Exhibit 10.1
 

FOURTH AMENDMENT TO CREDIT AGREEMENT
 
THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is dated as of
March 1, 2010 (the "Effective Date") between JPMORGAN CHASE BANK, N.A., as
Administrative Agent, Issuing Bank, and as a Lender and ESCALADE, INCORPORATED
(the "Borrower").
 
Recital
 
The Borrower and JPMorgan Chase Bank, N.A., as Administrative Agent, Issuing
Bank, and a Lender are parties to that certain Credit Agreement, dated as of
April 30, 2009 (as amended by that certain First Amendment to Credit Agreement,
dated as of July 29, 2009 and as amended by that certain Second Amendment to
Credit Agreement, dated as of September 30, 2009, and as amended by that certain
Third Amendment to Credit Agreement dated as of October 30, 2009, the "Credit
Agreement").  As of the Effective Date, JPMorgan Chase Bank, N.A. is the only
Lender under the Credit Agreement.
 
On November 22, 2005, the Borrower created a Chinese Subsidiary with a legal
name of Martin Yale International (Beijing) Trading Co. ("MYI Beijing") and
capitalized it with $718,000.  The Borrower owns 100% of the Equity Interests of
MYI Beijing.  The Borrower desires to transfer 100% of the Equity Interests of
MYI Beijing to Martin Yale International GmbH ("MYI Germany") (the "Beijing
Transfer").
 
The Borrower executed a Security and Pledge Agreement, dated as of April 30,
2009, in favor of the Administrative Agent, for the ratable benefit of the
Lenders (the "Escalade Security Agreement"), pursuant to which the Borrower
granted a security interest to the Administrative Agent in substantially all of
the Borrower's assets, including without limitation, the Equity Interests of MYI
Beijing (but excluding 35% of the issued and outstanding Equity Interests
entitled to vote).
 
MYI Germany desires to transfer all its business operations and assets that are
located in Crawley, West Sussex, United Kingdom to Martin Yale International
Ltd. (the "UK Transfer"; and collectively with the Beijing Transfer, the
"Transfers").
 
The Credit Agreement prohibits the Transfers and, accordingly, the Borrower has
requested that the Administrative Agent and the Lenders consent to the
Transfers.
 
In addition, the Borrower failed to list all of its Subsidiaries on Schedule
3.15 of the Credit Agreement (the "Existing Default") and the Borrower requests
the Administrative Agent and Lender to waive the Existing Default and to amend
the Credit Agreement to replace Schedule 3.15.
 
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Agreement
 
NOW, THEREFORE, in consideration of the premises, the mutual covenants and
agreements herein, and each act performed and to be performed hereunder, the
Administrative Agent, the Lender and the Borrower agree as follows:
 
1.           Amendment to the Credit Agreement - Amendment to Schedule 3.15.  As
of the Effective Date, Schedule 3.15 of the Credit Agreement is amended and, as
so amended, restated to be identical to Schedule 3.15 attached to this
Amendment.
 
2.           Consent.
 
(a)         The Administrative Agent and the Lender consent to the Transfers
and, effective simultaneously with the completion of the Beijing Transfer, the
Administrative Agent releases its security interest granted to it pursuant to
the Escalade Security Agreement in the Equity Interests of MYI Beijing.
 
(b)         The consent set forth in this Section 2 is a one-time consent and
applies only to the Transactions and shall not be deemed to be a waiver by
Lender to any transfer not specifically described in this Section 2.
 
            3.           Waiver of Existing Default.  Subject to the other terms
of this Amendment, the Administrative Agent and the Lender waive the Existing
Default.  The waiver set forth in this Section 3 is a one-time waiver and
applies only to the failure by the Borrower to accurately list its Subsidiaries
on Schedule 3.15 of the Credit Agreement and not to any other inaccurate
representation or warranty, if any, by Borrower or any other Loan Party.
 
            4.           Binding on Successors and Assigns.  All of the terms
and provisions of this Amendment shall be binding upon and inure to the benefit
of the parties hereto, their respective successors, assigns and legal
representatives.
 
            5.           Governing Law.  This Amendment is a contract made
under, and shall be governed by and construed in accordance with the laws of the
State of Indiana.
 
            6.           Amendment of Other Loan Documents.  All references to
the Credit Agreement in the other Loan Documents shall mean the Credit
Agreement, as modified and amended by this Amendment and as it may be further
amended, modified, extended, renewed, supplemented and/or restated from time to
time and at any time.  Except as expressly modified and amended by this
Amendment, all of the terms and provisions of the Credit Agreement and the other
Loan Documents remain in full force and effect, and are fully binding on the
parties thereto and their respective successors and assigns.
 
            7.           Counterparts. This Amendment may be executed in two or
more counterparts, each of which shall constitute an original, but all of which
when taken together shall constitute but one agreement.
 
            8.           Defined Terms.  Except as expressly otherwise stated in
this Amendment, all terms used in this Amendment and the Recitals that are
defined in the Credit Agreement, and that are not otherwise defined in this
Amendment, shall have the same meanings in this Amendment as in the Credit
Agreement.
 
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their respective authorized signatories.
 

  JPMORGAN CHASE BANK, N.A., as Administrative Agent and Lender          
 
By:
/s/ Randall K. Stephens       Randall K. Stephens, Senior Vice President        
    ESCALADE, INCORPORATED              By: /s/ Deborah J. Meinert       Deborah
J. Meinert, VP Finance and CFO  

 
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Schedule 3.15

CAPITALIZATION AND SUBSIDIARIES
 
Issuer
 
Certificate Number(s)
 
Number of Shares
 
Class of Stock
 
Percentage of Outstanding Shares/Ownership
                 
Martin Yale Industries, Inc (Owned by Escalade Incorporated)
 
1
 
1000
 
Common
 
100%
Indian Industries, Inc. (Owned by Escalade, Incorporated)
 
1
 
1000
 
Common
 
100%
EIM Company, Inc. (Owned by Escalade, Incorporated)
 
5,6
 
100
 
Common
 
100%
Escalade Insurance, Inc. (Owned by Escalade, Incorporated)
 
1
 
1000
 
Common
 
100%
Schleicher and Co. of America, Inc. (Owned by Martin Yale Industries, Inc.)
 
R-1
 
100
 
Common
 
100%
Olympia Business Systems, Inc. (Owned by Schleicher & Co. of America, Inc.)
 
R-1
 
100
 
Common
 
100%
Bear Archery, Inc. (Owned by Indian Industries, Inc.)
 
R-1
 
100
 
Common
 
100%
Escalade Sports Playground, Inc. (Owned by Indian Industries, Inc.)
 
R-1
 
100
 
Common
 
100%
Harvard Sports, Inc. (Owned by Indian Industries, Inc.)
 
R-1
 
1000
 
Common
 
100%
U. S. Weight, Inc. (Owned by Indian Industries, Inc.)
 
R-1
 
100
 
Common
 
100%
SOP Services, Inc. (Owned by EIM Company, Inc.)
 
R-1
 
100
 
Common
 
100%

 
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Issuer
 
Certificate Number(s)
 
Number of Shares
 
Class of Stock
 
Percentage of Outstanding Shares/Ownership
                 

Harvard California, S.DE. R.L. C.V. (Owned by Harvard Sports, Inc 90% and
Escalade, Inc 10%)
 
N/A
 
N/A
 
N/A
 
100%
Escalade Sports, S.DE. R.L. C.V. (Owned by Harvard Sports, Inc 90% and Escalade,
Inc 10%)
 
N/A
 
N/A
 
N/A
 
100%
Escalade Sports Holding (HK) Limited (Owned by Indian Industries, Inc.)
 
N/A
 
N/A
 
N/A
 
100%
Escalade Sports Shanghai (Owned by Indian Industries, Inc.)
 
N/A
 
N/A
 
N/A
 
100%
Martin Yale International, GmbH (Owned by Martin Yale Industries, Inc.)
 
N/A
 
N/A
 
N/A
 
100%
Martin Yale International (Beijing) Trading Co. (Owned by Escalade, Inc)
 
N/A
 
N/A
 
N/A
 
100%
Martin Yale International Ltd., (Owned by Martin Yale International, GmbH)
 
N/A
 
N/A
 
N/A
 
100%
Martin Yale Africa Quality Office and Graphics Products (PTY) Ltd. (Owned by
Martin Yale International, GmbH)
 
N/A
 
N/A
 
N/A
 
100%
Martin Yale Italia srl (Owned by Martin Yale International GmbH)
 
N/A
 
N/A
 
N/A
 
100%
Taros Trading GmbH, (Owned by Martin Yale International, GmbH)
 
N/A
 
N/A
 
N/A
 
100%
Martin Yale Iberica. S.L. (Owned by Martin Yale International, GmbH)
 
N/A
 
N/A
 
N/A
 
100%
Martin Yale Nordic, AB (Owned by Martin Yale International, GmbH)
 
N/A
 
N/A
 
N/A
 
100%

 
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Issuer
 
Certificate Number(s)
 
Number of Shares
 
Class of Stock
 
Percentage of Outstanding Shares/Ownership
                 

Productos Maestros de Oficina, S.A. DE C.V. (Owned by Martin Yale Industries,
Inc.)
 
N/A
 
N/A
 
N/A
 
100%
Neoteric Industries, Inc (Owned by Martin Yale Industries, Inc.)
 
87-NX-000001,
88-NX-000001
 
249997
 
Common
 
49.99%
Ekvita spol. S.R.O. (Owned by Martin Yale International, GmbH)
 
N/A
 
N/A
 
N/A
 
33%
Sweden Table Tennis AB (Owned by Escalade, Inc.)
 
N/A
 
N/A
 
N/A
 
50%
Escalade International, Ltd. (Owned by Escalade, Inc.)
 
N/A
 
N/A
 
N/A
 
50%

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Consent of the Guarantors
 
Each of the undersigned Guarantors acknowledges and consents to the execution of
the Fourth Amendment to Credit Agreement and reaffirms and agrees that the
Guaranty dated as of April 30, 2009, executed by it in favor of the
Administrative Agent for the benefit of the Lenders remains in full force and
effect with respect to all obligations of the Guarantor thereunder.

Dated as of March 1, 2010.
 

Bear Archery, Inc.   Martin Yale Industries, Inc.             By:
/s/ Deborah J. Meinert
  By:
/s/ Deborah J. Meinert
            Deborah J. Meinert, VP Finance and Sec   Deborah J. Meinert, VP
Finance and Sec             EIM Company, Inc.   Olympia Business Systems, Inc.  
            By: /s/ Deborah J. Meinert   By: /s/ Deborah J. Meinert            
Deborah J. Meinert, VP Finance and Sec   Deborah J. Meinert, VP Finance and Sec
            Escalade Insurance, Inc.   Schleicher & Co. of America, Inc.        
      By: /s/ Deborah J. Meinert   By: /s/ Deborah J. Meinert            
Deborah J. Meinert, VP Finance and Sec   Deborah J. Meinert, VP Finance and Sec
            Escalade Sports Playground, Inc.   SOP Services, Inc.              
By: /s/ Deborah J. Meinert   By: /s/ Deborah J. Meinert             Deborah J.
Meinert, VP Finance and Sec   Deborah J. Meinert, VP Finance and Sec            
Harvard Sports, Inc.   U. S. Weight, Inc.               By: /s/ Deborah J.
Meinert   By: /s/ Deborah J. Meinert             Deborah J. Meinert, VP Finance
and Sec   Deborah J. Meinert, VP Finance and Sec             Indian Industries,
Inc.                     By: /s/ Deborah J. Meinert                   Deborah J.
Meinert, VP Finance and Sec        

 
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