Document:

Exhibit 10.1

 

AMENDMENT TO LOAN DOCUMENTS

 

THIS AMENDMENT TO LOAN DOCUMENTS (this  “Amendment”) is entered into as of August 10, 2011, by and between SILICON VALLEY BANK (“Bank” or “Silicon”) and NETLIST, INC., a Delaware corporation (“Borrower”).  Borrower’s chief executive office is located at 51 Discovery, Suite 150, Irvine, CA 92618.

 

RECITALS

 

A.                                    Bank and Borrower are parties to that certain Loan and Security Agreement with an Effective Date of October 31, 2009 (as amended, modified, supplemented or restated, the “Loan Agreement”) in effect between Bank and Borrower.

 

B.                                    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.                                    Bank has agreed to so amend the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

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

 

2.                                      Amendments to Loan Documents.  The Loan Agreement is amended as follows, effective on the date hereof (except where a different effective date is specified below):

 

2.1                               Modification Regarding Availability Due to BB Blocked Amount.  Section 2.1.1(a) of the Loan Agreement is hereby amended in its entirety to read as follows:

 

(a)                                  Availability.  Subject to the terms and conditions of this Agreement and to deduction of Reserves (without duplication of the BB Blocked Amount component of the Borrowing Base), Bank shall make Advances not exceeding the Availability Amount.  Amounts borrowed hereunder may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein.

 

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2.2                               Modified Interest Rate.  Section 2.3(a) of the Loan Agreement is hereby amended in its entirety to read as follows:

 

(a)                                  Interest Rate.

 

(i)                                     Advances.  Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a per annum rate equal to the following: (i) at all times that a Streamline Period is in effect, one and one-quarter of one percentage points (1.25%) above the Prime Rate; and (ii) at all times that a Streamline Period is not in effect, two and one-quarter of one percentage points (2.25%) above the Prime Rate; which interest shall be payable monthly in accordance with Section 2.3(f) below.

 

(ii)                                  Term Loan.  Subject to Section 2.3(b), the principal amount outstanding under the Term Loan shall accrue interest at a per annum rate equal to two percentage points (2.0%) above the Prime Rate, which interest shall be payable monthly in accordance with Section 2.3(f) below.

 

(iii)                               Term Loan II.  Subject to Section 2.3(b), the principal amount outstanding under the Term Loan II shall accrue interest at a per annum rate equal to two and three-quarters percentage points (2.75%) above the Prime Rate, which interest shall be payable monthly in accordance with Section 2.3(f) below.

 

2.3                               Modified Definitions.  In Section 13.1 of the Loan Agreement, the following definitions are, as applicable, either hereby (i) amended in their entirety to read as follows or (ii) added to read as follows:

 

“BB Blocked Amount” is defined within the definition of “Borrowing Base”.

 

“Borrowing Base” is (a) 80% (the “A/R Advance Rate” and also an “Advance Rate”) of Eligible Accounts minus (b) the amount of One Million Dollars ($1,000,000) (the “BB Blocked Amount”), as determined by Bank from Borrower’s most recent Transaction Report; provided, however, that Bank may decrease any one or more of the Advance Rates in its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral or Borrower.

 

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2.4                               Modified Financial Covenants.  Section 6.9(a) of the Loan Agreement is hereby amended in its entirety to read as follows, effective as of July 30, 2011:

 

(a)                                  Adjusted Quick Ratio.  An Adjusted Quick Ratio of at least 1.00 to 1.00.  As used herein, the term “Adjusted Quick Ratio” means, as of any date of determination and with respect to Borrower, the ratio of (i) the sum of (y) Borrower’s cash and Cash Equivalents that are unencumbered (except for Bank’s security interest) and unrestricted, plus (z) the aggregate net amount of Eligible Accounts, to (ii) Borrower’s Current Liabilities.

 

2.5                               Modified Financial Covenants.  Section 6.9(b) of the Loan Agreement is hereby amended in its entirety to read as follows, effective as of July 30, 2011:

 

(b)                                 Tangible Net Worth.  A Tangible Net Worth of at least $15,000,000 (“Minimum Tangible Net Worth”) plus (i) 50% of all consideration received after the date hereof for equity securities and subordinated debt of the Borrower, plus (ii) 50% of the Borrower’s net income in each fiscal quarter ending after the date hereof.  Increases in the Minimum Tangible Net Worth based on consideration received for equity securities and subordinated debt of the Borrower shall be effective as of the end of the month in which such consideration is received, and shall continue effective thereafter. Increases in the Minimum Tangible Net Worth based on net income shall be effective on the last day of the fiscal quarter in which said net income is realized, and shall continue effective thereafter. In no event shall the Minimum Tangible Net Worth be decreased.

 

3.                                      Limitation of Amendments.

 

3.1                               The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.

 

3.2                               This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents (as amended by this Amendment, as applicable) are hereby ratified and confirmed and shall remain in full force and effect.

 

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4.                                      Representations and Warranties.  To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

 

4.1                               Immediately after giving effect to this Amendment, (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date, or except as otherwise previously disclosed in writing by Borrower to Bank), and (b) no Event of Default has occurred and is continuing;

 

4.2                               Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Documents, as amended by this Amendment;

 

4.3                               The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been otherwise amended, supplemented or restated and are and continue to be in full force and effect;

 

4.4                               The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Documents, as amended by this Amendment, have been duly authorized;

 

4.5                               The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Documents, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

 

4.6                               The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Documents, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on either Borrower, except as already has been obtained or made; and

 

4.7                                 This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

 

5.                                      Release by Borrower.  Borrower hereby agree as follows:

 

5.1                               FOR GOOD AND VALUABLE CONSIDERATION, Borrower hereby forever relieves, releases, and discharges Bank and its present or former employees, officers, directors, agents, representatives, attorneys, and each of them, from

 

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any and all claims, debts, liabilities, demands, obligations, promises, acts, agreements, costs and expenses, actions and causes of action, of every type, kind, nature, description or character whatsoever, whether known or unknown, suspected or unsuspected, absolute or contingent, arising out of or in any manner whatsoever connected with or related to facts, circumstances, issues, controversies or claims existing or arising from the beginning of time through and including the date of execution of this Amendment (collectively “Released Claims”).  Without limiting the foregoing, the Released Claims shall include any and all liabilities or claims arising out of or in any manner whatsoever connected with or related to the Loan Documents, the Recitals hereto, any instruments, agreements or documents executed in connection with any of the foregoing or the origination, negotiation, administration, servicing and/or enforcement of any of the foregoing.

 

5.2                               In furtherance of this release, Borrower expressly acknowledges and waives any and all rights under Section 1542 of the California Civil Code, which provides as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR EXPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” (Emphasis added.)

 

5.3                               By entering into this release, Borrower recognizes that no facts or representations are ever absolutely certain and it may hereafter discover facts in addition to or different from those which it presently knows or believes to be true, but that it is the intention of Borrower hereby to fully, finally and forever settle and release all matters, disputes and differences, known or unknown, suspected or unsuspected; accordingly, if Borrower should subsequently discover that any fact that it relied upon in entering into this release was untrue, or that any understanding of the facts was incorrect, Borrower shall not be entitled to set aside this release by reason thereof, regardless of any claim of mistake of fact or law or any other circumstances whatsoever. Borrower acknowledges that it is not relying upon and has not relied upon any representation or statement made by Bank with respect to the facts underlying this release or with regard to any of such party’s rights or asserted rights.

 

5.4                               This release may be pleaded as a full and complete defense and/or as a cross-complaint or counterclaim against any action, suit, or other proceeding that may be instituted, prosecuted or attempted in breach of this release. Borrower acknowledges that the release contained herein constitutes a material inducement to Bank to enter into this Amendment, and that Bank would not have done so but for Bank’s expectation that such release is valid and enforceable in all events.

 

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5.5                               Borrower hereby represents and warrants to Bank, and Bank is relying thereon, as follows:

 

(a)                                  Except as expressly stated in this Amendment, neither Bank nor any agent, employee or representative of Bank has made any statement or representation to Borrower regarding any fact relied upon by Borrower in entering into this Amendment.

 

(b)                                  Borrower has made such investigation of the facts pertaining to this Amendment and all of the matters appertaining thereto, as it deems necessary.

 

(c)                                  The terms of this Amendment are contractual and not a mere recital.

 

(d)                                  This Amendment has been carefully read by Borrower, the contents hereof are known and understood by Borrower, and this Amendment is signed freely, and without duress, by Borrower.

 

(e)                                  Borrower represents and warrants that it is the sole and lawful owner of all right, title and interest in and to every claim and every other matter which it releases herein, and that it has not heretofore assigned or transferred, or purported to assign or transfer, to any person, firm or entity any claims or other matters herein released. Borrower shall indemnify Bank, defend and hold it harmless from and against all claims based upon or arising in connection with prior assignments or purported assignments or transfers of any claims or matters released herein.

 

6.                                      Bank Expenses.  Borrower shall pay to Bank, when due, all Bank Expenses (including reasonable attorneys’ fees and expenses), when due, incurred in connection with or pursuant to this Amendment.

 

7.                                      Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

 

8.                                      Effectiveness.  This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto and (b) Borrower’s payment of an amendment fee in an amount equal to $10,000.  The above-mentioned fee shall be fully earned and payable concurrently with the execution and delivery of this Amendment and shall be non-refundable and in addition to all interest and other fees payable to Bank under the Loan Documents.  Bank is authorized to charge such fees to Borrower’s loan account.

 

[Remainder of page intentionally left blank; signature page immediately follows.]

 

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

 

	
BANK
    	
BORROWER
    
	
 
    	
 
    
	
Silicon   Valley Bank 
    	
NETLIST, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/Brian   Lowry 
    	
 
    	
By:
    	
/s/Gail   Sasaki 
    
	
Name:   Brian Lowry 
    	
 
    	
Name:   Gail Sasaki 
    
	
Title:   Relationship Manager
    	
 
    	
Title:   Vice President and Chief Financial OfficerExhibit 10.1

 

AMENDMENT NUMBER TWO

TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT AND

AMENDMENT NUMBER ONE TO LIBOR/PRIME RATE ADDENDUM

 

This AMENDMENT NUMBER TWO TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT AND AMENDMENT NUMBER ONE TO LIBOR/PRIME RATE ADDENDUM (this “Amendment”), dated as of August 10, 2011, is entered into by and among DECKERS OUTDOOR CORPORATION, a Delaware corporation (“Deckers”), TSUBO, LLC, a Delaware limited liability company (“Tsubo” and collectively with Deckers, “Borrower”), and COMERICA BANK (“Bank”), with reference to the following facts:

 

A.            Borrower and Bank previously entered into (i) that certain Second Amended and Restated Credit Agreement, dated as of May 27, 2010, as amended from time to time (as so amended, the “Agreement”), and (ii) that certain LIBOR/Prime Rate Addendum to Loan and Security Agreement, as of May 27, 2010, as amended from time to time (as so amended, the “Interest Rate Addendum”, and together with the Agreement, the “Documents”); and

 

B.            Borrower and Bank desire to amend certain provisions of the Documents in accordance with the terms of this Amendment.

 

NOW, THEREFORE, in consideration of the foregoing, the parties hereto hereby agree as follows:

 

1.             Defined Terms.  All initially capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Agreement.

 

2.             Amendment to Section 1.1 (Definitions) of the Agreement.

 

(a)           The following defined terms set forth in Section 1.1 of the Agreement are hereby amended to read as follows:

 

“LC Fee Percentage”  means 0.75%; provided, however, that solely during the Increased Commitment Period, the LC Percentage Fee shall be 1.25%.

 

“Revolving Credit Commitment” means Twenty Million Dollars ($20,000,000); provided, however, that solely during the Increased Commitment Period, the Revolving Credit Commitment shall be Sixty Million Dollars ($60,000,000).

 

(b)           The following defined terms are hereby added to Section 1.1 of the Agreement in alphabetical order to read as follows:

 

“Compliance Certificate” means a certificate of compliance to be delivered quarterly in accordance with Section 6.3(b), substantially in the form of Exhibit 6.3(b).

 

“Consolidated EBITDAR” means, with respect to any period, the result of (a) the sum of (i) Borrowers’ and the Subsidiaries’ consolidated net income, plus (ii) to the extent deducted in calculating such consolidated net income, the sum of Borrowers’ and the Subsidiaries’ (1) consolidated interest charges, (2) federal, state and local income taxes payable during such period, (3) depreciation and amortization expense, (4) rental expense, (5) non-cash stock option expense, and (6) other non-recurring expenses

 

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reducing such consolidated net income which do not represent a cash item in such period or any future period, minus (b) to the extent included in calculating such consolidated net income, the sum of Borrowers’ and the Subsidiaries’ (i) federal, state and local income taxes credits given during such period, and (ii) all non-cash items increasing such consolidated net income, in each case calculated in accordance with GAAP.

 

“Increased Commitment Period” means the  period commencing on the effective date of that certain Amendment Number Two to Second Amended and Restated Credit Agreement and Amendment Number One to Libor/Prime Rate Addendum by and among Borrowers and Bank, and ending on November 30, 2011.

 

3.             Amendment to Section 1 (Definitions) of the Interest Rate Addendum. The definition of “Applicable Margin” set forth in Section 1.c of the Agreement is hereby amended to read as follows:

 

“Applicable Margin” means: (1) in respect of the LIBOR—based Rate, 1.0% per annum; provided, however, that solely during the Increased Commitment Period, such margin shall be 1.25%; and (2) in respect of the Prime Referenced Rate 0.0% per annum; provided, however, that solely during the Increased Commitment Period, such margin shall be 0.25%.

 

4.             Amendment to Clause (b) of Section 6.3 (Collateral Reporting and Financial Statements) of the Agreement.  Clause (b) of Section 6.3 of the Agreement is hereby amended to read as follows:

 

(b)           as soon as available but not later than forty five (45) days after the end of each quarterly accounting period, (i) a consolidated internally prepared Financial Statement for Borrowers and the Subsidiaries which shall include Borrowers’ and the Subsidiaries’ consolidated balance sheet as of the close of such period, and Borrowers’ and the Subsidiaries’ consolidated statement of income and retained earnings and consolidated statement of cash flow for such period and year to date, certified by the Chief Financial Officer of Borrowers, to the best of his or her knowledge after due and diligent inquiry, as being complete and correct and fairly presenting in all material respects Borrowers’ and its Subsidiaries’ financial condition and results of operations for such period, and (b) solely during the Increased Commitment Period, a Compliance Certificate from the Chief Financial Officer or the Chief Operating Officer of Borrowers, stating, among other things, that he or she has reviewed the provisions of this Agreement and the Loan Documents and that, to the best of his or her knowledge after due and diligent inquiry there exists no Event of Default or Unmatured Event of Default, and containing the calculations and other details necessary to demonstrate compliance with Section 7.15(c) and (d);

 

5.             Amendment to Clause (d) of Section 7.8 (Investments) of the Agreement.  Clause (d) of Section 7.8 of the Agreement is hereby amended to read as follows:

 

(d)           Notwithstanding the terms of Section 7.8(a), Borrowers shall be permitted to make loans and advances (i) to their employees, provided that such loans and advances do not exceed Two Hundred Thousand Dollars ($200,000) in the aggregate outstanding at any time, (ii) to any Subsidiary and (iii) to any Excluded Subsidiary, provided that such net loans and advances to Subsidiaries (who are not Loan Parties) and Excluded Subsidiaries (who are not Loan Parties) do not exceed Seventy-Five Million Dollars ($75,000,000) in the aggregate per calendar year.

 

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6.             Amendment to Section 7.15 (Financial Condition) of the Agreement.  Section 7.15 of the Agreement is hereby amended to read as follows:

 

7.15         Financial Condition.  Permit or suffer:

 

(a)           Except during the Increased Commitment Period, at any time outstanding Obligations exceed Two Million Dollars ($2,000,000), Consolidated Effective Tangible Net Worth, measured as of the end of each fiscal quarter of Parent, commencing with the fiscal quarter ended December 31, 2009, to be less than the sum of (i) $294,891,000 plus (ii) on a cumulative basis, 75% of the Consolidated Net Profit (but in no event less than zero) for each fiscal year, commencing with the fiscal year ended December 31, 2010.

 

(b)           Except during the Increased Commitment Period, at any time outstanding Obligations exceed Two Million Dollars ($2,000,000), any Consolidated Net Loss for two or more consecutive fiscal quarters.

 

(c)           Solely during the Increased Commitment Period, the ratio of (i) the sum of (x) 80% of Borrowers’ and the Subsidiaries’ consolidated net accounts receivable, plus (y) 50% of Borrowers’ and the Subsidiaries’ consolidated Inventory, to (ii) Borrowers’ and the Subsidiaries’ consolidated total secured funded indebtedness, measured as of the end of each fiscal quarter of Parent, commencing with the fiscal quarter ended September 30, 2011, to be less than 1.10:1.00.

 

(d)           Solely during the Increased Commitment Period, the ratio of (i) Consolidated EBITDAR for the trailing four fiscal quarter period, to (ii) the sum of Borrowers’ and the Subsidiaries’ (x) consolidated interest expense and (y) consolidated rental expense during such period, measured as of the end of each fiscal quarter of Parent, commencing with the fiscal quarter ended September 30, 2011, to be less than 2.25:1.00.

 

7.             Amendment to add Exhibit 6.3(b) (Compliance Certificate) to the Agreement.  Exhibit 6.3(b) attached to this Amendment is hereby added as Exhibit 6.3(b) to the Agreement.

 

8.             Representations and Warranties.  In order to induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank that:

 

(a)           No Event of Default or Unmatured Event of Default is continuing;

 

(b)           All of the representations and warranties set forth in the Agreement and the Loan Documents are true, complete and accurate in all respects (except for representations and warranties which are expressly stated to be true and correct as of the Closing Date); and

 

(c)           This Amendment has been duly executed and delivered by Borrower, and after giving effect to this Amendment, the Agreement, the Interest Rate Addendum and the Loan Documents continue to constitute the legal, valid and binding agreements and obligations of Borrower, enforceable in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, and similar laws and equitable principles affecting the enforcement of creditors’ rights generally.

 

9.             Conditions Precedent to Effectiveness of Amendment.  The effectiveness of this Amendment is subject to and contingent upon the fulfillment of each and every one of the following conditions:

 

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(a)           Bank shall have received this Amendment, duly executed by Borrower and Bank;

 

(b)           Bank shall have received the Reaffirmation of Guarantors attached hereto, duly executed by each Guarantor party thereto;

 

(c)           No Event of Default, Unmatured Event of Default or Material Adverse Effect shall have occurred and be continuing; and

 

(d)           All of the representations and warranties set forth herein, in the Loan Documents and in the Agreement shall be true, complete and accurate in all respects as of the date hereof (except for representations and warranties which are expressly stated to be true and correct as of the Closing Date).

 

10.           Counterparts; Telefacsimile Execution.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Amendment.  Delivery of an executed counterpart of this Amendment by telefacsimile shall be equally as effective as delivery of a manually executed counterpart of this Amendment.  Any party delivering an executed counterpart of this Amendment by telefacsimile also shall deliver a manually executed counterpart of this Amendment but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

 

11.           Integration.  The Agreement and Interest Rate Addendum as amended by this Amendment constitute the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and thereof, and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof and thereof.

 

12.           Reaffirmation of the Agreement.  The Agreement and Interest Rate Addendum as amended hereby and the other Loan Documents remain in full force and effect.

 

[signatures follow]

 

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IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Amendment as of the date first hereinabove written.

 

 

	
 
    	
DECKERS OUTDOOR CORPORATION,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Thomas A. George
    
	
 
    	
Name:
    	
Thomas   A. George
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TSUBO,   LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By   its Managing Member:
    
	
 
    	
 
    
	
 
    	
DECKERS   OUTDOOR CORPORATION,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas A. George
    
	
 
    	
Name:
    	
Thomas   A. George
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
COMERICA   BANK
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Isabel Barreiro
    
	
 
    	
Name:
    	
Isabel   Barreiro
    
	
 
    	
Title:
    	
Assistant   Vice President
    

 

Amendment Number Two to Second Amended and Restated Credit Agreement and

Amendment Number One to LIBOR/Prime Rate Addendum

 

S-1

 

Exhibit 6.3(b)
 To
 Second Amended and Restated Credit Agreement

 

Form of Compliance Certificate

 

 

COMPLIANCE CERTIFICATE

 

To:                              COMERICA BANK

15303 Ventura Boulevard

Sherman Oaks, California 91403

Attn: Isabel Barreiro

 

This Compliance Certificate is given pursuant to Section 6.3(b) of that certain Second Amended and Restated Credit Agreement, dated as of May 27, 2010 (the “Agreement”), by and among DECKERS OUTDOOR CORPORATION, a Delaware corporation (“Deckers”), TSUBO, LLC, a Delaware limited liability company (“Tsubo” and collectively with Deckers, “Borrower”), and COMERICA BANK (“Bank”).  All initially capitalized terms used but not defined in this Compliance Certificate shall have the meanings assigned to such terms in the Agreement.

 

THE UNDERSIGNED HEREBY CERTIFIES THAT:

 

(1)                                  He/She is the duly elected Chief Financial Officer of Borrower;

 

(2)                                  He/She reviewed the terms of the Agreement and the Loan Documents and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition of Borrower during the accounting period covered by the attached financial statements;

 

(3)                                  The examinations described in Paragraph (2) above did not disclose, and he/she has no knowledge of, the existence of any condition or event which constitutes an Unmatured Event of Default or Event of Default during, or at the end of, the accounting period covered by the attached financial statements or as of the date of this Compliance Certificate, except as set forth below; and

 

(4)                                  Exhibit A attached hereto and incorporated herein by this reference sets forth the financial data and computations evidencing Borrower’s compliance with the covenants set forth in Section 7.15(c) and (d) of the Agreement, all of which data and computations are true, complete and correct.

 

Described below are the exceptions, if any, to Paragraph (3) above which list, in detail, the nature of the condition or event, the period during which it has existed and the action which Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

 

 

 

 

This Compliance Certificate, together with the computations set forth in Exhibit A hereto and the financial statements delivered concurrently herewith in support hereof, are made and delivered this            day of                                    , 20    .

 

 

	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:   Chief Financial Officer
    

 

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EXHIBIT “A”

 

[To be Attached]

 

2

 

REAFFIRMATION OF GUARANTORS

 

Each of the undersigned, as a “Guarantor” under a Continuing Guaranty (“Guaranty”), executed in favor of Comerica Bank (“Bank”) with respect to the obligations of Deckers Outdoor Corporation, a Delaware corporation (“Deckers”), Tsubo, LLC, a Delaware limited liability company (“Tsubo” and collectively with Deckers, “Borrower”), owing to Bank, hereby acknowledges receipt of a copy of the foregoing Amendment Number Two to Second Amended and Restated Credit Agreement and Amendment Number One to Libor/Prime Rate Addendum, consents to the terms contained therein and agrees that its Guaranty shall remain in full force and effect.

 

Although Bank has informed us of the matters set forth above and we have acknowledged same, we understand and agree that Bank has no duty under the Loan Agreement, the Guaranties, or any other agreement between us to so notify us or to seek an acknowledgment, and nothing herein is intended to or shall create such a duty hereafter.

 

	
Dated:   August 10, 2011
    	
DECKERS   RETAIL, LLC,
    
	
 
    	
a   California limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   Deckers Outdoor Corporation, its sole member
    
	
 
    	
 
    
	
 
    	
By
    	
/s/   Thomas A. George
    
	
 
    	
Name:
    	
Thomas   A. George
    
	
 
    	
Its:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DECKERS   CONSUMER DIRECT CORPORATION,
    
	
 
    	
an   Arizona corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/   Zohar Ziv
    
	
 
    	
Name:
    	
Zohar   Ziv
    
	
 
    	
Its:
    	
Director
    

 

Reaffirmation of Guarantors to

Amendment Number Two to Second Amended and Restated Credit Agreement and

Amendment Number One to LIBOR/Prime Rate Addendum

 

S-1

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