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Prepared by MERRILL CORPORATION

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Exhibit 10(c)    
  

October 17,
2001 

K2 INC.

4900 South Eastern Avenue

Los Angeles, California 90040

Attention: John J. Rangel

            Senior Vice President, Finance 

    Re:
Credit Agreement dated as of December 21, 1999, as amended 

Ladies
and Gentlemen: 

    Reference
is made to that certain Credit Agreement dated as of December 21, 1999 (the "Agreement") among K2 Inc.
("Borrower"), the Lenders from time to time party thereto, and Bank of America, N.A., as the Administrative Agent, Issuing Lender and Swing Line Lender
(collectively, the "Lender Parties"). Terms not defined herein have the meanings assigned to them in the Agreement. 

    The
Borrower has disclosed that Events of Default will occur under Section 7.14 (Leverage Ratio) and Section 7.15 (Interest Coverage Ratio) of the Agreement for the
fiscal quarter ending September 30, 2001. The Borrower has requested a waiver of such Events of Default. 

    Please
be advised that the Lender Parties hereby waive such Events of Default under Sections 7.14 and 7.15 of the Agreement for the fiscal quarter ending September 30, 2001
only, subject to the following: 

    1.  The
waiver granted herein shall expire on November 15, 2001; provided, however, that this waiver shall
terminate immediately upon (a) the occurrence of any Event of Default under and as defined in the Senior Note Agreements that is not waived pursuant to a waiver referred to in
Paragraph 5 below, or the termination of any such waiver, (b) a breach of any of the terms of this letter, or (c) the occurrence of any other Default or Event of Default under the
Agreement. Upon the termination or expiration of this waiver, the Events of Default waived hereby shall be deemed immediately reinstated, and the Lender Parties may thereafter exercise their rights
and remedies under the Agreement with respect thereto without further notice. 

    2.  Effective
October 22, 2001, notwithstanding the definition of "Applicable Margin" in the Agreement, the Applicable Margins shall, for all purposes under the
Agreement, be as follows: 

	 
	 	 
	 
	Offshore Rate Loans and Financial Letters of Credit	 	2.50	%
	

Performance Letters of Credit	
 	

1.25	
%
	

Commitment Fee	
 	

 .50	
%

    3.  From
and after October 22, 2001, Borrower shall request Extensions of Credit under the Agreement only in the ordinary course of business. 

    4.  On
November 15, 2001 Borrower shall pay a waiver fee to the Administrative Agent for the account of each Lender approving this waiver by the time set forth
below equal to 5 basis points of such Lender's Commitment. 

    5.  As
a condition precedent to the effectiveness of this waiver, the Administrative Agent shall receive a written waiver of any Event of Default existing under and as
defined in any Senior Note Agreement and of any event that, with the giving of any notice, the passage of time, or both, would be an Event of Default thereunder for the fiscal quarter ending
September 30, 2001 or otherwise on or prior to November 15, 2001. Such waiver shall be signed by the requisite number of purchasers to be effective thereunder, shall be effective at
least until November 15, 2001 and shall be in form and substance satisfactory to the Administrative Agent. 

 

    Borrower hereby represents and warrants to the Lender Parties that, after giving effect to this waiver, no Default or Event of Default shall exist under the Agreement. 

    This
waiver is specific in time and in intent and does not constitute, nor should it be construed as, a waiver of any right, power or privilege under the Agreement, or under any
agreement, contract, indenture, document or instrument mentioned in the Agreement; nor does it preclude other or further exercise hereof or the exercise of any other right, power or privilege, nor
shall any waiver of any right, power, privilege or default hereunder, or under any agreement, contract, indenture, document or instrument mentioned in the Agreement, or constitute a waiver of any
subsequent default of the same or of any other term or provision. This letter shall not be deemed to constitute a commitment by the Administrative Agent or any Lender to approve any future amendment
to the Agreement or the terms thereof. 

    If
you consent to this waiver, please sign and fax a copy of this letter no later than 5:00 p.m. (Pacific time) on Friday, October 19,
2001 to the attention of Peter Fuad, Assistant General Counsel, at (213) 228-4994, followed by a signed
hardcopy thereof by overnight mail to Peter Fuad at: 

Peter
H. Fuad

Assistant General Counsel

Bank of America, N.A.

Mail Code CA9-706-08-02

555 South Flower Street, 8th Floor

Los Angeles, CA 90071 

    This
waiver may be signed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute
but one and the same instrument. This waiver shall not be effective until signed by the Administrative Agent, the Requisite Lenders and the Borrower and consented to by the Subsidiary Guarantors. 

	 	 	Very truly yours,
	

 	
 	
BANK OF AMERICA, N.A.,

as Administrative Agent
	

 	
 	

By	
 	

 Gina Meador

Vice President

2

 

Agreed and Accepted:  

Borrower:  

K2 INC.  

	By	 	
 John J. Rangel

Senior Vice President, Finance	 	 
	
Lenders:	
 	

 
	
BANK OF AMERICA, N.A., as Issuing

Lender, a Lender and Swing Line Lender	
 	

 
	

By	
 	

 Casey Cosgrove

Vice President

	
 	

 

	BANK ONE, N.A.	 	 
	
By:	
 	

	
 	

 
	Title:	 	
	 	 
	
UNION BANK OF CALIFORNIA, N.A.	
 	

 
	
By:	
 	

	
 	

 
	Title:	 	
	 	 
	
COMERICA WEST INCORPORATED	
 	

 
	
By:	
 	

	
 	

 
	Title:	 	
	 	 

3

 
 
 

CONSENT OF SUBSIDIARY GUARANTORS    
  

    The undersigned Subsidiary Guarantors, as party to the Master Subsidiary Guaranty dated as of December 21, 1999 (the "Master
Subsidiary Guaranty"), hereby consent to the foregoing waiver dated as of even date herewith to Credit Agreement to which this consent is attached and confirm that the Master
Subsidiary Guaranty remains in full force and effect after giving effect thereto and represent and warrant that there is no defense, counterclaim or offset of any type or nature under the Master
Subsidiary Guaranty. 

Subsidiary Guarantors:
  SHAKESPEARE COMPANY

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:	 	

	 	 	Name:	 	

	 	 	Title:	 	

4

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Exhibit 10(c)

CONSENT OF SUBSIDIARY GUARANTORSPrepared by MERRILL CORPORATION

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Exhibit 10(d)    
  

 
 

LIMITED WAIVER    
  

    THIS LIMITED WAIVER, dated as of October 22, 2001 (this "Waiver"), is entered into among  K2, INC., a
Delaware corporation, formerly known as Anthony Industries, Inc. (the "Company"), PRINCIPAL LIFE
INSURANCE COMPANY ("Principal"), MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY ("MassMutual"), LIFE
INVESTORS INSURANCE COMPANY OF AMERICA ("Life"), and MONUMENTAL LIFE INSURANCE COMPANY("Monumental" and together with Principal,
MassMutual, and Life, each a "Holder" and collectively, the "Holders"), in light of the following: 

    WHEREAS, pursuant to those separate Note Agreements, each dated as of October 15, 1992, as amended by that certain First
Amendment, dated as of May 1, 1996 and that certain Second Amendment to Note Agreements, dated as of December 1, 1999 (as so amended, collectively, the "Note Agreements"), the Company
issued $40,000,000 in aggregate principal amount of its 8.39% Senior Notes due November 30, 2004 (the "1992 Senior Notes"); 

    WHEREAS, the Holders presently hold all of the 1992 Senior Notes that remain outstanding; 

    WHEREAS, the Company has advised the Holders that it has failed to maintain the minimum ratio of Cash Flow Available for Fixed Charges
to Fixed Charges for the fiscal quarter ending September 30, 2001 required pursuant to Section 5.8 of the Note Agreements, such failure being an Event of Default under
Section 6.1(d) of the Note Agreements (such Event of Default, the "Designated Event of Default"); 

    WHEREAS, the Company has requested that the Holders waive the Designated Event of Default and, subject to the satisfaction of the
conditions set forth herein, the Holders have agreed to waive the Designated Event of Default. 

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

    1.  Definitions; Construction.  Terms defined in the Note Agreements and not otherwise defined herein are
used herein as therein defined. Unless the context of this Waiver clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the part
includes the whole, the terms "include" and "including" are not limiting, and the term "or" has the inclusive meaning represented by the phrase "and/or". 

    2.  Waiver of Designated Event of Default.  Subject to the satisfaction of the conditions set forth in
Section 3, the Holders hereby waive the Designated Event of Default as of September 30, 2001; provided that the ratio of Consolidated Net
Income Available for Fixed Charges to Fixed Charges shall have been not less than 1.00 to 1.00 as of such date. The waiver granted herein shall expire on November 15, 2001;  provided, however, that
this waiver shall terminate immediately upon (a) the occurrence of any Event of Default under and as defined in the other
senior note agreement and the bank credit agreements that is not waived pursuant to a waiver referred to in Paragraph 3(d) below, or the termination of any such waiver, (b) a breach of
any of the terms of this letter, or (c) the occurrence of any other Default or Event of Default under the Note Agreements. 

    3.  Conditions Precedent to Waiver.  The satisfaction of each of the following, unless waived by all of
the Holders, in their sole discretion, shall constitute conditions precedent to the effectiveness of this Waiver: 

    (a) Holders
representing 662/3% of the 1992 Senior Notes outstanding and the Company shall have delivered an executed counterpart of this Waiver; 

    (b) No
Event of Default (other than the Designated Event of Default) shall have occurred and be continuing; 

 

    (c) The Holders shall have received the Consent of Subsidiary Guarantors attached hereto as Exhibit A, duly executed by each Subsidiary Guarantor; and 

    (d) Waivers
which are in substance substantially similar to this Waiver shall have been executed by the requisite percentage of the holders of Indebtedness under the
Company's bank credit agreement(s) and the Note Purchase Agreement dated December 1, 1999. 

    4.  No Further Waiver.  Except with respect to the specific waiver set forth in Section 2 hereof,
(a) the Note Agreements and the 1992 Senior Notes shall remain in full force and effect and are hereby ratified and confirmed in all respects, and (b) the execution, delivery, and
performance of this Waiver shall not operate as a waiver of (other than as provided herein) or as an amendment of any right, power, or remedy of the Holders under the Note Agreements or the 1992
Senior Notes as in effect prior to the date hereof, including any Default or Event of Default which may exist under Section 5.8 of the Note Agreements following the termination or expiration of
the waiver granted hereby all of which rights are hereby expressly reserved by the Holders of the 1992 Senior Notes. 

    5.  Governing Law and Venue.  THE VALIDITY OF THIS
WAIVER, ITS CONSTRUCTION, INTERPRETATION AND ENFORCEMENT, AND THE RIGHTS OF THE PARTIES HERETO, SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK. THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS WAIVER SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK,
STATE OF NEW YORK OR, AT THE SOLE OPTION OF THE HOLDERS, IN ANY OTHER COURT IN WHICH LENDERS SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE MATTER IN
CONTROVERSY. EACH OF THE PARTIES HERETO WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT
ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION. THE PARTIES HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
WAIVER OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH OF THE PARTIES HERETO
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS WAIVER
MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

    6.  Counterparts: Telefacsimile Execution; Effectiveness.  This Waiver may be executed in any number of
counterparts, each of which, when so executed and delivered, shall be deemed an original. All of such counterparts shall constitute but one and the same instrument. Delivery of an executed counterpart
of this Waiver by telefacsimile shall be equally as effective as delivery of an original executed counterpart of this Waiver. 

    7.  Interpretation.  The Section headings used in this Waiver are for convenience of reference only and
shall not affect the construction hereof. 

    8.  Severability.  If any provision of this Waiver shall be held to be invalid, illegal or unenforceable
under applicable law in any jurisdiction, such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability, which shall not affect any other provisions hereof
or the validity, legality and enforceability of such provision in any other jurisdiction. 

2

 

    9.  No Course of Dealing.  The execution and delivery of this Waiver shall not establish a course of
dealing among the Holders and the Company or in any other way obligate the Holders to hereafter provide any further waivers of any kind to the Company. 

    10.  Entire Agreement.  This Waiver together with all other instruments, agreements, and certificates
executed by the parties in connection herewith or with reference thereto, embody the entire understanding and agreement between the parties hereto and thereto with respect to the subject matter hereof
and thereof and supercede all prior agreements, understandings, and inducements, whether express or implied, oral or written. 

    11.  Representations and Warranties.  The Company represents and warrants that as of the date hereof and
as of the date of execution and delivery hereof and after giving effect hereto (and the similar waivers referred to in paragraph 3(d) hereof) no Default or Event of Default exists under the
Note Agreements. In addition, the Company represents and warrants that in connection with the solicitation of waivers or amendments pursuant to the other agreements pursuant to which Indebtedness of
the Company is outstanding and relating to the subject matter of this Waiver or any other amendment or modification required under any such agreement, except as disclosed in the waiver dated
October 17, 2001 relating to the Company's bank credit agreement a copy of which has been furnished to you, the Company has paid no fees or other consideration (other than routine fees of
counsel for such lenders) in connection with the review an/or execution and delivery of any such waiver or amendment. 

[Signature
page to follow.] 

3

 
    IN WITNESS WHEREOF, the parties have caused this Waiver to be executed and delivered as of the date first above written. 

	 	 	K2, INC.
	

 	
 	

By:	
 	

	 	 	Name:	 	

	 	 	Title:	 	

	

 	
 	
PRINCIPAL LIFE INSURANCE COMPANY
	

 	
 	

By:	
 	

Principal Capital Management, LLC,

a Delaware limited liability company, its

authorized signatory

	 	 	 	 	By:	 	

	 	 	 	 	Name:	 	

	 	 	 	 	Title:	 	

	

 	
 	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	

	 	 	 	 	Title:	 	

	 	 	MASSACHUSETTS MUTUAL LIFE

INSURANCE COMPANY by David L. Babson

and Company Incorporated, as Investment Advisor
	

 	
 	

By:	
 	

	 	 	Name:	 	

	 	 	Title:	 	

S–1

 

[Signature Page to K2 Waiver] 

	 	 	LIFE INVESTORS INSURANCE COMPANY OF AMERICA
	

 	
 	

By:	
 	

	 	 	Name:	 	

	 	 	Title:	 	

	

 	
 	
MONUMENTAL LIFE INSURANCE COMPANY
	

 	
 	

By:	
 	

	 	 	Name:	 	

	 	 	Title:	 	 

S–2

 

	

 	
 	

 	
 	

[Signature Page to K2 Waiver]

S–3

	

 	
 	

 	
 	
 

 
 

EXHIBIT A    
  

CONSENT
OF SUBSIDIARY GUARANTORS 

The
undersigned Subsidiary Guarantors, as party to the Guaranty Agreement dated as of December 1, 1999 (the "Guaranty Agreement"), hereby consent to the foregoing waiver dated as of even date
herewith to Note Agreements to which this consent is attached and confirm that the Guaranty Agreement remains in full force and effect after giving effect thereto and represent and warrant that there
is no defense, counterclaim or offset of any type or nature under the Guaranty Agreement. 

Subsidiary Guarantors:
  SHAKESPEARE COMPANY

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:	 	

	 	 	Name:	 	

	 	 	Title:	 	

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Exhibit 10(d)

LIMITED WAIVER

EXHIBIT A

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