<PAGE>   1
                                                                   EXHIBIT 10.36


WELLS FARGO HSBC TRADE BANK                                            TERM NOTE
================================================================================

                                                         Los Angeles, California
$1,092,945                                             _________________, 199___


FOR VALUE RECEIVED, the undersigned JALATE, LTD., A CALIFORNIA CORPORATION
("Borrower") promises to pay to the order of WELLS FARGO HSBC TRADE BANK,
NATIONAL ASSOCIATION ("Trade Bank") at its office at 333 South Grand Avenue, 8th
Floor, Los Angeles, CA 90071, or at such other place as the holder hereof may
designate, in lawful money of the United States of America and in immediately
available funds, the principal sum of One Million Ninety-Two Thousand Nine
Hundred Forty-Five Dollars ($1,092,945), or so much thereof as may be advanced
and be outstanding, with interest thereon, to be computed on each advance from
the date of its disbursement at a rate per annum (computed on the basis of a
360-day year, actual days elapsed) five percent (5.0%) above the Prime Rate in
effect from time to time. The "Prime Rate" is a base rate that WELLS FARGO BANK,
NATIONAL ASSOCIATION ("Bank") from time to time establishes and which serves as
the basis upon which effective rates of interest are calculated for those loans
making reference thereto. Each change in the rate of interest hereunder shall
become effective on the date each Prime Rate change is announced within Bank.


Borrower may from time to time from the date of this Note up to and including
July 17, 1998, borrow and partially or wholly repay its outstanding borrowings,
subject to all of the limitations, terms and conditions of this Note and of any
document executed in connection with or governing this Note; provided however,
that amounts repaid may not be reborrowed, and provided further, that the total
borrowings under this Note shall not exceed the principal amount stated above.
The unpaid principal balance of this obligation at any time shall be the total
amounts advanced hereunder by the holder hereof less the amount of principal
payments made hereon by or for any Borrower, which balance may be endorsed
hereon from time to time by the holder.


Advances hereunder, to the total amount of the principal sum stated above and up
to and including the date set forth in the preceding paragraph, may be made by
the holder at the oral or written request of Fred Findley or Vinton Bacon, any
one acting alone, who are authorized to request advances and direct the
disposition of any advances until written notice of the revocation of such
authority is received by the holder at the office designated above, or (b) any
person, with respect to advances deposited to the credit of any account of any
Borrower with the holder, which advances, when so deposited, shall be
conclusively presumed to have been made to or for the benefit of each Borrower
regardless of the fact that persons other than those authorized to request
advances may have authority to draw against such account. The holder shall have
no obligation to determine whether any person requesting an advance is or has
been authorized by any Borrower.

Interest accrued on this Note shall be payable on the last day of each month,
commencing January 31, 1998.

Principal shall be payable in twenty-three weekly installments as follows:

<TABLE>
<CAPTION>

             Installments   Payment Amount        Due Date
             ------------   --------------        --------
<S>                         <C>               <C>
             1 through 4        S25,000       commencing 2/6/98
             5 through 23       $50,000       commencing 3/6/98
</TABLE>

with a final installment consisting of all remaining unpaid principal due and
payable in full on July 17, 1998.


This Note is made pursuant to and is subject to the terms and conditions of that
certain Amended and Restated Credit Agreement between Borrower and Trade Bank
dated as of Jan. 21, 1998, as amended from time to time ("Credit Agreement").
Any default in the payment or performance of any obligation under this Note, or
any defined event of default under the Credit Agreement, shall constitute an
"Event of Default" under this Note.


Upon the occurrence of any Event of Default, the holder of this Note, at the
holder's option, may declare all sums of principal and interest outstanding
hereunder to be immediately due and payable without presentment, demand, protest
or notice of dishonor, all of which are expressly waived by each Borrower, and
the obligation, if any, of the holder to extend any further credit hereunder
shall immediately cease and terminate. Each Borrower shall pay to the holder
immediately upon demand the full amount of all payments, advances, charges,
costs and expenses, including reasonable attorneys' fees (to include outside
counsel fees and all allocated costs of the holder's in-house counsel), incurred
by the holder in connection with the enforcement of the holder's rights and/or
the collection of any amounts which become due to the holder under this Note,
and the prosecution or defense of any action in any way related to this Note,
including without limitation, any action for declaratory relief, and including
any of the foregoing incurred in connection with any bankruptcy proceeding
relating to any Borrower.


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


This Note shall be governed by and construed in accordance with the laws of the
State of California, except to the extent Trade Bank has greater rights or
remedies under Federal law, whether as a national bank or otherwise, in which
case such choice of California law shall not be deemed to deprive Trade Bank of
any such rights and remedies as may be available under Federal law.


This Note supersedes and replaces that certain Loans Against Imports Note dated
May 31, 1997.

                                                    "BORROWER"
                                    JALATE, LTD.


                                    By: /s/ F.A. FINDLEY
                                      ------------------------------------------
                                      Title: VP, Finance & CEO

                                    Borrower's Address:
                                    6557 Flotilla
                                    City of Commerce, CA. 90040





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<PAGE>   3
                           ADDENDUM TO PROMISSORY NOTE


      THIS ADDENDUM is attached to and made a part of that certain promissory
note executed by JALATE, LTD., a California corporation ("Borrower") and payable
to WELLS FARGO HSBC TRADE BANK, NATIONAL ASSOCIATION, or order, dated as of
Jan. __, 1998 in the principal amount of One Million Ninety-Two Thousand Nine
Hundred Forty-Five Dollars ($1,092,945) (the "Note").

      The following arbitration provision is hereby incorporated into the Note:

   ARBITRATION:

        (a) Arbitration. Upon the demand of any party, any Dispute shall be
   resolved by binding arbitration (except as set forth in (e) below) in
   accordance with the terms of this Note. A "Dispute" shall mean any action,
   dispute, claim or controversy of any kind, whether in contract or tort,
   statutory or common law, legal or equitable, now existing or hereafter
   arising under or in connection with, or in any way pertaining to, this Note
   and each other document, contract and instrument required hereby or now or
   hereafter delivered to Bank in connection herewith (collectively, the
   "Documents"), or any past, present or future extensions of credit and other
   activities, transactions or obligations of any kind related directly or
   indirectly to any of the Documents, including without limitation, any of the
   foregoing arising in connection with the exercise of any self-help,
   ancillary or other remedies pursuant to any of the Documents. Any party may
   by summary proceedings bring an action in court to compel arbitration of a
   Dispute. Any party who fails or refuses to submit to arbitration following a
   lawful demand by any other party shall bear all costs and expenses incurred
   by such other party in compelling arbitration of any Dispute.

        (b) Governing Rules. Arbitration proceedings shall be administered by
   the American Arbitration Association ("AAA") or such other administrator as
   the parties shall mutually agree upon in accordance with the AAA Commercial
   Arbitration Rules. All Disputes submitted to arbitration shall be resolved in
   accordance with the Federal Arbitration Act (Title 9 of the United States
   Code), notwithstanding any conflicting choice of law provision in any of the
   Documents. The arbitration shall be conducted at a location in California
   selected by the AAA or other administrator. If there is any inconsistency
   between the terms hereof and any such rules, the terms and procedures set
   forth herein shall control. All statutes of limitation applicable to any
   Dispute shall apply to any arbitration proceeding. All discovery activities
   shall be expressly limited to matters directly relevant to the Dispute being
   arbitrated. Judgment upon any award rendered in an arbitration may be entered
   in any court having jurisdiction; provided however, that nothing contained
   herein shall be deemed to be a waiver by any party that is a bank of the
   protections afforded to it under 12 U.S.C. Section 91 or any similar
   applicable state law.

        (c) No Waiver: Provisional Remedies, Self-Help and Foreclosure. No
   provision hereof shall limit the right of any party to exercise self-help
   remedies such as setoff, foreclosure against or sale of any real or personal
   property collateral or security, or to obtain provisional or ancillary
   remedies, including without limitation injunctive relief, sequestration,
   attachment, garnishment or the appointment of a receiver, from a court of
   competent jurisdiction before, after or during the pendency of any
   arbitration or other proceeding. The exercise of any such remedy shall not
   waive the right of any party to compel arbitration or reference hereunder.

        (d) Arbitrator Qualifications and Powers; Awards. Arbitrators must be
   active members of the California State Bar or retired judges of the state or
   federal judiciary of California, with expertise in the substantive law
   applicable to the subject matter of the Dispute. Arbitrators are empowered
   to resolve Disputes by summary rulings in response to motions filed prior to
   the final arbitration hearing. Arbitrators (i) shall resolve all Disputes in
   accordance with the substantive law of the state of California, (ii) may
   grant any remedy or relief that a court of the state of California could
   order or grant within the scope hereof and such ancillary relief as is
   necessary to make effective any award, and (iii) shall have the power to
   award recovery of all costs and fees, to impose sanctions and to take such
   other actions as they deem necessary to the same extent a judge could
   pursuant to the Federal Rules of Civil Procedure, the California Rules of
   Civil Procedure or other applicable law. Any Dispute in which the amount in
   controversy is $5,000,000 or less shall be decided by a single arbitrator who
   shall not render an award of greater than $5,000,000 (including damages,
   costs, fees and expenses). By submission to a single arbitrator, each party
   expressly waives any right or claim to recover more than $5,000,000. Any
   Dispute in which the amount in controversy exceeds $5,000,000 shall be
   decided by majority vote of a panel of three arbitrators; provided however,
   that all three arbitrators must actively participate in all hearings and
   deliberations.

        (e) Judicial Review. Notwithstanding anything herein to the contrary, in
   any arbitration in which the amount in controversy exceeds $25,000,000, the
   arbitrators shall be required to make specific, written findings of fact and
   conclusions of law. In such arbitrations (A) the arbitrators shall not have
   the power to make any award which is not supported by substantial evidence or
   which is based on legal error, (B) an award shall not be binding upon the
   parties unless the findings of fact are supported by substantial evidence and
   the conclusions of law are not erroneous under the substantive law of the
   state of California, and (C) the parties shall have in addition to the
   grounds referred to in the Federal Arbitration Act for vacating, modifying
   or correcting an award the right to judicial review of (1) whether the
   findings of fact rendered by the arbitrators are supported by substantial
   evidence, and (2) whether the conclusions of law are erroneous under the
   substantive law of the state of California. Judgment confirming an award in
   such a proceeding may be entered only if a court determines the award is
   supported by substantial evidence and not based on legal error under the
   substantive law of the state of California.

        (f) Miscellaneous. To the maximum extent practicable, the AAA, the
   arbitrators and the parties shall take all action required to conclude any
   arbitration proceeding within 180 days of the filing of the Dispute with the
   AAA. No


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<PAGE>   4


arbitrator or other party to an arbitration proceeding may disclose the
existence, content or results thereof, except for disclosures of information by
a party required in the ordinary course of its business, by applicable law or
regulation, or to the extent necessary to exercise any judicial review rights
set forth herein. If more than one agreement for arbitration by or between the
parties potentially applies to a Dispute, the arbitration provision most
directly related to the Documents or the subject matter of the Dispute shall
control. This Note may be amended or modified only in writing signed by
Borrower. If any provision of this Note shall be held to be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provision or any remaining provisions of this Note. This arbitration
provision shall survive termination, amendment or expiration of any of the
Documents or any relationship between the parties.

     IN WITNESS WHEREOF, this Addendum has been executed as of the same date as
the Note.

                                                "BORROWER"

                                  JALATE, LTD.

                                  By: /s/ F.A. FINDLEY
                                     -------------------------------------------
                                  Title: VP Finance & CEO



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