EXHIBIT 10 (a)

 

SECOND AMENDMENT TO THE AMENDED AND RESTATED CREDIT AGREEMENT

 

SECOND AMENDMENT, dated as of March 18, 2005 (this “Amendment”), to the Credit
Agreement initially dated as of March 25, 2003, amended and restated as of July
1, 2004 and amended as of September 30, 2004 (as amended, restated, supplemented
or otherwise modified, the “Credit Agreement”) among K2 Inc. and each of its
Subsidiaries party hereto, each of the lending institutions from time to time
party hereto (such lending institutions, together with their respective
successors and assigns, are referred to herein individually as a “Lender” and
collectively as the “Lenders”), JPMorgan Chase Bank, N.A., as a contractual
representative for the Lenders (the “Administrative Agent”), Bank One, NA, a
national banking association having its principal office in Chicago, Illinois,
as a contractual representative for the Lenders (the “Collateral Agent”), and
acting through its London branch as the “U.K. Security Trustee”. Capitalized
terms used but not defined herein shall have the meanings ascribed to such terms
in the Credit Agreement.

 

W I T N E S S E T H :

 

WHEREAS, the Obligated Parties have requested that the Lenders amend the Credit
Agreement in the manner provided for herein; and

 

WHEREAS, the Administrative Agent and the Lenders are willing to amend the
Credit Agreement in the manner and on the conditions provided for herein.

 

NOW THEREFORE, in consideration of the premises and mutual covenants hereinafter
set forth, the parties agree as follows:

 

1. Amendment to Section 6.13 of the Credit Agreement: Section 6.13 of the Credit
Agreement is hereby amended by deleting the “and” at the end of clause (a)
thereof and substituting “,” in lieu therefor and striking the “.” ending clause
(b) thereof and substituting in lieu therefor the following:

 

“and (c) the Parent may make restricted payments in the form of repurchases of
its own Capital Stock in an aggregate amount not to exceed $50,000,000 less any
amount used to prepay, purchase, or redeem the 2004 Senior Notes, the
Convertible Subordinated Debentures, the 2003 Convertible Notes and its other
Subordinated Indebtedness as provided in Section 6.34, provided that no Default
exists or would result therefrom and Unused Availability after giving effect to
any such transactions exceeds $50,000,000.”

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2. Amendment to Section 6.34 of the Credit Agreement: Section 6.34 of the Credit
Agreement is hereby amended by deleting the last sentence thereof in its
entirety and substituting in lieu therefor the following:

 

“Notwithstanding the foregoing, the Parent may prepay, purchase, or redeem the
2004 Senior Notes, the Convertible Subordinated Debentures, the 2003 Convertible
Notes and its other Subordinated Indebtedness for an aggregate amount not to
exceed $50,000,000 less any amount used to repurchase Capital Stock as provided
in Section 6.13, provided that no Default exists or would result therefrom and
Unused Availability after giving effect to any such transactions exceeds
$50,000,000.”

 

3. Effectiveness. This Amendment shall become effective on the date the
Administrative Agent has received counterparts of this Amendment executed by the
Obligated Parties, the Administrative Agent and the Lenders.

 

4. Payment of Fees and Expenses. The Borrowers agree to pay or reimburse the
Administrative Agent for all of its out-of-pocket costs and reasonable expenses
incurred in connection with this Amendment and any other documents prepared in
connection herewith and the transactions contemplated hereby, including, without
limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent.

 

5. Representations and Warranties. After giving effect to this Amendment, each
Obligated Party hereby confirms, reaffirms and restates the representations and
warranties set forth in Section 5 of the Credit Agreement as if made on and as
of the date hereof except for any representation or warranty made as of the
earlier date, which representation or warranty shall have been true and correct
in all material respects as of such earlier date.

 

6. Severability; Headings. Any provision of this Amendment that is prohibited or
unenforceable in any jurisdiction, shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. The section and
subsection headings used in this Amendment are for convenience of reference only
and are not to affect the construction hereof or to be taken into consideration
in the interpretation hereof.

 

7. Continuing Effect of Other Documents. This Amendment shall not constitute an
amendment or waiver of any other provision of the Credit Agreement not expressly
referred to herein and shall not be construed as a waiver or consent to any
further or future action on the part of the Obligated Parties that would require
a waiver or consent of the Lenders or the Administrative Agent. Except as
expressly amended, modified and supplemented hereby, the provisions of the
Credit Agreement are and shall remain in full force and effect.

 

8. Governing Law; Counterparts. (a) This Amendment and the rights and
obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York.

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(b) This Amendment may be executed by one or more of the parties to this
Agreement in any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. A set
of the copies of this Amendment signed by all the parties shall be lodged with
the Borrowers and the Administrative Agent. This Amendment may be delivered by
facsimile transmission of the relevant signature pages hereof.

 

[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first above written.

 

OBLIGATED PARTIES:

K2 INC.

By:

 

/s/ DUDLEY W. MENDENHALL

   

Dudley W. Mendenhall

   

Senior Vice President - Finance

BRASS EAGLE, LLC

EX OFFICIO LLC

K2 EYEWEAR, LLC

WGP, LLC

By:

 

K2 Inc., its sole Member

   

By:

 

/s/ DUDLEY W. MENDENHALL

       

Dudley W. Mendenhall

       

Senior Vice President - Finance

HILTON CORPORATE CASUALS, LLC

SHAKESPEARE COMPANY, LLC

SHAKESPEARE CONDUCTIVE FIBERS, LLC

WORTH, LLC

By:

 

K2 Inc., its Manager

   

By:

 

/s/ DUDLEY W. MENDENHALL

       

Dudley W. Mendenhall

       

Senior Vice President - Finance

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BRASS EAGLE CHALLENGE PARK, INC.

BRASS EAGLE MISSISSIPPI LLC

EX OFFICIO INTERNET COMPANY, LLC

J. DEBEER & SON, INC.

JT PROTECTIVE GEAR LLC

JT USA LLC

K2 BIKE, INC.

K-2 CORPORATION

K2 CORPORATION OF CANADA

K-2 INTERNATIONAL, INC.

K2 LICENSING & PROMOTIONS, INC.

K2 MERCHANDISING, INC.

K2 SNOWSHOES, INC.

MARMOT MOUNTAIN, LLC

MORROW SNOWBOARDS, INC.

RAWLINGS CANADA INCORPORATED

RAWLINGS SPORTING GOODS COMPANY

RIDE, INC.

RIDE SNOWBOARD COMPANY

SHAKESPEARE COMPANY (UK) LIMITED

SHAKESPEARE INDUSTRIES, INC.

SHAKESPEARE INTERNATIONAL LIMITED

SHAKESPEARE MONOFILAMENT UK LIMITED

SITCA CORPORATION

SMCA, INC.

SPORTS RECREATION COMPANY LTD.

STEARNS INC.

WORTH ACCESSORIES, INC.

WORTH BAT COMPANY, INC.

By:

 

/s/ DIANA C. CRAWFORD

   

Diana C. Crawford

   

Secretary

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SATV, LLC

SOSPENDERS LLC

By: Stearns Inc., as sole Member

   

By:

 

/s/ DIANA C. CRAWFORD

       

Diana C. Crawford

       

Secretary

SHAKESPEARE ALL STAR ACQUISITION LLC

By:

 

Shakespeare Company, LLC, as sole Member

   

By:

 

K2 Inc., its Manager

       

By:

 

/s/ DUDLEY W. MENDENHALL

           

Dudley W. Mendenhall

           

Senior Vice President - Finance

EARTH PRODUCTS, INC.

KATIN, INC.

By:

 

/s/ DIANA C. CRAWFORD

   

Diana C. Crawford

   

Secretary

MARKER USA, INC.

MIKEN SPORTS, LLC

VOLKL SPORTS AMERICA CORP.

By:

 

/s/ DUDLEY W. MENDENHALL

   

Dudley W. Mendenhall

   

Senior Vice President - Finance

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ADMINISTRATIVE AGENT:

JPMORGAN CHASE BANK

By:

 

/s/ KEVIN D. PADGETT

Name:

 

Kevin D. Padgett

Title:

 

Vice President

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K-2 SIGNATURE PAGE TO SECOND

AMENDMENT DATED AS OF MARCH 18, 2005

Name of Institution:

 

Union Bank of California, N.A.

By:

 

/s/ NANCY A. PERKINS

   

Name: Nancy A. Perkins

   

Title: Vice President

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K-2 SIGNATURE PAGE TO SECOND

AMENDMENT DATED AS OF MARCH 18, 2005

Name of Institution:

 

General Electric Capital

Corporation

By:

 

/s/ LAWRENCE E. RIDGEWAY

   

Name: Lawrence E. Ridgeway

   

Title: Duly Authorized Signatory

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K-2 SIGNATURE PAGE TO SECOND

AMENDMENT DATED AS OF MARCH 18, 2005

Name of Institution:

 

Wells Fargo Bank, N.A.

By:

 

/s/ JUTTA S. GRAHAM

   

Name:

   

Title:

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K-2 SIGNATURE PAGE TO SECOND

AMENDMENT DATED AS OF MARCH 18, 2005

Name of Institution:

 

La Salle Bank National

Association

By:

 

/s/ NICHOLAS DEVILDER

   

Name: Nicholas Devilder

   

Title: AVP

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K-2 SIGNATURE PAGE TO SECOND

AMENDMENT DATED AS OF MARCH 18, 2005

Name of Institution:

 

SUNTRUST BANK

By:

 

/s/ MARK PICKERING

   

Name: Mark Pickering

   

Title: Vice President

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K-2 SIGNATURE PAGE TO SECOND

AMENDMENT DATED AS OF MARCH 18, 2005

Name of Institution:

 

THE CIT GROUP/BUSINESS

CREDIT, INC.

By:

 

/s/ KIRK WOLVERTON

   

Name: Kirk Wolverton

   

Title: Vice President

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K-2 SIGNATURE PAGE TO SECOND

AMENDMENT DATED AS OF MARCH 18, 2005

Name of Institution:

 

WELLS FARGO FOOTHILL,

LLC

By:

 

/s/ DENNIS KING

   

Name: Dennis King

   

Title: Vice President

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K-2 SIGNATURE PAGE TO SECOND

AMENDMENT DATED AS OF MARCH 18, 2005

Name of Institution:

 

BANK OF THE WEST

By:

 

/s/ ALYSSA PEARSON

   

Name: Alyssa Pearson

   

Title: Vice President