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
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Name: Geoffrey Lurie
Title: CEO
