<PAGE>

                                                                   Exhibit 10.1

[LOGO]

                                   PROMISSORY NOTE
<TABLE>
<CAPTION>
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  Principal       Loan Date      Maturity      Loan No.    Call   Collateral    Account      Officer    Initials
<S>              <C>            <C>            <C>         <C>    <C>         <C>            <C>        <C>
$5,000,000.00    06-01-2000     05-31-2001                           000      00709056974      368
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                          References in the shaded area are for Lender's use only and
                 do not limit the applicability of this document to any particular loan or item.
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Borrower:  COASTCAST CORPORATION                      Lender:  IMPERIAL BANK
           3025 E. Victoria Street                             Apparel & Textile Industries Group
           Rancho Dominguez, CA 90221-5616                     201 N. Figueroa Street, Suite 1425
                                                               Los Angeles, CA 90012-2623
----------------------------------------------------------------------------------------------------------------
</TABLE>

Principal Amount: $5,000,000.00                     Date of Notice: June 1, 2000
                             Initial Rate: 9.500%

PROMISE TO PAY. COASTCAST CORPORATION ("Borrower") promises to pay to
Imperial Bank ("Lender"), or order, in lawful money of the United States of
America, the principal amount of Five Million & 00/100 Dollars
($5,000,000.00) or so much as may be outstanding, together with interest on
the unpaid outstanding principal balance of each advance. Interest shall be
calculated from the date of each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan to one payment of all outstanding
principal plus all accrued unpaid interest on May 31, 2001. In addition,
Borrower will pay regular monthly payments of accrued unpaid interest
beginning July 1, 2000, and all subsequent interest payments are due on the
same day of each month after that. The annual interest rate for this Note is
computed on a 365/360 basis; that is, by applying the ratio of the annual
interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal
balance is outstanding. Borrower will pay Lender at Lender's address shown
above or at such other place as Lender may designate in writing. Unless
otherwise agreed or required by applicable law, payments will be applied
first to any unpaid collection costs and any late charges, then to any unpaid
interest, and any remaining amount to principal.

VARIABLE INTEREST RATE. Subject to designation of a different interest rate
index by Borrower as provided below, the interest rate on this Note is
subject to change from time to time based on changes in an index which is the
Imperial Bank Prime Rate (the "Index"). The Prime Rate is the rate announced
by Lender as its Prime Rate of interest from time to time. Lender will tell
Borrower the current index rate upon Borrower's request. Borrower understands
that Lender may make loans based on other rates as well. The interest rate
change will not occur more often than each day. The Index currently is
9.500%. The interest rate to be applied to the unpaid principal balance of
this Note will be at a rate equal to the Index, resulting in an initial rate
of 9.500%. NOTICE: Under no circumstances will the interest rate on this Note
be more than the maximum rate allowed by applicable law.

INTEREST RATE OPTIONS. The following interest rate options are available
under this Note:

    (a) DEFAULT OPTION. The interest rate margin and index described in the
    "VARIABLE INTEREST RATE" paragraph above (the "Default Option").

    (b) LIBOR. A margin of 2.000 percentage points over LIBOR. For purposes of
    this Note, LIBOR shall mean London Inter-Bank Offered Rate as provided in
    the LIBOR ADDENDUM TO NOTE attached hereto and made a part hereof.

When the interest rate is based on a fixed rate, the rate shall be in effect
for a period of the number of days or months as indicated in the rate option
description (the "Interest Period"), in any case extended to the next
succeeding business day when necessary, beginning on a borrowing date,
conversion date or expiration date of the then current Interest Period.
Adjustments in the interest rate due to changes in the maximum nonusurious
interest rate allowed (the "Highest Lawful Rate") shall be made on the
effective day of any change in the Highest Lawful Rate.

Provided Borrower is not in default under this Note, Borrower may designate
in advance which of the above interest rate indexes shall be applicable to
any loan advance under this Note and shall designate any optional Interest
Period applicable to any fixed rate loan or advance. In the absence of any
such designation the interest rate option shall be the Default Option.
Thereafter unpaid principal balances under this Note may be converted (at the
end of an Interest Period if the index used to determine the interest rate
therefore is a fixed rate) to another of the above interest rate options, or
continued for an additional interest period, when applicable, as designated
by Borrower in advance; and in the absence of sufficient advance designation
as to conversion to or continuation of a fixed rate index, the index shall be
converted to the Default Option. Notwithstanding the foregoing, a fixed rate
index may not be elected for a loan or advance under this Note, nor any
conversion to or continuation of a fixed rate index be elected, if the
Interest Period thereof would extend beyond the maturity of this Note.

PREPAYMENT; MINIMUM INTEREST CHARGE. Borrower agrees that all loan fees and
other prepaid finance charges are earned fully as of the date of the loan and
will not be subject to refund upon early payment (whether voluntary or as a
result of default), except as otherwise required by law. In any event, even
upon full prepayment of this Note, Borrower understands that Lender is
entitled to a MINIMUM INTEREST CHARGE OF $250.00. Other than Borrower's
obligation to pay any minimum interest charge, Borrower may pay without
penalty all or a portion of the amount owed earlier than it is due. Early
payments will not, unless agreed to by Lender in writing, relieve Borrower of
Borrower's obligation to continue to make payments of accrued unpaid
interest. Rather, they will reduce the principal balance due.

LATE CHARGE. If a payment is 10 DAYS OR MORE LATE, Borrower will be charged
5.000% OF THE UNPAID PORTION OF THE REGULARLY SCHEDULED PAYMENT.

DEFAULT. Borrower will be in default if any of the following happens: (a)
Borrower fails to make any payment when due. (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform
when due any other term, obligation, covenant, or condition contained in this
Note or any agreement related to this Note, or any other agreement or loan
Borrower has with Lender. (c) Any representation or statement made or
furnished to Lender by Borrower or on Borrower's behalf is false or
misleading in any material respect either now or at the time made or
furnished. (d) Borrower becomes insolvent, a receiver is appointed for any
part of Borrower's property, Borrower makes an assignment for the benefit of
creditors, or any proceeding is commenced either by Borrower or against
Borrower under any bankruptcy or insolvency laws. (e) Any creditor tries to
take any of Borrower's property on or in which Lender has a lien or security
interest. This includes a garnishment of any of Borrower's accounts with
Lender. (f) Any guarantor dies or any of the other events described in this
default section occurs with respect to any guarantor of this Note. (g) A
material adverse change occurs in Borrower's financial condition, or Lender
believes the prospect of payment or performance of the indebtedness is
impaired. (h) Lender in good faith deems itself insecure.

If any default, other than a default in payment, is curable and if Borrower
has not been given a notice of a breach of the same provision of this Note
within the preceding twelve (12) months, it may be cured (and no event of
default will have occurred) if Borrower, after receiving written notice from
Lender demanding cure of such default: (a) cures the default within ten (10)
days; or (b) if the cure requires more than ten (10) days, immediately
initiates steps which Lender deems in Lender's sole discretion to be
sufficient to cure the default and thereafter continues and completes all
reasonable and necessary steps sufficient to produce compliance as soon as
reasonably practical.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, without
notice, and then Borrower will pay that amount. Upon Borrower's failure to
pay all amounts declared due pursuant to this section, including failure to
pay upon final maturity, Lender, at its option, may also, if permitted under
applicable law, do one or both of the following: (a) increase the variable
interest rate on this Note to 5.000 percentage points over the index, and (b)
add any unpaid accrued interest to principal and such sum will bear interest
therefrom until paid at the rate provided in this Note (including any
increased rate). Lender may hire or pay someone else to help collect this
Note if Borrower does not pay. Borrower also will pay Lender that amount.
This includes, subject to any limits under applicable law, Lender's
attorneys' fees and Lender's legal expenses whether or not there is a
lawsuit, including attorneys' fees and legal expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or
injunction), appeals, and any anticipated post-judgment collection services.
Borrower also will pay any court costs, in addition to all other sums
provided by law. THIS NOTE HAS BEEN DELIVERED TO LENDER AND ACCEPTED BY
LENDER IN THE STATE OF CALIFORNIA. IF THERE IS A LAWSUIT, BORROWER AGREES
UPON LENDER'S REQUEST TO SUBMIT TO THE JURISDICTION OF THE COURTS OF LOS
ANGELES COUNTY, THE STATE OF CALIFORNIA. LENDER AND BORROWER HEREBY WAIVE THE
RIGHT TO ANY JURY TRIAL IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY
EITHER LENDER OR BORROWER AGAINST THE OTHER. (INITIAL HERE HB) THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF CALIFORNIA.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00. If Borrower
makes a payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest
in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender
all Borrower's right, title and interest in and to, Borrower's accounts with
Lender (whether checking, savings, or some other account), including without
limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future, excluding however all IRA and Keogh
accounts, and all trust accounts for which the grant of a security interest
would be prohibited by law. Borrower authorizes Lender, to the extent

<PAGE>

                                 (Continued)
===============================================================================

permitted by applicable law, to charge or setoff all sums owing on this Note
against any and all such accounts.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances
under this Note may be requested orally by Borrower or by an authorized
person. All oral requests shall be confirmed in writing on the day of the
request. All communications, instructions, or directions by telephone or
otherwise to Lender are to be directed to Lender's office shown above. The
following party or parties are authorized to request advances under the line
of credit until Lender receives from Borrower at Lender's address shown above
written notice of revocation of their authority: NORMAN FUJITAKI, SECRETARY,
and HANS J. BUEHLER, CHIEF EXECUTIVE OFFICER. Borrower agrees to be liable
for all sums either: (a) advanced in accordance with the instructions of an
authorized person or (b) credited to any of Borrower's accounts with Lender.
The unpaid principal balance owing on this Note at any time may be evidenced
by endorsements on this Note or by Lender's internal records, including daily
computer print-outs. Lender will have no obligation to advance funds under
this Note if: (a) Borrower or any guarantor is in default under the terms of
this Note or any agreement that Borrower or any guarantor has with Lender,
including any agreement made in connection with the signing of this Note; (b)
Borrower or any guarantor ceases doing business or is insolvent; (c) any
guarantor seeks, claims or otherwise attempts to limit, modify or revoke such
guarantor's guarantee of this Note or any other loan with Lender; (d)
Borrower has applied funds provided pursuant to this Note for purposes other
than those authorized by Lender; or (e) Lender in good faith deems itself
insecure under this Note or any other agreement between Lender and Borrower.

CREDIT AGREEMENT. This Note is subject to the provisions of the Credit
Agreement dated June 1, 2000, and all amendments thereto and replacements
therefor.

GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. Borrower and any other person
who signs, guarantees or endorses this Note, to the extent allowed by law,
waive any applicable statute of limitations, presentment, demand for payment,
protest and notice of dishonor. Upon any change in the terms of this Note,
and unless otherwise expressly stated in writing, no party who signs this
Note, whether as maker, guarantor, accommodation maker or endorser, shall be
released from liability. All such parties agree that Lender may renew or
extend (repeatedly and for any length of time) this loan, or release any
party or guarantor or collateral; or impair, fail to realize upon or perfect
Lender's security interest in the collateral; and take any other action
deemed necessary by Lender without the consent of or notice to anyone. All
such parties also agree that Lender may modify this loan without the consent
of or notice to anyone other than the party with whom the modification is
made.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS
OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER
AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY
OF THE NOTE.

BORROWER:

COASTCAST CORPORATION

X     /s/ HANS H. BUEHLER
 ---------------------------------
        Authorized Officer

===============================================================================

<PAGE>


                                  CREDIT AGREEMENT

This Credit Agreement ("Agreement") is made and entered into on June 1, 2000,
by and between Coastcast Corporation, a California corporation, ("Borrower")
and Imperial Bank, a California banking corporation, ("Bank").

Subject to the terms and conditions of this Agreement, any security
agreement(s) executed by Borrower in favor of Bank, any note(s) executed by
Borrower in favor of Bank, or any other agreements executed in conjunction
therewith (collectively, the "Loan Documents"), Bank shall make the loan(s)
and or advance(s) (individually a "Loan" and collectively "Loans") referred
to below to Borrower.

In consideration of mutual covenants and conditions hereof, the parties
hereto agree as follows:

1.       AMOUNT AND TERMS OF CREDIT

1.01          REVOLVING CREDIT COMMITMENT.

(a)           REVOLVING LINE OF CREDIT. Subject to the terms and conditions
of this Agreement, provided that no event of default then has occurred and is
continuing, Bank shall, upon Borrower's request make advances ("Revolving
Loans") to Borrower, for cash flow timing differences and the issuance of
letters of credit, in an amount not to exceed $5,000,000 (the "Revolving Line
of Credit") until May 31, 2001 (the "Revolving Line of Credit Maturity
Date"). Revolving Loans may be repaid and reborrowed, provided that all
outstanding principal and accrued interest on the Revolving Loans shall be
payable in full on the Revolving Credit Maturity Date.

(b)           REVOLVING NOTE. The interest rate, payment terms maturity date
and certain other terms of the Revolving Loan will be contained in a
promissory note dated the date of this agreement, as such may be amended or
replaced from time to time.

(c)           LETTER OF CREDIT USAGE AND SUBLIMIT. Subject to availability
under the Revolving Line of Credit, at any time and from time to time from
the date hereof through the banking day immediately prior to the Revolving
Line of Credit Maturity Date, Bank shall issue for the account of Borrower
such standby and commercial letters of credit ("Letters of Credit") as
Borrower may request, which requests shall be made by delivering to Bank a
duly executed letter of credit application on Bank's standard form; provided,
however, that the outstanding and undrawn amounts under all such Letters of
Credit (i) shall not at any time exceed $5,000,000 ("Letter of Credit
Sublimit") and (ii) shall be deemed to constitute Revolving Loans for the
purpose of calculating availability under the Revolving Line of Credit.
Unless agreed to in writing by Bank, no Letter of Credit shall have an
expiration date that is later than the Revolving Line of Credit Maturity
Date. All Letters of Credit shall be in form and substance acceptable to Bank
in its sole discretion and shall be subject to the terms and conditions of
Bank's form application and letter of credit agreement and other agreements
required by Bank. Borrower will pay all usual issuance and other fees that
Bank notifies Borrower it will be charged for issuing and processing Letters
of Credit for Borrower.

                                       1
<PAGE>


1.02          DOCUMENTATION FEE, COSTS AND EXPENSES. In addition to any other
amounts due, or to become due, concurrently with the execution hereof,
Borrower agrees to pay to Bank a documentation fee in the amount of $150.00,
and all other costs and expenses incurred by the Bank in the preparation of
this Agreement, the other Loan Documents and the perfection of any security
interest granted to Bank by Borrower.

1.03          COLLECTION OF PAYMENTS. Borrower authorizes Bank to collect all
interest, fees, costs, and/or expenses due under this Agreement by charging
Borrower's demand deposit account number 09-105-433 with Bank, or any other
demand deposit account maintained by Borrower with Bank, for the full amount
thereof. Should there be insufficient funds in any such demand deposit
account to pay all such sums when due, the full amount of such deficiency
shall be immediately due and payable by Borrower.

2.       REPRESENTATIONS OF BORROWER

Borrower represents and warrants that:

2.01          EXISTENCE AND RIGHTS. Borrower is a corporation, duly organized
and existing and in good standing under the laws of the state of California,
which shall survive at least five years beyond the maturity of any Loans
hereunder; Borrower is authorized and in good standing to do business in the
state of its incorporation; Borrower has the appropriate powers and adequate
authority, rights and franchises to own its property and to carry on its
business as now conducted, and is duly qualified and in good standing in each
state in which the character of the properties owned by it therein or the
conduct of its business makes such qualification necessary; and Borrower has
the power and adequate authority to make and carry out this Agreement.
Borrower has no investment in any other business entity unless specified in
writing to Bank.

2.02          AGREEMENT AUTHORIZED. The execution, delivery and performance
of this Agreement and the Loan Documents are duly authorized and do not
require the consent or approval of any governmental body or other regulatory
authority; are not in contravention of or in conflict with any law or
regulation or any term or provision of Borrower's articles of incorporation,
or similar document as the case may be, and this Agreement is the valid,
binding and legally enforceable obligation of Borrower in accordance with its
terms; subject only to bankruptcy, insolvency or similar laws affecting
creditors rights generally.

2.03          NO CONFLICT. The execution, delivery and performance of this
Agreement and the Loan Documents are not in contravention of or in conflict
with any agreement, indenture or undertaking to which Borrower is a party or
by which it or any of its property may be bound or affected, and do not cause
any lien, charge or other encumbrance to be created or imposed upon any such
property by reason thereof.

2.04          LITIGATION. Except as disclosed in writing to Bank by Borrower,
there is no litigation or other proceeding pending or threatened against or
affecting Borrower which if determined adversely to Borrower or its interest
would have a material adverse effect on the financial condition of Borrower,
and Borrower is not in default with respect to any order, writ, injunction,
decree or demand of any court or other governmental or regulatory authority.

                                       2
<PAGE>


2.05          FINANCIAL CONDITION. The balance sheet of Borrower as of
December 31, 1999, and the related profit and loss statement for the
twelve-month period ended as of that date, a copy of which has heretofore
been delivered to Bank by Borrower, and all other statements and data
submitted in writing by Borrower to Bank in connection with this request for
credit are true and correct, and said balance sheet truly presents the
financial condition of Borrower as of the date thereof, and has been prepared
in accordance with generally accepted accounting principles on a basis
consistently maintained. Since such date there have been no material adverse
changes in the financial condition or business of Borrower.  Borrower has no
knowledge of any liabilities, contingent or otherwise, at such date not
reflected in said balance sheet, and Borrower has not entered into any
special commitments or substantial contracts which are not reflected in said
balance sheet, other than in the ordinary and normal course of its business,
which may have a materially adverse effect upon its financial condition,
operations or business as now conducted.

2.06          TITLE TO ASSETS. Borrower has good title to its assets, and the
same are not subject to any liens or encumbrances other than those permitted
by Section 5.03 hereof.

2.07          TAX STATUS. Borrower has no liability for any delinquent state,
local or federal taxes, and, if Borrower has contracted with any government
agency, Borrower has no liability for renegotiation of profits.

2.08          TRADEMARKS, PATENTS. Borrower, as of the date hereof, possesses
all necessary trademarks, trade names, copyrights, patents, patent rights,
and licenses to conduct its business as now operated, without any known
conflict with the valid trademarks, trade names, copyrights, patents and
license rights of others.

2.09          REGULATION U. None of the proceeds of any Loan shall be used to
purchase or carry margin stock (as defined within Regulation U of the Board
of Governors of the Federal Reserve system).

2.10          ERISA. All defined benefit pension plans as defined in the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), of
Borrower meet, as of the date hereof, the minimum funding standards of Section
302 of ERISA, and no Reportable Event or Prohibited Transaction as defined in
ERISA has occurred with respect to any such plan.

3.       CONDITIONS PRECEDENT TO LOAN

              Prior to Bank being obligated to make any Loan pursuant to this
Agreement, Bank must receive all of the following, each of which must be in
form and substance satisfactory to Bank:

3.01          PROMISSORY NOTE. Original, executed promissory note as
applicable.

3.02          INSURANCE. Borrower shall have delivered to Bank evidence of
insurance coverage required pursuant to the Agreement to Provide Insurance
executed by Borrower, in form, substance, amounts, covering risks and issued
by companies satisfactory to Bank, and where required by Bank, with Lenders
Loss Payable endorsement in favor of Bank.

                                        3
<PAGE>


3.03          ORGANIZATIONAL DOCUMENTS. Copies of the articles of
incorporation, or similar document as the case may be, of the any Borrower.

3.04          AUTHORIZATIONS. Certified copies of all action taken by any
Borrower to authorize the execution, delivery and performance of the Loan
Documents.

3.05          GOOD STANDING. Good standing certificates from the appropriate
secretary of state of the state in which any Borrower is organized and in
each state in which it is required to be qualified to do business.

3.06          CREDIT AGREEMENT. This Agreement executed by Borrower.

3.07          ADDITIONAL DOCUMENTS. Such other documents as Bank may
reasonably deem necessary.

4.       AFFIRMATIVE COVENANTS OF BORROWER

Borrower agrees that so long as it is indebted to Bank, under borrowings, or
other indebtedness, or so long as Bank has any obligation to extend credit to
Borrower it will, unless Bank shall otherwise consent in writing:

4.01          RIGHTS AND FACILITIES. Maintain and preserve all rights,
franchises and other authority adequate for the conduct of its business;
maintain its properties, equipment and facilities in good order and repair;
conduct its business in an orderly manner without voluntary interruption and,
if a corporation or partnership, maintain and preserve its existence.

4.02          USE OF PROCEEDS. Use the proceeds of the Loans only for
purposes specified in Section 1 of this Agreement.

4.03          INSURANCE. Maintain public liability, property damage and
workers' compensation insurance and insurance on all its insurable property
against fire and other hazards with responsible insurance carriers to the
extent usually maintained by similar businesses and/or in the exercise of
good business judgment, and as required by that Agreement to Provide
Insurance executed by Borrower, with the Bank to be shown as Lenders Loss
Payee on such policies.

4.04          TAXES AND OTHER LIABILITIES. Pay and discharge, before the same
become delinquent and before penalties accrue thereon, all taxes, assessments
and governmental charges upon or against it or any of its properties, and all
its other liabilities at any time existing, except to the extent and so long
as:

(a)      The same are being contested in good faith and by appropriate
proceedings in such manner as not to cause any materially adverse effect upon
its financial condition or the loss of any right of redemption from any sale
thereunder; and

                                       4
<PAGE>


(b)      It shall have set aside on its books reserves (segregated to the
extent required by generally accepted accounting practice) deemed by it to be
adequate with respect thereto.

4.05          RECORDS AND REPORTS. Maintain a standard and modern system of
accounting in accordance with generally accepted accounting principles on a
basis consistently maintained; permit Bank's representatives to have access
to, and to examine its properties, books and records at all reasonable times
and upon reasonable notice during normal business hours; and furnish Bank:

(a)           QUARTERLY FINANCIAL STATEMENT. As soon as available, and in any
event within forty-five (45) days after the close of each quarter, a balance
sheet, profit and loss statement and reconciliation of Borrower's capital
balance accounts as of the close of such period and covering operations for
the portion of Borrower's fiscal year ending on the last day of such period,
all in reasonable detail and reasonably acceptable to Bank, in accordance with
generally accepted accounting principles on a basis consistently maintained
by Borrower and certified by an appropriate officer of Borrower.

(b)           ANNUAL FINANCIAL STATEMENT. As soon as available, and in any
event within one hundred twenty (120) days after and as of the close of each
fiscal year of Borrower, a report of audit of Company, all in reasonable
detail accompanied by Form 10-K, submitted on an "Unqualified" basis by an
independent certified public accountant selected by Borrower and reasonably
acceptable to Bank, in accordance with generally accepted accounting
principles on a basis consistently maintained by Borrower and certified by an
appropriate officer of Borrower;

(c)           AUDIT REPORTS. Promptly after the receipt thereof by Borrower,
copies of any detailed audit reports submitted to Borrower by independent
accountants in connection with each annual or interim work on the accounts of
Borrower made by such accountants;

(d)           STOCKHOLDER, SECURITY AND EXCHANGE COMMISSION STATEMENTS AND
REPORTS. Promptly after the same are available, copies of all such proxy
statements, financial statements and reports as Borrower or any subsidiary
shall send to its members or stockholders as appropriate, if any, and copies
of all reports which Borrower or any subsidiary may file with the Securities
and Exchange Commission.

(e)           OTHER INFORMATION. Such other information relating to the
affairs of Borrower as the Bank reasonably may request from time to time.

4.06          CURRENT RATIO. Maintain on a quarterly basis a minimum ratio of
total current assets (excluding all amounts due from stockholders, officers
and affiliates) divided by total current liabilities (including all amounts
due to stockholders, officers and affiliates) of 3.00 to 1.00

4.07          DEBT TO TANGIBLE NET WORTH. Maintain on a quarterly basis a
ratio of total liabilities to Tangible Net Worth (defined as stockholder's
equity less any value for goodwill, trademarks, patents, copyrights,
leaseholds, organization expense and other similar intangible items, and any
amounts due from stockholders, officers and affiliates) of not greater than
1.00 to 1.00.

4.08          OUT OF DEBT. The unpaid balance of the Revolving Loans shall be
$0 for at least thirty (30) consecutive days prior to each anniversary date to
this Agreement.

                                       5
<PAGE>


4.09          PROFITABILITY. Maintain, profitable operations (meaning a net
profit after taxes) of at least $5,000,000 on an basis.

4.10          ERISA. Cause all defined benefit pension plans, as defined in
ERISA, of Borrower to, at all times, meet the minimum funding standards of
Section 302 of ERISA, and ensure that no Reportable Event or Prohibited
Transaction, as defined in ERISA, will occur with respect to any such plan.

4.11          LAWS. At all times comply with, or cause to be complied with,
all laws, statutes, rules, regulations, orders and directions of any
governmental authority having jurisdiction over Borrower or Borrower's
business.

4.12          GAAP. Compliance with all financial covenants shall be
calculated based on generally accepted accounting principles applied on a
consistent basis as maintained by Borrower.

4.13          OPERATING ACCOUNTS. Maintain all primary accounts and banking
relationship with the Bank.  Maintain, or cause to be maintained, on deposit
with Bank, non-interest bearing demand deposit balances sufficient to
compensate Bank for all services provided by Bank.  Balances shall be
calculated after reduction for the reserve requirement of the Federal Reserve
Board and uncollected funds.  Any deficiencies shall be charged directly to
the Borrower on a monthly basis.

4.14          NOTICES. Promptly notify Bank in writing of (i) the occurrence
of any Event of Default hereunder or any event which upon notice and lapse of
time would be an Event of Default; (ii) all litigation affecting Borrower
where the amount is $50,000 or more; any substantial dispute which may exist
between Borrower and any governmental regulatory body or law enforcement
authority; any change in Borrower's name or principal place of business; or
any other matter which has resulted or might result in a material adverse
change in Borrower's financial condition or operations.

5.            NEGATIVE COVENANTS OF BORROWER

Borrower agrees that so long as it is indebted to Bank, or so long as Bank
has any obligation to extend credit to Borrower, it will not, without Bank's
written consent:

5.01          TYPE OF BUSINESS. Make any substantial change in the character
of its business.

5.02          OUTSIDE INDEBTEDNESS. Create, incur, assume or permit to exist
any indebtedness for borrowed moneys other than Loans from the Bank except
obligations now existing as shown in the financial statement dated December
31, 1999, excluding those obligations being refinanced by Bank, or sell or
transfer, either with or without recourse, any accounts or notes receivable or
any moneys due or to become due.

5.03          LIENS AND ENCUMBRANCES. Create, incur, permit to exist, or
assume any mortgage, pledge, encumbrance, lien or charge of any kind upon any
asset now owned or hereafter acquired by it,

                                       6
<PAGE>


other than liens for taxes not delinquent and liens in Bank's favor and other
than liens agreed to in writing by Bank.

5.04          LOANS, INVESTMENTS, SECONDARY LIABILITIES. Make any loans or
advances to any person or other entity other than in the ordinary and normal
course of its business as now conducted or make any investment in the
securities of any person or other entity other than the United States
Government; or guarantee or otherwise become liable upon the obligation of
any person or other entity, except by endorsement of negotiable instruments
for deposit or collection in the ordinary and normal course of its business.

6.       EVENTS OF DEFAULT

The occurrence of any of the following events of default ("Events of
Default") shall, at Bank's option, terminate Bank's commitment to lend and
make all sums of principal and interest then remaining unpaid on all
Borrower's indebtedness to Bank immediately due and payable, all without
demand, presentment or notice, all of which are hereby expressly waived:

6.01          FAILURE TO PAY. Failure to pay any installment of principal or
of interest on any indebtedness of Borrower to bank within five (5) days of
its due date.

6.02          BREACH OF COVENANT. Failure of Borrower to perform any other
term or condition of this Agreement of any Loan Document binding upon
Borrower.

6.03          BREACH OF WARRANTY. Any of Borrower's representations or
warranties made herein or any statement or certificate at any time given in
writing pursuant hereto or in connection herewith shall be false or
misleading in any respect.

6.04          INSOLVENCY; RECEIVER OR TRUSTEE. Borrower shall become
insolvent; or admit its inability to pay its debts as they mature; or make an
assignment for the benefit of creditors; or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial part of its
property or business.

6.05          JUDGMENTS, ATTACHMENTS. Any money judgment in excess of
$50,000 writ or warrant of attachment or similar process shall be entered or
filed against Borrower or any of its assets and shall remain unvacated,
unbonded or unstayed for a period of ten (10) days or in any event later than
five (5) days prior to the date of any proposed sale thereunder.

6.06          BANKRUPTCY.  Bankruptcy, insolvency, reorganization or
liquidation proceedings or other proceedings for relief under any bankruptcy
law or any law for the relief of debtors shall be instituted by or against
Borrower and, if instituted against it, shall not be dismissed within thirty
(30) days thereafter.

6.07          CESSATION OF BUSINESS. Borrower shall voluntarily suspend its
business.

6.08          ADVERSE CHANGE. Any change which, in the opinion of Bank, is
materially adverse to the financial condition of Borrower or any Guarantor;
or should Bank, for any reason, believe that the

                                       7
<PAGE>


prospect of Borrower's payment or performance hereunder or under any other
agreement or instrument with Bank be impaired.

6.09          OTHER DEFAULTS. Borrower, or any Guarantor of Borrower's
obligations to Bank, shall commit or do or fail to commit or do any act or
thing which would constitute an event of default under any of the terms of
any other agreement, document or instrument executed or to be executed by it
concerning the obligation to pay money.

6.10          ADVANCES. Notwithstanding anything to the contrary contained
herein, Bank shall have no duty to make advances while any event of default
exists notwithstanding any cure period provided for herein.

7.       MISCELLANEOUS PROVISIONS

7.01          FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the
part of Bank or any holder of notes issued hereunder, in the exercise of any
power, right or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or
privilege.  All rights and remedies existing under this Agreement or any
note(s) issued in connection with a Loan that Bank may make hereunder, are
cumulative to, and not exclusive of, any rights or remedies otherwise
available.

7.02          COUNTERPARTS; ENTIRE AGREEMENT. This Agreement may be executed
by the parties hereto in several counterparts, each of which shall be deemed
to be an original and all of which shall constitute together but one and the
same agreement.  This Agreement, and the other Loan Documents constitute the
entire understanding among the parties hereto with respect to the subject
matter hereof and supersedes any prior agreements, written or oral, with
respect thereto.

7.03          ATTORNEY'S FEES. Borrower will pay promptly to Bank without
demand after notice, with interest thereon from the date of expenditure at
the rate applicable to the Loan, reasonable attorneys' fees and all costs and
expenses paid or incurred by Bank in collecting or compromising the Loan
after the occurrence of an Event of Default, whether or not suit is filed.
If suit is brought to enforce any provision of this Agreement, the prevailing
party shall be entitled to recover its reasonable attorneys' fees and court
costs in addition to any other remedy or recovery awarded by the court.

7.04          ADDITIONAL REMEDIES. The rights, powers and remedies given to
Bank hereunder shall be cumulative and not alternative and shall be in
addition to all rights, powers and remedies given to Bank by law against
Borrower or any other person, including but not limited to Bank's rights of
setoff or banker's lien.

7.04          INUREMENT. The benefits of this Agreement shall inure to the
successors and assigns of Bank and the permitted successors and assigns of
Borrower.

7.06          APPLICABLE LAW. This Agreement and all other agreements and
instruments required by Bank in connection therewith shall be governed by and
construed according to the laws of the state of California, to the
jurisdiction of whose courts the parties hereby agree to submit.

                                       8
<PAGE>


7.07          OFFSET. In addition to and not in limitation of all rights of
offset that Bank or other holder of the Loan may have under applicable law,
Bank or other holder of any note issued hereunder shall, upon the occurrence
of any Event of Default or any event which with the passage of time or notice
would constitute such an Event of Default, have the right to appropriate and
apply to the payment of the Loan any and all balances, credits, deposits,
accounts or monies of Borrower then or thereafter with Bank or other holder,
within ten (10) days after the Event of Default, and notice of the occurrence
of any Event of Default by Bank to Borrower.

7.08          SEVERABILITY. Should any one or more provisions of the
Agreement be determined to be illegal or unenforceable, all other provisions
nevertheless shall be effective.

7.09          TIME OF THE ESSENCE. Time is hereby declared to be of the
essence of this Agreement and of every part hereof.

7.10          ACCOUNTING. All accounting terms shall have the meanings
applied under generally accepted accounting principles unless otherwise
specified.

7.11          REFERENCE PROVISION.

(a)      Other than (i) nonjudicial foreclosure and all matters in connection
therewith regarding security interests in real of personal property; or (ii)
the appointment of a receiver, or the exercise of other provisional remedies
(any and all of which may be initiated pursuant to applicable law), each
controversy, dispute or claim between the parties arising out of or relating
to this Credit Agreement, any security agreement executed by Borrower in
favor of Bank or any note executed by Borrower in favor of Bank or any other
agreement or instrument issued in favor of Bank by Borrower (collectively in
this Section, the "Agreement") which controversy, dispute or claim is not
settled in writing within thirty (30) days after the "CLAIM DATE" (defined as
the date on which a party subject to this Agreement gives written notice to
all other parties that a controversy, dispute or claim exists), will be
settled by a reference proceeding in California in accordance with the
provisions of Section 638 ET SEQ. of the California Code of Civil Procedure,
or their successor section ("CCP"), which shall constitute the exclusive
remedy for the settlement of any controversy, dispute or claim concerning
this Agreement, including whether such controversy, dispute or claim is
subject to the reference proceeding and except as set forth above, the
parties waive their rights to initiate any legal proceedings against each
other in any court or jurisdiction other than the Superior Court in the
County where the Real Property, if any, is located or Los Angeles County if
none (the "COURT"). The referee shall be a retired Judge of the Court
selected by mutual agreement of the parties, and if they cannot so agree
within forty-five (45) days after the Claim Date, the referee shall be
promptly selected by the Presiding Judge of the Court (or his
representative).  The referee shall be appointed to sit as a temporary judge,
with all of the powers for a temporary judge, as authorized by law, and upon
selection should take and subscribe to the oath of office as provided for in
Rule 244 of the California Rules of Court (or any subsequently enacted Rule).
 Each party shall have one peremptory challenge pursuant to CCP Section
170.6. The referee shall (a) be requested to set the matter for hearing
within sixty (60) days after the date of selection of the referee and (b) try
any and all issues of law or fact and report a statement of decision upon
them, if possible, within ninety (90) days of the Claim Date.  Any decision
rendered by the referee will be final, binding and conclusive and judgment
shall be entered pursuant to CCP Section 644 in any court in the

                                       9
<PAGE>


state of California having jurisdiction. Any party may apply for a reference
proceeding at any time after thirty (30) days following notice to any other
party of the nature of the controversy, dispute or claim, by filing a
petition for a hearing and/or trial.  All discovery permitted by this
Agreement shall be completed no later than fifteen (15) days before the first
hearing date established by the referee. The referee may extend such period
in the event of a party's refusal to provide requested discovery for any
reason whatsoever, including without limitation, legal objections raised to
such discovery or unavailability of a witness due to absence or illness.  No
party shall be entitled to "priority" in conducting discovery.  Depositions
may be taken by either party upon seven (7) days written notice, and request
for production or inspection of documents shall be responded to within ten
(10) days after service.  All disputes relating to discovery which cannot be
resolved by the parties shall be submitted to the referee whose decision
shall be final and binding upon the parties. Pending appointment of the
referee as provided herein, the Superior Court is empowered to issue
temporary and/or provisional remedies, as appropriate.

(b)      Except as expressly set forth in this Agreement, the referee shall
determine the manner in which the reference proceeding is conducted including
the time and place of all hearings, the order of presentation of evidence,
and all other questions that arise with respect to the course of the
reference proceeding. All proceedings and hearings conducted before the
referee, except for trial, shall be conducted without a court reporter except
that when any party so requests, a court reporter will be used at any hearing
conducted before the referee.  The party making such a request shall have the
obligation to arrange for and pay for the court reporter.  The costs of the
court reporter at the trial shall be borne equally by the parties.

(c)      The referee shall be required to determine all issues in accordance
with existing case law and the statutory laws of the state of California.
The rules of evidence applicable to proceedings at law in the state of
California will be applicable to the reference proceeding.  The referee shall
be empowered to enter equitable as well as legal relief, to provide all
temporary and/or provisional remedies and to enter equitable orders that will
be binding upon the parties.  The referee shall issue a single judgment at
the close of the reference proceeding which shall dispose of all of the
claims of the parties that are the subject of the reference.  The parties
hereto expressly reserve the right to contest or appeal from the final
judgment or any appealable order or appealable judgment entered by the
referee.  The parties hereto expressly reserve the right to findings of fact,
conclusions of laws, a written statement of decision, and the right to move
for a new trial or a different judgment, which new trial, if granted, is also
to be a reference proceeding under this provision.

(d)      In the event that the enabling legislation which provides for
appointment of a referee is repealed (and no successor statute is enacted),
any dispute between the parties that would otherwise be determined by the
reference procedure herein described will be resolved and determined by
arbitration.  The arbitration will be conducted by a retired judge of the
Court, in accordance with the California Arbitration Act, Section 1280
through Section 1294.2 of the CCP as amended from time to time.  The
limitations with respect to discovery as set forth hereinabove shall apply to
any such arbitration proceeding.

7.12          THIS AGREEMENT MAY BE MODIFIED ONLY BY A WRITING SIGNED BY ALL
PARTIES HERETO.

                                       10
<PAGE>




This Agreement is executed on behalf of the parties by duly authorized
officers as of the date first above written.


IMPERIAL BANK                             COASTCAST CORPORATION
("BANK")                                  ("BORROWER")


By: /s/ DONALD D. DOUTHWRIGHT             By: /s/ HANS H. BUEHLER
   --------------------------                ------------------------
    SVP/RPM                              Its: Chairman & CEO
                                             ------------------------





                                       11
<PAGE>

                                              LIBOR ADDENDUM
[LOGO]                                        TO NOTE


    This Libor Addendum ("Addendum") is dated as of JUNE 1, 2000, and is by
and between COASTCAST CORPORATION ("Borrower") and Imperial Bank ("Bank").
This Addendum amends and supplements the NOTE to which it is attached (the
"Note") and forms a part of and is incorporated into the Note.

    In the event of any inconsistency between the terms herein and the terms
of the Note, the terms herein shall in all cases govern and control.  All
capitalized terms herein, unless otherwise defined herein, shall have the
meanings set forth in the Note.

    1.   ADVANCES.

    1.1  PRIME LOANS. Advances permitted pursuant to the terms of the Note
or this Addendum which bear interest in relation to Bank's Prime Rate shall
be referred to herein as "Prime Loans" and each such advance shall be a
"Prime Loan." Each Prime Loan shall bear interest at an annual rate equal to
the sum of 0.000% plus the Bank's Prime Rate.  "Prime Rate" shall mean
the rate of interest publicly announced by Bank from time to time in
Inglewood, California, as its prime rate for lending.  The Prime Rate is not
intended to be the lowest rate of interest charged by Bank in connection with
extensions of credit to borrowers.

   1.2   LIBOR LOANS. Advances permitted pursuant to the terms of the Note or
this Addendum which bear interest in relation to the Libor Rate shall be
referred to herein as "Libor Loans" and each such advance shall be a "Libor
Loan."  Each Libor Loan shall bear interest at the Libor Rate, as defined
below.  A Libor Loan shall be in the minimum amount of FIVE HUNDRED THOUSAND
DOLLARS ($500,000) of such greater amount which is an integral
multiple of FIFTY THOUSAND DOLLARS ($50,000). No Libor Loan shall be made after
the last Business Day that is at least THREE (3) MONTHS prior to the Maturity
Date described in the Note.

    2.   INTEREST ON LIBOR LOANS.

    2.1  RATE OF INTEREST. Each Libor Loan shall bear interest on the unpaid
principal amount thereof from the Loan Date through the date paid (whether by
acceleration or otherwise) at a rate equal to the sum of 2.000% per annum
plus the Libor Rate for the Interest Period.

         (a)  "Loan Date" shall mean the date on which (i) a Libor Loan is
made, a Libor Loan is continued, or a Prime Loan is converted to a Libor Loan.

         (b)  "Interest Period" shall mean a period of THIRTY (30), SIXTY
(60) OR NINETY (90) DAYS, commencing on the applicable Loan Date, as selected
by Borrower pursuant to Section 2.2; PROVIDED HOWEVER that Borrower may not
select an Interest Period that would otherwise extend beyond the Maturity
Date of the Loan.  Borrower may also select a twelve (12) month Interest
Period if and when Bank notifies Borrower that such Interest Period is
available, as determined by Bank in its sole discretion.  During a Libor
Interest Period, interest shall be payable on the last day of the Interest
Period, provided that for any Interest Period longer than 3 months, interest
shall be payable quarterly and on the last day of the Interest Period.

         (c)  "Libor Rate" shall mean, for the applicable Interest Period for
a Libor Loan, a rate per annum (rounded upwards, if necessary, to the nearest
1/16 or 1%) equal to (i) the Libor Base Rate for such Interest Period divided
by (ii) 1.00 minus the Reserve Requirement Rate (expressed as a decimal
fraction) for such Interest Period.

         (d)  "Libor Base Rate" shall mean with respect to any Interest
Period, the rate equal to the arithmetic mean (rounded upwards, if necessary,
to the nearest 1/16 of 1%) of:

              (i)  the offered rates per annum for deposits in U.S. Dollars
for a period equal to such Interest Period which appears at 11:00 a.m.,
London time, on the Reuters Screen LIBOR Page on the Business Day that is two
(2) Business Days before the first day of such Interest Period, in each case
if at least four (4) such offered rates appear on such page, or

              (ii) if clause (i) is inapplicable, (x) the offered rate per
annum for deposits in U.S. Dollars for a period equal to such Interest Period
which appears as of 11:00 a.m., London time on the Telerate Monitor on
Telerate Screen 3750 on the Business Day which is two (2) Business Days
before the first day of such Interest Period; or (y) if clause (x) above is
inapplicable, the arithmetic mean (rounded upwards, if necessary, to the
nearest 1/16 of 1%) of the interest rates per annum offered by at least three
(3) prime banks selected by Bank at approximately 11:00 a.m. London time, on
the Business Day which is two (2) Business Days before such date for deposits
in U.S. Dollars to prime banks in the London interbank market, in each case
for a period equal to such Interest Period in an amount equal to the amount
to which the Libor Rate applies.


                                  Page 1 of 4
<PAGE>


         (e)  "Business Day" means any day on which Bank is open for business
in the State of California.

         (f)  "Reuters Screen LIBOR Page" means the display designated as page
LIBOR on the Reuters Monitor Money Rates Service or such other page as may
replace the LIBOR page on that service for the purpose of displaying London
interbank offered rates of major banks.

         (g)  "Reserve Requirement Rate" means, for any Interest Period, the
aggregate of the rates, effective as of the Business Day which is two (2)
Business Days before the first day of the Interest Period, at which:

              (i)  reserves (including any marginal, supplemental or
emergency reserves) are required to be maintained during such Interest Period
under Regulation D against "Eurocurrency liabilities" (as such term is used
in Regulation D) by member banks of the Federal Reserve System; and

              (ii) any additional reserves are required to be maintained by
Bank by reason of any Regulatory Change against (x) any category of
liabilities which includes deposits by reference to which the Libor Rate is
to be determined as provided in the definition of "Libor Base Rate;" of (y)
any category of extensions of credit or other assets which include Libor
Loans.

         (h)  "Regulatory Change" means, with respect to Bank, any change on
or after the date of the Note and this Addendum in any Governmental
Regulation, including the introduction of any new Governmental Regulation or
the decision of existing Governmental Regulation.

         (i)  "Governmental Regulation" means any (i) United States Federal,
state or foreign law or regulation (including without limitation Regulation
D); and (ii) the adoption or making of any interpretation, application,
directive or request applying to a class of lenders, including Bank, of or
under any United States Federal, state, or any foreign law or regulation
(whether or not having the force of law) by any court or by any governmental,
central banking, monetary or taxing authority charged with the interpretation
or administration of such law or regulation.

    2.2  DETERMINATION OF INTEREST RATES. Subject to the terms and conditions
of the Note and this Addendum, Borrower, at its option, may request an
advance in the form of a Libor Loan, a continuation of a Libor Loan, or a
conversion of a Prime Loan into a Libor Loan, only upon delivery to Bank of
an irrevocable written notice received by Bank at least three (3) Business
Days prior to the requested Loan Date, specifying (i) the principal amount of
such Libor Loan, (ii) the requested Loan Date, and (iii) the selected
Interest Period. Upon receiving such notice, Bank shall determine (which
determination shall be in accordance with Section 2.1 and shall, absent
manifest error, be final, conclusive and binding upon all parties hereto) the
Libor Rate applicable to such Libor Loan two (2) Business Days prior to the
Loan Date, and shall promptly give notice thereof (in writing or by telephone
confirmed in writing) to Borrower.  If Borrower shall fail to notify Bank of
its selected Interest Period for a Libor Loan (including the continuation of
an existing Libor Loan or the conversion of a Prime Loan into a Libor Loan),
the Borrower shall be deemed or have selected an Interest Period of three (3)
months.

    2.3  COMPUTATION OF INTEREST AND FEES. All computations of interest and
fees payable pursuant to the Note shall be calculated on the basis of a three
hundred sixty (360) day year for the actual number of days elapsed (less the
date of repayment).

    2.4  RECORDATION BY BANK. Bank is hereby authorized to record the Loan
Date, the applicable Interest Period, the principal amount, and the interest
rate of each Libor Loan made (or continued or converted) by Bank, and the date
and amount of each payment or prepayment of principal thereof, in Bank's
records. Any such recordation shall constitute PRIMA FACIE evidence of the
accuracy of the information recorded; PROVIDED that the failure to make any
such recordation shall not in any way affect the Borrower's obligations
hereunder.

    3.   CONVERSION TO PRIME LOANS.

    3.1  ELECTION BY BORROWER. Subject to all the terms and conditions of this
Addendum, Borrower may elect from time to time to convert a Libor Loan to a
Prime Loan by giving Bank at least three (3) Business Days' prior irrevocable
notice of such election, and any such conversion of a Libor Loan shall be made
on the last day of the Interest Period with respect thereto.

    3.2  FAILURE OF NOTICE BY BORROWER. If Borrower otherwise fails to give
notice specifying its requests with respect to any Libor Loans that are
scheduled to become due, such failure shall be deemed, in the absence of any
notice from Borrower to the contrary, to be notice of a requested advance in
the form of a Prime Loan in a principal amount equal to the amount of said
Libor Loan.

    4.   PREPAYMENTS.

    4.1  VOLUNTARY PREPAYMENT BY BORROWER. Subject to the terms and conditions
of the Note and this Addendum, Borrower may, upon at least three (3) Business
Days' irrevocable notice to Bank as provided herein, at any time and from time
to time on any Business Day prepay any Prime Loan or Libor Loan in whole or in
part, without penalty or premium, other than customary actual "Breakage Fees"
and "Prepayment Costs" as defined below, resulting from prepayment of any
Libor Loan prior to the expiration of the Interest Period relating thereto.
The notice of prepayment shall specify the date and amount of the prepayment,
and the Loan to which the

                                 Page 2 of 4

<PAGE>

prepayment applies. Each partial prepayment of a Libor Loan shall be in an
amount not less than FIFTY THOUSAND DOLLARS ($50,000) or such greater amount
which is an integral multiple of FIFTY THOUSAND DOLLARS ($50,000); PROVIDED,
that unless a Libor Loan is prepaid in full, no prepayment shall be made if,
after giving effect to such prepayment, the aggregate principal amount of
Libor Loans having the same Interest Period shall be less than FIVE HUNDRED
THOUSAND DOLLARS ($500,000). Notice of prepayment having been delivered as
aforesaid, the principal amount of the prepayment specified in such notice
shall become due and payable on the prepayment date set forth in such notice.
All payments of principal under this Section 4 shall be accompanied by
accrued but unpaid interest on the amount being prepaid through the date of
such prepayment.

    4.2  BREAKAGE FEES. If for any reason (including voluntary or mandatory
prepayment, voluntary or mandatory conversion of a Libor Loan into a Prime
Loan, or acceleration), Bank receives all or part of the principal amount of
a Libor Loan prior to the last day of the Interest Period for such Loan,
Borrower shall immediately notify Borrower's account officer at Bank and, on
demand by Bank, pay Bank the Breakage Fees, defined as the amount (if any) by
which (i) the additional interest which would have been payable on the amount
so received had it not been received until the last day of such Interest
Period exceeds (ii) the interest which would have been recoverable by Bank
(without regard to whether Bank actually so invests said funds) by placing
the amount so received on deposit in the certificate of deposit markets or
the offshore currency interbank markets or United States Treasury investment
products, as the case may be, for a period starting on the date on which it
was so received and ending on the last day of such Interest Period at the
interest rate determined by Bank in its reasonable discretion. Bank's
determination as to such amount shall be conclusive and final, absent
manifest error.

    4.3  PREPAYMENT COSTS. Borrower shall pay to Bank, upon the demand of
Bank, such other amount or amounts as shall be sufficient (in the sole good
faith opinion of Bank) to compensate it for any loss, costs or expense
incurred by it as a result of any prepayment by Borrower (including voluntary
or mandatory prepayment, voluntary or mandatory conversion of a Libor Loan
into a Prime Loan, or prepayment due to acceleration) of all or part of the
principal amount of a Libor Loan prior to the last day of the Interest Period
for such Loan (including without limitation any failure by Borrower to borrow
a Libor Loan on the Loan Date for such borrowing specified in the relevant
notice of borrowing hereunder). Such costs shall include, without limitation,
any interest or fees payable by Bank to lenders of funds obtained by it in
order to make or maintain its loans based on the London interbank eurodollar
market. Bank's determination as to such costs shall be conclusive and final,
absent manifest error.

    5.   REMEDIES UPON EVENTS OF DEFAULT.

    5.1  CONVERSION TO PRIME LOANS. If any Event of Default has occurred and
is continuing under the Note or this Addendum, then in addition to all other
remedies available to Bank under the Note, at the option of Bank and without
demand or notice, all Libor Loans then outstanding shall be automatically
converted to Prime Loans on the last day of each respective Interest Period
for each Libor Loan.

    5.2  INDEMNITY. Borrower agrees to pay and indemnify Bank for, and to
hold Bank harmless from, any and all cost, loss or expense (including without
limitation any such cost, loss or expense arising from interest or fees
payable by Bank to lenders of funds obtained by it in order to maintain its
Libor Loans hereunder, or in its reemployment of funds obtained in connection
with the making or maintaining of Libor Loans) which Bank may sustain or
incur as a consequence of any default by Borrower in connection with or
related to: (a) payment of the principal amount of or interest on Libor
Loans, (b) making a borrowing or conversion of a Libor Loan after Borrower
has given a notice thereof in accordance with this Addendum, or (c) making a
prepayment of a Libor Loan after Borrower has given a notice thereof in
accordance with this Addendum, or any prepayment (whether optional or
mandatory) of any Libor Loan prior to the end of the applicable Interest
Period for such Loan.

    6.   ADDITIONAL PROVISIONS REGARDING LIBOR LOANS.

    6.1  LIBOR RATE TAXES. All payments of principal, interest, fees, costs,
expenses and all other amounts payable by Borrower pursuant to the Note and
this Addendum shall be made free and clear of and without reduction by reason
of all present and future income, stamp and other taxes or other charges
whatsoever imposed, assessed, levied or collected by any national government
or any political subdivision or taxing authority thereof or any organization
of which it is a member (excluding (i) any taxes imposed on or measured by
the overall net income or gross receipts of Bank by any such entity, and (ii)
any taxes which would have been imposed even if no provisions for Libor Loans
had appeared in this Addendum) (collectively, "Libor Taxes").

         If any Libor Taxes are required to be withheld from any amounts
payable to Bank, Borrower shall pay such additional amounts as may be
necessary so as to yield to Bank a net amount equal to the total amount of the
payments provided for in this Addendum or under the Note which Bank would have
received if such amounts had not been subject to Libor Taxes.

         If any Libor Taxes are payable directly by Borrower, they shall be
paid by Borrower prior to the date on which penalties attach for failure to
timely pay such Libor Taxes. Within forty five (45) days after the date on
which payment of any such Libor Taxes is due pursuant to applicable law,
Borrower will furnish Bank the original receipt for the full payment of such
Libor Taxes or, if such is not available, evidence of such payment
satisfactory in form and substance to Bank. Borrower shall indemnify and hold
Bank harmless against, and will reimburse to Bank, upon demand, any
incremental taxes, interest or penalties that may become payable by Bank as a
result of any failure by Borrower to pay any Libor Taxes when due.


                                 Page 3 of 4


<PAGE>

    6.2  INABILITY TO DETERMINE FAIR INTEREST RATE. If at any time Bank, in
its sole and absolute discretion, determines that: (i) the amount of the Libor
Loans for periods equal to the corresponding Interest Periods are not
available to Bank in the offshore currency interbank markets, (ii) the Libor
Rate does not accurately reflect the cost to Bank of lending the Libor Loan,
or (iii) by reason of any changes arising after the date of the Note affecting
the London interbank eurodollar market, adequate and fair means do not exist
for ascertaining the applicable interest rate on the basis provided for in
Sections 2.1 and 2.2 above, then Bank shall promptly give notice thereof to
Borrower. Upon the giving of such notice, Bank's obligation to make Libor
Loans shall terminate unless Bank and the Borrower agree in writing to a
different interest rate applicable to Libor Loans, or until such time as Bank
notifies Borrower that the circumstances giving rise to Bank's notice no
longer exist. While such circumstances continue to exist, (x) any requested
Libor Loan shall be treated as a request for a Prime Loan, (y) any Prime Loan
that was to have been converted to a Libor Loan shall be continued as a Prime
Loan, and (z) any outstanding Libor Loan shall be converted retroactively, on
the first day of the then current Interest Period with respect thereto, to a
Prime Loan.

    6.3  ILLEGALITY OR IMPRACTICABILITY. If (i) due to any Governmental
Regulation it shall become unlawful for Bank to continue to fund or maintain
any Libor Loans, or to perform its obligations hereunder, or (ii) due to any
contingency occurring after the date of the Note which has a material adverse
effect on the London interbank eurodollar market, it has become impracticable
for Bank to continue to fund or maintain any Libor Loans, or to perform its
obligations hereunder, then Bank shall promptly give notice thereof to
Borrower. Upon the giving of such notice, Bank's obligation to make Libor
Loans shall terminate, and in such event, (x) any requested Libor Loan shall
be treated as a request for a Prime Loan, (y) any Prime Loan that was to have
been converted to a Libor Loan shall be continued as a Prime Loan, and (z) any
outstanding Libor Loan shall be converted retroactively, on the first day of
the then current Interest Period with respect thereto, to a Prime Loan.

    6.4  GOVERNMENTAL REGULATIONS; INCREASED COSTS. Borrower shall pay to
Bank, within 15 days after demand by Bank, from time to time such amounts as
Bank may determine to be necessary to compensate it for any increased costs
incurred by Bank that Bank determines are attributable to its making or
maintaining of any Libor Loans to Borrower (such increases in costs and
reductions in amounts receivable being herein called "Additional Costs"), in
each case resulting from any Regulatory Change which:

         (a) imposes a new tax or changes the basis of taxation of any amounts
payable to Bank under the Note or this Addendum in respect of any Libor Loans
(other than changes which affect taxes measured by or imposed on the overall
net income of Bank by the jurisdiction in which such Bank has its principal
office); or

         (b) imposes or modifies any reserve, special deposit or similar
requirements relating to any extensions of credit or other assets of, or any
deposits or other liabilities with or for the account of Bank (including any
Libor Loans or any deposits referred to in the definition of Libor Base Rate);
or

         (c) imposes any other condition affecting the Note (or any of such
extensions of credit or liabilities); or

         (d) imposes or modifies a Governmental Regulation regarding capital
adequacy which has or would have the effect of reducing the rate of return on
capital of Bank or any person or entity controlling Bank ("Parent") as a
consequence of its obligations hereunder to a level below that which Bank (or
its Parent) could have achieved but for such adoption, change or compliance
(taking into consideration its policies with respect to capital adequacy) by
an amount deemed by Bank to be material.

    Bank will notify Borrower of any event occurring after the date of the
Note which will entitle Bank to Additional Costs pursuant to this Section 6.4
as promptly as practicable after it obtains knowledge thereof and determines
to request such compensation. Bank will furnish Borrower with a statement
setting forth the basis and amount of each request by Bank for Additional
Costs under this Section 6.4. Determinations and allocations by Bank for
purposes of this Section 6.4 of the effect of any Regulatory Change on its
costs of maintaining its obligations to make Libor Loans or of making or
maintaining Libor Loans or on amounts receivable by it in respect of Libor
Loans, and of the additional amounts required to compensate Bank in respect of
any Additional Costs, shall be conclusive and final, absent manifest error.

    This Addendum is executed as of the date first written above.


BORROWER                              BANK

COASTCAST CORPORATION                 IMPERIAL BANK
                                      a California banking corporation


By /s/ HANS H. BUEHLER                By /s/ DONALD D. DOUTHWRIGHT
  --------------------------------      ---------------------------------------
                                        for Gina Loose

                                        Its Assistant Vice President
                                            -----------------------------------
By
  --------------------------------


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