Document:

exv10w2

Exhibit 10.2

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”) is entered into as of March 1,
2009, by and between LACROSSE FOOTWEAR, INC., a Wisconsin corporation (“Borrower”), and WELLS FARGO
BANK, NATIONAL ASSOCIATION (“Bank”).

RECITALS

     Borrower has requested that Bank extend or continue credit to Borrower as described below, and
Bank has agreed to provide such credit to Borrower on the terms and conditions contained herein.

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Bank and Borrower hereby agree as follows:

ARTICLE I

CREDIT TERMS

     SECTION 1.1. LINE OF CREDIT.

     (a) Line of Credit. Subject to the terms and conditions of this Agreement, Bank
hereby agrees to make advances to Borrower from time to time under a revolving line of credit
(“Line of Credit”) up to and including June 30, 2012, not to exceed (i) at any time (other
than during each Reduction Period, as defined below), the aggregate principal amount of Thirty
Million Dollars ($30,000,000.00), and (ii) from and including each January 1 to and including each
May 31 (with each such period referred to as a “Reduction Period”), the aggregate principal
amount of Seventeen Million Five Hundred Thousand Dollars ($17,500,000.00), the proceeds of which
shall be used to finance the working capital requirements of Borrower and Danner, Inc., a Wisconsin
corporation (“Danner”) including transactions that are authorized herein. Borrower’s
obligation to repay advances under the Line of Credit shall be evidenced by a promissory note dated
as of March 1, 2009 in the form attached hereto as Exhibit A (“Line of Credit Note”), all
terms of which are incorporated herein by this reference. Bank represents and warrants to Borrower
that Bank has not assigned, endorsed or transferred the promissory note dated as of $30,000,000.00
dated as of October 1, 2005 or the promissory note dated as of $30,000,000.00 dated as of September
8, 2006 (collectively, the “Prior Notes”) and agrees that it shall not hereafter endorse, assign,
endorse or transfer the either of the Prior Notes.

     (b) Letter of Credit Subfeature. As a subfeature under the Line of Credit, Bank
agrees from time to time during the term thereof to issue or cause an affiliate to issue standby,
sight commercial or usance commercial letters of credit for the account of Borrower to finance the
backing of imports and exports (each, a “Letter of Credit” and collectively, “Letters
of Credit”);

 

 

provided however, that the aggregate undrawn amount of all outstanding Letters of Credit plus
the face amount of all outstanding drafts created under usance commercial Letter of Credit
(“Usance Drafts”), shall not at any time exceed Five Million Dollars ($5,000,000.00). The
form and substance of each Letter of Credit shall be subject to approval by Bank, in its sole
discretion. No Letter of Credit shall have an expiration date subsequent to the maturity date of
the Line of Credit. The undrawn amount of all Letters of Credit and the face amount of all
outstanding Usance Drafts shall be reserved under the Line of Credit and shall not be available for
borrowings thereunder. Each Letter of Credit shall be subject to the additional terms and
conditions of the Letter of Credit agreements, applications and any related documents required by
Bank in connection with the issuance thereof. Each drawing paid under a Letter of Credit shall be
deemed an advance under the Line of Credit and shall be repaid by Borrower in accordance with the
terms and conditions of this Agreement applicable to such advances; provided however, that if
advances under the Line of Credit are not available, for any reason, at the time any drawing is
paid, then Borrower shall immediately pay to Bank the full amount drawn, together with interest
thereon from the date such drawing is paid to the date such amount is fully repaid by Borrower, at
the variable Daily One Month LIBOR-based rate of interest applicable to advances under the Line of
Credit. In such event Borrower agrees that Bank, in its sole discretion, may debit any account
maintained by Borrower with Bank for the amount of any such drawing. Notwithstanding the
foregoing, usance commercial Letters of Credit shall contain such provisions and be issued in such
manner for such purpose as to satisfy Bank that any bankers’ acceptance created by Bank’s
acceptance of a draft thereunder shall be eligible for discount by a Federal Reserve Bank, will not
result in a liability of Bank subject to reserve requirements under any law, regulation or
administrative order, and will not cause Bank to violate any lending limit imposed upon Bank by any
law, regulation or administrative order. Usance commercial Letters of Credit shall provide for
drafts thereunder with terms which do not exceed the lesser of 90 days or such other period of time
as may be necessary for the acceptance created thereunder to be eligible for discount and otherwise
comply with this Agreement; provided however, that no usance commercial Letter of Credit shall
provide for drafts with a term which ends subsequent to the maturity of the Line of Credit The
amount of each matured Usance Draft shall be deemed an advance under the Line of Credit and shall
be repaid by Borrower in accordance with the terms and conditions of this Agreement applicable to
such advances; provided however, that if the Line of Credit is not available, for any reason
whatsoever, at the time any such acceptance matures, or if advances are not available under the
Line of Credit at such time due to any limitation on borrowings set forth herein, then Borrower
shall immediately pay to Bank the full amount of such Usance Draft, together with interest thereon
from the date such acceptance matures and is honored by Bank to the date such amount is fully paid
by Borrower, at the variable Daily One Month LIBOR-based rate of interest applicable to advances
under the Line of Credit. In such event, Borrower agrees that Bank, at Bank’s sole discretion, may
debit Borrower’s deposit account with Bank for the amount of any such Usance Draft.

     (c) Borrowing and Repayment. Borrower may from time to time during the term of the
Line of Credit borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject
to all of the limitations, terms and conditions contained herein or in the Line of Credit Note;
provided however, that the total outstanding borrowings, Letters of Credit and Usance Drafts under
the Line of Credit shall not at any time exceed the applicable maximum principal

 

 

amount available thereunder, as set forth in Section 1.1(a) above. The provisions of the Line of
Credit Note (as modified, replaced, renewed, or restated from time to time) are incorporated by
this reference herein.

     SECTION 1.2. INTEREST/FEES.

     (a) Interest. The outstanding principal balance of the Line of Credit shall bear
interest at the rate(s) of interest set forth in the Line of Credit Note. The amount of each draft
paid by Bank under any Letter of Credit shall bear interest from the date such draft is paid to the
date such amount is fully repaid by Borrower at the variable Daily One Month LIBOR-based rate of
interest applicable to the Line of Credit.

     (b) Computation and Payment. Interest shall be computed on the basis of a 360-day
year, actual days elapsed. Interest shall be payable at the times and place set forth in the Line
of Credit Note or, as applicable, in the Letter of Credit Agreement.

     (c) Annual Fee. Borrower shall pay to Bank an annual non-refundable commitment fee
for the Line of Credit equal to Ten Thousand Dollars ($10,000.00). Such fee shall be payable on
each June 1 through and including June 1, 2011 unless before that date the Bank has no further
commitments to make Line of Credit advances under the Loan Documents.

     (e) Letter of Credit Fees. Borrower shall pay to Bank (i) fees upon the issuance of
each Letter of Credit equal to 1.75% of the face amount thereof, and (ii) fees upon the payment or
negotiation of each drawing under any Letter of Credit and upon the occurrence of any other
activity with respect to any Letter of Credit (including without limitation, the transfer,
amendment or cancellation of any Letter of Credit) determined in accordance with Bank’s standard
fees and charges then in effect for such activity.

     (f) Acceptance Fees. For any bankers’ acceptance created hereunder by Bank’s
acceptance of a draft presented under a usance commercial Letter of Credit, Borrower shall pay to
Bank, in addition to such processing and other fees as may be due to Bank in connection with such
Letter of Credit, an acceptance fee for each such acceptance, payable on the date it is created,
determined in accordance with Bank’s standard fees and charges in effect at the time such
acceptance is created. Bank shall have no obligation to repay all or any portion any acceptance
fee in the event an acceptance is paid prior to maturity, by acceleration or otherwise.

     (g) Unused Commitment Fee. Borrower shall pay to Bank a fee equal to fifteen
hundredths of one percent (0.15%) per annum (computed on the basis of a 360-day year, actual days
elapsed) on the average daily unused amount of the Line of Credit (with outstanding advances,
Letters of Credit and Usance Drafts, without duplication, deemed to constitute utilization of the
Line of Credit), which fee shall be calculated on a monthly basis by Bank and shall be due and
payable by Borrower in arrears within fifteen days after the Bank submits an invoice therefor to
Borrower. The foregoing fee shall be calculated based on a Line of Credit of $17,500,000.00 during
the Reduction Periods.

 

 

     SECTION 1.3. DEBIT.

     Borrower authorizes Bank to collect all interest and fees due under the Line of Credit by
charging Borrower’s deposit account number 4100055821 with Bank, or any other deposit account
maintained by Borrower with Bank, for the full amount thereof. Should there be insufficient funds
in any such deposit account to pay all such sums when due, the full amount of such deficiency shall
be immediately due and payable by Borrower.

     SECTION 1.4. COLLATERAL.

     As security for all indebtedness of Borrower to Bank subject hereto, Borrower shall grant, and
shall cause Danner to grant to Bank security interests of first priority (subject to Permitted
Encumbrances, as defined in Section 5.8 below) in all Collateral (as defined in the Security
Agreement and Third Party Security Agreement attached hereto as Exhibits B and C, each, a
“Security Agreement”).

     Borrower shall reimburse Bank immediately upon demand for all reasonable costs and expenses
incurred by Bank in connection with any of the foregoing security, including without limitation,
filing and recording fees.

     Unless an Event of Default exists, none of Borrower or any Material Subsidiaries shall be
obligated to perfect the Bank’s security interest under a Security Agreement by any means other
than the filing and continuation in the states in the United States in which they are formed of a
UCC-1 financing statement covering the Collateral (as the term is defined in the Security
Agreements), except that:

     (a) with respect to chattel paper or instruments, if the amount owing to Borrower or a
Material Subsidiary thereunder exceeds $100,000.00, Borrower or the Material Subsidiary shall
surrender possession thereof to the Bank; and

     (b) with respect to raw materials and inventory of finished goods that are in transit to the
United States, Borrower or the Material Subsidiary shall either put Bank in possession of the
documents of title to such in-transit inventory, or there shall be a duly filed UCC-1 financing
statement of record with respect to the Borrower or the Material Subsidiary, as relevant, covering
the documents of title to such in-transit inventory.

     Upon the occurrence and during the continuance of an Event of Default, Borrower and the
Material Subsidiary shall immediately execute, obtain from third parties, deliver, file and record
such documentation as Bank reasonably requires in order to perfect the Bank’s security interest in
all Collateral.

     Upon Borrower’s or the relevant Material Subsidiary’s request made in connection with sales or
transfers of equipment, fixtures or improvements permitted under Section 6(c) of the Security
Agreements, Bank shall release its security interest therein of fact and record.

 

 

     SECTION 1.5. TERMS

References in this Agreement to fiscal quarters and fiscal years are to Borrower’s fiscal quarters
and fiscal years.

As used herein;

“AAA” has the meaning given to it in Section 7.11(b).

“Bankruptcy Code” has the meaning given to it in Section 6.1(f).

“Business Day” means any day except a Saturday, Sunday or any other day on which commercial banks
in Oregon are authorized or required by law to close.

“Current Ratio” has the meaning given to it in Section 4.9(d).

“Daily One Month LIBOR” has the meaning given to it in the Line of Credit Note”

“Danner” has the meaning given to it in Section 1.1(a).

“Event of Default” has the meaning given to it in Section 6.1.

“ERISA” has the meaning given to it in Section 2.9.

“GAAP” means generally accepted accounting principles in effect in the United States (or with
respect to a foreign Subsidiary, in the country of its formation or operations), consistently
applied.

“LaCrosse Denmark” has the meaning given to it in Section 2.12.

“LaCrosse Europe” has the meaning given to it in Section 2.12.

“LaCrosse International” has the meaning given to it in Section 2.12.

“Letter of Credit” has the meaning given to it in Section 1.1(b).

“Line of Credit Note” has the meaning given to it in Section 1.1(a).

“Loan Document” has the meaning given to it in Section 2.2.

“material” and “material adverse effect” have the meanings given to them in Section 2.11.

“Material Subsidiary” means Danner and any Subsidiary of Borrower that (including, without
duplication, the assets and revenues of its own Subsidiaries) represents five percent or more of
the consolidated assets or consolidated revenues of Borrower.

 

 

“Permitted Encumbrance” has the meaning given to it in Section 5.8.

“Permitted Transaction” has the meaning given to it in Section 5.5.

“Plan” has the meaning given to it in Section 2.9.

“Prior Note” has the meaning given to it in Section 1.1(a).

“Reduction Period” has the meaning given to it in Section 1.1(a).

“Rules” has the meaning given to it in Section 7.11(b).

“Security Agreement” has the meaning given to it in Section 1.3

“Subordinated Debt” has the meaning given to it in Section 4.9(a).

“Subsidiary” of a person or entity means a corporation, partnership, joint venture, limited
liability company or other business entity of which more than 50% of the stock or other equity
interests having ordinary voting power for the election of directors, managing general partners or
other governing body (other than stock or other equity interests having such power only by reason
of the happening of a contingency) are at the time beneficially owned, or the management of which
is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by
such person or entity.

“Tangible Net Worth” has the meaning given to it in Section 4.9(a).

“Third Party Obligor” has the meaning given to it in Section 6.1(d).

“Total Liabilities” has the meaning given to it in Section 4.9(b).

“Usance Draft” has the meaning given to it in Section 1.1(b)

In this Agreement words denoting the singular shall include the plural, and vice versa, and words
denoting any gender shall include all genders.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

     Borrower makes the following representations and warranties to Bank, which representations and
warranties shall survive the execution of this Agreement and shall continue in full force and
effect until the full and final payment, and satisfaction and discharge, of all obligations of
Borrower to Bank subject to this Agreement.

     SECTION 2.1. LEGAL STATUS. Borrower is a corporation, duly organized and existing and in good
standing under the laws of the State of Wisconsin, and is qualified or licensed to do business (and
is in good standing as a foreign corporation, if applicable) in all

 

 

jurisdictions in which such qualification or licensing is required or in which the failure to so
qualify or to be so licensed could have a material adverse effect on Borrower.

     SECTION 2.2. AUTHORIZATION AND VALIDITY. This Agreement and each promissory note, contract,
instrument and other document required hereby or at any time hereafter delivered to Bank in
connection herewith (collectively, the “Loan Documents”) have been duly authorized, and
upon their execution and delivery in accordance with the provisions hereof will constitute legal,
valid and binding agreements and obligations of Borrower or the party (other than Bank) which
executes the same, enforceable in accordance with their respective terms.

     SECTION 2.3. NO VIOLATION. The execution, delivery and performance by Borrower of each of the
Loan Documents do not violate any provision of any law or regulation, or contravene any provision
of the Articles of Incorporation or By-Laws of Borrower, or result in any breach of or default
under any contract, obligation, indenture or other instrument to which Borrower is a party or by
which Borrower may be bound.

     SECTION 2.4. LITIGATION. Other than as set forth in Schedule 2.4 hereto, there are no
pending, or to the best of Borrower’s knowledge material threatened, actions, claims,
investigations, suits or proceedings by or before any governmental authority, arbitrator, court or
administrative agency with uninsured claim(s) in excess of $1,000,000.00, individually or, with
respect to the claims of any one claimant, in the aggregate, or which could reasonably expected to
have a material adverse effect on the operation of Borrower other than those disclosed by Borrower
to Bank in writing prior to the date hereof.

     SECTION 2.5. CORRECTNESS OF FINANCIAL STATEMENT. The financial statement of Borrower dated
September 27, 2008, a true copy of which has been delivered by Borrower to Bank prior to the date
hereof, (a) is complete and correct and presents fairly the financial condition of Borrower, (b)
discloses all material liabilities of Borrower that are required to be reflected or reserved
against under GAAP, whether liquidated or unliquidated, fixed or contingent, and (c) has been
prepared in accordance with GAAP, all subject to normal year-end audit adjustments and the absence
of footnotes. Since the date of such financial statement there has been no material adverse change
in the financial condition of Borrower, nor has Borrower mortgaged, pledged, granted a security
interest in or otherwise encumbered any of its assets or properties except in favor of Bank,
Permitted Encumbrances, or as set forth in Schedule 2.5 hereto.

     SECTION 2.6. INCOME TAX RETURNS. Except as set forth in Schedule 2.6, Borrower has no
knowledge of any pending assessments or adjustments of its income tax payable with respect to any
year. Routine tax examinations with respect to which no underreporting or misreporting of material
information by Borrower is asserted by the relevant taxing authority or is known to Borrower’s
officers do not constitute breaches of this representation and warranty.

     SECTION 2.7. NO SUBORDINATION. There is no agreement, indenture, contract or instrument to
which Borrower is a party or by which Borrower may be bound that requires the

 

 

subordination in right of payment of any of Borrower’s obligations subject to this Agreement to any
other obligation of Borrower.

     SECTION 2.8. PERMITS, FRANCHISES. Borrower possesses, and will hereafter possess, all
permits, consents, approvals, franchises and licenses required and rights to all trademarks, trade
names, patents, and fictitious names, if any, necessary to enable it to conduct the business in
which it is now engaged in compliance with applicable law, except to the extent that non-compliance
with the foregoing could not be reasonably expected to have a material adverse effect of Borrower’s
consolidated operations or financial condition.

     SECTION 2.9. ERISA. Borrower is in compliance in all material respects with all applicable
provisions of the Employee Retirement Income Security Act of 1974, as amended or recodified from
time to time (“ERISA”), and all provisions of any defined employee pension benefit plan (as defined
in ERISA) maintained or contributed to by Borrower (each, a “Plan”). No Reportable Event as
defined in ERISA has occurred and is continuing with respect to any Plan. Borrower has met its
minimum funding requirements under ERISA with respect to each Plan. Each Plan will be able to
fulfill its benefit obligations as they come due in accordance with applicable provisions of the
Plan.

     SECTION 2.10. OTHER OBLIGATIONS. Borrower is not in material default on any obligation for
borrowed money or any purchase money obligation in excess of $500,000.00 or any other material
lease, commitment, contract, instrument or obligation.

     SECTION 2.11. ENVIRONMENTAL MATTERS. Except as disclosed in Schedule 2.11 hereto, (a)
Borrower is in compliance in all material respects with all applicable federal or state
environmental, hazardous waste, health and safety statutes, and any rules or regulations adopted
pursuant thereto, which govern or affect any of Borrower’s operations and/or properties, including
without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of
1980, the Superfund Amendments and Reauthorization Act of 1986, the Federal Resource Conservation
and Recovery Act of 1976, and the Federal Toxic Substances Control Act, as any of the same may be
amended, modified or supplemented from time to time, which, if not complied with, could reasonably
be expected to have a material adverse effect on Borrower, (b) none of the operations of Borrower
is the subject of any federal or state investigation evaluating whether any remedial action
involving a material expenditure is needed to respond to a release of any toxic or hazardous waste
or substance into the environment and (c) Borrower has no material contingent liability in
connection with any release of any toxic or hazardous waste or substance into the environment. As
used herein, the term “material” or “material adverse effect” means an expenditure or liability of
$1,000,000.00 or greater,

     SECTION 2.12. SUBSIDIARY. Danner, Lacrosse International, Inc., an Oregon corporation
(“LaCrosse International”), and LaCrosse Europe, Inc., an Oregon corporation (“LaCrosse
Europe”), are the only entities in existence as of the date hereof in which Borrower owns all
or a majority or a controlling share of the equity interests, and LaCrosse Europe ApS, a Danish
company (“LaCrosse Denmark”) is the only entity in existence as of the date hereof in which
Borrower indirectly owns all or a majority or a controlling share of the equity interests.

 

 

ARTICLE III

CONDITIONS

     SECTION 3.1. CONDITIONS OF EXTENSION OF CREDIT. The obligation of Bank to extend any credit
contemplated by this Agreement is subject to the fulfillment to Bank’s satisfaction of all of the
following conditions:

     (a) Approval of Bank Counsel. Bank’s counsel shall be satisfied that the Loan
Documents have been duly authorized, executed and delivered, Borrower exists and Bank’s security
interests have been perfected with the priorities required under the Loan Documents.

     (b) Documentation. Bank shall have received a fully executed copy of this Agreement
and, in form and substance satisfactory to Bank, each of the following:

	 	(i)	 	Revolving Line of Credit Note.
	 
	 	(ii)	 	Corporate Resolution: Borrowing.
	 
	 	(iii)	 	Resolution from Danner.
	 
	 	(iv)	 	Certificates of Incumbency.
	 
	 	(v)	 	Security Agreement.
	 
	 	(vi)	 	Third Party Security Agreement.
	 
	 	(vii)	 	Agreement and Acknowledgment of Security Interest (5).
	 
	 	(viii)	 	UCC-1 Financing Statement.
	 
	 	(ix)	 	First Amendment to Security Agreement
	 
	 	(x)	 	First Amendment to Third Party Security Agreement
	 
	 	(xi)	 	Officers Certificate — Borrower
	 
	 	(xii)	 	Officers Certificate — Danner

     (c) Financial Condition. There shall have been no material adverse change, as
determined by Bank in the exercise of its reasonable discretion, in the financial condition or
business of Borrower, nor any material decline, as determined by Bank in the exercise of its
reasonable discretion, in the market value of any collateral required hereunder or a substantial or
material portion of the assets of Borrower.

     (d) Insurance. Borrower shall have delivered to Bank evidence of insurance coverage
on all Borrower’s and Danner’s property, in form, substance, amounts, covering risks and issued by
companies reasonably satisfactory to Bank, and as to insurance covering Collateral, with loss
payable endorsements in favor of Bank and Borrower, as their interests may appear. Bank agrees
that as of the date hereof, Borrower’s and Danner’s insurance coverage is satisfactory to Bank.

     SECTION 3.2. CONDITIONS OF EACH EXTENSION OF CREDIT. The obligation of Bank to make each
extension of credit requested by Borrower hereunder shall be subject to the fulfillment to Bank’s
satisfaction of each of the following conditions:

 

 

     (a) Compliance. The representations and warranties contained herein and in each of
the other Loan Documents shall be true in all material respects on and as of the date of the
signing of this Agreement and on the date of each extension of credit by Bank pursuant hereto, with
the same effect as though such representations and warranties had been made on and as of each such
date, and on each such date, no Event of Default as defined herein, and no condition, event or act
which with the giving of notice or the passage of time or both would constitute such an Event of
Default, shall have occurred and be continuing or shall exist.

     (b) Letters of Credit. Bank shall have received a Letter of Credit Agreement in form
and content acceptable to Bank prior to the issuance of any Letter of Credit.

ARTICLE IV

AFFIRMATIVE COVENANTS

     Borrower covenants that so long as Bank remains committed to extend credit to Borrower
pursuant hereto, or any liabilities (whether direct or contingent, liquidated or unliquidated) of
Borrower to Bank under any of the Loan Documents remain outstanding, and until payment in full of
all obligations of Borrower subject hereto, Borrower shall (and, with respect to Sections 4.2, 4.4,
4.5, 4.6 and 4.7, shall cause all Material Subsidiaries to), unless Bank otherwise consents in
writing:

     SECTION 4.1. PUNCTUAL PAYMENTS. Punctually pay all principal, interest, fees or other
liabilities due under any of the Loan Documents at the times and place and in the manner specified
therein, and immediately upon demand by Bank, the amount by which the outstanding principal balance
of any credit subject hereto at any time exceeds any limitation on borrowings applicable thereto.

     SECTION 4.2. ACCOUNTING RECORDS. Maintain adequate books and records in accordance with GAAP,
and permit any representative of Bank, at any reasonable time, to inspect, audit and examine such
books and records, to make copies of the same, and to inspect the properties of Borrower and/or the
Material Subsidiaries.

     SECTION 4.3. FINANCIAL STATEMENTS. Provide to Bank all of the following, in form and detail
satisfactory to Bank:

     (a) not later than 90 days after and as of the end of each fiscal year, an audited financial
statement of Borrower, prepared by a certified public accountant acceptable to Bank, to include
balance sheet and income statement;

     (b) not later than 45 days after and as of the end of each fiscal quarter, a financial
statement of Borrower, prepared by Borrower, to include balance sheet and income statement;

     (c) contemporaneously with each annual and quarterly financial statement of Borrower required
hereby, a certificate of the president or chief financial officer of Borrower that (a) said
financial statements are accurate fairly present in all material respects the financial conditions,

 

 

results of operations and cash flows of Borrower (and in the case of financial statements
presented for the first, second and third fiscal quarters of the Borrower, subject to subject to
normal year-end audit adjustments and the absence of footnotes) (b) to the knowledge of such
officer there exists no Event of Default nor any condition, act or event which with the giving of
notice or the passage of time or both would constitute an Event of Default, and (c) discloses the
names of all Subsidiaries that in the preceding fiscal quarter have become Material Subsidiaries;

     (d) concurrently with the annual reports provided to Lender under Section 4.3(a), a copy of
the Borrower’s Securities and Exchange Commission 10-K filing covering the same fiscal year, and
concurrently with the quarterly reports provided to Lender under Section 4.3(b), a copy of the
Borrower’s Securities and Exchange Commission 10-Q filing covering the same fiscal quarter;

     (e) from time to time such other information as Bank may reasonably request.

     SECTION 4.4. COMPLIANCE. Preserve and maintain all licenses, permits, governmental approvals,
rights, privileges and franchises necessary for the conduct of its and the Material Subsidiaries’
businesses; and comply with the provisions of all documents pursuant to which Borrower is organized
and/or which govern Borrower’s and the Material Subsidiaries’ continued existence and with the
requirements of all laws, rules, regulations and orders of any governmental authority applicable to
Borrower, the Material Subsidiaries and/or their business, except to the extent that non-compliance
with the foregoing could not be reasonably expected to have a material adverse effect of Borrower’s
consolidated operations or financial condition.

     SECTION 4.5. INSURANCE. Maintain and keep in force insurance of the types and in amounts
customarily carried in lines of business similar to that of Borrower and Danner, including but not
limited to fire, extended coverage, public liability, flood, cargo, property damage and workers’
compensation, with all such insurance carried with companies and in amounts reasonably satisfactory
to Bank, and deliver to Bank from time to time at Bank’s request schedules setting forth all
insurance then in effect. Notwithstanding any provision to the contrary herein or in any other
Loan Document, Borrower and the Material Subsidiaries may use insurance proceeds paid by reason of
damage to or destruction of Collateral or for liabilities to repair or replace such Collateral or
to discharge covered liabilities (if no Event of Default then exists), (for which purpose Bank will
promptly execute the necessary pay orders or will release insurance proceeds) provided, that any
such proceeds not so used within 30 days after receipt thereof by Borrower or the Material
Subsidiaries shall be applied to reduce the outstanding principal balance of the Line of Credit.

     SECTION 4.6. FACILITIES. Keep all properties useful or necessary to Borrower’s or the
Material Subsidiaries’ businesses in good repair and condition, and from time to time make
necessary repairs, renewals and replacements thereto so that such properties shall be fully and
efficiently preserved and maintained, except to the extent that non-compliance with the foregoing
could not be reasonably expected to have a material adverse effect of Borrower’s consolidated
operations or financial condition.

 

 

     SECTION 4.7. TAXES AND OTHER LIABILITIES. Pay and discharge when due any and all
indebtedness, obligations, assessments and taxes, both real or personal, including without
limitation federal and state income taxes and state and local property taxes and assessments,
except such (a) as Borrower or any Material Subsidiary may in good faith contest or as to which a
bona fide dispute may arise, and (b) for which Borrower or such Material Subsidiary has made
provision, in accordance with GAAP, for eventual payment thereof in the event Borrower is obligated
to make such payment.

     SECTION 4.8. LITIGATION. Promptly give notice in writing to Bank of any litigation pending or
threatened against Borrower or Danner with a claim(s) in excess of an aggregate of $1,000,000.00.

     SECTION 4.9. FINANCIAL CONDITION. Maintain Borrower’s consolidated financial condition as
follows using GAAP (except to the extent modified by the definitions herein):

     (a) Tangible Net Worth, determined as of the end of each fiscal quarter, not less than
$40,000,000.00, increasing (on a permanent and cumulative basis) as of the end of each fiscal
quarter (commencing March 31, 2009), by an amount equal to 25% of Borrower’s net income after taxes
in the fiscal quarter then most recently ended (with no deduction for losses), with “Tangible
Net Worth” defined as the aggregate of total stockholders’ equity plus Subordinated Debt less
any intangible assets, and with “Subordinated Debt” defined as indebtedness subordinated in
right of payment to Borrower’s indebtedness to Bank pursuant to subordination agreements
satisfactory to Bank.

     (b) Total Liabilities divided by Tangible Net Worth not greater than 1.50 to 1.0 determined as
of the end of each fiscal quarter, with “Total Liabilities” defined as the aggregate of
current and non-current liabilities less Subordinated Debt, and with “Tangible Net Worth” as
defined above. Borrower will not change its fiscal year.

     (c) Net income after taxes not less than $1.00 on a trailing four-quarter basis, determined as
of each fiscal quarter end.

     (d) Current Ratio not less than 1.75 to 1.0, determined as of the end of each fiscal quarter
end, with “Current Ratio” defined as the ratio of current assets to total current
liabilities, and with current liabilities hereby deemed to include, without limitation, the then
outstanding principal amount of all liabilities, contingent or liquidated, under the Line of
Credit.

     SECTION 4.10. NOTICE TO BANK. Promptly after an officer of Borrower becomes aware of (but in
no event more than five (5) days after an officer of Borrower becomes aware of the occurrence of
each such event or matter) give written notice to Bank in reasonable detail of: (a) the occurrence
of any Event of Default, or any condition, event or act which with the giving of notice or the
passage of time or both would constitute an Event of Default; (b) any change in the name or the
organizational structure of Borrower; (c) the occurrence and nature of any Reportable Event or
Prohibited Transaction, each as defined in ERISA, or any funding deficiency with respect to any
Plan; or (d) any termination or cancellation (without prior or concurrent renewal or replacement)
of any insurance policy which Borrower is required to

 

 

maintain, or any uninsured or partially uninsured loss of or damage to property in the amount of
$1,000,000.00 or more.

     SECTION 4.11. NEW MATERIAL SUBSIDIARY. In the event that, at any time, non-Material
Subsidiaries of Borrower (including, without duplication, such Subsidiaries’ Subsidiaries)
represent, in the aggregate, more than 80% of the consolidated assets or consolidated revenues of
Borrower, Borrower shall, in writing to Bank, given concurrently with the reports given to Bank
pursuant to section 4.3(c), designate sufficient non-Material Subsidiaries to be (and which shall
be) deemed for all purposes Material Subsidiaries such that the remaining non-Material Subsidiaries
(including, without duplication, such Subsidiaries’ Subsidiaries) no longer represent more than 80%
of the consolidated assets or consolidated revenues of Borrower. New Material Subsidiaries shall
be deemed as such for purposes of the relevant representations, warranties, affirmative and
negative covenants and Events of Default at the beginning of the Borrower’s fiscal quarter that
immediately follows the fiscal quarter in which the new Material Subsidiary became a Material
Subsidiary.

ARTICLE V

NEGATIVE COVENANTS

     Borrower further covenants that so long as Bank remains committed to extend credit to Borrower
pursuant hereto, or any liabilities (whether direct or contingent, liquidated or unliquidated) of
Borrower to Bank under any of the Loan Documents remain outstanding, and until payment in full of
all obligations of Borrower subject hereto, Borrower will not (and will not cause or permit the
Material Subsidiaries to) without Bank’s prior written consent:

     SECTION 5.1. USE OF FUNDS. Use any of the proceeds of any credit extended hereunder except
for the purposes stated in Article I hereof.

     SECTION 5.2. DIVIDENDS, DISTRIBUTIONS. Pay any dividend or distribution either in cash, stock
or any other property on Borrower’s stock now or hereafter outstanding, nor redeem, retire,
repurchase or otherwise acquire any shares of any class of Borrower’s stock now or hereafter
outstanding in any fiscal year excess of an aggregate of $5,000,000.00 in any fiscal year.

     SECTION 5.3. CAPITAL EXPENDITURES. Make any additional investment in fixed assets in any
fiscal year in excess of an aggregate of $5,000,000.00, however, in fiscal year ending 2009, such
amount may be increased by up to an additional $2,500,000.00 in connection with a new factory for
Danner. Any amount of the allowed $7,500,000.00 in 2009 may be expended in connection with the new
factory for Danner.

     SECTION 5.4. OTHER INDEBTEDNESS. Create, incur, assume or permit to exist any indebtedness or
liabilities resulting from borrowings, loans or advances, whether secured or unsecured, matured or
unmatured, liquidated or unliquidated, joint or several, except (a) the liabilities of Borrower and
the Material Subsidiaries to Bank, (b) purchase money indebtedness incurred and liens therefor in
connection with the purchase of equipment (including leases

 

 

required to be capitalized under GAAP) and/or real estate for an aggregate purchase price not to
exceed $1,000,000.00 in any fiscal year, (c) any other liabilities of Borrower existing as of, and
disclosed to Bank prior to, the date hereof, and (d) liabilities secured by Permitted Encumbrances.

     SECTION 5.5. MERGER, CONSOLIDATION, TRANSFER OF ASSETS. Merge into or consolidate with any
other entity other than (a) the merger of a Material Subsidiary into Borrower, and (b) Permitted
Transactions (as defined below); make any substantial change in the nature of Borrower’s business
as conducted as of the date hereof; acquire all or substantially all of the assets of any other
entity other than Permitted Transactions; nor sell, lease, transfer or otherwise dispose of all or
a substantial or material portion of Borrower’s assets except (w) in the ordinary course of its
business, (y) the sale of bad or doubtful accounts (provided that all net proceeds of such sales
are promptly applied to reduce the outstanding principal balance of the Line of Credit) or (z) as
permitted in the Security Agreements executed by Borrower and the Material Subsidiaries.
“Permitted Transactions” means (i) mergers with other entities whose businesses are
substantially similar to that of Borrower’s or Danner’s so long as Borrower or a Material
Subsidiary is the surviving entity, (ii) the acquisition by Borrower or a Material Subsidiary of
all or substantially all of the assets of other entities or divisions thereof, (iii) the
acquisition by Borrower or a Material Subsidiary of not less than 50.1% of the outstanding
ownership interests in other entities; and, with respect to each of the foregoing, and (iv) prior
to entering into a definitive agreement, (aa) Borrower demonstrates to Bank’s satisfaction, on a
pro forma basis, that Borrower will remain in compliance with all of the financial covenants set
forth in Section 4.9, and (bb) no breach of this Agreement or any other Loan Document would exist
following such transaction.

     SECTION 5.6. GUARANTIES. Guarantee or become liable in any way as surety, endorser (other
than as endorser of negotiable instruments for deposit or collection in the ordinary course of
business), accommodation endorser or otherwise for, nor pledge or hypothecate any assets of
Borrower or any Material Subsidiary as security for, any liabilities or obligations of any other
person or entity, except any of the foregoing in favor of Bank.

     SECTION 5.7. LOANS, ADVANCES, INVESTMENTS. Make any loans or advances to or investments in
any person or entity, except:

     (a) any of the foregoing existing as of, and disclosed to Bank prior to, the date hereof;

     (b) loans or advances to employees or officers of Borrower or its Subsidiaries;

     (c) loans or advances to LaCrosse Denmark not exceeding the sum of DKK 20,000,000.00 in
principal at any one time, and extensions of trade credit to LaCrosse Denmark not exceeding USD
2,000,000.00 at any one time;

     (d) loans advances to, or investments in LaCrosse International not exceeding $1,500,000.00 in
any fiscal year;

 

 

     (e) loans or advances to, or investments in or to any Subsidiary that has not executed a
Security Agreement in favor of the Bank in substantially the form of the Danner Security Agreement,
in the ordinary course of business, in amounts not to exceed an aggregate of $1,000,000.00
outstanding at any time, and additional investments consisting of Permitted Transactions and
investments made in accordance with Borrower’s Investment Policy in effect as of the date hereof, a
copy of which has been delivered to Bank; and

     (f) loans or advances to, or investments in any amount in or to any Material Subsidiary that
has executed a Security Agreement in favor of the Bank in substantially the form of the Danner
Security Agreement.

In the event that as a result of a Permitted Transaction Borrower or a Material Subsidiary acquires
or forms a new subsidiary that satisfies the definition of Material Subsidiary, Borrower
acknowledges that it shall be deemed to be a Material Subsidiary hereunder and shall promptly
execute a Security Agreement in substantially the form of the Danner Security Agreement, provided,
however, that it shall not be required to grant a security interest in, or pledge or assign more
than sixty-five percent of its interest in, LaCrosse Denmark. Neither LaCrosse Denmark nor any
Material Subsidiary that is not incorporated or formed in the United States of America shall be
required to guaranty or grant security for any of the obligations of Borrower under the Loan
Documents.

     SECTION 5.8. PLEDGE OF ASSETS. Mortgage, pledge, grant or permit to exist a security interest
in, or lien upon, all or any portion of Borrower’s assets now owned or hereafter acquired, except
(i) any of the foregoing in favor of Bank or disclosed in Schedule 5.8 hereto, (ii) purchase money
liens in equipment and real estate, as applicable, purchased with the proceeds of the indebtedness
or leased as described in Section 5.4(b), and (iii) Permitted Encumbrances. The term
“Permitted Encumbrances” is defined as any of the following as to which no enforcement,
collection, execution, levy or foreclosure proceeding shall have been commenced, or that are
contested in good faith and for which adequate reserves are maintained: (a) liens for taxes,
assessments and governmental charges or levies; (b) materialmen’s, mechanics’, carriers’,
landlords’, laborers’ stevedores’ and repairmen’s liens that exist or arise in the ordinary course
of business; (c) warehousemen’s liens incurred by third parties for temporary storage that is not
arranged by Borrower or a Subsidiary (or a freight forwarder, agent or contractor therefor) for
goods while in transit in the ordinary course of business; (d) maritime liens that attach to the
relevant property as cargo as a matter of law if the cargo is insured against such liens under
insurance that has a deductible clause not exceeding $10,000 per occurrence; (e) purchase money
security interest and leases required to be capitalized under GAAP; (f) easements, rights of way
and other encumbrances on title to real property that do not render title to the property
encumbered thereby unmarketable or materially and adversely affect the use of such property for its
present purpose; (g) encumbrances against fixtures that are not granted by Borrower or Subsidiary;
(h) possession of or interests in security deposits (including interest earned thereon) held by or
for the benefit of lessors under leases (including capital leases) of real property or equipment;
(i) the effect of provisions in leases and applicable law that give preference to Borrower’s or
Subsidiary’s landlords over proceeds of government takings and condemnations; and (j) provisions of
leases and applicable law that convey or commit to the conveyance to landlords of fixtures and
improvements to leased premises.

 

 

     SECTION 5.9. LETTER AGREEMENT. For the avoidance of doubt the transactions and matters that
are the subject of the letter agreement dated October 3, 2008 between Borrower and Bank were and
remain approved, any provisions of this Agreement (or its predecessors to the contrary
notwithstanding).

ARTICLE VI

EVENTS OF DEFAULT

     SECTION 6.1. The occurrence of any of the following shall constitute an “Event of
Default” under this Agreement:

     (a) Borrower shall fail to pay when due any principal, interest, fees or other amounts payable
under any of the Loan Documents.

     (b) Any financial statement or certificate furnished to Bank in connection with, or any
representation or warranty made by Borrower or any other party under this Agreement or any other
Loan Document shall prove to be incorrect, false or misleading in any material respect when
furnished or made.

     (c) Any default in the performance of or compliance with any obligation, agreement or other
provision contained herein or in any other Loan Document (other than those referred to in
subsections (a) and (b) above), and with respect to any such default which by its nature can be
cured, such default shall continue unremedied for a period of twenty (20) days from its occurrence.

     (d) Any default in the payment or performance of any obligation, or any defined event of
default, under the terms of any contract or instrument (other than any of the Loan Documents)
pursuant to which Borrower, a Material Subsidiary or any guarantor hereunder (with each such
guarantor referred to herein as a “Third Party Obligor”) has incurred any debt or other
liability to any person or entity (other than to Borrower or a Subsidiary thereof), including Bank
and with respect to any such default which by its nature can be cured, such default shall continue
unremedied for a period of twenty (20) days from its occurrence, and, if such debt or liability is
owed to a party other than Bank or an affiliate thereof, or Borrower or a Subsidiary thereof, the
amount thereof exceeds $2,000,000.00, and either, such debt or liability is then due and payable in
full, or the holder of such debt or liability is entitled, by reason of such default, to declare
the same due and payable in full. As of the date hereof, there are no Third Party Obligors.

     (e) The filing of a judgment lien against Borrower, a Material Subsidiary or any Third Party
Obligor; or the recording of any abstract of judgment against Borrower, a Material Subsidiary or
any Third Party Obligor in any county in which Borrower, a Material Subsidiary or such Third Party
Obligor has an interest in real property; or the service of a notice of levy and/or of a writ of
attachment or execution, or other like process, against the assets of Borrower, a Material
Subsidiary or any Third Party Obligor; or the entry of a judgment against Borrower, a Material
Subsidiary or any Third Party Obligor; and with respect to each of the foregoing, the uninsured
amount in dispute exceeds $2,000,000.00 and the filing, recording, service, or proceeding in
question is not stayed, dismissed, or released (as applicable) or security is not

 

 

posted in a manner and amount reasonably satisfactory to Bank or the applicable court within 60
days after its occurrence.

     (f) Borrower or any Third Party Obligor shall become insolvent, or shall suffer or consent to
or apply for the appointment of a receiver, trustee, custodian or liquidator of itself or any of
its property, or shall generally fail to pay its debts as they become due, or shall make a general
assignment for the benefit of creditors; Borrower or any Third Party Obligor shall file a voluntary
petition in bankruptcy, or seeking reorganization, in order to effect a plan or other arrangement
with creditors or any other relief under the Bankruptcy Reform Act, Title 11 of the United States
Code, as amended or recodified from time to time (“Bankruptcy Code”), or under any state or
federal law granting relief to debtors, whether now or hereafter in effect; or any involuntary
petition or proceeding pursuant to the Bankruptcy Code or any other applicable state or federal law
relating to bankruptcy, reorganization or other relief for debtors is filed or commenced against
Borrower, a Material Subsidiary or any Third Party Obligor (and the same is not dismissed within 60
days after its commencement, or Borrower, a Material Subsidiary or any Third Party Obligor shall
file an answer admitting the jurisdiction of the court and the material allegations of any such
involuntary petition; or Borrower, a Material Subsidiary or any Third Party Obligor shall be
adjudicated a bankrupt, or an order for relief shall be entered against Borrower, a Material
Subsidiary or any Third Party Obligor by any court of competent jurisdiction under the Bankruptcy
Code or any other applicable state or federal law relating to bankruptcy, reorganization or other
relief for debtors.

     (g) There shall exist or occur any material event or condition which Bank, in its commercially
reasonable discretion, believes impairs, or is substantially likely to impair, the prospect of
payment or performance by Borrower of its obligations under any of the Loan Documents and the same
is not remedied within 30 days after written notice from Bank to Borrower.

     (h) The dissolution or liquidation of any of Borrower, a Material Subsidiary or Third Party
Obligor which is a corporation, partnership, joint venture or other type of entity; or Borrower,
Subsidiary or any such Third Party Obligor, or any of their directors, stockholders or members,
shall take action seeking to effect the dissolution or liquidation of such Borrower, Material
Subsidiary or Third Party Obligor and such action is not dismissed or abandoned within 60 days
after its commencement.

     SECTION 6.2. REMEDIES. Upon the occurrence of any Event of Default: (a) all indebtedness of
Borrower under each of the Loan Documents, any term thereof to the contrary notwithstanding, shall
at Bank’s option and without notice become immediately due and payable without presentment, demand,
protest or notice of dishonor, all of which are hereby expressly waived by each Borrower; (b) at
the Bank’s sole option, the obligation, if any, of Bank to extend any further credit under any of
the Loan Documents shall immediately cease and terminate; and (c) Bank shall have all rights,
powers and remedies available under each of the Loan Documents, or accorded by law, including
without limitation the right to resort to any or all security for any credit subject hereto and to
exercise any or all of the rights of a beneficiary or secured party pursuant to applicable law.
All rights, powers and remedies of Bank may be exercised at any time by Bank and from time to time
after the occurrence of an Event of Default, are cumulative

 

 

and not exclusive, and shall be in addition to any other rights, powers or remedies provided by law
or equity.

ARTICLE VII

MISCELLANEOUS

     SECTION 7.1. NO WAIVER. No delay, failure or discontinuance of Bank in exercising any right,
power or remedy under any of the Loan Documents shall affect or operate as a waiver of such right,
power or remedy; nor shall any single or partial exercise of any such right, power or remedy
preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any
other right, power or remedy. Any waiver, permit, consent or approval of any kind by Bank of any
breach of or default under any of the Loan Documents must be in writing and shall be effective only
to the extent set forth in such writing.

     SECTION 7.2. NOTICES. All notices, requests and demands which any party is required or may
desire to give to any other party under any provision of this Agreement or the Loan Documents must
be in writing delivered to each party at the following address:

	BORROWER:  	 	LACROSSE FOOTWEAR, INC.

17634 NE Airport Way

Portland, OR 97230
	 
	 	 	Attention: Chief Financial Officer or President
	 
	BANK:  	 	WELLS FARGO BANK, NATIONAL ASSOCIATION

Portland Regional Commercial Banking Office

1300 S.W. Fifth Avenue

MAC P6101-133

Portland OR, 97208
	 
	 	 	Attention: James R. Bednark Senior Vice-President

or to such other address as any party may designate by written notice to all other parties. Each
such notice, request and demand shall be deemed given or made as follows: (a) if sent by hand
delivery, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3)
days after deposit in the U.S. mail, first class and postage prepaid; and (c) if sent by telecopy,
upon receipt.

     SECTION 7.3. COSTS, EXPENSES AND ATTORNEYS’ FEES. Borrower shall pay to Bank immediately upon
demand the full amount of all commercially reasonable payments, advances, costs and expenses,
including reasonable attorneys’ fees (to include outside counsel fees and all customary allocated
costs of Bank’s in-house counsel), expended or incurred by Bank in connection with the negotiation
and preparation of this Agreement and the other Loan Documents, and the preparation of any
amendments and waivers hereto and thereto, and

 

 

including out of pocket expenses incurred in the Bank’s continued administration of the Loan
Documents. The non-prevailing party shall pay to the prevailing party immediately upon demand the
full amount of all payments, advances, charges, costs and expenses, including reasonable attorneys’
fees (to include outside counsel fees and all allocated costs of in-house counsel), expended or
incurred by the prevailing party in connection with (a) the enforcement of Bank’s rights and/or the
collection of any amounts which become due to Bank under any of the Loan Documents, and (b) the
prosecution or defense of any action in any way related to any of the Loan Documents, including
without limitation, any action for declaratory relief, whether incurred at the trial or appellate
level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in
connection with any bankruptcy proceeding (including without limitation, any adversary proceeding,
contested matter or motion brought by Bank or any other person) relating to any Borrower or
Material Subsidiary.

     SECTION 7.4. SUCCESSORS, ASSIGNMENT. This Agreement shall be binding upon and inure to the
benefit of the heirs, executors, administrators, legal representatives, successors and assigns of
the parties; provided however, that Borrower may not assign or transfer its interest hereunder
without Bank’s prior written consent. Bank reserves the right to sell, assign, transfer, negotiate
or grant participations in all or any part of, or any interest in, Bank’s rights and benefits under
each of the Loan Documents, subject to Bank providing 30 days prior written notice to Borrower,
except in the event of an assignment by reason of a merger of Bank. In connection therewith, Bank
may disclose all documents and information which Bank now has or may hereafter acquire relating to
any credit subject hereto, Borrower or its business, or any collateral required hereunder, subject
to a confidentiality agreement reasonably acceptable to Bank and Borrower.

     SECTION 7.5. ENTIRE AGREEMENT; AMENDMENT. This Agreement and the other Loan Documents
constitute the entire agreement between Borrower and Bank with respect to each credit subject
hereto and supersede all prior negotiations, communications, discussions and correspondence
concerning the subject matter hereof. This Agreement may be amended or modified only in writing
signed by each party hereto. This Agreement amends and restates in its entirety the Credit
Agreement dated of April 15, 2004, as amended and restated. All references to a Credit Agreement
in any of the other Loan Documents shall be deemed to mean and refer to this Agreement.

     SECTION 7.6. NO THIRD PARTY BENEFICIARIES. This Agreement is made and entered into for the
sole protection and benefit of the parties hereto and their respective permitted successors and
assigns, and no other person or entity shall be a third party beneficiary of, or have any direct or
indirect cause of action or claim in connection with, this Agreement or any other of the Loan
Documents to which it is not a party.

     SECTION 7.7. TIME. Time is of the essence of each and every provision of this Agreement and
each other of the Loan Documents.

     SECTION 7.8. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be

 

 

ineffective only to the extent of such prohibition or invalidity without invalidating the remainder
of such provision or any remaining provisions of this Agreement.

     SECTION 7.9. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each
of which when executed and delivered shall be deemed to be an original, and all of which when taken
together shall constitute one and the same Agreement.

     SECTION 7.10. GOVERNING LAW. This Agreement shall be governed by and construed in accordance
with the laws of the State of Oregon.

     SECTION 7.11. ARBITRATION.

     (a) Arbitration. The parties hereto agree, upon demand by any party, to submit to
binding arbitration all claims, disputes and controversies between or among them, whether in tort,
contract or otherwise arising out of or relating to in any way (i) the loan and related Loan
Documents which are the subject of this Agreement and its negotiation, execution,
collateralization, administration, repayment, modification, extension, substitution, formation,
inducement, enforcement, default or termination; or (ii) requests by Borrower for additional
credit.

     (b) Governing Rules. Any arbitration proceeding will (i) proceed in a location in
Oregon selected by the American Arbitration Association (“AAA”); (ii) be governed by the
Federal Arbitration Act (Title 9 of the United States Code), notwithstanding any conflicting choice
of law provision in any of the documents between the parties; and (iii) be conducted by the AAA, or
such other administrator as the parties shall mutually agree upon, in accordance with the AAA’s
commercial dispute resolution procedures, unless the claim or counterclaim is at least
$1,000,000.00 exclusive of claimed interest, arbitration fees and costs in which case the
arbitration shall be conducted in accordance with the AAA’s optional procedures for large, complex
commercial disputes (the commercial dispute resolution procedures or the optional procedures for
large, complex commercial disputes to be referred to, as applicable, as the “Rules”). If
there is any inconsistency between the terms hereof and the Rules, the terms and procedures set
forth herein shall control. Any party who fails or refuses to submit to arbitration following a
demand by any other party shall bear all costs and expenses incurred by such other party in
compelling arbitration of any dispute. Nothing contained herein shall be deemed to be a waiver by
any party that is a bank of the protections afforded to it under 12 U.S.C. §91 or any similar
applicable state law.

          (c) No Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration
requirement does not limit the right of any party to (i) foreclose against real or personal
property collateral; (ii) exercise self-help remedies relating to collateral or proceeds of
collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such
as replevin, injunctive relief, attachment or the appointment of a receiver, before during or after
the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the
right or obligation of any party to submit any dispute to arbitration or reference hereunder,
including those arising from the exercise of the actions detailed in sections (i), (ii) and (iii)
of this paragraph.

 

 

     (d) Arbitrator Qualifications and Powers. Any arbitration proceeding in which the
amount in controversy is $5,000,000.00 or less will be decided by a single arbitrator selected
according to the Rules, and who shall not render an award of greater than $5,000,000.00. Any
dispute in which the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote
of a panel of three arbitrators; provided however, that all three arbitrators must actively
participate in all hearings and deliberations. The arbitrator will be a neutral attorney licensed
in the State of Oregon or a neutral retired judge of the state or federal judiciary of Oregon, in
either case with a minimum of ten years experience in the substantive law applicable to the subject
matter of the dispute to be arbitrated. The arbitrator will determine whether or not an issue is
arbitratable and will give effect to the statutes of limitation in determining any claim. In any
arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the
arbitrator’s discretion) any pre-hearing motions which are similar to motions to dismiss for
failure to state a claim or motions for summary adjudication. The arbitrator shall resolve all
disputes in accordance with the substantive law of Oregon and may grant any remedy or relief that a
court of such state could order or grant within the scope hereof and such ancillary relief as is
necessary to make effective any award. The arbitrator shall also have the power to award recovery
of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems
necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the
Oregon Rules of Civil Procedure or other applicable law. Judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction. The institution and maintenance of an
action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a
waiver of the right of any party, including the plaintiff, to submit the controversy or claim to
arbitration if any other party contests such action for judicial relief.

     (e) Discovery. In any arbitration proceeding discovery will be permitted in
accordance with the Rules. All discovery shall be expressly limited to matters directly relevant
to the dispute being arbitrated and must be completed no later than 20 days before the hearing date
and within 180 days of the filing of the dispute with the AAA. All requests for an extension of
the discovery periods, or any discovery disputes, will be subject to final determination by the
arbitrator upon a showing that the request for discovery is essential for the party’s presentation
and that no alternative means for obtaining information is available.

     (f) Class Proceedings and Consolidations. The resolution of any dispute arising
pursuant to the terms of this Agreement shall be determined by a separate arbitration proceeding
and such dispute shall not be consolidated with other disputes or included in any class proceeding
except for consolidations with other disputes between the parties hereto arising out of or relating
to this Agreement, the other Loan Documents or the matters described in Section 7.11(a)(i) or (ii).

     (g) Payment Of Arbitration Costs And Fees. The arbitrator shall award all costs and
expenses of the arbitration proceeding.

     (h) Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and
the parties shall take all action required to conclude any arbitration proceeding within 180 days
of the filing of the dispute with the AAA. No arbitrator or other party to an arbitration
proceeding

 

 

may disclose the existence, content or results thereof, except for disclosures of information
by a party required in the ordinary course of its business or by applicable law or regulation. If
more than one agreement for arbitration by or between the parties potentially applies to a dispute,
the arbitration provision most directly related to the Loan Documents or the subject matter of the
dispute shall control. This arbitration provision shall survive termination, amendment or
expiration of any of the Loan Documents or any relationship between the parties.

UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY BANK AFTER OCTOBER 3, 1989
CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD
PURPOSES OR SECURED SOLELY BY THE BORROWER’S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION
AND BE SIGNED BY BANK TO BE ENFORCEABLE.

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

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	     	 	WELLS FARGO BANK,	 	     
	LACROSSE FOOTWEAR, INC.	 	     	 	NATIONAL ASSOCIATION	 	     
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Joseph P. Schneider
	 	     
	 	By:
	 	/s/ James R. Bednark
	 	     
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Joseph P. Schneider

President/Chief Executive Officer

Executed March 9, 2009
	 	     
	 	 	 	James R. Bednark

Senior Vice President

Executed March 9, 2009
	 	     
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ David P. Carlson	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	David P. Carlson

Executive Vice President/Chief
Financial Officer

Executed March 9, 2009	 	 	 	 	 	 	 	 

 

 

SCHEDULE 2.4

LITIGATION, CLAIMS, ETC.

Borrower intends to file a complaint in federal court related to a patent infringement dispute with
Cole Haan Holdings, Inc., a wholly owned subsidiary of Nike, Inc. Borrower believes that certain
Cole Haan styles utilize Danner’s patented technology. A likely outcome of the filing of this
complaint is that litigation between the parties will commence before the matter is resolved, and
Borrower anticipates that that Cole Haan may file a counterclaim (for which Borrower knows of no
legal basis).

 

 

SCHEDULE 2.5

ENCUMBRANCES

NONE

 

 

SCHEDULE 2.6

INCOME TAX RETURNS

Borrower is currently undergoing a routine U.S. federal tax examination, and Borrower is unable to
reasonably estimate the ultimate outcome of such examination. However, it is likely that an
adjustment will be made resulting in a payment to the IRS for such tax years currently under
examination. Borrower is no longer subject to U.S. federal tax examinations by tax authorities for
years prior to the tax year ended December 31, 2004.

 

 

SCHEDULE 2.11

ENVIRONMENTAL MATTERS

Pursuant to an Agreement as to Environmental Matters dated May 9,1997, between The Trane Company
(“Trane”) and Borrower, Trane and Borrower acknowledged the presence of contaminants (including
volatile organic compounds and hydraulic oil) on real property located at 1319 St. Andrews Street,
LaCrosse, Wisconsin, which property Trane was concurrently with such Agreement selling to LaCrosse
Industrial Park Corporation, which was in turn concurrently leasing such property to Borrower.
Borrower does not anticipate an adverse impact on its leasehold interest in such property, or
environmental liabilities as to the leased property in excess of $250,000, due to the presence of
such contaminants. As described in the Agreement as to Environmental Matters, Trane has indemnified
Borrower from liabilities arising from these contaminants.

Claims have been asserted against Borrower by a group of performing parties (the “Performing
Parties”) engaged in removing PCB-contaminated soil at the Ward Transformer Superfund Site in
Raleigh, North Carolina pursuant to an administrative order on consent between the Performing
Parties and the Environmental Protection Agency (“EPA”). The Performing Parties have asserted that
Borrower is liable to them for a portion of the costs incurred in the removal action, based on
Borrower’s apparent consignment of a single used electrical transformer to the Ward Transformer
Company for resale in 1995. At present Borrower does not believe that the potential liability in
this matter would exceed the threshold of $1,000,000.

 

 

SCHEDULE 5.8

ENCUMBRANCES

NONE

 

 

EXHIBIT A

REVOLVING LINE OF CREDIT NOTE

			
	 	 	 
	$30,000,000.00
	 	Portland, Oregon

March 1, 2009

     FOR VALUE RECEIVED, the undersigned LaCrosse Footwear, Inc. (“Borrower”) promises to pay to
the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) at its office at Portland RCBO, 1300
S.W. Fifth Avenue, Portland, OR 97201, or at such other place as the holder hereof may designate,
in lawful money of the United States of America and in immediately available funds, the principal
sum of $30,000,000.00, or so much thereof as may be advanced and be outstanding, with interest
thereon, to be computed on each advance from the date of its disbursement as set forth herein.

DEFINITIONS:

     As used herein, the following terms shall have the meanings set forth after each, and any
other term defined in this Note shall have the meaning set forth at the place defined:

     (a) “Business Day” means any day except a Saturday, Sunday or any other day on which
commercial banks in Oregon are authorized or required by law to close.

     (b) “Daily One Month LIBOR” means for any day, the rate of interest equal to LIBOR then in
effect for delivery for a one (1) month period.

     (c) “Fixed Rate Term” means a period commencing on a Business Day and continuing for 1 month
or 3 months, as designated by Borrower, during which all or a portion of the outstanding principal
balance of this Note bears interest determined in relation to LIBOR; provided however, that no
Fixed Rate Term may be selected for a principal amount less than $250,000.00; and provided further,
that no Fixed Rate Term shall extend beyond the scheduled maturity date hereof, however, if any
Fixed Rate Term would end on a day which is not a Business Day, then such Fixed Rate Term shall be
extended to the next succeeding Business Day.

     (d) “LIBOR” means the rate per annum (rounded upward, if necessary, to the nearest whole 1/8
of 1%) and determined pursuant to the following formula:

	 	 	 	 	 
	LIBOR =
	 	Base LIBOR
	 	 
	 
	 	 	 	 
	 
	 	100% - LIBOR Reserve Percentage	 	 

     (i) “Base LIBOR” means the rate per annum for United States dollar deposits quoted by Bank (A)
for the purpose of calculating effective rates of interest for loans making reference to LIBOR, as
the Inter-Bank Market Offered Rate, with the understanding that such rate shall be one quoted by
Bank to its borrowers (whose loans bear interest in relation to such rate) generally for the
purpose of calculating effective rates of interest for loans making reference thereto, on the first
day of a Fixed Rate Term for delivery of funds on said date for a period of time approximately
equal to the number of days in such Fixed Rate Term and in an amount approximately equal to the
principal amount to which such Fixed Rate Term applies, or (B) for the purpose of calculating
effective rates of interest for loans making reference to the

 

 

Daily One Month LIBOR, as the Inter-Bank Market Offered Rate in effect from time to time for
delivery of funds for one (1) month in amounts approximately equal to the principal amount of such
loans. Borrower understands and agrees that Bank may base its quotation of the Inter-Bank Market
Offered Rate upon such offers or other market indicators of the Inter-Bank Market as Bank in its
discretion deems appropriate including, but not limited to, the rate offered for U.S. dollar
deposits on the London Inter-Bank Market. If on any date of determination a LIBOR rate cannot be
established under this Note, the rate publicly announced at that time as the Bank’s Prime Rate
shall be substituted for the relevant period of time, and the LIBOR rate shall be determined again
on the next interest rate determination date.

     (ii) “LIBOR Reserve Percentage” means the reserve percentage prescribed by the Board of
Governors of the Federal Reserve System (or any successor) for “Eurocurrency Liabilities” (as
defined in Regulation D of the Federal Reserve Board, as amended), adjusted by Bank for expected
changes in such reserve percentage during the applicable Fixed Rate Term.

INTEREST:

     (a) Interest. The outstanding principal balance of this Note shall bear interest
(computed on the basis of a 360-day year, actual days elapsed) as selected pursuant to paragraph
(b) below, either (i) at a fluctuating rate per annum equal to 1.75% above the Daily One Month
LIBOR in effect from time to time, or (ii) at a fixed rate per annum determined by Bank to be 1.75%
above LIBOR in effect on the first day of the applicable Fixed Rate Term. When interest is
determined in relation to the Daily One Month LIBOR, each change in the rate of interest hereunder
shall become effective each Business Day that the Bank determines that the Daily One Month LIBOR
has changed. With respect to each LIBOR selection hereunder, Bank is hereby authorized to note the
date, principal amount, interest rate and Fixed Rate Term applicable thereto (if any) and any
payments made thereon on Bank’s books and records (either manually or by electronic entry) and/or
on any schedule attached to this Note, which notations shall be prima facie evidence of the
accuracy of the information noted.

     (b) Selection of Interest Rate Options. At such time as Borrower requests an advance
hereunder, and at the end of each Fixed Rate Term, Borrower shall give Bank notice specifying: (i)
the interest rate option selected by Borrower; (ii) the principal amount subject thereto; and (iii)
for each LIBOR selection (other than a selection of Daily One Month LIBOR), the length of the
applicable Fixed Rate Term; provided, when a Fixed Rate Term expires while an Event of Default has
occurred and is continuing, then, at the sole option of the Bank the LIBOR interest rate basis for
the relevant loan advances shall be the Daily One Month LIBOR Rate in effect from time to time.
Any such notice may be given by telephone (or such other electronic method as Bank may permit) so
long as, with respect to each LIBOR selection, (A) if requested by Bank, Borrower provides to Bank
written confirmation thereof not later than three (3) Business Days after such notice is given, and
(B) such notice is given to Bank prior to 10:00 a.m. on the first day of the Fixed Rate Term, or at
a later time during any Business Day if Bank, at it’s sole option but without obligation to do so,
accepts Borrower’s notice and quotes a fixed rate to Borrower. If Borrower does not immediately
accept a fixed rate when quoted by Bank, the quoted rate shall expire and any subsequent LIBOR
request from Borrower shall be subject to a redetermination by Bank of the applicable fixed rate.
Principal evidenced by this Note may be continued by Borrower at the end of the Fixed Rate Term
applicable thereto so that all or a portion thereof bears interest determined in relation to the
Daily One Month LIBOR or to LIBOR for a new Fixed Rate Term designated by Borrower. At any time
any portion of this Note bears interest determined in relation to the Daily One Month LIBOR,
Borrower may convert

 

 

$250,000.00 or more thereof so that it bears interest determined in relation to LIBOR for a Fixed
Rate Term designated by Borrower. If no specific designation of interest is made at the time any
advance is requested hereunder or at the end of any Fixed Rate Term, Borrower shall be deemed to
have made a Daily One Month LIBOR interest selection for such advance or the principal amount to
which such Fixed Rate Term applied.

     (c) Taxes and Regulatory Costs. Borrower shall pay to Bank immediately upon demand,
in addition to any other amounts due or to become due hereunder, any and all (i) withholdings,
interest equalization taxes, stamp taxes or other taxes (except income and franchise taxes) imposed
by any domestic or foreign governmental authority and related in any manner to LIBOR, and (ii)
costs incurred by Bank as a result of future supplemental, emergency or other changes in the LIBOR
Reserve Percentage, increases in assessment rates imposed by the Federal Deposit Insurance
Corporation, or similar requirements or costs imposed by any domestic or foreign governmental
authority or resulting from compliance by Bank with any future request or directive (whether or not
having the force of law) from any central bank or other governmental authority and related in any
manner to LIBOR to the extent they are not included in the calculation of LIBOR. In determining
which of the foregoing are attributable to any LIBOR option available to Borrower hereunder, any
reasonable allocation made by Bank among its operations shall be conclusive and binding upon
Borrower.

     (d) Payment of Interest. Interest accrued on this Note shall be payable on the last
day of each month, commencing March 31, 2009.

     (e) Default Interest. From and after the maturity date of this Note, or such earlier
date as all principal owing hereunder becomes due and payable by acceleration or otherwise, the
outstanding principal balance of this Note shall bear interest until paid in full at an increased
rate per annum (computed on the basis of a 360-day year, actual days elapsed) equal to 2% above the
rate of interest from time to time applicable to this Note.

BORROWING AND REPAYMENT:

     (a) Borrowing and Repayment. Borrower may from time to time during the term of this
Note borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of
the limitations, terms and conditions of this Note and of any document executed in connection with
or governing this Note; provided, (i) Fixed Rate Term borrowings shall be in an amount of not less
than $250,000.00, and (ii) Daily One Month LIBOR borrowings may be in any amount; and provided
further, however, that the total outstanding borrowings under this Note shall not at any time
exceed the principal amount available at such time under the Line of Credit as defined in and as
set forth in the Credit Agreement (defined below). The unpaid principal balance of this obligation
at any time shall be the total amounts advanced hereunder by the holder hereof less the amount of
principal payments made hereon by or for any Borrower, which balance may be endorsed hereon from
time to time by the holder. The outstanding principal balance of this Note shall be due and
payable in full on June 30, 2012.

     (b) Advances. Advances hereunder, to the total amount of the principal sum stated
above, may be made by the holder at the oral or written request of (i) David P. Carlson, Joseph P.
Schneider, James Fontaine or Kirk Layton, any one acting alone (or such other individuals as the
president or chief financial officer of Borrower shall designate from time to time by written
notice to Bank), who are authorized to request advances and direct the disposition of any advances
until written notice of the revocation of such authority is received by the holder at the office
designated above, or (ii) any person, with respect to advances deposited

 

 

to the credit of any deposit account of Borrower that is maintained with Bank, which advances, when
so deposited, shall be conclusively presumed to have been made to or for the benefit of each
Borrower regardless of the fact that persons other than those authorized to request advances may
have authority to draw against such account. The holder shall have no obligation to determine
whether any person requesting an advance is or has been authorized by Borrower.

     (c) Application of Payments. Each payment made on this Note shall be credited first,
to any interest then due and second, to the outstanding principal balance hereof. All payments
credited to principal shall be applied first, to the outstanding principal balance of this Note
which bears interest determined in relation to the Daily One Month LIBOR, if any, and second, to
the remaining outstanding principal balance of this Note which bears interest determined in
relation to LIBOR, with such payments applied in succession to the Fixed Rate Term advances in
order of their successive maturities from the payment date.

PREPAYMENT:

     (a) Daily One Month LIBOR. Borrower may prepay principal on any portion of this Note which
bears interest determined in relation to the Daily One Month LIBOR at any time, in any amount and
without any penalty or prepayment fee.

     (b) LIBOR. Borrower may prepay principal on any LIBOR-based advance which bears
interest determined in relation to LIBOR at any time and in the minimum amount of $100,000.00;
provided however, that if the outstanding principal balance of such portion of this Note is less
than said amount, the minimum prepayment amount shall be the entire outstanding principal balance
thereof. In consideration of Bank providing this prepayment option to Borrower, or if any such
portion of this Note shall become due and payable at any time prior to the last day of the Fixed
Rate Term applicable thereto by acceleration or otherwise, Borrower shall pay to Bank immediately
upon demand a fee which is the sum of the discounted differences for the period from the day of
prepayment through the day on which such Fixed Rate Term matures, calculated as follows for each
such month:

	 	(i)	 	Determine the amount of remaining interest which would have
accrued on the amount prepaid at the interest rate applicable to such amount had it
remained outstanding until the last day of the Fixed Rate Term applicable thereto.
	 
	 	(ii)	 	Subtract from the amount determined in (i) above the amount of
interest which would have accrued for the period on the amount prepaid for the
remaining term of such Fixed Rate Term at LIBOR in effect on the date of prepayment
for new loans made for such term and in a principal amount equal to the amount
prepaid.
	 
	 	(iii)	 	If the result obtained in (ii) for any month is greater than zero,
discount that difference by LIBOR used in (ii) above.

Borrower acknowledges that prepayment of such amount may result in Bank incurring additional costs,
expenses and/or liabilities, and that it is difficult to ascertain the full extent of such costs,
expenses and/or liabilities. Borrower, therefore, agrees to pay the above-described prepayment fee
and agrees that said amount represents a reasonable estimate of the prepayment costs, expenses
and/or liabilities of Bank. If Borrower fails to pay any prepayment fee when due, the amount of
such prepayment fee shall thereafter bear interest until paid at a rate per annum

 

 

2.000% above the Daily One Month LIBOR in effect from time to time (computed on the basis of a
360-day year, actual days elapsed).

EVENTS OF DEFAULT:

     This Note is made pursuant to and is subject to the terms and conditions of that certain
Second Amended and Restated Credit Agreement between Borrower and Bank dated as of March 1, 2009,
as amended from time to time (the “Credit Agreement”). Any default in the payment or performance
of any obligation under this Note, or any defined event of default under the Credit Agreement,
shall constitute an “Event of Default” under this Note.

MISCELLANEOUS:

     (a) Remedies. Upon the occurrence of any Event of Default, the holder of this Note,
at the holder’s option, may declare all sums of principal and interest outstanding hereunder to be
immediately due and payable without presentment, demand, notice of nonperformance, notice of
protest, protest or notice of dishonor, all of which are expressly waived by each Borrower, and the
obligation, if any, of the holder to extend any further credit hereunder shall immediately cease
and terminate. The non-prevailing party shall pay to the prevailing party immediately upon demand
the full amount of all payments, advances, charges, costs and expenses, including reasonable
attorneys’ fees (to include outside counsel fees and all allocated costs of in-house counsel),
expended or incurred by the non-prevailing party in connection with (a) the enforcement of Bank’s
rights and/or the collection of any amounts which become due to Bank under this Note, and (b) the
prosecution or defense of any action in any way related to this Note, including without limitation,
any action for declaratory relief, whether incurred at the trial or appellate level, in an
arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with
any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter
or motion brought by Bank or any other person) relating to any Borrower or Subsidiary (as the term
is defined in the Credit Agreement).

     (b) Obligations Joint and Several. Should more than one person or entity sign this
Note as a Borrower, the obligations of each such Borrower shall be joint and several.

     (c) Governing Law. This Note shall be governed by and construed in accordance with
the laws of the State of Oregon.

[Space intentionally left blank]

 

 

UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY BANK AFTER OCTOBER 3, 1989
CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD
PURPOSES OR SECURED SOLELY BY THE BORROWER’S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION
AND BE SIGNED BY BANK TO BE ENFORCEABLE.

This Note amends, replaces and supersedes the Revolving Line of Credit Note in the principal amount
of $30,000,000.00 dated as of September 1, 2006 executed by Borrower pursuant to the Credit
Agreement.

     IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above.

	 	 	 	 	 
	LACROSSE FOOTWEAR, INC.

 	 	 
	By:  	/s/ Joseph P. Schneider
 	 	 
	 	Joseph P. Schneider 	 	 
	 	President/Chief Executive Officer

Executed March 9, 2009	 
	 
	 	 	 
	By:  	/s/ David P. Carlson
 	 	 
	 	David P. Carlson 	 	 
	 	Executive Vice President/Chief Financial Officer

Executed March 9, 2009	 	 
	 

 

 

EXHIBIT B

FIRST AMENDMENT TO SECURITY AGREEMENT

     THIS FIRST AMENDMENT TO SECURITY AGREEMENT (this. “Amendment”) is entered into as of March 1,
2009, by and between LACROSSE FOOTWEAR, INC., a Wisconsin corporation (“Borrower”) and WELLS FARGO
BANK, NATIONAL ASSOCIATION (“Bank”).

RECITALS

     WHEREAS, Borrower is the grantor of a Security Agreement granted in favor of Bank dated as of
April 15,2004 (as amended, the “Security Agreement”).

     WHEREAS, Borrower is currently indebted to Bank pursuant to the terms and conditions of that
certain Second Amended and Restated Credit Agreement between Borrower and Bank dated as of March 1,
2009, as amended from time to time, which is the “Credit Agreement” as that term is used in the
Security Agreement.

     WHEREAS, Bank and Borrower have agreed to certain changes in the terms and conditions set
forth in the Security Agreement and have agreed to amend the Security Agreement to reflect said
changes.

     NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

	1.	 	Section 2 of the Security Agreement is amended to read as follows in its entirety:
	 
	 	 	OBLIGATIONS SECURED. The obligations secured hereby are the payment and performance of: (a)
all present and future Indebtedness of Debtor to Bank; (b) all obligations of Debtor and
rights of Bank under this Agreement; and (c) all present and future obligations of Debtor to
Bank of other kinds. The word “Indebtedness” is used herein in its most comprehensive sense
and includes any and all advances, debts, obligations and liabilities of Debtor, heretofore,
now or hereafter made, incurred or created, whether voluntary or involuntary and however
arising, whether due or not due, absolute or contingent, liquidated or unliquidated,
determined or undetermined, and whether Debtor may be liable individually or jointly with
others, or whether recovery upon such Indebtedness may be or hereafter becomes
unenforceable.
	 
	2.	 	Section 5 of the Security Agreement is amended to read as follows in its entirety:
	 
	 	 	REPRESENTATIONS AND WARRANTIES. Debtor represents and warrants to Bank that: (a) Debtor’s
legal name is exactly as set forth on the first page of this Agreement, and all of Debtor’s
organizational documents or agreements delivered to Bank are complete and accurate in every
respect; (b) Debtor is the owner and has possession or control of the Collateral and
Proceeds, except security deposits (and interest thereon), goods in transit or that are
temporarily in the possession of repairmen, product testing services, or potential buyers or
vendors as samples, or goods in storage in the ordinary course of business; (c) Debtor has
the exclusive right to grant a security interest in the Collateral and Proceeds; (d) all
Collateral and Proceeds are genuine, free from liens, adverse claims, setoffs, default,
prepayment, defenses and conditions precedent of any kind or character, except the lien
created hereby, or Permitted Encumbrances, as defined in the Credit Agreement of even date
herewith between Debtor and Bank, as

1

 

	 	 	amended, renewed or restated from time to time (the “Credit Agreement”), as otherwise
agreed to by Bank, or as heretofore disclosed by Debtor to Bank, in writing; (e) all
statements contained herein and, where applicable, in the Collateral are true and complete
in all material respects; and (f) no financing statement covering any of the Collateral or
Proceeds, and naming any secured party other than Bank, is on file in any public office.
	 
	3.	 	Sections 6(a) and (b) of the Security Agreement are amended to read as follows in their
entirety:
	 
	 	 	    (a) Debtor agrees in general: (i) to pay Indebtedness secured hereby when due; (ii) to
indemnify Bank against all losses, claims, demands, liabilities and expenses of every kind
caused by property subject hereto, except to the extent caused by Bank after taking
possession or control thereof; (iii) to pay all reasonable costs and expenses, including
reasonable attorneys’ fees, incurred by Bank in the perfection and preservation of the
Collateral or Bank’s interest therein and/or the realization, enforcement and exercise of
Bank’s rights, powers and remedies hereunder; (iv) to permit Bank to exercise its powers;
(v) to execute and deliver such documents as Bank deems necessary to create, perfect and
continue the security interests contemplated hereby; (vi) not to change its name, and as
applicable, its chief executive office, its principal residence or the jurisdiction in which
it is organized and/or registered without giving Bank prior written notice thereof; (vii)
not to change the places where Debtor keeps any Collateral (except security deposits (and
interest thereon), goods in transit, goods that are temporarily in the possession of
repairmen, product testing services, or potential buyers or vendors as samples, or goods in
storage in the ordinary course of business) or Debtor’s records concerning the Collateral
and Proceeds without giving Bank prior written notice of the address to which Debtor is
moving same; and (viii) to cooperate with Bank in perfecting all security interests granted
herein as required in the Credit Agreement and in obtaining such agreements from third
parties as Bank deems necessary, proper or convenient in connection with the preservation,
perfection or enforcement of any of its rights hereunder. Upon the occurrence and during the
continuance of an Event of Default, Debtor shall immediately execute, obtain from third
parties, deliver, file and record such documentation as Bank reasonably requires in order to
perfect the Bank’s security interest in all Collateral.
	 
	 	 	     (b) Debtor agrees with regard to the Collateral and Proceeds, unless Bank agrees
otherwise in writing: (i) that Bank is authorized to file financing statements in the name
of Debtor to perfect Bank’s security interest in Collateral and Proceeds; (ii) where
applicable, to insure the tangible moveable Collateral (other than warehouse receipts, bills
of sale, bills of lading and other documents, instruments, and money) with Bank named as a
loss payee as its interest may appear, in form, substance and amounts, under agreements,
against risks and liabilities, and with insurance companies satisfactory to Bank; (iii)
where applicable, to operate the Collateral in accordance with all applicable statutes,
rules and regulations relating to the use and control thereof, and not to use any Collateral
for any unlawful purpose or in any way that would void any insurance required to be carried
in connection therewith; (iv) not to remove the Collateral (other than goods in transit,
goods that are temporarily in the possession of repairmen, product testing services, or
potential buyers or vendors as samples, or goods in storage in the ordinary course of
business) from Debtor’s premises, except (A) for deliveries to buyers in the ordinary course
of Debtor’s business, and deliveries of damaged, obsolete, surplus or worn-out property,
and (B) Collateral which consists of mobile goods as

2

 

	 	 	defined in the Oregon Uniform Commercial Code, in which case Debtor agrees not to remove or
permit the removal of such Collateral from its state of domicile for a period in excess of
thirty (30) calendar days; (v) to pay when due all license fees, registration fees and
other charges in connection with any Collateral; (vi) not to permit any lien on the
Collateral or Proceeds, including without limitation, liens arising from repairs to or
storage of the Collateral, except in favor of Bank or as set forth in the Credit Agreement,
or Permitted Encumbrances; (vii) not to sell, hypothecate or dispose of, nor permit the
transfer by operation of law of, any of the Collateral or Proceeds or any interest therein,
except sales of inventory to buyers in the ordinary course of Debtor’s business, sales of
damaged, obsolete, surplus, or worn-out property, or as otherwise permitted herein or in
the Credit Agreement; (viii) to permit Bank to inspect the Collateral at any reasonable
time; (ix) to keep, in accordance with generally accepted accounting principles, complete
and accurate records regarding all Collateral and Proceeds, and to permit Bank to inspect
the same and make copies thereof at any reasonable time; (x) if requested by Bank during
the continuance of an Event of Default, to receive and use reasonable diligence to collect
Collateral consisting of accounts and other rights to payment and Proceeds, in trust and as
the property of Bank, and to immediately endorse as appropriate and deliver such Collateral
and Proceeds to Bank daily in the exact,form,in which they are received together with a
collection report in form satisfactory to Bank; (xi) intentionally deleted; (xii) to give
only normal allowances and credits and to advise Bank thereof immediately in writing if
they affect any rights to payment or Proceeds in any material respect; (xiii) from time to
time, when requested by Bank, to prepare and deliver a schedule of all Collateral and
Proceeds subject to this Agreement and during the continuance of an Event of Default to
assign in writing and deliver to Bank all accounts, contracts, leases and other chattel
paper, instruments, documents and other evidences thereof; (xiv) in the event Bank elects
to receive payments of rights to payment or Proceeds hereunder during the continuance of an
Event of Default, to pay all expenses incurred by Bank in connection therewith, including
expenses of accounting, correspondence, collection efforts, reporting to account or
contract debtors, filing, recording, record keeping and expenses incidental thereto; and
(xv) to provide any service and do any other acts which may be necessary to maintain,
preserve and protect all Collateral and, as appropriate and applicable, to keep all
Collateral in good and saleable condition, and to deal with the Collateral, all in
accordance with the standards and practices adhered to generally by users and manufacturers
of like property, including with respect to defective and returned products (which may be
repaired, or disposed of in any lawful manner); and (xvi) to keep all Collateral and
Proceeds. free and clear of all defenses, rights of offset and counterclaims, subject to
offsets in the ordinary course of business for defective inventory.
	 
	4.	 	Section 7 of the Security Agreement Is amended to read as follows in its entirety:
	 
	 	 	POWERS OF BANK. Debtor appoints Bank its true attorney in fact to perform any of the
following powers, which are coupled with an interest, are irrevocable until termination of
this Agreement and may be exercised from time to time by Bank’s officers and employees, or
any of them, if Debtor is in default (unless otherwise set forth herein): (a) to perform
any obligation of Debtor hereunder in Debtor’s name or
otherwise; (b) to give notice to
account debtors or others of Bank’s rights in the Collateral and Proceeds, to enforce or
forebear from enforcing the same and make extension and modification agreements with
respect thereto; (c) to release persons liable on Collateral or Proceeds and to give
receipts and acquittances and compromise disputes in connection therewith; (d) to release
security; (e) to resort to security in any order; (f) to prepare, execute, file,

3

 

	 	 	record or deliver notes, assignments, schedules, designation statements, financing
statements, continuation statements, termination statements, statements of assignment,
applications for registration or like papers to perfect, preserve or release Bank’s
interest in the Collateral and Proceeds; (g) to receive, open and read mail addressed to
Debtor, and promptly deliver the originals thereof (or, if the mail consists of Collateral
or Proceeds, copies) to Debtor; (h) to take cash, instruments for the payment of money and
other property to which Bank is entitled; (i) at any time whether or not a default exists,
to verify facts concerning the Collateral and Proceeds by inquiry of obligors thereon, or
otherwise, in its own name or a fictitious name; (j) to endorse, collect, deliver and
receive payment under instruments for the payment of money constituting or relating to
Proceeds; (k) to prepare, adjust, execute, deliver and receive payment under insurance
claims, and to collect and receive payment of and endorse any instrument in payment of loss
or returned premiums or any other insurance refund or return, and to apply such amounts
received by Bank, at Bank’s sole option, toward repayment of the Indebtedness or, where
appropriate, replacement of the Collateral; (I) to exercise all rights, powers and remedies
which Debtor would have, but for this Agreement, with respect to all Collateral and
Proceeds subject hereto; (m) at any reasonable time whether or not a default exists, to
enter onto Debtor’s premises in inspecting the Collateral; (n) to make withdrawals from and
to close deposit accounts or other accounts with any financial institution, wherever
located, into which Proceeds may have been deposited, and to apply funds so withdrawn to
payment of the Indebtedness; (o) to preserve or release the interest evidenced by chattel
paper to which Bank is entitled hereunder and to endorse and deliver any evidence of title
incidental thereto; and (p) to do all acts and things and execute all documents in the name
of Debtor or otherwise, deemed by Bank as necessary, proper and convenient In connection
with, at any time whether or not a default exists, the preservation of Collateral or
perfection of security interests therein (as required in the Credit Agreement), or, after
default, the enforcement, of its rights hereunder.
	 
	5.	 	Section 8 of the Security Agreement is amended to read as follows in its entirety:
	 
	 	 	PAYMENT OF PREMIUMS, TAXES, CHARGES, LIENS AND ASSESSMENTS. Debtor agrees to pay or secure
by bond (or contest in good faith, provided adequate reserves are made therefor and no
enforcement proceedings against any Collateral has been instituted that are not stayed or
dismissed within sixty days thereafter), prior to delinquency, all insurance premiums,
taxes, charges, liens and assessments against the Collateral and Proceeds, and upon the
failure of Debtor to do so, Bank at its option may pay any of them and shall be the sole
judge of the legality or validity thereof and the amount necessary to discharge the same.
Any such payments made by Bank shall be obligations of Debtor to Bank, due and payable
immediately upon demand, together with interest at a rate at a fluctuating rate per annum
equal to 1.75% above the Daily One Month LIBOR in effect from time to time (“Applicable
Rate”), and shall be secured by the Collateral and Proceeds, subject to all terms and
conditions of this Agreement.
	 
	6.	 	Section 10 of the Security Agreement is amended to read as follows in its entirety:
	 
	 	 	REMEDIES. Upon the occurrence of any Event of Default, Bank shall have the right to declare
immediately due and payable all or any Indebtedness secured hereby and to terminate any
commitments to make loans or otherwise extend credit to Debtor. Bank shall have all other
rights, powers, privileges and remedies granted to a secured party upon default under the
Oregon Uniform Commercial Code or otherwise provided by law,

4

 

	 	 	including without limitation, the right (a) to contact all persons obligated to Debtor on
any Collateral or Proceeds and to instruct such persons to deliver all Collateral and/or
Proceeds directly to Bank, and (b) to sell, lease, license or otherwise dispose of any or
all Collateral. All rights, powers, privileges and remedies of Bank shall be cumulative. No
delay, failure or discontinuance of Bank in exercising any right, power, privilege or remedy
hereunder shall affect or operate as a waiver of such right, power, privilege or remedy; nor
shall any single or partial exercise of any such right, power, privilege or remedy preclude,
waive or otherwise affect any other or further exercise thereof or the exercise of any other
right, power, privilege or remedy. Any waiver, permit, consent or approval of any kind by
Bank of any default hereunder, or any such waiver of any provisions or conditions hereof,
must be in writing and shall be effective only to the extent set forth in writing. It is
agreed that public or private sales or other dispositions, for cash or on credit, to a
wholesaler or retailer or investor, or user of property of the types subject to this
Agreement, or public auctions, are all commercially reasonable since differences in the
prices generally realized in the different kinds of dispositions are ordinarily offset by
the differences in the costs and credit risks of such dispositions. While an Event of
Default exists: (a) Debtor will deliver to Bank from time to time, as requested by Bank,
current lists of all Collateral and Proceeds; (b) Debtor will not dispose of any Collateral
or Proceeds except on terms approved by Bank or that fulfill contracts of sale previously
entered into in the ordinary course of business; (c) at Bank’s request, Debtor will assemble
and deliver all Collateral and Proceeds, and books and records pertaining thereto, to Bank
at a reasonably convenient place designated by Bank; and (d) Bank may, without notice to
Debtor, enter onto Debtor’s premises and take possession of the Collateral. With respect to
any sale or other disposition by Bank of any Collateral subject to this Agreement, Debtor
hereby expressly grants to Bank the right to sell such Collateral using any or all of
Debtor’s trademarks, trade names, trade name rights and/or proprietary labels or marks.
Debtor further agrees that Bank shall have no obligation to process or prepare any
Collateral for sale or other disposition.
	 
	7.	 	Section 15 of the Security Agreement is amended to read as follows in its entirety:
	 
	 	 	COSTS, EXPENSES AND ATTORNEYS’ FEES. The non-prevailing party shall pay to the prevailing
party immediately upon demand the full amount of all payments, advances, charges, costs and
expenses, including reasonable attorneys’ fees, (to include outside counsel fees and all
allocated costs of in-house counsel), expended or incurred by the non-prevailing party in
connection with (a) the enforcement of Bank’s rights and/or the collection of any amounts
which become due to Bank under this Agreement, and (b) the prosecution or defense of any
action in any way related to this Agreement, including without limitation, any action for
declaratory relief, whether incurred at the trial or appellate level, in an arbitration
proceeding or otherwise, and including any of the foregoing incurred in connection with any
bankruptcy proceeding (including without limitation, any adversary proceeding, contested
matter or motion brought by Bank or any other person) relating to Debtor or Subsidiary. All
of the foregoing shall be paid by Debtor with interest from the date of demand until paid
in full at a rate per annum equal to two percent (2.00%) above the Applicable Rate.

5

 

	8.	 	The final two paragraphs of the Security Agreement are hereby amended to read as follows
in their entirety:
	 
	 	 	Debtor warrants that the address of Its chief executive office is 17634 NE Airport Way,
Portland OR 97230, or such other address of which the Debtor notifies the Bank from time to
time.
	 
	 	 	Debtor warrants that the tangible Collateral (except goods in transit or in possession of
repairmen) is located or domiciled at the following additional addresses: 12722 NE Airport
Way, Portland, OR 97230; 1629 Caledonia Street, LaCrosse, Wl 54603; 1325 St. Andrew St.,
LaCrosse, Wl 54603; 5352 Performance Way, Whitestown IN 46075; and 17634 NE Airport Way,
Portland OR 97230. Debtor sells inventory in the ordinary course of business to LaCrosse
Denmark, which stores it at Snorresgad 22,2300 Copenhagen, Denmark or at Scan Global
Logistics, True Mollevej 1,8381 Tilst, Denmark, or in transit, and which ships inventory
under customary sale and shipping terms to its customers, and to vendors as samples, and
which disposes of defective or out of date inventory in the ordinary course of business.

[Space intentionally left blank]

6

 

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

	 	 	 	 	 
	 	LACROSSE FOOTWEAR, INC.

 	 
	 	By:  	/s/ Joseph P. Schneider
 	 
	 	 	Joseph P. Schneider 	 
	 	 	President/Chief Executive Officer

Executed March 9, 2009 	 
	 
	 	 	 
	 	By:  	/s/ David P. Carlson
 	 
	 	 	David P. Carlson 	 
	 	 	Executive Vice President/Chief
Financial Officer

Executed March 9, 2009 	 
	 
	 	WELLS FARGO BANK, 

NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ James R. Bednark
 	 
	 	 	James R. Bednark 	 
	 	 	Senior Vice President 
Executed March 9, 2009 	 
	 

7

 

EXHIBIT C

FIRST AMENDMENT TO THIRD PARTY SECURITY AGREEMENT

     THIS FIRST AMENDMENT TO THIRD PARTY SECURITY AGREEMENT (this “Amendment”) is entered into as
of March 1, 2009, by and between DANNER, INC., a Wisconsin corporation (“Grantor”) and WELLS FARGO
BANK, NATIONAL ASSOCIATION (“Bank”).

RECITALS

     WHEREAS, Grantor is the grantor of a Third Party Security Agreement granted in favor of Bank
dated as of April 15, 2004 (as amended, the “Security Agreement”).

     WHEREAS, Grantor’s parent corporation is currently indebted to Bank pursuant to the terms and
conditions of that certain Second Amended and Restated Credit Agreement between Borrower and Bank
dated as of March 1, 2009, as amended from time to time, which is the “Credit Agreement” as that
term is used in the Security Agreement.

     WHEREAS, Bank and Grantor have agreed to certain changes in the terms and conditions set forth
in the Security Agreement and have agreed to amend the Security Agreement to reflect said changes.

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

[COPY VERBATIM THE AMENDMENTS TO THE LACROSSE SECURITY AGREEMENT]

	1.	 	Section 5 (a) of the Security Agreement is amended to read as follows in its entirety:

(a) Owner represents and warrants to Bank that: (i) Owner’s legal name is exactly as set
forth on the first page of this Agreement, and all of Owner’s organizational documents or
agreements delivered to Bank are complete and accurate in every respect; (ii) Owner is the
owner and has possession or control of the Collateral and Proceeds, except security deposits
(and interest thereon), goods in transit or that are temporarily in the possession of
repairmen, product testing services, or potential buyers or vendors as samples, or goods in
storage in the ordinary course of business; (iii) Owner has the exclusive right to grant a
security interest in the Collateral and Proceeds; (iv) all Collateral and Proceeds are
genuine, free from liens, adverse claims, setoffs, default, prepayment, defenses and
conditions
precedent of any kind or character, except the lien created hereby, or Permitted
Encumbrances, as defined in the Credit Agreement of even date herewith between Borrower and
Bank, as amended, renewed or restated from time to time (the “Credit Agreement”), as
otherwise agreed to by Bank, or as heretofore disclosed by Owner to Bank, in writing; (e)
all statements contained herein and, where applicable, in the Collateral are true and
complete in all material respects; (f) no financing statement covering any of the Collateral
or Proceeds, and naming any secured party other than Bank, is on file in any public office;
and (g) to the extent that Collateral included in the Borrowing Base consists of particular
rights to payment in, excess of $100,000.00, all persons appearing to be obligated on these
particular items of Collateral and Proceeds have authority and capacity to contract and are
bound as they appear to be, all property subject to chattel paper has been properly
registered and

1

 

filed in compliance with law and to perfect the interest of Owner in such property, and
all such Collateral and Proceeds comply with all applicable laws concerning form, content
and manner of preparation and execution, including where applicable Federal Reserve
Regulation Z and any State consumer credit laws. A breach of the representation made in
clause (g) above shall be deemed not to constitute an Event of
Default if Borrower notifies
Bank in writing after first becoming aware of any such breach and the applicable right to
payment is thereafter not included in the Borrowing Base.

	2.	 	Section 6 of the Security Agreement is amended to read as follows in its entirety:

	 	 	COVENANTS OF OWNER.

     (a) Owner agrees in general: (i) to indemnify Bank against all losses, claims, demands,
liabilities and expenses of every kind caused by property subject hereto, except to the
extent caused by Bank after taking possession or control thereof; (ii) to pay all reasonable
costs and expenses, including reasonable attorneys’ fees, incurred by Bank in the perfection
and preservation of the Collateral or Bank’s interest therein and/or the realization,
enforcement and exercise of Bank’s rights, powers and remedies hereunder; (iii) to permit
Bank to exercise its powers; (iv) to execute and deliver such documents as Bank deems
necessary to create, perfect and continue the security interests contemplated hereby; (v)
not to change Owner’s name, and as applicable, its chief executive office, its principal
residence or the jurisdiction in which it is organized and/or registered without giving Bank
prior written notice thereof; (vi) not to change the places where Owner keeps any Collateral
(except security deposits (and interest thereon), goods in transit, goods that are
temporarily in the possession of repairmen, product testing services, or potential buyers or
vendors as samples, or goods in storage in the ordinary course of business) or Owner’s
records concerning the Collateral and Proceeds without giving Bank prior written notice of
the address to which Owner is moving same; and (vii) to cooperate with Bank in perfecting
all security interests granted herein as required in the Credit Agreement and in obtaining
such agreements from third parties as Bank deems necessary, proper or convenient in
connection with the preservation, perfection or enforcement of any of its rights hereunder.
Upon the occurrence and during the continuance of an Event of Default, Owner shall
immediately execute, obtain from third parties, deliver, file and record such documentation
as Bank reasonably requires in order to perfect the Bank’s security interest in all
Collateral.

     (b) Owner agrees with regard to the Collateral and Proceeds, unless Bank agrees
otherwise in writing: (i) that Bank is authorized to file financing statements in the name of
Owner to perfect Bank’s security interest in Collateral and Proceeds; (ii) where applicable,
to insure the tangible moveable Collateral (other than warehouse receipts, bills of sale,
bills of lading and other documents, instruments, and money) with Bank named as a loss payee
as its interest may appear, in form, substance and amounts, under agreements, against risks
and liabilities, and with insurance companies satisfactory to Bank; (iii) where applicable,
to operate the Collateral in accordance with all applicable statutes, rules and regulations
relating to the use and control thereof, and not to use any Collateral for any unlawful
purpose or in any way that would void any insurance required to be carried in connection
therewith; (iv) not to remove the Collateral (other than goods in transit, goods that are
temporarily in the possession of repairmen, product testing services, or potential buyers or
vendors as samples, or goods in storage in the ordinary course of business) from Owner’s
premises, except (A) for deliveries to buyers in the ordinary course of Owner’s business,
and deliveries of damaged, obsolete,

2

 

surplus or worn-out property, and (B) Collateral which consists of mobile goods as
defined in the Oregon Uniform Commercial Code, in which case Owner agrees not to remove or
permit the removal of such Collateral from its state of domicile for a period in excess of
thirty (30) calendar days; (v) to pay when due all license fees, registration fees and
other charges in connection with any Collateral; (vi) not to permit any lien on the
Collateral or Proceeds, including without limitation, liens arising from repairs to or
storage of the Collateral, except in favor of Bank or as set forth in the Credit
Agreement, or Permitted Encumbrances; (vii) not to sell, hypothecate or dispose of, nor
permit the transfer by operation of law of, any of the Collateral or Proceeds or any
interest therein, except sales of inventory to buyers in the ordinary course of Owner’s
business, sales of damaged, obsolete, surplus, or worn-out property, or as otherwise
permitted herein or in the Credit Agreement; (viii) to permit Bank to inspect the
Collateral at any reasonable time; (ix) to keep, in accordance with generally accepted
accounting principles, complete and accurate records regarding all Collateral and
Proceeds, and to permit Bank to inspect the same and make copies thereof at any reasonable
time; (x) if requested by Bank during the continuance of an Event of Default, to receive
and use reasonable diligence to collect Collateral consisting of accounts and other rights
to payment and Proceeds, in trust and as the property of Bank, and to immediately endorse
as appropriate and deliver such Collateral and Proceeds to Bank daily in the exact form in
which they are received together with a collection report in form satisfactory to Bank;
(xi) intentionally deleted; (xii) to give only normal allowances and credits and to advise
Bank thereof immediately in writing if they affect any rights to payment or Proceeds in
any material respect; (xiii) from time to time, when requested by Bank, to prepare and
deliver a schedule of all Collateral and Proceeds subject to this Agreement and during the
continuance of an Event of Default to assign in writing and deliver to Bank all accounts,
contracts, leases and other chattel paper, instruments, documents and other evidences
thereof; (xiv) in the event Bank elects to receive payments of rights to payment or .
Proceeds hereunder during the continuance of an Event of Default, to pay all expenses,
incurred by Bank in connection therewith, including expenses of accounting,
correspondence, collection efforts, reporting to account or contract Owners, filing,
recording, record keeping and expenses incidental thereto; (xv) to provide any service and
do any other acts which may be necessary to maintain, preserve and protect all Collateral
and, as appropriate and applicable, to keep all Collateral in good and saleable condition,
and to deal with the Collateral, all in accordance with the standards and practices
adhered to generally by users and manufacturers of like property, including with respect
to defective and returned products (which may be repaired or disposed of in any lawful
manner); and (xvi) to keep all Collateral and Proceeds free and clear of all defenses,
rights of offset and counterclaims, subject to offsets in the ordinary course of business
for defective inventory.

     (c) Except as specifically set forth in writing by Bank and the effect of leases
and applicable law that convey fixtures or improvements to landlords, Owner shall not sell
or transfer equipment, provided, however, that Owner may sell or transfer damaged,
obsolete, worn-out, and surplus equipment Collateral with an aggregate book value not to
exceed $500,000.00 in each of Owner’s fiscal’years.

	3.	 	Section 7 of the Security Agreement is amended to read as follows in its entirety:
	 
	 	 	POWERS OF BANK. Owner appoints Bank its true attorney in fact to perform any of the
following powers, which are coupled with an interest, are irrevocable until termination of
this Agreement and may be exercised from time to time by Bank’s officers and

3

 

	 	 	employees, or any of them, if Owner is in default (unless otherwise set forth herein): (a)
to perform any obligation of Owner hereunder in Owner’s name or
otherwise; (b) to give
notice to account Owners or others of Bank’s rights in the Collateral and Proceeds, to
enforce or forebear from enforcing the same and make extension and modification agreements
with respect thereto; (c) to release persons liable on Collateral or Proceeds and to give
receipts and acquittances and compromise disputes in connection therewith; (d) to release
or substitute security; (e) to resort to security in any order; (f) to prepare, execute,
file, record or deliver notes, assignments, schedules, designation statements, financing
statements, continuation statements, termination statements, statements of assignment,
applications for registration or like papers to perfect, preserve or release Bank’s
interest in the Collateral and Proceeds; (g) to receive, open and read mail addressed to
Owner, and promptly deliver the originals thereof (or, if the mail consists of
Collateral or Proceeds, copies) to Owner; (h) to take cash, instruments for the payment of
money and other property to which Bank is entitled; (i) at any time whether or not a
default exists, to verify facts concerning the Collateral and Proceeds by inquiry of
obligors thereon, or otherwise, in its own name or a fictitious name; (j) to endorse,
collect, deliver and receive payment under instruments for the payment of money
constituting or relating to Proceeds; (k) to prepare, adjust, execute, deliver and receive
payment under insurance claims, and to collect and receive payment of and endorse any
instrument in payment of loss or returned premiums or any other insurance refund or
return, and to apply such amounts received by Bank, at Bank’s sole option, toward
repayment of the Indebtedness or, where appropriate, replacement of
the Collateral; (l) to
exercise all rights, powers and remedies which Owner would have, but for this Agreement,
with respect to all Collateral and Proceeds subject hereto; (m) at any reasonable time
whether or not a default exists, to enter onto Owner’s premises in inspecting the
Collateral; (n) to make withdrawals from and to close deposit accounts or other accounts
with any financial institution, wherever located, into which Proceeds may have been
deposited, and to apply funds so withdrawn to payment of the Indebtedness; (o) to preserve
or release the interest evidenced by chattel paper to which Bank is entitled hereunder
and to endorse and deliver any evidence of title incidental thereto; and (p) to do all
acts and things and execute all documents in the name of Owner or otherwise, deemed by
Bank as necessary, proper and convenient in connection with, at any time whether or not a
default exists, the preservation of Collateral or perfection of
security interests therein
(as required in the Credit Agreement), or, after default, the enforcement of its rights
hereunder.
	 
	4.	 	Section 10 of the Security Agreement is amended to read as follows in its entirety:

	 	 	PAYMENT OF PREMIUMS, TAXES, CHARGES, LIENS AND ASSESSMENTS. Owner agrees to pay or secure
by bond (or contest in good faith, provided adequate reserves are made therefor and no
enforcement proceedings against any Collateral has been instituted that are not stayed or
dismissed within sixty days thereafter), prior to delinquency, all insurance premiums,
taxes, charges, liens and assessments against the Collateral and Proceeds, and upon the
failure of Owner to do so, Bank at its option may pay any of them and shall be the sole
judge of the legality or validity thereof and the amount necessary to discharge the same.
Any such payments made by Bank shall be obligations of Owner to Bank, due and payable
immediately upon demand, together with interest at a rate at a fluctuating rate per annum
equal to 1.75% above the Daily One Month LIBOR in effect from time to time (“Applicable
Rate”), and shall be secured by the Collateral and Proceeds, subject to all terms and
conditions of this Agreement.

4

 

	5.	 	Section 12 of the Security Agreement is amended to read as follows in its entirety:
	 
	 	 	REMEDIES. Upon the occurrence of any Event of Default, Bank shall have and may exercise
without demand any and all rights, powers, privileges and remedies granted to a secured
party upon default under the Oregon Uniform Commercial Code or otherwise provided by law,
including without limitation, the right (a) to contact all persons obligated to Owner on
any Collateral or Proceeds and to instruct such persons to deliver all Collateral and/or
Proceeds directly to Bank, and (b) to sell, lease, license or otherwise dispose of any or
all Collateral. All rights, powers, privileges and remedies of Bank shall be cumulative.
No delay, failure or discontinuance of Bank in exercising any right, power, privilege or
remedy hereunder shall affect or operate as a waiver of such right, power, privilege or
remedy; nor shall any single or partial exercise of any such right, power, privilege or
remedy preclude, waive or otherwise affect any other or further exercise thereof or the
exercise of any other right, power, privilege or remedy. Any waiver, permit, consent or
approval of any kind by Bank of any default hereunder, or any such waiver of any
provisions or conditions hereof, must be in writing and shall be effective only to the
extent set forth in writing. It is agreed that public or private sales or other
dispositions, for cash or on credit, to a wholesaler or retailer or
investor, or user of property of the types subject to this Agreement, or public auctions,
are all commercially reasonable since differences in the prices generally realized in the
different kinds of dispositions are ordinarily offset by the differences in the costs and
credit risks of such dispositions. While an Event of Default exists: (a) Owner will
deliver to Bank from time to time, as requested by Bank, current lists of all Collateral
and Proceeds; (b) Owner will not dispose of any Collateral or Proceeds except on terms
approved by Bank or that fulfill contracts of sale previously entered into in the ordinary
course of business; (c) at Bank’s request, Owner will assemble and deliver all Collateral
and Proceeds, and books and records pertaining thereto, to Bank at a reasonably convenient
place designated by Bank; and (d) Bank may, without notice to Owner, enter onto Owner’s
premises and take possession of the Collateral. With respect to any sale or other
disposition by Bank of any Collateral subject to this Agreement, Owner hereby expressly
grants to Bank the right to sell such Collateral using any or all of Owner’s trademarks,
trade names, trade name rights and/or proprietary labels or marks. Owner further agrees
that Bank shall have no obligation to process or prepare any Collateral for sale or other
disposition.

	6.	 	Section 15 of the Security Agreement is amended to read as follows in its entirety:
	 
	 	 	COSTS, EXPENSES AND ATTORNEYS’ FEES. The non-prevailing party shall pay to the prevailing
party immediately upon demand the full amount of all payments, advances, charges, costs and
expenses, including reasonable attorneys’ fees (to include outside counsel fees and all
allocated costs of in-house counsel), expended or Incurred by the non-prevailing party in
connection with (a) the enforcement of Bank’s rights and/or the collection of any amounts
which become due to Bank under this Agreement, and (b) the prosecution or defense of any
action in any way related to this Agreement, including without limitation, any action for
declaratory relief, whether incurred at the trial or appellate level, in an arbitration
proceeding or otherwise, and including any of the foregoing incurred in connection with any
bankruptcy proceeding (including without limitation, any adversary proceeding, contested
matter or motion brought by Bank or any other person) relating to Owner or Borrower. All of
the foregoing shall be paid by Owner with interest from the date of demand until paid in
full at a rate per annum equal to two percent (2.00%) above the Applicable Rate.

5

 

	7.	 	The final two paragraphs of the Security Agreement are hereby amended to read as follows in
their entirety:

	 	 	Owner warrants that the address of its chief executive office is 17634 NE Airport Way,
Portland OR 97230, or such other address of which the Owner notifies the Bank from time
to time.

	 	 	Owner warrants that the tangible Collateral (except goods in transit or in possession of
repairmen, product testing facilities, or potential buyers as samples,) is located or
domiciled at the above or at the following additional address: 12722 NE Airport Way,
Portland, OR 97230, and such other addresses of which the Owner notifies the Bank from
time to time. Owner sells inventory in the ordinary course of business to LaCrosse
Denmark, which stores it at Snorresgad 22,2300 Copenhagen, Denmark or at Scan Global
Logistics, True Mollevej 1,8381 Tilst, Denmark, or in transit, and which ships inventory
under customary sale and shipping terms to its customers, and to vendors as samples, and
which disposes of defective or out of date inventory in the ordinary course of business.

	8.	 	The following section is added to the Security Agreement:

	 	 	The word “Indebtedness” is used herein in its most comprehensive sense and includes any
and all advances, debts, obligations and liabilities of Borrower and Owner,; or either of
them, heretofore, now or hereafter made, incurred or created, whether voluntary or
involuntary and however arising, whether due or not due, absolute or contingent,
liquidated or unliquidated, determined or undetermined, and whether Borrower or Owner may
be liable
individually or jointly with others, or whether recovery upon such Indebtedness may be or
hereafter becomes unenforceable.

[Space intentionally left blank]

6

 

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

	 	 	 	 	 
	 	DANNER, INC.

 	 
	 	By:  	/s/ Joseph P. Schneider
 	 
	 	 	Joseph P. Schneider 	 
	 	 	President/Chief Executive
Officer
 Executed March 9, 2009 	 
	 
	 	 	 
	 	By:  	/s/ David P. Carlson
 	 
	 	 	David P. Carlson  	 
	 	 	Executive Vice
President/Chief Financial Officer

Executed March 9, 2009 	 
	 
	 	WELLS FARGO BANK,

NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ James R. Bednark
 	 
	 	 	James R. Bednark 	 
	 	 	Senior Vice President

Executed March 9,  2009 	 
	 

7exv10w1

Exhibit 10.1

FIRST AMENDMENT

TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated
as of July 20, 2010 (but effective as of July 1, 2010) is among SESI, L.L.C., as Borrower, SUPERIOR
ENERGY SERVICES, INC., as Parent, JPMORGAN CHASE BANK, N.A., as Agent (the “Agent”), and the
Lenders party hereto, who agree as follows:

RECITALS

     A. The Borrower, Parent, Agent and certain of the Lenders have heretofore executed a Second
Amended and Restated Credit Agreement dated as of May 29, 2009 (the “Credit Agreement”).

     B. The Borrower has requested modifications of the Credit Agreement in the following respects:
(i) increase of the Revolving Loan Commitments from $325,000,000 to $400,000,000 with the option to
increase further to $550,000,000; (ii) reduce the Applicable Margins for the Eurodollar Rate and
Floating Rate; (iii) extend the Revolving Loan Termination Date from June 14, 2011 to July 20,
2014; (iv) increase the basket of permitted unsecured Funded Indebtedness from $50,000,000 to
$75,000,000; (v) delete the Fixed Charge Coverage Ratio and substitute an EBITDA to Interest
Expense Ratio; (vi) substitute Wells Fargo Bank, N.A. for JPMorgan Chase Bank, N.A. as the Swing
Line Lender; (vii) modify the Adjusted Leverage Ratio; and (viii) refresh the basket for permitted
Investments as of the date of this Agreement. The Agent and Lenders are willing to accept the
Borrower’s request on the terms and conditions set forth below.

     C. Capitalized terms used herein, and not otherwise defined herein, shall have the meanings
defined in the Credit Agreement.

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

ARTICLE 1

AMENDMENTS TO THE CREDIT AGREEMENT

     1.1 Section 1.1 (Definition of Certain Terms Used Herein) of the Credit Agreement is
hereby amended but only as to the following definitions added, amended or deleted:

     “AutoBorrow Agreement” means any agreement providing for automatic borrowing services
between the Borrower and a Swing Line Lender.

     “EBITDA to Interest Expense Ratio” is defined in Section 6.18.3.

     “Fixed Charge Coverage Ratio” is hereby deleted.

 

 

     “Revolving Loan Termination Date” means July 20, 2014 or any earlier date upon which
the Aggregate Revolving Loan Commitment is reduced to zero or otherwise terminated pursuant
to the terms of Section 2.4; provided, however, if by April 30, 2014, the 67/8%
Senior Notes have not been either paid in full and terminated or refinanced with maturity
dates after July 20, 2014, then the Revolving Loan Termination Date shall be April 30, 2014.

     “Swing Line Lender” means Wells Fargo Bank, N.A., in its capacity as the lender of
Swing Line Loans.

     1.2 Section 2.1.1(a) (Making the Revolving Loans) of the Credit Agreement is hereby
amended to substitute “$400,000,000” for “$325,000,000.”

     1.3 A new Section 2.1.1(c) is hereby added to the Credit Agreement as follows:

     (c) The Borrower and the Agent, without the consent of any other Lenders, may increase
the aggregate of the Revolving Loan Commitments up to the aggregate amount of $150,000,000
(to a total of $550,000,000), by either or both of the following methods: (i) one or more
existing Lenders increases its Revolving Loan Commitment and/or (ii) one or more additional
banks or other entities issue Revolving Loan Commitments and become parties to and Lenders
under this Agreement; provided, that each of the Lenders shall have the first right
to increase its Revolving Loan Commitment in an amount equal to its Pro Rata Share of the
total increase in the Revolving Loan Commitments; and provided further that any new Lender
shall be a state or national commercial bank located in the United States or a bank
organized under a jurisdiction other than the United States but having a branch or agency
within the United States and not an Affiliate of Parent, Borrower or any Subsidiary. No
Lender shall be required to increase its Revolving Loan Commitment. In the event of either
or both of (i) and (ii) above, the Agent shall amend and restate Schedule 1 hereto
to reflect the revised Revolving Loan Commitments of all Lenders and their adjusted Pro Rata
Shares; the Agent shall promptly distribute the revised Schedule 1 to the Borrower
and to all Lenders. Any additional Lenders shall become a party to this Agreement by
delivering to the Agent an executed signature page of this Agreement. The Borrower shall
execute and deliver new Revolving Loan Notes to existing Lenders for the increased amount of
their Revolving Loan Commitments and shall deliver new Revolving Loan Notes to new Lenders
for the amount of their Revolving Loan Commitments.

     1.4 Sections 2.1.4 (Making the Swing Line Loans) and 2.1.5 (Procedure for Swing
Line Borrowing; Refunding of Swing Line Loans) are hereby amended in their entirety to read as
follows:

     2.1.4 Making the Swing Line Loan. (a) Subject to the terms and conditions
hereof (and if an AutoBorrow Agreement is in effect, subject to the terms and conditions of
said AutoBorrow Agreement), the Swing Line Lender agrees to make a portion of the credit
otherwise available to the Borrower under the Revolving Loan Commitments prior to the
Revolving Loan Termination Date by making swing line loans (“Swing Line

2

 

Loans”) to the Borrower; provided that (i) the aggregate principal amount of Swing Line
Loans outstanding at any time shall not exceed $25,000,000 (notwithstanding that the Swing
Line Loans outstanding at any time, when aggregated with the Swingline Lender’s other
outstanding Revolving Loans, may exceed such amount), (ii) the Borrower shall not request,
and the Swing Line Lender shall not make, any Swing Line Loan if, after giving effect to the
making of such Swing Line Loan, the aggregate amount of the Available Revolving Commitments
would be less than zero, and (iii) the Swing Line Lender confirms with the Agent that all of
the conditions to funding in Section 4.2 are then satisfied. During the Revolving
Commitment Period, the Borrower may use the Swing Line Loan by borrowing, repaying and
reborrowing, all in accordance with the terms and conditions hereof. No Lender shall have
any rights or obligations under the AutoBorrow Agreement, but each Lender shall have the
obligation to purchase and fund risk participations in the Swing Line Loans and to refinance
Swing Line Loans as provided below. Swing Line Loans shall bear interest at the Floating
Rate only

     (c) The Borrower shall repay to the Swing Line Lender the then unpaid principal amount
of each Swing Line Loan on the earlier of the Revolving Loan Termination Date and the first
date after such Swing Line Loan is made that is the 15th or last day of a calendar month and
is at least two Business Days after such Swing Line Loan is made; provided that on each date
that a Revolving Loan is borrowed, the Borrower shall repay all Swing Line Loans then
outstanding. The Borrower irrevocably authorizes the Swing Line Lender to charge the
Borrower’s accounts with the Swing Line Lender (up to the amount available in each such
account) in order to immediately pay the amount of such Borrowing to the extent amounts
received from the Borrower are not sufficient to repay in full such Borrowing.

     (d) Each Swing Line Loan shall bear interest on the outstanding principal amount
thereof, for each day from and including the day such Swing Line Loan is made, but excluding
the date it is paid, at a rate per annum equal to the Floating Rate for such day.

     2.1.5 Procedure for Swing Line Borrowing; Refunding of Swing Line Loans.

     (a) If the Borrower has entered into an AutoBorrow Agreement with the Swing Line Lender
and such agreement is in effect, each Swing Line Borrowing and each prepayment thereof shall
be made as provided in such AutoBorrow Agreement. In all other cases, the provisions of
Clauses (b) and (c) below shall apply.

     (b) Whenever the Borrower desires that the Swing Line Lender make Swing Line Loans it
shall give the Agent and the Swing Line Lender irrevocable notice in the manner set forth in
Section 2.13 (which notice must be received by the Agent and the Swing Line Lender not later
than 2:00 P.M., New York City time, on the proposed Borrowing Date), specifying (i) the
amount to be borrowed and (ii) the requested Borrowing Date (which shall be a Business Day
prior to the Revolving Loan Termination Date). Promptly after receipt said notice by the
Swing Line Lender, the Swing Line Lender will confirm with the Agent (by telephone or in
writing) that the Agent has also received said notice, and if

3

 

not, the Swing Line Lender will provide said notice to the Agent. Unless the Swing Line
Lender has received notice (by telephone or in writing) from the Agent prior to 3:00 P.M. on
the date of the proposed Swing Line Loan directing the Swing Line Lender not to make the
Swing Line Loan because the Swing Line Loan would exceed the limitations set forth in
Section 2.1.4(a) hereof or because all of the conditions to funding in Section 4.2 are not
then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender
will, not later than 3:00 P.M. on the proposed Borrowing Date make the Swing Line Loan
available to the Borrower by depositing such proceeds in the account of the Borrower with
the Swing Line Lender on such Borrowing Date in immediately available funds. Each borrowing
under the Swing Line Commitment shall be in an amount equal to $500,000 or a whole multiple
of $100,000 in excess thereof.

     (c) The Swing Line Lender, at any time and from time to time in its sole and absolute
discretion may, on behalf of the Borrower (which hereby irrevocably directs the Swing Line
Lender to act on its behalf), on one Business Day’s notice given by the Swing Line Lender to
the Agent no later than 12:00 Noon, New York City time, request each Lender to make, and
each Lender hereby agrees to make, a Revolving Loan, in an amount equal to such Lender’s Pro
Rata Share of the aggregate amount of the Swing Line Loans (the “Refunded Swing Line Loans”)
outstanding on the date of such notice, to repay the Swing Line Lender. Each Lender shall
make the amount of such Revolving Loan available to the Agent at the Funding Office in
immediately available funds, not later than 10:00 A.M., New York City time, one Business Day
after the date of such notice. The proceeds of such Revolving Loans shall be immediately
made available by the Agent to the Swing Line Lender for application by the Swing Line
Lender to the repayment of the Refunded Swing Line Loans. The Borrower irrevocably
authorizes the Agent to charge the Borrower’s accounts with the Agent in order to
immediately pay the amount of such Refunded Swing Line Loans to the extent amounts received
from the Lenders are not sufficient to repay in full such Refunded Swing Line Loans.

     (d) If prior to the time a Revolving Loan would have otherwise been made pursuant to
Section 2.1.5(b), one of the events described in Section 7.6 or 7.7 shall have occurred and
be continuing with respect to the Borrower or if for any other reason, as determined by the
Swing Line Lender in its sole discretion, Revolving Loans may not be made as contemplated by
Section 2.1.5(b), each Lender shall, on the date such Revolving Loan was to have been made
pursuant to the notice referred to in Section 2.1.5(b), purchase for cash an undivided
participating interest in the then outstanding Swing Line Loans by paying to the Agent an
amount (the “Swing Line Participation Amount”) equal to (i) such Lender’s Pro Rata Share
times (ii) the sum of the aggregate principal amount of Swing Line Loans then outstanding
that were to have been repaid with such Revolving Loans. The Participation Amounts shall
immediately be made available by the Agent to the Swing Line Lender for application by the
Swing Line Lender to the repayment of the Refunded Swing Line Loans.

     (e) Whenever, at any time after the Swing Line Lender has received from any Lender such
Lender’s Swing Line Participation Amount, the Swing Line Lender receives any payment on
account of the Swing Line Loans, the Swing Line Lender will distribute

4

 

to the Agent for payment to each Lender, each Lender’s Swing Line Participation Amount
(appropriately adjusted, in the case of interest payments, to reflect the period of time
during which such Lender’s participating interest was outstanding and funded and, in the
case of principal and interest payments, to reflect such Lender’s pro rata portion of such
payment if such payment is not sufficient to pay the principal of and interest on all Swing
Line Loans then due); provided, however, that in the event that such payment received by the
Swing Line Lender is required to be returned, such Lender will return to the Agent for
payment to the Swing Line Lender any portion thereof previously distributed to it by the
Agent on behalf of the Swing Line Lender.

     (f) Each Lender’s obligation to make the Loans referred to in Section 2.1.5(b) and to
purchase participating interests pursuant to Section 2.1.5(c) shall be absolute and
unconditional and shall not be affected by any circumstance, including (i) any setoff,
counterclaim, recoupment, defense or other right that such Lender or the Borrower may have
against the Swing Line Lender, the Borrower or any other Person for any reason whatsoever,
(ii) the occurrence or continuance of a Default or an Event of Default or the failure to
satisfy any of the other conditions specified in Section 4, (iii) any adverse change in the
condition (financial or otherwise) of the Borrower, (iv) any breach of this Agreement or any
other Loan Document by the Borrower, any other Loan Party or any other Lender or (v) any
other circumstance, happening or event whatsoever, whether or not similar to any of the
foregoing.

     1.5 Section 6.11 (Funded Indebtedness; Rate Management Obligations) of the Credit
Agreement is hereby amended as to Clause (a)(viii) only, as follows:

	 	(viii)	 	Other unsecured Funded Indebtedness not exceeding $75,000,000 in the aggregate
principal amount outstanding at any time.

     1.6 Section 6.18.2 (Maximum Adjusted Leverage Ratio) of the Credit Agreement is hereby
amended in its entirety to read as follows:

     6.18.2 Maximum Adjusted Leverage Ratio. The Parent will not permit the ratio
(the “Adjusted Leverage Ratio”), determined on a Pro Forma Basis, of (i) Funded
Indebtedness, plus Additional Contingent Consideration, plus the present value of all
obligations for platform decommissioning, wellbore plug and abandonment, and pipeline
decommissioning, in each case as reflected on the Borrower’s financial statements in
accordance with GAAP as of the end of each fiscal quarter (the determination date), less
performance bond amounts and escrow account amounts securing decommissioning obligations as
of the determination date, to (ii) EBITDA for the four fiscal quarters ending with such
determination date, to be greater than 3.65 to 1.00.

     1.7 Section 6.18.3 (Minimum Fixed Charge Coverage Ratio) of the Credit Agreement is
hereby deleted in its entirety and replaced with a new Section 6.18.3 (Minimum EBITDA to
Interest Expense Ratio), as follows:

5

 

     6.18.3 Minimum EBITDA to Interest Expense Ratio. The Parent will not permit
the ratio, determined on a Pro Forma Basis (the “EBITDA to Interest Expense Ratio”), of (i)
EBITDA for the four fiscal quarters ending with each fiscal quarter (the determination date)
to (ii) Interest Expense actually paid in cash during the four fiscal quarters ending with
such determination date, to be less than 3.00 to 1.00.

Notwithstanding the foregoing provisions of Subsections 6.18.1, 6.18.2 and 6.18.3, for each
of the first three fiscal quarters of the fiscal year ending December 31, 2010, EBITDA and
Interest Expense shall be calculated on the basis of EBITDA for the fiscal year to date
annualized.

Furthermore, all accounting determinations for purposes of calculating or determining the
financial covenants set forth in this Section 6.18 (Financial Covenants) shall be
made in accordance with GAAP applied on a basis consistent in all material respects with
that used in preparing the audited financial statements of the Parent for the fiscal year
ended December 31, 2009 (the “2009 Financials”). If after December 31, 2009, GAAP shall
change from the basis used in preparing the 2009 Financials, the Compliance Certificate
shall set forth the adjustments to the Parent’s financial statements necessary to
demonstrate compliance with the covenants contained herein based on GAAP used for the 2009
Financials.

     1.8 The limitations on new Investments set forth in Section 6.19 (Investments) shall
apply only to investments occurring after the date of this Amendment.

     1.9 Schedule 1 (Commitment Amounts of the Lenders) to the Credit Agreement is hereby deleted
in its entirety and replaced with Schedule 1 attached hereto. To the extent that a
Lender’s Pro Rata Share as shown on Schedule 1 attached hereto is different from such
Lender’s Pro Rata Share under the Credit Agreement as originally executed, such Lender hereby
assigns or accepts the interests of other Lenders’ Pro Rata Shares in order to reflect such
difference; said assignment(s) shall be without any representation or warranty by the assignor(s)
and without recourse to the assignor(s). The parties hereto acknowledge that Bank of Scotland is
no longer a party to the Credit Agreement, effective on the date of this Amendment.

     1.10 Schedule 2 (Pricing Schedule) to the Credit Agreement is hereby deleted in its entirety
and replaced with Schedule 2 attached hereto.

     1.11 Schedule 1 to Exhibit A (Compliance Certificate) is hereby deleted in its entirety and
replaced with Schedule 1 to Exhibit A attached hereto.

     1.11 Except as specifically amended hereby, all of the remaining terms and conditions of the
Credit Agreement remain in full force and effect.

6

 

ARTICLE 2

CONDITIONS PRECEDENT

     2.1 This First Amendment shall be effective upon the Agent’s receipt of the following, in form
and substance satisfactory to the Agent:

     (i) First Amendment. This Agreement, executed and delivered by the Agent, the Parent,
the Borrower and the Lenders.

     (ii) Notes. Replacement Revolving Loan Notes executed by the Borrower evidencing
their respective Revolving Loan Commitments.

     (iii) Collateral Documents. Acknowledgments or amendments of all of the existing
Collateral Documents reflecting the execution and delivery of this Amendment.

     (iv) Legal Opinion. Legal opinion of Jones, Walker, Waechter, Poitevent, Carrere &
Denegre L.L.P., Louisiana counsel to the Parent, Borrower and its Subsidiaries, in the form and
substance satisfactory to the Agent. Such legal opinion shall cover such other matters incident to
the transactions contemplated by this Agreement as the Agent may reasonably require.

     (v) Entity Documents. Copies of the certificate of incorporation and bylaws and
articles of organization (or certificate of formation) and operating agreement (or limited
liability company agreement) of any Domestic Subsidiaries created after the date of the Credit
Agreement, and copies of any amendments to certificates of incorporation, bylaws, articles of
organization (or certificates of formation) or operating agreements executed since the date of the
Credit Agreement, each certified by the Secretary or Assistant Secretary of said Domestic
Subsidiary.

     (vi) Closing Certificates. Closing certificates by the Secretary or Assistant
Secretary of the Parent, Borrower and the authorized person for each Subsidiary, of its Board of
Directors’ resolutions or consent of members or partners, and of resolutions or actions of any
other body authorizing the execution of the Amendment, including an incumbency certificate,
executed by the Secretary or Assistant Secretary of the Borrower, which shall identify by name and
title of the Authorized Officers and any other officers of the Borrower authorized to sign the
Amendment, upon which certificate the Agent and the Lenders shall be entitled to rely until
informed of any change in writing by the Borrower.

     (vii) Other Documents. Such other documents as any Lender or its counsel may have
reasonably requested.

     (viii) Fees. Payment of certain amendment fees and structuring fees as set forth in
separate agreements with the Borrower.

     (ix) No Default. Absence of any Default or Event of Default under the Credit
Agreement.

7

 

     (x) No Material Change. Absence of any Material Adverse Effect relating to the
Parent, Borrower and Borrower’s Subsidiaries occurring since March 31, 2010.

ARTICLE 3

MISCELLANEOUS

     3.1 The Parent and Borrower reaffirm to the Agent and Lenders that the representations and
warranties contained in Article V of the Credit Agreement were true and correct when made, and are
repeated at and as of the date hereof and are true and correct in all material respects at and as
of the date hereof, except as such representations and warranties relate to matters that are
permitted by the Credit Agreement to be true only as of the Closing Date.

     3.2 This Amendment is a contract, and the replacement Notes will be contracts, made under and
shall be construed in accordance with and governed by the laws of the United States of America and
the State of Louisiana.

     3.3 This Amendment constitutes a Loan Document (as that term is defined in the Credit
Agreement).

     3.4 This Amendment does not, and the replacement Notes will not, constitute a novation of the
Credit Agreement or the Obligations represented by the Credit Agreement, the Notes and the
Collateral Documents.

     3.5 This Amendment may be executed in any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one in the same instrument.

8

 

     IN WITNESS WHEREOF, the Borrower, the Agent and the Lenders have executed this Amendment as of
the date first above written.

	 	 	 	 	 	 	 	 	 

	BORROWER:	 	SESI, L.L.C.
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Superior Energy Services, Inc.
	 	 	 	 	Member Manager
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Robert S. Taylor
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Robert S. Taylor
	 

	 	 	 	 	 	Title:
	 	Chief Financial Officer
	 
	 	 	 	 	 	 	 	 
	PARENT:	 	SUPERIOR ENERGY SERVICES, INC.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor
	 	 	 	 	 
	 	 	 	 	Name:	 	Robert S. Taylor
	 	 	 	 	Title:	 	Chief Financial Officer

9

 

	 	 	 	 	 	 	 	 	 

	AGENT, CO-LEAD 

ARRANGER AND LENDER:	 	JPMORGAN CHASE BANK, N.A.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Donna J. Richardson
	 	 	 	 	 
	 	 	 	 	Name:	 	Donna J. Richardson
	 	 	 	 	Title:	 	Vice President

10

 

	 	 	 	 	 	 	 	 	 

	CO-LEAD ARRANGER AND LENDER:	 	WELLS FARGO BANK, N.A.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

11

 

	 	 	 	 	 	 	 	 	 

	CO-DOCUMENTATION AGENT 

AND LENDER:	 	WHITNEY NATIONAL BANK
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

12

 

	 	 	 	 	 	 	 	 	 

	CO-DOCUMENTATION AGENT 

AND LENDER:	 	PNC BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

13

 

	 	 	 	 	 	 	 	 	 

	CO-DOCUMENTATION AGENT 

AND LENDER:	 	COMERICA BANK, NA
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

14

 

	 	 	 	 	 	 	 	 	 

	CO-DOCUMENTATION AGENT 

AND LENDER:	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

15

 

	 	 	 	 	 	 	 	 	 

	CO-DOCUMENTATION AGENT 

AND LENDER:	 	BNP PARIBAS
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

16

 

	 	 	 	 	 	 	 	 	 

	LENDER:	 	NATIXIS
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

17

 

	 	 	 	 	 	 	 	 	 

	LENDER:	 	CAPITAL ONE, NATIONAL

ASSOCIATION
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

18

 

	 	 	 	 	 	 	 	 	 

	LENDER:	 	HSBC BANK USA, N.A.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

19

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