Document:

Exhibit 10.1

 

Exhibit 10.1

EXECUTION COPY

AMENDMENT NO. 5

Dated as of February 1, 2008

to

CREDIT AGREEMENT

Dated as of September 14, 2005

          THIS AMENDMENT NO. 5 (“Amendment”) is made as of February 1, 2008 (the “Effective
Date”) by and among Pacific Sunwear of California, Inc., a California corporation (the
“Borrower”), the financial institutions listed on the signature pages hereof and JPMorgan
Chase Bank, National Association, as Administrative Agent (the “Administrative Agent”),
under that certain Credit Agreement dated as of September 14, 2005 by and among the Borrower, the
Lenders and the Administrative Agent (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”). Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings given to them in the Credit Agreement.

          WHEREAS, the Borrower has requested that certain modifications be made to the Credit
Agreement;

          WHEREAS, the Borrower, the Lenders party hereto and the Administrative Agent have agreed to
amend the Credit Agreement on the terms and conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Borrower, the Lenders party hereto and the Administrative Agent hereby
agree to the following amendments to the Credit Agreement.

          1. Amendments to Credit Agreement. Effective as of the Effective Date but subject to
the satisfaction of the conditions precedent set forth in Section 2 below, the Credit
Agreement is hereby amended as follows:

          (a) Section 2.01 of the Credit Agreement is hereby amended restate clause (c) of the
first sentence thereof in its entirety as follows:

     “(c) solely during the Borrower’s fiscal quarters ending on February 2, 2008 and on May
3, 2008, the sum of the total outstanding Loans exceeding $75,000,000.”

 

 

          (b) Section 6.08(a) of the Credit Agreement is hereby amended to restate clause (3)
of the proviso appearing at the end thereof to read as follows:

     “(3) solely with respect to the fiscal quarters of the Borrower ending on November 3,
2007 and on February 2, 2008, the Borrower will not permit such ratio to be less than 1.1 to
1.0.”

          2. Conditions of Effectiveness. The effectiveness of this Amendment is subject to the
conditions precedent that the Administrative Agent shall have received (i) counterparts of this
Amendment duly executed by the Borrower, the Required Lenders and the Administrative Agent and (ii)
counterparts of the Consent and Reaffirmation attached hereto duly executed by the Subsidiary
Guarantors.

          3. Representations and Warranties of the Borrower. The Borrower hereby represents and
warrants as follows:

          (a) This Amendment and the Credit Agreement as amended hereby constitute legal, valid and
binding obligations of the Borrower and are enforceable against the Borrower in accordance with
their 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.

          (b) As of the date hereof and giving effect to the terms of this Amendment, (i) no Default
shall have occurred and be continuing and (ii) the representations and warranties of the Borrower
set forth in the Credit Agreement, as amended hereby, are true and correct in all material respects
as of the date hereof (other than such representations and warranties as are made of a specific
earlier date, in which case such representations and warranties shall be true and correct in all
material respects as of such earlier date).

          4. Reference to and Effect on the Credit Agreement.

          (a) Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit
Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as
amended hereby.

          (b) Except as specifically amended above, the Credit Agreement and all other documents,
instruments and agreements executed and/or delivered in connection therewith shall remain in full
force and effect and are hereby ratified and confirmed.

          (c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver
of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver
of any provision of the Credit Agreement or any other documents, instruments and agreements
executed and/or delivered in connection therewith.

          5. Governing Law. This Amendment shall be construed in accordance with and governed
by the law of the State of New York.

          6. Headings. Section headings in this Amendment are included herein for convenience
of reference only and shall not constitute a part of this Amendment for any other purpose.

2

 

          7. Counterparts. This Amendment may be executed by one or more of the parties hereto
on any number of separate counterparts, and all of said counterparts taken together shall be deemed
to constitute one and the same instrument.

[Signature Pages Follow]

3

 

          IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above
written.

	 	 	 	 	 
	 	PACIFIC SUNWEAR OF CALIFORNIA, INC.,

as the Borrower

 	 
	 	By:  	/s/ SALLY FRAME KASAKS
 	 
	 	 	Name:  	Sally Frame Kasaks 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                  /s/ MICHAEL L. HENRY
 	 
	 	 	Name:  	Michael L. Henry 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Signature Page to Amendment No. 5 to

Credit Agreement dated as of September 14, 2005

Pacific Sunwear of California, Inc.

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK,

NATIONAL ASSOCIATION,

individually as a Lender, as the Swingline Lender, as

an Issuing Bank and as Administrative Agent

 	 
	 	By:  	/s/ JAMES A. KNIGHT
 	 
	 	 	Name:  	James A. Knight 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 5 to

Credit Agreement dated as of September 14, 2005

Pacific Sunwear of California, Inc.

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

individually as a Lender, as an Issuing Bank and as

Syndication Agent

 	 
	 	By:  	/s/ STEPHEN J. GARVIN
 	 
	 	 	Name:  	Stephen J. Garvin 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Amendment No. 5 to

Credit Agreement dated as of September 14, 2005

Pacific Sunwear of California, Inc.

 

 

	 	 	 	 	 
	 	NATIONAL CITY BANK,

individually as a Lender and as Co-Documentation

Agent

 	 
	 	By:  	/s/ JENNIFER OBERS
 	 
	 	 	Name:  	Jennifer Obers 	 
	 	 	Title:  	Portfolio Manager 	 
	 

Signature Page to Amendment No. 5 to

Credit Agreement dated as of September 14, 2005

Pacific Sunwear of California, Inc.

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

individually as a Lender and as Co-Documentation

Agent

 	 
	 	By:  	/s/ CONAN SCHLEICHER
 	 
	 	 	Name:  	Conan Schleicher 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 5 to

Credit Agreement dated as of September 14, 2005

Pacific Sunwear of California, Inc.

 

 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION,

individually as a Lender

 	 
	 	By:  	/s/ PHILIP K. LIEBSCHER
 	 
	 	 	Name:  	Philip K. Liebscher 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 5 to

Credit Agreement dated as of September 14, 2005

Pacific Sunwear of California, Inc.

 

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A.,

individually as a Lender

 	 
	 	By:  	/s/ MARGARET FURBANK
 	 
	 	 	Name:  	Margaret Furbank 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 5 to

Credit Agreement dated as of September 14, 2005

Pacific Sunwear of California, Inc.

 

 

	 	 	 	 	 
	 	WACHOVIA BANK,

NATIONAL ASSOCIATION,

individually as a Lender

 	 
	 	By:  	/s/ SUSAN T. GALLAGHER
 	 
	 	 	Name:  	Susan T. Gallagher 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 5 to

Credit Agreement dated as of September 14, 2005

Pacific Sunwear of California, Inc.

 

 

CONSENT AND REAFFIRMATION

     Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 5
to the Credit Agreement (as the same may be amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”) by and among Pacific Sunwear of California,
Inc., a California corporation (the “Borrower”) the Lenders and JPMorgan Chase Bank,
National Association, as Administrative Agent (the “Administrative Agent”), which Amendment
No. 5 is dated as of February 1, 2008 and is by and among the Borrower, the financial institutions
listed on the signature pages thereof and the Administrative Agent (the “Amendment”).
Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the
meanings given to them in the Credit Agreement. Without in any way establishing a course of
dealing by the Administrative Agent or any Lender, each of the undersigned consents to the
Amendment and reaffirms the terms and conditions of the Subsidiary Guaranty and any other Loan
Document executed by it and acknowledges and agrees that the Subsidiary Guaranty and each and every
such Loan Document executed by the undersigned in connection with the Credit Agreement remains in
full force and effect and is hereby reaffirmed, ratified and confirmed. All references to the
Credit Agreement contained in the above-referenced documents shall be a reference to the Credit
Agreement as so modified by the Amendment and as the same may from time to time hereafter be
amended, modified or restated.

Dated February 1, 2008

[Signature Pages Follow]

 

 

     IN WITNESS WHEREOF, this Consent and Reaffirmation has been duly executed as of the day and
year above written.

	 	 	 	 	 
	 	PACIFIC SUNWEAR STORES CORP. 

 	 
	 	By:  	/s/ SALLY FRAME KASAKS
 	 
	 	 	Name:  	Sally Frame Kasaks                       	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ MICHAEL L. HENRY
 	 
	 	 	Name:  	Michael L. Henry                         	 
	 	 	Title:  	Chief Financial Officerexv10w1

 

EXHIBIT 10.1

Summary of 2008 Executive Incentive Bonus Plan

     In order to provide incentive to senior management to achieve various corporate goals
established by the board for the fiscal year ending December 31, 2008, Taleo has adopted the 2008
Executive Incentive Bonus Plan (the “Plan”). The Plan provides for payment of bonuses to all of
Taleo’s executive officers and other members of senior management.

     Aggregate cash bonus amounts range between 40% and 125% of base salary per individual at
on-target achievement of bonus plan goals. Each individual’s bonus will be determined by an
individualized formula based on the achievement of a variety of yearly and quarterly performance
objectives, including bookings, revenue, margin and net promoter score, a measure of customer
satisfaction. For certain performance objectives it is possible to exceed on-target achievement
and receive a bonus payment in excess of the bonus payment payable for on-target achievement.

     Bonus payments are anticipated to be made both quarterly and yearly, depending on the relevant
performance objective. The Plan is administered by the Compensation Committee of Taleo’s Board of
Directors, and will terminate in 2009.

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