Exhibit 10.18
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.
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 Bank’s option. The amount of the renewal fee will be specified in the Renewal Notice.
1.3 Repayment Terms .
(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 Bank’s demand.
(a) The Borrower will pay interest on July 1, 2005, and then on the same day of each month thereafter until paymen