Document:

EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

     AGREEMENT effective March 1, 1984, by and between Polymer Research Corp. of
America, a New York Corporation ("Corporation") and Carl Horowitz ("Employee").

     WHEREAS, the Employee is one of the principal stockholders, President and a
director of the Corporation; and

     WHEREAS, Employee's services have been of great value to the Corporation
and it is recognized that Employee's continued employment is of substantial
importance to the Corporation;

     WHEREAS, the Corporation and Employee are parties to an Employment
Agreement dated October 1, 1976, as renewed by the Board of Directors on May 1,
1981;

     WHEREAS, the Board of Directors, at a Meeting on February 6, 1984, resolved
that it was in the best interests of the Corporation to terminate Employee's
prior agreement and enter into a new Employment Agreement;

     NOW, THEREFORE, in consideration of the mutual premises set forth herein,
it is agreed as follows:

     1. Employment. The Employment Agreement dated October 1, 1976 and renewed
May 1, 1981 is hereby terminated and superseded by this Agreement. Corporation
agrees to employ Employee and Employee agrees to be so employed in the capacity
of President and Chief Executive Officer for a term of five years effective as
of March l, 1984 and terminating February 28, 1989.

     2. Time and Efforts. Employee shall diligently and conscientiously devote
his full and exclusive time and attention, and his best efforts to the discharge
of his duties as President and Chief Executive Officer of the Corporation.

     3. Board of Directors. Employee shall at all times discharge his duties in
consultation with and under the supervision of the Board of Directors of the
Corporation.

     4. Compensation.

               (a) First Year. During the year beginning March 1,1984, the
          Corporation shall pay to Employee as compensation for his services the
          sum of $70,000 which shall be paid in equal weekly installments.

               (b) Second, Third, Fourth and Fifth Years. During the third,
          fourth and fifth years of this Agreement, the Corporation shall pay to
          Employee as compensation for his services the sum of $80,000 which
          shall be paid in equal weekly installments.

     5. Expenses.

               (a) Reimbursement. The Corporation will reimburse Employee for
          all reasonable and necessary expenses incurred by him in carrying out
          his duties under this Agreement. Employee shall present to the
          Corporation from time to time an itemized account of such expenses in
          such form as may be required by the Corporation.

               (b) Automobile. In recognition of Employee's need for an
          automobile for business purposes the Corporation

                                       -2-

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          will provide Employee with an automobile including maintenance,
          repairs, insurance and all costs incident thereto, all comparable to
          those presently provided to Employee by the Corporation.

          6. Vacation. During the term hereof, the Corporation shall afford to
     the Employee a vacation with pay of one (1) month each year of the term of
     this Agreement.

          7. Disability. In the event of a disability of Employee during the
     term of this Agreement such that he is unable to perform his duties on
     behalf of Employer for a period in excess of six (6) months, then the
     employment of the Employee shall be changed from President and Chief
     Executive Officer to consultant, and as compensation therefore he shall
     receive 75% of his salary as set forth in paragraph "4" less any amount
     received by him under any form of accident and/or health or disability
     insurance policy or policies paid for by funds of the Employer for the
     duration of the term of this Agreement.

          8. Insurance. The Corporation agrees to provide and pay for on behalf
     of Employee complete medical and major medical insurance and $200,000 of
     life insurance, with the beneficiary to be designated by the Employee.

          9. Death of Employee. In the event of the death of Employee during the
     term of this Agreement, then his estate shall be paid by Employer 50% of
     his salary as specified in paragraph "4" until the end of the five year
     term of this Agreement.

                                       -3-

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          10. Option to Purchase Shares. The Corporation hereby grants Employee
     for a period of five years an option to purchase all or any part of 150,000
     shares of the Corporation's common stock at $4 per share.

          11. Merger of Corporation. If the Corporation shall at any time, be
     merged or consolidated into or with any other corporation or if more than
     half of all of the assets or business of the Corporation is transferred to
     another corporation, the  entire unpaid portion of the compensation
     due in paragraph "4" hereof shall be due and owing immediately to Employee.

          12. Termination. In the event, the employment of Employee shall be
     terminated during the term of this Agreement by the Corporation for any
     reason other than (a) death as provided for in paragraph 9, (b) incapacity
     or illness as provided for in paragraph 7, (e) voluntary termination
     by Employee, or (d) conviction of Employee of a crime against the
     Corporation, the Corporation shall continue to pay Employee the same salary
     payments as required in paragraph"4" until the end of the five (5) year
     term.

          13. Governing law. This Agreement shall be construed and enforced in
     accordance with the laws of the State of New York.

          14. Entire Contract. This Agreement constitutes the entire
     understanding and agreement between the Corporation and Employee with
     regard to all matters herein. There are no other agreements, conditions or
     representations, oral or written express or implied, with regard thereto.
     This Agreement may be amended only in writing, signed by both parties
     hereto.

                                     -5-

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          15. Arbitration. Any controversy or claim arising out of, or relating
     to, this Agreement or the breach thereof, shall be resolved by arbitration
     in accordance with the rules then obtaining of the American Arbitration
     Association in New York State, and judgment upon the award rendered may be
     entered by any court having jurisdiction thereof.

          16. Notice. Any notice required or desired to be given pursuant to
     this Agreement shall be in writing and mailed by certified mail to the
     parties at the following addresses:

                   Corporation - 2186 Mill Avenue
                   Brooklyn, N.Y. 11234

                   Employee   - 5607 Filmore Avenue
                   Brooklyn, New York

                                      -6-

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          4.3 Governing Law. This Agreement will be governed by and  interpreted
     in accordance with the internal substantive laws of New York.

     IN WITNESS WHEREOF, the Parties have each executed this Agreement as of the
date first above written.

                   POLYMER RESEARCH CORP. OF AMERICA

                   By:   /s/ Irene Horowitz
                         ------------------------
                         Irene Horowitz

                         /s/ Carl Horowitz
                         ------------------------
                         Carl HorowitzEXHIBIT 10.2

                     AMENDMENT NO. 3 TO EMPLOYMENT AGREEMENT

     AMENDMENT NO. 3, effective May 17, 1998, to Employment Agreement (the
"Employment Agreement") made as of March 1, 1984, and amended effective May 17,
1988 and May 17, 1993, between Polymer Research Corp. of America, a New
York Corporation (the "Company") and Carl Horowitz ("the Employee").

     WHEREAS, the Company and the Employee desire to further amend the
Employment Agreement;

     NOW, THEREFORE, the Company and the Employee hereby agree that the
Employment Agreement is amended as follows:

     1. Section 1 thereof is hereby amended to provide that the Company agrees
to employ Employee and Employee agrees to be so employed, as President and Chief
Executive Officer of the Company for a term of five years commencing on May 17,
1998 and terminating on May 16, 2003.

     2. Paragraph 4 of the Agreement, as amended, is deleted in its entirety and
replaced with the following:

               "The Company shall pay Employee an annual salary as follows:

               (a) from May 17, 1998 to December 31, 1998, $170,000;

               (b) from January 1, 1999 to December 31, 1999, $180,000;

               (c) from January 1, 2000 to December 31, 2000, $190,000;

               (d) from January 1, 2001 to December 31, 2001, $200,000;

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               (e) from January 1, 2002 to December 31, 2002, $210,000;

               (f) from January 1, 2003 to May 16, 2003, $240,000;

     Said salary shall be paid in equal weekly installments subject to
appropriate withholding deductions.

     3. Except as herein amended, all other terms of the March 1, 1984
Employment Agreement, as amended effective May 17, 1988, shall remain in full
force and effect.

     IN WITNESS WHEREOF, the Parties have executed this Amendment No. 3 as of
October 23, 1998, effective May 17, 1998.

                   POLYMER RESEARCH CORP. OF AMERICA

                   By:   /s/ Irene Horowitz
                         ------------------------
                         Irene Horowitz,
                         Senior Vice-President

                         /s/ Carl Horowitz
                         ------------------------
                         Carl Horowitz, EmployeeExhibit 10.1

 

FIRST AMENDMENT TO LEASE

 

This First
Amendment to Lease is made as of April 21, 2003, by and between Watson
Land Company, a California corporation (“Landlord”) and Coastcast Corporation,
a California corporation (“Tenant”). 
This First Amendment to Lease amends and modifies the terms and
conditions of that certain Lease dated September 1, 1997 between Landlord and
Tenant (the “Lease”).  Capitalized terms
which are not otherwise defined in this First Amendment to Lease shall have the
meanings ascribed to such terms in the Lease.

 

RECITALS

 

A.                                   Landlord
and Tenant previously entered into the Lease setting forth the terms and
conditions relating to Tenant’s occupancy of certain premises commonly
described as 3025 East Victoria Street, Rancho Dominguez, California (the
“Premises”).

 

B.                                     The
Lease Term expires on October 31, 2003. 
Tenant has exercised its Extension Option for a period of sixty (60)
months commencing on November 1, 2003 and ending on October 31, 2008
(the “Extended Term”).

 

C.                                     Landlord
and Tenant desire to amend the Lease to reflect the agreement of Landlord and
Tenant on certain issues relating to Tenant’s continued use and occupancy of
the Premises for the Extended Term.

 

AGREEMENT

 

FOR VALUABLE
CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, the
parties hereby agrees as follows:

 

1.                                       The
following is hereby added to Article I, Item 1.4 of the Basic Lease Provisions:

 

“Effective
November 1, 2003, and upon the full execution and delivery of this First
Amendment to Lease, the Lease Term shall be extended for a period of sixty (60)
months, and the Lease Term, as so extended, shall terminate on October 31,
2008.”

 

2.                                       The
following is hereby added to Article I, Item 1.8 of the Basic Lease Provisions:

 

“Effective November
1, 2003, and upon the full execution and delivery of this First Amendment to
Lease, the Annual Tax Base Amount shall be increased to Thirty-Three Thousand

 

1

 

Eight Hundred
Eighty-Eight and 00/100ths Dollars ($33,888.00).”

 

3.                                       The
following is hereby added to Article I, Item 1.9 of the Basic Lease Provisions:

 

“Effective
November 1, 2003, and upon the full execution and delivery of this First
Amendment to Lease, the Annual Insurance Base Amount shall be increased to
Twenty-Three Thousand Six Hundred Fifty-Two and 00/100ths Dollars
($23,652.00).”

 

4.                                       The
following is hereby added to Article I, Item 1.10 of the Basic Lease
Provisions:

 

“Effective
November 1, 2003, the Security Deposit shall be increased to Forty-Eight
Thousand Four Hundred Seventy-Five and 00/100ths Dollars ($48,475.00).”

 

5.                                       The
following sentence is hereby added to the end of Paragraph 4.1 of the Lease:

 

“Effective on
November 1, 2003 monthly Minimum Rent payable under the Lease shall be
Forty-Eight Thousand Four Hundred Seventy-Five and 00/100ths
Dollars ($48,475.00).”

 

6.                                       The
following sentence is hereby added to the end of Paragraph 9.1 of the Lease:

 

“Effective on
November 1, 2003 and continuing throughout the Extended Term, Landlord shall
have no further obligation to repair and maintain the roof, repaint the
exterior of the Premises, asphalt paving and concrete paving of the
Premises.  Throughout the Extended Term,
these repair and maintenance responsibilities shall be performed by Tenant at
Tenant’s sole cost and expense, in addition to other repair and maintenance
obligations of Tenant as identified in the Lease.”

 

7.                                       The
term “Landlord” shall be replaced with term “Tenant” in each instance as the
term “Landlord” appears in Exhibit “A”, Section I (“Exterior Repainting”) and
Section J (“Resurfacing Paved Areas”). 
Tenant understands and acknowledges that the exterior of the Premises
will require repainting and the paved areas will require resurfacing during the
Extended Term.  Tenant agrees to perform
such repainting and resurfacing during the Extended Term at Tenant’s sole cost
and expense.

 

2

 

8.                                       Except
as specifically set forth in this First Amendment to Lease, the Lease remains
unmodified and in full force and effect, according to its terms.

 

IN WITNESS
WHEREOF, Landlord and Tenant have executed this First Amendment to Lease as of
the day herein first written above.

 

	
  Watson Land
  Company

  a California corporation

  	
  Coastcast
  Corporation

  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Bruce A.
  Choate

  	
   

  	
  /s/ Hans H.
  Buehler

  	
   

  
	
  Signature

  	
  Signature

  
	
  PRESIDENT
  & CEO

  	
   

  	
  CEO

  	
   

  
	
  Title

  	
  Title

  
	
  BRUCE A.
  CHOATE

  	
   

  	
  HANS H.
  BUEHLER

  	
   

  
	
  Printed Name

  	
  Printed Name

  
	
  5-19-03

  	
   

  	
   

  	
   

  
	
  Date

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Bradley
  D. Frazier

  	
   

  	
   

  	
   

  
	
  Signature

  	
  Signature

  
	
  Corporate
  Secretary

  	
   

  	
   

  	
   

  
	
  Title

  	
  Title

  
	
  BRADLEY D.
  FRAZIER

  	
   

  	
   

  	
   

  
	
  Printed Name

  	
  Printed Name

  
	
  5-19-03

  	
   

  	
   

  	
   

  
	
  Date

  	
  Date

  
					

 

3

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