Document:

<PAGE>

                                                                   Exhibit 10.12

                         MARSH & McLENNAN COMPANIES, INC
                                CANADIAN EMPLOYEE
                  1999 CASH BONUS AWARD VOLUNTARY DEFERRAL PLAN

1.    ELIGIBILITY

All active Canadian employees of Marsh & McLennan Companies, Inc. (the
"Corporation") and its subsidiaries who are designated as eligible for
participation in the MMC Partners Bonus Plan or a Local Bonus Plan, and who are
presently in salary grade 15 (or its equivalent) or above, may, at management's
discretion, be considered for participation in the Marsh & McLennan Companies,
Inc. Canadian Employee 1999 Cash Bonus Award Voluntary Deferral Plan (the "1999
Plan"). Participants in the 1999 Plan may make deferral elections pursuant to
the rules outlined in Section 2 below.

2.    PROGRAM RULES

Except as otherwise provided herein, the 1999 Plan shall be administered by the
Compensation Committee of the Board of Directors of the Corporation (the
"Committee"). The Committee shall have authority in its sole discretion to
interpret the 1999 Plan and make all determinations, including the determination
of bonus awards eligible to be deferred, with respect to the 1999 Plan. All
determinations made by the Committee shall be final and binding. The Committee
may delegate to any other individual or entity the authority to perform any or
all of the functions of the Committee under the 1999 Plan, and references to the
Committee shall be deemed to include any such delegate. Exercise of deferral
elections under the 1999 Plan must be made in accordance with the following
rules.

a.    Rights to an Award and to a Deferral Election
      The right to a deferral election applies only to the annual cash bonus
      scheduled to be awarded in early 2000 in respect of 1999 services, the
      payment of which bonus would normally be made by the end of the first
      quarter of the 2000 calendar year. The granting of such an annual cash
      bonus award is discretionary, and neither delivery of deferral election
      materials nor an election to defer shall affect entitlement to such an
      award. The right to a deferral election does not apply to bonuses
      (including, but not limited to, bonuses pursuant to an employment
      agreement, sign-on or guaranteed bonuses, commissions or non-annual
      incentive payments) that are not awarded as part of an annual cash bonus
      plan.

<PAGE>

b.    Election Forms
      In order to ensure that elections to defer bonus amounts are effective
      under applicable tax laws, please complete and sign the attached election
      form(s), and return them (postmarked, delivered, or faxed) no later than
      December 3, 1999. Form(s) should be returned, and any questions should be
      directed, to:

                                 William Palazzo
                     Manager, HR Systems and Administration
                        Marsh & McLennan Companies, Inc.
                           1166 Avenue of the Americas
                             New York, NY 10036-2774
                           Telephone #: (212) 345-5663
                           Facsimile #: (212) 345-4767

c.    Deferral Options

      (i) Deferral Amount. An eligible employee may elect to defer a portion of
      such employee's bonus award in an amount represented by one of the
      following two choices:

            1.    25%, 50%, 75% or 100% of the employee's cash bonus award,
                  subject to a maximum limit established by the Committee, or

            2.    the lowest of 25%, 50%, 75% or 100% of the employee's cash
                  bonus award which results in a deferral of at least Canadian
                  $10,000.

      If the percentage selected times the amount of the cash bonus award is
      less than Canadian $10,000, no deferral will be made or deducted from the
      award.

      (ii)  Period of Deferral. The payment of a bonus award may be deferred to
            January of 2001 or January 2002, as elected by the participant.

      (iii) 1999 Deferred Bonus Accounts. If a deferral election is made,
      deferrals may be made into one or both of the two accounts which the
      Corporation shall make available to the participating employee. The
      relevant portion of the award deferral will be credited to the relevant
      account on the first business day following the date on which the bonus
      payment would have been made had it not been deferred. The available
      accounts for deferrals of bonuses (the "1999 Deferred Bonus Accounts")
      shall consist of (a) the 1999 Putnam Fund Account and (b) the 1999
      Interest Equivalent Account. Amounts may not be transferred between the
      1999 Interest Equivalent Account and the 1999 Putnam Fund Account.

                                       2
<PAGE>

d.    1999 Putnam Fund Account

      (i) Account Valuation. The 1999 Putnam Fund account is a bookkeeping
      account, the value of which shall be based upon the performance of
      selected funds of the Putnam mutual fund group. The Corporation will
      determine, in its sole discretion, the funds of the Putnam mutual fund
      group into which deferrals may be made. Deferrals among selected funds
      comprising the 1999 Putnam Fund Account must be made in multiples of 5% of
      the total amounts deferred into the 1999 Putnam Fund Account. Deferred
      amounts will be credited to the 1999 Putnam Fund Account with units each
      reflecting one Class A share of the elected fund. Fractional units will
      also be credited to such account, if applicable. The number of such
      credited units will be determined by dividing the value of the bonus award
      deferred into the elected fund by the net asset value of such fund of the
      1999 Putnam Fund Account as of the close of business on the day on which
      such bonus payment would have been made had it not been deferred. All
      dividends paid with respect to an elected fund of a 1999 Putnam Fund
      Account will be deemed to be immediately reinvested in such fund. All
      amounts credited to the 1999 Putnam Fund Account will be converted into
      U.S. dollars at the exchange rate in effect as of the applicable date.

      (ii) Fund Transfers. Amounts deferred into a 1999 Putnam Fund Account may
      be transferred between eligible funds pursuant to an election which may be
      made daily. Such election shall be effective, and the associated transfer
      shall be based upon the net asset values of the applicable funds of the
      1999 Putnam Fund Account, as of the close of business on the business day
      the election is received by facsimile or mail, if received by 2:30 p.m.
      Eastern Time of that day. If received later than 2:30 p.m., the election
      shall be effective as of the close of business on the following business
      day.

e.    1999 Interest Equivalent Account
      An "Interest Equivalent" shall be calculated and added to each 1999
      Interest Equivalent Account as of the last day of each calendar quarter
      based on the average principal balance in said account during said
      calendar quarter and on the average of the 30-day Banker's Acceptance rate
      of interest as published in the Toronto Globe & Mail during such calendar
      quarter.

f.    Statement of Account
      The Corporation shall provide periodically to each participant (but not
      less frequently than once per calendar quarter) a statement setting forth
      the balance to the credit of such participant in such participant's 1999
      Deferred Bonus Accounts.

g.    Irrevocability and Acceleration
      All deferral elections made under the 1999 Plan are irrevocable. However,
      the Committee may, in its sole discretion, and upon finding that a
      participant has demonstrated severe financial hardship, direct the
      acceleration of the payment of any or all deferred amounts then credited
      to the participant's 1999 Deferred Bonus Accounts.

                                       3
<PAGE>

h.    Payment of Deferred Amounts

      (i) Deferral Year Distributions. If the participant remains employed until
      the deferral year elected, all amounts in the participant's 1999 Deferred
      Bonus Accounts will be paid in a single distribution, less applicable
      withholding taxes, in January of the deferral year elected.

      (ii) Termination of Employment Prior to End of Deferral Period. In the
      event of termination of employment for any reason prior to the completion
      of the elected deferral period, all amounts then in the participant's 1999
      Deferred Bonus Accounts will be paid to the participant (or the
      participant's designated beneficiary in the event of death) in a single
      distribution, less applicable withholding taxes, as soon as practicable
      after the end of the quarter in which the termination occurred; provided,
      however, that upon a participant's retirement or termination for
      disability prior to completion of the elected deferral period, all such
      amounts shall be paid in a single distribution during January of the year
      following such retirement or termination for disability, as the case may
      be.

      (iii) Change in Control. Notwithstanding any other provision in the 1999
      Plan to the contrary, in the event of a "change in control" of the
      Corporation, as defined in the Corporation's 1997 Employee Incentive and
      Stock Award Plan, all amounts credited to a participant's 1999 Deferred
      Bonus Accounts as of the effective date of such change in control will be
      distributed within five days of such change in control as a single
      distribution, less applicable withholding taxes.

      (iv) Form of Payment. All payments under the 1999 Plan shall be made in
      cash in Canadian dollars converted, if necessary, at the exchange rate in
      effect as of the applicable date.

i.    Tax Treatment
      Under present Canadian tax law, all amounts of an employee's bonus
      deferred for a period not exceeding three years from the year in which the
      related service was rendered, as well as any Interest Equivalent thereon,
      will be exempt from Canadian taxation during the period of deferral. When
      any part of the 1999 Deferred Bonus Accounts is actually paid to a
      participant, taxable employment income will be incurred.

                                       4
<PAGE>

j.    Beneficiary Designation

      Each participant shall have the right, at any time, to designate any
      person or persons as beneficiary or beneficiaries (both principal and
      contingent) to whom payment shall be made under the 1999 Plan and every
      other Cash Bonus Award Voluntary Deferral Plan for which the participant
      has or will have an account balance (collectively, including the 1999
      Plan, the "Plans"), in the event of death prior to complete distribution
      to the participant of the amounts due under the Plans. Any beneficiary
      designation may be changed by a participant by the filing of such change
      in writing on a form prescribed by the Corporation. The filing of a new
      beneficiary designation form will cancel all beneficiary designations
      previously filed and apply to all deferrals in the account. A beneficiary
      designation form is attached for use by a participant who either does not
      have such form on file or wishes to make a change in the beneficiary
      designation. Upon completion of the attached form, it should be forwarded
      to William Palazzo, at the address set forth in Section 2.b. above. If a
      participant does not have a beneficiary designation in effect, or if all
      designated beneficiaries predecease the participant, then any amounts
      payable to the beneficiary shall be paid to the participant's estate. The
      payment to the designated beneficiary or to the participant's estate shall
      completely discharge the Corporation's obligations under the Plans.

3.    AMENDMENT AND TERMINATION OF THE 1999 PLAN

The Committee may, at its discretion and at any time, amend the 1999 Plan in
whole or in part. The Committee may also terminate the 1999 Plan in its entirety
at any time and, upon any such termination, each participant shall be paid in a
single distribution, or over such period of time as determined by the Committee
(provided such period of time falls within the restriction set forth in Section
2.c. (ii) above), the then remaining balance in such participant's 1999 Deferred
Bonus Accounts.

4.    MISCELLANEOUS

A participant under the 1999 Plan is merely a general (not secured) creditor,
and nothing contained in the 1999 Plan shall create a trust of any kind or a
fiduciary relationship between the Corporation and the participant or the
participant's estate. Nothing contained herein shall be construed as conferring
upon the participant the right to continued employment with the Corporation or
its subsidiaries, or to a cash bonus award. Except as otherwise provided by
applicable law, benefits payable under the 1999 Plan may not be assigned or
hypothecated, and no such benefits shall be subject to legal process or
attachment for the payment of any claim of any person entitled to receive the
same. The adoption of the 1999 Plan and any elections made pursuant to the 1999
Plan are subject to approval of the 1999 Plan by the Committee.

                                       5<PAGE>

Date: December 31, 1999                                     Note #: 0237945-9007

                                 MODIFICATION OF NOTE

It is agreed by the undersigned maker, for additional and valuable
consideration, that maker's note of, Nortech Systems Inc. in the face amount of
Two Hundred Sixty-Seven Thousand Seven Hundred and Seventy Dollars and 31/100,
($267,770.31) dated December 1, 1998, to which this modification is attached, is
hereby modified as follows:

__X__ By alteration of the maturity date to January 1, 2001.

_____ By change of interest rate to __________ per annum, said modified rate to
be effective on and after date hereof.

_____ By change of payment schedule to: ________________________________________

_____ By substitution, exchange or release of collateral as follows:
      __________________________________________________________________________

Except as above modified, the note is in all respects ratified and confirmed.
Maker agrees that the correct balance is $190,535.09 with interest accruing on
same from and after December 31, 1999.

                                        Nortech Systems Inc.

                                        /s/ Garry Anderly
                                        ------------------------------------
                                        Garry Anderly
                                        Vice President of Finance and
                                        Administration

Consented to by Norwest Bank Minnesota South, National Association

By: /s/ Barbara A. Smith
   ---------------------

Its: Senior Vice President

<PAGE>

                    SECOND AMENDMENT OF $1,500,000 PROMISSORY NOTE

     This SECOND AMENDMENT OF $1,500,000 PROMISSORY NOTE made and entered into
effective this 31st day of December, 1999, by and between Nortech Systems
Incorporated and Nortech Medical Services, Inc. ("BORROWER") and Norwest Bank
Minnesota South, N.A., formerly known as Norwest Bank North Country, N.A., a
national banking association ("LENDER").

                                      RECITALS:

     1.   Borrower executed and delivered that certain Variable Rate Commercial
Promissory Note dated December 31, 1997 in the original principal amount of
$1,500,000.00, payable to the order of Lender (the "$1,500,000 Note").

     2.   The $1,500,000 Note was amended pursuant to an Amendment of $1,500,000
Promissory Note dated December 30, 1998 by and between Borrower and Lender.

     3.   The parties desire to enter into this modification agreement to amend
and modify the Interest Rate and Maturity Date under the $1,500,000 Note.

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

     1.   The Interest Rate under the $1,500,000 Note shall be and hereby is
amended to be calculated at a variable rate equal to zero percent (0%) per annum
over the Index Rate.

     2.   The Index Rate under the $1,500,000 Note shall be and hereby is
amended to be the prime rate as quoted in the WALL STREET JOURNAL and in effect
as of the date of rate change.

     3.   The Maturity Date under the $1,500,000 Note shall be and hereby is
amended to be the date of January 1, 2001, and all outstanding principal and
accrued interest shall be due and payable in full on such date.

<PAGE>

Dated: December 31, 1999      NORWEST BANK MINNESOTA SOUTH, N.A.

                                 By:  /s/ Barbara A. Smith
                                      -------------------------------------
                                    Its Sr. Vice President
                                        --------------------------------

Dated: December 31, 1999      NORTECH SYSTEMS INCORPORATED

                                 By:  /s/ Garry Anderly
                                      -------------------------------------
                                    Its Sr. V.P. Corporate Financial [ILLEGIBLE]
                                        --------------------------------

Dated: December 31, 1999      NORTECH MEDICAL SERVICES, INC.

                                 By:  /s/ Garry Anderly
                                      -------------------------------------
                                    Its Sr. V.P. Corporate Financial [ILLEGIBLE]
                                        --------------------------------

                                       CONSENT

     The undersigned being Guarantor of the above-referenced $1,500,000 Note
pursuant to that certain Commercial Continuing Guaranty (Limited) dated December
31, 1997 in favor of Norwest Bank Minnesota South, N.A., formerly known as
Norwest Bank North Country, N.A., as amended by an Amendment of Guaranty dated
December 30, 1998 by Norwest Bank Minnesota south, N.A., does hereby consent to
the foregoing Second Amendment of $1,500,000 Note.

                                   /s/ Myron Kunin
                                   -------------------------
                                   Myron Kunin

                                       CONSENT

     The undersigned being Guarantor of the above-referenced $1,500,000 Note
pursuant to that certain Commercial Continuing Guaranty (Limited) dated December
31, 1997 in favor of Norwest Bank Minnesota South, N.A., formerly known as
Norwest Bank North Country, N.A., does hereby consent to the foregoing Second
Amendment of $1,500,000 Note.

                                   Curtis Squire, Inc.

                              By:  /s/ Myron Kunin
                                   -------------------------
                                   Myron Kunin, Chairman

<PAGE>

                    SECOND AMENDMENT OF $5,000,000 PROMISSORY NOTE

     This SECOND AMENDMENT OF $5,000,000 PROMISSORY NOTE made and entered into
effective this 31st day of December, 1999, by and between Nortech Systems
Incorporated and Nortech Medical Services, Inc. ("BORROWER") and Norwest Bank
Minnesota South, N.A., formerly known as Norwest Bank North Country, N.A., a
national banking association ("LENDER").

                                      RECITALS:

     1.   Borrower executed and delivered that certain Commercial/Agricultural
Revolving Note Variable Rate dated December 31, 1997 in the original principal
amount of $3,000,000.00 (the "$5,000,000 Note").

     2.   The $5,000,000 Note was amended pursuant to an Amendment of $3,000,000
Promissory Note dated December 30, 1998 by and between Borrower and Lender to,
among other things, increase the original principal amount to $5,000,000.00.

     3.   The parties desire to enter into this modification agreement to amend
and modify the Interest Rate and Maturity Date under the $5,000,000 Note.

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

     1.   The Interest Rate under the $5,000,000 Note shall be and hereby is
amended to be calculated at a variable rate equal to zero percent (0%) per annum
over the Index Rate.

     2.   The Index Rate under the $5,000,000 Note shall be and hereby is
amended to be the prime rate as quoted in the WALL STREET JOURNAL and in effect
as of the date of rate change.

     3.   The Maturity Date under the $5,000,000 Note shall be and hereby is
amended to be the date of January 1, 2001, and all outstanding principal and
accrued interest shall be due and payable in full on such date.

<PAGE>

Dated: December 31, 1999           NORWEST BANK MINNESOTA SOUTH, N.A.

                                        By:  /s/ Barbara A. Smith
                                           -------------------------------------
                                             Its Sr. Vice President
                                                --------------------------------

Dated: December 31, 1999           NORTECH SYSTEMS INCORPORATED

                                        By:  /s/ Garry Anderly
                                           -------------------------------------
                                             Its Sr. V.P. Corporate [ILLEGIBLE]
                                                --------------------------------

Dated: December 31, 1999           NORTECH MEDICAL SERVICES, INC.

                                        By:  /s/ Garry Anderly
                                           -------------------------------------
                                             Its Sr. V.P. Corporate [ILLEGIBLE]
                                                --------------------------------

<PAGE>

                          SIXTH AMENDMENT TO LOAN AGREEMENT

     This Sixth Amendment is made and entered into as of December 31, 1999, by
and among Norwest Bank Minnesota South, N.A., a national banking association,
formerly known as Norwest Bank North Country, N.A. and as Northern National Bank
("Lender"), Nortech Systems Incorporated, a Minnesota corporation ("Systems"),
and Nortech Medical Services, Inc., a Minnesota corporation ("Medical"; which
together with Systems shall hereinafter be referred to collectively as
"Borrower").

                                       RECITALS

     A.   Borrower and Lender are parties to a Commercial Loan Agreement dated
December 29, 1995 (the "Original Loan Agreement"), in connection with which
Lender extended certain financial accommodations to Borrower.

     B.   The Original Loan Agreement was amended pursuant to an Amendment to
Loan Agreement dated November 4, 1996, by and between Systems and Lender (the
"First Amendment"), a Second Amendment to Loan Agreement, dated as of December
31, 1996, by and among Systems, Medical and Lender (the "Second Amendment"), a
Third Amendment to Loan Agreement, dated as of December 31, 1997, by and among
Systems, Medical and Lender (the "Third Amendment"), a Fourth Amendment to Loan
Agreement dated as of September 29, 1998, by and among Systems Medical and
Lender (the "Fourth Amendment"), and a Fifth Amendment to Loan Agreement dated
as of December 30, 1998 (the "Fifth Amendment") which together with the Original
Loan Agreement, the First Amendment, the Second Amendment, the Third Amendment,
and the Fourth Amendment shall hereinafter be referred to collectively as the
"Loan Agreement").

     C.   By this Sixth Amendment, Borrower and Lender wish to amend certain
terms of the Loan Agreement.

     NOW, THEREFORE, in consideration of the above recitals and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Borrower, Lender, and Systems agree as follows:

<PAGE>

I.   Schedule A to the Loan Agreement is amended to read as follows:

<TABLE>
<CAPTION>

TYPE        INTEREST   PRINCIPAL   FUNDING/    MATURITY     CUSTOMER  LOAN
OF          RATE       AMOUNT/     AGREEMENT   DATE         NUMBER    NUMBER
LOAN                   CREDIT      DATE
                       LIMIT
<S>        <C>         <C>         <C>         <C>          <C>       <C>
Revolving  Variable    $5,000,000  12/31/97    01/01/01     237945
Term       Variable    $510,000    12/29/95    01/01/01     237945    9003
Term       Variable    $640,000    12/29/95    01/01/01     237945    9004
Term       Variable    $500,000    12/31/97    01/01/01     237945    9009
Term       Variable    $1,500,000  12/31/97    01/01/01     237945
Term       Fixed       $300,000    09/24/93    04/30/00     237945    9008
Draw       Variable    $400,000    11/25/96    01/01/01     237945    9007
Term       Variable    $125,000    03/18/93    04/01/00     237945    9002

</TABLE>

     2.   Paragraph I.5 of the Financial Covenants Schedule of the Loan
          Agreement is amended to read as follows:

          I.1 "CURRENT RATIO. A ratio of total current assets to total
          liabilities of not less than 1.3:1.0"

          "DEBT TO WORTH. A ratio of total liabilities to tangible net worth of
          not greater than 2.75:1.0"

     3.   Paragraph III of the Financial Covenants Schedule of the Loan
          Agreement shall be amended to read as follows:

          "CASH FLOW COVERAGE; Borrower shall maintain a minimum cash-flow-to-
          debt service coverage ratio calculated including the cash effect of
          discontinued operations of 1.0:1.0. (Effect of discontinued operations
          shall be included only as long as such discontinued operation
          continues to be owned by the Borrower.) The ratio shall be calculated
          as net income after taxes + interest expense +
          depreciation/amortization expense + non-cash tax expense - dividends
          divided by all principal + interest payable during the time period
          being measured. In addition, the Borrower shall maintain a minimum
          cash-flow-to-debt service coverage ratio as calculated above, but
          excluding the effect of discontinued operations of 1.5:1.0."

<PAGE>

     4.   Schedule B of the Loan Agreement is amended to add the following Loan
          Documents:

          "Sixth Amendment to Loan Agreement
          Second Amendment of $5,000,000 Promissory Note
          Second Amendment of $1,500,000 Promissory Note"

     5.   All the terms, covenants and conditions of the Loan Agreement remain
          in full force and effect except as specifically modified herein.

     IN WITNESS WHEREOF, the parties have executed this Sixth Amendment to Loan
Agreement as of the day and year first above written.

                                   NORWEST BANK MINNESOTA SOUTH,
                                   N.A., A NATIONAL BANKING ASSOCIATION

                                   By: /s/ Barbara A. Smith
                                        Its: Sr. Vice President

                                   NORTECH SYSTEMS INCORPORATED,
                                   A MINNESOTA CORPORATION

                                   By: /s/ Garry Anderly
                                        Its: Sr. V.P. Corporate [ILLEGIBLE]

                                   NORTECH MEDICAL SERVICES, INC.
                                   A MINNESOTA CORPORATION

                                   By: /s/ Garry Anderly
                                        Its: Sr. V.P. Corporate [ILLEGIBLE]

<PAGE>

[LOGO]                                                           COMMERCIAL NOTE
--------------------------------------------------------------------------------
Borrower's Name                                        Date
Nortech Systems Incorporated                           12/31/1999
--------------------------------------------------------------------------------
PROMISE TO PAY: FOR VALUE RECEIVED, THE UNDERSIGNED BORROWER (IF MORE THAN ONE,
JOINTLY AND SEVERALLY) PROMISE(S) TO PAY TO THE ORDER OF Norwest Bank Minnesota
South National Association (THE "BANK"), AT 201 3rd Street N.W. Bemidji, MN
56601 OR AT ANY OTHER PLACE DESIGNATED OR ANY TIME BY THE HOLDER OF THIS
PROMISSORY NOTE (THE "NOTE") IN LAWFUL MONEY OF THE UNITED STATES OF AMERICA,
THE PRINCIPAL SUM OF Five Hundred Thousand and 0/100 DOLLARS ($500,000.00),
TOGETHER WITH INTEREST ON THE UNPAID PRINCIPAL AMOUNT IN ACCORDANCE WITH THE
REPAYMENT TERMS SET FORTH BELOW. INTEREST: INTEREST ON THIS NOTE, CALCULATED ON
THE BASIS OF ACTUAL DAYS ELAPSED IN A 360 DAY YEAR, WILL ACCRUE AS FOLLOWS
(CHOOSE ONE OF THE FOLLOWING):

/X/ ON THE UNPAID PRINCIPAL AMOUNT OF THIS NOTE AT THE NOTE RATE.
/ / ON THE UNPAID PRINCIPAL AMOUNT OF THIS NOTE AT THE _______ OF THE NOTE RATES
    SELECTED AT ANY TIME.
/ / ON THE UNPAID PRINCIPAL AMOUNT OF THIS NOTE:
     UP TO AND INCLUDING $________ AT THE NOTE RATE.
     FROM $__________ TO AND INCLUDING $__________ AT THE NOTE RATE __________%.
     FROM $__________ TO AND INCLUDING $__________ AT THE NOTE RATE __________%.
     IN EXCESS OF $____________ AT THE NOTE RATE __________%.
/ / IF THE UNPAID PRINCIPAL AMOUNT OF THIS NOTE:
     IS NOT IN EXCESS OF $_________ AT THE NOTE RATE.
     IS EQUAL TO OR GREATER THAN $________ BUT NOT IN EXCESS OF $________ AT
     THE NOTE RATE _________%.
     IS EQUAL TO OR GREATER THAN $________ BUT NOT IN EXCESS OF $________ AT
     THE NOTE RATE _________%.
     IS EQUAL TO OR GREATER THAN $________ AT THE NOTE RATE _________%.
NOTE RATE: THE NOTE RATE UNDER THIS NOTE SHALL BE (CHOOSE THE APPLICABLE NOTE
RATE(S)):
/ / AN ANNUAL RATE OF _____% (THE "NOTE RATE"),
/X/ AN ANNUAL RATE /X/ EQUAL TO THE INDEX RATE, OR / / ______%_____ THE INDEX
    RATE, OR / / _____% OF THE INDEX RATE, /X/ FROM TIME TO TIME IN EFFECT, EACH
    CHANGE IN THE INTEREST RATE TO BECOME EFFECTIVE ON THE DAY THE CORRESPONDING
    CHANGE IN THE INDEX RATE BECOMES EFFECTIVE, OR
    / / _______________________________________________________________________.
    WITH AN INITIAL INTEREST RATE EQUAL TO 8.500% (THE "NOTE RATE").

/ / AN ANNUAL RATE AS SET FORTH IN THE INTEREST RATE ADDENDUM ATTACHED TO
    THIS NOTE (THE "NOTE RATE").
PROVIDED THAT IF THIS NOTE HAS A VARIABLE RATE OF INTEREST. / / THE NOTE RATE
SHALL AT NO TIME BE LESS THAN AN ANNUAL RATE OF _____%, AND
/ / SHALL AT NO TIME EXCEED AN ANNUAL RATE OF _____%. IN NO EVENT SHALL THE RATE
OF INTEREST APPLICABLE TO THIS NOTE UNDER ANY TERM OR CONDITION EXCEED THE
MAXIMUM RATE PERMITTED BY LAW.
/X/ "INDEX RATE" MEANS / / THE "BASE RATE" WHICH IS THE RATE OF INTEREST
ESTABLISHED BY
________________________________________ FROM TIME TO TIME AS ITS "BASE" OR
"PRIME" RATE, OR
 /X/ THE "WALL STREET RATE" WHICH IS THE HIGHEST "PRIME" RATE OF INTEREST
REPORTED IN THE WALL STREET JOURNAL "MONEY RATES" TABLE, OR
 / / THE _______________________________________________________________________
         _______________________________________________________________________
REPAYMENT TERMS: UNLESS PAYABLE SOONER AS A RESULT OF ITS ACCELERATION, THE
BORROWER PROMISES TO PAY THIS NOTE AS FOLLOWS (CHOOSE THE APPLICABLE REPAYMENT
TERM):

 PRINCIPAL. PRINCIPAL SHALL BE PAYABLE:
 / / ON THE EARLIER OF DEMAND OR ____________ (THE "DUE DATE").
 /X/ ON 01/01/2001 (THE "DUE DATE").
 INTEREST. INTEREST SHALL BE PAYABLE;
 / / ON THE DUE DATE.
 /X/ monthly, COMMENCING 01/31/2000 AND ON THE last DAY OF EACH SUCCEEDING month
 AND ON THE DUE DATE.
     UNLESS APPLICABLE LAW REQUIRES THE BANK TO APPLY AMOUNTS IN SOME OTHER
     MANNER, ALL PAYMENTS SHALL BE APPLIED FIRST IN PAYMENT OF BILLED INTEREST,
     THEN TO THE PAYMENT OF ANY OUTSTANDING LATE FEES, AND THE BALANCE THEREOF
     SHALL BE APPLIED IN REDUCTION OF THE PRINCIPAL AMOUNT OUTSTANDING, PROVIDED
     HOWEVER, THAT IF AN EVENT OF DEFAULT HAS OCCURRED THEN ALL PAYMENTS WILL BE
     APPLIED AS DIRECTED BY THE BANK, IN ITS SOLE DISCRETION.
 "DUE DATE" MEANS THE MATURITY DATE OF THIS NOTE WHETHER IT IS THE STATED
 MATURITY DATE OR AN EARLIER DATE BY REASON OF ACCELERATION OR DEMAND.

/X/ REVOLVING LINE. THE BORROWER MAY BORROW, PREPAY, AND REBORROW UNDER THIS
    NOTE UNTIL THE DUE DATE WITHIN THE LIMITS OF THIS NOTE, AND SUBJECT TO THE
    TERMS AND CONDITIONS IN ANY OTHER AGREEMENTS BETWEEN THE BORROWER AND THE
    BANK.
/X/ CONDITIONAL LINE. ANY ADVANCES MADE UNDER THIS NOTE SHALL BE AT THE SOLE
    DISCRETION OF THE BANK AND THE BANK IS NOT OBLIGATED TO MAKE ANY ADVANCE
    UNDER THIS NOTE.
/X/ LATE FEE: EACH TIME THAT A SCHEDULED PAYMENT IS NOT PAID WHEN DUE OR WITHIN
    10 DAYS AFTERWARDS, THE BORROWER AGREES TO PAY A LATE FEE EQUAL TO /X/
    $50.00, OR / / ______% OF THE FULL AMOUNT OF THE LATE PAYMENT, OR / / THE
    _____ OF $__________ OR _______% OF THE FULL AMOUNT OF THE LATE PAYMENT.
    ACCEPTANCE BY THE BANK OF ANY LATE FEE SHALL NOT CONSTITUTE A WAIVER OF ANY
    DEFAULT HEREUNDER.
/ / OTHER FEES: / / THE BORROWER SHALL PAY TO THE BANK / / A NONREFUNDABLE,
    ONE-TIME ORIGINATION FEE EQUAL TO $__________ AND/OR
    / / A NON-REFUNDABLE, ONE-TIME ____________ EQUAL TO $______________ AT THE
    TIME THIS NOTE IS SIGNED.
    / / THE BORROWER SHALL PAY TO THE BANK A(N) ____________ EQUAL TO / /
    $_____________, OR / / ________% PER ANNUM (CALCULATED ON THE BASIS OF
    ACTUAL DAYS ELAPSED IN A ___ DAY YEAR) OF THE / / AVERAGE DAILY UNUSED
    PORTION, / / MAXIMUM PRINCIPAL AMOUNT OF THE LINE EVIDENCED BY THIS NOTE,
    PAYABLE ___________, IN _________, COMMENCING _______________ AND ON THE
    _________ DAY OF EACH SUCCEEDING ____________ AND ON THE DUE DATE.

/ / ADDITIONAL INTEREST BEFORE AND AFTER THE DUE DATE: EACH TIME THAT A
SCHEDULED PAYMENT IS NOT PAID WHEN DUE OR WITHIN ___ DAYS AFTERWARD,
    ADDITIONAL INTEREST WILL BEGIN ACCRUING ON THE NEXT CALENDAR DAY ON THE
    ENTIRE UNPAID PRINCIPAL AMOUNT OF THIS NOTE AT AN ANNUAL RATE OF _______% IN
    EXCESS OF THE NOTE RATE ("ADDITIONAL INTEREST RATE"). ACCEPTANCE BY THE BANK
    OF ADDITIONAL INTEREST SHALL NOT CONSTITUTE A WAIVER OF ANY DEFAULT
    HEREUNDER. THE UNPAID PRINCIPAL AND INTEREST DUE ON THIS NOTE AFTER THE DUE
    DATE SHALL BEAR INTEREST UNTIL PAID AT THE ADDITIONAL INTEREST RATE (EXCEPT
    IN NORTH DAKOTA.)
PREPAYMENT: THE BORROWER MAY AT ANY TIME PREPAY THIS NOTE, IN WHOLE OR IN PART
AND ANY PREPAYMENTS SHALL BE APPLIED AGAINST OUTSTANDING PRINCIPAL ONLY AFTER
ALL BILLED INTEREST AND ANY OUTSTANDING LATE FEES HAVE BEEN PAID IN FULL.
SECURITY: IN ADDITION TO ANY OTHER COLLATERAL INTEREST GIVEN TO THE BANK
PREVIOUSLY, NOW, OR IN THE FUTURE, BY SEPARATE AGREEMENTS NOT REFERENCED HEREIN,
WHICH STATES IT IS GIVEN TO SECURE THIS NOTE OR ALL INDEBTEDNESS OF THE BORROWER
TO THE BANK, THIS NOTE IS SECURED WITH A(N)
Security Agreement DATED 12/01/1998.
DEFAULT AND ACCELERATION: BORROWER WILL BE IN DEFAULT UNDER THIS NOTE IF:
(I) THE BORROWER FAILS TO PAY WHEN DUE ANY PRINCIPAL, INTEREST OR OTHER AMOUNTS
DUE UNDER THIS NOTE, OR (ii) THE BORROWER FAILS TO PERFORM OR OBSERVE ANY TERM
OR COVENANT OF THIS NOTE OR ANY RELATED DOCUMENTS OR PERFORM UNDER ANY OTHER
AGREEMENT WITH THE BANK, OR (iii) THE BORROWER OR ANY SUBSIDIARY FAILS TO
PERFORM OR OBSERVE ANY AGREEMENT WITH ANY OTHER CREDITOR THAT RELATES TO
INDEBTEDNESS OR CONTINGENT LIABILITIES WHICH WOULD ALLOW THE MATURITY OF SUCH
INDEBTEDNESS OR OBLIGATION TO BE ACCELERATED, OR (iv) THE BORROWER CHANGES ITS
LEGAL FORM OF ORGANIZATION, OR (v) ANY REPRESENTATION OR WARRANTY MADE BY THE
BORROWER IN APPLYING FOR THE LOAN EVIDENCED BY THIS NOTE IS UNTRUE IN ANY
MATERIAL RESPECT, OR (vi) A GARNISHMENT, LEVY OR WRIT OF ATTACHMENT, OR ANY
LOCAL, STATE OR FEDERAL NOTICE OF TAX LIEN OR LEVY IS SERVED UPON THE BANK FOR
THE ATTACHMENT OF PROPERTY OF THE BORROWER OR ANY SUBSIDIARY THAT IS IN THE
BANK'S POSSESSION OR FOR INDEBTEDNESS OWED

SIGNATURES
--------------------------------------------------------------------------------
BORROWER'S NAME
Nortech Systems Incorporated

--------------------------------------------------------------------------------
SIGNATURE                               SIGNATURE
X /s/ Garry Anderly                     X
--------------------------------------------------------------------------------
NAME AND TITLE (IF APPLICABLE)          NAME AND TITLE (IF APPLICABLE)
Garry Anderly, Vice President of
Finance and Administration
--------------------------------------------------------------------------------
SIGNATURE                               SIGNATURE
X                                       X
--------------------------------------------------------------------------------
NAME AND TITLE (IF APPLICABLE)          NAME AND TITLE (IF APPLICABLE)

--------------------------------------------------------------------------------
STREET ADDRESS                          CITY, STATE, ZIP CODE
4050 Norris Court                       Bemidji, MN 56601-8712
--------------------------------------------------------------------------------
LOAN PURPOSE: /X/ Business, AND/OR / / THIS NOTE IS GIVEN AS REPLACEMENT FOR,
AND NOT IN SATISFACTION OF PROMISSORY NOTE GIVEN BY THE BORROWER TO THE BANK
DATED ___________________.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]