Document:

EX-4.1

 

Exhibit 4.1

	   	     FIRST AMENDMENT, dated as of June 22, 2005 (this “Amendment”), to
the Credit Agreement, dated as of November 14, 2002, as amended and restated as of
December 15, 2004 (as so amended and restated and in effect on the date hereof, the
“Credit Agreement”), among ABERCROMBIE & FITCH MANAGEMENT CO., a Delaware
corporation (the “Borrower”), ABERCROMBIE & FITCH CO., a Delaware
corporation (the “Parent”), the several banks and other financial
institutions and entities from time to time parties thereto (the
“Lenders”), and NATIONAL CITY BANK, as administrative agent (the
“Administrative Agent”).

     WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make certain Loans to
the Borrower; and

     WHEREAS, the Borrower has requested that certain provisions of the Credit Agreement be
modified in the manner provided for in this Amendment, and the Required Lenders are willing to
agree to such modifications as provided for in this Amendment.

     NOW, THEREFORE, the parties hereto hereby agree as follows:

     SECTION 1. Defined Terms. Capitalized terms used and not defined herein shall have
the meanings given to them in the Credit Agreement, as amended hereby.

     SECTION 2. Amendment to the Credit Agreement. (a) Section 1.01 of the Credit
Agreement is hereby amended by inserting the following new definition in the appropriate
alphabetical order therein:

	   	     “Consolidated Tangible Assets” means, at any time, the aggregate
amount of assets of the Parent and the Subsidiaries, minus all goodwill,
trade names, trademarks, patents and other intangible assets of the Parent and the
Subsidiaries, all as set forth in the consolidated balance sheet of the Parent and
the Subsidiaries most recently delivered by the Borrower pursuant to Section 5.01
on such date of determination, determined on a consolidated basis in accordance
with GAAP.

     (b) Section 6.01(g) of the Credit Agreement is hereby amended by replacing the amount
“$150,000,000” in the third line thereof with the amount “$100,000,000”.

     (c) Section 6.01(h) of the Credit Agreement is hereby amended by replacing the amount
“$20,000,000” in the second line thereof with the amount “$50,000,000”.

     (d) Section 6.05(c) of the Credit Agreement is hereby amended to read in its entirety as
follows:

 

 

	   	     “(c) additional purchases of or investments by the Parent, the Borrower or any
Subsidiary in the capital stock of Subsidiaries, including Foreign Subsidiaries,
joint ventures or the capital stock, assets, obligations or other securities of or
interests in other Persons, and loans and advances by the Parent, the Borrower or
any Domestic Subsidiary to or in favor of, and Guarantees by the Parent, the
Borrower or any Domestic Subsidiary of the obligations of, Foreign Subsidiaries, in
an amount in the aggregate at any time outstanding which does not exceed 30% of
Consolidated Tangible Assets;”

     SECTION 3. No Other Amendments; Confirmation. Except as expressly amended, waived,
modified and supplemented hereby, the provisions of the Credit Agreement are and shall remain in
full force and effect.

     SECTION 4. Representations and Warranties. To induce the other parties hereto to
enter into this Amendment, the Borrower represents to each of the Lenders and the Administrative
Agent that:

     (i) after giving effect to this Amendment, the representations and warranties of the Borrower
set forth in the Credit Agreement are true and correct in all material respects on the date hereof
with the same effect as if made on the Effective Date (as defined below);

     (ii) after giving effect to this Amendment, no Default or Event of Default has occurred and
is continuing under the Credit Agreement; and

     (iii) this Amendment has been duly executed and delivered by each of the Parent and the
Borrower and constitutes a legal, valid and binding obligation of each of the Parent and the
Borrower, enforceable in accordance with its terms.

     SECTION 5. Work Fee. In consideration of the agreements of the Lenders contained
herein, the Borrower agrees to pay, through the Administrative Agent, to each Lender that returns
an executed signature page of this Amendment not later than 5:00 p.m., New York City time, on June
22, 2005 a work fee (the “Work Fee”) equal to $2,500; provided that no Work Fees
shall be payable hereunder if this Amendment does not become effective as provided under Section 6
on or prior to June 22, 2005. The Work Fees shall be payable in immediately available funds on the
next business day following the Effective Date (as defined below). Once paid, the Work Fees shall
not be refundable.

     SECTION 6. Effectiveness. This Amendment shall become effective as of the date (the
“Effective Date”) upon which the Administrative Agent shall have received counterparts of
this Amendment that, when taken together, bear the signatures of the Parent, the Borrower and the
Required Lenders under the Credit Agreement.

2

 

     SECTION 7. Effect of the Amendment. Except as expressly set forth herein, this
Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, amend, or
otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the
Credit Agreement and shall not alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Credit Agreement, all of which
are ratified and affirmed in all respects and shall continue in full force and effect. Nothing
herein shall be deemed to entitle the Borrower to a consent to, or a waiver, amendment,
modification or other change of, any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement in similar or different circumstances. This Amendment shall
apply and be effective with respect to the matters expressly referred to herein. After the
Effective Date, any reference to the Credit Agreement shall mean such Credit Agreement, as modified
hereby.

     SECTION 8. Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF
OHIO, TO THE FULLEST EXTENT PERMITTED BY LAW, THE BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY
WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF OHIO GOVERNS
THIS AMENDMENT.

     SECTION 9. Costs and Expenses. The Borrower agrees to reimburse the Administrative
Agent for its reasonable out-of-pocket expenses in connection with this Amendment, including the
reasonable fees, charges and disbursements of Cravath, Swaine & Moore LLP, counsel for the
Administrative Agent.

     SECTION 10. Headings. The headings of this Amendment are for purposes of reference
only and shall not limit or otherwise affect the meaning hereof.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
respective authorized officers as of the day and year first written above.

	 	 	 	 	 	 
	 	 	ABERCROMBIE & FITCH MANAGEMENT CO.,

	 

	 	by:
	 	/s/ Peter A. Hutt
	 

	 	 	 	 
	 

	 	 	 	Name: Peter A. Hutt

Title: VP and Treasurer
	 	 
	 	 
	 	 	ABERCROMBIE & FITCH CO.,

	 

	 	by:
	 	/s/ Peter A. Hutt
	 

	 	 	 	 
	 

	 	 	 	Name: Peter A. Hutt

Title: Assistant Treasurer
	 	 
	 	 
	 	 	NATIONAL CITY BANK, individually and as

Administrative Agent,

	 

	 	by:
	 	/s/ Ralph A. Kaparos
	 

	 	 	 	 
	 

	 	 	 	Name: Ralph A. Kaparos

Title: Senior Vice President

4

 

	   	SIGNATURE PAGE TO FIRST AMENDMENT DATED AS OF
JUNE 22, 2005 TO THE ABERCROMBIE & FITCH CREDIT
AGREEMENT DATED AS OF NOVEMBER 14, 2002, AS
AMENDED AND RESTATED AS OF DECEMBER 15, 2004

	 	 	 	 	 	 
	 

	 	BANK OF AMERICA, N.A.,

	 

	 	by:
	 	/s/ Kathleen Dimock
	 

	 	 	 	 
	 

	 	 	 	Name: Kathleen Dimock

Title: Managing Director
	 	 
	 	 
	 

	 	THE BANK OF NEW YORK,

	 

	 	by:
	 	/s/ Randolph E.J. Medrano
	 

	 	 	 	 
	 

	 	 	 	Name: Randolph E.J. Medrano

Title: Vice President
	 	 
	 	 
	 

	 	FIFTH THIRD BANK,

	 

	 	by:
	 	/s/ Kristie L. Nicolosi
	 

	 	 	 	 
	 

	 	 	 	Name: Kristie L. Nicolosi

Title: Assistant Vice President

5

 

	 	 	 	 	 	 
	 

	 	THE HUNTINGTON NATIONAL BANK,

	 
	 	by:	 	/s/ Frederick G. Hadley
	 

	 	 	 	 
	 

	 	 	 	Name: Frederick G. Hadley

Title: Senior Vice President
	 	 
	 	 
	 

	 	JPMORGAN CHASE BANK, N.A.,

	 

	 	by:
	 	/s/ Craig Transue
	 

	 	 	 	 
	 

	 	 	 	Name: Craig Transue

Title: Vice President
	 	 
	 	 
	 

	 	LASALLE BANK NATIONAL ASSOCIATION,

	 

	 	by:
	 	/s/ Ted Lape
	 

	 	 	 	 
	 

	 	 	 	Name: Ted Lape

Title: Senior Vice President
	 	 
	 	 
	 

	 	PNC BANK, NATIONAL ASSOCIATION,

	 

	 	by:
	 	/s/ Jeffrey L. Stein
	 

	 	 	 	 
	 

	 	 	 	Name: Jeffrey L. Stein

Title: Vice President
	 	 
	 	 
	 

	 	U.S. BANK NATIONAL ASSOCIATION,

	 

	 	by:
	 	/s/ Jennifer L. Thurston
	 

	 	 	 	 
	 

	 	 	 	Name: Jennifer L. Thurston

Title: Asst. Vice President

6exv10w1

 

Exhibit 10.1

[TEKNIK DIGITAL ARTS, INC. LETTERHEAD]

May 23, 2005

Keith Dimond

6312 E. Peakview Road

Cave Creek, AZ 85331

	Re:	 	Engagement Letter

Dear Mr. Dimond,

This letter will confirm our offer for you, Keith Dimond, hereinafter, “Employee”, to be employed
as Chief Financial Officer for Teknik Digital Arts Inc., hereinafter, “Company”, beginning June 16,
2005. In this role Employee will be primarily responsible for the Company’s financial plans,
budgeting, accounting controls and procedures, as well as compliance with SEC filings.

In consideration for Employee accepting this position, the Company will compensate Employee at an
hourly rate of $75.00 per hour payable with the Company’s payroll on the 1st and the
15th of each month plus any incidental out-of-pocket costs incurred on the Company’s
behalf. In addition, the Company has issued Employee 150,000 non-qualified stock options on March
31, 2005, vesting immediately, exercisable over a three-year term ending March 31, 2008 with an
exercise price of $1.00 per share. Company also agrees to provide full coverage to Employee under
the Company’s Directors’ and Officers’ Insurance Policy effective immediately.

Both the Company and Employee agree that in the event that litigation should arise involving any
work produce provided by Employee, all suits shall be filed in Maricopa County Superior Court and
that the laws of the State of Arizona shall govern any proceedings. Both parties also agree to
waive any rights to a jury trial and a judge and not a jury shall decide on any matters not
arbitrated.

In the event litigation occurs, Company further agrees to indemnify Employee for any legal fees
incurred, unless Employee is found to be grossly negligent. In addition, Company agrees that
damages sought from Employee will be limited to amounts paid to Employee for professional services.

This arrangement will remain valid until such time as the Company or Employee voluntarily
terminates the arrangement.

Sincerely,

/s/ John Ward                    

John Ward, CEO

Teknik Digital Arts Inc.

KEITH DIMOND ACCEPTANCE:

Name:Keith Dimond                    

Signature:/s/ Keith Dimond

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