This AGREEMENT made and entered into as of this 17th day of March,  1998, by and
between JEPCO Development Co., LLC, an Oregon Limited  Liability  Corporation as
Lessor  (herein  called  "Lessor"),  and  LaCrosse  Footwear,  Inc., a Wisconsin
Corporation, as Lessee (herein called "Lessee"):

                                   WITNESSETH

1.        ORIGINAL  LEASE.   Lessor  is  the  successor  in  interest  to  JEPCO
          Development Co., an Oregon General Partnership ("JEPCO  Partnership"),
          the lessor  under a lease dated the 14th day of March,  1994,  between
          Lessee and JEPCO  Partnership  ("Lease").  The Lease covers the Danner
          building and grounds at 12722 N.E.
          Airport Way, Portland, Oregon.

2.        EXERCISE OF OPTION.  The Lessee hereby  exercises its option under the
          Lease to extend the lease five years from March 13, 2004,  until March
          13, 2009.  Lessor  hereby  accepts the  exercise of such  option.  The
          parties  acknowledge  that the term of the lease has now been extended
          until March 13, 2009.

3.        RENTAL

          a)    Parking Lot Improvement. Lessor agrees to expand the parking lot
                in  accordance  with the  drawings  of V8LMK  engineering  firm,
                attached hereto as Exhibit A. The parking lot improvement  shall
                be undertaken in accordance with applicable  zoning and land use
                regulations.  It is  currently  estimated  that the cost will be
                $120,000  excluding the Code Updates described in "C" below. The
                useful life is assumed to be 15 years.

          b)    Basic  Rental  Adjustment.  On  substantial  completion  of  the
                parking  lot, or upon its first use by Lessee,  whichever  first
                occurs,  the annual rent shall be increased  by the  Amortizable
                Cost of Parking  Lot, as defined  below.  The  Amortizable  Cost
                shall be the Total  Actual Cost  divided by 15. The Total Actual
                Cost  shall  be the sum of all  monies  spent  on  building  and
                developing  the  Parking  Lot,  including  but  not  limited  to
                engineering  fees,  permit fees, and amounts paid to contractors
                and  subcontractors  for actually  building and  landscaping the
                parking lot.

          c)    Code  Updated.  Lessee  will,  in  the  process  of  making  the
                currently  planned  internal  tenant  improvements on the Danner
                Building,  work with Lessor so that these  improvements  will be
                counted as the 1020 code updates  required by the  government as
                part of the Parking Lot Improvement.

4.        ORIGINAL  LEASE TERMS.  All other terms of  conditions of the original
          Lease shall remain in full force and effect.

IN WITNESS WHEREOF,  Lessor and Lessee have executed this instrument under seal,
as of the day and year first above written.


LESSOR:  JEPCO DEVELOPMENT CO.              LESSEE:  LACROSSE FOOTWEAR, INC.



By:   /s/John H. Herman                     By:  /s/ Patrick K. Gantert         
      John H. Herman                               Patrick K. Gantert



<PAGE>
                                   Exhibit A







                            [Drawing of Parking lot]