging
arrangement,

and so that no amount shall be added (or deducted) more than once.

“Gearing” means the ratio (expressed as a percentage) of Total Net Debt to Consolidated
Shareholders’ Funds.

“Leverage Ratio” means, in respect of any Relevant Period, the ratio of Total Net Debt on the last
day of that Relevant Period to EBITDA in respect of that Relevant Period.

“Net Finance Charges” means, for any Relevant Period, the Finance Charges for that Relevant Period
after deducting any interest payable in that Relevant Period to any member of the Group on any Cash
or Cash Equivalent Investment.

“Non-Group Entity” means any investment or entity (which is not itself a member of the Group
(including associates and Joint Ventures)) in which any member of the Group has an ownership
interest.

“Relevant Proceeds” means Reimbursement Proceeds, Disposal Proceeds, Issuance Proceeds or Insurance
Proceeds (each as defined in Clause 11.2 (Disposal, Insurance, Issuance and Reimbursement Proceeds
and Excess Cashflow)).

“Total Net Debt” means, at any time, the aggregate amount of all obligations of members of the
Group for or in respect of Financial Indebtedness (but excluding any Financial Indebtedness under
paragraphs (f) and (g) of the definition thereof) at that time but:

	(a)	 	excluding any such obligations to Pilot or any of its Subsidiaries;
	 
	(b)	 	including, in the case of Finance Leases only, their capitalised value; and
	 
	(c)	 	deducting the aggregate amount of Cash and Cash Equivalent Investments held by any member of
the Group at that time,

and so that no amount shall be included or excluded more than once.

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“Working Capital” means, on any date, Current Assets less Current Liabilities.

	24.2	 	Financial condition

The Company shall ensure that:

	(a)	 	Debt Service Cover: The Debt Service Cover Ratio in respect of any Relevant Period ending on
the dates specified in column 1 below shall not on such dates be less than the ratio set out
in column 2 below opposite that Relevant Period.

	 	 	 	 	 
	Column 1	 	Column 2
	Relevant Period	 	Ratio
	Relevant Period expiring 31 October 2009
	 	 	-0.1:1	 
	 
	Relevant Period expiring 30 April 2010
	 	 	-0.4:1	 
	 
	Relevant Period expiring 31 October 2010
	 	 	0.7:1	 
	 
	Relevant Period expiring 30 April 2011
	 	 	0.9:1	 
	 
	Relevant Period expiring 31 October 2011
	 	 	0.8:1	 
	 
	Relevant Period expiring 30 April 2012
	 	 	0.7:1	 
	 
	Relevant Period expiring 31 October 2012
	 	 	0.6:1	 
	 
	Thereafter
	 	 	0.8:1	 

	(b)	 	Leverage: The Leverage Ratio in respect of any Relevant Period ending on the dates specified
in column 1 below shall not exceed on such dates the ratio set out in column 2 below opposite
that Relevant Period.

	 	 	 	 	 
	Column 1	 	Column 2
	Relevant Period	 	Ratio
	Relevant Period expiring 31 October 2009
	 	 	4.7:1	 
	 
	Relevant Period expiring 30 April 2010
	 	 	4.0:1	 
	 
	Relevant Period expiring 31 October 2010
	 	 	3.5:1	 
	 
	Relevant Period expiring 30 April 2011
	 	 	2.5:1	 
	 
	Relevant Period expiring 31 October 2011
	 	 	2.3:1	 
	 
	Relevant Period expiring 30 April 2012
	 	 	1.6:1	 
	 
	Relevant Period expiring 31 October 2012
	 	 	1.4:1	 
	 
	Thereafter
	 	 	0.8:1	 

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	(c)	 	Gearing: Gearing in respect of any Relevant Period ending on the dates specified in column 1
below shall not exceed on such dates the ratio set out in column 2 below opposite that
Relevant Period.

	 	 	 	 	 
	Column 1	 	Column 2
	Relevant Period	 	Ratio
	Relevant Period expiring 31 October 2009
	 	 	520	%
	 
	Relevant Period expiring 30 April 2010
	 	 	325	%
	 
	Relevant Period expiring 31 October 2010
	 	 	305	%
	 
	Relevant Period expiring 30 April 2011
	 	 	195	%
	 
	Relevant Period expiring 31 October 2011
	 	 	135	%
	 
	Relevant Period expiring 30 April 2012
	 	 	85	%
	 
	Relevant Period expiring 31 October 2012
	 	 	75	%
	 
	Thereafter
	 	 	35	%

	24.3	 	Financial testing

The financial covenants set out in Clause 24.2 (Financial condition) shall be calculated in
accordance with the Accounting Principles and tested by reference to each of the Pilot Consolidated
Financial Statements delivered pursuant to paragraphs (a) and (c) of Clause 23.1 (Financial
statements) and/or each Compliance Certificate delivered pursuant to Clause 23.2 (Provision and
contents of Compliance Certificate).

	25.	 	GENERAL UNDERTAKINGS

The undertakings in this Clause 25 remain in force from the date of this Agreement for so long as
any amount is outstanding under the Finance Documents or any Commitment is in force.

Authorisations and compliance with laws

	25.1	 	Authorisations

Each Obligor shall (and shall procure (in accordance with article 1120 of the French Code civil
(promesse de porte-fort)) that each of its Subsidiaries will) promptly:

	(a)	 	obtain, comply with and do all that is necessary to maintain in full force and effect; and
	 
	(b)	 	supply certified copies to the Agent of,

any Authorisation required under any law or regulation of a Relevant Jurisdiction to:

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	 	(i)	 	enable it to perform its obligations under the Transaction Documents to which
it is a party;
	 
	 	(ii)	 	ensure the legality, validity, enforceability or admissibility in evidence of
any Transaction Document to which it is a party; and
	 
	 	(iii)	 	carry on its business where failure to do so has or is reasonably likely to
have a Material Adverse Effect.

	25.2	 	Compliance with laws

Each European Obligor shall (and each Obligor (other than QSH) shall procure (in accordance with
article 1120 of the French Code civil (promesse de porte-fort)) that each of its Subsidiaries will)
comply in all respects with all laws to which it may be subject, if failure so to comply has or is
reasonably likely to have a Material Adverse Effect.

	25.3	 	Environmental compliance

Each Credit Obligor shall (and each Obligor (other than QSH) shall procure (in accordance with
article 1120 of the French Code civil (promesse de porte-fort)) that each of its Subsidiaries which
is a member of the Group will):

	 	(i)	 	comply with all Environmental Law;
	 
	 	(ii)	 	obtain, maintain and ensure compliance with all requisite Environmental
Permits;
	 
	 	(iii)	 	implement procedures to monitor compliance with and to prevent liability under
any Environmental Law,

          where failure to do so has or is reasonably likely to have a Material Adverse Effect.

	25.4	 	Environmental claims

Each Credit Obligor shall (and each Obligor (other than QSH) shall procure (in accordance with
article 1120 of the French Code civil (promesse de porte-fort)) that each of its Subsidiaries which
is a member of the Group will), promptly upon becoming aware of the same, inform the Agent in
writing of:

	(a)	 	any Environmental Claim against any member of the Group which is current, pending or
threatened in writing; and
	 
	(b)	 	any facts or circumstances which are reasonably likely to result in any Environmental Claim
being commenced or threatened against any member of the Group,

where the claim, if determined against that member of the Group, has or is reasonably likely to
have a Material Adverse Effect.

	25.5	 	Taxation
	 
	(a)	 	Each European Obligor shall (and each Obligor (other than QSH) shall procure (in accordance
with article 1120 of the French Code civil (promesse de porte-fort)) that

108

 

	 	 	each of its Material Subsidiaries which is a member of the European Group will) pay and
discharge all Taxes imposed upon it or its assets within the time period allowed (other than
Taxes which do not exceed in the aggregate for all European Obligors and Material
Subsidiaries €1,000,000 at any time) without incurring penalties unless and only to the
extent that:

	 	(i)	 	such payment is being contested in good faith;
	 
	 	(ii)	 	adequate reserves are being maintained for those Taxes and the costs required
to contest them which have been disclosed in its latest financial statements delivered
to the Agent under Clause 23.1 (Financial statements) ; and
	 
	 	(iii)	 	such payment can be lawfully withheld and failure to pay those Taxes does not
have or is not reasonably likely to have a Material Adverse Effect.

	(b)	 	No member of the Group may change its residence for Tax purposes.

Restrictions on business focus

	25.6	 	Merger

	(a)	 	No Obligor (other than Quiksilver, Inc.) shall (and each Obligor shall procure (in accordance
with article 1120 of the French Code civil (promesse de porte-fort)) that each of its
Subsidiaries which is a member of the European Group will) enter into any amalgamation,
demerger, merger, consolidation or corporate reconstruction other than:

	 	(i)	 	the solvent liquidation or reorganisation of any member of the Group which is
not an Obligor and is not subject to a Transaction Security so long as any payments or
assets distributed as a result of such liquidation or reorganisation are distributed to
other members of the Group;
	 
	 	(ii)	 	any transactions contemplated by the Structure Memorandum; and
	 
	 	(iii)	 	any merger by QSH (other than with Biarritz Holdings or any Subsidiary
thereof) where (i) QSH is the surviving entity and (ii) no Transaction Security created
by or pursuant to any Transaction Security Document is adversely affected in any manner
whatsoever by such amalgamation, consolidation or merger.

	(b)	 	Quiksilver, Inc. shall not enter into any amalgamation, demerger, merger, consolidation or
corporate reconstruction other than a merger pursuant to which Quiksilver, Inc. will be the
surviving entity and which will not result in a Change of Control.
	 
	25.7	 	Change of business

No European Obligor shall (and each Obligor shall procure (in accordance with article 1120 of the
French Code civil (promesse de porte-fort)) that none of its Subsidiaries will) make a substantial
change to the general nature of its business or (with respect to the members of the Group) of the
business of the Group taken as a whole from that carried on by the Group at the date of this
Agreement.

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	25.8	 	Acquisitions
	 
	(a)	 	Except as permitted under paragraph (b) below, no Obligor (other than Quiksilver, Inc. and
QSH) shall (and each Obligor (other than QSH) shall procure (in accordance with article 1120
of the French Code civil (promesse de porte-fort)) that none of its Subsidiaries which is a
member of the European Group (other than QSH) will) acquire a company or any shares or
securities (or, in each case, any interest in any of them).
	 
	(b)	 	Paragraph (a) above does not apply to an acquisition of a company, of shares or securities
(or, in each case, any interest in any of them) which is a Permitted Acquisition.
	 
	25.9	 	Joint ventures

No Obligor (other than Quiksilver, Inc. and QSH) shall (and each Obligor (other than QSH) shall
procure (in accordance with article 1120 of the French Code civil (promesse de porte-fort)) that
none of its Subsidiaries which is a member of the European Group (other than QSH) will):

	 	(i)	 	enter into, invest in or acquire (or agree to acquire) any shares, stocks,
securities or other interest in any Joint Venture; or
	 
	 	(ii)	 	transfer any assets or lend to or guarantee or give an indemnity for or give
Security for the obligations of a Joint Venture or maintain the solvency of or provide
working capital to any Joint Venture (or agree to do any of the foregoing).

Restrictions on dealing with assets and Security

	25.10	 	Preservation of assets

Each Credit Obligor shall (and each Obligor (other than QSH) shall procure (in accordance with
article 1120 of the French Code civil (promesse de porte-fort)) that each of its Subsidiaries which
is a member of the Group will) maintain in good working order and condition (ordinary wear and tear
excepted) all of its assets necessary in the conduct of its business.

	25.11	 	Pari passu ranking

Each Obligor shall (and each Obligor (other than QSH) shall procure (in accordance with article
1120 of the French Code civil (promesse de porte-fort)) that each of its Subsidiaries will) ensure
that at all times any unsecured and unsubordinated claims of a Finance Party or Hedge Counterparty
against it under the Finance Documents rank at least pari passu with the claims of all its other
unsecured and unsubordinated creditors except those creditors whose claims are mandatorily
preferred by laws of general application to companies.

	25.12	 	Negative pledge

In this Clause 25.12, “Quasi-Security” means a transaction described in paragraph (b) below.

110

 

Except as permitted under paragraph (c) below:

	(a)	 	No Obligor (other than Quiksilver, Inc. and QSH) shall (and each Obligor (other than QSH)
shall procure (in accordance with article 1120 of the French Code civil (promesse de
porte-fort)) that none of its Subsidiaries which is a member of the European Group (other than
QSH) will) create or permit to subsist any Security over any of its assets.
	 
	(b)	 	No Obligor (other than Quiksilver, Inc. and QSH) shall (and each Obligor (other than QSH)
shall procure (in accordance with article 1120 of the French Code civil (promesse de
porte-fort)) that none of its Subsidiaries which is a member of the European Group (other than
QSH) will):

	 	(i)	 	sell, transfer or otherwise dispose of any of its assets on terms whereby they
are or may be leased to or re-acquired by an Obligor or any other member of the
European Group;
	 
	 	(ii)	 	sell, transfer or otherwise dispose of any of its receivables on recourse
terms;
	 
	 	(iii)	 	enter into any arrangement under which money or the benefit of a bank or other
account may be applied, set-off or made subject to a combination of accounts; or
	 
	 	(iv)	 	enter into any other preferential arrangement having a similar effect,

	 	 	in circumstances where the arrangement or transaction is entered into primarily as a method
of raising Financial Indebtedness or of financing the acquisition of an asset.
	 
	(c)	 	Paragraphs (a) and (b) above do not apply to any Security or (as the case may be)
Quasi-Security, which is Permitted Security.

	25.13	 	Disposals
	 
	(a)	 	Except as permitted under paragraph (b) below, no Obligor (other than Quiksilver, Inc. and
QSH) shall (and each Obligor (other than QSH) shall procure (in accordance with article 1120
of the French Code civil (promesse de porte-fort)) that none of its Subsidiaries which is a
member of the European Group (other than QSH) will) enter into a single transaction or a
series of transactions (whether related or not) and whether voluntary or involuntary to sell,
lease, transfer or otherwise dispose of any asset.
	 
	(b)	 	Paragraph (a) above does not apply to any sale, lease, transfer or other disposal which is a
Permitted Disposal.
	 
	25.14	 	Arm’s length basis

No Obligor (other than Quiksilver, Inc. and QSH) shall (and each Obligor (other than QSH) shall
procure (in accordance with article 1120 of the French Code civil (promesse de porte-fort)) that
none of its Subsidiaries which is a member of the European Group will) enter into any transaction
with any person except on arm’s length terms (or terms more favourable than arm’s length terms for
such member of the Group) and for full market value.

111

 

Restrictions on movement of cash — cash out

	25.15	 	Loans or credit
	 
	(a)	 	Except as permitted under paragraph (b) below, no Obligor (other than Quiksilver, Inc. and
QSH) shall (and each Obligor (other than QSH) shall procure (in accordance with article 1120
of the French Code civil (promesse de porte-fort)) that none of its Subsidiaries which is a
member of the European Group (other than QSH) will) be a creditor in respect of any Financial
Indebtedness.
	 
	(b)	 	Paragraph (a) above does not apply to a Permitted Loan.
	 
	25.16	 	No Guarantees or indemnities or off-balance sheet liabilities
	 
	(a)	 	Except as permitted under paragraph (b) below, no Obligor (other than Quiksilver, Inc. and
QSH) shall (and each Obligor (other than QSH) shall procure (in accordance with article 1120
of the French Code civil (promesse de porte-fort)) that none of its Subsidiaries which is a
member of the European Group (other than QSH) will) incur or allow to remain outstanding any
guarantee in respect of any obligation of any person or any off-balance sheet liabilities as
defined in the Accounting Principles.
	 
	(b)	 	Paragraph (a) does not apply to a guarantee or an off-balance sheet liability which is a
Permitted Guarantee.
	 
	25.17	 	Dividends and share redemption

No Obligor (other than Quiksilver, Inc. and QSH) shall (and each Obligor (other than QSH) shall
procure (in accordance with article 1120 of the French Code civil (promesse de porte-fort)) that
none of its Subsidiaries which is a TopCo Obligor (other than QSH) or a Credit Obligor will):

	 	(i)	 	declare, make or pay any dividend, charge, fee or other distribution (or
interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or
in kind) on or in respect of its share capital (or any class of its share capital);
	 
	 	(ii)	 	repay or distribute any dividend or share premium reserve;
	 
	 	(iii)	 	pay or allow any member of the Group to pay any management, advisory or other
fee (of any nature whatsoever) to or to the order of any of the direct or indirect
shareholders of the Company (including any TopCo Obligor and any Subsidiary of the
latter which is not a Subsidiary of the Company); or
	 
	 	(iv)	 	redeem, repurchase, defease, reduce, retire or repay any of its share capital
or resolve to do so,

provided that, notwithstanding the foregoing, each Credit Obligor and Quiksilver Europa shall be
authorized to declare, make or pay dividends or any other sums specifically authorized under the
Intercreditor Agreement.

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	25.18	 	Royalties

No Credit Obligor shall (and each TopCo Obligor shall procure (in accordance with article 1120 of
the French Civil code (promesse de porte-fort)) that no member of the Group will) pay any royalties
or any amount of any nature whatsoever to QSH, Biarritz Holdings or any other entity outside the
Group for the use by such member of the Group of any of the marks owned by QSH, Biarritz Holdings
or any other entity outside the Group unless specifically authorised under the Intercreditor
Agreements.

	25.19	 	Capital Expenditure
	 
	(a)	 	No TopCo Obligor (other than Quiksilver, Inc. and QSH) shall (and each TopCo Obligor (other
than QSH) shall procure (in accordance with article 1120 of the French Code civil (promesse de
porte-fort)) that none of its Subsidiaries which is a member of the European Group (other than
QSH) but not a member of the Group will) incur Capital Expenditure (including acquisitions of
businesses and undertakings).
	 
	(b)	 	No Credit Obligor shall (and each Obligor (other than QSH) shall procure (in accordance with
article 1120 of the French Code civil (promesse de porte-fort)) that none of its Subsidiaries
which is a member of the Group will), except as agreed by the Majority Lenders, incur Capital
Expenditure (including the acquisition of marks, businesses and undertakings) other than
Capital Expenditures in any Financial Year which do not exceed the amount set opposite such
Financial Year for the Group as a whole, as set out below (the “Capex Basket”),

	 	 	 	 	 
	 	 	Capital Expenditure
	Financial Year ending	 	(€)
	30 October 2009

	 	 	24,000,000	 
	 
	30 October 2010

	 	 	17,300,000	 
	 
	30 October 2011

	 	 	20,700,000	 
	 
	30 October 2012

	 	 	23,000,000	 
	 
	30 October 2013

	 	 	23,000,000	 

	 	 	provided that, upon written notification to the Agent from the Company up to 50% of
the Capex Basket unused in a given Financial Year (“N”) may be carried over for use in the
next Financial Year (N+1).

Restrictions on movement of cash — cash in

	25.20	 	Financial Indebtedness
	 
	(a)	 	No TopCo Obligor (other than Quiksilver Inc. and QSH) shall (and each TopCo Obligor shall
procure (in accordance with article 1120 of the French Code civil (promesse de porte-fort))
that none of its Subsidiaries which is a member of the European Group (other than QSH) but not
a member of the Group will) incur or allow

113

 

	 	 	to remain outstanding any Financial Indebtedness, except the Financial Indebtedness existing
on the date of this Agreement set out in Schedule 14 (Existing Financial Indebtedness).
	 
	(b)	 	No Credit Obligor shall (and each Obligor shall procure (in accordance with article 1120 of
the French Civil code (promesse de porte-fort)) that none of its Subsidiaries which is a
member of the Group will) incur or allow to remain outstanding any Financial Indebtedness,
except the Financial Indebtedness:

	 	(i)	 	(A) existing on the date of this Agreement and set out in Schedule 14 (Existing
Financial Indebtedness), (B) arising under the letters of credit set out in Schedule 15
(Existing Letters of Credit) until their incorporation as Existing Letters of Credit
hereunder and (C) arising under bank loans and overdraft facilities owed to the Lenders
for the period commencing on the date of this Agreement and ending on the Closing Date
(for the avoidance of doubt, such bank loans and overdraft facilities shall not be
permitted to remain outstanding after the Closing Date), provided that all such
Financial Indebtedness under bank loans and overdraft facilities shall not exceed the
amount of the NP Perimeter Indebtedness to be Refinanced and the principal amount of
the indebtedness under the Pilot Facility Agreement;
	 
	 	(ii)	 	arising under non-speculative Treasury Transactions;
	 
	 	(iii)	 	arising under a foreign exchange transaction for spot or forward delivery
entered into in connection with protection against fluctuation in currency rates where
that foreign exchange exposure arises in the ordinary course of trade, but not a
foreign exchange transaction for investment or speculative purposes;
	 
	 	(iv)	 	arising under any Finance Document;
	 
	 	(v)	 	arising under any Permitted Loan or Permitted Guarantee;
	 
	 	(vi)	 	arising under (i) the NP Factoring Agreements and (ii) any Working Capital
Financing;
	 
	 	(vii)	 	counter-indemnity obligation in respect of any guarantee, bond, standby or
documentary letter of credit or any other similar instrument issued by a bank or
financial institution in an aggregate amount not to exceed €10,000,000; and
	 
	 	(viii)	 	incurred in the ordinary course of business (i) by members of the Group registered in
South Africa in an aggregate amount not to exceed €3,000,000 (or its equivalent in
other currencies) at any time and (ii) by members of the Group registered in Russia in
an aggregate amount not to exceed €3,000,000 (or its equivalent in other currencies) at
any time, provided that in any case the Company shall notify to the
Agent the details of such Financial Indebtedness immediately upon incurrence such
Financial Indebtedness.

Miscellaneous

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	25.21	 	Miscellaneous
	 
	(a)	 	Each TopCo Obligor undertakes not to demand or request repayment of any indebtedness or any
Financial Indebtedness (whether or not due and payable) owed to it by any member of the Group
until the day after the Termination Date save as contemplated by the Subordination Agreement.
	 
	(b)	 	Each of QSH and Biarritz Holdings undertakes not to distribute to Quiksilver, Inc. (or any
Subsidiary thereof which is not a member of the European Group) (and Quiksilver, Inc.
undertakes not to (i) take any action for the purpose of making such distribution or (ii)
accept the benefit of such distribution) in any manner whatsoever (including through dividend
distributions or reimbursement of shareholder loans) the royalties or any other amount of any
nature whatsoever received by it from Biarritz Holdings and its Subsidiaries with respect to
the licences on the trademarks owned by it.
	 
	(c)	 	Each Obligor shall (and each Obligor shall procure (in accordance with article 1120 of the
French Code civil (promesse de porte-fort)) that each of its Subsidiaries will) take all
corporate actions required by law to ratify the execution by it of any of the Finance
Documents.
	 
	(d)	 	QSH, Biarritz Holdings and Na Pali shall (and Quiksilver, Inc. shall procure (in accordance
with article 1120 of the French Code civil (promesse de porte-fort)) that QSH, Biarritz
Holdings and Na Pali will) not rescind, amend, supplement or otherwise modify any of the
Licence Agreements without the prior consent of the Majority Lenders.
	 
	25.22	 	Insurance
	 
	(a)	 	Each Credit Obligor shall (and each Obligor (other than QSH) shall procure (in accordance
with article 1120 of the French Code civil (promesse de porte-fort)) that each of its
Subsidiaries which is a Material Subsidiary will) maintain insurances on and in relation to
its business and assets against those risks and to the extent as is usual for companies
carrying on the same or substantially similar business and pay all premiums relating thereto
on their due date.
	 
	(b)	 	All insurances must be with reputable independent insurance companies or underwriters.
	 
	25.23	 	Access

Each Credit Obligor shall (and each Obligor (other than QSH) shall procure (in accordance with
article 1120 of the French Code civil (promesse de porte-fort)) that each of its Subsidiaries which
is a member of the Group will, (not more than once in every Financial Year unless the Agent
reasonably suspects a Default is continuing or may occur) permit the Agent and/or the Security
Agent and/or accountants or other professional advisers and contractors of the Agent or Security
Agent free access at all reasonable times and on reasonable notice at the risk and cost of the
Credit Obligor to (a) the premises, assets, books, accounts and records of each member of the
European Group and (b) meet and discuss matters with Senior Management.

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	25.24	 	Intellectual Property
	 
	(a)	 	Each Obligor shall (and each Obligor shall procure (in accordance with article 1120 of the
French Code civil (promesse de porte-fort)) that each of its Subsidiaries which is a member of
the Group will):

	 	(i)	 	preserve and maintain the subsistence and validity of the Intellectual Property
necessary for the business of the Group;
	 
	 	(ii)	 	use reasonable endeavours to prevent any infringement in any material respect
of the Intellectual Property;
	 
	 	(iii)	 	make registrations and pay all registration fees and taxes necessary to
maintain the Intellectual Property in full force and effect and record its interest in
that Intellectual Property; and
	 
	 	(iv)	 	not use or permit the Intellectual Property to be used in a way or take any
step or omit to take any step in respect of that Intellectual Property which may
materially and adversely affect the existence or value of the Intellectual Property or
imperil the right of any member of the Group to use such property.

	(b)	 	Biarritz Holdings specifically undertakes not to dispose of and to maintain the subsistence
and validity of the Quiksilver and Roxy and related marks owned by it and to maintain or grant
to the members of the Group the licenses on these trademarks that are necessary for the
activity of the Group.
	 
	(c)	 	The Company shall deliver to the Agent at the same time as the delivery of the Business Plan
pursuant to Clause 23.4 (Business Plan) (and at such other times in the Company’s discretion)
a certified update of the list of the trademarks delivered by it pursuant to Part I of
Schedule 2 (Conditions Precedent) so that the representation set forth in paragraph (b) of
Clause 22.23 (Intellectual Property) is correct at such time.
	 
	25.25	 	Amendments
	 
	(a)	 	Except as permitted under paragraphs (b) and (c) below, no Obligor shall (and each Obligor
shall procure (in accordance with article 1120 of the French Code civil (promesse de
porte-fort)) that none of its Subsidiaries will) rescind, amend, supplement or otherwise
modify any of the Transaction Documents to which it is a party without the prior consent of
the Majority Lenders.
	 
	(b)	 	The Rossignol Documents may be amended in order to permit the direct payment by JPMorgan
Chase Bank N.A. to the Rossignol Vendors of the NP Cash Collateral as permitted pursuant to
the Subordination Agreement.
	 
	(c)	 	The Note may be terminated, and the Stock Purchase Agreement may be amended, in connection
with the set-off of the Note against liabilities of the Company pursuant to the Stock Purchase
Agreement.
	 
	25.26	 	Treasury Transactions

No Obligor (other than Quiksilver, Inc. and QSH) shall (and each Obligor (other than QSH) shall
procure (in accordance with article 1120 of the French Code civil (promesse de porte-

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fort)) that none of its Subsidiaries which is a member of the European Group will) enter into any
Treasury Transaction, other than:

	 	(i)	 	the hedging transactions documented by the Hedging Agreements;
	 
	 	(ii)	 	spot and forward delivery foreign exchange contracts entered into in the
ordinary course of business and not for speculative purposes;
	 
	 	(iii)	 	any Treasury Transaction entered into for the hedging of interest rate
exposures pursuant to the SG Financing Documents; and
	 
	 	(iv)	 	the Cash Pooling Agreement.

	25.27	 	Further assurance
	 
	(a)	 	Each Obligor shall (and each Obligor (other than QSH) shall procure (in accordance with
article 1120 of the French Code civil (promesse de porte-fort)) that each of its Subsidiaries
will) promptly do all such acts or execute all such documents (including assignments,
transfers, mortgages, charges, notices and instructions) as the Security Agent may reasonably
specify (and in such form as the Security Agent may reasonably require in favour of the
Security Agent or its nominee(s)):

	 	(i)	 	to perfect the Security created or intended to be created under or evidenced by
the Transaction Security Documents (which may include the execution of a mortgage,
charge, assignment or other Security over all or any of the assets which are, or are
intended to be, the subject of the Transaction Security) or for the exercise of any
rights, powers and remedies of the Security Agent or the Finance Parties provided by or
pursuant to the Finance Documents or by law;
	 
	 	(ii)	 	to confer on the Security Agent or confer on the Finance Parties Security over
any property and assets of that Obligor located in any jurisdiction equivalent or
similar to the Security intended to be conferred by or pursuant to the Transaction
Security Documents (including, without limitation, any new trademarks disclosed to the
Agent pursuant to Clause 25.24 (Intellectual Property); and/or
	 
	 	(iii)	 	to facilitate the realisation of the assets which are, or are intended to be,
the subject of the Transaction Security.

	(b)	 	Each Obligor shall (and each Obligor shall procure (in accordance with article 1120 of the
French Code civil (promesse de porte-fort)) that each of its Subsidiaries will) take all such
action as is available to it (including making all filings and registrations) as may be
necessary for the purpose of the creation, perfection, protection or maintenance of any
Security conferred or intended to be conferred on the Security Agent or the Finance Parties by
or pursuant to the Finance Documents.
	 
	25.28	 	Equity capital of Pilot

Each TopCo Obligor (other than Quiksilver, Inc. and QSH) and the Company shall (and each Obligor
(other than QSH) shall procure (in accordance with article 1120 of the French Code civil (promesse
de porte-fort)) that (i) each of its Subsidiaries which is a TopCo Obligor or (ii) the Company
will) take the actions set out in the Structure Memorandum so that no later

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than 1 November 2009 the Company’s equity capital (capitaux propres) is equal to at least half of
its share capital (capital social), and at all times thereafter remains equal to at least half of
its share capital (capital social) to the extent required by article L225-248 of the French Code de
commerce. As soon as possible and in any event no later than 1 November 2009, the Company shall
deliver to the Agent a copy of the resolution of the extraordinary general assembly of the Company
acknowledging that the Company’s equity capital (capitaux propres) is equal to at least half of its
share capital (capital social).

	25.29	 	Banks accounts

Each Credit Obligor shall (and each Obligor (other than QSH) shall procure (in accordance with
article 1120 of the French Code civil (promesse de porte-fort)) that each of its Subsidiaries which
is a Material Subsidiary will) maintain all of its bank accounts with a Lender or an Affiliate of a
Lender (other than (i) bank accounts maintained in connection with the NP Factoring Agreements or
any Working Capital Financing, and (ii) bank accounts maintained with Barclays Plc or its
Affiliates in the United Kingdom or local banks in South Africa, in each case in connection with
the Group’s operations in such jurisdictions).

	25.30	 	Post-signing conditions

The Company shall within 2 Business Days of the date of this Agreement deliver to the Agent (i)
evidence (in form and substance satisfactory to the Agent, acting reasonably) that the 2005 ABL
Agreement has been terminated, all Financial Indebtedness thereunder (other than letters of credit
issued thereunder and outstanding on the date hereof which letters of credit have been supported by
standby letters of credit agreement issued under the 2009 ABL Agreement) has been repaid in full
with the proceeds of the Rhône Financing and/or drawings under the 2009 ABL Agreement and the
related Encumbrances securing such Financial Indebtedness under the 2005 ABL Agreement have been
released, and (ii) copies of the fully executed Rhone Financing Documents and the 2009 ABL
Agreement.

	25.31	 	Post-closing conditions
	 
	(a)	 	The Company and/or Na Pali shall (I) within two months of the Closing Date (i) enter into
Hedging Agreements that cover a period of not less than the three year period following the
Closing Date and are in respect of not less than 70% of the aggregate Facilities (other than
the L/C Facility) from time to time (the entering into such Hedging Agreements being made in
accordance with the terms of the Hedging Letter) and (ii) promptly provide the Agent with
certified true copies of each such Hedging Agreements entered into and (II) maintain such
Hedging Agreements in accordance with the terms of the Hedging Letter.
	 
	(b)	 	Each Obligor must use, and must procure that any other member of the Group that is a
potential provider of Transaction Security uses, all reasonable endeavours lawfully available
to avoid or mitigate the constraints on the provision of Security provided for in the Agreed
Security Principles.
	 
	25.32	 	DC Shoes Disposal Proceeds

Each Obligor shall (and each Obligor shall procure (in accordance with article 1120 of the French
Code civil (promesse de porte-fort)) that each of its Subsidiaries will) take all such actions and
measures necessary to use any remaining DC Shoes Disposal Proceeds not

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applied towards repayment of the Facility A Loan in accordance with Clause 11.3 (Application of
mandatory prepayments) for the purpose of at the option of the Company, either (x) releasing the NP
Cash Collateral and substituting Quiksilver, Inc. in lieu of Na Pali thereunder or (y) increasing
the share capital of Quiksilver Europa by way of cash contribution (through a share capital
increase of Biarritz Holdings), releasing the NP Cash Collateral and substituting Quiksilver Europa
in lieu of Na Pali thereunder, in each case unless the NP Cash Collateral was released prior to the
receipt of DC Shoes Disposal Proceeds.

	25.33	 	Factoring

Each Borrower shall (and each Obligor (other than QSH) shall procure (in accordance with article
1120 of the French Code civil (promesse de porte-fort)) that each Borrower will) maintain the NP
Factoring Agreements (or replace them by a Working Capital Financing) and their ability to transfer
receivables to the factor under the relevant programme in such a manner that enables the Borrowers
to finance the working capital needs of the Group (including in case of clean down of the Revolving
Facility as provided under Clause 5.7 (Clean down)).

	25.34	 	Subordinated Debt
	 
	(a)	 	Except as permitted under paragraph (b) below, no Obligor shall (and each Obligor shall
procure (in accordance with article 1120 of the French Code civil (promesse de porte-fort))
that none of its Subsidiaries will):

	 	(i)	 	repay or prepay any principal amount (or capitalised interest) outstanding
under the Subordinated Debt;
	 
	 	(ii)	 	pay any interest or any other amounts payable in connection with the
Subordinated Debt; or
	 
	 	(iii)	 	purchase, redeem, defease or discharge any amount outstanding with respect to
Subordinated Debt.

	(b)	 	Paragraph (a) does not apply to a payment, repayment, prepayment, purchase, redemption,
defeasance or discharge which is permitted under the Subordination Agreement.
	 
	26.	 	EVENTS OF DEFAULT

Each of the events or circumstances set out in this Clause 26 is an Event of Default (save for
Clause 26.21 (Acceleration).

	26.1	 	Non-payment

An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the
place at and in the currency in which it is expressed to be payable unless:

	(a)	 	its failure to pay is caused by:

	 	(i)	 	administrative or technical error; or

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	 	(ii)	 	a Disruption Event; and

	(b)	 	payment is made within three Business Days of its due date.
	 
	26.2	 	Financial covenants and other obligations
	 
	(a)	 	Any requirement of Clause 24 (Financial Covenants) is not satisfied or an Obligor does not
comply with the provisions of Clause 23 (Information Undertakings) or Clause 25.30
(Post-signing conditions).
	 
	(b)	 	An Obligor does not comply with any provision of any Transaction Security Document.
	 
	26.3	 	Other obligations
	 
	(a)	 	An Obligor does not comply with any provision of the Finance Documents (other than those
referred to in Clause 26.1 (Non-payment), Clause 26.2 (Financial covenants and other
obligations)).
	 
	(b)	 	No Event of Default under paragraph (a) above will occur if the failure to comply is capable
of remedy and is remedied within 15 Business Days of the earlier of (i) the Agent giving
notice to the Company or the relevant Obligor and (ii) the Company or an Obligor becoming
aware of the failure to comply.
	 
	26.4	 	Misrepresentation

Any representation or statement made or deemed to be made by an Obligor in the Finance Documents or
any other document delivered by or on behalf of any Obligor under or in connection with any Finance
Document is or proves to have been incorrect or misleading when made or deemed to be made, unless
the failure to comply is capable of remedy and is remedied within 15 Business Days of the earlier
of (i) the Agent giving written notice to the Company or (ii) the relevant Obligor becoming aware
of the misrepresentation.

	26.5	 	Cross default
	 
	(a)	 	Financial Indebtedness

	 	(i)	 	Any Financial Indebtedness (including for the avoidance of doubt any Financial
Indebtedness under the 2009 ABL Agreement, the Rhône Financing Documents, the Senior
Notes or the SG Bonds) of any TopCo Obligor, Quiksilver Americas, Inc. (including,
without limitation, with respect to the Financial Indebtedness under the 2009 ABL
Agreement) or any member of the Group is not paid when due nor within any originally
applicable grace period, provided that in the case of any Financial
Indebtedness under the Rhône Financing Documents, such Financial Indebtedness has not
been paid within the seven-day period following its due date or the last day of any
originally applicable grace period (as the case may be).
	 
	 	(ii)	 	Any Financial Indebtedness (including for the avoidance of doubt any Financial
Indebtedness under the 2009 ABL Agreement, the Rhône Financing Documents, the Senior
Notes or the SG Bonds) of any TopCo Obligor, Quiksilver Americas, Inc. (including,
without limitation, with respect to the

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	 	 	 	Financial Indebtedness under the 2009 ABL Agreement) or any member of the Group is
declared to be or otherwise becomes due and payable prior to its specified maturity
as a result of an event of default (however described).
	 
	 	(iii)	 	Any commitment for any Financial Indebtedness (including for the avoidance of
doubt any Financial Indebtedness under the 2009 ABL Agreement, the Rhône Financing
Documents, the Senior Notes or the SG Bonds) of any TopCo Obligor, Quiksilver Americas,
Inc. (including, without limitation, with respect to the Financial Indebtedness under
the 2009 ABL Agreement) or any member of the Group is cancelled or suspended by a
creditor of any TopCo Obligor or any member of the Group as a result of an event of
default (however described).
	 
	 	(iv)	 	Any creditor of any TopCo Obligor or any member of the Group becomes entitled
to declare any Financial Indebtedness (including for the avoidance of doubt any
Financial Indebtedness under the 2009 ABL Agreement, the Rhône Financing Documents, the
Senior Notes or the SG Bonds) of any TopCo Obligor, Quiksilver Americas, Inc.
(including, without limitation, with respect to the Financial Indebtedness under the
2009 ABL Agreement) or of any member of the Group due and payable prior to its
specified maturity as a result of an event of default (however described),
provided that in the case of events of default (however described)
(other than payment defaults), such events of default have remained unremedied and not
waived for a period of 30 days following the relevant date on which they occurred.
	 
	 	(v)	 	With respect to (x) the Financial Indebtedness of the members of the Group, no
Event of Default will occur under this Clause 26.5 if the aggregate amount of Financial
Indebtedness of the members of the Group or commitment for Financial Indebtedness
falling within paragraphs (i) to (iv) above is less than €500,000 (or its equivalent in
any other currency or currencies) and (y) the Financial Indebtedness of Quiksilver,
Inc. and Quiksilver Americas, Inc., no Event of Default will occur under this Clause
26.5 if the aggregate amount of Financial Indebtedness of Quiksilver, Inc. or
commitment for Financial Indebtedness falling within paragraphs (i) to (iv) above is
less than €5,000,000 (or its equivalent in any other currency or currencies).

	(b)	 	Other Obligations

	 	(i)	 	Any default (other than in connection with Financial Indebtedness) of any TopCo
Obligor or any member of the Group resulting in a payment obligation has occurred and
has not been remedied within any originally applicable grace period, unless such
payment obligation is being contested in good faith and by appropriate proceedings for
which adequate reserves have been established in accordance with the Accounting
Principles and such TopCo Obligor or member of the Group has reserved sufficient cash
to satisfy such payment obligation.
	 
	 	(ii)	 	No Event of Default will occur under paragraph (b)(i) above (A) if the
non-payment by the members of the Group within any originally applicable grace period
results from any commercial arrangement between the relevant members of the Group and
their creditors relating to commercial receivables

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	 	 	 	the purpose of which is to extend the originally agreed payment term by an
additional time period of no more than 4 months, provided that the
aggregate amount of the commercial receivables benefiting from such payment
extension period shall not exceed €5,000,000 (or its equivalent in any other
currency or currencies) at any time, (B) if the aggregate amount of payment
obligations of the TopCo Obligors (other than Quiksilver, Inc.) and the members of
the Group falling within paragraph (b)(i) above is less than €5,000,000 (or its
equivalent in any other currency or currencies) or (C) if the aggregate amount of
payment obligations of Quiksilver, Inc. falling within paragraph (b)(i) above is
less than €5,000,000 (or its equivalent in any other currency or currencies).
	 
	 	(iii)	 	The NP Factoring Agreements (or any new factoring agreement in replacement
thereof) is terminated (and not simultaneously replaced by a Working Capital Financing)
or GE Factofrance (or any new factor in replacement thereof) notifies the termination
of the NP Factoring Agreements (or any new factoring agreement in replacement thereof).

	26.6	 	Insolvency
	 
	(a)	 	A TopCo Obligor (other than Quiksilver, Inc.) or a member of the Group is unable or admits
inability to pay its debts as they fall due or is deemed to or declared to be unable to pay
its debts under applicable law, suspends or threatens (in writing) to suspend making payments
on any of its debts or, by reason of actual or anticipated financial difficulties, commences
negotiations with one or more of its creditors (other than the Lenders generally with respect
to the Facilities) with a view to rescheduling any of its indebtedness other than with respect
to the commercial receivables referred to in paragraph (b)(ii) of Clause 26.5 (Cross default).
	 
	(b)	 	Any TopCo Obligor (other than Quiksilver, Inc.) or any member of the Group which conducts
business in France is in a state of “cessation des paiements”, or any TopCo Obligor or any
member of the Group becomes insolvent for the purpose of any insolvency law.
	 
	(c)	 	A moratorium is declared in respect of any indebtedness of any TopCo Obligor (other than
Quiksilver, Inc.) or any member of the Group. If a moratorium occurs, the ending of the
moratorium will not remedy any Event of Default caused by that moratorium.
	 
	26.7	 	Insolvency of TopCo Obligors
	 
	(a)	 	Quiksilver, Inc. institutes or consents to the institution of any proceeding under any Debtor
Relief Law, or makes an assignment for the benefit of creditors;
	 
	(b)	 	Quiksilver, Inc. applies for or consents to the appointment of any receiver, trustee,
custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any
material part of its property;
	 
	(c)	 	any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer
is otherwise appointed in respect of Quiksilver, Inc. and the appointment continues
undischarged, undismissed or unstayed for sixty (60) calendar days;

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	(d)	 	any proceeding under any Debtor Relief Law relating to Quiksilver, Inc. or to all or any
material part of its property is instituted without the consent of Quiksilver, Inc. and
continues undismissed or unstayed for sixty (60) calendar days, or an order for relief is
entered in any such proceeding;
	 
	(e)	 	Any actions are taken by any TopCo Obligor or by any third party for the declaration of
insolvency (“concurso”) of any TopCo Obligor.
	 
	(f)	 	Any action is taken by any TopCo Obilgor to obtain the protection in any pre-insolvency
scenarios granted by article 5.3 of Spanish Insolvency Law as drafted by RDL 3/2009.
	 
	26.8	 	Insolvency proceedings
	 
	(a)	 	Any corporate action (other than the corporate actions to be taken in connection with the
solvent liquidation of Tyax), legal proceedings or other procedure or step is taken in
relation to:

	 	(i)	 	the suspension of payments, a moratorium of any indebtedness, winding-up,
dissolution, administration or reorganisation (by way of voluntary arrangement, scheme
of arrangement or otherwise) of any TopCo Obligor or any member of the Group;
	 
	 	(ii)	 	a composition, compromise, assignment or arrangement with any creditor of any
TopCo Obligor or any member of the Group (other than any commercial arrangement of any
member of the Group referred to in paragraph (b)(ii) of Clause 26.5 (Cross default)
(subject to the conditions provided therein).
	 
	 	(iii)	 	the appointment of a liquidator, receiver, administrative receiver,
administrator, compulsory manager or other similar officer in respect of any TopCo
Obligor or any member of the Group or any of its assets; or
	 
	 	(iv)	 	enforcement of any Security over any assets of any TopCo Obligor or any member
of the Group,

		 	or any analogous procedure or step is taken in any jurisdiction.
	 
	(b)	 	Any TopCo Obligor or any member of the Group commences proceedings for “conciliation” in
accordance with articles L.611-4 to L.611-15 of the French Code de commerce.
	 
	(c)	 	A judgment for “sauvegarde”, “redressement judiciaire” or “liquidation judiciaire” is entered
in relation to the Company or any member of the Group under articles L.620-1 to L.670-8 of the
French Code de commerce.
	 
	26.9	 	Creditors’ process

Any of the enforcement proceedings provided for in French law n° 91-650 of 9 July 1991, or any
expropriation, attachment, sequestration, distress or execution or any analogous process in any
jurisdiction affects any asset or assets of (i) a TopCo Obligor (other than Quiksilver, Inc. and
QSH) or any member of the Group having an aggregate value of €5,000,000 or (ii)

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Quiksilver, Inc. and QSH having an aggregate value of €5,000,000, and in each case is not
discharged within 15 days.

	26.10	 	Unlawfulness and invalidity
	 
	(a)	 	It is or becomes unlawful for a TopCo Obligor or any member of the Group to perform any of
its obligations under the Finance Documents or any Transaction Security created or expressed
to be created or evidenced by the Transaction Security Documents ceases to be effective or any
subordination created or security ranking agreed under the Intercreditor Agreements is or
becomes unlawful.
	 
	(b)	 	Any obligation or obligations of any TopCo Obligor or any member of the Group under any
Finance Documents are not (subject to the Legal Reservations) or cease to be legal, valid,
binding or enforceable and the cessation individually or cumulatively materially and adversely
affects the interests of the Lenders under the Finance Documents.
	 
	(c)	 	Any Finance Document ceases to be in full force and effect or any Transaction Security or any
subordination created or security ranking agreed under the Intercreditor Agreements ceases to
be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than
a Finance Party) to be ineffective.
	 
	26.11	 	Intercreditor Agreements
	 
	(a)	 	Any party to the Intercreditor Agreements (other than a Finance Party) fails to comply with
the provisions of, or does not perform its obligations under, the Intercreditor Agreements; or
	 
	(b)	 	a representation or warranty given by that party in the Intercreditor Agreements is incorrect
in any material respect,

and, if the non-compliance or circumstances giving rise to the misrepresentation are capable of
remedy, it is not remedied within 10 days of the earlier of the Agent giving notice to that party
or that party becoming aware of the non-compliance or misrepresentation.

	26.12	 	Cessation of business

Any TopCo Obligor or any member of the Group which is a Material Subsidiary suspends or ceases to
carry on (or threatens to suspend or cease to carry on) all or a material part of its business
except as a result of a transaction permitted by this Agreement.

	26.13	 	Audit qualification

The Auditors of the Group qualify (including through reservations of any nature whatsoever) the
annual consolidated financial statements of the Company reviewed by the Auditors in accordance with
the “agreed upon procedure” defined in the Deloitte Letter.

	26.14	 	Expropriation

The authority or ability of any member of the Group to conduct its business is limited or wholly or
substantially curtailed by any seizure, expropriation, nationalisation, intervention,

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restriction or other action by or on behalf of any governmental, regulatory or other authority or
other person in relation to any member of the Group or any of its assets.

	26.15	 	Litigation
	 
	(a)	 	Any litigation, arbitration, administrative, governmental, regulatory or other
investigations, proceedings or disputes are commenced against any TopCo Obligor (other than
Quiksilver, Inc.) or a member of the Group where the amount at stake exceeds €10,000,000
and/or where the amount at stake when aggregated with the amount at stake in respect of any
other litigation, arbitration, administrative, governmental, regulatory or other
investigations, proceedings or disputes which have been commenced since the date of this
Agreement against any TopCo Obligor (other than Quiksilver, Inc.) or any member of the Group
exceeds €15,000,000, unless such litigation, arbitration, administrative, governmental,
regulatory or other investigations, proceedings or disputes are being contested in good faith
and by appropriate proceedings for which adequate reserves have been established in accordance
with the Accounting Principles and such TopCo Obligor or Group member has reserved sufficient
cash to satisfy any related judgment.
	 
	(b)	 	Any TopCo Obligor or any member of the Group fails to comply with any final judgment or final
court order made against it for an amount (i) in the case of the TopCo Obligors or the members
of the Group (other than Quiksilver, Inc.) (when aggregated with the aggregate amount of all
other final judgments and final court orders made against the TopCo Obligors (other than
Quiksilver, Inc.) and the member of the Group and not complied with by the latters) in excess
of €2,500,000 (or its equivalent in any other currency or currencies) or (ii) in the case of
Quiksilver, Inc. (when aggregated with the aggregate amount of all other final judgments and
final court orders made against it and not complied with) in excess of €10,000,000.

	26.16	 	Material adverse change

Any event or circumstance occurs which the Majority Lenders reasonably believe has or is reasonably
likely to have a Material Adverse Effect.

	26.17	 	Cessation of tax consolidation of the Group

The Group ceases to be consolidated for French Tax purposes.

	26.18	 	Carried forward tax losses

Pilot loses the ability to use a portion of the Carried Forward Tax Losses due to a change of
activity or a final reassessment by the French tax authorities, and in the case of tax
reassessments such reassessment shows tax loss carryforwards at 31 October 2008 of less than the
Carried Forward Tax Losses.

	26.19	 	Equity capital of Pilot

The Company’s equity capital (capitaux propres) (i) has not been restored to at least half of its
share capital (capital social) on or prior to 31 October 2009 as contemplated in the Structure
Memorandum in order to comply with article L.225-248 of the French Code de commerce or (ii) falls
below half of its share capital (capital social) at any time after 31

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October 2009 and is not restored in accordance with article L.225-248 of the French Code de
commerce.

	26.20	 	NP Cash Collateral Release

All of the cash subject to the NP Cash Collateral shall not have been released upon the earlier of
(i) the payment of any Rossignol Liabilities and (ii) the payment of any Rossignol Liabilities
Royalties.

	26.21	 	Acceleration
	 
	(a)	 	On and at any time after the occurrence of an Event of Default which is continuing the Agent
may without mise en demeure or any other judicial or extra judicial step, and shall if so
directed by the Majority Lenders, by notice to the Company but subject to the mandatory
provisions of articles L.620-1 to L.670-8 of the French Code de commerce (and provided that
such notice shall not be required to be given to Quiksilver, Inc. upon the occurrence of an
Event of Default under Clause 26.7 (Insolvency of TopCo Obligors)):

	 	(i)	 	cancel the Total Commitments and/or Ancillary Commitments at which time they
shall immediately be cancelled;
	 
	 	(ii)	 	declare that all or part of the Utilisations, together with accrued interest,
and all other amounts accrued or outstanding under the Finance Documents be immediately
due and payable, at which time they shall become immediately due and payable;
	 
	 	(iii)	 	declare that cash cover in respect of each Letter of Credit is immediately due
and payable at which time it shall become immediately due and payable;
	 
	 	(iv)	 	declare all or any part of the amounts (or cash cover in relation to those
amounts) outstanding under the Ancillary Facilities to be immediately due and payable,
at which time they shall become immediately due and payable; and/or
	 
	 	(v)	 	exercise or direct the Security Agent to exercise any or all of its rights,
remedies, powers or discretions under the Finance Documents.

	(b)	 	During the Availability Period with respect to the Term Facilities, none of the Finance
Parties shall be entitled to:

	 	(i)	 	cancel any of its Commitments to the extent to do so would prevent or limit the
making of a Utilisation;
	 
	 	(ii)	 	rescind, terminate, cancel, accelerate or cause repayment or prepayment of any
amounts outstanding under this Agreement or any of the Facilities or exercise any
similar right or remedy or make or enforce any claim under the Finance Documents it may
have to the extent to do so would prevent or limit the making of a Utilisation;
	 
	 	(iii)	 	refuse to participate in the making of a Utilisation; or

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	 	(iv)	 	exercise any right of set-off or counterclaim in respect of a Utilisation to
the extent to do so would prevent or limit the making of a Utilisation,

	 	 	in each case, solely on the basis of a Default arising under Clause 26.16 (Material adverse
change) or as a result of any of the representations and warranties set forth in paragraphs
(d) and (g) of Clause 22.13 (Financial Statements) not being true or correct; provided that,
immediately after the Closing Date all such rights, remedies and entitlements shall be
available to the Finance Parties notwithstanding that they may not have been used or been
available for use on the Closing Date.

SECTION 8 — CHANGES TO PARTIES

	27.	 	CHANGES TO THE LENDERS
	 
	27.1	 	Assignments and transfers by the Lenders
	 
	(a)	 	Subject to this Clause 27, a Lender (the “Existing Lender”) may:

	 	(i)	 	assign any of its rights; or
	 
	 	(ii)	 	transfer any of its rights (including such as relate to that Lender’s
participation in each Loan) and obligations,

	 	 	under any Finance Document to another bank or financial institution or to a trust, fund
(including CDOs and CLOs) or other entity which is regularly engaged in or established for
the purpose of making, purchasing or investing in loans, securities or other financial
assets (the “New Lender”).
	 
	(b)	 	The consent of the Finance Parties is hereby given to a transfer by an Existing Lender to a
New Lender, provided that any transfer or assignment of rights and/or rights
and obligations with respect to the L/C Facility shall be subject to the prior consent of the
Issuing Banks as to the identity of the New Lender.
	 
	27.2	 	Conditions of assignment or transfer
	 
	(a)	 	The consent of the Company is required for an assignment or transfer by an Existing Lender,
provided that no such consent shall be required if the assignment or transfer is:

	 	(i)	 	to another Lender or an Affiliate (which shall include, for the purposes of
this Clause 27 and for the avoidance of doubt, in the case of Natixis, any company of
the Groupe Caisses d’Epargne or the Groupe Banques Populaires) of a Lender, or
	 
	 	(ii)	 	made at a time when a Default is continuing.

	(b)	 	The consent of the Company to an assignment or transfer must not be unreasonably withheld or
delayed. The Company will be deemed to have given its consent five Business Days after the
Existing Lender has requested it unless consent is expressly refused in writing by the Company
within that time.

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	(c)	 	The consent of the Company to an assignment or transfer must not be withheld solely because
the assignment or transfer may result in an increase to the Mandatory Cost.
	 
	(d)	 	An assignment will only be effective as among the Finance Parties on:

	 	(i)	 	receipt by the Agent of written confirmation from the New Lender (in form and
substance satisfactory to the Agent) that the New Lender has become entitled to the
same rights and will assume the same obligations to the other Finance Parties as it
would have been under if it was an Original Lender;
	 
	 	(ii)	 	the New Lender entering into the documentation required for it to accede as a
party to the Security Sharing Agreement; and
	 
	 	(iii)	 	performance by the Agent of all necessary “know your customer” or other
similar checks under all applicable laws and regulations in relation to such assignment
to a New Lender, the completion of which the Agent shall promptly notify to the
Existing Lender and the New Lender.

	(e)	 	A transfer will only be effective if the procedure set out in Clause 27.5 (Procedure for
transfer) is complied with.
	 
	(f)	 	If:

	 	(i)	 	a Lender assigns or transfers any of its rights or obligations under the
Finance Documents or changes its Facility Office; and
	 
	 	(ii)	 	as a result of circumstances existing at the date the assignment, transfer or
change occurs, an Obligor would be obliged to make a payment to the New Lender or
Lender acting through its new Facility Office under Clause 17 (Tax Gross Up and
Indemnities) or Clause 18 (Increased Costs),

	 	 	then the New Lender or Lender acting through its new Facility Office is only entitled to
receive payment under those Clauses to the same extent as the Existing Lender or Lender
acting through its previous Facility Office would have been if the assignment, transfer or
change had not occurred.
	 
	(g)	 	The Facilities may be assigned or transferred in amounts of not less than €5,000,000 and
increments of €1,000,000 in excess thereof (or if less, the remaining amount held by such
Lender).
	 
	27.3	 	Assignment or transfer fee

The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the
Agent (for its own account) a fee of €2,500.

	27.4	 	Limitation of responsibility of Existing Lenders
	 
	(a)	 	Unless expressly agreed to the contrary, an Existing Lender makes no representation or
warranty and assumes no responsibility to a New Lender for:

	 	(i)	 	the legality, validity, effectiveness, adequacy or enforceability of the
Transaction Documents, the Transaction Security or any other documents;

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	 	(ii)	 	the financial condition of any Obligor;
	 
	 	(iii)	 	the performance and observance by any Obligor or any other member of the Group
of its obligations under the Transaction Documents or any other documents; or
	 
	 	(iv)	 	the accuracy of any statements (whether written or oral) made in or in
connection with any Transaction Document or any other document,

	 	 	and any representations or warranties implied by law are excluded.
	 
	(b)	 	Each New Lender confirms to the Existing Lender, the other Finance Parties and the Secured
Parties that it:

	 	(i)	 	has made (and shall continue to make) its own independent investigation and
assessment of the financial condition and affairs of each Obligor and its related
entities in connection with its participation in this Agreement and has not relied
exclusively on any information provided to it by the Existing Lender or any other
Finance Party in connection with any Transaction Document or the Transaction Security;
and
	 
	 	(ii)	 	will continue to make its own independent appraisal of the creditworthiness of
each Obligor and its related entities whilst any amount is or may be outstanding under
the Finance Documents or any Commitment is in force.

	(c)	 	Nothing in any Finance Document obliges an Existing Lender to:

	 	(i)	 	accept a re-transfer or re-assignment from a New Lender of any of the rights
and obligations assigned or transferred under this Clause 27; or
	 
	 	(ii)	 	support any losses directly or indirectly incurred by the New Lender by reason
of the non-performance by any Obligor of its obligations under the Transaction
Documents or otherwise.

	27.5	 	Procedure for transfer
	 
	(a)	 	Subject to the conditions set out in Clause 27.2 (Conditions of assignment or transfer) a
transfer is effected in accordance with paragraph (c) below when the Agent executes an
otherwise duly completed Transfer Agreement delivered to it by the Existing Lender and the New
Lender at least 5 Business Days prior to the proposed Transfer Date. The Agent shall, subject
to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly
completed Transfer Agreement appearing on its face to comply with the terms of this Agreement
and delivered in accordance with the terms of this Agreement, execute that Transfer Agreement.
	 
	(b)	 	The Agent shall only be obliged to execute a Transfer Agreement delivered to it by the
Existing Lender and the New Lender once it is satisfied it has complied with all necessary
“know your customer” or other similar checks under all applicable laws and regulations in
relation to the transfer to such New Lender.

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	(c)	 	By virtue of the execution of a Transfer Agreement, as from the Transfer Date:

	 	(i)	 	to the extent that in the Transfer Agreement the Existing Lender seeks to
transfer its rights and obligations under the Finance Documents and in respect of the
Transaction Security, the Existing Lender shall be discharged to the extent provided
for in the Transfer Agreement from further obligations towards each of the Obligors and
the other Finance Parties under the Finance Documents;
	 
	 	(ii)	 	the rights and obligations of the Existing Lender with respect to the Obligors
shall be transferred to the New Lender, to the extent provided for in the Transfer
Agreement;
	 
	 	(iii)	 	the Agent, the Arrangers, the Security Agent, the New Lender, the other
Lenders, the Issuing Banks and any relevant Ancillary Lender shall have the same rights
and obligations between themselves and in respect of the Transaction Security as they
would have had had the New Lender been an Original Lender with the rights and/or
obligations to which it is entitled and subject as a result of the transfer and to that
extent the Agent, the Arrangers, the Security Agent, the Issuing Banks and any relevant
Ancillary Lender and the Existing Lender shall each be released from further
obligations to each other under the Finance Documents; and
	 
	 	(iv)	 	the New Lender shall become a Party as a “Lender”.

	27.6	 	Copy of Transfer Agreement to Company

The Agent shall, as soon as reasonably practicable after it has executed a Transfer Agreement, send
to the Company a copy of that Transfer Agreement.

	27.7	 	Security on Lenders’ rights

Without prejudice to the rights granted to the lenders pursuant to this Clause 27, each Lender may,
at any time, without consulting with or obtaining any authorization from an Obligor, pledge, grant
a Security over or assign as a security in any manner whatsoever (by way of assignment as security
or by any other mean) all or part of its rights pursuant to any Finance Document in order to secure
the obligations of such Lender, including:

	(a)	 	any pledge, assignment as security or other Security granted in order to guarantee
obligations vis a vis a central bank; and
	 
	(b)	 	when the Lender is an instrument vehicle, any pledge, assignment as security or other
Security granted to any holder (or trustee or agent of holders) of bonds or other capital
market instruments issued by such Lender in order to secure such bonds or capital market
instruments.

Provided that such pledge, assignment security or other Security cannot have the effect to:

	 	(i)	 	release a Lender from its obligations pursuant to the Finance Documents or make
the beneficiary of such pledge, assignment as security or Security party to any Finance
Document; or

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	 	(ii)	 	oblige any Obligor to make any payment or grant to any person broader rights
than the payments or rights to which the relevant Lender is entitled to pursuant to the
Finance Documents.

	28.	 	CHANGES TO THE OBLIGORS
	 
	28.1	 	Assignment and transfers by Obligors

No Obligor or any other member of the Group may assign any of its rights or transfer any of its
rights or obligations under the Finance Documents.

	28.2	 	Additional Guarantors
	 
	(a)	 	On or prior to the Closing Date, the Company shall procure that each of Biarritz Holdings,
Quiksilver Europa and QSH shall have acceded to this Agreement and the Intercreditor
Agreements as Additional Guarantors and delivered to the Agent the Guarantees and Security
Documents listed in Part V of Schedule 2).
	 
	(b)	 	Subject to the Agreed Security Principles and to the extent legally possible, the Company
shall procure that any member of the Group which is a Material Subsidiary and which is not an
Obligor shall within 10 days following a written request from the Agent and in any event
promptly upon such member of the Group becoming a Material Subsidiary pursuant to paragraph
(b)(iii) of the definition thereof, become an Additional Guarantor and grant Security as the
Agent may require and shall accede to the Intercreditor Agreements.
	 
	(c)	 	A member of the Group shall become an Additional Guarantor if:

	 	(i)	 	the Company and the proposed Additional Guarantor deliver to the Agent a duly
completed and executed Accession Letter; and
	 
	 	(ii)	 	the Agent has received all of the documents and other evidence listed in Part
VI of Schedule 2 (Conditions Precedent) in relation to that Additional Guarantor, each
in form and substance reasonably satisfactory to the Agent.

	(d)	 	The Agent shall notify the Company and the Lenders promptly upon being reasonably satisfied
that it has received (in form and substance satisfactory to it) all the documents and other
evidence listed in Part VI of Schedule 2 (Conditions Precedent).
	 
	28.3	 	Repetition of Representations

Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary that the
representations and warranties referred to in paragraphs (a) (solely in the case of Biarritz
Holdings, Quiksilver Europa and QSH) and (b) of Clause 22.34 (Times when representations made) are
true and correct in relation to it as at the date of delivery as if made by reference to the facts
and circumstances then existing.

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SECTION 9 — THE FINANCE PARTIES

	29.	 	ROLE OF THE AGENT, THE ARRANGERS, THE ISSUING BANKS AND OTHERS
	 
	29.1	 	Appointment of the Agent
	 
	(a)	 	Each of the Arrangers, the Lenders and the Issuing Banks appoints the Agent to act as its
agent under and in connection with the Finance Documents.
	 
	(b)	 	Each of the Arrangers, the Lenders and the Issuing Banks authorises the Agent to exercise the
rights, powers, authorities and discretions specifically given to the Agent under or in
connection with the Finance Documents together with any other incidental rights, powers,
authorities and discretions.
	 
	29.2	 	Duties of the Agent
	 
	(a)	 	Subject to paragraph (b) below, the Agent shall promptly forward to a Party the original or a
copy of any document which is delivered to the Agent for that Party by any other Party.
	 
	(b)	 	Without prejudice to Clause 27.6 (Copy of Transfer Agreement to Company), paragraph (a) above
shall not apply to any Transfer Agreement.
	 
	(c)	 	Except where a Finance Document specifically provides otherwise, the Agent is not obliged to
review or check the adequacy, accuracy or completeness of any document it forwards to another
Party.
	 
	(d)	 	If the Agent receives notice from a Party referring to this Agreement, describing a Default
and stating that the circumstance described is a Default, it shall promptly notify the other
Finance Parties.
	 
	(e)	 	If the Agent is aware of the non-payment of any principal, interest, commitment fee or other
fee payable to a Finance Party (other than the Agent, the Arrangers or the Security Agent)
under this Agreement it shall promptly notify the other Finance Parties.
	 
	(f)	 	The Agent’s duties under the Finance Documents are solely mechanical and administrative in
nature.
	 
	29.3	 	Role of the Arrangers

Except as specifically provided in the Finance Documents, the Arrangers have no obligations of any
kind to any other Party under or in connection with any Finance Document.

	29.4	 	No fiduciary duties
	 
	(a)	 	Nothing in this Agreement constitutes the Agent, the Arrangers and/or the Issuing Banks as a
trustee or fiduciary of any other person.

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	(b)	 	None of the Agent, the Security Agent, the Arrangers, the Issuing Banks or any Ancillary
Lender shall be bound to account to any Lender for any sum or the profit element of any sum
received by it for its own account.
	 
	29.5	 	Business with the Group

The Agent, the Security Agent, each Arranger, the Issuing Banks and each Ancillary Lender may
accept deposits from, lend money to and generally engage in any kind of banking or other business
with any member of the Group.

	29.6	 	Rights and discretions
	 
	(a)	 	The Agent and the Issuing Banks may rely on:

	 	(i)	 	any representation, notice or document believed by it to be genuine, correct
and appropriately authorised; and
	 
	 	(ii)	 	any statement made by a director, authorised signatory or employee of any
person regarding any matters which may reasonably be assumed to be within his knowledge
or within his power to verify.

	(b)	 	The Agent may assume (unless it has received notice to the contrary in its capacity as agent
for the Lenders) that:

	 	(i)	 	no Default has occurred (unless it has actual knowledge of a Default arising
under Clause 26.1 (Non-payment));
	 
	 	(ii)	 	any right, power, authority or discretion vested in any Party or the Majority
Lenders has not been exercised; and
	 
	 	(iii)	 	any notice or request made by the Company (other than a Utilisation Request or
Selection Notice) is made on behalf of and with the consent and knowledge of all the
Obligors.

	(c)	 	The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants,
surveyors or other experts.
	 
	(d)	 	The Agent may act in relation to the Finance Documents through its personnel and agents.
	 
	(e)	 	The Agent may disclose to any other Party any information it reasonably believes it has
received as agent under this Agreement.
	 
	(f)	 	Without prejudice to the generality of paragraph (e) above, the Agent may disclose the
identity of a Defaulting Lender to the other Finance Parties and the Company and shall
disclose the same upon the written request of the Company or the Majority Lenders.
	 
	(g)	 	Notwithstanding any other provision of any Finance Document to the contrary, none of the
Agent, the Arrangers or the Issuing Banks is obliged to do or omit to do anything if it would
or might in its reasonable opinion constitute a breach of any law or regulation or a breach of
a fiduciary duty or duty of confidentiality.

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	29.7	 	Majority Lenders’ instructions
	 
	(a)	 	Unless a contrary indication appears in any Finance Document, the Agent shall (i) exercise
any right, power, authority or discretion vested in it as Agent in accordance with any
instructions given to it by the Majority Lenders (or, if so instructed by the Majority
Lenders, refrain from exercising any right, power, authority or discretion vested in it as
Agent) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking
any action) in accordance with an instruction of the Majority Lenders.
	 
	(b)	 	Unless a contrary indication appears in a Finance Document, any instructions given by the
Majority Lenders will be binding on all the Finance Parties other than the Security Agent who
shall be bound by instructions given in accordance with the Intercreditor Agreements.
	 
	(c)	 	The Agent may refrain from acting in accordance with the instructions of the Majority Lenders
(or, if appropriate, the Lenders) until it has received such security as it may require for
any cost, loss or liability (together with any associated VAT) which it may incur in complying
with the instructions.
	 
	(d)	 	In the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders)
the Agent may act (or refrain from taking action) as it considers to be in the best interest
of the Lenders.
	 
	(e)	 	The Agent is not authorised to act on behalf of a Lender in any legal or arbitration
proceedings relating to any Finance Document, without having first obtained that Lender’s
authority to act on its behalf in those proceedings. This paragraph (e) shall not apply to
any legal or arbitration proceeding relating to the perfection, preservation or protection of
rights under the Transaction Security Documents or enforcement of the Transaction Security or
Transaction Security Documents.
	 
	29.8	 	Responsibility for documentation

None of the Agent, the Arrangers, the Issuing Banks or any Ancillary Lender:

	(a)	 	is responsible for the adequacy, accuracy and/or completeness of any information (whether
oral or written) supplied by the Agent, the Arrangers, the Issuing Banks, an Ancillary Lender,
an Obligor or any other person given in or in connection with any Finance Document or the
Reports or the transactions contemplated in the Finance Documents;
	 
	(b)	 	is responsible for the legality, validity, effectiveness, adequacy or enforceability of any
Finance Document or the Transaction Security or any other agreement, arrangement or document
entered into, made or executed in anticipation of or in connection with any Finance Document
or the Transaction Security; or
	 
	(c)	 	is responsible for any determination as to whether any information provided or to be provided
to any Finance Party is non-public information the use of which may be regulated or prohibited
by applicable law or regulation relating to insider dealing or otherwise.

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	29.9	 	Exclusion of liability
	 
	(a)	 	Without limiting paragraph (b) below (and without prejudice to the provisions of paragraph
(e) of Clause 32.11 (Disruption to Payment Systems etc.)), none of the Agent, the Issuing
Banks, or any Ancillary Lender will be liable (including, without limitation, for negligence
or any other category of liability whatsoever) for any action taken by it under or in
connection with any Finance Document or the Transaction Security, unless directly caused by
its gross negligence or wilful misconduct.
	 
	(b)	 	No Party (other than the Agent, an Issuing Bank or an Ancillary Lender (as applicable)) may
take any proceedings against any officer, employee or agent of the Agent, any Issuing Bank or
any Ancillary Lender, in respect of any claim it might have against the Agent, an Issuing Bank
or an Ancillary Lender or in respect of any act or omission of any kind by that officer,
employee or agent in relation to any Finance Document or any Transaction Document and any
officer, employee or agent of the Agent, an Issuing Bank or any Ancillary Lender may rely on
this Clause.
	 
	(c)	 	The Agent will not be liable for any delay (or any related consequences) in crediting an
account with an amount required under the Finance Documents to be paid by the Agent if the
Agent has taken all necessary steps as soon as reasonably practicable to comply with the
regulations or operating procedures of any recognised clearing or settlement system used by
the Agent for that purpose.
	 
	(d)	 	Nothing in this Agreement shall oblige the Agent or the Arrangers to carry out any “know your
customer” or other checks in relation to any person on behalf of any Lender and each Lender
confirms to the Agent and the Arrangers that it is solely responsible for any such checks it
is required to carry out and that it may not rely on any statement in relation to such checks
made by the Agent or the Arrangers.
	 
	29.10	 	Lenders’ indemnity to the Agent

Each Lender shall (in proportion to its share of the Total Commitments or, if the Commitments in
the relevant Facility are then zero, to its share of the Total Commitments and outstanding
Utilisations) indemnify the Agent, within three Business Days of demand, against any cost, loss or
liability (including, without limitation, for negligence or any other category of liability
whatsoever) incurred by the Agent (otherwise than by reason of the Agent’s gross negligence or
wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 32.11
(Disruption to Payment Systems etc.) notwithstanding the Agent’s negligence, gross negligence or
any other category of liability whatsoever but not including any claim based on the fraud of the
Agent in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an
Obligor pursuant to a Finance Document).

	29.11	 	Resignation of the Agent
	 
	(a)	 	The Agent may resign and appoint one of its Affiliates acting through an office in France as
successor by giving notice to the Lenders and the Company.
	 
	(b)	 	Alternatively the Agent may resign by giving notice to the Lenders and the Company, in which
case the Majority Lenders (after consultation with the Company) may appoint a successor Agent.

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	(c)	 	If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b)
above within 30 days after notice of resignation was given, the retiring Agent (after
consultation with the Company) may appoint a successor Agent (acting through an office in
France).
	 
	(d)	 	The retiring Agent shall, at its own cost, make available to the successor Agent such
documents and records and provide such assistance as the successor Agent may reasonably
request for the purposes of performing its functions as Agent under the Finance Documents.
	 
	(e)	 	The Agent’s resignation notice shall only take effect upon the appointment of a successor.
	 
	(f)	 	Upon the appointment of a successor, the retiring Agent shall be discharged from any further
obligation in respect of the Finance Documents but shall remain entitled to the benefit of
this Clause 29. Any successor and each of the other Parties shall have the same rights and
obligations amongst themselves as they would have had if such successor had been an original
Party.
	 
	29.12	 	Replacement of the Agent
	 
	(a)	 	After consultation with the Company, the Majority Lenders may, by giving 30 days’ notice to
the Agent (or, at any time the Agent is an Impaired Agent, by giving any shorter notice
determined by the Majority Lenders) replace the Agent by appointing a successor Agent (acting
through an office in France).
	 
	(b)	 	The retiring Agent shall (at its own cost if it is an Impaired Agent and otherwise at the
expense of the Lenders) make available to the successor Agent such documents and records and
provide such assistance as the successor Agent may reasonably request for the purposes of
performing its functions as Agent under the Finance Documents.
	 
	(c)	 	The appointment of the successor Agent shall take effect on the date specified in the notice
from the Majority Lenders to the retiring Agent. As from this date, the retiring Agent shall
be discharged from any further obligation in respect of the Finance Documents but shall remain
entitled to the benefit of this Clause 29 (and any agency fees for the account of the retiring
Agent shall cease to accrue from (and shall be payable on) that date).
	 
	(d)	 	Any successor Agent and each of the other Parties shall have the same rights and obligations
amongst themselves as they would have had if such successor had been an original Party.
	 
	29.13	 	Confidentiality
	 
	(a)	 	In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its
agency division which shall be treated as a separate entity from any other of its divisions or
departments.
	 
	(b)	 	If information is received by another division or department of the Agent, it may be treated
as confidential to that division or department and the Agent shall not be deemed to have
notice of it.

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	(c)	 	Notwithstanding any other provision of any Finance Document to the contrary, neither the
Agent nor any Arranger is obliged to disclose to any other person (i) any confidential
information or (ii) any other information if the disclosure would or might in its reasonable
opinion constitute a breach of any law or a breach of a fiduciary duty.
	 
	29.14	 	Relationship with the Lenders
	 
	(a)	 	The Agent may treat each Lender as a Lender, entitled to payments under this Agreement and
acting through its Facility Office unless it has received not less than five Business Days’
prior notice from that Lender to the contrary in accordance with the terms of this Agreement.
	 
	(b)	 	Each Lender shall supply the Agent with any information required by the Agent in order to
calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory Cost Formula).
	 
	(c)	 	Each Lender shall supply the Agent with any information that the Security Agent may
reasonably specify (through the Agent) as being necessary or desirable to enable the Security
Agent to perform its functions as Security Agent. Each Lender shall deal with the Security
Agent exclusively through the Agent and shall not deal directly with the Security Agent.
	 
	(d)	 	Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices,
communications, information and documents to be made or despatched to that Lender under the
Finance Documents. Such notice shall contain the address, fax number and (where communication
by electronic mail or other electronic means is permitted under Clause 34.6 (Electronic
communication)) electronic mail address and/or any other information required to enable the
sending and receipt of information by that means (and, in each case, the department or
officer, if any, for whose attention communication is to be made) and be treated as a
notification of a substitute address, fax number, electronic mail address, department and
officer by that Lender for the purposes of Clause 34.2 (Addresses) and paragraph (a)(iii) of
Clause 34.6 (Electronic communication) and the Agent shall be entitled to treat such person as
the person entitled to receive all such notices, communications, information and documents as
though that person were that Lender.
	 
	29.15	 	Credit appraisal by the Lenders, Issuing Banks and Ancillary Lenders

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf
in connection with any Finance Document, each Lender, Issuing Bank and Ancillary Lender confirms to
the Agent, the Arrangers, the Issuing Banks and each Ancillary Lender that it has been, and will
continue to be, solely responsible for making its own independent appraisal and investigation of
all risks arising under or in connection with any Finance Document including but not limited to:

	(a)	 	the financial condition, status and nature of each member of the Group;
	 
	(b)	 	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and
the Transaction Security and any other agreement, arrangement or

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	 	 	document entered into, made or executed in anticipation of, under or in connection with any
Finance Document or the Transaction Security;
	 
	(c)	 	whether that Secured Party has recourse, and the nature and extent of that recourse, against
any Party or any of its respective assets under or in connection with any Finance Document,
the Transaction Security, the transactions contemplated by the Finance Documents or any other
agreement, arrangement or document entered into, made or executed in anticipation of, under or
in connection with any Finance Document;
	 
	(d)	 	the adequacy, accuracy and/or completeness of the Reports and any other information provided
by the Agent, any Party or by any other person under or in connection with any Finance
Document, the transactions contemplated by the Finance Documents or any other agreement,
arrangement or document entered into, made or executed in anticipation of, under or in
connection with any Finance Document; and
	 
	(e)	 	the right or title of any person in or to, or the value or sufficiency of any part of the
Charged Property, the priority of any of the Transaction Security or the existence of any
Security affecting the Charged Property.
	 
	29.16	 	Reference Banks

If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an
Affiliate) ceases to be a Lender, the Agent shall (in consultation with the Company) appoint
another Lender or an Affiliate of a Lender to replace that Reference Bank.

	29.17	 	Agent’s management time

Any amount payable to the Agent under Clause 19.3 (Indemnity to the Agent), Clause 21 (Costs and
Expenses) and Clause 29.10 (Lenders’ indemnity to the Agent) shall include the cost of utilising
the Agent’s management time or other resources and will be calculated on the basis of such
reasonable daily or hourly rates as the Agent may notify to the Company and the Lenders, and is in
addition to any fee paid or payable to the Agent under Clause 16 (Fees).

	29.18	 	Deduction from amounts payable by the Agent

If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving
notice to that Party, deduct an amount not exceeding that amount from any payment to that Party
which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount
deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents
that Party shall be regarded as having received any amount so deducted.

	29.19	 	Reliance and engagement letters

Each Finance Party and Secured Party confirms that each of the Arrangers and the Agent has
authority to accept on its behalf (and ratifies the acceptance on its behalf of any letters or
reports already accepted by the Arrangers or Agent) the terms of any reliance letter or engagement
letters relating to the Reports or any reports or letters provided by accountants in connection
with the Finance Documents or the transactions contemplated in the Finance Documents and to bind it
in respect of those Reports, reports or letters and to sign such letters

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on its behalf and further confirms that it accepts the terms and qualifications set out in such
letters.

	30.	 	CONDUCT OF BUSINESS BY THE FINANCE PARTIES

No provision of this Agreement will:

	(a)	 	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in
whatever manner it thinks fit;
	 
	(b)	 	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment
available to it or the extent, order and manner of any claim; or
	 
	(c)	 	oblige any Finance Party to disclose any information relating to its affairs (tax or
otherwise) or any computations in respect of Tax.
	 
	31.	 	SHARING AMONG THE FINANCE PARTIES
	 
	31.1	 	Payments to Finance Parties

If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from an Obligor
(including following a set-off) other than in accordance with Clause 32 (Payment Mechanics) and
applies that amount to a payment due under the Finance Documents then:

	(a)	 	the Recovering Finance Party shall, within three Business Days, notify details of the receipt
or recovery, to the Agent;
	 
	(b)	 	the Agent shall determine whether the receipt or recovery is in excess of the amount the
Recovering Finance Party would have been paid had the receipt or recovery been received or
made by the Agent and distributed in accordance with Clause 32 (Payment Mechanics), without
taking account of any Tax which would be imposed on the Agent in relation to the receipt,
recovery or distribution; and
	 
	(c)	 	the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to
the Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount
which the Agent determines may be retained by the Recovering Finance Party as its share of any
payment to be made, in accordance with Clause 32.6 (Partial payments).
	 
	31.2	 	Redistribution of payments

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and
distribute it between the Finance Parties (other than the Recovering Finance Party) in accordance
with Clause 32.6 (Partial payments).

	31.3	 	Recovering Finance Party’s rights
	 
	(a)	 	On a distribution by the Agent under Clause 31.2 (Redistribution of payments), the Recovering
Finance Party will be subrogated to the rights of the Finance Parties which have shared in the
redistribution which Finance Parties agree that they will in that connection waive the benefit
of article 1252 of the French Code civil.

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	(b)	 	If and to the extent that the Recovering Finance Party is not able to rely on its rights
under paragraph (a) above, the relevant Obligor shall be liable to the Recovering Finance
Party for a debt equal to the Sharing Payment which is immediately due and payable.
	 
	31.4	 	Reversal of redistribution

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes
repayable and is repaid by that Recovering Finance Party, then:

	(a)	 	each Finance Party which has received a share of the relevant Sharing Payment pursuant to
Clause 31.2 (Redistribution of payments) shall, upon request of the Agent, pay to the Agent
for the account of that Recovering Finance Party an amount equal to the appropriate part of
its share of the Sharing Payment (together with an amount as is necessary to reimburse that
Recovering Finance Party for its proportion of any interest on the Sharing Payment which that
Recovering Finance Party is required to pay); and
	 
	(b)	 	that Recovering Finance Party’s rights of subrogation in respect of any reimbursement shall
be cancelled and the relevant Obligor will be liable to the reimbursing Finance Party for the
amount so reimbursed.
	 
	31.5	 	Exceptions
	 
	(a)	 	This Clause 31 shall not apply to the extent that the Recovering Finance Party would not,
after making any payment pursuant to this Clause, have a valid and enforceable claim against
the relevant Obligor.
	 
	(b)	 	A Recovering Finance Party is not obliged to share with any other Finance Party any amount
which the Recovering Finance Party has received or recovered as a result of taking legal or
arbitration proceedings, if:

	 	(i)	 	it notified the other Finance Party of the legal or arbitration proceedings;
and
	 
	 	(ii)	 	the other Finance Party had an opportunity to participate in those legal or
arbitration proceedings but did not do so as soon as reasonably practicable having
received notice and did not take separate legal or arbitration proceedings.

	31.6	 	Ancillary Lenders
	 
	(a)	 	This Clause 31 shall not apply to any receipt or recovery by a Lender in its capacity as an
Ancillary Lender at any time prior to service of notice under Clause 26.21 (Acceleration).
	 
	(b)	 	Following service of notice under Clause 26.21 (Acceleration), this Clause 31 shall apply to
all receipts or recoveries by Ancillary Lenders except to the extent that the receipt or
recovery represents a reduction from the Designated Gross Amount for an Ancillary Facility to
its Designated Net Amount.

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SECTION 10 — ADMINISTRATION

	32.	 	PAYMENT MECHANICS
	 
	32.1	 	Payments to the Agent
	 
	(a)	 	On each date on which an Obligor or a Lender is required to make a payment under a Finance
Document excluding a payment under the terms of an Ancillary Document, that Obligor or Lender
shall make the same available to the Agent or, in the case of payments due under Letters of
Credit, an Issuing Bank (unless a contrary indication appears in a Finance Document) for value
on the due date at the time and in such funds specified by the Agent or, in the case of
payments due under Letters of Credit, an Issuing Bank as being customary at the time for
settlement of transactions in the relevant currency in the place of payment.
	 
	(b)	 	Payment shall be made to such account in the principal financial centre of the country of
that currency (or, in relation to euro, in a principal financial centre in a Participating
Member State or London) with such bank as the Agent specifies.
	 
	32.2	 	Distributions by the Agent
	 
	(a)	 	Except as otherwise provided in this Agreement, the Agent agrees that promptly after its
receipt of each payment from or on behalf of any Borrower in respect of any of the obligations
hereunder (Loans, interest and other sums) (the “Obligations”), the Agent shall distribute
such payment to the Lenders entitled thereto (other than any Lender that has consented in
writing to waive its pro rata share of any such payment) pro rata based upon their respective
shares, if any, of the Obligations with respect to which such payment was received.
	 
	(b)	 	Each payment received by the Agent under the Finance Documents for another Party shall,
subject to Clause 32.3 (Distributions to an Obligor) and Clause 32.4 (Clawback) be made
available by the Agent as soon as practicable after receipt to the Party entitled to receive
payment in accordance with this Agreement (in the case of a Lender, for the account of its
Facility Office), to such account as that Party may notify to the Agent by not less than five
Business Days’ notice with a bank in the principal financial centre of the country of that
currency (or, in relation to euro, in the principal financial centre of a Participating Member
State or London).
	 
	(c)	 	Notwithstanding anything to the contrary contained herein, the provisions of the preceding
paragraph (a) shall be subject to the express provisions of this Agreement which require, or
permit, differing payments to be made to Lenders which are not Defaulting Lenders as opposed
to Defaulting Lenders.
	 
	32.3	 	Distributions to an Obligor

The Agent may (with the consent of the Obligor or in accordance with Clause 33 (Set-Off)) apply any
amount received by it for that Obligor in or towards payment (on the date and in the currency and
funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards
purchase of any amount of any currency to be so applied.

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	32.4	 	Clawback
	 
	(a)	 	Where a sum is to be paid to the Agent under the Finance Documents for another Party, the
Agent is not obliged to pay that sum to that other Party (or to enter into or perform any
related exchange contract) until it has been able to establish to its satisfaction that it has
actually received that sum.
	 
	(b)	 	If the Agent pays an amount to another Party and it proves to be the case that the Agent had
not actually received that amount, then the Party to whom that amount (or the proceeds of any
related exchange contract) was paid by the Agent shall on demand refund the same to the Agent
together with interest on that amount from the date of payment to the date of receipt by the
Agent, calculated by the Agent to reflect its cost of funds.
	 
	32.5	 	Impaired Agent
	 
	(a)	 	If, at any time, the Agent becomes an Impaired Agent, an Obligor or a Lender which is
required to make a payment under the Finance Documents to the Agent in accordance with Clause
32.1 (Payments to the Agent) may instead either pay that amount directly to the required
recipient or pay that amount to an interest-bearing account held with an Acceptable Bank
within the meaning of paragraph (a) of the definition of “Acceptable Bank” and in relation to
which no Insolvency Event has occurred and is continuing, in the name of the Obligor or the
Lender making the payment and designated as an account for the benefit of the Party or Parties
beneficially entitled to that payment under the Finance Documents. In each case such payments
must be made on the due date for payment under the Finance Documents.
	 
	(b)	 	All interest accrued on the amount standing to the credit of the account shall be for the
benefit of the beneficiaries of that account pro rata to their respective entitlements.
	 
	(c)	 	A Party which has made a payment in accordance with this Clause 32.5 shall be discharged of
the relevant payment obligation under the Finance Documents and shall not take any credit risk
with respect to the amounts standing to the credit of the account.
	 
	(d)	 	Promptly upon the appointment of a successor Agent in accordance with Clause 29.12
(Replacement of the Agent), each Party which has made a payment to an account in accordance
with this Clause 32.5 shall give all requisite instructions to the bank with whom such account
is held to transfer the amount (together with any accrued interest) to the successor Agent for
distribution in accordance with Clause 32.2 (Distributions by the Agent).
	 
	32.6	 	Partial payments
	 
	(a)	 	If the Agent receives a payment for application against amounts due in respect of any Finance
Documents that is insufficient to discharge all the amounts then due and payable by an Obligor
under those Finance Documents, the Agent shall apply that payment towards the obligations of
that Obligor under those Finance Documents in the following order:

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	 	(i)	 	first, in or towards payment pro rata of any unpaid fees, costs and expenses of
the Agent, the Issuing Banks and the Security Agent under those Finance Documents;
	 
	 	(ii)	 	secondly, in or towards payment pro rata of any accrued interest, fee or
commission due but unpaid under those Finance Documents;
	 
	 	(iii)	 	thirdly, in or towards payment pro rata of any principal due but unpaid under
those Finance Documents and any amount due but unpaid under Clause 7.3 (Claims under a
Letter of Credit) and Clause 7.4 (Indemnities); and
	 
	 	(iv)	 	fourthly, in or towards payment pro rata of any other sum due but unpaid under
the Finance Documents.

	(b)	 	The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs
(a)(ii) to (iv) above.
	 
	(c)	 	Paragraphs (a) and (b) above will override any appropriation made by an Obligor.
	 
	32.7	 	No set-off by Obligors

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made
without (and free and clear of any deduction for) set-off or counterclaim.

	32.8	 	Business Days
	 
	(a)	 	Any payment which is due to be made on a day that is not a Business Day shall be made on the
next Business Day in the same calendar month (if there is one) or the preceding Business Day
(if there is not).
	 
	(b)	 	During any extension of the due date for payment of any principal or Unpaid Sum under this
Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the
original due date.
	 
	32.9	 	Currency of account
	 
	(a)	 	Subject to paragraphs (b) to (e) below, euro is the currency of account and payment for any
sum due from an Obligor under any Finance Document.
	 
	(b)	 	A repayment of a Utilisation or Unpaid Sum or a part of a Utilisation or Unpaid Sum shall be
made in the currency in which that Utilisation or Unpaid Sum is denominated on its due date.
	 
	(c)	 	Each payment of interest shall be made in the currency in which the sum in respect of which
the interest is payable was denominated when that interest accrued.
	 
	(d)	 	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which
the costs, expenses or Taxes are incurred.
	 
	(e)	 	Any amount expressed to be payable in a currency other than euros shall be paid in that other
currency.

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	32.10	 	Change of currency
	 
	(a)	 	Unless otherwise prohibited by law, if more than one currency or currency unit are at the
same time recognised by the central bank of any country as the lawful currency of that
country, then:

	 	(i)	 	any reference in the Finance Documents to, and any obligations arising under
the Finance Documents in, the currency of that country shall be translated into, or
paid in, the currency or currency unit of that country designated by the Agent (after
consultation with the Company); and
	 
	 	(ii)	 	any translation from one currency or currency unit to another shall be at the
official rate of exchange recognised by the central bank for the conversion of that
currency or currency unit into the other, rounded up or down by the Agent (acting
reasonably).

	(b)	 	If a change in any currency of a country occurs, this Agreement will, to the extent the Agent
(acting reasonably and after consultation with the Company) specifies to be necessary, be
amended to comply with any generally accepted conventions and market practice in the Relevant
Interbank Market and otherwise to reflect the change in currency.
	 
	32.11	 	Disruption to Payment Systems etc.

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the
Agent is notified by the Company that a Disruption Event has occurred:

	(a)	 	the Agent may, and shall if requested to do so by the Company, consult with the Company with
a view to agreeing with the Company such changes to the operation or administration of the
Facilities as the Agent may deem necessary in the circumstances;
	 
	(b)	 	the Agent shall not be obliged to consult with the Company in relation to any changes
mentioned in paragraph (a) if, in its opinion, it is not practicable to do so in the
circumstances and, in any event, shall have no obligation to agree to such changes;
	 
	(c)	 	the Agent may consult with the Finance Parties in relation to any changes mentioned in
paragraph (a) but shall not be obliged to do so if, in its opinion, it is not practicable to
do so in the circumstances;
	 
	(d)	 	any such changes agreed upon by the Agent and the Company shall (whether or not it is finally
determined that a Disruption Event has occurred) be binding upon the Parties as an amendment
to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the
provisions of Clause 38 (Amendments and Waivers);
	 
	(e)	 	the Agent shall not be liable for any damages, costs or losses whatsoever (including, without
limitation for negligence, gross negligence or any other category of liability whatsoever but
not including any claim based on the fraud of the Agent) arising as a result of its taking, or
failing to take, any actions pursuant to or in connection with this Clause 32.11; and

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	(f)	 	the Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d)
above.
	 
	33.	 	SET-OFF
	 
	(a)	 	A Finance Party may set off any matured obligation due from an Obligor under the Finance
Documents (to the extent beneficially owned by that Finance Party) against any matured
obligation owed by that Finance Party to that Obligor, regardless of the place of payment,
booking branch or currency of either obligation. If the obligations are in different
currencies, the Finance Party may convert either obligation at a market rate of exchange in
its usual course of business for the purpose of the set-off.
	 
	(b)	 	Any credit balances taken into account by an Ancillary Lender when operating a net limit in
respect of any overdraft under an Ancillary Facility shall on enforcement of the Finance
Documents be applied first in reduction of the overdraft provided under that Ancillary
Facility in accordance with its terms.
	 
	34.	 	NOTICES
	 
	34.1	 	Communications in writing

Any communication to be made under or in connection with the Finance Documents shall be made in
writing and, unless otherwise stated, may be made by fax or letter.

	34.2	 	Addresses

The address and fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to be made or
delivered under or in connection with the Finance Documents is:

	(a)	 	in the case of the Company, that identified with its name below;
	 
	(b)	 	in the case of each Lender, each Issuing Bank, each Ancillary Lender or any other Obligor,
that notified in writing to the Agent on or prior to the date on which it becomes a Party; and
	 
	(c)	 	in the case of the Agent or the Security Agent, that identified with its name below,

or any substitute address, fax number or department or officer as the Party may notify to the Agent
(or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than
five Business Days’ notice.

	34.3	 	Delivery
	 
	(a)	 	Any communication or document made or delivered by one person to another under or in
connection with the Finance Documents will only be effective:

	 	(i)	 	if by way of fax, when received in legible form; or
	 
	 	(ii)	 	if by way of letter, when it has been left at the relevant address or five
Business Days after being deposited in the post postage prepaid in an envelope
addressed to it at that address,

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	 	 	and, if a particular department or officer is specified as part of its address details
provided under Clause 34.2 (Addresses), if addressed to that department or officer.
	 
	(b)	 	Any communication or document to be made or delivered to the Agent or the Security Agent will
be effective only when actually received by the Agent or Security Agent and then only if it is
expressly marked for the attention of the department or officer identified with the Agent’s or
Security Agent’s signature below (or any substitute department or officer as the Agent or
Security Agent shall specify for this purpose).
	 
	(c)	 	All notices from or to an Obligor shall be sent through the Agent.
	 
	(d)	 	Any communication or document made or delivered to the Company in accordance with this Clause
34.3 will be deemed to have been made or delivered to each of the Obligors.
	 
	34.4	 	Notification of address and fax number

Promptly upon receipt of notification of an address or fax number or change of address or fax
number pursuant to Clause 34.2 (Addresses) or changing its own address or fax number, the Agent
shall notify the other Parties.

	34.5	 	Communication when Agent is Impaired Agent

If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through
the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the
provisions of the Finance Documents which require communications to be made or notices to be given
to or by the Agent shall be varied so that communications may be made and notices given to or by
the relevant Parties directly. This provision shall not operate after a replacement Agent has been
appointed.

	34.6	 	Electronic communication
	 
	(a)	 	Any communication to be made between the Agent or the Security Agent and a Lender under or in
connection with the Finance Documents may be made by electronic mail or other electronic
means, if the Agent, the Security Agent and the relevant Lender:

	 	(i)	 	agree that, unless and until notified to the contrary, this is to be an
accepted form of communication;
	 
	 	(ii)	 	notify each other in writing of their electronic mail address and/or any other
information required to enable the sending and receipt of information by that means;
and
	 
	 	(iii)	 	notify each other of any change to their address or any other such information
supplied by them.

	(b)	 	Any electronic communication made between the Agent and a Lender or the Security Agent will
be effective only when actually received in readable form and in the case of any electronic
communication made by a Lender to the Agent or the Security Agent only if it is addressed in
such a manner as the Agent or Security Agent shall specify for this purpose.

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	34.7	 	Use of websites

The Company may satisfy its obligation under this Agreement to deliver any information in relation
to those Lenders (the “Website Lenders”) who accept this method of communication by posting this
information onto an electronic website designated by the Company and the Agent (the “Designated
Website”) if:

	 	(i)	 	the Agent expressly agrees (after consultation with each of the Lenders) that
it will accept communication of the information by this method;
	 
	 	(ii)	 	both the Company and the Agent are aware of the address of and any relevant
password specifications for the Designated Website; and
	 
	 	(iii)	 	the information is in a format previously agreed between the Company and the
Agent.

	 	 	If any Lender (a “Paper Form Lender”) does not agree to the delivery of information
electronically then the Agent shall notify the Company accordingly and the Company shall at
its own cost supply the information to the Agent (in sufficient copies for each Paper Form
Lender) in paper form. In any event the Company shall at its own cost supply the Agent with
at least one copy in paper form of any information required to be provided by it.
	 
	(b)	 	The Agent shall supply each Website Lender with the address of and any relevant password
specifications for the Designated Website following designation of that website by the Company
and the Agent.
	 
	(c)	 	The Company shall promptly upon becoming aware of its occurrence notify the Agent if:

	 	(i)	 	the Designated Website cannot be accessed due to technical failure;
	 
	 	(ii)	 	the password specifications for the Designated Website change;
	 
	 	(iii)	 	any new information which is required to be provided under this Agreement is
posted onto the Designated Website;
	 
	 	(iv)	 	any existing information which has been provided under this Agreement and
posted onto the Designated Website is amended; or
	 
	 	(v)	 	the Company becomes aware that the Designated Website or any information posted
onto the Designated Website is or has been infected by any electronic virus or similar
software.

	 	 	If the Company notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above, all
information to be provided by the Company under this Agreement after the date of that notice
shall be supplied in paper form unless and until the Agent and each Website Lender is
satisfied that the circumstances giving rise to the notification are no longer continuing.
	 
	(d)	 	Any Website Lender may request, through the Agent, one paper copy of any information required
to be provided under this Agreement which is posted onto the

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	 	 	Designated Website. The Company shall at
its own cost comply with any such request
within ten Business Days.
	 
	34.8	 	English language
	 
	(a)	 	Any notice given under or in connection with any Finance Document must be in English.
	 
	(b)	 	All other documents provided under or in connection with any Finance Document must be:

	 	(i)	 	in English; or
	 
	 	(ii)	 	if not in English, and if so required by the Agent, accompanied by a certified
English translation and, in this case, the English translation will prevail unless the
document is a constitutional, statutory or other official document.

	35.	 	CALCULATIONS AND CERTIFICATES
	 
	35.1	 	Accounts

In any litigation or arbitration proceedings arising out of or in connection with a Finance
Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence
of the matters to which they relate.

	35.2	 	Certificates and determinations

Any certification or determination by a Finance Party of a rate or amount under any Finance
Document is, in the absence of manifest error, conclusive evidence of the matters to which it
relates.

	35.3	 	Day count convention

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and
is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in any
case where the practice in the Relevant Interbank Market differs, in accordance with that market
practice.

	36.	 	PARTIAL INVALIDITY

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or
enforceability of the remaining provisions nor the legality, validity or enforceability of such
provision under the law of any other jurisdiction will in any way be affected or impaired.

	37.	 	REMEDIES AND WAIVERS

No failure to exercise, nor any delay in exercising, on the part of any Finance Party or Secured
Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any
single or partial exercise of any right or remedy prevent any further or other exercise or the
exercise of any other right or remedy. The rights and remedies provided in this Agreement are
cumulative and not exclusive of any rights or remedies provided by law.

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	38.	 	AMENDMENTS AND WAIVERS
	 
	38.1	 	Required consents
	 
	(a)	 	Subject to Clauses 38.2 (Technical Amendments) and 38.3 (Exceptions), any term of the Finance
Documents may be amended or waived only with the consent of the Majority Lenders and the
Company and any such amendment or waiver will be binding on all Parties.
	 
	(b)	 	The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by
this Clause 38.
	 
	(c)	 	Each Obligor agrees to any such amendment or waiver permitted by this Clause 38 which is
agreed to by the Company. This includes any amendment or waiver which would, but for this
paragraph (c), require the consent of all of the Guarantors.
	 
	38.2	 	Technical Amendments

Notwithstanding the provisions of this Clause 38, the Agent may without consulting the Lenders,
decide upon purely administrative matters and, without referring to the Lenders, enter into
amendments of a purely technical nature to fix errors which are manifest upon reading this
Agreement.

	38.3	 	Exceptions
	 
	(a)	 	An amendment or waiver that has the effect of changing or which relates to:

	 	(i)	 	the definition of “Majority Lenders” in Clause 1.1 (Definitions);
	 
	 	(ii)	 	an extension to the date of payment of any amount under the Finance Documents;
	 
	 	(iii)	 	a reduction in the Margin or a reduction in the amount of any payment of
principal, interest, fees or commission payable (except any adjustment of the Margin in
accordance with the definition of “Margin”);
	 
	 	(iv)	 	a change in currency of payment of any amount under the Finance Documents;
	 
	 	(v)	 	an increase in or an extension of any Commitment or the Total Commitments;
	 
	 	(vi)	 	a change to the Borrowers or Guarantors other than in accordance with Clause 28
(Changes to the Obligors);
	 
	 	(vii)	 	any provision which expressly requires the consent of all the Lenders;
	 
	 	(viii)	 	Clause 2.2 (Finance Parties’ rights and obligations), Clause 11 (Mandatory
Prepayment), Clause 27 (Changes to the Lenders) or this Clause 38;
	 
	 	(ix)	 	(other than as expressly permitted by the provisions of any Finance Document)
the nature or scope of:

	 	(A)	 	the Charged Property; or

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	 	(B)	 	the manner in which the proceeds of enforcement of the
Transaction Security are distributed;

	 	(x)	 	the release of any Transaction Security unless permitted under this Agreement
or any other Finance Document; or
	 
	 	(xi)	 	subject to the provisions of the Intercreditor Agreements, any amendment to the
order of priority or subordination under the Intercreditor Agreements,

	 	 	shall not be made without the prior consent of all the Lenders.
	 
	(b)	 	An amendment or waiver which relates to the rights or obligations of the Agent, the
Arrangers, the Issuing Banks, the Security Agent, any Ancillary Lender or a Hedge Counterparty
(each in their capacity as such) may not be effected without the consent of the Agent, the
Arrangers, the Issuing Banks, the Security Agent, that Ancillary Lender or, as the case may
be, that Hedge Counterparty.
	 
	38.4	 	Replacement of Lenders
	 
	(a)	 	If at any time:

	 	(i)	 	any Lender becomes a Non-Consenting Lender (as defined in paragraph (c) below);
or
	 
	 	(ii)	 	an Obligor becomes obliged to repay any amount in accordance with Clause 10.1
(Illegality) or to pay additional amounts pursuant to Clause 18.1 (Increased costs) or
Clause 17.2 (Tax gross-up) to any Lender in excess of amounts payable to the other
Lenders generally,

	 	 	then the Company may, on 3 Business Days’ prior written notice to the Agent and such Lender,
replace such Lender by requiring such Lender to (and such Lender shall) transfer pursuant to
Clause 27 (Changes to the Lenders) all (and not part only) of its rights and obligations
under this Agreement to a Lender or other bank, financial institution, trust, fund or other
entity (a “Replacement Lender”) selected by the Company, and which is acceptable to the
Agent (acting reasonably) and (in the case of any transfer of an L/C Facility Commitment),
the Issuing Banks, which confirms its willingness to assume and does assume all the
obligations of the transferring Lender (including the assumption of the transferring
Lender’s participations on the same basis as the transferring Lender) for a purchase price
in cash payable at the time of transfer equal to the outstanding principal amount of such
Lender’s participation in the outstanding Utilisations and all accrued interest and/or
Letter of Credit fees, Break Costs and other amounts payable in relation thereto under the
Finance Documents.
	 
	(b)	 	The replacement of a Lender pursuant to this Clause shall be subject to the following
conditions:

	 	(i)	 	the Company shall have no right to replace the Agent or Security Agent;
	 
	 	(ii)	 	neither the Agent nor the Lender shall have any obligation to the Company to
find a Replacement Lender;

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	 	(iii)	 	in the event of a replacement of a Non-Consenting Lender such replacement must
take place no later than 5 Business Days after the date the Non-Consenting Lender
notifies the Company and the Agent of its failure or refusal to give a consent in
relation to, or agree to any waiver or amendment to the Finance Documents requested by
the Company; and
	 
	 	(iv)	 	in no event shall the Lender replaced under this paragraph (b) be required to
pay or surrender to such Replacement Lender any of the fees received by such Lender
pursuant to the Finance Documents.

	(c)	 	In the event that:

	 	(i)	 	the Company or the Agent (at the request of the Company) has requested the
Lenders to give a consent in relation to, or to agree to a waiver or amendment of, any
provisions of the Finance Documents;
	 
	 	(ii)	 	the consent, waiver or amendment in question requires the approval of all the
Lenders; and
	 
	 	(iii)	 	Lenders whose Commitments aggregate more than 90 per cent. of the Total
Commitments (or, if the Total Commitments have been reduced to zero, whose
participations in the outstanding Utilisations aggregated more than 90 per cent. of the
Total Commitments immediately prior to that reduction) have consented or agreed to such
waiver or amendment,

	 	 	then any Lender who does not and continues not to consent or agree to such waiver or
amendment shall be deemed a “Non-Consenting Lender”.
	 
	38.5	 	Disenfranchisement of Defaulting Lenders
	 
	(a)	 	For so long as a Defaulting Lender has any Available Commitment, in ascertaining the Majority
Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of
the Total Commitments, Total L/C Facility Commitments or Total Revolving Facility Commitments
has been obtained to approve any request for a consent, waiver, amendment or other vote under
the Finance Documents, that Defaulting Lender’s Commitments will be reduced by the amount of
its Available Commitments.
	 
	(b)	 	For the purposes of this Clause 38.4, the Agent may assume that the following Lenders are
Defaulting Lenders:

	 	(i)	 	any Lender which has notified the Agent that it has become a Defaulting Lender;
	 
	 	(ii)	 	any Lender in relation to which it is aware that any of the events or
circumstances referred to in paragraphs (a), (b) or (c) of the definition of
“Defaulting Lender” has occurred,

unless it has received notice to the contrary from the Lender concerned (together with any
supporting evidence reasonably requested by the Agent) or the Agent is otherwise aware that the
Lender has ceased to be a Defaulting Lender

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	38.6	 	Replacement of a Defaulting Lender
	 
	(a)	 	The Company may, at any time a Lender has become and continues to be a Defaulting Lender, by
giving 5 Business Days’ prior written notice to the Agent and such Lender:

	 	(i)	 	replace such Lender by requiring such Lender to (and such Lender shall)
transfer pursuant to Clause 27 (Changes to the Lenders) all (and not part only) of its
rights and obligations under this Agreement;
	 
	 	(ii)	 	require such Lender to (and such Lender shall) transfer pursuant to Clause 27
(Changes to the Lenders) all (and not part only) of the undrawn Revolving Facility
Commitment and/or Total L/C Facility Commitment of the Lender; or
	 
	 	(iii)	 	require such Lender to (and such Lender shall) transfer pursuant to Clause 27
(Changes to the Lenders) all (and not part only) of its rights and obligations in
respect of the Revolving Facility and/or L/C Facility,

to a Lender or other bank, financial institution, trust, fund or other entity (a “Replacement
Lender”) selected by the Company, and which (unless the Agent is an Impaired Agent) is acceptable
to the Agent (acting reasonably) and (in the case of any transfer of an L/C Facility Commitment) to
the Issuing Banks, which confirms its willingness to assume and does assume all the obligations or
all the relevant obligations of the transferring Lender (including the assumption of the
transferring Lender’s participations or unfunded participations (as the case may be) on the same
basis as the transferring Lender) for a purchase price in cash payable at the time of transfer
equal to the outstanding principal amount of such Lender’s participation in the outstanding
Utilisations and all accrued interest and/or Letter of Credit fees, Break Costs and other amounts
payable in relation thereto under the Finance Documents.

	(b)	 	Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause shall
be subject to the following conditions:

	 	(i)	 	the Company shall have no right to replace the Agent or Security Agent;
	 
	 	(ii)	 	neither the Agent nor the Defaulting Lender shall have any obligation to the
Company to find a Replacement Lender;
	 
	 	(iii)	 	the transfer must take place no later than 5 Business Days’ after the notice
referred to in paragraph (a) above; and
	 
	 	(iv)	 	in no event shall the Defaulting Lender be required to pay or surrender to the
Replacement Lender any of the fees received by the Defaulting Lender pursuant to the
Finance Documents.

	39.	 	CONFIDENTIALITY
	 
	39.1	 	Confidential Information

Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it
to anyone, save to the extent permitted by Clause 39.2 (Disclosure of Confidential Information),
and to ensure that all Confidential Information is protected with security measures and a degree of
care that would apply to its own confidential information.

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	39.2	 	Disclosure of Confidential Information

Any Finance Party may disclose:

	(a)	 	to any of its Affiliates and Related Funds and any of its or their officers, directors,
employees, professional advisers, auditors, partners and Representatives such Confidential
Information as that Finance Party shall consider appropriate if any person to whom the
Confidential Information is to be given pursuant to this paragraph (a) is informed in writing
of its confidential nature except that there shall be no such requirement to so inform if the
recipient is subject to professional obligations to maintain the confidentiality of the
information or is otherwise bound by requirements of confidentiality in relation to the
Confidential Information;
	 
	(b)	 	to any person:

	 	(i)	 	to (or through) whom it assigns or transfers (or may potentially assign or
transfer) all or any of its rights and/or obligations under one or more Finance
Documents and to any of that person’s Affiliates, Related Funds, Representatives and
professional advisers;
	 
	 	(ii)	 	with (or through) whom it enters into (or may potentially enter into), whether
directly or indirectly, any sub-participation in relation to, or any other transaction
under which payments are to be made or may be made by reference to, one or more Finance
Documents and/or one or more Obligors and to any of that person’s Affiliates, Related
Funds, Representatives and professional advisers;
	 
	 	(iii)	 	appointed by any Finance Party or by a person to whom paragraph (b)(i) or (ii)
above applies to receive communications, notices, information or documents delivered
pursuant to the Finance Documents on its behalf (including, without limitation, any
person appointed under paragraph (d) of Clause 29.14 (Relationship with the Lenders));
	 
	 	(iv)	 	who invests in or otherwise finances (or may potentially invest in or otherwise
finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or
(ii) above;
	 
	 	(v)	 	to whom information is required or requested to be disclosed by any court of
competent jurisdiction, governmental, banking, taxation or other regulatory authority
or similar body, the rules of any relevant stock exchange or pursuant to any applicable
law or regulation;
	 
	 	(vi)	 	to whom or for whose benefit that Finance Party charges, assigns or otherwise
creates Security (or may do so) pursuant to Clause 27.7 (Security on Lenders’ rights);
	 
	 	(vii)	 	to whom information is required to be disclosed in connection with, and for
the purposes of, any litigation, arbitration, administrative or other investigations,
proceedings or disputes;
	 
	 	(viii)	 	who is a Party; or

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	 	(ix)	 	with the consent of the Company;

	 	 	in each case, such Confidential Information as that Finance Party shall consider appropriate
if:

	 	(A)	 	in relation to paragraphs (b)(i), (b)(ii) and b(iii) above, the
person to whom the Confidential Information is to be given has entered into a
Confidentiality Undertaking except that there shall be no requirement for a
Confidentiality Undertaking if the recipient is a professional adviser and is
subject to professional obligations to maintain the confidentiality of the
Confidential Information;
	 
	 	(B)	 	in relation to paragraph (b)(iv) above, the person to whom the
Confidential Information is to be given has entered into a Confidentiality
Undertaking or is otherwise bound by requirements of confidentiality in
relation to the Confidential Information they receive and is informed that some
or all of such Confidential Information may be price-sensitive information;
	 
	 	(C)	 	in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above,
the person to whom the Confidential Information is to be given is informed of
its confidential nature and that some or all of such Confidential Information
may be price-sensitive information except that there shall be no requirement to
so inform if, in the opinion of that Finance Party, it is not practicable so to
do in the circumstances.

	39.3	 	Entire agreement

This Clause 39 (Confidentiality) constitutes the entire agreement between the Parties in relation
to the obligations of the Finance Parties under the Finance Documents regarding Confidential
Information and supersedes any previous agreement, whether express or implied, regarding
Confidential Information.

SECTION 11 — GOVERNING LAW AND ENFORCEMENT

	40.	 	GOVERNING LAW

This Agreement is governed by French law.

	41.	 	ENFORCEMENT — JURISDICTION OF FRENCH COURTS
	 
	(a)	 	Subject to paragraph (b) below, the Tribunal de Commerce of Paris has exclusive jurisdiction
to settle any dispute arising out of or in connection with this Agreement (including a dispute
relating to the existence, validity or termination of this Agreement) (a “Dispute”).
	 
	(b)	 	Paragraph (a) above is for the benefit of the Finance Parties only. As a result, no Finance
Party shall be prevented from taking proceedings relating to a Dispute in any other courts
with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent
proceedings in any number of jurisdictions.

154

 

	42.	 	ELECTION OF DOMICILE

Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other
than an Obligor otherwise domiciled in France) irrevocably elects domicile at c/o Pilot SAS, 26/28
rue Danielle Casanova, 75002 Paris, France for the purpose of serving any judicial or
extra-judicial documents in relation to any action or proceedings referred to above.

SECTION 12 — MISCELLANEOUS

	43.	 	LIMITED RECOURSE AGAINST QSH

Notwithstanding anything to the contrary in this Agreement or any other Finance Document, the
Finance Parties acknowledge and agree that all the liabilities of QSH arising from time to time
under or in connection with the Finance Documents shall be limited to the proceeds of realisation
of the Charged Property of QSH. The preceding sentence is without prejudice to the rights of the
Finance Parties to call an Event of Default and/or to accelerate the Facilities under Clause 27
(Events of Default). All payments to be made under the Finance Documents to the Finance Parties by
QSH shall be made solely out of and limited to the extent of the proceeds of realisation of the
Charged Property of QSH and with respect to QSH the Finance Parties shall be entitled to have
recourse only to such Charged Property (but this will not prevent the taking of proceedings in
relation to QSH for that purpose (provided that any recovery from QSH as a result of such
proceedings shall be limited to the value of the Charged Property of QSH)). In the event that the
proceeds of realisation of the Charged Property of QSH are less than the aggregate amount
outstanding under the Finance Documents, then the Finance Parties shall irrevocably and
unconditionally release QSH from all further obligations under the Finance Documents. For the
avoidance of doubt, this Clause 43 does not affect in any manner whatsoever the obligations of the
other Obligors under the Finance Documents, the obligations of each Obligor being independent from
each other and cumulatives.

	44.	 	ADDITIONAL WORKING CAPITAL FINANCING EXCEPTIONS

Following the request of the Company after the first anniversary of the date of this Agreement, the
parties hereto shall negotiate in good faith modifications to the definitions, undertakings and
other provisions of this Agreement relating to the Working Capital Financings permitted under this
Agreement in order to permit additional types of working capital, liquidity or other revolving
facilities to be entered into to replace the NP Factoring Agreements and the then existing Working
Capital Financings on terms satisfactory to the Majority Lenders (acting reasonably).

This Agreement has been entered into on the date stated at the beginning of this Agreement.

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Schedule 1

The Original Lenders

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Revolving
	Name of Original	 	Facility A	 	Facility B	 	L/C Facility	 	Facility
	Lender	 	Commitment	 	Commitment	 	Commitment	 	Commitment
	Banque Populaire du
Sud Ouest
	 	€	0	 	 	€	8,516,931	 	 	€	1,839,080	 	 	€	4,295,495	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BNP Paribas
	 	€	14,400,000	 	 	€	18,641,854	 	 	€	3,218,391	 	 	€	9,401,979	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Caisse Régionale de
Crédit Agricole
Mutuel
Pyrénées-Gascogne
	 	€	0	 	 	€	23,947,991	 	 	€	13,333,333	 	 	€	12,078,117	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CIC — Société
Bordelaise
	 	€	0	 	 	€	15,446,108	 	 	€	2,298,851	 	 	€	7,790,211	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Crédit Lyonnais
	 	€	22,600,000	 	 	€	13,315,610	 	 	€	0	 	 	€	6,715,699	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HSBC France
	 	€	0	 	 	€	7,456,742	 	 	€	13,793,103	 	 	€	3,760,791	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Natixis
	 	€	0	 	 	€	6,657,805	 	 	€	2,758,621	 	 	€	3,357,850	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Société Générale
	 	€	18,000,000	 	 	€	21,016,959	 	 	€	2,758,621	 	 	€	10,599,858	 

156

 

Schedule 2

Conditions Precedent

Part I

Conditions precedent to signing of this Agreement

	1.	 	Original Obligors

	 	(a)	 	A copy of the constitutional documents and the up-to-date share register of
each Original Obligor (including a K-bis extract, a non-bankruptcy certificate
(certificat de non faillite) and lien searches (états de privilièges et nantissements)
for each French Original Obligor and the equivalent documents for each other Original
Obligor, not more than 10 days old);
	 
	 	(b)	 	A copy of a resolution of the board of directors (or any other appropriate
corporate body) of each Original Obligor:

	 	(i)	 	approving the terms of, and the transactions contemplated by,
the Finance Documents referred to in paragraph 2 (Finance Documents) below to
which it is a party and resolving that it execute, deliver and perform the
Finance Documents referred to in paragraph 2 (Finance Documents) below to which
it is a party and any document contemplated to be delivered under or in
connection with any of the foregoing transactions or documents;
	 
	 	(ii)	 	authorising a specified person or persons to execute the
Finance Documents referred to in paragraph 2 (Finance Documents) below to which
it is a party on its behalf;
	 
	 	(iii)	 	authorising a specified person or persons, on its behalf, to
sign and/or despatch all documents and notices (including, if relevant, any
Utilisation Request and Selection Notice) to be signed and/or despatched by it
under or in connection with the Finance Documents referred to in paragraph 2
(Finance Documents) to which it is a party; and
	 
	 	(iv)	 	in the case of an Original Obligor other than the Company,
authorising the Company to act as its agent in connection with the Finance
Documents.

	 	(c)	 	A specimen of the signature of each person authorised by the resolution
referred to in paragraph (b) above in relation to the Finance Documents and related
documents and, if applicable, a copy of any power of attorney authorizing such person
to execute such documents.
	 
	 	(d)	 	A certificate of an authorised signatory of the Company or other relevant
Original Obligor certifying that each copy document relating to it specified in

157

 

	 	 	 	this Part I is correct, complete and in full force and effect and has not been
amended or superseded as at a date no earlier than the date of this Agreement.

	2.	 	Finance Documents

	 	(a)	 	This Agreement executed by the Original Obligors.
	 
	 	(b)	 	The Fee Letters executed by the Company and Na Pali and the TEG Letter executed
by the Borrowers.
	 
	 	(c)	 	The agreed forms of the Intercreditor Agreements.
	 
	 	(d)	 	The Hedging Letter executed by the Company.

	3.	 	Legal opinions
	 
	 	 	Forms of the legal opinions referred to in paragraph 4 of Part II below.
	 
	4.	 	Other documents and evidence

	 	(a)	 	The Structure Memorandum describing and analyzing (i) the indebtedness of the
Group towards third parties (including any significant intercompany liabilities of the
Group and, in particular, the payment liabilities resulting from Rossignol Sale), (ii)
the steps through which the Financial Indebtedness under the Pilot Facility Agreement
and the NP Perimeter Indebtedness To Be Refinanced will be refinanced with the proceeds
of the Facilities, (iii) the proposed intercompany transactions relating to the NP
Permanent Advance, the €208,248,624.48 ORAs issued by the Company and the €68,500,000
ORAs issued by Na Pali, (iv) any proposed corporate restructuring transactions within
the Group to be implemented prior to the Termination Date, (v) the carried forward tax
losses existing on the date of this Agreement and their use during the life of the
Facilities, (vi) the upstreaming of cash in order to repay the indebtedness of QS
Finance under the SG Financing and (vii) the French tax consolidation of the Group.
	 
	 	(b)	 	A memorandum from Ernst & Young, financial advisers of the Group, addressed to,
or capable of being relied upon by, the Agent, the Arrangers and the Lenders, analysing
the Initial Business Plan.
	 
	 	(c)	 	An up to date structure chart including Quiksilver, Inc., Biarritz Holdings,
QSH and all the Subsidiaries of QSH.
	 
	 	(d)	 	The Initial Business Plan.
	 
	 	(e)	 	The Budget for 2009.
	 
	 	(f)	 	A copy, certified by an authorised signatory of the Company to be a true copy,
of the financial statements referred to in paragraphs (a), (b), (c) and (e) of the
definition of Original Financial Statements and of the latest unaudited financial
statements of each Original Obligor (together with any reports prepared by the Auditors
relating thereto).

158

 

	 	(g)	 	Evidence that the fees, costs and expenses (including legal fees) then due by
the Borrowers to the Finance Parties have been paid.
	 
	 	(h)	 	A memorandum from Mitch Milstein, in-house intellectual property counsel of the
Group, addressed to, or capable of being relied upon by, the Reliance Parties setting
out the names, territorial perimeters, registration numbers, licenses, royalties and
existing security interests in respect of all the trademarks owned by Biarritz Holdings
and its Subsidiaries and confirming that (i) Biarritz Holdings owns the Material
Trademarks (including Quiksilver, Quiksilver & Mountain & Wave and Roxy) and (ii) all
of the foregoing is free of any lien of any nature whatsoever.
	 
	 	(i)	 	(i) An estimate of the consolidated profit and loss account of the Company and
its Subsidiaries for the nine months ending on or about 31 July 2009, (ii) an estimate
of the consolidated cash and indebtedness position of the Company and it Subsidiaries
on or about the date of this Agreement, (iii) the Capital Expenditure incurred on or
about the date of this Agreement and (iv) the back-log on or about the date of this
Agreement, in each case as certified by a legal representative of the Company.
	 
	 	(j)	 	A copy of the Stock Purchase Agreement.
	 
	 	(k)	 	A copy of the “Statement of Adjustment” to be delivered by Chartreuse et Mont
Blanc SAS to Quiksilver, Inc. in accordance with clause 2.4(c) of the Stock Purchase
Agreement.
	 
	 	(l)	 	Copies of the final verions of the 2009 ABL Agreement and the Rhône Financing
Documents.
	 
	 	(m)	 	A certificate executed by a legal representative of Quiksilver, Inc. certifying
that (i) the 2005 ABL Agreement has been terminated, all Financial Indebtedness
thereunder (other than letters of credit issued thereunder and outstanding on the date
hereof which letters of credit have been supported by standby letters of credit issued
under the 2009 ABL Agreement) has been repaid in full with the proceeds of the Rhône
Financing and drawings under the 2009 ABL Agreement and (ii) the related Encumbrances
securing such Financial Indebtedness under the 2005 ABL Agreement have been released.

	5.	 	Miscellaneous

	 	(a)	 	A list of the Material Trademarks on the date of this Agreement.
	 
	 	(b)	 	A certificate signed by a legal representative of the Company certifying the
amount of the NP Perimeter Indebtedness to be Refinanced.
	 
	 	(c)	 	A certificate signed by a legal representative of the Company certifying that
none of the NP Perimeter Indebtedness to be Refinanced has been rescinded, cancelled or
terminated on the date of this Agreement.

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Part II

Conditions precedent to the first Utilisation of the Facilities

	1.	 	Acceding Guarantors

Each of Biarritz Holdings, Quiksilver Europa and QSH shall have acceded to this Agreement and the
Intercreditor Agreements pursuant to Clause 28.2 (Additional Guarantors).

	2.	 	Obligors

	 	(a)	 	A copy of the constitutional documents and the up-to-date share register of
each Obligor (including a K-bis extract, a non-bankruptcy certificate (certificat de
non faillite) and lien searches (états de privilièges et nantissements) for each French
Obligor and the equivalent documents for each other Obligor, not more than 10 days
old);
	 
	 	(b)	 	A copy of a resolution of the board of directors (or any other appropriate
corporate body) of each Obligor:

	 	(i)	 	approving the terms of, and the transactions contemplated by,
the Finance Documents referred to in paragraph 2 (Transaction Documents) below
to which it is a party and resolving that it execute, deliver and perform the
Finance Documents referred to in paragraph 2 (Transaction Documents) below to
which it is a party and any document contemplated to be delivered under or in
connection with any of the foregoing transactions or documents;
	 
	 	(ii)	 	authorising a specified person or persons to execute the
Finance Documents referred to in paragraph 2 (Transaction Documents) below to
which it is a party on its behalf; and
	 
	 	(iii)	 	authorising a specified person or persons, on its behalf, to
sign and/or despatch all documents and notices (including, if relevant, any
Utilisation Request and Selection Notice) to be signed and/or dispatched by it
under or in connection with the Finance Documents referred to in paragraph 2
(Transaction Documents) below to which it is a party; and
	 
	 	(iv)	 	in the case of an Obligor other than the Company, authorising
the Company to act as its agent in connection with the Finance Documents.

	 	(c)	 	A specimen of the signature of each person authorised by the resolution
referred to in paragraph (b) above in relation to the Finance Documents and related
documents and, if applicable, a copy of any power of attorney authorizing such person
to execute such documents.

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	 	(d)	 	A certificate of the Company and Quiksilver, Inc. (signed by a legal
representative of these companies) confirming (i) that borrowing or guaranteeing or
securing, as appropriate, the Total Commitments of the
Lenders would not cause any borrowing, guarantee, security or similar limit binding
on any Obligor to be exceeded and (ii) that such transactions and the transactions
contemplated by the Structure Memorandum are in the corporate interest of each
French Obligor.
	 
	 	(e)	 	A certificate of an authorised signatory of the Company or other relevant
Obligor certifying that each copy document relating to it specified in this Part II is
correct, complete and in full force and effect and has not been amended or superseded
as at a date no earlier than the date of this Agreement.

	3.	 	Transaction Documents

	 	(a)	 	The Transaction Security Documents (listed in Part V) executed by the relevant
Obligors.
	 
	 	(b)	 	A copy of all notices required to be sent under the Transaction Security
Documents executed by the relevant Obligors and duly acknowledged by the addressee as
contemplated in the relevant Transaction Security Documents.
	 
	 	(c)	 	A copy of all other documents to be provided under the Transaction Security
Documents.
	 
	 	(d)	 	An original executed copy of the Quiksilver, Inc. Undertaking/Macquarie.
	 
	 	(e)	 	Fully executed copies of the Intercreditor Agreements.
	 
	 	(f)	 	A copy of all Transaction Documents (other than this Agreement).

	4.	 	Legal opinions

	 	(a)	 	A legal opinion of Skadden, Arps, Slate, Meagher & Flom LLP, legal adviser to
the Borrowers, (i) as to French law covering (1) the valid existence of the Borrowers,
(2) the capacity and due authorisation of the Borrowers to enter into the Finance
Documents to which they are a party and (3) the absence of insolvency proceedings
against the Borrowers on the date of this Agreement (subject to the customary
reservations and qualifications) and the Closing Date and (ii) as to the laws of the
relevant States of the United States of America (1) covering the valid existence of
Quiksilver, Inc., (2) covering the capacity and due authorisation of Quiksilver, Inc.
to enter into the Finance Documents to which it is a party, (3) covering the validity
of the Finance Documents governed by the laws of the relevant States of the United
States of America and (4) confirming that the entering into the Finance Documents by
the Obligors does not conflict with or breach any of the provisions of the 2009 ABL
Agreement, the Rhône Financing Documents and/or the US Indenture;
	 
	 	(b)	 	A legal opinion of AMMC Law, legal adviser to QSH and Biarritz Holdings as to
Luxembourg law covering (1) the valid existence of QSH and Biarritz Holdings, (2) the
capacity and due authorisation of QSH and Biarritz Holdings to enter into the Finance
Documents to which it is a party and (3) the absence

161

 

	 		 	of insolvency proceedings against
QSH and Biarritz Holdings on the date of this Agreement and the Closing Date (subject
to customary reservations and qualifications);
	 
	 	(c)	 	A legal opinion of Jausas, legal advisers to Quiksilver Europa as to Spanish
law covering (1) the valid existence of Quiksilver Europa, (2) the capacity and due
authorisation of Quiksilver Europa to enter into the Finance Documents to which it is a
party and (3) the absence of insolvency proceedings against Quiksilver Europa on the
date of this Agreement and the Closing Date (subject to customary reservations and
qualifications);
	 
	 	(d)	 	A legal opinion of White & Case LLP, legal advisers to the Agent and the
Arrangers as to French law covering the validity of this Agreement, the Intercreditor
Agreements and the Transaction Security Documents governed by French law; and
	 
	 	(e)	 	Legal opinions of legal advisors to the Agent and the Arrangers as to Spanish
and Luxembourg law covering the validity of the Transaction Security Documents governed
by Spanish and Luxembourg law,

	 	 	each substantially in the form distributed to the Original Lenders prior to signing this
Agreement.
	 
	5.	 	Other documents and evidence

	 	(a)	 	An addendum to the Structure Memorandum addressed to, or capable of being
relied upon by, the same parties covered in the initial Structure Memorandum,
confirming that the Pre-Closing Permitted Restructuring has been duly and legally
completed as described in the Structure Memorandum.
	 
	 	(b)	 	An up to date structure chart including Quiksilver, Inc., QSH and all the
Subsidiaries of QSH.
	 
	 	(c)	 	A list of the Material Subsidiaries on the Closing Date.
	 
	 	(d)	 	A Certificate of a legal representative of the Company addressed to the Finance
Parties confirming which companies within the Group are Material Subsidiaries.
	 
	 	(e)	 	A written confirmation addressed by GE Factofrance to the Na Pali confirming
that, neither the entering into of this Agreement by the Borrowers nor the proposed
intercompany restructuring transactions referred to in the Structure Memorandum, will
(i) constitute a termination event under the NP Factoring Agreements, (ii) enable GE
Factofrance to change the terms of the factoring programme under the NP Factoring
Agreements or (iii) enable GE Factofrance to reduce the scope of and/or the aggregate
amount of receivables which are transferred pursuant to the factoring programme under
the NP Factoring Agreements.
	 
	 	(f)	 	Evidence that the NP Permanent Advance has been fully distributed by Na Pali to
the Company as contemplated in the Structure Memorandum.

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	 	(g)	 	Evidence that all applicable anti-money laundering and “know your customer”
laws, regulations and procedures (including internal procedures of each Lender)
applicable to each Obligor have been complied with.
	 
	 	(h)	 	Evidence that the fees, costs and expenses (including legal fees) then due by
the Borrowers to the Finance Parties have been paid or will be paid on the Closing
Date.
	 
	 	(i)	 	A copy of any other authorisation or other document or assurance which the
Agent, acting reasonably, deems necessary in connection with the entry into and
performance of the transactions contemplated by any Transaction Document or the
Structure Memorandum or for the validity and enforceability of any Finance Document.
	 
	 	(j)	 	A copy of a funds flow statement consistent with the Structure Memorandum.
	 
	 	(k)	 	A copy of the valuation report from the Commissaire aux Apports appointed in
the context of the contribution of the Na Pali ORAs to the Company confirming a
valuation of Na Pali of at least €250,000,000 and a valuation of the Na Pali ORAs which
are the object of the contribution of at least €40,000,000.
	 
	 	(l)	 	A copy of the resolution of the extraordinary general assembly of the Company
convened in accordance with paragraph 1 of article L. 225-248 of the Code de Commerce
which notwithstanding the fact that the Company’s equity capital (capitaux propres) is
less than half of its share capital (capital social) rejects the dissolution of the
Company and decides the continuation of the latter.
	 
	 	(m)	 	A copy of the resolution of the extraordinary general assembly of the Company
approving the share capital decrease of the Company and evidence that such share
capital decrease has been consummated all as described in Step 3 of the Structure
Memorandum.
	 
	 	(n)	 	A copy of the resolutions of the sole shareholder of Na Pali approving the
distribution of dividends as described in steps 2 and 6 of the Structure Memorandum and
evidence that such dividends have been paid.
	 
	 	(o)	 	Evidence that the SG Forward Financing has been entered into in accordance with
the terms of the Security Sharing Agreement.
	 
	 	(p)	 	A copy of the SG Financing Documents.
	 
	 	(q)	 	(i) An estimate of the year-to-date consolidated profit and loss account of the
Company and its Subsidiaries on or about the Closing Date, (ii) an estimate of the
consolidated cash and indebtedness position of the Company and it Subsidiaries on or
about the Closing Date, (iii) the Capital Expenditure incurred on or about the Closing
Date and (iv) the back-log on or about the Closing Date, in each case as certified by a
legal representative of the Company.

163

 

	 	(r)	 	Evidence that the application of the proceeds of drawing of Facility A will
result in the full repayment (and release of the relevant security interests) of the
indebtedness under the Pilot Facility Agreement, the cancellation of any
commitment thereunder and the release of any security interest granted in connection
therewith.
	 
	 	(s)	 	Evidence that the application of the proceeds of drawing of Facility B will be
applied only to repay NP Perimeter Indebtedness To Be Refinanced and that on the
Closing Date all of the NP Perimeter Indebtedness To Be Refinanced shall be repaid in
full, all commitments thereunder cancelled and all security interests granted in
connection therewith released.
	 
	 	(t)	 	Evidence that the proposed intercompany transactions relating to the NP
Permanent Advance, the €208,248,624.48 ORAs issued by the Company and the €68,500,000
ORAs issued by Na Pali have been consummated as described in the Structure Memorandum.
	 
	 	(u)	 	Evidence of the transfer of the receivables referred to under steps 2, 4 and 6
of the Structure Memorandum and of the extinguishment of the latter.
	 
	 	(v)	 	Copies of the corporate approvals and agreements relating to the QSH/Biarritz
Holdings Contribution and evidence that the QSH/Biarritz Holdings Contribution has been
consummated.
	 
	 	(w)	 	A certificate executed by a legal representative of the Company demonstrating
EBITDA of the Group for the three month period ending 31 July 2009, which shall not be
less than €10,500,000.
	 
	 	(x)	 	An executed copy of the Deloitte Letter.

164

 

Part III

Conditions precedent to any Utilisation of a Facility

	 	(a)	 	The relevant Borrower (or the Company on its behalf) has delivered a duly
completed Utilisation Request.
	 
	 	(b)	 	Evidence that the fees, costs and expenses then due by the Borrowers to the
Finance Parties have been paid or will be paid on the Utilisation Date.

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Part IV

Conditions precedent required to be

delivered by an Additional Guarantor (other than Biarritz Holdings, Quiksilver Europa

and QSH)

	1.	 	An Accession Letter executed by the Additional Guarantor and the Company.
	 
	2.	 	A copy of the constitutional documents and the up-to-date share register of each Additional
Guarantor (including a K-bis extract and a non-bankruptcy certificate (certificat de non
faillite) for each Additional Guarantor organized under the laws of France, not more than 10
days old).
	 
	3.	 	A copy of a resolution of the board of directors (or any other appropriate corporate body) of
the Additional Guarantor:

	 	(a)	 	approving the terms of, and the transactions contemplated by, the Accession
Letter and the Finance Documents and resolving that it execute, deliver and perform the
Accession Letter and any other Finance Document to which it is party;
	 
	 	(b)	 	authorising a specified person or persons to execute the Accession Letter and
other Finance Documents on its behalf;
	 
	 	(c)	 	authorising a specified person or persons, on its behalf, to sign and/or
dispatch all other documents and notices to be signed and/or dispatched by it under or
in connection with the Finance Documents to which it is a party; and
	 
	 	(d)	 	authorising the Company to act as its agent in connection with the Finance
Documents

	4.	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph 3 above.
	 
	5.	 	[A copy of a resolution signed by all the holders of the issued shares of the Additional
Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents
to which the Additional Guarantor is a party.]1
	 
	6.	 	A certificate of the Additional Guarantor (signed by a legal representative of the Additional
Guarantor) confirming that guaranteeing or securing, as appropriate, the Total Commitments
would not cause any guarantee, security or similar limit binding on it to be exceeded.

 

			
	1	 	If required by legal counsel in the relevant
jurisdictions.

166

 

	7.	 	A certificate of an authorised signatory of the Additional Guarantor certifying that each
copy document listed in this Part IV of Schedule 2 is correct, complete and in
full force and effect and has not been amended or superseded as at a date no earlier than
the date of the Accession Letter.
	 
	8.	 	A copy of any other authorisation, consent, approval, resolution, licence, exemption, filing,
notarisation or registration or other document, opinion or assurance which the Agent considers
to be necessary or desirable in connection with the entry into and performance of the
transactions contemplated by the Accession Letter or for the validity and enforceability of
any Finance Document.
	 
	9.	 	If available, the latest audited financial statements of the Additional Guarantor.
	 
	10.	 	The following legal opinions, each addressed to the Agent, the Security Agent and the
Lenders:

	 	(a)	 	A legal opinion of the legal advisers to the Agent in form and substance
substantially similar to the legal opinion delivered on the Closing Date.
	 
	 	(b)	 	A legal opinion of the legal advisers to the Additional Guarantor in the
jurisdiction of its incorporation in form and substance substantially similar to the
legal opinion delivered on the Closing Date.

	11.	 	The Guarantees duly executed by such Additional Guarantors and any security documents which,
subject to the Agreed Security Principles, are required by the Agent to be executed by the
proposed Additional Guarantor as provided under Part VI of this Schedule 2.
	 
	12.	 	Any notices or documents required to be given or executed under the terms of those security
documents.
	 
	13.	 	Such documentary evidence as legal counsel to the Agent may require, that such Additional
Guarantor has complied with any law in its jurisdiction relating to financial assistance or
analogous process.

167

 

Part V

Transaction Security Documents and security related documents to be delivered on the

Closing Date

	1.	 	At least two originals of the following security documents (in form and substance
satisfactory to all the Lenders) shall be received by the Agent prior the Closing Date:

	 	(a)	 	a New York law guarantee agreement executed by Quiksilver, Inc. as guarantor to
secure the obligations of Pilot under Facility A and of Na Pali under the Facilities;
	 
	 	(b)	 	a Luxembourg law first demand guarantee agreement executed by Biarritz Holdings
S.à r.l as guarantor to secure the obligations of Pilot and Na Pali under the
Facilities;
	 
	 	(c)	 	a Spanish law first demand guarantee agreement executed by Quiksilver Europa SL
as guarantor to secure the obligations of Pilot and Na Pali under the Facilities;
	 
	 	(d)	 	a French law first demand guarantee agreement executed by Pilot as guarantor to
secure the obligations of Na Pali under the Facilities;
	 
	 	(e)	 	a Luxembourg law first ranking pledge agreement executed by QS Holdings S.à r.l
as pledgor over 100% of the ordinary shares and restricted shares (and all other
securities whatsoever) owned by it in Biarritz Holdings S.à r.l to secure the
obligations of Pilot and Na Pali under the Facilities;
	 
	 	(f)	 	a Spanish law first ranking pledge agreement executed by Biarritz Holdings S.à
r.l as pledgor over 100% of the shares owned by it in Quiksilver Europa SL to secure
the obligations of Pilot and Na Pali under the Facilities;
	 
	 	(g)	 	a French law first ranking pledge agreement (nantissement de compte titres)
executed by Quiksilver Europa SL as pledgor over 100% of the ordinary shares and all
other securities whatsoever issued by Pilot and owned by Quiksilver Europa SL to secure
the obligations of Pilot and Na Pali under the Facilities;
	 
	 	(h)	 	a French law first ranking pledge agreement (nantissement de compte titres)
executed by Pilot as pledgor over 100% over the shares and all other securities
whatsoever issued by Na Pali and owned by Pilot (including the NP ORAs, if any) to
secure the obligations of Pilot and Na Pali under the Facilities;
	 
	 	(i)	 	a French law first ranking pledge agreement (nantissement de compte titres)
executed by Biarritz Holdings S.à r.l as pledgor over the Pilot ORAs to secure the
obligations of Pilot and Na Pali under the Facilities;
	 
	 	(j)	 	a first ranking pledge agreement executed by Na Pali as pledgor over the shares
owned by it in each Material Subsidiary, governed by the law of the

168

 

	 	 	 	jurisdiction of
incorporation of the relevant Material Subsidiary, to secure the
obligations of Na Pali under the Facility B, the L/C Facility and the Revolving
Facility;
	 
	 	(k)	 	a Luxembourg law first ranking pledge agreement executed by Biarritz Holdings
S.à r.l as pledgor over the marks and trademarks owned by it (such marks and trademarks
to include the Material Trademarks and other trademarks held by Biarritz Holdings and
used by Pilot and its Subsidiaries) to secure the obligations of Pilot and Na Pali
under the Facilities and the obligations of QS Finance S.à r.l under the SG Financing
Documents, provided that such pledge shall provide that all the marks and trademarks
which are identified on the lists provided by the Company to the Agent pursuant to
Clause 25.24(c) (Intellectual Property) are pledged at all times;
	 
	 	(l)	 	a first ranking notarized and registered mortgage deed (hypothèque
conventionnelle inscrite) executed by Na Pali as mortgagor over the walls of Na Pali’s
corporate seat in Saint-Jean-de-Luz to secure the obligations of Na Pali under the
Facility B, the L/C Facility and the Revolving Facility;
	 
	 	(m)	 	a French law first ranking pledge agreement executed by Na Pali as pledgor over
its on-going concern (fonds de commerce) located at 32 avenue des Champs-Elysées, 75008
Paris to secure the obligations of Na Pali under the Facility B, the L/C Facility and
the Revolving Facility;
	 
	 	(n)	 	a French law assignment by way of security agreement (cession de créances
professionnelles à titre de garantie) executed by Na Pali as assignor of:

	 	(i)	 	the commercial receivables originated by it which do not fall
within the scope of the factoring programme pursuant to the NP Factoring
Agreements or any other factoring programme in replacement thereof in
accordance with this Agreement; and
	 
	 	(ii)	 	any receivable (other than commercial receivables) due to it by
Quiksilver, Inc. or any Subsidiary of Quiksilver. Inc. under any existing (to
the extent those receivables have not been repaid distributed or otherwise
extinguished on the Closing Date) or future intercompany loans,

	 	 	 	to secure the obligations of Na Pali under Facility B, the L/C Facility and the
Revolving Facility;

	 	(o)	 	a French law first ranking pledge agreement executed by Pilot as pledgor over
any amount due to it by Chartreuse et Mont Blanc SAS under the EUR 10,000,000
Subordinated Promissory Note dated 12 November 2008 issued by Chartreuse et Mont Blanc
SAS, provided that such pledge shall not restrict setoff against payments owed to the
purchaser under the stock purchase agreement dated 12 November 2008 entered into for
the purpose of the Rossignol Sale, to secure the obligations of Pilot and Na Pali under
the Facilities;

169

 

	 	(p)	 	first ranking pledge agreements executed by Pilot and Biarritz Holdings S.à r.l
as pledgors over any existing (to the extent those receivables have not been
repaid, distributed or otherwise extinguished on the Closing Date) or future
receivables (other than commercial receivables) held by any of them against
Quiksilver, Inc. or any of its Subsidiaries, to secure the obligations of Pilot and
Na Pali under the Facilities; and
	 
	 	(q)	 	a first ranking pledge agreement executed by QS Holdings S.à r.l as pledgor
over any existing (to the extent those receivables have not been repaid, distributed or
otherwise extinguished on the Closing Date) or future receivables (other than
commercial receivables) owned by QS Holdings S.à r.l against Biarritz Holdings S.à r.l
or any of its Subsidiaries to secure the obligations of Pilot and Na Pali under the
Facilities.

	2.	 	A copy of all notices required to be sent under the Transaction Security Documents duly
acknowledged by the addressee in accordance with and at the times provided for in the
Transaction Security Documents.
	 
	3.	 	If the Transaction Security Document to be executed by the relevant Obligor creates a
Security over shares in a Subsidiary of that Obligor:

	 	(a)	 	where such Subsidiary is not itself an Obligor, a certified copy of the
constitutional documents of such Subsidiary in a form acceptable to the Agent;
	 
	 	(b)	 	appropriate corporate resolutions from each such Subsidiary (including any
“agrément”); and
	 
	 	(c)	 	a certified copy of all documents (such as, with respect to each Subsidiary
organized under the laws of France, registre de mouvement de titres, comptes de
titulaires de valeurs mobilières) evidencing the ownership of any security issued by
such Subsidiary owned by that Obligor and evidencing Security thereon in accordance
with the Transaction Security Documents.

170

 

Part VI

Transaction Security Documents and security related documents to be delivered by the

Additional Guarantors (other than Biarritz Holdings, Quiksilver Europa and QSH)

	1.	 	A Guarantee (in form and substance satisfactory to the Lenders) to be executed by the
relevant Additional Guarantor.
	 
	2.	 	All Transactions Security Documents (in form and substance satisfactory to the Lenders)
listed in paragraph 4 of Schedule 10.
	 
	3.	 	A copy of all notices required to be sent under the Transaction Security Documents duly
acknowledged by the addressee in accordance with and at the times provided for in the
Transaction Security Documents.
	 
	4.	 	If the Transaction Security Document to be executed by the relevant Additional Guarantor
creates a Security over shares in a Subsidiary of that Additional Guarantor:

	 	(a)	 	where such Subsidiary is not itself an Obligor, a certified copy of the
constitutional documents of such Subsidiary in a form acceptable to the Agent;
	 
	 	(b)	 	appropriate corporate resolutions from each such Subsidiary (including any
“agrément”); and
	 
	 	(c)	 	a certified copy of all documents (such as, with respect to each Subsidiary
organized under the laws of France, registre de mouvement de titres, comptes de
titulaires de valeurs mobilières) evidencing the ownership of any security issued by
such Subsidiary owned by that Additional Guarantor and evidencing Security thereon in
accordance with the Transaction Security Documents.

171

 

Schedule 3

Requests

Part I

Utilisation Request

Loans

From: [Borrower] [Company]*

To:     [Agent]

Dated:

Dear Sirs

[Company] — [     ] Facilities Agreement

dated [     ] (the “Facilities Agreement”)

	1.	 	We refer to the Facilities Agreement. This is a Utilisation Request. Terms defined in the
Facilities Agreement have the same meaning in this Utilisation Request unless given a
different meaning in this Utilisation Request.
	 
	2.	 	We wish to borrow a Loan on the following terms:

	 	(a)	 	Borrower: [     ]
	 
	 	(b)	 	Proposed Utilisation Date: [     ] (or, if that is not a Business Day,
the next Business Day)
	 
	 	(c)	 	Facility to be utilised: [Facility A]/[Facility B]/[Revolving Facility]**
	 
	 	(d)	 	Amount: [     ] or, if less, the Available Facility
	 
	 	(e)	 	Interest Period: [     ]

	3.	 	We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is
satisfied on the date of this Utilisation Request.
	 
	4.	 	[The proceeds of this Loan should be credited to [account]].
	 
	5.	 	This Utilisation Request is irrevocable.

Yours faithfully

 

authorised signatory for

172

 

[the Company on behalf of [insert name of relevant Borrower]]/ [insert name of Borrower]*

NOTES:

 

			
	*	 	Amend as appropriate. The Utilisation Request can be given by the Borrower or by the
Company.
	 
	**	 	Select the Facility to be utilised and delete references to the other Facilities.

173

 

Part II

L/C Request

Letters of Credit

From: [Na Pali] [Company]*

To:     [Agent]

Dated:

Dear Sirs

[Company] — [     ] Facilities Agreement

dated [     ] (the “Facilities Agreement”)

	1.	 	We refer to the Facilities Agreement. This is an L/C Request. Terms defined in the
Facilities Agreement have the same meaning in this L/C Request unless given a different
meaning in this L/C Request.
	 
	2.	 	We wish to arrange for a Letter of Credit to be issued by the Issuing Bank specified below
(which has agreed to do so) on the following terms:

	 	(a)	 	Applicant/account party: Na Pali
	 
	 	(b)	 	Issuing Bank: [     ]
	 
	 	(c)	 	Proposed Utilisation Date: [     ] (or, if that is not a Business Day,
the next Business Day)
	 
	 	(d)	 	Facility to be utilised: L/C Facility
	 
	 	(e)	 	Currency of Letter of Credit: [     ]
	 
	 	(f)	 	Amount: [     ] or, if less, the Available Facility in relation to the
L/C Facility
	 
	 	(g)	 	Term: [     ]

	3.	 	We confirm that each condition specified in paragraph (b) of Clause 6.5 (Issuance of Letters
of Credit) is satisfied on the date of this L/C Request.
	 
	4.	 	We attach a copy of the proposed Letter of Credit.
	 
	5.	 	The purpose of this proposed Letter of Credit is [     ].
	 
	6.	 	This L/C Request is irrevocable.
	 
	7.	 	This L/C Request and the Letter of Credit shall be subject to the Uniform Customs and
Practice for Documentary Credits, International Chamber of Commerce Publication No. 600.

174

 

Yours faithfully,

 

authorised signatory for

[the Company on behalf of Na Pali]*

NOTES:

 

			
	*	 	Amend as appropriate. The L/C Request can be given by Na Pali or by the Company.

175

 

Part III

Selection Notice

Applicable to a Term Loan

From: [Borrower] [Company]*

To:     [Agent]

Dated:

Dear Sirs

[Company] — [ ] Facilities Agreement

dated [     ] (the “Facilities Agreement”)

	1.	 	We refer to the Facilities Agreement. This is a Selection Notice. Terms defined in the
Facilities Agreement have the same meaning in this Selection Notice unless given a different
meaning in this Selection Notice.
	 
	2.	 	We refer to the following Facility [A/B] Loan with an Interest Period ending on [     ]**.

or

	 	 	[We request that the next Interest Period for the above Facility [A]/[B] Loan[s] is [
]].

	3.	 	This Selection Notice is irrevocable.

Yours faithfully

 

authorised signatory for

[the Company on behalf of] [insert name of Relevant Borrower] *

NOTES:

 

			
	*	 	Amend as appropriate. The Selection Notice can be given by the Borrower or the Company.
	 
	**	 	Insert details of all Term Loans for the relevant Facility which have an Interest Period
ending on the same date.

176

 

Schedule 4

Mandatory Cost Formula

	1.	 	The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of
compliance with (a) the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces all or any of its functions)
or (b) the requirements of the European Central Bank.
	 
	2.	 	On the first day of each Interest Period (or as soon as possible thereafter) the Agent shall
calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in
accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the
Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to
the percentage participation of each Lender in the relevant Loan) and will be expressed as a
percentage rate per annum.
	 
	3.	 	The Additional Cost Rate for any Lender lending from a Facility Office in a Participating
Member State will be the percentage notified by that Lender to the Agent. This percentage
will be certified by that Lender in its notice to the Agent to be its reasonable determination
of the cost (expressed as a percentage of that Lender’s participation in all Loans made from
that Facility Office) of complying with the minimum reserve requirements of the European
Central Bank in respect of loans made from that Facility Office.
	 
	4.	 	The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom
will be calculated by the Agent as follows:

	 	(a)	 	in relation to a sterling Loan:
	 
	 	 	 	 AB + C(B - D)+E x 0.01 per cent. per annum

          100 - (A + C)
	 
	 	(b)	 	in relation to a Loan in any currency other than sterling:
	 
	 	 	 	E x 0.01 per cent. per annum.

    300
	 
	 	 	 	Where:

	 	A	 	is the percentage of Eligible Liabilities (assuming these to be
in excess of any stated minimum) which that Lender is from time to time
required to maintain as an interest free cash ratio deposit with the Bank of
England to comply with cash ratio requirements.
	 
	 	B	 	is the percentage rate of interest (excluding the Margin and
the Mandatory Cost and, if the Loan is an Unpaid Sum, the additional rate

177

 

	 		 	of interest specified in paragraph (a) of Clause 9.3 (Default interest))
payable for the relevant Interest Period on the Loan.
	 
	 	C	 	is the percentage (if any) of Eligible Liabilities which that
Lender is required from time to time to maintain as interest bearing Special
Deposits with the Bank of England.
	 
	 	D	 	is the percentage rate per annum payable by the Bank of England
to the Agent on interest bearing Special Deposits.
	 
	 	E	 	is designed to compensate Lenders for amounts payable under the
Fees Rules and is calculated by the Agent as being the average of the most
recent rates of charge supplied by the Reference Banks to the Agent pursuant to
paragraph 7 below and expressed in pounds per £1,000,000.

	5.	 	For the purposes of this Schedule:

	 	(a)	 	“Eligible Liabilities” and “Special Deposits” have the meanings given to them
from time to time under or pursuant to the Bank of England Act 1998 or (as may be
appropriate) by the Bank of England;
	 
	 	(b)	 	“Fees Rules” means the rules on periodic fees contained in the FSA Supervision
Manual or such other law or regulation as may be in force from time to time in respect
of the payment of fees for the acceptance of deposits;
	 
	 	(c)	 	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the
activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee
required pursuant to the Fees Rules but taking into account any applicable discount
rate); and
	 
	 	(d)	 	“Tariff Base” has the meaning given to it in, and will be calculated in
accordance with, the Fees Rules.

	6.	 	In application of the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A
negative result obtained by subtracting D from B shall be taken as zero. The resulting
figures shall be rounded to four decimal places.
	 
	7.	 	If requested by the Agent, each Reference Bank shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Agent, the rate of charge
payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules
in respect of the relevant financial year of the Financial Services Authority (calculated for
this purpose by that Reference Bank as being the average of the Fee Tariffs applicable to that
Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff
Base of that Reference Bank.
	 
	8.	 	Each Lender shall supply any information required by the Agent for the purpose of calculating
its Additional Cost Rate. In particular, but without limitation, each Lender shall supply the
following information on or prior to the date on which it becomes a Lender:

178

 

	 	(a)	 	the jurisdiction of its Facility Office; and
	 
	 	(b)	 	any other information that the Agent may reasonably require for such purpose.

Each Lender shall promptly notify the Agent of any change to the information provided by it
pursuant to this paragraph.

	9.	 	The percentages of each Lender for the purpose of A and C above and the rates of charge of
each Reference Bank for the purpose of E above shall be determined by the Agent based upon the
information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that,
unless a Lender notifies the Agent to the contrary, each Lender’s obligations in relation to
cash ratio deposits and Special Deposits are the same as those of a typical bank from its
jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility
Office.
	 
	10.	 	The Agent shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates any Lender and shall be entitled to
assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3,
7 and 8 above is true and correct in all respects.
	 
	11.	 	The Agent shall distribute the additional amounts received as a result of the Mandatory Cost
to the Lenders on the basis of the Additional Cost Rate for each Lender based on the
information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8
above.
	 
	12.	 	Any determination by the Agent pursuant to this Schedule in relation to a formula, the
Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the
absence of manifest error, be conclusive and binding on all Parties.
	 
	13.	 	The Agent may from time to time, after consultation with the Company and the Lenders,
determine and notify to all Parties any amendments which are required to be made to this
Schedule in order to comply with any change in law, regulation or any requirements from time
to time imposed by the Bank of England, the Financial Services Authority or the European
Central Bank (or, in any case, any other authority which replaces all or any of its functions)
and any such determination shall, in the absence of manifest error, be conclusive and binding
on all Parties.

179

 

Schedule 5

Form of Transfer Agreement

To: [     ] as Agent and [      ] as Security Agent

From: [The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)

Dated:

Pilot SAS — Facilities Agreement

dated [     ] (the “Facilities Agreement”)

	1.	 	We refer to the Facilities Agreement and to the Security Sharing Agreement (as defined in the
Facilities Agreement). This agreement (the “Agreement”) shall take effect as a Transfer
Agreement for the purpose of the Facilities Agreement and as an Accession Agreement for the
purposes of the Security Sharing Agreement (and as defined in the Security Sharing Agreement).
Terms defined in the Facilities Agreement have the same meaning in this Agreement unless
given a different meaning in this Agreement.
	 
	 	 	The Existing Lender wishes to [transfer/assign] and the New Lender wishes to acquire [all]
[the part specified in Schedule 1 to this Transfer Agreement] of the Existing Lender’s
Commitment, rights [and obligations] referred to in Schedule 1 to this Transfer Agreement.
	 
	2.	 	The Existing Lender and the New Lender agree to the [transfer/assignment] (cession) of [all]
[the part specified in Schedule 1 to this Transfer Agreement] of the Existing Lender’s
Commitment, rights [and obligations] referred to in Schedule 1 to this Transfer Agreement in
accordance with Clause 27.5 (Procedure for transfer) of the Facilities Agreement.2
	 
	3.	 	The proposed Transfer Date is [•].
	 
	4.	 	The Facility Office and address, fax number and attention details for notices of the New
Lender for the purposes of Clause 34.2 (Addresses) are set out in Schedule 1 to this Transfer
Agreement.
	 
	5.	 	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in Clause 27.4 (Limitation of responsibility of Existing Lenders) of the Facilities
Agreement.

 

			
	2	 	The New Lender may, in the case of a transfer of rights
by the Existing Lender under this Transfer Agreement, if it considers it
necessary to make the transfer effective as against third parties, arrange for
it to be notified by way of signification to the Obligors in accordance with
article 1690 of the French Code Civil.

180

 

	6.	 	The New Lender confirms, for the benefit of the Agent and without any liability to any
Obligor, that it is:

	 	(a)	 	a Qualifying Lender other than a Treaty Lender;
	 
	 	(b)	 	a Treaty Lender;
	 
	 	(c)	 	not a Qualifying Lender.3

	7.	 	The New Lender confirms to the other Finance Parties represented by the Agent that it has
become entitled to the same rights and that it will assume the same obligations to those
Parties as it would have been under if it was an Original Lender.
	 
	8.	 	[We refer to clause 20.2 (Change of Secured Creditors or New Secured Creditors) of the
Security Sharing Agreement:
	 
	 	 	In consideration of the New Lender being accepted as a Senior Facilities Lender for the
purposes of the Security Sharing Agreement (and as defined in the Security Sharing
Agreement), the New Lender confirms that, as from the Transfer Date, it intends to be party
to the Security Sharing Agreement as a Senior Facilities Lender, and undertakes to perform
all the obligations expressed in the Security Sharing Agreement to be assumed by a Senior
Facilities Lender and agrees that it shall be bound by all the provisions of the Security
Sharing Agreement, as if it had been an original party to the Security Sharing Agreement.]
	 
	9.	 	[This Agreement has been entered into on the date stated at the beginning of this Agreement.]
	 
	10.	 	[This Agreement is governed by French law. The Tribunal of Commerce of Paris shall have
jurisdiction in relation to any dispute concerning it.]
	 
	11.	 	[This Agreement has been executed in [ ] originals.]

 

			
	3	 	Delete as applicable. Each New Lender is required to
confirm which of these three categories it falls within.

181

 

Schedule 1

Commitment/rights [and obligations] to be transferred

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for

payments]

	 	 	 
	[Existing Lender]

	 	[New Lender]
	 
	 	 
	By:

	 	By:

This Transfer Agreement is accepted by the Agent and the Transfer Date is confirmed as [• ].

[Agent]

By:

182

 

Schedule 6

Form of Accession Letter

			
	To: [     ] as Agent and [     ] as Security Agent for itself
and each of the other parties to the Intercreditor Agreements referred to below

From: [Subsidiary] and [Company]

Dated: [•]

Dear Sirs,

[Company] — [•]     Facilities Agreement dated [•]     (the “Facilities Agreement”)

	1.	 	We refer to the Facilities Agreement and to the Intercreditor Agreements. This is an
Accession Letter. This letter (the “Accession Letter”) shall take effect as an Accession
Letter for the purposes of the Facilities Agreement, as an Accession Agreement for the
purposes of the Subordination Agreement (and as defined in the Subordination Agreement) and as
an Accession Agreement for the purposes of the Security Sharing Agreement (and as defined in
the Security Sharing Agreement). Terms defined in the Facilities Agreement have the same
meaning in this Accession Letter unless given a different meaning in this Accession Letter.
	 
	2.	 	[Subsidiary] agrees to become an Additional Guarantor and to be bound by the terms of the
Facilities Agreement and the other Finance Documents (other than the Intercreditors Agreement)
as an Additional Guarantor pursuant to Clause 28.2 (Additional Guarantors) of the Facilities
Agreement. [Subsidiary] is a company duly incorporated under the laws of [name of relevant
jurisdiction].
	 
	3.	 	[Subsidiary’s] administrative details are as follows:

	 	 	 
	Address:	 	[•]
	 	 	 
	Fax No: 	 	[•]
	 	 	 
	Attention:	 	[•]

	4.	 	The Additional Guarantor confirms that it intends to be party to the Subordination Agreement
as an Obligor and an Intra-Group Debtor (each as defined in the Subordination Agreement) and
to the Security Sharing Agreement as an Obligor (and as defined in the Security Sharing
Agreement), undertakes to perform all the obligations expressed to be assumed by an Obligor
and an Intra-Group Debtor (each as defined in the Subordination Agreement and as defined in
the Security Sharing

183

 

	 	 	Agreement) and agrees that it shall be bound by all the provisions of the Subordination
Agreement and the Security Sharing Agreement as if it had been an original party to the
Subordination Agreement and the Security Sharing Agreement.
	 
	5.	 	[In consideration of the Additional Guarantor being accepted as Subordinated Creditor for the
purposes of the Subordination Agreement, the Additional Guarantor also confirms that it
intends to be party to the Subordination Agreement as a Subordinated Creditor, and undertakes
to perform all the obligations expressed in the Subordination Agreement to be assumed by a
Subordinated Creditor and agrees that it shall be bound by all the provisions of the
Subordination Agreement, as if it had been an original party to the Subordination Agreement]
	 
	6.	 	This Accession Letter is governed by French law.

	 	 	 
	[Company]
	 	[Subsidiary]

184

 

Schedule 7

Form of Compliance Certificate

To: [     ] as Agent

From: [Company]

Dated:

Dear Sirs

[Company] — [     ] Facilities Agreement

dated [      ] (the “Facilities Agreement”)

	1.	 	We refer to the Facilities Agreement. This is a Compliance Certificate. Terms defined in
the Facilities Agreement have the same meaning when used in this Compliance Certificate unless
given a different meaning in this Compliance Certificate.
	 
	2.	 	We confirm that:
	 
	 	 	[Insert details of covenants to be certified].
	 
	 	 	[We confirm that Leverage Ratio is [ ]:1 and that, therefore, the Facility A Margin should
be [ ]% and the Facility B and Revolving Facility Margin should be [ ]%.]
	 
	3.	 	[We confirm that no Default is continuing.]**
	 
	4.	 	[We confirm that the following companies constitute Material Subsidiaries for the purposes of
the Facilities Agreement: [      ].]
	 
	 	 	[We confirm that the [aggregate of the earnings before interest, tax, depreciation and
amortisation (calculated on the same basis as EBITDA, as defined in Clause 24 (Financial
Covenants))] / [aggregate gross assets, aggregate net assets and aggregate turnover] of the
Guarantors (calculated on an unconsolidated basis and excluding all intra-group items and
investments in Subsidiaries of any member of the Group) exceeds [ ]% of the [EBITDA, as
defined in Clause 24 (Financial Covenants)] [consolidated gross assets, consolidated net
assets and consolidated turnover of the Group].

	 	 	 	 	 
	Signed

	 	                                        
	 	                                        
	 
	 	 	 	 
	 

	 	Director
	 	Director
	 
	 	 	 	 
	 

	 	Of
	 	of
	 
	 	 	 	 
	 

	 	[Company]
	 	[Company]

 

			
	*	 	If this statement cannot be made, the certificate
should identify any Default that is continuing and the steps, if any, being
taken to remedy it.

185

 

[insert applicable certification language]**

	 	 	 
	 

	 	 

for and on behalf of

[name of Auditors of the Company]***

 

			
	**	 	To be agreed with the Company’s Auditors and the
Lenders prior to signing the Agreement.
	 
	***	 	Only applicable if the Compliance Certificate
accompanies the audited financial statements and is to be signed by the
Auditors. To be agreed with the Company’s auditor’s prior to signing the
Agreement.

186

 

Schedule 8

Timetables

Part I

Loans

	 	 	 
	 
	 	Loans in euro

—

	Delivery of a duly completed
Utilisation Request (Clause 5.1
(Delivery of a Utilisation Request))
or a Selection Notice (Clause 14.1
(Selection of Interest Periods and
Terms))

	 	U-3 

9.30am
	 
	 	 
	Agent determines (in relation to a
Utilisation) the Base Currency
Amount of the Loan, if required
under Clause 5.4 (Lenders’
participation)

	 	U-3 

Noon
	 
	 	 
	Agent notifies the Lenders of the
Loan in accordance with Clause 5.4
(Lenders’ participation)

	 	U-3 

3.00pm
	 
	 	 
	EURIBOR is fixed

	 	Quotation Day as of 11.00 a.m.
(Brussels time) in respect of
EURIBOR

			
	“U”	 	= date of utilisation or, if applicable, in the case of a
Term Loan that has already been borrowed, the first day
of the relevant Interest Period for that Term Loan.

			
	“U — X”	 	= X Business Days prior to date of utilisation

187

 

Part II

Letters of Credit

	 	 	 	 	 
	 	 	Letters of Credit	 	Letters of Credit in other
	 	 	in euro	 	currencies
	Delivery of a duly
completed L/C Request
(Clause 6.2 (Delivery of
an L/C Request for
Letters of Credit))

	 	U-3 

11.00
am 
	 	U-3 

11.00
am 
	 
	 	 	 	 
	Agent notifies the
Company if a currency is
approved as an Optional
Currency in accordance
with Clause 4.3
(Conditions relating to
Optional Currencies)

	 	 	 	U-4 
	 
	 	 	 	 
	Agent determines (in
relation to a
Utilisation) the Base
Currency Amount of the
Letter of Credit if
required under paragraph
(d) of Clause 6.5
(Issuance of Letters of
Credit) and notifies the
Issuing Bank and Lenders
participating in the
Letter of Credit in
accordance with
paragraph (d) of Clause
6.5 (Issuance of Letters
of Credit).

	 	U-3 

1.00
pm 
	 	U-3 

1.00
pm 
	 
	 	 	 	 
	[Delivery of duly
completed Extension
Request (Clause 6.6
(Extension of a Letter
of Credit))]

	 	U-3 

11.00
am 
	 	U-3 

11.00
am 

	 	 	 
	“U”

	=
	date of utilisation[, or, if applicable, in the case of a
Letter of Credit to be extended in accordance with Clause
6.6 (Extension of a Letter of Credit), the last day of the
term of the Letter of Credit prior to its extension]
	 
	 	 
	“U-X” 

	= 
	Business Days prior to date of utilisation

188

 

Schedule 9

Material Subsidiaries

Emerald Coast SAS

Sumbawa SL

Lanai Ltd.

Cariboo SAS

Omareef SAS

189

 

Schedule 10

Agreed Security Principles

	1.	 	SECURITY PRINCIPLES
	 
	(i)	 	The guarantees and Security to be provided pursuant to this Agreement will be given in
accordance with the agreed security principles set out in this Schedule 10 (the “Agreed
Security Principles”). This Schedule 10 addresses the manner in which the Agreed Security
Principles will impact on the guarantees and Security proposed to be taken in relation to the
Refinancing.
	 
	(ii)	 	The Agreed Security Principles embody recognition by all parties that general statutory
limitations, financial assistance, corporate benefit, fraudulent preference and “thin
capitalisation” rules and fiduciary duties of the directors or officers may limit the ability
of a member of the Group to provide a guarantee or Transaction Security.
	 
	2.	 	ENFORCEMENT EVENT

The following principles will be reflected in the terms of any Transaction Security:

	(i)	 	Save where it is not possible under applicable law, Security created under any Transaction
Security Document (other than a Transaction Security Document governed by French law) will be
enforceable upon the occurrence of an Event of Default (and so long as such Event of Default
is continuing) or such other trigger event as is agreed has occurred; and
	 
	(ii)	 	Security created under any Transaction Security Document governed by French law will be
enforceable upon the occurrence of a payment default under any Finance Document.
	 
	 	 	In the case of any Transaction Security granted over commercial receivables (“créances
clients”), prior to a Default, no notification will be given to the relevant debtors of such
Security.
	 
	3.	 	SHARES

Any Transaction Security Document creating a pledge over the shares of a company will be governed
by the laws of the company whose shares are being secured and not by the laws of the country of the
Obligor granting the security.

Until an Event of Default has occurred or such other trigger event as is agreed has occurred, the
charging Obligor will be (i) permitted to receive dividends on pledged shares to the extent
permitted under the Finance Documents and (ii) retain and exercise voting rights.

190

 

	4.	 	ADDITIONAL GUARANTORS
	 
	(i)	 	Each Additional Guarantor incorporated or established in the same jurisdiction as an Original
Obligor shall provide the same type and scope of Security as that provided by the relevant
Original Obligor, including a first-ranking pledge by its Holding Company or Holding Companies
over the entire issued share capital of that Additional Guarantor which it respectively holds,
provided that where that Additional Guarantor has other types of assets over which Security
may be taken, that Additional Guarantor shall provide such other Security over those assets as
the Security Agent (acting on the instructions of the Majority Lenders) reasonably determines
can be provided in accordance with paragraph 1 of this Schedule 10, and provided
further that each Additional Guarantor incorporated in France shall deliver a pledge over its
on-going business (“fonds de commerce”).
	 
	(ii)	 	Each Additional Guarantor incorporated or established in any jurisdiction other than those in
which the Original Obligors are incorporated or established shall provide the following in
accordance with and subject to paragraph 1 of this Schedule 10:

	 	(a)	 	a first ranking pledge (governed by the law of the place of incorporation of
the relevant Additional Guarantor) by its Holding Company or Holding Companies over the
entire issued share capital of that Additional Guarantor which it respectively holds;
	 
	 	(b)	 	a first ranking fixed and floating security over all its present and future
assets if applicable in the relevant jurisdiction; and

such other Security over all or any of its assets as the Security Agent (acting on the instructions
of the Majority Lenders) reasonably determines can be provided.

191

 

Schedule 11

List of Securities

See the attached.

192

 

Schedule 11

List of Securities

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Expiration	 	 
	Category	 	Creditor	 	Debtor	 	Signing Date	 	Date	 	Description
	Pledge of going
concern
(nantissement
de fonds de
commerce), in
connection
with the
following
shops:

	 	CIC
	 	Cariboo
	 	September 2008
	 	September
2013
	 	Pledge guaranteeing the
obligations of Cariboo under a
term loan agreement for a
maximum amount of 4,884,000€
	- Quiksilver
Hossegor
	 	 	 	 	 	 	 	 	 	 
	- Roxy
Bordeaux
	 	 	 	 	 	 	 	 	 	 
	- Roxy Lorient
	 	 	 	 	 	 	 	 	 	 
	- Roxy Carre
Sénart
	 	 	 	 	 	 	 	 	 	 
	- Roxy
Etrembières
	 	 	 	 	 	 	 	 	 	 
	- Quiksilver
Aulnay
	 	 	 	 	 	 	 	 	 	 
	- Roxy Aulnay

	 	GE Factofrance
	 	Na Pali
	 	22/08/08
	 	N/A
	 	- Assignment of the credit
balance of the bank accounts
where payments are made by
debtors of Na Pali in connection
with a NP Factoring Agreement
	Assignment of
receivables

	 	 	 	 	 	 	 	 	 	- Cross security interests over the

193

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Expiration	 	 
	Category	 	Creditor	 	Debtor	 	Signing Date	 	Date	 	Description
	 

	 	 	 	 	 	 	 	 	 	Current Accounts of Na Pali
SAS and Emerald Coast SAS.
opened in the books of GE
Factofrance
	Assignment of
receivables

	 	GE Factofrance
	 	Emerald Coast
	 	22/08/08
	 	N/A
	 	- Assignment of the credit
balance of the bank account
where payments are made by
debtors of Emerald Coast in
connection with a NP Factoring
Agreement
	 

	 	 	 	 	 	 	 	 	 	- Cross security interests over the
Current Accounts of Na Pali
SAS. Emerald Coast SAS,
opened in the books of GE
Factofrance
	
Assignment of
receivables

	 	GE Factofrance
	 	Sumbawa
	 	30/10/08
	 	N/A
	 	- Pledge over the credit
balance of the Dedicated Accounts where payments are
made by debtors of Sumbawa in
connection with a NP Factoring
Agreement,
	 

	 	 	 	 	 	 	 	 	 	- Cross security interests over
the Current Accounts of Na Pali
SAS, Emerald Coast SAS, and
Lanai Ltd opened in the books of
GE Factofrance
	Assignment of
receivables

	 	GE Factofrance
	 	Lanai
	 	30/10/08
	 	N/A
	 	- Charge, over debts
and Dedicated Accounts where payments are
made by debtors of Lanai in
connection with a NP Factoring
Agreement
	 

	 	 	 	 	 	 	 	 	 	- Cross security interests over the

194

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Expiration	 	 
	Category	 	Creditor	 	Debtor	 	Signing Date	 	Date	 	Description
	 

	 	 	 	 	 	 	 	 	 	Current Accounts of
Na Pali SAS,
Emerald Coast SAS,
Sumbawa SL, and
Lanai Ltd. opened
in the books of GE
Factofrance
	Leasing

	 	Natixis Lease
	 	Na Pali
	 	29/11/2007
	 	31/10/2014
	 	Leasing of racks
	Leasing

	 	Natixis Lease
	 	Na Pali
	 	27/01/2009
	 	30/09/2015
	 	Leasing of racks

195

 

Schedule 12

List of Loans

See the attached.

196

 

Schedule 12
List of Long Term Receivable 31 July 2009 in K€

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding RECEIVABLE	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Amount	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Duration	 	 	 	 	 	 	 	Klocal	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Company	 	Counterpart	 	(years)	 	Date	 	Currency	 	 	currency	 	 	Rate	 	 	Amount K€	 	 	Total	 	 	Long term	 	 	Short term	 
	Long term Receivable
	 	NAPALI	 	(Illegible)	 	ND	 	(Illegible)	 	ZAR	 	 	10 667	 	 	 	11.02	 	 	 	2 564	 	 	 	2 564	 	 	 	2 564	 	 	 	 	 
	 
	 	 	 	(Illegible)	 	ND	 	(Illegible)	 	ZAR	 	 	26 396	 	 	 	11.02	 	 	 	6 826	 	 	 	6 826	 	 	 	6 826	 	 	 	 	 
	 
	 	 	 	(Illegible)	 	3 years	 	(Illegible)	 	PLN	 	 	5 500	 	 	 	4.16	 	 	 	1 322	 	 	 	1 322	 	 	 	1 322	 	 	 	 	 
	 
	 	 	 	(Illegible)	 	4 years	 	(Illegible)	 	PLN	 	 	1 401	 	 	 	4.16	 	 	 	337	 	 	 	337	 	 	 	337	 	 	 	 	 
	 
	 	 	 	(Illegible)	 	4 years	 	(Illegible)	 	PLN	 	 	50	 	 	 	4.16	 	 	 	12	 	 	 	12	 	 	 	12	 	 	 	0	 
	 
	 	 	 	(Illegible)	 	5 years	 	(Illegible)	 	 	€	 		525	 	 	 	1.00	 	 	 	525	 	 	 	525	 	 	 	525	 	 	 	0	 
	 
	 	 	 	(Illegible)	 	5 years	 	(Illegible)	 	PLN	 	 	13 623	 	 	 	4.16	 	 	 	3 275	 	 	 	3 275	 	 	 	3 275	 	 	 	0	 
	 
	 	 	 	(Illegible)	 	4 years	 	(Illegible)	 	PLN	 	 	5 667	 	 	 	4.16	 	 	 	1 362	 	 	 	1 362	 	 	 	1 362	 	 	 	0	 
	 
	 	 	 	(Illegible)	 	5 years	 	(Illegible)	 	PLN	 	 	300	 	 	 	4.16	 	 	 	72	 	 	 	72	 	 	 	72	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	16 295	 	 	 	16 295	 	 	 	16 295	 	 	 	0	 
	 
	 	Pilot	 	(Illegible)	 	 	 	 	 	 	€	 		1 240	 	 	 	 	 	 	 	1 240	 	 	 	1 240	 	 	 	1 240	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1 240	 	 	 	1 240	 	 	 	1 240	 	 	 	0	 

197

 

Schedule 13

Guarantees and Off-Balance Sheet Liabilities

See the attached.

198

 

Schedule 13

Guarantees and Off-Balance Sheet Liabilities

As of July 29, 2009

I. General

NA PALI

	•	 	Granting in favor of COFIGEST of a joint and several guarantee for the obligations of CARIBOO
pursuant to a commercial lease agreement, 136, rue de Rivoli, Paris, for the duration of the
lease and for an unlimited amount.
	 
	•	 	Granting in favor of Crédit Agricole of a guarantee in connection with the Credit facilities
granted to the EMERALD COAST SAS.
	 
	•	 	Granting in favor of Blueco Ltd of a joint and several guarantee for undertakings made by
sub-subsidiary MOLOKAI, pursuant to the commercial lease agreement for Unit L003, Lower Level,
Bluewater, Kent; United Kingdom, for the duration of the lease and for an unlimited amount.
	 
	•	 	Granting of a guarantee to Banque Populaire Natixis for indirect German subsidiary MAKAHA for a total of EUR 33,183.
	 
	•	 	Granting of six guarantees to BNP Paribas for indirect Spanish subsidiary BAKIO for a total of EUR 492,434.
	 
	•	 	Granting of three guarantees to BNP Paribas for indirect Italian subsidiary MOOREA for a total of EUR 92,223.
	 
	•	 	Granting of a counter-guarantee to BNP Amsterdam for indirect Dutch subsidiary PUKALANI for a total of EUR 9,659 for TCN Sports Business Center Holding BV.
	 
	•	 	Granting of a guarantee to BNP for Spanish subsidiary SUMBAWA for a total of EUR 42,000.
	 
	•	 	Granting in favor of Crédit Agricole of a guarantee for the L/C facilities granted to EMERALD COAST.
	 
	•	 	Since fiscal year 1997/1998, the company has granted to its subsidiaries several cancellation
of debts including betterment clauses. As of October 31, 2008, the aggregate amount of these
abandoned loans was EUR 23,277,086.
	 
	•	 	Since fiscal year 2002/2003, the company has granted to its indirect subsidiaries several
agreements to abandon trade receivables. As of October 31, 2008, the aggregate amount of these
abandoned trade receivables was EUR 3,752,000.
	 
	•	 	Guarantee received from Société Générale for the payment of amounts owing to SAS COVERIS
pursuant to works for the extension of Na Pali’s headquarter for a total of EUR 2,139,644.

199

 

	•	 	Guarantee received from Société Générale for the payment of amounts owing to SAS ATELIER
D’AGENCEMENT pursuant to works for the extension of Na Pali’s headquarter for a total of EUR
647,036.
	 
	•	 	Guarantee received from Société Générale for the payment of amounts owing to SA COPPET pursuant to works for the extension of Na Pali’s headquarter for a total of EUR 4,089,442.48.

EMERALD COAST

	•	 	NA PALI SAS has acted as joint and several guarantor for the credit facilities granted by Credit Agricole to EMERALD COAST.

CARIBOO

	•	 	Guarantee received from Société Générale in favor of SARL CARIBOO in relation to SA BILL TORNADE for a total of EUR 91,469.41.
	 
	•	 	The going concern (fonds de commerce) of Nantes, Quiksilver Hossegor, Roxy Bordeaux, Lorient,
Roxy Carre Sénart, Etrembières, Quiksilver Aulnay, Roxy Aulnay, have been pledged in the context
of a loan of October 2008 with CIC for a total of EUR 4,825,448.

II. NP Factoring Agreements

	•	 	Assignment of the right to indemnification under insurance policies (Délégation du droit aux indemnites d’assurance) pursuant to the NP Factoring Agreement.
	 
	•	 	Guarantee fund and other special reserves pursuant to the NP Factoring Agreements.
	 
	•	 	Undertaking to assign the relevant receivables pursuant to the NP Factoring Agreements.
	 
	•	 	Assignment or pledge of the credit balance of certain bank accounts of Na Pali, Emerald Coast, Sumbawa and Lanai in connection with the NP Factoring Agreements.

200

 

Schedule 14

Existing Financial Indebtedness

See the attached.

201

 

Schedule 14
Other Debt as of 31.07.09 in KEuro

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding debt    	 
	 	 	 	 	 	 	 	 	 	 	 	 	Amount	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Duration	 	 	 	 	 	Klocal	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Company	 	Bank	 	(years)	 	Date	 	Currency	 	currency	 	 	Amount K€	 	 	Total	 	 	Long term	 	 	Short term	 
	    Group Debt
	 	NEW PIER	 	Quiksilver Holding	 	5	 	feb-06	 	ZAR	 	 	59503	 	 	 	5404	 	 	 	5404	 	 	 	5404	 	 	 	 	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5404	 	 	 	5404	 	 	 	0	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    Leasing
	 	NAPALI	 	Natixis Lease	 	7	 	oct-08	 	€	 		150	 	 	 	150	 	 	 	129	 	 	 	107	 	 	 	21	 
	     
	 	 	 	Natixis Lease	 	7	 	nov-07	 	€	 		1136	 	 	 	1136	 	 	 	852	 	 	 	690	 	 	 	262	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	981	 	 	 	797	 	 	 	184	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    Others Lt Debt
	 	NAPALI & subsidiaries	 	Profit sharing Banques (interest)	 	 	 	 	 	€	 	 	 	 	 	 	 	 	 		7285	 	 	 	6447	 	 	 	838	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	470	 	 	 	 	 	 	 	470	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7756	 	 	 	6447	 	 	 	1308	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	    TOTAL OTHER DEBT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	14141	 	 	 	12649	 	 	 	1492	 
	     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

202

 

Schedule 15

Existing Letters of Credit

203

 

Schedule 15
Existing Letters of Credit

as of 31.07.09

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding debt	 
	 	 	 	 	 	 	 	 	 	 	 	 	Amount	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Duration	 	 	 	 	 	Klocal	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Company	 	Bank	 	(years)	 	Date	 	Currency	 	currency	 	 	Amount K€	 	 	Total	 	 	Long term	 	 	Short term	 
	Letters of Credit
	 	NAPALI	 	BNP	 	 	 	 	 	€	 	 	 	 	 	 	738	 	 	 	738	 	 	 	 	 	 	 	738	 
	 
	 	 	 	NATIXIS	 	 	 	 	 	€	 	 	 	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	0	 
	 
	 	 	 	SG	 	 	 	 	 	€	 	 	 	 	 	 	911	 	 	 	911	 	 	 	 	 	 	 	911	 
	 
	 	 	 	BPSO	 	 	 	 	 	€	 	 	 	 	 	 	1610	 	 	 	1610	 	 	 	 	 	 	 	1610	 
	 
	 	 	 	CREDIT AGRICOLE	 	 	 	 	 	€	 	 	 	 	 	 	2510	 	 	 	2510	 	 	 	 	 	 	 	2510	 
	 
	 	 	 	HSBC	 	 	 	 	 	€	 	 	 	 	 	 	2547	 	 	 	2547	 	 	 	 	 	 	 	2547	 
	 
	 	 	 	CIC	 	 	 	 	 	€	 	 	 	 	 	 	1090	 	 	 	1090	 	 	 	 	 	 	 	1090	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9406	 	 	 	9406	 	 	 	0	 	 	 	9406	 
	Letters of Credit
	 	EMERALD COAST	 	CREDIT AGRICOLE	 	 	 	 	 	€ 	 	 	 	 	 	 	3327	 	 	 	3327	 	 	 	 	 	 	 	3327	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3327	 	 	 	3327	 	 	 	0	 	 	 	3327	 
	TOTAL LETTERS OF CREDIT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	12733	 	 	 	12733	 	 	 	0	 	 	 	12733	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

204

 

SIGNATURES

	 	 	 
	 

	 	THE COMPANY
	 
	 	 
	 

	 	PILOT SAS
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	THE BORROWERS
	 
	 	 
	 

	 	PILOT SAS
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	Address:
	 
	 	 
	 

	 	26/28 rue Danielle Casanova
	 

	 	75002 Paris
	 

	 	Attn:
	 

	 	Fax:
	 
	 	 
	 

	 	NA PALI SAS
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	THE ORIGINAL GUARANTORS
	 
	 	 
	 

	 	QUIKSILVER, INC.
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	PILOT SAS
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:

205

 

	 	 	 
	 

	 	THE ARRANGERS
	 
	 	 
	 

	 	BNP PARIBAS
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	CRÉDIT LYONNAIS
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	SOCIÉTÉ GÉNÉRALE CORPORATE &

 INVESTMENT BANKING
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	THE AGENT
	 
	 	 
	 

	 	BNP PARIBAS
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	Address:
	 
	 	 
	 

	 	BNP Paribas
	 

	 	37 place du Marché Saint Honoré
	 

	 	75031 Paris Cedex 01 (France)
	 

	 	Tel.
	 

	 	Fax
	 

	 	E-mail:

206

 

	 	 	 
	 

	 	THE SECURITY AGENT
	 
	 	 
	 

	 	SOCIETE GENERALE
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	Address:
	 
	 	 
	 

	 	Attn:
	 

	 	Fax:
	 
	 	 
	 

	 	THE ISSUING BANK
	 
	 	 
	 

	 	CAISSE REGIONALE DE CREDIT
 AGRICOLE MUTUEL
PYRENEES-

GASCOGNE
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:

207

 

	 	 	 
	 

	 	THE ORIGINAL LENDERS
	 
	 	 
	 

	 	BANQUE POPULAIRE DU SUD OUEST
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	BNP PARIBAS
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	CAISSE REGIONALE DE CREDIT
 AGRICOLE MUTUEL
PYRENEES-

GASCOGNE
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	CIC — SOCIETE BORDELAISE
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	CREDIT LYONNAIS
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	HSBC FRANCE
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:

208

 

	 	 	 
	 

	 	NATIXIS
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:
	 
	 	 
	 

	 	SOCIETE GENERALE
	 
	 	 
	 

	 	By:
	 
	 	 
	 

	 	Title:

209

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]