Document:

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                                                                     Exhibit 4.3

                    $93,750,000 PRINCIPAL AMOUNT AT MATURITY

                          GOLFSMITH INTERNATIONAL, INC.

                     8.375% OF SENIOR SECURED NOTES DUE 2009

                          REGISTRATION RIGHTS AGREEMENT

                                                                October 15, 2002

JEFFERIES & COMPANY, INC.
11100 Santa Monica Boulevard
10th Floor
Los Angeles, CA 90025

Ladies and Gentlemen:

      GOLFSMITH INTERNATIONAL, INC., a Delaware corporation (the "Company"), is
issuing and selling to Jefferies & Company, Inc (the "Initial Purchaser"), upon
the terms set forth in the Purchase Agreement dated October 8, 2002 among
Atlantic Equity Partners III, L.P., a Delaware limited partnership ("AEP"),
Golfsmith International Holdings, Inc., a Delaware corporation ("Holdings"), BGA
Acquisition Corporation, a Delaware corporation, and the Initial Purchaser, as
acceded to by the Company and the subsidiaries of the Company named therein
pursuant to Amendment No. 1 thereto (the "Purchase Agreement"), $93,750,000
aggregate principal amount at maturity of 8.375% Senior Secured Notes due 2009
issued by the Company (each, a "Note" and collectively, the "Notes"). As an
inducement to the Initial Purchaser to enter into the Purchase Agreement, the
Company and the Guarantors (as defined below) agree with the Initial Purchaser,
for the benefit of the Holders (as defined below) of the Notes (including,
without limitation, the Initial Purchaser), as follows:

1.    DEFINITIONS

      Capitalized terms that are used herein without definition and are defined
in the Purchase Agreement shall have the respective meanings ascribed to them in
the Purchase Agreement. As used in this Agreement, the following terms shall
have the following meanings:

      ADDITIONAL INTEREST:  See Section 4(a).

      ADVICE:  See Section 6(v).

      AGREEMENT: This Registration Rights Agreement, dated as of the Closing
Date, between the Company and the Initial Purchaser.

      APPLICABLE PERIOD:  See Section 2(e).

      BUSINESS DAY: A day that is not a Saturday, a Sunday or a day on which
banking institutions in the City of New York are authorized or required by law
or executive order to be closed.
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      CLOSING DATE: October 15, 2002.

      COLLATERAL AGREEMENTS:  Shall have the meaning set forth in the Indenture.

      COMPANY:  See the introductory paragraph to this Agreement.

      DAY:  Unless otherwise expressly provided, a calendar day.

      EFFECTIVENESS DATE:  The 180th day after the Issue Date.

      EFFECTIVENESS PERIOD:  See Section 3(a).

      EVENT DATE:  See Section 4(b).

      EXCHANGE ACT: The Securities Exchange Act of 1934, as amended, and the
rules and regulations of the SEC promulgated thereunder.

      EXCHANGE NOTES: Senior Secured Notes due 2009 of the Company, identical in
all material respects to the Notes, including the guarantees endorsed thereon,
except for restrictive legends and additional interest provisions.

      EXCHANGE OFFER:  See Section 2(a).

      EXCHANGE REGISTRATION STATEMENT:  See Section 2(a).

      FILING DATE:  The 120th day after the Issue Date.

      GUARANTORS:  Shall mean Holdings and the Subsidiary Guarantors.

      HOLDER:  Any registered holder of Registrable Notes.

      INDEMNIFIED PARTY:  See Section 8(c).

      INDEMNIFYING PARTY:  See Section 8(c).

      INDENTURE: The Indenture, dated as of the Closing Date, among the Company,
the Guarantors and U. S. Bank Trust National Association, as trustee, pursuant
to which the Notes are being issued, as amended or supplemented from time to
time in accordance with the terms hereof.

      INITIAL PURCHASER:  See the introductory paragraph to this Agreement.

      INITIAL SHELF REGISTRATION:  See Section 3(a).

      INSPECTORS:  See Section 6(o).

      ISSUE DATE:  October 15, 2002

      LOSSES:  See Section 8(a).

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      NASD:  National Association of Securities Dealers, Inc.

      NOTES: Shall mean the Notes (as set forth in the introductory paragraph to
this Agreement) and the related Guarantees thereon.

      PARTICIPATING BROKER-DEALER:  See Section 2(e).

      PERSON: An individual, trustee, corporation, partnership, limited
liability company, joint stock company, trust, unincorporated association,
union, business association, firm, government or agency or political subdivision
thereof, or other legal entity.

      PRIVATE EXCHANGE:  See Section 2(f).

      PRIVATE EXCHANGE NOTES:  See Section 2(f).

      PROSPECTUS: The prospectus included in any Registration Statement
(including, without limitation, a prospectus that discloses information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Notes covered by such
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

      PURCHASE AGREEMENT:  See the introductory paragraph to this Agreement.

      RECORDS:  See Section 6(o).

      REGISTRABLE NOTES: (i) Notes, (ii) Private Exchange Notes and (iii)
Exchange Notes received in the Exchange Offer, in each case, that may not be
sold without restriction under federal or state securities laws.

      REGISTRATION STATEMENT: Any registration statement of the Company and the
Guarantors filed with the SEC under the Securities Act (including, but not
limited to, the Exchange Registration Statement, the Shelf Registration and any
subsequent Shelf Registration) that covers any of the Registrable Notes pursuant
to the provisions of this Agreement, including the Prospectus, amendments and
supplements to such registration statement, including post-effective amendments,
all exhibits and all material incorporated by reference or deemed to be
incorporated by reference in such registration statement.

      RULE 144: Rule 144 promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule (other than Rule 144A) or
regulation hereafter adopted by the SEC providing for offers and sales of
securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer or such securities being
free of the registration and prospectus delivery requirements of the Securities
Act.

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      RULE 144A: Rule 144A promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144) or
regulation hereafter adopted by the SEC.

      RULE 415: Rule 415 promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

      RULE 430A: Rule 430A promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

      SEC:  The Securities and Exchange Commission.

      SECURITIES:  The Notes, the Exchange Notes and the Private Exchange Notes.

      SECURITIES ACT: The Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

      SHELF NOTICE:  See Section 2(j).

      SHELF REGISTRATION:  See Section 3(b).

      SUBSEQUENT SHELF REGISTRATION:  See Section 3(b).

      SUBSIDIARY GUARANTOR: Each subsidiary of the Company that guarantees the
obligations of the Company under the Notes and the Indenture.

      TIA:  The Trust Indenture Act of 1939, as amended.

      TRUSTEE: The trustee under the Indenture and, if existent, the trustee
under any indenture governing the Exchange Notes and Private Exchange Notes (if
any).

      UNDERWRITTEN REGISTRATION OR UNDERWRITTEN OFFERING: A registration in
which securities of the Company are sold to an underwriter for reoffering to the
public.

2.    EXCHANGE OFFER

      (a)   Unless the Exchange Offer would not be permitted by applicable
            federal law or a policy of the SEC, the Company shall (and shall
            cause each Guarantor with respect to its guarantee to) (i) prepare
            and file with the SEC promptly after the date hereof, but in no
            event later than the Filing Date, a registration statement (the
            "Exchange Registration Statement") on an appropriate form under the
            Securities Act with respect to an offer (the "Exchange Offer") to
            the Holders of Notes to issue and deliver to such Holders, in
            exchange for the Notes, a like principal amount of Exchange Notes,
            (ii) use its reasonable best efforts to cause the Exchange
            Registration Statement to become effective as promptly as
            practicable after the filing thereof, but in no event later than the
            Effectiveness Date, (iii) use its reasonable best efforts to keep
            the Exchange Registration Statement effective until the consummation
            of the Exchange Offer in accordance with its terms, and

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            (iv) commence the Exchange Offer and use its reasonable best efforts
            to issue on or prior to 30 Business Days after the date on which the
            Exchange Registration Statement is declared effective, Exchange
            Notes in exchange for all Notes tendered prior thereto in the
            Exchange Offer. The Exchange Offer shall not be subject to any
            conditions, other than that the Exchange Offer does not violate
            applicable law or any applicable interpretation of the staff of the
            SEC.

      (b)   The Exchange Notes shall be issued under, and entitled to the
            benefits of, (i) the Indenture or a trust indenture that is
            identical to the Indenture (other than such changes as are necessary
            to comply with any requirements of the SEC to effect or maintain the
            qualifications thereof under the TIA) and (ii) the Collateral
            Agreements.

      (c)   Interest on the Exchange Notes and Private Exchange Notes will
            accrue from the last interest payment date on which interest was
            paid on the Notes surrendered in exchange therefor or, if no
            interest has been paid on the Notes, from the date of original issue
            of the Notes. Each Exchange Note and Private Exchange Note shall
            bear interest at the rate set forth thereon; provided, that interest
            with respect to the period prior to the issuance thereof shall
            accrue at the rate or rates borne by the Notes from time to time
            during such period.

      (d)   The Company may require each Holder as a condition to participation
            in the Exchange Offer to represent (i) that any Exchange Notes
            received by it will be acquired in the ordinary course of its
            business, (ii) that at the time of the commencement and consummation
            of the Exchange Offer such Holder has not entered into any
            arrangement or understanding with any Person to participate in the
            distribution (within the meaning of the Securities Act) of the
            Exchange Notes in violation of the provisions of the Securities Act,
            (iii) that if such Holder is an affiliate of the Company within the
            meaning of the Securities Act, it will comply with the registration
            and prospectus delivery requirements of the Securities Act to the
            extent applicable to it, (iv) if such Holder is not a broker-dealer,
            that it is not engaged in, and does not intend to engage in, the
            distribution of the Notes and (v) if such Holder is a Participating
            Broker-Dealer, that it will deliver a Prospectus in connection with
            any resale of the Exchange Notes.

      (e)   The Company shall include within the Prospectus contained in the
            Exchange Registration Statement a section entitled "Plan of
            Distribution" which shall contain all information that the SEC may
            require with respect to the potential "underwriter" status of any
            broker-dealer that is the beneficial owner (as defined in Rule 13d-3
            under the Exchange Act) of Exchange Notes received by such
            broker-dealer in the Exchange Offer for its own account in exchange
            for Notes that were acquired by it as a result of market-making or
            other trading activity (a "Participating Broker-Dealer"). Such "Plan
            of Distribution" section shall also allow, to the extent permitted
            by applicable policies and regulations of the SEC, the use of the
            Prospectus by all Persons subject to the prospectus delivery
            requirements of the Securities Act, including, to the extent so
            permitted, all Participating Broker-Dealers, and include a statement
            describing the manner in

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            which Participating Broker-Dealers may resell the Exchange Notes.
            The Company shall use reasonable best efforts to keep the Exchange
            Registration Statement effective and to amend and supplement the
            Prospectus contained therein, in order to permit such Prospectus to
            be lawfully delivered by all Persons subject to the prospectus
            delivery requirements of the Securities Act for 180 days after
            consummation of the Exchange Offer; provided, however, that (i) in
            the case where such Prospectus and any amendment or supplement
            thereto must be delivered by a Participating Broker-Dealer or the
            Initial Purchaser, such period shall be the lesser of 180 days and
            the date on which all Participating Broker-Dealers and the Initial
            Purchaser have sold all Exchange Notes held by them (unless such
            period is extended pursuant to Section 6(k) below) and (ii) the
            Company shall make such Prospectus and any amendment or supplement
            thereto available to any Participating Broker-Dealer for use in
            connection with any resale of any Exchange Notes for a period not
            less than 90 days after the consummation of the Exchange Offer (the
            "Applicable Period").

      (f)   If, upon consummation of the Exchange Offer, either the Initial
            Purchaser or AEP holds any Notes acquired by it and having the
            status of an unsold allotment in the initial distribution, the
            Company (upon the written request from the Initial Purchaser or AEP,
            as the case may be) shall, simultaneously with the delivery of the
            Exchange Notes in the Exchange Offer, issue and deliver to the
            Initial Purchaser or AEP, as the case may be, in exchange (the
            "Private Exchange") for the Notes held by the Initial Purchaser, a
            like principal amount of Senior Secured Notes that are identical to
            the Exchange Notes except for the existence of restrictions on
            transfer thereof under the Securities Act and securities laws of the
            several states of the United States (the "Private Exchange Notes")
            (and which are issued pursuant to the same indenture as the Exchange
            Notes). The Private Exchange Notes shall bear the same CUSIP number
            as the Exchange Notes.

      (g)   In connection with the Exchange Offer, the Company shall:

            (i)   mail to each Holder a copy of the Prospectus forming part of
                  the Exchange Registration Statement, together with an
                  appropriate letter of transmittal and related documents;

            (ii)  utilize the services of a depository for the Exchange Offer
                  with an address in the Borough of Manhattan, the City of New
                  York, which may be the Trustee or an affiliate thereof;

            (iii) permit Holders to withdraw tendered Registrable Notes at any
                  time prior to the close of business, New York time, on the
                  last Business Day on which the Exchange Offer shall remain
                  open; and

            (iv)  otherwise comply in all material respects with all applicable
                  laws.

      (h)   As soon as practicable after the close of the Exchange Offer or the
            Private Exchange, as the case may be, the Company shall:

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            (i)   accept for exchange all Registrable Notes validly tendered
                  pursuant to the Exchange Offer or the Private Exchange, as the
                  case may be, and not validly withdrawn;

            (ii)  deliver to the Trustee for cancellation all Registrable Notes
                  so accepted for exchange; and

            (iii) cause the Trustee to authenticate and deliver promptly to each
                  Holder tendering such Registrable Notes, Exchange Notes or
                  Private Exchange Notes, as the case may be, equal in principal
                  amount at maturity to the Notes of such Holder so accepted for
                  exchange.

      (i)   The Exchange Notes and the Private Exchange Notes may be issued
            under (i) the Indenture or (ii) an indenture identical in all
            material respects to the Indenture, which in either event will
            provide that the Exchange Notes will not be subject to the transfer
            restrictions or additional interest provisions set forth in the
            Indenture, that the Private Exchange Notes will be subject to the
            transfer restrictions set forth in the Indenture, and that the
            Exchange Notes, the Private Exchange Notes and the Notes, if any,
            will be deemed one class of security (subject to the provisions of
            the Indenture) and entitled to participate in all the security
            granted by the Company pursuant to the Collateral Agreements and in
            any Subsidiary Guarantee (as such terms are defined in the
            Indenture) on an equal and ratable basis.

      (j)   If, (i) applicable interpretations of the staff of the SEC would not
            permit the consummation of the Exchange Offer as contemplated by
            this Section 2, (ii) the Exchange Offer is not consummated within 30
            Business Days after the Effectiveness Date for any reason, (iii) any
            holder of Private Exchange Notes so requests in writing to the
            Company within 45 days after the consummation of the Exchange Offer
            or (iv) in the case of any Holder not permitted by applicable law or
            SEC policy to participate in the Exchange Offer or any Holder that
            participates in the Exchange Offer but does not receive Exchange
            Notes on the date of the exchange that may be sold without
            restriction under state and federal securities laws (other than due
            solely to the status of such Holder as an affiliate of the Company
            within the meaning of the Securities Act) and so notifies the
            Company within 45 days of consummation of the Exchange Offer, then
            the Company (and any then existing Guarantor) shall promptly deliver
            to the Holders and the Trustee written notice thereof (the "Shelf
            Notice") and shall file an Initial Shelf Registration pursuant to
            Section 3.

3.    SHELF REGISTRATION

      If a Shelf Notice is delivered pursuant to Section 2(j), then this Section
3 shall apply to all Registrable Notes. Otherwise, upon consummation of the
Exchange Offer in accordance with Section 2, the provisions of this Section 3
shall apply solely with respect to (i) Notes held by any Holder thereof not
permitted by applicable law or SEC policy to participate in the Exchange Offer
and (ii) Exchange Notes that are not freely tradeable as contemplated by Section
2(j)(iv)

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hereof, provided in each case that the relevant Holder has duly notified the
Company within 45 days of the Exchange Offer as required by Section 2(j)(iv).

      (a)   Initial Shelf Registration. The Company shall as promptly as
            practicable after the date of the Shelf Notice file (and shall cause
            any then existing Guarantor to file) with the SEC a Registration
            Statement for an offering to be made on a continuous basis pursuant
            to Rule 415 covering all of the Registrable Notes (the "Initial
            Shelf Registration"). If the Company (and any then existing
            Guarantor) has not yet filed an Exchange Registration Statement, the
            Company shall file (and shall cause any then existing Guarantor to
            file) with the SEC the Initial Shelf Registration on or prior to the
            Filing Date and shall use its reasonable best efforts to cause such
            Initial Shelf Registration to be declared effective under the
            Securities Act on or prior to the Effectiveness Date. Otherwise, the
            Company shall use its reasonable best efforts to file (and shall
            cause any then existing Guarantor to file) with the SEC the Initial
            Shelf Registration within 30 days of the delivery of the Shelf
            Notice and shall use its reasonable best efforts to cause such Shelf
            Registration to be declared effective under the Securities Act as
            promptly as practicable thereafter (but in no event more than 90
            days after delivery of the Shelf Notice). The Initial Shelf
            Registration shall be on Form S-1 or another appropriate form
            permitting registration of such Registrable Notes for resale by
            Holders in the manner or manners reasonably designated by them
            (including, without limitation, one or more underwritten offerings).
            The Company and Guarantors shall not permit any securities other
            than the Registrable Notes to be included in any Shelf Registration.
            No Holder of Registrable Notes shall be entitled to include any of
            its Registrable Notes in any Shelf Registration pursuant to this
            Agreement unless such Holder furnishes to the Company and the
            Trustee in writing, within 20 days after receipt of a written
            request therefor, such information as the Company and the Trustee
            after conferring with counsel with regard to information relating to
            Holders that would be required by the SEC to be included in such
            Shelf Registration or Prospectus included therein, may reasonably
            request for inclusion in any Shelf Registration or Prospectus
            included therein. The Company shall use its reasonable best efforts
            to keep the Initial Shelf Registration continuously effective under
            the Securities Act until the date which is two years from the
            Closing Date (the "Effectiveness Period"), or such shorter period
            ending when (i) all Registrable Notes covered by the Initial Shelf
            Registration have been sold in the manner set forth and as
            contemplated in the Initial Shelf Registration or (ii) a Subsequent
            Shelf Registration covering all of the Registrable Notes covered by
            and not sold under the Initial Shelf Registration or an earlier
            Subsequent Shelf Registration has been declared effective under the
            Securities Act.

      (b)   Subsequent Shelf Registrations. If the Initial Shelf Registration or
            any Subsequent Shelf Registration (as defined below) ceases to be
            effective for any reason at any time during the Effectiveness Period
            (other than because of the sale of all of the securities registered
            thereunder), the Company shall use its reasonable best efforts to
            obtain the prompt withdrawal of any order suspending the
            effectiveness thereof, and in any event shall within 30 days of such
            cessation of effectiveness amend such Shelf Registration in a manner
            designed to obtain the

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            withdrawal of the order suspending the effectiveness thereof, or
            file (and cause any then existing Guarantor to file) an additional
            "shelf" Registration Statement pursuant to Rule 415 covering all of
            the Registrable Notes (a "Subsequent Shelf Registration"). If a
            Subsequent Shelf Registration is filed, the Company shall use its
            reasonable best efforts to cause the Subsequent Shelf Registration
            to be declared effective as soon as practicable after such filing
            and to keep such Subsequent Shelf Registration continuously
            effective for a period equal to the number of days in the
            Effectiveness Period less the aggregate number of days during which
            the Initial Shelf Registration or any Subsequent Shelf Registration
            was previously continuously effective. As used herein the term
            "Shelf Registration" means the Initial Shelf Registration and any
            Subsequent Shelf Registrations.

      (c)   Supplements and Amendments. The Company shall promptly supplement
            and amend any Shelf Registration if required by the rules,
            regulations or instructions applicable to the registration form used
            for such Shelf Registration, if required by the Securities Act, or
            if reasonably requested in writing by the Holders of a majority in
            aggregate principal amount of the Registrable Notes covered by such
            Shelf Registration or by any underwriter of such Registrable Notes.

4.    ADDITIONAL INTEREST

      (a)   The Company acknowledges and agrees that the Holders of Registrable
            Notes will suffer damages if the Company fails to fulfill its
            material obligations under Section 2 or Section 3 hereof and that it
            would not be feasible to ascertain the extent of such damages with
            precision. Accordingly, the Company agrees to pay additional cash
            interest on the Notes ("Additional Interest") under the
            circumstances and to the extent set forth below (each of which shall
            be given independent effect):

            (i)   if neither the Exchange Registration Statement nor the Initial
                  Shelf Registration has been filed on or prior to the Filing
                  Date, Additional Interest shall accrue on the Notes over and
                  above any stated interest at a rate of 0.25% per annum of the
                  principal amount of such Notes for the first 90 days
                  immediately following the Filing Date, such Additional
                  Interest rate increasing by an additional 0.25% per annum at
                  the beginning of each subsequent 90-day period, subject to the
                  proviso in the last sentence of this paragraph;

            (ii)  if neither the Exchange Registration Statement nor the Initial
                  Shelf Registration is declared effective on or prior to the
                  Effectiveness Date, Additional Interest shall accrue on the
                  Notes over and above any stated interest at a rate of 0.25%
                  per annum of the principal amount of such Notes for the first
                  90 days immediately following the Effectiveness Date, such
                  Additional Interest rate increasing by an additional 0.25% per
                  annum at the beginning of each subsequent 90-day period,
                  subject to the proviso in the last sentence of this paragraph;

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            (iii) if (A) the Company (and any then existing Guarantor) has not
                  exchanged Exchange Notes for all Notes validly tendered in
                  accordance with the terms of the Exchange Offer on or prior to
                  30 Business Days after the Effectiveness Date, (B) the
                  Exchange Registration Statement ceases to be effective at any
                  time prior to the time that the Exchange Offer is consummated,
                  (C) if applicable, a Shelf Registration has been declared
                  effective and such Shelf Registration ceases to be effective
                  at any time prior to the second anniversary of its effective
                  date (other than such time as all Notes have been disposed of
                  thereunder) and is not declared effective again within 30
                  days, or (D) pending the announcement of a material corporate
                  transaction, the Company issues a written notice pursuant to
                  Section 6(e)(v) or (vi) that a Shelf Registration Statement or
                  Exchange Registration Statement is unusable and the aggregate
                  number of days in any 365-day period for which all such
                  notices issued or required to be issued, have been, or were
                  required to be, in effect exceeds 120 days in the aggregate or
                  30 days consecutively, in the case of a Shelf Registration
                  statement, or 15 days in the aggregate in the case of an
                  Exchange Registration Statement, then Additional Interest
                  shall accrue on the Notes, over and above any stated interest,
                  at a rate of 0.25% per annum of the principal amount of such
                  Notes commencing on (w) the 31st Business Day after the
                  Effectiveness Date, in the case of (A) above, or (x) the date
                  the Exchange Registration Statement ceases to be effective
                  without being declared effective again within 30 days, in the
                  case of clause (B) above, or (y) the day such Shelf
                  Registration ceases to be effective in the case of (C) above,
                  or (z) the day the Exchange Registration Statement or Shelf
                  Registration ceases to be usable in case of clause (D) above,
                  such Additional Interest rate increasing by an additional
                  0.25% per annum at the beginning of each such subsequent
                  90-day period, subject to the proviso in the last sentence of
                  this paragraph;

            provided, however, that the maximum Additional Interest rate on the
            Notes may not exceed at any one time in the aggregate 0.50% per
            annum; and provided further, that (1) upon the filing of the
            Exchange Registration Statement or Initial Shelf Registration (in
            the case of (i) above), (2) upon the effectiveness of the Exchange
            Registration Statement or Initial Shelf Registration (in the case of
            (ii) above), or (3) upon the exchange of Exchange Notes for all
            Notes tendered (in the case of (iii)(A) above), or upon the
            effectiveness of the Exchange Registration Statement that had ceased
            to remain effective (in the case of clause (iii)(B) above), or upon
            the effectiveness of a Shelf Registration which had ceased to remain
            effective (in the case of (iii)(C) above), Additional Interest on
            the Notes as a result of such clause (or the relevant subclause
            thereof) or upon the effectiveness of such Registration Statement or
            Exchange Registration Statement (in the case of clause (iii)(D)
            above), as the case may be, shall cease to accrue.

      (b)   The Company shall notify the Trustee within 3 Business Days after
            each and every date on which an event occurs in respect of which
            Additional Interest is required to be paid (an "Event Date"). Any
            amounts of Additional Interest due

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            pursuant to clause (a)(i), (a)(ii) or (a)(iii) of this Section 4
            will be payable in cash, on the dates and in the manner provided in
            the Indenture and whether or not any cash interest would then be
            payable on such date, commencing with the first such semi-annual
            date occurring after any such Additional Interest commences to
            accrue. The amount of Additional Interest will be determined by
            multiplying the applicable Additional Interest rate by the principal
            amount of the Notes, multiplied by a fraction, the numerator of
            which is the number of days such Additional Interest rate was
            applicable during such period (determined on the basis of a 360-day
            year comprised of twelve 30-day months and, in the case of a partial
            month, the actual number of days elapsed), and the denominator of
            which is 360.

5.    HOLD-BACK AGREEMENTS

      The Company agrees that it will not effect any public or private sale or
distribution (including a sale pursuant to Regulation D under the Securities
Act) of any securities the same as or substantially similar to those covered by
a Registration Statement filed pursuant to Section 2 or 3 hereof (other than
Additional Notes (as defined in the Indenture) issued under the Indenture), or
any securities convertible into or exchangeable or exercisable for such
securities, during the 10 days prior to, and during the 90-day period beginning
on, the effective date of any Registration Statement filed pursuant to Sections
2 and 3 hereof unless the Holders of a majority in the aggregate principal
amount of the Registrable Notes to be included in such Registration Statement
consent, if the managing underwriter thereof so requests in writing.

6.    REGISTRATION PROCEDURES

      In connection with the filing of any Registration Statement pursuant to
Section 2 or 3 hereof, the Company shall effect such registrations to permit the
sale of such securities covered thereby in accordance with the intended method
or methods of disposition thereof, and pursuant thereto and in connection with
any Registration Statement filed by the Company hereunder, the Company shall:

      (a)   Prepare and file with the SEC as soon as practicable after the date
            hereof but in any event on or prior to the Filing Date, the Exchange
            Registration Statement or if the Exchange Registration Statement is
            not filed because of the circumstances contemplated by Section 2(j),
            a Shelf Registration as prescribed by Section 3, and use its
            reasonable best efforts to cause each such Registration Statement to
            become effective and remain effective as provided herein; provided
            that, if (1) a Shelf Registration is filed pursuant to Section 3 or
            (2) a Prospectus contained in an Exchange Registration Statement
            filed pursuant to Section 2 is required to be delivered under the
            Securities Act by any Participating Broker-Dealer who seeks to sell
            Exchange Notes during the Applicable Period before filing any
            Registration Statement or Prospectus or any amendments or
            supplements thereto the Company shall, if requested, furnish to and
            afford the Holders of the Registrable Notes to be registered
            pursuant to such Shelf Registration Statement, or each Participating
            Broker-Dealer and to their counsel and the managing underwriters, if
            any, a reasonable opportunity to review copies of all such

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            documents (including copies of any documents to be incorporated by
            reference therein and all exhibits thereto) proposed to be filed (in
            each case at least 5 Business Days prior to such filing). The
            Company shall not file any such Registration Statement or Prospectus
            or any amendments or supplements thereto in respect of which the
            Holders must provide information for the inclusion therein without
            the Holders being afforded an opportunity to review such
            documentation if the holders of a majority in aggregate principal
            amount of the Registrable Notes covered by such Registration
            Statement, or any such Participating Broker-Dealer, as the case may
            be, their counsel, or the managing underwriters, if any, shall
            reasonably object in writing on a timely basis.

      (b)   Provide an indenture trustee for the Registrable Notes, the Exchange
            Notes or the Private Exchange Notes, as the case may be, and cause
            the Indenture (or other indenture relating to the Registrable Notes)
            to be qualified under the TIA not later than the effective date of
            the first Registration Statement; and in connection therewith, to
            effect such changes to such indenture as may be required for such
            indenture to be so qualified in accordance with the terms of the
            TIA; and execute, and use its reasonable best efforts to cause such
            trustee to execute, all documents as may be required to effect such
            changes, and all other forms and documents required to be filed with
            the SEC to enable such indenture to be so qualified in a timely
            manner.

      (c)   Prepare and file with the SEC such amendments and post-effective
            amendments to each Shelf Registration or Exchange Registration
            Statement, as the case may be, as may be necessary to keep such
            Registration Statement continuously effective for the Effectiveness
            Period or the Applicable Period, as the case may be; cause the
            related Prospectus to be supplemented by any Prospectus supplement
            required by applicable law, and as so supplemented to be filed
            pursuant to Rule 424 (or any similar provisions then in force)
            promulgated under the Securities Act; and comply with the provisions
            of the Securities Act and the Exchange Act applicable to them with
            respect to the disposition of all securities covered by such
            Registration Statement as so amended or in such Prospectus as so
            supplemented and with respect to the subsequent resale of any
            securities being sold by a Participating Broker-Dealer covered by
            any such Prospectus. The Company shall not, during the Applicable
            Period, voluntarily take any action that would result in selling
            Holders of the Registrable Notes covered by a Registration Statement
            or Participating Broker-Dealers seeking to sell Exchange Notes not
            being able to sell such Registrable Notes or such Exchange Notes
            during that period, unless such action is required by applicable
            law, rule or regulation or permitted by this Agreement.

      (d)   Furnish to such selling Holders and Participating Broker-Dealers who
            so request in writing (i) upon the Company's receipt, a copy of the
            order of the SEC declaring such Registration Statement and any post
            effective amendment thereto effective, (ii) such reasonable number
            of copies of such Registration Statement and of each amendment and
            supplement thereto (in each case including any documents
            incorporated therein by reference and all exhibits) and (iii) such

                                       12
<PAGE>
            reasonable number of copies of the Prospectus included in such
            Registration Statement (including each preliminary Prospectus) and
            each amendment and supplement thereto, and such reasonable number of
            copies of the final Prospectus as filed by the Company pursuant to
            Rule 424(b) under the Securities Act, in conformity with the
            requirements of the Securities Act and each amendment and supplement
            thereto. The Company hereby consents to the use of the Prospectus by
            each of the selling Holders of Registrable Notes or each such
            Participating Broker-Dealer, as the case may be, and the
            underwriters or agents, if any, and dealers, if any, in connection
            with the offering and sale of the Registrable Notes covered by, or
            the sale by Participating Broker-Dealers of the Exchange Notes
            pursuant to, such Prospectus and any amendment thereto.

      (e)   If (1) a Shelf Registration is filed pursuant to Section 3, or (2) a
            Prospectus contained in an Exchange Registration Statement filed
            pursuant to Section 2 is required to be delivered under the
            Securities Act by any Participating Broker-Dealer who seeks to sell
            Exchange Notes during the Applicable Period relating thereto, the
            Company shall notify in writing the selling Holders of Registrable
            Notes, or each such Participating Broker-Dealer, as the case may be,
            their counsel and the managing underwriters, if any, promptly (but
            in any event within 2 Business Days) (i) when a Prospectus or any
            Prospectus supplement or post-effective amendment has been filed,
            and, with respect to a Registration Statement or any post-effective
            amendment, when the same has become effective (including in such
            notice a written statement that any Holder may, upon request,
            obtain, without charge, one conformed copy of such Registration
            Statement or post-effective amendment including financial statements
            and schedules, documents incorporated or deemed to be incorporated
            by reference and exhibits), (ii) of the issuance by the SEC of any
            stop order suspending the effectiveness of a Registration Statement
            or of any order preventing or suspending the use of any Prospectus
            or the initiation of any proceedings for that purpose, (iii) if at
            any time when a Prospectus is required by the Securities Act to be
            delivered in connection with sales of the Registrable Notes the
            representations and warranties of the Company contained in any
            agreement (including any underwriting agreement) contemplated by
            Section 6(n) hereof cease to be true and correct, (iv) of the
            receipt by the Company of any notification with respect to the
            suspension of the qualification or exemption from qualification of a
            Registration Statement or any of the Registrable Notes or the
            Exchange Notes to be sold by any Participating Broker-Dealer for
            offer or sale in any jurisdiction, or the initiation or threatening
            of any proceeding for such purpose, (v) of the happening of any
            event, the existence of any condition of any information becoming
            known that makes any statement made in such Registration Statement
            or related Prospectus or any document incorporated or deemed to be
            incorporated therein by reference untrue in any material respect or
            that requires the making of any changes in, or amendments or
            supplements to, such Registration Statement, Prospectus or documents
            so that, in the case of the Registration Statement and the
            Prospectus, it will not contain any untrue statement of a material
            fact or omit to state any material fact required to be stated
            therein or necessary to make the statements therein, in light of the
            circumstances under which they were made, not misleading

                                       13
<PAGE>
            and (vi) of any reasonable determination by the Company that a
            post-effective amendment to a Registration Statement would be
            appropriate.

      (f)   Use its reasonable best efforts to prevent the issuance of any order
            suspending the effectiveness of a Registration Statement or of any
            order preventing or suspending the use of a Prospectus or suspending
            the qualification (or exemption from qualification) of any of the
            Registrable Notes or the Exchange Notes to be sold by any
            Participating Broker-Dealer, for sale in any jurisdiction, and, if
            any such order is issued, to use its reasonable best efforts to
            obtain the withdrawal of any such order at the earliest possible
            date.

      (g)   If (A) a Shelf Registration is filed pursuant to Section 3 or (B) a
            Prospectus contained in an Exchange Registration Statement filed
            pursuant to Section 2 is required to be delivered under the
            Securities Act by any Participating Broker-Dealer who seeks to sell
            Exchange Notes during the Applicable Period or (C) reasonably
            requested in writing by the managing underwriters, if any, or the
            Holders of a majority in aggregate principal amount of the
            Registrable Notes being sold in connection with an underwritten
            offering, (i) promptly incorporate in a Prospectus supplement or
            post-effective amendment such information or revisions to
            information therein relating to such underwriters or selling Holders
            as the managing underwriters, if any, or such Holders or their
            counsel reasonably request in writing to be included or made therein
            and (ii) make all required filings of such Prospectus supplement or
            such post-effective amendment as soon as practicable after the
            Company has received notification of the matters to be incorporated
            in such Prospectus supplements or post-effective amendment.

      (h)   Prior to any public offering of Registrable Notes or any delivery of
            a Prospectus contained in the Exchange Registration Statement by any
            Participating Broker-Dealer who seeks to sell Exchange Notes during
            the Applicable Period, use its reasonable best efforts to register
            or qualify, and to cooperate with the selling Holders of Registrable
            Notes or each such Participating Broker-Dealer, as the case may be,
            the underwriters, if any, and their respective counsel in connection
            with the registration or qualification (or exemption from such
            registration or qualification) of such Registrable Notes or Exchange
            Notes, as the case may be, for offer and sale under the securities
            or Blue Sky laws of such jurisdictions within the United States as
            any selling Holder, Participating Broker-Dealer or any managing
            underwriter or underwriters, if any, reasonably request in writing;
            provided that where Exchange Notes held by Participating
            Broker-Dealers or Registrable Notes are offered other than through
            an underwritten offering, the Company agrees to cause its counsel to
            perform Blue Sky investigations and file any registrations and
            qualifications required to be filed pursuant to this Section 6(h),
            keep each such registration or qualification (or exemption
            therefrom) effective during the period such Registration Statement
            is required to be kept effective and do any and all other acts or
            things reasonably necessary or advisable to enable the disposition
            in such jurisdictions of the Exchange Notes held by Participating
            Broker-Dealers or the Registrable Notes covered by the applicable
            Registration Statement; provided that neither the Company nor any
            existing

                                       14
<PAGE>
            Guarantor shall be required to (A) qualify generally to do business
            in any jurisdiction where it is not then so qualified, (B) take any
            action that would subject it to general service of process in any
            such jurisdiction where it is not then so subject or (C) subject
            itself to taxation in any such jurisdiction where it is not then so
            subject.

      (i)   If (A) a Shelf Registration is filed pursuant to Section 3 or (B) a
            Prospectus contained in an Exchange Registration Statement filed
            pursuant to Section 2 is requested to be delivered under the
            Securities Act by any Participating Broker-Dealer who seeks to sell
            Exchange Notes during the Applicable Period, cooperate with the
            selling Holders of Registrable Notes and the managing underwriter or
            underwriters, if any, to facilitate the timely preparation and
            delivery of certificates representing Registrable Notes to be sold,
            which certificates shall not bear any restrictive legends and shall
            be in a form eligible for deposit with The Depository Trust Company,
            and enable such Registrable Notes to be in such denominations and
            registered in such names as the managing underwriter or
            underwriters, if any, or Holders may reasonably request in writing.

      (j)   Use its reasonable best efforts to cause the Registrable Notes
            covered by any Registration Statement to be registered with or
            approved by such governmental agencies or authorities as may be
            necessary to enable the seller or sellers thereof or the
            underwriter, if any, to consummate the disposition of such
            Registrable Notes, except as may be required solely as a consequence
            of the nature of such selling Holder's business, in which case the
            Company will cooperate in all reasonable respects with the filing of
            such Registration Statement and the granting of such approvals;
            provided that neither the Company nor any existing Guarantor shall
            be required to (A) qualify generally to do business in any
            jurisdiction where it is not then so qualified, (B) take any action
            that would subject it to general service of process in any
            jurisdiction where it is not then so subject or (C) subject itself
            to taxation in any such jurisdiction where it is not then so
            subject.

      (k)   If (1) a Shelf Registration is filed pursuant to Section 3, or (2) a
            Prospectus contained in an Exchange Registration Statement filed
            pursuant to Section 2 is required to be delivered under the
            Securities Act by any Participating Broker-Dealer who seeks to sell
            Exchange Notes during the Applicable Period, upon the occurrence of
            any event contemplated by paragraph 6(e)(v) or 6(e)(vi) hereof, as
            promptly as practicable, prepare and file with the SEC, at the
            expense of the Company, a supplement or post-effective amendment to
            the Registration Statement or a supplement to the related Prospectus
            or any document incorporated or deemed to be incorporated therein by
            reference, or file any other required document so that, as
            thereafter delivered to the purchasers of the Registrable Notes
            being sold thereunder or to the purchasers of the Exchange Notes to
            whom such Prospectus will be delivered by a Participating
            Broker-Dealer, such Prospectus will not contain an untrue statement
            of a material fact or omit to state a material fact required to be
            stated therein or necessary to make the statements therein, in light
            of the circumstances under which they were made, not misleading.

                                       15
<PAGE>
      (l)   Use its reasonable best efforts to cause the Registrable Notes
            covered by a Registration Statement to be rated with such
            appropriate rating agencies, if so requested in writing by the
            Holders of a majority in aggregate principal amount of the
            Registrable Notes covered by such Registration Statement or the
            managing underwriter or underwriters, if any.

      (m)   Prior to the initial issuance of the Exchange Notes, (i) provide the
            Trustee with one or more certificates for the Registrable Notes in a
            form eligible for deposit with The Depository Trust Company and (ii)
            provide a CUSIP number for the Exchange Notes.

      (n)   If a Shelf Registration is filed pursuant to Section 3, enter into
            such agreements (including an underwriting agreement in form, scope
            and substance as is customary in underwritten offerings of debt
            securities similar to the Notes, as may be appropriate in the
            circumstances) and take all such other actions in connection
            therewith (including those reasonably requested in writing by the
            managing underwriters, if any, or the Holders of a majority in
            aggregate principal amount of the Registrable Notes being sold) in
            order to expedite or facilitate the registration or the disposition
            of such Registrable Notes, and in such connection, whether or not an
            underwriting agreement is entered into and whether or not the
            registration is an Underwritten Registration, (i) make such
            representations and warranties to the Holders and the underwriters,
            if any, with respect to the business of the Company and its
            subsidiaries as then conducted, and the Registration Statement,
            Prospectus and documents, if any, incorporated or deemed to be
            incorporated by reference therein, in each case, in form, substance
            and scope as are customarily made by issuers to underwriters in
            underwritten offerings of debt securities similar to the Notes, as
            may be appropriate in the circumstances, and confirm the same if and
            when reasonably required; (ii) obtain an opinion of counsel to the
            Company and updates thereof (which counsel and opinions (in form,
            scope and substance) shall be reasonably satisfactory to the
            managing underwriters, if any, and the Holders of a majority in
            aggregate principal amount of the Registrable Notes being sold),
            addressed to each selling Holder and each of the underwriters, if
            any, covering the matters customarily covered in opinions of counsel
            to the Company requested in underwritten offerings of debt
            securities similar to the Notes, as may be appropriate in the
            circumstances; (iii) obtain "cold comfort" letters and updates
            thereof (which letters and updates (in form, scope and substance)
            shall be reasonably satisfactory to the managing underwriters) from
            the independent certified public accountants of the Company (and, if
            necessary, any other independent certified public accountants of any
            subsidiary of the Company or of any business acquired by the Company
            for which financial statements and financial data are, or are
            required to be, included in the Registration Statement), addressed
            to each of the underwriters, such letters to be in customary form
            and covering matters of the type customarily covered in "cold
            comfort" letters in connection with underwritten offerings of debt
            securities similar to the Notes, as may be appropriate in the
            circumstances, and such other matters as reasonably requested in
            writing by the underwriters; and (iv) deliver such documents and
            certificates as may be reasonably requested in writing by the
            Holders of a

                                       16
<PAGE>
            majority in aggregate principal amount of the Registrable Notes
            being sold and the managing underwriters, if any, to evidence the
            continued validity of the representations and warranties of the
            Company and its subsidiaries made pursuant to clause (i) above and
            to evidence compliance with any conditions contained in the
            underwriting agreement or other similar agreement entered into by
            the Company.

      (o)   If (1) a Shelf Registration is filed pursuant to Section 3, or (2) a
            Prospectus contained in an Exchange Registration Statement filed
            pursuant to Section 2 is required to be delivered under the
            Securities Act by any Participating Broker-Dealer who seeks to sell
            Exchange Notes during the Applicable Period, make available for
            inspection by any selling Holder of such Registrable Notes being
            sold, or each such Participating Broker-Dealer, as the case may be,
            any underwriter participating in any such disposition of Registrable
            Notes, if any, and any attorney, accountant or other agent retained
            by any such selling Holder or each such Participating Broker-Dealer,
            as the case may be, or underwriter (collectively, the "Inspectors"),
            at the offices where normally kept, during reasonable business
            hours, all financial and other records and pertinent corporate
            documents of the Company and its subsidiaries (collectively, the
            "Records") as shall be reasonably necessary to enable them to
            exercise any applicable due diligence responsibilities, and cause
            the officers, directors and employees of the Company and its
            subsidiaries to supply all information reasonably requested in
            writing by any such Inspector in connection with such Registration
            Statement. Each Inspector shall agree in writing that it will keep
            the Records confidential and not disclose any of the Records unless
            (i) the disclosure of such Records is necessary to avoid or correct
            a misstatement or omission in such Registration Statement, (ii) the
            release of such Records is ordered pursuant to a subpoena or other
            order from a court of competent jurisdiction, (iii) the information
            in such Records is public or has been made generally available to
            the public other than as a result of a disclosure or failure to
            safeguard by such Inspector or (iv) disclosure of such information
            is, in the reasonable written opinion of counsel for any Inspector,
            necessary or advisable in connection with any action, claim, suit or
            proceeding, directly or indirectly, involving or potentially
            involving such Inspector and arising out of, based upon, related to,
            or involving this Agreement, or any transaction contemplated hereby
            or arising hereunder. Each selling Holder of such Registrable Notes
            and each such Participating Broker-Dealer will be required to agree
            that information obtained by it as a result of such inspections
            shall be deemed confidential and shall not be used by it as the
            basis for any market transactions in the securities of the Company
            unless and until such is made generally available to the public.
            Each Inspector, each selling Holder of such Registrable Notes and
            each such Participating Broker-Dealer will be required to further
            agree that it will, upon learning that disclosure of such Records is
            sought in a court of competent jurisdiction, give notice to the
            Company and, to the extent practicable, use its best efforts to
            allow the Company, at its expense, to undertake appropriate action
            to prevent disclosure of the Records deemed confidential at its
            expense.

                                       17
<PAGE>
      (p)   Comply with all applicable rules and regulations of the SEC and make
            generally available to the security holders of the Company with
            regard to any applicable Registration Statement earning statements
            satisfying the provisions of section 11(a) of the Securities Act and
            Rule 158 thereunder (or any similar rule promulgated under the
            Securities Act) no later than 45 days after the end of any 12-month
            period (or 90 days after the end of any 12-month period if such
            period is a fiscal year) (i) commencing at the end of any fiscal
            quarter in which Registrable Notes are sold to underwriters in a
            firm commitment or best efforts underwritten offering and (ii) if
            not sold to underwriters in such an offering, commencing on the
            first day of the first fiscal quarter of the Company after the
            effective date of a Registration Statement, which statements shall
            cover said 12-month periods.

      (q)   Upon consummation of an Exchange Offer or Private Exchange, obtain
            an opinion of counsel to the Company (in form, scope and substance
            reasonably satisfactory to the Initial Purchaser), addressed to the
            Trustee for the benefit of all Holders participating in the Exchange
            Offer or Private Exchange, as the case may be, to the effect that
            (i) the Company and the existing Guarantors have duly authorized,
            executed and delivered the Exchange Notes or the Private Exchange
            Notes, as the case may be, and the Indenture, (ii) the Exchange
            Notes or the Private Exchange Notes, as the case may be, and the
            Indenture constitute legal, valid and binding obligations of the
            Company and the existing Guarantors, enforceable against the Company
            and the existing Guarantors in accordance with their respective
            terms, except as such enforcement may be subject to customary United
            States and foreign exceptions and (iii) all obligations of the
            Company and the existing Guarantors under the Exchange Notes or the
            Private Exchange Notes, as the case may be, and the Indenture are
            secured to the same extent as the Notes.

      (r)   If the Exchange Offer or a Private Exchange is to be consummated,
            upon delivery of the Registrable Notes by the Holders to the Company
            (or to such other Person as directed by the Company) in exchange for
            the Exchange Notes or the Private Exchange Notes, as the case may
            be, the Company shall mark, or caused to be marked, on such
            Registrable Notes that the Exchange Notes or the Private Exchange
            Notes, as the case may be, are being issued as substitute evidence
            of the indebtedness originally evidenced by the Registrable Notes;
            provided that in no event shall such Registrable Notes be marked as
            paid or otherwise satisfied.

      (s)   Cooperate with each seller of Registrable Notes covered by any
            Registration Statement and each underwriter, if any, participating
            in the disposition of such Registrable Notes and their respective
            counsel in connection with any filings required to be made with the
            NASD.

      (t)   Use its reasonable best efforts to take all other steps reasonably
            necessary to effect the registration of the Registrable Notes
            covered by a Registration Statement contemplated hereby.

                                       18
<PAGE>
      (u)   The Company may require each seller of Registrable Notes or
            Participating Broker-Dealer as to which any registration is being
            effected to furnish to the Company such information regarding such
            seller or Participating Broker-Dealer and the distribution of such
            Registrable Notes as the Company may, from time to time, reasonably
            request in writing. The Company may exclude from such registration
            the Registrable Notes of any seller who fails to furnish such
            information within a reasonable time (which time in no event shall
            exceed 45 days) after receiving such request. Each seller of
            Registrable Notes or Participating Broker-Dealer as to which any
            registration is being effected agrees to furnish promptly to the
            Company all information required to be disclosed in order to make
            the information previously furnished by such seller not materially
            misleading.

      (v)   Each Holder of Registrable Notes and each Participating
            Broker-Dealer agrees by acquisition of such Registrable Notes or
            Exchange Notes to be sold by such Participating Broker-Dealer, as
            the case may be, that, upon receipt of any notice from the Company
            of the happening of any event of the kind described in Section
            6(e)(ii), 6(e)(iv), 6(e)(v), or 6(e)(vi), such Holder will forthwith
            discontinue disposition of such Registrable Notes covered by a
            Registration Statement and such Participating Broker-Dealer will
            forthwith discontinue disposition of such Exchange Notes pursuant to
            any Prospectus and, in each case, forthwith discontinue
            dissemination of such Prospectus until such Holder's or
            Participating Broker-Dealer's receipt of the copies of the
            supplemented or amended Prospectus contemplated by Section 6(k), or
            until it is advised in writing (the "Advice") by the Company that
            the use of the applicable Prospectus may be resumed, and has
            received copies of any amendments or supplements thereto and, if so
            directed by the Company, such Holder or Participating Broker-Dealer,
            as the case may be, will deliver to the Company all copies, other
            than permanent file copies, then in such Holder's or Participating
            Broker-Dealer's possession, of the Prospectus covering such
            Registrable Notes current at the time of the receipt of such notice.
            In the event the Company shall give any such notice, the Applicable
            Period shall be extended by the number of days during such periods
            from and including the date of the giving of such notice to and
            including the date when each Participating Broker-Dealer shall have
            received (x) the copies of the supplemented or amended Prospectus
            contemplated by Section 6(k) or (y) the Advice.

7.    REGISTRATION EXPENSES

      (a)   All fees and expenses incident to the performance of or compliance
            with this Agreement by the Company shall be borne by the Company,
            whether or not the Exchange Offer or a Shelf Registration is filed
            or becomes effective, including, without limitation, (i) all
            registration and filing fees, including, without limitation, (A)
            fees with respect to filings required to be made with the NASD in
            connection with any underwritten offering and (B) fees and expenses
            of compliance with state securities or Blue Sky laws as provided in
            Section 6(h) hereof, (ii) printing expenses, including, without
            limitation, expenses of printing Prospectuses if the printing of
            Prospectuses is requested by the managing underwriter or

                                       19
<PAGE>
            underwriters, if any, or by the Holders of a majority in aggregate
            principal amount of the Registrable Notes included in any
            Registration Statement or by any Participating Broker-Dealer during
            the Applicable Period, as the case may be, (iii) messenger,
            telephone and delivery expenses incurred in connection with the
            performance of their obligations hereunder, (iv) fees and
            disbursements of counsel for the Company, (v) fees and disbursements
            of all independent certified public accountants referred to in
            Section 6 (including, without limitation, the expenses of any
            special audit and "cold comfort" letters required by or incident to
            such performance), (vi) rating agency fees, (vii) Securities Act
            liability insurance, if the Company desires such insurance, (viii)
            fees and expenses of all other Persons retained by the Company, (ix)
            internal expenses of the Company (including, without limitation, all
            salaries and expenses of officers and employees of the Company
            performing legal or accounting duties), (x) the expense of any
            annual audit, (xi) the fees and expenses of the Trustee and the
            Exchange Agent and (xii) the expenses relating to printing, word
            processing and distributing all Registration Statements,
            underwriting agreements, securities sales agreements, indentures and
            any other documents necessary in order to comply with this Agreement
            (other than underwriting discounts and commissions).

      (b)   The Company shall reimburse the Holders for the reasonable fees and
            disbursements of not more than one counsel chosen by the Holders of
            a majority in aggregate principal amount of the Registrable Notes to
            be included in any Registration Statement. The Company shall pay all
            documentary, stamp, transfer or other transactional taxes
            attributable to the issuance or delivery of the Exchange Notes or
            Private Exchange Notes in exchange for the Notes; provided that the
            Company shall not be required to pay taxes payable in respect of any
            transfer involved in the issuance or delivery of any Exchange Note
            or Private Exchange Note in a name other than that of the Holder of
            the Note in respect of which such Exchange Note or Private Exchange
            Note is being issued. The Company shall reimburse the Holders for
            fees and expenses (including reasonable fees and expenses of counsel
            to the Holders) relating to any enforcement of any rights of the
            Holders under this Agreement.

8.    INDEMNIFICATION

      (a)   Indemnification by the Company. The Company and the Guarantors
            jointly and severally agree to indemnify and hold harmless each
            Holder of Registrable Notes, Exchange Notes or Private Exchange
            Notes and each Participating Broker-Dealer selling Exchange Notes
            during the Applicable Period, each Person, if any, who controls each
            such Holder (within the meaning of Section 15 of the Securities Act
            or Section 20(a) of the Exchange Act) and the officers, directors
            and partners of each such Holder, Participating Broker-Dealer and
            controlling person from and against any losses, claims, damages,
            liabilities, costs (including, without limitation, reasonable costs
            of preparation and reasonable attorneys' fees as provided in this
            Section 8) and expenses (including, without limitation, reasonable
            costs and expenses incurred in connection with investigating,
            preparing, pursuing or defending against any of the foregoing)
            (collectively, "Losses"), insofar as

                                       20
<PAGE>
            such Losses arise out of or are based upon any untrue statement or
            alleged untrue statement of a material fact in any Registration
            Statement, Prospectus or form of prospectus, or in any amendment or
            supplement thereto, or in any preliminary prospectus, or any
            omission or alleged omission to state therein a material fact
            required to be stated therein or necessary to make the statements
            therein, in light of the circumstances under which they were made,
            not misleading, except insofar as such Losses result primarily from
            information relating to such Holder or Participating Broker-Dealer
            and furnished in writing to the Company (or reviewed and approved in
            writing) by such Holder or Participating Broker-Dealer or their
            counsel expressly for use therein; provided, however, that the
            Company and the Guarantors will not be liable to any Indemnified
            Party (as defined below) under this Section 8 to the extent Losses
            resulted primarily from an untrue statement or omission or alleged
            untrue statement or omission that was contained or made in any
            preliminary prospectus and corrected in the Prospectus or any
            amendment or supplement thereto if (i) any such Losses resulted from
            an action, claim or suit by any Person who purchased Registrable
            Notes or Exchange Notes which are the subject thereof from such
            Indemnified Party and (ii) it is established in the related
            proceeding that such Indemnified Party failed to deliver or provide
            a copy of the Prospectus (as amended or supplemented) to such Person
            with or prior to the confirmation of the sale of such Registrable
            Notes or Exchange Notes sold to such Person if required by
            applicable law, unless such failure to deliver or provide a copy of
            the Prospectus (as amended or supplemented) was a result of
            noncompliance by the Company with Section 6 of this Agreement. The
            Company and the Guarantors also agree to indemnify underwriters,
            selling brokers, dealer managers and similar securities industry
            professionals participating in the distribution, their officers,
            directors, agents and employees and each Person who controls such
            Persons (within the meaning of Section 15 of the Securities Act or
            Section 20(a) of the Exchange Act) to the same extent as provided
            above with respect to the indemnification of the Holders or the
            Participating Broker-Dealer.

      (b)   Indemnification by Holder. Each Holder shall indemnify and hold
            harmless the Company, the Guarantors, their respective directors and
            each Person, if any, who controls the Company (within the meaning of
            Section 15 of the Securities Act and Section 20(a) of the Exchange
            Act), and the directors, officers and partners of such controlling
            persons, from and against all Losses insofar as such Losses arise
            out of or are based upon any untrue statement or alleged untrue
            statement of a material fact in any Registration Statement,
            Prospectus or form of prospectus or in any amendment or supplement
            thereto or in any preliminary prospectus, or any omission or alleged
            omission to state therein a material fact required to be stated
            therein or necessary to make the statements therein, in the light of
            the circumstances under which they were made, not misleading insofar
            as such Losses are finally judicially determined by a court of
            competent jurisdiction to have resulted primarily from any untrue
            statement or alleged untrue statement of any material fact, alleged
            omission of any material fact contained in or omitted from any
            information so furnished in writing by such Holder to the Company
            expressly for use therein. Notwithstanding the foregoing, in no
            event shall the liability of any selling Holder be greater in amount
            than the dollar amount of the

                                       21
<PAGE>
            proceeds (net of payment of all expenses) received by such Holder
            upon the sale of the Registrable Notes giving rise to such
            indemnification obligation.

      (c)   Conduct of Indemnification Proceedings. If any proceeding shall be
            brought or asserted against any Person entitled to indemnity
            hereunder (an "Indemnified Party"), such Indemnified Party shall
            promptly notify the party or parties from which such indemnity is
            sought (the "Indemnifying Party" or "Indemnifying Parties", as
            applicable) in writing; provided, that the failure to so notify the
            Indemnifying Parties shall not relieve the Indemnifying Parties from
            any obligation or liability except to the extent (but only to the
            extent) that it shall be finally determined by a court of competent
            jurisdiction (which determination is not subject to appeal) that the
            Indemnifying Parties have been prejudiced materially by such
            failure.

      The Indemnifying Party shall have the right, exercisable by giving written
notice to an Indemnified Party, within 20 Business Days after receipt of written
notice from such Indemnified Party of such proceeding, to assume, at its
expense, the defense of any such proceeding, provided, that an Indemnified Party
shall have the right to employ separate counsel in any such proceeding and to
participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party or parties unless: (1) the
Indemnifying Party has agreed to pay such fees and expenses; or (2) the
Indemnifying Party shall have failed promptly to assume the defense of such
proceeding or shall have failed to employ counsel reasonably satisfactory to
such Indemnified Party; or (3) the named parties to any such proceeding
(including any impleaded parties) include both such Indemnified Party and the
Indemnifying Party or any of its affiliates or controlling persons, and such
Indemnified Party shall have been advised by counsel that there may be one or
more defenses available to such Indemnified Party that are in addition to, or in
conflict with, those defenses available to the Indemnifying Party or such
affiliate or controlling person (in which case, if such Indemnified Party
notifies the Indemnifying Parties in writing that it elects to employ separate
counsel at the expense of the Indemnifying Parties, the Indemnifying Parties
shall not have the right to assume the defense and the reasonable fees and
expenses of such counsel shall be at the expense of the Indemnifying Party; it
being understood, however, that, the Indemnifying Party shall not, in connection
with any one such proceeding or separate but substantially similar or related
proceedings in the same jurisdiction, arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than
one separate firm of attorneys (together with appropriate local counsel) at any
time for such Indemnified Party).

      No Indemnifying Party shall be liable for any settlement of any such
proceeding effected without its written consent, which shall not be unreasonably
withheld, but if settled with its written consent, or if there be a final
judgment for the plaintiff in any such proceeding, each Indemnifying Party
jointly and severally agrees, subject to the exceptions and limitations set
forth above, to indemnify and hold harmless each Indemnified Party from and
against any and all Losses by reason of such settlement or judgment. The
Indemnifying Party shall not consent to the entry of any judgment or enter into
any settlement that does not include as an unconditional term thereof the giving
by the claimant or plaintiff to each Indemnified Party of a release, in form and
substance reasonably satisfactory to the Indemnified Party, from all liability
in respect

                                       22
<PAGE>
of such proceeding for which such Indemnified Party would be entitled to
indemnification hereunder (whether or not any Indemnified Party is a party
thereto).

      (d)   Contribution. If the indemnification provided for in this Section 8
            is unavailable to an Indemnified Party or is insufficient to hold
            such Indemnified Party harmless for any Losses in respect of which
            this Section 8 would otherwise apply by its terms (other than by
            reason of exceptions provided in this Section 8), then each
            applicable Indemnifying Party, in lieu of indemnifying such
            Indemnified Party, shall have a joint and several obligation to
            contribute to the amount paid or payable by such Indemnified Party
            as a result of such Losses, in such proportion as is appropriate to
            reflect the relative fault of the Indemnifying Party, on the one
            hand, and such Indemnified Party, on the other hand, in connection
            with the actions, statements or omissions that resulted in such
            Losses as well as any other relevant equitable considerations. The
            relative fault of such Indemnifying Party, on the one hand, and
            Indemnified Party, on the other hand, shall be determined by
            reference to, among other things, whether any untrue or alleged
            untrue statement of a material fact or omission or alleged omission
            to state a material fact relates to information supplied by such
            Indemnifying Party or Indemnified Party, and the parties' relative
            intent, knowledge, access to information and opportunity to correct
            or prevent any such statement or omission. The amount paid or
            payable by an Indemnified Party as a result of any Losses shall be
            deemed to include any legal or other fees or expenses incurred by
            such party in connection with any proceeding, to the extent such
            party would have been indemnified for such fees or expenses if the
            indemnification provided for in Section 8(a) or 8(b) was available
            to such party.

      The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 8(d) were determined by pro rata
allocation or by other method of allocation that does not take account of the
equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 8(d), a selling Holder shall not
be required to contribute, in the aggregate, any amount in excess of such
Holder's Maximum Contribution Amount. A selling Holder's "Maximum Contribution
Amount" shall equal the excess of (i) the aggregate proceeds received by such
Holder pursuant to the sale of such Registrable Notes or Exchange Notes over
(ii) the aggregate amount of damages that such Holder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

      The indemnity and contribution agreements contained in this Section 8 are
in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

9.    RULES 144 AND 144A

      The Company covenants that it shall file the reports required to be filed
by it (if so required) under the Securities Act and the Exchange Act in a timely
manner and, if at any time the Company is not required to file such reports, it
will, upon the written request of any Holder

                                       23
<PAGE>
of Registrable Notes, make publicly available other information necessary to
permit sales pursuant to Rule 144 and 144A. Upon the request of any Holder, the
Company shall deliver to such Holder a written statement as to whether it has
complied with such information and requirements.

10.   UNDERWRITTEN REGISTRATIONS OF REGISTRABLE NOTES

      If any of the Registrable Notes covered by any Shelf Registration are to
be sold in an underwritten offering, the investment banker or investment bankers
and manager or managers that will manage the offering will be selected by the
Holders of a majority in aggregate principal amount of such Registrable Notes
included in such offering; provided, however, that such investment banker or
investment bankers and manager or managers must be reasonably acceptable to the
Company.

      No Holder of Registrable Notes may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder's
Registrable Notes on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

11.   MISCELLANEOUS

      (a)   No Inconsistent Agreements. The Company has not entered, as of the
            date hereof, and the Company shall not enter, after the date of this
            Agreement, into any agreement with respect to any of its securities
            that is inconsistent with the rights granted to the Holders of
            Securities in this Agreement or otherwise conflicts with the
            provisions hereof. The Company has not entered and will not enter
            into any agreement with respect to any of its securities that will
            grant to any Person piggy-back rights with respect to a Registration
            Statement.

      (b)   Adjustments Affecting Registrable Notes. The Company shall not,
            directly or indirectly, take any action with respect to the
            Registrable Notes as a class that would adversely affect the ability
            of the Holders to include such Registrable Notes in a registration
            undertaken pursuant to this Agreement.

      (c)   Amendments and Waivers. The provisions of this Agreement may not be
            amended, modified or supplemented, and waivers or consents to
            departures from the provisions hereof may not be given, otherwise
            than with the prior written consent of the Holders of not less than
            a majority in aggregate principal amount of the then outstanding
            Registrable Notes in circumstances that would adversely affect any
            Holders of Registrable Notes; provided, however, that Section 8 and
            this Section 11(c) may not be amended, modified or supplemented
            without the prior written consent of each Holder. Notwithstanding
            the foregoing, a waiver or consent to depart from the provisions
            hereof with respect to a matter that relates exclusively to the
            rights of Holders of Registrable Notes whose securities are being
            tendered pursuant to the Exchange Offer or sold pursuant to a Notes

                                       24
<PAGE>
            Registration Statement and that does not directly or indirectly
            affect, impair, limit or compromise the rights of other Holders of
            Registrable Notes may be given by Holders of at least a majority in
            aggregate principal amount of the Registrable Notes being tendered
            or being sold by such Holders pursuant to such Notes Registration
            Statement.

      (d)   Notices. All notices and other communications provided for or
            permitted hereunder shall be made in writing by hand delivery,
            registered first-class mail, next-day air courier or telecopier:

            (i)   if to a Holder of Securities or to any Participating
                  Broker-Dealer, at the most current address of such Holder or
                  Participating Broker-Dealer, as the case may be, set forth on
                  the records of the registrar of the Notes, with a copy in like
                  manner to the Initial Purchaser as follows:

                        Jefferies & Company, Inc.
                        11100 Santa Monica Boulevard, 10th Floor
                        Los Angeles, California 90025
                        Facsimile No.:  (310) 575-5166
                        Attention:   Jerry M. Gluck, Esq.

                  with a copy to:

                        Mayer, Brown, Rowe & Maw
                        1675 Broadway
                        New York, New York  10019
                        Facsimile No.:  (212) 262-1910
                        Attention:  Ronald S. Brody, Esq.

            (ii)  if to the Initial Purchaser, at the address specified in
                  Section 12(d)(1);

            (iii) if to the Company, as follows:

                        Golfsmith International, Inc.
                        11000 N. IH-35
                        Austin, TX, 78753-3195
                        Attention:  Chief Executive Officer

                  with a copy to:

                        King & Spalding
                        1185 Avenue of the Americas
                        New York, NY 10036
                        Attention:  Mary A. Bernard, Esq.

                                       25
<PAGE>
      All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; three business days
after being deposited in the United States mail, postage prepaid, if mailed; one
business day after being timely delivered to a next-day air courier guaranteeing
overnight delivery; and when receipt is acknowledged by the addressee, if
telecopied.

      Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee under the
Indenture at the address specified in such Indenture.

      (e)   Successors and Assigns. This Agreement shall inure to the benefit of
            and be binding upon the successors and assigns of each of the
            parties hereto, including, without limitation and without the need
            for an express assignment, subsequent Holders of Securities.

      (f)   Counterparts. This Agreement may be executed in any number of
            counterparts and by the parties hereto in separate counterparts,
            each of which when so executed shall be deemed to be an original and
            all of which taken together shall constitute one and the same
            agreement.

      (g)   Headings. The headings in this Agreement are for convenience of
            reference only and shall not limit or otherwise affect the meaning
            hereof.

      (h)   Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
            ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
            PRINCIPLES OF CONFLICT OF LAW. THE COMPANY HEREBY IRREVOCABLY
            SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN
            THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL
            COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN
            RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
            TO THIS AGREEMENT, AND IRREVOCABLY ACCEPTS FOR ITS AND IN RESPECT OF
            ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE
            AFORESAID COURTS. THE COMPANY IRREVOCABLY WAIVES, TO THE FULLEST
            EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TRIAL BY JURY
            AND ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
            VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH
            COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
            IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. THE
            COMPANY IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT IT MAY
            EFFECTIVELY DO SO UNDER APPLICABLE LAW, TO THE SERVICE OF PROCESS OF
            ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY
            THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL,
            POSTAGE PREPAID, TO THE COMPANY AT ITS

                                       26
<PAGE>
            SAID ADDRESS, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH
            MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER TO
            SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE
            LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY IN ANY
            OTHER JURISDICTION.

      (i)   Severability. If any term, provision, covenant or restriction of
            this Agreement is held by a court of competent jurisdiction to be
            invalid, illegal, void or unenforceable, the remainder of the terms,
            provisions, covenants and restrictions set forth herein shall remain
            in full force and effect and shall in no way be affected, impaired
            or invalidated, and the parties hereto shall use their best efforts
            to find and employ an alternative means to achieve the same or
            substantially the same result as that contemplated by such term,
            provision, covenant or restriction. It is hereby stipulated and
            declared to be the intention of the parties that they would have
            executed the remaining terms, provisions, covenants and restrictions
            without including any of such that may be hereafter declared
            invalid, illegal, void or unenforceable.

      (j)   Securities Held by the Company or Its Affiliates. Whenever the
            consent or approval of Holders of a specified percentage of
            Securities is required hereunder, Securities held by the Company or
            its affiliates (as such term is defined in Rule 405 under the
            Securities Act) shall not be counted in determining whether such
            consent or approval was given by the Holders of such required
            percentage.

      (k)   Third Party Beneficiaries. Holders and Participating Broker-Dealers
            are intended third party beneficiaries of this Agreement and this
            Agreement may be enforced by such Persons.

      (l)   Entire Agreement. This Agreement, together with the Purchase
            Agreement, the Indenture and the Collateral Agreements, is intended
            by the parties as a final and exclusive statement of the agreement
            and understanding of the parties hereto in respect of the subject
            matter contained herein and therein and any and all prior oral or
            written agreements, representations, or warranties, contracts,
            understanding, correspondence, conversations and memoranda between
            the Initial Purchaser on the one hand and the Company on the other,
            or between or among any agents, representatives, parents,
            subsidiaries, affiliates, predecessors in interest or successors in
            interest with respect to the subject matter hereof and thereof are
            merged herein and replaced hereby.

                                       27
<PAGE>
                                   SIGNATURES

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, all as of the date first written above.

                                    GOLFSMITH INTERNATIONAL, INC.

                                    By: /s/  NOEL E. WILENS
                                       ---------------------------------------
                                       Name:    Noel E. Wilens
                                       Title:   Vice President

                                    GOLFSMITH INTERNATIONAL HOLDINGS,
                                    INC., as Guarantor

                                    By: /s/  NOEL E. WILENS
                                       ---------------------------------------
                                       Name:    Noel E. Wilens
                                       Title:   Vice President

                                    GOLFSMITH GP HOLDINGS, INC., as Subsidiary
                                    Guarantor

                                    By: /s/  NOEL E. WILENS
                                       ---------------------------------------
                                       Name:    Noel E. Wilens
                                       Title:   Vice President

                                    GOLFSMITH HOLDINGS, L.P., as Subsidiary
                                    Guarantor
                                    By: Golfsmith GP Holdings, Inc., as General
                                    Partner

                                    By: /s/  NOEL E. WILENS
                                       ---------------------------------------
                                       Name:    Noel E. Wilens
                                       Title:   Vice President

                                                   REGISTRATION RIGHTS AGREEMENT

                                       28
<PAGE>
                                   GOLFSMITH GP, L.L.C., as Subsidiary Guarantor
                                   By: Golfsmith Holdings, L.P., as Sole Member
                                   By: Golfsmith GP Holdings, Inc., as General
                                   Partner

                                   By: /s/  NOEL E. WILENS
                                      ---------------------------------------
                                      Name:    Noel E. Wilens
                                      Title:   Vice President

                                   GOLFSMITH DELAWARE, L.L.C., as Subsidiary
                                   Guarantor
                                   By: Golfsmith Holdings, L.P., as Sole Member
                                   By: Golfsmith GP Holdings, Inc., as General
                                   Partner

                                   By: /s/  NOEL E. WILENS
                                      ---------------------------------------
                                      Name:    Noel E. Wilens
                                      Title:   Vice President

                                   GOLFSMITH CANADA, L.L.C., as Subsidiary
                                   Guarantor
                                   By: Golfsmith Holdings, L.P., as Sole Member
                                   By: Golfsmith GP Holdings, Inc., as General
                                   Partner

                                   By: /s/  NOEL E. WILENS
                                      ---------------------------------------
                                      Name:    Noel E. Wilens
                                      Title:   Vice President

                                                   REGISTRATION RIGHTS AGREEMENT

                                       29
<PAGE>
                                    GOLFSMITH EUROPE, L.L.C., as Subsidiary
                                    Guarantor
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                    Partner

                                    By: /s/  NOEL E. WILENS
                                       ---------------------------------------
                                       Name:    Noel E. Wilens
                                       Title:   Vice President

                                    GOLFSMITH USA, L.L.C., as Subsidiary
                                    Guarantor
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                    Partner

                                    By: /s/  NOEL E. WILENS
                                       ---------------------------------------
                                       Name:    Noel E. Wilens
                                       Title:   Vice President

                                    GOLFSMITH NU, L.L.C., as Subsidiary
                                    Guarantor
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                    Partner

                                    By: /s/  NOEL E. WILENS
                                       ---------------------------------------
                                       Name:    Noel E. Wilens
                                       Title:   Vice President

                                                   REGISTRATION RIGHTS AGREEMENT

                                       30
<PAGE>
                                    GOLFSMITH LICENSING, L.L.C., as Subsidiary
                                    Guarantor
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                    Partner

                                    By: /s/  NOEL E. WILENS
                                       ---------------------------------------
                                       Name:    Noel E. Wilens
                                       Title:   Vice President

                                    GOLFSMITH INTERNATIONAL, L.P., as Subsidiary
                                    Guarantor
                                    By: Golfsmith GP, L.L.C., as General Partner
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                    Partner

                                    By: /s/  NOEL E. WILENS
                                       ---------------------------------------
                                       Name:    Noel E. Wilens
                                       Title:   Vice President

                                                   REGISTRATION RIGHTS AGREEMENT

                                       31
<PAGE>
ACCEPTED AND AGREED TO:

JEFFERIES & COMPANIES, INC.

By:       /s/  M. BRENT STEVENS
    ---------------------------------
Name:  M. Brent Stevens
Title: Executive Vice President

                                                   REGISTRATION RIGHTS AGREEMENT

                                       32<PAGE>

                                                                     Exhibit 4.4

                               SECURITY AGREEMENT

      This SECURITY AGREEMENT (as amended, supplemented, amended and restated or
otherwise modified from time to time, this "Security Agreement"), dated as of
October 15, 2002, is made by GOLFSMITH INTERNATIONAL, INC., a Delaware
corporation (the "Company"), GOLFSMITH INTERNATIONAL HOLDINGS, INC., a Delaware
corporation ("Holdings"), each Subsidiary (as defined below) of the Company a
signatory hereto, and each other Subsidiary of the Company which may from time
to time hereafter become a party hereto pursuant to Section 7.5 (each,
individually, an "Additional Grantor", and collectively, the "Additional
Grantors", and together with the Company and Holdings, each, individually, a
"Grantor", and collectively, the "Grantors"), in favor of U.S. BANK TRUST
NATIONAL ASSOCIATION, as collateral agent (together with its successor(s)
thereto in such capacity, the "Collateral Agent") for each of the Secured
Parties.

                              W I T N E S S E T H :

      WHEREAS, the Company, the other Grantors and the Collateral Agent, as
trustee, have entered into an Indenture, dated as of October 15, 2002 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "Indenture"), and in connection therewith, the Company has issued (the
"Notes Issuance") its Senior Secured Notes due 2009 (and, if applicable, its
Senior Secured Notes due 2009, Series B issued in exchange therefor)
(collectively, the "Notes");

      WHEREAS, various financial institutions, as lenders (the "Lenders"),
General Electric Capital Corporation, a Delaware corporation, as agent on behalf
of the Lenders (in such capacity, the "Lender Agent"), and the Grantors have
entered into that certain Credit Agreement, dated as of October 15, 2002 (such
credit agreement is the Credit Agreement referred to and defined in the
Indenture, and as used herein, the term "Credit Agreement" has the meaning
ascribed thereto in the Indenture), pursuant to which the Lenders have agreed to
make certain loans and other financial accommodations from time to time to the
Borrowers (as defined therein) and the Grantors have entered into Collateral
Documents (as defined therein) with the Lender Agent as well;

      WHEREAS, the Collateral Agent, the Lender Agent and the Grantors have
entered into that certain Intercreditor Agreement, dated as of October 15, 2002
(such intercreditor agreement is the Intercreditor Agreement referred to and
defined in the Indenture, and as used herein, the term "Intercreditor Agreement"
has the meaning ascribed thereto in the Indenture), pursuant to which, among
other things, (a) the Lender Agent is recognized as having a first priority
interest in all of the Collateral (as defined in the Collateral Agreements)
(other than real property, Equipment and proceeds thereof) for the benefit of
itself and the Lenders and (b) the Collateral Agent is recognized as having (i)
a second priority interest in all of the Collateral (as defined in the
Collateral Agreements) (other than real property, Equipment and proceeds
thereof) for the benefit of itself, the Trustee and the Holders and (ii) a first
priority interest in all of the Collateral (as defined in the Collateral
Agreements) constituting real property, Equipment and proceeds thereof for the
benefit of itself, the Trustee and the Holders;

<PAGE>

      WHEREAS, as a condition precedent to the Notes Issuance, each Grantor is
required to execute and deliver this Security Agreement;

      WHEREAS, each Grantor has duly authorized the execution, delivery and
performance of this Security Agreement; and

      WHEREAS, it is in the best interests of each Grantor to execute this
Security Agreement inasmuch as such Grantor will derive substantial direct and
indirect benefits from proceeds of the Notes issued by the Company;

      NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in order to induce the Holders
to acquire the Notes and maintain the Indebtedness evidenced thereby, each
Grantor agrees, for the benefit of each Secured Party, as follows:

                                   ARTICLE I

                                   DEFINITIONS

      SECTION 1.1. Certain Terms. The following terms (whether or not
underscored) when used in this Security Agreement, including its preamble and
recitals, shall have the following meanings (such definitions to be equally
applicable to the singular and plural forms thereof):

      "Additional Grantor" and "Additional Grantors" are defined in the
preamble.

      "Capital Securities" means, with respect to any Person, all shares,
interests, participations or other equivalents (however designated, whether
voting or non-voting) of such Person's capital, whether now outstanding or
issued after the date hereof.

      "Collateral" is defined in Section 2.1.

      "Collateral Agent" is defined in the preamble.

      "Company" is defined in the preamble.

      "Computer Hardware and Software Collateral" means:

            (a) all computer and other electronic data processing hardware,
      integrated computer systems, central processing units, memory units,
      display terminals, printers, features, computer elements, card readers,
      tape drives, hard and soft disk drives, cables, electrical supply
      hardware, generators, power equalizers, accessories and all peripheral
      devices and other related computer hardware;

            (b) all software programs (including both source code, object code
      and all related applications and data files), whether now owned, licensed
      or leased or hereafter acquired

                                       2
<PAGE>

      by any Grantor, designed for use on the computers and electronic data
      processing hardware described in clause (a) above;

            (c) all firmware associated therewith;

            (d) all documentation (including flow charts, logic diagrams,
      manuals, guides and specifications) with respect to such hardware,
      software and firmware described in the preceding clauses (a) through (c);
      and

            (e) all rights with respect to all of the foregoing, including any
      and all copyrights, licenses, options, warranties, service contracts,
      program services, test rights, maintenance rights, support rights,
      improvement rights, renewal rights and indemnifications and any
      substitutions, replacements, additions or model conversions of any of the
      foregoing.

      "Control Agreement" means, with respect to (a) Collateral consisting of
uncertificated Capital Securities, a Subsidiary Securities Control Agreement and
(b) Collateral consisting of investment property of any other type, a securities
account control agreement.

      "Copyright Collateral" means all copyrights (including all copyrights for
semiconductor chip product mask works) of each Grantor, whether statutory or
common law, registered or unregistered and whether published or unpublished, now
or hereafter in force throughout the world including all of such Grantor's
right, title and interest in and to all copyrights registered in the United
States Copyright Office or anywhere else in the world and also including the
copyrights referred to in Item A of Schedule V hereto, and registrations and
recordings thereof and all applications for registration thereof, whether
pending or in preparation, all copyright licenses, including each copyright
license referred to in Item B of Schedule V hereto, the right to sue for past,
present and future infringements of any of the foregoing thereof, all rights
corresponding thereto throughout the world, all extensions and renewals of any
thereof and all proceeds of the foregoing, including licenses, royalties,
income, payments, claims, damages and proceeds of suit.

      "Credit Agreement" is defined in the second recital.

      "Deposit Account" means a demand, time, savings, passbook or other account
maintained with a bank, savings and loan association, credit union or other
financial institution (each, a "Depositary").

      "Deposit Account Agreement" means an agreement, substantially in the form
of the Restricted Account Agreement, dated on or about October 15, 2002, among
the Company, the Lender Agent (as of such date), the Collateral Agent and Wells
Fargo Bank, National Association.

      "Distributions" means all non-cash dividends paid on Capital Securities,
liquidating dividends paid on Capital Securities, shares of Capital Securities
resulting from (or in connection with the exercise of) stock splits,
reclassifications, warrants, options, non-cash dividends, mergers,
consolidations, and all other distributions (whether similar or dissimilar to
the foregoing) on or with respect to any Capital Securities constituting
Collateral, but shall not include Dividends.

                                       3
<PAGE>

      "Dividends" means cash dividends and cash distributions with respect to
any Capital Securities constituting Collateral that are not a liquidating
dividend.

      "Equipment" is defined in clause (d) of Section 2.1.

      "Grantor" and "Grantors" are defined in the preamble.

      "Indenture" is defined in the first recital.

      "Intellectual Property Collateral" means, collectively, the Computer
Hardware and Software Collateral, the Copyright Collateral, the Patent
Collateral, the Trademark Collateral and the Trade Secrets Collateral.

      "Intercompany Note" means, with respect to any Grantor, as the payee
thereunder, a subordinated promissory note, which subordinated promissory note
evidences all intercompany loans (to the extent such loans are evidenced by a
note) which may be made from time to time by such Grantor to the Company or any
of its Subsidiaries as the maker of such subordinated promissory note, as such
subordinated promissory note, in accordance with Section 4.2.4, is amended,
modified or supplemented from time to time, together with any subordinated
promissory note of such maker taken in extension or renewal thereof or
substitution therefor.

      "Intercreditor Agreement" is defined in the third recital.

      "Inventory" is defined in clause (e) of Section 2.1.

      "Lender Agent" is defined in the second recital.

      "Lenders" is defined in the second recital.

      "Master Deposit Account" means the Deposit Account of the Company to be
established and maintained with the Collateral Agent upon the occurrence of a
Specified Event.

      "Material Adverse Effect" means a material adverse effect on

            (a) the properties, business, prospects, operations, earnings,
      assets, liabilities or condition (financial or otherwise) of the Company
      and its Subsidiaries, taken as a whole;

            (b) the ability of any Grantor to perform its obligations under any
      of the Related Documents, including the payment of any principal, premium
      (if any), interest, fees, expenses or other amounts under or in respect of
      any of the Related Documents; or

            (c) the validity or enforceability of any of the Related Documents
      or any of the rights or remedies of the Collateral Agent or any other
      Secured Party under any of the Related Documents.

      "Motor Vehicles" shall mean motor vehicles, tractors, trailers and other
like property, whether or not the title thereto is governed by a certificate of
title or ownership.

      "Notes" is defined in the first recital.

                                       4
<PAGE>

      "Notes Issuance" is defined in the first recital.

      "Patent Collateral" means:

            (a) all letters patent and applications for letters patent
      throughout the world, including all patent applications in preparation for
      filing anywhere in the world and including each patent and patent
      application referred to in Item A of Schedule III attached hereto;

            (b) all reissues, divisions, continuations, continuations-in-part,
      extensions, renewals and reexaminations of any of the items described in
      clause (a);

            (c) all patent licenses, including each patent license referred to
      in Item B of Schedule III attached hereto; and

            (d) all proceeds of, and rights associated with, the foregoing
      (including license royalties and proceeds of infringement suits), the
      right to sue third parties for past, present or future infringements of
      any patent or patent application, including any patent or patent
      application referred to in Item A of Schedule III attached hereto, and for
      breach or enforcement of any patent license, including any patent license
      referred to in Item B of Schedule III attached hereto, and all rights
      corresponding thereto throughout the world.

      "Receivables" is defined in clause (f) of Section 2.1.

      "Related Contracts" is defined in clause (f) of Section 2.1.

      "Related Documents" means the Indenture, the Notes, this Security
Agreement, the Trademark Security Agreement, the Patent Security Agreement, if
any, the Copyright Security Agreement, if any, and the other Collateral
Agreements.

      "Secured Obligations" is defined in Section 2.2.

      "Secured Parties" means the Collateral Agent, the Trustee and the Holders.

      "Securities Act" is defined in Section 6.2.

      "Security Agreement" is defined in the preamble.

      "Senior Security Agreement" is defined in clause (c) of Section 7.10.

      "Specified Event" means (i) a Default of the nature referred to in clause
(1), (2), (7) or (8) of Section 6.01 of the Indenture or (ii) an Event of
Default.

      "Subsidiary Securities Control Agreement" means a Subsidiary Securities
Control Agreement, substantially in the form of Exhibit F hereto (which provides
for the Lender Agent to have control over the Capital Securities the subject
thereof during any period that the Credit Agreement is in effect and the
Collateral Agent to have control thereafter) with such changes thereto as are
acceptable to the Collateral Agent and, the Lender Agent, executed by and among

                                       5
<PAGE>

the applicable Grantor(s), the Collateral Agent, the Lender Agent and the issuer
of such Capital Securities, as such agreement may be amended, supplemented,
amended and restated or otherwise modified from time to time. For purposes of
this definition, "control" means control as used in Section 8-106 of the U.C.C.
(or any successor provision thereto).

      "Trademark Collateral" means:

            (a) all trademarks, trade names, corporate names, company names,
      business names, fictitious business names, trade styles, service marks,
      certification marks, collective marks, logos, other source of business
      identifiers, prints and labels on which any of the foregoing have appeared
      or appear, designs and general intangibles of a like nature (all of the
      foregoing items in this clause (a) being collectively called a
      "Trademark"), now existing anywhere in the world or hereafter adopted or
      acquired, whether currently in use or not, all registrations and
      recordings thereof and all applications in connection therewith, whether
      pending or in preparation for filing, including registrations, recordings
      and applications in the United States Patent and Trademark Office or in
      any office or agency of the United States of America or any State thereof
      or any foreign country, including those referred to in Item A of Schedule
      IV attached hereto;

            (b) all Trademark licenses, including each Trademark license
      referred to in Item B of Schedule IV attached hereto;

            (c) all reissues, extensions or renewals of any of the items
      described in clause (a) and (b);

            (d) all of the goodwill of the business connected with the use of,
      and symbolized by the items described in, clauses (a) and (b);

            (e) the right to sue third parties for past, present and future
      infringements of any Trademark Collateral described in clause (a) and, to
      the extent applicable, clause (b); and

            (f) all proceeds of, and rights associated with, the foregoing,
      including any claim by any Grantor against third parties for past, present
      or future infringement or dilution of any Trademark, Trademark
      registration or Trademark license, including any Trademark, Trademark
      registration or Trademark license referred to in Item A and Item B of
      Schedule IV attached hereto, or for any injury to the goodwill associated
      with the use of any such Trademark or for breach or enforcement of any
      Trademark license.

      "Trade Secrets Collateral" means all common law and statutory trade
secrets and all other confidential or proprietary or useful information and all
know-how obtained by or used in or contemplated at any time for use in the
business of any Grantor (all of the foregoing being collectively called a "Trade
Secret"), whether or not such Trade Secret has been reduced to a writing or
other tangible form, including all documents and things embodying, incorporating
or referring in any way to such Trade Secret, all Trade Secret licenses,
including each Trade Secret license referred to in Schedule VI attached hereto,
and including the right to sue for and to enjoin and to collect damages for the
actual or threatened misappropriation of any Trade Secret and for the breach or
enforcement of any such Trade Secret license.

                                       6
<PAGE>

      "U.C.C." means the Uniform Commercial Code, as in effect from time to time
in the State of New York.

      SECTION 1.2. Indenture Definitions. Unless otherwise defined herein or the
context otherwise requires, terms used in this Security Agreement, including its
preamble and recitals, have the meanings provided in the Indenture.

      SECTION 1.3. U.C.C. Definitions. Unless otherwise defined herein or in the
Indenture or the context otherwise requires and whether or not capitalized,
terms for which meanings are provided in the U.C.C. are used in this Security
Agreement, including its preamble and recitals, with such meanings.

                                   ARTICLE II

                                SECURITY INTEREST

      SECTION 2.1. Grant of Security. Each Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers and transfers to the Collateral Agent
for its benefit and the ratable benefit of each other Secured Party, and hereby
grants to the Collateral Agent for its benefit and the ratable benefit of each
other Secured Party, a continuing security interest in all of such Grantor's
following property, whether tangible or intangible, whether now or hereafter
existing, owned or acquired by such Grantor, and wherever located (collectively,
the "Collateral"):

            (a) all Intercompany Notes in which such Grantor has an interest
      (including each Intercompany Note described in Item A of Schedule I
      hereto);

            (b) all interest and other payments and rights with respect to each
      Intercompany Note in which such Grantor has an interest;

            (c) (i) all investment property in which such Grantor has an
      interest (including the Capital Securities of each issuer of such Capital
      Securities described in Schedule I hereto) and (ii) all other Capital
      Securities which are interests in limited liability companies or
      partnerships in which such Grantor has an interest (including the Capital
      Securities of each issuer of such Capital Securities described in Schedule
      I hereto), in each case together with Dividends and Distributions payable
      in respect of the Collateral described in the foregoing clauses (c)(i) and
      (c)(ii) (provided, however, that not more than 65% of all of the Capital
      Securities that are voting Capital Securities of any Foreign Subsidiary of
      such Grantor shall be so pledged by such Grantor);

            (d) all equipment in all of its forms of such Grantor (including all
      Motor Vehicles), wherever located, including all parts thereof and all
      accessions, additions, attachments, improvements, substitutions and
      replacements thereto and therefor and all accessories related thereto (any
      and all of the foregoing being the "Equipment");

            (e) all inventory in all of its forms of such Grantor, wherever
      located, including

                                       7
<PAGE>

            (i) all raw materials and work in process therefor, finished goods
      thereof, and materials used or consumed in the manufacture or production
      thereof,

            (ii) all goods in which such Grantor has an interest in mass or a
      joint or other interest or right of any kind (including goods in which
      such Grantor has an interest or right as consignee), and

            (iii) all goods which are returned to or repossessed by such
      Grantor,

      and all accessions thereto, products thereof and documents therefor (any
      and all such inventory, materials, goods, accessions, products and
      documents being the "Inventory");

            (f) all accounts, contracts, contract rights, chattel paper,
      documents, instruments, promissory notes and general intangibles
      (including tax refunds and payment intangibles) of such Grantor, whether
      or not arising out of or in connection with the sale or lease of goods or
      the rendering of services, and all rights of such Grantor now or hereafter
      existing in and to all security agreements, guaranties, leases and other
      contracts securing or otherwise relating to any such accounts, contracts,
      contract rights, chattel paper, documents, instruments, promissory notes,
      general intangibles and payment intangibles (all of the foregoing being
      the "Receivables", and any and all such security agreements, guaranties,
      leases and other contracts being the "Related Contracts");

            (g) all Deposit Accounts of such Grantor (including the Master
      Deposit Account in the case where such Grantor is the Company) and all
      cash, checks, drafts, notes, bills of exchange, money orders and other
      like instruments, if any, now owned or hereafter acquired, held therein
      (or in sub-accounts thereof) and all certificates and instruments, if any,
      from time to time representing or evidencing such investments, and all
      interest, earnings and proceeds in respect thereof;

            (h) all Intellectual Property Collateral of such Grantor;

            (i) all of such Grantor's letter of credit rights;

            (j) all commercial tort claims in which such Grantor has rights
      (including as a plaintiff);

            (k) all books, records, writings, data bases, information and other
      property relating to, used or useful in connection with, evidencing,
      embodying, incorporating or referring to, any of the foregoing in this
      Section;

            (l) all of such Grantor's other property and rights of every kind
      and description and interests therein; and

            (m) all products, offspring, rents, issues, profits, returns,
      income, supporting obligations and proceeds of and from any and all of the
      foregoing Collateral (including proceeds which constitute property of the
      types described in clauses (a) through (j), proceeds deposited from time
      to time in any lock box or Deposit Account of such Grantor (including the
      Master Deposit Account in the case where such Grantor is the Company),

                                       8
<PAGE>

      and, to the extent not otherwise included, all payments under insurance
      (whether or not the Collateral Agent is the loss payee thereof), or any
      indemnity, warranty or guaranty, payable by reason of loss or damage to or
      otherwise with respect to any of the foregoing Collateral).

Notwithstanding the foregoing, "Collateral" shall not include any general
intangibles or other rights described in clause (f) above arising under any
contracts, instruments, licenses or other documents described in such clause as
to which the grant of a security interest would constitute a violation of a
valid and enforceable restriction in favor of a third party on such grant,
unless and until any required consents shall have been obtained. Each Grantor
agrees to use its best efforts to obtain any such required consent. In addition,
"Collateral" shall not include any trademark applications based on intent to
use, until such time as those applications are converted to a use based
application or the mark is registered.

      SECTION 2.2. Security for Obligations. This Security Agreement secures the
payment of all Obligations of the Company now or hereafter existing under the
Indenture, the Notes and each other Related Document to which the Company is or
may become a party, whether for principal, interest, costs, fees, expenses or
otherwise, and all Obligations of each other Grantor now or hereafter existing
under its Guarantee, this Security Agreement and each other Related Document to
which such other Grantor is or may become a party (all such obligations of the
Company and each other Grantor being the "Secured Obligations").

      SECTION 2.3. Delivery of Certificated Securities and Intercompany Notes.
At all times during which the Credit Agreement is not in effect, all Collateral
comprised of Intercompany Notes and certificated Capital Securities shall be
delivered to and held by or on behalf of (and, in the case of the Intercompany
Notes, endorsed to the order of) the Collateral Agent pursuant hereto, shall be
in suitable form for transfer by delivery, and shall be accompanied by all
necessary instruments of transfer or assignment, duly executed in blank.

      SECTION 2.4. Dividends on Securities and Payments on Intercompany Notes.
At all times during which the Credit Agreement is not in effect, in the event
that any Dividend is to be paid on any security that constitutes Collateral or
any payment of principal or interest is to be made on any Intercompany Note at a
time when no Specified Event has occurred and is continuing or would result
therefrom, such Dividend or payment may be paid directly to the applicable
Grantor. At all times during which the Credit Agreement is not in effect, if any
such Specified Event has occurred and is continuing, then any such Dividend or
payment shall be paid directly to the Collateral Agent.

      SECTION 2.5. Continuing Security Interest; Transfer of Notes. This
Security Agreement shall create a continuing security interest in the Collateral
and shall

            (a) remain in full force and effect until payment in full in cash of
      all Secured Obligations,

            (b) be binding upon each Grantor, its successors, transferees and
      assigns, and

                                       9
<PAGE>

            (c) inure, together with the rights and remedies of the Collateral
      Agent hereunder, to the benefit of the Collateral Agent and each other
      Secured Party.

Without limiting the generality of the foregoing clause (c), any Holder may
assign or otherwise transfer (in whole or in part) any Note held by it to any
other Person, and such other Person shall thereupon become vested with all the
rights and benefits in respect thereof granted to such Holder under any Related
Document (including this Security Agreement) or otherwise, subject, however, to
any contrary provisions in such assignment or transfer, and to the provisions of
Section 2.14 and 2.15 of the Indenture. Upon the payment in full in cash of all
Secured Obligations, the security interest granted herein shall terminate and
all rights to the Collateral shall revert to such Grantor. Upon any such
termination, the Collateral Agent will, at such Grantor's sole expense, execute
and deliver to such Grantor such documents as such Grantor shall reasonably
request to evidence such termination. Upon (i) the sale, transfer or other
disposition of Collateral in accordance with Section 4.16 of the Indenture or
(ii) the payment in full in cash of all Secured Obligations, the security
interests granted herein shall automatically terminate with respect to (x) such
Collateral (in the case of clause (i)) or (y) all Collateral (in the case of
clause (ii)). Upon any such sale, transfer, disposition or termination, the
Collateral Agent will, at such Grantor's sole expense, deliver to such Grantor,
without any representations, warranties or recourse of any kind whatsoever, all
applicable certificated securities and all applicable Intercompany Notes,
together with all other applicable Collateral held by the Collateral Agent
hereunder, and execute and deliver to such Grantor such documents as such
Grantor shall reasonably request to evidence such termination (including such
documents as such Grantor shall reasonably request to remove the notation of the
Collateral Agent as lienholder on any certificate of title for any applicable
Motor Vehicle).

      SECTION 2.6. Grantors Remain Liable. Anything herein to the contrary
notwithstanding

            (a) each Grantor shall remain liable under the contracts and
      agreements included in the Collateral to the extent set forth therein, and
      shall perform all of its duties and obligations under such contracts and
      agreements to the same extent as if this Security Agreement had not been
      executed,

            (b) the exercise by the Collateral Agent of any of its rights
      hereunder shall not release any Grantor from any of its duties or
      obligations under any such contracts or agreements included in the
      Collateral, and

            (c) neither the Collateral Agent nor any other Secured Party shall
      have any obligation or liability under any such contracts or agreements
      included in the Collateral by reason of this Security Agreement, nor shall
      the Collateral Agent or any other Secured Party be obligated to perform
      any of the obligations or duties of any Grantor thereunder or to take any
      action to collect or enforce any claim for payment assigned hereunder.

      SECTION 2.7. Security Interest Absolute. This Security Agreement shall in
all respects be a continuing, absolute, unconditional and irrevocable grant of
security interest, and shall remain in full force and effect until all of the
Secured Obligations have been paid in full. All rights of the Collateral Agent
and the security interests granted to the Collateral Agent (for its

                                       10
<PAGE>

benefit and the ratable benefit of each other Secured Party) hereunder, and all
obligations of each Grantor hereunder, shall be absolute, unconditional and
irrevocable, irrespective of

            (a) any lack of validity, legality or enforceability of the
      Indenture, any Note or any other Related Document;

            (b) the failure of any Secured Party

                  (i) to assert any claim or demand or to enforce any right or
            remedy against the Company, any other Grantor or any other Person
            under the provisions of the Indenture, any Note, any other Related
            Document or otherwise, or

                  (ii) to exercise any right or remedy against any other
            guarantor of, or collateral securing, any Secured Obligations;

            (c) any change in the time, manner or place of payment of, or in any
      other term of, all or any part of the Secured Obligations or any other
      extension, compromise or renewal of any Secured Obligations;

            (d) any reduction, limitation, impairment or termination of any
      Secured Obligations for any reason, including any claim of waiver,
      release, surrender, alteration or compromise, and shall not be subject to
      (and each Grantor hereby waives any right to or claim of) any defense or
      setoff, counterclaim, recoupment or termination whatsoever by reason of
      the invalidity, illegality, nongenuineness, irregularity, compromise,
      unenforceability of, or any other event or occurrence affecting, any
      Secured Obligations or otherwise;

            (e) any amendment to, rescission, waiver, or other modification of,
      or any consent to or departure from, any of the terms of the Indenture,
      any Note or any other Related Document;

            (f) any addition, exchange, release, surrender or non-perfection of
      any collateral (including the Collateral), or any amendment to or waiver
      or release of or addition to, or consent to, or departure from, any
      guaranty, for any of the Secured Obligations; or

            (g) any other circumstance which might otherwise constitute a
      defense available to, or a legal or equitable discharge of, the Company,
      any other Grantor, any surety or any guarantor.

      SECTION 2.8. Postponement of Subrogation, etc. Each Grantor hereby agrees
that it will not exercise any rights which it may acquire by reason of any
payment made hereunder, whether by way of subrogation, reimbursement or
otherwise, until the prior payment in full in cash of all Secured Obligations.
Any amount paid to any Grantor on account of any payment made hereunder prior to
the payment in full in cash of all Secured Obligations shall be held in trust
for the benefit of the Secured Parties and shall immediately be paid to the
Secured Parties and credited and applied against the Secured Obligations,
whether matured or unmatured, in accordance with the terms of the Indenture;
provided, however, that if

                                       11
<PAGE>

            (a) such Grantor has made payment to the Secured Parties of all or
      any part of the Secured Obligations, and

            (b) all Secured Obligations have been paid in full in cash,

each Secured Party agrees that, at the requesting Grantor's request, the Secured
Parties will execute and deliver to such Grantor appropriate documents (without
recourse and without representation or warranty) necessary to evidence the
transfer by subrogation to such Grantor of an interest in the Secured
Obligations resulting from such payment by such Grantor. In furtherance of the
foregoing, for so long as any Secured Obligations remain outstanding, each
Grantor shall refrain from taking any action or commencing any proceeding
against the Company or any other Grantor (or its successors or assigns, whether
in connection with a bankruptcy proceeding or otherwise) to recover any amounts
in respect of payments made under this Security Agreement to any Secured Party.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

      SECTION 3.1. Representations and Warranties. Each Grantor represents and
warrants to each Secured Party insofar as the representations and warranties
contained herein are applicable to such Grantor and its properties, as set forth
in this Article III.

      SECTION 3.2. As to Capital Securities of Subsidiaries. With respect to any
Subsidiary of any Grantor that is

            (a) a corporation, business trust, joint stock company or similar
      Person, all Capital Securities issued by such Subsidiary are duly
      authorized and validly issued, fully paid and non-assessable, and
      represented by a certificate; and

            (b) a partnership or limited liability company, all Capital
      Securities issued by such Subsidiary that constitute Collateral (i) (A)
      are dealt in or traded on securities exchanges or in securities markets,
      (B) expressly provide that such Capital Securities are securities governed
      by Article 8 of the U.C.C. or (C) are held in a securities account and are
      subject to the "control" (as defined in Section 8-106 of the U.C.C.) of
      the Collateral Agent and (ii) are uncertificated.

The percentage of the issued and outstanding Capital Securities of each
Subsidiary pledged by any Grantor hereunder are as set forth in Schedule I
hereto.

      SECTION 3.3. As to Intercompany Notes. In the case of each Intercompany
Note, all of such Intercompany Notes have been duly authorized, executed,
endorsed, issued and delivered, and are the legal, valid and binding obligation
of the issuers thereof, and are not in default.

      SECTION 3.4. Grantor Name, Location, etc. The jurisdiction in which each
Grantor is located for purposes of Sections 9-301 and 9-307 of the U.C.C. is set
forth in Item A of Schedule

                                       12
<PAGE>

II hereto. Prior to July 1, 2001 (or October 1, 2001 if the location is
Connecticut and January 1, 2002 if the location is Alabama, Florida or
Mississippi), set forth in Item B of Schedule II is each location a secured
party would have filed a Uniform Commercial Code financing statement to perfect
a security interest in Equipment, Inventory and general intangibles owned by
each Grantor. No Grantor has any trade names other than those set forth in Item
C of Schedule II hereto. During the four months preceding the date hereof, no
Grantor has been known by any legal name different from the one set forth on the
signature page hereto, nor has such Grantor been the subject of any merger or
other corporate reorganization, except as set forth in Item D of Schedule II
hereto. The name set forth on the signature page is the true and correct name of
such Grantor. Each Grantor's federal taxpayer identification number is (and,
during the four months preceding the date hereof, such Grantor has not had a
federal taxpayer identification number different from that) set forth in Item E
of Schedule II hereto. If the Collateral of any Grantor includes any Inventory
located in the State of California, such Grantor is not a "retail merchant"
within the meaning of Section 9102 of the California U.C.C. No Grantor is a
party to any federal, state or local government contract except as set forth in
Item F of Schedule II hereto. No Grantor maintains any Deposit Accounts with any
Person except as set forth in Item G of Schedule II hereto.

      SECTION 3.5. Ownership, No Liens, etc. Such Grantor owns its Collateral
free and clear of any Lien, security interest, charge or encumbrance except for
the security interest created by this Security Agreement and except (a) in the
case of Collateral not consisting of Capital Securities and Intercompany Notes,
as permitted by Section 4.18 of the Indenture and (b) in the case of Collateral
consisting of Capital Securities and Intercompany Notes for so long as any
credit extensions or commitments are outstanding under the Credit Agreement, the
prior Lien of the Lender Agent. No effective financing statement or other
instrument similar in effect covering all or any part of the Collateral is on
file in any recording office, except such as may have been filed in favor of the
Collateral Agent relating to this Security Agreement or as have been filed in
connection with Liens permitted pursuant to Section 4.18 of the Indenture or as
to which a duly executed termination statement relating to such financing
statement or other instrument has been delivered to the Collateral Agent on the
Closing Date.

      SECTION 3.6. Possession and Control. Each Grantor agrees that it will
maintain exclusive possession of its goods, instruments, promissory notes and
Inventory, other than (a) Inventory in transit in the ordinary course of
business, (b) Inventory which is in the possession or control of a warehouseman,
bailee agent or other Person (other than a Person controlled by or under common
control with such Grantor) that has been notified of the security interest
created in favor of the Secured Parties pursuant to this Security Agreement, and
has agreed to hold such Inventory subject to the Secured Parties' Lien and waive
any Lien held by it against such Inventory (provided that each applicable
Grantor shall have 60 days from the date hereof to provide such notice and
obtain such agreement and waiver with respect to Inventory (other than Inventory
having an aggregate book value of less than $100,000) that is held by any
warehouseman, bailee agent or such other Person as of the date hereof) and (c)
instruments or promissory notes that have been delivered to the Collateral Agent
or Lender Agent pursuant to Section 3.7.

      SECTION 3.7. Negotiable Documents, Instruments and Chattel Paper. Each
Grantor has, contemporaneously herewith, delivered to the Collateral Agent or
the Lender Agent

                                       13
<PAGE>

possession of all originals of all negotiable documents, instruments and chattel
paper currently owned or held by such Grantor (duly endorsed in blank).

      SECTION 3.8. Intellectual Property Collateral. With respect to any
Intellectual Property Collateral the loss, impairment or infringement of which
would reasonably be expected to have a Material Adverse Effect:

            (a) such Intellectual Property Collateral is subsisting and has not
      been adjudged invalid or unenforceable, in whole or in part;

            (b) such Intellectual Property Collateral is valid and enforceable;

            (c) such Grantor has made all necessary filings and recordations to
      protect its interest in such Intellectual Property Collateral, including
      recordations of all of its interests in the Patent Collateral, if any, and
      Trademark Collateral in the United States Patent and Trademark Office and
      in corresponding offices in countries in which the failure to so file
      and/or record could reasonably have a Material Adverse Effect and its
      claims to the Copyright Collateral, if any, in the United States Copyright
      Office and in corresponding offices in countries in which the failure to
      so file and/or record could reasonably have a Material Adverse Effect;

            (d) such Grantor is the exclusive owner of the entire and
      unencumbered right, title and interest in and to such Intellectual
      Property Collateral and no claim has been made that the use of such
      Intellectual Property Collateral does or may violate the asserted rights
      of any third party; and

Such Grantor owns directly or is entitled to use by license or otherwise, all
patents, Trademarks, Trade Secrets, copyrights, mask works, licenses,
technology, know-how, processes and rights with respect to any of the foregoing
used in and necessary for or of importance to the conduct of such Grantor's
business.

      SECTION 3.9. Validity, etc. This Security Agreement creates a valid
continuing security interest in the Collateral securing the payment of the
Secured Obligations, and

            (a) in the case of Collateral comprised of certificated securities
      or instruments (including certificated Capital Securities and Intercompany
      Notes), upon the delivery of such Collateral to the Collateral Agent, such
      security interest will be a valid first priority perfected security
      interest;

            (b) in the case of Collateral comprised of uncertificated Capital
      Securities, upon the execution and delivery of a Subsidiary Securities
      Control Agreement by the applicable Grantor and issuer of such
      uncertificated Capital Securities, the filing of the Uniform Commercial
      Code financing statements delivered by the Grantor having an interest in
      such Collateral to the Collateral Agent with respect to such Collateral
      and the termination of the Liens securing the Credit Agreement, such
      security interest will be a valid first priority perfected security
      interest;

                                       14
<PAGE>

            (c) in the case of Collateral comprised of investment property
      (other than Capital Securities and certificated securities), upon the
      Collateral Agent obtaining "control" (as defined in Section 8-106 of the
      U.C.C., as such term relates to investment property (other than
      certificated securities)) of such Collateral, the filing of the Uniform
      Commercial Code financing statements delivered by the Grantor having an
      interest in such Collateral to the Collateral Agent with respect to such
      Collateral and the termination of the Liens securing the Credit Agreement,
      such security interest will be a valid first priority perfected security
      interest;

            (d) in the case of Collateral comprised of Motor Vehicles, upon (i)
      the recordation or notation of the Collateral Agent's Lien on the
      certificates of title or ownership in respect of such Motor Vehicles and
      (ii) the filing of the Uniform Commercial Code financing statements
      delivered by the Grantor having an interest in such Motor Vehicles to the
      Collateral Agent with respect to such Collateral, such security interest
      will be a valid first priority perfected security interest;

            (e) in the case of all other Collateral, upon the filing in the
      jurisdiction of incorporation or formation of the applicable Grantor
      Uniform Commercial Code financing statements delivered by such Grantor to
      the Collateral Agent with respect to such Collateral, such security
      interest will be a valid first priority perfected security interest
      (except to the extent a Uniform Commercial Code financing statement was
      previously filed in connection with Liens permitted pursuant to Section
      4.18 of the Indenture and such financing statement remains effective in
      respect of such Collateral).

Each Grantor has executed and provided the Collateral Agent with all of the
Uniform Commercial Code financing statements referred to above for filing by CT
Corporation Systems with the appropriate offices therefor and has taken or (in
the cases described in the foregoing clauses (a), (b) and (c)) will take,
promptly upon termination of the Liens securing the Credit Agreement, all of the
other actions referred to above necessary to create perfected, first-priority
security interests in the applicable Collateral other than the actions described
in clause (d)(i) above with respect to Motor Vehicles (A) having a fair market
value of less than $50,000 and (B) owned as of the date hereof having a fair
market value of at least $50,000 for which the applicable Grantor shall have 45
days to complete.

      SECTION 3.10. Authorization, Approval, etc. Except as described in Section
3.9 or such as have been obtained or made and are in full force and effect, no
authorization, approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required either

            (a) for the grant by such Grantor of the security interest granted
      hereby, the pledge by such Grantor of any Collateral pursuant hereto or
      for the execution, delivery and performance of this Security Agreement by
      such Grantor,

            (b) for the perfection of or the exercise by the Collateral Agent of
      its rights and remedies hereunder, or

                                       15
<PAGE>

            (c) for the exercise by the Collateral Agent of the voting or other
      rights provided for in this Security Agreement, or, except with respect to
      any Capital Securities issued by a Subsidiary of such Grantor, as may be
      required in connection with a disposition of such Capital Securities by
      laws affecting the offering and sale of securities generally, the remedies
      in respect of the Collateral pursuant to this Security Agreement.

      SECTION 3.11. Compliance with Laws. Such Grantor is in compliance with the
requirements of all applicable laws (including the provisions of the Fair Labor
Standards Act), rules, regulations and orders of every governmental authority,
the non-compliance with which could reasonably be expected to have a Material
Adverse Effect or which could reasonably be expected to materially adversely
affect the value of the Collateral or the worth of the Collateral as collateral
security.

                                   ARTICLE IV

                                    COVENANTS

      SECTION 4.1. Certain Covenants. Each Grantor covenants and agrees that, so
long as any portion of the Secured Obligations shall remain unpaid, such Grantor
will, unless the Holder or Holders of at least a majority in aggregate principal
amount of the outstanding Notes shall otherwise consent in writing, perform,
comply with and be bound by the obligations set forth in this Article IV.

      SECTION 4.2. As to Investment Property and Intercompany Notes; Etc.

      SECTION 4.2.1. Capital Securities of Subsidiaries. No Grantor will allow
any of its Subsidiaries that is

            (a) a corporation, business trust, joint stock company or similar
      Person, to issue uncertificated securities; and

            (b) a partnership or limited liability company, to issue Capital
      Securities that are not uncertificated securities.

      SECTION 4.2.2. Investment Property (other than Certificated Securities).
With respect to any investment property (including uncertificated Capital
Securities but excluding certificated Securities) of such Grantor constituting
Collateral, such Grantor shall (a) cause a Control Agreement relating to such
investment property to be executed and delivered in favor of the Collateral
Agent and (b) deliver Uniform Commercial Code financing statements which when
filed will result in the Collateral Agent having a first priority perfected
security interest in such investment property during any period that the Credit
Agreement is not in effect.

      SECTION 4.2.3. Stock Powers, etc. Such Grantor agrees that if at time the
Credit Agreement shall not be in effect, all certificated securities
constituting Collateral delivered by such Grantor pursuant to this Security
Agreement will be accompanied by duly executed undated blank stock powers, or
other equivalent instruments of transfer acceptable to the Collateral

                                       16
<PAGE>

Agent. During such time as the Credit Agreement shall not be in effect, such
Grantor will, from time to time upon the request of the Collateral Agent,
promptly deliver to the Collateral Agent such stock powers, instruments, and
similar documents, satisfactory in form and substance to the Collateral Agent,
with respect to such Collateral as the Collateral Agent may reasonably request
and will, from time to time upon the request of the Collateral Agent after the
occurrence of any Specified Event, promptly transfer any securities constituting
Collateral into the name of any nominee designated by the Collateral Agent.

      SECTION 4.2.4. Continuous Pledge. Such Grantor will, at all times, keep
pledged to the Collateral Agent pursuant hereto on a first priority (or other
priority as provided herein and in the Intercreditor Agreement) perfected basis
all investment property constituting Collateral, all Dividends and Distributions
with respect thereto, all Intercompany Notes, all interest, principal and other
proceeds received by the Collateral Agent with respect to the Intercompany
Notes, and all other Collateral and other securities, instruments, proceeds, and
rights from time to time received by or distributable to such Grantor in respect
of any of the foregoing Collateral and will not permit any Subsidiary of such
Grantor to issue any securities which shall not have been immediately duly
pledged hereunder on a first priority perfected basis.

      SECTION 4.2.5. Voting Rights; Dividends, etc. Such Grantor agrees that,
during any period that the Credit Agreement is not in effect:

            (a) after any Specified Event shall have occurred and be continuing,
      promptly upon receipt of notice thereof by such Grantor and without any
      request therefor by the Collateral Agent, unless otherwise required to
      make such delivery to the Lender Agent pursuant to the Credit Agreement,
      to deliver (properly endorsed where required hereby or requested by the
      Collateral Agent) to the Collateral Agent all Dividends, Distributions,
      all interest, all principal, all other cash payments, and all proceeds of
      the Collateral, all of which shall be held by the Collateral Agent as
      additional Collateral for use in accordance with clause (b) of Section
      6.1; and

            (b) after any Specified Event shall have occurred and be continuing
      and the Collateral Agent has notified such Grantor of the Collateral
      Agent's intention to exercise its voting power under this Section 4.2.5(b)

                  (i) the Collateral Agent may exercise (to the exclusion of
            such Grantor) the voting power and all other incidental rights of
            ownership with respect to any securities or other investment
            property constituting Collateral and such Grantor hereby grants the
            Collateral Agent an irrevocable proxy, exercisable under such
            circumstances, to vote such securities and such other Collateral;
            and

                  (ii) promptly to deliver to the Collateral Agent such
            additional proxies and other documents as may be necessary to allow
            the Collateral Agent to exercise such voting power.

All Dividends, Distributions, interest, principal, cash payments, payment
intangibles and proceeds which may at any time and from time to time be held by
such Grantor but which such Grantor is then obligated to deliver to the
Collateral Agent, shall, until delivery to the Collateral

                                       17
<PAGE>

Agent, be held by such Grantor separate and apart from its other property in
trust for the Collateral Agent. The Collateral Agent agrees that unless a
Specified Event shall have occurred and be continuing and the Collateral Agent
shall have given the notice referred to in Section 4.2.5(b), such Grantor shall
have the exclusive voting power with respect to any securities constituting
Collateral and the Collateral Agent shall, upon the written request of such
Grantor, promptly deliver such proxies and other documents, if any, as shall be
reasonably requested by such Grantor which are necessary to allow such Grantor
to exercise that voting power; provided, however, that no vote shall be cast, or
consent, waiver, or ratification given, or action taken by such Grantor that
would impair any such Collateral or be inconsistent with or violate any
provision of the Indenture or any other Related Document (including this
Security Agreement).

      SECTION 4.2.6. Amendment of Organic Documents. Such Grantor will not
amend, supplement or otherwise modify, or permit, consent or suffer to occur any
amendment, supplement or modification of any terms or provisions contained in,
or applicable to, any Organic Document of any issuer of any Capital Security
comprising the Collateral in which it has an equity interest if the effect
thereof is to impair, or is in any manner adverse to, the rights or interests of
the Collateral Agent or any other Secured Party hereunder or under the Indenture
or any other Related Document, without the prior written consent of the
Collateral Agent and the Holder or Holders of at least a majority in aggregate
principal amount of the outstanding Notes. No Grantor will change its name or
place of incorporation or organization or federal taxpayer identification number
except upon 30 days' prior written notice to the Collateral Agent. If any
Grantor is organized outside of the United States, it will not change its
"location" as determined in accordance with Sections 9-301 and 9-307 of the
U.C.C. and as set forth in Item A of Schedule II hereto except upon 30 days'
prior written notice to the Collateral Agent.

      SECTION 4.3. As to Receivables; Deposit Account. (a) Each Grantor shall
have the right to collect all Receivables so long as no Specified Event shall
have occurred and be continuing; provided, however, that during any period that
the Credit Agreement is not in effect such Grantor agrees to promptly deposit
all payments received by such Grantor on account of the Receivables, whether in
the form of cash, checks, drafts, notes, bills of exchange, money orders or
other like instruments or otherwise, in a Deposit Account in precisely the form
in which received (but with any endorsements of such Grantor necessary for
deposit or collection).

      (b) All proceeds of Collateral received by such Grantor shall be deposited
into a Deposit Account of such Grantor, unless, during the occurrence and
continuance of a Specified Event, such Grantor is otherwise notified in writing
by the Collateral Agent. Following any such notice by the Collateral Agent to
such Grantor pursuant to this Section 4.4(c), unless otherwise so required to
make such delivery to the Lender Agent pursuant to the terms of the Credit
Agreement, all proceeds of Collateral received by such Grantor shall be
delivered in kind to the Master Deposit Account (which shall be established by
the Company with the Collateral Agent if such Master Deposit Account is not then
existing) or any other account or accounts specified by the Collateral Agent.
Proceeds of Collateral received by such Grantor shall, prior to deposit in the
Master Deposit Account or such other account or accounts specified by the
Collateral Agent, be held separate and apart from, and not commingled with, all
other property and in express trust for the benefit of the Collateral Agent
until delivery thereof is made to the Master Deposit Account or such other
account or accounts.

                                       18
<PAGE>

      (c) From and after the date that is 60 days from the date hereof, no
Grantor shall keep any funds overnight in any Deposit Account for which a
Deposit Account Agreement is not in effect to the extent such funds, when taken
together with all other funds of such Grantor and each other Grantor that are
kept overnight in Deposit Accounts for which Deposit Account Agreements are not
in effect, exceeds $100,000.

      (d) During any period that the Credit Agreement is not in effect,
following and during the continuance of a Specified Event, such Grantor shall
transfer all funds out of each of its Deposit Accounts that is not the Master
Deposit Account (other than, in the aggregate, funds in all Deposit Accounts
(other than the Master Deposit Account) that do not exceed at any time $10,000)
for deposit into the Master Deposit Account at the close of business each day
or, if not commercially reasonable to do so, no less frequently than once every
five Business Days.

      (e) During any period that the Credit Agreement is not in effect, the
Collateral Agent shall have the right to apply any amount in each Deposit
Account (including the Master Deposit Account) to the payment of any Secured
Obligations which are due and payable or payable upon demand or to the payment
of any Secured Obligations at any time that a Specified Event shall have
occurred and be continuing.

      (f) With respect to each Deposit Account maintained with the Collateral
Agent (including the Master Deposit Account), it is hereby agreed that (i)
deposits in each such Deposit Account are subject to a security interest as
contemplated hereby, (ii) following the termination of the Credit Agreement,
each such Deposit Account shall be under the sole dominion and control of the
Collateral Agent and (iii) following the termination of the Credit Agreement,
the Collateral Agent shall have the sole right of withdrawal over each such
Deposit Account; provided, however, that, unless and until the Collateral Agent
shall notify the applicable Grantors that a Specified Event shall have occurred
and be continuing and that during the continuance thereof no such Grantor shall
withdraw any of the funds contained in any such Deposit Account (which notice
may be given by telephone if promptly confirmed in writing or by facsimile), any
such Grantor may at any time withdraw any of the funds contained in its Deposit
Account for use in any lawful manner not inconsistent with the provisions of
this Security Agreement, the Indenture or any other Related Document.

      SECTION 4.4. Motor Vehicles. (a) Such Grantor shall deliver to the
Collateral Agent the original of the certificate of title or ownership listing
the Collateral Agent as lienholder for (i) any Motor Vehicle owned as of the
date hereof by such Grantor that has a fair market value of at least $50,000
within 45 days of the date hereof or (ii) at the request of the Collateral
Agent, following a Specified Event any other Motor Vehicle owned by such Grantor
within 45 days of such request.

      (b) Upon the acquisition after the date hereof by such Grantor of (i) any
Motor Vehicle having a fair market value of at least $50,000 or (ii) any other
Motor Vehicle for which the Collateral Agent has requested the original of the
certificate of title or ownership thereof following a Specified Event, such
Grantor shall deliver to the Collateral Agent originals of the certificates of
title or ownership for such Motor Vehicles, together with the manufacturer's
statement of origin with the Collateral Agent listed as lienholder.

                                       19
<PAGE>

      (c) Without limiting Section 5.1, such Grantor hereby appoints the
Collateral Agent as its attorney-in-fact, effective the date hereof and
terminating upon the termination of this Security Agreement, for the purpose of
(i) executing on behalf of such Grantor title or ownership applications for
filing with appropriate state agencies to enable Motor Vehicles now owned or
hereafter acquired by such Grantor to be retitled and the Collateral Agent
listed as lienholder thereon, (ii) filing such applications with such state
agencies and (iii) executing such other documents and instruments on behalf of,
and taking such other action in the name of, such Grantor as the Collateral
Agent may deem necessary or advisable to accomplish the purposes hereof
(including, without limitation, the purpose of creating in favor of the
Collateral Agent a perfected lien on the Motor Vehicles and exercising the
rights and remedies of the Collateral Agent under Section 6.1 hereof). This
appointment as attorney-in-fact is irrevocable and coupled with an interest.

      (d) Any certificates of title or ownership delivered pursuant to the terms
hereof shall be accompanied by odometer statements for each Motor Vehicle
covered thereby.

      SECTION 4.5. As to Collateral. (a) Until the occurrence and continuance of
a Specified Event, and such time during any period that the Credit Agreement is
not in effect, as the Collateral Agent shall notify such Grantor of the
revocation of such power and authority such Grantor (i) may in the ordinary
course of its business (except as otherwise permitted under the Indenture), at
its own expense, sell, lease or furnish under the contracts of service any of
the Inventory normally held by such Grantor for such purpose, and use and
consume, in the ordinary course of its business (except as otherwise permitted
under the Indenture), any raw materials, work in process or materials normally
held by such Grantor for such purpose, (ii) will, at its own expense, endeavor
to collect, as and when due, all amounts due with respect to any of the
Collateral, including the taking of such action with respect to such collection
as the Collateral Agent may reasonably request following the occurrence of a
Specified Event or, in the absence of such request, as such Grantor may deem
advisable, and (iii) may grant, in the ordinary course of business (except as
otherwise permitted under the Indenture), to any party obligated on any of the
Collateral, any rebate, refund or allowance to which such party may be lawfully
entitled, and may accept, in connection therewith, the return of goods, the sale
or lease of which shall have given rise to such Collateral. The Collateral
Agent, however, may, at any time following a Specified Event during any period
that the Credit Agreement is not in effect, whether before or after any
revocation of such power and authority or the maturity of any of the Secured
Obligations, notify any parties obligated on any of the Collateral to make
payment to the Collateral Agent of any amounts due or to become due thereunder
and enforce collection of any of the Collateral by suit or otherwise and
surrender, release, or exchange all or any part thereof, or compromise or extend
or renew for any period (whether or not longer than the original period) any
indebtedness thereunder or evidenced thereby. Upon request of the Collateral
Agent following a Specified Event during any period that the Credit Agreement is
not in effect, such Grantor will, at its own expense, notify any parties
obligated on any of the Collateral to make payment to the Collateral Agent of
any amounts due or to become due thereunder.

      (b) Following a Specified Event during any period that the Credit
Agreement is not in effect, the Collateral Agent is authorized to endorse, in
the name of such Grantor, any item, howsoever received by the Collateral Agent,
representing any payment on or other proceeds of any of the Collateral.

                                       20
<PAGE>

      SECTION 4.6. As to Intellectual Property Collateral. Each Grantor
covenants and agrees to comply with the following provisions as such provisions
relate to any Intellectual Property Collateral of such Grantor:

            (a) such Grantor shall not, unless such Grantor shall either (i)
      reasonably and in good faith determine (and notice of such determination
      shall have been delivered to the Collateral Agent) that any of the Patent
      Collateral is of negligible economic value to such Grantor, or (ii) have a
      valid business purpose to do otherwise, do any act, or omit to do any act,
      whereby any of the Patent Collateral may lapse or become abandoned or
      dedicated to the public or unenforceable;

            (b) such Grantor shall not, and such Grantor shall not permit any of
      its licensees to, unless such Grantor shall either (i) reasonably and in
      good faith determine (and notice of such determination shall have been
      delivered to the Collateral Agent) that any of the Trademark Collateral is
      of negligible economic value to such Grantor, or (ii) have a valid
      business purpose to do otherwise,

                  (i) fail to continue to use any of the U.S. Trademark
            Collateral in order to maintain all of the U.S. Trademark Collateral
            in full force free from any claim of abandonment for non-use,

                  (ii) fail to maintain as in the past the quality of products
            and services offered under all of the Trademark Collateral in a
            manner which might reasonably be expected to cause material
            impairment of any such Trademark Collateral,

                  (iii) fail to employ all of the Trademark Collateral
            registered with any Federal or state or foreign authority with an
            appropriate notice of such registration,

                  (iv) use any of the Trademark Collateral registered with any
            Federal or state or foreign authority except for the uses for which
            registration or application for registration of such Trademark
            Collateral has been is being or will be made, and

                  (v) do or permit any act or knowingly omit to do any act
            whereby any of the Trademark Collateral may lapse or become invalid
            or unenforceable;

            (c) such Grantor shall not, unless such Grantor shall either (i)
      reasonably and in good faith determine (and notice of such determination
      shall have been delivered to the Collateral Agent) that any of the
      Copyright Collateral or any of the Trade Secrets Collateral is of
      negligible economic value to such Grantor, or (ii) have a valid business
      purpose to do otherwise, do or permit any act or knowingly omit to do any
      act whereby any of the Copyright Collateral or any of the Trade Secrets
      Collateral may lapse or become invalid or unenforceable or placed in the
      public domain except upon expiration of the end of an unrenewable term of
      a registration thereof;

            (d) such Grantor shall notify the Collateral Agent immediately if it
      knows, or has reason to know, that any application or registration
      relating to any material item of the

                                       21
<PAGE>
      Intellectual Property Collateral may become abandoned or dedicated to the
      public or placed in the public domain or invalid or unenforceable, or of
      any adverse determination or development (including the institution of, or
      any such determination or development in, any proceeding in the United
      States Patent and Trademark Office, the United States Copyright Office or
      any foreign counterpart thereof or any court) regarding such Grantor's
      ownership of any of the Intellectual Property Collateral, its right to
      register the same or to keep and maintain and enforce the same;

            (e) in no event shall such Grantor or any of its agents, employees,
      designees or licensees file an application for the registration of any
      Intellectual Property Collateral with the United States Patent and
      Trademark Office, the United States Copyright Office or any similar office
      or agency in any other country or any political subdivision thereof,
      unless it promptly informs the Collateral Agent, and upon request of the
      Collateral Agent, executes and delivers any and all agreements,
      instruments, documents and papers as the Collateral Agent may reasonably
      request consonant with the Intercreditor Agreement to evidence the
      Collateral Agent's security interest in such Intellectual Property
      Collateral and the goodwill and general intangibles of such Grantor
      relating thereto or represented thereby;

            (f) such Grantor shall take all necessary steps, including in any
      proceeding before the United States Patent and Trademark Office, the
      United States Copyright Office or any similar office or agency in any
      other country or any political subdivision thereof, to maintain and pursue
      any application (and to obtain the relevant registration) filed with
      respect to, and to maintain any registration of, the Intellectual Property
      Collateral, including the filing of applications for renewal, affidavits
      of use, affidavits of incontestability and opposition, interference and
      cancellation proceedings and the payment of fees and taxes (except to the
      extent that dedication, abandonment or invalidation is permitted under the
      foregoing clauses (a), (b) and (c)); and

            (g) such Grantor shall, contemporaneously herewith, execute and
      deliver to the Collateral Agent a Trademark Security Agreement in the
      forms of Exhibits B hereto, respectively, and shall execute and deliver to
      the Collateral Agent any other document required to acknowledge or
      register or perfect the Collateral Agent's interest in any part of the
      Intellectual Property Collateral.

      SECTION 4.7. Insurance. Such Grantor will maintain or cause to be
maintained with responsible insurance companies insurance with respect to its
business and properties (including the Equipment and Inventory) against such
casualties and contingencies and of such types and in such amounts as is
required pursuant to the Indenture and will, upon the request of the Collateral
Agent, furnish a certificate of a reputable insurance broker setting forth the
nature and extent of all insurance maintained by such Grantor in accordance with
this Section.

      SECTION 4.8. Further Assurances, etc. Such Grantor agrees that, from time
to time at its own expense, it will promptly execute and deliver all further
instruments and documents, and take all further action, that may be necessary or
desirable, or that the Collateral Agent may request, in order to perfect,
preserve and protect any security interest granted or purported to be granted
hereby or to enable the Collateral Agent to exercise and enforce its rights and
remedies

                                       22
<PAGE>

hereunder with respect to any Collateral. Without limiting the generality of the
foregoing, such Grantor will

            (a) mark conspicuously each document included in the Inventory, each
      chattel paper included in the Receivables and each Related Contract and,
      at the request of the Collateral Agent, each of its records pertaining to
      the Collateral with a legend, in form and substance satisfactory to the
      Collateral Agent, indicating that such document, chattel paper, Related
      Contract or Collateral is subject to the security interest granted hereby;

            (b) following the termination of the Credit Agreement, if any
      Receivable shall be evidenced by a promissory note or other instrument,
      negotiable document or chattel paper, deliver and pledge to the Collateral
      Agent hereunder such promissory note, instrument, negotiable document or
      chattel paper duly endorsed and accompanied by duly executed instruments
      of transfer or assignment, all in form and substance satisfactory to the
      Collateral Agent;

            (c) execute and file such financing or continuation statements, or
      amendments thereto, and such other instruments or notices (including any
      assignment of claim form under or pursuant to the federal assignment of
      claims statute, 31 U.S.C. Section 3726, any successor or amended version
      thereof or any regulation promulgated under or pursuant to any version
      thereof), as may be necessary or desirable, or as the Collateral Agent may
      request, in order to perfect and preserve the security interests and other
      rights granted or purported to be granted to the Collateral Agent hereby;

            (d) not enter into any agreement amending, supplementing, or waiving
      any provision of any Intercompany Note (including any underlying
      instrument pursuant to which such Intercompany Note is issued) or
      compromising or releasing or extending the time for payment of any
      obligation of the maker thereof;

            (e) promptly execute and deliver all further instruments, and take
      all further action, that may be necessary or desirable, or that the
      Collateral Agent may reasonably request, in order to perfect and protect
      any security interest granted or purported to be granted hereby or to
      enable the Collateral Agent to exercise and enforce its rights and
      remedies hereunder with respect to any Collateral;

            (f) cause the Collateral Agent to be listed as the lienholder on the
      certificate of title or ownership relating to (i) any Motor Vehicle owned
      by such Grantor that has a fair market value of at least $50,000 or (ii)
      at the request of the Collateral Agent, any other Motor Vehicle owned by
      such Grantor;

            (g) not take or omit to take any action the taking or the omission
      of which would result in any impairment or alteration of any obligation of
      the maker of any Intercompany Note or other instrument constituting
      Collateral;

            (h) furnish to the Collateral Agent, from time to time at the
      Collateral Agent's request, statements and schedules further identifying
      and describing the Collateral and such other reports in connection with
      the Collateral as the Collateral Agent may reasonably request, all in
      reasonable detail;

                                       23
<PAGE>

            (i) do all things reasonably requested by the Collateral Agent in
      order to enable the Collateral Agent to have control (as such term is
      defined in Article 8 and Article 9 of any applicable Uniform Commercial
      Code relevant to the creation, perfection or priority of Collateral
      consisting of investment property, deposit accounts, electronic chattel
      paper and letter of credit rights) over any Collateral; and

            (j) notify the Collateral Agent if such Grantor reasonably believes
      it is entitled to recover a commercial tort claim the value of which is in
      excess of $50,000 and such Grantor take all such action reasonably
      requested by the Collateral Agent to grant to the Collateral Agent and
      perfect a security interest in such commercial tort claim.

With respect to the foregoing and the grant of the security interest hereunder,
such Grantor hereby authorizes the Collateral Agent to file one or more
financing or continuation statements, and amendments thereto, relative to all or
any part of the Collateral. Each Grantor agrees that a carbon, electronic,
photographic or other reproduction of this Security Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a
financing statement where permitted by law.

                                   ARTICLE V

                              THE COLLATERAL AGENT

      SECTION 5.1. Collateral Agent Appointed Attorney-in-Fact. Each Grantor
hereby irrevocably appoints the Collateral Agent such Grantor's
attorney-in-fact, with full authority in the place and stead of such Grantor and
in the name of such Grantor or otherwise, from time to time in the Collateral
Agent's discretion, following the occurrence and continuation of a Specified
Event, to take any action and to execute any instrument which the Collateral
Agent may deem necessary or advisable to accomplish the purposes of this
Security Agreement, including:

            (a) to ask, demand, collect, sue for, recover, compromise, receive
      and give acquittance and receipts for moneys due and to become due under
      or in respect of any of the Collateral;

            (b) to receive, endorse, and collect any drafts or other
      instruments, documents and chattel paper, in connection with clause (a)
      above;

            (c) to file any claims or take any action or institute any
      proceedings which the Collateral Agent may deem necessary or desirable for
      the collection of any of the Collateral or otherwise to enforce the rights
      of the Collateral Agent with respect to any of the Collateral; and

            (d) to perform the affirmative obligations of such Grantor hereunder
      (including all obligations of such Grantor pursuant to Section 4.10).

                                       24
<PAGE>

Each Grantor hereby acknowledges, consents and agrees that the power of attorney
granted pursuant to this Section is irrevocable and coupled with an interest;
provided, however, that notwithstanding anything to the contrary contained in
this Agreement, the Collateral Agent shall not exercise and shall have no duty
to exercise, any of the powers set forth in this Section, except in accordance
with the Intercreditor Agreement.

      SECTION 5.2. Collateral Agent May Perform. If any Grantor fails to perform
any agreement contained herein, the Collateral Agent may itself perform, or
cause performance of, such agreement, and the expenses of the Collateral Agent
incurred in connection therewith shall be payable by such Grantor pursuant to
Section 6.4.

      SECTION 5.3. Collateral Agent Has No Duty. In addition to, and not in
limitation of, Section 2.6, the powers conferred on the Collateral Agent
hereunder are solely to protect its interest (on behalf of the Secured Parties)
in the Collateral and shall not impose any duty on it to exercise any such
powers. Except for reasonable care of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Collateral Agent
shall have no duty as to any Collateral or responsibility for

            (a) ascertaining or taking action with respect to calls,
      conversions, exchanges, maturities, tenders or other matters relative to
      any investment property constituting Collateral, whether or not the
      Collateral Agent has or is deemed to have knowledge of such matters, or

            (b) taking any necessary steps to preserve rights against prior
      parties or any other rights pertaining to any Collateral.

      SECTION 5.4. Reasonable Care. The Collateral Agent is required to exercise
reasonable care in the custody and preservation of any of the Collateral in its
possession; provided, however, the Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of any of the
Collateral, if it takes such action for that purpose as any Grantor reasonably
requests in writing at times other than upon the occurrence and during the
continuance of any Specified Event, but failure of the Collateral Agent to
comply with any such request at any time shall not in itself be deemed a failure
to exercise reasonable care. The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of Collateral in its
possession if such Collateral is accorded treatment substantially equal to that
which the Collateral Agent accords its own property. Except as expressly
provided herein to the contrary, in no event will the Collateral Agent have any
liability under this Security Agreement or otherwise except for its own gross
negligence or willful misconduct.

      SECTION 5.5. Other Duties and Rights of the Collateral Agent.

            (a) The Collateral Agent shall not be liable for interest on any
      money or assets received by it except as the Collateral Agent may agree in
      writing with the Company. Assets held in trust by the Collateral Agent
      need not be segregated from other assets except to the extent required by
      law.

            (b) The Collateral Agent may rely and shall be fully protected in
      acting or refraining from acting upon any document reasonably believed by
      it to be genuine and to

                                       25
<PAGE>

have been signed or presented by the proper Person. The Collateral Agent need
not investigate any fact or matter stated in any document.

            (c) Before the Collateral Agent acts or refrains from acting, it may
      consult with counsel and may require an officers' certificate or an
      opinion of counsel, or both, at the expense of the Grantors. The
      Collateral Agent shall not be liable for any action it takes or omits to
      take in good faith in reliance on such Officers' Certificate or Opinion of
      Counsel.

            (d) The Collateral Agent may act through its attorneys and agents
      and shall not be responsible for the misconduct or negligence of any agent
      appointed with due care.

            (e) The Collateral Agent shall not be liable for any action that it
      takes or omits to take in good faith which it reasonably believes to be
      authorized or within its rights or powers under this Security Agreement.

            (f) The Collateral Agent shall not be bound to make any
      investigation into the facts or matters stated in any resolution,
      certificate, statement, instrument, opinion, notice, request, direction,
      consent, order, bond, debenture, or other paper or document, but the
      Collateral Agent, in its discretion, may make such further inquiry or
      investigation into such facts or matters as it may see fit and, if the
      Collateral Agent shall determine to make such further inquiry or
      investigation, it shall be entitled, upon reasonable notice to the
      Company, to examine the books, records and premises of the Company,
      personally or by agent or attorney and to consult with the officers and
      representatives of the Company, including the Company's accountants and
      attorneys. Except as expressly stated herein to the contrary, in no event
      shall the Collateral Agent have any responsibility to ascertain whether
      there has been compliance with any of the covenants or provisions of the
      Security Agreement.

            (g) The Collateral Agent shall be under no obligation to exercise
      any of the rights or powers vested in it by this Security Agreement at the
      request, order or direction of the Trustee or any of the Holders pursuant
      to the provisions of this Security Agreement unless such Holders shall
      have offered to the Collateral Agent security or indemnity reasonably
      satisfactory to the Collateral Agent against the costs, expenses and
      liabilities which may be incurred by it in compliance with such request,
      order or direction.

            (h) The Collateral Agent shall not be required to give any bond or
      surety in respect of the performance of its powers and duties hereunder.

      SECTION 5.6. Replacement of Collateral Agent.

            (a) The Collateral Agent may resign upon 30 days prior notice by so
      notifying the Company and the Trustee. The Trustee may remove the
      Collateral Agent upon 30 days prior notice by so notifying the Company,
      and, in such event, the Trustee and the Company shall appoint a successor
      Collateral Agent. Either the Trustee or the Company may remove the
      Collateral Agent if:

                  (i) the Collateral Agent is adjudged bankrupt or insolvent;

                                       26
<PAGE>

                  (ii) a receiver or other public officer takes charge of the
            Collateral Agent or its property; or

                  (iii) the Collateral Agent becomes incapable of acting.

            (b) If the Collateral Agent resigns or is removed or if a vacancy
      exists in the office of Collateral Agent for any reason, the Trustee and
      the Company shall notify each Holder of such event and shall promptly
      appoint a successor Collateral Agent.

            (c) A successor Collateral Agent shall deliver a written acceptance
      of its appointment to the retiring Collateral Agent and to the Company.
      Immediately after that, the retiring Collateral Agent shall transfer all
      property held by it as Collateral Agent to the successor Collateral Agent,
      subject to the lien provided in Section 7.07 of the Indenture, the
      resignation or removal of the retiring Collateral Agent shall become
      effective, and the successor Collateral Agent shall have all the rights,
      powers and duties of the Collateral Agent under this Security Agreement.

            (d) If a successor Collateral Agent does not take office within 60
      days after the retiring Collateral Agent resigns or is removed, the
      retiring Collateral Agent, the Trustee or the Company may petition any
      court of competent jurisdiction for the appointment of a successor
      Collateral Agent.

            (e) Notwithstanding any resignation or replacement of the Collateral
      Agent pursuant to this Section, each Grantor's obligations under Section
      6.4 shall continue for the benefit of the retiring Collateral Agent.

                                   ARTICLE VI

                                    REMEDIES

      SECTION 6.1. Certain Remedies. If any Specified Event shall have occurred
and be continuing then, subject in all respects to the requirements and
limitations provided in the Intercreditor Agreement:

            (a) The Collateral Agent may exercise in respect of the Collateral,
      in addition to other rights and remedies provided for herein or otherwise
      available to it, all the rights and remedies of a secured party on default
      under the U.C.C. (whether or not the U.C.C. applies to the affected
      Collateral) and also may

                  (i) require each Grantor to, and such Grantor hereby agrees
            that it will, at its expense and upon request of the Collateral
            Agent forthwith, assemble all or part of the Collateral as directed
            by the Collateral Agent and make it available to the Collateral
            Agent at a place to be designated by the Collateral Agent which is
            reasonably convenient to both parties, and

                                       27
<PAGE>

                  (ii) without notice except as specified below, sell the
            Collateral or any part thereof in one or more parcels at public or
            private sale, at any of the Collateral Agent's offices or elsewhere,
            for cash, on credit or for future delivery, and upon such other
            terms as the Collateral Agent may deem commercially reasonable. Each
            Grantor agrees that, to the extent notice of sale shall be required
            by law, at least ten days' prior notice to such Grantor of the time
            and place of any public sale or the time after which any private
            sale is to be made shall constitute reasonable notification. The
            Collateral Agent shall not be obligated to make any sale of
            Collateral regardless of notice of sale having been given. The
            Collateral Agent may adjourn any public or private sale from time to
            time by announcement at the time and place fixed therefor, and such
            sale may, without further notice, be made at the time and place to
            which it was so adjourned. Each Grantor hereby waives any claims
            against the Collateral Agent arising by reason of the fact that the
            price at which any Collateral may have been sold at any private sale
            was less than the price which might have been obtained at a public
            sale, even if the Collateral Agent accepts the first offer received
            and does not offer such Collateral to more than one offeree. The
            Collateral Agent may sell the Collateral without giving any
            warranties as to the Collateral. The Collateral Agent may
            specifically disclaim or modify any warranties of title or the like.
            This procedure will not be considered to adversely affect the
            commercial reasonableness of any sale of the Collateral. The
            Collateral Agent shall have no obligation to marshal any of the
            Collateral.

            (b) All cash proceeds received by the Collateral Agent in respect of
      any sale of, collection from, or other realization upon, all or any part
      of the Collateral shall be applied by the Collateral Agent against, all or
      any part of the Secured Obligations as follows:

                  (i) first, to the payment of any amounts payable to the
            Collateral Agent pursuant to Sections 6.08 and 7.07 of the Indenture
            and Section 6.4;

                  (ii) second, to the equal and ratable payment of Secured
            Obligations, in accordance with each Secured Party's Secured
            Obligations owing to it under or pursuant to the Indenture or any
            other Related Document, applied

                        (A) first to fees and expense reimbursements then due to
                  such Secured Party,

                        (B) then to interest due to such Secured Party, and

                        (C) then to pay the remaining outstanding Secured
                  Obligations; and

                  (iii) fourth, to be held as additional collateral security
            until the payment in full in cash of all of the Secured Obligations,
            after which such remaining cash proceeds shall be paid over to the
            applicable Grantor or to whomsoever may be lawfully entitled to
            receive such surplus.

            (c) The Collateral Agent may

                                       28
<PAGE>

                  (i) transfer all or any part of the Collateral into the name
            of the Collateral Agent or its nominee, with or without disclosing
            that such Collateral is subject to the lien and security interest
            hereunder,

                  (ii) notify the parties obligated on any of the Collateral to
            make payment to the Collateral Agent of any amount due or to become
            due thereunder,

                  (iii) enforce collection of any of the Collateral by suit or
            otherwise, and surrender, release or exchange all or any part
            thereof, or compromise or extend or renew for any period (whether or
            not longer than the original period) any obligations of any nature
            of any party with respect thereto,

                  (iv) endorse any checks, drafts, or other writings in such
            Grantor's name to allow collection of the Collateral,

                  (v) take control of any proceeds of the Collateral, and

                  (vi) execute (in the name, place and stead of such Grantor)
            endorsements, assignments, stock powers and other instruments of
            conveyance or transfer with respect to all or any of the Collateral.

      SECTION 6.2. Securities Laws. Subject in all respects to the requirements
and limitations provided in the Intercreditor Agreement, if the Collateral Agent
shall determine to exercise its right to sell all or any of the Collateral
pursuant to Section 6.1, each Grantor agrees that, upon request of the
Collateral Agent, such Grantor will, at its own expense:

            (a) execute and deliver, and cause (or, with respect to any issuer
      which is not a Subsidiary of such Grantor, use its best efforts to cause)
      each issuer of the Collateral contemplated to be sold and the directors
      and officers thereof to execute and deliver, all such instruments and
      documents, and do or cause to be done all such other acts and things, as
      may be necessary or, in the opinion of the Collateral Agent, advisable to
      register such Collateral under the provisions of the Securities Act of
      1933, as from time to time amended (the "Securities Act"), and to cause
      the registration statement relating thereto to become effective and to
      remain effective for such period as prospectuses are required by law to be
      furnished, and to make all amendments and supplements thereto and to the
      related prospectus which, in the opinion of the Collateral Agent, are
      necessary or advisable, all in conformity with the requirements of the
      Securities Act and the rules and regulations of the Securities and
      Exchange Commission applicable thereto;

            (b) use its best efforts to qualify the Collateral under the state
      securities or "Blue Sky" laws and to obtain all necessary governmental
      approvals for the sale of the Collateral, as requested by the Collateral
      Agent;

            (c) cause (or, with respect to any issuer which is not a Subsidiary
      of such Grantor, use its best efforts to cause) each such issuer to make
      available to its security holders, as soon as practicable, an earnings
      statement that will satisfy the provisions of Section 11(a) of the
      Securities Act; and

                                       29
<PAGE>

            (d) do or cause to be done all such other acts and things as may be
      necessary to make such sale of the Collateral or any part thereof valid
      and binding and in compliance with applicable law.

Each Grantor further acknowledges the impossibility of ascertaining the amount
of damages that would be suffered by the Collateral Agent or the Secured Parties
by reason of the failure by any Grantor to perform any of the covenants
contained in this Section and, consequently, agrees that, if such Grantor shall
fail to perform any of such covenants, it shall pay, as liquidated damages and
not as a penalty, an amount equal to the value (as determined by the Collateral
Agent) of the Collateral on the date the Collateral Agent shall demand
compliance with this Section.

      SECTION 6.3. Compliance with Restrictions. Each Grantor agrees that in any
sale of any of the Collateral whenever a Specified Event shall have occurred and
be continuing, the Collateral Agent is hereby authorized to comply with any
limitation or restriction in connection with such sale as it may be advised by
counsel is necessary in order to avoid any violation of applicable law
(including compliance with such procedures as may restrict the number of
prospective bidders and purchasers, require that such prospective bidders and
purchasers have certain qualifications, and restrict such prospective bidders
and purchasers to Persons who will represent and agree that they are purchasing
for their own account for investment and not with a view to the distribution or
resale of such Collateral), or in order to obtain any required approval of the
sale or of the purchaser by any governmental regulatory authority or official,
and such Grantor further agrees that such compliance shall not result in such
sale being considered or deemed not to have been made in a commercially
reasonable manner, nor shall the Collateral Agent be liable nor accountable to
such Grantor for any discount allowed by the reason of the fact that such
Collateral is sold in compliance with any such limitation or restriction.

      SECTION 6.4. Indemnity and Expenses.

            (a) Each Grantor jointly and severally agrees to indemnify the
      Collateral Agent from and against any and all claims, losses and
      liabilities arising out of or resulting from this Security Agreement
      (including enforcement of this Security Agreement), except claims, losses
      or liabilities resulting from the Collateral Agent's gross negligence or
      willful misconduct.

            (b) Each Grantor will upon demand pay to the Collateral Agent the
      amount of any and all reasonable expenses, including the reasonable fees
      and disbursements of its counsel and of any experts and agents, which the
      Collateral Agent may incur in connection with

                  (i) the administration of this Security Agreement,

                  (ii) the custody, preservation, use or operation of, or the
            sale of, collection from, or other realization upon, any of the
            Collateral,

                  (iii) the exercise or enforcement of any of the rights of the
            Collateral Agent or the Secured Parties hereunder, and

                                       30
<PAGE>
                  (iv) the failure by any Grantor to perform or observe any of
            the provisions hereof.

                                  ARTICLE VII

                            MISCELLANEOUS PROVISIONS

      SECTION 7.1. Related Document. This Security Agreement is a Related
Document executed pursuant to the Indenture and shall (unless otherwise
expressly indicated herein) be construed, administered and applied in accordance
with the provisions Section 1.04 thereof.

      SECTION 7.2. Amendments; etc. No amendment to or waiver of any provision
of this Security Agreement nor consent to any departure by any Grantor herefrom,
shall in any event be effective unless the same shall be in writing and signed
by the Collateral Agent (on behalf of (x) the Holders or (y) the Holder or
Holders of at least a majority in aggregate principal amount of the outstanding
Notes, as the case may be), and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

      SECTION 7.3. Protection of Collateral. The Collateral Agent may from time
to time, at its option, perform any act which each Grantor agrees hereunder to
perform and which such Grantor shall fail to perform after being requested in
writing so to perform (it being understood that no such request need be given
after the occurrence and during the continuance of a Specified Event) and the
Collateral Agent may from time to time take any other action which the
Collateral Agent reasonably deems necessary for the maintenance, preservation or
protection of any of the Collateral or of its security interest therein.

      SECTION 7.4. Addresses for Notices. All notices and other communications
provided for hereunder shall be in writing (including telegraphic communication)
and, if to any Grantor, mailed or telecopied or delivered to it, addressed to it
in care of the Company at the address of the Company specified in the Indenture,
if to the Collateral Agent, mailed or telecopied or delivered to it, addressed
to it at the address of the Collateral Agent specified in the Indenture. All
such notices and other communications, when mailed and properly addressed with
postage prepaid or if properly addressed and sent by pre-paid courier service,
shall be deemed given when received; any such notice or communication, if
transmitted by telecopier, shall be deemed given when transmitted and
electronically confirmed.

      SECTION 7.5. Additional Grantors. Upon the execution and delivery by any
other Person of an instrument in the form of Annex I hereto, such Person shall
become a "Grantor" hereunder with the same force and effect as if originally
named as a Grantor herein. The execution and delivery of any such instrument
shall not require the consent of any other Grantor hereunder. The rights and
obligations of each Grantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Grantor as a party to this Security
Agreement.

      SECTION 7.6. Section Captions. Section captions used in this Security
Agreement are for convenience of reference only, and shall not affect the
construction of this Security Agreement.

                                       31
<PAGE>
      SECTION 7.7. Severability. Wherever possible each provision of this
Security Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Security Agreement
shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Security Agreement.

      SECTION 7.8. Counterparts. This Security Agreement may be executed by the
parties hereto in several counterparts, each of which shall be deemed an
original and all of which shall constitute together but one and the same
agreement.

      SECTION 7.9. Governing Law, Entire Agreement, etc. THIS SECURITY AGREEMENT
SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE
SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR
COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF
NEW YORK. THIS SECURITY AGREEMENT AND THE OTHER RELATED DOCUMENTS CONSTITUTE THE
ENTIRE UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER
HEREOF AND THEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH
RESPECT THERETO.

      SECTION 7.10. Intercreditor Agreement.

      (a) In case of any conflict or inconsistency between this Security
Agreement and the Intercreditor Agreement or with respect to the rights and
obligations of the parties prior to enforcement and the conditions and terms on
which security interests may be enforced, the Intercreditor Agreement shall
control; provided, however, that the terms of the Intercreditor Agreement shall
not increase the obligations of, or adversely affect any rights, of any Grantor,
in each case under this Security Agreement.

      (b) Not in limitation but in furtherance of the foregoing, any provision
of this Security Agreement that provides for the Collateral Agent to have
"control" of any Collateral consisting of investment property for purposes of
Article 8 or 9 of the U.C.C. shall be deemed satisfied if the Lender Agent shall
have control of such Collateral (including, in the case of any such Collateral
consisting of certificated securities by the delivery of such Collateral to the
Lender Agent) so long as the conditions described in Section 9-314(c) of the
U.C.C. shall not be satisfied prior to the Collateral Agent obtaining control of
any such Collateral following the relinquishment of such control by the Lender
Agent unless the Lien of the Collateral Agent in such Collateral is terminated
or released in accordance with the terms hereof or the Intercreditor Agreement.

      (c) Prior to the termination of the Credit Agreement, in the event that
any obligation of a Grantor conflicts with an obligation of such Grantor under
the Collateral Documents executed pursuant to (and as defined in) the Credit
Agreement, such Grantor will first comply with its

                                       32
<PAGE>
obligation under such Collateral Documents, and then, to the extent possible,
comply with its obligations hereunder.

      (d) Notwithstanding anything herein to the contrary, the lien and security
interest granted to the Collateral Agent pursuant to this Security Agreement and
the exercise of any right or remedy by the Collateral Agent hereunder, in each
case in respect of any collateral constituting Noteholder Common Collateral (as
defined in the Intercreditor Agreement described below) are subject to the
provisions of the Intercreditor Agreement. In the event of any conflict between
the terms of the Intercreditor Agreement and this Security Agreement, the terms
of the Intercreditor Agreement shall govern.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       33
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement
to be duly executed, all as of the date first written above.

                                    GOLFSMITH INTERNATIONAL, INC.

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                    GOLFSMITH INTERNATIONAL HOLDINGS, INC.

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                    GOLFSMITH GP HOLDINGS, INC.

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                    GOLFSMITH HOLDINGS, L.P.
                                    By: Golfsmith GP Holdings, Inc., as General
                                     Partner

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                                              Security Agreement
<PAGE>
                                    GOLFSMITH GP, L.L.C.,
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                          Partner

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                    GOLFSMITH DELAWARE, L.L.C.,
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                        Partner

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                       Name:  Noel E. Wilens
                                       Title: Vice President

                                    GOLFSMITH CANADA, L.L.C.,
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                          Partner

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                    GOLFSMITH EUROPE, L.L.C.,
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                          Partner

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                                              Security Agreement
<PAGE>
                                    GOLFSMITH USA, L.L.C.,
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                          Partner

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                    GOLFSMITH NU, L.L.C.,
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                     Partner

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                    GOLFSMITH LICENSING, L.L.C.,
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                          Partner

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                    GOLFSMITH INTERNATIONAL, L.P.,
                                    By: Golfsmith GP, L.L.C., as General Partner
                                    By: Golfsmith Holdings, L.P., as Sole Member
                                    By: Golfsmith GP Holdings, Inc., as General
                                     Partner

                                    By: /s/ NOEL E. WILENS
                                        --------------------------------------
                                        Name:  Noel E. Wilens
                                        Title: Vice President

                                                              Security Agreement
<PAGE>
                                    U.S. BANK TRUST NATIONAL ASSOCIATION, as
                                      Collateral Agent

                                    By /s/ BARBARA A. NASTRO
                                       ---------------------------------------
                                       Name:  Barbara A. Nastro
                                       Title: Vice President

                                                              Security Agreement
<PAGE>
                                   SCHEDULE I

Item A. Intercompany Notes

-     Maker: Intercompany Demand Note, dated January 1, 1999, by and between
      Golfsmith Europe, L.L.C., as borrower, and Golfsmith Holdings, L.P., as
      lender, for aggregate unpaid amount of all loans and intercompany advances
      made by lender to borrower.

Item B. Securities

<TABLE>
<CAPTION>
          GRANTOR                              ISSUER                 AUTHORIZED SHARES     OUTSTANDING    % PLEDGED
          -------                              ------                 -----------------     -----------    ---------
<S>                                 <C>                               <C>                   <C>            <C>
Golfsmith International             Golfsmith International, Inc.             100               100           100%
Holdings, Inc.

Golfsmith International, Inc.       Golfsmith GP Holdings, Inc.            10,000             1,000           100%
</TABLE>

<TABLE>
<CAPTION>
                                                               TYPE OF L.L.C
        ISSUER                          ISSUER                   INTERESTS         % PLEDGED
        ------                          ------                   ---------         ---------
<S>                            <C>                             <C>                 <C>
Golfsmith Holdings, L.P.       Golfsmith GP, L.L.C.              membership           100%

Golfsmith Holdings, L.P.       Golfsmith Delaware, L.L.C.        membership           100%

Golfsmith Holdings, L.P.       Golfsmith USA, L.L.C.             membership           100%

Golfsmith Holdings, L.P.       Golfsmith Licensing, L.L.C.       membership           100%

Golfsmith Holdings, L.P.       Golfsmith NU, L.L.C.              membership           100%

Golfsmith Holdings, L.P.       Golfsmith Europe, L.L.C.          membership           100%

Golfsmith Holdings, L.P.       Golfsmith Canada, L.L.C.          membership           100%
</TABLE>

<TABLE>
<CAPTION>
                                                              TYPE OF
                                                            PARTNERSHIP
     GRANTOR                      ISSUER                     INTEREST         % PLEDGED
     -------                      ------                     --------         ---------
<S>                      <C>                                <C>               <C>
Golfsmith                Golfsmith Holdings, L.P.           99% limited
International, Inc.                                         partnership

Golfsmith GP             Golfsmith Holdings, L.P.           1% general          100%
Holdings, Inc.                                              partnership

Golfsmith GP, L.L.C.     Golfsmith International, L.P.      99% limited
                                                            partnership

Golfsmith Delaware,      Golfsmith                          1% general          100%
L.L.C.                   International, L.P.                partnership
</TABLE>
<PAGE>
                                   SCHEDULE II

Item A: Locations of Each Grantor

<TABLE>
<S>                                             <C>
Golfsmith International, Inc.                   Delaware

Golfsmith GP Holdings, Inc.                     Delaware

Golfsmith Holdings, L.P.                        Delaware

Golfsmith GP, L.L.C.                            Delaware

Golfsmith Delaware, L.L.C.                      Delaware

Golfsmith Canada, L.L.C.                        Delaware

Golfsmith Europe, L.L.C.                        Delaware

Golfsmith USA, L.L.C.                           Delaware

Golfsmith Licensing, L.L.C.                     Delaware

Golfsmith International, L.P.                   Delaware
</TABLE>

Item B: Filing Locations Prior to July 1, 2001

<TABLE>
<CAPTION>
          GRANTOR                     LOCATION
          -------                     --------
<S>                             <C>
Golfsmith International         did not exist
Holdings, Inc.

Golfsmith International, Inc.   Texas (Travis county)

Golfsmith GP Holdings, Inc.     Texas (Travis county)

Golfsmith Holdings, L.P.        Texas (Travis county)

Golfsmith GP, L.L.C.            Texas (Travis county)

Golfsmith Delaware, L.L.C.      Texas (Travis county)

Golfsmith Canada, L.L.C.        Texas (Travis county)

Golfsmith Europe, L.L.C.        Texas (Travis county)
</TABLE>
<PAGE>
<TABLE>
<S>                             <C>
Golfsmith USA, L.L.C.           Texas (Travis county), Arizona,
                                Colorado, Illinois, Minnesota,
                                California

Golfsmith NU, L.L.C.            Texas (Travis county)
                                Pennsylvania (Allegheny county)
                                Georgia (Cobb and Gwinnett counties),
                                Ohio (Franklin county) Michigan,
                                New Jersey, New York

Golfsmith Licensing, L.L.C.     Texas (Travis county)

Golfsmith International, L.P.   Texas (Travis county), Georgia
                                (Fulton county)
</TABLE>

Item C: Trade Names

<TABLE>
<CAPTION>
       NAME OF ENTITY                 TRADE AND/OR OTHER NAME(S)
       --------------                 --------------------------
<S>                                <C>
Golfsmith International, L.P.      Golfsmith; Golfsmith Golf Center

Golfsmith USA, L.L.C.              Golfsmith; Golfsmith Golf Center

Golfsmith NU, L.L.C.               Golfsmith; Golfsmith Golf Center
</TABLE>

Item E: Taxpayer ID Numbers

<TABLE>
<CAPTION>
     GOLFSMITH ENTITY                 FEIN
     ----------------                 ----
<S>                                <C>
Golfsmith International               None
Holdings, Inc.

Golfsmith International, Inc.      22-1957337

Golfsmith GP Holdings, Inc.        74-2882421

Golfsmith Holdings, L.P.           74-2882420

Golfsmith GP, L.L.C.               74-2882412

Golfsmith Delaware, L.L.C.         74-2882419

Golfsmith Canada, L.L.C.           74-2882407
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
GOLFSMITH ENTITY                   FEIN

<S>                                <C>
Golfsmith Europe, L.L.C.           74-2882408

Golfsmith USA, L.L.C.              74-2882405

Golfsmith NU, L.L.C.               74-2882404

Golfsmith Licensing, L.L.C.           None

Golfsmith International, L.P.      74-2864257
</TABLE>

Item F: Government Contracts

None.

Item G: Deposit Accounts

<TABLE>
<CAPTION>
     BANK NAME             ACCOUNT DESCRIPTION          ACCOUNT NUMBER            ENTITY
     ---------             -------------------          --------------            ------
<S>                    <C>                              <C>               <C>
Wells Fargo            GE Capital - Revolver            4496864422        Golfsmith International, L.P.

Wells Fargo            Golfsmith Intl L.P. Payroll      4950025627        Golfsmith International L.P.

Wells Fargo            Insurance                        4496834631        Golfsmith International L.P.

Wells Fargo            Flexible Spending                4128656089        Golfsmith International L.P.

Bank One               Retail cash/check 11 ,18, 24     1115001207798     Golfsmith USA L.L.C

First Union            Retail cash/check 14, 23, 28     2000007704349     Golfsmith NU L.L.C

Huntington             Retail cash/check 17, 27, 31     01891811261       Golfsmith NU L.L.C

Royal Bank of          Petty Cash & Refunds for         1002690           Golfsmith Canada L.L.C
Canada                 Vancouver

Royal Bank of          Checking account for             1005693           Golfsmith Canada L.L.C
Canada                 payables

Royal Bank of          Deposit accounts for US          4003125           Golfsmith Canada L.L.C
Canada                 Payments

Royal Bank of          Visa & Mastercard Mail Order     1036177           Golfsmith Canada L.L.C
Canada

Royal Bank of          Canadian Payroll                 1036185           Golfsmith Canada L.L.C
Canada
</TABLE>
<PAGE>
                                  SCHEDULE III

GOLFSMITH INTERNATIONAL, INC. IS THE RECORD OWNER OF ALL INTELLECTUAL
PROPERTY; THEY ARE THE GRANTOR OF ALL SECURITY INTEREST IN THE INTELLECTUAL
PROPERTY.

Item A. Patents

                               ISSUED U.S. PATENTS

<TABLE>
<CAPTION>
TAB        NUMBER        DATE             ISSUE TITLE                  PATENT HOLDER
---        ------        ----             -----------                  -------------
<S>      <C>           <C>           <C>                         <C>
 1        D349,142      7/26/94      Golf Club Putter Head       Union Planters Bank/Lynx
                                                                        Golf, Inc.

 2       4,883,275     11/28/89       Golf Club Iron Head        Union Planters Bank/Lynx
                                                                        Golf, Inc.

 3        D376,399     10/10/96         Golf Club Head           Union Planters Bank/Lynx
                                                                        Golf, Inc.

 4        D365,445     12/26/95          Golf Club Bag           Union Planters Bank/Lynx
                                                                        Golf, Inc.

 5        D307,455      4/24/90      Golf Club Putter Head       Union Planters Bank/Lynx
                                                                        Golf, Inc

 6        D300,546      4/4/89          Golf Club Head              Union Planters Bank

 7        D299,563      1/24/89           Golf Glove                  Lynx Golf, Inc.

 8        D350,581      9/13/94      Golf Club Putter Head            Lynx Golf, Inc.

 9        D350,583      9/13/94      Golf Club Putter Head       Union Planters Bank/Lynx
                                                                         Golf, Inc

10        D307,617      5/1/90         Golf Putter Head          Union Planters Bank/Lynx
                                                                         Golf, Inc

11        D371,640      7/9/96        Golf Club having a         Union Planters Bank/Lynx
                                       reinforced thumb                  Golf, Inc
                                            portion
12        D326,885      6/9/92         Golf Putter Head           Custom Golf Clubs, Inc.

13       5,839,975     11/24/98      Arch Reinforced Golf          Black Rock Golf Corp.
                                     Club Head (Killer Bee)
</TABLE>

No pending patent applications and no applications in preparation
<PAGE>
Item B. Patent Licenses

                           PATENT LICENSES

<TABLE>
<CAPTION>
TAB        LICENSOR           LICENSEE           PATENT            DATE
---        --------           --------           ------            ----
<S>     <C>               <C>                    <C>          <C>
 1      Richard Weiss     Golfsmith Int'l,        N/A         4/24/00 amended
                                Inc.                              6/11/01

 2      Richard Weiss     Golfsmith Int'l,        N/A         6/30/99 amended
                                Inc.                              6/11/01
</TABLE>
<PAGE>
                                   SCHEDULE IV

Item A. Trademarks

                             TRADEMARK REGISTRATIONS

<TABLE>
<CAPTION>
TAB             TRADEMARK             NUMBER     REGISTRATION DATE     COUNTRY
---             ---------             ------     -----------------     -------
<S>      <C>                       <C>           <C>               <C>
 1              GOLFSMITH            1523640          5/31/94         Argentina

 2              BLACKCAT              651600          9/25/95         Australia

 3             CRYSTAL CAT            789998          3/31/99         Australia

 4       DESIGN/DEVICE/LOGO (CAT      794118          5/13/99         Australia
            HEAD OLD DESIGN)

 5              GOLFSMITH            A498532         10/31/88         Australia

 6        KILLER BEE (& DESIGN)       717222          9/11/96         Australia

 7                LYNX                591604          12/2/92         Australia

 8              PARALLAX              792092          4/22/99         Australia

 9              PREDATOR              432300          8/27/85         Australia

10        SNAKE EYES (& DESIGN)       742649          8/29/97         Australia

11               TIGRESS              792086          4/22/99         Australia

12       DESIGN/DEVICE/LOGO (CAT      156622         11/17/94       Austria (CTM)
            HEAD OLD DESIGN)

13              GOLFSMITH             131757          7/31/90       Austria (CTM)

14                LYNX                156995          3/2/95        Austria (CTM)

15         DESIGN/DEVICE/LOGO         669785          8/27/99       Benelux (CTM)
              (SNAKE EYES)

16       DESIGN/DEVICE/LOGO (CAT      560449         11/17/94       Benelux (CTM)
            HEAD OLD DESIGN)

17              GOLFSMITH             453336         10/26/98       Benelux (CTM)

18                LYNX                559478         11/17/94       Benelux (CTM)

19       LYNX & DESIGN (CAT HEAD      544664          1/27/94       Benelux (CTM)
               OLD DESIGN)

20              PREDATOR              411779          8/26/95       Benelux (CTM)

21             SNAKE EYES             669786          8/27/99       Benelux (CTM)

22              BLACK CAT           TMA 463563        9/20/96           Canada

23             CRYSTAL CAT          TMA 540834        2/6/01            Canada

24         DESIGN/DEVICE/LOGO         543000          3/23/01           Canada
              (SNAKE EYES)

25       DESIGN/DEVICE/LOGO (CAT    TMA 363650       11/17/89           Canada
            HEAD OLD DESIGN)

26              ELEGANCE            TMA 242377        4/3/80            Canada

27              GOLFSMITH             350081          1/20/89           Canada

28             KILLER BEE           TMA 504269       11/18/98           Canada

29        KILLER BEE (& DESIGN)     TMA 504268       11/18/98           Canada

30               LIBERTY            TMA 337999        3/11/88           Canada

31                LYNX              TMA 388111        8/23/91           Canada

32           LYNX (STYLIZED)        TMA 455121        3/15/96           Canada

33             LYNX MASTER          TMA 242375        4/3/80            Canada

34              PARALLAX            TMA 326329        4/16/87           Canada

35              PREDATOR            TMA 231907        2/23/79           Canada
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAB             TRADEMARK             NUMBER     REGISTRATION DATE     COUNTRY
---             ---------             ------     -----------------     -------
<S>      <C>                      <C>            <C>               <C>
36               PROWLER            TMA 242374        4/30/80           Canada

37               TIGRESS            TMA 242376        4/3/80            Canada

38             CRYSTAL CAT           1428984          8/7/00         China (PRC)

39         DESIGN/DEVICE/LOGO        1453154          10/7/00        China (PRC)
              (SNAKE EYES)

40         DESIGN/DEVICE/LOGO        1444251          9/14/00        China (PRC)
              (SNAKE EYES)

41       DESIGN/DEVICE/LOGO (CAT     1428987          8/7/00         China (PRC)
            HEAD OLD DESIGN)

42              GOLFSMITH            1422921          7/21/00        China (PRC)

43        KILLER BEE (& DESIGN)      1473130         11/14/00        China (PRC)

44                LYNX               1573138          5/21/01        China (PRC)

45               PROWLER             1509058          1/21/01        China (PRC)

46             SNAKE EYES            1453221          10/7/00        China (PRC)

47             SNAKE EYES            1453148          10/7/00        China (PRC)

48        SNAKE EYES (& DESIGN)      1457186         10/14/00        China (PRC)

49        SNAKE EYES (& DESIGN)      1461381         10/21/00        China (PRC)

50              GOLFSMITH             126691          3/1/91           Denmark

51              PREDATOR          VR 05045 1990       7/27/90          Denmark

52              BLACK CAT             230433         11/27/98          European
                                                                    Community (CTM)

53         DESIGN/DEVICE/LOGO        1220318          8/16/00          European
              (SNAKE EYES)                                          Community (CTM)

54       DESIGN/DEVICE/LOGO (CAT      242131          4/21/99          European
            HEAD OLD DESIGN)                                        Community (CTM)

55              GOLFSMITH            1118579          7/23/01          European
                                                                    Community (CTM)

56                LYNX                230391          5/17/99          European
                                                                    Community (CTM)

57           LYNX (STYLIZED)          807156          8/17/00          European
                                                                    Community (CTM)

58             LYNXMASTER             230300          3/10/99          European
                                                                    Community (CTM)

59              PARALLAX              230284         11/27/98          European
                                                                    Community (CTM)

60              PREDATOR              230276         11/27/98          European
                                                                    Community (CTM)

61               PROWLER              230268         11/27/98          European
                                                                    Community (CTM)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAB             TRADEMARK             NUMBER     REGISTRATION DATE     COUNTRY
---             ---------             ------     -----------------     -------
<S>     <C>                        <C>           <C>               <C>
62             SILVER CAT             637975          6/1/99           European
                                                                    Community (CTM)

63             SNAKE EYES            1219914          8/16/00          European
                                                                    Community (CTM)

64        SNAKE EYES (& DESIGN)      1220136          8/16/00          European
                                                                    Community (CTM)

65               STINGER             1553411          7/23/01          European
                                                                    Community (CTM)

66              GOLFSMITH             114100          9/20/91          Finland

67      DESIGN/DEVICE/LOGO (LYNX)   94 544989        11/17/94        France (CTM)

68                LYNX              95 552144         1/4/95         France (CTM)

69              GOLFSMITH            1496561          11/2/88        France (CTM)

70              PREDATOR             1321090          8/26/85        France (CTM)

71              BLACK CAT            39508343         3/4/96        Germany (CTM)

72      DESIGN/DEVICE/LOGO (LYNX)    39402823         5/8/95        Germany (CTM)

73              GOLFSMITH            1167989         11/15/90       Germany (CTM)

74              PREDATOR             1089377          3/20/86       Germany (CTM)

75              BLACK CAT           7895/1996         9/26/94         Hong Kong

76         DESIGN/DEVICE/LOGO       11647/2000        2/18/00         Hong Kong
              (SNAKE EYES)

77         DESIGN/DEVICE/LOGO       7433/2000         5/24/00         Hong Kong
              (SNAKE EYES)

78       DESIGN/DEVICE/LOGO (CAT    12785/2000        3/2/00          Hong Kong
            HEAD OLD DESIGN)

79              GOLFSMITH          B06793/1996       10/26/93         Hong Kong

80        KILLER BEE (& DESIGN)     03800/1998        9/10/96         Hong Kong

81                LYNX              7204/2000         3/20/00         Hong Kong

82                LYNX              1279/1984         1/20/83         Hong Kong

83           LYNX (STYLIZED)        1117/1982         1/3/81          Hong Kong

84             SNAKE EYES           9472/2000        10/11/99         Hong Kong

85             SNAKE EYES           9471/2000        10/11/99         Hong Kong

86       DESIGN/DEVICE/LOGO (CAT      470300          3/17/01         Indonesia
                  HEAD)

87       DESIGN/DEVICE/LOGO (CAT      470629          3/28/01         Indonesia
                  HEAD)

88              GOLFSMITH             330747          4/4/95          Indonesia

89        KILLER BEE (& DESIGN)       399550         10/15/97         Indonesia

90      DESIGN/DEVICE/LOGO (LYNX)     166007         11/14/94          Ireland
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAB             TRADEMARK             NUMBER     REGISTRATION DATE     COUNTRY
---             ---------             ------     -----------------     -------
<S>      <C>                       <C>           <C>               <C>
91                LYNX                128922          9/23/88          Ireland

92              PARALLAX              128924          9/23/88          Ireland

93              PREDATOR              128923          9/23/88          Ireland

94       DESIGN/DEVICE/LOGO (CAT      691055         10/21/96        Italy (CTM)
               HEAD LOGO)

95              GOLFSMITH             551091         10/15/91        Italy (CTM)

96                LYNX                691056         12/21/96        Italy (CTM)

97              BOOM BOOM            2649495          4/28/94           Japan

98         DESIGN/DEVICE/LOGO        3351681         10/17/97           Japan
              (SNAKE EYES)

99         DESIGN/DEVICE/LOGO        4516751          4/19/02           Japan
              (SNAKE EYES)

100             GOLFSMITH            2173071          9/29/89           Japan

101             GOLFSMITH            4335252         11/12/99           Japan

102      DESIGN/DEVICE/LOGO (CAT      475359          8/18/00        South Korea
            HEAD OLD DESIGN)

103             GOLFSMITH             189342          3/9/90         South Korea

104        KILLER BEE & DESIGN        394831          2/9/98         South Korea

105               LYNX                298229          9/18/94        South Korea

106               LYNX                300891         10/27/94        South Korea

107               LYNX                314142          5/25/95        South Korea

108               LYNX                345230          8/9/96         South Korea

109       LYNX (& DESIGN) (CAT        71888           9/18/00        South Korea
                  HEAD)

110       SNAKE EYES (& DESIGN)       481416         11/16/00        South Korea

111               LYNX               85 05378         7/20/93         Malaysia

112             GOLFSMITH            4522750          2/21/94          Mexico

113        KILLER BEE & DESIGN        537660            N/A            Mexico

114               LYNX                103429          3/5/01         New Zealand

115       SNAKE EYES (& DESIGN)       317071          9/28/99        New Zealand

116       SNAKE EYES (& DESIGN)       311863          6/28/99        New Zealand

117             GOLFSMITH             188587          11/2/88        New Zealand

118      DESIGN/DEVICE/LOGO (CAT      141621          6/7/90           Norway
                  HEAD)

119             GOLFSMITH             146182          7/25/91          Norway

120             PREDATOR              141622          6/7/00           Norway

121          LYNX (STYLIZED)          158537          9/19/93          Norway

122             GOLFSMITH             62540           2/5/96        Philippines

123             GOLFSMITH             259976          9/10/93      Portugal (CTM)

124               LYNX                305584         10/10/95      Portugal (CTM)

125      DESIGN/DEVICE/LOGO (CAT    T99/11246C        7/10/99        Singapore
                  HEAD)

126      DESIGN/DEVICE/LOGO (CAT    T95/03868D          N/A          Singapore
            HEAD OLD DESIGN)

127      DESIGN/DEVICE/LOGO (CAT    T99/11247A        10/7/99        Singapore
                  HEAD)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAB             TRADEMARK             NUMBER     REGISTRATION DATE     COUNTRY
---             ---------             ------     -----------------     -------
<S>     <C>                       <C>            <C>               <C>
128             GOLFSMITH             17193          11/11/93        Singapore

129       KILLER BEE (& DESIGN)      9356 96          9/2/96         Singapore

130               LYNX              T8300911J         2/21/94        Singapore

131               LYNX              T7461822C         8/29/95        Singapore

132       SNAKE EYES (& DESIGN)    T99/08501 F        10/8/99        Singapore

133             GOLFSMITH            92 6769          8/12/92       South Africa

134       KILLER BEE (& DESIGN)      96 13143         9/17/96       South Africa

135      DESIGN/DEVICE/LOGO (CAT     1931294          6/5/95           Spain
            HEAD OLD DESIGN)

136             GOLFSMITH            1282341          3/20/91          Spain

137             GOLFSMITH             219470         11/23/90       Sweden (CTM)

138             PREDATOR              201125          5/7/86        Sweden (CTM)

139     DESIGN/DEVICE/LOGO (LYNX)     426459          11/1/94       Switzerland

140             GOLFSMITH             219470         11/23/90       Switzerland

141       KILLER BEE (& DESIGN)       440053          8/6/96        Switzerland

142               LYNX                427932         11/29/94       Switzerland

143             BLACK CAT             695184          11/1/95       Taiwan (ROC)

144            CRYSTAL CAT            886742          3/16/00       Taiwan (ROC)

145        DESIGN/DEVICE/LOGO         914749         11/16/00       Taiwan (ROC)
              (SNAKE EYES)

146        DESIGN/DEVICE/LOGO         917686          12/1/00       Taiwan (ROC)
              (SNAKE EYES)

147      DESIGN/DEVICE/LOGO (CAT      427703          1/16/89       Taiwan (ROC)
            HEAD OLD DESIGN)

148      DESIGN/DEVICE/LOGO (CAT      468188          12/1/89       Taiwan (ROC)
            HEAD OLD DESIGN)

149      DESIGN/DEVICE/LOGO (CAT      471252          1/1/90        Taiwan (ROC)
            HEAD OLD DESIGN)

150      DESIGN/DEVICE/LOGO (CAT      477066          3/1/90        Taiwan (ROC)
            HEAD OLD DESIGN)

151      DESIGN/DEVICE/LOGO (CAT      474125          2/1/90        Taiwan (ROC)
            HEAD OLD DESIGN)

152      DESIGN/DEVICE/LOGO (CAT      493117          8/1/90        Taiwan (ROC)
            HEAD OLD DESIGN)

153             GOLFSMITH             476096          2/16/90       Taiwan (ROC)

154             GOLFSMITH             947060          6/16/01       Taiwan (ROC)

155            KILLER BEE             886741          3/16/00       Taiwan (ROC)

156              LIBERTY              334375          7/31/96       Taiwan (ROC)

157               LYNX                377128          9/16/87       Taiwan (ROC)

158               LYNX                955979          8/16/01       Taiwan (ROC)

159          LYNX (STYLIZED)          350551         12/16/87       Taiwan (ROC)

160          LYNX (STYLIZED)          348027          12/1/86       Taiwan (ROC)

161          LYNX (STYLIZED)          468187          12/1/89       Taiwan (ROC)

162          LYNX (STYLIZED)          475705          2/16/90       Taiwan (ROC)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAB             TRADEMARK             NUMBER     REGISTRATION DATE     COUNTRY
---             ---------             ------     -----------------     -------
<S>     <C>                        <C>           <C>               <C>
163          LYNX (STYLIZED)          442679          5/16/89       Taiwan (ROC)

164          LYNX (STYLIZED)          474124          2/1/90        Taiwan (ROC)

165          LYNX (STYLIZED)          500379          10/1/90       Taiwan (ROC)

166     LYNX (STYLIZED) & DESIGN      82307           6/1/76        Taiwan (ROC)
           (CAT HEAD DETAILED)

167             PARALLAX              324686          5/1/86        Taiwan (ROC)

168             PREDATOR              331137          6/29/96       Taiwan (ROC)

169              PROWLER              910372         10/16/00       Taiwan (ROC)

170            SNAKE EYES             917687          12/1/00       Taiwan (ROC)

171            SNAKE EYES             774546          8/30/97       Taiwan (ROC)

172            TEXAS WEDGE            476097          2/16/90       Taiwan (ROC)

173              TIGRESS              889987          4/16/00       Taiwan (ROC)

174      DESIGN/DEVICE/LOGO (CAT     TM124296        11/24/00         Thailand
                  HEAD)

175      DESIGN/DEVICE/LOGO (CAT    TM 102725        11/30/99         Thailand
            HEAD OLD DESIGN)       131656 (old)

176      DESIGN/DEVICE/LOGO (CAT    TM 125404         1/3/01          Thailand
              HEAD DESIGN)

177             GOLFSMITH          132815 (old)       3/15/89         Thailand

178       KILLER BEE (& DESIGN)      TM 69585         7/12/00         Thailand

179               LYNX                78858           10/1/98         Thailand

180               LYNX                74487           8/7/91          Thailand

181               LYNX               TM 18364         9/25/94         Thailand

182          LYNX (STYLIZED)        TM 103335         5/12/89         Thailand
                                   138891 (old)

183             PREDATOR            TM 103337         5/8/89          Thailand
                                   133210 (old)

184             BLACK CAT            2008686          8/30/96          United
                                                                    Kingdom (CTM)

185      DESIGN/DEVICE/LOGO (CAT     1536846          6/10/94          United
                  HEAD)                                             Kingdom (CTM)

186             GOLFSMITH            B1361988        10/27/88          United
                                                                    Kingdom (CTM)

187              LIBERTY             1255176         11/26/85          United
                                                                    Kingdom (CTM)

188               LYNX               1211627          1/27/84          United
                                                                    Kingdom (CTM)

189               LYNX               1211626          1/27/84          United
                                                                    Kingdom (CTM)

190             PARALLAX             1255177         11/26/85          United
                                                                    Kingdom (CTM)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAB             TRADEMARK             NUMBER     REGISTRATION DATE     COUNTRY
---             ---------             ------     -----------------     -------
<S>     <C>                        <C>           <C>               <C>
191             PREDATOR             1092683          3/16/99          United
                                                                    Kingdom (CTM)

192            SNAKE EYES            2040290          7/26/96          United
                                                                    Kingdom (CTM)

193             ACCUCORE            2,125,496        12/30/97       United States

194             BACKFLOW            2,121,599        12/16/97       United States

195      BECAUSE IT'S MORE THAN     1,903,655         7/4/95        United States
               JUST A GAME

196            BIMETALLIC           2,125,480        12/30/97       United States

197             BLACK CAT           1,983,048         6/25/96       United States

198            BLACK HAWK           2,152,015         4/21/98       United States

199            BLACKSMITH           2,125,856        12/30/97       United States

200              BOBTAIL            1,126,412        10/30/79       United States

201           BRASS MASTER          2,248,524         6/1/99        United States

202        BULL WHIP SHAFT (&       2,140,571         3/3/98        United States
                 DESIGN)

203           CARBON STICK          2,190,347         9/22/98       United States

204            CARBON TOUR          2,253,665         6/15/99       United States

205              COMFORT            2,389,096         9/28/00       United States

206          COPPER CLASSIC         2,204,865        11/24/98       United States

207            CRYSTAL CAT          2,453,296         5/22/01       United States

208     CUSTOM MADE WEDGE SYSTEM    2,238,074         4/13/99       United States

209             DEAD STOP           2,139,044         2/24/98       United States

210        DESIGN/DEVICE/LOGO       2,065,242         5/27/97       United States
            (BLACK CAT HEAD)

211      DESIGN/DEVICE/LOGO (CAT    1,518,085        12/27/88       United States
            HEAD OLD DESIGN)

212      DESIGN/DEVICE/LOGO (CAT    1,518,125        12/27/88       United States
            HEAD OLD DESIGN)

213         DESIGNATED DRIVER       2,121,890        12/16/97       United States

214              EASY ON            1,434,797         3/31/87       United States

215            FIBER STAR           2,193,255         10/6/98       United States

216             FIRE STAR           2,130,690         1/20/98       United States

217             GOLFSMITH           1,447,761         7/14/87       United States

218          GRAND TITANIUM         2,266,938         8/3/99        United States

219             GREY HAWK           2,125,678        12/30/97       United States

220             INTERFACE           2,129,126         1/13/98       United States

221             JETSTREAM           2,124,015        12/23/97       United States

222            KILLER BEE           1,966,455         4/9/96        United States

223       KILLER BEE (& DESIGN)     1,997,989         9/3/96        United States

224             LADY HAWK           2,144,570         3/17/98       United States

225           LADY STERLING         2,144,569         3/17/98       United States
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TAB             TRADEMARK             NUMBER     REGISTRATION DATE     COUNTRY
---             ---------             ------     -----------------     -------
<S>     <C>                        <C>           <C>               <C>
226              LIBERTY            1,416,763        11/11/86       United States

227             LONG JON            2,325,087         3/7/00        United States

228               LYNX              1,446,493         7/7/87        United States

229               LYNX               943,571          9/26/72       United States

230               LYNX                53115             N/A         United States
                                                                      California

231               LYNX                53116             N/A         United States
                                                                      California

232            NIGHT HAWK           2,124,013        12/23/97       United States

233            O/S PROJECT          2,140,897         3/31/98       United States

234             PARALLAX            1,399,697         7/1/86        United States

235             PATHMARK            2,132,755         1/27/98       United States

236              PATRIOT            1,399,698         7/1/86        United States

237                PAW              2,013,921         11/5/96       United States

238            POINT BLANK          2,124,012        12/23/97       United States

239             POSITRAC            2,125,832        12/30/97       United States

240            POWER TAPER          1,984,104         7/2/96        United States

241             PREDATOR            1,351,870         7/30/95       United States

242           PURE BALANCE          2,140,899         3/3/98        United States

243            ROUGH RIDER          2,258,083         6/29/99       United States

244          SEASONED PLAYER        2,129,129         1/13/98       United States

245         SHORT GAME SYSTEM       2,392,567        10/20/00       United States

246            SIGHT LINE           2,129,130         1/13/98       United States

247            SILVERSMITH          2,121,889        12/16/97       United States

248           SINGLE STROKE         2,193,256         10/6/98       United States

249       SNAKE EYES (& DESIGN)     1,889,946         4/18/95       United States

250            SOFT STROKE          2,129,128         1/13/98       United States

251            SONIC BOOM           2,156,583         5/12/98       United States

252              SONORA             2,301,230        12/21/99       United States

253          SONORA GOLF CO.        1,987,306         7/16/96       United States

254           SPECIAL FORCE         2,129,132         1/13/98       United States

255            SPEED BUMPS          2,124,011        12/23/97       United States

256             STERLING            2,129,131         1/13/98       United States

257              STINGER            2,374,557         8/8/00        United States

258            STOP ACTION          2,129,133         1/13/98       United States

259             SUNDANCE            2,129,127         1/13/98       United States

260            SUPER TRACK          2,249,691         6/1/99        United States

261           TEXAS CLASSIC         2,190,501         9/22/98       United States

262            TEXAS WEDGE          2,047,644         3/25/97       United States

263              TIGRESS            1,356,970         8/27/85       United States

264            TOUR CAVITY          2,255,633         6/22/99       United States

265             TOUR TECH           2,140,901         3/3/98        United States

266             TRI-RAIL            2,129,134         1/13/98       United States

267            WEED CUTTER          2,124,014        12/23/97       United States

268                XPC              1,274,437         4/17/84       United States
</TABLE>
<PAGE>
                             TRADEMARK APPLICATIONS

<TABLE>
<CAPTION>
                                    APPLICATION        DATE OF
TAB            TRADEMARK               NUMBER        APPLICATION         COUNTRY
---            ---------               ------        -----------         -------
<S>     <C>                        <C>               <C>              <C>
 1               LYNX                  879682          6/19/01           Australia

 2            SNAKE EYES               1020587         6/28/99            Canada

 3       SNAKE EYES (& DESIGN)         1020586         6/28/99            Canada

 4      DESIGN/DEVICE/LOGO (CAT       200190356        12/6/00             China
                 HEAD)

 5             GOLFSMITH             9900032476         4/2/99             China

 6               LYNX                9900098601        8/25/99             China

 7               LYNX                9900053811        5/17/99             China

 8            CRYSTAL CAT              806877          4/17/98           European
                                                                       Community (CTM)

 9             GOLFSMITH               610484          10/27/93            India

10            SNAKE EYES             88204/1999        10/4/99             Japan

11               LYNX                 93 08614         10/28/93          Malaysia

12       SNAKE EYES (& DESIGN)        99 10290         10/15/99          Malaysia

13            KILLER BEE               116020          12/3/96          Philippines

14               LYNX               4 1999 07528       10/1/99          Philippines

15       SNAKE EYES (& DESIGN)      4 1999 06367       8/26/99          Philippines

16             BLACK CAT              95 00630         1/20/95         South Africa

17      DESIGN/DEVICE/LOGO (CAT       99/19087         10/15/90        South Africa
                 HEAD)

18               LYNX                 99/19085         10/15/99        South Africa

19       SNAKE EYES (& DESIGN)        99/19086         10/15/99        South Africa

20              TIGRESS               91/19086         4/23/91         South Africa

21       SNAKE EYES (& DESIGN)        90041243         10/5/01         Taiwan (ROC)

22        BLACK ROCK & DESIGN        75/233,850        1/30/97         United States

23            FIRE FORGED            76/181,735        12/12/00        United States

25           QUICK STRIKE            76/105,038         8/8/00         United States

26            TOUR STEEL             76/181,734        12/12/00        United States
</TABLE>

<PAGE>

Item B. Trademark Licenses

                               TRADEMARK LICENSES

<TABLE>
<CAPTION>
  TAB              LICENSOR                      LICENSEE                     TRADEMARK                 DATE
  ---              --------                      --------                     ---------                 ----
<S>       <C>                           <C>                         <C>                              <C>
   1         Golfsmith Int'l, L.P.         Bali Leathers, Inc.         LYNX, Cat Head Design,          9/1/01
                                                                       SNAKE EYES, Snake Eyes
                                                                        Design, SNAKE EYES &
                                                                       Design, & KILLER BEE &
                                                                               Design,

   2         Golfsmith Int'l, L.P.       Golf Gear Australia Pty.     SNAKE EYES, SNAKE EYES &         5/1/01
                                                   Ltd.              DESIGN & Snake Eyes Design

   3         Golfsmith Int'l, L.P.       Golf Gear Australia Pty.      Cat Head Design & LYNX          5/1/01
                                                   Ltd.                      trademarks

   4         Golfsmith Int'l, L.P.           Hwa Kyung, Inc.            Cathead Design & LYNX          1/1/01
                                                                             trademarks

   5         Golfsmith Int'l, L.P.       Mascot Leisure Business       Design/Device/Logo (Cat         9/1/00
                                                  Corp.                   Head), LYNX, LYNX
                                                                      (Stylized), & LYNX, LYNX
                                                                      (Stylized) & Design (Cat
                                                                           Head Detailed)

   6         Golfsmith Int'l, L.P.          Korea Golf Academy                GOLFSMITH                1/1/02

   7         Golfsmith Int'l, L.P.         Sumikin Bussan Corp.        Design/Device/Logo (Cat         3/1/00
                                                                      Eye), Design/Device/Logo
                                                                        (Cat Head), LYNX (New
                                                                       Font), LYNX (Stylized),
                                                                         LYNX (with Japanese
                                                                     Characters), LYNX & Design
                                                                      (Cat Eye), & LYNX Golf &
                                                                          Design (Cat Eye)

   8         Golfsmith Int'l, L.P.           Earl Weiss d/b/a                  STINGER                 6/1/00
                                          Performance Golf, Inc.

   9         Golfsmith Int'l, L.P.           Pro Select, Inc.                  TI CAT                  7/9/02

   10        Golfsmith Int'l, L.P            Cobra Golf, Inc.                BIMETALLIC                1/1/99

   11        Golfsmith Int'l, L.P                TTHGOLF                  "Marks & Images"            2/22/02

   12        Spalding Sports               Golfsmith Int'l, L.P.           SPALDING & Star,            3/1/02
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
  TAB              LICENSOR                      LICENSEE                     TRADEMARK                 DATE
  ---              --------                      --------                     ---------                 ----
<S>       <C>                          <C>                         <C>                              <C>
           Worldwide, Inc.                                          ASCENT, BIRDIE, BIRD ON BALL
                                                                      & Design, CASH-IN, EPIC,
                                                                         LEGACY, PRO IMPACT,
                                                                       PULSAR, TEE-FLITE, TOUR
                                                                         1000, TOUR IMPACT &
                                                                             SYCHRODYNE

   13     Spalding Sports Worldwide,      Golfsmith Int'l, L.P.       SPALDING & Star, ASCENT,         3/1/02
                     Inc.                                              BIRDIE, BIRD ON BALL &
                                                                       Design, CASH-IN, EPIC,
                                                                     LEGACY, PRO IMPACT, PUSAR,
                                                                     TEE-FLITE, TOUR 1000, TOUR
                                                                         IMPACT & SYCHRODYNE
   14

   15         The Boeing Company          Golfsmith Int'l, L.P.                  747                   7/1/92

   16          T.H. Penick, Inc.          Golfsmith Int'l, L.P.             HARVEY PENICK              7/1/95

   17          T.H. Penick, Inc.          Golfsmith Int'l, L.P.             HARVEY PENICK              1/1/00

   18          T.H. Penick, Inc.          Golfsmith Int'l, L.P.             HARVEY PENICK              1/1/00

   19     Dunlop Slazenger Int'l Ltd.     Golfsmith Int'l, L.P.               JETSTREAM               11/25/96

   20         Ski Dynastar, Inc.          Golfsmith Int'l, L.P.               ELASTEEL                6/10/99

   21             Winn, Inc.              Golfsmith Int'l, L.P.                CONTOUR                 1/1/00
</TABLE>

                                  DOMAIN NAMES

<TABLE>
<CAPTION>
     TAB                DOMAIN NAME                          OWNER                    REG. DATE         EXP. DATE
<S>                 <C>                          <C>                                 <C>               <C>
      1                golfsmith.biz             Golfsmith International, Inc.         12/14/01          12/14/03

      2                golfsmith.com             Golfsmith International, Inc.         4/26/95           4/27/03

      3               golfsmith.info             Golfsmith International, Inc.         10/31/01          10/31/03

      4                golfsmith.us              Golfsmith International, Inc.          5/3/02           5/24/04

      5              harveypenick.com            Golfsmith International, Inc.          2/8/99            2/8/03

      6                lynxgolf.com                     Golfsmith, Inc.                10/22/99          10/22/10
</TABLE>

                                      -2-
<PAGE>
                                   SCHEDULE V

No copyrights registered or pending

                                      -3-
<PAGE>
                                   SCHEDULE VI

No trade secret or know-how licenses

                                      -4-
<PAGE>
                                                                       EXHIBIT A
                                                           to Security Agreement

                           PATENT SECURITY AGREEMENT

      This PATENT SECURITY AGREEMENT (this "Agreement"), dated as of __________
__, ____, is made between ___________________, a ____________ (the "Grantor"),
and U.S. BANK TRUST NATIONAL ASSOCIATION, as collateral agent (together with its
successor(s) thereto in such capacity, the "Collateral Agent") for each of the
Secured Parties;

                              W I T N E S S E T H :

      WHEREAS, Golfsmith International, Inc., a Delaware corporation (the
"Company"), the Subsidiaries of the Company and the Collateral Agent, as
trustee, have entered into an Indenture, dated as of October 15, 2002 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "Indenture"), and in connection therewith, the Company has issued (the
"Notes Issuance") its Senior Secured Notes due 2009 (and its Senior Secured
Notes due 2009, Series B to be issued in exchange therefor) (collectively, the
"Notes");

      WHEREAS, various financial institutions, as lenders (the "Lenders"),
General Electric Capital Corporation, a Delaware corporation, as agent on behalf
of the Lenders (in such capacity, the "Lender Agent"), and the Grantor and
certain of its Affiliates have entered into that certain Credit Agreement, dated
as of October 15, 2002 (the "Credit Agreement"), pursuant to which the Lenders
have agreed to make certain loans and other financial accommodations from time
to time to the Borrowers (as defined therein) and the Grantor and such
Affiliates have entered into Collateral Agreements (as defined therein) with the
Lender Agent as well;

      WHEREAS, the Collateral Agent, the Lender Agent and the Grantors have
entered into that certain Intercreditor Agreement, dated as of October 15, 2002
(such intercreditor agreement is the Intercreditor Agreement referred to and
defined in the Indenture, and as used herein, the term "Intercreditor Agreement"
has the meaning ascribed thereto in the Indenture), pursuant to which, among
other things, (a) the Lender Agent is recognized as having a first priority
interest in all of the Collateral (as defined in the Collateral Agreements)
(other than real property, Equipment and proceeds thereof) for the benefit of
itself and the Lenders and (b) the Collateral Agent is recognized as having (i)
a second priority interest in all of the Collateral (as defined in the
Collateral Agreements) (other than real property, Equipment and proceeds
thereof) for the benefit of itself, the Trustee and the Holders and (ii) a first
priority interest in all of the Collateral (as defined in the Collateral
Agreements) constituting real property, Equipment and proceeds thereof for the
benefit of itself, the Trustee and the Holders;

      WHEREAS, in connection with the Indenture, the Grantor has executed and
delivered a Security Agreement, dated as of October 15, 2002 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
"Security Agreement");
<PAGE>
      WHEREAS, as a condition precedent to the Notes Issuance, the Grantor is
required to execute and deliver this Agreement and to grant to the Collateral
Agent a continuing security interest in all of the Patent Collateral (as defined
below) to secure all Secured Obligations;

      WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Agreement; and

      WHEREAS, it is in the best interests of each Grantor to execute this
Agreement inasmuch as such Grantor will derive substantial direct and indirect
benefits from proceeds of the Notes issued by the Company;

      NOW, THEREFORE, for good and valuable consideration, the receipt of which
is hereby acknowledged, and in order to induce the Holders to acquire the Notes
and maintain the Indebtedness evidenced thereby, the Grantor agrees, for the
benefit of each Secured Party, as follows:

      SECTION 1. Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Agreement, including its preamble and
recitals, have the meanings provided (or incorporated by reference) in the
Security Agreement.

      SECTION 2. Grant of Security Interest. For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, to
secure all of the Secured Obligations, the Grantor does hereby mortgage, pledge
and hypothecate to the Collateral Agent, and grant to the Collateral Agent a
security interest in, for its benefit and the benefit of each Secured Party, all
of the following property (the "Patent Collateral"), whether now owned or
hereafter acquired or existing by it:

            (a) all letters patent and applications for letters patent
      throughout the world, including all patent applications in preparation for
      filing anywhere in the world and including each patent and patent
      application referred to in Item A of Schedule III attached hereto;

            (b) all reissues, divisions, continuations, continuations-in-part,
      extensions, renewals and reexaminations of any of the items described in
      clause (a);

            (c) all patent licenses, including each patent license referred to
      in Item B of Schedule III attached hereto; and

            (d) all proceeds of, and rights associated with, the foregoing
      (including license royalties and proceeds of infringement suits), the
      right to sue third parties for past, present or future infringements of
      any patent or patent application, including any patent or patent
      application referred to in Item A of Schedule III attached hereto, and for
      breach or enforcement of any patent license, including any patent license
      referred to in Item B of Schedule III attached hereto, and all rights
      corresponding thereto throughout the world.

                                      -2-
<PAGE>
      SECTION 3. Security Agreement. This Agreement has been executed and
delivered by the Grantor for the purpose of registering the security interest of
the Collateral Agent in the Patent Collateral with the United States Patent and
Trademark Office and corresponding offices in other countries of the world. The
security interest granted hereby has been granted as a supplement to, and not in
limitation of, the security interest granted to the Collateral Agent for its
benefit and the benefit of each Secured Party under the Security Agreement. The
Security Agreement (and all rights and remedies of the Collateral Agent and each
Secured Party thereunder) shall remain in full force and effect in accordance
with its terms.

      SECTION 4. Release of Security Interest. Upon payment in full in cash of
all Secured Obligations, the Collateral Agent shall, at the Grantor's expense,
execute and deliver to the Grantor all instruments and other documents as may be
necessary or proper to release the lien on and security interest in the Patent
Collateral which has been granted hereunder.

      SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Collateral Agent with respect to the
security interest in the Patent Collateral granted hereby are more fully set
forth in the Security Agreement, the terms and provisions of which (including
the remedies provided for therein) are incorporated by reference herein as if
fully set forth herein.

      SECTION 6. Related Document, etc. This Agreement is a Related Document
executed pursuant to the Indenture and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions of the Indenture.

      SECTION 7. Counterparts. This Agreement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.

      SECTION 8. Subject to Intercreditor Agreement. NOTWITHSTANDING ANYTHING
HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE COLLATERAL
AGENT PURSUANT TO THIS AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE
COLLATERAL AGENT HEREUNDER, IN EACH CASE IN RESPECT OF ANY COLLATERAL
CONSTITUTING NOTEHOLDER COMMON COLLATERAL (AS DEFINED IN THE INTERCREDITOR
AGREEMENT DESCRIBED BELOW) ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR
AGREEMENT, DATED AS OF OCTOBER 15, 2002 (AS AMENDED, MODIFIED OR SUPPLEMENTED
FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") AMONG GENERAL ELECTRIC CAPITAL
CORPORATION AS SENIOR AGENT, AND U.S. BANK TRUST NATIONAL ASSOCIATION, AS
COLLATERAL AGENT, U.S. BANK TRUST NATIONAL ASSOCIATION, AS TRUSTEE, AND THE
OBLIGORS, INCLUDING THE GRANTORS HEREUNDER NAMED THEREIN. IN THE EVENT OF ANY
CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT,
THE TERMS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN.

                                      -3-
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the day and year first above written.

                                    [NAME OF GRANTOR], a ____________
                                      _____________

                                    By ____________________________________
                                       Name:
                                       Title:

                                    U.S. BANK TRUST NATIONAL ASSOCIATION,
                                       as Collateral Agent

                                    By ____________________________________
                                       Name:
                                       Title:

                                      -4-
<PAGE>
                                                                    SCHEDULE III
                                                    to Patent Security Agreement

Item A.  Patents

<TABLE>
<CAPTION>
                           Issued Patents
-------------------------------------------------------------------
*Country       Patent No.     Issue Date     Inventor(s)      Title
--------       ----------     ----------     -----------      -----
<S>            <C>            <C>            <C>              <C>

</TABLE>

<TABLE>
<CAPTION>
                    Pending Patent Applications
-------------------------------------------------------------------
*Country       Serial No.     Filing Date    Inventor(s)      Title
--------       ----------     -----------    -----------      -----
<S>            <C>            <C>            <C>              <C>

</TABLE>

<TABLE>
<CAPTION>
                 Patent Applications in Preparation
--------------------------------------------------------------------
                               Expected
*Country       Docket No.     Filing Date    Inventor(s)      Title
--------       ----------     -----------    -----------      -----
<S>            <C>            <C>            <C>              <C>

</TABLE>

Item B.  Patent Licenses

<TABLE>
<CAPTION>
*Country or                                Effective     Expiration    Subject
  Territory    Licensor       Licensee       Date           Date        Matter
  ---------    --------       --------       ----           ----        ------
<S>            <C>            <C>          <C>           <C>           <C>

</TABLE>

--------

* List items related to the United States first for ease of recordation. List
items related to other countries next, grouped by country and in alphabetical
order by country name.
<PAGE>
                                                                       EXHIBIT B
                                                           to Security Agreement

                          TRADEMARK SECURITY AGREEMENT

      This TRADEMARK SECURITY AGREEMENT (this "Agreement"), dated as of
__________ __, ____, is made between _____________________, a ___________
__________ (the "Grantor"), and U.S. BANK TRUST NATIONAL ASSOCIATION, as
collateral agent (together with its successor(s) thereto in such capacity, the
"Collateral Agent") for each of the Secured Parties;

                              W I T N E S S E T H :

      WHEREAS, Golfsmith International, Inc., a Delaware corporation (the
"Company"), the Subsidiaries of the Company and the Collateral Agent, as
trustee, have entered into an Indenture, dated as of October 15, 2002 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "Indenture"), and in connection therewith, the Company has issued (the
"Notes Issuance") its Senior Secured Notes due 2009 (and its Senior Secured
Notes due 2009, Series B to be issued in exchange therefor) (collectively, the
"Notes");

      WHEREAS, various financial institutions, as lenders (the "Lenders"),
General Electric Capital Corporation, a Delaware corporation, as agent on behalf
of the Lenders (in such capacity, the "Lender Agent"), and the Grantor and
certain of its Affiliates have entered into that certain Credit Agreement, dated
as of October 15, 2002 (the "Credit Agreement"), pursuant to which the Lenders
have agreed to make certain loans and other financial accommodations from time
to time to the Borrowers (as defined therein) and the Grantor and such
Affiliates have entered into Collateral Agreements (as defined therein) with the
Lender Agent as well;

      WHEREAS, the Collateral Agent, the Lender Agent and the Grantors have
entered into that certain Intercreditor Agreement, dated as of October 15, 2002
(such intercreditor agreement is the Intercreditor Agreement referred to and
defined in the Indenture, and as used herein, the term "Intercreditor Agreement"
has the meaning ascribed thereto in the Indenture), pursuant to which, among
other things, (a) the Lender Agent is recognized as having a first priority
interest in all of the Collateral (as defined in the Collateral Agreements)
(other than real property, Equipment and proceeds thereof) for the benefit of
itself and the Lenders and (b) the Collateral Agent is recognized as having (i)
a second priority interest in all of the Collateral (as defined in the
Collateral Agreements) (other than real property, Equipment and proceeds
thereof) for the benefit of itself, the Trustee and the Holders and (ii) a first
priority interest in all of the Collateral (as defined in the Collateral
Agreements) constituting real property, Equipment and proceeds thereof for the
benefit of itself, the Trustee and the Holders;
<PAGE>
      WHEREAS, in connection with the Indenture, the Grantor has executed and
delivered a Security Agreement, dated as of October 15, 2002 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
"Security Agreement");

      WHEREAS, as a condition precedent to the Notes Issuance, the Grantor is
required to execute and deliver this Agreement and to grant to the Collateral
Agent a continuing security interest in all of the Trademark Collateral (as
defined below) to secure all Secured Obligations;

      WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Agreement; and

      WHEREAS, it is in the best interests of each Grantor to execute this
Agreement inasmuch as such Grantor will derive substantial direct and indirect
benefits from proceeds of the Notes issued by the Company;

      NOW, THEREFORE, for good and valuable consideration, the receipt of which
is hereby acknowledged, and in order to induce the Holders to acquire the Notes
and maintain the Indebtedness evidenced thereby, the Grantor agrees, for the
benefit of each Secured Party, as follows:

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals,
have the meanings provided (or incorporated by reference) in the Security
Agreement.

SECTION 2. Grant of Security Interest. For good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, to secure all of the
Secured Obligations, the Grantor does hereby mortgage, pledge and hypothecate to
the Collateral Agent, and grant to the Collateral Agent a security interest in,
for its benefit and the benefit of each Secured Party, all of the following
property (the "Trademark Collateral"), whether now owned or hereafter acquired
or existing by it:

            (a) all trademarks, trade names, corporate names, company names,
      business names, fictitious business names, trade styles, service marks,
      certification marks, collective marks, logos, other source of business
      identifiers, prints and labels on which any of the foregoing have appeared
      or appear, designs and general intangibles of a like nature (all of the
      foregoing items in this clause (a) being collectively called a
      "Trademark"), now existing anywhere in the world or hereafter adopted or
      acquired, whether currently in use or not, all registrations and
      recordings thereof and all applications in connection therewith, whether
      pending or in preparation for filing, including registrations, recordings
      and applications in the United States Patent and Trademark Office or in
      any office or agency of the United States of America or any State thereof
      or any foreign country, including those referred to in Item A of Schedule
      IV attached hereto;

                                      -2-
<PAGE>
            (b) all Trademark licenses, including each Trademark license
      referred to in Item B of Schedule IV attached hereto;

            (c) all reissues, extensions or renewals of any of the items
      described in clause (a) and (b);

            (d) all of the goodwill of the business connected with the use of,
      and symbolized by the items described in, clauses (a) and (b); and

            (e) all proceeds of, and rights associated with, the foregoing,
      including any claim by the Grantor against third parties for past, present
      or future infringement or dilution of any Trademark, Trademark
      registration or Trademark license, including any Trademark, Trademark
      registration or Trademark license referred to in Item A and Item B of
      Schedule IV attached hereto, or for any injury to the goodwill associated
      with the use of any such Trademark or for breach or enforcement of any
      Trademark license.

      SECTION 3. Security Agreement. This Agreement has been executed and
delivered by the Grantor for the purpose of registering the security interest of
the Collateral Agent in the Trademark Collateral with the United States Patent
and Trademark Office and corresponding offices in other countries of the world.
The security interest granted hereby has been granted as a supplement to, and
not in limitation of, the security interest granted to the Collateral Agent for
its benefit and the benefit of each Secured Party under the Security Agreement.
The Security Agreement (and all rights and remedies of the Collateral Agent and
each Secured Party thereunder) shall remain in full force and effect in
accordance with its terms.

      SECTION 4. Release of Security Interest. Upon payment in full in cash of
all Secured Obligations, the Collateral Agent shall, at the Grantor's expense,
execute and deliver to the Grantor all instruments and other documents as may be
necessary or proper to release the lien on and security interest in the
Trademark Collateral which has been granted hereunder.

      SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Collateral Agent with respect to the
security interest in the Trademark Collateral granted hereby are more fully set
forth in the Security Agreement, the terms and provisions of which (including
the remedies provided for therein) are incorporated by reference herein as if
fully set forth herein.

      SECTION 6. Related Document, etc. This Agreement is a Related Document
executed pursuant to the Indenture and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions of the Indenture.

      SECTION 7. Counterparts. This Agreement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.

                                      -3-
<PAGE>
      SECTION 8. Subject to Intercreditor Agreement. Notwithstanding anything
herein to the contrary, the lien and security interest granted to the Collateral
Agent pursuant to this Agreement and the exercise of any right or remedy by the
Collateral Agent hereunder, in each case in respect of any collateral
constituting Noteholder Common Collateral (as defined in the Intercreditor
Agreement described below) are subject to the provisions of the Intercreditor
Agreement, dated as of October 15, 2002 (as amended, modified or supplemented
from time to time, the "Intercreditor Agreement") among General Electric Capital
Corporation as Senior Agent, and U.S. Bank Trust National Association, as
Collateral Agent, U.S. Bank Trust National Association, as Trustee, and the
Obligors, including the Grantors hereunder named therein. In the event of any
conflict between the terms of the Intercreditor Agreement and this Agreement,
the terms of the Intercreditor Agreement shall govern.

                                      -4-
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the day and year first above written.

                                    [NAME OF GRANTOR], a ____________
                                       _____________

                                    By _______________________________________
                                       Name:
                                       Title:

                                    U.S. BANK TRUST NATIONAL ASSOCIATION,
                                      as Collateral Agent

                                    By _______________________________________
                                       Name:
                                       Title:

                                      -5-
<PAGE>
                                                                     SCHEDULE IV
                                                 to Trademark Security Agreement

Item A.  Trademarks

<TABLE>
<CAPTION>
                      Registered Trademarks
----------------------------------------------------------------------
*Country       Trademark       Registration No.      Registration Date
--------       ---------       ----------------      -----------------
<S>            <C>             <C>                   <C>

</TABLE>

<TABLE>
<CAPTION>
                Pending Trademark Applications
--------------------------------------------------------------
*Country          Trademark        Serial No.      Filing Date
--------          ---------        ----------      -----------
<S>            <C>             <C>                   <C>

</TABLE>

<TABLE>
<CAPTION>
              Pending Applications in Preparation
----------------------------------------------------------------
                                         Expected      Products/
*Country      Trademark    Docket No.   Filing Date    Services
--------      ---------    ----------   -----------    --------
<S>           <C>          <C>          <C>            <C>

</TABLE>

Item B.  Trademark Licenses

<TABLE>
<CAPTION>
 *Country or                                         Effective     Expiration
  Territory     Trademark    Licensor    Licensee       Date          Date
  ---------     ---------    --------    --------       ----          ----
<S>             <C>          <C>         <C>         <C>           <C>

</TABLE>

--------

* List items related to the United States first for ease of recordation. List
items related to other countries next, grouped by country and in alphabetical
order by country name.
<PAGE>
                                                                       EXHIBIT C
                                                           to Security Agreement

                          COPYRIGHT SECURITY AGREEMENT

      This COPYRIGHT SECURITY AGREEMENT (this "Agreement"), dated as of
__________ __, ____, is made between _____________________, a __________ (the
"Grantor"), and U.S. BANK TRUST NATIONAL ASSOCIATION, as collateral agent
(together with its successor(s) thereto in such capacity, the "Collateral
Agent") for each of the Secured Parties;

                              W I T N E S S E T H :

      WHEREAS, Golfsmith International, Inc., a Delaware corporation (the
"Company"), the Subsidiaries of the Company and the Collateral Agent, as
trustee, have entered into an Indenture, dated as of October 15, 2002 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "Indenture"), and in connection therewith, the Company has issued (the
"Notes Issuance") its Senior Secured Notes due 2009 (and its Senior Secured
Notes due 2009, Series B to be issued in exchange therefor) (collectively, the
"Notes");

      WHEREAS, various financial institutions, as lenders (the "Lenders"),
General Electric Capital Corporation, a Delaware corporation, as agent on behalf
of the Lenders (in such capacity, the "Lender Agent"), and the Grantor and
certain of its Affiliates have entered into that certain Credit Agreement, dated
as of October 15, 2002 (the "Credit Agreement"), pursuant to which the Lenders
have agreed to make certain loans and other financial accommodations from time
to time to the Borrowers (as defined therein) and the Grantor and such
Affiliates have entered into Collateral Agreements (as defined therein) with the
Lender Agent as well;

      WHEREAS, the Collateral Agent, the Lender Agent and the Grantors have
entered into that certain Intercreditor Agreement, dated as of October 15, 2002
(such intercreditor agreement is the Intercreditor Agreement referred to and
defined in the Indenture, and as used herein, the term "Intercreditor Agreement"
has the meaning ascribed thereto in the Indenture), pursuant to which, among
other things, (a) the Lender Agent is recognized as having a first priority
interest in all of the Collateral (as defined in the Collateral Agreements)
(other than real property, Equipment and proceeds thereof) for the benefit of
itself and the Lenders and (b) the Collateral Agent is recognized as having (i)
a second priority interest in all of the Collateral (as defined in the
Collateral Agreements) (other than real property, Equipment and proceeds
thereof) for the benefit of itself, the Trustee and the Holders and (ii) a first
priority interest in all of the Collateral (as defined in the Collateral
Agreements) constituting real property, Equipment and proceeds thereof for the
benefit of itself, the Trustee and the Holders;
<PAGE>
      WHEREAS, in connection with the Indenture, the Grantor has executed and
delivered a Security Agreement, dated as of October 15, 2002 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
"Security Agreement");

      WHEREAS, as a condition precedent to the Notes Issuance, the Grantor is
required to execute and deliver this Agreement and to grant to the Collateral
Agent a continuing security interest in all of the Copyright Collateral (as
defined below) to secure all Secured Obligations;

      WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Agreement; and

      WHEREAS, it is in the best interests of each Grantor to execute this
Agreement inasmuch as such Grantor will derive substantial direct and indirect
benefits from proceeds of the Notes issued by the Company;

      NOW, THEREFORE, for good and valuable consideration, the receipt of which
is hereby acknowledged, and in order to induce the Holders to acquire the Notes
and maintain the Indebtedness evidenced thereby, the Grantor agrees, for the
benefit of each Secured Party, as follows:

      SECTION 1. Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Agreement, including its preamble and
recitals, have the meanings provided (or incorporated by reference) in the
Security Agreement.

      SECTION 2. Grant of Security Interest. For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, to
secure all of the Secured Obligations, the Grantor does hereby mortgage, pledge
and hypothecate to the Collateral Agent, and grant to the Collateral Agent a
security interest in, for its benefit and the benefit of each Secured Party, all
of the following property (the "Copyright Collateral"), whether now owned or
hereafter acquired or existing by it, being all copyrights (including all
copyrights for semi-conductor chip product mask works) of the Grantor, whether
statutory or common law, registered or unregistered, now or hereafter in force
throughout the world including all of the Grantor's right, title and interest in
and to all copyrights registered in the United States Copyright Office or
anywhere else in the world and also including the copyrights referred to in Item
A of Schedule V attached hereto, and all applications for registration thereof,
whether pending or in preparation, all copyright licenses, including each
copyright license referred to in Item B of Schedule V attached hereto, the right
to sue for past, present and future infringements of any thereof, all rights
corresponding thereto throughout the world, all extensions and renewals of any
thereof and all proceeds of the foregoing, including licenses, royalties,
income, payments, claims, damages and proceeds of suit.

      SECTION 3. Security Agreement. This Agreement has been executed and
delivered by the Grantor for the purpose of registering the security interest of
the Collateral Agent in the Copyright Collateral with the United States
Copyright Office and corresponding offices in other countries of the world. The
security interest granted hereby has been granted as a supplement to,

                                      -2-
<PAGE>
and not in limitation of, the security interest granted to the Collateral Agent
for its benefit and the benefit of each Secured Party under the Security
Agreement. The Security Agreement (and all rights and remedies of the Collateral
Agent and each Secured Party thereunder) shall remain in full force and effect
in accordance with its terms.

      SECTION 4. Release of Security Interest. Upon payment in full in cash of
all Secured Obligations, the Collateral Agent shall, at the Grantor's expense,
execute and deliver to the Grantor all instruments and other documents as may be
necessary or proper to release the lien on and security interest in the
Copyright Collateral which has been granted hereunder.

      SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Collateral Agent with respect to the
security interest in the Copyright Collateral granted hereby are more fully set
forth in the Security Agreement, the terms and provisions of which (including
the remedies provided for therein) are incorporated by reference herein as if
fully set forth herein.

      SECTION 6. Related Document, etc. This Agreement is a Related Document
executed pursuant to the Indenture and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions of the Indenture.

      SECTION 7. Counterparts. This Agreement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.

      SECTION 8. Subject to Intercreditor Agreement. NOTWITHSTANDING ANYTHING
HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE COLLATERAL
AGENT PURSUANT TO THIS AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE
COLLATERAL AGENT HEREUNDER, IN EACH CASE IN RESPECT OF ANY COLLATERAL
CONSTITUTING NOTEHOLDER COMMON COLLATERAL (AS DEFINED IN THE INTERCREDITOR
AGREEMENT DESCRIBED BELOW) ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR
AGREEMENT, DATED AS OF OCTOBER 15, 2002 (AS AMENDED, MODIFIED OR SUPPLEMENTED
FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") AMONG GENERAL ELECTRIC CAPITAL
CORPORATION AS SENIOR AGENT, AND U.S. BANK TRUST NATIONAL ASSOCIATION, AS
COLLATERAL AGENT, U.S. BANK TRUST NATIONAL ASSOCIATION, AS TRUSTEE, AND THE
OBLIGORS, INCLUDING THE GRANTORS HEREUNDER NAMED THEREIN. IN THE EVENT OF ANY
CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT,
THE TERMS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN.

                                      -3-
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the day and year first above written.

                                    [NAME OF GRANTOR], a ____________
                                       _____________

                                    By ____________________________________
                                       Name:
                                       Title:

                                    U.S. BANK TRUST NATIONAL ASSOCIATION,
                                      as Collateral Agent

                                    By ____________________________________
                                       Name:
                                       Title:

                                      -4-
<PAGE>
                                                                      SCHEDULE V
                                                                    to Copyright
                                                              Security Agreement

Item A.  Copyrights/Mask Works

<TABLE>
<CAPTION>
                   Registered Copyrights/Mask Works
------------------------------------------------------------------------
*Country    Registration No.    Registration Date     Author(s)    Title
--------    ----------------    -----------------     ---------    -----
<S>         <C>                 <C>                   <C>          <C>

</TABLE>

<TABLE>
<CAPTION>
          Copyright/Mask Work Pending Registration Applications
-------------------------------------------------------------------------
*Country            Serial No.       Filing Date       Author(s)    Title
--------            ----------       -----------       ---------    -----
<S>                 <C>              <C>               <C>          <C>

</TABLE>

<TABLE>
<CAPTION>
       Copyright/Mask Work Registration Applications in Preparation
----------------------------------------------------------------------------
                                         Expected
*Country               Docket No.       Filing Date     Author(s)      Title
--------               ----------       -----------     ---------      -----
<S>                    <C>              <C>             <C>            <C>

</TABLE>

Item B.  Copyright/Mask Work Licenses

<TABLE>
<CAPTION>
   *Country or                             Effective     Expiration   Subject
    Territory     Licensor    Licensee        Date          Date       Matter
    ---------     --------    --------        ----          ----       ------
<S>               <C>         <C>          <C>           <C>          <C>

</TABLE>

--------

* List items related to the United States first for ease of recordation. List
items related to other countries next, grouped by country and in alphabetical
order by country name.
<PAGE>
                                                                         ANNEX I
                                                           to Security Agreement

                        SUPPLEMENT TO SECURITY AGREEMENT

      This SUPPLEMENT NO. ___, dated as of ________ __, ____ (this
"Supplement"), to the Security Agreement, dated as of ________ __, ____ (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "Security Agreement"), among the initial signatories thereto and each
other Person which from time to time thereafter became a party thereto pursuant
to Section 7.5 thereof (each, individually, a "Grantor", and, collectively, the
"Grantors"), in favor of U.S. BANK TRUST NATIONAL ASSOCIATION, as collateral
agent (together with any successor(s) thereto in such capacity, the "Collateral
Agent") for each of the Secured Parties (such and other capitalized terms being
used herein with the meanings provided, or incorporated by reference, in the
Security Agreement), is made by the undersigned.

                              W I T N E S S E T H:

      WHEREAS, Golfsmith International, Inc., a Delaware corporation (the
"Company"), the Subsidiaries of the Company and the Collateral Agent, as
trustee, have entered into an Indenture, dated as of October 15, 2002 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "Indenture"), and in connection therewith, the Company has issued (the
"Notes Issuance") its Senior Secured Notes due 2009 (and its Senior Secured
Notes due 2009, Series B to be issued in exchange therefor) (collectively, the
"Notes");

      WHEREAS, various financial institutions, as lenders (the "Lenders"),
General Electric Capital Corporation, a Delaware corporation, as agent on behalf
of the Lenders (in such capacity, the "Lender Agent"), and the Grantor and
certain of its Affiliates have entered into that certain Credit Agreement, dated
as of October 15, 2002 (the "Credit Agreement"), pursuant to which the Lenders
have agreed to make certain loans and other financial accommodations from time
to time to the Borrowers (as defined therein) and the Grantor and such
Affiliates have entered into Collateral Agreements (as defined therein) with the
Lender Agent as well;

      WHEREAS, the Collateral Agent, the Lender Agent and the Grantors have
entered into that certain Intercreditor Agreement, dated as of October 15, 2002
(such intercreditor agreement is the Intercreditor Agreement referred to and
defined in the Indenture, and as used herein, the term "Intercreditor Agreement"
has the meaning ascribed thereto in the Indenture), pursuant to which, among
other things, (a) the Lender Agent is recognized as having a first priority
interest in all of the Collateral (as defined in the Collateral Agreements)
(other than real property, Equipment and proceeds thereof) for the benefit of
itself and the Lenders and (b) the Collateral Agent is recognized as having (i)
a second priority interest in all of the Collateral (as defined in the
Collateral Agreements) (other than real property, Equipment and proceeds
thereof) for the benefit of itself, the Trustee and the Holders and (ii) a first
priority interest in all of the Collateral
<PAGE>
(as defined in the Collateral Agreements) constituting real property, Equipment
and proceeds thereof for the benefit of itself, the Trustee and the Holders;

      WHEREAS, as a condition to the Notes Issuance, the undersigned is required
to execute and deliver this Supplement;

      WHEREAS, the undersigned has duly authorized the execution, delivery and
performance of this Supplement and the Security Agreement;

      WHEREAS, the Security Agreement provides that additional parties may
become Grantors under the Security Agreement by execution and delivery of an
instrument in the form of this Supplement;

      WHEREAS, pursuant to the provisions of Section 7.5 of the Security
Agreement, the undersigned is becoming an Additional Grantor under the Security
Agreement; and

      WHEREAS, the undersigned desires to become a Grantor under the Security
Agreement in order to induce the Holders to acquire the Notes and maintain the
Indebtedness evidenced thereby as consideration therefor;

      NOW, THEREFORE, the undersigned agrees, for the benefit of each Secured
Party, as follows:

SECTION 1. In accordance with the Security Agreement, the undersigned by its
signature below becomes a Grantor under the Security Agreement with the same
force and effect as if it were an original signatory thereto as a Grantor and
the undersigned hereby

            (a) agrees to all the terms and provisions of the Security Agreement
      applicable to it as a Grantor thereunder;

            (b) assigns and pledges to the Collateral Agent for its benefit and
      the ratable benefit of each other Secured Party, and grants to the
      Collateral Agent for its benefit and the ratable benefit of each other
      Secured Party, a security interest in all of the following, whether now or
      hereafter existing or acquired by the undersigned (its "Collateral"):

                  (i) all Intercompany Notes in which the undersigned has an
            interest (including each Intercompany Note described in Item A of
            Schedule I hereto);

                  (ii) all interest and other payments and rights with respect
            to each Intercompany Note in which the undersigned has an interest;

                  (iii) (A) all investment property in which the undersigned has
            an interest (including the Capital Securities of each issuer of such
            Capital Securities described in Schedule I hereto) and (B) all other
            Capital Securities which are

                                      -2-
<PAGE>
            interests in limited liability companies or partnerships in which
            the undersigned has an interest (including the Capital Securities of
            each issuer of such Capital Securities described in Schedule I
            hereto), in each case together with Dividends and Distributions
            payable in respect of the Collateral described in the foregoing
            clauses (iii)(A) and (iii)(B) (provided, however, that not more than
            65% of all of the Capital Securities that are voting Capital
            Securities of any Foreign Subsidiary of the undersigned shall be so
            pledged by the undersigned);

                  (iv) all equipment in all of its forms of the undersigned
            (including all Motor Vehicles), wherever located, including all
            parts thereof and all accessions, additions, attachments,
            improvements, substitutions and replacements thereto and therefor
            and all accessories related thereto (any and all of the foregoing
            being the "Equipment");

                        (A) all inventory in all of its forms of the
                  undersigned, wherever located, including

                        (B) all raw materials and work in process therefor,
                  finished goods thereof, and materials used or consumed in the
                  manufacture or production thereof,

                        (C) all goods in which the undersigned has an interest
                  in mass or a joint or other interest or right of any kind
                  (including goods in which the undersigned has an interest or
                  right as consignee), and

                        (D) all goods which are returned to or repossessed by
                  the undersigned,

            and all accessions thereto, products thereof and documents therefor
            (any and all such inventory, materials, goods, accessions, products
            and documents being the "Inventory");

                  (v) all accounts, contracts, contract rights, chattel paper,
            documents, instruments, promissory notes and general intangibles
            (including tax refunds and payment intangibles) of the undersigned,
            whether or not arising out of or in connection with the sale or
            lease of goods or the rendering of services, and all rights of the
            undersigned now or hereafter existing in and to all security
            agreements, guaranties, leases and other contracts securing or
            otherwise relating to any such accounts, contracts, contract rights,
            chattel paper, documents, instruments, promissory notes, general
            intangibles and payment intangibles (all of the foregoing being the
            "Receivables", and any and all such security agreements, guaranties,
            leases and other contracts being the "Related Contracts");

                                      -3-
<PAGE>
                  (vi) all deposit accounts of the undersigned and all cash,
            checks, drafts, notes, bills of exchange, money orders and other
            like instruments, if any, now owned or hereafter acquired, held
            therein (or in sub-accounts thereof) and all certificates and
            instruments, if any, from time to time representing or evidencing
            such investments, and all interest, earnings and proceeds in respect
            thereof;

                  (vii) all Intellectual Property Collateral of the undersigned;

                  (viii) all of the undersigned's letter of credit rights;

                  (ix) all commercial tort claims in which the undersigned has
            rights (including as a plaintiff);

                  (x) all books, records, writings, data bases, information and
            other property relating to, used or useful in connection with,
            evidencing, embodying, incorporating or referring to, any of the
            foregoing in this Section;

                  (xi) all of the undersigned's other property and rights of
            every kind and description and interests therein; and

                  (xii) all products, offspring, rents, issues, profits,
            returns, income, supporting obligations and proceeds of and from any
            and all of the foregoing Collateral (including proceeds which
            constitute property of the types described in clauses (i) through
            (xi), proceeds deposited from time to time in any lock box or
            deposit account of the undersigned, and, to the extent not otherwise
            included, all payments under insurance (whether or not the
            Collateral Agent is the loss payee thereof), or any indemnity,
            warranty or guaranty, payable by reason of loss or damage to or
            otherwise with respect to any of the foregoing Collateral);

      provided, however, that "Collateral" shall not include any general
      intangibles or other rights described in clause (v) above arising under
      any contracts, instruments, licenses or other documents described in such
      clause as to which the grant of a security interest would constitute a
      violation of a valid and enforceable restriction in favor of a third party
      on such grant, unless and until any required consents shall have been
      obtained (and in connection therewith, the undersigned agrees to use its
      best efforts to obtain any such required consent);

            (c) agrees that each of the Schedules attached hereto shall be
      deemed to be a Schedule thereto; and

            (d) represents and warrants that the representations and warranties
      made by it as a Grantor thereunder are true and correct on and as of the
      date hereof.

                                      -4-
<PAGE>
In furtherance of the foregoing, each reference to a "Grantor" or "Additional
Grantor" in the Security Agreement shall be deemed to include the undersigned.

      SECTION 2. The undersigned hereby represents and warrants that this
Supplement has been duly authorized, executed and delivered by the undersigned
and constitutes a legal, valid and binding obligation of the undersigned,
enforceable against it in accordance with its terms.

      SECTION 3. Except as expressly supplemented hereby, the Security Agreement
shall remain in full force and effect in accordance with its terms.

      SECTION 4. In the event any one or more of the provisions contained in
this Supplement should be held invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein and in the Security Agreement shall not in any way be affected or
impaired.

      SECTION 5. Without limiting the provisions of the Indenture (or any other
Related Document, including the Security Agreement), the undersigned agrees to
reimburse the Collateral Agent for its reasonable out-of-pocket expenses in
connection with this Supplement, including reasonable attorneys' fees and
expenses of the Collateral Agent.

      SECTION 6. THIS SUPPLEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. THIS SUPPLEMENT, THE SECURITY
AGREEMENT AND THE OTHER RELATED DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING
AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF
AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO.

      SECTION 7. This Supplement hereby incorporates by reference the provisions
of the Security Agreement, which provisions are deemed to be a part hereof, and
this Supplement shall be deemed to be a part of the Security Agreement. Unless
otherwise defined herein or the context otherwise requires, terms used in this
Supplement, including its preamble and recitals, have the meanings provided (or
incorporated by reference) in the Security Agreement.

      SECTION 8. This Supplement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of
which shall constitute together but one and the same agreement.

      SECTION 9. Subject to Intercreditor Agreement. NOTWITHSTANDING ANYTHING
HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE COLLATERAL
AGENT PURSUANT TO THIS AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE
COLLATERAL AGENT HEREUNDER, IN EACH CASE IN RESPECT OF ANY COLLATERAL
CONSTITUTING NOTEHOLDER COMMON COLLATERAL (AS DEFINED IN THE INTERCREDITOR
AGREEMENT DESCRIBED BELOW) ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR
AGREEMENT, DATED AS OF OCTOBER 15, 2002 (AS AMENDED, MODIFIED OR

                                      -5-
<PAGE>
SUPPLEMENTED FROM TIME TO TIME, THE "INTERCREDITOR AGREEMENT") AMONG GENERAL
ELECTRIC CAPITAL CORPORATION AS SENIOR AGENT, AND U.S. BANK TRUST NATIONAL
ASSOCIATION, AS COLLATERAL AGENT, U.S. BANK TRUST NATIONAL ASSOCIATION, AS
TRUSTEE, AND THE OBLIGORS, INCLUDING THE GRANTORS HEREUNDER NAMED THEREIN. IN
THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND
THIS AGREEMENT, THE TERMS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN.

                                      -6-
<PAGE>
      IN WITNESS WHEREOF, the undersigned has caused this Supplement to be duly
executed and delivered by its officer thereunto duly authorized as of the date
first above written.

                                    [NAME OF ADDITIONAL GRANTOR], a
                                       ____________ _____________

                                    By:____________________________________
                                       Name:
                                       Title:

ACKNOWLEDGED AND ACCEPTED BY:

U.S. BANK TRUST NATIONAL
    ASSOCIATION, as Collateral Agent

By:_________________________________
   Name:
   Title:

                                      -7-
<PAGE>
                                                                      SCHEDULE I
                                                            to Supplement No. __
                                                           to Security Agreement
                                                  ([NAME OF ADDITIONAL GRANTOR])

Item A.  Intercompany Notes

<TABLE>
<CAPTION>
                   Maximum Amount of
                   Intercompany Loans
     Maker         Evidenced Thereby     Date
     -----         -----------------     ----
<S>                <C>                  <C>

</TABLE>

Item B.  Securities

<TABLE>
<CAPTION>
                                                    Common Stock
                                      -----------------------------------------
                                      Authorized    Outstanding     % of Shares
           Company (corporate)          Shares        Shares          Pledged
           -------------------          ------        ------          -------
<S>                                   <C>           <C>             <C>

</TABLE>

<TABLE>
<CAPTION>
                                            Limited Liability Company Interests
                                -------------------------------------------------------------
  Company (limited liability     % of Limited Liability             Type of Limited Liability
           company)             Company Interests Pledged          Company Interests Pledged
           --------             -------------------------          -------------------------
<S>                             <C>                                <C>

</TABLE>

<TABLE>
<CAPTION>
                                             Partnership Interests
                                             ---------------------
                                   % of Partnership        Type of Partnership
    Company (partnership)         Interests Pledged         Interests Pledged
    ---------------------         -----------------         -----------------
<S>                               <C>                      <C>

</TABLE>

Item C.  Additional Subsidiaries
<PAGE>
                                                                     SCHEDULE II
                                                            to Supplement No. __
                                                           to Security Agreement
                                                  ([NAME OF ADDITIONAL GRANTOR])

Item A.     Locations of each Grantor:

Name of Grantor:                         Location for purposes of U.C.C.:
[GRANTOR]                                [LOCATION]

Item B.     Filing locations prior to July 1, 2001

Name of Grantor:                         Filing Locations prior to
                                         July 1, 2001 (or October 1, 2001 if the
                                         location is Connecticut and January 1,
                                         2002 if the location is Alabama,
                                         Florida or Mississippi):

[GRANTOR]                                [LOCATION]

Item C.     Trade names.

Name of Grantor:                         Trade Names:
[GRANTOR]

Item D.     Merger or other corporate reorganization.

Name of Grantor:                         Merger or other corporate
                                         reorganization:
[GRANTOR]

Item E.     Taxpayer ID numbers.

Name of Grantor:                         Taxpayer ID numbers:
[GRANTOR]

Item F.     Government Contracts:

Name of Grantor:                         Description of Contract:
[GRANTOR]
<PAGE>
Item G.     Deposit Accounts:

Name of Grantor:                         Description of Deposit Account:
[GRANTOR]
<PAGE>
                                                                    SCHEDULE III
                                                            to Supplement No. __
                                                           to Security Agreement
                                                  ([NAME OF ADDITIONAL GRANTOR])

Item A.  Patents

<TABLE>
<CAPTION>
                           Issued Patents
-------------------------------------------------------------------
*Country       Patent No.     Issue Date     Inventor(s)      Title
--------       ----------     ----------     -----------      -----
<S>            <C>            <C>            <C>              <C>

</TABLE>

<TABLE>
<CAPTION>
                    Pending Patent Applications
-------------------------------------------------------------------
*Country       Serial No.     Filing Date    Inventor(s)      Title
--------       ----------     -----------    -----------      -----
<S>            <C>            <C>            <C>              <C>

</TABLE>

<TABLE>
<CAPTION>
                 Patent Applications in Preparation
-------------------------------------------------------------------
                               Expected
*Country       Docket No.     Filing Date    Inventor(s)      Title
--------       ----------     -----------    -----------      -----
<S>            <C>            <C>            <C>              <C>

</TABLE>

Item B.  Patent Licenses

<TABLE>
<CAPTION>
*Country or                                Effective     Expiration    Subject
  Territory    Licensor       Licensee       Date           Date        Matter
  ---------    --------       --------       ----           ----        ------
<S>            <C>            <C>          <C>           <C>           <C>

</TABLE>

--------

* List items related to the United States first for ease of recordation. List
items related to other countries next, grouped by country and in alphabetical
order by country name.
<PAGE>
                                                                     SCHEDULE IV
                                                            to Supplement No. __
                                                           to Security Agreement
                                                  ([NAME OF ADDITIONAL GRANTOR])

Item A.  Trademarks

<TABLE>
<CAPTION>
                      Registered Trademarks
----------------------------------------------------------------------
*Country       Trademark       Registration No.      Registration Date
--------       ---------       ----------------      -----------------
<S>            <C>             <C>                   <C>

</TABLE>

<TABLE>
<CAPTION>
                Pending Trademark Applications
--------------------------------------------------------------
*Country          Trademark        Serial No.      Filing Date
--------          ---------        ----------      -----------
<S>            <C>             <C>                   <C>

</TABLE>

<TABLE>
<CAPTION>
             Pending Applications in Preparation
----------------------------------------------------------------
                                         Expected      Products/
*Country      Trademark    Docket No.   Filing Date    Services
--------      ---------    ----------   -----------    --------
<S>           <C>          <C>          <C>            <C>

</TABLE>

Item B.  Trademark Licenses

<TABLE>
<CAPTION>
 *Country or                                         Effective     Expiration
  Territory     Trademark    Licensor    Licensee       Date          Date
  ---------     ---------    --------    --------       ----          ----
<S>             <C>          <C>         <C>         <C>           <C>

</TABLE>

--------

* List items related to the United States first for ease of recordation. List
items related to other countries next, grouped by country and in alphabetical
order by country name.
<PAGE>
                                                                      SCHEDULE V
                                                            to Supplement No. __
                                                           to Security Agreement
                                                  ([NAME OF ADDITIONAL GRANTOR])

Item A.  Copyrights/Mask Works

<TABLE>
<CAPTION>
                         Registered Copyrights/Mask Works
------------------------------------------------------------------------
*Country    Registration No.    Registration Date     Author(s)    Title
--------    ----------------    -----------------     ---------    -----
<S>         <C>                 <C>                   <C>          <C>

</TABLE>

<TABLE>
<CAPTION>
          Copyright/Mask Work Pending Registration Applications
------------------------------------------------------------------------
*Country            Serial No.       Filing Date       Author(s)    Title
--------            ----------       -----------       ---------    -----
<S>                 <C>              <C>               <C>          <C>

</TABLE>

<TABLE>
<CAPTION>
          Copyright/Mask Work Registration Applications in Preparation
----------------------------------------------------------------------------
                                         Expected
*Country               Docket No.       Filing Date     Author(s)      Title
--------               ----------       -----------     ---------      -----
<S>                    <C>              <C>             <C>            <C>

</TABLE>

Item B.  Copyright/Mask Work Licenses

<TABLE>
<CAPTION>
   *Country or                             Effective     Expiration   Subject
    Territory     Licensor    Licensee        Date          Date       Matter
    ---------     --------    --------        ----          ----       ------
<S>               <C>         <C>          <C>           <C>          <C>

</TABLE>

--------

* List items related to the United States first for ease of recordation. List
items related to other countries next, grouped by country and in alphabetical
order by country name.
<PAGE>
                                                                     SCHEDULE VI
                                                             to Supplement No __
                                                           to Security Agreement
                                                  ([NAME OF ADDITIONAL GRANTOR])

<TABLE>
<CAPTION>
                       Trade Secret or Know-How Licenses
 ------------------------------------------------------------------------------
 *Country or                             Effective     Expiration      Subject
  Territory    Licensor    Licensee         Date          Date          Matter
  ---------    --------    --------         ----          ----          ------
<S>            <C>         <C>           <C>           <C>             <C>

</TABLE>

--------

* List items related to the United States first for ease of recordation. List
items related to other countries next, grouped by country and in alphabetical
order by country name.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}]]