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Exhibit 10(g)  

SECURITY AGREEMENT  

        THIS SECURITY AGREEMENT (this "Agreement") dated as of March 28, 2002 is among K2 INC., a Delaware
corporation (the "Company"), each subsidiary of the Company listed on the signature pages hereof, such other subsidiaries of the Company as from time to
time become parties hereto (together with the Company, each individually a "Debtor" and collectively the
"Debtors") and BANK OF AMERICA, N.A. ("Bank of America"), in its capacity as collateral agent (in such
capacity, the "Collateral Agent") under the Intercreditor Agreement referred to below. 

W I T N E S S E T H:  

        WHEREAS, the Company, various financial institutions (the "Lenders") and Bank of America, as Administrative Agent
(in such capacity, the "Administrative Agent"), have entered into a Credit Agreement dated as of December 21, 1999 (as amended, restated or
otherwise modified from time to time, the "Credit Agreement"); 

        WHEREAS,
the Company is a party to separate Note Agreements dated as of October 15, 1992 (as amended, restated or otherwise modified from time to time, the
"1992 Note Agreements") with various purchasers (the "1992 Noteholders"); 

        WHEREAS,
the Company is a party to a Note Purchase Agreement dated as of December 1, 1999 (as amended, restated or otherwise modified from time to time, the
"1999 Note Agreement"; together with the 1992 Note Agreements, the "Note Agreements") with various
purchasers (the "1999 Noteholders"; together with the 1992 Noteholders, collectively the "Noteholders"); 

        WHEREAS,
each of the Debtors (other than the Company) has guarantied all obligations of the Company under the Credit Agreement, the Note Agreements and certain other financing
arrangements; 

        WHEREAS,
pursuant to (i) the Continuing Guaranty dated August 19, 2000, (ii) the Amended and Restated Continuing Guaranty (Multicurrency) dated March 28, 2002
and (iii) the Continuing Guaranty (Multicurrency) dated July 31, 1998, the Company has guaranteed all of the obligations of K-2 Corporation, K2 Ski Sport + Mode
GmbH and Shakespeare Company (UK) Limited, respectively, under various financing arrangements made available to such entities by Bank of America and various subsidiaries and affiliates thereof; 

        WHEREAS,
pursuant to the Continuing Guaranty (Foreign Currency) dated October 29, 1998, the Company has guaranteed all of the obligations of K2 Japan Co. Ltd. under a
financing arrangement made available to such entity by Union Bank of California, N.A.; 

        WHEREAS,
pursuant to an Amended and Restated Intercreditor Agreement dated as of the date hereof (as amended, restated or otherwise modified from time to time, the
"Intercreditor Agreement"), the Administrative Agent, on behalf of itself and the Lenders, the Noteholders, various other parties from time to time
party thereto and the Collateral Agent have agreed that (i) the Benefited Obligations (as defined in the Intercreditor Agreement) shall be secured and guarantied pari
passu and (ii) Bank of America shall act as collateral agent for the Benefited Parties (as defined in the Intercreditor Agreement); and 

        WHEREAS,
the Benefited Obligations of each Debtor are to be secured pursuant to this Agreement; 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

        1.    Definitions; Interpretation.     When used herein, (a) the terms Account, Account
Debtor, Certificated Security, Commodity Account, Commodity Contract, Chattel Paper, Deposit Account, Document, Equipment, Fixture, Goods, Inventory, Investment Property, Instrument, Payment
Intangible,  

 

 Security, Security Entitlement, Securities Account and Uncertificated Security shall have the respective meanings assigned to
such terms in the UCC (as defined below), (b) the terms Benefited Obligations, Benefited Parties, Collateral Release Date, Event of Default and  Financing
Agreement shall have the respective meanings assigned to such terms in the Intercreditor Agreement, (c) references to agreements
(including this Agreement) and other contractual instruments shall be deemed to include all subsequent amendments and other modifications thereto, but only to the extent such amendments and other
modifications are not prohibited by the terms of any Financing Agreement and (d) the following terms have the following meanings (such definitions to be applicable to both the singular and
plural forms of such terms): 

        Administrative Agent—see the Recitals. 

        Agreement—see the Preamble. 

        Assignee Deposit Account—see Section 4. 

        Bank of America—see the Preamble. 

        Business Day means any day on which Bank of America is open for commercial banking business in Los Angeles, New York and Charlotte. 

        Collateral means, with respect to any Debtor, all property and rights of such Debtor in which a security interest is granted hereunder. 

        Collateral Agent—see the Preamble. 

        Company—see the Preamble. 

        Computer Hardware and Software means, with respect to any Debtor, (i) all computer and other electronic data processing hardware,
whether now or hereafter owned, licensed or leased by such Debtor, including, without limitation, all 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; (ii) all software programs, whether now or hereafter owned, licensed or leased by such Debtor, designed for use on the computers and electronic data processing
hardware described in clause (i) above, including, without limitation, all operating system software, utilities and application programs in
whatsoever form (source code and object code in magnetic tape, disk or hard copy format or any other listings whatsoever); (iii) all firmware associated with the foregoing, whether now or
hereafter owned, licensed or leased by such Debtor; and (iv) all documentation for the hardware, software and firmware described in the preceding clauses (i),
(ii) and (iii) above, whether now or hereafter owned, licensed or leased by such Debtor, including, without
limitation, flow charts, logic diagrams, manuals, specifications, training materials, charts and pseudo codes. 

        Costs and Expenses means, with respect to any Debtor, all reasonable out-of-pocket costs and expenses (including
reasonable attorneys' fees and legal expenses) incurred by the Collateral Agent in connection with (i) the execution, delivery and performance of this Agreement by such Debtor,
(ii) protecting, preserving or maintaining any Collateral of such Debtor and (iii) enforcing any rights of the Collateral Agent hereunder in respect of the Collateral of such Debtor. 

        Credit Agreement—see the Recitals. 

        Debtor—see the Preamble. 

        Default means the occurrence of any of the following events: (a) any Unmatured Event of Default under Section 8.01(g) of the
Credit Agreement, Section 6.1(i), (j) or (k) of the 1992 Note Agreements or Section 11(h) of the 1999 Note Agreement; (b) any Event of Default; or (c) any
warranty of any 

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Debtor herein is untrue or misleading in any material respect and, as a result thereof, the Collateral Agent's security interest for the benefit of the Benefited Parties in any material portion of
the Collateral is not perfected or the Collateral Agent's rights and remedies with respect to any material portion of the Collateral is materially impaired or otherwise materially adversely affected. 

        Excluded Asset means all Originator Collateral (as defined in the Receivables Sale and Contribution Agreement);  provided that no Inventory shall constitute an Excluded
Asset unless it is related to a Transferred Account and is in transit to, has been returned by
or has been reclaimed from an Account Debtor; no Equipment shall constitute an Excluded Asset unless it is identifiable proceeds of other Excluded Assets; and no customer list or Securitization
Hardware or Software shall constitute an Excluded Asset. 

        General Intangibles means, with respect to any Debtor, all of such Debtor's "general intangibles" as defined in UCC and, in any event,
includes (without limitation) all of such Debtor's trademarks, trade names, patents, copyrights, trade secrets, customer lists, inventions, designs, software programs, mask works, goodwill,
registrations, licenses, franchises, tax refund claims, guarantee claims, security interests and rights to indemnification. 

        Intellectual Property means all past, present and future: trade secrets and other proprietary information; trademarks, service marks,
business names, designs, logos, indicia, and/or other source and/or business identifiers and the goodwill of the business relating thereto and all registrations or applications for
registrations which have heretofore been or may hereafter be issued thereon throughout the world; copyrights (including, without limitation, copyrights for computer programs) and copyright
registrations or applications for registrations which have heretofore been or may hereafter be issued throughout the world and all tangible property embodying the copyrights; unpatented inventions
(whether or not patentable); patent applications and patents; industrial designs, industrial design applications and registered industrial designs; license agreements related to any of the foregoing
and income therefrom; mask works, books, records, writings, computer tapes or disks, flow diagrams, specification sheets, source codes, object codes and other physical manifestations, embodiments or
incorporations of any of the foregoing; the right to sue for all past, present and future infringements of any of the foregoing; and all common law and other rights throughout the world in and to all
of the foregoing. 

        Intercreditor Agreement—see the Recitals. 

        Lenders—see the Recitals. 

        Liabilities means, as to each Debtor, all Benefited Obligations of such Debtor. 

        1992 Note Agreements—see the Recitals. 

        1992 Noteholders—see the Recitals. 

        1999 Note Agreement—see the Recitals. 

        1999 Noteholders—see the Recitals. 

        Non-Tangible Collateral means, with respect to any Debtor, such Debtor's Accounts and General Intangibles which constitute
Collateral hereunder. 

        Note Agreements—see the Recitals. 

        Noteholders—see the Recitals. 

        Permitted Accounts Receivable Financing Facility means a "Permitted Accounts Receivable Financing Facility" under and as defined in each
of the Credit Agreement, the 1992 Note Agreements and the 1999 Note Agreement. 

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        Permitted Deposit Account means each Deposit Account established pursuant to (and intended to be used exclusively in connection with) any
Permitted Accounts Receivable Financing Facility. 

        Permitted Liens means (a) liens and claims expressly permitted by each Financing Agreement and (b) liens arising in
connection with non-exclusive licenses of Securitization Hardware and Software. 

        Receivables Sale and Contribution Agreement means the Receivables Sale and Contribution Agreement dated as of March 28, 2002 among
the Company, as parent guarantor, Stearns Inc., Shakespeare Company, LLC and K-2 Corporation, as originators, and K2 Finance Company, LLC, as buyer, as such Agreement is in effect
on the date hereof. 

        Securitization Hardware and Software means the Computer Hardware and Software used to service and/or monitor the accounts and payments
intangibles of the Company and its Subsidiaries; the Computer Hardware and Software and other computer materials otherwise relating to the Excluded Assets; and the printouts and other computer
materials, technical knowledge or processes, data bases, customer lists, credit files, correspondence, and advertising materials or any property of a similar nature relating to the Excluded Assets. 

        Transferred Account means any Account or Payment Intangible of a Debtor which has been sold or in which a security interest has been
granted pursuant to a Permitted Accounts Receivable Financing Facility. 

        UCC means the Uniform Commercial Code as in effect from time to time in the State of California. 

        Unmatured Event of Default means any event which if it continues uncured will, with lapse of time or notice or both, constitute an Event
of Default. 

        2.    Grant of Security Interest.    As security for the payment of all of its Liabilities, each Debtor hereby assigns
to the Collateral Agent for the benefit of the Benefited Parties, and grants to the Collateral
Agent for the benefit of the Benefited Parties a continuing security interest in, all of such Debtor's right, title and interest in the following: 

	(i)
	Accounts;

	(ii)
	Chattel
Paper;

	(iii)
	Computer
Hardware and Software and all rights with respect thereto, including, without limitation, any and all 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;

	(iv)
	Deposit
Accounts;

	(v)
	Documents;

	(vi)
	General
Intangibles (including Payment Intangibles);

	(vii)
	Goods
(including, without limitation, all of its Equipment, Fixtures and Inventory), together with all accessions, additions, attachments,
improvements, substitutions and replacements thereto and therefor;

	(viii)
	Instruments
(together with all guaranties thereof and security therefor);

	(ix)
	Intellectual
Property;

	(x)
	money
(of every jurisdiction whatsoever); 

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	(xi)
	Investment
Property (including Commodity Accounts, Commodity Contracts, Securities (whether Certificated Securities or Uncertificated Securities),
Security Entitlements and Security Accounts); and

	(xii)
	to
the extent not included in the foregoing, other personal property of any kind or description; 

in
each case whether now or hereafter existing or acquired, together with 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, all proceeds, products, offspring, rents, issues, profits and returns of and from any of the foregoing, all distributions on
or rights arising out of any of the foregoing, and all claims and/or insurance payments arising out of the loss, nonconformity or interference with the use of, or infringements of rights in, or damage
to, any of the foregoing; provided that the Collateral shall not include (A) any Excluded Asset or (B) any other asset (including, without
limitation, any General Intangible) to the extent, and only to the extent, that such asset is subject to a contract or other agreement which contains a legally enforceable provision which would be
breached by the grant of the security interest to the Collateral Agent pursuant to the terms of this Agreement (except that if and when any such prohibition is removed, the Collateral Agent will be
deemed to have been granted a security interest in the applicable contract or asset as of the date hereof, and the Collateral will be deemed to include such contract or asset). 

        3.    Warranties.    Each Debtor warrants that: (i) no financing statement (other than any which may have been
filed on behalf of the Collateral Agent for the benefit of the Benefited Parties) covering any of the Collateral is on file in any public office, other than financing statements related to Permitted
Liens; (ii) such Debtor is and will be the lawful owner of all Collateral, free of all liens and claims whatsoever, other than the security interest hereunder and Permitted Liens, with full
power and authority to execute and deliver this Agreement, to perform such Debtor's obligations hereunder and to subject the Collateral to the security interest hereunder; (iii) all information
with respect to Collateral and Account Debtors set forth in any schedule, certificate or other writing at any time heretofore or hereafter furnished by such Debtor to the Collateral Agent or any other
Benefited Party will be true and correct in all material respects as of the date furnished; (iv) such Debtor's true legal name as registered in the jurisdiction in which such Debtor is
organized or incorporated, state of organization or incorporation, federal employer identification number, organizational identification number as designated by the state of its organization or
incorporation, chief executive office and principal place of business are as set forth on Schedule I (and such Debtor has not maintained its
chief executive office and principal place of business at any other location at any time after June 30, 2001); (v) each other location where such Debtor maintains a place of business or
has any Goods is set forth on Schedule II hereto; (vi) except as disclosed on  Schedule III, such Debtor is not now known and during the five
years preceding the date hereof has not previously been known by any trade name;
(vii) except as disclosed on Schedule III, during the five years preceding the date hereof, such Debtor has not been known by any legal
name different from the one set forth on the signature page of this Agreement, nor has such Debtor been the subject of any merger or other corporate reorganization;
(viii) Schedule IV hereto contains a complete listing of all of such Debtor's Intellectual Property which is subject to registration
statutes and (ix) upon the filing of financing statements on Form UCC-1 in the appropriate governmental offices, the Collateral Agent will have a valid lien upon and perfected
security interest in all of the Collateral in which a security interest can be perfected by filing under the UCC (subject only to Permitted Liens). 

        4.    Collections, etc.    The Collateral Agent may, at any time that a Default exists, whether before or after the
maturity of any of the Liabilities, notify any parties obligated on any of the Non-Tangible Collateral to make payment to the Collateral Agent of any amounts due or to become due
thereunder and enforce collection of any of the Non-Tangible 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. Promptly following 

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any request of the Collateral Agent during the existence of a Default, each Debtor will, at its own expense, notify any parties obligated on any of the Non-Tangible Collateral to make
payment to the Collateral Agent of any amounts due or to become due thereunder. 

        Upon
request by the Collateral Agent during the existence of a Default, each Debtor will forthwith, upon receipt, transmit and deliver to the Collateral Agent, in the form received, all
cash, checks, drafts and other instruments or writings for the payment of money (properly endorsed, where required, so that such items may be collected by the Collateral Agent) which may be received
by such Debtor at any time in full or partial payment or otherwise as proceeds of any of the Collateral. Except as the Collateral Agent may otherwise consent in writing, any such items which may be so
received by any Debtor will not be commingled with any other of its funds or property, but will be held separate and apart from its own funds or property and upon express trust for the Collateral
Agent for the benefit of the Benefited Parties until delivery is made to the Collateral Agent. Each Debtor will comply with the terms and conditions of any consent given by the Collateral Agent
pursuant to the foregoing sentence. 

        Upon
request by the Collateral Agent during the existence of a Default, all items or amounts which are delivered by any Debtor to the Collateral Agent on account of partial or full
payment or otherwise as proceeds of any of the Collateral shall be deposited to the credit of a deposit account (each an "Assignee Deposit Account") of
such Debtor maintained with the Collateral Agent, as security for payment of the Liabilities. No Debtor shall have any right to withdraw any funds deposited in the applicable Assignee Deposit Account.
The Collateral Agent may, from time to time, in its discretion, and shall upon request of the applicable Debtor made not more than once in any week, apply all or any of the then balance, representing
collected funds, in the Assignee Deposit Account, toward payment of the Liabilities, whether or not then due, in accordance with the terms of the Intercreditor Agreement, and the Collateral Agent may,
from time to time, in its discretion, release all or any of such balance to the applicable Debtor. 

        During
the existence of a Default, the Collateral Agent is authorized to endorse, in the name of the applicable Debtor, any item, howsoever received by the Collateral Agent, representing
any payment on or other proceeds of any of the Collateral. 

        From
and after May 15, 2002, no Debtor shall maintain any Deposit Account or deposit any items or amounts in any Deposit Account, except (i) Deposit Accounts maintained
with the Collateral Agent, (ii) Permitted Deposit Accounts and (iii) Deposit Accounts as to which such Debtor, the Collateral Agent and the depository bank have entered into an agreement
that the depositary bank will comply with instructions originated by the Collateral Agent directing disposition of the funds in the account without further consent by such Debtor. 

        Each
Debtor hereby appoints the Collateral Agent as the attorney-in-fact for such Debtor for the purpose of carrying out the provisions of this Agreement and
taking any action and executing or completing any instruments which the Collateral Agent may deem reasonably necessary or advisable to accomplish the purposes hereof, which appointment as
attorney-in-fact is irrevocable and coupled with an interest; provided that the Collateral Agent shall not exercise its rights
as such attorney-in-fact unless a Default exists. 

        5.    Certificates, Schedules and Reports.    Each Debtor will, from time to time, deliver to the Collateral Agent and
any Benefited Party such schedules, certificates and reports respecting all or any of the Collateral at the time subject to the security interest hereunder, and the items or amounts received by such
Debtor in full or partial payment of any of the Collateral, as the Collateral Agent or such Benefited Party may reasonably request. 

        6.    Agreements of the Debtors.    Each Debtor (a) will, from time to time, deliver to the Collateral Agent
such financing statements and other documents (and pay the cost of filing or recording the same 

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in all public offices reasonably deemed appropriate by the Collateral Agent) and do such other acts and things (including, without limitation, delivery to the Collateral Agent of any Instruments or
Certificated Securities which constitute Collateral), as are necessary or as the Collateral Agent may reasonably request, to establish and maintain a valid security interest in the Collateral (free of
all other liens, claims and rights of third parties whatsoever, other than Permitted Liens) to secure the payment of the Liabilities (and each Debtor hereby authorizes the Collateral Agent to file any
financing statement without its signature, to the extent permitted by applicable law, and/or to file a copy of this Agreement as a financing statement in any jurisdiction); (b) will keep
all its Inventory (other than in-transit Inventory) at, and will not maintain any place of business at any location other than, its address(es) shown on  Schedules I and II hereto or at such other addresses of which such Debtor shall have given the
Collateral Agent not less than 10 days' prior written notice; (c) will not change its state of organization or incorporation or its name, identity or corporate structure such that any
financing statement filed to perfect the Collateral Agent's interests under this Agreement would become seriously misleading, unless such Debtor shall have given the Collateral Agent not less than
30 days' prior notice of such change; (d) will keep its records concerning the Non-Tangible Collateral in such a manner as will enable the Collateral Agent or its designees
to determine at any time the status of the Non-Tangible Collateral; (e) will furnish the Collateral Agent such information concerning such Debtor, the Collateral and the Account
Debtors of such Debtor as the Collateral Agent may from time to time reasonably request; (f) will, upon request of the Collateral Agent, stamp on its records concerning the Collateral and add
on all Chattel Paper constituting a portion of the Collateral, a notation, in form satisfactory to the Collateral Agent, of the security interest of the Collateral Agent hereunder; (g) without
limiting the provisions of Section 6.04 of the Credit Agreement, will at all times keep all its Inventory and other Goods insured under policies
maintained with reputable, financially sound insurance companies against loss, damage, theft and other risks to such extent as is customarily maintained by companies similarly situated, and cause all
such policies to provide that loss thereunder shall be payable to the Collateral Agent as its interest may appear (it being understood that (A) so long as no Default shall be existing, the
Collateral Agent shall deliver any proceeds of such insurance which may be received by it to such Debtor and (B) whenever a Default shall be existing, the Collateral Agent may apply any
proceeds of such insurance which may be received by it toward payment of the Liabilities, whether or not due, in accordance with the terms of the Intercreditor Agreement) and such policies or
certificates thereof
shall, if the Collateral Agent so requests, be deposited with or furnished to the Collateral Agent; (h) will take such actions as are reasonably necessary to keep its Inventory in good repair
and condition, ordinary wear and tear excepted; (i) will take such actions as are reasonably necessary to keep its Equipment in good repair and condition and in good working or running order,
ordinary wear and tear excepted; (j) will promptly pay when due all license fees, registration fees, taxes, assessments and other charges which may be levied upon or assessed against the
ownership, operation, possession, maintenance or use of its Equipment and other Goods (as applicable); provided that such Debtor shall not be required
to pay any such fee, tax, assessment or other charge if the validity thereof is being contested by such Debtor in good faith by appropriate proceedings; (k) will, promptly upon request of the
Collateral Agent, (I) cause the security interest of the Collateral Agent to be noted on each certificate of title covering Equipment specified by the Collateral Agent and (II) deliver
all such certificates to the Collateral Agent or its designee; (l) will take all steps reasonably necessary to protect, preserve and maintain all of its rights in the Collateral;
(m) will keep all of such Debtor's Deposit Accounts and Investment Property in the continental United States; (n) will permit the Collateral Agent and its designees, from time to time,
on reasonable notice and at reasonable times and intervals during normal business hours (or at any time without notice during the existence of a Default) to inspect such Debtor's Inventory and other
Goods, and to inspect, audit and make copies of and extracts from all records and other papers in the possession of such Debtor pertaining to the Collateral and the Account Debtors, and will, upon
reasonable request of the Collateral Agent during the existence of a Default, deliver to the Collateral Agent all of such records and papers; (o) will not create or permit to exist any lien on
or security interest in any Collateral other than Permitted Liens 

7

 

and liens and security interests in favor of the Collateral Agent; and (p) will, promptly upon any officer of such Debtor obtaining knowledge that such Debtor has acquired a commercial tort
claim (as defined in Section 9-102 of the UCC), notify the Collateral Agent in a writing signed by such Debtor of the details of such commercial tort claim and grant to the
Collateral Agent in such writing a security interest therein and in the proceeds thereof, with such writing to be in form and substance reasonably satisfactory to the Collateral Agent. 

        Whenever
a Default shall be existing, the Collateral Agent shall have the right to bring suit to enforce any or all of the Intellectual Property or licenses thereunder, in which event
the applicable Debtor shall at the request of the Collateral Agent do any and all lawful acts and execute any and all proper documents required by the Collateral Agent in aid of such enforcement and
such Debtor shall promptly, upon demand, reimburse and indemnify the Collateral Agent for all Costs and Expenses. Notwithstanding the foregoing, neither the Collateral Agent nor any other Benefited
Party shall have any obligation or liability regarding the Collateral or any thereof by reason of, or arising out of, this Agreement. 

        7.    Default.    (a) Whenever a Default shall be existing, the Collateral Agent may exercise from time to time
any rights and remedies available to it under the UCC and any other applicable law (in addition to those described below). 

        (b)  Each
Debtor agrees, in case of Default, (i) to assemble, at its expense, all its Inventory and other Goods (other than Fixtures) at a convenient place or places
acceptable to the Collateral Agent, and (ii) at the Collateral Agent's request, to execute all such documents and do all such other things which
may be necessary or desirable in order to enable the Collateral Agent or its nominee to be registered as owner of the Intellectual Property with any competent registration authority. 

        (c)  Notice
of the intended disposition of any Collateral may be given by first-class mail, hand-delivery (through a delivery service or otherwise), facsimile or
E-mail, and shall be deemed to have been "sent" upon deposit in the United States mail with adequate postage properly affixed, upon delivery to an express delivery service or upon the
electronic submission through telephonic or Internet services, as applicable. Each Debtor hereby agrees and acknowledges that (i) with respect to Collateral that is: (A) perishable or
threatens to decline speedily in value or (B) is of a type customarily sold on a recognized market, no notice of disposition need be given; and (ii) with respect to Collateral not
described in clause (i) above, notification sent after default and ten days before any proposed disposition provides notice with a reasonable
time before disposition. 

        (d)  Each
Debtor hereby agrees and acknowledges that a commercially reasonable disposition of Inventory, Equipment, Computer Hardware and Software or Intellectual Property
may be by lease or license of, in addition to the sale of, such Collateral. Each Debtor further agrees and acknowledges that a disposition (i) made in the usual manner on any recognized market,
(ii) at the price current in any recognized market at the time of disposition or (iii) in conformity with reasonable commercial practices among dealers in the type of property subject to
the disposition shall, in each case, be deemed commercially reasonable. 

        (e)  Any
cash proceeds of any disposition by the Collateral Agent of any of the Collateral shall be applied by the Collateral Agent to payment of Costs and Expenses and
thereafter to the payment of any and all of the other Liabilities in accordance with the terms of the Intercreditor Agreement, and thereafter any surplus will be paid to the applicable Debtor or as a
court of competent jurisdiction shall direct. The Collateral Agent need not apply or pay over for application noncash proceeds of collection and enforcement unless (i) the failure to do so
would be commercially unreasonable and (ii) the applicable Debtor has provided the Collateral Agent with a written demand to apply or pay over such noncash proceeds on such basis. 

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        8.    Grant of License; etc.    

        (a)  The
Collateral Agent, on behalf of the Benefited Parties, hereby grants a license, to the extent that the Collateral Agent has the power and right to grant such license
without the consent of any third party other than the Company or any Affiliate thereof, to each Person (other than the Company or any of its Subsidiaries) which is a party to a Permitted Accounts
Receivables Financing Facility (the "Receivables Purchasers") to use the trademarks, registered trademarks, trademark applications, service marks, registered service marks, service mark applications,
patents, patent applications, trade names, fictitious names, inventions, designs, trade secrets, goodwill, registrations, copyrights, copyright applications, permits, licenses and franchises, in each
case to the extent any of the foregoing pertains to
the Excluded Assets (collectively the "Receivables Intellectual Property"), in the advertising for sale and selling of any of the Excluded Assets, or exercising of any other remedies pursuant to the
applicable Permitted Accounts Receivable Financing Facility; provided that no such licensee shall exercise such license except upon both (i) the
occurrence and continuation of a default under the applicable Permitted Accounts Receivables Financing Facility and (ii) after giving prior written notice thereof to the Company and the
Collateral Agent. 

        (b)  The
Collateral Agent, on behalf of the Benefited Parties, hereby acknowledges and agrees that the license granted hereby shall survive and continue in the Receivables
Intellectual Property notwithstanding the exercise by the Collateral Agent of its default remedies in respect of the Collateral upon the occurrence and during the continuance of an Event of Default. 

        (c)  The
Debtors and the Collateral Agent, on behalf of the Benefited Parties, hereby agree that, without the prior written consent of the Receivables Purchasers (or, if at
any time there is more than one Receivables Purchaser, the requisite number of Receivables Purchasers required to amend the applicable Permitted Accounts Receivable Financing Facility), they will not
amend the definition of "Excluded Assets" or otherwise amend, supplement or modify this Agreement or any other Collateral Document in a manner that materially impacts the ability of (i) the
Debtors to service and/or monitor the Transferred Accounts or (ii) the Receivables Purchasers to exercise default remedies in respect of any other item included in the Excluded Assets. 

        (d)  The
Receivables Purchasers shall be third-party beneficiaries of this Section 8. 

This
Section 8 may not be amended without the written consent of the "Administrative Agent" as defined in the Receivables Sale and Contribution
Agreement. 

        9.    General.    The Collateral Agent shall be deemed to have exercised reasonable care in the custody and
preservation of any of the Collateral in its possession if it takes such action for that purpose as any applicable Debtor requests in writing, but failure of the Collateral Agent to comply with any
such request shall not of itself be deemed a failure to exercise reasonable care, and no failure of the Collateral Agent to preserve or protect any rights with respect to the Collateral against prior
parties, or to do any act with respect to the preservation of the Collateral not so requested by any Debtor, shall be deemed a failure to exercise reasonable care in the custody or preservation of the
Collateral. 

        Any
notice hereunder shall be in writing (including facsimile transmission) and shall be sent to the applicable party at the address of its chief executive office shown on  Schedule I (or, in the case
of the Collateral Agent, underneath its signature hereto) or at such other address as such party may have designated
as its address for such purpose by (i) written notice received by the Collateral Agent or (ii) in the case of a change of the Collateral Agent's address, written notice received by the
Company (which shall be conclusively presumed to have been received by all other parties). 

        No
delay on the part of the Collateral Agent in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by the Collateral Agent of any
right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy. 

9

 

        Unless
released in writing by the Agent, this Agreement shall remain in full force and effect until all Liabilities have been paid in full and all commitments to create Liabilities have
terminated. If at any time all or any part of any payment theretofore applied by the Collateral Agent or any other Benefited Party to any of the Liabilities is or must be rescinded or returned by the
Collateral Agent or any other Benefited Party for any reason whatsoever (including, without limitation, the insolvency, bankruptcy or reorganization of any Debtor), such Liabilities shall, for the
purposes of this Agreement, to the extent that such payment is or must be rescinded or returned, be deemed to have continued in existence, notwithstanding such application by the Collateral Agent or
such Benefited Party, and this Agreement shall continue to be effective or be reinstated, as the case may be, as to such Liabilities, all as though such application by the Collateral Agent or such
Benefited Party had not been made. 

        This
Agreement shall be construed in accordance with and governed by the laws of the State of California applicable to contracts made and to be performed entirely within such State
(except to the extent that, pursuant to California law, the perfection, the effect of perfection or nonperfection or the priority of any security interest granted hereunder may be determined in
accordance with the laws of a different jurisdiction). Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if
any provision of this Agreement shall be prohibited by or invalid under applicable 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 Agreement. 

        This
Agreement shall remain in full force and effect until the earlier to occur of (a) the payment in full in cash of all Liabilities and the termination of all commitments to
create Liabilities and (b) the Collateral Release Date. Upon any such termination, the Collateral Agent will, upon any Debtor's request and at such Debtor's sole expense, (i) deliver to
such Debtor, without any representation, warranty or recourse of any kind whatsoever, all of such Debtor's Collateral held by the Collateral Agent hereunder as shall not have been sold or otherwise
applied pursuant to the terms hereof, and (ii) execute and deliver to such Debtor such documents as such Debtor shall reasonably request to evidence such termination and the release of any
security interest granted hereby. If the Collateral Agent reasonably determines that it is permitted to release any Collateral in accordance with Section 3(f) or 9(g) of the Intercreditor
Agreement, then the Collateral Agent will, upon any Debtor's request and at such Debtor's sole expense, execute and deliver such releases as may be necessary to terminate of record the Collateral
Agent's security interest (for the benefit of the Benefited Parties) in such Collateral. 

        The
rights and privileges of the Collateral Agent hereunder shall inure to the benefit of its successors and assigns. 

        This
Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, and each such counterpart shall be deemed to be an original,
but all such counterparts shall together constitute one and the same Agreement. At any time after the date of this Agreement, one or more additional Persons may become parties hereto by executing and
delivering a counterpart to the Collateral Agent of this Agreement (including supplements to the Schedules hereto). Immediately upon such execution and delivery (and without any further action), each
such additional Person will become a party to, and will be bound by all the terms of, this Agreement. 

        ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER FINANCING AGREEMENT, SHALL BE BROUGHT AND MAINTAINED
EXCLUSIVELY IN THE COURTS OF THE STATE OF CALIFORNIA OR IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT
AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE COLLATERAL AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER  

10

 

 PROPERTY MAY BE FOUND OR IN ANY JURISDICTION IN WHICH A BANKRUPTCY, INSOLVENCY OR OTHER SIMILAR LEGAL OR EQUITABLE PROCEEDING IS PENDING AGAINST ANY ONE OR MORE OF THE DEBTORS. EACH DEBTOR HEREBY
EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA AND OF THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA FOR THE PURPOSE OF ANY
SUCH LITIGATION AS SET FORTH ABOVE. EACH DEBTOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, TO THE ADDRESS SET FORTH ON  SCHEDULE I
HERETO (OR SUCH OTHER ADDRESS AS IT SHALL HAVE SPECIFIED IN WRITING TO THE COLLATERAL AGENT AS ITS ADDRESS FOR NOTICES HEREUNDER) OR
BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF CALIFORNIA. EACH DEBTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT ANY
DEBTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF
EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, SUCH DEBTOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND EACH OTHER FINANCING
AGREEMENT.

        EACH DEBTOR, THE COLLATERAL AGENT AND (BY ACCEPTING THE BENEFITS HEREOF) EACH OTHER BENEFITED PARTY HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER FINANCING AGREEMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN
CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREE
THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

11

 

        IN
WITNESS WHEREOF, this Agreement has been duly executed as of the day and year first above written. 

	 	 	K2 INC.
	

 	
 	

By:	
 	

 	

 
	 	 	 	 	

	 	 	 	 	Title:	 
	 	 	 	 	 	

	

 	
 	

SHAKESPEARE COMPANY, LLC

SHAKESPEARE CONDUCTIVE FIBERS, LLC

SITCA CORPORATION

K2 CORPORATION

KATIN, INC.

PLANET EARTH SKATEBOARDS, INC.

K-2 INTERNATIONAL, INC.

MORROW SNOWBOARDS INC.

SMCA, INC.

STEARNS INC.

K2 BIKE INC.

RIDE, INC.
	

 	
 	

By:	
 	

 	

 
	 	 	 	 	

	 	 	 	 	Title:	 
	 	 	 	 	 	

	

 	
 	

BANK OF AMERICA, N.A.,

as Collateral Agent
	

 	
 	

By:	
 	

 	

 
	 	 	 	 	

	 	 	 	 	Title:	 
	 	 	 	 	 	

	

 	
 	

Agency Management

CA9-706-11-03

555 S. Flower Street, 11th Floor

Los Angeles, CA 90071

Attention: Gina Meador

12

 

	 	 	ADDITIONAL SIGNATURE PAGE to the Security Agreement dated as of March 28, 2002 (the "Security Agreement") among K2 Inc. (the "Company"), Bank of America, N.A., as Collateral Agent, and various Subsidiaries of the Company.
	

 	
 	

The undersigned is executing a counterpart of this Security Agreement for purposes of becoming a party hereto (and attached hereto are supplemental schedules setting forth information with respect to the undersigned required to make the
representations and warranties with respect to the undersigned set forth in this Security Agreement accurate as of the date hereof):
	

 	
 	

[	

]
	 	 	

	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

13

 
 

SCHEDULE I
  TO SECURITY AGREEMENT    
  

Corporate Information  

[TO BE COMPLETED FOR ALL DEBTORS] 

Debtor's
federal employment identification number: 

Debtor's
state organizational identification
number:                                       

Debtor's
state of organization: 

Debtor's
true and correct name as registered in its state of organization: 

Debtor's
chief executive office: 

[Address]

Attention:

Facsimile:

E-mail: 

Debtor's
principal place of business: 

        [Address]

 
 

SCHEDULE II
  TO SECURITY AGREEMENT    
  

Addresses Of All Locations At Which Goods Are Located
  (Specify whether such location is owned or leased by the applicable Debtor) 

 
 

SCHEDULE III
  TO SECURITY AGREEMENT    
  

Tradenames, etc.  

  
 

    SCHEDULE IV
  TO SECURITY AGREEMENT    
  

Intellectual Property; Trademarks; Patents; Copyrights; etc.  

QuickLinks

SCHEDULE I TO SECURITY AGREEMENT

SCHEDULE II TO SECURITY AGREEMENT

SCHEDULE III TO SECURITY AGREEMENT

SCHEDULE IV TO SECURITY AGREEMENTExhibit 10(h)  

PLEDGE AGREEMENT  

        THIS PLEDGE AGREEMENT (this "Agreement") dated as of March 28, 2002 is among K2 INC., a Delaware
corporation (the "Company"), each subsidiary of the Company listed on the signature pages hereof, such other subsidiaries of the Company as from time to
time become parties hereto (collectively, including the Company, the "Pledgors" and each individually a
"Pledgor") and BANK OF AMERICA, N.A. ("Bank of America"), in its capacity as collateral agent (in such
capacity, the "Collateral Agent") under the Intercreditor Agreement referred to below. 

W I T N E S S E T H:  

        WHEREAS, the Company, various financial institutions (the "Lenders") and Bank of America, as Administrative Agent
(in such capacity, the "Administrative Agent"), have entered into a Credit Agreement dated as of December 21, 1999 (as amended, restated or
otherwise modified from time to time, the "Credit Agreement"); 

        WHEREAS,
the Company is a party to separate Note Agreements dated as of October 15, 1992 (as amended, restated or otherwise modified from time to time, the
"1992 Note Agreements") with various purchasers (the "1992 Noteholders"); 

        WHEREAS,
the Company is a party to a Note Purchase Agreement dated as of December 1, 1999 (as amended, restated or otherwise modified from time to time, the
"1999 Note Agreement"; together with the 1992 Note Agreements, the "Note Agreements") with various
purchasers (the "1999 Noteholders"; together with the 1992 Noteholders, collectively the "Noteholders"); 

        WHEREAS,
each of the Pledgors (other than the Company) has guarantied all obligations of the Company under the Credit Agreement, the Note Agreements and certain other financing
arrangements referenced below; 

        WHEREAS,
pursuant to (i) the Continuing Guaranty dated August 19, 2000, (ii) the Amended and Restated Continuing Guaranty (Multicurrency) dated March 28, 2002
and (iii) the Continuing Guaranty (Multicurrency) dated July 31, 1998, the Company has guaranteed all of the obligations of K-2 Corporation, K2 Ski Sport + Mode
GmbH and Shakespeare Company (UK) Limited, respectively, under various financing arrangements made available to such entities by Bank of America and various subsidiaries and affiliates thereof; 

        WHEREAS,
pursuant to the Continuing Guaranty (Foreign Currency) dated October 29, 1998, the Company has guaranteed all of the obligations of K2 Japan Co. Ltd. under a
financing arrangement made available to such entity by Union Bank of California, N.A.; 

        WHEREAS,
pursuant to an Amended and Restated Intercreditor Agreement dated as of the date hereof (as amended, restated or otherwise modified from time to time, the
"Intercreditor Agreement"), the Administrative Agent, on behalf of itself and the Lenders, the Noteholders, various other parties from time to time
thereto and the Collateral Agent have agreed that (i) the Benefited Obligations (as defined in the Intercreditor Agreement) shall be secured and guarantied pari
passu and (ii) Bank of America shall act as collateral agent for the Benefited Parties (as defined in the Intercreditor Agreement); and 

        WHEREAS,
the Benefited Obligations of each Pledgor are to be secured pursuant to this Agreement; 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

        1.    Definitions.    When used herein, (a) the terms Benefited Obligations, Benefited
Parties, Collateral Release Date, Event of Default, Financing Agreement and Person shall have the respective meanings assigned
thereto in the Intercreditor Agreement; (b) references to agreements (including this 

 

Agreement) and other contractual instruments shall be deemed to include all subsequent amendments and other modifications thereto, but only to the extent such amendments and other modifications are
not prohibited by the terms of any Financing Agreement; and (c) the following terms have the following meanings (such meanings to be applicable to both the singular and plural forms of such
terms): 

        Administrative Agent—see the Recitals. 

        Agreement—see the Preamble. 

        Bank of America—see the Preamble. 

        Collateral—see Section 2. 

        Collateral Agent—see the Preamble. 

        Company—see the Preamble. 

        Credit Agreement—see the Recitals. 

        Default means the occurrence of any of the following events: (a) any Unmatured Event of Default under Section 8.01(g) of the
Credit Agreement, Section 6.1(i), (j) or (k) of the 1992 Note Agreements or Section 11(h) of the 1999 Note Agreement; (b) any Event of Default; or (c) any
warranty of any Pledgor herein is untrue or misleading in any material respect and, as a result thereof, the Collateral Agent's security interest for the benefit of the Benefited Parties in any
material portion of the Collateral is not perfected or the Collateral Agent's rights and remedies with respect to any material portion of the Collateral are materially impaired or otherwise materially
adversely affected. 

        Foreign Issuer means each Issuer which is a Foreign Subsidiary (as such term is defined in the Credit Agreement and each of the Note
Agreements). 

        Intercreditor Agreement—see the Recitals. 

        Issuer means the issuer of any of the shares of stock or other securities representing all or any portion of the Collateral. 

        Lenders—see the Recitals. 

        Liabilities means, as to each Pledgor, all Benefited Obligations of such Pledgor. 

        1992 Note Agreements—see the Recitals. 

        1992 Noteholders—see the Recitals. 

        1999 Note Agreement—see the Recitals. 

        1999 Noteholders—see the Recitals. 

        Note Agreement—see the Recitals. 

        Noteholder—see the Recitals. 

        Permitted Liens means (i) the security interest created hereunder and (ii) inchoate tax and ERISA liens. 

        Pledgor—see the Preamble. 

        Unmatured Event of Default means any event which if it continues uncured will, with lapse of time or notice or both, constitute an Event
of Default. 

2

 

        2.    Pledge.    As security for the payment of all Liabilities, each Pledgor hereby pledges to the Collateral Agent
for the benefit of the Benefited Parties, and grants to the Collateral Agent for the benefit of the Benefited Parties a continuing security interest in, all of the following: 

        A.    All
of the shares of stock or other securities set forth under such Pledgor's name on Schedule I hereto, all of the
certificates and/or instruments representing such shares of stock and other securities, and all cash, securities, dividends, rights and other property at any time and from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such shares or other securities; 

        B.    All
additional shares of stock of any of the Issuers listed in Schedule I hereto (as such schedule may be
supplemented from time to time) at any time and from time to time acquired by such Pledgor in any manner, all of the certificates representing such additional shares, and all cash, securities,
dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares;  provided that in the case
of Foreign Issuers, the Collateral Agent's security interest hereunder shall not at any time extend to more than 65% of the
outstanding shares of any class of stock of any such Foreign Issuer; 

        C.    All
other property hereafter delivered to the Collateral Agent in substitution for or in addition to any of the foregoing, all certificates and instruments representing
or evidencing such property, and all cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or
in exchange for any or all thereof; and 

        D.    All
products and proceeds of all of the foregoing. 

All
of the foregoing are herein collectively called the "Collateral". 

        Each
Pledgor agrees to deliver to the Collateral Agent, promptly upon receipt and in due form for transfer (i.e., endorsed in blank or accompanied by stock or bond powers executed in
blank), any Collateral (other than dividends which such Pledgor is entitled to receive and retain pursuant to Section 5 hereof) which may at any
time or from time to time be in or come into the possession or control of such Pledgor; and prior to the delivery thereof to the Collateral Agent, such Collateral shall be held by such Pledgor
separate and apart from its other property and in express trust for the Collateral Agent and for the benefit of the Benefited Parties. 

        3.    Warranties; Further Assurances.    Each Pledgor warrants to the Collateral Agent for the benefit of each
Benefited Party that: (a) such Pledgor is (or at the time of any future delivery, pledge, assignment or transfer thereof will be) the legal and equitable owner of such Pledgor's Collateral free
and clear of all liens, security interests and encumbrances of every description whatsoever other than Permitted Liens; (b) the pledge and delivery of such Pledgor's Collateral to the
Collateral Agent pursuant to this Agreement will create a valid first priority perfected security interest in such Collateral in favor of the Collateral Agent for the benefit of the Benefited Parties
(except to the extent that, with respect to any Foreign Issuer, additional steps are required under the laws of the jurisdiction of such Foreign Issuer's organization to create or perfect a security
interest or the equivalent thereof); (c) all shares of stock or other securities pledged by such Pledgor referred to in Schedule I hereto
are duly authorized, validly issued, fully paid and non-assessable; (d) as to each Issuer whose name appears in Schedule I
hereto, such
Pledgor's Collateral represents on the date hereof not less than the applicable percentage (as shown in Schedule I hereto) of the total shares of
capital stock issued and outstanding of such Issuer; and (e) the information contained in Schedule I hereto with respect to such Pledgor
is true and accurate in all respects. 

        So
long as any of the Liabilities shall be outstanding or any commitment shall exist on the part of any Benefited Party with respect to the creation of any Liabilities, each Pledgor
(i) shall deliver such 

3

 

financing statements and other documents (and pay the costs of filing and recording the same in all public offices reasonably deemed necessary or appropriate by the Collateral Agent) and do such
other acts and things, all as the Collateral Agent may from time to time reasonably request, to establish and maintain a valid, perfected security interest in the Collateral (free of all other liens,
claims and rights of third parties whatsoever, other than Permitted Liens) to secure the performance and payment of the Liabilities; (ii) will execute and deliver to the Collateral Agent such
stock powers and similar documents relating to such Pledgor's Collateral, satisfactory in form and substance to the Collateral Agent, as the Collateral Agent may reasonably request; and
(iii) will furnish each Benefited Party such information concerning such Pledgor's Collateral as such Benefited Party may from time to time reasonably request, and will permit any Benefited
Party or any designee of a Benefited Party, from time to time at reasonable times and on reasonable notice, to inspect, audit and make copies of and extracts from all records and other papers in the
possession of such Pledgor which pertain to the Collateral, and will, upon the reasonable request of the Collateral Agent, deliver to the Collateral Agent all of such records and papers. 

        4.    Holding in Name of Collateral Agent, etc.    The Collateral Agent may from time to time during the existence of
a Default, without notice to any Pledgor, take all or any of the following actions: (a) transfer all or any part of such Pledgor's Collateral into the name of the Collateral Agent or any
nominee or sub-agent for the Collateral Agent, with or without disclosing that such Collateral is subject to the lien and security interest hereunder; (b) notify the parties
obligated on any of the Collateral to make payment to the Collateral Agent of any amounts due or to become due thereunder; (c) endorse any checks, drafts or other writings in the name of the
applicable Pledgor to allow collection of the Collateral; (d) enforce collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof, or
compromise or renew for any period (whether or not longer than the original period) any obligation of any nature of any party with respect thereto; and (e) take control of any proceeds of the
Collateral. The Collateral Agent may at any time and from time to time appoint one or more sub-agents or nominees for the purpose of retaining physical possession of the Collateral. 

        5.    Voting Rights, Dividends, etc.    (a) So long as the Collateral Agent has not given the notice referred
to in paragraph (b) below: 

        A.    The
Pledgors shall be entitled to exercise any and all voting or consensual rights and powers and stock purchase or subscription rights relating or pertaining to the
Collateral or any part thereof for any purpose; provided that each Pledgor agrees that it will not exercise any such right or power in any manner which
would have a material adverse effect on the Collateral Agent's rights with respect to any material portion of the Collateral. 

        B.    The
Pledgors shall be entitled to receive and retain any and all lawful dividends payable in respect of the Collateral which are paid in cash by any Issuer if such
dividends are permitted by each of the Financing Agreements, but all dividends and distributions in respect of the Collateral or any part thereof made in shares of stock or other property or
representing any return of capital, whether resulting from a subdivision, combination or reclassification of Collateral or any part thereof or received in exchange for Collateral or any part thereof
or as a result of any merger, consolidation, acquisition or other exchange of assets to which any Issuer may be a party or otherwise or as a result of any exercise of any stock purchase or
subscription right, shall be and become part of the Collateral hereunder and, if received by any Pledgor, shall be forthwith delivered to the Collateral Agent in due form for transfer (i.e., endorsed
in blank or accompanied by stock or bond powers executed in blank) to be held for the purposes of this Agreement. 

        C.    The
Collateral Agent shall execute and deliver, or cause to be executed and delivered, to the applicable Pledgor all such proxies, powers of attorney, dividend orders and
other instruments as such Pledgor may reasonably request for the purpose of enabling such Pledgor to exercise the 

4

 

rights and powers which it is entitled to exercise pursuant to clause (A) above and to receive the dividends which it is authorized to retain
pursuant to clause (B) above. 

        (b)  Upon
written notice to the Company from the Collateral Agent during the existence of a Default, and so long as the same shall be continuing, all rights and powers which
the Pledgors are entitled to exercise pursuant to Section 5(a)(A) hereof, and all rights of the Pledgors to receive and retain dividends pursuant
to Section 5(a)(B) hereof, shall forthwith cease, and all such rights and powers shall thereupon become vested in the Collateral Agent which
shall have, during the existence of such Default, the sole and exclusive authority to exercise such rights and powers and to receive such dividends. Any and all money and other property paid over to
or received by the Collateral Agent pursuant to this paragraph (b) shall be retained by the Collateral Agent as additional Collateral hereunder
and applied in accordance with the provisions hereof. 

        6.    Remedies.    Whenever a Default exists, the Collateral Agent may exercise from time to time any rights and
remedies available to it under the Uniform Commercial Code as in effect in California or otherwise available to it. Without limiting the foregoing, whenever a Default exists the Collateral Agent
(a) may, to the fullest extent permitted by applicable law, without notice, advertisement, hearing or process of law of any kind, (i) sell any or all of the Collateral, free of all
rights and claims of the Pledgors therein and thereto, at any public or private sale or brokers' board and (ii) bid for and purchase any or all of the Collateral at any such public sale and
(b) shall have the right, for and in the name, place and stead of the applicable Pledgor, to execute endorsements, assignments, stock powers and other instruments of conveyance or transfer with
respect to all or any of the Collateral. Each Pledgor hereby expressly waives, to the fullest extent permitted by applicable law, any and all notices, advertisements, hearings or process of law in
connection with the exercise by the Collateral Agent of any of its rights and remedies during the existence of a Default. If any notification of intended disposition of any of the Collateral is
required by law, such notification, if mailed, shall be deemed reasonably and properly given if mailed, postage prepaid to the address of the applicable Pledgor set forth below its signature hereto
(or such other address as it shall have specified to the Collateral Agent
as its address for notices hereunder) at least ten (10) days before such disposition. Any proceeds of any of the Collateral may be applied by the Collateral Agent to the payment of expenses in
connection with the Collateral, including, without limitation, reasonable attorneys' fees and legal expenses, and any balance of such proceeds may be applied by the Collateral Agent toward the payment
of the Liabilities in accordance with the terms of the Intercreditor Agreement (and, after payment in full of all Liabilities, any excess shall be delivered to the applicable Pledgor or as a court of
competent jurisdiction shall direct). 

        The
Collateral Agent is hereby authorized to comply with any limitation or restriction in connection with any sale of Collateral as it may be advised by counsel is necessary in order to
(a) avoid any violation of applicable law (including, without limitation, compliance with such procedures as may restrict the number of prospective bidders and purchasers and/or further
restrict such prospective bidders or 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 (b) obtain any required approval of the sale or of the purchase by any governmental regulatory authority or official, and each Pledgor agrees that such compliance shall
not result in such sale being considered or deemed not to have been made in a commercially reasonable manner and that the Collateral Agent shall not be liable or accountable to any Pledgor for any
discount allowed by reason of the fact that such Collateral is sold in compliance with any such limitation or restriction. 

        Each
Pledgor hereby appoints the Collateral Agent as the attorney-in-fact for such Pledgor for the purpose of carrying out the provisions of this Agreement and
taking any action and executing or completing any instruments which the Collateral Agent may deem reasonably necessary or advisable to accomplish the purposes hereof, which appointment as
attorney-in-fact is irrevocable and coupled with 

5

 

an interest; provided that the Collateral Agent shall not exercise its rights as such attorney-in-fact unless a Default exists. 

        7.    Restrictions on Pledge.    The parties hereto acknowledge that K2 Finance Company, LLC (the "Receivables
Seller"), various affiliates of the Receivables Seller and certain of its subsidiaries have entered into a structured receivables financing transaction with Redwood Receivables Corporation ("Redwood")
and General Electric Capital Corporation (the "Redwood Agent") pursuant to a Receivables Purchase and Servicing Agreement (the "Purchase Agreement"). To induce Redwood and the Redwood Agent to permit
the pledge of the capital stock of K2 Receivables Corporation ("SPC") (the "Pledged Collateral"), the parties hereto agree to the following limitations. Capitalized terms used in this Section 7
shall have the meanings ascribed to such terms in the Purchase Agreement. 

        (a)  Anything
herein or in the Parent Revolver, 1992 Note Agreement or 1994 Note Agreement to the contrary notwithstanding: 

          (i)  Until
91 days after the date on which the Purchaser Interest and all other amounts owed under the Related Documents have been paid in full in cash in accordance
with the terms of the Related
Documents, the Collateral Agent, for itself and as agent for the Benefited Parties, agrees that, upon exercising its rights with respect to the Pledged Collateral, it will not take any action with
respect thereto which is adverse to the interests of Redwood and/or the Redwood Agent, including, without limitation, (A) causing the Receivables Seller to violate or breach any term or
provision in any Related Documents, (B) making any dividends or distributions on the Pledged Collateral, (C) amending or altering any of the Receivables Seller's organizational
documents, or (D) causing the Receivables Seller to incur any debt, other than, in each case, as may be allowed in the Related Documents;  provided that any prepayment or termination of the Purchase
Agreement in accordance with the terms of the Related Documents shall not be deemed adverse
to the interests of Redwood and/or the Redwood Agent; 

        (ii)  If
the Collateral Agent or any other Benefited Party receives any payments or funds relating to the Receivables (the "Receivables Assets") prior to the date on which
the Purchaser Interest and all other amounts owed under the Related Documents have been paid in full in cash in accordance with the terms of the Related Documents, such Person shall hold such payments
or funds in trust for the benefit of the Redwood Agent, and shall promptly transfer such payments or funds to the Redwood Agent; 

        (iii)  The
provisions of this Section 7 shall continue to be effective or be reinstated, as the case may be, if at any
time any payment of the Purchaser Interest or any other amount owed under the Related Documents is rescinded or must otherwise be returned by the Redwood Agent or the Purchasers upon the insolvency,
bankruptcy or reorganization of the Receivables Seller, SPC or otherwise, all as though such payment had not been made; and 

        (iv)  Prior
to the date on which the Purchaser Interest and all other amounts owed under the Related Documents have been indefeasibly paid in full in cash in accordance with
the terms of the Related Documents, neither the Collateral Agent nor any other Benefited Party shall object to or contest in any administrative, legal or equitable action or proceeding (including,
without limitation, any insolvency, bankruptcy, receivership, liquidation, reorganization, winding up, readjustment, composition or other similar proceeding relating to Parent Guarantor, any
Originator, SPC or the Receivables Seller or their respective property) or object to or contest in any other manner (A) the interests of the Receivables Seller and its successors and assigns in
any of the Receivables Assets transferred by each Originator or its affiliates to the Receivables Seller pursuant to the Related Documents and/or (B) the interests of the Redwood Agent or the
Purchasers in the Receivables Assets. Neither the Collateral Agent nor any other Benefited Party shall object to or contest in any manner the receipt of any payment by the Redwood Agent and/or the
Purchasers with respect to the Receivables Assets for the satisfaction of the Purchaser Interest. 

6

 

        (b)  The
Redwood Agent and Redwood shall be third-party beneficiaries with respect to this Section 7. 

        (c)  So
long as the Purchaser Interest and all other amounts owed under the Related Documents have not been indefeasibly paid in full in cash in accordance with the terms of
the Related Documents, this  Section 7 shall not be amended, modified or supplemented without the prior written consent of the Redwood Agent, which consent shall not be
unreasonably withheld, and the provisions of this Section 7 shall be contained in any agreement that amends and restates this Agreement. The
Collateral Agent and, by accepting the benefits hereof, each of the other Benefited Parties agree that no such party shall enter into any additional agreement that would be contrary to the provisions
of this Section 7. 

        (d)  Until
the Purchaser Interest and all other amounts owed under the Related Documents have been indefeasibly paid in full in cash in accordance with the terms of the
Related Documents, the Collateral Agent shall not sell, transfer or otherwise assign their its in the Pledged Collateral unless such assignee agrees in writing to be bound by this Section and a copy
of such writing has been delivered to the Redwood Agent. 

        8.    General.    The Collateral Agent shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral if it takes such action for that purpose as the applicable Pledgor shall request in writing, but failure of the Collateral Agent to comply with any such request shall
not of itself be deemed a failure to exercise reasonable care, and no failure of the Collateral Agent to preserve or protect any rights with respect to the Collateral against prior parties shall be
deemed a failure to exercise reasonable care in the custody or preservation of any Collateral. 

        No
delay on the part of the Collateral Agent in exercising any right, power or remedy shall operate as a waiver thereof, and no single or partial exercise of any such right, power or
remedy shall preclude any other or further exercise thereof, or the exercise of any other right, power or remedy. No amendment, modification or waiver of, or consent with respect to, any provision of
this Agreement shall be effective unless the same shall be in writing and signed and delivered by the Collateral Agent, and then such amendment, modification, waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given. 

        All
obligations of the Pledgors and all rights, powers and remedies of the Benefited Parties expressed herein are in addition to all other rights, powers and remedies possessed by them,
including, without limitation, those provided by applicable law or in any other written instrument or agreement relating to any of the Liabilities or any security therefor. 

        This
Agreement shall be construed in accordance with and governed by the internal laws of the State of California. Wherever possible each provision of this Agreement shall be interpreted
in such manner as to be effective and valid under applicable law, but if any provision of this 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 Agreement. 

        This
Agreement shall be binding upon the Pledgors and the Collateral Agent and their respective successors and assigns, and shall inure to the benefit of the Pledgors and the Collateral
Agent and the successors and assigns of the Collateral Agent. 

        This
Agreement shall remain in full force and effect until the earlier to occur of (a) the payment in full in cash of all Liabilities and the termination of all commitments to
create Liabilities and (b) the Collateral Release Date. Upon any such termination, the Collateral Agent will, upon any Pledgor's request and at such Pledgor's sole expense, (i) deliver
to such Pledgor, without any representation, warranty or recourse of any kind whatsoever, all of such Pledgor's Collateral held by the Collateral Agent hereunder as shall not have been sold or
otherwise applied pursuant to the terms hereof, and (ii) execute and deliver to such Pledgor such documents as such Pledgor shall reasonably request to 

7

 

evidence such termination and the release of any security interest granted hereby. If the Collateral Agent reasonably determines that it is permitted to release any Collateral in accordance with
Section 3(f) or 9(g) of the Intercreditor Agreement, then the Collateral Agent will, upon the applicable Pledgor's request and at such Pledgor's sole expense, execute and deliver such releases
as may be necessary to terminate the Collateral Agent's security interest (for the benefit of the Benefited Parties), in such Collateral. 

        This
Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, and each such counterpart shall be deemed an original but all
such counterparts shall together constitute but one and the same Agreement. At any time after the date of this Agreement, one or more additional Persons may become parties hereto by executing and
delivering to the Collateral Agent a counterpart of this Agreement together with a supplement to Schedule I hereto setting forth all relevant
information with respect to such Person as of the date of such delivery. Immediately upon such execution and delivery (and without any further action), each such additional Person will become a party
to, and will be bound by all the terms of, this Agreement. 

        ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER FINANCING AGREEMENT, SHALL BE BROUGHT AND MAINTAINED
EXCLUSIVELY IN THE COURTS OF THE STATE OF CALIFORNIA OR IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA; PROVIDED THAT ANY
SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE COLLATERAL AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE
FOUND. EACH PLEDGOR HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA AND OF THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA
FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH PLEDGOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, TO THE ADDRESS OF SUCH PLEDGOR SET
FORTH BELOW ITS SIGNATURE HERETO (OR SUCH OTHER ADDRESS AS IT SHALL HAVE SPECIFIED IN WRITING TO THE COLLATERAL AGENT AS ITS ADDRESS FOR NOTICES HEREUNDER), OR BY PERSONAL SERVICE WITHIN OR WITHOUT
THE STATE OF CALIFORNIA. EACH PLEDGOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

        EACH PLEDGOR, THE COLLATERAL AGENT AND (BY ACCEPTING THE BENEFITS HEREOF) EACH OTHER BENEFITED PARTY HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER FINANCING AGREEMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN
CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT
AND NOT BEFORE A JURY.

8

 

        IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered as of the day and year first written above. 

	 	 	K2 INC.
	

 	
 	

By:	
 	

 	

 
	 	 	 	 	

	 	 	 	 	Title:	 
	 	 	 	 	 	

	

 	
 	

4900 South Eastern Avenue

Los Angeles, CA 90040

Attention: John Rangel
	

 	
 	

SHAKESPEARE COMPANY, LLC

SITCA CORPORATION

K-2 CORPORATION

SMCA, INC.

RIDE, INC.
	

 	
 	

By:	
 	

 	

 
	 	 	 	 	

	 	 	 	 	Title:	 
	 	 	 	 	 	

	

 	
 	

4900 South Eastern Avenue

Los Angeles, CA 90040

Attention: John Rangel
	

 	
 	

BANK OF AMERICA, N.A., as Collateral Agent for the Benefited Parties
	

 	
 	

By:	
 	

 	

 
	 	 	 	 	

	 	 	 	 	Title:	 
	 	 	 	 	 	

	

 	
 	

Agency Management

CA9-706-11-03

555 S. Flower Street, 11th Floor

Los Angeles, CA 90071

Attention: Gina Meador

9

 

	 	 	Signature page for the Pledge Agreement dated as of March 28, 2002 among K2 Inc., various subsidiaries thereof, and Bank of America, N.A., as Collateral Agent for the Benefited Parties referred to
herein.
	

 	
 	

The undersigned is executing a counterpart hereof for purposes of becoming a party hereto (and attached to this signature page is a supplement to Schedule I to the Pledge Agreement setting forth all
relevant information with respect to the undersigned):
	

 	
 	

[ADDITIONAL PLEDGOR]
	

 	
 	

By:	

 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	

 	
 	

Address:

10

SCHEDULE I

TO PLEDGE AGREEMENT  

 STOCK  

	

	Pledgor
	 	Issuer
	 	Certificate No.
	 	No. of Pledged Shares
	 	Total Shares of Issuer
	 	Pledged Shares as % of Total Shares Issued and Outstanding

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]