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Exhibit 10.3.

Original Document on                                Norwest Bank Minnesota, N.A.
Norwest Banks' Letterhead                           Bloomington Office
                                                    7900 Xerxes Avenue South
                                                    Bloomington, Minnesota 55431
                                                    612/830-7000

March 04, 1996


Mr. Paul Stephenson
Vice President of Finance and Administration
Check Technology Corporation
12500 Whitewater Drive
Minnetonka, MN.  55343-9420

Dear Paul:

I am pleased to inform you that Norwest Bank Minnesota, N.A. (the "Bank") has
approved a committed line of credit (the "Line") in the amount of $2,500,000.00
to be offered to Check Technology Corporation.  The availability of the Line is
subject to the Borrower's execution of a new promissory note (the "Note") and
our mutual execution of this letter agreement.  The following terms and
conditions shall apply to the Line:

BORROWER          Check Technology Corporation (the "Borrower").

TYPE              Committed revolving line of credit.

AMOUNT            $2,500,000.00

EXPIRATION        March 31, 1997

PRICING           Borrowings, if any, will accrue interest at the Bank's base
                  rate, payable monthly.  Additional funding choices, at the
                  Borrower's option, will be available at a rate of 1.75% over
                  the available reserve-adjusted LIBOR or CD rate of like
                  maturity at the date of request.

FEE               The Borrower will pay a 0.20% per annum fee on the unused
                  portion of the line of credit, payable quarterly in arrears.
                  The Borrower has the option to elect a compensating balance
                  arrangement instead of the fee on the unused portion of the
                  line.

                  The compensating balance arrangement requires that the
                  Borrower maintain, in its primary Norwest depository account,
                  average collected balances of 4% of the unused portion of the
                  line of credit.  Please note that the compensating balances
                  are not eligible to receive earnings credit for the purpose of
                  offsetting Bank service charges.

COLLATERAL        Unsecured.

REPORTING         The Borrower agrees to deliver the following information to
REQUIREMENTS      the Bank:



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Mr. Paul Stephenson
March 04, 1996
Page 2


                1. Quarterly financial statements on both a consolidated and
                   consolidating basis, within 55 days of quarter end.

                2. Quarterly financial covenant compliance certificate, within
                   55 days of quarter end.

                3. An annual audited financial statement within 120 days of
                   fiscal year end.

                4. Annual financial projections for the immediately succeeding
                   year, within 120 days of fiscal year end.

                5. Copies of all information and correspondence sent by Borrower
                   to its collective shareholders upon its original
                   distribution.

COVENANTS       The Borrower agrees to comply with the following:

                1. Preserve its corporate existence and, along with all
                   subsidiaries, adequately maintain and insure its properties.
                   Additionally, the Borrower will not, nor will it permit any
                   subsidiary to sell, dispose of, or transfer away any material
                   portion of its assets or properties necessary or desirable
                   for the proper conduct of its business.

                2. All corporate assets, including all subsidiary assets, must
                   be kept free and clear of liens, except for currently
                   existing liens and purchase money security interests.

                3. The Borrower and each of its subsidiaries must refrain from
                   issuing a corporate guaranty or becoming contingently liable
                   in connection with any obligation of any other person or
                   entity.

                4. On a consolidated basis and in accordance with GAAP, the
                   financial performance and condition of the Borrower must
                   remain within the following bounds at all times:

                   a. Minimum funds flow coverage ratio, on a rolling 12 month
                      basis, of 0.30:1.0.  The funds flow coverage ratio is
                      defined as net income (independent of unrealized foreign
                      exchange gains or losses) + depreciation + amortization
                      divided by the sum of all short term and long term
                      interest bearing obligations (including capital lease
                      obligations).

                5. Promptly notify the Bank upon knowledge of the occurrence of
                   an event of default hereunder or under the Note.


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Mr. Paul Stephenson
March 04, 1996
Page 3

                6. Supply the Bank with such other information as the Bank may
                   from time to time reasonably request, and permit the Bank to
                   have access to its books, records, properties, and principal
                   officers as it may reasonably request.
CONDITIONS
PRECEDENT       Prior to the making of the first advance under the Line, the
                Borrower shall deliver, at the Bank's request, certified
                borrowing resolutions and an incumbency certificate, duly
                executed by the corporate secretary of the Borrower and in form
                and content acceptable to the Bank.  Furthermore, the Bank has
                the right to not consider any requests for advances under the
                Line if, as of the date of such request, there exists an event
                of default under the Note.

DEFAULT         The Bank may declare the Line terminated and declare the unpaid
                principal, accrued interest and all other amounts payable under
                the Note to be immediately due and payable, if the Borrower
                fails in the observance or performance of any covenant or
                agreement contained herein, and continuance for more than 30
                days.  In addition, the Note contains events of default that are
                incorporated herein by reference.

If the provisions of this Letter Agreement are acceptable, please sign below and
return to me.  Please call at
830-8933, if you have any questions.

Sincerely,

/s/  Tracy L. Smith
----------------------

Tracy L. Smith
Assistant Vice President

Accepted By:

CHECK TECHNOLOGY CORPORATION

By:   /s/ Paul Stephenson
      -------------------------------------------------
Its:  Vice President - Finance and Administration
      -------------------------------------------------
Date: March 29, 1996
      -------------------------------------------------



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--------------------------------------------------------------------------------
Original Document on                                   Commercial-Bus/Ag Note   
Norwest Banks' Letterhead
--------------------------------------------------------------------------------
Borrower's name                                       Date
Check Technology Corporation                          March 04, 1996
--------------------------------------------------------------------------------
Choose one of the following
/X/ On March 31              , 1997; or
      ----------------------  -----
/ /   ----------------------------- after date, for value received, the
    undersigned (if more than one,jointly and severally) promise (s) to pay to
    the order of Norwest Bank Minnesota, National Association 
              (the "Bank") at 7900 Xerxes Avenue South 
                        Bloomington, Minnesota 55431-2206

or at any other place designated at any time by the holder hereof, in lawful
money of the United States of America, the principal sum of

Two Million Five Hundred Thousand and no/100 - - - - - - Dollars ($2,500,000.00
---------------------------------------------------------        ---------------
or so much thereof as is disbursed and remains outstanding hereunder on the due
date hereof, as shown by the Bank's liability record or on the reverse side
hereof, as the case may be, together with interest (calculated on the basis of
actual days elapsed in a __360_____day year) on the unpaid balance hereof from
the date hereof until this Note is fully paid, at the following rate:

    / /  an annual rate of ______%
    / /  an annual rate equal to ______% above the Base Rate from time to time,
         each change in the interest rate hereon to become effective on the day
         the corresponding change in the Base Rate becomes effective;
    / /  an annual rate which, for any particular month, shall be _____ % above
         the Base Rate in effect on the _____ day of the immediately preceding
         month;
    /X/  an annual rate equal to the variable Base Rate or a fixed rate equal
         to 1.75% over the available reserve-adjusted LIBOR or CD rate of like
         maturity at the date of request.


provided, however, that if this Note has a variable rate of interest, the annual
rate (i) shall at no time be less than  N/A %, and (ii) shall at no time exceed
an annual rate, if one be specified: / / of N/A% / / that is N/A % above the
discount rate on 90-day commercial paper in effect from time to time at the
Federal Reserve Bank of Minneapolis.
and provided further that if the original principal amount hereof is less than
$100,000, this Note shall bear the same interest rate after it becomes due as
was in effect on such due date.  As used herein, "Base Rate" means the rate of
interest established by The Bank from time to time as its "base" or "prime"
rate; and "due date" means the maturity date hereof (whether it be the stated
maturity date or such earlier date by reason of acceleration) or, if this Note
is payable upon demand, the date of demand.

    / /  Interest shall be payable at maturity.
    /X/  Interest shall be payable monthly commencing April 30, 1996 and also
         on demand.

    If interest hereon is not paid when due, or if any other indebtedness of
the undersigned to the Bank is not paid when due, or if  a garnishment summons
or a writ of attachment is issued against or served upon the Bank for attachment
of any property of the undersigned in the Bank's possession or any indebtedness
owing to the undersigned, or if the holder hereof shall at any time in good
faith believe that the prospect of due and punctual payment of this Note is
impaired, then, in any such event, the holder hereof may, at its option, declare
this Note to be immediately due and payable and thereupon this Note shall be
immediately due and payable, together with all unpaid interest accrued hereon,
without notice or demand; provided, however, that if this Note is payable on
demand, nothing herein contained shall preclude or limit the holder hereof from
demanding payment of this Note at any time and for any reason, without notice. 
If this Note is not paid on the due date, the Bank shall also have the right to
set off the indebtedness evidenced by this Note against any indebtedness of Bank
to the undersigned.  This Note shall also become automatically due and payable
(including unpaid interest accrued thereon) without notice or demand should the
undersigned die (an individual) or should a petition be filed by or against the
undersigned under the United States Bankruptcy code.

    Unless prohibited by law, the undersigned agree(s) to pay all costs of
collection, including reasonable attorneys' fees and legal expenses, incurred by
the holder hereof in the event  this Note is not duly paid.  The holder hereof
may at any time renew this Note or extend its maturity date for any period and
release any security for, or any party to , this Note, all without notice to or
consent of and without releasing any accommodation maker, endorser or guarantor
from liability on this Note.  Presentment or other demand for payment, notice of
dishonor and protest are hereby waived by the undersigned and each endorser and
guarantor.  The undersigned agree(s) that each provision whose box is checked is
part of this Note.  This Note shall be governed by the substantive laws of the
State Of Minnesota, except insofar as the Bank may rely on the laws of the
United States to justify the interest rate charged hereunder.

    / /  This Note is secured.    /X/  If this box is checked this Note
                                       evidences a revolving credit facility.
    /X/  This Note is unsecured.

--------------------------------------------------------------------------------
Purpose of loan                   Borrower's name
General Corporate Purposes        Check Technology Corporation
--------------------------------------------------------------------------------
Address                           Signature                Title
12500 Whitewater Drive            X  /S/ Paul Stephenson   V. P. Finance
Minnetonka, MN.  55343-9420


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