|
|
|
|
Document Preview Loan Agreement |
||||
|
|
||||
|
Click "Add to Cart" button to purchase document. |
||||
|
|
||||
|
Title: |
Loan Agreement |
|||
|
Entities: |
||||
|
Date: |
2005 |
|||
|
Size: |
Preview shows 19KB of 62KB total |
|||
|
Price: |
$43 |
|||
|
ID: |
#459461 |
|||
|
|
||||
|
||||
|
|
||||
|
Start of Preview |
||||
LOAN AGREEMENT
This Agreement dated as of June 1, 2005, is between Bank of America, N.A. (the Bank) and K-Swiss Inc. (the Borrower).
1. FACILITY NO. 1: LINE OF CREDIT AMOUNT AND TERMS
1.1 Line of Credit Amount.
| (a) | During the availability period described below, the Bank will provide a line of credit to the Borrower. The amount of the line of credit (the Facility No. 1 Commitment) is Fifteen Million and 00/100 Dollars ($15,000,000.00). |
| (b) | This is a revolving line of credit. During the availability period, the Borrower may repay principal amounts and reborrow them. |
| (c) | The Borrower agrees not to permit the principal balance outstanding to exceed the Facility No. 1 Commitment. If the Borrower exceeds this limit, the Borrower will immediately pay the excess to the Bank upon the Banks demand. |
1.2 Availability Period. The line of credit is available between the date of this Agreement and July 1, 2007, or such earlier date as the availability may terminate as provided in this Agreement (the Facility No. 1 Expiration Date).
The availability period for this line of credit will be considered renewed if and only if the Bank has sent to the Borrower a written notice of renewal effective as of the Facility No. 1 Expiration Date for the line of credit (the Renewal Notice). If this line of credit is renewed, it will continue to be subject to all the terms and conditions set forth in this Agreement except as modified by the Renewal Notice. If this line of credit is renewed, the term Expiration Date shall mean the date set forth in the Renewal Notice as the Expiration Date and the same process for renewal will apply to any subsequent renewal of this line of credit. A renewal fee may be charged at the Banks option. The amount of the renewal fee will be specified in the Renewal Notice.
1.3 Repayment Terms.
| (a) | The Borrower will pay interest on July 1, 2005, and then on the same day of each month thereafter until payment in full of any principal outstanding under this facility. |
| (b) | The Borrower will repay in full any principal, interest or other charges outstanding under this facility no later than the Facility No. 1 Expiration Date. Any interest period for an optional interest rate (as described below) shall expire no later than the Facility No. 1 Expiration Date. |
1.4 Interest Rate.
| (a) | The interest rate is a rate per year equal to the Banks Prime Rate minus 0.75 percentage point(s). |
| (b) | The Prime Rate is the rate of interest publicly announced from time to time by the Bank as its Prime Rate. The Prime Rate is set by the Bank based on various factors, including the Banks costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans. The Bank may price loans to its customers at, above, or below the Prime Rate. Any change in the Prime Rate shall take effect at the opening of business on the day specified in the public announcement of a change in the Banks Prime Rate. |
1.5 Optional Interest Rates. Instead of the interest rate based on the rate stated in the paragraph entitled Interest Rate above, the Borrower may elect the optional interest rates listed below for this Facility No. 1 during interest periods agreed to by the Bank and the Borrower. The optional interest rates shall be subject to the terms and conditions described later in this Agreement. Any principal amount bearing interest at an optional rate under this Agreement is referred to as a Portion. The following optional interest rates are available:
| (a) | The IBOR Rate plus 1.25 percentage point(s). |
| Standard Loan Agreement | 1 | Revised 2/2005 |
1.6 Letters of Credit.
| (a) | During the availability period, at the request of the Borrower, the Bank will issue: |
| (i) | commercial letters of credit with a maximum maturity of two hundred twenty-five (225) days but not to extend more than one hundred eighty (180) days beyond the Facility No. 1 Expiration Date. Each commercial letter of credit will require drafts payable at sight. |
| (ii) | standby letters of credit with a maximum maturity of three hundred sixty-five (365) days but not to extend more than three hundred sixty-five (365) days beyond the Facility No. 1 Expiration Date. The standby letters of credit may include a provision providing that the maturity date will be automatically extended each year for an additional year unless the Bank gives written notice to the contrary. |
| (b) | The amount of the letters of credit outstanding at any one time (including the drawn and unreimbursed amounts of the letters of credit) may not exceed Fifteen Million and 00/100 Dollars ($15,000,000). |
| (c) | In calculating the principal amount outstanding under the Facility No. 1 Commitment, the calculation shall include the amount of any letters of credit outstanding, including amounts drawn on any letters of credit and not yet reimbursed. |
| (d) | The following letters of credit are outstanding from the Bank for the account of the Borrower: |
|
Letter of Credit Number |
Amount | ||
| 3066454 | $ | 500,000.00 | |
| 3066455 | $ | 1,000,000.00 | |
As of the date of this Agreement, these letters of credit shall be deemed to be outstanding under this Agreement, and shall be subject to all the terms and conditions stated in this Agreement.
| (e) | The Borrower agrees: |
| (i) | Any sum drawn under a letter of credit may, at the option of the Bank, be added to the principal amount outstanding under this Agreement. The amount will bear interest and be due as described elsewhere in this Agreement. |
| (ii) | If there is a default under this Agreement, to immediately prepay and make the Bank whole for any outstanding letters of credit. |
| (iii) | The issuance of any letter of credit and any amendment to a letter of credit is subject to the Banks written approval and must be in form and content satisfactory to the Bank and in favor of a beneficiary acceptable to the Bank. |
| (iv) | To sign the Banks form Application and Agreement for Commercial Letter of Credit or Application and Agreement for Standby Letter of Credit, as applicable. |
| (v) | To pay negotiation fees of the greater of two-tenths (0.20%) of the amount of each drawing or Seventy Five Dollars ($75), and other fees at the times and in the amounts Bank advises Borrower from time to time, as being generally applicable to commercial letters of credit issued by the Bank, including without limitation, amendment, discrepancy, and cancellation fees. |
| (vi) | To pay any issuance and/or other fees that the Bank notifies the Borrower will be charged for issuing and processing letters of credit for the Borrower. |
|
End of Preview |
Home Intelligence Services Subscriptions News About Us