Document:

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                                                                   Exhibit 10.2

                   THIRTEENTH AMENDMENT TO CREDIT AGREEMENT
                   ----------------------------------------

          This THIRTEENTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is
                                                               ---------
entered into as of October 27, 2000, by and among CONVERSE INC. (the
"Borrower"), BT COMMERCIAL CORPORATION, AS AGENT (in such capacity, the
 --------
"Agent"), and the several banks and other financial institutions listed on the
 -----
signature pages of this agreement (together with each of their respective
successors and assigns, individually, a "Lender" and, collectively, the
                                         ------
"Lenders").
 -------

                                  WITNESSETH:

          WHEREAS, the Agent, the Lenders and the Borrower are parties to that
certain Credit Agreement dated as of May 21, 1997, as amended by that certain
First Amendment to Credit Agreement dated as of June 26, 1997, that certain
Second Amendment to Credit Agreement dated as of November 21, 1997, that certain
Third Amendment to Credit Agreement dated as of January 29, 1998, that certain
Fourth Amendment to Credit Agreement dated as of September 16, 1998, that
certain Fifth Amendment to Credit Agreement dated as of May 28, 1999, that
certain Sixth Amendment to Credit Agreement dated as of July 30, 1999, that
certain Seventh Amendment to Credit Agreement dated as of October 31, 1999, that
certain Eighth Amendment to Credit Agreement dated November 15, 1999, that
certain Ninth Amendment to Credit Agreement dated February 15, 2000, that
certain Tenth Amendment to Credit Agreement dated March 31, 2000, that certain
Eleventh Amendment to Credit Agreement dated May 15, 2000, and that certain
Twelfth Amendment to Credit Agreement dated June 30, 2000 (such Credit Agreement
as amended, supplemented or otherwise modified prior to the date hereof, the
"Credit Agreement"); and
 ----------------

          WHEREAS, the Borrower has requested that the Borrower, the Lenders,
and the Agent enter into that certain Forbearance Agreement, dated as of October
27, 2000 (such Forbearance Agreement as amended, supplemented or otherwise
modified, the "Forbearance Agreement"); and
               ---------------------

          WHEREAS, as a condition to entering into the Forbearance Agreement,
the Lenders and the Agent have required that certain provisions of the Credit
Agreement be modified in the manner provided for in this Amendment.

          NOW, THEREFORE, in consideration of the mutual agreements herein
contained and other good and valuable consideration, the adequacy of which is
hereby acknowledged, and subject to the terms and conditions hereof, the parties
hereto agree as follows:

     Section 1.  DEFINITIONS.  Unless otherwise defined herein, all capitalized
                 -----------
terms shall have the meaning given to them in the Credit Agreement.

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     Section 2.  AMENDMENTS TO CREDIT AGREEMENT.
                 ------------------------------

     2.1     Additional Definitions. Section 1.1 of the Credit Agreement is
hereby amended by inserting the following new defined terms in proper
alphabetical sequence:

                         "Adjusted Total Commitment shall mean, for any date
                          -------------------------
             after the first Amortization Date, the greater of (x) the sum of
             (i) the outstanding principal balance of Revolving Loans, plus
                                                                       ----
             (ii) the aggregate Letter of Credit Obligations, plus (iii) the
                                                              ----
             aggregate Foreign Exchange Obligations, plus (iv) the aggregate
                                                     ----
             Acceptance Obligations, in each case, as of the immediately
             preceding Amortization Date (or if such date is an Amortization
             Date, as of such date) or (y) the amount listed opposite the
             immediately preceding Amortization Date (or if such date is an
             Amortization Date, listed opposite such date) in the definition of
             Projected Commitments."

                         "Amortization Date shall mean each date listed under
                          -----------------
             the caption "Amortization Date" in the definition of Projected
             Commitments."

                         "Eligible L/C Inventory shall have the meaning given
                          ----------------------
             thereto in clause (B) of the definition of "Borrowing Base"
             contained herein."

                         "Excess Proceeds shall mean (i) with respect to an
                          ---------------
             Asset Disposition of the North Reading Building, Net Cash Proceeds
             of such Asset Disposition to the extent such Net Cash Proceeds
             exceed $9,000,000; provided that the maximum amount of
                                --------
             Excess Proceeds pursuant to this clause (i) shall be $3,000,000,
             and (ii) with respect to an Asset Disposition of all or a portion
             of the North American Manufacturing Operations, the aggregate Net
             Cash Proceeds of all such Asset Dispositions to the extent such Net
             Cash Proceeds exceed the excess of (y) $7,000,000 over (z) the
             aggregate value of all Inventory sold in all such Asset
             Dispositions."

                         "Fixed Asset Sublimit shall have the meaning given to
                          --------------------
             it in clause (D) of the definition of "Borrowing Base" contained
             herein."

                         "North American Manufacturing Operations shall mean,
                          ---------------------------------------
             either individually or collectively, the Borrower's manufacturing
             operations located at (i) Mission, Texas, (ii) Reynosa, Mexico, and
             (iii) Lumberton, North Carolina."

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                         "North Reading Building shall mean the building located
                          ----------------------
             at One Fordham Road, North Reading, MA."

                         "Projected Commitments shall mean, for each date listed
                          ---------------------
             below, the amount listed opposite such date:

                         Amortization            Projected
                             Date               Commitment
                             ----               ----------

                       March 31, 2001          $55,000,000
                       April 30, 2001          $45,000,000
                       May 31, 2001            $25,000,000
                       August 31, 2001         $10,000,000
                       December 31, 2001       $        0"

     2.2     Definitions.

                       (1)   Borrowing Base. Section 1.1 of the Credit Agreement
is hereby further amended by deleting the definition "Borrowing Base" appearing
therein and inserting the following in lieu thereof:

                       "Borrowing Base shall mean an amount equal to the sum of
                        --------------

                       (A) eighty-five percent (85%) of the then Eligible
           Accounts Receivable, plus
                                ----

                       (B) the lesser of (i) $40,000,000 and (ii) the sum of (1)
           sixty-five percent (65%) of the then Eligible Inventory, plus (2) an
           amount equal to sixty-five percent (65%) of the face amount of any
           Letter of Credit issued to support the purchase of finished goods
           Inventory which, in the determination of the Agent in the exercise of
           its Permitted Discretion, would constitute Eligible Inventory when
           title thereto passes to the Borrower ("Eligible L/C Inventory");
                                                  ----------------------
           provided, that from and after April 1, 2001, the advance rate with
           --------
           respect to Eligible Inventory and Eligible L/C Inventory shall be
           sixty percent (60%); plus
                                ----
                       (C) sixty percent (60%) of the then Eligible Retail
           Inventory, plus
                      ----

                       (D) $5,320,000 (as reduced pursuant to this clause (D),
                                                                   ---------
            the "Fixed Asset Sublimit"), provided that such amount shall
                 --------------------
            automatically be

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            reduced from time to time during the term hereof by (x) on the first
            business day of February 2001, May 2001, August 2001 and November
            2001, and so long as the Fixed Asset Sublimit is greater than zero,
            the lesser of (I) the Fixed Asset Sublimit as of such day (prior to
            any reduction pursuant to this clause (x)), and (II) $360,000, (y)
            an amount equal to the Net Cash Proceeds from any Asset Disposition,
            other than Excess Proceeds of a disposition from the sale of the
            North Reading Building or the North American Manufacturing
            Operations, and (z) on February 28, 2001, an amount equal to the
            Excess Proceeds from the sale of the North Reading Building (it
            being understood that the dollar amount set forth in this clause (D)
            may be a negative number (and thereby shall reduce the Borrowing
            Base)), plus
                    ----

                       (E) the lesser of (i) $15,000,000 or (ii) sixty-five
            percent (65%) of Borrower's annual Royalty Income, based on a
            rolling twelve month period.

                       Agent at any time (upon one (1) Business Days' notice to
            Borrower) in the exercise of its Permitted Discretion shall be
            entitled to (i) establish and increase or decrease reserves against
            Eligible Accounts Receivable, Eligible Inventory, Eligible L/C
            Inventory, Eligible Retail Inventory, or the Borrowing Base, (ii)
            reduce the advance rates under clauses (A), (B), (C) and (E) above
            or (following any such reduction) restore the advance rates under
            clauses (A), (B), (C) and (E) above to any level equal to or below
            the advance rates stated in clauses (A), (B), (C) and (E) above,
            (iii) impose additional restrictions (or eliminate the same) to the
            standards of eligibility set forth in the respective definitions of
            Eligible Accounts Receivable, Eligible Inventory, Eligible L/C
            Inventory, or Eligible Retail Inventory or the Borrowing Base and
            (iv) establish and increase or decrease a reserve in the amount of
            interest payable by Borrower, including interest on Loans, Letter of
            Credit Obligations and Acceptance Obligations."

                       (2) Expiration Date. Section 1.1 of the Credit Agreement
is hereby further amended by deleting the definition "Expiration Date" appearing
therein and inserting the following in lieu thereof:

                        "Expiration Date shall mean December 31, 2001."
                         ---------------

                       (3) LIBOR Rate Margin. Section 1.1 of the Credit
Agreement is hereby further amended by

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deleting the definition "LIBOR Rate Margin" appearing therein and inserting the
following in lieu thereof:

                        "LIBOR Rate Margin shall three and one-half percent
                         -----------------
            (3.50%) per annum."

                        (4)  Net Cash Proceeds. Section 1.1 of the Credit
Agreement is hereby further amended by inserting the following text at the end
of the definition of "Net Cash Proceeds":

            "Notwithstanding the foregoing and solely for the purpose of clause
            (D) of the definition of Borrowing Base, clause (ii) of the
            definition of Excess Proceeds, and Section 3.5(c)(v) hereof, Net
            Cash Proceeds shall not include cash received by the Borrower in
            connection with the sale of all or a portion of the Borrower's North
            American Manufacturing Operations to the extent and only to the
            extent that such cash is attributable to the value of the Inventory
            sold in such transaction."

                        (5)  Section 1.1 of the Credit Agreement is hereby
further amended by deleting the second sentence of the definition of "Permitted
Discretion" and inserting the following text in lieu thereof:

            "In exercising such judgment, the Agent may consider such factors
            which are already included in or tested by the definition of
            Eligible Accounts Receivable, Eligible Inventory, Eligible L/C
            Inventory, Eligible Retail Inventory, or the Borrowing Base, as well
            as any of the following: (i) changes in collection history and
            dilution with respect to the Accounts, (ii) changes in levels of
            backlog of firm purchase orders and demand for, and pricing of,
            Inventory, (iii) changes in any concentration of risk with respect
            to Accounts and Inventory and (iv) any other factors that change the
            credit risk of lending to the Borrower on the security of the
            Collateral."

     2.3    Determination of Borrowing Base. Section 3.2 of the Credit Agreement
is hereby amended by deleting the last sentence of subsection (a) thereof.

     2.4    Asset Dispositions. Section 3.5 of the Credit Agreement is hereby
amended by deleting subsection (c) appearing therein and inserting the following
new subsection (c) in lieu thereof:

            "(c) (i) If the Borrower shall make any Asset Disposition of the
            North Reading Building prior to February 28, 2001, (x) the Borrower
            shall make a prepayment of the Revolving Loans in an amount equal to
            the Net Cash

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            Proceeds received in connection therewith, (y) the Revolving Credit
            Commitment of each Lender shall automatically reduce by an amount
            equal to such Lender's Proportionate Share of such Net Cash Proceeds
            (other than Excess Proceeds in respect of such Asset Disposition),
            and (z) such Revolving Credit Commitments may not be reinstated.

                         (ii)  If the Borrower shall make any Asset Disposition
                    of the North Reading Building on or after February 28, 2001
                    and prior to March 31, 2001 (x) the Borrower shall make a
                    prepayment of the Revolving Loans in an amount equal to the
                    Net Cash Proceeds in connection therewith, (y) the Revolving
                    Credit Commitment of each Lender shall automatically reduce
                    by an amount equal to such Lender's Proportionate Share of
                    such Net Cash Proceeds, and (z) such Revolving Credit
                    Commitments may not be reinstated.

                         (iii) If the Borrower shall make any Asset Disposition
                    of the North Reading Building after March 31, 2001, the
                    Borrower shall make a prepayment of the Revolving Loans in
                    an amount equal to the Net Cash Proceeds in connection
                    therewith but the Revolving Credit Commitments shall not be
                    reduced by such prepayment.

                         (iv)  If the Borrower shall make an Asset Disposition
                    of the North Reading Building prior to February 28, 2001 and
                    there shall be any Excess Proceeds in connection therewith,
                    then on February 28, 2001 (y) the Revolving Credit
                    Commitment of each Lender shall automatically reduce by an
                    amount equal to such Lender's Proportionate Share of such
                    Excess Proceeds, and (z) such Revolving Credit Commitments
                    may not be reinstated.

                         (v)   If the Borrower shall make an Asset Disposition
                    of all or a portion of the North American Manufacturing
                    Operations, (x) the Borrower shall make a prepayment of the
                    Revolving Loans in an amount equal to the Net Cash Proceeds
                    received in connection therewith, (y) the Revolving Credit
                    Commitment of each Lender shall automatically reduce by an
                    amount equal to such Lender's Proportionate Share of such
                    Net Cash Proceeds (other than Excess Proceeds), and (z) such
                    Revolving Credit Commitments may not be reinstated.

                         (vi)  If the Borrower shall make any Asset Disposition
                    (other than an Asset Disposition covered by clauses (i)
                                                                -----------
                    through (v)
                            ---

                                       6
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                    above) (x) the Borrower shall make a prepayment of the
                    Revolving Loans in an amount equal to the Net Cash Proceeds
                    received in connection with such Asset Disposition, (y) the
                    Revolving Credit Commitment of each Lender shall
                    automatically reduce by an amount equal to such Lender's
                    Proportionate Share of such Net Cash Proceeds, and (z) such
                    Revolving Credit Commitments may not be reinstated."

               2.5  Amortization. Section 3.5 of the Credit Agreement is hereby
further amended by inserting the following new subsection (f) at the end
thereof:

               "(f) If on any Amortization Date the Total Commitments exceed the
               Adjusted Total Commitments, then on such Amortization Date, the
               Revolving Credit Commitment of each Lender shall automatically
               reduce to an amount equal to the product of (x) the Adjusted
               Total Commitment as of such Amortization Date, multiplied by (y)
               such Lender's Proportionate Share determined immediately prior to
               such reduction. Such reduction shall constitute a permanent
               reduction of the Total Commitment and each Lender's Revolving
               Credit Commitment and may not be reinstated. Upon any such
               reduction, Annex I shall be deemed to be amended to reflect the
               reduction in the Total Commitment and the Revolving Credit
               Commitment."

               2.6  Commitment Reduction. Section 3.5 of the Credit Agreement is
hereby further amended by inserting the following new subsection (g) at the end
thereof:

               "(g) On November 6, 2000, the Total Commitment shall
               automatically reduce to $80,000,000, and the Revolving Credit
               Commitment of each Lender shall automatically reduce to the
               amount set forth on Annex I, as amended, and the aggregate
               balance of Revolving Loans, plus all Letter of Credit Obligations
                                           ----
               outstanding, plus all Foreign Exchange Obligations, plus all
                            ----                                   ----
               Acceptance Obligations, in excess of $80,000,000 shall be
               immediately due and payable without the necessity of any demand.
               Such reduction shall constitute a permanent reduction of the
               Total Commitment and each Lender's Revolving Credit Commitment
               and may not be reinstated."

               2.7  Bank Accounts. Article 5 of the Credit Agreement is hereby
amended by inserting the following new Section 5.29 at the end thereof:

               "5.29 Bank Accounts. Set forth on Schedule E is a true and
                     -------------
               correct list of all existing bank accounts of the Borrower and
               its domestic Subsidiar-

                                       7
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                    ies, including any checking, savings or other account at any
                    bank or other financial institution, or any other account
                    where money is or may be deposited or maintained with any
                    Person, other than the Loan Disbursement Account."

               2.8  Information.  Section 6.1 of the Credit Agreement is hereby
amended by deleting subsection (e) appearing therein and inserting the following
new subsection (e) in lieu thereof:

                    "(e) on (i) December 1, 2000, (ii) the first Business Day of
                    every month thereafter, and (iii) at such other times as may
                    be requested by the Agent, a budget of the Borrower and its
                    Subsidiaries, together with a comparison of actual results
                    with each such budget previously delivered, each such budget
                    to be presented on a monthly basis through a date not
                    earlier than the later of (y) December 31, 2001, or (z) a
                    date twelve calendar months from the date that such budget
                    is required to be delivered;"

               2.9  Corporate Existence.  Section 6.8 of the Credit Agreement is
hereby amended by deleting the period appearing at the end thereof inserting the
following text in lieu thereof:

                    "; provided, that nothing in this Section 6.8 shall prohibit
                       --------
                    the Borrower from discontinuing its manufacturing operations
                    and converting to a Person primarily engaged in the
                    licensing of its Proprietary Rights."

               2.10 Funded Debt.  Section 7.1 of the Credit Agreement is hereby
amended by deleting clause (v) appearing therein and inserting the following new
clause (v) in lieu thereof:

                    "(v) To the extent incurred prior to October 27, 2000, any
                         other Funded Debt not described in clauses (i) through
                         (iv) above (the "Additional Funded Debt") which, when
                         aggregated with the Funded Debt of Borrower under
                         clauses (i), (ii), and (iii) above then outstanding,
                         shall not exceed the principal sum of $225,000,000;"

               2.11 Investments.  Section 7.3 of the Credit Agreement is hereby
amended by deleting clause (e) appearing therein and inserting the following new
clause (e) in lieu thereof:

                    "(e) Investments in new Subsidiaries, including new Foreign
                         Subsidiaries, created after May 21, 1997 and prior to
                         October 27, 2000, to the extent that such Investments
                         are made prior to October 27, 2000."

                                       8
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               2.12 Negative Pledge. Section 7.4 of the Credit Agreement is
hereby amended by deleting clause (e) appearing therein and inserting the
following new clause (e) in lieu thereof:

                    "(e) To the extent created or assumed prior to October 27,
                         2000, Liens securing Debt incurred pursuant to Section
                         7.1(v);"

               2.13 Consolidations, Mergers and Sales of Assets. Section 7.5 of
the Credit Agreement is hereby amended by deleting said section in its entirety
and inserting the following in lieu thereof:

                    "7.5 Consolidations, Merger and Sales of Assets.
                         ------------------------------------------

                         (a) The Borrower will not sell, convey, lease or
                    otherwise transfer, or cause or permit to be sold, conveyed,
                    leased or otherwise transferred, directly or indirectly, in
                    whole or in part, any assets, other than (i) Inventory
                    (including obsolete Inventory) in the ordinary course of
                    business, (ii) Accounts supported by letters of credit
                    discounted on a commercially reasonable basis, (iii)
                    obsolete or worn out equipment, (iv) the North Reading
                    Building, (v) the North American Manufacturing Operations,
                    and (vi) other property, plant or equipment; provided that
                                                                 --------
                    no such sale, conveyance, lease or other transfer shall be
                    permitted hereunder unless (aa) in the case of clauses (iii)
                    through (vi), any such sale, conveyance, lease or transfer
                    shall be for no less than the fair market value of such
                    asset at the time of such sale, (bb) in the case of clauses
                    (iii) through (vi), the purchase price for the assets sold,
                    conveyed, leased or otherwise transferred in such
                    transaction shall be paid to the Borrower solely in cash on
                    the closing date of such transaction, (cc) in the case of
                    clauses (iii) through (vi), the proceeds of such transaction
                    shall be used to prepay the Revolving Loans and to
                    permanently reduce the Commitments to the extent required by
                    and in accordance with the terms of Section 3.5(c) hereof,
                    (dd) in the case of clauses (iii) through (vi), no Default
                    or Event of Default has occurred and is continuing or would
                    result from such transaction (which requirement may be
                    waived in writing by the Agent in its good faith
                    discretion), and (ee) for any sale, conveyance, lease or
                    transfer of the North Reading Building or the North American
                    Manufacturing Operations, the Borrower shall provide a
                    certificate of an officer of the Borrower certifying (I) the
                    Borrower's compliance with the requirements of this Section
                    7.5, and (II) setting forth a detailed calculation of the
                    Net Cash Proceeds of such transaction and of any prepayment
                    of the Revolving Loans and reduction of the Total
                    Commitments required pursuant to Section 3.5(c) or any other
                    provision of this Agreement as a result thereof.

                                       9
<PAGE>

                    (b)  The Borrower shall continue to maintain the operating
               integrity of its business and shall continue to operate only in
               the same general types of businesses as now conducted thereby and
               reasonable extensions thereof, and shall continue to preserve,
               renew and keep in full force and effect, its corporate existence
               and all material rights, privileges and franchises necessary or
               desirable in the normal conduct of its business; provided, that
                                                                --------
               nothing in this Section 7.5(b) shall prohibit the Borrower from
               discontinuing its manufacturing operations and converting to a
               Person primarily engaged in the licensing of its Proprietary
               Rights.

                    (c)  The Borrower will not, and will not permit any
               Subsidiary to, consolidate or merge with or into any other
               Person.

                    (d)  The Borrower will not, and will not permit any
               Subsidiary to, purchase or otherwise acquire all or substantially
               all of the assets of any Person or all or substantially all of
               the capital stock or other ownership interests of any Person."

          2.14 Capital Expenditures. Section 7.6 of the Credit Agreement is
hereby amended by inserting the following new text at the end thereof:

               "Notwithstanding the foregoing, the Borrower shall not make, or
               commit to make, Consolidated Capital Expenditures, from October
               27, 2000 and until the Expiration Date, in excess of $500,000 in
               the aggregate."

          2.15 Transactions with Affiliates. Section 7.8 of the Credit Agreement
is hereby amended by deleting said section in its entirety and inserting the
following in lieu thereof:

               "7.8   Transactions with Affiliates. The Borrower will not, and
                      ----------------------------
               will not permit any of its Subsidiaries to, directly or
               indirectly, pay any funds to or for the account of, make any
               Investment (whether by acquisition of stock or indebtedness, by
               loan, advance, transfer of property, guarantee or other agreement
               to pay, purchase or service, directly or indirectly, any Debt, or
               otherwise) in, lease, sell, transfer or otherwise dispose of any
               assets, tangible or intangible, to, or participate in, or effect
               any other transaction with, or render to or receive any service
               from, any Affiliate; provided, however, that the foregoing
                                    --------  -------
               provisions of this Section 7.8 shall not prohibit, the Borrower
               or any Subsidiary from making sales to or purchases from any
               Affiliate and, in connection therewith, extending credit or
               making payments, or from making payments for services rendered by
               any Affiliate, or from effecting any other transactions with an
               Affiliate, if such sales or purchases are made or such services
               are rendered, or such other

                                       10
<PAGE>

               transactions are effected, on terms and conditions at least as
               favorable and reasonable to the Borrower or such Subsidiary as
               the terms and conditions which would apply in a similar
               transaction on an arm's length basis with a Person not an
               Affiliate and will not have a material adverse effect on the
               Collateral taken as a whole or the Accounts and Inventory;
               provided further, that, notwithstanding the foregoing or any
               -------- -------
               other provision of this Credit Agreement, from and after October
               27, 2000, the Borrower will not, and will not permit any
               Subsidiary to, directly or indirectly, pay any fees to Apollo or
               a Controlled Account or any Affiliate of Apollo or of a
               Controlled Account, without the consent of the Agent.

                              The foregoing restrictions shall not apply to
               reasonable fees paid to and indemnity provided on behalf of the
               Directors and officers of the Borrower or any of its Subsidiaries
               in the ordinary course of business and consistent with past
               practices."

          2.16 Foreign Subsidiary Support. Section 7.9 of the Credit Agreement
is hereby amended by deleting said section in its entirety and inserting the
following in lieu thereof:

               "7.9      Restrictions on Foreign Subsidiary Support. Except for
                         ------------------------------------------
               open accounts existing as of October 27, 2000, the Borrower will
               not permit to exist any open account sales, transfers by the
               Borrower of goods of any kind, or any other financial support, to
               any Foreign Subsidiary, except the Borrower may, in the ordinary
               course of business and consistent with past practice, in amounts
               similar to those funded historically by the Borrower to such
               entities, fund (i) operating expenses of Calzado Deportivo de
               Reynosa, S.A. on a weekly basis, and (ii) operating expenses of
               Converse Japan, Inc. on a monthly basis."

          2.17 Principal Amount of Revolving Loans. Section 7.12 of the Credit
Agreement is hereby amended by deleting said section in its entirety and
inserting the following in lieu thereof:

               "7.12  Principal Amount of Revolving Loans. The Borrower shall
                      -----------------------------------
               not, on any date on or after the first Amortization Date, have
               Obligations outstanding in excess of the Projected Commitment for
               the most recently preceding Amortization Date (or, if such date
               is an Amortization Date, for such date)."

          2.18 No Acquisition of Real Property. Section 7.13 of the Credit
Agreement is hereby amended by deleting said section in its entirety and
inserting the following in lieu thereof:

                                       11
<PAGE>

               "7.13  No Acquisition of Real Property. From and after October
                      -------------------------------
               27, 2000, the Borrower shall not, and shall not permit any of its
               Subsidiaries to, directly or indirectly, purchase or acquire any
               ownership interest in real property other than the Owned Real
               Property."

          2.19 No Additional Retail Stores. Section 7.14 of the Credit Agreement
is hereby amended by deleting said section in its entirety and inserting the
following in lieu thereof:

               "7.14  No Additional Retail Stores.  The Borrower shall not, and
                      ---------------------------
               shall not permit any of its Subsidiaries to, directly or
               indirectly, open any retail store after October 27, 2000."

          2.20 Bank Accounts.  Section 7.17 of the Credit Agreement is hereby
amended by deleting the text "Schedule D" appearing therein and inserting the
text "Schedule E" in lieu thereof.

          2.21 No Additional Subsidiaries.  Section 7.18 of the Credit Agreement
is hereby amended by deleting said section in its entirety and inserting the
following in lieu thereof:

               "7.18  No Additional Subsidiaries.  From and after October 27,
                      --------------------------
               2000, the Borrower will not, and shall not permit any of its
               Subsidiaries to, directly or indirectly, form or acquire any new
               Subsidiaries, including Foreign Subsidiaries."

          2.22 Interest on Prime Loans.  Section 8.2 of the Credit Agreement is
hereby amended by deleting the text "one percent (1.00%)" appearing therein and
inserting the text "one and one-half percent (1.50%)" in lieu thereof.

          2.23 List of Lenders and Commitment Amounts.  Annex I to the Credit
Agreement is hereby deleted in its entirety and replaced with Annex I attached
hereto.

          2.24 Schedule E.  Schedule E attached hereto is hereby attached to the
Credit Agreement after Schedule D, and the list of schedules appearing in the
Credit Agreement is hereby amended by inserting the following text at the end
thereof:

               "Schedule E    -    Bank Accounts"

          Section 3.  CONDITIONS PRECEDENT.  This Amendment shall be effective
                      --------------------
on the first date upon which all of the following conditions have been
satisfied:

                                       12
<PAGE>

          3.1    Amendment.  Agent shall have received copies of this Amendment
                 ---------
duly executed by Borrower and such Lenders as are required for this Amendment to
be effective in accordance with the terms of the Credit Agreement.

          3.2    Forbearance Agreement. All other conditions precedent to the
                 ---------------------
effectiveness of the Forbearance Agreement shall have been satisfied.

          3.3    Other.  Agent shall have received such other documents,
                 -----
certificates and assurances as it shall reasonably request.

          Section 4.  REAFFIRMATION OF BORROWER. To induce the Agent and the
                      -------------------------
Lenders to enter into this Agreement, the Borrower hereby represents to each of
them as follows as of the date hereof, each of the representations and
warranties contained in Section 8 of the Forbearance Agreement are true and
correct as of the date hereof.

          Section 5.  NO OTHER CHANGES. Except as herein amended or as otherwise
                      ----------------
expressly provided in the Forbearance Agreement, the terms, provisions and
conditions of the Credit Agreement and all other Credit Documents shall remain
unchanged and shall continue in full force and effect.

          Section 6.  COUNTERPARTS. This Amendment may be executed by the
                      ------------
parties hereto in several counterparts, each of which shall be deemed an
original and all of which shall constitute together one and the same document.
Delivery of an executed counterpart of this Amendment by telecopy shall be
effective as an original and shall constitute a representation that the original
shall be delivered to the Agent.

          Section 7.  GOVERNING LAW. THE VALIDITY, INTERPRETATION AND
                      -------------
ENFORCEMENT OF THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
ILLINOIS WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

          Section 8.  HEADINGS DESCRIPTIVE. The headings of the several sections
                      --------------------
and subsections of this Amendment are inserted for convenience only and shall
not in any way affect the meaning or construction of any provision of this
Amendment.

                                       13
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Amendment on
the day and year specified above.

                                         CONVERSE INC.
                                         By: /s/ James E. Lawlor
                                         Name: James E. Lawlor
                                         Title:Senior Vice President and CFO

<PAGE>

                                         BT COMMERCIAL CORPORATION,
                                         as Agent

                                         By:  /s/ William E. Howe
                                         Name: William E. Howe
                                         Title: Vice President

                                         LENDERS:

                                         BT COMMERCIAL CORPORATION

                                         By:  /s/ William E. Howe
                                         Name: William E. Howe
                                         Title: Vice President

                                         GMAC COMMERCIAL CREDIT LLC

                                         By:________________________________
                                         Name:
                                         Title:

                                         LA SALLE BANK N.A.

                                         By:  /s/ Christopher G. Clifford
                                         Name: Christopher G. Clifford
                                         Title: GSVP

                                         BANK OF AMERICA, N.A.

                                         By: Gaye L. Stathis
                                         Name: Gaye L. Stathis
                                         Title: Vice President

                                         MADELEINE LLC

                                         By:________________________________
                                         Name:
                                         Title:

<PAGE>

                                         HELLER FINANCIAL, INC.

                                         By: /s/ Thomas Bukowski
                                         Name: Thomas Bukowski
                                         Title: Senior Vice President

                                         FINOVA CAPITAL CORPORATION

                                         By:________________________________
                                         Name:
                                         Title:

                                    ANNEX I
                                    -------

                        LENDERS AND COMMITMENT AMOUNTS

Name and Address of Lender                   Revolving Credit Commitment
--------------------------                   ---------------------------

<PAGE>

                                  SCHEDULE E

                                 BANK ACCOUNTS
                                 -------------

                                      E-1<PAGE>
                                                                   Exhibit 10.3

                 FOURTH SUPPLEMENT TO NOTE PURCHASE AGREEMENTS
                           AND STANDSTILL AGREEMENT
                           ------------------------

     This FOURTH SUPPLEMENT TO NOTE PURCHASE AGREEMENTS AND STANDSTILL AGREEMENT
(the "Fourth Supplemental Agreement") is made and dated as of October 27, 2000,
by and among Converse Inc. (the "Company"), and Libra Investments, Inc.
("Libra"), Foothill Partners III, L.P. ("Foothill"), DDJ Canadian High Yield
Fund ("DDJ Canadian"), and B III Capital Partners, L.P. ("DDJ Capital") (Libra,
Foothill, DDJ Canadian, and DDJ Capital collectively the "Purchasers" or
individually a "Purchaser").

                                  WITNESSETH:

     WHEREAS, the Company and the Purchasers are parties to several
substantially identical Note Purchase Agreements dated as of September 16, 1998,
pursuant to which the Company issued and sold its 15% senior secured notes, in
two series, in the aggregate principal amount of $28,642,687, as more fully set
forth therein (the "Secured Notes"), which Note Purchase Agreements have been
amended and modified in a Supplement to Note Purchase Agreements dated as of
November 23, 1999, a Second Supplement to Note Purchase Agreements dated as of
May 16, 2000, and a Third Supplement to Note Purchase Agreements dated as of
June 30, 2000 (the Note Purchase Agreements, as amended and modified by the
Supplement, the Second Supplement and the Third Supplement collectively the
"Note Purchase Agreements" or individually a "Note Purchase Agreement"); and

     WHEREAS, the Company is a party to a Credit Agreement among the Company,
the lenders from time to time party thereto (the "Lenders"), and BT Commercial
Corporation as Agent (the "Bank Agent"), dated as of May 21, 1997, as amended
and modified to date and as the same may hereafter be further amended and
modified from time to time (the "Revolving Credit Agreement"); and

     WHEREAS, the Purchasers, BT Commercial Corporation as collateral agent (the
"Collateral Agent"), and the Bank Agent are parties to a Collateral Agency and
Intercreditor Agreement dated as of September 16, 1998 (the "Intercreditor
Agreement"); and

     WHEREAS, on or about May 21, 1997, the Company issued its 7% Convertible
Subordinated Notes due 2004 (the "Subordinated Notes") pursuant to an Indenture
dated as of May 21, 1997 between the Company and First Union National Bank as
Trustee (the "Indenture Trustee"), as amended and modified to date and as the
same may hereafter be further amended and modified from time to time (the
"Convertible Note Indenture"); and

     WHEREAS, the Company has been and continues to be in default under the Note
Purchase Agreements, and by notice dated as of August 21, 2000 (the "August
Notice of

<PAGE>

Actionable Default") the Purchasers have given notice to the Collateral Agent
under Sections 5.1 and 5.3 of the Intercreditor Agreement preliminary to the
exercise by the Collateral Agent of remedies under the Note Purchase Agreement
and the Ancillary Documents; and

     WHEREAS, the Company and the Purchasers desire to further supplement the
Note Purchase Agreements and desire to agree to forbearance with respect to the
exercise of remedies under the Note Purchase Agreements and the Ancillary
Documents, as more fully set forth herein.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained, and for other good and valuable consideration, the adequacy
and sufficiency of which are hereby acknowledged, and on and subject to the
terms and conditions hereof, the parties agree as follows:

     SECTION 1.  DEFINITIONS.  Unless otherwise defined herein, all capitalized
                 -----------
terms used in this Fourth Supplemental Agreement shall have the respective
meanings assigned to such terms in the Note Purchase Agreements.

     SECTION 2.  CERTIFICATIONS OF PURCHASERS.  The Purchasers severally
                 ----------------------------
represent and warrant as follows:

     (a) Libra.  Libra is (i) the purchaser and remains the holder of that
         -----
Series A Secured Note in the original principal amount of $4,142,931 and (ii)
the party in interest as "Purchaser" under the related Supplemented Note
Purchase Agreement, and in such capacity Libra is authorized to extend consents,
waivers, and amendments with respect to its Supplemented Note Purchase Agreement
as set forth herein.

     (b) Foothill.  Foothill is (i) the purchaser and remains the holder of that
         --------
Series A Secured Note in the original principal amount of $10,357,328 and (ii)
the party in interest as "Purchaser" under the related Supplemented Note
Purchase Agreement, and in such capacity Foothill is authorized to extend
consents, waivers, and amendments with respect to its Supplemented Note Purchase
Agreement as set forth herein.

     (c) DDJ Canadian.  DDJ Canadian is (i) the purchaser and remains the holder
         ------------
of that Series A Secured Note in the original principal amount of $4,045,408 and
that Series B Secured Note in the original principal amount of $1,478,400 and
(ii) the party in interest as "Purchaser" under the related Supplemented Note
Purchase Agreement, and in such capacity DDJ Canadian is authorized to extend
consents, waivers and amendments with respect to its Supplemented Note Purchase
Agreement as set forth herein.

     (d) DDJ Capital.  DDJ Capital is (i) the purchaser and remains the holder
         -----------
of that Series A Secured Note in the original principal amount of $6,311,920 and
that Series B Secured Note in the original principal amount of $2,306,700 and
(ii) the party in interest as "Purchaser" under the related Supplemented Note
Purchase Agreement, and in

                                       2
<PAGE>

such capacity DDJ Capital is authorized to extend consents, waivers and
amendments with respect to its Supplemented Note Purchase Agreement as set forth
herein.

     The Purchasers further represent and warrant that, as of the date of this
Fourth Supplemental Agreement, Libra, Foothill, DDJ Canadian, and DDJ Capital
collectively own 100% of the principal outstanding in respect of the Secured
Notes, and therefore constitute all of the Purchasers, as well as the "Required
Holders" as such term is defined in the Intercreditor Agreement.

          SECTION 3.  ACKNOWLEDGMENT OF COMPANY. The Company acknowledges, as of
                      -------------------------
the date of this Fourth Supplemental Agreement, the following Defaults or Events
of Default under the Note Purchase Agreements:

          (a)  Failure to pay the principal balance of the Series A Secured
     Notes and Series B Secured Notes on the Initial Maturity Date, which
     failure is continuing (the "Principal Default").

          (b)  Failure to pay interest due and payable to date with respect to
     the Series A Secured Notes and Series B Notes, which failure is continuing
     (the "Interest Default").

          (c)  Failure to maintain the minimum EBITDA as required pursuant to
     Section 9.7 of the Note Purchase Agreements, which failure is continuing
     (the "EBITDA Default"), failure to maintain the required reserve amount of
     $5,750,000 pursuant to Section 9.15 of the Note Purchase Agreements, which
     failure is continuing (the "Reserve Default"), and failure to furnish
     financial information, reports and notices pursuant to subsections (a)(i),
     (a)(ii), (a)(iii) and (c) of Section 8.1 of the Note Purchase Agreements,
     which failure is continuing (the "Financial Information Defaults").

          (d)  Default under the Credit Agreement, which default is continuing
     (the "Credit Agreement Cross Default").

          (e)  Default under the Convertible Note Indenture, which default is
     continuing (the "Indenture Cross Default").

The Credit Agreement Cross Default and the Indenture Cross Default, together
with such additional defaults as may have occurred or as may hereafter occur
under the Credit Agreement or the Convertible Note Indenture, and together with
such Defaults or Events of Default as may have occurred or as may hereafter
occur under Section 10.1(f) of the Note Purchase Agreements, are hereinafter
sometimes collectively referred to as the "Cross Defaults".  The Cross Defaults
and the Principal Default are hereinafter sometimes collectively referred to as
the "Continuing Defaults".  The Principal Default and the Interest Default
constitute "Actionable Payment Defaults" as such term is defined under the
Intercreditor Agreement.  The EBITDA Default, the Reserve Default, the

                                       3
<PAGE>

Financial Information Defaults and the Cross Defaults constitute "Actionable
Other Defaults" as such term is defined under the Intercreditor Agreement.

          SECTION 4.  CONDITIONS.  The effectiveness of the amendments and
                      ----------
modification, waivers, and forbearance set forth herein is subject to
satisfaction, on the date of this Fourth Supplemental Agreement, of the
following conditions:

          (a)  The Company shall pay the Purchasers all interest accrued to date
     and to accrue to and including October 31, 2000 under the Secured Notes,
     calculated at the pre-default and pre-maturity rate of interest
     notwithstanding the Defaults and Events of Default existing as of and
     continuing after the date of this Fourth Supplemental Agreement.

          (b)  The Company shall pay the Purchasers a supplement fee in the
     aggregate sum of $71,607, to be distributed among the Purchasers such that
     the amount remitted to each such Purchaser as its share of the supplement
     fee shall be determined by multiplying $71,607 by the percentage calculated
     by dividing the principal amount of the Secured Notes held by such
     Purchaser as of the date hereof by the aggregate principal amount of the
     Secured Notes held by all the Purchasers as of the date hereof.

          SECTION 5.  AMENDMENT AND WAIVER.  The Purchasers and the Company
                      --------------------
agree to amend and modify and waive the terms and conditions of the Note
Purchase Agreements, as of the date of this Fourth Supplemental Agreement, as
follows:

          (a) From and after the date hereof and upon satisfaction of the
     conditions set forth in Section 4 of this Fourth Supplemental Agreement,
     (i) the EBITDA Default is hereby waived by the Purchasers, and compliance
     with Section 9.7 of the Note Purchase Agreements is waived by the
     Purchasers until (but only until) the Forbearance Termination Date, (ii)
     the Reserve Default is hereby waived by the Purchasers, and the provisions
     of Section 9.15 of the Note Purchase Agreements are deleted in their
     entirety, and (iii) the Financial Information Defaults are hereby waived by
     the Purchasers, and compliance with Section 8.1(a)(iii) of the Note
     Purchase Agreements with respect to any statement concerning the Continuing
     Defaults and the EBITDA Default is hereby waived by the Purchasers until
     (but only until) the Forbearance Termination Date.

          (b) From and after the date hereof and upon satisfaction of the
     conditions set forth in Section 4 of this Fourth Supplemental Agreement,
     the Interest Defaults are hereby waived by the Purchasers, and until the
     Forbearance Termination Date (as determined pursuant to Section 6 of this
     Fourth Supplemental Agreement) interest accruing on and after November 1,
     2000 under the Secured Notes shall be calculated at the pre-maturity and
     pre-default rate of interest notwithstanding the Defaults and Events of
     Default existing as of and continuing after the date of this Fourth
     Supplemental Agreement, and such interest shall be paid, in arrears,
     monthly instead of quarterly, on the last day of each calendar month or, if
     sooner, on the Forbearance Termination Date.

                                       4
<PAGE>

          (c) The provisions of Section 8.8 of the Note Purchase Agreements are
     deleted in their entirety and hereby replaced with the following
     provisions:

          The Company (i) except as otherwise permitted pursuant to Section 9.5,
          shall maintain its corporate existence, shall maintain in full force
          and effect all material licenses, bonds, franchise, leases,
          qualifications to do business, trademarks, patents, contracts and
          other rights necessary for the conduct of the businesses from time to
          time operated by the Company, (ii) shall continue in, and limit its
          operations to, the same general lines of business as that presently
          conducted by it and reasonable extensions thereof, except that the
          Company may discontinue its North American manufacturing operations in
          connection with the conversion to a primary business focus on
          licensing and brand management, and (iii) shall comply with all
          applicable laws and regulations of any federal, state or local
          governmental authority, except in each case when noncompliance with
          the foregoing would not, in the aggregate, have a Material Adverse
          Effect.

          (d) The provisions of Section 9.5 of the Note Purchase Agreements are
     hereby amended by deleting the parenthetical phrase at the end of
     subsection (b) and replacing the same with the following parenthetical
     phrase:  "(so long as the Company shall continue to be operated in the same
     general types of licensing and branding businesses as now conducted and
     reasonable extensions thereof, in accordance with Section 8.8)".

          SECTION 6.  FORBEARANCE. Subject to the conditions set forth in
                      -----------
Section 4 hereof, from and after the date hereof and until the Forbearance
Termination Date, the Purchasers agree as follows:

          (a)  to forbear from exercising remedies under or in connection with
     the Note Purchase Agreements,

          (b)  to forbear from exercising remedies, or rights preliminary or
     prerequisite to remedies, under or in connection with the Intercreditor
     Agreement and the Ancillary Documents, including but not limited to any
     right to (i) give any "Notice of Actionable Default" (as such term is
     defined under the Intercreditor Agreement), (ii) give or direct the giving
     of notices to account debtors, or (iii) request or direct any exercise of
     remedies with respect to the Collateral under the Intercreditor Agreement
     by reason of any Actionable Payment Default or Actionable Other Default,
     and

          (c)  to advise the Collateral Agent to take no action under or in
     connection with the Intercreditor Agreement or the Ancillary Documents by
     reason of any Actionable Payment Default or Actionable Other Default.

The "Forbearance Termination Date" shall be the earliest to occur of: (i)
January 31, 2001; (ii) an Event of Default other than the Continuing Defaults
under the Note Purchase Agreements, as amended and modified by this Fourth
Supplemental Agreement; (iii) declaration of acceleration,

                                       5
<PAGE>

by the lenders under the Credit Agreement or the Bank Agent (as such term is
defined in the Intercreditor Agreement), of all of the obligations owed to the
lenders under the Credit Agreement by reason of an event of default thereunder;
(iv) refusal by the lenders under the Credit Agreement or the Bank Agent to make
loans and advances requested by the Company for more than five (5) consecutive
Business Days as a result of an event of default under the Credit Agreement; and
(v) or other exercise by such lenders or the Bank Agent of any material rights
and remedies with respect to foreclosure or realization on the Collateral.

          From and after the Forbearance Termination Date, however, the
Purchasers shall be free to proceed to enforce any or all of rights and remedies
that the Purchasers may have under or in respect of the Note Purchase
Agreements, as amended and modified by the Fourth Supplemental Agreement, or
under or in respect of the Ancillary Documents or the Intercreditor Agreement.

          SECTION 7.  EXPENSES.  The Company agrees to pay Purchasers (i) any
                      --------
and all reasonable out-of-pocket costs or expenses (including reasonable legal
fees and disbursements of counsel to the Purchasers) incurred as a result of the
negotiation and documentation of this Fourth Supplemental Agreement and (ii)
from time to time any and all reasonable out-of-pocket costs or expenses
(including reasonable legal fees and disbursements) hereafter incurred or
sustained by the Purchasers in connection with the preservation of or
enforcement of their rights under the Note Purchase Agreements or in respect of
Company's other obligations to the Purchasers; and in connection with such
agreements the Company shall remit to the Purchasers on the date hereof payment
of an outstanding invoice for legal fees and disbursements dated October 17,
2000 in the amount of $8,923.94 and an advance (subject to refund to the Company
to the extent not hereafter applied) of $25,000 in respect of such out-of-pocket
costs and expenses hereafter incurred.  The Company agrees to pay future
invoices for legal fees and disbursements within ten (10) days of receipt by the
Company.

          SECTION 8.  OBLIGATIONS IN FULL FORCE AND EFFECT; RECITALS. Except as
                      ----------------------------------------------
herein amended and modified or otherwise herein expressly provided (by consent
or waiver), the Note Purchase Agreements, as supplemented by this Fourth
Supplemental Agreement, and the Ancillary Documents shall remain in full force
and effect. All of the recitals to this Fourth Supplemental Agreement are hereby
affirmed by each of the parties hereto as true statements of fact and hereby by
reference are made part of this Fourth Supplemental Agreement as if fully set
out herein.

          SECTION 9.  COUNTERPARTS. This Fourth Supplemental Agreement may be
                      ------------
executed in counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same documents.

                                       6
<PAGE>

       IN WITNESS WHEREOF, the parties hereto have executed this Fourth
Supplemental Agreement as of the day and year specified above.

COMPANY:                                        PURCHASERS:

CONVERSE INC.                                   LIBRA INVESTMENTS, INC.

By:/s/ James E. Lawlor                          By:/s/ Jeffrey D. Benjamin
                                                   -----------------------
   Name:                                           Name:________________________
   Title: Senior Vice President and CFO            Title:_______________________
          -----------------------------
                                                FOOTHHILL PARTNERS III, L.P.

                                                By:_____________________________
                                                   Name:________________________
                                                   Title:_______________________

                                                DDJ CANADIAN HIGH YIELD FUND
                                                By: DDJ Capital Management, LLC,
                                                    its attorney-in-fact

                                                By: /s/Judy K. Mencher
                                                    ----------------------------
                                                   Name:________________________
                                                   Title:_______________________

                                                B III CAPITAL PARTNERS, L.P.
                                                By:  DDJ Capital III, LLC,
                                                     its General Partner
                                                     By: DDJ Capital Management,
                                                         LLC, Manager

                                                By:/s/ Judy K. Mencher
                                                       ---------------
                                                   Name:________________________
                                                   Title:_______________________

                                       7

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