Revolving Credit Agreement

REVOLVING REAL ESTATE NOTE
(CONSTRUCTION)


$3,000,000 Minneapolis, Minnesota
November __, 1997


1. FOR VALUE RECEIVED, LUNDREN BROS. CONSTRUCTION, INC., a Minnesota corporation (the "Borrower"), hereby promises to pay to the order of NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, a national banking association, its successors and assigns (the "Lender"), at its banking house located in Minneapolis, Minnesota, the principal sum of Three Million and 00/100 Dollars ($3,000,000), or so much thereof as may have been disbursed to or for the benefit of the Borrower in lawful money of the United States and immediately available funds under and pursuant to that certain Loan Agreement dated November __, 1997, by and between the Borrower and the Lender (as the same may be amended and/or restated from time to time, the "Loan Agreement"), together with interest on the unpaid balance accruing as of the date hereof at a rate equal at all times to one percent (1%) per annum in excess of the "Base Rate of Interest" (as that term is defined herein), as the same may change from time to time and be adjusted in the manner set forth herein. Subject to the terms and conditions set forth in the Loan Agreement, the proceeds of this Note may be advanced, repaid and readvanced hereunder so long as no Event or Event of Default (as those terms are defined in the Loan Agreement) shall have occurred and be then continuing.


2. Accrued interest hereon shall be payable monthly commencing on November 1, 1997, and continuing on the first (1st) day of each calendar month thereafter until this Note is paid in full. Accrued interest shall also be due and payable on the Expiration Date (as defined in the Loan Agreement). The principal balance of this Note shall be due and payable in full on the Expiration Date.


3. In all cases interest on this Note shall be calculated on the basis of a 360 day year but charged for actual days principal is unpaid.


4. As used herein, the term "Base Rate of Interest" shall mean the base rate of interest (or equivalent successor rate) set or announced from time to time by the Lender as its base rate, whether or not the Lender makes loans to other borrowers at, above or below said rate.


5. The rate of interest due hereunder shall initially be determined as of the date hereof and shall thereafter be adjusted, as and when, and on the same day that, the Base Rate of Interest changes (each such day hereinafter being referred to as an "Adjustment Date"). All such ...