Document:

WOLVERINE EXHIBIT TO FORM 10-Q - SECOND AMENDMENT TO CREDIT AGREEMENT EXHIBIT 4.1

EXHIBIT 4.1

SECOND AMENDMENT TO CREDIT AGREEMENT

          THIS SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of August 30, 2002 (this "Amendment"), is among WOLVERINE WORLD WIDE, INC., a Delaware corporation (the "Company"), the Foreign Subsidiary Borrowers (collectively with the Company, the "Borrowers" and each a "Borrower"), the lenders party hereto from time to time (collectively, the "Banks" and, individually, a "Bank"), Bank One, Michigan, a Michigan banking corporation, as Agent, Harris Trust and Savings Bank, as syndication agent (in such capacity, the "Syndication Agent") and Comerica Bank, as documentation agent (in such capacity, the "Documentation Agent").

RECITAL

          The Borrowers, the Banks party thereto and the Agent are parties to a Credit Agreement dated as of May 29, 2001, as amended by a First Amendment to Credit Agreement dated as of February 8, 2002 (the "Credit Agreement"). The Borrowers desire to amend the Credit Agreement and the Agent and the Banks are willing to do so in accordance with the terms hereof.

TERMS

          In consideration of the premises and of the mutual agreements herein contained, the parties agree as follows:

ARTICLE 1.

AMENDMENTS

          The Credit Agreement is amended as follows:

          1.1 Section 3.7(a) is restated as follows:

          (a)          Amount of Swing Line Loans. On any Business Day during the period from the Effective Date until the earlier of December 31, 2002 or the date all U.S./U.K. Banks are able to lend to the U.K. Borrowers without being subject to any withholding taxes in the U.K. (the "Full Participation Date"), any U.S./U.K. Borrower may request the Agent to make, and the Agent may, in its sole discretion, make, Swing Line Loans in any permitted Agreed Currencies requested by such U.S./U.K. Borrower from time to time in an aggregate principal amount outstanding at any one time not to exceed the U.S. Dollar Amount of $20,000,000. Beginning on the Full Participation Date and continuing until the Termination Date, any U.S./U.K. Borrower may request the Agent to make, and the Agent may, in its sole discretion, make, Swing Line Loans in any permitted Agreed Currencies requested by such U.S./U.K. Borrower from time to time in an aggregate principal amount outstanding at any one time not to exceed the U.S. Dollar Amount of $10,000,000. Notwithstanding the preceding two sentences of this Section 3.7(a), the U.S. Dollar Amount of the Aggregate Outstanding U.S./U.K. Credit Exposure shall not at any time exceed the Aggregate U.S./U.K. Revolving Commitments. Within the limits of this Section 3.7, so long as the Agent, in its sole discretion, elects to make, or arrange for Swing Line Loans, the U.S./U.K. Borrowers may borrow and reborrow under this Section 3.7.

ARTICLE 2.

REPRESENTATIONS

          Each Borrower, including without limitation the New Foreign Subsidiary Borrowers, represents and warrants to the Agent and the Banks that:

          2.1          The execution, delivery and performance by each Borrower of this Amendment are within its corporate powers, have been duly authorized by all necessary corporate action and are not in contravention of any law, rule or regulation, or any judgment, decree, writ, injunction, order or award of any arbitrator, court or governmental authority, or of the terms of such Borrower's charter or by-laws, or of any contract or undertaking to which such Borrower is a party or by which such Borrower or its property may be bound or affected.

          2.2          This Amendment is the legal, valid and binding obligations of each Borrower enforceable against such Borrower in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting enforcement of creditors' rights generally and by general principles of equity (whether applied in a proceeding at law or in equity).

          2.3          After giving effect to the amendments herein contained, the representations and warranties contained in the Loan Documents are true in all material respects on and as of the date hereof with the same force and effect as if made on and as of the date hereof .

          2.4          After giving effect to the amendments herein contained, no Event of Default or Unmatured Default exists or has occurred and is continuing on the date hereof.

ARTICLE 3.

CONDITIONS PRECEDENT.

          This Amendment shall be effective as of the date hereof when it shall be executed by the Borrowers, the Required Banks and the Agent.

ARTICLE 4.

MISCELLANEOUS.

          4.1          References in the Credit Agreement and any other Loan Document to the Credit Agreement shall be deemed to be references to the Credit Agreement as amended hereby and as further amended from time to time.

          4.2          Except as expressly amended hereby, each Borrower agrees that the Loan Documents are ratified and confirmed and shall remain in full force and effect and that it has no set off, counterclaim, defense or other claim or dispute with respect to any of the foregoing. The terms used but not defined herein shall have the respective meanings ascribed thereto in the Credit Agreement.

          4.3          This Amendment may be signed upon any number of counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument, and telecopied signatures shall be enforceable as originals.

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          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

	 	
WOLVERINE WORLD WIDE, INC.

By: /s/ S. Gulis Jr.

Its: EVP - CFO

	 	 
	 	
HUSH PUPPIES CANADA FOOTWEAR, LTD.

By: /s/ S. Gulis Jr.

Its: Director and Authorized Officer

	 	 
	 	
HUSH PUPPIES (U.K.) LTD.

By: /s/ S. Gulis Jr.

Its: Director and Authorized Officer

	 	 
	 	
MERRELL (EUROPE) LIMITED

By: /s/ S. Gulis Jr.

Its: Authorized Officer

	 	 
	 	
WOLVERINE EUROPE B.V.

By: /s/ S. Gulis Jr.

Its: Director

	 	 
	 	
WOLVERINE EUROPE LIMITED

By: /s/ NP Ottenwess

Its: Director

	 	 
	 	
WOLVERINE WORLD WIDE

EUROPE LIMITED

By: /s/ NP Ottenwess

3

	 	
Its: Director

4

	 	
BANK ONE, NA, as successor by merger to Bank

One, Michigan, as a Bank and as Agent

By: /s/ Glenn A. Currin

     Glenn A. Currin

      Its: Managing Director

5

	 	
HARRIS TRUST AND SAVINGS BANK,

     as a Bank and as Syndication Agent

By: /s/ Kirby M. Law

     Kirby M. Law

      Its: Vice President

6

	 	
COMERICA BANK,

     as a Bank and as Documentation Agent

By: /s/ Dan M. Roman

     Dan M. Roman

      Its: First Vice President

7

	 	
STANDARD FEDERAL BANK N.A., formerly

known as Michigan National Bank

By:

      Its:

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NATIONAL CITY BANK OF

MICHIGAN/ILLINOIS

By: /s/ William C. Goodhue

     William C. Goodhue

      Its: Senior Vice President

9

	 	
FIFTH THIRD BANK, formerly known as Old

Kent Bank

By: /s/ David A. Foote

     David A. Foote

      Its: Vice President

10

	 	
BANK ONE, NA, CANADA BRANCH

By: /s/ Glenn A. Currin

     Glenn A. Currin

      Its: Managing Director

11STOCK OPTION LOAN PROGRAM EXHIBIT 10.1

EXHIBIT 10.1

WOLVERINE WORLD WIDE, INC.

STOCK OPTION LOAN PROGRAM

(Revisions Effective July 30, 2002)

          A loan program has been established by the Company to assist certain current employees, directors and/or officers (to the extent permitted by applicable laws or regulations) with the exercise of stock options. This program enables these individuals ("Participants") to borrow up to 95% of the market value of the stock on the date of the loan (but not more than 95% of the option price). The loan is collateralized by 100% of the related shares of optioned stock. The following rules have been established.

	
1.
	
Only those Participants whose cumulative options are 500 shares or more are eligible. Also, you will become eligible under the loan program if you receive a later option grant which, when added to any prior options received, puts you up to the 500 share minimum.  Executive officers of the Company are not eligible to receive stock option loans, except as permitted by applicable laws or regulations.

	 	 
	
2.
	
"Executive Officers" are those employees of the Company falling within the definition of executive officers as set forth in Section 402(a) of the Sarbanes-Oxley Act of 2002 and related sections of the Securities Exchange Act of 1934 and rulings by the SEC as determined by the Board of Directors from time to time.

	 	 
	
3.
	
Interest Rate - The interest rate, fixed at the commencement of the loan, will be the greater of 6 1/2% per annum or the prime rate offered by Bank One of Chicago, Illinois on the business day prior to the date of commencement.  Interest will be billed and payable quarterly (March, June, September and December).

	 	 
	
4.
	
Each loan is repayable over a twelve (12) year period (or until termination of employment, if earlier). During the first five (5) years, payments of interest only are required. After five (5) years, quarterly principal payments of 3 3/4% (15% per year) are required, plus accrued interest, until the loan is repaid. In the event of termination of employment (excluding retirement, death or permanent disability), the unpaid principal and interest is due, in full, within thirty (30) days. Loans may be prepaid without penalty. In the event of retirement, death, or permanent disability, the full-unpaid principal and interest is due within twenty-four (24) months of the date of termination of employment.

	 	 
	
5.
	
The principal of any loan and/or accrued interest may be paid at anytime by surrendering shares of Company stock to the Company.  Subject to the requirements in Paragraph 6(c), the surrendered shares may be shares held as collateral for the loan being repaid or other shares held by the Participant; however, all shares surrendered must be fully vested and must have been held by the Participant for six months or more.  The surrendered shares will be applied to principal and/or interest at the market value of the shares on the day of such surrender (calculated as the average of the highest and lowest sale prices on the date of surrender or the last preceding trading day if the date of surrender is not a trading day).

	
6.
	
Subject to the requirements of Paragraph 6(c), the proceeds of any sale of stock acquired pursuant to a loan must be applied first to the payment of the loan and accrued interest. If any part of the stock is to be sold, a pro-rata portion (shares sold to total pledged) of the loan must be repaid first from the proceeds of the sale.

	
7.
	
(a)
	
Collateral of 100% of the stock exercised is required to be pledged for each loan.  The original stock pledged may relate only to the loan made against that stock purchase and cannot be used as further security for future loans until the original loan is paid off.

	 	
(b)
	
If the collateral value of the stock pledged falls below the loan balances for more than three (3) consecutive months, the Participant must either: (i) repay the loan at a rate equal to 2 1/2% of the difference per quarter until no shortfall exists, or (ii) pledge other unencumbered stock to secure the loan shortfall.  This is in addition to other required payments.

	 	
(c)
	
The Participant is not permitted to sell, withdraw, pledge or otherwise dispose of all or any part of the collateral for a loan until deficiency payments in (b) above have been repaid or until, as a result of the repayments and/or an increase in the market value of the underlying stock, the current loan is equal to or less than the current market value of the stock.

	 	
(d)
	
All loans are full recourse loans and, as permitted by law, the Company may pursue all assets of the Participant, including without limitation wages, bonuses and personal assets, in satisfaction of the loan.

	
8.
	
Existing stock option loans will, as necessary, convert to the new loan program under the following guidelines.

	 	
(a)
	
If required principal payments have not yet commenced under the original loan, repayment (principal and interest) will be governed by the new loan program.

	 	
(b)
	
A new note, if such is deemed necessary by the Company, must be executed.

	
9.
	
Participants will have the right to receive dividends on the stock and to vote the stock.

	 	 
	
10.
	
A promissory note, stock pledge agreement, and assignment of stock certificate to sell stock, in the form supplied by the Company, must be executed at the time of the loan.

	 	 
	
11.
	
Loans to Executive Officers and directors outstanding as of July 30, 2002, remain in effect in accordance with their existing terms which may not be amended, renewed or modified in any way unless later permitted by applicable laws and regulations.

	 	 
	
12.
	
Executive Officers and directors of the Company are excluded from participating in and receiving new loans under the Stock Option Loan Program only to the extent required to comply with applicable laws or regulations.  In the event that such loans are or become permitted to be made to Executive Officers and/or directors of the Company, this plan will be deemed to allow such loans with any limits or restrictions as may be necessary to comply with such laws or regulations as determined by the Board of Directors from time to time.

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