1
                                                                    EXHIBIT 10.7



                                REVOLVING NOTE


U.S. $5,000,000                                                 August 31, 1995

         FOR VALUE RECEIVED,  the undersigned, Stuart Entertainment, Inc.,
a Delaware corporation (the "Borrower"), promises to pay to the order of Bank
of America Illinois (the "Lender") on December 13, 1999 the principal sum of
Five Million Dollars (U.S. $5,000,000) or, if different, the aggregate unpaid
principal amount of all Revolving Loans made by the Lender pursuant to that
certain Credit Agreement, dated as of December 13, 1994 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
"Credit Agreement"), among the Borrower, 1089350 Ontario Inc.  (n/k/a Bingo
Press & Specialty Limited), the various financial institutions (including the
Lender) as are, or may from time to time become, parties thereto, Bank of
America National Trust and Savings Association, as agent as provided therein,
and Bank of America Canada, as agent as provided therein, regardless of whether
such principal amount is shown on the schedule attached hereto (or any
continuation thereof).

         The Borrower also promises to pay interest on the unpaid principal
amount hereof from time to time outstanding from the date hereof until maturity
(whether by acceleration or otherwise) and, after maturity and/or judgment,
until paid, at the rates per annum and on the dates specified in the Credit
Agreement.

         Payments of both principal and interest are to be made in lawful money
of the United States of America in same day or immediately available funds to
the account designated by the U.S. Agent pursuant to the Credit Agreement.

         This Note, together with that certain Revolving Note of even date
herewith (the "Chase Revolving Note") in the principal amount of U.S.
$5,000,000 issued by Borrower to The Chase Manhattan Bank (National
Association), replaces in its entirety that certain Revolving Note dated
December 13, 1994 (the "Original Revolving Note") in the principal amount of
U.S. $10,000,000 issued by Borrower to Lender. This Note and the Chase
Revolving Note do not constitute a repayment or novation of the Indebtedness of
Borrower under the Original Term Note.

         This Note is one of the Revolving Notes referred to in, and evidences
Indebtedness incurred under, the Credit Agreement, to which reference is made
for a statement of the terms and conditions on which the Borrower is permitted
and required to make prepayments and repayments of principal of the
Indebtedness evidenced by this Note and on which such Indebtedness may be
declared to be immediately due and payable. Unless otherwise defined, terms
used herein have the meanings provided in the Credit Agreement.
   2
         ALL PARTIES HERETO, WHETHER AS MAKERS, ENDORSERS, OR OTHERWISE,
SEVERALLY WAIVE PRESENTMENT FOR PAYMENT, DEMAND, PROTEST AND NOTICE OF
DISHONOR.

         THIS NOTE SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF
ILLINOIS.

                                           STUART ENTERTAINMENT, INC.



                                           By 
                                              ------------------------------
                                           Title: 
                                                  --------------------------



                                      2
   3


                                                        Grid
       
       
                                                                             Portion of         
                                                                             Principal          
                                                                         Balance Maintained     
                                                                         ------------------                                         
                                                                                                     Applicable BA
                                Amount of         Outstanding          BA                Base            Rate     
             Amount of          Principal          Principal          Rate               Rate          Interest           Notation
Date         Term Loan           Payment            Balance           Loan               Loan           Period              Made
- ----         ---------           -------            -------           ----               ----           ------              ----
                                                                                                     





                                      3