Document:

CREDIT AGREEMENT 

        THIS
AGREEMENT is entered into as of April 15, 2004, 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 up to and
          including June 30, 2007, not to exceed at any time the aggregate principal
          amount of Thirty Million Dollars ($30,000,000.00) (“Line of
          Credit”), the proceeds of which shall be used to finance the working
          capital requirements of Borrower and Danner, Inc., a Wisconsin corporation
          (“Subsidiary”). Borrower’s obligation to repay advances
          under the Line of Credit shall be evidenced by a promissory note dated as of
          April 2, 2004 in the form attached hereto as Exhibit A (“Line of Credit
          Note”), all terms of which are incorporated herein by this reference. 

         (b)       
          Limitation on Borrowings. Outstanding liabilities, contingent or
          liquidated, under the Line of Credit, to a maximum of the principal amount set
          forth above, shall not at any time exceed the Borrowing Base. The term
          “Borrowing Base” is defined as the sum of (1) the Applicable
          Percentage of Borrower’s and Subsidiary’s eligible accounts
          receivable, plus (2) 50% of the Value of Borrower’s and Subsidiary’s
          eligible inventory, with “Value” defined as cost to Borrower or
          Subsidiary calculated on a FIFO basis in accordance with generally accepted
          accounting principles in the United States, consistently applied
          (“GAAP”), less the Inventory Reserve. The term
          “Applicable Percentage” means (i) 80% when the aggregate of all
          returns, rebates, discounts, credits and allowances for the immediately
          preceding three (3) months divided by Borrower’s and Subsidiary’s
          gross sales for said period (the “Dilution Ratio”) is less than
          5%, (ii) 75% when the Dilution Ratio is greater than 5% and less than 10%, and
          (iii) such other percentage as Bank considers appropriate, in its commercially
          reasonable discretion, when the Dilution Ratio is 10% or greater. As used
          herein, “eligible inventory” means raw material and finished
          goods owned by Borrower or Subsidiary: 

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         (y)       
          in which Bank has a first priority perfected security interest (subject only to
          Permitted Encumbrances) and located in the United States in premises owned or
          leased by Borrower or Subsidiary or in warehouses, provided, that, in the case
          of leased premises and warehouses, Bank has received a duly executed
          lessor’s or warehouseman’s agreement in form and content acceptable to
          Bank, or 

         (z)       
          in transit to the United States, provided however, that (A) Bank has possession
          of the documents of title to such in-transit inventory, or there is a duly filed
          UCC-1 financing statement of record with respect to the Borrower or Subsidiary
          covering the documents of title to such in-transit inventory; (B) the Value of
          otherwise eligible in-transit inventory included in the Borrowing Base shall not
          exceed 10% of the Value of all eligible inventory, and (C) the maximum
          outstanding principal amount of liabilities, contingent or liquidated,
          outstanding against such in-transit inventory included in the Borrowing Base
          shall not exceed the lesser of (i) 50% of the Value thereof, or (ii) the amount
          of cargo insurance thereon net of deductibles. 

In no event shall eligible inventory
include work-in-process, packaging, supplies, sales aids, display items, accessories,
intercompany inventory or inventory which is damaged or unsaleable or in the possession of
processors. The term “Inventory Reserve” means the Value of otherwise
eligible inventory of types or styles (except inventory of a type or style that Borrower
or Subsidiary has first offered for sale during the period between the beginning of its
four full fiscal quarters preceding the date the determination is made, and the date the
determination is made) to the extent that the sales thereof exceed the Borrower’s or
Subsidiary’s sales of inventory of the relevant type or style during its preceding
four full fiscal quarters. All of the foregoing shall be determined by Bank upon receipt
and review of all collateral reports required hereunder and such other documents and
collateral information as Bank may from time to time require. If there at any time exists
any matters, events, conditions or contingencies (other than dilution) which Bank
reasonably believes may adversely affect payment of any portion of Borrower’s or
Subsidiary’s accounts, Bank, in its commercially reasonable discretion, may reduce
the foregoing advance rate against eligible accounts receivable to a percentage
appropriate to reflect such additional matters and/or establish additional reserves
against Borrower’s or Subsidiary’s eligible accounts receivable. 

        As
used herein, “eligible accounts receivable” shall consist solely of trade
accounts created in the ordinary course of Borrower’s or Subsidiary’s business,
upon which Borrower’s or Subsidiary’s right to receive payment is absolute and
not contingent upon the fulfillment of any condition whatsoever, and in which Bank has a
perfected security interest of first priority, and shall not include: 

		    (i)                             any
“dated account” which is more than 30 days past due, with                “dated
account” defined as an account whose payment terms are                from and
including 61 days to and including 150 days;  

		    (ii)                             any
“non-dated account” which is more than sixty (60) days past due,
               with “non-dated account” defined as an account whose
payment                terms are less than 61 days;  

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		    (iii)                             that
portion of any account for which there exists any right of setoff, defense
               or discount (except regular discounts allowed in the ordinary course of
business                to promote prompt payment) or for which any defense or
counterclaim has been                asserted;  

		    (iv)                             any
account which represents an obligation of any state or municipal government
               or of the United States government or any political subdivision thereof
(except                accounts which represent obligations of the United States
government and for                which the assignment provisions of 31 USC §3727,
41 USC §15, or the                Federal Assignment of Claims Act, as amended or
recodified from time to time,                have been complied with to Bank’s
satisfaction, or which are funded                directly into a lockbox controlled by
Bank);  

		    (v)                             any
account which represents an obligation of an account debtor located in a
               foreign country for which credit insurance has been issued by a carrier
               reasonably satisfactory to Bank, naming Bank and Borrower as loss payees
as                their interests may appear, provided that any such foreign accounts
which are                not ineligible hereunder and which are otherwise eligible shall
only be eligible                to the extent of such insurance;  

		    (vi)                             any
account which arises from the sale or lease to or performance of services
               for, or represents an obligation of, an employee, affiliate (defined any
entity                owned or controlled by the same persons or entities that own or
control                Borrower), partner, member, parent (defined as an entity that
controls Borrower)                or subsidiary (defined as an entity controlled by
Borrower) of Borrower;  

		    (vii)                             that
portion of any account which represents interim or progress billings or
               retention rights on the part of the account debtor;  

		    (viii)                             any
account which represents an obligation of any account debtor when twenty
               percent (20%) or more of Borrower’s accounts from such account debtor
are                not eligible pursuant to (i) or (ii) above;  

		    (ix)                             that
portion of any account from an account debtor which represents the amount
               by which Borrower’s total accounts from said account debtor exceeds
               twenty-five percent (25%) of Borrower’s total accounts;  

		    (x)                             any
account deemed ineligible by Bank when Bank, in its commercially reasonable
               discretion, deems the creditworthiness or financial condition of the
account                debtor, or the industry in which the account debtor is engaged, to
be                unsatisfactory.  

-3- 

    (c)        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), subject to the Borrowing Base
limitation. 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 Prime Rate-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
Prime Rate-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.  

         (d)       
          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 maximum principal amount
          available thereunder, as set forth above, subject to the Borrowing Base
          limitations. The provisions of the Line of Credit Note (as modified, replaced,
          renewed, or restated from time to time) are incorporated by this reference
          herein. 

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        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 Prime Rate-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)       
          Commitment Fee. Borrower shall pay to Bank a non-refundable commitment
          fee for the Line of Credit equal to One Hundred Seventy-five Thousand Dollars
          ($175,000.00), which fee shall be due and payable in full on the date this
          Agreement is executed by Borrower. 

         (d)       
          Annual Fee. Borrower shall pay to Bank a non-refundable annual fee for
          the Line of Credit equal to Twenty Thousand Dollars ($20,000.00), which fee
          shall be due and payable in full on each anniversary of the date this Agreement
          was executed by Borrower until 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. 

        SECTION
1.3.    COLLATERAL. 

        As
security for all indebtedness of Borrower to Bank subject hereto, Borrower shall grant,
and shall cause Subsidiary 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”). 

-5- 

        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 and costs of appraisals, audits and title insurance,
including the pre-loan feasibility audit, the initial collateral audit and annual
collateral audits. 

        Unless
an Event of Default exists, Borrower and Subsidiary shall not be obligated to perfect the
Bank’s security interest under the 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
          Subsidiary thereunder exceeds $100,000.00, Borrower or 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 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 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 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 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
1.4.    TERMS 

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

As used herein, “GAAP”
means generally accepted accounting principles in effect in the Unites States,
consistently applied. 

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. 

-6- 

        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 $500,000.00,
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, 2003, 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.
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. Borrower has no knowledge of any pending assessments or
adjustments of its income tax payable with respect to any year. 

        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. 

-7- 

        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. 

        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, any purchase money obligation 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 $500,000.00 or greater, 

        SECTION
2.12.    SUBSIDIARY. Subsidiary is the only entity in existence as of the date hereof in
which Borrower owns all or a majority or a controlling share of the equity interests. 

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ARTICLE III 
CONDITIONS 

        SECTION
3.1.    CONDITIONS OF INITIAL 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)	          Line
of Credit Note. 

	 	         (ii) 	Corporate
Resolution: Borrowing.

	 	(iii)	          Resolution
from Subsidiary. 

	 	(iv)	          Certificates
of Incumbency. 

	 	(v)	         Continuing
Security Agreement. 

	 	(vi)	        Third
Party Security Agreement. 

	 	(vii)	          Agreement
and Acknowledgment of Security Interest (5). 

	 	(viii)	          UCC-1
Financing Statement. 

    (c)        Financial
Condition. 

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

	 	(ii) 	Bank
shall have received Borrower’s unqualified audited financial statement
               for the fiscal year ending December 31, 2003, prepared by a certified
public                accountant acceptable to Bank, reflecting a minimum net profit for
such fiscal                year of $2,000,000.00. 

         (d)       
          Insurance. Borrower shall have delivered to Bank evidence of insurance
          coverage on all Borrower’s and Subsidiary’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 Subsidiary’s
          insurance coverage is satisfactory to Bank. 

-9- 

        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 Subsidiary 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 Subsidiary. 

        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; 

-10- 

         (c)       
          not later than 20 days after and as of the end of each fiscal month, a borrowing
          base certificate, an inventory collateral report, an aged listing of accounts
          receivable and accounts payable, and a reconciliation of accounts, and
          immediately upon each request from Bank, a list of the names and addresses of
          all Borrower’s and Subsidiary’s account debtors; 

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

         (e)       
          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; 

         (f)       
          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 Subsidiary’s
business; and comply with the provisions of all documents pursuant to which Borrower is
organized and/or which govern Borrower’s and Subsidiary’s continued existence
and with the requirements of all laws, rules, regulations and orders of any governmental
authority applicable to Borrower, Subsidiary and/or their business. 

        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 Subsidiary,
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 Subsidiary 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 Subsidiary 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
Subsidiary’s business 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. 

-11- 

        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 Subsidiary may in good faith contest or as to which a bona fide
dispute may arise, and (b) for which Borrower or Subsidiary has made provision, to
Bank’s reasonable satisfaction, 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 Subsidiary with a claim(s) in excess of an aggregate of
$500,000.00. 

        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 not less than $23,000,000.00 determined as of the end of each
          fiscal quarter, 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 1.25 to 1.0
          determined as of the end of each first fiscal quarter, 1.50 to 1.0 determined as
          of the end of each second fiscal quarter, 1.75 to 1.0 determined as of the end
          of each third fiscal quarter and 1.50 to 1.0 determined as of the end of each
          fiscal year, 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. 

        SECTION
4.10.    NOTICE TO BANK. Promptly (but in no event more than five (5) days after 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 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 $500,000.00 or more. 

-12- 

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 Subsidiary 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. Declare or 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 excess of an aggregate of Six Hundred Thousand
Dollars ($600,000.00) 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 $3,500,000.00. 

        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 Subsidiary 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 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 (x) in the ordinary course of its business, (y) the sale of
the real property described in Schedule 5.5 and the buildings, fixtures and improvements
thereon, and all or substantially all raw materials, work in progress, packaging,
supplies, sales-aids, display items, accessories, other inventory, equipment, and fixed
assets at such location (provided that the net proceeds thereof are applied to reduce the
outstanding principal balance of the Line of Credit) or (z) as permitted in the Security
Agreements executed by Borrower and Subsidiary. “Permitted Transactions”
means (i) mergers with other entities whose businesses are substantially similar to that
of Borrower’s or Subsidiary’s so long as Borrower or Subsidiary is the surviving
entity, (ii) the acquisition by Borrower or Subsidiary of all or substantially all of the
assets of other entities or divisions thereof, (iii) the acquisition by Borrower or
Subsidiary of not less than 50.1% of the outstanding ownership interests in other
entities, and, with respect to all of the foregoing, the aggregate consideration paid or
payable (in whatever form, including, cash notes, stock in Borrower or Subsidiary or other
property) by Borrower and Subsidiary in any fiscal year does not exceed $5,000,000.00. At
the time of the sales described in Section 5.5(a)(y) above Bank shall release in fact and
of record all of its security in the assets being sold. 

-13- 

        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 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 any of the foregoing existing as of, and disclosed to Bank prior
to, the date hereof, and additional loans or advances to employees or officers of Borrower
or Subsidiary, or to Subsidiary in the ordinary course of business in amounts not to
exceed an aggregate of $500,000.00 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. In the event that as a result of a Permitted Transaction Borrower
or Subsidiary acquire or form a new subsidiary, such subsidiary shall be deemed to be
included in the definition of Subsidiary as used in this Agreement, provided, however,
that the assets of such new subsidiary shall not be included in the Borrowing Base unless
and until (a) such assets are otherwise eligible as determined in accordance of the terms
of the Borrowing Base, (b) Bank has performed a collateral audit, at Borrower’s
expense, in form and content acceptable to Bank, and (c) Bank is granted a first priority
perfected security interest in such assets pursuant to a Third Party Security Agreement
substantially similar to that executed by Subsidiary. 

        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 Subsidiary 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. 

-14- 

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, 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, 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, the amount thereof exceeds $500,000.00, 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, Subsidiary or any Third Party
          Obligor; or the recording of any abstract of judgment against Borrower,
          Subsidiary or any Third Party Obligor in any county in which Borrower,
          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, Subsidiary or any Third
          Party Obligor; or the entry of a judgment against Borrower, Subsidiary or any
          Third Party Obligor; and with respect to each of the foregoing, the uninsured
          amount in dispute exceeds $500,000.00 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. 

-15- 

         (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, Subsidiary or any Third Party
          Obligor (and the same is not dismissed within 60 days after its commencement, or
          Borrower, 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, Subsidiary or any Third Party Obligor shall
          be adjudicated a bankrupt, or an order for relief shall be entered against
          Borrower, 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 good
          faith 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 20 days. 

         (h)       
          The dissolution or liquidation of any of Borrower, 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, 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) 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. 

-16- 

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.                          
18550 N.E. Riverside Parkway
                         
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 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 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 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 Subsidiary. 

-17- 

        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. 

        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. 

-18- 

        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. 

-19- 

         (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. 

-20- 

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: _________________________	By: _________________________
	       Joseph P. Schneider	       James R. Bednark
	       President/Chief Executive Officer	       Relationship Manager
	

By: _________________________
	       David P. Carlson
	       Executive Vice President/Chief Financial Officer

-21-EXHIBIT 10.1

                       SIXTH AMENDMENT TO CREDIT AGREEMENT

         This SIXTH AMENDMENT TO CREDIT AGREEMENT (this  "Amendment"),  made and
entered into as of March 31, 2004,  is by and between  MATRIX  BANCORP,  INC., a
Colorado  corporation  (the  "Borrower"),  the  lenders  from time to time party
hereto (each a "Lender" and collectively, the "Lenders"), and U.S. BANK NATIONAL
ASSOCIATION ("U.S. Bank"), as agent for the Lenders (in such capacity,  together
with any successor agents appointed hereunder, the "Agent").

                                    RECITALS

         A. The  Borrower,  the Agent  and the  Lenders,  entered  into a Credit
Agreement  dated as of December  27,  2000,  as amended by a First  Amendment to
Credit  Agreement  dated as of March 5,  2001,  a  Second  Amendment  to  Credit
Agreement dated as of July 27, 2001, a Third Amendment to Credit Agreement dated
as of December  26, 2001, a Fourth  Amendment  to Credit  Agreement  dated as of
March 31, 2002 and a Fifth Amendment dated as of March 31, 2003 (as amended, the
"Credit Agreement"); and

         B. The  Borrower  desires  to amend  certain  provisions  of the Credit
Agreement,  and the  Lenders  and Agent  have  agreed  to make such  amendments,
subject to the terms and conditions set forth in this Amendment.

                                    AGREEMENT

         NOW, THEREFORE,  for good and valuable  consideration,  the receipt and
adequacy of which are hereby  acknowledged,  the parties hereto hereby  covenant
and agree to be bound as follows:

         Section 1.  Capitalized  Terms.  Capitalized  terms used herein and not
otherwise  defined herein shall have the meanings assigned to them in the Credit
Agreement, unless the context shall otherwise require.

         Section 2. Amendments.

                  Section 2.1  Definitions.  Section 1.1 of the Credit Agreement
         is amended by  deleting  the  definition  of  "Termination  Date" as it
         appears  therein and by inserting  the  following  definitions  in such
         Section 1.1 in the appropriate alphabetical order:

                           "Balance  Calculation  Period":  Each calendar  month
                  after the Sixth Amendment  Effective Date to and including the
                  later of the date on which the Notes  shall be paid in full or
                  the Termination Date, except that the last Balance Calculation
                  Period  shall  end on the later of the date on which the Notes
                  shall have been paid in full or the Termination Date.

                           "Balance Funded Rate Advance": An outstanding Advance
                  that bears interest as provided in Section 2.5(a).

<PAGE>

                           "Balances Deficiency": As defined in Section 2.5(a).

                           "Balances  Deficiency  Fee":  As  defined  in Section
                  2.5(a).

                           "Balance Funded  Amount":  With respect to any Lender
                  for  any  Balance  Calculation  Period,  the  average  of  the
                  Qualifying   Balances   of  such   Lender  for  such   Balance
                  Calculation Period.

                           "Balance Funded Rate":  2.65% per annum.

                           "Balances Surplus":  As defined in Section 2.5(b).

                           "Qualifying  Balances":  With  respect to any Lender,
                  for any day the  lesser  of (a) the  amount  of such  Lender's
                  Advances  on  such  day,  and  (b)  the  sum of the  collected
                  balances in all identified  non-interest  bearing  accounts of
                  Borrower   maintained   with  such  Lender  less  (i)  amounts
                  necessary   to   satisfy   reserve   and   deposit   insurance
                  requirements  and (ii)  amounts  required to  compensate  such
                  Lender for services  rendered in accordance with such Lender's
                  system of charges for services to similar accounts.

                           "Sixth  Amendment  Effective Date": The date on which
                  the Sixth Amendment to this Agreement becomes effective by its
                  terms.

                           "Termination  Date":  The  earliest  of (a) March 31,
                  2005,  (b) the date on which  the  Revolving  Commitments  are
                  terminated  pursuant  to Section 7.2 hereof or (c) the date on
                  which the  Revolving  Commitment  Amounts  are reduced to zero
                  pursuant to Section 2.8 hereof.

                  Section 2.2 Procedure for Balance Funded Advances. Section 2.4
         of the Credit Agreement is amended by adding the following new sentence
         at the end thereof:

                  Notwithstanding  anything to the  contrary in this  Agreement,
                  (a) Advances  may be made as or  converted  to Balance  Funded
                  Rate Advances in the same manner as Advances may be made as or
                  converted to Eurodollar Rate Advances,  provided that Advances
                  may not be made as,  converted  to, or  continued  as  Balance
                  Funded Rate  Advances if (i) a Default or Event of Default has
                  occurred and is continuing on the date of the proposed  making
                  of or  conversion  to Balance  Funded Rate  Advances  and (ii)
                  after the making of or  continuation  of such Advance,  if the
                  Balance  Funded  Amount  maintained  by the Borrower  with the
                  Lender that has made such  Advance is less than the  aggregate
                  amount of Balance Funded Rate Advances made by such Lender and
                  (b) Balance  Funded Rate  Advances  may be  converted to Prime
                  Rate Advances or  Eurodollar  Rate Advances in the same manner
                  as  Eurodollar  Rate  Advances  may be  converted  Prime  Rate
                  Advances.

                  Section 2.3  Interest  Rates,  Etc.  Section 2.5 of the Credit
         Agreement is deleted in its entirety and the  following is  substituted
         in lieu thereof:

                           Section 2.5  Interest  Rates,  Interest  Payments and
                  Default Interest.  Interest shall accrue and be payable on the
                  Loans as follows:

                                       2
<PAGE>

                           (a) Subject to  subsection  (d) below,  each  Balance
                  Funded Rate Advance shall bear interest at the Balance  Funded
                  Rate; provided, that if for any Balance Calculation Period the
                  Balance  Funded  Amount  maintained  by the Borrower  with any
                  Lender  is less  than an  amount  equal to the  average  daily
                  aggregate unpaid principal  balance of the Balance Funded Rate
                  Advances owed to such Lender  during such Balance  Calculation
                  Period  (such  deficiency  being  herein  referred  to as  the
                  "Balances  Deficiency"),  the Borrower  will pay such Lender a
                  fee  (the   "Balances   Deficiency   Fee")  for  said  Balance
                  Calculation  Period on the Balances  Deficiency at a per annum
                  rate equal to the average daily Adjusted  Eurodollar  Rate for
                  30 day  deposits;  and provided  further,  that if the Balance
                  Funded  Amount  maintained by the Borrower with any Lender for
                  any Balance  Calculation  Period exceeds the weighted  average
                  daily aggregate unpaid principal balance of the Balance Funded
                  Rate   Advances  owed  to  such  Lender  during  such  Balance
                  Calculation  Period (such excess being  defined  herein as the
                  "Balances  Surplus"),  then  such  Balances  Surplus,  or,  if
                  Borrower and such Lender shall so agree, the charges reduction
                  benefit  for such  Balances  Surplus  (as  determined  by such
                  Lender),  may be carried  forward  and  applied to  succeeding
                  Balance   Calculation   Periods   (but  not  to  any   Balance
                  Calculation Period occurring in any subsequent calendar year).

                           (b) Subject to paragraph (d) below,  each  Eurodollar
                  Rate  Advance  shall bear  interest  on the  unpaid  principal
                  amount thereof at a varying rate per annum equal to the sum of
                  (A) the Adjusted  Eurodollar  Rate for such  Interest  Period,
                  plus (B) the Applicable Margin.

                           (c) Subject to paragraph  (d) below,  each Prime Rate
                  Advance  shall bear  interest on the unpaid  principal  amount
                  thereof  at a varying  rate per annum  equal to the sum of (A)
                  the Prime Rate, plus (B) the Applicable Margin.

                           (d) Upon the occurrence and during the continuance of
                  any Event of Default, each Advance shall, at the option of the
                  Majority  Lenders,  bear interest  until paid in full at a the
                  rate otherwise applicable thereto plus 2.0%.

                           (e) Interest shall be payable on the last day of each
                  month;  provided that interest  under Section  2.5(c) shall be
                  payable  on  demand.  Any  Balances   Deficiency  Fee  payable
                  hereunder  shall be due and payable monthly after each Balance
                  Calculation  Period  within two Business Days after receipt by
                  the Borrower  from any Lender of a statement  therefor (a copy
                  of  which  shall  be  provided   to  Agent)   containing   the
                  calculations  made to determine such Balances  Deficiency Fee,
                  which statement shall be conclusive absent manifest error.

                  Section 2.4 Term Loan  Maturity  Date.  Section  2.6(b) of the
         Credit  Agreement is hereby  amended by deleting the date "December 31,
         2004"  contained in the fifth line thereof and replacing such date with
         "December 31, 2006."

                                       3
<PAGE>

                  Section 2.5 Increased Cost; Illegality. Sections 2.14 and 2.15
         of the Credit Agreement are generally  amended,  mutatis  mutandis,  so
         that such sections  shall apply to Balance Funded Rate Advances as well
         as to Eurodollar Rate Advances.

                  Section  2.6  Net  Income.   Section  6.15(c)  of  the  Credit
         Agreement is hereby amended in its entirety to read as follows:

                           (c) Net Income.  The Borrower shall not permit Matrix
                  Bank's Net Income,  as of the last day of any fiscal  quarter,
                  for the four consecutive  fiscal quarters ending on such date,
                  to be less than:  (a) $6,000,000 as of March 31, 2004 and June
                  30, 2004 and (b)  $7,500,000  as of the end of  September  30,
                  2003 and the end of each fiscal quarter thereafter.

                  Section 2.7 Additional  Subordinated Debt. Section 6.10 of the
         Credit  Agreement  is  hereby  amended  to add  the  following  Section
         6.10(p):

                           (p) Additional unsecured Indebtedness of the Borrower
                  in the form of notes or debentures that have been subordinated
                  to the  Obligations  in a  manner  approved  by  the  Majority
                  Lenders  prior to the  creation  of such  Indebtedness,  in an
                  aggregate  principal  amount not to exceed  $11,000,000 at any
                  time outstanding.

         Section 3.  Effectiveness  of Amendments.  The amendments  contained in
this  Amendment  shall become  effective as of the date first above written (the
"Sixth  Amendment  Effective  Date")  provided the Agent shall have  received at
least four (4) counterparts of this Amendment,  duly executed by the Company and
all of the Lenders,  and the Agent shall have received the following,  each duly
executed or certified:

                  Section 3.1 This Amendment duly executed by the Borrower.

                  Section  3.2 A  copy  of  the  resolutions  of  the  Board  of
         Directors  of the  Borrower  authorizing  the  execution,  delivery and
         performance  of this  Amendment  certified  as true and accurate by its
         Secretary or Assistant  Secretary,  along with a certification  by such
         Secretary or Assistant  Secretary (i) certifying that there has been no
         amendment to the Certificate of Incorporation or Bylaws of the Borrower
         since true and accurate copies of the same were previously delivered to
         the Lender with a certificate of the secretary of the Borrower and (ii)
         identifying  each  officer of the Borrower  authorized  to execute this
         Amendment  and  any  other  instrument  or  agreement  executed  by the
         Borrower  in  connection   with  this  Amendment   (collectively,   the
         "Amendment  Documents"),   and  certifying  as  to  specimens  of  such
         officer's  signature and such  officer's  incumbency in such offices as
         such officer holds.

                  Section 3.3 The Consent and  Agreement of  Guarantors,  in the
         form prescribed by the Agent, duly executed by each Guarantor.

                  Section  3.4 The  Borrower  shall  have  satisfied  such other
         conditions as specified by the Agent and the Lenders, including payment
         of all unpaid legal fees and expenses incurred by the Agent through the
         date of this Amendment in connection with the Credit  Agreement and the
         Amendment Documents.

                                       4
<PAGE>

         Section 4. [Reserved].

         Section 5. Representations, Warranties, Authority, No Adverse Claim.

                  Section 5.1 Reassertion of Representations and Warranties,  No
         Default.  The  Borrower  hereby  represents  that on and as of the date
         hereof  and  after  giving  effect  to  this  Amendment  (a) all of the
         representations  and warranties  contained in the Credit  Agreement are
         true,  correct and  complete  in all  respects as of the date hereof as
         though made on and as of such date, except for changes permitted by the
         terms of the Credit  Agreement,  and (b) there will exist no Default or
         Event  of  Default  under  the  Credit  Agreement  as  amended  by this
         Amendment  on such date which has not been  waived by the Agent and the
         Lenders.

                  Section 5.2 Authority,  No Conflict, No Consent Required.  The
         Borrower  represents  and warrants  that the Borrower has the power and
         legal right and authority to enter into the Amendment Documents and has
         duly  authorized  as  appropriate  the  execution  and  delivery of the
         Amendment  Documents and other  agreements  and documents  executed and
         delivered by the Borrower in connection herewith or therewith by proper
         corporate  action,  and  none  of  the  Amendment   Documents  nor  the
         agreements  contained  herein or therein  contravenes  or constitutes a
         default  under any  agreement,  instrument  or  indenture  to which the
         Borrower is a party or a signatory  or a  provision  of the  Borrower's
         Certificate  of  Incorporation,   Bylaws  or  any  other  agreement  or
         requirement  of law in  which  the  consequences  of  such  default  or
         violation  could  have a  material  adverse  effect  on  the  business,
         operations, properties, assets or condition (financial or otherwise) of
         the Borrower and its  Subsidiaries  taken as a whole,  or result in the
         imposition  of any  Lien on any of its  property  under  any  agreement
         binding on or applicable to the Borrower or any of its property except,
         if any, in favor of the Agent on behalf of the  Lenders.  The  Borrower
         represents and warrants that no consent,  approval or  authorization of
         or  registration  or  declaration  with any Person,  including  but not
         limited to any governmental  authority,  is required in connection with
         the execution  and delivery by the Borrower of the Amendment  Documents
         or  other  agreements  and  documents  executed  and  delivered  by the
         Borrower in connection  therewith or the  performance of obligations of
         the Borrower therein described, except for those which the Borrower has
         obtained  or  provided  and as to  which  the  Borrower  has  delivered
         certified copies of documents evidencing each such action to the Agent.

                  Section  5.3  No  Adverse   Claim.   The  Borrower   warrants,
         acknowledges  and  agrees  that  no  events  have  taken  place  and no
         circumstances  exist at the date hereof which would give the Borrower a
         basis to assert a defense,  offset or  counterclaim to any claim of the
         Agent or the Lenders with respect to the  Obligations or the Borrower's
         obligations under the Credit Agreement as amended by this Amendment.

                                       5
<PAGE>

         Section 6. Affirmation of Credit  Agreement,  Further  References.  The
Agent, the Lenders, and the Borrower each acknowledge and affirm that the Credit
Agreement,  as hereby amended,  is hereby ratified and confirmed in all respects
and all terms,  conditions  and  provisions of the Credit  Agreement,  except as
amended by this Amendment, shall remain unmodified and in full force and effect.
All references in any document or instrument to the Credit  Agreement are hereby
amended and shall refer to the Credit  Agreement  as amended by this  Amendment.
All of the terms, conditions,  provisions, agreements,  requirements,  promises,
obligations,  duties,  covenants and  representations of the Borrower under such
documents  and any and all other  documents  and  agreements  entered  into with
respect to the obligations under the Credit Agreement are incorporated herein by
reference and are hereby ratified and affirmed in all respects by the Borrower.

         Section 7. Merger and Integration,  Superseding Effect. This Amendment,
from and after the date hereof,  embodies the entire agreement and understanding
between the parties hereto and supersedes and has merged into this Amendment all
prior oral and  written  agreements  on the same  subjects  by and  between  the
parties hereto with the effect that this  Amendment,  shall control with respect
to the specific subjects hereof and thereof.

         Section 8.  Severability.  Whenever  possible,  each  provision of this
Amendment and the other Amendment Documents and any other statement,  instrument
or  transaction  contemplated  hereby or thereby or  relating  hereto or thereto
shall be  interpreted in such manner as to be effective,  valid and  enforceable
under the  applicable  law of any  jurisdiction,  but, if any  provision of this
Amendment,  the other Amendment Documents or any other statement,  instrument or
transaction  contemplated  hereby or thereby or relating hereto or thereto shall
be held to be prohibited,  invalid or  unenforceable  under the applicable  law,
such provision shall be ineffective in such  jurisdiction  only to the extent of
such  prohibition,  invalidity  or  unenforceability,  without  invalidating  or
rendering  unenforceable  the  remainder  of  such  provision  or the  remaining
provisions  of this  Amendment,  the  other  Amendment  Documents  or any  other
statement,  instrument or transaction contemplated hereby or thereby or relating
hereto or thereto in such jurisdiction, or affecting the effectiveness, validity
or enforceability of such provision in any other jurisdiction.

         Section 9.  Successors.  The Amendment  Documents shall be binding upon
the Borrower,  the Lenders,  and the Agent and their  respective  successors and
assigns,  and shall inure to the benefit of the Borrower,  the Lenders,  and the
Agent and the successors and assigns of the Lenders and the Agent.

                                       6
<PAGE>

         Section 10.  Legal  Expenses.  As provided in Section 9.2 of the Credit
Agreement,  the Borrower  agrees to reimburse the Agent,  upon execution of this
Amendment,  for all reasonable  out-of-pocket expenses (including attorney' fees
and legal expenses of Dorsey & Whitney LLP,  counsel for the Agent)  incurred in
connection  with  the  Credit  Agreement,   including  in  connection  with  the
negotiation,  preparation and execution of the Amendment Documents and all other
documents  negotiated,  prepared and executed in  connection  with the Amendment
Documents,  and in enforcing the obligations of the Borrower under the Amendment
Documents,  and to pay and save the  Agent  and the  Lenders  harmless  from all
liability for, any stamp or other taxes which may be payable with respect to the
execution  or delivery of the  Amendment  Documents,  which  obligations  of the
Borrower shall survive any termination of the Credit Agreement.

         Section  11.  Headings.  The  headings  of  various  sections  of  this
Amendment  have been inserted for reference only and shall not be deemed to be a
part of this Amendment.

         Section 12.  Counterparts.  The Amendment  Documents may be executed in
several  counterparts as deemed necessary or convenient,  each of which, when so
executed, shall be deemed an original, provided that all such counterparts shall
be  regarded as one and the same  document,  and either  party to the  Amendment
Documents  may execute any such  agreement  by executing a  counterpart  of such
agreement.

         Section 13. Governing Law. THE AMENDMENT DOCUMENTS SHALL BE GOVERNED BY
THE INTERNAL LAWS OF THE STATE OF MINNESOTA,  WITHOUT  GIVING EFFECT TO CONFLICT
OF LAW  PRINCIPLES  THEREOF,  BUT GIVING  EFFECT TO FEDERAL LAWS  APPLICABLE  TO
NATIONAL BANKS, THEIR HOLDING COMPANIES AND THEIR AFFILIATES.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

                                       7
<PAGE>

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

                                      MATRIX BANCORP, INC.

                                      By
                                        -----------------------------------
                                        Its
                                           --------------------------------

                                      U.S. BANK NATIONAL ASSOCIATION

                                      By
                                        -----------------------------------
                                        Its
                                           --------------------------------

             [Signature Page to Sixth Amendment to Credit Agreement]

                                      S - 1

<PAGE>

                       CONSENT AND AGREEMENT BY GUARANTORS

         This Consent and  Agreement by  Guarantors  ("Consent")  is made by the
undersigned (each a "Guarantor," and collectively,  the "Guarantors"),  in favor
of U.S. BANK NATIONAL ASSOCIATION, a national banking association,  as Agent for
the Lenders party to the Credit  Agreement  described  below (the "Agent"),  and
such Lenders and is dated as of March 31, 2004.

         WHEREAS,  each Guarantor  executed a Guaranty  ("Guaranty") in favor of
the Agent and the Lenders  dated as of December  27,  2000,  by which  Guarantor
guaranteed the obligations of Matrix Bancorp, Inc., a Colorado corporation, (the
"Borrower") to the Agent and the Lenders,  including,  without  limitation,  the
Borrower's  obligations  to the Agent and the Lenders under that certain  Credit
Agreement dated as of December 27, 2000 by and between the Borrower, the Lenders
party thereto and the Agent (the "Credit Agreement");

         WHEREAS,  the Borrower  desires to amend the Credit Agreement to modify
certain  provisions  of the Credit  Agreement  pursuant to a Sixth  Amendment to
Credit Agreement of even date herewith by and between the Borrower,  the Lenders
party to the Credit Agreement, and the Agent (the "Amendment");

         WHEREAS,  the Agent has  refused to execute  the  Amendment  unless the
Guarantors execute this Consent;

         NOW, THEREFORE,  for good and valuable  consideration,  the receipt and
sufficiency  of which are hereby  acknowledged,  and to induce the Agent and the
Lenders  to  amend  certain   provisions  of  the  Credit   Agreement,   and  in
consideration of their doing so, the Guarantors  hereby  acknowledge and consent
to the  amendments  to the Credit  Agreement  as provided  under the  Amendment,
substantially in the form previously provided to the Guarantors,  and agree that
all  obligations  of the Borrower  under the Credit  Agreement as amended by the
Amendment are subject to their respective Guaranty.

         Each Guarantor  acknowledges  and agrees that this Consent shall not in
any way extinguish any of the  obligations of the Guarantor  under the Guaranty,
which  obligations  shall  continue  and  shall  not  in  any  circumstances  be
terminated,  extinguished or discharged  hereby,  but the terms of such Guaranty
continue in full force and effect.

             [THE REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY.]

<PAGE>

                  IN WITNESS WHEREOF, this Consent has been duly executed by the
undersigned the day and year first above written.

                            ABS SCHOOL SERVICES, LLC

                            By
                              ---------------------------------------
                                Its
                                   ----------------------------------

                             EQUI-MOR HOLDINGS, INC.

                            By
                              ---------------------------------------
                                Its
                                   ----------------------------------

                           MATRIX FUNDING CORPORATION

                           By
                              ---------------------------------------
                              Its
                                 ------------------------------------

                           MATRIX BANCORP TRADING, INC. (f/k/a Matrix Capital
                           Markets, Inc.)

                           By
                             ---------------------------------------
                             Its
                                ------------------------------------

                           MATRIX ASSET MANAGEMENT CORP. (f/k/a United Special
                           Services, Inc.)

                           By
                              ---------------------------------------
                              Its
                                 ------------------------------------

<PAGE>

                             SECRETARY'S CERTIFICATE

         I,   _____________________,   hereby  certify  to  U.S.  Bank  National
Association, as "Agent" on behalf of the "Lenders" (as such terms are defined in
the Credit Agreement), on behalf of Matrix Bancorp, Inc., a Colorado corporation
(the "Company"), as follows:

         1. I am the duly elected and acting Secretary of the Company.

         2. The resolutions  adopted by the Board of Directors of the Company on
December 27, 2000, a true, complete,  and correct copy of which were attached to
a certificate of the Secretary of the Company dated December 27, 2000, remain in
full force and effect as of the date  hereof.  Such  resolutions  authorize  the
execution  and  delivery by the  officers of the Company  listed in  paragraph 4
below of the Sixth Amendment to the Credit  Agreement dated as of March 31, 2004
and the other Amendments Documents (as defined in such Sixth Amendment) to which
the Company is a party.

         3. There has been no  amendment  to the  Articles of  Incorporation  or
Bylaws of the Company since true and accurate  copies of the same were delivered
to the Bank with a certificate  of the  Secretary of the Company dated  December
27, 2000.

         4. The following  persons are duly elected and acting incumbents in the
corporate  offices  indicated,  and the signature set forth opposite the name of
each such person is the true and genuine specimen signature of such person:

                  Name and Title                              Signature

         T. Allen McConnell                          Senior Vice President

         David W. Kloos                              Chief Financial Officer

         IN WITNESS WHEREOF,  I have executed this Secretary's  Certificate this
___ day of ____________, 2004.

                                       ____________________________________
                                       Name: ______________________________
                                       Title:  Secretary

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