Document:

<PAGE>   1
                                                                     Exhibit 4.2

THIS NON-NEGOTIABLE SUBORDINATED CONVERTIBLE PROMISSORY NOTE (THIS "NOTE") AND
THE INDEBTEDNESS EVIDENCED HEREBY, AND THE EXERCISE OF RIGHTS AND REMEDIES
HEREUNDER, ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT
CERTAIN SUBORDINATION AGREEMENT, DATED AS OF MARCH 17, 2000, BY AND BETWEEN ING
(U.S.) CAPITAL LLC (SUCCESSOR BY MERGER TO ING (U.S.) CAPITAL CORPORATION) AS
AGENT, NUON INTERNATIONAL, B.V., AND NORTH COAST ENERGY, INC.

THIS NON-NEGOTIABLE SUBORDINATED CONVERTIBLE PROMISSORY NOTE (THIS "NOTE") HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),
AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS A REGISTRATION
STATEMENT UNDER THE ACT WITH RESPECT TO THIS NOTE HAS BECOME EFFECTIVE OR UNLESS
THE HOLDER ESTABLISHES TO THE SATISFACTION OF THE MAKER THAT AN EXEMPTION FROM
SUCH REGISTRATION IS AVAILABLE.

             NON-NEGOTIABLE SUBORDINATED CONVERTIBLE PROMISSORY NOTE

U.S. $24,000,000
                                                                  March 17, 2000

         FOR VALUE RECEIVED, the undersigned, NORTH COAST ENERGY, INC., a
Delaware corporation (hereinafter "Maker"), hereby promises to pay to the order
of NUON INTERNATIONAL PROJECTS, B.V., (hereinafter called the "Holder") whose
address is Utrechtseweg 68, 6812 AH Arnhem, The Netherlands, the principal sum
of Twenty-Four Million Dollars ($24,000,000), in lawful money of the United
States of America, as hereinafter provided.

         1.       INTEREST.

                  (a) Interest hereunder shall accrue on the unpaid principal
balance of this Note beginning on the date hereof, and continuing thereafter
until the Stated Maturity (as defined below). All accrued and unpaid interest
shall be paid by the Maker to Holder semiannually on each [August 31] and
[February 28] beginning on [August 31, 2000] until the principal balance due
under this Note is paid in full. If the principal balance of this Note is
converted pursuant to Section 7 hereof or prepaid pursuant to Section 2 hereof,
all accrued and unpaid interest shall be paid by the Maker to Holder on the date
of such conversion or prepayment. The interest rate payable on the principal
amount of this Note from time to time outstanding shall be the then Applicable
LIBOR Rate as determined on each Interest Determination Date.

                  (b) Interest on the unpaid principal balance shall be computed
on a daily basis of 1/360th of the annual rate.

         2. PAYMENT TERMS. Subject to the rights of acceleration and conversion
set forth herein, the entire principal balance hereof in the amount of Twenty
Four Million Dollars

<PAGE>   2

($24,000,000), plus all accrued and unpaid interest thereon, shall be payable in
a single balloon payment by Maker to the Holder on [February 28, 2015] ("Stated
Maturity"). Upon the occurrence of an Event of Default (as defined below), the
Holder may, at its option, declare the outstanding principal balance of this
Note (and interest, if any) to be immediately due and payable, together with all
costs and fees, including reasonable attorneys' fees incurred by the Holder in
collecting or enforcement thereof. At any time upon ten (10) days prior written
notice to the Holder (but without limiting, modifying or abrogating the Holder's
conversion rights set forth in Section 7 hereof), this Note may be prepaid by
Maker in whole or in part without penalty or premium. Any such permitted
prepayment under this Note shall be applied first to accrued and unpaid interest
on the principal balance outstanding and then to principal.

         3. DEFINITIONS. As used herein, the following capitalized terms shall
have the following meanings:

         (a) "Applicable LIBOR Rate" means the LIBOR Rate PLUS 2.30% per annum.

         (b) "Business Day" shall mean any day which is neither a Saturday or
Sunday nor a legal holiday on which banks are authorized or required to be
closed in New York, New York.

         (c) "Event of Default" means the occurrence of any of the following
events (i) failure to pay when due any principal or interest on this Note, or
any other sum due hereunder, within five (5) days after the same becomes due;
(ii) upon a breach or default of any covenant of Maker set forth in this Note;
(iii) Maker becomes insolvent or bankrupt or admits in writing its inability to
pay its debts as they become due or makes an assignment for the benefit of
creditors, or if a trustee or receiver is appointed for Maker or for the major
part of its property and is not discharged within sixty (60) days after such
appointment; (iv) bankruptcy, reorganization, arrangement or insolvency
proceedings, or other proceedings for relief under any bankruptcy or similar
laws for the relief of debtors, are instituted by or against Maker and, if
instituted against Maker, are consented to or are not dismissed within sixty
(60) days after such institution or (v) an Event of Default shall have occurred
under that certain Credit Agreement, dated as of February 9, 1998, by and
between ING (U.S.) Capital LLC, successor in interest by merger to ING (U.S.)
Capital Corporation, as Agent and Lender ("ING"), and the Maker, which Event of
Default has not been waived in writing by ING within ten (10) days after the
occurrence thereof.

         (d) "LIBOR Rate" means the per annum interest rate equal to the average
for the applicable day (rounded upward, if necessary, to the nearest next 1/100
of 1%) of those LIBOR (6 month) rates quoted on the REUTERS SCREEN "LIBOR" page
on each September 1 and March 1, as applicable, or the next succeeding Business
Day if such rates are not quoted by REUTERS on such date (each an "Interest
Determination Date"). If such rate is not available, the LIBOR Rate for purposes
of this Note shall be a rate of interest per annum agreed to by the Maker and
Holder. The Libor Rate from the date of this Note to the initial Interest
Determination Date shall be the per annum interest rate equal to the average
(rounded upward if necessary, to the nearest next 1/100 of 1%) of those LIBOR (6
month) rates quoted on the REUTERS SCREEN "LIBOR" page on the date of this Note.

                                       2
<PAGE>   3

         4. PAYMENTS. All payments hereunder will be made to the address noted
herein for the Holder, or such other address designated by the Holder for such
payments, in such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public and private
debts, upon presentation hereof for notation of each payment or upon surrender
hereof.

         5. JUNIOR LIEN. Maker agrees that its obligations to the Holder under
this Note may, at the election of the Holder at any time, be secured by a lien
on any or all of the assets of Peake Energy, Inc., which lien shall be
subordinated to the liens of ING (other than wells and other property interests
that are subject to any Section 29 Tax Credit Agreement with BBD Gas LLC). Maker
agrees that if Holder so elects, Maker will execute and deliver such documents,
and otherwise take such other action and execute such assignments or other
instruments or documents, each as Holder may reasonably request, to evidence,
perfect or record such junior liens on the assets of Peake Energy, Inc.

         6. INTEREST RATE LIMITATION. Nothing herein contained, nor any
transaction related thereto, shall be construed or so operate as to require
Maker to pay interest at a greater rate than is now lawful or in such case to
contract for, or to make any payment, or to do any act contrary to applicable
law. Should any interest or other charges paid by Maker, or parties liable for
the payment of this Note, in connection with the indebtedness evidenced by this
Note or any other document delivered in connection with this Note, result in the
computation or earning of interest in excess of the maximum legal rate of
interest that is legally permitted under applicable law, then any and all such
excess shall be, and the same hereby is, waived by the Holder, and any and all
such excess shall be automatically credited against and in reduction of the
balance due under this Note, and the portion of said excess that exceeds the
balance due under this Note shall be paid by the Holder to Maker.

         7. CONVERSION RIGHT. The Holder hereof, subject to the provisions
hereinafter set forth, has the right (the "Conversion Right"), exercisable at
any time after the date hereof, to convert any portion up to an aggregate
maximum of $24,000,000 of the principal amount of this Note remaining unpaid
into shares of Maker's Common Stock, par value $0.01 per share (the "Common
Shares"), at the price of Two and 50/100 Dollars ($2.50) per Common Share (the
"Conversion Price Per Share"). This Note may be converted by the Holder hereof,
subject to the conditions set forth herein, upon (x) surrender of this Note,
properly endorsed or (y) if this Note has been lost, misplaced or destroyed,
then upon delivery of the Holder to Maker of an affidavit containing a statement
to that effect, in form reasonable acceptable to Maker, [and, in either case,
before 5:00 p.m. EST time on February 28, 2015,] at the principal office of
Maker in Twinsburg, Ohio, or at such other office or agency in the Continental
United States as Maker may designate (such surrender is hereinafter referred to
as the "Conversion of this Note").

                  (a) SHARE CERTIFICATES. After proper notice has been given,
and subject to and conditioned upon approval by the holders of a majority of the
outstanding common stock of Maker of the conversion of this Note and the
issuance of common stock of the Maker in accordance with applicable law, stock
exchange rules and its certificate of incorporation and by-laws, then upon
surrender of this Note, properly endorsed, by the Holder (or the certificate
referred to above, if this Note has been lost, misplaced or destroyed), together
with payment of any applicable taxes, the

                                       3
<PAGE>   4

Holder shall be entitled to receive, as soon as practicable after conversion of
this Note, a share certificate or certificates for the number of duly authorized
and validly issued, fully paid and nonassessable Common Shares into which this
Note has been converted at the Conversion Price Per Share, registered in the
Holder's name.

                  (b) NEW NOTE. Should this Note be converted, the Holder shall
be entitled to receive a new Note for the principal amount in respect of which
this Note shall not have been converted. Any such new Note shall be identical to
this Note, except as to the principal amount thereof, and except that such new
Note shall have an adjusted conversion right to reflect the maximum principal
amount of this Note, if any, that may be converted into Common Shares pursuant
to the limitations set forth in this Section 7.

                  (c) DISCLOSURE. Upon receipt of the notice of the Holder's
intent to convert this Note, Maker, prior to such conversion, will give to the
Holder copies of Maker's most recent (i) Annual Report to its Stockholders, (ii)
Report on Form 10-K and any Forms 8-K and 10-Q filed subsequent thereto, (iii)
Proxy Statement to stockholders, and (iv) such other information concerning
Maker as has been reasonably requested by the Holder. The Holder shall be
provided the opportunity to discuss such materials and the current operations of
Maker generally with its executive and financial officers, its legal counsel and
its independent accountants and to ask questions and satisfy itself as to the
accuracy of the information contained in such materials. The Holder covenants
and agrees by acceptance hereof that the Holder shall, prior to the conversion
of this Note, confirm in writing that it has had access to the type of
information concerning Maker as would be required in a registration statement on
Form S-1 or such other Form as is appropriate at the time.

                  (d) DATE OF CONVERSION. If any certificate for Common Shares
is issued to the Holder, the Holder shall, for all purposes, be deemed to have
become the holder of record of such shares on the date on which this Note (or a
certificate in lieu thereof) was surrendered for conversion and any applicable
taxes were paid, irrespective of the date of issue or delivery of the share
certificate(s), except that if the date of such surrender and payment is a date
when the stock transfer books of Maker are closed, the Holder shall be deemed to
have become the holder of such shares at the close of business on the next
succeeding date on which the stock transfer books are open.

                  (e) REPRESENTATIONS AND DELIVERIES REQUIRED OF THE HOLDER. The
Holder shall not have the right to convert this Note, and Maker shall not be
obligated to deliver shares of Common Stock as provided herein, unless the
Holder represents and warrants, and agrees with Maker in writing (a) that the
shares of Common Stock to be delivered to the Holder upon conversion of this
Note are being acquired by the Holder for its account, for investment and not
with a view to or for resale or transfer in connection with the distribution
thereof, and not with any present intention of distributing or reselling such
shares of Common Stock, and (b) that the Holder will not sell, transfer, pledge
or otherwise dispose of any shares of Common Stock unless the sale or other
disposition thereof is pursuant to an effective registration statement under the
Act (which includes a definitive prospectus meeting the requirements of Section
10(a) of the Act) or the Holder has established to the satisfaction of Maker
that no such registration is required under the Act or the rules and regulations
in effect thereunder.

                                       4
<PAGE>   5

                  (f) RESERVATION OF COMMON SHARES. Maker shall reserve and at
all times hold and keep available, free of preemptive rights, for the purpose of
providing for the conversion of this Note then outstanding and in effect, such
number of Common Shares (or other shares substituted therefor as hereinbefore
provided) as shall, from time to time, be sufficient for such conversion of this
Note.

                  (g) EXPENSES. All expenses of conversion, including the costs
of issuance of certificates, shall be borne by Maker.

                  (h) REGISTRATION RIGHTS. Holder shall have the rights to
request registration of the shares of Common Stock issued hereunder in
accordance with the provisions of Exhibit A attached hereto and made a part
hereof.

         8. NEW SENIOR CREDIT FACILITY. In the event that Maker refinances or
replaces its senior credit facility with ING, Maker will endeavor using
commercially reasonable efforts to have that new lender repay as much of the
principal balance due under this Note as is reasonably possible pursuant to
terms which are reasonably acceptable to Maker and Holder. At the time of such
repayment, if any, the Maker and Holder may renegotiate the terms of this Note.

         9. GOVERNING LAW AND SEVERABILITY. The provisions of this Note shall be
construed according to the laws of the State of New York without regard to
conflict of laws principles. If any provision hereof is in conflict with any
statute or rule of law of the State of New York or is otherwise unenforceable
for any reason whatsoever, then such provision shall be ineffective to the
extent of such invalidity, and shall be deemed separable from and shall not
invalidate any other provision of this Note.

         10. BINDING EFFECT. This Note shall be shall be binding upon Maker and
Maker's successors and assigns.

                                  NORTH COAST ENERGY, INC.
                                  ("Maker")

                                  /s/ Omer Yonel
                                  -------------------------------------
                                  Name:  Omer Yonel
                                  Title: Chief Executive Officer
Maker's Address:

North Coast Energy, Inc.
1993 Case Parkway
Twinsburg, Ohio 44087

                                       5
<PAGE>   6

ACKNOWLEDGED, CONSENTED AND AGREED,
this 17th day of March, 2000:

NUON INTERNATIONAL PROJECTS, B.V.
as Holder

By: /s/ A. Goedmakers
   ------------------------------
    Name:  A. Goedmakers
    Title: Director

                                       6<PAGE>   1

                                                                   Exhibit 10.21

                              SEVENTH AMENDMENT TO
                      AMENDED AND RESTATED CREDIT AGREEMENT

         ESCALADE, INCORPORATED, an Indiana corporation (the "Company"), and
BANK ONE, INDIANA, National Association, a national banking association (the
"Bank") being parties to that certain Amended and Restated Credit Agreement
dated as of May 31, 1996 as amended from time to time (collectively the
"Agreement"), hereby agree to amend the Agreement by this Seventh Amendment to
Amended and Restated Credit Agreement (the "Seventh Amendment"), on the terms
and subject to the conditions set forth as follows:

1.   DEFINITIONS. Terms used in this Seventh Amendment with their initial letter
capitalized which are not defined herein shall have the meanings ascribed to
them in the Agreement.

2.   TERM LOAN: Section 2.c. of the Agreement is hereby amended and restated in
its entirety, to read as follows:

     c. THE TERM LOAN. The Bank will make a term loan (the "Term Loan") to the
     Company contemporaneously with the execution of this Agreement on the
     following terms and subject to the following conditions:

          (i) AMOUNT. The principal amount of the Term Loan shall be Ten Million
          and No/100 Dollars ($10,000,000) or so much thereof as shall be
          advanced for the purposes set forth herein.

          (ii) THE TERM NOTE. The obligation of the Company to repay the Term
          Loan shall be evidenced by a promissory note (the "Term Note") in the
          form of EXHIBIT A. The principal of the Term Loan shall be repayable
          in equal annual installments of $2,000,000 each, due and payable on
          the last day of each March commencing March31, 2000. On March 31,
          2004, the entire remaining principal amount of the Term Loan shall be
          due and payable, together with all accrued and unpaid interest.
          Subject to the contemporaneous payment of any Prepayment Premium which
          would become due on account of any proposed prepayment, the principal
          of the Term Loan may be prepaid at any time in whole or in part,
          provided that any partial prepayment shall be in an amount which is an
          integral multiple of $250,000.00 and provided, further, that any
          partial prepayment shall be applied to the principal installments
          payable on the Term Loan in the inverse order of their maturities.

          (iii) INTEREST ON THE TERM LOAN. The unpaid principal balance from
          time to time of the Term Loan shall bear interest from the date the
          Loan is made prior to the maturity of the Term Note at a rate per
          annum equal to the Prime Rate plus the Applicable Spread, except that
          at the option of the Company exercised from time to time as provided
          in Section 2.d(i) of the Agreement, interest may accrue prior to
          maturity on the entire outstanding balance of the Term Loan or on any
          portion thereof which is in excess of $1,000,000.00 and as to which no
          Optional Rate previously selected remains in effect at a LIBOR-based
          Rate for a period of 30, 60, 90 or 180 days; provided that no Optional
          Rate may be elected for a period extending beyond the scheduled final
          maturity of the Term Loan. After maturity, whether scheduled maturity
          or maturity by virtue of acceleration on account of the occurrence of
          an Event of Default, interest will accrue on the Term Loan at a rate
          per annum equal to the Prime Rate plus the Applicable Spread plus two
          percent (2%), except that as to any portion of the Loan for which the
          Company may have elected an Optional Rate for a period of time that
          has not expired at maturity, such portion shall, during the remainder
          of such period, bear interest at the greater of the Prime Rate plus
          the Applicable Spread plus two percent (2%) per annum or the Optional
          Rate then in effect plus two percent (2%) per annum. Prior to
          maturity, interest shall be due and payable on the last Banking Day of
          each month in addition to any installment of principal which may be
          due and payable on such date. After maturity, interest shall be
          payable as accrued and without demand.

<PAGE>   2

          (iv) USE OF PROCEEDS OF THE TERM LOAM, REDUCTION OF PRINCIPAL AMOUNT.
          The proceeds of the Term Loan shall be used to finance the purchase by
          the Company of the assets of Zue Corporation, associated acquisition
          costs and other general corporate purposes.

          (v) COMMITMENT FEE. In consideration of the Bank's agreement to
          advance new funds to the Company, the Company shall pay a Commitment
          Fee in the amount of $25,000 which shall be paid on or before closing.

3.   AFFIRMATIVE COVENANTS. Sections 5.g(i) and (iii) of the Agreement are
hereby amended to read in their entirety as follows:

          (i) TANGIBLE NET WORTH. The Company shall maintain its Tangible Net
          Worth, determined on a consolidated basis, of not less than
          $26,000,000 at all times.

          (ii) DEBIT SERVICE COVERAGE. For each period of four consecutive
          fiscal quarters ending during the periods indicated in the table
          below, the Company shall maintain a debt service coverage ratio
          (hereinafter defined), determined on a consolidated basis, of not less
          than that indicated in the table below.

                           Period                                     Ratio
                           ------                                     -----

          from the date of this Amendment and through
          December 30, 2000                                        1.10 to 1.0

          At all times thereafter                                  1.20 to 1.0

          For purposes of this covenant, the phrase "debt service coverage
          ratio" means the ratio of (A) the sum of consolidated net income
          before taxes plus interest expense plus depreciation and amortization
          expense plus non-recurring and extraordinary charges, plus up to
          $2,000,000 of such items described herein resulting from the Zue
          Corporation asset acquisition effective as of December 25, 1999, and
          provided that such amount added herein as a result of such
          acquisition, shall be reduced by 25% as of each fiscal quarter end
          hereafter, all for the period for which the ratio is being determined,
          over (B) the sum of scheduled Term Loan and other debt payments plus
          interest expense plus cash income taxes plus capital expenditure which
          were not financed, plus stock repurchases and cash dividends paid, all
          for the period for which such ratio is being determined.

4.   NEGATIVE COVENANT. Section 6.a of the Agreement, entitled "Restricted
Payments" is hereby deleted effective at fiscal year end December 25, 1999.

5.   WAIVER. The Bank hereby agrees to waive the failure by the Company to
comply with Section 6.a of the Agreement with respect to past or future stock
repurchases, provided that the aggregate amount of stock purchases for the
fiscal year ending December 25, 1999 shall not exceed $4,000,000. Such waiver of
the Company's noncompliance relates only to the covenant expressly waived herein
for the time period set forth and shall not be construed as a waiver of any
other violations of this or any other covenant.

<PAGE>   3

6.   REPRESENTATIONS AND WARRANTIES. In order to induce the Bank to enter into
this Seventh Amendment, the Company represents and warrants to the Bank that:

     a.   The execution and delivery of this Seventh Amendment, the execution
     and delivery of all of the other documents executed in connection herewith,
     and the performance by the Company and the Guarantors of their obligations
     under this Seventh Amendment and all of the documents executed in
     connection herewith are within the corporate power of the Company and each
     Guarantor, have been duly authorized by all necessary corporate action,
     have received any required governmental or regulatory agency approvals and
     do not and will not contravene or conflict with any provision of law or of
     the Articles of Incorporation or Bylaws of the Company or any Guarantor or
     of any agreement binding upon the Company or any Guarantor or any of its
     property.

     b.   This Seventh Amendment and all of the documents executed by the
     Company and the Guarantors in connection herewith are the legal, valid and
     binding obligations of the Company and the Guarantors, enforceable against
     the Company and the Guarantors in accordance with their respective terms,
     except to the extent that enforcement thereof may be limited by bankruptcy,
     insolvency, reorganization, moratorium and other laws enacted for the
     relief of debtors generally and other similar laws affecting the
     enforcement of creditors' rights generally or by equitable principles which
     may affect the availability of specific performance and other equitable
     remedies.

     c.   The representations and warranties contained in Section 3 of the
     Agreement are true and correct as of the date hereof except that the
     representations contained in Section 3.d. of the Agreement shall be deemed
     to refer to the latest financial statements furnished by the Company to the
     Bank.

     d.   No Event of Default or Unmatured Event of Default has occurred and is
     continuing as of the date of this Seventh Amendment, except as specifically
     waived herein.

7.   CONDITIONS PRECEDENT. This Seventh Amendment shall become effective upon
the Bank's receipt of the following, contemporaneously with the execution of
this Seventh Amendment, each duly executed, dated and in form and substance
satisfactory to the Bank:

     a.   This Seventh Amendment;

     b.   The Term Loan Note;

     c.   The Commitment Fee of $25,000;

     d.   Receipt of payment of the reasonable legal fees and expenses of Bank's
          counsel at closing or immediately upon receipt by Borrower of an
          invoice therefor;

     e.   Borrowing resolutions of the Board of Directors of Borrower; and

     f.   Such other documents as the Bank may reasonably request.

8.   PRIOR AGREEMENTS. The Agreement, as amended by this Seventh Amendment,
supersedes all previous agreements and commitments made or issued by the Bank,
related to all of the subjects of the Agreement, as amended by this Seventh
Amendment, and any oral or written proposals or commitments made or issued by
the Bank.

<PAGE>   4

9.   AFFIRMATION. Except as expressly amended by this Seventh Amendment, all of
the terms and conditions of the Agreement and each of the Loan Documents remains
in full force and effect.

        Executed and delivered on this   8TH   day of     DECEMBER      , 1999.
                                       -------        ------------------

                                              ESCALADE, INCORPORATED

                                              By:  \S\JOHN R. WILSON
                                                  ------------------------------
                                                   John R. Wilson,
                                                   Chief Financial Officer

                                              BANK ONE, INDIANA, NATIONAL
                                              ASSOCIATION

                                              By: \S\STEVEN J. KRAKOSKI, VP
                                                  ---------------------------

                                                  STEVEN J. KRAKOSKI, VP
                                                  --------------------------
                                                  (Printed Name and Title)

<PAGE>   5

                               EIGHTH AMENDMENT TO
                      AMENDED AND RESTATED CREDIT AGREEMENT

         ESCALADE, INCORPORATED, an Indiana corporation (the "Company"), and
BANK ONE, INDIANA, National Association, a national banking association (the
"Bank") being parties to that certain Amended and Restated Credit Agreement
dated as of May 31, 1996 as amended from time to time (collectively the
"Agreement"), hereby agree to amend the Agreement by this Eighth Amendment to
Amended and Restated Credit Agreement (the "Eighth Amendment"), on the terms and
subject to the conditions set forth as follows-.

1.       DEFINITIONS.

         a.    Term used in this Eighth Amendment with their initial letter
         capitalized which are not defined herein shall have the meaning
         ascribed to them in the Agreement.

         b.    The following definition set forth in Section 1 of the Agreement
         is hereby amended and restated in its entirety to read as follows:

               "CONSOLIDATED EBITDA" shall mean, with respect to any period of
               time, an amount equal to the sum of (i) the consolidated net
               income of the Company and the Subsidiaries determined with
               respect to such time period; plus (ii) to the extent deducted in
               determining such consolidated net income, an amount equal to the
               consolidated income tax, depreciation, amortization and interest
               expense of the Company and the Subsidiaries and determined with
               respect to such time period; plus (iii) $2,000,000 of such items
               described in (i) and (ii) above and such adjustments as agreed to
               by the Bank resulting from the Zue Corporation asset acquisition
               effective as of December 25, 1999, provided that such amount
               added herein as a result of such acquisition, shall be reduced by
               25% as of each fiscal quarter end hereinafter.

2.        REVOLVING LOAN. Section 2.a(i) is hereby amended to change the amount
of Advances which can be made under the Revolving Loan to amounts not exceeding
Twelve Million and no/100 Dollars ($12,000,000.00) in the aggregate at any time
outstanding. The obligation to repay the Revolving Loan shall be evidenced by a
promissory note in the form of EXHIBIT A to this Eighth Amendment.

3.       AFFIRMATIVE COVENANTS. Section 5.g(iii) of the Agreement is hereby
amended to read in its entirety as follows:

               (iii) DEBT SERVICE COVERAGE. For each period of four consecutive
               fiscal quarters ending during the periods indicated in the table
               below, the Company shall maintain a debt service coverage ratio
               (hereinafter defined), determined on a consolidated basis, of not
               less than that indicated in the table below.

                               Period                                  Ratio
                               ------                                  -----

               effective December 25, 1999 and through
               December 30,2000                                     1.10 to 1.0

               At all times thereafter                              1.20 to 1.0

<PAGE>   6

               For purposes of this covenant, the phrase "debt service coverage
               ratio" means the ratio of (A) the sum of consolidated net income
               before taxes plus interest expense plus depreciation and
               amortization expense plus non-recurring and extraordinary
               charges, all for the period for which the ratio is being
               determined, over (B) the sum of scheduled Term Loan and other
               debt payments plus interest expense plus cash income taxes plus
               capital expenditure which were not financed, plus stock
               repurchases and cash dividends paid, all for the period for which
               such ratio is being determined.

4.   REPRESENTATIONS  AND  WARRANTIES.  In order to induce the Bank to enter
into this Eighth Amendment, the Company represents and warrants to the Bank
that:

     a.        The execution and delivery of this Eighth Amendment, the
     execution and delivery of all of the other documents executed in connection
     herewith, and the performance by the Company and the Guarantors of their
     obligations under this Eighth Amendment and all of the documents executed
     in connection herewith are within the Corporate power of the Company and
     each Guarantor, have been duly authorized by all necessary corporate
     action, have received any required governmental or regulatory agency
     approvals and do not and will not contravene or conflict with any provision
     of law or of the Articles of Incorporation or Bylaws of the Company or any
     Guarantor or of any agreement binding upon the Company or any Guarantor or
     any of its property.

     b.        This Eighth Amendment and all of the documents executed by the
     Company and the Guarantors in connection herewith are the legal, valid and
     binding obligations of the Company and the Guarantors, enforceable against
     the Company and the Guarantors in accordance with their respective terms,
     except to the extent that enforcement thereof may be limited by bankruptcy,
     insolvency, reorganization, moratorium and other laws enacted for the
     relief of debtors generally and other similar laws affecting the
     enforcement of creditors' rights generally or by equitable principles which
     may affect the availability of specific performance and other equitable
     remedies.

     c.        The representations and warranties contained in Section 3 of the
     Agreement are true and correct as of the date hereof except that the
     representations contained in Section 3.d. of the Agreement shall be deemed
     to refer to the latest financial statements furnished by the Company to the
     Bank.

     d.        No Event of Default or Unmatured Event of Default has occurred
     and is continuing as of the date of this Eighth Amendment, except as
     specifically waived herein.

5.   CONDITIONS PRECEDENT. This Eighth Amendment shall become effective upon the
Bank's receipt of the following, contemporaneously with the execution of this
Eighth Amendment, each duly executed, dated and in form and substance
satisfactory to the Bank:

     a.   This Eighth Amendment;

     b.   The Revolving Loan Note;

     c.   Receipt of payment of the reasonable legal fees and expenses of Bank's
          counsel at closing or immediately upon receipt by Borrower of an
          invoice therefor;

     d.   Borrowing resolutions of the Board of Directors of Borrower; and

     e.   Such other documents as the Bank may reasonably request.

<PAGE>   7

6.       PRIOR AGREEMENTS. The Agreement, as amended by this Eighth Amendment,
supersedes all previous agreements and commitments made or issued by the Bank,
related to all of the subject matter of the Agreement, as amended by this Eighth
Amendment, and any oral or written proposals or commitments made or issued by
the Bank.

7.       AFFIRMATION.  Except as expressly  amended by this Eighth  Amendment,
all of the terms and conditions of the Agreement and each of the Loan Documents
remains in full force and effect.

          Executed and delivered on this 17TH day of FEBRUARY 2000.

                                          ESCALADE, INCORPORATED

                                          By:  \S\JOHN R. WILSON
                                               -------------------------
                                               John R. Wilson, Secretary

                                          BANK ONE, INDIANA, NATIONAL
                                          ASSOCIATION

                                          By:  \S\STEVEN J. KRAKOSKI, VP
                                               --------------------------

                                               \S\STEVEN J. KRAKOSKI, VP
                                               --------------------------
                                               (Printed Name and Title)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}]]