Demand Note between The North Face, Inc. and Ring Company dated May 24, 2000

Summary

The North Face, Inc. agrees to repay Ring Company, on demand, the total amount of any funds advanced by Ring, plus interest based on the one-month LIBOR rate plus 0.75%. Interest is calculated daily and paid monthly. If The North Face defaults, it must cover collection costs, including legal fees. The agreement is governed by New York law and remains in effect until all amounts are repaid upon demand by Ring.

EX-4.1 2 0002.txt DEMAND NOTE EXHIBIT 4.1 DEMAND NOTE May 24, 2000 New York, New York FOR VALUE RECEIVED, the undersigned, THE NORTH FACE, INC., a Delaware corporation ("Maker"), promises to pay to the order of RING COMPANY ("Ring"), a Delaware corporation, on demand, the aggregate principal amount of all advances made to Maker by Ring from time to time on or after the date hereof. The aggregate principal amount outstanding from time to time will bear interest at the rate of interest published in the Wall Street Journal Money Rates Section as the one-month London Interbank Offered Rate (LIBOR) for any date on which any principal amount is outstanding (which rate shall be applicable until the next date as of which any change in LIBOR is published) plus .75%. This interest rate may change on a daily basis. Interest on the aggregate principal amount outstanding will be computed on a basis of a year of 360 days and paid for actual days elapsed. Interest accrued through the last day of each calendar month shall be payable on the first business day of the succeeding month commencing June 1, 2000. If default is made in the payment of this Demand Note, Maker agrees to pay the holder all costs of collection, including but not limited to court costs and reasonable attorneys' fees. All advances made by Ring and all repayments of the principal thereof and interest thereon shall be recorded by Ring and, if Ring so elects in connection with any transfer of enforcement hereof, appropriate notations to evidence the foregoing information with respect to each such advance then outstanding may be endorsed by Ring on the schedule attached hereto, or on a continuation of such schedule attached to and made a part hereof, provided that the failure of Ring to make any such recordation or endorsement shall not affect the obligations of the Maker hereunder. This Demand Note shall be governed by and construed in accordance with the laws of the State of New York. THE NORTH FACE, INC. By: /s/ Geoffrey D. Lurie ---------------------- Name: Geoffrey Lurie Title: CEO