Document:

<PAGE>
                                                                  Exhibit 10.196

                                CANANWILL, INC.
          1000 MILWAUKEE AVENUE, GLENVIEW, IL 60025  -  (800) 523-0719
          COMMERCIAL INSURANCE PREMIUM FINANCE AND SECURITY AGREEMENT

<Table>
<S>                               <C>                       <C>
                                                            Contract Number
                                                            ---------------

                                   Agent Number             Quote Number
                                   ------------             ------------
NC LIC. #B-116,SC LIC. #99         A2265                    JAN082202001A-1
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</Table>

<Table>
<S>                                                                        <C>
Name and Address of Insured (Exactly as Shown on Policy) ("Insured")       Name and Address of Insured's Agent ("Agent")
--------------------------------------------------------------------       ---------------------------------------------

MEADOW VALLEY CONTRACTORS &                                                AON RISK SVCS OF IRVINE.
ALL INSURDS COVERD BY THE POLS                                             1901 MAIN STREET STE 300
LISTED BELOW                                                               IRVINE CA 92614
4411 S. 40TH STREET STE D-11
PHOENIX AZ 85082-0726

Telephone Number: (602) 437-5400                                           Telephone Number: (949) 608-6300
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</Table>

<Table>
<S>                       <C>                     <C>                                <C>
Policyholder Designation  (Check One):            Type of Agreement (Check One:)
                          ( ) Proprietorship      ( ) New                            Indicate contract number of
( ) Partnership           (X) Corporation         (X) Additional Premium             current policy being financed. 0303732894
------------------------------------------------------------------------------------------------------------------------------------
</Table>
                 SCHEDULE OF POLICIES COVERED BY THIS AGREEMENT
<Table>
FOR       POLICY NUMBER           FULL NAME OF INSURANCE COMPANY AND       TYPE OF        TERM         POLICY          POLICY
COMPANY                           ADDRESS OF BRANCH REPORTING OFFICE AND   INSUR-         IN           EFFECTIVE       PREMIUM
USE ONLY  Prefix    Number        FULL NAME AND ADDRESS OF GENERAL AGENT   ANCE           MONTHS       DATE
                                                                                                       Mo. Day Year
<S>       <C>                     <C>                                      <C>            <C>          <C>             <C>
01282                             COMBINED SPECIALTY INSURANCE             GL             12           9  01  02          737,118.00
01282                             COMBINED SPECIALTY INSURANCE             WC             12           9  01  02          409,305.00
08957                             ROYAL INDEMNITY COMPANY                  UMB            12           9  01  02          310,000.00
B0203                             COONEY, RIKARD, & CURTAIN
          --------------------------------------------------------------------------------------------------------------------------
          NY: Charge under Section 2119 of New York Insurance Law for                     FLORIDA DOCUMENTARY
          obtaining and servicing these policies. If none, state "None", $_____                     STAMP TAX          $        0.00
          --------------------------------------------------------------------------------------------------------------------------
                                                                                          CASH PRICE
                                                                                          (Total Premiums)             $1,456,423.00
------------------------------------------------------------------------------------------------------------------------------------
</Table>

<Table>
<S>            <C>                                                                         <C>
["CI Logo"]    DISCLOSURE STATEMENT - PAYMENT SCHEDULE
               Payment Plan: (X) Monthly  ( ) Quarterly  ( ) Annually
               Number of Payments      10                                                  First Payment Due  October 06, 2002
                                       --                                                                     ----------------
               Subsequent payments are due on the same day of each succeeding period.
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</Table>

<Table>
<Caption>
CASH       (-) CASH      (=) AMOUNT          (+) FINANCE        (=)  TOTAL OF                      AMOUNT         ANNUAL
PRICE          DOWN          FINANCED            CHARGE              PAYMENTS                      OF             PERCENTAGE RATE
               PAYMENT       The amount of       The dollar amount   The amount you will have      EACH           The cost of your
                             credit provided     the credit will     paid when you have made       PAYMENT        credit as a
                             on your behalf.     cost you.           all scheduled payments.                      yearly rate.
------------   ----------    ---------------     -----------------   ------------------------      ---------      ----------------
<S>            <C>           <C>                 <C>                 <C>                           <C>            <C>
1,456,423.00   218,463.45    1,237,959.55        27,111.15           1,265,070.70                  126,507.07     4.75%
------------------------------------------------------------------------------------------------------------------------------------
</Table>

                 CANANWILL, INC. (HEREIN AFTER CALLED CANANWILL)
           1000 MILWAUKEE AVENUE, GLENVIEW, IL 60025 - (800) 523-0719

     Prepayment: The Insured may prepay in full at any time and receive a
refund of the unearned finance charge, calculated according to the Rule of 78's
(actuarial method in AR, AZ, CA, MA NJ, OR, PA, VT; short rate method in SC),
and subject to a nonrefundable charge stated on page two. Minimum refund is
$1.00.

     Security Interest: The insured assigns to Cananwill as security for
payment of this agreement all sums payable to the Insured with reference to the
policies listed above, including, among other things, any gross return premiums
and any payment on account of loss which results in reduction of unearned
premium in accordance with the term of said policies.

     Delinquency charge: The Insured agrees that upon default in payment of any
installment five days or more (more than 5 days in IL, MS, OH) to pay a
Delinquency Charge of 5% of the delinquent installment. In AK, CA, DE, MI, MN,
ND, NM, NJ, OR, TN, TX, the Delinquency Charge is not due until installment is
in default for ten days or more, more than 10 days in MA, 7 days in VA. Maximum
delinquency charge is $5 in DE, MT, ND; $100 in MD; $500 in NM; 1-1/2% of the
installment in NJ with a minimum of $25. In AK, OR: for delinquent payments of
less than $250, the delinquency charge is the lesser of 5% of the payment or
$5, otherwise the delinquency charge is 2% of the payment. KS: Delinquency
charge is $5 plus 2% of the installment in default.

Cancellation Charge: The Insured agrees that if a default results in
cancellation of the policy(ies) to pay a Cancellation Charge in the amount
stated on page two. (Not applicable in KY, TX, NC)

     See the provisions on page two for additional information about nonpayment
default, and any repayment in full before the scheduled date and any prepayment
refunds or penalties.
--------------------------------------------------------------------------------

NOTICE   1. DO NOT SIGN THIS AGREEMENT BEFORE YOU READ IT, INCLUDING THE WRITING
TO       ON PAGE TWO, OR IF IT CONTAINS ANY BLANKS. 2. YOU ARE ENTITLED TO A
INSURED: COMPLETELY FILLED IN COPY OF THIS AGREEMENT AT THE TIME YOU SIGN IT. 3.
         YOU UNDERSTAND AND HAVE RECEIVED A COPY OF THIS AGREEMENT. KEEP IT TO
         PROTECT YOUR LEGAL RIGHTS. 4. UNDER THE LAW YOU HAVE THE RIGHT TO PAY
         OFF IN ADVANCE THE FULL AMOUNT DUE AND UNDER CERTAIN CONDITIONS TO
         OBTAIN A PARTIAL REFUND OF THE FINANCE CHARGE. 5. SEE PAGE TWO FOR
         IMPORTANT INFORMATION.

All Insureds must sign as named in policies. If corporation, authorized officers
must sign; if partnership, partner should sign as such; signatory acting in
representative capacity represents that all Insureds have authorized this
transaction and have authorized signatory to receive all notices hereunder. By
signing below each Insured jointly and severally agrees to make all payments
required by this Agreement and to be bound by all provisions of this Agreement,
including those on page two. You are not required to enter into an insurance
premium financing financing arrangement as a condition to the purchase of any
insurance policy.

By   /s/ Kenneth D. Nelson, Vice President                      Date 9-9-02
     ------------------------------------                            ------
     KENNETH D. NELSON, VICE PRESIDENT
     ------------------------------------
           (Typed Name and Title)

AGENT'S REPRESENTATIONS AND WARRANTIES
The undersigned Agent has read the Insurance Agent's Representations and
Warranties on page two and makes all such representations and warranties
recited therein and agrees to be bound by the terms of this Agreement.

By                                                              Date
     ------------------------------------                            ------
            (Signature of Agent)

     ------------------------------------
           (Typed Name and Title)

<PAGE>
THE INSURED (JOINTLY AND SEVERALLY IF MORE THAN ONE) AGREES AS FOLLOWS:

1. In consideration of the payment by Cananwill of the Amount Financed,
Insured agrees to pay the Cash Down Payment to the insurance company(ies)
listed in the Schedule of Policies, and to pay Cananwill the Total of Payments
in accordance with the terms of this Agreement. Interest is computed on an
annual basis of 12 months of 30 days each.

2. Insured assigns to Cananwill as security for the total amount payable
hereunder all sums payable to the Insured under the listed Policies, including,
among other things, any gross unearned premiums and any payment on account of
loss which results in a reduction of unearned premium in accordance with the
terms of said policies.

3. Insured hereby irrevocably appoints Cananwill as its Attorney-in-Fact upon
the occurrence of an Event of Default (defined below) and, after proper notice
has been mailed as required by law, grants to Cananwill authority to effect
cancellation of policy(ies) listed in the Schedule of Policies ("Policies"),
and to receive any unearned premium or other amounts with respect to the
Policies assigned as security herein, and to sign any check or draft issued
therefor in Insured's name and to direct the insurance companies to make said
check or draft payable to Cananwill. Insured agrees that proof of mailing any
notice hereunder constitutes proof of receipt of such notice.

4. Insured agrees that any payments made and accepted after Policy
cancellation shall not constitute reinstatement or obligate Cananwill to
request reinstatement of such insurance Policy(ies), and Insured acknowledges
that Cananwill has no authority to reinstate coverage, and that such payments
may be applied to Insured's indebtedness hereunder.

5. Insured agrees not to assign the Policy(ies) except for the interest of
mortgagees or loss payees, without the written consent of Cananwill. Cananwill
may assign this Agreement without Insured's consent, and all rights conferred
upon Cananwill shall inure to Cananwill's successors and assigns.

6. Except in KY and VT, Insured agrees to pay a fee of $15.00 in the event of a
dishonored check. ($5.00 in CA; $10 in AZ, MA, MD, OH, VI; $7.50 in NV, not to
exceed Cananwill's cost in NJ).

7. An Event of Default occurs when the Insured does not pay any installment
according to the terms of this Agreement or (except in MD) fails to comply with
any of the terms of the Agreement or (except in MD) if any of the Policies are
cancelled for any reason. If an Event of Default occurs and after giving notice
as required by law, all amounts due under this Agreement become immediately due
and payable and the Insured is liable for all amounts described herein,
including any unpaid balance remaining after application of the unearned
premiums. If an Event of Default occurs, Cananwill may at its option pursue the
following remedies:

-    After proper notice has been given as required by law, Cananwill may
     immediately cancel the Policy(ies) and collect any unearned premiums or
     other amounts payable under said Policies. Unearned premiums shall be
     payable to Cananwill only.

-    Cananwill may take all necessary actions to enforce payment of this debt.
     To the extent not prohibited or limited by applicable law, Cananwill is
     entitled to collection costs and expenses incurred while enforcing its
     rights under this Agreement and to reasonable attorney's fees if this
     Agreement is referred to an attorney who is not a salaried employee of
     Cananwill for collection or enforcement (not permitted in KY; total of
     collection costs and attorney's fees is limited to 20% of the unpaid
     balance in AZ, FL, MO, MS, NH, NV, NY, VI; 15% of unpaid balance in TN; 25%
     of unpaid balance in VT).

-    Except in AK, KY, MI, NC, VT and the other states listed herein, after
     cancellation, Insured agrees to pay interest on the unpaid balance
     (calculated according to the Rule of 78's (actuarial method in AR, AZ, CA,
     NJ, OR, PA; short rate method in SC) as of the schedule due date of the
     first delinquent payment leading to cancellation of the Policies) at the
     rate of 1% per month (in AR, NM, TX, at the Annual Percentage Rate stated
     on page one), or at the highest rate permitted by law, whichever is less,
     until the entire balance of this loan is paid in full. In MA, Insured
     agrees to pay interest at the rate of 1% per month on the difference
     between the unpaid balance on the date of cancellation (computed according
     to the actuarial method) and the unearned premiums received by Cananwill
     on the cancelled Policies, for the period from the date of cancellation
     until the balance is paid in full.

-    In AL, DC, DE, IL, KS, NY and WA, after cancellation, Insured agrees that
     Cananwill may recompute the total finance charge due under this Agreement
     on the original amount financed, at the rate and in the manner described in
     this paragraph from the first effective date of the Policies through the
     last originally scheduled installment date, and Insured agrees to pay this
     amount, subject to the provisions on prepayment in full. That rate, stated
     as a dollar amount per year for each $100 of amount financed is as follows:
     $9 in AL, DE; $10 in DC, IL, WA; $12 in KS; $14 in NY.

-    Cananwill may offset and deduct from any amounts Cananwill owes to Insured
     with respect to any Policies financed hereunder, any amounts which Insured
     owes to Cananwill under this or (except in KY, MD, NC and TX) any other
     agreement.

8. Insured agrees to pay a non-refundable service fee of $10 in AK, AZ, CT, DE,
KS, LA, MO, NY, PA, WA, WI; $12 in NJ; $12.50 in MT; $15 in AL, KY, NC, RI, SC,
TN, VA; $16 in MA; $18 in MI; $20 in DC, FL, GA, MD, MN, OH; $25 in CO, HI, IA,
ID, IN, ME, NE, ND, NV, OK, SD, UT, VI, WV, WY; the lesser of $50 or 10% of the
amount financed in OR. In CA, the minimum finance charge is $25. In IL, the
non-refundable service charge is $20 if the amount financed is less than $500,
$30 if the amount financed is $500 or more but less than $1,000, or $40 if the
amount financed is over $1,000. In NJ, if this loan is prepaid in full, Insured
agrees to pay an additional charge of $20 of any loan of $2,000 or less, 1% of
the loan for loans over $2,000 up to and including $5,000 and $100 on loans over
$5,000.

9. Insured agrees to pay a cancellation charge of $5 in TN, VI; $10 in MN, ND,
OH; $15 in AL, AZ, GA, MO, MS, RI, WI; $25 in CO, HI, IA, ID, IN, LA, ME, NE,
OK, SD, UT, WV, WY; the greater of 2% of the unpaid balance or $5 in MA; the
difference between the delinquency charge assessed and; $5 in DE, MI, MT, NJ,
NY, OR, WA; $10 in DC; $15 in NH; $100 in MD.

10. Insured agrees to pay promptly to the insurer any additional premiums due
on the Policies.

11. The Agent is not the agent of Cananwill and the Agent cannot bind
Cananwill. Cananwill is not the Agent of any insurer and is not liable for any
acts or omissions of any insurer. Insured acknowledges that it has chosen to
do business with the Agent and the insurance companies issuing the Policies,
and that the insolvency, fraud, defalcation or other action or failure to act
by any of them shall not relieve or diminish Insured's obligations to Cananwill
hereunder.

12. Except in MD, and if not prohibited by applicable law, Cananwill may insert
the name of the insurer, policy numbers and first installment due date if
omitted and if policy has not been issued at the time of signature.

13. This Agreement shall have no force or effect until accepted by Cananwill.
All rights and remedies in this Agreement are cumulative and not exclusive. If
any part of this Agreement is determined to be invalid or unenforceable, the
remaining provisions of this Agreement shall continue to be in full force and
effect. Neither Cananwill nor its assignee shall be liable for any loss or
damage to the Insured by reason of failure of any insurance company to issue or
maintain in force any of the Policies or by reason of the exercise by Cananwill
or its assignee of the rights conferred herein. This Agreement constitutes the
entire Agreement between Cananwill and Insured and may not be modified except
as agreed upon in writing. Cananwill's acceptance of late or partial payments
shall not be deemed a waiver by Cananwill of any provisions of this Agreement,
and Cananwill is entitled to require Insured to strictly comply with the terms
hereof. Except in AR, this Agreement is governed by the law of the state of the
Insured's address shown on page one of this Agreement. In AR, this Agreement is
governed by the law of the state where this Agreement is accepted by Cananwill.
If any amount contracted for or received by Cananwill is determined to violate
any law or regulation Cananwill may return such prohibited amount to Insured
without any further liability therefor (waiver of liability not applicable in
KY).

14. Insured represents and warrants that the proceeds of this loan are to be
used to purchase insurance for other than personal, family or household
purposes and that all information provided herein or in connection with this
Agreement is true, correct, complete and not misleading.

15. CALIFORNIA RESIDENTS ONLY: FOR INFORMATION CONTACT THE DEPARTMENT OF
CORPORATIONS, STATE OF CALIFORNIA.
Insured agrees that, in accordance with Section 18608 of the California
Financial Code, Cananwill's liability to Insured upon the exercise of
Cananwill's authority to cancel the Policies shall be limited to the amount of
the principal balance of this loan, except in the event of Cananwill's willful
failure to mail the notice of cancellation required under California law.

IN CONNECTION WITH THE POLICIES SCHEDULED ON PAGE ONE, THE AGENT REPRESENTS AND
WARRANTS TO CANANWILL, ITS SUCCESSORS AND ASSIGNS THAT:

1. Deposit premiums are not less than the anticipated premiums to be earned for
the full terms of the Policies.

2. All of the scheduled Policies or bonds in this Agreement are cancellable by
standard short rate or pro-rata tables.

3. When cancellation is requested by Insured or by Cananwill, none of the
Policies require advance notice of cancellation to any party, other than any
notice required to be given by Cananwill, and there are no audit or reporting
form policies, Policies subject to retrospective rating or to minimum earned
premiums except as indicated in the Schedule of Policies.

4. We are the authorized policy issuing Agent of the insurance companies or the
broker placing the coverage directly with the insurance company on all Policies
except as indicated in the Schedule of Policies.

5. The Insured(s) signature(s) on both pages one and two hereof are genuine, the
Insured has not paid for the scheduled Policies other than as described herein,
the Insured(s) have received a copy of this Agreement, this Agreement is valid
and enforceable and there are no defenses to it. The scheduled Policies are in
full force and effect and the premiums indicated are correct for the term of the
Policies, and all other information relating to the Policies and the Insured is
complete and correct. None of the Policies have been financed on an installment
payment plan provided by the insurance company(ies), or are noncancellable
policy(ies), or policies written for a term of less than one year. The Agent
recognizes the Insured's assignment of the unearned premiums and upon
cancellation of any of the scheduled Policies agrees to pay promptly any
unearned commissions to Cananwill and to pay to Cananwill the unearned premiums
immediately upon receipt. Agent shall not deduct any amounts which Insured owes
to Agent from any amounts owing to Cananwill hereunder. The Policies are not for
personal, family or household purposes.

6. A proceeding in bankruptcy, receivership or insolvency has not been
instituted by or against the Insured or if the Insured is the subject of such a
proceeding, it is noted on the Agreement in the space in which the Insured's
name and address is placed.

7. If the Agreement has been signed by the Agent on behalf of the Insured, the
Agent has the authority to act in this capacity and the Agent has provided the
Insured with a complete copy of this Agreement.

8. There are no exceptions to the Policies financed other than those indicated,
and the Policy(ies) comply with Cananwill's eligibility requirements.

9. The Cash Down Payment, and any installments due from the Insured which Agent
has agreed to collect, have been collected from the Insured.

10. Agent is not an agent of Cananwill and is not authorized to bind Cananwill
and has not made any representation to the contrary.

The Agent agrees to promptly remit all funds received from Cananwill and the
Insured for the financed Policies and due to the insurance company(ies) issuing
such Policies. Agent shall be liable to Cananwill for any losses, costs, damages
or other expenses (including attorney's fees) incurred by Cananwill or its
assignee as a result of or in connection with any untrue or misleading
representation or warranty made by Agent hereunder, or otherwise arising out of
the breach by Agent of this Agreement. Agent shall promptly notify Cananwill of
any unpaid increased premiums for the Polices.

Signatures: Insured /s/  Illegible                     Date 9-9-02
           -------------------------------------            -------------------

Agent                                                  Date
     -------------------------------------------            -------------------<PAGE>
                                                                  Exhibit 10.197
                           MASTER SECURITY AGREEMENT

     THIS MASTER SECURITY AGREEMENT, made as of SEPTEMBER 17, 2002
("AGREEMENT"), by and between ASTEC FINANCIAL SERVICES, INC., a TENNESSEE
corporation with an address at 1725 SHEPHERD ROAD, CHATTANOOGA, TN 37421
("SECURED PARTY"), and MEADOW VALLEY CONTRACTORS, INC., A CORPORATION organized
and existing under the laws of the State of NEVADA with its chief executive
offices located at 4411 SOUTH 40TH STREET, SUITE D-11, PHOENIX, AZ 85040
("DEBTOR").

     In consideration of the promises herein contained and of certain other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Debtor and Secured Party hereby agree as follows:

1.   CREATION OF SECURITY INTEREST.

     Debtor hereby gives, grants and assigns to Secured Party, its successors
and assigns forever, a security interest in and against any and all property
listed on any collateral schedule now or hereafter annexed hereto or made a part
hereof ("COLLATERAL SCHEDULE"), and in and against any and all additions,
attachments, accessories and accessions thereto, any and all substitutions,
replacements or exchanges therefor, and any and all insurance and/or other
proceeds thereof (all of the foregoing being hereinafter individually and
collectively referred to as the "COLLATERAL"). The foregoing security interest
is given to secure the payment and performance of any and all debts, obligations
and liabilities of any kind, nature or description whatsoever (whether primary,
secondary, direct, contingent, sole, joint or several, or otherwise, and whether
due or to become due) of Debtor to Secured Party, now existing or hereafter
arising, including but not limited to the payment and performance of certain
Promissory Notes from time to time identified on any Collateral Schedule
(collectively "NOTES" and each a "NOTE"), and any renewals, extensions and
modifications of such debts, obligations and liabilities (all of the foregoing
being hereinafter referred to as the "INDEBTEDNESS").

2.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF DEBTOR.

     Debtor hereby represents, warrants and covenants as of the date hereof and
as of the date of execution of each Collateral Schedule hereto that:

     (a)  Debtor is, and will remain, duly organized, existing and in good
standing under the laws of the State set forth in the first paragraph of this
Agreement, has its chief executive offices at the location set forth in such
paragraph, and is, and will remain, duly qualified and licensed in every
jurisdiction wherever necessary to carry on its business and operations;

     (b)  Debtor has adequate power and capacity to enter into, and to perform
its obligations, under this Agreement, each Note and any other documents
evidencing, or given in connection with, any of the Indebtedness (all of the
foregoing being hereinafter referred to as the "DEBT DOCUMENTS");

     (c)  This Agreement and the other Debt Documents have been duly authorized,
executed and delivered by Debtor and constitute legal, valid and binding
agreements enforceable under all applicable laws in accordance with their
terms, except to the extent that the enforcement of remedies may be limited
under applicable bankruptcy and insolvency laws;

     (d)  No approval, consent or withholding of objections is required from
any governmental authority or instrumentality with respect to the entry into,
or performance by, Debtor of any of the Debt Documents, except such as may have
already been obtained;

     (e)  The entry into, and performance by, Debtor of the Debt Documents will
not (i) violate any of the organizational documents of Debtor or any judgment,
order, law or regulation applicable to Debtor, or (ii) result in any breach of,
constitute a default under, or result in the creation of any lien, claim or
encumbrance on any of Debtor's property (except for liens in favor of Secured
Party) pursuant to, any indenture mortgage, deed of trust, bank loan, credit
agreement, or other agreement or instrument to which Debtor is a party;

     (f)  There are no suits or proceedings pending or threatened in court or
before any commission, board or other administrative agency against or
affecting Debtor which could, in the aggregate, have a material adverse effect
on Debtor, its business or operations, or its ability to perform its
obligations under the Debt Documents;

     (g)  All financial statements delivered to Secured Party in connection
with the Indebtedness have been prepared in accordance with generally accepted
accounting principles, and since the date of the most recent financial
statement, there has been no material adverse change;

     (h)  The Collateral is not, and will not be, used by Debtor for personal,
family or household purpose;

     (i)  The Collateral is, and will remain, in good condition and repair and
Debtor will not be negligent in the care and use thereof;

     (j)  Debtor is, and will remain, the sole and lawful owner, and in
possession of, the Collateral, and has the sole right and lawful authority to
grant the security interest described in this Agreement; and

     (k)  The Collateral is, and will remain, free and clear of all liens,
claims and encumbrances of every kind, nature and description, except for (i)
liens in favor of Secured Party, (ii) liens for taxes not yet due or for taxes
being contested in good faith and which do no involve, in the reasonable
judgment of Secured Party, any risk of the sale, forfeiture or loss of any of
the Collateral, and (iii) inchoate materialmen's, mechanic's, repairmen's and

                                     1 of 5

<PAGE>
similar liens arising by operation of law in the normal course of business for
amounts which are not delinquent (all of such permitted liens being hereinafter
referred to as "PERMITTED LIENS").

3.   COLLATERAL.

     (a)  Until the declaration of any default hereunder, Debtor shall remain
in possession of the Collateral; provided, however, that Secured Party shall
have the right to possess (i) any chattel paper or instrument that constitutes
a part of the Collateral, and (ii) any other Collateral which because of its
nature may require that Secured Party's security interest therein be perfected
by possession. Secured Party, its successors and assigns and their respective
agents, shall have the right to examine and inspect any of the Collateral at
any time during normal business hours. Upon any request from Secured Party,
Debtor shall provide Secured Party with notice of the then current location of
the Collateral.

     (b)  Debtor shall (i) use the Collateral only in its trade or business,
(ii) maintain all of the Collateral in good condition and working order, (iii)
use and maintain the Collateral only in compliance with all applicable laws,
and (iv) keep all of the Collateral free and clear of all liens, claims and
encumbrances (except for Permitted Liens).

     (c)  Debtor shall not, without the prior written consent of Secured
Party, (i) part with possession of any of the Collateral (except to Secured
Party or for maintenance and repair), (ii) remove any of the Collateral from
the continental United States, or (iii) sell, rent, lease, mortgage, grant a
security interest in or otherwise transfer or encumber (except for Permitted
Liens) any of the Collateral.

     (d)  Debtor shall pay promptly when due all taxes, license fees,
assessments and public and private charges levied or assessed on any of the
Collateral, on the use thereof, or on this Agreement or any of the other Debt
Documents. At its option, Secured Party may discharge taxes, liens, security
interests or other encumbrances at any time levied or placed on the Collateral
and may pay for the maintenance, insurance and preservation of the Collateral
or to effect compliance with the terms of this Agreement or any of the other
Debt Documents. Debtor shall reimburse Secured Party, on demand, for any and
all costs and expenses incurred by Secured Party in connection therewith and
agrees that such reimbursement obligation shall be secured hereby.

     (e)  Debtor shall, at all times, keep accurate and complete records of the
Collateral, and Secured Party, its successors and assigns, and their respective
agents, shall have the right to examine, inspect, and make extracts from all of
Debtor's books and records relating to the Collateral at any time during normal
business hours.

     (f)  If agreed by the parties, Secured Party may, but shall in no event be
obligated to, accept substitutions and exchanges of property for property, and
additions to the property, constituting all or any part of the Collateral. Such
substitutions, exchanges and additions shall be accomplished at any time and
from time to time, by the substitution of a revised Collateral Schedule for the
Collateral Schedule now or hereafter annexed. Any property which may be
substituted, exchanged or added as aforesaid shall constitute a portion of the
Collateral and shall be subject to the security interest granted herein.
Additions to, reductions or exchanges of, or substitutions for, the Collateral,
payments on account of any obligation or liability secured hereby, increases
in the obligations and liabilities secured hereby, or the creation of
additional obligation and liabilities secured hereby, may from time to time be
made or occur without affecting the provisions of this Agreement or the
provisions of any obligations or liability which this Agreement secures.

     (g)  Any third person at any time and from time to time holding all or any
portion of the Collateral shall be deemed to, and shall, hold the Collateral as
the agent of, and as pledge holder for, Secured Party. At any time and from
time to time, Secured Party may give notice to any third person holding all or
any portion of the Collateral that such third person is holding the Collateral
as the agent of, and as pledge holder for, the Secured Party.

4.   INSURANCE.

     The Collateral shall at all times be held at Debtor's risk, and Debtor
shall keep it insured against loss or damage by fire and extended coverage
perils, theft, burglary, and for any or all Collateral which are vehicles, for
risk of loss by collision, and where requested by Secured Party, against other
risks as required thereby, for the full replacement value thereof, with
companies, in amounts and under policies acceptable to Secured Party. Debtor
shall, if Secured Party so requires, deliver to Secured Party policies or
certificates of insurance evidencing such coverage. Each policy shall name
Secured Party as loss payee thereunder, shall provide for coverage to Secured
Party regardless of the breach of Debtor of any warranty or representation made
therein, shall not be subject to co-insurance, and shall provide for thirty (30)
days written notice to Secured Party of the cancellation or material
modification thereof. Debtor hereby appoints Secured Party as its attorney in
fact to make proof of loss, claim for insurance and adjustments with insurers,
and to execute or endorse all documents, checks or drafts in connection with
payments made as a result of any such insurance policies. Proceeds of insurance
shall be applied, at the option of Secured Party, to repair or replace the
Collateral or to reduce any of the Indebtedness secured hereby.

5.   REPORTS.

     (a)  Debtor shall promptly notify Secured Party in the event of (i) any
change in the name of Debtor, (ii) any relocation of its chief executive
offices, (iii) any relocation of any of the Collateral, (iv) any of the
Collateral being lost, stolen, missing, destroyed, materially damaged or worn
out, or (v) any lien, claim or encumbrance attaching or being made against any
of the Collateral other than Permitted Liens.

     (b)  Debtor agrees to furnish its annual financial statements and such
interim statements as Secured Party may require in form satisfactory to Secured
Party. Any and all financial statements submitted and to be submitted and to be
submitted to Secured Party have and will have been prepared on a basis of
generally

                                     2 of 5
<PAGE>
accepted accounting principles, and are and will be complete and correct and
fairly present Debtor's financial condition as at the date thereof. Secured
Party may at any reasonable time examine the books and records of Debtor and
make copies thereof.

6. FURTHER ASSURANCES.

     (a) Debtor shall, upon request of Secured Party, furnish to Secured Party
such further information, execute and deliver to Secured Party such documents
and instruments (including, without limitation, Uniform Commercial Code
financing statements) and do such other acts and things, as Secured Party may at
any time reasonably request relating to the perfection or protection of the
security interest created by this Agreement or for the purpose of carrying out
the intent of this Agreement. Without limiting the foregoing, Debtor shall
cooperate and do all acts deemed necessary or advisable by Secured Party to
continue in Secured Party a perfected first security interest in the Collateral,
and shall obtain and furnish to Secured Party any subordinations, releases,
landlord, lessor or mortgagee waivers, and similar documents as may be from time
to time requested by, and which are in form and substance satisfactory to,
Secured Party.

     (b) Debtor hereby grants to Secured Party the power to sign Debtor's name
and generally to act on behalf of Debtor to execute and file applications for
title, transfers of title, financing statements, notice of lien and other
documents pertaining to any or all of the Collateral. Debtor shall, if any
certificate of title be required or permitted by law for any of the Collateral,
obtain such certificate showing the lien hereof with respect to the Collateral
and promptly deliver same to Secured Party.

     (c) Debtor shall indemnify and defend the Secured Party, its successors
and assigns, and their respective directors, officers and employees, from and
against any and all claims, actions and suits (including, without limitation,
related attorneys' fees) of any kind, nature or description whatsoever arising,
directly or indirectly, in connection with any of the Collateral.

7. EVENTS OF DEFAULT.

     Debtor shall be in default under this Agreement and each of the other Debt
Documents upon the occurrence of any of the following "Event(s) of Default":

     (a) Debtor fails to pay any installment or other amount due or coming due
under any of the Debt Documents within ten (10) days after its due date;

     (b) Any attempt by Debtor, without the prior written consent of Secured
Party, to sell, rent, lease, mortgage, grant a security interest in, or
otherwise transfer or encumber (except for Permitted Liens) any of the
Collateral;

     (c) Debtor fails to procure, or maintain in effect at all times, any of
the insurance on the Collateral in accordance with Section 4 of this Agreement;

     (d) Debtor breaches any of its other obligations under any of the Debt
Documents and fails to cure the same within thirty (30) days after written
notice thereof;

     (e) Any warranty, representation or statement made by Debtor in any of the
Debt Documents or otherwise in connection with any of the Indebtedness shall be
false or misleading in any material respect;

     (f) Any of the Collateral being subject to, or being threatened with,
attachment, execution, levy, seizure or confiscation in any legal proceeding or
otherwise;

     (g) Any default by Debtor under any other agreement between Debtor and
Secured Party;

     (h) Any dissolution, termination of existence, merger, consolidation,
change in controlling ownership, insolvency, or business failure of Debtor or
any guarantor or other obligor for any of the Indebtedness (collectively
"GUARANTOR"), or if Debtor or any Guarantor is a natural person, any death or
incompetency of Debtor or such Guarantor;

     (i) The appointment of a receiver for all or of any part of the property
of Debtor or any Guarantor, or any assignment for the benefit of creditors by
Debtor or any Guarantor; or

     (j) The filing of a petition by Debtor or any Guarantor under any
bankruptcy, insolvency or similar law, or the filing of any such petition
against Debtor or any Guarantor if the same is not dismissed within thirty (30)
days of such filing.

8. REMEDIES ON DEFAULT.

     (a) Upon the occurrence of an Event of Default under this Agreement, the
Secured Party, at its option, may declare any or all of the Indebtedness,
including without limitation the Notes, to be immediately due and payable,
without demand or notice to Debtor or any Guarantor. The obligations and
liabilities accelerated thereby shall bear interest (both before and after any
judgment) until paid in full at the lower of eighteen percent (18%) per annum or
the maximum rate not prohibited by applicable law.

                                     3 of 5

<PAGE>
     (b)  Upon such declaration of default, Secured party shall have all of the
rights and remedies of a Secured party under the Uniform Commercial Code, and
under any other applicable law. Without limiting the foregoing, Secured Party
shall have the right to (i) notify any account debtor of Debtor or any obligor
on any instrument which constitutes part of the Collateral to make payment to
the Secured Party, (ii) with or without legal process, enter any premises where
the Collateral may be and take possession and/or remove said Collateral from
said premises, (iii) sell the Collateral at public or private sale, in whole or
in part, and have the right to bid and purchase at said sale, and/or (iv) lease
or otherwise dispose of all or part of the Collateral, applying proceeds
therefrom to the obligations then in default. If requested by Secured Party,
Debtor shall promptly assemble the Collateral and make it available to Secured
Party at a place to be designated by Secured party which is reasonably
convenient to both parties. Secured Party may also render any or all of the
Collateral unusable at the Debtor's premises and may dispose of such Collateral
on such premises without liability for rent or costs. Any notice which Secured
Party is required to give to Debtor under the Uniform Commercial Code of the
time and place of any public sale or the time after which any private sale or
other intended disposition of the Collateral is to be made shall be deemed to
constitute reasonable notice if such notice is given to the last known address
of Debtor at least five (5) days prior to such action.

     (c)  Proceeds from any sale or lease or other disposition shall be applied:
first, to all costs of repossession, storage, and disposition including without
limitation attorneys', appraisers', and auctioneers' fees; second, to discharge
the obligations then in default; third, to discharge any other Indebtedness of
Debtor to Secured Party, whether as obligor, endorsor, guarantor, surety or
indemnitor; fourth, to expenses incurred in paying or settling liens and claims
against the Collateral; and lastly, to Debtor, if there exists any surplus.
Debtor shall remain fully liable for any deficiency.

     (d)  In the event this Agreement, any Note or any other Debt Documents are
placed in the hands of an attorney for collection of money due or to become due
or to obtain performance of any provision hereof, Debtor agrees to pay all
reasonable attorneys' fees incurred by Secured Party, and further agrees that
payment of such fees is secured hereunder. Debtor and Secured Party agree that
such fees to the extent not in excess of twenty percent (20%) of subject amount
owing after default (if permitted by law, or such lesser sum as may otherwise be
permitted by law) shall be deemed reasonable.

     (e)  Secured Party's rights and remedies hereunder or otherwise arising are
cumulative and may be exercised singularly or concurrently. Neither the failure
nor any delay on the part of the Secured Party to exercise any right, power or
privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or privilege preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. Secured
Party shall not be deemed to have waived any of its rights hereunder or under
any other agreement, instrument or paper signed by Debtor unless such waiver be
in writing and signed by Secured Party. A waiver on any one occasion shall not
be construed as a bar to or waiver of any right or remedy on any future
occasion.

     (f)  DEBTOR HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR INDIRECTLY,
THIS AGREEMENT, ANY OF THE OTHER DEBT DOCUMENTS, ANY OF THE INDEBTEDNESS SECURED
HEREBY, ANY DEALINGS BETWEEN DEBTOR AND SECURED PARTY RELATING TO THE SUBJECT
MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP
THAT IS BEING ESTABLISHED BETWEEN DEBTOR AND SECURED PARTY. THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE
FILED IN ANY COURT (INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS). THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN
WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT, ANY OTHER DEBT DOCUMENTS, OR TO
ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED
TRANSACTION. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

9.   MISCELLANEOUS

     (a)  This Agreement, any Note and/or any of the other Debt Documents may be
assigned, in whole or in part, by Secured Party without notice to Debtor, and
Debtor hereby waives any defense, counterclaim or cross-complaint by Debtor
against any assignee, agreeing that Secured Party shall be solely responsible
therefor.

     (b)  All notices to be given in connection with this Agreement shall be in
writing, shall be addressed to the parties at their respective addresses set
forth hereinabove (unless and until a different address may be specified in a
written notice to the other party), and shall be deemed given (i) on the date of
receipt if delivered in hand or by facsimile transmission, (ii) on the next
business day after being sent by express mail, and (iii) on the fourth business
day after being sent by regular, registered or certified mail. As used herein,
the term "business day" shall mean and include any day other than Saturdays,
Sundays, or other days on which commercial banks in New York, New York are
required or authorized to be closed.

     (c)  Secured Party may correct patent errors herein and fill in all blanks
herein or in any Collateral Schedule consistent with the agreement of the
parties.

     (d)  Time is of the essence thereof. This Agreement shall be binding,
jointly and severally, upon all parties described as the "Debtor" and their
respective heirs, executors, representatives, successors and assigns, and shall
inure to the benefit of Secured Party, its successors and assigns.

     (e)  This Agreement and its Collateral Schedules constitute the entire
agreement between the parties with respect to the subject matter hereof and
supercede all prior understandings (whether written, verbal or implied) with
respect thereto. This Agreement and its Collateral Schedules shall not be
changed or terminated orally or by course of conduct, but only by a writing
signed by both parties hereto. Section headings contained in this Agreement have
been included for convenience only, and shall not affect the construction or
interpretation hereof.

                                     4 of 5
<PAGE>
     (f)  This Agreement shall continue in full force and effect until all of
the Indebtedness has been indefeasibly paid in full to Secured Party. The
surrender, upon payment or otherwise, of any Note or any of the other documents
evidencing any of the Indebtedness shall not affect the right of Secured Party
to retain the Collateral for such other Indebtedness as may then exist or as it
may be reasonably contemplated will exist in the future. This Agreement shall
automatically be reinstated in the event that Secured Party is ever required to
return or restore the payment of all or any portion of the Indebtedness (all as
though such payment had never been made).

     IN WITNESS WHEREOF, Debtor and Secured Party, intending to be legally
bound hereby, have duly executed this Agreement in one or more counterparts,
each of which shall be deemed to be an original, as of the day and year first
aforesaid.

SECURED PARTY:                            DEBTOR:

ASTEC FINANCIAL SERVICES, INC.            MEADOW VALLEY CONTRACTORS, INC.

By: /s/ Treena M. Hixon                   By: /s/ Kenneth D. Nelson
   ---------------------------               ----------------------------

Title:  Secretary                         Title:  Vice President
      ------------------------                  -------------------------

                                     5 of 5

<PAGE>
                                PROMISSORY NOTE

                               SEPTEMBER 17, 2002
                              (Commencement Date)

             4411 SOUTH 40TH STREET, SUITE D-11, PHOENIX, AZ 85040

FOR VALUE RECEIVED, MEADOW VALLEY CONTRACTORS, INC. ("Maker") promises, jointly
and severally if more than one, to pay to the order of Astec Financial
Services, Inc. or any subsequent holder hereof (each, a "Payee") at its office
located at 1725 Shepherd Road, Chattanooga, TN 37421 or at such other place as
Payee or the holder hereof may designate, the principal sum of Ninety-seven
Thousand Three Hundred Twenty-two Dollars and Forty-three Cents ($97,322.43),
with interest thereon, from the date hereof through and including the dates of
payment, at a fixed interest rate of Six and Three-quarter percent (6.75%) per
annum, to be paid in lawful money of the United States, in thirty-six (36)
consecutive monthly installments of principal and interest of Two Thousand Nine
Hundred Ninety-three Dollars and Ninety-two Cents ($2,993.92) each ("Periodic
Installment") and a final installment which shall be in the amount of the total
outstanding principal and interest. The first Periodic Installment shall be due
and payable on October 15, 2002 and the following Periodic Installments and the
final installment shall be due and payable on the same day of each succeeding
month (each, a "Payment Date"). Such installments have been calculated on the
basis of a 360 day year of twelve 30-day months. Each payment may, at the
option of the Payee, be calculated and applied on an assumption that such
payment would be made on its due date.

The acceptance by Payee of any payment which is less than payment in full of all
amounts due and owing at such time shall not constitute a waiver of Payee's
right to receive payment in full at such time or at any prior or subsequent
time.

The Maker hereby expressly authorizes the Payee to insert the date value is
actually given in the blank space on the face hereof and on all related
documents pertaining hereto.

This Note may be secured by a security agreement, chattel mortgage, pledge
agreements or like instrument (each of which is hereinafter called a "Security
Agreement").

Time is of the essence hereof. If any installment or any other sum due under
this Note or any Security Agreement is not received within ten (10) days after
its due date, the Maker agrees to pay, in addition to the amount of each such
installment or other sum, a late payment charge of five percent (5%) of the
amount of said installment or other sum, but not exceeding any lawful maximum.
If (i) Maker fails to make payment of any amount due hereunder within ten (10)
days after the same becomes due and payable; or (ii) Maker is in default under,
or fails to perform under any term or condition contained in any Security
Agreement, then the entire principal sum remaining unpaid, together with all
accrued interest thereon and any other sum payable under this Note or any
Security Agreement, then the entire principal sum remaining unpaid, together
with all accrued interest thereon and any other sum payable under this Note or
any Security Agreement, at the election of Payee, shall immediately become due
and payable, with interest thereon at the lesser of eighteen percent (18%) per
annum or the highest rate not prohibited by applicable law from the date of
such accelerated maturity until paid (both before and after any judgment).

The Maker may prepay in full, but not in part, its entire indebtedness
hereunder upon payment of an additional sum as a premium equal to the following
percentages of the original principal balance for the indicated period:

Prior to the first anniversary date of this Note: three percent (3%) and zero
percent (0%) thereafter, plus all other sums due hereunder or under any
security Agreement.

It is the intention of the parties hereto to comply with the applicable usury
laws; accordingly, it is agreed that, notwithstanding any provision to the
contrary in this Note or any Security Agreement, in no event shall this Note or
any Security Agreement require the payment or permit the collection of interest
in excess of the maximum amount permitted by applicable law. If any such excess
interest is contracted for, charged or received under this Note or any Security
Agreement, or if all of the principal balance shall be prepaid, so that under
any of such circumstances the amount of interest contracted for, charged or
received under this Note or any Security Agreement on the principal balance
shall exceed the maximum amount of interest permitted by applicable law, then
in such event (a) the provisions of this paragraph shall govern and control,
(b) neither Maker nor any other person or entity now or hereafter liable for
the payment hereof shall be obligated to pay the amount of such interest to the
extent that it is in excess of the maximum amount of interest permitted by
applicable law, (c) any such excess which may have been collected shall be
either applied as a credit against the then unpaid principal balance or
refunded to Maker, at the option of the Payee, and (d) the effective rate of
interest shall be automatically reduced to the maximum lawful contract rate
allowed under applicable law as now or hereafter construed by the courts having
jurisdiction thereof. It is further agreed that without limitation of the
foregoing, all calculations of the rate of interest contracted for, charged or
received under this Note or Security Agreement which are made for the purpose
of determining whether such rate exceeds the maximum lawful contract rate,
shall be made, to the extent permitted by applicable law, by amortizing,
prorating, allocating and spreading in equal parts during the period of the
full stated term of the indebtedness evidenced hereby, all interest at any time
contracted for, charged or received from Maker or otherwise by Payee in
connection with such indebtedness; provided, however, that if any applicable
state law is amended or the law of the United States of America preempts any
applicable state law, so that it becomes lawful for the Payee to receive a
greater interest per annum rate than is presently allowed, the Maker agrees
that, on the effective date of such amendment or preemption, as the case may
be, the lawful maximum hereunder shall be increased to the maximum interest per
annum rate allowed by the amended state law or the law of the United States
of America.

                                     1 of 2

<PAGE>
The Maker and all sureties, endorsers, guarantors or any others (each such
person, other than the Maker, an Obligor") who may at any time become liable for
the payment hereof jointly and severally consent hereby to any and all
extensions of time, renewals, waivers or modifications of, and all substitutions
or releases of, security or of any party primarily or secondarily liable on this
Note or any Security Agreement or any term and provision of either, which may be
made, granted or consented to by Payee, and agree that suit may be brought and
maintained against any one or more of them, at the election of Payee without
joinder of any other as a party thereto, and that Payee shall not be required
first to foreclose, proceed against, or exhaust any security hereof in order to
enforce payment of this Note. The Maker and each Obligor hereby waives
presentment, demand for payment, notice of nonpayment protest, notice of
protest, notice of dishonor, and all other notices in connection herewith, as
well as filing of suit (if permitted by law) and diligence in collecting this
Note or enforcing any of the security thereof, and agrees to pay (if permitted
by law) all expenses incurred in collection, including Payee's actual attorneys'
fees. Maker and each Obligor agrees that fees not in excess of twenty percent
(20%) of the amount then due shall be deemed reasonable.

THE MAKER HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR INDIRECTLY, THIS
NOTE, ANY OF THE RELATED DOCUMENTS, ANY DEALING BETWEEN MAKER AND PAYEE RELATING
TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR
THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN MAKER AND PAYEE. THE SCOPE OF
THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY
BE FILED IN ANY COURT (INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.)
THIS WAIVER IS IRREVOCABLE MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR
IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE, ANY RELATED DOCUMENTS, OR TO ANY
OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED
TRANSACTION. IN THE EVENT OF LITIGATION, THIS NOTE MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

This Note and any Security Agreement constitute the entire agreement of the
Maker and Payee with respect to the subject matter hereof and supercedes all
prior understandings, agreements and representations, express or implied.

No variation or modification of this Note, or any waiver of any of its
provisions or conditions, shall be valid unless in writing and signed by an
authorized representative of Maker and Payee. Any such waiver, consent,
modification or change shall be effective only in the specific instance and for
the specific purpose given.

Any provision in this Note or Security Agreement which is in conflict with any
statute, law or applicable rule shall be deemed omitted, modified or altered to
conform thereto.

                                        MEADOW VALLEY CONTRACTORS, INC.

                                        By: Kenneth D. Nelson
                                        ------------------------------------
                                        (Signature)

                                        Kenneth D. Nelson, Vice Pres.
                                        ------------------------------------
                                        Print Name (and title, if applicable)

                                        88-0171959
                                        ------------------------------------
                                        (Federal tax identification number)

DATED September 17, 2002
     -------------------

                                     2 of 2
<PAGE>
COLLATERAL SCHEDULE NO.  1  DATED  September 17, 2002
                       -----     ----------------------

     THIS COLLATERAL SCHEDULE NO.   1    is annexed to and made a part of that
                                 -------
certain Master Security Agreement dated September 17, 2002 between Astec
                                        ------------------
Financial Services, Inc. as Secured Party and MEADOW VALLEY CONTRACTORS, INC. as
Debtor and describes collateral in which Debtor has granted Secured Party a
security interest in connection with the indebtedness (as defined in the Master
Security Agreement) including without limitation that certain Promissory Note
dated September 17, 2002 in the original principal amount of $97,322.43.
      ------------------
<Table>
<Caption>
Description                                    Serial Number  Location
-----------                                    -------------  --------
<S>                                            <C>            <C>
One (1) 1997 John Deere 744 HMH Wheel Loader   563250         Phoenix, AZ and various job sites

</Table>

TOGETHER WITH ALL PRESENT AND FUTURE ATTACHMENTS, ACCESSORIES, REPLACEMENTS,
PARTS, REPAIRS, ADDITIONS, AND ALL PROCEEDS THEREOF

SECURED PARTY:                          DEBTOR:
ASTEC FINANCIAL SERVICES, INC.          MEADOW VALLEY CONTRACTORS, INC.

BY: Treena M. Hixon                     BY: Kenneth D. Nelson
   ---------------------------             -----------------------------

TITLE: Secretary                        TITLE: VICE PRESIDENT
      ------------------------                --------------------------

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