<PAGE>
[LOAN No. 04-698-610374-1]

                                   PROMISSORY NOTE

$8,190,000 (U.S.)                                           SEATTLE, WASHINGTON
                                                            MARCH 18,1998

     FOR VALUE RECEIVED, the undersigned (individually and collectively,
"Borrower"), jointly and severally, promise to pay to the order of WASHINGTON
MUTUAL BANK a Washington corporation, at its office at 1201 Third Avenue,
Seattle, Washington 98101, or at such other place as the holder of this Note
(hereinafter, "holder") may from time to time designate in writing, the sum of
EIGHT MILLION ONE HUNDRED NINETY THOUSAND DOLLARS ($8,190,000) in lawful money
of the United States, with interest thereon from the date of this Note until
paid at the rate set forth below, computed on monthly balances.  Interest for
each full calendar month during the term of this Note shall be calculated on the
basis of a 360-day year and twelve 30-day months. Interest for any partial
calendar month at the beginning or end of the term of this Note shall be
calculated on the basis of a 365 or 366-day year and the actual number of days
in that month.

     SECTION 1. INTEREST RATE.

     The per annum interest rate hereunder (the "Note Rate") shall be seven and
thirty-five one-hundredths percent (7.35%).

     SECTION 2. MONTHLY PAYMENTS.

     Beginning on May 1, 1998 and on the same day of each and every calendar
month thereafter throughout the term of this Note (the "Monthly Payment Dates"),
Borrower shall make monthly payments of principal and interest (the "Monthly
Payment Amounts") to holder in the amount of NINETY-SIX THOUSAND FIVE HUNDRED
SEVENTY-SIX and 77/100 DOLLARS ($96,576.77).

     SECTION 3. MATURITY.

     Unless sooner repaid by Borrower, the entire unpaid principal balance of
this Note, plus all accrued but unpaid interest, and all other amounts owing
hereunder or under the Security Documents (as defined in Section 7) shall be due
and payable in full on April 1, 2008 (the "Maturity Date").

     SECTION 4. APPLICATION OF PAYMENTS.

     Payments shall be applied: (i) first, to the payment of accrued 
interest; (ii) second, at the option of holder, to the payment of any other 
amounts owing under this Note or secured by the Security Documents, other 
than accrued interest and principal, including, but not limited to advances 
holder may have made for taxes, assessments, insurance premiums, attorneys' 
fees or other charges on any property given as security for this Note and 
late charges due hereunder, and (iii) third, to the reduction of principal of 
this Note.

     SECTION 5. PREPAYMENT.

     Borrower may, upon thirty (30) days' prior written notice to holder, 
prepay its obligation under this Note in full or in part on any Monthly 
Payment Date upon payment of a premium (the "Prepayment Premium") equal to 
the greater of:

          (i)    The "Present Value Premium" (as hereinafter defined); and

          (ii)   Two percent (2.00%) of the amount prepaid.

<PAGE>

Arvada Note

     The "Present Value Premium" shall be the present value, as of the date 
of prepayment, of a stream of monthly interest payments for the period 
remaining to the Maturity Date of this Note, computed on the basis of:(i) the 
amount prepaid; and (ii) an interest rate equal to the amount, if any, by 
which (A) the Note Rate exceeds (B) the "Reinvestment Rate" (as hereinafter 
defined). Each of such monthly interest payments shall be discounted to 
present value at the "Reinvestment Rate" from the applicable Monthly Payment 
Date to the date of prepayment.

     The "Reinvestment Rate" shall be based on the weekly average treasury 
constant maturity yields reported in Publication H.15. The figures in the 
most recent edition of Publication H.15 available as of the prepayment date 
that appear in the column for the week ending immediately preceding the date 
of such edition shall be used for purposes of the Reinvestment Rate 
calculation. The Reinvestment Rate shall be the yield adjusted to constant 
maturities stated in Publication H.15 for the United States government 
security having a maturity that most closely corresponds to the Maturity Date 
of this Note, determined by linear interpolation between the yields reported 
in Publication H.15, if necessary, plus two percent (2.00%).

     Holder may, in its reasonable discretion, select an alternative source of
the Reinvestment Rate if Publication H.1 5 ceases to be available, or if the
method of calculating treasury constant maturity yield figures set forth therein
changes so as to substantially impact the calculation of the Reinvestment Rate.

     Borrower expressly waives any right to prepay this Note except as 
provided in this Section 5.  Therefore, if the maturity of this Note is 
accelerated for any reason, including, without limitation, the occurrence of 
any event of default hereunder or under the Deed of Trust (as defined in 
Section 7), including without limitation Section 4.13 of the Deed of Trust, 
or any other document that evidences or secures the repayment of this Note, 
then any subsequent tender of payment of this Note, including any redemption 
following foreclosure of the Deed of Trust, shall constitute an evasion of 
the restrictions on prepayment set forth herein and shall be deemed a 
voluntary prepayment. Accordingly, holder may impose as a condition to 
accepting any such tender, and may bid at any sheriff's or trustee's sale 
under the Deed of Trust, and/or include in any complaint for judicial 
foreclosure or any claim in bankruptcy, as part of the indebtedness evidenced 
by this Note and secured by the Deed of Trust, the Prepayment Premium that 
would have otherwise been payable hereunder for prepayment of this Note 
occurring on the date of such acceleration. The Prepayment Premium will not 
be payable for prepayment of this Note occurring as a result of the 
application of insurance and condemnation proceeds to the reduction of the 
unpaid principal balance of this Note.

     Borrower acknowledges that: (i) it has been advised by knowledgeable 
real estate counsel, (ii) it fully understands the effect of the above 
waiver, (iii) the making of the loan evidenced by this Note at the interest 
rates set forth above is sufficient consideration for such waiver, and (iv) 
holder would not make the loan evidenced by this Note without such waiver.

     Borrower acknowledges that any statement made by holder setting forth the
amount of the Prepayment Premium shall only be binding upon holder if such
statement is made in writing and that the amount of the Prepayment Premium set
forth in such statement is subject to change and is valid only for the date of
such statement.

     Notwithstanding the foregoing, Borrower may prepay its obligation under
this Note in full or in part at any time during the sixty (60) days preceding
the Maturity Date of this Note without payment of a Prepayment Premium.

     SECTION 6. LATE CHARGE.

     If any amount payable hereunder is paid more than ten (10) days after the
due date thereof, Borrower promises to pay a late charge of five percent (5%) of
the delinquent amount as liquidated damages for the extra expense in handling
past due payments.


                                          2

<PAGE>

Arvada Note

     SECTION 7. SECURITY.

     This Note Is secured by a deed of trust, security agreement, assignment 
of leases and rents and fixture filing (the "Deed of Trust) of even date 
herewith and executed by Borrower, encumbering real property located in 
Jefferson County, Colorado. The Deed of Trust and any and all other documents 
securing this Note are collectively referred to as the "Security Documents"; 
provided, however, that "Security Documents" specifically shall not mean and 
shall not include the certificate and indemnity agreement regarding hazardous 
substances being delivered concurrently herewith to holder by Borrower (the 
"Indemnity Agreement"). The real property and the other collateral provided 
for in the Security Documents are collectively referred to as the "Property".

     SECTION 8. DEFAULT; REMEDIES.

     If default is made in the payment of any amount payable hereunder when 
due and such default shall not have been cured within three (3) days after 
receipt by Borrower of written notice from holder, or if an Event of Default 
shall have occurred under and as defined in any of the Security Documents, 
then, at the option of holder, the entire indebtedness evidenced hereby shall 
become immediately due and payable. Upon default, and without notice or 
demand, all amounts owed under this Note, including all accrued but unpaid 
interest, shall thereafter bear interest at the rate of five percent (5%) per 
annum above the Note Rate (the "Default Rate") until such default is cured. 
Failure to exercise any option granted to holder hereunder shall not waive 
the right to exercise the same in the event of any subsequent default. 
Interest at the Default Rate shall commence to accrue upon default under this 
Note, including the failure to pay this Note at maturity.

     SECTION 9. ATTORNEYS' FEES.

     In the event of any default under this Note, or in the event that any
dispute arises relating to the interpretation, enforcement or performance of
this Note, the prevailing party shall be entitled to collect from the other
party on demand all fees and expenses incurred in connection therewith,
including but not limited to fees of attorneys (and legal assistants),
accountants, appraisers, environmental inspectors, consultants, expert
witnesses, arbitrators, mediators and court reporters. Without limiting the
generality of the foregoing, the non-prevailing party shall pay all such costs
and expenses incurred in connection with: (a) arbitration or other alternative
dispute resolution proceedings, trial court actions and appeals; (b) bankruptcy
or other insolvency proceedings of Borrower, any guarantor or other party liable
for any of the obligations of this Note or any party having any interest in any
security for any of those obligations; (c) judicial or nonjudicial foreclosure
on, or appointment of a receiver for, any property securing this Note; (d)
post-judgment collection proceedings; (e) all claims, counterclaims,
cross-claims and defenses asserted in any of the foregoing whether or not they
arise out of or are related to this Note or any security for this Note; (f) all
preparation for any of the foregoing; and (g) all settlement negotiations with
respect to any of the foregoing.

     SECTION 10. MISCELLANEOUS.

     (a) Every person or entity at any time liable for the payment of the
indebtedness evidenced hereby waives presentment for payment, demand and, except
as provided herein, notice of nonpayment of this Note. Every such person or
entity further hereby consents to any extension of the time of payment hereof or
other modification of the terms of payment of this Note, the release of all or
any part of the security herefor or the release of any party liable for the
payment of the indebtedness evidenced hereby at any time and from time to time
at the request of anyone now or hereafter liable therefor. Any such extension or
release may be made without notice to any of such persons or entities and
without discharging their liability.


                                          3

<PAGE>

Arvada Note

     (b) Each person or entity who signs this Note is jointly and severally
liable for the full repayment of the entire indebtedness evidenced hereby and
the full performance of each and every obligation contained in the Security
Documents.

     (c)  The headings to the various sections have been inserted for
convenience of reference only and do not define, limit, modify, or expand the
express provisions of this Note.

     (d)  Time is of the essence under this Note and in the performance of every
term covenant and obligation contained herein.

     (e)  This Note is made with reference to and is to be construed in
accordance with the laws of the state of Colorado.

     (f)  Each married person who executes this Note as a Borrower agrees that
recourse hereunder can be had to his or her separate property as well as the
assets of his or her marital community.

     DATED as of the day and year first above written.

                         EAGLE HARDWARE & GARDEN, INC., A WASHINGTON
                         CORPORATION

                         BY   /s/ Ronald P. Maccarone
                              ------------------------------------------------
                              RONALD P. MACCARONE
                              ITS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL
                                  OFFICER


                                          4

<PAGE>

[Loan No. 04-698-610377-4]

                                   PROMISSORY NOTE

$7,582,000 (U.S.)                                           SEATTLE, WASHINGTON
                                                            MARCH 18,1998

     FOR VALUE RECEIVED, the undersigned (individually and collectively, 
"Borrower" jointly and severally, promise to pay to the order of WASHINGTON 
MUTUAL BANK, a Washington corporation, at its office at 1201 Third Avenue, 
Seattle, Washington 98101, or at such other place as the holder of this Note 
(hereinafter, "holder") may from time to time designate in writing, the sum 
of SEVEN MILLION FIVE HUNDRED EIGHTY-TWO THOUSAND DOLLARS ($7,582,000) in 
lawful money of the United States, with interest thereon from the date of 
this Note until paid at the rate set forth below, computed on monthly 
balances. Interest for each full calendar month during the term of this Note 
shall be calculated on the basis of a 360-day year and twelve 30-day months. 
Interest for any partial calendar month at the beginning or end of the term 
of this Note shall be calculated on the basis of a 365 or 366-day year and 
the actual number of days in that month.

     SECTION 1. INTEREST RATE.

     The per annum interest rate hereunder (the "Note Rate") shall be seven and
thirty-five one-hundredths percent (7.35%).

     SECTION 2. MONTHLY PAYMENTS.

     Beginning on May 1, 1998 and on the same day of each and every calendar
month thereafter throughout the term of this Note (the "Monthly Payment Dates"),
Borrower shall make monthly payments of principal and interest (the "Monthly
Payment Amounts") to holder in the amount of EIGHTY-NINE THOUSAND FOUR HUNDRED
SEVEN and 21/100 DOLLARS ($89,407.21).

     SECTION 3. MATURITY.

     Unless sooner repaid by Borrower, the entire unpaid principal balance of
this Note, plus all accrued but unpaid interest, and all other amounts owing
hereunder or under the Security Documents (as defined in Section 7) shall be due
and payable in full on April 1, 2008 (the "Maturity Date").

     SECTION 4. APPLICATION OF PAYMENTS.

     Payments shall be applied: (i) first, to the payment of accrued 
interest; (ii) second, at the option of holder, to the payment of any other 
amounts owing under this Note or secured by the Security Documents, other 
than accrued interest and principal, including, but not limited to advances 
holder may have made for taxes, assessments, insurance premiums, attorneys' 
fees or other charges on any property given as security for this Note and 
late charges due hereunder, and (iii) third, to the reduction of principal of 
this Note.

     SECTION 6. PREPAYMENT.

     Borrower may, upon thirty (30) days' prior written notice to holder, prepay
its obligation under this Note in full or in part on any Monthly Payment Date
upon payment of a premium (the "Prepayment Premium") equal to the greater of:

          (i)    The "Present Value Premium" (as hereinafter defined); and

          (ii)   Two percent (2.00%) of the amount prepaid.

<PAGE>

Layton Note

     The "Present Value Premium" shall be the present value, as of the date 
of prepayment, of a stream of monthly interest payments for the period 
remaining to the Maturity Date of this Note, computed on the basis of: (i) 
the amount prepaid; and (ii) an interest rate equal to the amount, if any, by 
which (A) the Note Rate exceeds (B) the "Reinvestment Rate" (as hereinafter 
defined). Each of such monthly interest payments shall be discounted to 
present value at the "Reinvestment Rate" from the applicable Monthly Payment 
Date to the date of prepayment.

     The "Reinvestment Rate" shall be based on the weekly average treasury 
constant maturity yields reported in Publication H.15. The figures in the 
most recent edition of Publication H.15 available as of the prepayment date 
that appear in the column for the week ending immediately preceding the date 
of such edition shall be used for purposes of the Reinvestment Rate 
calculation. The Reinvestment Rate shall be the yield adjusted to constant 
maturities stated in Publication H.15 for the United States government 
security having a maturity that most closely corresponds to the Maturity Date 
of this Note, determined by linear interpolation between the yields reported 
in Publication H.15, if necessary, plus two percent (2.00%).

     Holder may, in its reasonable discretion, select an alternative source of
the Reinvestment Rate if Publication H.15 ceases to be available, or if the
method of calculating treasury constant maturity yield figures set forth therein
changes so as to substantially impact the calculation of the Reinvestment Rate.

     Borrower expressly waives any right to prepay this Note except as 
provided in this Section 5.  Therefore, if the maturity of this Note is 
accelerated for any reason, including, without limitation, the occurrence of 
any event of default hereunder or under the Trust Deed (as defined in Section 
7), including without limitation Section 4.13 of the Trust Deed, or any other 
document that evidences or secures the repayment of this Note, then any 
subsequent tender of payment of this Note, including any redemption following 
foreclosure of the Trust Deed, shall constitute an evasion of the 
restrictions on prepayment set forth herein and shall be deemed a voluntary 
prepayment. Accordingly, holder may impose as a condition to accepting any 
such tender, and may bid at any sheriff's or trustee's sale under the Trust 
Deed, and/or include in any complaint for judicial foreclosure or any claim 
in bankruptcy, as part of the indebtedness evidenced by this Note and secured 
by the Trust Deed, the Prepayment Premium that would have otherwise been 
payable hereunder for prepayment of this Note occurring on the date of such 
acceleration. The Prepayment Premium will not be payable for prepayment of 
this Note occurring as a result of the application of insurance and 
condemnation proceeds to the reduction of the unpaid principal balance of 
this Note.

     Borrower acknowledges that: (i) it has been advised by knowledgeable real
estate counsel, (ii) it fully understands the effect of the above waiver, (iii)
the making of the loan evidenced by this Note at the interest rates set forth
above is sufficient consideration for such waiver, and (iv) holder would not
make the loan evidenced by this Note without such waiver.

     Borrower acknowledges that any statement made by holder setting forth the
amount of the Prepayment Premium shall only be binding upon holder if such
statement is made in writing and that the amount of the Prepayment Premium set
forth in such statement is subject to change and is valid only for the date of
such statement.

     Notwithstanding the foregoing, Borrower may prepay its obligation under
this Note in full or in part at any time during the sixty (60) days preceding
the Maturity Date of this Note without payment of a Prepayment Premium.

     SECTION 6. LATE CHANGE.

     If any amount payable hereunder is paid more than ten (10) days after the
due date thereof, Borrower promises to pay a late charge of five percent (5%) of
the delinquent amount as liquidated damages for the extra expense in handling
past due payments.


                                          2

<PAGE>

Layton Note

     SECTION 7. SECURITY.

     This Note is secured by a Trust Deed, security agreement, assignment of
leases and rents and fixture filing (the "Trust Deed") of even date herewith and
executed by Borrower, encumbering real property located in Davis County, Utah.
The Trust Deed and any and all other documents securing this Note are
collectively referred to as the "Security Documents"; provided, however, that
"Security Documents" specifically shall not mean and shall not include the
certificate and indemnity agreement regarding hazardous substances being
delivered concurrently herewith to holder by Borrower (the "Indemnity
Agreement"). The real property and the other collateral provided for in the
Security Documents are collectively referred to as the "Property".

     SECTION 8. DEFAULT; REMEDIES.

     If default is made in the payment of any amount payable hereunder when due
and such default shall not have been cured within three (3) days after receipt
by Borrower of written notice from holder, or if an Event of Default shall have
occurred under and as defined in any of the Security Documents, then, at the
option of holder, the entire indebtedness evidenced hereby shall become
immediately due and payable. Upon default, and without notice or demand, all
amounts owed under this Note, including all accrued but unpaid interest, shall
thereafter bear interest at the rate of five percent (5%) per annum above the
Note Rate (the "Default Rate") until such default is cured. Failure to exercise
any option granted to holder hereunder shall not waive the right to exercise the
same in the event of any subsequent default. Interest at the Default Rate shall
commence to accrue upon default under this Note, including the failure to pay
this Note at maturity.

     SECTION 9. ATTORNEYS' FEES.

     In the event of any default under this Note, or in the event that any
dispute arises relating to the interpretation, enforcement or performance of
this Note, the prevailing party shall be entitled to collect from the other
party on demand all fees and expenses incurred in connection therewith,
including but not limited to fees of attorneys (and legal assistants),
accountants, appraisers, environmental inspectors, consultants, expert
witnesses, arbitrators, mediators and court reporters. Without limiting the
generality of the foregoing, the non-prevailing party shall pay all such costs
and expenses incurred in connection with: (a) arbitration or other alternative
dispute resolution proceedings, trial court actions and appeals; (b) bankruptcy
or other insolvency proceedings of Borrower, any guarantor or other party liable
for any of the obligations of this Note or any party having any interest in any
security for any of those obligations; (c) judicial or nonjudicial foreclosure
on, or appointment of a receiver for, any property securing this Note; (d)
post-judgment collection proceedings; (e) all claims, counterclaims,
cross-claims and defenses asserted in any of the foregoing whether or not they
arise out of or are related to this Note or any security for this Note; (f) all
preparation for any of the foregoing; and (g) all settlement negotiations with
respect to any of the foregoing.

     SECTION 10. MISCELLANEOUS.

     (a)  Every person or entity at any time liable for the payment of the
indebtedness evidenced hereby waives presentment for payment, demand and,
except as provided herein, notice of nonpayment of this Note. Every such person
or entity further hereby consents to any extension of the time of payment hereof
or other modification of the terms of payment of this Note, the release of all
or any part of the security herefor or the release of any party liable for the
payment of the indebtedness evidenced hereby at any time and from time to time
at the request of anyone now or hereafter liable therefor. Any such extension or
release may be made without notice to any of such persons or entities and
without discharging their liability.

     (b)  Each person or entity who signs this Note is jointly and severally
liable for the full repayment of the entire indebtedness evidenced hereby and
the full performance of each and every obligation contained in the Security
Documents.


                                          3

<PAGE>

Layton Note

     (c)  The headings to the various sections have been inserted for
convenience of reference only and do not define, limit, modify, or expand the
express provisions of this Note.

     (d)  Time is of the essence under this Note and in the performance of every
term, covenant and obligation contained herein.

     (e)  This Note is made with reference to and is to be construed in
accordance with the laws of the state of Utah.

     (f)  Each married person who executes this Note as a Borrower agrees that
recourse hereunder can be had to his or her separate property as well as the
assets of his or her marital community.

     DATED as of the day and year first above written.

     THIS NOTE, AND ANY TRUST DEED, SECURITY AGREEMENTS, FINANCING STATEMENTS OR
     OTHER DOCUMENTS REQUIRED BY HOLDER AND SIGNED BY HOLDER OR BORROWER IN
     CONNECTION WITH THIS NOTE CONSTITUTE THE FINAL WRITTEN EXPRESSION OF THE
     AGREEMENT BETWEEN THE BORROWER AND HOLDER, WHICH AGREEMENT MAY NOT BE
     MODIFIED EXCEPT BY A WRITING SIGNED BY BOTH BORROWER AND HOLDER.

                         EAGLE HARDWARE & GARDEN, INC., A WASHINGTON
                         CORPORATION

                         BY   /s/ Ronald P. Maccarone
                              ----------------------------------
                              RONALD P. MACCARONE
                              ITS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL
                                  OFFICER


                                          4