<PAGE>

                      MUTUAL RELEASE & NONCOMPETITION AGREEMENT


     This Mutual Release & Noncompetition Agreement ("Agreement") is entered 
into effective the 1st day of September, 1998, by and between Larry A. 
Rasmusson ("Rasmusson") and Oxboro Medical International, Inc. ("Company").
                                          
                                      RECITALS

     A.   Rasmusson is the Chief Executive Officer and Chief Financial 
Officer of the Company and is the President, Treasurer and Secretary of 
Oxboro Outdoors, Inc. ("Outdoors"), a wholly owned subsidiary of Company.  
The Company, Outdoors and Rasmusson have entered into the following 
agreements:

          1.   An Employment Agreement between the Company and Rasmusson dated
     April 1, 1993, as amended ("Employment Agreement"); 

          2.   A Consulting Agreement between the Company and Rasmusson dated
     November 1, 1995, as amended ("Consulting Agreement");  

          3.   An Exclusive License Agreement between the Company and Rasmusson
     dated effective as of April 1, 1990, as amended ("License Agreement"); 

          4.   An Exclusive License and Royalty Agreement between Outdoors and
     Rasmusson dated effective as of April 17, 1993, as amended ("Royalty
     Agreement"); 

          5.   A Non-Qualified Stock Option from the Company to Rasmusson
     effective August 17, 1995 for 80,364 shares, of which 20,364 shares
     remained unexercised on January 14, 1998; 

          6.   A Stock Option Exercise and Loan Agreement, a Secured Promissory
     Note and Instruments Security Agreement between the Company and Rasmusson
     with respect to said 20,364 shares dated January 15, 1998;

<PAGE>

          7.   Two Non-Qualified Stock Options from the Company to Rasmusson
     dated October 1, 1997, each for 100,000 shares, which options were 
     exercised on January 15, 1998; and 

          8.   A Stock Option Exercise and Loan Agreement, Secured Promissory
     Note and Instruments Security Agreement between the Company and Rasmusson
     with respect to said 200,000 shares dated January 15, 1998.

     B.   The Employment Agreement, as amended, terminates as of October 1, 
1999.  The Company and Rasmusson desire to effect an earlier termination date 
of the Employment Agreement as provided herein.

     C.   The Consulting Agreement is to take effect on and as of the 
effective date of the termination of the Employment Agreement.  The Company 
and Rasmusson desire to effect an amendment to the Consulting Agreement as 
provided herein.

     D.   Company and Rasmusson desire the License Agreement, as previously 
amended, to continue in full force and effect and remain unchanged and 
unaffected by this Agreement.  

     E.   Outdoors and Rasmusson desire to further amend the Royalty 
Agreement as provided herein.

     F.   Company and Rasmusson desire to rescind the Stock Option Exercise 
and Loan Agreement, Secured Promissory Note and Instruments Security 
Agreement for the 20,364 shares as provided herein.

     G.   Company and Rasmusson desire to rescind the Stock Option Exercise 
and Loan Agreement, the Secured Promissory Note and the Instruments Security 
Agreement which relate to the two 100,000 share Non-Qualified Stock Option 
Agreements, and to rescind one of said 


                                       2
<PAGE>

Non-Qualified Stock Option Agreements and to revise the remaining 
Non-Qualified Stock Option Agreement, as provided herein.

     H.   In addition to the above, Rasmusson and Company wish to resolve any 
and all claims arising out of or having to do with Rasmusson's employment by 
the Company and/or Outdoors and/or serving the Company and Outdoors as an 
officer, director, consultant, agent or representative.  Both Rasmusson and 
Company hereby specifically agree and acknowledge that good and sufficient 
consideration exists for the terms and conditions of this Mutual Release & 
Noncompetition Agreement as set forth below.
                                          
                                TERMS AND CONDITIONS

     The parties hereto agree as follows:

     1.   EMPLOYMENT AGREEMENT.  Effective as of 12:01 a.m., September 1, 
1998, the Employment Agreement is and shall be terminated, including, but not 
limited to, the First, Second and Third Amendments to the Employment 
Agreements, whereupon the 360,000 shares of Common Stock of the Company 
issued to Rasmusson in Escrow pursuant to the Third Amendment shall be 
endorsed over to the Company by Rasmusson and shall be cancelled by the 
Company.  However, Section III entitled "Covenant Not to Compete" and Section 
IV entitled "Confidential Nature of the Company's Business - Non-Disclosure" 
in the Employment Agreement shall continue in full force and effect for a 
period of twenty-four (24) months from and after September 1, 1998; however, 
if Harley Haase is employed, engaged or retained, directly or indirectly, by 
the Company during said 30 month period, then the remaining term of such 
Covenant Not to Compete shall be waived. Further, Rasmusson may keep a copy 
of memos and other written correspondence written by and to him subject to 
the above-referenced confidentiality obligation.  In consideration of the 
early termination of the Employment 


                                       3
<PAGE>

Agreement, and in consideration of the non-disclosure and noncompete 
provisions, the Company shall pay to Rasmusson $150,000.00 in twenty-four 
(24) equal monthly installments of $6,250.00 beginning September, 1998.  The 
Company shall make these monthly payments to Rasmusson by placing a check in 
the United States mail on the first payroll date of every month during this 
twenty-four-month period, so long as Rasmusson is not in violation of any of 
the terms and conditions of said Sections III and/or IV of the Employment 
Agreement, as amended.  The Company's obligation to Rasmusson hereunder shall 
be secured by a second mortgage on the Company's land and building located at 
13828 Lincoln Street N.E., Ham Lake, Minnesota.  Until the payment 
obligations set forth in Paragraphs 1 and 2 hereof have been fulfilled, the 
combined total of the unpaid balances secured by the first mortgage and the 
second mortgage cannot exceed an amount equal to 80% of the fair market value 
of land and building described in said mortgages.  The fair market value 
shall be determined by an appraiser appointed or selected by the first 
mortgagee; however, if Rasmusson disagrees with such appraised value, then he 
shall appoint or select a second appraiser in a timely manner, and the fair 
market value shall be the average of the two appraisals.  After January 1, 
2000, if the Company desires to refinance the subject property while there 
are unpaid installments, the Company may, subject to Rasmusson's prior 
written consent, prepay the unpaid installments or provide substitute 
collateral reasonably satisfactory to Rasmusson].  Until September 1, 1998, 
Rasmusson shall continue to be paid his full salary and normal benefits under 
the terms of the Employment Agreement.

     2.   CONSULTING AGREEMENT.  The Consulting Agreement shall be amended 
effective as of the date of this Mutual Release & Noncompetition Agreement to 
reduce the term of the Consulting Agreement to twenty-four (24) months, which 
twenty-four (24) month period shall commence on the effective date of this 
Mutual Release & Noncompetition Agreement.  In 


                                       4
<PAGE>

consideration of Rasmusson agreeing to reduce the term of the Consulting 
Agreement and the performance of his obligations thereunder, the Company 
hereby agrees to pay Rasmusson consulting fees in a total amount of 
$485,000.00, which shall be paid in twenty-four (24) equal monthly 
installments of $20,208.33.  The payment of such installments shall commence 
September 1998, and shall be paid on the first date of each of said 
twenty-four (24) months.  After January 1, 2000, if the Company desires to 
refinance the subject property while there are unpaid installments, the 
Company may, subject to Rasmusson's prior written consent, prepay the unpaid 
installments or provide substitute collateral reasonably satisfactory to 
Rasmusson.  Rasmusson shall not be required to devote more than five (5) days 
per month of consulting services to the Company.  The Consulting Agreement 
shall be amended pursuant to the terms of Exhibit A attached hereto and made 
a part hereof consistent with the terms set forth above.  The Company's 
obligation to Rasmusson hereunder shall also be secured by a second mortgage 
on the Company's land and building located at 13828 Lincoln Street N.E., Ham 
Lake, Minnesota.  

     3.   LICENSE AGREEMENT.  The License Agreement shall be amended 
effective as of the date of this Mutual Release & Noncompetition Agreement to 
provide that the Company has forty-five (45) days to accept or reject 
products submitted by Rasmusson to the Company as more particularly set forth 
in the Second Amendment to the License Agreement attached hereto as Exhibit B.

     4.   ROYALTY AGREEMENT.  The Royalty Agreement shall be amended 
effective as of the date of this Mutual Release & Noncompetition Agreement 
(i) to rescind the Third Amendment to the Royalty Agreement dated February 
25, 1998, (ii) to return the 150,000 shares of Common Stock of the Company 
issued to Rasmusson in escrow pursuant to said Third Amendment, which shares 
shall thereupon be cancelled by the Company, (iii) to provide for a 


                                       5
<PAGE>

termination date of the Royalty Agreement at 11:59 p.m. on August 31, 2001, 
and (iv) to revise the Royalty schedule, all as more particularly set forth 
in the Fourth Amendment to the Royalty Agreement attached hereto as Exhibit C.

     5.   STOCK OPTION EXERCISE AND LOAN AGREEMENTS.  The Stock Option 
Exercise and Loan Agreements, one for 20,364 shares of Common Stock of the 
Company and the other for 200,000 shares of Common Stock of the Company, both 
dated January 15, 1998, are hereby rescinded.  The Secured Promissory Notes 
("Notes"), one in the amount of $30,546 and the other in the amount of 
$200,000, and the accompanying Instruments Security Agreements for each of 
the respective Notes, all dated January 15, 1998 are hereby rescinded, 
including accrual of interest. Rasmusson shall have no obligations under said 
documents other than to execute Assignments Separate from Certificate with 
respect to said shares of Common Stock in the form attached hereto as Exhibit 
D, whereupon said certificates shall be returned to and cancelled by the 
Company.

     6.   DEFERRED NON-QUALIFIED STOCK OPTION.  The Deferred Non-Qualified 
Stock Option granted by the Company to Rasmusson on October 1, 1997 for 
100,000 shares of Common Stock of the Company is hereby terminated.

     7.   REMAINING NON-QUALIFIED STOCK OPTIONS.  The Non-Qualified Stock 
Option granted by the Company to Rasmusson on August 17, 1995 for 80,364 
shares of Common Stock of the Company shall be amended as of the date of the 
Mutual Release & Noncompetition Agreement with respect to the remaining 
option for 20,364 shares of Common Stock to provide that the option must be 
exercised on or before March 31, 1999 by payment in cash or by execution of 
an interest-free promissory note in the amount of the price secured by the 
payments


                                       6
<PAGE>


due to Rasmusson from the Company, all as more particularly set 
forth in the First Amendment to the Non-Qualified Stock Option Agreement 
attached hereto as Exhibit E.

     The Current Non-Qualified Stock Option granted by the Company to 
Rasmusson on October 1, 1997 for 100,000 shares of Common Stock of the 
Company shall be amended as of the date of this Mutual Release & 
Noncompetition Agreement to provide that the option must be exercised on or 
before March 31, 1999 by payment in cash or by execution of an interest-free 
promissory note in the amount of the option price secured by the payments due 
to Rasmusson from the Company, all as more particularly set forth in the 
First Amendment to the Current Non-Qualified Stock Option Agreement attached 
hereto as Exhibit F.

     8.   TRANSITION PERIOD.  During the period not to exceed three months 
beginning on the date of the termination of Rasmusson's employment with the 
Company on September 1, 1998 and ending on November 30, 1998 (the 
"Termination Period"), Rasmusson shall be available to the Company on an as 
reasonably-requested basis to assist the Company with its management 
transition and such requested services shall be consistent in scope and 
concept with Rasmusson's duties and responsibilities while he was employed by 
the Company; however, such services shall not be deemed to be consulting 
services as described in Section 2 hereof, and such transition services shall 
be billed separately.  Rasmusson shall be paid a daily fee of $1,079 for an 
8-hour day in which he performs such transition services for the Company, at 
Company's request.  It is anticipated that Rasmusson will be requested to 
work 4 to 5 days a week for the first few weeks, 3 to 4 days a week for the 
next few weeks and 1 to 2 days a week thereafter.  Rasmusson shall submit a 
statement to the Company for the number of whole days worked no less often 
than once a month and no more often than once every two weeks.  Rasmusson 
shall be paid within five business days after the Company's receipt of such 
statement.  If Rasmusson 


                                       7
<PAGE>

moves out of his residence in Andover prior to the expiration of the 
Transition Period, then the Company shall reimburse Rasmusson for room and 
board in an amount not to exceed $150.00 per day.  Rasmusson shall report to 
and take direction from the CEO in performing such services.

     9.   PAYMENT FOR UNUSED VACATION.  Company agrees to pay Rasmusson for 
his unused and accrued vacation existing as of and paid on September 1, 1998. 
 The amount paid to Rasmusson for his unused and accrued vacation shall be 
determined by multiplying the number of such unused and accrued vacation days 
by $1,079.00.

     10.  MEDICAL AND DENTAL INSURANCE COVERAGE.  Company agrees to pay for 
and maintain medical and dental coverage provided under Company's group 
medical and dental plan whether as continuation coverage or conversion to 
individual coverage, as provided under the terms of the plans as amended from 
time to time, at the same percentage of the total cost for such benefits and 
on the same terms that the Company provided to Rasmusson and his eligible 
dependents immediately prior to his termination, until Rasmusson reaches the 
age of 65, on April 3, 2008, so long as he is retired and not eligible for 
medical coverage from another employer or, if married, through his spouse's 
employer.  Currently, the Company pays its portion of approximately $105.40 a 
month for Rasmusson as a single person, and Rasmusson shall continue to pay 
his portion of approximately $28.00 per month.  If during the term of 
coverage as set forth herein Rasmusson is or becomes married, then the 
Company's portion shall be the percentage of the premium the Company would 
pay for a married employee at such time, and Rasmusson's portion shall be the 
remainder.

     11.  SPLIT-DOLLAR LIFE INSURANCE.  The Company shall terminate the one 
million dollar split-dollar life insurance policy contracted for on 
Rasmusson's life through New England Financial, Policy No. YO 23910 and 
Rasmusson shall not be required to pay any premium with 


                                       8
<PAGE>

respect to said policy in calendar year 1998 or thereafter.  Any cash value 
on such policy shall accrue to the Company.  With respect to the two $500,000 
split-dollar life insurance policies on Rasmusson's life contracted for 
through New England Financial, Policy Nos. 8681808 and 8731790, those two 
policies shall be maintained by the Company for so long as Rasmusson pays and 
maintains his portion of the monthly premiums on said policies in a timely 
manner, currently in the approximate annual amount of $1,800.  If the Company 
fails to maintain payments and/or terminates either or both of said policies 
or if the policies cancel or terminate for any reason other than Rasmusson's 
death, Rasmusson shall receive all of the cash value and/or termination 
value, including Rasmusson's and the Company's shares, respectively, with 
respect to said policies pursuant to the records of New England Financial.  
Upon Rasmusson's death, the benefits under said maintained policies shall be 
paid out according to the terms of said policies. 

     12.  ESOP SHARES.  Rasmusson shall, pursuant to the ESOP Plan, as 
amended, maintain the ESOP shares attributable to him prior to the current 
plan year as part of the Company's Employee Stock Ownership Plan, which 
currently amount to approximately 10,869 shares.  In consideration of the 
transfer of the 18 1/2 foot Alumacraft boat, 175 horse and 9.9 horse Mercury 
motors, electronics and accessories, and Spartan Trailer to Rasmusson by or 
through the Company, Rasmusson hereby releases and waives any right, title 
and/or interest in and to the ESOP shares attributable or that would have 
been attributable to Rasmusson in the current plan year.

     13.  RASMUSSON'S RELEASE OF COMPANY.  For good and valuable 
consideration, but not limited to, the mutual agreements set forth in this 
Agreement, the receipt and sufficiency of which consideration Rasmusson 
expressly acknowledges, Rasmusson, for himself and for each of his heirs, 
executors, administrators, insurers, employers, attorneys, agents, 
successors, and 


                                       9
<PAGE>

assigns, hereby releases and forever discharges Company, and each of its 
parent and subsidiary corporations, affiliates, predecessors, successors, 
assigns, insurers, indemnitors, directors, officers, attorneys, employees, 
agents and representatives, of and from any and all past and present claims, 
demands, liabilities, judgments, and causes of action, at law or in equity, 
known or unknown, asserted or unasserted, liquidated or unliquidated, 
absolute or contingent, accrued or not accrued, which Rasmusson ever had, 
presently has, claims to have, or claims to have had against Company and its 
directors as of the effective date of this Agreement, including, without 
limitation, any claims for payment of wages and commissions; claims for 
discrimination under the Age Discrimination in Employment Act (the "ADEA"), 
Title VII of the Civil Rights Act of 1964, as amended, the Americans with 
Disabilities Act, the Employee Retirement Income Security Act of 1974, as 
amended ("ERISA"), the Minnesota Human Rights Act or other federal, state or 
local civil rights laws based on age or any other protected status; claims 
for breach of contract; breach of fiduciary duty; fraud or misrepresentation; 
unpaid wages and benefits; unpaid sick or vacation pay; defamation; 
intentional or negligent infliction of emotional distress; breach of a 
covenant of good faith and fair dealing; promissory estoppel; negligence; 
hostile work environment; wrongful termination of employment; any other 
claims for unlawful employment practices; or under any other theory, whether 
legal or equitable, that arose prior to the effective date of this Agreement. 
Notwithstanding the foregoing, this release specifically excludes any claims 
Rasmusson may have against the Company for violations of federal and state 
securities laws as determined by a court of competent jurisdiction and 
excludes any and all claims or demands Rasmusson may have against the Company 
or Outdoors for the indemnification of any claims made under Minn. Stat. 
Section  302A.521 or Minn. Stat. Section  181.970.  This exception to 
Rasmusson's release is intended to fully and completely preserve and protect 
Rasmusson's rights 


                                      10
<PAGE>

to indemnification to the extent provided to him under Minnesota or Federal 
law, whether such claims are raised by shareholders, employees, governmental 
agencies, or any other person or entity.

     14.  COMPANY'S RELEASE OF RASMUSSON.  For good and valuable 
consideration, including, but not limited to, the mutual agreements set forth 
in this Agreement, the receipt and sufficiency of which consideration the 
Company and Outdoors expressly acknowledge, the Company and Outdoors, for 
themselves and for each of their respective subsidiaries, parents, 
affiliates, predecessors, successors, assigns, insurers, indemnitors, 
directors, attorneys, officers, agents and representatives, hereby release 
and forever discharge Rasmusson his heirs, executors, administrators, 
insurers, employers, attorneys, agents, successors, and assigns of and from 
any and all past and present claims, demands, liabilities, judgments, and 
causes of action, at law or in equity, known or unknown, asserted or 
unasserted, liquidated or unliquidated, absolute or contingent, accrued or 
not accrued, direct, indirect, or derivative, which the Company and/or 
Outdoors ever had, presently have, claim to have, or claim to have had 
against Rasmusson as of the date this Agreement is executed, but excluding 
any claims the Company may have against Rasmusson for violations of federal 
and state securities laws as determined by a court of competent jurisdiction 
and excluding eligibility issues under Minn. Stat. Section  302A.251, subd. 4; 
however, until such time that a court of competent jurisdiction has 
determined that Rasmusson has violated federal and/or state securities laws, 
the Company shall hold Rasmusson harmless and indemnify and defend Rasmusson, 
subject to the Company's claim for reimbursement for any and all costs, fees 
and expenses attributable to Rasmusson in the event of a determination of 
violations by a court of competent jurisdiction.  The Company hereby 
indemnifies and holds Rasmusson harmless from and against any and all claims 
by employees of the Company and 


                                      11
<PAGE>

Outdoors arising prior to the effective date of this Agreement; however, such 
indemnification and hold harmless obligation shall not apply to claims 
against Rasmusson for acts or failure to act which are outside the scope of 
Rasmusson's authority as an officer and/or director of the Company and/or 
Outdoors.

     15.  NON-DISPARAGEMENT AGREEMENT.  Both Rasmusson and the Company agree 
that they shall make no defamatory (untrue) statements concerning each other 
to any person, firm, entity, or governmental entity.  Any statement made, 
given or communicated to any governmental or regulatory entity must 
immediately be communicated to the other party thereto.  Any truthful 
statement made, given or communicated to any governmental entity shall not be 
deemed to be disparaging.  

     16.  CONFIDENTIALITY.  Rasmusson and the Company agree not to disclose 
the terms of this Agreement to any person who is not a director, officer, or 
attorney of the parties; provided, however, that the terms of this Agreement 
may be disclosed as necessary to satisfy any ordinary tax and accounting 
reporting requirements or any regulatory requirement, including, but not 
limited to, the requirements of the SEC, NASD or IRS, or if under oath or 
subpoena; however, Rasmusson may disclose the general terms and conditions of 
this Agreement to a prospective employer or consulting client with prior 
written notice if possible, if not then within twenty-four (24) hours after 
such disclosure, to the Company and after obtaining an agreement of 
confidentiality with respect to such information from the prospective 
employer or client, substantially in the form attached as Exhibit G.

     17.  MAINTENANCE OF OTHER AGREEMENTS.  The Company and Rasmusson agree 
that the Royalty Sharing Agreement dated November 21, 1995 ("Royalty Sharing 
Agreement") between and among the Company, Rasmusson, Outdoors and Haase, and 
the Consulting and 


                                      12
<PAGE>

Royalty Sharing Agreement effective October 9, 1996 between and among 
Outdoors, Rasmusson and Ralph Jon Fritz, as amended, shall remain in full 
force and effect according to their terms, and that no party hereto is 
waiving or releasing any claims under either of these agreements.  The breach 
by Rasmusson of any of the maintained agreements shall not be deemed to be a 
breach of this Agreement, and such breach shall be governed by the terms and 
conditions of the agreement under which the breach arises.

     18.  RASMUSSON NONRELIANCE.  Rasmusson warrants and represents that he 
has consulted with his attorneys regarding the effect of this Agreement, and 
that he has executed this Agreement fully aware of its content, purpose and 
effect, based upon his sole judgment, belief and knowledge, and upon advice 
of his own attorneys, and that he is not relying on representations or 
statements made by the Company or by anyone representing the Company, other 
than those specifically set forth in this Agreement.

     19.  COMPANY NONRELIANCE.  The Company warrants and represents that it 
has consulted with its attorneys regarding the effect of this Agreement, and 
that it has executed this Agreement fully aware of its content, purpose and 
effect, based upon its sole judgment, belief and knowledge, and upon advice 
of its own attorneys, and that it is not relying on representations or 
statements made by Rasmusson or by anyone representing Rasmusson, other than 
those specifically set forth in this Agreement.

     20.  NO ADMISSION OF LIABILITY.  Each of the parties to this Agreement 
agree that neither its content nor its or his entry into this Agreement is to 
be construed as an admission of liability by it or him, and that each of them 
expressly denies any such liability.

     21.  GOVERNING LAW.  The parties of this Agreement agree that the 
interpretation and effect of this Agreement shall be governed by the laws of 
the State of Minnesota.  


                                      13
<PAGE>

     22.  JURISDICTION.  The parties to this Agreement hereby consent to the 
jurisdiction of the District Court, Fourth Judicial District, County of 
Anoka, State of Minnesota, for the enforcement of any and all provisions of 
this Agreement, both now or in the future.

     23.  INTERPRETATION.  Should any of the provisions of this Agreement 
require judicial interpretation, it is agreed that the court interpreting or 
construing the same shall not apply a presumption that the terms of this 
Agreement shall be more strictly construed against one or more parties hereto 
by reason of the rule of construction that a document is to be construed more 
strictly against the party who prepared the document, it being acknowledged 
and agreed that all of the parties and their attorneys have participated in 
the preparation and review of this Agreement.

     24.  COMPLETE AGREEMENT.  The parties to this Agreement each agree that 
this Agreement, including the exhibits hereto, contains the entire agreement 
between them, and supersedes all prior or contemporaneous agreements and 
understandings, oral or written, between the parties hereto as of the date 
hereof regarding the matters described herein.

     25.  MODIFICATIONS AND WAIVERS.  No term or provision of this Agreement 
may be varied, changed, modified, waived or terminated orally, but only by an 
instrument in writing signed by the party against whom the enforcement of the 
variation, change, modification, waiver or termination is sought.  The waiver 
by any party hereto of any breach of any provision of this Agreement shall 
not constitute or operate as a waiver of any other breach of such provisions 
or of any other provision hereof, nor shall any failure to enforce any 
provision hereof operate as a waiver at such time or at any future time of 
such provision or of any other provision hereof.


                                      14
<PAGE>

     26.  NOTICE.  Any notice required or permitted hereunder shall be in 
writing and shall be deemed to have been given, if mailed, registered or 
certified, postage prepaid, on the date posted, or if personally delivered, 
when addressed and delivered to the address indicated below:

     TO RASMUSSON:
     
     Mr. Larry A. Rasmusson
     1485 - 139th Lane N.W.
     Andover, MN  55304
     
               WITH COPY TO:
               
               (ATTORNEY FOR LARRY A. RASMUSSON)
               
     TO OXBORO:
     
     Chairman of the Board of Directors
     Oxboro Medical International, Inc.
     13828 Lincoln Street N.E.
     Ham Lake, MN  55304
     
               WITH COPY TO:
               
               Thomas Judd
               Moss & Barnett, P.A.
               4800 Norwest Center
               Minneapolis, MN  55402
               
     27.  COMPANY AUTHORITY.  The Company represents and warrants that the 
undersigned representative is duly authorized to execute this Agreement on 
its behalf and to bind it to the terms of this Agreement.

     28.  EXECUTION IN COUNTERPARTS.  This Agreement may be signed in any 
number of counterparts, with the same effect as if the signature thereto were 
upon the same instrument.  Complete sets of counterparts shall be lodged with 
and delivered to each party to this Agreement.

     29.  RASMUSSON RESCISSION RIGHTS. Mr. Rasmusson understands that he has 
been given a period of 21 days to review and consider this Agreement before 
signing it.  Mr. 


                                      15
<PAGE>

Rasmusson further understands that he may use as much or as little of this 
21-day periods Mr. Rasmusson wishes prior to signing it. Rasmusson may 
rescind this Agreement within fifteen (15) calendar days after his execution 
of this Agreement.  To be effective, the rescission must be in writing, and 
delivered to the Company by hand or mail within the 15-day period. If 
delivered by mail, the rescission must be (1) postmarked within the 15-day 
period; (2) properly addressed to the persons set forth in paragraph 28 
above; and (3) sent by certified mail, return receipt requested.  If 
Rasmusson exercises his right of rescission, he agrees to return to the 
Company all payments that may have been made to him under this Agreement, 
with the exception of any vacation pay.

     30.  NON-RELEASE OF FUTURE CLAIMS.  This Agreement does not waive or 
release any rights or claims that Rasmusson may have under the Minnesota 
Human Rights Act or the Age Discrimination in Employment Act, or any of the 
Company's benefit plans, which arise after Rasmusson signs this Agreement, or 
which arise out of acts occurring after he signs this Agreement.


                                       /s/ Larry A. Rasmusson
---------------------------------      ---------------------------------
 Dated:    Sept. 21       , 1998.      Larry A. Rasmusson
       ------------------

---------------------------------      
                                       OXBORO MEDICAL INTERNATIONAL, INC.

---------------------------------      By   /s/ Robert S. Garin            
                                          -------------------------------
 Dated:    27 Aug.        , 1998.           Its  Chairman of the Board    
       ------------------                       -------------------------

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

---------------------------------      
                                       OXBORO OUTDOORS, INC.

 Dated:    27 Aug.        , 1998       By   /s/ Robert S. Garin          
       ------------------                 -------------------------------
                                            Its  Chairman of the Board  
                                                -------------------------


                                      16