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Prepared by MERRILL CORPORATION

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EXHIBIT 10(a)    
  

 
 

FOURTH AMENDMENT AND LIMITED WAIVER TO TRANSFER AND
  ADMINISTRATION AGREEMENT

    FOURTH
AMENDMENT AND LIMITED WAIVER TO TRANSFER AND ADMINISTRATION AGREEMENT (this "Amendment"), dated as of September 30, 2001,
to the Amended and Restated Transfer and Administration Agreement, dated as of April 4, 2000 (the "Agreement"), among ENTERPRISE FUNDING
CORPORATION, a Delaware corporation (the "Company"), K2 FUNDING, INC., a Delaware corporation, as the transferor (the
"Transferor"), K2 INC., a Delaware corporation ("K2 Inc.") as the master servicer (the
"Master Servicer") and BANK OF AMERICA, NATIONAL ASSOCIATION, a national banking association ("Bank of
America"), as agent for the Company and the Bank Investors (in such capacity, the "Agent"), as Administrative Agent and as a
Bank Investor. 

PRELIMINARY STATEMENTS

    WHEREAS,
the Company, the Transferor, the Master Servicer and the Agent have entered into the Agreement; 

    WHEREAS,
the Transferor and the Master Servicer have requested that the Agreement be amended and waived in the manner set forth below; and 

    WHEREAS,
the Company and the Agent have agreed, subject to the terms and conditions of this Amendment, to waive and amend certain provisions of the Agreement as hereinafter set forth. 

    NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein, the parties hereby agree as follows: 

    1.  Definitions. Except as otherwise stated herein, capitalized terms not defined herein shall have the respective
meanings assigned to them in the Agreement. 

    2.  Amendments to the Agreement. 

    Subject
to the satisfaction of the conditions to effectiveness set forth in Section 5 hereof, the Company and the Agent hereby agree to the following amendments to the
Agreement: 

    (a)
Section 1.1 of the Agreement is hereby amended by replacing the factor "1.5" which appears in clause (i) of the definition of "Dilution Reserve" with the factor
"2.5". 

    (b)Section 1.1
of the Agreement is hereby amended by replacing the formula which appears in the definition of "Liquidation Yield" with the following formula: 

	 
	 	 
	 	 

	(RVF × LBR × NI) × (EM × 2.5)

                                    360

    (c)
Section 1.1 of the Agreement is hereby amended by replacing the words "three (3) times" which appear in clause (i) of the definition of "Loss Percentage" with
the words "four (4) times". 

    (d)
Section 1.1 of the Agreement is hereby amended by replacing the amount "$7,500,000" which appears in the last sentence of the definition of "Loss Reserve" with the amount
$"15,000,000". 

    (e)
Section 1.1 of the Agreement is hereby amended by replacing the factor "1.5" which appears in clause (x) of the definition of "Servicing Fee Reserve" with the factor
"2.5". 

    (f)
Exhibit C to the Agreement is hereby deleted and replaced with a new Exhibit C in the form of Annex 1 hereto. The
Master Servicer hereby represents and warrants to the Agent that Annex 1 hereto contains a true and complete list of all the Account Banks and all of
the Accounts maintained by the Master Servicer or any Seller for the purpose of receiving Collections from Receivables. 

 

    3. Limited Waivers to the Agreement. 

    (a)
Subject to the satisfaction of the conditions to effectiveness set forth in Section 5 hereof, the Company, Agent and Bank Investors hereby agree to waive, during (and only
during) the period from and including September 30, 2001 to and including November 12, 2001 (the "Waiver Period"), the following
provisions of the Agreement: 

    (i)
the requirement that the Leverage Ratio, as set forth in Section II of Exhibit M of the Agreement, not exceed 3.00 to 1 at September 30, 2001; and 

    (ii)
the requirement that the Interest Coverage Ratio, as set forth in Section III of Exhibit M of the Agreement, not exceed 3.50 to 1.00 at any time. 

    (b)
The waivers granted herein shall be limited as provided in Section 3(a) hereof and (i) shall not constitute a waiver of compliance with any other term or condition
in the Agreement and (ii) shall not constitute a waiver of compliance with the provisions of the Leverage Ratio or the Interest Coverage Ratio during the Waiver Period at any time on or after
12:01 AM (New York City time) on November 13, 2001. 

    4.
Representations and Warranties. To induce the Company and the Agent to enter into this Amendment, the Transferor and the Master
Servicer each makes the following representations and warranties (which representations and warranties shall survive the execution and delivery of this Amendment) as of the date hereof, after giving
effect to the amendments set forth herein: 

    (a)
it has the power, authority and legal right to make and deliver this Amendment and to perform its obligations under the Agreement, as amended by this Amendment, without any
notice, consent, approval or authorization not already obtained, and that it has taken all necessary action to authorize the same. 

    (b)
the making and delivery of this Amendment and the performance of the Agreement, as amended by this Amendment, do not violate any provision of law or any regulation, or its charter
or by-laws, or result in the breach of or constitute a default under or require any consent under any indenture or other agreement or instrument to which it is a party or by which it or
any of its properties may be bound or affected. The Agreement, as amended by this Amendment, constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms,
except as the enforceability thereof may be limited by any applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting creditors' rights generally. 

    (c)
the representations and warranties made by it contained in any Transaction Document are true and correct on and as of the date of this Amendment and after giving effect hereto. 

    (d)
no Termination Event or Potential Termination Event has occurred and is continuing under the Agreement after giving effect to this Amendment. 

    5.  Effectiveness. This Amendment shall become effective as of the date hereof, upon the receipt by the Agent of: 

    (a)
an executed counterpart of this Amendment from each party hereto; 

    (b)
fully executed copies of the Account Agreements for Shakespeare and K-2 (including Notices of Effectiveness in the form of Annex 1 thereto with respect thereto
executed by Shakespeare and K-2); and 

    (c)
the payment of the fees and expenses of counsel to the Agent. 

    6.
Reference to and Effect on the Transaction Documents. Each reference in the Agreement to "this Agreement", "hereunder", "hereof" or
words of like import, and each reference in any other Transaction Document to "the Transfer and Administration Agreement", "thereunder", "thereof" or 

2

 

words of like import, referring to the Agreement, shall mean and be a reference to the Agreement as amended hereby. 

    7.
Agreement and all other Transaction Documents in Full Force and Effect. Except as specifically amended hereby, each Transaction
Document and shall continue to be in full force and effect and is hereby in all respects ratified and confirmed. The execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power or remedy of the Company, any Bank Investor or the Agent under any Transaction Document, nor constitute a waiver of any provision of
any Transaction Document. 

    8.
Counterparts. This Amendment may be signed in any number of counterparts, each of which shall be an original and all of which taken
together shall constitute a single instrument with the same effect as if the signatures thereto and hereto were upon the same instrument. 

    9.  Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

3

 

    IN WITNESS WHEREOF, the Company, the Transferor the Master Servicer and the Agent have caused this Amendment to be duly executed by their respective duly authorized officers as of the
day and year first above written. 

	 	 	K2 FUNDING, INC.,

as Transferor
	

 	
 	

By:	
 	

 Name: John J. Rangel

Title: Senior Vice President—Finance

	 	 	K2 INC.,

as Master Servicer
	

 	
 	

By:	
 	

 Name: John J. Rangel

Title: Senior Vice President—Finance

	 	 	ENTERPRISE FUNDING CORPORATION,

as the Company
	

 	
 	

By:	
 	

 Name:

Title:

	 	 	BANK OF AMERICA, NATIONAL ASSOCIATION,

as Agent and as Bank Investor
	

 	
 	

By:	
 	

 Name:

Title:

4

 
 
 

ANNEX 1
  
    New Exhibit C    
  

 
 

List of Account Banks & Accounts    
  

    K2 Corporation 

	Account Bank
	 	Address
	 	Account No.

	Bank of America, N.A.	 	1850 Gateway Boulevard

Concord, CA 94520

Attn: Barbara Garibaldi	 	No. 1233386794

Shakespeare
Company 

	Account Bank
	 	Address
	 	Account No.

	Shakespeare Monofilament

Bank of America, N.A.	 	1850 Gateway Boulevard

Concord, CA 94520

Attn: Barbara Garibaldi	 	No. 3752134881
	

Shakespeare Fishing Tackle / Composite & Electronics

Bank of America, N.A.	
 	

1850 Gateway Boulevard

Concord, CA 94520

Attn: Barbara Garibaldi	
 	

No. 3752134878

Stearns Inc.

	Account Bank
	 	Address
	 	Account No.

	Wells Fargo Bank Minnesota, N.A.	 	MAC N9305-031

Sixth and Marquette

Minneapolis, MN 55479

Attn: Molly Van Metre	 	No. 000-0833176

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EXHIBIT 10(a)

FOURTH AMENDMENT AND LIMITED WAIVER TO TRANSFER AND ADMINISTRATION AGREEMENT

ANNEX 1 New Exhibit C

List of Account Banks & AccountsPrepared by MERRILL CORPORATION

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EXHIBIT 10 (b)    
  

 
 

FIFTH AMENDMENT AND LIMITED WAIVER TO TRANSFER AND
  ADMINISTRATION AGREEMENT

    FIFTH
AMENDMENT AND LIMITED WAIVER TO TRANSFER AND ADMINISTRATION AGREEMENT (this "Amendment"), dated as of November 12, 2001,
to the Amended and Restated Transfer and Administration Agreement, dated as of April 4, 2000 (the "Agreement"), among ENTERPRISE FUNDING
CORPORATION, a Delaware corporation (the "Company"), K2 FUNDING, INC., a Delaware corporation, as the transferor (the
"Transferor"), K2 INC., a Delaware corporation ("K2 Inc.") as the master servicer (the
"Master Servicer") and BANK OF AMERICA, NATIONAL ASSOCIATION, a national banking association ("Bank of
America"), as agent for the Company and the Bank Investors (in such capacity, the "Agent"), as Administrative Agent and as a
Bank Investor. 

PRELIMINARY STATEMENTS

    WHEREAS,
the Company, the Transferor, the Master Servicer and the Agent have entered into the Agreement; 

    WHEREAS,
the Transferor and the Master Servicer have requested that the Agreement be amended and waived in the manner set forth below; and 

    WHEREAS,
the Company and the Agent have agreed, subject to the terms and conditions of this Amendment, to waive and amend certain provisions of the Agreement as hereinafter set forth. 

    NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein, the parties hereby agree as follows: 

    1.  Definitions.  Except as otherwise stated herein, capitalized terms not defined herein shall have the respective
meanings assigned to them in the Agreement. 

    2.
Amendments to the Agreement. 

    Subject
to the satisfaction of the conditions to effectiveness set forth in Section 5 hereof, the Company and the Agent hereby agree to the following amendments to the
Agreement: 

    (a)  Section 1.1
of the Agreement is hereby amended by deleting the following defined terms therein: "CD Rate", "CD Tranche", "CD Tranche Period" and
"Certificate of Deposit Rate." 

    (b)  Section 1.1
of the Agreement is hereby amended by deleting the value "2.00%" appearing in the defined term "Eurodollar Rate" and replacing it with the value
"2.50%". 

    (c)  Section 1.1
of the Agreement is hereby amended by deleting the phrase ", a CD Tranche Period" from the definition of "Tranche Period" therein. 

    (d)  Section 1.1
of the Agreement is hereby amended by deleting the phrase ", the CD Rate" from the defined term "Tranche Rate" therein. 

    (e)  Section 1.1
of the Agreement is hereby amended by deleting the date "November 12, 2001" from the defined term "Commitment Termination Date" and
replacing it with the date "November 15, 2001". 

    (f)  Section 1.1
of the Agreement is hereby amended by deleting clause (v) of the defined term "Termination Date" and replacing it with the following: 

    "(v) the
then current Commitment Termination Date, subject to extension upon consent of all of the parties hereto." 

 

    (g)  Each
of Section 2.3(a) and Section 2.3(c) of the Agreement is hereby amended by deleting the phrase ", the CD Rate" therefrom. 

    (h)  Section 2.3(d)
of the Agreement is hereby amended to read in its entirety as follows: 

    "(d)  On and after a Termination Event; Transferred Interest Held on Behalf of the Bank Investors. Subject to the
proviso to Section 7.1(a), at all times on and after a Termination Event, with respect to any portion of the Transferred Interest held by the Agent on behalf of the Bank Investors, the Tranche
Rate shall be the Base Rate plus 2.00%." 

    (i)  Section 2.5(b)
of the Agreement is hereby amended by deleting the phrase "CD Tranche," therefrom. 

    (j)  Section 7.1(d)
of the Agreement is hereby amended to read in its entirety as follows: 

    "(d)  failure
of the Master Servicer or the Transferor or any Subsidiary of the Master Servicer or the Transferor to pay when due any amounts due under any agreement to
which such Person is a party and under which any Indebtedness greater than $10,000, in the case of the Transferor or any Subsidiary of the Transferor, or $5,000,000 million, in the case of the
Master Servicer or any Subsidiary of the Master Servicer (other than the Transferor) is governed; or the default by the Transferor, the Master Servicer or any Subsidiary of the Transferor or the
Master Servicer in the performance of any term, provision or condition contained in any agreement to which any such Person is a party and under which any Indebtedness owing by the Transferor, the
Master Servicer or any Subsidiary of the Transferor or the Master Servicer greater than such respective amounts was created or is governed, regardless of whether such event is an "event of default" or
"default" under any such agreement if the effect of such default is to cause, or to permit the holder of such Indebtedness to cause, such Indebtedness to become due and payable prior to its stated
maturity; or any Indebtedness owing by the Transferor, the Master Servicer or any Subsidiary of the Transferor or the Master Servicer greater than such respective amounts shall be declared to be due
and payable or required to be prepaid (other than by a regularly scheduled payment) prior to the date of maturity thereof;" 

    (k)  Section 10.3(c)
of the Agreement is hereby amended to read in its entirety as follows: 

    "(c)
If an extension of the Commitment Termination Date is sought, the Transferor shall make a written request to the Agent to extend the Commitment Termination Date no later than
60 days prior
to the then-scheduled Commitment Termination Date. The Company and the Bank Investors shall determine, in their sole discretion, whether to extend the Commitment Termination Date and shall
provide notice of their determination no later than 30 days prior to the then-scheduled Commitment Termination Date; provided,
however, if the Company or any Bank Investor fails to notify the Transferor of its determination, the Transferor's request shall be deemed to be rejected." 

    3.
Limited Waivers to the Agreement. 

    (a)  Subject
to the satisfaction of the conditions to effectiveness set forth in Section 5 hereof, the Company, the Agent and the Bank Investors hereby agree to
waive, during (and only during) the period from and including November 13, 2001 to and including November 15, 2001 (the "Waiver Period"),
the following provisions of the Agreement: 

    (i)  the
requirement that the Leverage Ratio, as set forth in Section II of Exhibit M of the Agreement, not exceed 3.00 to 1 at September 30, 2001;
and 

    (ii)  the
requirement that the Interest Coverage Ratio, as set forth in Section III of Exhibit M of the Agreement, not exceed 3.50 to 1.00 at any time. 

2

 

    (b)  The
waivers granted herein shall be limited as provided in Section 3(a) hereof and (i) shall not constitute a waiver of compliance with any other
term or condition in the Agreement and (ii) shall not constitute a waiver of compliance with the provisions of the Leverage Ratio or the Interest Coverage Ratio during the Waiver Period at any
time on or after 12:01 AM (New York City time) on November 16, 2001. 

    4.
Representations and Warranties. To induce the Company and the Agent to enter into this Amendment, the Transferor and the Master
Servicer each makes the following representations and warranties (which representations and warranties shall survive the execution and delivery of this Amendment) as of the date hereof, after giving
effect to the amendments set forth herein: 

    (a)  it
has the power, authority and legal right to make and deliver this Amendment and to perform its obligations under the Agreement, as amended by this Amendment,
without any notice, consent, approval or authorization not already obtained, and that it has taken all necessary action to authorize the same. 

    (b)  the
making and delivery of this Amendment and the performance of the Agreement, as amended by this Amendment, do not violate any provision of law or any
regulation, or its charter or by-laws, or result in the breach of or constitute a default under or require any consent under any indenture or other agreement or instrument to which it is a
party or by which it or any of its properties may be bound or affected. The Agreement, as amended by this Amendment, constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms, except as the enforceability thereof may be limited by any applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting creditors' rights generally. 

    (c)  the
representations and warranties made by it contained in any Transaction Document are true and correct on and as of the date of this Amendment and after giving
effect hereto. 

    (d)  no
Termination Event or Potential Termination Event has occurred and is continuing under the Agreement after giving effect to this Amendment. 

    5.
Effectiveness. This Amendment shall become effective as of the date hereof, upon the receipt by the Agent of: 

    (a)  an
executed counterpart of this Amendment from each party hereto; and 

    (b)  the
payment of the fees and expenses of counsel to the Agent. 

    6.  Reference to and Effect on the Transaction Documents. Each reference in the Agreement to "this Agreement", "hereunder", "hereof" or
words of like import, and each reference in any other Transaction Document to "the Transfer and Administration Agreement", "thereunder", "thereof" or words of like import, referring to the Agreement,
shall mean and be a reference to the Agreement as amended hereby. 

    7.
Agreement and all other Transaction Documents in Full Force and Effect. Except as specifically amended hereby, each Transaction
Document and shall continue to be in full force and effect and is hereby in all respects ratified and confirmed. The execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of the Company, any Bank Investor or the Agent under any Transaction Document, nor constitute a waiver of any provision of any Transaction Document. 

    8.
Counterparts. This Amendment may be signed in any number of counterparts, each of which shall be an original and all of which taken
together shall constitute a single instrument with the same effect as if the signatures thereto and hereto were upon the same instrument. 

    9.
Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

3

 

    IN WITNESS WHEREOF, the Company, the Transferor the Master Servicer and the Agent have caused this Amendment to be duly executed by their respective duly authorized officers as of the
day and year first above written. 

	 	 	K2 FUNDING, INC.,

as Transferor
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

K2 INC.,

as Master Servicer
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

ENTERPRISE FUNDING CORPORATION,

as the Company
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

BANK OF AMERICA, NATIONAL ASSOCIATION,

as Agent and as Bank Investor
	

 	
 	

By:	
 	

 Name:

Title:

4

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EXHIBIT 10 (b)

FIFTH AMENDMENT AND LIMITED WAIVER TO TRANSFER AND ADMINISTRATION AGREEMENT

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