<PAGE>
 
                                                                   EXHIBIT 10.81

[LOGO]                     SECURITY AGREEMENT


The undersigned debtor, meaning all debtors jointly and severally ("DEBTOR"), to
secure the obligations set forth herein grants to the secured party named below
(herein, with its successors and assigns, called "SECURED PARTY") under the
terms and provisions of this agreement (this "AGREEMENT") a security interest in
the following described property (herein, with all present and future
attachments, accessories, replacement parts, repairs and additions or
substitutions, referred to collectively as "EQUIPMENT"):

    ONE (1) HITACHI MODEL EX700 HYDRAULIC EXCAVATOR S/N 172-1691 EQUIPPED WITH

ONE (1) 72 INCH BUCKET S/N RH66636

ONE (1) VOLVO MODEL A25C 4X4 ARTICULATED TRUCK S/N 68139

The Equipment will be used primarily for: [X] business or commercial use other
than farming operations; [_] farming operations. When not in use, the Equipment
will be kept at: 1501 HIGHWAY 168, MOAPA and, when in use, will be used only in
the following State(s): NV

<TABLE>
<CAPTION>
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                    PAYMENT SCHEDULE                                                    USE OF PROCEEDS
<S>                                                         <C>
Debtor promises to pay Secured Party the Total Amount of    Secured Party is hereby irrevocably authorized and directed to disburse
$ 317,176.80 (the "Total Amount") in 24 installments as     the proceeds of this Agreement as follows:
follows:

(a) $ 13,215.70 on 12/20/98, and a like sum on the               Amount         Payee (Name and Address)
like date of each month thereafter until fully paid.         $ 296,181.35     DeNardi Equipment Company, Inc.        
                        or                                   ------------     ------------------------------------------------------
                                                                              ______________________________________________________
(b)                                                                           ______________________________________________________
                                                             $     595.00     Associates Commercial Corporation
                                                             ------------     ------------------------------------------------------
                                                                              Administrative Fees  
                                                                              ------------------------------------------------------
                                                                              ______________________________________________________
                                                             $ 296,776.35     TOTAL  
                                                             ------------     ------------------------------------------------------
                                                                              ------------------------------------------------------
                                                                              ------------------------------------------------------
                                                             Debtor hereby acknowledges and agrees that the proceeds of this 
                                                             Agreement will be used for commercial, business or agricultural 
provided, however, that the final installment will be in     purposes and will not be used for personal, family or household 
the amount of the then remaining unpaid balance. All         purposes. Secured Party may disburse the proceeds using checks, drafts,
amounts payable under this Agreement are payable at          orders, transfer funds, or any other method or media Secured Party 
Secured Party's address shown below or at such other         deems desirable. Disbursement may be made in Secured Party's name on
address as Secured Party may specify from time to time in    Debtor's behalf or in Debtor's name. Disbursement in accordance with
writing. Any note taken in conjunction with this Agreement   the above instructions or any written supplement to these instructions
evidences indebtedness and not payment.                      will constitute payment and delivery to and receipt by Debtor of all
                                                             such proceeds.
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</TABLE> 

INSURANCE: Physical damage insurance covering the equipment is required. Debtor
can furnish this insurance through an agent or broker of Debtor's choice. Debtor
hereby authorizes Secured Party and any assignee to release to any insurance
company affiliated with Secured Party or any assignee any information relating
to a contract or policy of insurance which is providing or may provide insurance
coverage against physical damage to the Equipment.
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TOTAL AMOUNT: The Total Amount consists of $ 296,776.35 of principal and
precomputed interest in the amount of $ 20,400.45 computed on the basis of 6.47%
per annum on the assumption that all payments will be made on their respective
due dates.

DELINQUENCY, RETURNED CHECKS AND ACCELERATION INTEREST: For each installment not
paid when due, Debtor agrees to pay to Secured Party a delinquency charge
calculated thereon at the rate of 1 1/2% per month for the period of delinquency
or, at Secured Party's option, 5% of such installment, provided that such a
delinquency charge is not prohibited by law, otherwise at the highest rate
Debtor can legally obligate itself to pay and/or Secured Party can legally
collect. Debtor agrees to reimburse Secured Party immediately upon demand for
any amount charged to Secured Party by any depositary institution because a
check, draft or other order made or drawn by or for the benefit of Debtor is
returned unpaid for any reason and, if allowed by law, to pay Secured Party an
additional handling charge in the amount of $25.00 or in the event applicable
law limits or restricts the amount of such reimbursement and/or handling charge,
the amounts chargeable under this provision will be limited and/or restricted in
accordance with applicable law. Debtor agrees to pay Secured Party, upon
acceleration of Debtor's indebtedness, interest on all sums then owing hereunder
at the rate of 1 1/2% per month if not prohibited by law, otherwise at the
highest rate. Debtor can legally obligate itself to pay and/or Secured Party can
legally collect. Any note take herewith evidences indebtedness and not payment.
All amounts payable hereunder are payable at Secured Party's address shown below
or at such other address as Secured Party may specify from time to time in
writing.

SECURITY INTEREST: To secure payment of the Total Amount and all of Secured
Party's obligations under this Agreement or with respect to the Equipment,
Debtor hereby grants to Secured Party a first priority security interest in the
Equipment and in all cash and non-cash proceeds thereof (the Equipment and all
such proceeds are herein called the "COLLATERAL") regardless of any retaking
and/or redelivery of the Collateral to Debtor.

CROSS SECURITY: Debtor grants to Secured Party a security interest in the
Collateral (separate and distinct from and subordinate to that security interest
granted pursuant to Secured Party pursuant to Section 2 above) to secure the
payment of all absolute and all contingent obligations and liabilities of Debtor
to Secured Party, or to any assignee of Secured Party, now existing of hereafter
arising, whether under this agreement or any other agreement and whether due
directly or by assignment; provided, however, upon any assignment of this
Agreement by Secured Party, the assignee shall be deemed for the purpose of this
paragraph as the only party with a security interest in the Collateral.

PREPAYMENT: Debtor may prepay Debtor's obligations under this Agreement in full
at any time. Upon prepayment Debtor will receive a rebate of the unearned
portion of the finance charge calculated using an actuarial method or such other
method as is required by any applicable law minus, if the prepayment is made
prior to the last twelve months of the contract, a prepayment processing fee
equal to the lesser of (a) one percent (1%) of the amount prepaid for each full
twelve month period remaining under the term of this Agreement as of prepayment
and (b) the maximum prepayment and/or acquisition charge allowed by applicable
law. All accrued and unpaid late charges and other amounts chargeable to Debtor
under this Agreement will be payable immediately upon such prepayment.

Page 1 of 3 of Security Agreement dated 11/19/98 between Meadow Valley
Contractors, Inc. (Debtor) and Associates Commercial Corporation (Secured Party)
which includes, without limitation, an item of Collateral with the following
serial number: 172-1691.


                                                           Debtor's Initials GB
                                                       -------------------------
                                                       /s/ SIGNATURE ILLEGIBLE
                                                       -------------------------

<PAGE>
 
1.   ADDITIONAL WARRANTIES AND AGREEMENTS. Debtor warrants and agrees that: the
execution of and performance by Debtor under the terms of this Agreement has 
been approved for Debtor by all necessary action and by Debtor's partners or 
board of directors, as applicable; the Equipment is currently and will continue 
be maintained in good operating condition, repair and appearance and is 
currently and will continue be used and operated with care only by qualified 
personnel in the regular course of Debtor's business and in conformity with all 
applicable governmental laws and regulations, manufacturer's specifications and 
the restrictions contained in any insurance policy insuring the Equipment; the 
Equipment is not currently and will not be used in conjunction with the storage,
transportation or disposal of substances considered to be toxic and/or hazardous
or in conjunction with any activity or for any use that would subject the
Equipment to seizure or confiscation by any governmental body; and the Equipment
is currently located at and will be kept by Debtor at the location set forth for
it on the reverse side of this Agreement and will not be removed from said
location without the prior written consent of Secured Party, except that if the
Equipment is of a type which is mobile and normally used by Debtor at more than
one location, Debtor may use the Equipment away from said location in the
regular course of Debtor's business provided that (a) if the Equipment is not
returned to said location within 30 days, Debtor will immediately thereafter,
and each 30 days thereafter until the Equipment is returned, report the then
current location of the Equipment to Secured Party in writing and (b) the
Equipment shall not be removed from the State(s) of use indicated on the reverse
side of this Agreement. Secured Party shall have the right to inspect the
Equipment at all reasonable times and from time to time.

     Debtor further warrants and agrees that: the security interest in the 
Collateral granted to and/or retained by Secured Party is and will continue to 
be superior to any title to or interest in the Equipment now or hereafter held 
or claimed by any other party; the Collateral is free from and will be kept free
from all liens, claims, security interests and encumbrances (whether superior or
inferior to the interests of Secured Party) other than that created by this
Agreement; notwithstanding Secured Party's interest in proceeds, Debtor will not
and will not allow any other party to consign, sell, rent, lend, encumber,
pledge, transfer, secrete or otherwise dispose of any of the Collateral without
Secured Party's prior written consent; Debtor will do everything Secured Party
deems necessary or expedient to perfect or preserve the interests granted to
Secured Party under this Agreement and the first priority of such interests; any
Manufacturer's Statement or Certificate of Origin or Certificate of Title
relating to the Equipment shall be immediately delivered to Secured Party and,
if a Certificate of Title or registration is required for any item of Equipment,
Debtor will cooperate with Secured Party in obtaining the Certificate of Title
or registration disclosing the interests of Debtor and Secured Party in the
Equipment; Debtor will defend any action, proceeding or claim affecting the
Collateral or the interests of Secured Party in the Collateral; Debtor shall
promptly pay all amounts payable in conjunction with the storage, maintenance or
repair of the Equipment and all taxes, assessments, license fees and other
public or private charges levied or assessed in conjunction with the operation
or use of the Equipment or levied or assessed against the Collateral, this
Agreement or any accompanying note except for those which are being contested by
Debtor in good faith by appropriate proceedings and which do not constitute a
lien or encumbrance upon the Collateral; and Debtor will from time to time
furnish Secured Party with such financial statements and other information as
Secured Party may reasonably request.

2.   INSURANCE AND RISK OF LOSS. Debtor shall at all times bear all risk of 
loss of, damage to or destruction of the Equipment. Debtor agrees to immediately
procure and maintain insurance on the Equipment, for the full insurable 
value thereof and for the life of this Agreement, in the form of "All Risk" or 
similar insurance (insuring the Equipment for fire, extended coverage, 
vandalism, theft and collision and containing only those exclusions from 
coverage which are acceptable to Secured Party) plus such other insurance as 
Secured Party may specify from time to time, all in form and amount and with 
insurers satisfactory to Secured Party. Debtor agrees to deliver promptly to 
Secured Party certificates or, if requested, policies of insurance satisfactory 
to Secured Party, each with a standard long-form loss-payable endorsement naming
Secured Party or assigns as loss-payee and providing that Secured Party's rights
under such policy will not be invalidated by any act, omission or neglect of 
anyone other than Secured Party, and containing the insurer's agreement to give 
30 days prior written notice to Secured Party before any cancellation of or
material change in the policy(s) will be effective as to Secured Party, whether 
such cancellation or change is at the direction of Debtor or insurer. Secured 
Party's acceptance of policies in lesser amounts or risks will not be a waiver 
of Debtor's obligation to procure insurance complying with the provisions hereof
promptly after notice from Secured Party. Debtor assigns to Secured Party all 
proceeds of any physical damage or credit insurance for which a charge is 
stated in this Agreement or which is maintained by Debtor in accordance 
herewith, including returned and unearned premiums, up to the amount owing 
hereunder by Debtor. Secured Party will not have the right to cancel any such 
insurance without Debtor's consent prior to the occurrence of an event of
default and the repossession, loss or destruction of the Equipment. Debtor
directs all insurers to pay such proceeds solely to the order of Secured Party
for application to Debtor's indebtedness to Secured Party. Secured Party may, at
its option, apply any such proceeds received by Secured Party to the final
maturing installments due hereunder in the inverse order of their maturity.

3.   PERFORMANCE BY SECURED PARTY. If Debtor fails to perform any of Debtor's 
obligations pursuant to Paragraphs 1 or 2 above, Secured Party may perform the 
same for the account of Debtor. Any such action by Secured Party will be in 
Secured Party's sole discretion and Secured Party will not be obligated in any 
way to do so. Secured Party's performance on behalf of Debtor will not obligate 
Secured Party to perform the same or any similar act in the future and will not 
cure or waive Debtor's failure of performance as an event of default hereunder. 
All sums advanced or costs and expenses incurred by Secured Party pursuant to 
this Paragraph, including the reasonable fees of any attorney retained by 
Secured Party, will be for the account of Debtor, will constitute indebtedness 
secured by Secured Party's security interest in the Collateral, will bear 
interest at the rate as specified on the reverse side of this Agreement in the 
event of acceleration and, unless Secured Party, in Secured Party's sole 
discretion agrees otherwise in writing, shall be immediately due and payable.

4.   EVENTS OF DEFAULT. Time is of the essence. An event of default will occur 
if: (a) Debtor fails to pay when due any amount owed by it to Secured Party 
under this Agreement or under the terms of any promissory note delivered in 
conjunction with this Agreement or if Debtor fails to pay when due any amount 
owed by it to Secured Party or to any affiliate of Secured Party under any other
document, agreement or instrument; (b) Debtor fails to perform in compliance
with any of its agreements hereunder or any warranty made by Debtor in this
Agreement is or becomes incorrect or if Debtor fails to perform or observe any
term or provision to be performed or observed by it under any other document,
instrument or agreement furnished by Debtor to Secured Party or any affiliate of
Secured Party or otherwise acquired by Secured Party or any affiliate of Secured
Party; (c) any information, representation, or warranty furnished by Debtor to
Secured Party or to any affiliate of Secured Party is inaccurate or incorrect in
any material respect when furnished; (d) Debtor becomes insolvent or ceases to
do or is prohibited by any court order or governmental action from conducting
the business in which Debtor is principally engaged on the date of this
Agreement as a going concern; (e) any surety or bonding company assumes any of
Debtor's responsibilities under any contract or job; (f) if any of the Equipment
is lost, stolen, destroyed, confiscated by any governmental agency, abandoned,
or relocated, used or maintained in violation of the terms hereof or if Debtor
attempts to consign, sell, rent, lend or encumber any of the Equipment or allows
another to do so; (g) Debtor files a petition in bankruptcy, or for an
arrangement, reorganization, or similar relief, or makes an assignment for the
benefit of creditors, or applies for the appointment of a receiver or trustee
for a substantial part of its assets or for any of the Equipment, or attempts to
take advantage of any process or proceeding for the relief of debtors, or if any
such action is taken against Debtor; (h) any other party attempts to attach,
repossess or execute upon any of the Collateral; (i) Debtor ceases to exist as a
legal entity or Debtor or any party in control of Debtor takes any action
looking to Debtor's dissolution as a legal entity; (j) there shall be a material
change in the management, ownership or control of Debtor; or (k) Secured Party
in good faith believes that the prospect of payment or performance hereunder is
impaired. Secured Party's inaction with respect to an event of default shall not
be a waiver of such default and Secured Party's waiver of any default shall not
be a wiver of any other default.

5.   REMEDIES UPON DEFAULT. Upon the occurrence of an event of default, and at 
any time thereafter as long as the default continues, Secured Party may, at its 
option, with or without notice to Debtor (i) declare this Agreement to be in 
default, (ii) declare the Indebtedness hereunder to be immediately due and 
payable, (iii) declare all other debts then owing by Debtor to Secured Party to 
be immediately due and payable, (iv) cancel any insurance and credit any refund 
to the Indebtedness, and (v) exercise all of the rights and remedies of a 
Secured Party under the Uniform Commercial Code and any other applicable laws, 
including, without limitation, the right to require Debtor to assemble the 
Equipment and deliver it to Secured Party at a place to be designated by Secured
Party which is reasonably convenient to both parties, and to lawfully enter any 
premises where the Collateral may be without judicial process and take 
possession thereof. Acceleration of any or all indebtedness, if so elected by 
Secured Party, shall be subject to all applicable laws including those 
pertaining to refunds and rebates of unearned charges. Any property other than 
the Collateral which is in or upon the Equipment at the time of repossession may
be taken and held without liability until its return is requested by Debtor. Any
sale or other disposition of any of the Equipment may be made at public or
private sale or through public auction at the option of Secured Party. Secured
Party may buy at any sale and become the owner of the Equipment. Unless
otherwise provided by law, any requirement of reasonable notice which Secured
Party may be obligated to give regarding the sale or other disposition of
Collateral will be met if such notice is given to Debtor at least ten days
before the time of sale or other disposition. Debtor agrees that Secured Party
may bring any legal proceedings it deems necessary to enforce the payment and
performance of Debtor's obligations hereunder in any court in the State shown in
Secured Party's address set forth herein, and service of process may be made
upon Debtor by mailing a copy of the summons to Debtor. All notices to Debtor
relating to this Agreement will be considered received when delivered in person
(including by facsimile transmission) or mailed to Debtor at the address of
Debtor contained in this Agreement or at any address later designated by Debtor
to Secured Party in writing. The filing by Secured Party of any action or
proceeding with respect to the Equipment or any of Debtor's obligations
hereunder shall not constitute an election by Secured Party of Secured Party's
remedies or a waiver of Secured Party's rights to take possession of the
Equipment as provided above. Expenses of retaking, holding, preparing for sale,
selling and the like shall include (a) the reasonable fees of any attorneys
retained by Secured Party, (b) any amounts advanced or expenses incurred by
Secured Party pursuant to Paragraph 9 hereof and (c) all other legal and other
expenses incurred by Secured Party, Debtor agrees that it is liable for an will
promptly pay any deficiency resulting from any disposition of Collateral after
default and all costs and expenses, including the reasonable fees of any
attorney, incurred by Secured Party in the collection of any such deficiency.

Page 2 of 3 of Security Agreement dated 11/19/98 between Meadow Valley 
Contractors, Inc. (Debtor) and Associates Commerical Corporation (Secured Party)
which includes, without limitation, an item of Collateral with the following 
serial number: 172-1691.
<PAGE>
 
6.   POWER OF ATTORNEY. DEBTOR HEREBY APPOINTS SECURED PARTY OR ANY OFFICER, 
EMPLOYEE OR DESIGNEE OF SECURED PARTY OR ANY ASSIGNEE OF SECURED PARTY (OR ANY
DESIGNEE OF SUCH ASSIGNEE) AS DEBTOR'S ATTORNEY-IN-FACT, IN DEBTOR'S OR SECURED
PARTY'S NAME, TO: (a) PREPARE, EXECUTE AND SUBMIT ANY NOTICE OR PROOF OF LOSS IN
ORDER TO REALIZE THE BENEFITS OF ANY INSURANCE POLICY INSURING THE EQUIPMENT:
(b) PREPARE, EXECUTE AND FILE ANY INSTRUMENT WHICH, IN SECURED PARTY'S OPINION,
IS NECESSARY TO PERFECT AND/OR GIVE PUBLIC NOTICE OF THE INTERESTS OF SECURED
PARTY IN THE EQUIPMENT; AND (c) ENDORSE DEBTOR'S NAME ON ANY REMITTANCE
REPRESENTING PROCEEDS OF ANY INSURANCE RELATING TO THE EQUIPMENT (WHETHER OR NOT
THE SAME IS A DEFAULT HEREUNDER). This power is coupled with an interest and is
irrevocable so long as any indebtedness hereunder remains unpaid. Debtor agrees
to execute and deliver to Secured Party, upon Secured Party's request such
documents and assurances as Secured Party deems necessary or advisable for the
confirmation or perfection of this Security Agreement and Secured Party's rights
hereunder, including such documents as Secured Party may require for filing or
recordings.

7.   ASSIGNMENT.  Debtor shall not assign this Agreement without the prior
written consent of Secured Party. Secured Party may assign this Agreement with
or without notice to or the consent of Debtor. Upon assignment, the term
"Secured Party" shall mean and refer to any assignee who is the holder of this
Agreement. After assignment of this Agreement by Secured Party, the assignor
will not be the assignee's agent for any purpose and Debtor's obligations to the
assignee will be absolute and unconditional and, to the extent permitted by
applicable law, will not be subject to any abatement, reduction, recoupment,
defense, set-off or counterclaim available to Debtor for breach of warranty or
for any other reason whatsoever. Upon full payment of all obligations secured by
this Agreement, the assignee may deliver all original papers to the assignor for
Debtor.

8.   MISCELLANEOUS. (A) All of Secured Party's rights hereunder are cumulative 
and not alternative. (B) The inclusion of a trade name or division name in the 
identification of Debtor hereunder does not limit Secured Party's rights, after 
the occurrence of an event of default, to proceed against all of Debtor's
assets, including those held or used by Debtor individually or under another
trade or division name. (C) If permitted by law, Debtor agrees that a carbon,
photographic or other reproduction of this Agreement or of a financing statement
may be filed as a financing statement. (D) Secured Party may correct patent
errors herein and fill in blanks. (E) All of the terms and provisions hereof
will apply to and be binding upon Debtor, its heirs, personal representatives,
successors and assigns and shall inure to the benefit of Secured Party, its
successors and assigns. (F) Debtor and Secured Party hereby waive any right to
trial by jury in any action or proceeding relating to this Agreement or the
transaction contemplated hereby. (G) Debtor hereby expressly waives notice of
nonpayment, presentment, protest, dishonour, default, intent to accelerate the
maturity hereof and of acceleration of the maturity hereof. (H) If allowed by
law, "the reasonable fees of attorneys" retained by Secured Party shall include
the amount of any flat fee, retainer, contingent fee and/or the hourly charges
of any attorney retained by Secured Party in enforcing any of Secured Party's
rights hereunder in the prosecution or defense of any litigation related to this
Agreement or the transactions contemplated by this Agreement. (I) To the extent
allowed by law, Debtor hereby waives any exemptions or appraisals. (J) No waiver
or change in this Agreement or in any related note will be binding upon Secured
Party, or Secured Party's assignee, unless such waiver or change is in writing
and signed by one of its officers and any such waiver or change shall then be
effective only upon the terms and to the extent provided in such writing. (K)
The acceptance by Secured Party of any remittance from a party other than Debtor
will in no way constitute Secured Party's consent to the transfer of any of the
Collateral to such Party. (L) Any captions or headings included in this
Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning of any provision contained in this Agreement. (M) Any
provision contained herein which is contrary to, prohibited by or invalid under
applicable laws or regulations will be deemed inapplicable and omitted herefrom,
but shall not invalidate the remaining provisions hereof. (N) The only copy of
this Agreement which constitutes "chattel paper" is the original executed copy
designated as "Original For Associates".

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                     DELIVERY AND ACCEPTANCE OF EQUIPMENT
                            (Check Appropriate Box)

Debtor's obligations and liabilities to Secured Party are absolute and 
unconditional under all circumstances and regardless of any failure of operation
or Debtor's loss of possession of any item of Equipment or the cessation or
interruption of Debtor's business for any reason whatsoever.

 [_] On ____________ the Equipment being purchased with the proceeds of this 
     Agreement was delivered to Debtor with all installation and other work
     necessary for the proper use of the Equipment completed at a location
     agreed upon by Debtor; the Equipment was inspected by Debtor and found to
     be in satisfactory condition in all respects and delivery was
     unconditionally accepted by Debtor.

 [_] The Equipment being purchased with the proceeds of this Agreement has not 
     yet been delivered to or accepted by Debtor and, upon delivery, Debtor
     agrees to execute such delivery and acceptance certificate as Secured Party
     requires.

 [X] All of the Equipment was acquired by Debtor prior to the date hereof and 
     was previously delivered to and unconditionally accepted by Debtor.

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

ADDITIONAL TERMS AND ORAL AGREEMENTS: Debtor and Secured Party agree that this
is a three page agreement and each page hereof constitutes a part of this
agreement. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES, THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

Debtor's Social Security or Federal Taxpayer Identification Number is 88-0171959
and Co-Debtor's is:______________.


<TABLE> 
<S>                                                                   <C>                                         
Dated                    11/19/98                                     DEBTOR HEREBY ACKNOWLEDGES RECEIPT OF AN
                                                                      EXACT COPY OF THIS CONTRACT.
Secured Party  Associates Commercial Corporation                      Debtor(s) MEADOW VALLEY CONTRACTORS, INC.


         (Name of Individual, corporation or partnership.)                (Name of individual(s) or partnership. Give trade style,
                                                                                if any, after name.)


                                                                      
                                                                      By /s/ Gary W. Burnell          Title       VP/CFO
                                                                         ---------------------------        -----------------
                                                                          (If corporation, authorized party must sign and show 
                                                                             corporate title. If partnership, a general partner
                                                                             must sign. If owner(s) or partner, show which.)  
By  _________________________________________________________
Title _______________________________________________________
         (If corporation, authorized party must sign and show
          corporate title, if partnership, a general 
          partner must sign. If owner or partner, show which.)
                                                                      By  _______________________ Title  ______________________
                                                                          if co-buyer, co-partner or co-officer, sign here and show
                                                                                                which)
P O BOX 2340
----------------------------------------------------------------
                   (Street Address)

NEWPORT BEACH           CA  92658                                     4411 S. 40th STREET, SUITE D-11
----------------------------------------------------------------      -----------------------------------------------------------
                 (City, State and Zip Code)                                            (Street Address)

                                                                      PHOENIX        MARICOPA            AZ  85040
                                                                      -----------------------------------------------------------
                                                                                  (City, COUNTY, State, and Zip Code)
</TABLE> 

Page 3 of 3 of Security Agreement dated 11/19/98 between Meadow Valley
Contractors, Inc. (Debtor) and Associates Commercial Corporation (Secured Party)
which includes, without limitation, an item of Collateral with the following
serial number: 172-1891.

                                   ORIGINAL