Document:

exv10w1

Exhibit 10.1

SECOND AMENDMENT TO CREDIT AGREEMENT

     This Second Amendment to Credit Agreement (this “Second Amendment”) dated as of
November 29, 2010 is entered into 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, the
“Domestic Borrowers”);

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

     the Persons named on Schedule 1.02 hereto (collectively, the “Guarantors”);

     the Lenders 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, Swing Line Lender
and L/C Issuer; and

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

	 	 	in consideration of the mutual covenants herein contained and benefits to be derived
herefrom.

WITNESSETH:

     Reference is made to that certain Credit Agreement dated as of July 31, 2009, as amended by a
First Amendment to Credit Agreement dated as of August 27, 2010 (as further amended, modified,
supplemented or restated and in effect from time to time, the “Credit Agreement”) by and
among (i) Quiksilver Americas, Inc., as the Lead Borrower for itself and the other Borrowers party
thereto, (ii) such other Borrowers, (iii) Quiksilver Canada Corp., as the Canadian Borrower, (iv)
the Guarantors party thereto, (v) the Administrative Agent, (vi) the Co-Collateral Agents and (vii)
the Lenders party thereto.

     The Borrowers have requested that certain modifications be made to the Credit Agreement with
respect to the refinancing of certain Permitted Indebtedness. The Lenders have agreed to such
modifications on the terms set forth herein.

     NOW, THEREFORE, in consideration of the mutual agreements herein contained and benefits to be
derived herefrom, the parties hereto agree as follows:

	1.	 	Definitions. Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Credit Agreement.

	2.	 	Amendments to Article I. The provisions of Article I of the Credit Agreement are
hereby amended as follows:

1

 

	 	a.	 	Clause (k) of the definition of the definition of “Permitted Indebtedness” is
hereby deleted in its entirety and the following substituted in its stead:

     (k) (i) 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 and (ii) in connection with the refinancing of the Guarantees
described in the foregoing clause (i) of this clause (k) and clause (n) of the
definition of “Permitted Indebtedness” and Indebtedness relating thereto, Guarantees
of obligations with respect to senior unsecured notes issued by a Foreign Subsidiary
in an aggregate principal amount not to exceed €200,000,000 and any Permitted
Amendment/Refinancing of such obligations.

	 	b.	 	Clause (m) of the definition of “Permitted Indebtedness” is hereby deleted in
its entirety.

	3.	 	Amendments to Article VII.

	 	a.	 	Section 7.09 of the Credit Agreement is hereby amended by deleting the “.” at
the end of such Section and inserting the following in its stead:
	 
	 	 	 	or (k) transactions pursuant to clause (k) of the definition of “Permitted
Indebtedness”.
	 
	 	b.	 	The following text contained in the second through fourth line of Section 7.10
of the Credit Agreement:

	 	 	(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)
	 
	 	 	is hereby deleted in its entirety and the following substituted in its stead:
	 
	 	 	(other than (w) this Agreement or any other Loan Document or (x) the Term Loan Credit
Agreements or any document relating thereto or (y) the Senior Note Indenture or (z) any
documentation relating to any senior unsecured notes described in clause (k)(ii) of the
definition of “Permitted Indebtedness” or any Permitted Amendment/Refinancing of any of the
foregoing)

	4.	 	Conditions to Effectiveness. This Second Amendment shall become effective upon
satisfaction of each of the following conditions precedent:

	 	a.	 	This Second Amendment shall have been duly executed and delivered by the Loan
Parties, the Agents and all of the Lenders, and the Administrative Agent shall have
received a fully executed copy hereof.
	 
	 	b.	 	The Administrative Agent shall have received evidence reasonably requested by
it prior to the date hereof that all requisite corporate and other action necessary for
the valid execution, delivery and performance by the Loan Parties of this Second
Amendment has been taken.

	5.	 	Confirmation of Representations and Warranties. Each Loan Party hereby represents
and warrants to the Agents and the Lenders that (a) the representations and warranties of such
Loan Party contained in Article III of the Credit Agreement, and in each other Loan Document
(after giving effect to the amendments set forth herein) to which it is a party are true and
correct in all

2

 

	 	 	material respects on and as of such date as though made on and as of such date, except to
the extent that such representations and warranties expressly relate solely to an earlier
date (in which case such representations and warranties are true and correct in all material
respects on and as of such date); (b) no Default or Event of Default has occurred and is
continuing or would result from the effectiveness of this Second Amendment; and (c) no event
has occurred after July 31, 2010 that could reasonably be expected to have a material
adverse effect on the condition (financial or otherwise), operations, or assets of the
Borrower and Guarantors, taken as a whole.

	6.	 	Miscellaneous.

	 	a.	 	All terms and conditions of the Credit Agreement and the other Loan Documents,
as amended hereby, remain in full force and effect.
	 
	 	b.	 	The Borrowers shall pay on demand all reasonable and documented out-of-pocket
costs and expenses of the Agents incurred in connection with the preparation,
negotiation, execution and delivery of this Second Amendment, including, without
limitation, reasonable and documented fees of their counsel.
	 
	 	c.	 	This Second Amendment 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. Delivery of an
executed counterpart of a signature page hereto 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 hereof.
	 
	 	d.	 	This Second Amendment expresses the entire understanding of the parties with
respect to the matters set forth herein and supersedes all prior discussions or
negotiations hereon.
	 
	 	e.	 	Any determination that any provision of this Second Amendment 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 Second Amendment.
	 
	 	f.	 	THIS SECOND AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS
PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIATIONS LAW).

[SIGNATURE PAGES FOLLOW]

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     IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed as 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:  	 	 
	 

 

 

	 	 	 	 	 
	 	QS RETAIL, INC.,

as a Domestic Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	QUIKSILVER, INC.,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	QUIKSILVER CANADA CORP.,

as the Canadian Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	QS RETAIL CANADA CORP.,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	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:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	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:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL
CORPORATION, 
as Co-Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION, as a Domestic Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION, as a Canadian Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Schedule 1.01

DOMESTIC 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

GUARANTORS OF OBLIGATIONS

	1.	 	Quiksilver, Inc.

GUARANTORS OF CANADIAN LIABILITIES

	2.	 	QS Retail Canada Corp.exv10w2

Exhibit 10.2

FIRST AMENDMENT TO TERM LOAN AGREEMENT

     This First Amendment to Term Loan Agreement (this “First Amendment”) dated as of
November 29, 2010 is entered into among:

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

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

     the Lenders party hereto; and

     BANK OF AMERICA, N.A., as Administrative Agent, and Collateral Agent;

     in consideration of the mutual covenants herein contained and benefits to be derived
herefrom.

WITNESSETH:

     Reference is made to that certain Term Loan Agreement dated as of October 27, 2010 (as in
effect, the “Term Loan Agreement”) by and among (i) Quiksilver Americas, Inc., as the
Borrower, (ii) Quiksilver Inc., (iii) the Administrative Agent and the Collateral Agent and (iv)
the Lenders party thereto.

     The Borrower has requested that certain modifications be made to the Term Loan Agreement with
respect to the refinancing of certain Permitted Indebtedness. The Lenders have agreed to such
modifications on the terms set forth herein.

     NOW, THEREFORE, in consideration of the mutual agreements herein contained and benefits to be
derived herefrom, the parties hereto agree as follows:

	1.	 	Definitions. Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Term Loan Agreement.

	2.	 	Amendments to Article I. The provisions of Article I of the Term Loan Agreement are
hereby amended as follows:

	 	a.	 	The definition of “Americas Leverage Ratio” is hereby amended by adding the
following at the end of clause (a) thereof:

	 	 	 	provided that for purposes of calculating Americas Leverage Ratio only, the
Indebtedness described in clause (d) of the definition of “Permitted Indebtedness”
shall not be included unless and until demand is made on such Guarantee;

	 	b.	 	The definition of the definition of “Permitted Indebtedness” is hereby amended
by deleting the “and” at the end of clause (c), re-lettering clause (d) as clause (e)
and inserting the following new clause:

     (d) Guarantees of obligations with respect to senior unsecured notes issued by
a Foreign Subsidiary in an aggregate principal amount not to exceed €200,000,000.

	3.	 	Amendments to Article II.
	 
	 	 	The final sentence of Section 2.04(b) of the Term Loan Agreement is hereby deleted in its
entirety and the following substituted in its stead:

1

 

	 	 	Notwithstanding the foregoing, in the case of a Disposition of the DC Shoes Business, an
amount equal to the Net Proceeds of such Disposition may be utilized first, to
prepay loans and/or cash collateralize other obligations under the ABL Credit Agreement;
second, to prepay the loans then outstanding under Facility A (as defined under the
French Credit Agreement) but only until any Indebtedness described in clause (d) of the
definition of “Permitted Indebtedness is incurred (it being the intention of the parties
that this clause second not apply to any Indebtedness amending, amending and restating,
replacing or substituting such Facility A); and third, to prepay the Loans

	4.	 	Amendments to Article VI.
	 
	 	 	The provisions of Section 6.01(d) of the Term Loan Agreement are hereby amended by adding
the words “or the Indebtedness described in clause (d) of the definition of “Permitted
Indebtedness,” after the words “the French Credit Agreement.”
	 
	5.	 	Amendments to Article VII.

	 	a.	 	Section 7.09 of the Term Loan Agreement is hereby amended by deleting the “.”
at the end of such Section and inserting the following in its stead:
	 
	 	 	 	or (j) Indebtedness incurred pursuant to clause (d) of the definition of “Permitted
Indebtedness”.
	 
	 	b.	 	The provisions of clause (F) in the proviso to Section 7.10 of the Term Loan
Agreement are hereby amended by adding the words “or the documentation governing the
Indebtedness described in clause (d) of the definition of “Permitted Indebtedness” at
the end of such clause.

	6.	 	Amendments to Article VIII.
	 
	 	 	The provisions of Section 8.01(e) of the Term Loan Agreement are hereby amended as follows:

	 	a.	 	by deleting “(excluding Indebtedness under the French Credit Agreement)”
wherever the same appears in clause (i)(B) thereof; and
	 
	 	b.	 	by deleting clause (i)(C) thereof in its entirety.

	7.	 	Conditions to Effectiveness. This First Amendment shall become effective upon the
due execution and delivery by the Loan Parties, the Agents and the Required Lenders, and the
receipt by the Administrative Agent of a fully executed copy hereof.

	8.	 	Confirmation of Representations and Warranties. Each Loan Party hereby represents
and warrants to the Agents and the Lenders that (a) the representations and warranties of such
Loan Party contained in Article III of the Term Loan Agreement, and in each other Loan
Document (after giving effect to the amendments set forth herein) to which it is a party are
true and correct in all material respects on and as of such date as though made on and as of
such date, except to the extent that such representations and warranties expressly relate
solely to an earlier date (in which case such representations and warranties are true and
correct in all material respects on and as of such date); (b) no Default or Event of Default
has occurred and is continuing or would result from the effectiveness of this First Amendment;
and (c) no event has occurred after July 31, 2010, that could reasonably be expected to have a
material adverse effect on the condition (financial or otherwise), operations, or assets of
the Borrower and Guarantors, taken as a whole.

2

 

	9.	 	Miscellaneous.

	 	a.	 	All terms and conditions of the Term Loan Agreement and the other Loan
Documents, as amended hereby, remain in full force and effect.
	 
	 	b.	 	The Borrowers shall pay on demand all reasonable and documented out-of-pocket
costs and expenses of the Agents incurred in connection with the preparation,
negotiation, execution and delivery of this First Amendment, including, without
limitation, reasonable and documented fees of their counsel.
	 
	 	c.	 	This First Amendment 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. Delivery of an
executed counterpart of a signature page hereto 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 hereof.
	 
	 	d.	 	This First Amendment expresses the entire understanding of the parties with
respect to the matters set forth herein and supersedes all prior discussions or
negotiations hereon.
	 
	 	e.	 	Any determination that any provision of this First Amendment 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
First Amendment.
	 
	 	f.	 	THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS
PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIATIONS LAW).

[SIGNATURE PAGES FOLLOW]

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed as
the date first above written.

	 	 	 	 	 
	 	QUIKSILVER AMERICAS, INC.,

as Borrower

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	QUIKSILVER, INC.,

as a Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	DC SHOES, INC.,

as a Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	HAWK DESIGNS, INC.,

as a Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MERVIN MANUFACTURING, INC.,

as a Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	QS WHOLESALE, INC.,

as a Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	QS RETAIL, INC.,

as a Guarantor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., 
as Administrative Agent and as
a Collateral Agent and as a Lender

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:

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