Document:

CREDIT AGREEMENT

                            DATED AS OF JUNE 15, 2001

                                 BY AND BETWEEN

                            LACROSSE FOOTWEAR, INC.,

                                   AS BORROWER

                                       AND

                               FIRSTAR BANK, N.A.

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                                TABLE OF CONTENTS
                                                                            Page
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ARTICLE 1         DEFINITIONS..................................................1

     1.1      Definitions......................................................1

     1.2      Other Definitional Provisions...................................13

     1.3      Accounting Terms and Determinations.............................14

ARTICLE 2         THE TERM LOAN...............................................14

     2.1      Term Loan.......................................................14

ARTICLE 3         OTHER PROVISIONS RELATING TO CREDIT FACILITIES..............15

     3.1      Default Rate....................................................15

     3.2      Extension and Conversion........................................15

     3.3      Prepayments.....................................................16

     3.4      [Reserved]......................................................16

     3.5      Capital Adequacy................................................16

     3.6      Inability To Determine Interest Rate............................16

     3.7      Illegality......................................................17

     3.8      Requirements of Law.............................................17

     3.9      Taxes...........................................................18

     3.10     Indemnity.......................................................19

     3.11     Place and Manner of Payments....................................19

ARTICLE 4         CONDITIONS..................................................20

     4.1      Conditions to Closing Date......................................20

ARTICLE 5         REPRESENTATIONS AND WARRANTIES..............................21

     5.1      Financial Statements............................................21

     5.2      Ownership of Properties; Liens and Encumbrances.................21

     5.3      Corporate Existence; Compliance with Law........................22

     5.4      Corporate Power; Authorization; Enforceable Obligations.........22

     5.5      No Legal Bar; No Default........................................22

     5.6      No Material Litigation..........................................23

     5.7      Investment Company Act..........................................23

     5.8      Federal Regulations.............................................23

     5.9      ERISA...........................................................23

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     5.10     Environmental Matters...........................................23

     5.11     Use of Proceeds.................................................24

     5.12     Subsidiaries....................................................24

     5.13     Taxes...........................................................24

     5.14     Solvency........................................................25

     5.15     Accuracy of Information.........................................25

ARTICLE 6         AFFIRMATIVE COVENANTS.......................................25

     6.1      Financial Statements............................................25

     6.2      Payment of Obligations..........................................26

     6.3      Conduct of Business and Maintenance of Existence................26

     6.4      Maintenance of Property; Insurance..............................26

     6.5      Inspection of Property; Books and Records; Discussions..........27

     6.6      Notices.........................................................27

     6.7      Environmental Laws..............................................28

ARTICLE 7         NEGATIVE COVENANTS..........................................28

     7.1      Indebtedness....................................................28

     7.2      Liens...........................................................29

     7.3      Nature of Business..............................................29

     7.4      Consolidation, Merger or Sale of Assets, etc....................29

     7.5      Advances, Investments and Loans.................................30

     7.6      Guarantee Obligations...........................................30

     7.7      Transactions with Affiliates....................................30

     7.8      Ownership of Subsidiaries.......................................30

     7.9      Fiscal Year.....................................................30

     7.10     Prepayments of Indebtedness, etc................................31

     7.11     Dividends.......................................................31

     7.12     Financial Covenants.............................................31

ARTICLE 8         EVENTS OF DEFAULT...........................................32

ARTICLE 9         MISCELLANEOUS...............................................34

     9.1      Amendments and Waivers..........................................34

     9.2      Notices.........................................................35

     9.3      No Waiver; Cumulative Remedies..................................36

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     9.4      Survival of Representations and Warranties......................36

     9.5      Payment of Expenses and Taxes...................................36

     9.6      Successors and Assigns..........................................37

     9.7      Set-off.........................................................37

     9.8      Confidentiality.................................................37

     9.9      Table of Contents and Section Headings..........................38

     9.10     Counterparts....................................................38

     9.11     Severability....................................................38

     9.12     Integration.....................................................38

     9.13     Governing Law...................................................38

     9.14     Consent to Jurisdiction and Venue...............................38

     9.15     Acknowledgments.................................................38

     9.16     Waivers of Jury Trial...........................................39

     9.17     Limitation of Liability.........................................39

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                                CREDIT AGREEMENT

     THIS CREDIT AGREEMENT, dated as of June 15, 2001 (the "Credit Agreement"),
is by and between LACROSSE FOOTWEAR, INC., a Wisconsin corporation (the
"Borrower"), and FIRSTAR BANK, N.A., (the "Lender").

                                   ARTICLE 1

                                   DEFINITIONS

     1.1 Definitions. As used in this Credit Agreement, the following terms
shall have the meanings specified below unless the context otherwise requires:

          "Affiliate" means, with respect to any Person, any other Person (i)
     directly or indirectly controlling or controlled by or under direct or
     indirect common control with such Person or (ii) directly or indirectly
     owning or holding twenty percent (20%) or more of the equity interest in
     such Person. For purposes of this definition, "control" when used with
     respect to any Person means the power to direct the management and policies
     of such Person, directly or indirectly, whether through the ownership of
     voting securities, by contract or otherwise; and the terms "controlling"
     and "controlled" have meanings correlative to the foregoing.

          "Assignment of Life Insurance" means the Assignment of Life Insurance
     of even date herewith executed by the Borrower with respect to the
     following life insurance policies owned by the Borrower: Northwestern
     Mutual Life Insurance policies held on the lives of Frederick R. Funk
     (policy number 4,670,500), Albert P. Funk, Jr. (policy number 6,285,692),
     Frank J. Uhler, Jr. (policy number 7,672,039); Amerus Life Insurance
     Company policy held on the life of Patrick K. Gantert (policy number
     2,685,993); and Equitable Variable Life Insurance Company policies held on
     the lives of Frank J. Uhler, Jr. (policy numbers 38,215,413 and 38,215,411)
     and Patrick K. Gantert (policy number AA40,249,839), and any other
     assignment of life insurance executed by any Person, at any time or from
     time to time, in favor of the Lender to secure the Obligations.

          "Borrower" is defined in the Preamble.

          "Borrowing Date" means in respect of the Term Loan, the date such Term
     Loan is made.

          "Business" is defined in Section 5.10(b).

          "Business Day" means a day other than a Saturday, Sunday or other day
     on which commercial banks in Wisconsin are closed, except that, when used
     in connection with a rate determination, borrowing or payment in respect of
     a Eurodollar Loan, such day shall also be a day on which dealings between
     banks are carried on in U.S. dollar deposits in London, England and Nassau,
     Bahamas.

          "Calculation Date" is defined in the definition of Interbank Offered
     Rate.

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          "Capital Expenditures" means, with respect to any Person, all
     expenditures (by the expenditure of cash or the incurrence of Indebtedness)
     by such Person during any measuring period for any fixed assets or
     improvements or for replacements, substitutions or additions thereto that
     have a useful life of more than one year and that are required to be
     capitalized under GAAP.

          "Capital Lease" means any lease of property, real or personal, the
     obligations with respect to which are required to be capitalized on a
     balance sheet of the lessee in accordance with GAAP.

          "Capital Lease Obligations" means the capital lease obligations
     relating to a Capital Lease determined in accordance with GAAP.

          "Closing Date" means the date hereof.

          "Code" means the Internal Revenue Code of 1986, as amended from time
     to time.

          "Commonly Controlled Entity" means an entity, whether or not
     incorporated, which is under common control with the Borrower within the
     meaning of Section 4001 of ERISA or is part of a group which includes the
     Borrower and which is treated as a single employer under Section 414 of the
     Code.

          "Consolidated Subsidiaries" means Subsidiaries whose financial
     statements are consolidated with those of the Borrower in accordance with
     GAAP.

          "Consolidated Tangible Assets" at any date of determination means the
     total amount of all assets of the Borrower and its Subsidiaries as of the
     end of the month immediately preceding the date on which such determination
     is made, determined in accordance with GAAP, less all Intangible Assets.

          "Contractual Obligation" means, as to any Person, any provision of any
     security issued by such Person or of any agreement, instrument or
     undertaking to which such Person is a party or by which it or any of its
     property is bound.

          "Credit Documents" means this Credit Agreement, the Assignment of Life
     Insurance, the Note, the Shareholder Guaranty, the Subsidiary Guaranty, the
     Mortgage, the Parent Security Agreement, the Subsidiary Security Agreement,
     and all other related agreements and documents issued or delivered
     hereunder or thereunder or pursuant hereto or thereto.

          "Danner" means Danner Shoe Manufacturing Co., a Wisconsin corporation
     and a wholly-owned Subsidiary of the Borrower.

          "Default" means any event, act or condition which with notice or lapse
     of time, or both, would constitute an Event of Default.

          "Dollars" and "$" means dollars in lawful currency of the United
     States of America.

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          "Domestic Lending Office" means the office or branch of the Lender
     identified in Section 9.2, or such other office or branch as the Lender may
     identify by written notice to the Borrower.

          "Environmental Laws" means any and all applicable foreign, federal,
     state, local or municipal laws, rules, orders, regulations, statutes,
     ordinances, codes, decrees, requirements of any Governmental Authority (or
     other Requirement of Law including common law) regulating, relating to or
     imposing liability or standards of conduct concerning protection of human
     health or the environment, as now or may at any time be in effect during
     the term of this Credit Agreement.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended from time to time, and the regulations promulgated and the rulings
     issued thereunder.

          "Eurodollar Lending Office" means the office or branch of the Lender
     identified in Section 9.2, or such other office or branch as the Lender may
     identify by written notice to the Borrower.

          "Eurodollar Loan" means any portion of the Term Loan bearing interest
     at a rate determined by reference to the Eurodollar Rate.

          "Eurodollar Rate" means, for the Interest Period for each Eurodollar
     Loan comprising part of the same borrowing (including conversions,
     extensions and renewals), a per annum interest rate determined pursuant to
     the following formula:

          Eurodollar Rate =     Interbank Offered Rate
                           ---------------------------------
                           1 - Eurodollar Reserve Percentage

          "Eurodollar Reserve Percentage" means for any day, that percentage
     (expressed as a decimal) which is in effect from time to time under
     Regulation D of the Board of Governors of the Federal Reserve System (or
     any successor), as such regulation may be amended from time to time or any
     successor regulation, as the maximum reserve requirement (including,
     without limitation, any basic, supplemental, emergency, special, or
     marginal reserves) applicable with respect to Eurocurrency liabilities as
     that term is defined in Regulation D or against any other category of
     liabilities that includes deposits by reference to which the interest rate
     of Eurodollar Loans is determined, whether or not the Lender has any
     Eurocurrency liabilities subject to such reserve requirement at that time.
     Eurodollar Loans shall be deemed to constitute Eurocurrency liabilities and
     as such shall be deemed subject to reserve requirements without benefit of
     credits for proration, exceptions or offsets that may be available from
     time to time to the Lender. The Eurodollar Rate shall be adjusted
     automatically on and as of the effective date of any change in the
     Eurodollar Reserve Percentage.

          "Event of Default" is defined in Section 8.

          "Federal Funds Rate" means, for any day, the rate of interest per
     annum (rounded upwards, if necessary, to the nearest whole multiple of
     1/100 of 1%) equal to the

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     weighted average of the rates on overnight federal funds transactions with
     members of the Federal Reserve System arranged by federal funds brokers on
     such day, as published by the Federal Reserve Bank of New York on the
     Business Day next succeeding such day, provided that (A) if such day is not
     a Business Day, the Federal Funds Rate for such day shall be such rate on
     such transactions on the next preceding Business Day and (B) if no such
     rate is so published on such next succeeding Business Day, the Federal
     Funds Rate for such day shall be the average rate quoted to the Lender on
     such day on such transactions as determined by the Lender.

          "GAAP" means generally accepted accounting principles in effect in the
     United States of America applied on a consistent basis.

          "GE Loan Agreement" means that certain Credit Agreement dated as of
     June 13, 2001 among the Borrower, Danner, the other credit parties
     signatory thereto, the lenders signatory thereto and General Electric
     Capital Corporation, as agent, as the same may be modified or amended from
     time to time.

          "Governmental Authority" means any nation or government, any state or
     other political subdivision thereof and any entity exercising executive,
     legislative, judicial, regulatory or administrative functions of or
     pertaining to government.

          "Guarantee Obligation" means, as to any Person (the "guaranteeing
     person"), any obligation of (a) the guaranteeing person or (b) another
     Person (including, without limitation, any bank under any letter of credit)
     to induce the creation of which the guaranteeing person has issued a
     reimbursement, counterindemnity or similar obligation, in either case
     guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends
     or other obligations (the "primary obligations") of any other third Person
     (the "primary obligor") in any manner, whether directly or indirectly,
     including, without limitation, any obligation of the guaranteeing person,
     whether or not contingent, (i) to purchase any such primary obligation or
     any property constituting direct or indirect security therefor, (ii) to
     advance or supply funds (1) for the purchase or payment of any such primary
     obligation or (2) to maintain working capital or equity capital of the
     primary obligor or otherwise to maintain the net worth or solvency of the
     primary obligor, (iii) to purchase property, securities or services
     primarily for the purpose of assuring the owner of any such primary
     obligation of the ability of the primary obligor to make payment of such
     primary obligation or (iv) otherwise to assure or hold harmless the owner
     of any such primary obligation against loss in respect thereof; provided,
     however, that the term Guarantee Obligation shall not include endorsements
     of instruments for deposit or collection in the ordinary course of
     business. The amount of any Guarantee Obligation of any guaranteeing person
     shall be deemed to be the lower of (a) an amount equal to the stated or
     determinable amount of the primary obligation in respect of which such
     Guarantee Obligation is made and (b) the maximum amount for which such
     guaranteeing person may be liable pursuant to the terms of the instrument
     embodying such Guarantee Obligation, unless such primary obligation and the
     maximum amount for which such guaranteeing person may be liable are not
     stated or determinable, in which case the amount of such Guarantee
     Obligation shall be such guaranteeing person's maximum

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     reasonably anticipated liability in respect thereof as determined by the
     Borrower in good faith.

          "Indebtedness" means, with respect of any Person: (a) indebtedness for
     borrowed money; (b) indebtedness for the deferred purchase price of
     property or services for which the Person is liable, contingently or
     otherwise, as obligor, guarantor or otherwise; (c) obligations which are
     evidenced by notes, acceptances or other instruments; (d) Capital Lease
     Obligations in respect of equipment; and (e) any unfunded obligation of the
     Person to any Plan.

          "Indemnified Liabilities" is defined in Section 9.5.

          "Insolvency" means with respect to any Multiemployer Plan, the
     condition that such Plan is insolvent within the meaning of such term as
     used in Section 4245 of ERISA.

          "Insolvent" means pertaining to a condition of Insolvency.

          "Intangible Assets" means any goodwill, patents, trademarks, trade
     names, copyrights, operating rights, organizational or development
     expenses, noncompetition agreements, investments in unconsolidated
     Subsidiaries, loan placement fees, unamortized debt discount or expense,
     unamortized deferred charges, and other assets properly classified as
     intangible assets in accordance with GAAP.

          "Interbank Offered Rate" means, with respect to any Eurodollar Loan
     for the Interest Period applicable thereto, the per annum rate of interest
     determined by the Lender (each such determination to be conclusive and
     binding absent manifest error) to be the average (rounded up, if necessary,
     to the nearest one-sixteenth (1/16) of one percent) of the offered rates
     for deposits in U.S. dollars for the applicable Interest Period which
     appear on the Reuters Screen LIBOR Page (or such other page on which the
     appropriate information may be displayed), on the electronic communications
     terminals in the Lender's money center as of 11:00 a.m. (London time) two
     Business Days prior to the first day of such Interest Period (the
     "Calculation Date"), except as provided below. If fewer than two offered
     rates appear for the applicable Interest Period or if the appropriate
     screen is not accessible as of such time, the term "Interbank Offered Rate"
     shall mean the per annum rate of interest determined by the Lender (each
     such determination to be conclusive and binding absent manifest error) to
     be the average (rounded up, if necessary, to the nearest one-sixteenth
     (1/16) of one percent) as the effective rate at which deposits in
     immediately available funds in Dollars are being, have been, or would be
     offered or quoted by major banks to the Lender in the applicable interbank
     market for Eurodollar deposits at 11:00 a.m. (Milwaukee, Wisconsin) on the
     Business Day which is the second Business Day immediately preceding the
     first day of such Interest Period, for a term comparable to such Interest
     Period and in the amount of the requested Eurodollar Loan. If no such
     offers or quotes are generally available for such amount, then the
     provisions of Section 3.6 shall apply.

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          "Intercreditor Agreement" means that certain Intercreditor Agreement
     by and between the Lender and General Electric Capital Corporation, as
     Agent, substantially in the form of Exhibit A attached hereto, as the same
     may be modified or amended from time to time.

          "Interest Payment Date" means (a) as to any Prime Rate Loan, the last
     day of each month and the Term Termination Date, as applicable and (b) as
     to any Eurodollar Loan, the last day of the applicable Interest Period.
     Whenever any Interest Payment Date shall be stated to be due on a day which
     is not a Business Day, the due date thereof shall be extended to the next
     succeeding Business Day (subject to accrual of interest and Fees for the
     period of such extension), except that in the case of Eurodollar Loans, if
     the extension would cause the payment to be made in the next following
     calendar month, then such payment shall instead be made on the next
     preceding Business Day as provided in Section 3.11.

          "Interest Period" means with respect to any Eurodollar Loan,

               (i) initially, the period commencing on the Borrowing Date or
          conversion date, as the case may be, with respect to such Eurodollar
          Loan and ending one, two or three months thereafter, as selected by
          the Borrower in the notice of borrowing or notice of conversion given
          with respect thereto; and

               (ii) thereafter, each period commencing on the last day of the
          immediately preceding Interest Period applicable to such Eurodollar
          Loan and ending one, two or three months thereafter, as selected by
          the Borrower by irrevocable notice to the Lender not less than three
          Business Days prior to the last day of the then current Interest
          Period with respect thereto;

     provided that the foregoing provisions are subject to the following:

                    (A) if any Interest Period pertaining to a Eurodollar Loan
               would otherwise end on a day that is not a Business Day, such
               Interest Period shall be extended to the next succeeding Business
               Day unless the result of such extension would be to carry such
               Interest Period into another calendar month in which event such
               Interest Period shall end on the immediately preceding Business
               Day;

                    (B) any Interest Period pertaining to a Eurodollar Loan that
               begins on the last Business Day of a calendar month (or on a day
               for which there is no numerically corresponding day in the
               calendar month at the end of such Interest Period) shall end on
               the last Business Day of the relevant calendar month;

                    (C) if the Borrower shall fail to give notice as provided
               above, the Borrower shall be deemed to have selected a Prime Rate
               Loan to replace the affected Eurodollar Loan;

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                    (D) with regard to the Term Loan, no Interest Period shall
               extend beyond any principal amortization payment date unless the
               portion of the Term Loan consisting of Prime Rate Loans together
               with the portion of the Term Loan consisting of Eurodollar Loans
               with Interest Periods expiring prior to or concurrently with the
               date such principal amortization payment is due, is at least
               equal to the amount of such principal amortization payment due on
               such date; and

                    (E) no more than three (3) Eurodollar Loans may be in effect
               at any time. For purposes hereof, Eurodollar Loans with different
               Interest Periods shall be considered as separate Eurodollar
               Loans, even if they shall begin on the same date and have the
               same duration, although borrowings, extensions and conversions
               may, in accordance with the provisions hereof, be combined at the
               end of existing Interest Periods to constitute a new Eurodollar
               Loan with a single Interest Period.

          "Lender" is defined in the Preamble.

          "Lien" means any mortgage, pledge, hypothecation, assignment, security
     interest, encumbrance, lien (statutory or otherwise), priority or charge of
     any kind including any agreement to give any of the foregoing, any
     conditional sale or other title retention agreement, any financing or
     similar statement or notice filed under the Uniform Commercial Code as
     adopted and in effect in the relevant jurisdiction (or other similar
     recording or notice statute, and any lease in the nature thereof), except a
     filing for precautionary purposes made with respect to a true lease or
     other true bailment.

          "Material Adverse Effect" means a material adverse effect on (a) the
     business, operations, property or condition (financial or otherwise) of the
     Borrower and its Subsidiaries taken as a whole, (b) the ability of the
     Borrower to perform its obligations, when such obligations are required to
     be performed, under this Credit Agreement or any of the other Credit
     Documents or (c) the validity or enforceability of this Credit Agreement,
     the Note or any of the other Credit Documents or the rights or remedies of
     the Lender hereunder or thereunder.

          "Materials of Environmental Concern" means any gasoline or petroleum
     (including crude oil or any fraction thereof) or petroleum products or any
     hazardous or toxic substances, materials or wastes, defined or regulated as
     such in or under any Environmental Law, including, without limitation,
     asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

          "Mortgage" means collectively, those certain Real Estate Mortgages by
     and between and the Borrower and the Lender substantially in the form of
     Exhibit B attached hereto, as the same may be modified or amended from time
     to time.

          "Multiemployer Plan" means a Plan which is a multiemployer plan as
     defined in Section 4001(a)(3) of ERISA.

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          "Net Proceeds" means the gross cash proceeds including cash by way of
     deferred payment pursuant to a promissory note, receivable or otherwise,
     (but only as and when received) received from the sale, lease, conveyance,
     disposition or other transfer of assets, or from a Recovery Event or from
     the sale, issuance or placement of equity securities, Indebtedness for
     borrowed money or Subordinated Debt to or from a Person other than the
     Borrower, net of (i) transaction costs payable to third parties, (ii) the
     estimated taxes payable with respect to such proceeds (including, without
     duplication, withholding taxes), (iii) Indebtedness (other than
     Indebtedness owed to the Lender pursuant to the Credit Documents) which is
     secured by the assets which are the subject of such event to the extent
     such Indebtedness is paid with a portion of the proceeds therefrom, and
     (iv) any and all cash costs which may occur as a result of discontinuing
     operations, shut-downs or otherwise resulting from, the disposition of such
     assets.

          "Net Worth" means, with respect to any Person as of any date of
     determination, the book value of the assets of such Person, minus the sum
     of (a) reserves applicable thereto, and (b) all of such Person's
     liabilities on a consolidated basis (including accrued and deferred income
     taxes), all as determined in accordance with GAAP.

          "Non-Excluded Taxes" is defined in Section 3.9.

          "Note" means the Term Note.

          "Notice of Extension/Conversion" means the written notice of extension
     or conversion as referenced and defined in Section 3.2.

          "Obligations" means, without duplication, all of the obligations of
     the Borrower to the Lender (including the obligations to pay principal of
     and interest on the Term Loan, and to pay certain expenses and the
     obligations arising in connection with various indemnities) whenever
     arising, under this Credit Agreement, the Note or any other of the Credit
     Documents to which the Borrower is a party.

          "Parent Security Agreement" means that certain Security Agreement by
     and between the Borrower and the Lender substantially in the form of
     Exhibit C attached hereto, as the same may be modified or amended from time
     to time.

          "PBGC" means the Pension Benefit Guaranty Corporation established
     under ERISA, and any successor thereto.

          "Permitted Guarantee Obligations" means (i) Guarantee Obligations of
     the Borrower and its Subsidiaries relating to Indebtedness of the Borrower
     or a Subsidiary otherwise permitted under Section 7.1, (ii) Guarantee
     Obligations of the Borrower and its Subsidiaries relating to obligations of
     their customers under third-party wholesale/retail finance arrangements,
     consistent with past practices of the Borrower, and (iii) Guarantee
     Obligations of the Borrower and its Subsidiaries relating to performance
     bonds issued for their customers to facilitate sales of products of the
     Borrower and its Subsidiaries, consistent with past practices of the
     Borrower; provided, however, that in no event shall the aggregate amount of
     all Permitted Guarantee Obligations exceed $500,000 at any one time
     outstanding.

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          "Permitted Investments" means (i) cash; (ii) accounts, chattel paper,
     and notes receivable created by the Borrower in the ordinary course of
     business; (iii) advances in the ordinary course of business to suppliers,
     employees and officers of the Borrower consistent with past practices in an
     aggregate amount at any time outstanding of not more than $200,000 to any
     one individual or $400,000 in the aggregate; (iv) investments in bank
     certificates of deposit (but only with banks having a recognized Thompson's
     BankWatch rating of BC or better), open market commercial paper maturing
     within one year having the highest rating of either Standard & Poors
     Corporation or Moody's Investors Services, Inc., U.S. Treasury Bills
     subject to repurchase agreements and short-term obligations issued or
     guaranteed by the U.S. Government or any agency thereof, and non-rated
     commercial paper issued by or through the Lender; (v) investments in
     open-end diversified investment companies of recognized financial standing
     investing solely in short-term money market instruments consisting of
     securities issued or guaranteed by the United States government, its
     agencies or instrumentalities, or municipalities, time deposits and
     certificates of deposit issued by domestic banks or London branches of
     domestic banks, bankers acceptances, repurchase agreements, high grade
     commercial paper and the like; (vi) Eurodollar certificates of deposit in a
     financial institution of recognized standing with a rating by Thompson's
     BankWatch of BC or better; (vii) stock or other securities of a Subsidiary
     or other entity which is, or immediately after such investment will be, a
     Subsidiary (subject to the terms of Section 7.8 hereof); (viii) loans or
     advances to Subsidiaries constituting general obligations of such
     Subsidiaries, provided such obligations shall not be subordinated to any
     other obligations of such Subsidiaries; and (ix) purchases of or
     investments in bonds or other obligations issued by a municipality; and (x)
     investments that would not otherwise cause the Borrower to violate Section
     7.12 hereof. As used herein, "investment" means all investments, in cash or
     by delivery of property made, directly or indirectly in, to or from any
     Person, whether by acquisition of shares of capital stock, property,
     assets, indebtedness or other obligations or securities or by loan advance,
     capital contribution or otherwise.

          "Permitted Liens" means

               (i) Liens created by or otherwise existing under or in connection
          with this Credit Agreement or the other Credit Documents in favor of
          the Lender (including Liens in favor of the Lender on cash collateral
          deposits supporting letters of credit outstanding on the Closing
          Date), and Liens created by or otherwise existing under or in
          connection with the GE Loan Agreement in favor of General Electric
          Capital Corporation, as Agent, provided that all such Liens are
          subject to the terms of the Intercreditor Agreement;

               (ii) purchase money Liens securing purchase money indebtedness
          (and refinancings thereof) and Capital Lease Obligations, to the
          extent permitted under Section 7.1(c);

               (iii) Liens for taxes, assessments, charges or other governmental
          levies not yet due or as to which the period of grace, if any, related
          thereto has not expired or which are being contested in good faith by
          appropriate proceedings, provided that adequate reserves with respect
          thereto are maintained on the books

                                     - 9 -
<PAGE>

          of the Borrower or its Subsidiaries, as the case may be, in conformity
          with GAAP (or, in the case of Subsidiaries with significant operations
          outside of the United States of America, generally accepted accounting
          principles in effect from time to time in their respective
          jurisdictions of incorporation);

               (iv) carriers', warehousemen's, mechanics', materialmen's,
          repairmen's or other like Liens arising in the ordinary course of
          business which are not overdue for a period of more than 60 days or
          which are being contested in good faith by appropriate proceedings;

               (v) pledges or deposits in connection with workers compensation,
          unemployment insurance and other social security legislation and
          deposits securing liability to insurance carriers under insurance or
          self-insurance arrangements;

               (vi) deposits to secure the performance of bids, trade contracts,
          (other than for borrowed money), leases, statutory obligations, surety
          and appeal bonds, performance bonds and other obligations of a like
          nature incurred in the ordinary course of business;

               (vii) any extension, renewal or replacement (or successive
          extensions, renewals or replacements), in whole or in part, of any
          Lien referred to in the foregoing clauses; provided that such
          extension, renewal or replacement Lien shall be limited to all or a
          part of the property which secured the Lien so extended, renewed or
          replaced (plus improvements on such property);

               (viii) easements, rights of way, restrictions and other similar
          encumbrances incurred in the ordinary course of business which, in the
          aggregate, are not material in amount and which do not in any case
          materially detract from the value of the property subject thereto or
          materially interfere with the ordinary conduct of the business of the
          Borrower or any Subsidiary;

               (ix) Liens in existence on the date hereof listed on Schedule
          7.2, securing Indebtedness permitted by Sections 7.1(b) and 7.1(c),
          provided that no such Lien is spread to cover any additional property
          (other than proceeds of the collateral originally subject to such Lien
          in accordance with the instrument creating such Lien) after the
          Closing Date and that the amount of Indebtedness secured thereby is
          not increased, and Liens that may come into existence after the date
          hereof in favor of the George and Virginia Schneider Trust on the
          Borrower's assets, provided that such Liens are subordinated on terms
          acceptable to the Lender;

               (x) leases and subleases otherwise permitted hereunder granted to
          others not interfering in any material respect in the business of the
          Borrower or any Subsidiary; and

               (xi) attachment or judgment Liens, where the attachment or
          judgment which gave rise to such Liens does not constitute an Event of
          Default hereunder.

                                     - 10 -
<PAGE>

          "Permitted Sale-Leaseback Transaction" means a transaction pursuant to
     which the Borrower sells an item of equipment to a financial institution
     and concurrently with such sale (i) leases such item of equipment back from
     such financial institution and (ii) subleases such item of equipment to a
     customer of the Borrower pursuant to a sublease agreement under which such
     customer obtains an option to purchase such item of equipment at or before
     the end of such sublease.

          "Person" means any individual, partnership, joint venture, firm,
     corporation, limited liability company, association, trust or other
     enterprise (whether or not incorporated) or any Governmental Authority.

          "Plan" means at any particular time, any employee benefit plan which
     is covered by Title IV of ERISA and in respect of which the Borrower or a
     Commonly Controlled Entity is (or, if such plan were terminated at such
     time, would under Section 4069 of ERISA be deemed to be) an "employer" as
     defined in Section 3(5) of ERISA.

          "Prime Rate" means, for any day, the higher of (i) the per annum rate
     of interest established from time to time by the Lender at its principal
     office in Milwaukee, Wisconsin as its Prime Rate, or (ii) the Federal Funds
     Rate plus 1%. Any change in the interest rate resulting from a change in
     the Prime Rate shall become effective as of 12:01 a.m. of the Business Day
     on which each change in the Prime Rate is announced by the Lender. The
     Prime Rate is a reference rate used by the Lender in determining interest
     rates on certain loans and is not intended to be the lowest rate of
     interest charged on any extension of credit to any debtor.

          "Prime Rate Loan" means any portion of the Term Loan bearing interest
     at a rate determined by reference to the Prime Rate.

          "Properties" is defined in subsection 5.10(a).

          "Recovery Event" means the receipt by the Borrower or any of its
     Subsidiaries of any cash insurance proceeds or condemnation award payable
     by reason of theft, loss, physical destruction or damage, taking or similar
     event with respect to any of their respective property or assets.

          "Reorganization" means with respect to any Multiemployer Plan, the
     condition that such Plan is in reorganization within the meaning of such
     term as used in Section 4241 of ERISA.

          "Reportable Event" means any of the events set forth in Section
     4043(b) of ERISA, other than those events as to which the thirty-day notice
     period is waived under subsections .13, .14, .16, .18, .19 or .20 of PBGC
     Reg. ss.2615.

          "Requirement of Law" means, as to any Person, the certificate of
     incorporation and by-laws or other organizational or governing documents of
     such Person, and any law, treaty, rule or regulation or determination of an
     arbitrator or a court or other Governmental Authority, in each case
     applicable to or binding upon such Person or to which any of its material
     property is subject.

                                     - 11 -
<PAGE>

          "Shareholder Guaranty" means that certain guaranty from George
     Schneider in favor of the Lender substantially in the form of Exhibit D
     attached hereto, as the same may be modified or amended from time to time.

          "Single Employer Plan" means any Plan which is not a Multi-Employer
     Plan.

          "Solvent" means, with respect to any Person as of a particular date,
     that on such date (i) such Person is able to realize upon its assets and
     pay its debts and other liabilities, contingent obligations and other
     commitments as they mature in the normal course of business, (ii) such
     Person does not intend to, and does not believe that it will, incur debts
     or liabilities beyond its ability to pay as such debts and liabilities
     mature in their ordinary course, (iii) such Person is not engaged in a
     business or a transaction, and is not about to engage in a business or a
     transaction, for which such Person's property would constitute unreasonably
     small capital after giving due consideration to the prevailing practice in
     the industry in which such Person is engaged or is to engage, (vi) the fair
     value of the property of such Person is greater than the total amount of
     liabilities, including, without limitation, contingent liabilities, of such
     Person and (v) the present fair saleable value of the assets of such Person
     is not less than the amount that will be required to pay the probable
     liability of such Person on its debts as they become absolute and matured.
     In computing the amount of contingent liabilities at any time, it is
     intended that such liabilities will be computed at the amount which, in
     light of all the facts and circumstances existing at such time, represents
     the amount that can reasonably be expected to become an actual or matured
     liability.

          "Specified Sales" means (i) the sale, transfer, lease or other
     disposition of inventory and materials in the ordinary course of business,
     (ii) the sale, transfer, lease or other disposition of machinery, parts and
     equipment that are no longer useful in the conduct of the business of the
     Borrower or any of its Subsidiaries, as appropriate, (iii) the sale,
     transfer, lease or other disposition of other machinery, parts, equipment
     and real estate for cash, provided, however, that at least 80% of the Net
     Proceeds thereof shall be paid to the Lender as a prepayment of the Term
     Loan under Section 3.3(a) (including without limitation at least 80% of the
     Net Proceeds of any sale of machinery, parts, equipment and real estate
     comprising any part of Borrower's La Crosse, Wisconsin manufacturing
     facility) and the balance of such Net Proceeds shall, to the extent not
     applied to the Term Loan, be applied to the obligations under the GE Loan
     Agreement; and (iv) in addition to the transactions described in
     subsections (i), (ii) and (iii), any other sale, transfer, lease or other
     disposition of assets where the proceeds of such disposition do not exceed
     $1,500,000 during any fiscal year or $4,000,000 during the term of this
     Credit Agreement.

          "Subordinated Debt" is defined in Section 7.10.

          "Subsidiary" means, as to any Person, a corporation, partnership or
     other entity of which shares of stock or other ownership interests having
     ordinary voting power (other than stock or such other ownership interests
     having such power only by reason of the happening of a contingency) to
     elect a majority of the board of directors or other managers of such
     corporation, partnership or other entity are at the time owned, or the

                                     - 12 -
<PAGE>

     management of which is otherwise controlled, directly or indirectly through
     one or more intermediaries, or both, by such Person. Unless otherwise
     qualified, all references to a "Subsidiary" or to "Subsidiaries" in this
     Credit Agreement shall refer to a Subsidiary or Subsidiaries of the
     Borrower.

          "Subsidiary Guaranty" means that certain guaranty from Danner in favor
     of the Lender substantially in the form of Exhibit E attached hereto, as
     the same may be modified or amended from time to time.

          "Subsidiary Security Agreement" means that certain Security Agreement
     by and between Danner and the Lender substantially in the form of Exhibit F
     attached hereto, as the same may be modified or amended from time to time.

          "Tangible Net Worth" means, with respect to any Person at any date,
     the Net Worth of such Person at such date, excluding, however, from the
     determination of the total assets at such date, (a) all goodwill,
     capitalized organizational expenses, capitalized research and development
     expenses, trademarks, trade names, copyrights, patents, patent
     applications, licenses and rights in any thereof, and other intangible
     items, (b) all unamortized debt discount and expense, (c) treasury stock,
     (d) any write-up in the book value of any asset resulting from a
     revaluation thereof, (e) software and (f) all deferred tax benefits.

          "Term Loan" is defined in Section 2.1(a).

          "Term Note" means the promissory note of the Borrower in favor of the
     Lender evidencing the Term Loan provided pursuant to Section 2.1(d), as
     such promissory note may be amended, modified, supplemented, extended,
     renewed or replaced from time to time.

          "Term Termination Date" means May 28, 2004 or the earlier termination
     in full of the Term Loan.

          "Type" means, as to the Term Loan, its nature as a Prime Rate Loan or
     a Eurodollar Loan, as the case may be.

     1.2  Other Definitional Provisions.

          (a) Unless otherwise specified therein, all capitalized definitional
     terms defined in this Credit Agreement shall have the defined meanings when
     used in the Note or other Credit Documents or any certificate or other
     document made or delivered pursuant hereto.

          (b) The words "hereof", "herein" and "hereunder" and words of similar
     import when used in this Credit Agreement shall refer to this Credit
     Agreement as a whole and not to any particular provision of this Credit
     Agreement, and Section, subsection, Schedule and Exhibit references are to
     this Credit Agreement unless otherwise specified.

                                     - 13 -
<PAGE>

          (c) The meanings given to terms defined herein shall be equally
     applicable to both the singular and plural forms of such terms.

          (d) For purposes of computation of periods of time hereunder, the word
     "from" means "from and including" and the words "to" and "until" each mean
     "to but excluding".

     1.3 Accounting Terms and Determinations. Unless otherwise specified herein,
all terms of an accounting character used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared, in accordance with GAAP,
applied on a basis consistent (except for changes concurred in by the Borrower's
independent public accountants or otherwise required by a change in GAAP) with
the most recent audited consolidated financial statements of the Borrower and
its Consolidated Subsidiaries delivered to the Lender.

                                   ARTICLE 2

                                  THE tERM lOAN

     2.1 Term Loan.

          (a) Term Loan. Subject to and upon the terms and conditions hereof,
     the Lender hereby agrees to make a term loan (the "Term Loan") to the
     Borrower on the Closing Date in the aggregate principal amount of SEVEN
     MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,500,000) for the purposes
     hereinafter set forth. The Term Loan may consist of Prime Rate Loans or
     Eurodollar Loans, or a combination thereof, as the Borrower may request.
     Amounts repaid on the Term Loan may not be reborrowed. Eurodollar Loans
     shall be made by the Lender at its Eurodollar Lending Office and Prime Rate
     Loans at its Domestic Lending Office. In the event the Borrower shall fail
     to borrow the entire Term Loan, the scheduled amortization payments
     required under Section 2.1(b) shall be reduced in inverse order of maturity
     by the amount of the difference.

          (b) Repayment of Term Loan. The principal amount of the Term Loan
     shall be repaid in semi-annual payments of $750,000 each, commencing on
     November 15, 2001 and on the fifteenth day of each May and November
     thereafter, with a final principal payment of the outstanding unpaid
     balance of the Term Loan (together with all accrued but unpaid interest) on
     the Term Termination Date.

          (c) Interest on the Term Loan. Subject to the provisions of Section
     3.1, the Term Loan shall bear interest as follows:

               (i) Prime Rate Loans. During such periods as the Term Loan shall
          be comprised of Prime Rate Loans, each such Prime Rate Loan shall bear
          interest at a per annum rate equal to the Prime Rate; and

               (ii) Eurodollar Loans. During such periods as the Term Loan shall
          be comprised of Eurodollar Loans, each such Eurodollar Loan shall bear
          interest at a

                                     - 14 -
<PAGE>

          per annum rate equal to the sum of the applicable Eurodollar Rate plus
          200 basis points as of the commencement of the Interest Period
          applicable thereto.

Interest on the Term Loan shall be payable in arrears on each Interest Payment
Date.

          (d) Term Note. The Term Loan shall be evidenced by a duly executed
     promissory note of the Borrower to each Lender in the original principal
     amount of the Term Loan substantially in the form of Exhibit E.

                                   ARTICLE 3

                 OTHER PROVISIONS RELATING TO CREDIT FACILITIES

     3.1 Default Rate. Upon the occurrence, and during the continuance, of an
Event of Default, the principal of and, to the extent permitted by law, interest
on the Term Loan and any other amounts owing hereunder or under the other Credit
Documents shall bear interest, payable on demand, at a per annum rate which is
equal to the rate which would otherwise be applicable (or if no rate is
applicable, whether in respect of interest, fees or other amounts, then the
Prime Rate) plus 2%.

     3.2 Extension and Conversion. The Borrower shall have the option, on any
Business Day, to extend the Term Loan into a subsequent permissible Interest
Period or to convert the Term Loan into a Term Loan of another Type; provided,
however, that (i) except as provided in Section 3.7, Eurodollar Loans may be
converted into Prime Rate Loans only on the last day of the Interest Period
applicable thereto, (ii) Eurodollar Loans may be extended, and Prime Rate Loans
may be converted into Eurodollar Loans, only if no Default or Event of Default
is in existence on the date of extension or conversion, (iii) the portion of the
Term Loan extended as, or converted into, Eurodollar Loans shall be subject to
the terms of the definition of "Interest Period" set forth in Section 1.1 and
(iv) any request for extension or conversion of a Eurodollar Loan which shall
fail to specify an Interest Period shall be deemed to be a request for an
Interest Period of one month. Each such extension or conversion shall be
effected by the Borrower by giving a Notice of Extension/Conversion in the form
of Exhibit 3.2 (or telephone notice promptly confirmed in writing) to the Lender
prior to 12:00 noon (Milwaukee, Wisconsin time) on the Business Day of, in the
case of the conversion of a Eurodollar Loan into a Prime Rate Loan and on the
third Business Day prior to, in the case of the extension of a Eurodollar Loan
as, or conversion of a Prime Rate Loan into, a Eurodollar Loan, the date of the
proposed extension or conversion, specifying the date of the proposed extension
or conversion, the portion of the Term Loan to be so extended or converted, the
Types of Term Loan into which such portion of the Term Loan are to be converted
and, if appropriate, the applicable Interest Periods with respect thereto. Each
request for extension or conversion shall constitute a representation and
warranty by the Borrower of the matters specified in Section 4.2. In the event
the Borrower fails to request extension or conversion of any Eurodollar Loan in
accordance with this Section, or any such conversion or extension is not
permitted or required by this Section, then such portion of the Term Loan shall
be automatically converted into Prime Rate Loans at the end of their Interest
Period.

                                     - 15 -
<PAGE>

     3.3 Prepayments.

          (a) Voluntary Prepayments. The Term Loan may be prepaid in whole or in
     part without premium or penalty except as provided in Section 3.10. Any
     partial prepayment shall be in a minimum aggregate principal amount of
     $100,000 and integral multiples of $100,000 in excess thereof or such
     smaller amount as may be necessary to prepay the Term Loan in full. Amounts
     prepaid on the Term Loan shall be applied first, to the next two (2)
     scheduled payments of the principal of the Term Loan and the balance, if
     any, shall be applied in inverse order of maturity to the payments of
     principal due pursuant to Section 2.1(b). Amounts prepaid on the Term Loan
     may not be reborrowed.

          (b) Notice. Except as otherwise provided herein, the Borrower will
     provide notice to the Lender of any prepayment of the Term Loan by 10:30
     A.M. (Milwaukee, Wisconsin time) on the day prior to the date of
     prepayment.

     3.4 [Reserved]

     3.5 Capital Adequacy. If the Lender has reasonably determined that the
adoption or effectiveness of any applicable law, rule or regulation regarding
capital adequacy made after the date hereof, or any change therein made after
the date hereof, or any change in the interpretation or administration thereof
by any Governmental Authority, central bank or comparable agency charged with
the interpretation or administration thereof made after the date hereof, or
compliance by the Lender or its parent company with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such
authority, central bank or comparable agency made after the date hereof, has or
would have the effect of reducing the rate of return on the Lender's or its
parent company's capital or assets as a consequence of its commitments or
obligations hereunder to a level below that which the Lender could have achieved
but for such adoption, effectiveness, change or compliance (taking into
consideration the policies of the Lender and its parent company with respect to
capital adequacy), then, within 10 Business Days after the Borrower's receipt of
the certificate referred to in the next sentence, the Borrower shall pay to the
Lender such additional amount or amounts as will compensate the Lender and its
parent company for such reduction. A certificate as to the amount of such
reduction in rate of return, the good faith basis therefor and setting forth in
reasonable detail the calculations used by the Lender to arrive at the amount or
amounts claimed to be due, shall be submitted to the Borrower. Each
determination by the Lender of amounts owing under this Section shall be
rebuttably presumptive evidence of the matters set forth therein. No demand for
payment under this Section shall be made unless the Lender shall make comparable
demands of other similarly situated borrowers. The provisions of this Section
shall survive termination of this Credit Agreement and the payment of the Term
Loan and all other amounts payable hereunder.

     3.6 Inability To Determine Interest Rate. If prior to the first day of any
Interest Period, the Lender shall have reasonably determined (which
determination shall be conclusive and binding upon the Borrower) that, by reason
of circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Eurodollar Rate for such Interest Period, the
Lender shall give telecopy or telephonic notice thereof to the Borrower as soon
as

                                     - 16 -
<PAGE>

practicable thereafter. If such notice is given (a) any Eurodollar Loans
requested to be made on the first day of such Interest Period shall be made as
Prime Rate Loans, (b) any portion of the Term Loan that was to have been
converted on the first day of such Interest Period to or continued as Eurodollar
Loans shall be converted to or continued as Prime Rate Loans and (c) any
outstanding Eurodollar Loans shall be converted, at the end of their respective
Interest Periods to Prime Rate Loans. Until such notice has been withdrawn by
the Lender, no further Eurodollar Loans shall be made or continued as such, nor
shall the Borrower have the right to convert Prime Rate Loans to Eurodollar
Loans.

     3.7 Illegality. Notwithstanding any other provision herein, if the adoption
of or any change in any Requirement of Law or in the interpretation or
application thereof occurring after the Closing Date shall make it unlawful for
the Lender to make or maintain Eurodollar Loans as contemplated by this Credit
Agreement, (a) the Lender shall promptly give written notice of such
circumstances to the Borrower (which notice shall be withdrawn whenever such
circumstances no longer exist), (b) the commitment of the Lender hereunder to
make Eurodollar Loans, continue Eurodollar Loans as such and convert a Prime
Rate Loan to Eurodollar Loans shall forthwith be canceled and, until such time
as it shall no longer be unlawful for the Lender to make or maintain Eurodollar
Loans, the Lender shall then have a commitment only to make a Prime Rate Loan
when a Eurodollar Loan is requested and (c) the portion of the Term Loan then
outstanding as Eurodollar Loans, if any, shall be converted automatically to
Prime Rate Loans on the respective last days of the then current Interest
Periods with respect to such Loans or within such earlier period as required by
law. If any such conversion of a Eurodollar Loan occurs on a day which is not
the last day of the then current Interest Period with respect thereto, the
Borrower shall pay to the Lender such amounts, if any, as may be required
pursuant to Section 3.10.

     3.8 Requirements of Law. If the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof applicable to
the Lender, or compliance by the Lender with any request or directive (whether
or not having the force of law) from any central bank or other Governmental
Authority, in each case made subsequent to the Closing Date:

               (i) shall subject the Lender to any tax of any kind whatsoever on
          or in respect of any Eurodollar Loans made by it or its obligation to
          make Eurodollar Loans, or change the basis of taxation of payments to
          the Lender in respect thereof except for Non-Excluded Taxes covered by
          Section 3.9 and changes in taxes measured by or imposed upon the
          overall net income, or franchise tax (imposed in lieu of such net
          income tax), of the Lender or its applicable lending office, branch,
          or any affiliate thereof); or

               (ii) shall impose, modify or hold applicable any reserve, special
          deposit, compulsory loan or similar condition or requirement against
          assets held by, deposits or other liabilities in or for the account
          of, advances, loans or other extensions of credit by, or any other
          acquisition of funds by, any office of the Lender which is not
          otherwise included in the determination of the Eurodollar Rate
          hereunder;

                                     - 17 -
<PAGE>

and the result of any of the foregoing is to increase the cost to the Lender, by
an amount which the Lender deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, upon notice to the
Borrower from the Lender, in accordance herewith, the Borrower shall promptly
pay the Lender, upon its demand, any additional amounts necessary to compensate
the Lender for such increased cost or reduced amount receivable, provided that,
in any such case, the Borrower may elect to convert the Eurodollar Loans made by
the Lender hereunder to Prime Rate Loans by giving the Lender at least one
Business Day's notice of such election, in which case the Borrower shall
promptly pay to the Lender, upon demand, without duplication, such amounts, if
any, as may be required pursuant to Section 3.10. If the Lender becomes entitled
to claim any additional amounts pursuant to this subsection, it shall provide
prompt notice thereof to the Borrower, certifying (a) that one of the events
described in this Section 3.8 has occurred and describing in reasonable detail
the nature of such event, (b) as to the increased cost or reduced amount
resulting from such event and (c) as to the additional amount demanded by the
Lender and a reasonably detailed explanation of the calculation thereof. Such a
certificate as to any additional amounts payable pursuant to this subsection
shall be submitted by the Lender to the Borrower and shall be conclusive in the
absence of manifest error. No demand for payment under this Section shall be
made unless the Lender shall make comparable demands of other similarly situated
borrowers. This covenant shall survive the termination of this Credit Agreement
and the payment of the Term Loan and all other amounts payable hereunder.

     3.9 Taxes. Except as provided below in this Section, all payments made by
the Borrower under this Credit Agreement and the Note shall be made free and
clear of, and without deduction or withholding for or on account of, any present
or future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental Authority, excluding taxes measured by
or imposed upon the overall net income of the Lender or its applicable lending
office, or any branch or affiliate thereof, and all franchise taxes, branch
taxes, taxes on doing business or taxes on the overall capital or net worth of
the Lender or its applicable lending office, or any branch or affiliate thereof,
in each case imposed in lieu of net income taxes, imposed: (i) by the
jurisdiction under the laws of which the Lender, applicable lending office,
branch or affiliate is organized or is located, or in which its principal
executive office is located, or any nation within which such jurisdiction is
located or any political subdivision thereof; or (ii) by reason of any
connection between the jurisdiction imposing such tax and the Lender, applicable
lending office, branch or affiliate other than a connection arising solely from
the Lender having executed, delivered or performed its obligations, or received
payment under or enforced, this Credit Agreement or the Note. If any such
non-excluded taxes, levies, imposts, duties, charges, fees, deductions or
withholdings ("Non-Excluded Taxes") are required to be withheld from any amounts
payable to the Lender hereunder or under the Note, (A) the amounts so payable to
the Lender shall be increased to the extent necessary to yield to the Lender
(after payment of all Non-Excluded Taxes) interest or any such other amounts
payable hereunder at the rates or in the amounts specified in this Credit
Agreement and the Note and (B) as promptly as possible thereafter the Borrower
shall send to the Lender a certified copy of an original official receipt
received by the Borrower showing payment thereof. If the Borrower fails to pay
any Non-Excluded Taxes when due to the appropriate taxing authority or fails to
remit to the Lender the required receipts or other required documentary
evidence, the Borrower shall indemnify the

                                     - 18 -
<PAGE>

Lender for any incremental taxes, interest or penalties that may become payable
by the Lender as a result of any such failure. The agreements in this Section
shall survive the termination of this Credit Agreement and the payment of the
Term Loan and all other amounts payable hereunder.

     3.10 Indemnity. The Borrower agrees to indemnify the Lender and to hold the
Lender harmless from any loss or expense which the Lender may sustain or incur
(other than through the Lender's gross negligence or willful misconduct) as a
consequence of (a) default by the Borrower in making a borrowing of, conversion
into or continuation of Eurodollar Loans after the Borrower has given a notice
requesting the same in accordance with the provisions of this Credit Agreement,
(b) default by the Borrower in making any prepayment of a Eurodollar Loan after
the Borrower has given a notice thereof in accordance with the provisions of
this Credit Agreement or (c) the making of a prepayment of Eurodollar Loans on a
day which is not the last day of an Interest Period with respect thereto. Such
indemnification may include an amount equal to the excess, if any, of (i) the
amount of interest which would have accrued on the amount so prepaid, or not so
borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue to the last day of
the applicable Interest Period (or, in the case of a failure to borrow, convert
or continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Eurodollar
Loans provided for herein over (ii) the amount of interest (as reasonably
determined by the Lender) which would have accrued to the Lender on such amount
by placing such amount on deposit for a comparable period with leading banks in
the interbank Eurodollar market, provided, however, that the amount of such lost
interest, if any, shall be discounted to a present value as of the date of the
indemnification payment, using as the applicable discount rate(s) the rate(s) of
per annum interest used by the Lender in making the computations pursuant to the
foregoing clause (ii). This covenant shall survive the termination of this
Credit Agreement and the payment of the Term Loan and all other amounts payable
hereunder.

     3.11 Place and Manner of Payments. Except as otherwise specifically
provided herein, all payments hereunder shall be made to the Lender in Dollars
in immediately available funds, without offset, deduction, counterclaim or
withholding of any kind, at its offices specified in Section 9.2 not later than
12:00 noon (Milwaukee, Wisconsin time) on the date when due. Payments received
after such time shall be deemed to have been received on the next succeeding
Business Day. The Lender may, at the Borrower's request, debit the amount of any
such payment which is not made by such time to Account No. 112560280 maintained
by the Borrower with the Lender. Whenever any payment hereunder shall be stated
to be due on a day which is not a Business Day, the due date thereof shall be
extended to the next succeeding Business Day (subject to accrual of interest and
Fees for the period of such extension), except that in the case of Eurodollar
Loans, if the extension would cause the payment to be made in the next following
calendar month, then such payment shall instead be made on the next preceding
Business Day. Except as expressly provided otherwise herein, all computations of
interest and fees shall be made on the basis of actual number of days elapsed
over a year of 360 days. Interest shall accrue from and include the date of
borrowing, but exclude the date of payment.

                                     - 19 -
<PAGE>

                                   ARTICLE 4

                                   CONDITIONS

     4.1 Conditions to Closing Date. This Credit Agreement shall become
effective upon the satisfaction of the following conditions precedent:

          (a) Execution of Credit Documents. The Lender shall have received:
     this Credit Agreement, the Assignment of Life Insurance, the Note, the
     Shareholder Guaranty, the Subsidiary Guaranty, the Mortgage, the Parent
     Security Agreement and the Subsidiary Security Agreement, together with
     appropriate Uniform Commercial Code financing statements, in each case,
     conforming to the requirements of this Credit Agreement and executed by a
     duly authorized officer of the Borrower (or, in the case of the Shareholder
     Guaranty, by George Schneider, and in the case of the Subsidiary Guaranty
     and the Subsidiary Security Agreement and related financing statements, by
     a duly authorized officer of Danner).

          (b) GE Loan Matters. Copies of: (i) the GE Loan Agreement executed by
     the Borrower and General Electric Capital Corporation, in form and
     substance reasonably satisfactory to the Lender, and evidence satisfactory
     to the Lender that all conditions to the effectiveness of such Loan
     Agreement have been satisfied; and (ii) the Intercreditor Agreement,
     executed by the Lender and GE Capital Corporation and acknowledged by the
     Borrower.

          (c) Liability and Casualty Insurance. Copies of insurance policies or
     certificates of insurance evidencing liability and casualty insurance
     meeting the requirements set forth herein.

          (d) Financial Information. Copies of audited consolidated financial
     statements for the Borrower and its Subsidiaries for fiscal year 2000; and
     preliminary interim quarterly company-prepared consolidated financial
     statements for the Borrower and its Subsidiaries.

          (e) Corporate Documents. Receipt by the Lender of the following:

               (i) Articles of Incorporation. Copies of the articles of
          incorporation of the Borrower and Danner certified to be true and
          complete as of a recent date by the appropriate governmental authority
          of the state of their respective incorporation.

               (ii) Resolutions. Copies of resolutions of the Board of Directors
          of each of the Borrower and Danner approving and adopting the Credit
          Documents to which they are a party, the transactions contemplated
          therein and authorizing execution and delivery thereof, certified by a
          secretary or assistant secretary as of the Closing Date to be true and
          correct and in force and effect as of such date.

                                     - 20 -
<PAGE>

               (iii) Bylaws. A copy of the bylaws of the Borrower and Danner
          certified by a secretary or assistant secretary as of the Closing Date
          to be true and correct and in force and effect as of such date.

               (iv) Good Standing. Copies of certificates of good standing,
          existence or its equivalent with respect to the Borrower and Danner
          certified as of a recent date by the appropriate Governmental
          Authorities of the state of incorporation of each and each other state
          in which the failure to so qualify and be in good standing would have
          a Material Adverse Effect.

          (f) Officer's Certificate. The Lender shall have received certificates
     of a duly authorized officer of the Borrower and Danner dated the Closing
     Date, substantially in the form of Exhibit 4.1(f) with appropriate
     insertions and attachments.

          (g) Legal Opinion of Counsel. The Lender shall have received an
     opinion of Foley & Lardner, counsel for the Borrower, Danner and George
     Schneider, dated the Closing Date and addressed to the Lender, in form and
     substance satisfactory to the Lender.

          (h) Additional Matters. All other documents and legal matters in
     connection with the transactions contemplated by this Credit Agreement
     shall be reasonably satisfactory in form and substance to the Lender .

                                   ARTICLE 5

                         REPRESENTATIONS AND WARRANTIES

     To induce the Lender to enter into this Credit Agreement and to make the
Term Loan herein provided for, the Borrower hereby represents and warrants to
the Lender that:

     5.1 Financial Statements. The Borrower has furnished to the Lender (a) the
audited consolidated financial statements of the Borrower and its Consolidated
Subsidiaries as of December 31, 2000, together with an unqualified opinion
thereon by McGladry & Pullen and (b) the preliminary unaudited consolidated
financial statements of the Borrower and its Consolidated Subsidiaries as of
March 31, 2001, prepared by the Borrower. Such financial statements were
prepared in accordance with GAAP consistently applied throughout the periods
involved, are correct and complete and fairly present the consolidated financial
condition of the Borrower and such Subsidiaries as of such dates and the results
of their operations for the periods ended on such dates, subject, in the case of
the preliminary unaudited interim statements, to the absence of footnotes, audit
and normal year-end adjustments. Other than as set forth on Schedule 5.1, since
March 31, 2001, there has been no development or event which has had a Material
Adverse Effect.

     5.2 Ownership of Properties; Liens and Encumbrances. Other than as set
forth on Schedule 5.2, each of the Borrower and its Subsidiaries has good and
marketable title to all property, real and personal, reflected on the most
recent financial statement of the Borrower furnished to the Lender, and all
property purported to have been acquired since the date of such financial
statement, except property sold or otherwise disposed of in the ordinary course
of

                                     - 21 -
<PAGE>

business subsequent to such date; and all such property is free of any Lien
except Permitted Liens. All owned and leased buildings and equipment of the
Borrower used in the Borrower's business are in good operating condition, repair
and working order and conform to all applicable laws, ordinances and regulations
the violation of which would have a Material Adverse Effect. The Borrower
possesses adequate trademarks, trade names, copyrights, patents, service marks
and licenses, or rights thereto, for the present and planned future conduct of
its business substantially as now conducted, without any known conflict with the
rights of others which would result in a Material Adverse Effect.

     5.3 Corporate Existence; Compliance with Law. Each of the Borrower and its
Subsidiaries (a) is a corporation duly organized, validly existing and in good
standing (or similar concept under applicable law, including, without
limitation, the concept of active status under the laws of the State of
Wisconsin) under the laws of the jurisdiction of its organization, (b) has the
corporate power and authority and the legal right to own and operate all its
material property, to lease the material property it operates as lessee and to
conduct the business in which it is currently engaged, (c) is duly qualified as
a foreign corporation and in good standing under the laws of each jurisdiction
where its ownership, lease or operation of property or the conduct of its
business requires such qualification except to the extent that the failure to so
qualify or be in good standing would not, in the aggregate, have a Material
Adverse Effect and (d) is in compliance with all Requirements of Law except to
the extent that the failure to comply therewith would not, in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     5.4 Corporate Power; Authorization; Enforceable Obligations. Each of the
Borrower and Danner has full corporate power and authority and the legal right
to make, deliver and perform the Credit Documents to which it is party and has
taken all necessary corporate action to authorize the execution, delivery and
performance by it of the Credit Documents to which it is party. No consent or
authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with the
borrowings hereunder or with the execution, delivery or performance of any
Credit Document to which it is a party by the Borrower or Danner or with the
validity or enforceability of any Credit Document to which it is a party against
the Borrower or Danner, other than for certain filings necessary to perfect the
Lender's Liens under the Mortgage, the Parent Security Agreement and the
Subsidiary Security Agreement. Each Credit Document to which it is a party has
been duly executed and delivered on behalf of the Borrower and Danner. Each
Credit Document to which it is a party constitutes a legal, valid and binding
obligation of the Borrower and Danner, enforceable against the Borrower and
Danner, in accordance with its respective terms.

     5.5 No Legal Bar; No Default. The execution, delivery and performance of
the Credit Documents, the borrowings thereunder and the use of the proceeds of
the Term Loan will not violate any Requirement of Law or any Contractual
Obligation of the Borrower or its Subsidiaries the violation of which would
reasonably be expected to have a Material Adverse Effect (except those as to
which waivers or consents have been obtained), and will not result in, or
require, the creation or imposition of any Lien on any of its or their
respective properties or revenues pursuant to any Requirement of Law or
Contractual Obligation. Neither the Borrower nor any of its Subsidiaries is in
default under or with respect to any of its Contractual Obligations in any
respect which would reasonably be expected to have a Material Adverse Effect. No
Default or Event of Default has occurred and is continuing.

                                     - 22 -
<PAGE>

     5.6 No Material Litigation. Except as set forth in Schedule 5.6, no
litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the best knowledge of the Borrower,
threatened by or against the Borrower or any of its Subsidiaries or against any
of its or their respective properties or revenues (a) with respect to the Credit
Documents or any Loan or any of the transactions contemplated hereby, or (b)
which, if adversely determined, would reasonably be expected to have a Material
Adverse Effect.

     5.7 Investment Company Act. The Borrower is not an "investment company" or
a company "controlled" by an "investment company" within the meaning of the
Investment Company Act of 1940, as amended.

     5.8 Federal Regulations. No part of the proceeds of the Term Loan hereunder
will be used directly or indirectly for any purpose which violates, or which
would be inconsistent with, the provisions of Regulation T, U or X of the Board
of Governors of the Federal Reserve System as now and from time to time
hereafter in effect. The Borrower and its Subsidiaries taken as a group do not
own "margin stock" except (a) margin stock which is a Permitted Investment, and
(b) capital stock of the Borrower held by the Borrower as treasury stock, but
only to the extent otherwise permitted by this Credit Agreement.

     5.9 ERISA. Neither a Reportable Event nor an "accumulated funding
deficiency" within the meaning of Section 412 of the Code (or Section 302 of
ERISA) has occurred during the five-year period prior to the date on which this
representation is made or deemed made with respect to any Plan, and each Plan
has complied in all material respects with the applicable provisions of ERISA
and the Code, except to the extent that any such occurrence or failure to comply
would not reasonably be expected to have a Material Adverse Effect. No
termination of a Single Employer Plan has occurred resulting in any liability
that has remained underfunded, and no Lien in favor of the PBGC or a Plan has
arisen, during such five-year period which would reasonably be expected to have
a Material Adverse Effect. The present value of all accrued benefits under each
Single Employer Plan (based on those assumptions used to fund such Plans) did
not, as of the last annual valuation date prior to the date on which this
representation is made or deemed made, exceed the value of the assets of such
Plan allocable to such accrued benefits by an amount which, as determined in
accordance with GAAP, would reasonably be expected to have a Material Adverse
Effect. Neither the Borrower nor any Commonly Controlled Entity is currently
subject to any liability for a complete or partial withdrawal from a
Multiemployer Plan which would reasonably be expected to have a Material Adverse
Effect.

     5.10 Environmental Matters. Except as set forth on Schedule 5.10 and except
to the extent that all of the following, in the aggregate, would not reasonably
be expected to have a Material Adverse Effect:

          (a) The facilities and properties owned, leased or operated by the
     Borrower or any of its Subsidiaries (the "Properties") do not contain any
     Materials of Environmental Concern in amounts or concentrations which (i)
     constitute a violation of, or (ii) could give rise to liability under, any
     Environmental Law.

          (b) The Properties and all operations at the Properties are in
     compliance, and have in the last five years been in compliance, in all
     material respects with all applicable

                                     - 23 -
<PAGE>

     Environmental Laws, and there is no contamination at, under or about the
     Properties or violation of any Environmental Law with respect to the
     Properties or the business operated by the Borrower or any of its
     Subsidiaries (the "Business").

          (c) Neither the Borrower nor any of its Subsidiaries has received any
     notice of violation, alleged violation, non-compliance, liability or
     potential liability regarding environmental matters or compliance with
     Environmental Laws with regard to any of the Properties or the Business,
     nor does the Borrower have knowledge or reason to believe that any such
     notice will be received or is being threatened.

          (d) Materials of Environmental Concern have not been transported or
     disposed of from the Properties in violation of, or in a manner or to a
     location which could give rise to liability under any Environmental Law,
     nor have any Materials of Environmental Concern been generated, treated,
     stored or disposed of at, on or under any of the Properties in violation
     of, or in a manner that could give rise to liability under, any applicable
     Environmental Law.

          (e) No judicial proceeding or governmental or administrative action is
     pending or, to the knowledge of the Borrower, threatened, under any
     Environmental Law to which the Borrower or any Subsidiary is or will be
     named as a party with respect to the Properties or the Business, nor are
     there any consent decrees or other decrees, consent orders, administrative
     orders or other orders, or other administrative or judicial requirements
     outstanding under any Environmental Law with respect to the Properties or
     the Business.

          (f) There has been no unremediated release or threat of release of
     Materials of Environmental Concern at or from the Properties, or arising
     from or related to the operations of the Borrower or any Subsidiary in
     connection with the Properties or otherwise in connection with the
     Business, in violation of or in amounts or in a manner that could give rise
     to liability under Environmental Laws.

     5.11 Use of Proceeds. The Term Loan shall be used to provide for general
corporate purposes not prohibited by this Credit Agreement.

     5.12 Subsidiaries. Set forth on Schedule 5.12 is a complete and accurate
list of all Subsidiaries of the Borrower. The outstanding capital stock and
other equity interests of all such Subsidiaries is validly issued, fully paid
and nonassessable (except as provided in Section 180.0622(2)(b) of the Wisconsin
Statutes) and is owned, free and clear of all Liens.

     5.13 Taxes. Each of the Borrower and its Subsidiaries has filed, or caused
to be filed, all tax returns (federal, state, local and foreign) required to be
filed and paid all taxes shown thereon to be due (including interest and
penalties), except for such taxes (i) which are not yet delinquent or (ii) as
are being contested in good faith and by proper proceedings, and against which
adequate reserves are being maintained in accordance with GAAP. The Borrower's
federal income tax liability has been finally determined by the Internal Revenue
Service for all taxable years up to and including the taxable year ended
December 31, 1991, and there is no threatened tax controversy or, to the best of
Borrower's knowledge, threatened tax controversy

                                     - 24 -
<PAGE>

or dispute as of the date hereof which would have a Material Adverse Effect
except as disclosed in Schedule 5.13.

     5.14 Solvency. The Borrower, individually, and the Borrower and its
Subsidiaries, collectively, are and, after execution of this Credit Agreement
and the GE Loan Agreement and after giving effect to the Indebtedness incurred
hereunder and under the GE Loan Agreement, will be Solvent.

     5.15 Accuracy of Information. All information furnished by the Borrower to
the Lender is correct and complete in all material respects as of the date
furnished and does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make such information not misleading.

                                   ARTICLE 6

                              AFFIRMATIVE COVENANTS

     The Borrower hereby covenants and agrees that on the Closing Date, and
thereafter for so long as this Credit Agreement is in effect and until the
Obligations are paid in full, the Borrower shall, and in the case of subsections
6.2, 6.3, 6.4, 6.5, 6.6 and 6.7 shall cause each of its Subsidiaries, to:

     6.1 Financial Statements. Maintain a standard and modern system of
accounting in accordance with sound accounting practice, and furnish to the
Lender such information respecting the business, assets and financial condition
of the Borrower and its Subsidiaries as the Lender may reasonably request and,
without request furnish to the Lender, or, in the case of Subsidiaries, cause
its Subsidiaries to furnish to the Lender:

          (a) as soon as available, and in any event within 45 days after the
     end of each of the first three quarters of Borrower's fiscal year, the
     Borrower's Form 10-Q (prepared on a consolidated basis) as of the end of
     each such quarter and a comparison of actual cash flow, income and capital
     expenditures with corresponding amounts from the prior year for such
     period, all in reasonable detail and certified as true, correct and
     complete, subject to review and normal year-end adjustments, by the chief
     financial officer of the Borrower;

          (b) as soon as available, and in any event within 100 days after the
     close of each fiscal year, a copy of the Borrower's Form 10-K (prepared on
     a consolidated basis, which Form 10-K shall be accompanied by (i) the
     unqualified opinion of independent certified public accountants of
     recognized standing selected by the Borrower and acceptable to the Lender
     to the effect that the statements present fairly, in all material respects,
     the financial position of the Borrower as of the end of such year and the
     results of its operations and its cash flows for the year then ended in
     conformity with GAAP; (ii) a letter of such accountants stating that their
     review of the financial covenants disclosed no Default or that their review
     disclosed a Default and specifying the same and the action taken or
     proposed to be taken with respect thereto; and (iii) any supplementary

                                     - 25 -
<PAGE>

     comments and reports submitted by such accountants to the Borrower
     including the management letter, if any;

          (c) as soon as available, and in any event within 45 days after the
     close of each fiscal year, a budget of income and expenses prepared by the
     Borrower for the current fiscal year, based on information and assumptions
     that are accurate and reasonable as of the date hereof; and

          (d) together with the financial statements described in Section 6.1(a)
     and (b), the certificate of the president or chief financial officer of the
     Borrower and to the effect that (i) a review of the activities of the
     Borrower during such period has been made under his supervision to
     determine whether the Borrower has observed, performed and fulfilled the
     covenants set forth in Section 7.12, and (ii) no Default has occurred, with
     respect to said covenants (or if such Default has occurred, specifying the
     nature thereof and the period of existence thereof and the steps, if any,
     being undertaken to correct the same).

All financial statements referred to herein shall be complete and correct in all
respects and shall be prepared in reasonable detail and on a consolidated basis
in accordance with GAAP, applied consistently throughout all accounting periods.
In addition, the Borrower shall cause George Schneider to provide a true and
complete copy of his personal financial statement on or before the end of each
of the Borrower's fiscal years.

     6.2 Payment of Obligations. Subject to the exceptions set forth in Section
8(e), pay, discharge or otherwise satisfy at or before maturity or before they
become delinquent, as the case may be, in accordance with industry practice
(subject, where applicable, to specified grace periods) all its material
obligations of whatever nature and any additional costs that are imposed as a
result of any failure to so pay, discharge or otherwise satisfy such material
obligations (including, without limitation, obligations to pay taxes), except
when the amount or validity of such obligations and costs is currently being
contested in good faith by appropriate proceedings and reserves, if applicable,
in conformity with GAAP with respect thereto have been provided on the books of
the Borrower or its Subsidiaries, as the case may be.

     6.3 Conduct of Business and Maintenance of Existence. Except as otherwise
permitted by Section 7.4 or described on Schedule 6.3, continue to engage in
business of the same general type as now conducted by it on the date hereof and
preserve, renew and keep in full force and effect its corporate existence and
take all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its business; comply with all
Contractual Obligations and Requirements of Law applicable to it except to the
extent that failure to comply therewith would not, in the aggregate, have a
Material Adverse Effect.

     6.4 Maintenance of Property; Insurance. Keep all material property useful
and necessary in its business in good working order and condition (ordinary wear
and tear excepted); maintain with financially sound and reputable insurance
companies insurance on all its material property in at least such amounts and
against at least such risks as are usually insured against in the same general
area by companies engaged in the same or a similar business; and furnish to the
Lender, upon written request, full information as to the insurance carried.

                                     - 26 -
<PAGE>

     6.5 Inspection of Property; Books and Records; Discussions. Keep proper
books of records and account in which full, true and correct entries in
conformity with GAAP and all Requirements of Law shall be made of all dealings
and transactions in relation to its businesses and activities; and permit the
Lender, during regular business hours and upon reasonable notice, to visit and
inspect any of its properties and examine and make abstracts from any of its
books and records at any time and as often as may be desired, and to discuss the
business, operations, properties and financial and other condition of the
Borrower and its Subsidiaries with officers and employees of the Borrower and
its Subsidiaries and with its independent certified public accountants.

     6.6 Notices. Give notice to Lender of:

          (a) immediately (and in any event within two (2) Business Days) after
     the Borrower knows or has reason to know thereof, the occurrence of any
     Default or Event of Default;

          (b) promptly, any default or event of default under any Contractual
     Obligation of the Borrower or any of its Subsidiaries which would
     reasonably be expected to have a Material Adverse Effect;

          (c) promptly, any litigation, or any investigation or proceeding
     (including, without limitation, any environmental proceeding) known to the
     Borrower, affecting the Borrower or any of its Subsidiaries which, if
     adversely determined, would reasonably be expected to have a Material
     Adverse Effect;

          (d) as soon as possible and in any event within 30 days after the
     Borrower knows or has reason to know thereof: (i) the occurrence or
     expected occurrence of any Reportable Event with respect to any Plan, a
     failure to make any required contribution to a Plan, the creation of any
     Lien in favor of the PBGC or a Plan or any withdrawal from, or the
     termination, Reorganization or Insolvency of, any Multiemployer Plan or
     (ii) the institution of proceedings or the taking of any other action by
     the PBGC or the Borrower or any Commonly Controlled Entity or any
     Multiemployer Plan with respect to the withdrawal from, or the terminating,
     Reorganization or Insolvency of, any Plan;

          (e) as soon as possible in advance of, and in any event before the
     effectiveness of, any proposed increase or decrease in the principal
     committed amount under or in respect of the GE Loan Agreement; and

          (f) promptly, any other development or event which would reasonably be
     expected to have a Material Adverse Effect; and

          (g) promptly, any amendment to the GE Loan Agreement.

Each notice pursuant to this subsection shall be accompanied by a statement of a
responsible officer setting forth details of the occurrence referred to therein
and stating what action the Borrower proposes to take with respect thereto.

                                     - 27 -
<PAGE>

     6.7 Environmental Laws.

          (a) Comply in all material respects with, and ensure compliance in all
     material respects by all tenants and subtenants, if any, with, all
     applicable Environmental Laws and obtain and comply in all material
     respects with and maintain, and ensure that all tenants and subtenants
     obtain and comply in all material respects with and maintain, any and all
     licenses, approvals, notifications, registrations or permits required by
     applicable Environmental Laws except to the extent that, with respect to
     all of the above, failure to do so would not reasonably be expected to have
     a Material Adverse Effect;

          (b) Conduct and complete all investigations, studies, sampling and
     testing, and all remedial, removal and other actions required under
     Environmental Laws and promptly comply in all material respects with all
     lawful orders and directives of all Governmental Authorities regarding
     Environmental Laws except to the extent that the same are being contested
     in good faith by appropriate proceedings and the pendency of such
     proceedings would not reasonably be expected to have a Material Adverse
     Effect; and

          (c) Defend, indemnify and hold harmless the Lender and its employees,
     agents, officers and directors, from and against any and all claims,
     demands, penalties, fines, liabilities, settlements, damages, costs and
     expenses of whatever kind or nature known or unknown, contingent or
     otherwise, arising out of, or in any way relating to the violation of,
     noncompliance with or liability under, any Environmental Law applicable to
     the operations of the Borrower, any of its Subsidiaries or the Properties,
     or any orders, requirements or demands of Governmental Authorities related
     thereto, including, without limitation, reasonable attorneys' fees and
     consultant's fees, investigation and laboratory fees, response costs, court
     costs and litigation expenses, except to the extent that any of the
     foregoing arise out of the gross negligence or willful misconduct of the
     party seeking indemnification therefor. The agreements in this paragraph
     shall survive repayment of the Note and all other amounts payable
     hereunder.

                                   ARTICLE 7

                               NEGATIVE COVENANTS

     The Borrower hereby covenants and agrees that on the Closing Date, and
thereafter for so long as this Credit Agreement is in effect and until the
Obligations are paid in full:

     7.1 Indebtedness. The Borrower will not, nor will it permit any Subsidiary
to, contract, create, incur, assume or permit to exist any Indebtedness, except:

          (a) Indebtedness arising or existing under this Credit Agreement and
     the other Credit Documents;

          (b) Indebtedness existing as of the Closing Date and set out in
     Schedule 7.1(b) and renewals, refinancings or extensions thereof in a
     principal amount not in excess of that outstanding as of the date of such
     renewal, refinancing or extension;

                                     - 28 -
<PAGE>

          (c) Indebtedness incurred after the Closing Date consisting of Capital
     Leases or Indebtedness incurred to provide all or a portion of the purchase
     price or cost of construction of an asset provided that (i) such
     Indebtedness when incurred shall not exceed the purchase price or cost of
     construction of such asset; (ii) no such Indebtedness shall be refinanced
     for a principal amount in excess of the principal balance outstanding
     thereon at the time of such refinancing; and (iii) the total aggregate
     principal amount of all such Indebtedness of the Borrower and its
     Subsidiaries, as a group, shall not exceed $5,000,000 at any time
     outstanding;

          (d) Indebtedness and obligations relating to currency protection
     agreements and commodity purchase or option agreements in order to manage
     existing or anticipated interest rate, exchange rate or commodity price
     risks and not for speculative purposes;

          (e) Subordinated Debt of the Borrower, the terms of subordination and
     other terms and provisions of which are acceptable to the Lender in its
     reasonable discretion;

          (f) Indebtedness incurred by the Borrower in connection with Permitted
     Sale-Leaseback Transactions, provided that the aggregate amount of such
     Indebtedness shall not exceed $5,000,000 at any time outstanding;

          (g) Indebtedness secured by Permitted Liens, except as otherwise
     limited by this Section; and

          (h) Indebtedness arising or existing under the GE Loan Agreement (and
     the documents relating thereto).

     7.2 Liens. The Borrower will not, nor will it permit any Subsidiary to,
contract, create, incur, assume or permit to exist any Lien with respect to any
of its property or assets of any kind (whether real or personal, tangible or
intangible), whether now owned or hereafter acquired, except for Permitted
Liens.

     7.3 Nature of Business. Except as described on Schedule 6.3 or as otherwise
permitted by Section 7.4, the Borrower will not, nor will it permit any
Subsidiary to, alter the character of its business in any material respect from
that conducted as of the Closing Date.

     7.4 Consolidation, Merger or Sale of Assets, etc. The Borrower will not,
nor will it permit any Subsidiary to,

          (a) dissolve, liquidate or wind up its affairs, sell, transfer, lease
     or otherwise dispose of any substantial part of its property or assets
     outside of the ordinary course of business or agree to do so at a future
     time except the following, without duplication, shall be expressly
     permitted:

               (i) Specified Sales;

               (ii) the sale, transfer, lease or other disposition of property
          or assets not in the ordinary course of business (other than Specified
          Sales), where and to the extent that such transaction is the result of
          a Recovery Event and the Net

                                     - 29 -
<PAGE>

          Proceeds therefrom are used to repair or replace damaged property or
          to purchase or otherwise acquire new assets or property provided that
          such purchase or acquisition is committed to within 120 days of
          receipt of the Net Proceeds from the Recovery Event and such purchase
          or acquisition is consummated within 180 days of such receipt; and

               (iii) the sale, lease or transfer of property or assets by a
          Subsidiary to the Borrower.

As used herein, "substantial part" shall mean property and assets, the book
value of which, when added to the book value of all other assets sold, leased or
otherwise disposed of by the Borrower and its Subsidiaries (other than in the
ordinary course of business), shall in any fiscal year exceed 10% of
Consolidated Tangible Assets, in each case determined as of the end of the
immediately preceding fiscal year; or

          (b) enter into any transaction of merger or consolidation, except for
     (i) the merger or consolidation of the Borrower with or into one of its
     Subsidiaries, provided that in any such case the Borrower shall be the
     surviving entity, and (ii) the merger or consolidation of any wholly-owned
     Subsidiary with or into any other wholly-owned Subsidiary or other entity
     which thereupon becomes a wholly-owned Subsidiary (subject to the terms of
     Section 7.8 hereof).

Lender will agree to terminate its Liens with respect to any sales or
dispositions otherwise permitted under this Agreement upon its receipt of any
Net Proceeds required hereunder.

     7.5 Advances, Investments and Loans. The Borrower will not, nor will it
permit any Subsidiary to, lend money or extend credit or make advances to any
Person, or purchase or acquire any stock, obligations or securities of, or any
other interest in, or make any capital contribution to, any Person except for
Permitted Investments.

     7.6 Guarantee Obligations. The Borrower will not, nor will it permit any
Subsidiary to, contract, create, incur, assume or permit to exist any Guarantee
Obligations, except Permitted Guarantee Obligations.

     7.7 Transactions with Affiliates. Except as permitted in subsection (iii)
of the definition of Permitted Investments and loans described on Schedule
7.1(b), the Borrower will not, nor will it permit any Subsidiary to, enter into
any transaction or series of transactions, whether or not in the ordinary course
of business, with any officer, director, shareholder or Affiliate other than on
terms and conditions substantially as favorable as would be obtainable in a
comparable arm's-length transaction with a Person other than an officer,
director, shareholder or Affiliate.

     7.8 Ownership of Subsidiaries. The Borrower will not, nor will it permit
any Subsidiary to, create, form or acquire a Subsidiary without the prior
written consent of the Lender.

     7.9 Fiscal Year. The Borrower will not, nor will it permit any Subsidiary
to, change its fiscal year, except with the prior written consent of the Lender.

                                     - 30 -
<PAGE>

     7.10 Prepayments of Indebtedness, etc. The Borrower will not, nor will it
permit any Subsidiary to,

          (a) after the issuance thereof, amend or modify, or permit the
     amendment or modification of, any of the terms of subordination or other
     terms or provisions relating to any Subordinated Debt; or

          (b) make (or give notice with respect thereto) any voluntary or
     optional payment or prepayment or redemption or acquisition for value
     including, without limitation, by way of depositing money or securities
     with the trustee with respect thereto before due for the purpose of paying
     when due) or refund, refinance or exchange of any Subordinated Debt
     permitted pursuant to Section 7.1.

As used herein, "Subordinated Debt" means any indebtedness for borrowed money
which by its terms is, or upon the happening of certain events may become,
subordinated in right of payment to the Obligations hereunder and other amounts
owing hereunder or in connection herewith; provided, that "Subordinated Debt"
shall not be deemed to include indebtedness evidenced by or arising under the GE
Loan Agreement.

     7.11 Dividends. The Borrower will not, nor will it permit any
non-wholly-owned Subsidiaries to, make any payment, distribution or dividend
(other than a dividend or distribution payable solely in stock or equity
interest of the Person making the dividend or distribution) on or any payment on
account of the purchase, redemption or retirement of, or any other distribution
on, any partnership interest, share of any class of stock or other ownership
interest in such Person if there shall exist any Default or Event of Default or
if the making of any such payment, dividend or distribution would cause a
Default or Event of Default to occur.

     7.12 Financial Covenants. Borrower will not breach or fail to comply with
any of the following financial covenants, each of which shall be calculated in
accordance with GAAP consistently applied:

          (a) Maximum Capital Expenditures. Borrower and its Subsidiaries on a
     consolidated basis shall not make Capital Expenditures during the following
     periods that exceed in the aggregate $3,500,000 in any fiscal year.

          (b) Minimum Tangible Net Worth. Borrower and its Subsidiaries on a
     consolidated basis shall have, at the end of each fiscal quarter set forth
     below, Tangible Net Worth equal to or greater than:

          $23,882,000 as of fiscal quarter ending on or about September 30,
          2001;

          $25,920,000 as of fiscal quarter ending on or about December 31, 2001;

          $21,920,000 as of fiscal quarter ending on or about March 31, 2002;

          $21,920,000 as of fiscal quarter ending on or about June 30, 2002;

          $23,920,000 as of fiscal quarter ending on or about September 30,
          2002;

                                     - 31 -
<PAGE>

          $25,920,000 as of fiscal quarter ending on or about December 31, 2002;

          $21,920,000 as of fiscal quarter ending on or about March 31, 2003;

          $21,920,000 as of fiscal quarter ending on or about June 30, 2003;

          $23,920,000 as of fiscal quarter ending on or about September 30,
          2003;

          $25,920,000 as of fiscal quarter ending on or about December 31, 2003;

          $21,920,000 as of the end of each fiscal quarter occurring thereafter.

                                   ARTICLE 8

                                EVENTS OF DEFAULT

     Upon the occurrence of any of the following events (each an "Event of
Default"):

          (a) The Borrower shall fail to pay any principal on the Note when due
     in accordance with the terms thereof or hereof; or the Borrower shall fail
     to pay any interest on the Note or any Fee or other amount payable
     hereunder when due in accordance with the terms thereof or hereof and such
     failure shall continue unremedied for five (5) Business Days; or

          (b) Any representation or warranty made or deemed made by the Borrower
     herein or in any of the other Credit Documents to which it is a party (or
     by Danner in any of the Credit Documents to which it is a party), or which
     is contained in any certificate, document or financial or other statement
     furnished by the Borrower or Danner at any time under or in connection with
     this Credit Agreement shall prove to have been incorrect, false or
     misleading in any material respect on or as of the date made or deemed
     made; or

          (c) The Borrower shall (i) default in the due performance or
     observance of Sections 6.1, 6.2, 6.3, 7.1, 7.2, 7.4, 7.6, 7.10, 7.11 or
     7.12 or (ii) default in the observance or performance of any other term,
     covenant or agreement contained in this Credit Agreement (other than as
     described in subsections 8(a), 8(b) or 8(c)(i) above), and such default
     shall continue unremedied for a period of 30 days or more after written
     notice thereof from the Lender; or

          (d) An Event of Default (as defined in the GE Loan Agreement) shall
     have occurred under or in respect of the GE Loan Agreement, including
     without limitation, a default under Section 5.10 thereof; or

          (e) The Borrower or any of its Subsidiaries shall (i) default in any
     payment of principal of or interest on any Indebtedness (other than the
     Note) in a principal amount outstanding of at least $500,000 in the
     aggregate for the Borrower and its Subsidiaries or in the payment of any
     matured Guarantee Obligation in a principal amount outstanding of at least
     $500,000 in the aggregate for the Borrower and its Subsidiaries beyond the
     period

                                     - 32 -
<PAGE>

     of grace (not to exceed 30 days), if any, provided in the instrument or
     agreement under which such Indebtedness or Guarantee Obligation was created
     and such Indebtedness or Guarantee Obligation has matured by its terms or
     is accelerated or is overtly threatened to be accelerated (except any such
     matured Guarantee Obligations which the Borrower and its Subsidiaries are
     disputing in good faith and for which they have established adequate
     reserves); or (ii) default in the observance or performance of any other
     agreement or condition relating to any such Indebtedness in a principal
     amount outstanding of at least $500,000 in the aggregate for the Borrower
     and its Subsidiaries or Guarantee Obligation in a principal amount
     outstanding of at least $500,000 in the aggregate for the Borrower and its
     Subsidiaries or contained in any instrument or agreement evidencing,
     securing or relating thereto, or any other event shall occur or condition
     exist, the effect of which default or other event or condition is to cause,
     or the holder or holders of such Indebtedness or beneficiary or
     beneficiaries of such Guarantee Obligation or a trustee or Lender on behalf
     of such holder or holders or beneficiary or beneficiaries shall cause or
     overtly threaten to cause, with the giving of notice if required, such
     Indebtedness to become due prior to its stated maturity or such Guarantee
     Obligation to become payable; or

          (f) (i) The Borrower shall commence any case, proceeding or other
     action (A) under any existing or future law of any jurisdiction, domestic
     or foreign, relating to bankruptcy, insolvency, reorganization or relief of
     debtors, seeking to have an order for relief entered with respect to it, or
     seeking to adjudicate it a bankrupt or insolvent, or seeking
     reorganization, arrangement, adjustment, winding-up, liquidation,
     dissolution, composition or other relief with respect to it or its debts,
     or (B) seeking appointment of a receiver, trustee, custodian, conservator
     or other similar official for it or for all or any substantial part of its
     assets, or the Borrower shall make a general assignment for the benefit of
     its creditors; or (ii) there shall be commenced against the Borrower any
     case, proceeding or other action of a nature referred to in clause (i)
     above which (X) results in the entry of an order for relief or any such
     adjudication or appointment or (Y) remains undismissed, undischarged or
     unbonded for a period of 60 days; or (iii) there shall be commenced against
     the Borrower any case, proceeding or other action seeking issuance of a
     warrant of attachment, execution, distraint or similar process against all
     or any substantial part of its assets which results in the entry of an
     order for any such relief which shall not have been vacated, discharged, or
     stayed or bonded pending appeal within 60 days from the entry thereof; or
     (iv) the Borrower shall take any action in furtherance of, or indicating
     its consent to, approval of, or acquiescence in, any of the acts set forth
     in clause (i), (ii), or (iii) above; or (v) the Borrower shall generally
     not, or shall be unable to, or shall admit in writing its inability to, pay
     its debts as they become due; or

          (g) One or more judgments or decrees shall be entered against the
     Borrower and such judgments or decrees shall not have been paid and
     satisfied, vacated, discharged, stayed or bonded pending appeal within 60
     days from the entry thereof and involve in the aggregate a liability (to
     the extent not paid when due or covered by insurance) of $500,000 or more;
     or

                                     - 33 -
<PAGE>

          (h) (i) Any Person shall engage in any "prohibited transaction" (as
     defined in Section 406 of ERISA or Section 4975 of the Code) involving any
     Plan, (ii) any "accumulated funding deficiency" (as defined in Section 302
     of ERISA), whether or not waived, shall exist with respect to any Plan or
     any Lien in favor of the PBGC or a Plan shall arise on the assets of the
     Borrower or any Commonly Controlled Entity, (iii) a Reportable Event shall
     occur with respect to, or proceedings shall commence to have a trustee
     appointed, or a trustee shall be appointed, to administer or to terminate,
     any Single Employer Plan, which Reportable Event or commencement of
     proceedings or appointment of a trustee is, in the reasonable opinion of
     the Lender, likely to result in the termination of such Plan for purposes
     of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for
     purposes of Title IV of ERISA, (v) the Borrower, any of its Subsidiaries or
     any Commonly Controlled Entity shall, or in the reasonable opinion of the
     Lender is likely to, incur any liability in connection with a withdrawal
     from, or the Insolvency or Reorganization of, any Multiemployer Plan or
     (vi) any other similar event or condition shall occur or exist with respect
     to a Plan; and in each case in clauses (i) through (vi) above, such event
     or condition, together with all other such events or conditions, if any,
     could reasonably be expected to have a Material Adverse Effect; or

          (i) Any Credit Document shall fail to be in full force and effect or
     to give the Lender the rights, powers and privileges reasonably purported
     to be created thereby;

     Then, and in any event, (A) if such event is an Event of Default specified
     in paragraph (f) above, automatically the Term Loan (with accrued interest
     thereon), and all other amounts owing under this Credit Agreement and the
     other Credit Documents shall immediately become due and payable, and (B) if
     such event is any other Event of Default, the Lender may, by notice to the
     Borrower, declare the Term Loan to be terminated forthwith, whereupon the
     Term Loan (with accrued interest thereon) and all other amounts owing under
     this Credit Agreement and the Credit Documents shall immediately become due
     and payable. Except as expressly provided above in this Section 9,
     presentment, demand, protest and all other notices of any kind are hereby
     expressly waived.

                                   ARTICLE 9

                                  MISCELLANEOUS

     9.1 Amendments and Waivers. Neither this Credit Agreement, nor the Note,
nor any of the other Credit Documents, nor any terms hereof or thereof may be
amended, supplemented, waived or modified except in accordance with the
provisions of this subsection. The Lender may, from time to time, (a) enter into
with the Borrower or Danner, as applicable, written amendments, supplements or
modifications hereto and to the other Credit Documents for the purpose of
adding, amending or deleting any provisions of this Credit Agreement or the
other Credit Documents or (b) waive, on such terms and conditions as the Lender
may specify in such instrument, any of the requirements of this Credit Agreement
or the other Credit Documents or any Default or Event of Default and its
consequences. Any such waiver, amendment, supplement or modification shall be
binding upon the Borrower or Danner, as applicable, and the Lender and all
future holders of the Note. In the case of any waiver, the Borrower and the

                                     - 34 -
<PAGE>

Lender shall be restored to their former position and rights hereunder and under
the Term Loan and Note and other Credit Documents, and any Default or Event of
Default waived shall be deemed to be cured and not continuing; but no such
waiver shall extend to any subsequent or other Default or Event of Default, or
impair any right consequent thereon.

     9.2 Notices. Except as otherwise provided in Article 3, all notices,
requests and demands to or upon the respective parties hereto to be effective
shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made (i) when
delivered by hand, (ii) when transmitted via telecopy (or other facsimile
device) on a Business Day between the hours of 8:30 A.M. and 5:00 P.M.
(Milwaukee, Wisconsin time) or on the following Business Day (if sent after 5:00
P.M. Milwaukee, Wisconsin time) to the number set out herein, (iii) the day
following the day on which the same has been delivered prepaid to a reputable
national overnight air courier service, or (iv) the third Business Day following
the day on which the same is sent by certified or registered mail, postage
prepaid, in each case, addressed as follows in the case of the Borrower and the
Lender, or to such other address as may be hereafter notified by the respective
parties hereto and any future holders of the Note:

          The Borrower:                 LaCrosse Footwear, Inc.
                                        1407 St. Andrew Street
                                        LaCrosse, Wisconsin  54602
                                        Attn: Robert J. Sullivan
                                        Phone: (608) 782-3020
                                        Fax: (608) 782-1733

                                        with a copy to:

                                        Foley & Lardner
                                        777 E. Wisconsin Avenue
                                        Milwaukee, Wisconsin 53202
                                        Attn: Luke E. Sims
                                        Phone: (414) 297-5680
                                        Fax: (414) 297-4900

          The Lender:                   Firstar Bank, N.A.
                                        777 E. Wisconsin Avenue
                                        Milwaukee, Wisconsin 53202
                                        Attn:  David Hirsch
                                        Phone: (414) 765-4248
                                        Fax: (414) 765-4632

                                     - 35 -
<PAGE>

                                        with a copy to:

                                        Quarles & Brady LLP
                                        411 E. Wisconsin Avenue
                                        Milwaukee, Wisconsin 53202-4497
                                        Attn:  David L. Bourne
                                        Phone: (414) 277-5343
                                        Fax: (414) 271-3552

     9.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Lender, any right, remedy, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

     9.4 Survival of Representations and Warranties. All representations and
warranties made hereunder and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Credit Agreement and the Note and the making of the Term
Loan, provided that all such representations and warranties shall terminate on
the date upon which all amounts owing hereunder and under the Term Note have
been paid in full.

     9.5 Payment of Expenses and Taxes. The Borrower agrees (a) to pay or
reimburse the Lender for the costs and expenses of its counsel incurred in
connection with the preparation and execution of the Credit Documents and the
consummation of the transactions contemplated thereby in an amount not to exceed
$10,000 and to pay or reimburse the Lender for all of its reasonable costs and
expenses (including reasonable attorneys' fees) incurred in connection with any
amendment, supplement or modification to the Credit Documents and any other
documents prepared in connection herewith or therewith,(b) to pay or reimburse
the Lender for all its costs and expenses incurred in connection with the
enforcement or preservation of any rights under this Credit Agreement and any
other Credit Documents, including, without limitation, the reasonable fees and
disbursements of counsel to the Lender (including reasonable allocated costs of
in-house legal counsel), (c) on demand, to pay, indemnify, and hold the Lender
and its Affiliates harmless from, any and all recording and filing fees and any
and all liabilities with respect to, or resulting from any delay in paying,
stamp, excise and other similar taxes, if any, which may be payable or
determined to be payable in connection with the execution and delivery of, or
consummation or administration of any of the transactions contemplated by, or
any amendment, supplement or modification of, or any waiver or consent under or
in respect of, the Credit Documents and any such other documents, and (d) to
pay, indemnify, and hold the Lender and its Affiliates, officers, directors,
shareholders, employees and agents harmless from and against, any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever with respect
to the execution, delivery, enforcement, performance and administration of the
Credit Documents and any such other documents and the use, or proposed use, of
proceeds of the Term Loan (all the foregoing, collectively, the "Indemnified
Liabilities"); provided, however, that the Borrower shall not have any
obligation hereunder to the Lender with respect to Indemnified Liabilities

                                     - 36 -
<PAGE>

arising from (i) the gross negligence or willful misconduct of the Lender, or
(ii) the violation by the Lender of an express provision of the Credit
Documents, if so determined by a final judgment of a court of competent
jurisdiction. The agreements in this Section 9.5 shall survive repayment of the
Term Loan, the Note and all other amounts payable hereunder.

     9.6 Successors and Assigns. This Credit Agreement shall be binding upon and
inure to the benefit of the Borrower and the Lender, all future holders of the
Note and their respective successors and assigns, except that the Borrower may
not assign or transfer any of its rights or obligations under this Credit
Agreement or the other Credit Documents to which it is a party without the prior
written consent of the Lender and the Lender may not assign or transfer any of
its rights or obligations under this Credit Agreement or the other Credit
Documents without the prior written consent of the Borrower, in each case, which
consent shall not be unreasonably withheld.

     9.7 Set-off. In addition to any rights and remedies of the Lender provided
by law (including, without limitation, other rights of set-off), the Lender
shall have the right, without prior notice to the Borrower, any such notice
being expressly waived by the Borrower to the extent permitted by applicable
law, upon the occurrence and during the continuance of any Event of Default, to
setoff and appropriate and apply any and all deposits (general or special, time
or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by the Lender or any Affiliate, branch or agency thereof to or for the
credit or the account of the Borrower, or any part thereof in such amounts as
the Lender may elect, against and on account of the obligations and liabilities
of the Borrower to the Lender hereunder and claims of every nature and
description of the Lender against the Borrower, in any currency, whether arising
hereunder, under the Note or under any documents contemplated by or referred to
herein or therein, as the Lender may elect, whether or not the Lender has made
any demand for payment. The aforesaid right of set-off may be exercised by the
Lender against the Borrower or against any trustee in bankruptcy, debtor in
possession, assignee for the benefit of creditors, receiver or execution,
judgment or attachment creditor of the Borrower, or against anyone else claiming
through or against the Borrower or any such trustee in bankruptcy, debtor in
possession, assignee for the benefit of creditors, receiver, or execution,
judgment or attachment creditor, notwithstanding the fact that such right of
set-off shall not have been exercised by the Lender prior to the occurrence of
any Event of Default. The Lender agrees promptly to notify the Borrower after
any such set-off and application made by the Lender; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and
application.

     9.8 Confidentiality. The Lender shall use its best efforts to hold in
confidence any material nonpublic information delivered or made available to it
by the Borrower. Notwithstanding the foregoing, nothing herein shall prevent the
Lender from disclosing any information delivered or made available to it by the
Borrower (a) to the Lender's Affiliates, (b) upon the order of any court or
administrative agency, (c) upon the request or demand of any regulatory agency
or authority, (d) which has been publicly disclosed other than as a result of a
disclosure by the Lender which is not permitted by this Credit Agreement, (e) to
the extent reasonably required in connection with any litigation to which the
Lender or any of its Affiliates may be a party, along with the Borrower, any
Subsidiary or any of their respective Affiliates,

                                     - 37 -
<PAGE>

(f) to the extent reasonably required in connection with the exercise of any
right or remedy under this Credit Agreement, and (g) to the Lender's legal
counsel and financial consultants and independent auditors.

     9.9 Table of Contents and Section Headings. The table of contents and the
Section and subsection headings herein are intended for convenience only and
shall be ignored in construing this Credit Agreement.

     9.10 Counterparts. This Credit Agreement may be executed by one or more of
the parties to this Credit Agreement on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument

     9.11 Severability. Any provision of this Credit Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     9.12 Integration. This Credit Agreement, the Note and the other Credit
Documents represent the agreement of the Borrower and the Lender with respect to
the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Borrower or the Lender relative to the
subject matter hereof not expressly set forth or referred to herein or in the
Note.

     9.13 Governing Law. This Credit Agreement and the Note and the rights and
obligations of the parties under this Credit Agreement and the Note shall be
governed by, and construed and interpreted in accordance with, the internal laws
of the State of Wisconsin without giving effect to its conflicts of law
provisions.

     9.14 Consent to Jurisdiction and Venue. All judicial proceedings brought
against the Borrower with respect to this Credit Agreement, the Note or any of
the other Credit Documents shall be brought in any state or federal court of
competent jurisdiction in the State of Wisconsin, and, by execution and delivery
of this Credit Agreement, the Borrower accepts, for itself and in connection
with its properties, generally and unconditionally, the exclusive jurisdiction
of the aforesaid courts and irrevocably agrees to be bound by any final judgment
rendered thereby in connection with this Credit Agreement from which no appeal
has been taken or is available. The Borrower and the Lender irrevocably waive
any objection, including, without limitation, any objection to the laying of
venue or based on the grounds of forum non conveniens which it may now or
hereafter have to the bringing of any such action or proceeding in any such
jurisdiction. Nothing herein shall limit the right of the Lender to bring
proceedings against the Borrower in the court of any other jurisdiction.

     9.15 Acknowledgments. The Borrower hereby acknowledges that:

          (a) it has been advised by counsel in the negotiation, execution and
     delivery of each Credit Document;

                                     - 38 -
<PAGE>

          (b) the Lender does not have any fiduciary relationship with or duty
     to the Borrower arising out of or in connection with this Credit Agreement
     and the relationship between the Lender, on one hand, and the Borrower, on
     the other hand, in connection herewith is solely that of debtor and
     creditor; and

          (c) no joint venture exists between the Borrower and the Lender.

     9.16 Waivers of Jury Trial. THE BORROWER AND THE LENDER HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS CREDIT AGREEMENT OR ANY
OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

     9.17 Limitation of Liability. THE BORROWER AND THE LENDER HEREBY WAIVE ANY
RIGHT ANY OF THEM MAY HAVE TO CLAIM OR RECOVER FROM THE OTHER PARTY ANY
EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

                                     - 39 -
<PAGE>

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of
this Credit Agreement to be duly executed and delivered as of the date first
above written.

     BORROWER:                          LACROSSE FOOTWEAR, INC.,
     --------
                                        a Wisconsin corporation

                                        By: /s/ Robert J. Sullivan
                                           ---------------------------------
                                        Title: VP-Finance and Administration
                                                and Chief Financial Officer
                                             ------------------------------

     LENDER:                            FIRSTAR BANK, N.A.
     ------

                                        By: /s/ David Hirsch
                                           ---------------------------------
                                        Title: Vice President
                                               -----------------------------

                                     - 40 -Exhibit 4.1

                                                               Execution Version

                SHARE PURCHASE AND REGISTRATION RIGHTS AGREEMENT

                                  BY AND AMONG

                             THE MARCUS CORPORATION,

                 the Ben and Celia Marcus 1992 REVOCABLE Trust,

            LORD ABBETT RESEARCH FUND, INC. - SMALL-CAP VALUE SERIES,

         LORD ABBETT SECURITIES TRUST - LORD ABBETT MICRO-CAP VALUE FUND

                                       and

            LORD ABBETT SECURITIES TRUST - LORD ABBETT ALL VALUE FUND

<PAGE>

                                TABLE OF CONTENTS

Article I      Agreement to Sell and Purchase Shares.........................  2

Article II     Representations and Warranties................................  3

Article III    Shelf Registration............................................  6

Article IV     Obligations of the Company....................................  8

Article V      Further Cooperation; Confidentiality..........................  8

Article VI     Indemnification in Connection with Resale Shelf
                Registration Statements and This Agreement...................  9

Article VII    Additional Matters............................................ 11

Exhibits
--------

Exhibit A      Purchaser Information; Trust Account

Appendix
--------

Appendix I     Questionnaire

Appendix II    Purchaser's Certificate of Subsequent Sale

<PAGE>

     THIS SHARE PURCHASE AND REGISTRATION RIGHTS AGREEMENT is dated as of July
16, 2001 ("Agreement") by and between THE MARCUS CORPORATION, a Wisconsin
corporation ("Company"), THE BEN AND CELIA MARCUS 1992 REVOCABLE TRUST
("Trust"), and the parties set forth on Exhibit A (each a "Purchaser" and
together the "Purchasers").

                              W I T N E S S E T H :

     A. WHEREAS, the Trust desires to sell to Purchasers and Purchasers desire
to buy from the Trust a total of 1,750,000 shares ("Shares") of the Company's
common stock, $1.00 par value ("Company Common Stock"), pursuant to the terms
and conditions hereinafter set forth.

     B. WHEREAS, the Company believes that the sale of the Shares to the
Purchasers is in the best interest of the Company and its shareholders because
(i) if the Shares were sold by the Trust in the secondary trading market instead
of pursuant to this Agreement, such sales would likely have a significant
adverse impact on the market price of the Company Common Stock and (ii) the sale
of the Shares to the Purchasers pursuant to this Agreement will increase the
percentage of Company Common Stock held by long-term institutional holders.

     C. WHEREAS, to facilitate the Purchasers' purchase of the Shares from the
Trust pursuant to this Agreement, and, in light of the benefits to be realized
to the Company as a result of such transaction as described in Recital B, the
Company desires to allow the Purchasers certain rights to publicly resell the
Shares pursuant to a shelf registration statement which shall be filed by the
Company with the Securities and Exchange Commission ("Commission") under the
Securities Act of 1933, as amended (the "Act")within thirty (30) days after the
date of this Agreement pursuant to the terms and conditions hereinafter set
forth.

     NOW, THEREFORE, in consideration of the mutual covenants and promises
herein made and mutual benefits to be derived from this Agreement, it is hereby
agreed as follows:

               ARTICLE I  AGREEMENT TO SELL AND PURCHASE SHARES.

     Section 1.1. Subject to the terms and conditions of this Agreement, each
Purchaser is hereby purchasing and accepting from the Trust, and the Trust is
hereby selling, assigning, transferring and delivering to each Purchaser that
number of Shares set forth opposite each Purchaser's name on Exhibit A attached
hereto.

     Section 1.2. The Trust is hereby delivering, or causing to be delivered to
the Purchasers, certificates representing the Shares set forth opposite each
Purchaser's name on Exhibit A. Delivery of the certificates representing the
Shares shall be made to the accounts designated by the Purchasers on Exhibit A
through the facilities of the Depository Trust Company.

     Section 1.3. The cash purchase price of each Share shall be ten dollars and
seventy-five cents ($10.75) and the aggregate cash purchase price for all of the
Shares shall be eighteen million eight hundred twelve thousand and five hundred
dollars ($18,812,500.00) (the "Aggregate Purchase Price"). The Purchasers are
hereby delivering, or causing to be delivered,

                                       2
<PAGE>

the Aggregate Purchase Price by wire transfer of immediately available funds to
the account designated by the Trust on Exhibit A.

                  ARTICLE II  REPRESENTATIONS AND WARRANTIES.

     Section 2.1. Representations and Warranties of the Trust. The Trust hereby
represents and warrants to the Purchasers and the Company as follows:

     (a) The Trust has full power, legal right, capacity and authority to enter
into, execute and deliver this Agreement and to carry out the transactions
contemplated hereby.

     (b) The Trust has, and each Purchaser is receiving, good and marketable
title to the Shares being sold to such Purchaser hereunder, free and clear of
all liens, including, without limitation, voting trusts or agreements, proxies,
marital or community property interests.

     (c) The execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated in this Agreement and the
fulfillment of the terms of this Agreement have been duly authorized by all
necessary action by and on behalf of the Trust and will not conflict with or
constitute a breach of, or default under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the
Trust pursuant to any contract, indenture, mortgage, loan agreement, deed,
trust, note, lease, sublease, voting agreement, voting trust or other instrument
or agreement to which the Trust is a party or by which it may be bound, or to
which any of the property or assets of the Trust is subject, nor will such
action result in any violation of the provisions of the Trust Agreement of the
Trust or any applicable Wisconsin or federal statute, law, rule, regulation,
ordinance, decision, directive or order.

     (d) This Agreement has been duly executed and delivered by the Trust and
constitutes a valid and binding obligation of the Trust, enforceable against it
in accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
enforcement of creditors' rights generally and except as such enforcement is
subject to general principles of equity.

     Section 2.2. Representations and Warranties of the Company. The Company
hereby represents and warrants to the Purchasers and to the Trust as follows:

     (a) The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Wisconsin. The
Company has full power, legal right, capacity and authority to enter into,
execute and deliver this Agreement and to carry out the transactions
contemplated hereby.

                                       3
<PAGE>

     (b) As of their respective dates, the (i) Form 10-K Annual Report filed by
Company for the fiscal year ended May 25, 2000, (ii) Company's 2000 Annual
Report to Shareholders, (iii) Company's Proxy Statement for its 2000 annual
meeting of shareholders, (iv) the Form 10-Q Quarterly Reports filed by Company
on October 6, 2000, January 8, 2001 and April 9, 2001, and (v) as to (ii) below,
the Confidential Information Memorandum dated as of May 2001 (the "Confidential
Information Memorandum"):

          (i)  complied in all material respects with the provisions of the
     Securities Exchange Act of 1934 (as amended) and the Commission's rules and
     regulations promulgated thereunder; and

          (ii) did not contain any untrue statement of material fact or omit to
     state any material fact necessary to make the statements therein not
     misleading in any material respect (provided, however, that the Company
     makes no representations or warranties as to the financial forecasts for
     the Company or the Baird Research Model contained in the Confidential
     Information Memorandum other than that such forecasts and such Model were
     based on reasonable and good faith estimates and assumptions).

     (c) Since February 22, 2001, or as otherwise specifically disclosed by the
Company to representatives of the Purchasers on their telephone conference call
held on July 3, 2001 or to the public generally by press release, there has not
been any change in the assets, liabilities, financial condition, capitalization
or operating results of the Company from that reflected in the documents listed
in Section 2.2(b) above, except changes that have not been and are not
reasonably likely to be materially adverse to the Company.

     (d) The Company's transfer agent has received 282,125 shares of the
Company's Common Stock and 1,467,875 shares of the Company's Class B Common
Stock from the Trust and, according to the Company's articles of incorporation,
the shares of the Company's Class B Common Stock will automatically be converted
into Company Common Stock when sold to the Purchasers hereunder. The 1,750,000
Shares to be transferred to the Purchasers pursuant to the terms of this
Agreement, were duly authorized and validly issued by the Company and are
included for listing by the Company on the New York Stock Exchange.

     (e) The execution, delivery and performance of this Agreement by the
Company and the consummation of the transactions contemplated in this Agreement
by the Company and the fulfillment of the terms of this Agreement by the Company
have been duly authorized by the Company by all necessary corporate action and
will not conflict with or constitute a breach of, or default under, or result in
the creation or imposition of any lien, charge or encumbrance upon any property
or assets of the Company pursuant to, any contract, indenture, mortgage, loan
agreement, deed, trust, note, lease, sublease, voting agreement, voting trust or
other instrument or agreement to which the Company is a party or by which it may
be bound, or to which any of the property or assets of the Company is subject;
and will not result in any violation of the provisions of the articles of
incorporation or bylaws of the Company or any applicable statute, law, rule,
regulation, ordinance, decision, directive or order.

                                       4
<PAGE>

     (f) This Agreement has been duly executed and delivered by the Company and
constitutes a valid and binding obligation of the Company, enforceable against
it in accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
enforcement of creditors' rights generally and except as such enforcement is
subject to general principles of equity.

     (g) Except as set forth in this Agreement, the Company has not granted any
registration rights to any person or entity.

     Section 2.3. Representations and Warranties of Purchasers. Purchasers
hereby represent and warrant to the Company and the Trust as follows:

     (a) Purchasers are knowledgeable, sophisticated and experienced in making,
and are qualified to make, decisions with respect to investments in equity
securities representing an investment decision like that involved in the
purchase of the Shares, and have requested, received, reviewed and considered
all information they deem relevant in making a fully informed investment
decision to purchase the Shares.

     (b) Purchasers are acquiring the Shares in the ordinary course of their
business and for their own account for investment only, and have no (i) present
intention of distributing any of the Shares or (ii) any arrangement or
understanding with any other persons regarding the distribution of such Shares
within the meaning of Section 2(a)(11) of the Act, other than as contemplated by
this Agreement.

     (c) Purchasers will not, directly or indirectly, offer, sell, pledge,
transfer or otherwise dispose of (or solicit any offers to buy, purchase or
otherwise acquire or take a pledge of) any of the Shares, except in compliance
with the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), the
Act and the Commission's rules and regulations promulgated thereunder ("Rules
and Regulations") and, if sold pursuant to the Resale Shelf Registration
Statement (as defined below), in compliance with a method of distribution
described therein.

     (d) Purchasers have completed or caused to be completed the Questionnaire,
attached to this Agreement as Appendix I and the information contained in the
Questionnaire is true and correct as of the date of this Agreement and will be
true and correct as of the effective date under the Act with the Commission of
the Resale Shelf Registration Statement; provided, however, that Purchasers
shall be entitled to update such information by providing notice thereof to the
Company before the effective date under the Act of such Resale Shelf
Registration Statement.

     (e) Purchasers have, in connection with their decisions to purchase the
Shares, relied solely upon documents filed by the Company with the Commission,
the Confidential Information Memorandum, the information specifically disclosed
by the Company to representatives of the Purchasers on their telephone
conference call held on July 3, 2001 and the representations and warranties of
the Trust and the Company contained in this Agreement.

     (f) Purchasers are "accredited investors" within the meaning of Rule
501(a)(1), (2), (3) or (7) of Regulation D promulgated under the Act.

                                       5
<PAGE>

     (g) Purchasers have full power, legal right, capacity and authority to
enter into, execute and deliver this Agreement and to carry out the transactions
contemplated hereby.

     (h) Purchasers do not currently own any shares of the Company Common Stock
and, other than this Agreement, they have not entered into any agreement
(whether preliminary or definitive) to purchase any Company Common Stock.

     (i) The execution, delivery and performance of this Agreement by the
Purchasers and the consummation of the transactions contemplated in this
Agreement by the Purchasers and the fulfillment of the terms of this Agreement
by the Purchasers have been duly authorized by all necessary corporate action by
the Purchasers and will not conflict with or constitute a breach of, or default
under, or result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Purchasers pursuant to, any
contract, indenture, mortgage, loan agreement, deed, trust, note, lease,
sublease, voting agreement, voting trust or other instrument or agreement to
which the Purchasers are a party or by which they may be bound, or to which any
of the property or assets of the Purchasers are subject, nor will such action
result in any violation of the provisions of the charter or bylaws of the
Purchasers or any applicable statute, law, rule, regulation, ordinance,
decision, directive or order.

     (j) This Agreement has been duly executed and delivered by Purchasers and
constitutes a valid and binding obligation of the Purchasers, enforceable
against them in accordance with its terms, except as such enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting enforcement of creditors' rights generally and except as such
enforcement is subject to general principles of equity.

                        ARTICLE III   SHELF REGISTRATION.

     Section 3.1. The Company shall, within thirty (30) days from the date of
this Agreement, file with the Commission (and all applicable state securities
authorities) under Rule 415 of the Act a Form S-3 resale shelf Registration
Statement covering the Purchasers' resale of the Shares pursuant to the methods
of distribution set forth therein ("Resale Shelf Registration Statement"). For
purposes of the registration rights set forth in Article III of this Agreement,
the term "Shares" shall include the Shares and any securities (as that term is
defined in Section 2(a)(1) of the Act) issuable or issued or distributed in
respect of the Shares by way of a stock dividend or stock split or in connection
with a combination of shares, recapitalization, reorganization, merger,
consolidation and otherwise.

     Section 3.2. Subject to Section 3.4, the Company shall use its commercially
reasonably best efforts to:

     (a) have the Resale Shelf Registration Statement declared effective under
the Act by the Commission (and under applicable state securities laws by all
applicable state securities authorities) within ninety (90) days of the date of
this Agreement; and

     (b) keep the Resale Shelf Registration Statement continuously effective
until the earlier of (i) the second anniversary of the date of this Agreement or
(ii) the date that all of the Shares have been sold.

                                       6
<PAGE>

     Section 3.3. The Company may include, from time to time or at any time, as
part of the Resale Shelf Registration Statement, additional shares of Company
Common Stock proposed to be sold by the Company and/or other holders of Company
Common Stock (or its equivalent or securities convertible thereinto); provided,
however, that the rights of the Company and/or such other holders of Company
Common Stock (or its equivalent or securities convertible thereinto) to include
Company Common Stock (or its equivalent or securities convertible thereinto)
under such Resale Shelf Registration Statement shall be subordinate in all
respects to the prior rights of the Purchasers to include their Shares
thereunder if a conflict of interests thereunder shall occur among such parties.

     Section 3.4. The Company shall be entitled, in its reasonable judgment,
from time to time or at any time, to suspend resales under the Resale Shelf
Registration Statement for up to forty-five (45) days at a time if (i) events or
circumstances at or affecting the Company would make the Resale Shelf
Registration Statement inaccurate or misleading in any material respect and (ii)
it would, in the reasonable judgment of the Company, be imprudent for the
Company to amend the Resale Shelf Registration Statement at that time; provided,
however, that in computing the period for which the Company is required to
maintain effectiveness of such Resale Shelf Registration Statement, the period
of any such suspension shall not be included; and provided further that the
Company shall not suspend resales under the Resale Shelf Registration Statement
for more than ninety (90) days during any calendar year. The Company shall give
prompt written notice to the Purchasers of each such suspension and shall
likewise give prompt written notice to the Purchasers of termination of each
suspension. The Purchasers hereby agree that they will not sell any Shares
pursuant to said prospectus during the period commencing at the time at which
the Purchaser receives written notice of the suspension period from the Company
and ending at the earliest to occur of the following: (i) the time that the
Purchaser receives written notice from the Company that the Purchaser may
thereafter effect sales pursuant to said prospectus; or (ii) the completion of
the applicable suspension period.

     Section 3.5. The Purchasers hereby covenant with the Company not to make
any sale of the Shares without satisfying the requirements of the Exchange Act,
the Act and the Rules and Regulations, including, in the event of any resale
under the Resale Shelf Registration Statement, the methods of resale set forth
in the Resale Shelf Registration Statement and the prospectus delivery
requirements under the Act.

     Section 3.6. The Purchasers acknowledge and agree that the Shares are not
transferable on the books of the Company pursuant to a resale under the Resale
Shelf Registration Statement unless the certificate submitted to the transfer
agent evidencing the Shares is accompanied by a separate officer's certificate:

     (a) in the form of Appendix II to this Agreement;

     (b) executed by an officer of, or other authorized person designated by,
the applicable Purchaser; and

     (c) to the effect that (i) the Shares have been sold in accordance with the
Resale Shelf Registration Statement and (ii) the requirement of delivering a
current prospectus has been satisfied.

                                       7
<PAGE>

     Section 3.7. The Company and the Trust, in such proportion as they shall
mutually agree, shall pay all costs and expenses incurred in connection with any
such Resale Shelf Registration Statement (including, without limitation, all
legal and accounting fees and expenses incurred by the Company, and all printing
costs and filing fees incurred in connection with such registration). Except as
set forth in Section 7.1, the Purchasers shall pay (i) the expenses of any
attorneys, accountants or other advisors or professionals which they engage in
connection with the sale of Shares pursuant to the Resale Shelf Registration
Statement and (ii) all brokerage commissions, fees, discounts and transfer
taxes, if any, associated with the Shares being sold by the Purchasers pursuant
to the Resale Shelf Registration Statement.

                    ARTICLE IV   OBLIGATIONS OF THE COMPANY

     Section 4.1. Whenever required under Article III hereof to effect the
registration of the Shares, the Company shall as expeditiously as possible:

     (a) prepare and file with the Commission such amendments and supplements to
the Resale Shelf Registration Statement and the prospectus used in connection
therewith as may be necessary to comply with the provisions of the Act with
respect to the disposition of all Shares covered by such Resale Shelf
Registration Statement and to keep it effective until the earlier of the dates
specified in Section 3.2(b) hereof;

     (b) subject to Section 3.4 hereof, prepare and promptly file with the
Commission and promptly notify the Purchasers of the filing of, such amendment
or supplement to the Resale Shelf Registration Statement and the prospectus as
may be necessary to correct any statements or omissions if, at any time when a
prospectus relating to the Shares is required to be delivered under the Act, any
event has occurred the result of which is that any such prospectus then in
effect would include an untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading;

     (c) advise Purchasers promptly after the Company shall have received notice
or obtained knowledge of the issuance of any stop order by the Commission
suspending the effectiveness of such registration statement or the initiation of
any proceeding for that purpose and promptly use its commercially reasonable
best efforts to prevent the issuance or obtain the withdrawal of any stop order;

     (d) furnish to Purchasers such number of copies of prospectuses and
preliminary prospectuses in conformity with the requirements of the Act and such
other publicly available documents with respect to the Company as Purchasers may
reasonably request, in order to facilitate the public sale or other disposition
of all or any of the Shares by the Purchasers; and

     (e) use its best efforts to register and qualify the Shares covered by the
Resale Shelf Registration Statement under such other securities and blue sky
laws in such states reasonably requested by the Purchasers.

               ARTICLE V   FURTHER COOPERATION; CONFIDENTIALITY.

     Section 5.1. By execution of this Agreement, Purchasers hereby agree that,
prior to the second anniversary of the date of this Agreement, they will not
offer, sell or otherwise dispose of

                                       8
<PAGE>

any Shares, in the open market or otherwise, during any period when they have
knowledge that a Company registration statement is pending relating to a public
offering or distribution of Company Common Stock (other than as allowed under
this Agreement or other than if the proposed registration (i) is not to be made
on Commission Forms S-1, S-2 or S-3 (or any successor or similar forms); or (ii)
is primarily (A) a registration of securities other than Company Common Stock or
other equity securities of the Company; (B) a registration of a stock option,
incentive compensation, profit sharing, dividend reinvestment, employee stock
purchase or other employee benefit plan or of securities issued or issuable
pursuant to any such plan; or (C) a registration of securities proposed to be
issued in exchange for securities or assets of, or in connection with a merger,
share exchange, consolidation or other business acquisition or combination
involving another corporation or entity (the types of registrations and
registration statements described in clauses (i) and (ii) are herein called the
"Excluded Registrations")) but only so long as such Company registration
statement has not been filed with the Commission or otherwise publicly
disclosed.

     Section 5.2. In connection with the Resale Shelf Registration Statement,
the Purchasers shall furnish or cause to be furnished such information with
respect thereto, and render such cooperation, to the Company and any
broker-dealer as the Company or any such broker-dealer may reasonably request.

     Section 5.3. Upon receiving any notice hereunder respecting any pending
registration statement of the Company relating to a public offering or
distribution of Company Common Stock (other than an Excluded Registration), the
Purchasers shall, as long as such information is not otherwise publicly
disclosed, strictly maintain the confidentiality of such pending registration
statement, shall make no public disclosures or comments with respect thereto and
shall not trade in the Company's Common Stock.

                ARTICLE VI   INDEMNIFICATION IN CONNECTION WITH
            RESALE SHELF REGISTRATION STATEMENTS AND THIS AGREEMENT.

     Section 6.1. The Company hereby agrees to indemnify and hold harmless each
Purchaser and each other person if any, who controls a Purchaser within the
meaning of the Act against any losses, claims, damages or liabilities, joint or
several, to which any such indemnified party may become subject under the Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon any untrue statement or alleged untrue statement of any
material fact contained in the Resale Shelf Registration Statement, any
preliminary prospectus, final prospectus or summary prospectus contained
therein, or any amendment or supplement thereto, or any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and the Company will
reimburse each such indemnified party for any reasonable legal or any other
reasonable expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, liability, action or proceeding; provided,
however, that the Company shall not be liable in any such case to the extent
that any such loss, claim, damage, liability (or action or proceeding in respect
thereof) or expense arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in the Resale
Shelf Registration Statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with information furnished in writing to the Company by or on behalf of a
Purchaser specifically for use in the preparation thereof. Notwithstanding the

                                       9
<PAGE>

foregoing provisions of this Section 6.1, the Company will not be liable to a
Purchaser or other indemnified party under the indemnity agreement in this
Section 6.1 for any such loss, claim, damage, liability (or action or proceeding
in respect thereof) or expense that arises out of such party's (i) failure to
send or give a copy of the final prospectus to the person asserting an untrue
statement or alleged untrue statement or omission or alleged omission at or
prior to the written confirmation of the sale of the Shares to such persons if
such statement or omission was corrected in such final prospectus and the
Company has previously furnished copies thereof in accordance with this
Agreement prior to the time such prospectus was required to be delivered or (ii)
sale of any Shares during any period of suspension pursuant to Section 3.4 of
this Agreement, provided that proper notice of such suspension was provided by
the Company.

     Section 6.2. Each of the Purchasers, jointly and severally, shall indemnify
and hold harmless (in the same manner and to the same extent as set forth in
Section 6.1 hereof) the Trust, the trustees of the Trust, the Company, each
director of the Company, each officer of the Company signing the registration
statement and each other person if any, who controls the Company within the
meaning of the Act, with respect to any untrue statement or alleged untrue
statement of any material fact contained in the Resale Shelf Registration
Statement, any preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereto, or any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, but only to the
extent that such statement or alleged statement or omission was made in reliance
upon and in conformity with written information furnished to the Company by or
on behalf of such Purchaser specifically for use in the preparation of the
Resale Shelf Registration Statement, preliminary prospectus, final prospectus,
summary prospectus contained therein, or any, amendment or supplement thereto.

     Section 6.3. If for any reason the foregoing indemnification is unavailable
or insufficient to hold any indemnified party harmless, then the indemnifying
party shall contribute to the amount paid or payable by such indemnified party
as a result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect not only the relative benefits received or receivable by
the indemnifying party, on the one hand, and such indemnified party, on the
other hand, but also the relative fault of the indemnifying party and any
indemnified party, as well as any other relevant equitable considerations.

     Section 6.4. The parties hereto agree that it would not be just and
equitable if contribution pursuant to Section 6.3 hereof were determined by pro
rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in Section 6.3 hereof. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in Section 6.1 or 6.2 hereof shall
be deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim.

     Section 6.5. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

     Section 6.6. Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action commenced
against it in respect of which indemnity may be sought hereunder, but failure to
so notify an indemnifying party shall not

                                       10
<PAGE>

relieve such indemnifying party from any liability hereunder to the extent it is
not materially prejudiced as a result thereof and in any event shall not relieve
it from any liability which it may have otherwise than on account of this
indemnity agreement. The indemnifying party, upon request of the indemnified
party, shall retain counsel reasonably satisfactory to the indemnified party to
represent the indemnified party and any others the indemnifying party may
designate in such proceeding and shall pay the reasonable fees and disbursements
of such counsel related to such proceeding. In any such proceeding, any
indemnified party shall have the right to retain its own counsel, but the
reasonable fees and expenses of such counsel shall be at the expense of such
indemnified party unless (i) the indemnifying party and the indemnified party
shall have mutually agreed to the retention of such counsel or (ii) the named
parties to any such proceeding (including any impleaded parties) include both
the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. The indemnifying party shall not be liable for
any settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party from and against
any loss or liability by reason of such settlement or judgment. No indemnifying
party shall, without the prior written consent of the indemnified parties,
settle or compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Article VI (whether
or not the indemnified parties are actual or potential parties thereto), unless
such settlement, compromise or consent (i) includes an unconditional release of
each indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to
or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

     Section 6.7. Each of the parties hereto hereby agrees to indemnify and hold
harmless each other party hereto against any losses, claims, damages or
liabilities, joint or several, to which such other party may become subject,
insofar as such losses, claims, damages or liabilities (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon any inaccuracy in or any breach of any representation,
warranty, covenant or agreement made by such indemnifying party in this
Agreement. For purposes of this Section 6.7, the procedural provisions of
Sections 6.3, 6.4, 6.5 and 6.6 shall apply.

                       ARTICLE VII   ADDITIONAL MATTERS.

     Section 7.1. Upon written request by the Purchasers, the Trust shall
reimburse the Purchasers for up to a total of $15,000 of direct, documented,
out-of-pocket expenses incurred by the Purchasers in the negotiation and
preparation of this Agreement and the Resale Shelf Registration Statement. The
Company and the Trust, in such proportion as they shall mutually agree, shall
pay all costs and expenses incurred by the Company in connection with the
preparation of this Agreement and the Resale Shelf Registration Statement.
Except as otherwise stated in this Agreement, each party shall bear its own
costs in connection with this Agreement, the Resale Shelf Registration Statement
and the transactions contemplated by this Agreement.

     Section 7.2. This Agreement shall be governed by and construed and
interpreted in accordance with the internal laws of the State of New York
applicable to contracts made and performed in New York, regardless of the fact
that individuals who are a party hereto may be or become a resident of a state
or jurisdiction other than New York.

                                       11
<PAGE>

     Section 7.3. Company, Purchasers and the Trust hereby stipulate that any
action or other legal proceeding arising under or in connection with this
Agreement shall be commenced and prosecuted exclusively and in its entirety in
the Federal District Court in the Northern District of Illinois in Chicago,
Illinois, each party hereby submitting to the personal jurisdiction thereof, and
the parties agree not to raise the objection that such courts are not a
convenient forum. Process and pleadings mailed to a party at the address
provided herein shall be deemed properly served and accepted for all purposes.
THE TRUST, COMPANY AND PURCHASERS HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT.

     Section 7.4. The Trust has retained Robert W. Baird & Co. Incorporated
("Baird") as its agent with respect to the sale of the Shares to the Purchasers
hereunder. The parties recognize the Trust's retention of Baird as its sole
broker, agent or finder with respect to this transaction, the payment of fees to
whom shall be the sole responsibility of the Trust.

     Section 7.5. Except as otherwise provided in this Agreement, all notices,
requests, demands and other communications hereunder shall be deemed to be duly
given and received upon personal delivery to the party to be notified with
reasonable evidence of such delivery; when sent by confirmed facsimile if sent
during normal business hours of the recipient, if not, then on the next business
day; five (5) days after having been sent by registered or certified mail, with
postage prepaid; or one (1) day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of
receipt:

     (a) If to the Company: to The Marcus Corporation, 250 East Wisconsin
Avenue, Milwaukee, Wisconsin 53202, Attention: Thomas F. Kissinger, Esq. (with a
copy to: Steven R. Barth, Esq., Foley & Lardner, 777 East Wisconsin Avenue,
Milwaukee, Wisconsin 53202).

     (b) If to a Purchaser: to the addresses indicated on Exhibit A.

     (c) If to the Trust: to The Marcus Corporation, 250 East Wisconsin Avenue,
Milwaukee, WI 53202, Attention: Stephen H. Marcus (with a copy to J. Gardner
Govan, Esq., Godfrey & Kahn, 780 North Water Street, Milwaukee, Wisconsin,
53202).

     (d) Any person entitled to receive notice hereunder may change his address
at which notice is to be received or designate another person to receive notice
by giving notice to all other parties and persons entitled to receive notice in
the manner provided in this Section.

     Section 7.6. This Agreement embodies the entire agreement between the
parties hereto with respect to the transactions contemplated herein, and
supersedes all prior agreements and understandings between the parties,
including (but not limited to) the letter of intent executed by the Purchasers
and the Trust as of or about June 26, 2001.

     Section 7.7. If any provision contained in this Agreement should be held to
be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained in this Agreement shall not
in any way be affected or impaired thereby.

     Section 7.8. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute but one and the same instrument. Executed signature pages may be
removed from counterpart agreements and

                                       12
<PAGE>

attached to one or more fully executed copies of this Agreement. Signature pages
hereto may be validly and effectively executed by facsimile.

     Section 7.9. This Agreement may be assigned by the Purchasers (or any of
them) with the written consent of the Company, which shall not be unreasonably
withheld or delayed. This Agreement shall be binding upon and inure to the
benefit of the respective parties hereto, and any successor and assign of a
Purchaser, the Company or the Trust.

     Section 7.10. All nouns, pronouns and any variations thereof refer to the
masculine, feminine or neuter, singular or plural, as the context may require.

     Section 7.11. The headings used in this Agreement are for convenience only
and shall not constitute a part of this Agreement.

                                       13
<PAGE>

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

THE BEN AND CELIA MARCUS 1992             THE MARCUS CORPORATION
 REVOCABLE TRUST ("Trust")                ("Company")

By:  /s/ Stephen H. Marcus                By:  /s/ Thomas F. Kissinger
   ---------------------------------         ---------------------------------
     Stephen H. Marcus,                        Thomas F. Kissinger,
     Trustee                                   General Counsel and Secretary

By:  /s/ Diane Marcus Gershowitz
   ---------------------------------
     Diane Marcus Gershowitz,
     Trustee

LORD ABBETT RESEARCH FUND, INC. -         LORD ABBETT SECURITIES TRUST - LORD
SMALL-CAP VALUE SERIES                    ABBETT MICRO-CAP VALUE FUND
(a "Purchaser")                           (a "Purchaser")

By:  /s/ Paul A. Hilstad                  By:  /s/ Paul A. Hilstad
   ---------------------------------         ---------------------------------
     Name: Paul A. Hilstad                     Name: Paul A. Hilstad
     Title: Vice President and                 Title: Vice President and
            Secretary                                 Secretary

LORD ABBETT SECURITIES TRUST -
LORD ABBETT ALL VALUE FUND
(a  Purchaser")

By:  /s/ Paul A. Hilstad
   ---------------------------------
     Name: Paul A. Hilstad
     Title: Vice President and
      Secretary

                                       14
<PAGE>

<TABLE>
                                                       Exhibit A
                                                   to Share Purchase
                                           and Registration Rights Agreement

PURCHASER INFORMATION

<CAPTION>
------------------------  ------------------  -----------------------------  -----------  ---------------------------

                                                Additional Address for        Number of     Account Information
          Purchaser             Address          Notification Purposes         Shares     (for Transfer of Shares)
------------------------  ------------------  -----------------------------  -----------  ---------------------------
<S>                       <C>                 <C>                             <C>         <C>
Lord Abbett Research      90 Hudson Street    Wilmer, Cutler & Pickering      1,366,500   Bank of New York, DTC 901
Fund, Inc. - Small-Cap    Jersey City, NJ     2445 M. Street, N.W.                        Account number: 007651
Value Series              07302-3973          Washington, D.C.  20037-1420                Attn: Luann Roselle
                                              Attn: Meredith Cross
------------------------  ------------------  -----------------------------  -----------  ---------------------------
Lord Abbett Securities    90 Hudson Street    Wilmer, Cutler & Pickering        372,000   Bank of New York, DTC 901
Trust - Lord Abbett       Jersey City, NJ     2445 M. Street, N.W.                        Account number: 007616
All Value Fund            07302-3973          Washington, D.C.  20037-1420                Attn: Luann Roselle
                                              Attn: Meredith Cross
------------------------  ------------------  -----------------------------  -----------  ---------------------------
Lord Abbett Securities    90 Hudson Street    Wilmer, Cutler & Pickering         11,500   Bank of New York, DTC 901
Trust - Lord Abbett       Jersey City, NJ     2445 M. Street, N.W.                        Account number: 218258
Micro-Cap Value Fund      07302-3973          Washington, D.C.  20037-1420                Attn: Luann Roselle
                                              Attn: Meredith Cross
------------------------  ------------------  -----------------------------  -----------  ---------------------------
     TOTAL                                                                    1,750,000
------------------------  ------------------  -----------------------------  -----------  ---------------------------
</TABLE>

TRUST WIRE INSTRUCTIONS
The wiring instructions are as follows:

     Bank One
     111 East Wisconsin Ave.
     Milwaukee, Wisconsin

     The Ben and Celia Marcus 1992 Revocable Trust
     ABA#:    075000019
     Checking Account #:632962387

<PAGE>

                                   Appendix I
                                to Share Purchase
                        and Registration Rights Agreement

                                  QUESTIONNAIRE

The Marcus Corporation,
250 East Wisconsin Avenue
Milwaukee, Wisconsin  53202
Attention:  Thomas F. Kissinger, Esq.

Gentlemen:

     Pursuant to the certain Share Purchase and Registration Rights Agreement,
dated as of July 16, 2001 ("Agreement") by and between, among others, The Marcus
Corporation ("Company") and the undersigned, the undersigned hereby furnishes
the following information:

1.   The name, exactly as it should appear in the Resale Shelf Registration
     Statement is _____________________________.

2.   The exact name that the Shares purchased pursuant to the Agreement are to
     be registered in is _______________________________.

3.   The mailing address of the registered holder listed in response to above
     is:

     _______________________________
     _______________________________
     _______________________________
     _______________________________

4.   The Tax Identification Number of the registered holder listed above is
     _____________________.

                                     Very truly yours,

                                     Official Name of Purchaser:________________

                                     By:________________________________________
                                         Name:__________________________________
                                         Title:_________________________________
                                         Business Address:______________________
                                         Business Phone:________________________
                                         E-mail Address:________________________
                                         Facsimile Number:______________________
                                         Date:__________________________________

cc:  Steven R. Barth
     Foley & Lardner
     777 East Wisconsin Avenue
     Milwaukee, Wisconsin  53202

<PAGE>

                                   Appendix II
                                to Share Purchase
                        and Registration Rights Agreement

                   PURCHASER'S CERTIFICATE OF SUBSEQUENT SALE

CERTIFIED MAIL
RETURN RECEIPT REQUESTED

The Marcus Corporation,
250 East Wisconsin Avenue
Milwaukee, Wisconsin  53202
Attention:  Thomas F. Kissinger, Esq.

Gentlemen:

     Pursuant to Section 3.6 of that certain Share Purchase and Registration
Rights Agreement, dated as of July 16, 2001 ("Agreement") by and between, among
others, The Marcus Corporation ("Company") and the undersigned, the undersigned
hereby certifies that on _____, 200_, it sold ______ shares of the Company's
Common Stock in accordance with the Resale Shelf Registration Statement. The
undersigned further certifies that the prospectus delivery requirements under
the Securities Act of 1933 have been satisfied.

                                     Very truly yours,

                                     Official Name of Purchaser:________________

                                     By:________________________________________
                                         Name:__________________________________
                                         Title:_________________________________
                                         Business Address:______________________
                                         Business Phone:________________________
                                         E-mail Address:________________________
                                         Facsimile Number:______________________
                                         Date:__________________________________

cc:  Steven R. Barth
     Foley & Lardner
     777 East Wisconsin Avenue
     Milwaukee, Wisconsin  53202

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