THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

K-Swiss Inc. (KSWS)

4/13/2006 Proxy Information

David Nichols, Executive Vice President, is the son of Steven Nichols, the Chairman, Chief Executive Officer and President of the Company. David Nichols has held various other positions with the Company since 1995, including Executive Vice President of K•Swiss Sales Corp., President of KS Amsterdam BV and President of K•Swiss Direct Inc.

Steven Nichols is a Director and the Chairman, President and sole member of the 324 Foundation, a California nonprofit public benefit corporation, which makes contributions to Section 501(c)(3) educational and charitable organizations. George Powlick and David Nichols, are also directors of the 324 Foundation. K•Swiss Inc. contributed $150,000, $150,000 and $300,000 to the 324 Foundation for the years ended December 31, 2005, 2004 and 2003, respectively.

The Audit Committee, among its other duties and responsibilities, reviews and monitors all related party transactions as defined in the applicable National Association of Securities Dealers listing standards. During 2005, there were no related party transactions between K•Swiss and its executive officers and directors.

Martyn Wilford, a director of K•Swiss Inc. since 1990, decided not to stand for re-election in 2006.

4/11/2005 Proxy Information

David Nichols, Executive Vice President, is the son of Steven Nichols, the Chairman, Chief Executive Officer and President of the Company. David Nichols has held various other positions with the Company since 1995, including Executive Vice President of K•Swiss Sales Corp., President of KS Amsterdam BV and President of K•Swiss Direct Inc. The Company provided housing to David Nichols from July 2000 through November 2002 when he temporarily relocated to Amsterdam, the Netherlands to become Managing Director of the Company’s European office.

Steven Nichols is a Director and the Chairman, President and sole member of the 324 Foundation, a California nonprofit public benefit corporation, which makes contributions to Section 501(c)(3) educational and charitable organizations. George Powlick and David Nichols, are also directors of the 324 Foundation. K•Swiss Inc. contributed $150,000, $300,000 and $137,500 to the 324 Foundation for the years ended December 31, 2004, 2003 and 2002, respectively.

The Audit Committee, among its other duties and responsibilities, reviews and monitors all related party transactions as defined in the applicable National Association of Securities Dealers listing standards. During 2004, there were no related party transactions between K•Swiss and its executive officers and directors.

4/5/2004 Proxy Information

During the year ended December 31, 2003, Brian Sullivan, an executive officer of the Company, paid the Company $69,036 in connection with a loan made by the Company in 2000 to Mr. Sullivan for income taxes incurred on the acquisition of Class A Common Stock of the Company. The loan was non-interest bearing, unsecured, and was due on demand.

During the year ended December 31, 2003, Mr. Sullivan also paid the Company $116,965 in connection with a loan made by the Company in 2001 to Mr. Sullivan for the purchase of real estate. This loan bore interest at the rate of 6%, was secured by vested stock options of the Company’s Class A Common Stock previously granted to Mr. Sullivan, and was due as these stock options were exercised.

These loans were both repaid in full during the year ended December 31, 2003. The largest aggregate amount of these loans to Mr. Sullivan during the year ended December 31, 2003 was $186,001.

David Nichols, Executive Vice President of K•Swiss Sales Corp., is the son of Steven Nichols. David Nichols has held various other positions with the Company for the past eight years. The Company provided housing to David Nichols from July 2000 through November 2002 when he temporarily relocated to Amsterdam, the Netherlands to become Managing Director of the European office.

Steven Nichols is the Director, Chairman, President and sole member of the 324 Foundation, a California nonprofit public benefit corporation, which makes contributions to Section 501(c)(3) educational and charitable organizations. George Powlick and David Nichols, are also directors of the 324 Foundation. K•Swiss Inc. contributed $300,000, $137,500 and $50,000 to the 324 Foundation for the years ended December 31, 2003, 2002 and 2001, respectively.

4/21/2003 Proxy Information

As of December 31, 2002, Brian Sullivan, Executive Officer of the Company, owed the Company $69,036 in connection with a loan made by the Company to Mr. Sullivan for income taxes incurred on the acquisition of Class A Common Stock of the Company. The loan is non-interest bearing, unsecured, and is due on demand. Subsequent to December 31, 2002, Mr. Sullivan reduced this debt by $19,814.

As of December 31, 2002, Mr. Sullivan also owed the Company $116,965 in connection with a loan made by the Company to Mr. Sullivan for the purchase of real estate. This loan bears interest at the rate of 6%, is secured by vested stock options of the Company’s Class A Common Stock previously granted to Mr. Sullivan, and is due as these stock options are exercised.

The largest aggregate amount of these loans to Mr. Sullivan during the year ended December 31, 2002 was $219,036 and the amount outstanding as of March 31, 2003 was $167,917.

David Nichols, Executive Vice President of K•Swiss Sales Corp., is the son of Steven Nichols. David Nichols has held various other positions with the Company for the past 7 years. David Nichols received salary and bonus compensation of $209,500 in 2002 as well as perquisites and other employee benefits. The Company provided housing to David Nichols from July 2000 through November 2002 when he temporarily relocated to Amsterdam, the Netherlands to become Managing Director of the European office.