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                               FINANCING AGREEMENT


          THIS FINANCING AGREEMENT, dated as of June 27, 1997 is by and between
TECH SQUARED INC., a Minnesota corporation (the "Borrower"), and FIRST BANK
NATIONAL ASSOCIATION, a National Banking Association (the "Lender").

                                    ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

          Section 1.1  DEFINED TERMS.  As used in this Agreement the following
terms shall have the following respective meanings:

          "ACCOUNTS":  Each and every right to payment of Borrower, whether such
right to payment arises out of a sale or lease of goods by Borrower, or other
disposition of goods or other property of Borrower, out of a rendering of
services by Borrower, out of a loan by Borrower, out of damage to or loss of
goods in the possession of a railroad or other carrier or any other bailee, out
of overpayment of taxes or other liabilities of Borrower, or which otherwise
arises under any contract or agreement, or from any other cause, whether such
right to payment now exists or hereafter arises and whether such right to
payment is or is not yet earned by performance and howsoever such right to
payment may be evidenced, together with all other rights and interest (including
all liens and security interests) which Borrower may at any time have by law or
agreement against any account debtor (as defined in the Uniform Commercial Code
in effect in the State of Minnesota) or other obligor obligated to make any such
payment or against any of the property of such account debtor or other obligor;
specifically (but without limitation), the term includes all present and future
instruments, documents, chattel papers, accounts and contract rights of
Borrower.

          "ACCOUNTS ADVANCE":  As defined in Section 2.1(a).

          "ADVANCE":  An Accounts Advance, an Inventory Advance, an Existing
Equipment Advance and/or a New Equipment Advance, as the context may require.

          "AFFILIATE":  When used with reference to any Person, (a) each Person
that, directly or indirectly, controls, is controlled by or is under common
control with, the Person referred to, (b) each Person which beneficially owns or
holds, directly or indirectly, five percent or more of any class of voting stock
of the Person referred to (or if the Person referred to is not a corporation,
five percent or more of the equity interest), (c) each Person, five percent or
more of the voting stock (or if such Person is not a corporation, five percent
or more of the equity interest) of which is beneficially owned or held, directly
or indirectly, by the Person referred to, and (d) each of such Person's
officers, directors, joint venturers and partners.  The term control (including
the terms "controlled by" and "under common control with") means the possession,
directly, of the power to direct or cause the direction of the management and
policies of the Person in question.

          "BORROWING BASE CERTIFICATE":  As defined in Section 2.2.

          "BUSINESS DAY":  Any day (other than a Saturday, Sunday or legal
holiday in the State of where the Lender is located).

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          "CLOSING DATE":  The date of this Agreement; PROVIDED that all the
conditions precedent to the making of the initial Advance, as set forth in
Article III, have been, or, on such Closing Date, will be, satisfied.  The
Borrower shall give the Lender not less than one Business Day's prior notice of
the day selected as the Closing Date.

          "ELIGIBLE ACCOUNTS":  Accounts owned by the Borrower which the Lender,
in its sole and absolute discretion, deems eligible for Advances, but which, at
a minimum, are subject to a first priority perfected security interest in favor
of the Lender and not subject to any assignment, claim or Lien other than the
Lien in favor of the Lender and other Liens consented to by the Lender in
writing, but specifically excluding (a)Accounts which are not earned;
(b)Accounts which are unpaid more than ninety (90) days after the original
invoice date; (c)Accounts owed by debtors 10% or more of whose Accounts owed are
otherwise ineligible; (d)Accounts representing progress billings, or retainages,
or for work covered by any payment or performance bond; (e)Accounts owed by any
of the Borrower's employees or Affiliates; (f)Accounts owed by debtors not
located in the United States, unless supported by a letter of credit issued by a
U.S. bank in favor of the Borrower which has been delivered to the Lender;
(g)Accounts as to which any warranty or representation contained in any security
agreement or other agreement of the Borrower with or given to the Lender with
respect to any such Receivable is untrue in any material respect; (h)Accounts as
to which the account debtor has disputed liability, or made any claim with
respect to any other Receivable due from such account debtor to the Borrower;
(i)Accounts subject to setoff; (j)Accounts as to which the account debtor has
filed a petition for bankruptcy or any other petition for relief under the
Bankruptcy Code, assigned any assets for the benefit of creditors, or if any
petition or other application for relief under the Bankruptcy Code has been
filed against the account debtor, or if the account debtor has failed, suspended
business, become insolvent, or has had or suffered a receiver or a trustee to be
appointed for all or a significant portion of its assets or affairs; (k)Accounts
owed by any government or government agency; (l)Accounts evidenced by a
promissory note or other instrument; and (m)Accounts as to which the Lender
believes that collection of any such Receivable is insecure or that any such
Receivable may not be paid by reason of the account debtor's financial inability
to pay.
     
          "ELIGIBLE INVENTORY":  Finished goods inventory of the Borrower which
the Lender, in its sole and absolute discretion, deems eligible for Advances,
but which meets the following minimum requirements:  (a) it is owned by the
Borrower, is subject to a first priority perfected security interest in favor of
the Lender, and is not subject to any assignment, claim or Lien other than (i)a
Lien in favor of the Lender and (ii)Liens consented to by the Lender in writing;
(b) it consists of finished product (not including work in process and
supplies); (c) if held for sale or lease or furnishing under contracts of
service, it is (except as the Lender may otherwise consent in writing) new and
unused; (d) except as the Lender may otherwise consent, it is not stored with a
bailee, warehouseman or similar party; if so stored with the Lender's consent,
such bailee, warehouseman or similar party has issued and delivered to the
Lender, in form and substance acceptable to the Lender, such documents and
agreements as the Lender may require, including, without limitation, warehouse
receipts therefor in the Lender's name; (e) the Lender has determined, in its
sole and absolute discretion, that it is not unacceptable due to age, type,
category, quality and/or quantity; (f) it is not held by the Borrower on
consignment and is not subject to any other repurchase or return agreement; (g)
it is not held by a customer of the Borrower or any other Person on consignment;
(h) it complies with all standards imposed by any governmental agency having
regulatory authority over such goods and/or their use, manufacture or sale; and
(i) the warranties, representations and covenants contained in any security
agreement or other agreement of the Borrower with or given to the Lender
relating directly or indirectly to the Borrower's Inventory are applicable to it
without exception.

          "FACILITY FEE":  As defined in Section 2.7.

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          "GAAP":  Generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession, which are applicable to the circumstances as of any date of
determination.

          "GUARANTOR":  Joel A. Ronning.

          "GUARANTY":  That Guaranty to be executed by the Guarantor in form and
substance satisfactory to the Lender.

          "INVENTORY":  Any and all of the Borrower's goods, including, without
limitation, goods in transit, wherever located which are or may at any time be
leased by the Borrower to a lessee, held for sale or lease, furnished under any
contract of service or held as raw materials, work in process, or supplies or
materials used or consumed in the Borrower's business, or which are held for use
in connection with the manufacture, packing, shipping, advertising, selling or
finishing of such goods, and all goods, the sale or other disposition of which
has given rise to a Receivable, which are returned to and/or repossessed and/or
stopped in transit by the Borrower or the Lender, or at any time hereafter in
the possession or under the control of the Borrower or the Lender, or any agent
or bailee of either thereof, and all documents of title or other documents
representing the same.

          "INVENTORY ADVANCE":  As defined in Section 2.1(b).

          "LOAN DOCUMENTS":  This Agreement, the Security Agreement, the
Guaranty, and any documents described in Section 3.1(a).
                    
          "LIEN":  With respect to any Person, any security interest, mortgage,
pledge, lien, charge, encumbrance, title retention agreement or analogous
instrument or device (including the interest of each lessor under any
capitalized lease), in, of or on any assets or properties of such Person, now
owned or hereafter acquired, whether arising by agreement or operation of law.

          "NEGATIVE PLEDGE AGREEMENT":  That Negative Pledge Agreement to be
executed by the Borrower in form and substance satisfactory to the Lender.

          "PERSON":  Any natural person, corporation, partnership, limited
partnership, joint venture, firm, association, trust, unincorporated
organization, government or governmental agency or political subdivision or any
other entity, whether acting in an individual, fiduciary or other capacity.

          "REFERENCE RATE":  The rate of interest from time to time publicly
announced by First Bank National Association as its "reference rate"; First Bank
National Association may lend to its customers at rates that are at, above or
below the Reference Rate.  For purposes of determining any interest rate
hereunder which is based on the Reference Rate, such interest rate shall change
as and when the Reference Rate changes.

          "SECURITY AGREEMENT":  That Security Agreement to be executed by the
Borrower in form and substance satisfactory to the Lender.

          "SUBORDINATION AGREEMENT":  That Subordination Agreement to be
executed by the Borrower, the Lender and Joel H. Ronning in form and substance
satisfactory to the Lender.

          "SUBSIDIARIES": Means Tabor Resources Corporation, a Minnesota
corporation, MacUSA, INC., a Minnesota corporation and PLI Corporation, a Nevada
corporation.

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          "TERMINATION FEE":  As defined in Article VII.

          Section 1.2  ACCOUNTING TERMS AND CALCULATIONS.  Except as may be
expressly provided to the contrary herein, all accounting terms used herein
shall be interpreted and all accounting determinations hereunder shall be made
in accordance with GAAP.

          Section 1.3  OTHER DEFINITIONAL TERMS,TERMS OF CONSTRUCTION. The words
"hereof", "herein" and "hereunder" and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement.  References to Sections, Exhibits, Schedules and 
the like references are to Sections, Exhibits, Schedules and the like of this
Agreement unless otherwise expressly provided.  The words "include", "includes"
and "including" shall be deemed to be followed by the phrase "without
limitation".  Unless the context in which used herein otherwise clearly
requires, "or" has the inclusive meaning represented by the phrase "and/or". 
All incorporations by reference of covenants, terms, definitions or other
provisions from other agreements are incorporated into this Agreement as if such
provisions were fully set forth herein, and include all necessary definitions
and related provisions from such other agreements.  All covenants, terms,
definitions and other provisions from other agreements incorporated into this
Agreement by reference shall survive any termination of such other agreements
until the obligations of the Borrower under this Agreement are irrevocably paid
in full.

                                   ARTICLE II

                                TERMS OF LENDING

          Section 2.1  THE ADVANCES.  On the terms and subject to the conditions
hereof, at the Borrower's request, the Lender, in its absolute and sole
discretion and without any commitment to do so, may make the following Advances
available to the Borrower:

               2.1(a)  up to seventy-five percent (75%) of the net amount of
Eligible Accounts which are listed in the Borrower's most current Borrowing Base
Certificate and which are deemed eligible for advances by the Lender, or such
greater or lesser percentage at the Lender's sole and absolute discretion (the
"Accounts Advances") not to exceed however the maximum amount of Two Million
Five Hundred Thousand and no/100 Dollars ( $2,500,000.00);

               2.1(b)  up to thirty percent (30%) of the net amount of Eligible
Inventory of finished goods which is listed in the Borrower's most current
Borrowing Base Certificate and which is deemed eligible for advances by the
Lender, or such greater or lesser percentage at the Lender's sole and absolute
discretion, not to exceed a maximum amount of $500,000 (the "Inventory
Advances");

Loans for additional sums requested by the Borrower may be made at the Lender's
sole discretion based upon the Lender's valuation of the Borrower's collateral
or other factors.  The Borrower acknowledges and agrees that the Lender may from
time to time, for the Lender's convenience, segregate or apportion the
Borrower's collateral for purposes of determining the amounts and maximum
amounts of Advances which may be made hereunder.  Nevertheless, the Lender's
security interest in all such collateral, and any other collateral rights,
interests and properties which may now or hereafter be available to the Lender,
shall secure and may be applied to the payment of any and all Advances and other
indebtedness secured by the Lender's security interest, in any order or manner
of application and without regard to the method by which the Lender determines
to make Advances hereunder.

          Section 2.2  PROCEDURE FOR ADVANCES; WIRE TRANSFER FEES.  Any request
by the Borrower for an Advance shall be in writing and must be given so as to be
received by the Lender

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not later than 10:30 a.m. Central time on the requested Advance date, or such 
later time as may be acceptable to the Lender in its sole discretion.  Each 
request for an Advance shall be irrevocable and shall be deemed a 
representation by the Borrower that on the requested Advance date and after 
giving effect to such Advance the applicable conditions specified in Article 
III have been and will continue to be satisfied and the representations and 
warranties set forth in Article IV will continue to be true.  Each request 
for an Advance shall specify the requested Advance date (which must be a 
Business Day) and the amount of such Advance.  Each request for an Advance 
shall be accompanied by a Borrowing Base Certificate signed by a duly 
authorized officer of the Borrower  in form and substance satisfactory to the 
Lender (the "Borrowing Base Certificate").  If the Lender determines, in its 
absolute and sole discretion, to make the requested Advance, the Lender will 
wire transfer to the Borrower's Account on the requested Advance date the 
amount of the requested Advance.  The Borrower will pay to the Lender a wire 
transfer fee of $15.00 per wire transfer.

          Section 2.3  INTEREST RATES AND INTEREST PAYMENTS.  Interest shall
accrue on the unpaid balance of the Advances at a floating rate, on a blended
basis, per annum equal to the sum of the Reference Rate plus 1.75% (the
"Applicable Rate") and shall be due and payable monthly in arrears on the last
day of each calendar month; PROVIDED, HOWEVER, that upon the occurrence and
during the continuance of any failure by the Borrower to comply with any
agreement or covenant of the Borrower under any Loan Document, the unpaid
balance of the Advances shall thereafter bear interest at a floating rate equal
to the sum of (a) the Applicable Rate, plus (b) 2% and shall be due and payable
on demand; AND PROVIDED FURTHER that the minimum amount of interest due and
payable in any  calendar quarter shall not be less than $10,000.  If the actual
total interest charge for any quarter is less than the minimum amount, the
difference will be added to the next month's interest billing.

          Section 2.4  INCENTIVE PRICING.  After the initial period of 180 days
following the date of this Agreement, if the Lender determines, in its sole and
absolute discretion, based upon the Borrower's financial statements and tested
by Lender upon receipt of the Borrower's fiscal year end audited financial
statements, that the Borrower is within seventy-five percent of its stated goal
of increased equity through profitability, the Applicable Rate shall be reduced
by one quarter of one percent (.25%) equal to the sum of the Reference Rate plus
1.50%.  If the Lender determines, in its sole and absolute discretion, based
upon the Borrower's financial statements and tested by Lender upon receipt of
the Borrower's fiscal year end audited financial statements, that the Borrower
is within seventy-five percent of its forecasted goal of increased equity
through profitability, the minimum quarterly interest requirement will be
eliminated.                

          Section 2.5  REPAYMENT AND PREPAYMENT.

     ALL ADVANCES SHALL BE DUE AND PAYABLE ON DEMAND; NOTHING SET FORTH IN THIS
AGREEMENT, THE SECURITY AGREEMENT OR ANY OTHER AGREEMENT BETWEEN THE BORROWER
AND THE LENDER SHALL IN ANY WAY LIMIT THE LENDER'S RIGHT TO DEMAND PAYMENT OF
THE ADVANCES IN WHOLE OR IN PART.

          Section 2.6  COMPUTATION.  Interest on the Advances shall be computed
on the basis of actual days elapsed and a year of 360 days.

          Section 2.7  FACILITY FEE.  The Borrower shall pay to the Lender a fee
in an amount equal to one-half of one percent (.50%) percent of the maximum
aggregate amount of the Accounts and Inventory Advances ($12,500) (the "Facility
Fee").  The Facility Fee shall be payable in advance on the Closing Date.

          Section 2.8  DEPOSITORY ACCOUNT.  The Borrower will maintain its 
depository account at First Bank National Association and shall be 
responsible for all reasonable and

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customary charges associated with the lockbox service, the depository 
accounts, and any other cash management services purchased from First Bank 
National Association as further described in paragraph 5.12(a)  of this 
Agreement.

                                   ARTICLE III

                              CONDITIONS PRECEDENT

          Section 3.1  CONDITIONS PRECEDENT.  No Advances shall be made
hereunder except upon the prior or simultaneous fulfillment of each of the
following conditions:

               3.1(a)  DOCUMENTS.  The Lender shall have received the following:

               (i)  This Agreement executed by a duly authorized officer (or
          officers) of the Borrower and dated the Closing Date.

               (ii)  A copy of the corporate resolutions of the Borrower
          authorizing the execution, delivery and performance of this Agreement
          and containing an incumbency certificate showing the names and titles,
          and bearing the signatures of, the officers of the Borrower authorized
          to execute this Agreement, certified as of the Closing Date by the
          Secretary or an Assistant Secretary of the Borrower.

               (iii)  A copy of the Articles of Incorporation of the Borrower
          with all amendments thereto, certified by the appropriate governmental
          official of the jurisdiction of its incorporation as of a date not
          more than 30 days prior to the Closing Date.

               (iv)  A certificate of good standing for the Borrower in the
          jurisdiction of its incorporation, certified by the appropriate
          governmental officials as of a date not more than 30 days prior to the
          Closing Date.

               (v)  A copy of the bylaws of the Borrower, certified as of the
          Closing Date by the Secretary or an Assistant Secretary of the
          Borrower.

               (vi)  The Security Agreement, duly executed by the Borrower.

               (vii)  An initial Borrowing Base Certificate in the form of
          Exhibit B hereto.

               (viii)  The Guaranty, duly executed by the Guarantor.

               (ix)  Evidence of insurance required to be maintained under
          Section 5.3, naming the Lender as loss payee in form and substance
          satisfactory to the Lender.

               (x)  The Subordination Agreement executed by the Borrower, the
          Lender and Joel A. Ronning in form and substance satisfactory to the
          Lender.

               3.1(b)  OTHER MATTERS.  All organizational and legal proceedings
relating to the Borrower and all instruments and agreements in connection with
the transactions contemplated by this Agreement shall be satisfactory in scope,
form and substance to the Lender and its counsel, and the Lender shall have
received all information and copies of all documents, including records of
corporate proceedings, which it may reasonably have requested in connection
therewith, such documents where appropriate to be certified by proper Borrower
or governmental authorities.

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               3.1(c)  FEES AND EXPENSES.  The Lender shall have received all
fees and other amounts due and payable by the Borrower on or prior to the
Closing Date, including the reasonable fees and expenses of counsel to the
Lender payable pursuant to Section 8.2.

               3.1(d)  PERFECTION.  The Security Agreement and/or any and all
financing statements with respect thereto shall have been appropriately filed to
the satisfaction of the Lender; the Lender shall have received UCC searches
and/or other Lien searches satisfactory to the Lender; and the priority and
perfection of the Lien created thereby shall have been established to the
satisfaction of the Lender.

                                   ARTICLE IV

                          REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants to the Lender:

          Section 4.1  ORGANIZATION, STANDING, ETC.  The Borrower is a
corporation duly incorporated and validly existing and in good standing under
the laws of the jurisdiction of its incorporation and has all requisite
corporate power and authority to carry on its business as now conducted, to
enter into this Agreement and to perform its obligations hereunder and
thereunder.  This Agreement has been duly authorized by all necessary corporate
action and when executed and delivered will be the legal and binding obligations
of the Borrower.  The execution and delivery of this Agreement will not violate
the Borrower's Articles of Incorporation or bylaws or any law applicable to the
Borrower.  No governmental consent or exemption is required in connection with
the Borrower's execution and delivery of this Agreement.

          Section 4.2  FINANCIAL STATEMENTS AND NO MATERIAL ADVERSE CHANGE.  The
Borrower's audited financial statements as at December 31, 1996 and its
unaudited financial statements as at April 30, 1997, as heretofore furnished to
the Lender, have been prepared on a basis consistent with its year end financial
statement.  The Borrower has no material obligation or liability not disclosed
in such financial statements, and there has been no material adverse change in
the condition of the Borrower since the dates of such financial statements.

          Section 4.3  LITIGATION.  There are no actions, suits or proceedings
pending or, to the knowledge of the Borrower, threatened against or affecting
the Borrower which, if determined adversely to the Borrower, would have, a
material adverse effect on the condition of the Borrower other than as described
in Borrower filings with regulatory authorities including Forms 10Q and 10K for
the most recent reporting periods prior to this Agreement.  The Borrower is not
in violation of any law or regulation (including environmental laws and
regulations and laws relating to employee benefit plans) where such violation
could reasonably be expected to impose a material liability on the Borrower.

          Section 4.4  TAXES.  The Borrower has filed all federal, state and
local tax returns required to be filed and has paid or made provision for the
payment of all taxes due and payable pursuant to such returns and pursuant to
any assessments made against it or any of its property (other than taxes, fees
or charges the amount or validity of which is currently being contested in good
faith by appropriate proceedings and with respect to which reserves in
accordance with GAAP have been provided on the books of the Borrower).

          Section 4.5  SUBSIDIARIES.  The Borrower's subsidiaries include: 
Tabor Resources Corporation, a Minnesota Corporation, MacUSA, Inc., a Minnesota
corporation, and PLI Corporation, a Nevada corporation.

                                    ARTICLE V

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                              AFFIRMATIVE COVENANTS

          Until this Agreement shall have expired or been terminated and all of
the Borrower's other obligations to the Lender under this Agreement shall have
been paid in full, unless the Lender shall otherwise consent in writing:

          Section 5.1  FINANCIAL STATEMENTS AND REPORTS.  The Borrower will
furnish to the Lender:

               5.1(a)  As soon as available and in any event within 120 days 
after the end of each fiscal year of the Borrower, consolidated financial
statements of the Borrower consisting of at least statements of income, cash
flow and changes in stockholders' equity, and a balance sheet as at the end of
such year, setting forth in each case in comparative form corresponding figures
from the previous annual audit, certified without qualification by Arthur
Andersen & Co. or other independent certified public accountants selected by the
Borrower and acceptable to the Lender.

               5.1(b)  As soon as available and in any event within 30 days 
after the end of each fiscal month, unaudited financial statements for the
Borrower for such month and for the period from the beginning of such fiscal
year to the end of such month, substantially similar to the annual audited
statements.

               5.1(c)  Concurrently with each request for an Advance, and in any
event not less than weekly, a Borrowing Base Certificate.

               5.1(d)  As soon as practicable and in any event within fifteen
days of the end of each month, (i) a listing of all accounts, together with an
aging of all accounts and a reconciliation of such accounts against the listing
submitted pursuant hereto for the immediately preceding month, (ii) a list of
all inventory, setting forth the cost of such inventory, and (iii) a listing of
all accounts payable, together with an aging of all accounts payable all in form
and substance satisfactory to the Lender.

               5.1(e)  As soon as filed, copies of all state and federal tax
returns filed by the Guarantor, together with an updated personal financial
statement of the Guarantor in form and substance satisfactory to the Lender.

               5.1(f)  Within five days after the due date, proof of payment or
deposit, when due, of all withholding and F.I.C.A. taxes owing by the Borrower
from time to time, in form and substance satisfactory to the Lender by a payroll
service satisfactory to the Lender and whose services the Borrower shall at all
times retain.

               5.1(g)  From time to time, such other information regarding the
business, operation and financial condition of the Borrower as the Lender may
reasonably request.

          Section 5.2  CORPORATE EXISTENCE.  The Borrower will maintain its
corporate existence in good standing under the laws of its jurisdiction of
incorporation and its qualification to transact business in each jurisdiction
where failure so to qualify would permanently preclude the Borrower from
enforcing its rights with respect to any material asset or would expose the
Borrower to any material liability.

          Section 5.3  INSURANCE.  The Borrower will maintain with 
financially sound and reputable insurance companies such insurance as may be 
required by law and such other insurance in such amounts and against such 
hazards as is customary in the case of reputable corporations

                                       -8-
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engaged in the same or similar business and similarly situated, including 
without limitation such insurance as may be required under the Security 
Agreement.

          Section 5.4  PAYMENT OF TAXES AND CLAIMS.  The Borrower will file all
tax returns and reports which are required by law to be filed by it and will pay
before they become delinquent, all taxes, assessments and governmental charges
and levies imposed upon it or its property and all claims or demands of any kind
(including those of suppliers, mechanics, carriers, warehousemen, landlords and
other like Persons) which, if unpaid, might result in the creation of a Lien
upon its property.

          Section 5.5  INSPECTION.  The Borrower will permit any Person
designated by the Lender to visit and inspect any of the properties, books and
financial records of the Borrower, to examine and to make copies of the books of
accounts and other financial records of the Borrower, and to discuss the
affairs, finances and accounts of the Borrower with its officers at such
reasonable times and intervals as the Lender may designate.  The Borrower shall
also allow the Lender and its agents to conduct periodic collateral audits of
the Borrower's assets at such intervals as the Lender may choose, and the
Borrower shall pay to Lender a fee in the amount of $750 per day of the
collateral audit, plus out-of-pocket costs and expenses incurred in connection
with such collateral audits, (provided that so long as no Event of Default (as
that term is defined in the Security Agreement) has occurred under the Security
Agreement and is continuing, the Borrower shall not be require to pay for more
than two collateral audits in any calendar year).  

          Section 5.6  MAINTENANCE OF PROPERTIES.  The Borrower will maintain
its properties in good condition, repair and working order, and supplied with
all necessary equipment, and make all necessary repairs, renewals, replacements,
betterments and improvements thereto, all as may be necessary so that the
business carried on in connection therewith may be properly and advantageously
conducted at all times.

          Section 5.7  BOOKS AND RECORDS.  The Borrower will keep adequate and
proper records and books of account in which full and correct entries will be
made of its dealings, business and affairs.

          Section 5.8 COMPLIANCE.  The Borrower will comply in all material
respects with all laws, rules and regulations to which it may be subject.

          Section 5.9  NOTICE OF LITIGATION.  The Borrower will give prompt
written notice to the Lender of the commencement of any action, suit or
proceeding affecting the Borrower.

          Section 5.10  PLANS.  The Borrower will maintain any employee benefit
plans in compliance with all material requirements of applicable laws and
regulations.


          Section 5.11  REAFFIRMATION OF GUARANTIES.  When so requested by the
Lender from time to time, the Borrower will promptly cause the Guarantor or any
other Persons who have guaranteed the obligations of the Borrower hereunder or
any part thereof to execute and deliver to the Lender reaffirmations of their
respective guaranties in such form as the Lender may require.

          Section 5.12  SPECIAL AGREEMENTS REGARDING ACCOUNTS.

               5.12(a)  Collection of Accounts and all other amounts due to 
the Borrower shall be subject to the provisions of paragraphs 5 and 6 of the 
Security Agreement concerning the Lockbox and Collateral Account (as those 
terms are defined in the Security Agreement).  The Borrower shall provide to 
the Lender a daily collection report of all Accounts collected.  All 
collections received in the Collateral Account and reported to Republic 
before 8:00 a.m. (Central 

                                       -9-
<PAGE>

time) on any Business Day that is a Monday through Thursday, or before
2:00 p.m. (Central time) on any Business Day that is a Friday, shall be applied
to the payment of the Advances (in such order of application as the Lender may
determine) on the day so received, or otherwise on the next business day;
PROVIDED HOWEVER, that for purposes of determining the interest due and payable
on the unpaid balance of the Advances under Section 2.3, all collections
received in the Collateral Account shall be applied to the unpaid balance of the
Advances when such collections become finally collected funds (except wire
transfers which shall be deemed to be immediately available funds) after
allowing not less than Two (2) Business Days for collection.  At Lender's
request, the Borrower will deliver all customer billing statements to the Lender
for examination and for mailing in the Borrower's stamped and addressed
envelopes.

               5.12(b)  Subject to the rights granted to the Lender in paragraph
5 of the Security Agreement, all ledger sheets or cards, invoices, shipping
records, correspondence, and other writings relating to accounts shall, until
delivered to the Lender or removed by the Lender from the Borrower's premises,
be kept on the Borrower's premises without cost to the Lender in appropriate
containers in safe places.

               5.12(c)  Upon the Lender's demand for payment, the Lender may
remove from the Borrower's premises all books and records, correspondence,
documents and files relating to accounts; and the Lender may without cost or
expense to the Lender use such of the Borrower's personnel, supplies, space and
equipment at the Borrower's place of business as the Lender may desire for the
handling of collections.  The Borrower will pay any and all out of pocket
expenses and cost of collection (including reasonable attorney fees) incurred by
the Lender in the Lender's handling of or effort to enforce collections.

               5.12(d)  The Borrower warrants that, except as may be disclosed
in the lists of Accounts furnished to the Lender: each customer billing
statement correctly states the subject matter and terms of sale; the merchandise
conforms thereto and is in all material respects acceptable to the customer; the
date of the billing statement is not prior to the date of shipment; the Account
is not subject to any dispute, defense, offset or counterclaim; the account
debtor is not a subsidiary or affiliated company; and the Borrower has no reason
to believe the Account will not be paid in the regular course of business.  The
Borrower will notify the Lender promptly of any event, circumstance or
communication with respect to any Account that is inconsistent with the
foregoing representation.

                                   ARTICLE VI

                               NEGATIVE COVENANTS

          Until this Agreement shall have expired or been terminated and all of
the Borrower's other obligations to the Lender under this Agreement shall have
been paid in full, unless the Lender shall otherwise consent in writing:

          Section 6.1  MERGER.  The Borrower will not merge or consolidate or
enter into any analogous reorganization or transaction with any Person or
liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution).

          Section 6.2  SALE OF ASSETS.  The Borrower will not sell, transfer,
lease or otherwise convey all or any substantial part of its assets except for
sales and leases of inventory in the ordinary course of business.

          Section 6.3  DIVIDENDS.  The Borrower will not pay any dividends or
otherwise make any distributions on, or redemptions of, any of its outstanding
stock.

                                      -10-
<PAGE>

          Section 6.4  INVESTMENTS.  The  Borrower will not make any loans,
advances or extensions of credit to any other Person (except for trade and
customer accounts receivable for inventory sold or services rendered in the
ordinary course of business and payable in accordance with customary trade
terms) or purchase or acquire any stock or other debt or equity securities of or
any interest in any other Person or any integral part of any business or the
assets comprising such business or part thereof, except for: 

               6.4(a) Investments in readily marketable direct obligations
issued or unconditionally guaranteed by the United States government or any
agency thereof and supported by the full faith and credit of the United States.

               6.4(b)  Certificates of deposit or bankers' acceptances issued by
any commercial Bank organized under the laws of the United States or any State
thereof which has (i) combined capital and surplus of at least $100,000,000, and
(ii) a credit rating with respect to its unsecured indebtedness from a
nationally recognized rating service that is satisfactory to the Lender.

               6.4(c)  Commercial paper given the highest rating by a nationally
recognized rating service.

               6.4(d)  Repurchase agreements relating to securities of the kind
described in Section 6.4 (a).

               6.4(e)  Other readily marketable investments in debt securities 
which are reasonably acceptable to the Lender.

               6.4(f)  Travel advances to officers and employees in the ordinary
course of business.      

Any investments under clauses (a), (b), (c) or (d) above must mature within one
year of the acquisition thereof by the Borrower.

          Section 6.5  INDEBTEDNESS.  The Borrower will not borrow any money or
issue any bonds, debentures or other debt securities or otherwise become
obligated on any interest-bearing indebtedness except for the Advances under
this Agreement and except for existing indebtedness as disclosed on the most
recent financial statement of the Borrower referred to in Section 4.1.

          Section 6.6  LIENS.  The Borrower will not create, incur, assume or
suffer to exist any Lien, or enter into any arrangement for the acquisition of
any property through conditional sale, lease-purchase or other title retention
agreements except:

               6.6(a)  Liens granted to the Lender.

               6.6(b)  Liens existing on the date of this Agreement and
disclosed in those UCC or other Lien searches referred to in Section 3.1(d).

               6.6(c)  Deposits or pledges to secure payment of workers' 
compensation, unemployment insurance, old age pensions or other social security
obligations arising in the ordinary course of business of the Borrower.

               6.6(d)  Liens for taxes, fees, assessments and governmental 
charges not delinquent.

               6.6(e)  Liens of carriers, warehousemen, mechanics and 

                                      -11-
<PAGE>

materialmen, and other like Liens arising in the ordinary course of business,
for sums not due.

               6.6(f)  Liens incurred or deposits or pledges made or given in 
connection with, or to secure payment of, indemnity, performance or other
similar bonds.

               6.6(g)  Encumbrances in the nature of zoning restrictions, 
easements and rights or restrictions of record on the use of real property and
landlord's Liens under leases on the premises rented, which do not materially
detract from the value of such property or impair the use thereof in the
business of the Borrower.

          Section 6.7  CONTINGENT OBLIGATIONS.  The Borrower will not guarantee
or otherwise become liable on the indebtedness of any other Person.

          Section 6.8. NEGATIVE PLEDGE. So long as any amounts remain
outstanding under this Agreement Borrower will not pledge, sell, assign or
encumber any option or share of securities owned of Hanover Gold Company, Inc.,
Cam Designs, Inc. or Digital River, Inc.

                                   ARTICLE VII

                             TERMINATION BY BORROWER

          This agreement shall continue in effect until terminated upon not less
than  30 days' prior written notice delivered by the Borrower certified mail to
Lender by certified mail.Termination shall not impair or affect the Lender's
rights existing as of the time notice of Termination is given. Borrowers
obligations with respect to payment of any Termination fee shall be fixed and
owing as of date such notice is given and not when such notice becomes
effective.

           If the Borrower gives notice to Lender of its intention to prepay its
loan in full and terminate this Agreement by refinancing with another lender
during months 1-12 of the loan, the Borrower shall pay to the Lender a
termination fee equal to two percent (2%) of the maximum aggregate amount of the
Accounts and Inventory Advances (the "Termination Fee").  The  Termination Fee
shall be reduced to one percent (1%) if the Borrower gives Lender notice of its
intent to terminate this Agreement by refinancing with another lender during
months 13-24 of the loan, HOWEVER, no prepayment charge will be incurred in the
event that this Agreement is refinanced by an affiliate of First Bank System and
all of Borrower's obligations to Lender are paid in full with the proceeds of
such refinancing.

                                  ARTICLE VIII

                                  MISCELLANEOUS

          Section 8.1  MODIFICATIONS.  Notwithstanding any provisions to the
contrary herein, any term of this Agreement may be amended with the written
consent of the Borrower; PROVIDED that no amendment, modification or waiver of
any provision of this Agreement or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be in writing
and signed by the Lender, and then such amendment, modifications, waiver or
consent shall be effective only in the specific instance and for the purpose for
which given.

          Section 8.2  COSTS AND EXPENSES. Whether or not the transactions 
contemplated hereby are consummated, the Borrower agrees to reimburse the 
Lender upon demand for all reasonable out-of-pocket expenses paid or incurred 
by the Lender (including filing and recording costs and fees and expenses of 
Dorsey & Whitney LLP, counsel to the Lender) in connection with the 
negotiation, preparation, approval, review, execution, delivery, amendment, 
modification, interpretation, collection and enforcement of this Agreement 
including all fees due Lender incurred 

                                      -12-
<PAGE>

pursuant to this Agreement. The obligations of the Borrower under this 
Section shall survive any termination of this Agreement. In the event such 
costs, fees or expenses are not promptly paid by Borrower on demand Lender 
may  set off the amount of any such costs, fees or expenses from funds 
available to Borrower. If the Borrower elects, the Borrower may treat the 
amount of any such costs, fees or expenses as an Advance hereunder.

          Section 8.3  WAIVERS, ETC.  No failure on the part of the Lender to
exercise and no delay in exercising any power or right hereunder shall operate
as a waiver thereof; nor shall any single or partial exercise of any power or
right preclude any other or further exercise thereof or the exercise of any
other power or right.  The rights and remedies of the Lender hereunder are
cumulative and not exclusive of any right or remedy the Lender otherwise has.

          Section 8.4  NOTICES.  Except when telephonic notice is expressly
authorized by this Agreement, any notice or other communication to any party in
connection with this Agreement shall be in writing and shall be sent by manual
delivery, telegram, telex, facsimile transmission, overnight courier or United
States mail (postage prepaid) addressed to such party at the address specified
on the signature page hereof, or at such other address as such party shall have
specified to the other party hereto in writing.  All periods of notice shall be
measured from the date of delivery thereof if manually delivered, from the date
of sending thereof if sent by telegram, telex or facsimile transmission, from
the first Business Day after the date of sending if sent by overnight courier,
or from four days after the date of mailing if mailed; PROVIDED, HOWEVER, that
any notice to the Lender under Article II hereof shall be deemed to have been
given only when received by the Lender.

          Section 8.5  SUCCESSORS AND ASSIGNS; DISPOSITION OF LOANS. This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, except that the Borrower may not
assign its rights or delegate its obligations hereunder without the prior
written consent of the Lender.  The Lender may at any time sell, assign,
transfer, grant participations in, or otherwise dispose of any portion of the
Advances to banks or other financial institutions.  The Lender may disclose any
information regarding the Borrower in the Lender's possession to any prospective
buyer or participant.

          Section 8.6  OFFSET.  The Borrower hereby irrevocably authorizes the
Lender to set off all sums owing by the Borrower to the Lender against all
deposits and credits of the Borrower with, and any and all claims of the
Borrower against, the Lender.  The Borrower further agrees that any bank
participating with the Lender in Advances hereunder may exercise any and all
rights of setoff with respect to such participation as fully as if such
participant had lent directly to the Borrower the amount of such participation.

          SECTION 8.7  GOVERNING LAW AND CONSTRUCTION.  THE VALIDITY,
CONSTRUCTION AND ENFORCEABILITY OF THIS AGREEMENT SHALL BE GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF
LAWS PRINCIPLES THEREOF.

          SECTION 8.8  CONSENT TO JURISDICTION.  AT THE OPTION OF THE LENDER, 
THIS AGREEMENT MAY BE ENFORCED IN ANY FEDERAL COURT OR MINNESOTA STATE COURT 
SITTING IN HENNEPIN COUNTY, MINNESOTA; AND THE BORROWER CONSENTS TO THE 
JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE 
IN SUCH FORUMS IS NOT CONVENIENT.  IN THE EVENT THE BORROWER COMMENCES ANY 
ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY 
ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS 

                                      -13-
<PAGE>

AGREEMENT, THE LENDER AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE 
TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR IF 
SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE 
DISMISSED WITHOUT PREJUDICE.

          SECTION 8.9  WAIVER OF JURY TRIAL.  EACH OF THE BORROWER AND THE
LENDER IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE ADVANCES AND ANY
OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          Section 8.10  INDEMNIFICATION.  The Borrower hereby agrees to defend,
protect, indemnify and hold harmless the Lender and its affiliates and the
directors, officers, employees, attorneys and agents of the Lender and its
affiliates (each of the foregoing being an "Indemnitee" and all of the foregoing
being collectively the "Indemnitees") from and against any and all claims,
actions, damages, liabilities, judgments, costs and expenses (including all
reasonable fees and disbursements of counsel which may be incurred in the
investigation or defense of any matter) imposed upon, incurred by or asserted
against any Indemnitee, whether direct, indirect or consequential and whether
based on any federal, state, local or foreign laws or regulations (including
securities laws, environmental laws, commercial laws and regulations), under
common law or on equitable cause, or on contract or otherwise:             (a) 
by reason of, relating to or in connection with the execution, delivery,
performance or enforcement of any Loan Document, any commitments relating
thereto, or any transaction contemplated by any Loan Document; or          (b)
by reason of, relating to or in connection with any credit extended or used
under the Loan Documents or any act done or omitted by any Person, or the
exercise of any rights or remedies thereunder, including the acquisition of any
collateral by the Lender by way of foreclosure of the Lien thereon, deed or bill
of sale in lieu of such foreclosure or otherwise; provided, however, that the
Borrower shall not be liable to any Indemnitee for any portion of such claims,
damages, liabilities and expenses resulting from such Indemnitee's negligence or
willful misconduct.  In the event this indemnity is unenforceable as a matter of
law as to a particular matter or consequence referred to herein, it shall be
enforceable to the full extent permitted by law.

          Section 8.11  CAPTIONS.  The captions or headings herein and any table
of contents hereto are for convenience only and in no way define, limit or
describe the scope or intent of any provision of this Agreement.

          Section 8.12  ENTIRE AGREEMENT.  This Agreement and the other Loan
Documents embody the entire agreement and understanding between the Borrower and
the Lender with respect to the subject matter hereof and thereof. This Agreement
supersedes all prior agreements and understandings relating to the subject
matter hereof.

          Section 8.13  COUNTERPARTS.  This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument, and either of the parties hereto may execute this Agreement by
signing any such counterpart.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date first above written.


                    TECH SQUARED INC. a Minnesota corporation

                    By
                      ---------------------------------------

                                      -14-
<PAGE>

                                      Print Name
                                      -----------------------------------
                                      Title
                                      -----------------------------------
Borrower's Address:
5198 West 76th Street
Edina, MN  55439

                                      FIRST BANK NATIONAL ASSOCIATION

                                      By
                                      --------------------------------------
                                      Print Name
                                      --------------------------------------
                                      Title
                                      --------------------------------------
Lender's Address:
2338 Central Avenue NE
Minneapolis, MN 55418
Fax: (612) 782-1801

                                      -15-
<PAGE>

     [Suggested form of Certificate of
                                         Resolutions and Incumbency Certificate]

                           CERTIFICATE OF SECRETARY OF
                                TECH SQUARED INC.


I, _________________________ , hereby certify to FIRST BANK NATIONAL ASSOCIATION
that I am the Secretary of Tech Squared Inc., a Minnesota corporation (the
"Company") and that the following resolutions have been duly adopted by the
Board of Directors of the Company in a manner authorized by the laws of the
State of Minnesota: 

          "WHEREAS, the Company wishes to borrow money from FIRST BANK NATIONAL
     ASSOCIATION (the "Lender"), and for that purpose intends to enter into a
     Financing Agreement with the Lender.

          RESOLVED, the Company shall enter into a Financing Agreement with the
     Lender under which the Company may obtain advances up to $2,500,000, or
     such greater or lesser amount in the Lender's absolute and sole discretion
     and the President, Vice President, Secretary or Treasurer of the Company is
     hereby authorized at any time and from time to time to execute and deliver
     to the Lender such Financing Agreement and any security agreements,
     mortgages, subordination agreements, pledge agreements, assignments of life
     insurance, reimbursement agreements, or amendments to any of the foregoing
     as may be contemplated or required pursuant to such Financing Agreement or
     otherwise, all in such form as such officer may determine and approve (such
     determination and approval to be established conclusively by such officer's
     execution and delivery of such Financing Agreement and any such related
     documents and instruments). 

          FURTHER RESOLVED, that the President, Vice President, Secretary or
     Treasurer of the Company is hereby authorized at any time and from time to
     time to sell, assign, transfer, mortgage, create security interests in and
     pledge to the Lender the real property, goods, instruments, documents,
     securities, chattel paper, accounts, contract rights and other intangibles
     and any other property now owned or hereafter acquired by the Company,
     either absolutely for such consideration as such officer may determine to
     be appropriate or as security for the payment or performance of any or all
     debts, liabilities and obligations of every type and description now or at
     any time hereafter owed to the Lender by the Company, on such terms as such
     officer may approve, and to do such other acts or things in connection
     therewith or pursuant thereto as such officer may determine to be
     appropriate (such determination and approval to be established conclusively
     by the instrument executed or action taken by such officer).

          FURTHER RESOLVED, it is hereby acknowledged that each and every note,
     guaranty, security agreement and other instrument made pursuant to the
     foregoing resolutions is and will be made and given for the corporate
     purposes of this Company.

          FURTHER RESOLVED, the Secretary or Assistant Secretary shall certify
     to the Lender the names and signatures of the persons who presently are
     duly elected, qualified and acting as the officers authorized to act under
     the foregoing resolutions, and the Secretary or Assistant Secretary shall
     from time to time hereafter, upon a change in the facts so certified,
     immediately certify to the Lender the names and signatures of the persons
     then authorized to sign or to act; the Lender shall be fully protected in
     relying on such certificates and on the obligation of the Secretary or an
     Assistant Secretary immediately to certify to the Lender any change in any
     fact certified, and the Lender shall be indemnified and saved harmless by
     the Company from any and all claims, demands, expenses, costs and damages

                                      -16-
<PAGE>

     resulting from or growing out of honoring or relying on the signature or
     other authority (whether or not properly used) of any officer whose name
     and signature was so certified, or refusing to honor any signature or
     authority not so certified."

I further certify that the foregoing resolutions have not been amended or
revoked and are in full force and effect on the date hereof.

I further certify that the Board of Directors of the Company has, and at the
time of adoption of the foregoing resolutions had, full power and lawful
authority to adopt the foregoing resolutions and to confer the powers therein
granted upon the officers designated, and that such officers have full power and
authority to exercise the same.

I further certify that attached here as Exhibit A is a true, complete and
correct copy of the Articles of Incorporation of the Company as certified by the
Minnesota Secretary of State on June 12, 1997.  Said Articles of Incorporation
have not been amended since July 11, 1995, and are in full force and effect on
the date hereof.

I further certify that attached hereto as Exhibit B is a true, complete and
correct copy of the Bylaws of the Company.  Said Bylaws are in full force and
effect on the date hereof.

I further certify that the officers whose names appear below have been duly
elected to and now hold the offices in the Company set forth opposite their
respective names and that the signature appearing opposite the name of each of
such officer is authentic and official:

     Name                   Title                 Signature

----------------     -------------------     -------------------
----------------     -------------------     -------------------
----------------     -------------------     -------------------


I further certify that shareholder approval of the foregoing resolutions is not
required and said resolutions are effective and binding on the Company without
approval by its shareholders.

Dated
     ------------------------


                                                --------------------------------
                                                 Secretary, Tech Squared Inc.

----------------------
Attest by a Director

                                      -17-