Document:

[Norwest Logo]    Norwest Bank Minnesota,                       Restated
                  National Association                          Credit Agreement
================= ==============================================================

THIS RESTATED CREDIT AGREEMENT (the "Agreement") dated as of December 30,
1999 (the "Effective Date") is between Norwest Bank Minnesota, National
Association (the "Bank") and Everest Medical Corporation, a Minnesota
corporation (the "Borrower").

BACKGROUND

The Borrower and the Bank have entered into a Credit Agreement dated as of
February 26, 1999 whereby the Bank has extended to the Borrower a line of
credit in the amount of One Million and 00/100 Dollars ($1,000,000.00) (the
"Line") to be used for financing accounts.

The Borrower has asked the Bank to extend the Line for an additional period.

The Bank is agreeable to meeting the Borrower's request, provided that the
Borrower agrees to the terms and conditions of this Restated Credit Agreement,
which shall replace the prior Credit Agreement.

The Revolving Note (as defined below), this Agreement, and all "Security
Documents" described in Exhibit B, and any modifications, amendments or
replacements to such promissory notes or agreements shall be referred to
collectively as the "Documents."

In consideration of the above premises, the Bank and the Borrower agree as
follows:

1.       LINE OF CREDIT

1.1      Line of Credit Amount. During the Line Availability Period defined
         below, the Bank agrees to provide a revolving line of credit (the
         "Line") to the Borrower. Outstanding amounts under the Line shall not,
         at any one time, exceed the lesser of the Borrowing Base or One Million
         and 00/Dollars ($1,000,000.00).
         The Borrowing Base is defined in Exhibit A-1 to this Agreement.

1.2      Line Availability Period. The "Line Availability Period" shall mean the
         period of time from the Effective Date or the date on which all
         conditions precedent described in this Agreement have been met,
         whichever is later, to the Line Expiration Date of December 31, 2000.

1.3      The Revolving Note. The Borrower's obligation to repay advances under
         the Line shall be evidenced by a promissory note (the "Revolving Note")
         dated as of the Effective Date, and in form and content acceptable to
         the Bank. Reference is made to the Revolving Note for interest rate and
         repayment terms.

1.4      Mandatory Prepayment. If at any time the principal outstanding under
         the Revolving Note exceeds the lesser of the Borrowing Base or
         $1,000,000.00, the Borrower must immediately prepay the Revolving Note
         in an amount sufficient to eliminate the excess.

2.       FEES AND EXPENSES

2.1      Audit Expense. The Borrower shall reimburse the Bank for the cost of
         periodic audits of all collateral granted to the Bank by the Borrower,
         which may be conducted at such intervals as the Bank may reasonable
         require, but limited to a maximum reimbursement of $1,500.00 each
         calendar year.

<PAGE>

2.2      Documentation Expense. The Borrower agrees to reimburse the Bank for
         its reasonable expenses relating to the preparation of the Documents
         and any possible future amendments to the Documents, which
         reimbursement may include, but shall not be limited to, reimbursement
         of reasonable attorneys' fees, including the allocated costs of the
         Bank's in-house counsel, which shall not be in excess of $500.00.
         Despite such reimbursement the Borrower acknowledges that the Bank's
         counsel is engaged solely to represent the Bank and does not represent
         the Borrower.

2.3      Collection Expense. In the event the Borrower fails to comply with any
         covenant or condition of this Agreement or the Documents, or fails to
         pay the Bank any amounts due under this Agreement or under the
         Documents, the Borrower shall pay all costs of workout and collection,
         including reasonable attorneys' fees and legal expenses incurred by the
         Bank.

2.4      Miscellaneous Expense. The Borrower agrees to reimburse the Bank for
         its expenses incurred in perfecting any security interest in property
         granted by the Borrower to the Bank.

3.       ADVANCES AND PAYMENTS

3.1      Requests for Advances. Any line advance requested under the terms of
         this Agreement shall be requested by telephone or in a writing
         delivered to the Bank (or transmitted via facsimile) by any person
         reasonably believed by the Bank to be authorized by the Borrower to do
         so. The Bank will not consider any such request following an event
         which is, or with notice or the lapse of time would be, an event of
         default under this Agreement. Proceeds shall be deposited into the
         Borrower's account at the Bank or disbursed in such other manner as the
         parties may agree.

3.2      Payments. All principal, interest and fees due under the Documents
         shall be paid by the direct debit of available funds deposited in the
         Borrower's account with the Bank. The Bank shall debit the account on
         the dates the payments become due. If a due date does not fall on a day
         on which the Bank is open for substantially all of its business (a
         "Banking Day"), the Bank shall debit the account on the next Banking
         Day and interest shall continue to accrue during the extended period.
         If there are insufficient funds in the account on the day the Bank
         enters any debit authorized by this Agreement, the debit will be
         reversed and the payment shall be due immediately without necessity of
         demand by direct payment of immediately available funds.

4.       SECURITY

         During the time period that credit is available under this Agreement,
         and afterward until all amounts due under the Documents are paid in
         full, unless the Bank shall otherwise agree in writing, all amounts due
         under this Agreement and the Documents shall be secured at all times as
         provided in Exhibit B. The Borrower also hereby grants the Bank a
         security interest (independent of the Bank's right of set-off) in its
         deposit accounts at the Bank and in any other debt obligations of the
         Bank to the Borrower.

5.       CONDITIONS PRECEDENT

         The Borrower must deliver to the Bank the documents described in
         Exhibit B, properly executed and in form and content acceptable to the
         Bank, prior to the Bank's initial advance or disbursement under this
         Agreement. The Borrower must also deliver to the Bank, prior to the
         initial advance and any subsequent line advances under this Agreement,
         a Borrowing Base Certificate in the form of Exhibit A-2, at the
         intervals provided in Section 7.1(c).

<PAGE>

6.       REPRESENTATIONS AND WARRANTIES

         To induce the Bank to enter into this Agreement, the Borrower, to the
         best of its knowledge and upon due inquiry, makes the representations
         and warranties contained in Exhibit C. Each request for an advance or a
         disbursement under this Agreement following the Effective Date
         constitutes a reaffirmation of these representations and warranties.

7.       COVENANTS

7.1      Financial Information and Reporting

         Except as otherwise stated in this Agreement, all financial information
         provided to the Bank shall be compiled using generally accepted
         accounting principles consistently applied. During the time period that
         credit is available under this Agreement, and afterward until all
         amounts due under the Documents are paid in full, unless the Bank shall
         otherwise agree in writing, the Borrower agrees to:

(a)      Annual Financial Statements. Provide the Bank within 90 days of the
         Borrower's fiscal year end, the Borrower's annual financial statements
         for the fiscal year then ending, in form acceptable to the Bank.
         The statements must be audited with an unqualified opinion by a
         certified public accountant acceptable to the Bank.

(b)      Insured Foreign Receivables. Provide the Bank within 90 days of the
         Borrower's fiscal year end, evidence of insurance covering foreign
         receivables identified as such in the Borrowing Base Certificate.

(c)      Interim Financial Statements. Provide the Bank within 30 days of each
         quarter end, the Borrower's interim financial statements for the
         interim period then ending. The statements must be current through the
         end of that period and must be compiled by a certified public
         accountant acceptable to the Bank.

(d)      Borrowing Base Certificate. Provide the Bank within 30 days of each
         month end when borrowings are outstanding under the Line, a Borrowing
         Base Certificate in the form of Exhibit A-2, current through the end of
         that period and certified as correct by an officer of the Borrower
         acceptable to the Bank. At the time of each request for an advance
         under this Agreement following the Effective Date, the Borrower shall
         deliver to the Bank a new Borrowing Base Certificate, unless the Bank
         is in possession of a Borrowing Base Certificate current within 30 days
         of the requested advance.

(e)      Accounts Receivable Aging. Provide the Bank within 30 days of each
         month end when borrowings are outstanding under the Line, an accounts
         receivable aging report in form acceptable to the Bank, current through
         the end of that period and certified as correct by an officer of the
         Borrower acceptable to the Bank.

(f)      Notices. Provide the Bank prompt written notice of: 1) any event of
         default or any event which would, after the lapse of time or the giving
         of notice, or both, constitute an event of default under the Agreement
         or any of the Documents; 2) any future event that would cause the
         representations and warranties contained in this Agreement to be untrue
         when applied to the Borrower's circumstances as of the date of such
         event; 3) its discovery of any unpermitted release, emission, discharge
         or disposal of any material of environmental concern; or 4) its receipt
         of a claim from any governmental entity or third party alleging
         noncompliance with environmental laws applicable to its operations or
         properties.

<PAGE>

(g)      Additional Information. Provide the Bank with such other information as
         it may reasonably request, and permit the Bank to visit and inspect its
         properties and examine its books and records.

7.2      Financial Covenants

         During the time period that credit is available under this Agreement,
         and afterward until all amounts due under the Documents are paid in
         full, unless the Bank shall otherwise agree in writing, the Borrower
         agrees to comply with the financial covenants described below, which
         shall be calculated using generally accepted accounting principles
         consistently applied, except as they may be otherwise modified by the
         following capitalized definitions:

         "Tangible Net Worth" means total assets less total liabilities and less
         the following types of assets: (1) leasehold improvements; (2)
         receivables and other investments in or amounts due from any
         shareholder, director, officer, employee or other person or entity
         related to or affiliated with the Borrower; and (3) goodwill, patents,
         copyrights, mailing lists, trade names, trademarks, servicing rights,
         organizational and franchise costs, bond underwriting costs and other
         like assets properly classified as intangible.

(a)      Tangible Net Worth. Maintain a minimum Tangible Net Worth of at least
         $3,131,000 as of December 31, 1999 and at the end of each fiscal
         quarter thereafter.

(b)      Total Liabilities to Tangible Net Worth Ratio. Maintain a ratio of
         total liabilities to Tangible Net Worth of less than .80 to 1.0 as of
         the end of each fiscal quarter.

(c)      Net Profit. Achieve a minimum year to date after-tax net profit of
         $600,000 as of December 31, 1999 and December 31, 2000, and a positive
         net profit for each interim fiscal quarter.

7.3      Other Covenants

         During the time period that credit is available under this Agreement,
         and afterward until all amounts due under the Documents are paid in
         full, unless the Bank shall otherwise agree in writing, the Borrower
         agrees to:

(a)      Insurance. Cause its properties to be adequately insured by a reputable
         insurance company against loss or damage and to carry such other
         insurance (including business interruption, flood, or environmental
         risk insurance) as is required of or usually carried by persons engaged
         in the same or similar business. Such insurance must with respect to
         the Bank's collateral security, include a lender's loss payable
         endorsement in favor of the Bank in form acceptable to the Bank.

(b)      Collateral Audits. Permit the Bank to conduct audits of all collateral
         pledged to the Bank by the Borrower at such intervals as the Bank may
         reasonably require, but not in excess of two times each calendar year.
         The audits may be performed by employees of the Bank or independent
         contractors retained by the Bank.

(c)      Nature of Business. Refrain from engaging in any line of business
         materially different from that presently engaged in by the Borrower.

(d) Deposit Accounts. Maintain its principal deposit accounts with the Bank.

(e)      Form of Organization and Mergers. Refrain from filing as a limited
         liability company or changing its legal form of organization, or
         consolidating, merging, pooling, syndicating or otherwise combining
         with any other entity.

(f)      Maintenance of Properties. Make all repairs, renewals or replacements
         necessary to keep its plant, properties and equipment in good working
         condition.

<PAGE>

(g)      Books and Records. Maintain adequate books and records, refrain from
         making any material changes in its accounting procedures for tax or
         other purposes, and permit the Bank to inspect same upon reasonable
         notice.

(h)      Compliance with Laws. Comply in all material respects with all laws
         applicable to its form of organization, business, and the ownership of
         its property.

(i)      Preservation of Rights. Maintain and preserve all permits, licenses,
         rights, privileges, charters and franchises that it now owns.

         These covenants were negotiated by the Bank and Borrower based on
         information provided to the Bank by the Borrower. A breach of a
         covenant is an indication that the risk of the transaction has
         increased. As consideration for any waiver or modification of these
         covenants, the Bank may require: additional collateral, guaranties or
         other credit support; higher fees or interest rates; and possible
         modifications to the Documents and the monitoring of the Agreement. The
         waiver or modification of any covenant that has been violated by the
         Borrower shall be made at the sole discretion of the Bank. These
         options do not limit the Bank's right to exercise its rights under
         Section 8 of this Agreement.

8.       EVENTS OF DEFAULT AND REMEDIES

8.1      Default

         The Revolving Note evidencing borrowings under the Line shall be
         payable by the Borrower upon Demand by the Bank. Despite this
         reservation of rights, upon the occurrence of any one or more of the
         following events of default, or at any time afterward unless the
         default has been timely cured (if applicable), the Bank may declare the
         Line to be terminated and in its discretion accelerate and declare the
         unpaid principal, accrued interest and all other amounts payable under
         the Revolving Note and the Documents to be immediately due and payable:

(a)      Failure by the Borrower to make any payment of principal or interest
         due under the Revolving Note which continues for 10 days after its due
         date.

(b)      Default by the Borrower in the observance or performance of any
         covenant or agreement contained in this Agreement, and continuance for
         more than 15 days.

(c)      Default by the Borrower in the observance or performance of any
         covenant or agreement contained in any of the Documents (excepting
         defaults under this Agreement, which are addressed in the preceding
         paragraph), after giving effect to applicable grace periods, if any.

(d)      Default by the Borrower with respect to any indebtedness or obligation
         owed to the Bank, which is unrelated to any loan or facility subject to
         the terms of this Agreement, or to any other creditor, which would
         allow the maturity of any such indebtedness or obligation to be
         accelerated.

(e)      Any representation or warranty made by the Borrower to the Bank in this
         Agreement, or any financial statement or report submitted to the Bank
         by or on behalf of the Borrower is materially false or misleading.

(f)      Any litigation or governmental proceeding against the Borrower seeking
         an amount in excess of $100,000.00 which is not insured or subject to
         indemnity by a solvent third party either 1) results in a judgment
         equal to or in excess of that amount against the Borrower or 2) remains
         unresolved on the 270th day following the date of service on the
         Borrower.

<PAGE>

(g)      A garnishment, levy or writ of attachment, or any local, state, or
         federal notice of tax lien or levy is made or issues against the
         Borrower, or any post judgment process or procedure is commenced or any
         supplementary remedy for the enforcement of a judgment is employed
         against the Borrower or the Borrower's property.

(h)      A material adverse change occurs in the Borrower's financial condition
         or ability to repay its obligations to the Bank.

8.2      Immediate Default

         If, with or without the Borrower's consent, a custodian, trustee or
         receiver is appointed for any of the Borrower's properties, or the
         Borrower makes an assignment for the benefit of its creditors, or if a
         petition is filed by or against the Borrower under the United States
         Bankruptcy Code, or the Borrower is dissolved, liquidated, or winds up
         its business, then the Line shall immediately terminate without notice,
         and the unpaid principal, accrued interest, and all other amounts
         payable under the Revolving Note and the Documents shall become
         immediately due and payable without notice or demand.

9.       MISCELLANEOUS.

(a)      No Waiver; Cumulative Remedies. No failure or delay by the Bank in
         exercising any rights under this Agreement shall be deemed a waiver of
         those rights. The remedies provided for in this Agreement and the
         Documents are cumulative and not exclusive of any remedies provided by
         law.

(b)      Amendments or Modifications. Any amendment or modification of this
         Agreement must be in writing and signed by the Bank and Borrower. Any
         waiver of any provision in this Agreement must be in writing and signed
         by the Bank.

(c)      Binding Effect: Assignment. This Agreement and the Documents are
         binding on the successors and assigns of the Borrower and Bank. The
         Borrower may not assign its rights under this Agreement and the
         Documents without the Bank's prior written consent. The Bank may sell
         participations in or assign this Agreement and the Documents and
         exchange financial information about the Borrower with actual or
         potential participants or assignees.

(d)      Minnesota Law. This Agreement and the Documents shall be governed by
         the substantive laws (other than conflict of laws) of the State of
         Minnesota, and the Bank and Borrower consent to the personal
         jurisdiction of the state and federal courts located in the State of
         Minnesota.

(e)      Severability of Provisions. If any part of this Agreement or the
         Documents are unenforceable, the rest of this Agreement or the
         Documents may still be enforced.

(f)      Integration. This Agreement and the Documents describe the entire
         understanding and agreement of the parties and supersedes all prior
         agreements between the Bank and the Borrower relating to each credit
         facility subject to this Agreement, whether verbal or in writing, and
         may be executed in counterparts, each of which shall be deemed an
         original, and all of which together shall constitute one and the same
         instrument. In the event of any inconsistency between the Agreement and
         the Documents, inconsistent terms shall, where possible, be construed
         as conferring cumulative rights and remedies upon the Bank, and, to the
         extent that such construction is not possible, the terms of this
         Agreement shall govern.

<PAGE>

IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ
CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR
ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED.
YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.
THIS NOTICE ALSO APPLIES TO ANY OTHER CREDIT AGREEMENTS (EXCEPT CONSUMER LOANS
OR OTHER EXEMPT TRANSACTIONS) NOW IN EFFECT BETWEEN YOU AND THIS LENDER.

Address for notices to Bank:                Address for notices to Borrower:

NORWEST BANK MINNESOTA,
  NATIONAL ASSOCIATION                      EVEREST MEDICAL CORPORATION
7900 Xerxes Avenue South                    13755 First Avenue North
Bloomington, Minnesota 55431-2208           Plymouth, Minnesota 55441-5454
Attention:  Gary Veverka                    Attention:  Thomas F. Murphy

NORWEST BANK MINNESOTA,
  NATIONAL ASSOCIATION                      EVEREST MEDICAL CORPORATION

By:  /s/ Gary Veverka                       By:  /s/ Thomas F. Murphy

Its:                                        Its:  Vice President of Finance

<PAGE>

                                   EXHIBIT A-1

                            BORROWING BASE DEFINITION

Borrowing Base means the sum of 80% of Eligible Accounts Receivable (as defined
below).

Eligible Accounts Receivable means all accounts receivable of the Borrower
except those which are:

         1)       Due from an account debtor located within the United States
                  and greater than 90 days past the invoice date.
         2)       Due from an account debtor located outside the United States
                  (specifically excluding Turkey and Italy), supported by
                  insurance acceptable to the Bank and greater than 120 days
                  past the invoice date.
         3)       Due from an account debtor located in Turkey or Italy,
                  supported by insurance acceptable to the Bank and greater than
                  150 days past the invoice date.
         4)       Due from an account debtor located in the United States, 10%
                  or more of whose accounts owed to the Borrower are more than
                  90 days past the invoice date.
         5)       Due from an account debtor located outside the United States
                  (specifically excluding Turkey and Italy), 10% or more of
                  whose accounts owed to the Borrower are more than 120 days
                  past the invoice date.
         6)       Due from an account debtor located in Turkey or Italy, 10% or
                  more of whose accounts owed to the Borrower are more than 150
                  days past the invoice date.
         7)       Subject to offset or dispute.
         8)       Due from an account debtor who is subject to any bankruptcy
                  proceeding.
         9)       Owed by a shareholder, subsidiary, affiliate, officer or
                  employee of the Borrower.
         10)      Not subject to a perfected first lien security interest in
                  favor of the Bank.
         11)      Due from an account debtor located outside the United States
                  and not supported by insurance acceptable to the Bank.
         12)      Due from a unit of government, whether foreign or domestic.
         13)      Otherwise deemed ineligible by the Bank in its reasonable
                  discretion.

<PAGE>

                                   EXHIBIT A-2

                           EVEREST MEDICAL CORPORATION

                           BORROWING BASE CERTIFICATE

TO:      Norwest Bank Minnesota,
           National Association
         7900 Xerxes Avenue South
          Bloomington, Minnesota 55431-2208
         (the "Bank")

         Everest Medical Corporation (the "Borrower") certifies that the
following computation of the Borrowing Base was performed as of
__________________________ in accordance with the Borrowing Base definitions set
forth in Exhibit A-1 to the Credit Agreement entered into between the Bank and
the Borrower dated December _____, 1999.

Total A/R                                $
                                         ------------

   Less:    1) Greater than 90 days      $
                                         ------------

            2) Other ineligibles         $
                                         ------------

   Eligible A/R                          $
                                         ------------

   80% of Eligible Accts. Receivable                    $
                                                        ------------

   Total Borrowing Base                                 $
                                                        ------------

   Total Line Outstandings                             ($           )
                                                        ------------

   Excess (Deficit)                                     $
                                                        ------------

EVEREST MEDICAL CORPORATION

By:

Its:

Date:

tb1449i1

<PAGE>

                                    EXHIBIT B

                        CONDITIONS PRECEDENT AND SECURITY

Please Note: This Exhibit describes each Note, Security Document,
Authorizations, Organizational Documents, and all miscellaneous documents,
reports, certificates and other information required as a condition to each
advance or disbursement under the Agreement, whether or not they have previously
been delivered to the Bank.

Note

Revolving Note

The following items have been previously delivered to the Bank and the Borrower
acknowledges that they remain in effect with respect to this Restated Credit
Agreement:

Security Documents

Each Security Document described below must continue in full force and effect at
all times in accordance with its terms during the time period that credit is
available under this Agreement, and afterward until all amounts due under the
Documents are paid in full. The failure of any Security Document to meet these
requirements may result in an event of default under the Agreement and the
acceleration of all of the Borrower's obligations to the Bank evidenced by the
Documents.

Security Agreement of Borrower . A Security Agreement signed by the Borrower,
granting the Bank a first lien security interest in the Borrower's accounts,
inventory, equipment and general intangibles, described in that Agreement,
together with one or more UCC-1 Financing Statements sufficient to perfect the
security interest granted to the Bank in each jurisdiction where such property
is located.

Authorization

Certificate of Authority of Borrower. A Certificate of Authority executed by
such person or persons authorized by the Borrower's organizational documents
and/or agreements to do so, certifying the incumbency and signatures of the
officers or other persons authorized to execute the Documents, and authorizing
the execution of the Documents and performance in accordance with their terms.

Organization

Articles of Incorporation and By-Laws. A recently certified copy of the
Borrower's Articles of Incorporation and By-laws, and any amendments, if
applicable.

Certificate of Good Standing. A recently certified copy of the Borrower's
Certificate of Good Standing.

Other

Arbitration Agreement. The Bank's standard form of Arbitration Agreement signed
by the Bank and Borrower, subjecting potential controversies between them to
binding arbitration, including but not limited to those relating to the
Documents and this Agreement.

Evidence of Insurance. Evidence that the Borrower has obtained all insurance
coverage required by this Agreement, and that the Bank has been named as the
beneficiary of such policy or policies of insurance.

<PAGE>

                                    EXHIBIT C

                         REPRESENTATIONS AND WARRANTIES

Organizational Status. The Borrower is a corporation duly formed and in good
standing under the laws of the State of Minnesota.

Authorization. The execution and delivery of the Documents is within the
Borrower's powers, has been duly authorized by the Borrower and does not
conflict with any of the Borrower's organizational documents or any other
agreement by which the Borrower is bound, and has been signed by all persons
authorized and required to do so under its organizational documents.

Financial Reports. The Borrower has provided the Bank with its annual audited
financial statement dated December 31, 1998 and its unaudited interim financial
statement dated September 30, 1999, and these statements fairly represent the
financial condition of the Borrower as of their respective dates and were
prepared in accordance with generally accepted accounting principles
consistently applied.

Litigation. There is no litigation or governmental proceeding pending or
threatened against the Borrower which could have a material adverse effect on
the Borrower's financial condition or business.

Taxes.   The Borrower has paid when due all federal, state and local taxes.

No Default. There is no event which is, or with notice or the lapse of time
would be, an event of default under this Agreement.

ERISA. The Borrower is in compliance in all material respects with the Employee
Retirement Income Security Act of 1974, as amended, and has received no notice
to the contrary from the Internal Revenue Service, the Department of Labor, the
Pension Benefit Guaranty Corporation or any other governmental entity or notice
of any claims or pending claims under ERISA.

Environmental Matters. 1) The Borrower is in compliance in all material respects
with all health and environmental laws applicable to the Borrower and its
operations and knows of no conditions or circumstances that could interfere with
such compliance in the future; 2) the Borrower has obtained all environmental
permits and approvals required by law for the operation of its business; and 3)
the Borrower has not identified any "recognized environmental conditions", as
that term is defined by the American Society for Testing and Materials in its
standards for environmental due diligence, which could subject the Borrower to
enforcement action if brought to the attention of appropriate governmental
authorities.[Norwest Logo]    Norwest Bank Minnesota,
                  National Association                           Revolving Note
================= ==============================================================

$1,000,000.00                                               December 30, 1999

FOR VALUE RECEIVED, Everest Medical Corporation (the "Borrower") promises to pay
to the order of Norwest Bank Minnesota, National Association (the "Bank"), at
its principal office or such other address as the Bank or holder may designate
from time to time, the principal sum of One Million and 00/100 Dollars
($1,000,000.00), or the amount shown on the Bank's records to be outstanding,
plus interest (calculated on the basis of actual days elapsed in a 360-day year)
accruing each day on the unpaid principal balance at the annual interest rate
defined below. Absent manifest error, the Bank's records shall be conclusive
evidence of the principal and accrued interest owing hereunder.

INTEREST RATE. The principal balance outstanding under this Revolving Note shall
bear interest at an annual rate equal to the Base Rate, floating. Base Rate
means the rate of interest established by the Bank from time to time as its
"base" or "prime" rate of interest at its principal office in Minneapolis,
Minnesota.

REPAYMENT TERMS

Interest. Interest shall be payable on the last day of each month, beginning
January 31, 2000.

Principal. Principal, and any unpaid interest, shall be due on the earlier of
DEMAND or December 31, 2000.

ADDITIONAL TERMS AND CONDITIONS. This Revolving Note is issued pursuant to a
Restated Credit Agreement of even date between the Bank and the Borrower (the
"Agreement"). The Agreement, and any amendments or substitutions, contains
additional terms and conditions, including default and acceleration provisions,
which are incorporated into this Revolving Note by reference. Capitalized terms
not expressly defined herein shall have the meanings given them in the
Agreement. The Borrower agrees to pay all costs of collection, including
reasonable attorneys' fees and legal expenses incurred by the Bank if this
Revolving Note is not paid as provided above. This Revolving Note shall be
governed by the substantive laws of the State of Minnesota.

WAIVER OF PRESENTMENT AND NOTICE OF DISHONOR. Borrower and any other person who
signs, guarantees or endorses this Revolving Note, to the extent allowed by law,
hereby waives presentment, demand for payment, notice of dishonor, protest, and
any notice relating to the acceleration of the maturity of this Revolving Note.

EVEREST MEDICAL CORPORATION

By:  _________________________________

Its: __________________________________

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