Effective as of May 3, 2024, Zumiez Inc. together with its subsidiary Zumiez Services Inc. as the co-borrower, terminated a Credit Agreement between the Company and Wells Fargo Bank, N.A. originally entered into on December 7, 2018 and as subsequently amended on October 14, 2021, July 27, 2023 and November 30, 2023. The Credit Agreement provided the Company with a senior secured credit facility for working capital and other general corporate purposes of up to $25.0 million through December 1, 2024. The credit facility provided for the issuance of standby letters of credit in an amount not to exceed $17.5 million outstanding at any time and with a term not to exceed 365 days beyond the maturity of the credit facility.

The commercial line of credit provided for the issuance of commercial letters of credit in an amount not to exceed $10.0 million and with terms not to exceed 120 days beyond the maturity of the credit facility. The Credit Agreement contained various representations, warranties and restrictive covenants. There were no borrowings or open commercial letters of credit outstanding under the credit facility as of the Termination Date.

At the time of the Termination Date, there were $3.4 million in issued, but undrawn, standby letters of credit that are being transitioned to restricted deposits with the Bank. There were no early termination penalties incurred by the Company in connection with the termination of the Credit Agreement. As referenced above, there were no borrowings or open commercial letters of credit outstanding under the credit facility and the Company believes that its significant sources of liquidity continue to be funds generated by its operating activities and available cash, cash equivalents and current marketable securities.

Termination of the Credit Agreement allows the Company to discontinue paying an unused commitment fee of 0.50% of the credit facility amount per annum.