Document:

<PAGE>   1
                                                                    Exhibit 10.3

                 FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

     This Amendment, dated as of July 31, 2001, is entered into by (1) THQ
INC., a Delaware corporation (the "Borrower"), (2) each of UNION BANK OF
CALIFORNIA, N.A. and BNP PARIBAS (the "Lenders"), and (3) UNION BANK OF
CALIFORNIA, N.A., as administrative agent (the "Agent") for the Lenders.

                                    Recitals

     A.  The Borrower, the Lenders and the Agent are parties to a Revolving
Credit Agreement dated as of August 31, 2000, as amended by a First Amendment
to Revolving Credit Agreement dated October 23, 2000, a Second Amendment to
Revolving Credit Agreement dated February 20, 2001 and a Third Amendment to
Revolving Credit Agreement dated June 12, 2001 (said Revolving Credit
Agreement, as so amended, herein called the "Credit Agreement"). Terms defined
in the Credit Agreement and not otherwise defined herein have the same
respective meanings when used herein, and the rules of interpretation set forth
in Sections 1.2 and 1.3 of the Credit Agreement are incorporated herein by
reference.

     B.  The Borrower, the Lenders and the Agent wish to amend the Credit
Agreement to, among other things, extend the Commitment Termination Date to
August 1, 2002 and reduce the Commitment to $35,000,000. Accordingly, the
Borrower, the Lenders and the Agent agrees as set forth below.

     Section 1. Amendments to Credit Agreement. Effective as of the date hereof
but subject to satisfaction of the conditions precedent set forth in Section 2,
the Credit Agreement is hereby amended as set forth below.

          (a)  The definition of "Commitment Termination Date" in Section 1.1
of the Credit Agreement is amended in full to read as follows:

               "`Commitment Termination Date' means August 1, 2002."

          (b)  Section 1.1 of the Credit Agreement is amended by deleting the
defined term "Domestic Sublimit."

          (c)  Section 2.1(a) of the Credit Agreement is amended by deleting
the second proviso therein.

          (d)  Section 2.3(b) of the Credit Agreement is deleted and replaced
by "[Intentionally omitted.]."

<PAGE>   2

          (e)  The last sentence of Section 2.9(a) of the Credit Agreement is
amended in full to read as follows:

     "No Letter of Credit shall have an expiration date later than 90 days
     after the Commitment Termination Date."

          (f)  Section 6.1(a)(i) of the Credit Agreement is deleted and
replaced by "[Intentionally omitted.]."

          (g)  Section 6.2(k) of the Credit Agreement is amended in full to
read as follows:

               "(k) Maintenance of Net Worth. The Borrower will not permit the
     consolidated net worth of it and its Subsidiaries as of the end of any
     fiscal year to be less than the sum of (i) $130,000,000 plus (ii) for
     each fiscal year ending after December 31, 2000, on a cumulative basis,
     the greater of (A) 90% of any positive net income of the Borrower and its
     Subsidiaries on a consolidated basis for such fiscal year and (B)
     $15,000,000."

          (h)  The signature pages to the Credit Agreement are amended as set
forth below.

               (i) The amount "$27,500,000" set forth opposite the signature
block of Union Bank of California, N.A. is deleted and replaced with
$25,000,000."

               (ii) The amount "$15,000,000" set forth opposite the signature
block of BNP Paribas is deleted and replaced with "$10,000,000."

               (iii) The contact information for BNP Paribas set forth below
the signature block of BNP Paribas is deleted in its entirety and replaced with
the following:

                              "BNP Paribas
                              725 South Figueroa Street, Suite 2090
                              Los Angeles, California 90017
                              Telecopier: 213-891-0819
                              Attention: Peter Lupo"

               (iv) All references to Pacific Century Bank, N.A., including its
signature block, its contact information and the amount "$7,500,000" set forth
opposite its signature block, are deleted in their entirety.

          (i) Schedule 1 to the Credit Agreement is amended in full to be in
the form attached hereto as Schedule 1.

          (j) Schedule 2 to the Credit Agreement is amended in full to be in
the form attached hereto as Schedule 2.

                                      -2-
<PAGE>   3
     Section 2. Conditions to Effectiveness. This Amendment shall become
effective as of the date first set forth above when the Agent has received all
of the following documents, each dated the date hereof, in form and substance
satisfactory to the Agent and in the number of originals requested by the Agent:

          (a)  new Notes in favor of UBOC and BNP Paribas in the face amounts
of $14,285,714 and $5,714,286, respectively (the "New Notes"), duly executed by
the Borrower;

          (b)  a consent to this Amendment, duly executed by THQ/Jakks;

          (c)  an amendment and restatement of the Fee Letter (the "Restated
Fee Letter"), duly executed by the Borrower;

          (d)  a certificate of the Secretary or Assistant Secretary of the
Borrower as to the incumbency, and setting forth a specimen signature, of each
of the persons (i) who has signed or will sign any Credit Document on behalf of
the Borrower and (ii) who will, until replaced by other persons duly authorized
for that purpose, act as the representatives of the Borrower for the purpose of
signing documents in connection with the Credit Agreement and the transactions
contemplated thereby;

          (e)  a payoff letter to the Agent from Pacific Century Bank, N.A.,
together with evidence that the Borrower has paid all accrued and unpaid
Obligations of the Borrower thereto; and

          (f)  such other approvals, opinions, evidence and documents as any
Lender through the Agent may reasonably request.

     Section 3. Representations and Warranties of Borrower. The Borrower
represents and warrants to the Lenders and the Agent as set forth below.

          (a)  The execution, delivery and performance by the Borrower of this
Amendment, the New Notes, the Restated Fee Letter and the Credit Documents, as
amended hereby and thereby, to which the Borrower is a party are within the
Borrower's corporate powers, have been duly authorized by all necessary
corporate action and do not (i) contravene the articles of incorporation or
bylaws of the Borrower, (ii) contravene any Governmental Rule or contractual
restriction binding on or affecting the Borrower or (iii) result in or require
the creation or imposition of any Lien (other than any created by the Credit
Documents) upon or with respect to any of the properties of the Borrower.

          (b)  No Governmental Action is required for the due execution,
delivery or performance by the Borrower of this Amendment, the New Notes, the
Restated Fee Letter or any of the Credit Documents, as amended hereby or
thereby, to which the Borrower is a party.

          (c)  This Amendment, the New Notes, the Restated Fee Letter and each
of the Credit Documents, as amended hereby and thereby, to which the Borrower
is a party

                                      -3-

<PAGE>   4
constitute legal, valid and binding obligations of the Borrower, enforceable
against the Borrower in accordance with their respective terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
reorganization or other similar laws affecting creditors' rights generally.

      (d)   The Security Agreement and Guarantor Security Agreement constitute
valid and perfected first-priority Liens on the Collateral specified therein,
enforceable against all third parties in all jurisdictions, and secure the
payment of all obligations of the Borrower and THQ/Jakks, respectively, under
the Credit Documents, as amended hereby, by the New Notes and by the Restated
Fee Letter; and the execution, delivery and performance of this Amendment, the
New Notes and the Restated Fee Letter do not adversely affect the Lien of the
Security Agreement or the Guarantor Security Agreement.

      (e)   The unaudited consolidated balance sheet of the Borrower and its
Subsidiaries as of March 31, 2001, and the related unaudited consolidated
statements of income, retained earnings and cash flows of the Borrower and its
Subsidiaries for the 3-month fiscal period then ended, certified (subject to
normal year-end audit adjustments) by the chief financial officer or chief
accounting officer of the Borrower, fairly present the consolidated financial
condition of the Borrower and its Subsidiaries as of such date and the
consolidated results of the operations of the Borrower and its Subsidiaries for
the 3-month fiscal period ended on such date, all in accordance with generally
accepted accounting principles applied on a consistent basis. Since March 31,
2001 there has been no material adverse change in the business, condition
(financial or otherwise), operations, performance, properties or prospects of
the Borrower or any of its Subsidiaries. The Borrower and its Subsidiaries have
no material contingent liabilities except as disclosed in such financial
statements or the notes thereto.

      (f)   There is no pending or, to the knowledge of the Borrower,
threatened action or proceeding affecting the Borrower or any Subsidiary before
any Governmental Person or arbitrator that could reasonably be expected to have
a material adverse effect on the business, condition (financial or otherwise),
operations, performance, properties or prospects of the Borrower or any
Subsidiary or that purports to affect the legality, validity or enforceability
of this Amendment, the New Notes, the Restated Fee Letter or any of the Credit
Documents, as amended hereby or thereby.

      (g)   There has been no amendment to the articles of incorporation or
bylaws of the Borrower, or to the certificate of formation or operating
agreement of THQ/Jakks, on or after August 31, 2000. The representations and
warranties of the Credit Parties contained in the Credit Documents are correct
on and as of the date hereof as though made on and as of such date. No event
has occurred and is continuing, or would result from the effectiveness of this
Amendment, that constitutes a Default.

      (h)   Neither the Borrower nor THQ/Jakks has any bank account, deposit
account, investment account or other such account other than (i) the three
securities accounts of the Borrower specified in Schedule 1 to the Security
Agreement, (ii) the six accounts of the Borrower at UBOC specified in Schedule
2 to the Security Agreement and (iii) the one

                                      -4-
<PAGE>   5
account of the Borrower at Wells Fargo Bank, N.A. specified in Schedule 2 to
the Security Agreement.

          (i)  All of the Borrower's equipment and inventory are located at the
places therefor specified in Schedule 3 to the Security Agreement.

     Section 4. Reference to and Effect on Credit Documents.

          (a)  On and after the effective date of this Amendment, each
reference in the Credit Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or any other expression of like import referring to the Credit
Agreement, and each reference in the other Credit Documents to "the Credit
Agreement," "thereunder," "thereof," "therein" or any other expression of like
import referring to the Credit Agreement, shall mean and be a reference to the
Credit Agreement as amended by this Amendment.

          (b)  Except as specifically amended above and except for the
amendment and restatement of the Notes and the Fee Letter, the Credit Agreement
and the other Credit Documents shall remain in full force and effect and are
hereby ratified and confirmed. Without limiting the generality of the
foregoing, the Security Agreement and the Guarantor Security Agreement and all
of the Collateral described therein do and shall continue to secure the payment
of all obligations stated to be secured thereby under the Credit Documents, as
amended hereby, by the New Notes and by the Restated Fee Letter.

          (c)  Except as expressly set forth herein, the execution, delivery
and effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of the Agent or the Lenders under any of the Credit Documents
or constitute a waiver of any provision of any of the Credit Documents.

     Section 5. Costs and Expenses. The Borrower agrees to pay on demand all
costs and expenses of the Agent in connection with the preparation, execution
and delivery of this Amendment and the other instruments and documents to be
delivered hereunder, including the reasonable fees and out-of-pocket expenses
of counsel for the Agent with respect thereto and with respect to advising the
Agent as to its rights and responsibilities hereunder and thereunder.

     Section 6. Execution in Counterparts. This Amendment may be executed in
any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

                                      -5-
<PAGE>   6
     Section 7. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THE STATE OF CALIFORNIA.

                                        THQ INC.

                                        By: /s/FRED GYSI
                                           --------------------------
                                            Fred Gysi
                                            Senior Vice President,
                                             Finance & Administration
                                             & Chief Financial Officer

                                        UNION BANK OF CALIFORNIA, N.A.,
                                         as Agent and Lender

                                        By: /s/ ANN FORBES
                                           ---------------------------
                                             Ann M. Forbes
                                             Vice President &
                                              Senior Credit Executive

                                        BNP PARIBAS

                                        By: /s/ RAYMOND T. BAXTER
                                           ----------------------------
                                        Name: Raymond T. Baxter
                                             --------------------------
                                        Title: Vice President
                                              -------------------------

                                        By: /s/ GERRY ARTEGA
                                           ----------------------------
                                        Name: Gerry Artega
                                             --------------------------
                                        Title: Vice President
                                              -------------------------

                                      S-1
<PAGE>   7
                                                                     SCHEDULE I

                      FACILITY AMOUNT AND ADVANCE SUBLIMIT

I.   Facility Amount

     Month             Amount
     -----             ------
     August 2001       $20,000.00
     September 2001    $35,000.00
     October 2001      $35,000.00
     November 2001     $35,000.00
     December 2001     $35,000.00
     January 2002      $35,000.00
     February 2002     $20,000.00
     March 2002        $20,000.00
     April 2002        $20,000.00
     May 2002          $20,000.00
     June 2002         $20,000.00
     July 2002         $20,000.00

II.  Advance Sublimit

     Month             Amount
     -----             ------
     August 2001       $10,000.00
     September 2001    $10,000.00
     October 2001      $10,000.00
     November 2001     $20,000.00
     December 2001     $20,000.00
     January 2002      $20,000.00
     February 2002     $10,000.00
     March 2002        $10,000.00
     April 2002        $10,000.00
     May 2002          $10,000.00
     June 2002         $10,000.00
     July 2002         $10,000.00

<PAGE>   8
                                                                      SCHEDULE 2

                                  SUBSIDIARIES

<Table>
<Caption>
                            Jurisdiction of     Direct              Percentage
Subsidiary                  Organization        Owner               Ownership
----------                  ---------------     ------              ----------
<S>                         <C>                 <C>                 <C>
Black Pearl Software,       Illinois            THQ Inc.               100%
Inc. (in dissolution)

GameFx, Inc.                Delaware            THQ Inc.               100%

Genetic Anomalies, Inc.     Delaware            THQ Inc.               100%

Pacific Coast Power         California          THQ Inc.               100%
and Light Company

Volition, Inc.              Delaware            THQ Inc.               100%

T.HQ Deutschland            Germany             THQ Inc.               100%
GmbH (in liquidation)

THQ (Holdings) Ltd.         England             THQ Inc.               100%

T.HQ International,         England             THQ Inc.               100%
Ltd.

THQ/Jakks Pacific,          Delaware            THQ Inc.                50%
LLC

THQ Entertainment           Germany             THQ Holdings           100%
GmbH

THQ Asia Pacific Pty        Australia           THQ Holdings           100%
Ltd.

THQ France                  France              THQ Holdings           100%

Softgold Computerspiele     Germany             THQ Entertainment      100%
GmbH                                            GmbH

ABC Spielspass GmbH         Germany             THQ Entertainment      100%
                                                GmbH
</Table><PAGE>   1
                                                                   Exhibit 10.20

                          AGREEMENT AND PLAN OF MERGER

          THIS AGREEMENT AND PLAN OF MERGER (this "Agreement") is dated as of
this 15th day of May, 2001, by and between S2 GOLF INC., a New Jersey
corporation ("S2 Golf"), and S2 Golf's wholly-owned subsidiary, S2 GOLF
ACQUISITION CORP., a New Jersey corporation ("Acquisition Corp."; S2 GOLF and
Acquisition Corp., the "Constituent Corporations").

          WHEREAS, S2 Golf is a corporation duly organized and existing under
the laws of the State of New Jersey;

          WHEREAS, Acquisition Corp. is a corporation duly organized and
existing under the laws of the State of New Jersey;

          WHEREAS, the Board of Directors of S2 Golf deem it advisable and in
the best interests of S2 Golf's shareholders that Acquisition Corp. merge with
and into S2 Golf; and

          WHEREAS, the Board of Directors of S2 Golf has approved and adopted
this Agreement and the transactions contemplated hereby, including the merger of
Acquisition Corp. with and into S2 Golf (the "Merger") upon the terms and
subject to the conditions set forth in this Agreement.

          NOW, THEREFORE, in consideration of the foregoing premises, and the
covenants and agreements contained herein, the parties hereto, intending to be
legally bound hereby, agree as follows:

                                    ARTICLE 1
                                   THE MERGER

          1.01. THE MERGER. Upon the terms and subject to the conditions set
forth in this Agreement, and in accordance with the Business Corporation Act of
the State of New Jersey (the "Corporation Act"), at the Effective Time (as
defined in Section 1.03 hereof), Acquisition Corp. will merge with and into S2
Golf. At the Effective Time, the separate identity, existence and corporate
organization of Acquisition Corp shall cease, all the rights, privileges,
immunities, powers and purposes of Acquisition Corp. shall be merged into S2
Golf and S2 Golf shall be fully vested therewith, and S2 Golf and Acquisition
Corp. shall be a single corporation.

          1.02. THE SURVIVING CORPORATION. S2 Golf shall be the surviving
corporation of the merger ("Surviving Corporation"). At the Effective Time, the
corporate identity and existence of S2 Golf, with all its rights, privileges,
powers, immunities, purposes and franchises shall continue unaffected and
unimpaired by the Merger and it shall continue its corporate existence under the
laws of the State of New Jersey.

          1.03. EFFECTIVE TIME. If this Agreement is not terminated as
contemplated by Article 4.02 hereof, S2 Golf will file, or cause to be filed,
with the Secretary of State of New Jersey a

<PAGE>   2

certificate of merger (the "Certificate of Merger"), substantially in the form
set forth in Exhibit A attached hereto, and executed in accordance with the
relevant provisions of the Corporation Act. The Merger will become effective
upon the close of business on May 25, 2001 ( the "Effective Time").

          1.04. EFFECT OF THE MERGER. (a) The Surviving Corporation shall be
possessed of all assets and property of every description and every interest
therein, wherever located, and the rights, privileges, licenses, immunities,
powers, purposes, franchises and authority, of a public as well as of a private
nature, of each of the Constituent Corporations, and all obligations belonging
or due to them shall be vested in S2 Golf without further act or deed. Title to
any real estate or any interest therein vested in any Constituent Corporation
shall not revert or in any way be impaired by reason of such merger or
consolidation.

          (b)   At and after the Effective Time, the Surviving Corporation
shall be liable for and obligated to perform all the obligations of each
Constituent Corporation. All rights of creditors of each Constituent Corporation
are preserved unimpaired, and all liens upon the property of any Constituent
Corporation are preserved unimpaired on only the property affected by such liens
immediately prior to the Effective Time.

                                   ARTICLE II
                                  CAPITAL STOCK

          2.01. CAPITAL STOCK. At the Effective Time:

          (a)   The issued and outstanding shares of common stock of
Acquisition Corp. shall be cancelled and all rights in respect thereto shall
cease, and no shares of the capital stock of the Surviving Corporation shall be
issued in exchange therefor; and

         (b)    Each issued and outstanding share of common stock of S2 Golf
shall be unchanged and each such share shall continue to represent one common
share of S2 Golf, as the Surviving Corporation.

                                   ARTICLE III
                    CERTIFICATE OF INCORPORATION AND BY-LAWS

         3.01.  CERTIFICATE OF INCORPORATION OF THE SURVIVING CORPORATION.
At the Effective Time, the Amended and Second Restated Certificate of
Incorporation of S2 Golf (the "Certificate of Incorporation"), as in effect
immediately prior to the Effective Time, shall be the Certificate of
Incorporation of S2 Golf, as the Surviving Corporation, to remain unchanged
until thereafter amended in accordance with applicable law and the provisions of
such Certificate of Incorporation.

         3.02.  BY-LAWS OF THE SURVIVING CORPORATION. At the Effective Time,
the By-laws of S2 Golf as in effect immediately prior to the Effective Time
shall be the By-laws of S2 Golf, as the Surviving Corporation, to remain
unchanged until thereafter amended in accordance with

                                      -2-
<PAGE>   3

applicable law, the provisions of the Certificate of Incorporation of the
Surviving Corporation and such By-laws.

         3.03.  DIRECTORS AND OFFICERS OF THE SURVIVING CORPORATION. The
directors and officers of S2 Golf immediately prior to the Effective Time will
be the directors and officers, respectively, of the Surviving Corporation, in
each case until their respective successors are elected or appointed and
qualified.

                                   ARTICLE IV
                                  MISCELLANEOUS

         4.01.  AMENDMENT. This Agreement may be amended by the written
agreement of the Constituent Corporations, to the extent permitted by law, at
any time prior to the Effective Time.

         4.02.  TERMINATION. This Agreement may be terminated at any time prior
to the Effective Time by S2 Golf.

         4.03.  REFORMATION AND SEVERABILITY. In case any provision of this
Agreement shall be invalid, illegal or unenforceable, it shall, to the extent
possible, be modified in such manner as to be valid, legal and enforceable but
so as to retain most nearly the intent of the parties, and if such modification
is not possible, such provision shall be severed from this Agreement, and in
either case the validity, legality and enforceability of the remaining
provisions of this Agreement shall not in any way be affected or impaired
thereby.

         4.04.  COUNTERPARTS.  This Agreement may be executed in any number of
counterparts and each such counterpart shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same Agreement.

         4.05.  GOVERNING  LAW. This  Agreement  shall be governed by and
construed in accordance with the laws of the State of New Jersey.

                            [Signature Page Follows]

                                      -3-
<PAGE>   4

          IN WITNESS WHEREOF, S2 Golf and Acquisition Corp. have each executed
this Agreement as of the date first above written.

                                      S2 GOLF INC.

                                      By: /s/ Douglas A. Buffington
                                         --------------------------------------
                                               Douglas A. Buffington
                                      Its:     President

                                                  S2 GOLF ACQUISITION CORP.

                                      By: /s/ James E. Jones
                                         --------------------------------------
                                               James E. Jones
                                      Its:     President

                                      -4-

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