Document:

Prepared by MerrillDirect

Exhibit
10.1

[Pursuant
to Rule 24b-2, certain information has been deleted and filed separately with
the Commission.]

AMENDED
AND RESTATED GENERAL CREDIT AND SECURITY AGREEMENT

             THIS AMENDED AND RESTATED GENERAL
CREDIT AND SECURITY AGREEMENT, dated as of March 29, 2001, between Bremer
Business Finance Corporation, a Minnesota corporation, having its mailing
address and principal place of business at 445 Minnesota Street, St. Paul, MN
55101-2107 (herein called “Lender”), and MBC Holding Company, a Minnesota  corporation f/k/a Minnesota Brewing Company,
having offices at 882 West Seventh Street, St. Paul, Minnesota 55102, (herein
called “Borrower”).

RECITALS

             A.         Borrower
and Lender are the parties to that certain General Credit and Security
Agreement dated as of June 30, 2000 (the “Original Agreement”).

             B.          Borrower
has requested that Lender make a Term Loan 
to Borrower and  Lender has
agreed to do so subject to the terms and conditions of this Agreement amending
and restating the Original Agreement.

             NOW THEREFORE, Borrower and Lender
agree to amend and restate the Original Agreement in its entirety to read as
follows:

             1.          Agreement.  This Agreement states the terms and
conditions under which Borrower may obtain certain loans from Lender.

             2.          Certain
Definitions.  For purposes of this
Agreement, the following terms shall have the following meanings:

             “Account Debtor” shall mean
any Person who is or who may become obligated to the Borrower under, with
respect to, or on account of a 
Receivable, General Intangible or other Collateral and shall include,
without limitation, all “Account Debtors” as defined in the Commercial Code.

             “Adjusted Net Income” shall
mean, for any period, the Borrower’s Net Income for such period but excluding
therefrom: (a) non–operating gains and losses (including extra–ordinary
or unusual gains and losses, gains and losses from discontinuance of
operations, gains and losses arising from the sale of assets other than
Inventory and other non–recurring gains and losses) during such period;
and (b) any income attributable to the Borrower’s   Investment in Gopher State Ethanol, LLC, a Delaware limited
liability company “Gopher”)  and MG CO2
St. Paul, LLC, a Delaware limited liability company (MGSP”) which is not
distributed in cash during such period.

“Advance(s)”
shall have the meaning provided in Paragraph 4A(a).

             “Affiliate” shall include,
with respect to any party, any Person which directly or indirectly controls, is
controlled by, or is under common control with such party and, in addition, in
the case of Borrower, each officer, director or shareholder of Borrower, and
each joint venturer and partner of Borrower.

             “Agreement” shall mean this
Agreement as originally executed and as it may be amended, modified,
supplemented or restated from time to time.

             “Approved Project Budget”
shall mean the budget approved by Lender setting forth the costs (the “Project
Costs”) for the acquisition and installation of a bottling line and canning
line upgrade (the “Project”) as amended from to time to time in accordance with
Paragraph 17(n) hereof to  incorporate
changes in Project Costs.

             “Borrower” shall have the
meaning provided in the preamble hereto.

             “Borrowing Base” shall mean,
at any date of determination, the sum of: 
(a) 80% of Eligible Receivables; plus (b) the lesser of: (i)
the sum of: (A) 60% of Eligible Inventory 
comprised of raw materials and finished goods; plus (B) 50% of
Eligible Inventory  comprised of keg
Inventory; plus (C) 25% of Eligible Inventory comprised of packaging
Inventory; or (ii)$1,500,000.00.  The
determination of the Borrowing Base and each of its components, including
without limitation, the advance percentage, 
may be re-evaluated at each Collateral audit following the Closing Date
in Lender’s reasonable business judgment.

             “Borrowing Base Certificate”
shall have the meaning provided in Paragraph 17(a)(iv).

             “Business Day” shall mean
any day on which commercial banks in St. Paul, Minnesota are open for the
transaction of business of the kind contemplated by this Agreement.

             “Capital Base” shall mean,
at any Measurement Date, the sum of: (a) 
the Borrower’s Tangible Net Worth; plus (b) the outstanding
principal amount of the Borrower’s Subordinated Debt.

             “Change of Control” shall
mean the occurrence after the date of this Agreement of an event where: (a)
Bruce Hendry shall cease to own, directly or indirectly,  at least 100% of the general partnership
interests in Minnesota Brewing Limited Partnership (“MBLP”) and 69% of the
limited partnership interests therein; (b) MBLP shall cease to  own, directly or directly, at least 52 % of
all of the issued and outstanding equity securities of the Borrower or, if a
greater percentage, the minimum number of shares necessary to elect a majority
of the members of the Borrower’s board of directors; (c) Bruce Hendry shall
cease, directly or indirectly, to elect a majority of the members of the
Borrower’s board of directors; or (d) one or more of the Borrower’s Key
Officers (as hereinafter defined) shall cease to hold the office ascribed to them
herein, or shall cease to perform the duties that, as of the date of this
Agreement, are associated with such office. 
For purposes of this definition, the Key Officers shall be deemed to be
John J. Lee – President and Michael Hime– Chief Financial Officer.

             “Chattel Paper” shall have
the meaning ascribed to such term in the Commercial Code.

             “Closing Date” shall mean
the day specified by Borrower on which all of the conditions precedent
specified in Paragraphs 21 and 22 shall have been satisfied.

             “Collateral” shall have the
meaning given such term in Paragraph 3.

             “Collateral Account” shall
have the meaning given such term in Paragraph 7(a).

             “Commercial Code” shall mean
the Uniform Commercial Code as enacted in the State of Minnesota, as amended
from time to time, including, without limitation, on and after the effective
date of Minn. Laws 2000, Chapter 399, substantially adopting  Revised Article 9 of the Uniform Commercial
Code as approved by the National Conference of Commissioners on Uniform State Law
Laws in July, 1998 (as so adopted being sometimes hereinafter referred to as
“Revised Article 9”) by Revised Article 9.

             “Compliance Certificate”
shall have the meaning provided in Paragraph 17(a)(iii).

             “Completion” shall mean  that the Project is completed and
operating  in accordance with the
Borrower’s requirements and the contracts and 
subcontracts therefor, in compliance with  any applicable requirements and all applicable governmental
requirements, that  all Project Costs
have been paid and that Borrower has delivered to the Lender copies of all
licenses and permits needed to operate the Project.

             “Completion Deadline” shall
mean July 31, 2001.

             “Contingent Obligations”
shall mean, with respect to any Person, all of such Person’s liabilities and obligations
which are contingent upon and will not mature unless and until the occurrence
of some event or circumstance and which are not included within the definition
of Liabilities of such Person.

             “Current Assets” shall mean,
at any date of determination, the aggregate amount of assets appearing on the
Borrower’s balance sheet at such date which, in accordance with GAAP, should be
properly classified as current assets, after deducting adequate reserves where
proper but in no event including notes receivable or  any amounts due from employees or Affiliates.

             “Current Liabilities” shall
mean , at any date of determination, the aggregate amount of Liabilities
appearing on the Borrower’s balance sheet at such date which, in accordance
with GAAP, should be properly classified as current Liabilities;  provided, however, that the
Revolving Credit Loan shall be deemed to be a Current Liability for all
purposes.

             “Current Ratio” shall mean,
at any Measurement Date, the ratio of the Borrower’s Current Assets to Current
Liabilities.

             “Default” shall mean any
event which, with the giving of notice or passage of time, or both, would
constitute an Event of Default.

             “Default Rate” shall mean
with respect to any: (a) Note, a rate per annum equal to two percent (2%) per annum
in excess of the interest rate which would otherwise be in effect on such Note;
or (b) other Obligation, a fluctuating rate per annum equal all times to the
sum of the Reference Rate plus 2.00% per annum.

             “EBITDA” shall mean, for any
period, the sum of:  (a) the after–tax
Adjusted Net Income for such period; plus (b) the sum of the following
amounts deducted in arriving at  the Net
Income included in such Adjusted Net Income (but without duplication for any
item):  (i) Interest Expense;
(ii) depreciation, amortization and other non–cash expenses (to the
extent not included in clause (i) or (iii)); and (iii) federal, state and
local income taxes.

             “Eligible Receivables” shall
mean a  Receivable owing to the
Borrower  which meets the following
requirements:

             (a)         it is genuine and in all respects what it purports to be;

             (b)        it arises from either (i) the performance of services by the
Borrower, which services have been fully performed and, if applicable,
acknowledged and/or accepted by the Account Debtor with respect thereto; or
(ii) the sale or lease of goods by the Borrower and (A) such goods comply with
such Account Debtor’s specifications (if any) and have been shipped to, or
delivered to and accepted by, such Account Debtor except that, notwithstanding
that Borrower is storing production of Mike’s Hard Lemonade for Mark Anthony
Brands Inc., the Receivables owed to Borrower by such Account Debtor (the “MHL
Receivable(s)”)shall be included in the Borrowing Base up to the amount of the
standby letter of credit delivered to Borrower by such Account Debtor securing
the payment of such Receivables   and
subject to a perfected security interest in favor of the Lender and such
Receivables  are otherwise Eligible
Receivables, (B) the Borrower has possession of, or has delivered to Lender, at
the Lender’s request, shipping and delivery receipts evidencing such shipment,
delivery and acceptance, and (C) such goods have not been returned to the
Borrower;

             (c)         it  is evidenced by an
invoice rendered to the Account Debtor with respect thereto which (i) is dated
not earlier than the date of shipment or performance and (ii) has payment terms
reasonably acceptable to the Lender;

             (d)       
(i) it must not be unpaid on the date that is 90 days or, in the case of any
MHL Receivable, 45 days, from the original invoice date evidencing such
Receivable; and   (ii) it must not be
an  Receivable owed by any Account
Debtor which has 10% or more of its Receivables beyond the time period
specified in subsection (i) above;

             (e)         it is not subject to any assignment, claim or Security
Interest other than (i) a  Security
Interest in favor of Lender; and (ii) other Security Interests consented to by
Lender in writing;

             (f)         it is a valid, legally enforceable and unconditional
obligation of the Account Debtor with respect thereto and is not subject to
setoff, counterclaim, credit or allowance (except any credit (including without
limitation, credits for returned kegs or pallets ) or allowance which has been
deducted in computing the net amount of the applicable invoice as shown in the
original schedule or Borrowing Base Certificate furnished to Lender  identifying or including such Receivable) or
adjustment by the Account Debtor with respect thereto, or to any claim by such
Account Debtor denying liability thereunder in whole or in part, and such
Account Debtor has not refused to accept any of the goods or services which are
the subject of such Receivable or offered or attempted to return any of such
goods;

             (g)        there are no proceedings or actions which are then threatened
or pending against the Account Debtor with respect thereto or to which such
Account Debtor is a party which might result in any material adverse change in
such Account Debtor’s financial condition or in its ability to pay any  Receivable 
in full when due;

             (h)        it does not arise out of a contract or order which, by its
terms, forbids, restricts or makes void or unenforceable the assignment by the
Borrower  to Lender of such  Receivable;

             (i)         
the Account Debtor with respect thereto is not a Subsidiary or Affiliate, or a
director, officer, employee or agent of the Borrower, a Subsidiary or
Affiliate;

             (j)          the Account Debtor with respect thereto is a resident or
citizen of and is located within the United States of America unless the sale
of goods giving rise to such Receivable is on letter of credit, banker’s
acceptance or other credit support terms satisfactory to Lender;

             (k)         it does not arise from a “sale on approval,” “sale or return”
or “consignment,” nor is it subject to any other repurchase or return
agreement;

             (l)          it is not a Receivable with respect to which possession
and/or control of the goods sold giving rise thereto is held, maintained or
retained by the Borrower, any Subsidiary or Affiliate (or by any agent or custodian
of the Borrower, any Subsidiary or Affiliate) for the account of or subject to
further and/or future direction from the Account Debtor with respect thereto;

             (m)        it does not, in any way, violate or fail to meet any warranty,
representation or covenant contained in the Loan Documents relating directly or
indirectly to the Borrower’s Receivables;

             (n)        the Account Debtor with respect thereto is not located in the
States of Minnesota, Indiana, New Jersey or Alabama or any other state which
prohibits a Person from availing itself of the benefits of that state’s courts
unless such Person is qualified to do business or has filed a notice of
business activities; provided, however, that such restriction
shall not apply if: (i) the Borrower  is
qualified to do business in such state; (ii) such owner has filed and has
effective a notice of business activities report with the appropriate office or
agency of such state for the then current year or is exempt from the filing of
such report; or (iii) upon the Borrower’s written request and at the Borrower’s
sole cost and expense (including, without limitation, the payment of Lender’s
reasonable attorneys’ fees), Lender determines, that it can avail itself of the
benefits of the relevant state’s courts to collect such Account Debtor’s
Receivables, regardless of whether such owner can do so;

             (o)        it arises in the ordinary course of the Borrower’s  business;

             (p)        if the Account Debtor with respect thereto is the United
States of America or any department, agency or instrumentality thereof (a “Federal
Governmental Authority”), or any state, county or local governmental
authority, or any department, agency or instrumentality thereof, the Borrower
has assigned its right to payment of such Account to Lender pursuant to the
Assignment of Claims Act of 1940 as amended in the case of the a Federal
Governmental Authority, or pursuant to applicable state law, if any, in all
other instances, and such assignment has been accepted and acknowledged by the
appropriate government officers;

             (q)        if Lender, in its reasonable business judgment, has
established a credit limit for the Account Debtor with respect thereto, the
aggregate dollar amount of Receivables due from such Account Debtor, including
such Receivable, does not exceed such credit limit; and

             (r)         if it is evidenced by Chattel Paper or Instruments, (i)
Lender shall have specifically agreed to include such  Receivable as an Eligible Receivable, (ii) only payments then due
and payable under such Chattel Paper or Instrument shall be included as an
Eligible Receivable  and (iii) the
originals of such Chattel Paper or Instruments have been assigned and delivered
to Lender in a manner satisfactory to Lender.

A
Receivable which is at any time an Eligible Receivable but which subsequently
fails to meet any of the foregoing requirements shall forthwith cease to be an
Eligible Receivable.  Further, with
respect to any  Receivable, if Lender at
any time or times hereafter determines, in its reasonable business judgment,
that the prospect of payment or performance by the Account Debtor with respect
thereto is or will be impaired for any reason whatsoever, notwithstanding
anything to the contrary contained above, such Receivable shall forthwith cease
to be an Eligible Receivable. The amount of Eligible Receivables shall be the
net United States dollar amount (as determined by Lender after deduction of
such reserves and allowances as Lender in its reasonable business  judgment deems proper and necessary)
computed no less frequently than monthly from the Borrowing Base Certificate
delivered to Lender  pursuant to
Paragraph 17(a)(iv).

             “Eligible Inventory” shall
mean the Borrower’s Inventory  which
meets the following requirements:

             (a)         it is owned by the Borrower 
and is not subject to any prior assignment, claim or Security Interest
other than (i) a  Security Interest in
favor of Lender; and (ii) other 
Security Interests consented to by Lender in writing;

             (b)        it is: (i) finished goods Inventory of the Borrower  held for sale under binding and enforceable
purchase orders from a Person who is not a Subsidiary or Affiliate and complies
with such purchase order’s specifications except that up to $100,000.00 of the
Borrower’s inventory (prior to application of the Borrowing Base percentage) may
consist of safety stock produced by the Borrower in the ordinary course of
business;  (ii) raw materials  Inventory; (iii) keg Inventory; or (iv)
packaging Inventory;

             (c)         it
is located at one of the Borrower’s 
facilities described on Schedule A attached hereto;

             (d)        Lender has determined, in its reasonable business judgment,
that it is not unacceptable due to age, type, category, quality and/or
quantity;

             (e)         it is not held by the Borrower on “consignment” and is not
subject to any other repurchase or return agreement;

             (f)         it complies with all standards imposed by any governmental
agency having regulatory authority over such goods and/or their use,
manufacture or sale; and

             (g)        it does not, in any way, violate or fail to meet any warranty,
representation or covenant contained in the Loan Documents relating directly or
indirectly to the Borrower’s  Inventory.

Inventory
which is at any time Eligible Inventory but which subsequently fails to meet
any of the foregoing requirements shall forthwith cease to be Eligible
Inventory. The value of Eligible Inventory shall be the U.S. dollar amount
thereof computed at the lower of the cost, determined on a first in first out
basis, or market value of such Inventory, as determined by Lender after
deduction of such reserves and allowances as Lender in its reasonable business
judgment  deems proper and necessary and
shall be computed no less frequently than monthly from the Borrowing Base
Certificate delivered to Lender pursuant to Paragraph 17(a)(iv).

             “Equipment” shall have the
meaning provided in Paragraph 3(c).

             “ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as the same may from time to
time be amended, and the rules and regulations promulgated thereunder by any
governmental agency or authority, as from time to time in effect.

             “ERISA Affiliate shall mean,
with respect to any Person, any trade or business (whether or not incorporated)
which is a member of a group of which such Person is a member and which is
under common control within the meaning of Section 414 of the Code, as amended
from time to time, and the regulations promulgated and rulings issued
thereunder.

             “ERISA Event” shall mean:
(a) a Reportable Event described in Section 4043 of ERISA and the regulations
issued thereunder (other than a Reportable Event not subject to the provision
for 30-day notice to the PBGC under such regulations); (b) the withdrawal of
Borrower or any ERISA Affiliate from a Plan during a plan year in which it was
a “substantial employer” as defined in Section 4001(a)(2) of ERISA; (c) the
filing of a notice of intent to terminate a Plan or the treatment of a Plan
amendment as a termination under Section 4041 of ERISA; (d) the institution of
proceedings to terminate a Plan by the PBGC under Section 4042 of ERISA; or (e)
any other event or condition that might reasonably be expected to constitute
grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Plan.

             “Event of Default” shall
have the meaning provided in Paragraph 20.

             “Fixed Charge Coverage Ratio”
shall mean, at any Measurement Date, the ratio of: (a) the Borrower’s EBITDA
for the Measurement Period ending on such Measurement Date; to  (b) the sum of the  following for the same Measurement Period: (i) Interest Expense; plus
(ii) the principal payments (including the portion of any payment on any
capitalized lease allocable to principal in accordance with GAAP) regularly
scheduled to have been made by the Borrower during such period on its
capitalized leases and other interest–bearing Indebtedness; plus
(iii) the Capital Expenditures which were not financed during such period by
the Borrower entering into a capitalized lease or incurring other long–term
Indebtedness permitted by Paragraph 18(c)(iii); plus (iv) income taxes
paid in cash.

             “GAAP” shall mean generally
accepted accounting principles consistently applied and maintained throughout
the period indicated and consistent with the audited financial statements
delivered to Lender pursuant to Paragraph 16(h).  Whenever any accounting term is used herein which is not
otherwise defined, it shall be interpreted in accordance with GAAP.

             “General Intangibles” shall
have the meaning given such term in the Commercial Code.

             “Independent Public Accountants”
shall mean McGladrey & Pullen or any other firm of independent public
accountants which is acceptable to Lender.

             “Interest  Coverage Ratio” shall mean, at any date
of determination, the ratio of:   (a)
the Borrower’s EBITDA for the Measurement Period ending at such date; to
(b) the  Interest Expense during
such Measurement Period.

             “Interest Expense” shall
mean, for any period, the aggregate interest expense (including capitalized
interest) of the Borrower for such period including, without limitation, the
interest portion of any Capitalized Lease; provided, however,
that the foregoing shall be adjusted to reflect only the net effect of any
interest rate swap, interest hedging transaction, or other similar arrangement
entered into by the Borrower in order to reduce or eliminate variations in its
interest expenses.

             “Inventory” shall have the
meaning provided in Paragraph 3(b).

             “Leverage Ratio” shall mean,
at any Measurement Date, the ratio of 
the Borrower’s Liabilities to the Borrower’s Capital Base.

             “Liabilities” of any Person
shall mean those items which, in accordance with GAAP, appear as liabilities on
a balance sheet.

             “Loan(s)” shall mean the
Revolving Credit Loan and the Term Loans.

             “Loan Document(s)” shall
mean individually or collectively, as the case may be, this Agreement, the
Notes, the Support Agreements, the Project Letter of Credit and any and all
other documents executed, delivered or referred to herein or therein, as
originally executed and as amended, modified or supplemented from time to time.

             “Material Adverse Occurrence”
shall mean any occurrence of whatsoever nature (including, without limitation,
any adverse determination in any litigation, arbitration or governmental
investigation or proceeding) which Lender shall determine, in its sole
discretion, could adversely affect the present or prospective financial
condition or operations of Borrower or impair the ability of Borrower to
perform its obligations under this Agreement or any other Loan Document.

             “Maturity Date” shall mean
the earlier of: (a)  the date upon which
the Obligations are declared to be due and payable (or automatically become due
and payable) upon the occurrence of an Event of Default as provided in
Paragraph 20; or (b) (i) June 30, 2001, with respect to the Revolving Credit
Loan;  (ii) April 1, 2006 with respect
to the Term Loan A; or (iii) April 1, 2006 with respect to the Term Loan B.

             “Measurement Date” shall
mean the last day of each month of the Borrower’s fiscal year.

             “Measurement Period” shall
mean, at any  Measurement Date, the
Borrower’s two consecutive fiscal quarters ending on such Measurement Date.

             “Monthly Payment Date” shall
mean the first day of each month.

             “Multiemployer Plan” shall
mean a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which
Borrower is making or accruing an obligation to make contributions, or has
within any of the preceding three plan years made or accrued an obligation to
make contributions.

             “Net Income” shall mean, for
any period, the Borrower’s after-tax net income for such period determined in
accordance with GAAP.

             “Note(s)” shall mean the
Revolving Credit Note and the Term Notes.

             “Obligations” shall have the
meaning provided in Paragraph 3.

             “Original Agreement” shall
have the meaning provided in the recitals hereto.]

             “PBGC” shall mean the
Pension Benefit Guaranty Corporation or any successor board, authority, agency,
officer or official of the United States administering the principal functions
assigned on the date hereof to the Pension Benefit Guaranty Corporation under
ERISA.

             “Participant” shall mean
each Person who purchases a participation interest from Lender in the
obligations.

             “Person” shall mean any
natural person, corporation, firm, partnership, association, government,
governmental agency or any other entity, whether acting in an individual,
fiduciary or other capacity.

             “Plan” shall mean each
employee benefit plan or other class of benefits covered by Title IV of ERISA,
in either case whether now in existence or hereafter instituted, of Borrower or
any of its Subsidiaries.

             “Project Letter of Credit”
shall mean a letter of credit in the initial amount of [Confidential Treatment
Requested] securing the payment of the Term Loan A issued for the account
of  Mark Anthony Brands Inc. in favor of
Lender by a bank and in form and substance satisfactory to Lender, in its sole
discretion, or any replacement letter of credit issued in favor of Lender by a
bank and in form and substance satisfactory to Lender, in its sole discretion.

             “Receivables” shall have the
meaning provided in Paragraph 3(a).

             “Reference Rate” shall mean
the publicly announced base rate (or other publicly announced reference rate)
charged by Bremer Financial Corporation; Borrower acknowledges that the
Reference Rate may not be the lowest rate made available by Lender to its
customers and that Lender may lend to its customers at rates that are at, above
or below the Reference Rate.

             “Reportable Event” shall
have the meaning given to that term in Title IV of ERISA.

             “Revolving Credit Commitment”
shall mean $3,500,000.00 and, as the context may require, the agreement of the
Lender to make Advances to the Borrower up to the Revolving Credit Commitment
subject to the terms and conditions of this Agreement.

             “Revolving Credit Loan”
shall mean, at any date of determination, the aggregate outstanding principal
amount of all Advances.

             “Revolving Credit Note”
shall mean promissory note in the form of Exhibit A attached hereto and
made a part hereof made by Borrower payable to the order of Lender to evidence
the Advances and each renewal, replacement or substitute note therefor.

             “Revolving Credit Termination
Date” shall mean the Maturity Date of the Revolving Credit Loan.

             “Security Interest” shall
mean any lien, pledge, mortgage, encumbrance, charge or security interest of
any kind whatsoever (including, without limitation, the lien or retained
security title of a conditional vendor) whether arising under a security
instrument or as a matter of law, judicial process or otherwise or the agreement
by Borrower to grant any lien, security interest or pledge, mortgage or
encumber any asset.

             “Subordinated Debt” shall
mean indebtedness of Borrower for borrowed money which is subordinated to the
Obligations on terms satisfactory to Lender in its sole discretion.

             “Subordination Agreement”
shall mean each Subordination Agreement relating to any Subordinated Debt, in
each case as originally executed and as amended, modified, supplemented or
restated from time to time.

             “Support Agreement” shall
mean each Support Agreement executed by a Key Officer, in each case as
originally executed and as amended, modified, supplemented or restated from
time to time.

             “Tangible Net Worth” shall
mean, at any date of determination, the difference between: (a) the total assets
appearing on Borrower’s balance sheet at such date prepared in accordance with
GAAP after deducting adequate reserves in each case where, in accordance with
GAAP, a reserve is proper; and (b) the total liabilities appearing on such
balance sheet (the “Total Liabilities”); excluding, however, from
the determination of total assets: (i) goodwill, organizational expenses,
research and development expenses, trademarks, trade names, copyrights,
patents, patent applications, licenses and rights in any thereof, covenants not
to compete, training costs and other similar intangibles; (ii) all deferred
charges or unamortized debt discount and expense other than deferred income
taxes; (iii) securities which are not readily marketable other than  Borrower’s equity Investment in Gopher and
MGSP ; (iv) any write-up in the book value of any assets resulting from a
re-evaluation thereof subsequent to the date of Borrower’s annual financial
statement described in Paragraph16(h); (v) amounts due from officers or
Affiliates; and (vi) any asset acquired subsequent to the date of this
Agreement which the Lender, in its reasonable business judgment, determines to
be an intangible asset.

             “Term Loan(s)”  shall mean Term Loan A and Term Loan B.

             “Term Loan A” shall mean the
loan described in Paragraph 4B.

             “Term Loan A Commitment”
shall mean the lesser of: (a) $4,400,000.00; or (b) the sum of: (i) an amount
up to 70 % of the appraised orderly liquidation value of the Equipment
described in Part II of  Schedule J  attached hereto to be acquired and installed
in the Project as determined by an appraisal satisfactory in form and substance
to the Lender, in its sole discretion; plus (iii) the amount available
to be drawn on the Project Letter of Credit.

             “Term Loan A Commitment Termination
Date” shall mean the earlier of: (a) July 31, 2001; or (b) the Maturity
Date of the Term Loan A.

             “Term Note(s)” shall mean
Term Note A and Term Note B.

             “Term Note A” shall mean the
promissory note in the form of Exhibit B attached hereto and made a part
hereof made by Borrower payable to the order of Lender to evidence Term Loan A
and each renewal, replacement or substitute note therefor.

             “Term Loan B “ shall mean
the loan described in Paragraph 4C.

             “Term Loan B Commitment”
shall mean  the lesser of: (a)
$600,000.00; or (b) an amount up to 70 % of the appraised orderly liquidation
value of the Equipment described in Part I of 
Schedule J  attached
hereto previously acquired, as determined by an appraisal satisfactory in form
and substance to the Lender, in its sole discretion.

             “Term Loan B Commitment
Termination Date” shall mean the earlier of: (a) April 30, 2001; or (b) the
Maturity Date of the Term Loan B.

             “Term Note B” shall mean the
promissory note in the form of Exhibit C attached hereto and made a part
hereof made by Borrower payable to the order of Lender to evidence Term Loan B
and each renewal, replacement or substitute note therefor.

             3.          Security.  As security for all present and future sums
loaned or advanced by Lender to Borrower and for all other obligations now or
hereafter chargeable to Borrower’s loan account hereunder, and all other
obligations and liabilities of any and every kind of Borrower to Lender, due or
to become due, direct or indirect, absolute or contingent, joint or several,
howsoever created, arising or evidenced, now existing or hereafter at any time
created, arising or incurred including, without limitation, the Loans (herein
called “Obligations”), Borrower hereby grants to Lender a security interest in
and to the following property (any quoted term used in this Paragraph which is
a defined term under the Commercial Code is being used as defined in the
Commercial Code except as otherwise defined herein):

             (a)         All Receivables of Borrower, whether  now owned or existing, or owned, acquired or
arising hereafter, together with all customer lists, original books and
records, ledger and account cards, computer tapes, discs, printouts and
records, whether now in existence or hereafter created.  “Receivables” means all rights of Borrower
to the payment of money, whether or not earned and howsoever evidenced or
arising, including (without limitation) all present and future “Accounts”,
“Chattel Paper” including, without limitation, all “Electronic Chattel Paper”
and “Tangible Chattel Paper”, “Instruments,” and rights to payment which are
“General Intangibles” including, without limitation, all “Payment Intangibles”,
all security therefor including, without limitation, all “Supporting
Obligations” and all of Borrower’s rights as an unpaid seller of goods
(including rescission, replevin, reclamation and stopping in transit) and all
of Borrower’s rights to any goods represented by any of the foregoing including
returned or repossessed goods;

             (b)        All “Inventory” of Borrower, 
whether now owned or existing, or owned, acquired or arising hereafter
and wherever located  including, without
limitation,  all “Goods” leased to
Borrower as a lessor, all “Goods” intended for sale or lease or to be furnished
under contracts of service, all “Goods” furnished by Borrower under a contract
for service, all raw materials and work in process therefor, all finished goods
thereof, all materials and supplies of every nature used or usable or consumed
or consumable in connection with the manufacture, packing, shipping,
advertising, selling, leasing or furnishing of such “Goods”, and all
accessories thereto and all documents of title therefor evidencing the same;

             (c)         All “Equipment” of Borrower, 
whether now owned or existing, or owned, acquired or arising hereafter
and wherever located including, without limitation, all of Borrower’s “Goods”
other than “Inventory”, all replacements and substitutions therefor and all
accessions thereto, and specifically includes, without limitation, all present
and future machinery, equipment, vehicles, manufacturing equipment, shop
equipment, office and record keeping equipment, furniture, “Fixtures”, parts,
tools and all other “Goods” (except “Inventory”) used or acquired for use by
Borrower for any business or enterprise;

             (d)        All “General Intangibles” of Borrower not comprising a
Receivable, whether now owned or existing, or owned, acquired or arising
hereafter, including without limitation, all present and future domestic and
foreign patents, patent applications, trademarks, trademark applications,
copyrights, trade names, trade secrets, patent and trademark licenses (whether
Borrower is licensor or licensee), shop drawings, engineering drawings,
blueprints, specifications, parts lists, manuals, operating instructions, customer
and supplier lists, licenses, permits, franchises, the right to use Borrower’s
corporate name and the goodwill of Borrower’s business;

             (e)         All
“Deposit Accounts” of Borrower, whether now owned or existing, or owned,
acquired or arising hereafter;

             (f)         the  “Commercial Tort Claims” of Borrower
described on Schedule I  attached
hereto;

             (g)        All
“Investment Property” of Borrower,  
whether now owned or existing, or owned, acquired or arising hereafter
excluding, however, “Investment Property” pledged to secure Borrower’s bond in
favor of the Bureau of Alcohol, Tobacco and Firearms;

             (h)        All
“Letter of Credit Rights” of Borrower, 
whether now owned or existing, or owned, acquired or arising hereafter;
and

             (i)          All
products and “Proceeds” of any and all of the foregoing and all products and
“Proceeds” of any other Collateral (as hereinafter defined) including the
“Proceeds” of any insurance covering any of the Collateral.

All
such Receivables, “Inventory”, “Equipment”, “General Intangibles”, “Deposit
Account”, “Commercial Tort Claims”, “Investment Property”, “Letter of Credit
Rights”, products and “Proceeds”, together with all other assets and properties
of Borrower in or on which Lender is now or hereafter granted a security
interest, mortgage, lien or encumbrance pursuant to this Agreement or
otherwise, are hereinafter sometimes referred to as “Collateral”.

             4.          Terms
of Lending

             4A.       Revolving
Credit Loan; Advances

             (a)         At
the request of Borrower, Lender agrees, subject to the terms and conditions of
this Agreement, to make loans (each such loan being herein sometimes called
individually an “Advance” and collectively the “Advances”) to Borrower from
time to time on any Business Day during the period from the date hereof and
ending on the Revolving Credit Termination Date; provided, however, that
Lender shall not be required to make any Advance if, after giving effect to
such Advance, the Revolving Credit Loan would exceed the lesser of the
Revolving Credit Commitment or the Borrowing Base.  The amount of each such Advance shall be charged to Borrower’s
loan account.

             (b)       
In order to obtain an Advance, Borrower shall give written or telephonic notice
to Lender, by not later than 11:00 a.m. (Minneapolis time) on the date the
requested Advance is to be made. Lender, shall make such Advance by
transferring the amount thereof in immediately available funds for credit to an
account (other than a payroll account) of Borrower at Lender, as specified in
such notice.  At the request of
Lender,  Borrower shall confirm in
writing any telephonic notice.

             (c)         The
obligation of Lender to make Advances shall terminate on the Revolving Credit
Termination Date.

             (d)        If
at any time the Revolving Credit Loan exceeds the lesser of the Revolving
Credit Commitment or the Borrowing Base, then Borrower agrees to make, on
demand, a principal repayment on the Revolving Credit Loan in an amount equal
to such excess together with accrued interest on the amount repaid to the date
of repayment.  Borrower agrees that, on
the Maturity Date of the Revolving Credit Loan, it will repay the entire
outstanding principal balance of the Revolving Credit Loan together with
accrued interest thereon and all accrued fees without presentment or demand for
payment, notice of dishonor, protest or notice of protest, all of which are
hereby waived.

             (e)         The
Advances shall be evidenced by the Revolving Credit Note made by Borrower
payable to the order of Lender; subject, however, to the
provisions of such Note to the effect that the principal amount payable thereunder
at any time shall not exceed the then unpaid principal amount of the Revolving
Credit Loan made by Lender.  Borrower
hereby irrevocably authorizes Lender to make or cause to be made, at or about
the time of each Advance made by Lender, an appropriate notation on the records
of Lender, reflecting the principal amount of such Advance, and Lender shall
make or cause to be made, on or about the time of receipt of payment of any
principal of the Revolving Credit Note, an appropriate notation on its records
reflecting such payment.  The aggregate
amount of all Advances set forth on the records of Lender shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on the Revolving
Credit Note.

4B.        Term Loan A.

             (a)         At
the request of Borrower made prior to the Term Loan A Commitment Termination
Date, Lender agrees, subject to the terms and conditions of this Agreement, to
make a term loan (the “Term Loan A”) to Borrower in an amount up to the Term
Loan A Commitment.  Term Loan A proceeds
 shall be disbursed by the Lender solely
for the purpose of paying, or reimbursing 
Borrower for the payment of, Project Costs.

             (b)       
In order to obtain Term Loan A proceeds, Borrower shall give written or
telephonic notice to Lender, by not later than close of Lender’s business at
least one (1) Business Day prior to the date on which Borrower desires
that  Term Loan A proceeds be disbursed
to Borrower.  Each request for a disbursement
of Term Loan A proceeds shall be in  the
form of Exhibit B-1 attached hereto. 
On the requested date but subject to the terms and conditions of this
Agreement, Lender shall make Term Loan A proceeds available to Borrower  by transferring the amount thereof in
immediately available funds for credit to an account (other than a payroll
account) of Borrower at Bremer Bank, National Association.

             (c)         The
obligation of Lender to make further disbursements of Term Loan A proceeds  shall terminate on the Term Loan A
Commitment Termination Date.

             (d)        The
Term Loan A shall be evidenced by, and payable in accordance with, the Term
Note A made by Borrower payable to the order of Lender; subject, however,
to the provisions of such Note to the effect that the principal amount payable
thereunder at any time shall not exceed the then unpaid principal amount of the
Term Loan A made by Lender.  Borrower
hereby irrevocably authorizes Lender to make or cause to be made, at or about
the time on which the Term Loan A proceeds are advanced to the Borrower, an appropriate
notation on the records of Lender, reflecting the principal amount of the Term
Loan A, and Lender shall make or cause to be made, on or about the time of
receipt of payment of any principal of the Term Note A , an appropriate
notation on its records reflecting such payment.  The outstanding principal 
amount of  Term Loan A  set forth on the records of Lender shall be
rebuttable presumptive evidence of the principal amount owing and unpaid on the
Term Note A.

             (e)         Lender
shall not be obligated to advance any Term Loan A proceeds unless and
until  Borrower has provided  Lender with evidence that Borrower has paid
sufficient Project Costs so that all remaining unpaid Project Costs do not
exceed the un-advanced balance of the Term Loan A Commitment.  If the Lender or  Borrower determines that the un-advanced balance of the Term Loan
A Commitment is insufficient to cover any Project Cost, it shall notify the
other party of such determination, and 
Borrower shall, within five (5) Business Days after such notice, deposit
with the Lender funds equal to the amount of the deficiency and/or directly pay
such deficiency and deliver evidence of such payment to Lender.  Borrower hereby assigns and pledges to the
Lender all funds so deposited as additional security for the Obligations.  Borrower may not reallocate items of Project
Costs without the consent of the Lender.

4C.        Term Loan B.

             (a)         At
the request of Borrower made prior to the Term Loan B Commitment Termination
Date, Lender agrees, subject to the terms and conditions of this Agreement, to
make a term loan (the “Term Loan B”) to Borrower in an amount up to the Term
Loan B Commitment.

             (b)       
In order to obtain Term Loan B proceeds, Borrower shall give written or
telephonic notice to Lender, by not later than close of Lender’s business at
least one (1) Business Day prior to the date on which Borrower desires
that  Term Loan B proceeds be disbursed
to Borrower.  On the requested date but
subject to the terms and conditions of this Agreement, Lender shall make Term
Loan B proceeds available to Borrower 
by transferring the amount thereof in immediately available funds for
credit to an account (other than a payroll account) of Borrower at Bremer Bank,
National Association.

             (c)         The
obligation of Lender to make the Term Loan B shall terminate on the Term Loan B
Commitment Termination Date.

             (d)        The
Term Loan B shall be evidenced by, and payable in accordance with, the Term
Note B made by Borrower payable to the order of Lender; subject, however,
to the provisions of such Note to the effect that the principal amount payable
thereunder at any time shall not exceed the then unpaid principal amount of the
Term Loan B made by Lender.  Borrower
hereby irrevocably authorizes Lender to make or cause to be made, at or about the
time on which the Term Loan B proceeds are advanced to the Borrower, an
appropriate notation on the records of Lender, reflecting the principal amount
of the Term Loan B, and Lender shall make or cause to be made, on or about the
time of receipt of payment of any principal of the Term Note B , an appropriate
notation on its records reflecting such payment.  The outstanding principal 
amount of  Term Loan B  set forth on the records of Lender shall be
rebuttable presumptive evidence of the principal amount owing and unpaid on the
Term Note B.

             5.          Interest.  Borrower agrees to pay interest on the
outstanding principal amount of each Loan at the rates and at the times
specified in the Note evidencing such Loan. 
Each change in the interest rates due to a change in the Reference Rate
shall take effect simultaneously with the corresponding change in the Reference
Rate.   Interest may be charged to
Borrower’s loan account as an Advance at Lender’s option, whether or not
Borrower then has a right to obtain an Advance pursuant to the terms of this
Agreement.

             5B.        Late Fee. If any amount due hereunder or under any Note
or other Obligations (whether principal, interest, fees, costs, expenses or
otherwise) is paid more than fifteen 
(15) days after the stated due date for such payment, the Borrower
shall   pay to the Lender, on demand, a late payment fee equal to four
percent (4.00%) of the past due amount.

             6.          Set-Off;
etc.  Upon the occurrence of a
Default or an Event of Default, Lender and each of its Affiliates are hereby
authorized at any time and from time to time, without notice to Borrower (any
such notice being expressly waived by Borrower), to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held and other indebtedness at any time owing by Lender or any Participant
to or for the credit or the account of Borrower, any amounts held in any
account maintained at Lender, such Affiliate 
or any Participant, against any and all amounts which may be owed to
Lender or any Participant by Borrower whether in connection with this Agreement
or otherwise and irrespective of whether Borrower shall have made any requests
under this Agreement. The Borrower hereby grants to the Lender, each of its
Affiliates and each Participant a Security Interest in all such deposits,
accounts or monies.

             7.          Reports
and Collection.

             (a)        
Immediately upon the occurrence and during the continuance of a Default or
an  Event of Default, unless otherwise
consented to by the Lender in writing, the Borrower will, forthwith upon receipt
by the Borrower of any and all checks, drafts, cash and other remittances in
payment or as proceeds of, or on account of, any of the Accounts Receivable or
other Collateral, deposit the same in a special bank account in Lender’s name
designated for receipt of Borrower’s funds (the “Collateral Account”)
maintained at Bremer Bank, National Association over which the Lender alone has
power of withdrawal, and will designate with each such deposit the
particular  Receivable or other item of
Collateral upon which the remittance was made. 
The Borrower acknowledges that the maintenance of the Collateral Account
is solely for the convenience of the Lender in facilitating its own operations
and the Borrower does not and shall not have any right, title or interest in
the Collateral Account or in the amounts at any time appearing to the credit
thereof.  Said proceeds shall be
deposited in precisely the form received except for the Borrower’s endorsement
where necessary to permit collection of items, which endorsement the Borrower
agrees to make.  Borrower shall be
liable as endorsee on all items deposited in the Collateral Account, whether or
not in fact endorsed by Borrower. 
Pending such deposit, the Borrower agrees not to commingle any such
checks, drafts, cash and other remittances with any of its funds or property,
but will hold them separate and apart therefrom and upon an express trust for
the Lender until deposit thereof is made in the Collateral Account.  Upon the full and final liquidation of all
Obligations and termination of the Revolving Credit Commitment, the Lender will
pay over to the Borrower any excess amounts received by the Lender as payment
or proceeds of Collateral, whether received by the Lender as a deposit in the
Collateral Account or received by the Lender as a direct payment on any of the
sums due hereunder.

             (b)        The
Borrower will irrevocably direct all present and future Account Debtors and
other Persons obligated to make payments on Receivables or other Collateral to
make such payments to a special lockbox (the “Lockbox”) under the control of
Lender or an Affiliate.  All of
Borrower’s invoices, account statements and other written or oral communication
directing, instructing, requesting or demanding payment of any  Receivable or other amount constituting
Collateral shall direct that all payments be made to the Lockbox and shall
include the Lockbox address.  All
payments received in the Lockbox prior to the occurrence and during the
continuance of a Default or  an Event of
Default shall be processed to the Borrower’s primary operating account at
Bremer Bank, National Association so long as such bank has entered into a
blocked account or control agreement with the Lender in form and substance
satisfactory to the Lender. All payments received in the Lockbox following the
occurrence and during the continuance of a Default or an Event of Default shall
be processed to the Collateral Account. Borrower agrees to execute and deliver
all documentation required by Lender related to the establishment and
maintenance of the Lockbox.

             (c)         The Borrower authorizes the Lender to, and the Lender will,
subject to the provisions of this Paragraph 7(c), apply the whole or any part
of any amounts received by the Lender or any Affiliate (whether deposited in
the Collateral Account or otherwise received by the Lender or any Affiliate)
following the occurrence and during the continuance of an Event of Default from
the collection of items of payment and proceeds of any Collateral  against the principal and/or interest of any
Advances made hereunder and/or any other Obligations, whether or not then due,
in such order of application as the Lender may determine, unless such payments
or proceeds are, in the Lender’s sole and absolute discretion, released to the
Borrower.  No checks, drafts or other
instruments received by the Lender, or any Affiliate, shall constitute final
payment to the Lender unless and until such item of payment has actually been
collected.  Following the occurrence and
during the continuance of an Event of Default, Lender, upon receipt of finally
collected funds for any  item or amount
which is delivered to the Lender  by or
on behalf of the Borrower or any Account Debtor on account of partial or full
payment or otherwise as proceeds of any of the Collateral (including any items
or amounts which may have been deposited to the Collateral Account), may from
time to time, in the Lender’s sole and absolute discretion,  release such collected amount  to the Borrower or  apply such amount  towards
such of the Obligations, whether or not then due, in such order of application
as the Lender may determine.

             (d)       
At any time following the occurrence and during the continuance of an Event of
Default, Lender may notify the Borrower’s Account Debtors at any time that Receivables
have been assigned to Lender and collect them directly in Lender’s own name but
unless and until Lender does so or gives Borrower other instructions, Borrower
shall make collection for Lender at Borrower’s sole cost and expense.  Borrower shall advise Lender promptly of any
goods which are returned by Account Debtors or otherwise recovered involving an
amount in excess of $75,000.00 and, unless instructed to deliver such goods to
Lender, Borrower shall resell them for Lender and assign or deliver to Lender
the resulting Receivables or other proceeds. 
Borrower shall also advise Lender promptly of all disputes and claims by
Account Debtors involving an amount in excess of $75,000.00 and settle or
adjust them at no expense to Lender.  At
any time after the occurrence and during the continuance of an Event of
Default, Lender may at all times settle or adjust such disputes and claims
directly with the Account Debtors for amounts and upon terms which Lender
considers advisable.  If Lender so
directs at any time after an Event of Default, no discount, credit or allowance
shall be granted by Borrower to any Account Debtor and no return of goods shall
be accepted by Borrower without Lender’s written consent.

8.          Warranty as to Collateral.  Borrower warrants that:

             (a)         all
Receivables listed in Borrower’s financial statements or schedules will, when
Borrower delivers such financial statements or the schedules to Lender, be bona
fide existing obligations created by the sale and actual delivery of goods or
the rendition of services to Account Debtors in the ordinary course of
business, which Borrower then owns free of any Security Interest except for the
Security Interest in favor of Lender created by this Agreement and which are
then unconditionally owing to Borrower without defense, offset or counterclaim;
and that all shipping or delivery receipts, invoice copies and other documents
furnished to Lender in connection therewith will be genuine; and

             (b)        all
Inventory and Equipment is and shall be owned by Borrower, free of any Security
Interest except for the Security Interest of Lender created by this Agreement
or Security Interests permitted by Paragraph 18(d).

Lender’s
rights to and security interest in the Collateral will not be impaired by the
ineligibility of any such Collateral for Advances and will continue to be
effective until all Obligations chargeable to Borrower’s loan account have been
fully satisfied.

             9.          Power
of Attorney.  Borrower appoints
Lender, or any other person whom Lender may from time to time designate, as
Borrower’s attorney with power: (a) to endorse Borrower’s name on any checks,
notes, acceptances, drafts or other forms of payment or security that may come
into Lender’s possession; (b) to sign Borrower’s name on any invoice or bill of
lading relating to any Receivables, on drafts against Account Debtors, on
schedules and confirmatory assignments of Receivables, on notices of
assignment, financing statements and amendments under the Commercial Code and
other public records, on verifications of Receivable and on notices to Account
Debtors; (c) to notify the post office authorities to change the address for
delivery of Borrower’s mail to an address designated by Lender; (d) to receive,
open and dispose of all mail addressed to Borrower; (e) to send requests for
verification of  Receivables to Account
Debtors; and (f) to do all things necessary to carry out this Agreement.  Borrower ratifies and approves all acts of
the attorney taken within the scope of this power-of-attorney.  Neither Lender nor the attorney will be
liable for any acts of commission or omission nor for any error in judgment or
mistake of fact or law.  This power,
being coupled with an interest, is irrevocable so long as any Receivable in
which Lender has a security interest or any Obligation remains unpaid.  Borrower waives presentment and protest of
all instruments and notice thereof, notice of default and dishonor and all
other notices to which Borrower may otherwise be entitled.

             10.        Location
of Collateral.  Borrower warrants
that its chief executive office is at the address stated in the opening
paragraph of this Agreement and that its books and records concerning
Receivables are located there. 
Borrower’s Inventory, Equipment and other goods are at the location or
locations as designated on Schedule A annexed hereto.  Borrower shall immediately notify Lender if
any additional locations for Collateral are subsequently established.  Borrower shall not change the location of its
chief executive office, the place where it keeps its books and records, or the
location of any Collateral (except for sales of Inventory or obsolete Equipment
in the ordinary course of business) until Borrower has obtained the written
consent of Lender and all necessary filings have been made and other actions
taken to continue the perfection of Lender’s Security Interest in such new
location.  Lender’s Security Interest
attaches to all the Collateral wherever located, and the failure of Borrower to
inform Lender of the location of any item or items of Collateral shall not
impair Lender’s Security Interest therein.

             11.        Ownership
and Protection of Collateral. 
Borrower warrants, represents and covenants to Lender that the
Collateral is now and, so long as Borrower is obligated to Lender, will be,
owned by Borrower free and clear of all Security Interests except for the
Security Interest in favor of Lender created by this Agreement and except the
Security Interests, if any, permitted by Paragraph 18(d).  Borrower will not sell, lease or otherwise
dispose of the Collateral, or attempt so to do (except for sales of Inventory
or obsolete Equipment in the ordinary course of business) without the prior
written consent of Lender and unless the proceeds of any such sale are paid to
Lender for application on Borrower’s Obligations.  After the occurrence of a Default or an Event of Default, Lender
will at all times have the right to take physical possession of any tangible
Collateral and to maintain such possession on Borrower’s premises or to remove
the same or any part thereof to such other places as Lender may wish.  If Lender exercises Lender’s right to take
possession of such Collateral, Borrower shall on Lender’s demand, assemble the
same and make it available to Lender at a place reasonably convenient to Lender.  Borrower shall at all times keep the
Equipment constituting Collateral in good condition and repair.  All expenses of protecting, storing,
warehousing, insuring, handling and shipping of the Collateral, all costs of
keeping the Collateral free of any Security Interests prohibited by this
Agreement and of removing the same if they should arise, and any and all
excise, property, sales and use taxes imposed by any state, federal or local
authority on any of the Collateral or in respect of the sale thereof, shall be
borne and paid by Borrower and if Borrower fails to promptly pay any thereof
when due, Lender may, at its option, but shall not be required to, pay the same
and charge Borrower’s loan account therefor. 
Borrower agrees to renew all insurance required by this Paragraph 11 or
Paragraph 13 at least 30 days prior to its expiration.

             12.        Perfection
of Security Interest.  Borrower
agrees to execute such financing statements together with any and all other
instruments or documents and take such other action, including delivery, as may
be required to create, evidence, perfect and maintain Lender’s Security
Interest in the Collateral and Borrower shall not in any manner do any act or
omit to do any act which would in any manner impair or invalidate Lender’s
Security Interest in the Collateral or the perfection thereof.

             13.        Insurance.  Borrower shall maintain insurance coverage
on any Collateral including Receivables and other rights to payment with such
companies, against such hazards, and in such amounts as may from time to time
be acceptable to Lender and shall deliver such policies or copies thereof to
Lender with satisfactory lender’s loss payable endorsements naming Lender.  Each policy of insurance shall contain a
clause requiring the insurer to give not less than 30 days prior written notice
to Lender in the event of any anticipated cancellation of the policy for any
reason and a clause that the interest of Lender shall not be impaired or
invalidated by any act or neglect of Borrower nor by the occupation of the
premises wherein such Collateral is located for purposes more hazardous than
are permitted by said policy.  Borrower
will maintain, with financially sound and reputable insurers, insurance with
respect to its properties and business against such casualties and
contingencies of such types (which may include, without limitation, public and
product liability, larceny, embezzlement, or other criminal misappropriation
insurance) and in such amounts as may from time to time be required by Lender.

             14.        Borrower’s
Loan Account.  Lender may charge to
Borrower’s loan account at any time the amounts of all Obligations (and
interest, if any, thereon) owing by Borrower to Lender, including (without
limitation) the Loans, debts, liabilities, obligations acquired by purchase,
assignment or participation and all other obligations, whenever arising,
whether absolute or contingent and whether due or to become due; also the
amount of all costs and expenses and all attorneys’ fees and legal expenses
incurred in connection with efforts made to enforce payment of such
obligations, or to obtain payment of any Receivables, or the foreclosure of any
Collateral or in the prosecution or defense of any actions or proceedings
relating in any way to this Agreement whether or not suit is commenced,
including reasonable attorneys’ fees and legal expenses incurred in connection
with any appeal of a lower court’s order or judgment; and also the amounts of
all unpaid taxes and the like, owing by Borrower to any governmental authority
or required to be deposited by Borrower, which Lender pays or deposits for
Borrower’s account.   All sums at any
time standing to Borrower’s credit on Lender’s books and all of Borrower’s
property at any time in Lender’s possession or upon or in which Lender has a
Security Interest, may be held by Lender as security for all obligations which
are chargeable to Borrower’s loan account. 
Subject to the foregoing, Lender, at Borrower’s request, will remit to
Borrower any net balance standing to Borrower’s credit on Lender’s books.  Lender will account to Borrower monthly and
each monthly accounting will be fully binding on Borrower, unless, within
thirty days thereafter, Borrower gives Lender specific written notice of exceptions.  All debit balances in Borrower’s loan
account will bear interest as provided in Paragraph 5 of this Agreement. In any
event, Borrower covenants to pay all Loans, debts, accounts and interest when
due.

             15.        Participations.
If any Person shall acquire a participation in any Loan made to Borrower
hereunder, Borrower hereby grants to any such Person holding a participation,
and such Person shall have and is hereby given a continuing Security Interest
in any money, securities and other property of Borrower in the custody or
possession of such Participant, including the right of set-off as fully as if
such Participant had lent directly to Borrower the amount of such
participation.

             16.        General
Representations and Warranties.  To
induce Lender to make Advances and the Term Loans hereunder,  Borrower makes the following representations
and warranties, all of which shall survive the occurrence of the Closing Date,
the making of the initial Advance and the Term Loans:

             (a)         Borrower
is a corporation duly organized, existing, and in good standing under the laws
of the State of Minnesota, has power to own its property and to carry on its
business as now conducted, and is duly qualified to do business in all states
in which the nature of its business requires such qualification.

             (b)        The
execution and delivery of this Agreement and the other Loan Documents and the
performance by Borrower of its obligations hereunder and thereunder do not and
will not conflict with any provision of law, or of the charter or bylaws of
Borrower, or of any agreement binding upon Borrower.

             (c)         The
execution and delivery of this Agreement and the other Loan Documents have been
duly authorized by all necessary official action by the Board of Directors and
shareholders of Borrower; and this Agreement and the other Loan Documents have
in fact been duly executed and delivered by Borrower and constitute its lawful
and binding obligations, legally enforceable against it in accordance with
their respective terms.

             (d)        Except
as set forth on Schedule H attached hereto, there is no action,
suit or proceeding at law or equity, or before or by any federal, state, local
or other governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, pending or, to the knowledge of Borrower,
threatened against Borrower or the property of Borrower which, if determined
adversely, would be a Material Adverse Occurrence or would affect the ability
of Borrower to perform its obligations under the Loan Documents; and the
Borrower is not in default with respect to any final judgment, writ,
injunction, decree, rule or regulation of any court or federal, state, local or
other governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, where the effect of such default would be
a Material Adverse Occurrence.

             (e)         The
authorization, execution and delivery of this Agreement, and the payment of the
Loans and interest thereon, is not, and will not be, subject to the
jurisdiction, approval or consent of any federal, state or local regulatory
body or administrative agency.

             (f)         Except
as set forth on Schedule B attached hereto, all of the assets of
Borrower are free and clear of Security Interests.

             (g)        Borrower
has filed all federal, state and local tax returns which, to the knowledge of
Borrower, are required to be filed, and Borrower has paid all taxes shown on
such returns and all assessments which are due.  Borrower has made all required withholding deposits.  No federal income tax returns of Borrower
have been examined and approved or adjusted by the applicable taxing
authorities or closed by applicable statutes for any prior  fiscal year. Borrower does not have
knowledge of any objections to or claims for additional taxes by federal, state
or local taxing authorities for subsequent years which would be a Material
Adverse Occurrence.

             (h)        Borrower
has furnished to Lender the  financial
statements described on Schedule C attached hereto.  These statements were prepared in accordance
with GAAP and present fairly the financial condition of Borrower and its
consolidated Subsidiaries.  There has
been no material adverse change in the condition of Borrower, financial or
otherwise, since the date of the most recent of such financial statements.

             (i)          The
value of the assets and properties of Borrower at a fair valuation and at their
then present fair salable value is and, after giving effect to any pending
Advance and the application of the amount advanced, will be materially greater
than its total liabilities, including Contingent Obligations, and Borrower has
(and has no reason to believe that it will not have) capital sufficient to pay
its liabilities, including Contingent Obligations, as they become due.

             (j)          Borrower
is in compliance with all requirements of law relating to pollution control and
environmental regulations in the respective jurisdictions where Borrower is
presently doing business or conducting operations except where the failure to
comply does not constitute a Material Adverse Occurrence.

             (k)         All
amounts obtained pursuant to Advances will be used for Borrower’s working
capital purposes or to fund Borrower’s capital expenditures.  The Term Loan A proceeds will be used solely
to partially finance the Project Costs. The Term Loan B proceeds will be used
to finance certain of the Capital Expenditures made by Borrower during its 2000
fiscal year. No part of any Loan shall be used at any time by Borrower to
purchase or carry margin stock (within the meaning of Regulation U promulgated
by the Board of Governors of the Federal Reserve System) or to extend credit to
others for the purpose of purchasing or carrying any margin stock.  Borrower is not engaged principally, or as
one of its important activities, in the business of extending credit for the purposes
of purchasing or carrying any such margin stock.  No part of the proceeds of any Loan will be used by Borrower for
any purpose which violates, or which is inconsistent with, any regulations
promulgated by the Board of Governors of the Federal Reserve System.

             (l)          Except
for the trademarks, patents, copyrights and franchise rights listed on Schedule
D attached hereto, Borrower is not the owner of any patent, trademark,
copyright or franchise rights.  Borrower
is not an “investment company”, or an “affiliated person” of, or a “promoter”
or “principal underwriter” for, an “investment company”, as such terms are
defined in the Investment Company Act of 1940, as amended.  The making of the Loan, the application of
the proceeds and repayment thereof by Borrower and the performance of the
transactions contemplated by this Agreement will not violate any provision of
said Act, or any rule, regulation or order issued by the Securities and
Exchange Commission thereunder.

             (m)        (i)
Each Plan is in compliance in all material respects with all applicable
provisions of ERISA and the Code; (ii) the aggregate present value of all
accrued vested benefits under all Plans (calculated on the basis of the
actuarial assumptions specified in the most recent actuarial valuation for such
Plans) did not exceed as of the date of the most recent actuarial valuation for
such Plans the fair market value of the assets of such Plans allocable to such
benefits; (iii) Borrower is not aware of any information since the date of such
valuations which would materially affect the information contained therein;
(iv) no Plan which is subject to Part 3 of Subtitle B of Title I of ERISA or
Section 412 of the Code has incurred an accumulated funding deficiency, as that
term is defined in Section 302 of ERISA or Section 412 of the Code (whether or
not waived); (v) no liability to the PBGC (other than required premiums which
have become due and payable, all of which have been paid) has been incurred
with respect to any Plan, and there has not been any Reportable Event which
presents a material risk of termination of any Plan by the PBGC; and (vi)
Borrower has not engaged in a transaction which would subject it to tax,
penalty or liability for prohibited transactions imposed by ERISA or the
Code.  Borrower does not contribute to
any Multiemployer Plan.

             (n)        Bruce
Hendry directly or indirectly controls the number of shares and classes of the
capital stock of Borrower and partnership interests in MBLP set forth on Schedule
E attached hereto and except as set forth on said Schedule E, no
other Person directly or indirectly controls 5% or more of any class of the
Borrower’s capital stock.  Borrower has
not: (i) issued any unregistered securities in violation of the registration
requirements of Section 5 of the Securities Act of 1933, as amended, or any
other law; or (ii) violated any rule, regulation or requirement under the
Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as
amended, in either case where the effect of such violation would be a Material
Adverse Occurrence.  No proceeds of the
Advances will be used to acquire any security in any transaction which is
subject to Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as
amended.

             (o)        Except
as set forth on Schedule F attached hereto, Borrower does not have
any Contingent Obligations.

             (p)        All
factual information heretofore or herewith furnished by or on behalf of
Borrower to Lender for purposes of or in connection with this Agreement or any
transaction contemplated hereby is, and all other such factual information
hereafter furnished by or on behalf of Borrower to Lender will be, true and
accurate in every material respect on the date as of which such information is
dated or certified and no such information contains any material misstatement
of fact or omits to state a material fact or any fact necessary to make the
statements contained therein not misleading.

             (q)        Each
representation and warranty shall be deemed to be restated and reaffirmed to
Lender on and as of the date of the making of each Advance and each
disbursement of any Term Loan proceeds under this Agreement except that any
reference to the financial statements referred to in Paragraph 16(h) shall be
deemed to refer to the financial statements then most recently delivered to
Lender pursuant to Paragraphs 17(a)(i) and (ii).

             (r)         The
un-advanced balance  of  the Term Loan A Commitment equals or exceeds
the  total of all remaining unpaid
Project Costs.

17.        Affirmative Covenants.  Borrower agrees that it will do all of the
following:

(a)         Furnish to Lender in form satisfactory
to Lender:

             (i)          Within
90 days after the end of each fiscal year of Borrower, a complete audited
financial report prepared and certified without qualification or explanatory
language by Independent Public Accountants; together with a copy of the
management letter or memorandum, if any, delivered by such Independent Public
Accountants to Borrower and Borrower’s response thereto.  If Borrower shall fail to supply the report
within such time limit, Lender shall have the right (but not the duty) to
employ certified public accountants acceptable to Lender to prepare such report
at Borrower’s expense.

             (ii)         Within 20 days after the end of each month, a balance sheet
and operating figures as to that month and year-to date prepared in accordance
with GAAP on a Consolidated and consolidating basis for Borrower and any
Consolidated Subsidiaries of Borrower and certified as correct by the
Borrower’s chief financial officer or treasurer but subject to adjustments as
to inventories or other items to which an officer of Borrower directs attention
in writing.

             (iii)        With the financial statements described in Paragraph 17(a)(i)
and (ii), a compliance certificate in the form attached as Exhibit D (a
“Compliance Certificate”) certified as true and accurate by the Borrower’s
chief financial officer or treasurer.

             (iv)       By no later than 12:00 noon on Tuesday of each week, a
Borrowing Base Certificate in the form attached as Exhibit E (a
“Borrowing Base Certificate”) showing the relevant information for the Borrower
as of the end of  business on the last
Business Day of the preceding week, each Borrowing Base Certificate shall be
accompanied by such  supporting reports
such as, but not limited to, any Receivables aging, inventory certificate and
sales reports and collection 
reports  required by the Lender
and the Borrowing Base Certificate and such supporting reports shall be in form
and content acceptable to the Lender and certified as accurate by the
Borrower’s chief financial officer or treasurer.

             (v)        Within
15 days after the end of each month, (A) a detailed aging of all  Receivables by invoice, including, without
limitation, a reconciliation to the aging report delivered to the Lender for
the preceding month, (b) a certification of ineligible Accounts Receivable, (c)
an aging of all accounts payable as of the end of the preceding month, and (d)
a reconciliation of Receivables to the Borrower’s general ledger and Lender’s
records, each in form and content acceptable to the Lender.

             (vi)       Within 15 days after the end of each month, an Inventory
certification report for all Inventory locations in form and content acceptable
to Lender  and certified as true and
accurate by  the Borrower’s chief
financial officer or treasurer.

             (vii)      By no later than April 30, of each year, projections for
Borrower’s then current fiscal year consisting of projected month–end
balance sheets and month–end and year–to–date statements of
earnings and cash flows, all in a form acceptable to Lender and certified
by  Borrower’s chief financial officer
or treasurer as having been prepared in good faith and representing the most
probable course of   Borrower’s business
during such fiscal year.

             (viii)     Immediately upon and in any event within five (5) days after any
officer of Borrower becomes aware of any Default or Event of Default, a notice
describing the nature thereof and what action 
Borrower proposes to take with respect thereto

             (ix)        As soon as available and in event within ten (10) days after
the filing thereof, a copy of each report filed with the Securities and
Exchange Commission.

             (x)         Immediately
upon becoming aware of the occurrence, with respect to any Plan, of any
Reportable Event or any “prohibited transaction” (as defined in Section 4975 of
the Code), a notice specifying the nature thereof and what action the Borrower
proposes to take with respect thereto, and, when received, copies of and notice
from PBGC of intention to terminate or have a trustee appointed for any Plan.

             (xi)        From time to time, at Lender’s  request, any and all other material, reports, information, or
figures required by Lender.

             (b)        Permit
Lender and its representatives access to, and the right to make copies of, the
books, records, and properties of Borrower at all reasonable times and
reimburse the Lender for all examination fees and expenses incurred in
connection with such examinations at its then current rate for such services
(currently $70.00 per hour or portion thereof) and for its out-of-pocket
expenses incurred in connection therewith; 
provided, however that 
so long as no Default or Event of Default has occurred and is
continuing, Borrower’s obligations to pay for such inspections and/or audits
shall not exceed $2,500.00  per calendar
year plus its out-of-pocket expenses incurred in connection therewith with the
initial survey fees not counting against the annual cap in the first calendar
year; and permit Lender and its representatives to discuss Borrower’s financial
matters with officers of Borrower and with its independent certified public
accountant (and, by this provision, Borrower authorizes its independent
certified public accountant to participate in such discussions).

             (c)         Pay
when due all taxes, assessments, and other liabilities against it or its
properties except those which are being contested in good faith so long as the
Borrower’s title to its property is not materially adversely affected, its use
of such property in the ordinary course of its business is not materially
interfered with and adequate reserves with respect thereto have been set aside
on the Borrower’s books in accordance with GAAP.

             (d)        Promptly
notify Lender in writing of any substantial change in present management of
Borrower.

             (e)         Pay
when due all amounts necessary to fund in accordance with its terms any Plan.

             (f)         Comply
in all material respects with all laws, acts, rules, regulations and orders of
any legislative, administrative or judicial body or official applicable to
Borrower’s business operation or Collateral or any part thereof; provided,
however, that Borrower may contest any such law, act, rule, regulation
or order in good faith by appropriate proceedings so long as (i) Borrower first
notifies Lender of such contest, and (ii) such contest does not, in Lender’s
sole discretion, adversely affect Lender’s right or priority in the Collateral
or impair Borrower’s ability to pay the Obligations when due.

             (g)        Promptly
notify Lender in writing of: (x) any litigation which: (i) involves
an amount in dispute in excess of $25,000.00; (ii) relates to the matters which
are the subject of this Agreement; or (iii) if determined adversely to
Borrower would be a Material Adverse Occurrence; and (y) any adverse
development in any litigation described in clause (x).

             (h)        Maintain
all of Borrower’s primary operating accounts at Bremer Bank, National
Association.

             (i)          Maintain,
at each Measurement Date commencing with the Measurement Date occurring on
March 31, 2002, the Borrower’s Current Ratio at not less than 1.05 to 1.0.

             (j)          Maintain,
at each Measurement Date, the Borrower’s Interest Coverage  Ratio at not less than 2.0 to 1.0.

             (k)         Maintain,
at each Measurement Date, the Borrower’s Capital Base at not less than: (i)
$3,500,000.00  during the Borrower’s
2001 fiscal year; or (ii) during any fiscal year thereafter, the greater of:
(1) the Borrower’s Capital Base at the beginning of the immediately preceding
fiscal year; or (2) the sum of: (i) the preceding fiscal year’s Capital
Base  requirement calculated in
accordance with this Paragraph 17(k); plus (ii) 50% of the Borrower’s
Net Income (but without any deductions for losses) during such preceding fiscal
year.

             (l)          Maintain,
at each Measurement Date, the Borrower’s Fixed Charge Coverage Ratio at not
less than 1.25 to 1.0.

             (m)        Maintain,
at each Measurement Date, the Borrower’s Leverage Ratio  at not more than 4.0 to 1.0.

             (n)        At
all times, keep Lender advised of the name of each vendor,  contractor or sub-contractor for the Project
and of the type of work, material or services and the dollar amount covered by
their respective contracts with Borrower or any of Borrower’s other vendors,
contractors or subcontractors.  If
requested by  Lender, Borrower shall
also furnish to the Lender a copy of each contract with each of the vendors,
contractors or sub–contractors.

             (o)        Expeditiously
complete the Project  in a good and
workmanlike manner in accordance with the Borrower’s requirements and the
contracts and  subcontracts therefor, in
compliance with all applicable governmental requirements, so that Completion of
the Project occurs on or before the Completion Deadline.  Borrower shall correct or cause to be
corrected any departure in the construction of the Project from  the Borrower’s requirements and the
contracts and  subcontracts therefor or
from governmental requirements.

             (p)        Deliver
to Lender revised actual and estimated Project Costs showing changes in or
variations from the  Project Costs set
forth on the Approved Project Budget as then most recently revised with any
prior written consent of Lender as soon as such changes or variations  are known to Borrower.  At Lender’s request,  Borrower shall furnish  Lender with copies of all changes or
modifications in the contracts or subcontracts for the Project, prior to
incorporation of any such change or modification into the Project, whether or
not  Lender’s consent to such change or
modification is required.  Borrower
shall not make or consent to any change or modification in the contracts or
subcontracts, and no work shall be performed with respect to any such change or
modification, without the prior written consent of Lender, if such change or
modification affects any of the Equipment shown on Part II of Schedule J.

             (q)        Upon
Completion of the Project, and prior to the final disbursement of the Term Loan
A proceeds to pay for Project Costs, and as a condition of the same, furnish
the Lender with all items required to evidence Completion.

             (r)         So
long as Term Loan A is outstanding, either cause  the bank issuing the Project Letter of Credit to extend the
expiration date thereof for at least a succeeding one year period within 60
days prior to the then current expiration date thereof or deliver a replacement
Project Letter of Credit not later than 10 Business Days prior to the end
of  such 60 day period; provided,
however, that Borrower’s failure to do so shall not be deemed to be an
Event of Default hereunder if the relevant 
issuing bank timely honors Lender’s draw on the Project Letter of Credit
resulting from Borrower’s failure to comply with this Paragraph 17(r) and the
proceeds of such draw are applied to prepay the corresponding outstanding
principal amount of Term Loan A. The Lender agrees to make a draw on the
Project Letter of Credit for the full amount thereof or, if less,  the outstanding principal amount and accrued
unpaid interest on Term Loan A.  The
Borrower specifically authorizes the Lender to apply the proceeds of such draw
to such prepayment and amounts so prepaid shall be applied to installments due
on the Term Note A in the inverse order of their maturities.

             18.        Negative
Covenants.  Borrower agrees that it
will not do any of the following, without first obtaining Lender’s prior
written consent:

             (a)         Expend
or contract to expend for fixed assets in any fiscal year of Borrower an
aggregate amount in excess of $750,000.00 (exclusive of Project Costs) whether
by way of purchase, lease or otherwise, and whether payable currently or in the
future.

             (b)        Purchase
or redeem  any shares of Borrower’s
capital stock; or declare or pay any dividends (other than dividends payable in
capital stock); or make any distribution to stockholders of any assets of
Borrower.

             (c)         Incur
or permit to exist any interest-bearing indebtedness, secured or unsecured,
including without limitation, indebtedness for money borrowed or capitalized
leases, except (i) borrowings under this Agreement; (ii) borrowings, if any,
which are existing on the date of this Agreement and which are disclosed on Schedule
G attached hereto; or (iii) indebtedness, not exceeding $750,000.00 at any
one time in the aggregate outstanding incurred to acquire fixed assets but only
to the extent that such fixed asset acquisition is permitted by Paragraph 18(a)
and does not comprise a Project Cost.

             (d)        Create
or permit to exist any Security Interest on any Collateral now owned or
hereafter acquired except: (i) those created in Lender’s favor and held by
Lender; (ii) liens of current taxes not delinquent or taxes which are
being contested in good faith for which an adequate reserve has been
established; (iii) purchase money security interests securing indebtedness
permitted by Paragraph 18(c)(iii); provided, however, that such
Security Interest extends only to the fixed assets acquired with the proceeds
of such indebtedness and secures only such indebtedness; and (iv) Security
Interests disclosed on Schedule B attached hereto, securing only debt
outstanding on the date of this Agreement and disclosed on Schedule G.

             (e)         Effect
any recapitalization; or be a party to any merger or consolidation; or sell,
transfer, convey or lease all or any substantial part of its property; or sell
or assign (except to Lender), with or without recourse, any Receivables or
General Intangibles.

             (f)         Enter
into a new business or purchase or otherwise acquire any business enterprise or
any substantial assets of any person or entity; or make any loans to any person
or entity except for loans and advances to officers for expenses to be incurred
in the ordinary course of business so long as the aggregate outstanding
principal amount thereof does not exceed the amount permitted by Paragraph
18(g) at any time; or purchase any shares of stock of, or similar investment
in, any entity.

             (g)        Permit  more than $10,000.00 to be owing at any one
time to Borrower by all of Borrower’s employees, officers, directors, or
shareholders, or members of their families, as a result of any borrowings,
purchases, travel advances or other transactions or events.

             (h)       
Become a guarantor or surety or pledge its credit or its assets on any
undertaking of another except for that certain guaranty dated as of March 29,
1999, made by the Borrower in favor of Stearns Bank National Association to
guarantee the payment of the obligations of Gopher  so long as: (i) the aggregate outstanding principal amount of the
guarantied indebtedness does not exceed $16,300,000.00 at any time; and/or (ii)
such guaranty is not amended, modified or supplemented subsequent to the date
of this Agreement to impose any greater financial burden on the Borrower than
exists on the date of this Agreement.

             (i)          In
any fiscal year pay excessive or unreasonable salaries, bonuses, fees,
commissions, fringe benefits or other forms of compensation (such salaries,
bonuses, fees, commissions, fringe benefits or other forms of compensation
being “Compensation”) to any of its officers or directors; or, if any Default
or Event of Default has occurred and is continuing, increase the Compensation
of any officers or directors.

             (j)          Make
any substantial change in present management or policy or in its present
business or enter into a new business.

             (k)         Enter
into any agreement providing for the leasing by Borrower of property which has
been or is to be sold or transferred by Borrower to the lessor thereof, or
which is substantially similar in purpose to the property so sold or transferred.

             (l)          Change
its terms of trade with respect to the due date of any Receivable.

             (m)        Change
its fiscal year.

             (n)        (i)
Permit or suffer any Plan maintained for employees of Borrower or any commonly
controlled entity to engage in any transaction which results in a liability of
Borrower under Section 409 or 502(i) of ERISA or Section 4975 of the Code; (ii)
permit or suffer any such Plan to incur any “accumulated funding deficiency”
(within the meaning of Section 302 of ERISA and Section 412 of the Code),
whether or not waived; (iii) terminate, or suffer to be terminated, any Plan
covered by Title IV of ERISA maintained by Borrower or any commonly controlled
entity or permit or suffer to exist a condition under which PBGC may terminate
any such Plan; or (iv) permit to exist the occurrence of any Reportable Event
(as defined in Title IV of ERISA) which represents termination by the PBGC of
any Plan.

             (o)        Either:
(i) Enter into any transaction with any Affiliate of Borrower upon terms and
conditions less favorable to Borrower than the terms and conditions which would
apply in a similar transaction with an unrelated third party; or (ii) amend,
modify or supplement any provision of, or waive any other party’s compliance
with any of the terms of, the Facilities and Services Sharing Agreement dated
as of March 29, 1999, between the Borrower and Gopher or of the Lease dated as
of March 29, 1999, between Gopher, as landlord,  and the Borrower, as tenant, covering the Borrower’s premises at
882 West Seventh Street, St. Paul, MN, which: (A) requires the Borrower to pay
any additional consideration under such agreement or otherwise imposes any
financial obligation or burden on the Borrower; (B) could result in an Adverse
Event; or (C) is materially adverse to the rights and benefits of the Lender
under the Loan Documents.

             (p)        Enter
into, or permit to exist,  any
agreement, bond, note or other instrument with or for the benefit of any Person
other than the Lender which  would (i)
prohibit the Borrower from granting, or otherwise limit the ability of the
Borrower to grant, to the Lender any Security Interest on any assets or
properties of the Borrower,  (ii)
require the Borrower to grant a Security Interest to any other Person if the
Borrower grants any Security Interest to the Lender (iii) be violated or
breached by Borrower under any Loan Document or by the performance by Borrower
of its obligations under any Loan Document.

             (q)        (i)
Make any payment of, or purchase, redeem, or acquire, any Subordinated Debt
except as permitted by the Subordination Agreement pertaining to such
Subordinated Debt; (ii) give security for all or any part of any
Subordinated Debt; (iii) take or omit to take any action whereby the
subordination of any Subordinated Debt or any part thereof to the
Obligations  might be terminated,
impaired or adversely affected; (iv) settle, compromise, discharge or
otherwise reduce the outstanding principal amount of any Subordinated Debt or
exercise any right to convert the Subordinated Debt to equity except for
payments made on such Subordinated Debt in accordance with the Subordination
Agreement pertaining thereto; or (v) omit to give the Lender prompt
written notice of any default or event which, with the giving of notice or
lapse of time, would constitute a default under any other agreement or
instrument relating to any Subordinated Debt.

             19.        Availability
of Collateral.  Lender may from time
to time, for its convenience, segregate or apportion the Collateral for
purposes of determining the amounts and maximum amounts of Loans which may be
made hereunder.  Nevertheless, Lender’s
security interest in all such Collateral, and any other collateral rights,
interests and properties which may now or hereafter be available to Lender,
shall secure and may be applied to the payment of any and all loans, Advances,
and other Obligations secured by Lender’s Security Interest, in any order or
manner of application and without regard to the method by which Lender
determines to make Advances hereunder.

             20.        Default
and Remedies.  It shall be an Event
of Default under this Agreement if:

             (a)         Borrower
fails to make any payment required under this Agreement or any present or
future supplements hereto or under any other agreement between Borrower and
Lender when due, or if payable upon demand, upon demand; or

             (b)        Borrower
fails to perform or observe any covenant, condition or agreement contained in
this Agreement or any Loan Document on its part to be performed (other than
those failures covered by other subparagraphs of this Paragraph) and such
default shall continue for a period of 30 days after whichever of the following
dates is the earliest:  (i) the date the
Borrower gives notice of such failure to the Lender, (ii) the date the Borrower
should have given notice of such failure to the Banks pursuant to Paragraph
17(a)(viii);or (iii) the date the Lender gives notice of such failure to the
Borrower; or

             (c)         Any
warranty, representation or statement made or furnished to Lender by or on
behalf of Borrower proves to have been false in a material respect  when made; or

             (d)        A
proceeding seeking an order for relief under the Bankruptcy Code is commenced
by or against Borrower; or

             (e)         Borrower
becomes insolvent or generally fails to pay, or admit in writing its  inability to pay, its debts as they become
due; or

             (f)         Borrower
applies for, consents to, or acquiesces in, the appointment of a trustee,
receiver or other custodian for it or for any of its property, or makes a
general assignment for the benefit of creditors; or, in the absence of such
application, consent or acquiescence, a trustee, receiver or other custodian is
appointed for Borrower or for a substantial part of Borrower’s property; or

             (g)        Any
other reorganization, debt arrangement, or other case or proceeding under any bankruptcy
or insolvency law, or any dissolution or liquidation proceeding is commenced in
respect of Borrower; or

             (h)        Borrower
takes any action to authorize, or in furtherance of, any of the events
described in the foregoing clauses (d) through (g); or

             (i)          Any
judgments, writs, warrants of attachment, executions or similar process (not
covered by insurance) is issued or levied against Borrower or any of its assets
in excess of an aggregate amount of $50,000.00 for any or all of such
judgments, writs, warrants, executions or similar process and is not released,
vacated or fully bonded prior to any sale and in any event within 90 days after
its issue or levy; or

             (j)          Borrower
shall fail to comply with Paragraph 13, any of Paragraphs 17(a),  (c), 
(i), (j) or  (k) through (r)
(both inclusive) or any of Paragraphs 18(a) through (q) (both inclusive); or

             (k)         The
maturity of any indebtedness of the Borrower (other than indebtedness under
this Agreement or the other Loan Documents) shall be accelerated, or Borrower
shall fail to pay any such indebtedness when due or, in the case of such
indebtedness payable on demand; or

             (l)          Any
Change of Control shall occur except that if the Change of Control occurs under
subsection (b) of the definition of “Change of Control”, then no Event of
Default under this Paragraph 20(l)shall be deemed to have occurred if, within
60 days after the occurrence of such Change of Control,  Borrower appoints a successor thereto
acceptable to Lender, in its sole discretion, or: (ii) if an acceptable
successor is not timely appointed, Borrower pays all Obligations in full and
terminates this Agreement within 120 days after the occurrence of such Change
of Control; provided, however, that such Change of Control shall
constitute a Default during such 120 day period; or

             (m)        Any
Key Officer fails to perform or observe any covenant, condition or agreement
contained in his  Support  Agreement 
on his part to be performed; or

             (n)        Any
Material Adverse Occurrence shall occur; or

             (o)        Work
on the Project shall be substantially abandoned, or shall by reason of
Borrower’s fault, be unreasonably delayed or discontinued for a period of ten
(10) days, or construction shall be delayed for any reason whatsoever to the
extent that  the Project cannot, in the
reasonable judgment of the Lender, be accomplished prior to the Completion
Deadline; or

             (p)       
Lender determines that the remaining un-advanced balance of the Term Loan
Commitment  is insufficient to fully pay
all of the then unpaid Project Costs 
and Borrower  fails to deposit
with the Lender, within five (5) Business Days after demand, sufficient funds
to cover such deficiency.

Upon
the occurrence of any Event of Default described in Paragraphs 20(d), (e), (f),
(g) or (h), all Obligations shall be and become immediately due and payable
without any declaration, notice, presentment, protest, demand or dishonor of
any kind (all of which are hereby waived) and Borrower’s ability to obtain any
additional Advance or any additional proceeds of any Term Loan under this
Agreement shall be immediately and automatically terminated.  Upon the occurrence of any other Event of
Default, Lender, without notice to Borrower, may terminate Borrower’s ability
to obtain any additional Advance or  any
additional proceeds of any Term Loan under this Agreement and may declare all
or any portion of the Obligations to be due and payable, without notice,
presentment, protest or demand or dishonor of any kind (all of which are hereby
waived), whereupon the full unpaid amount of the obligations which shall be so
declared due and payable shall be and become immediately due and payable.  Upon the occurrence of an Event of Default,
Lender shall have all the rights and remedies of a secured party under the
Commercial Code and may require Borrower to assemble the Collateral and make it
available to Lender at a place designated by Lender, and Lender shall have the
right to take immediate possession of the Collateral and may enter any of the
premises of Borrower or wherever the Collateral is located with or without
process of law and to keep and store the same on said premises until sold (and
if said premises be the property of Borrower, Borrower agrees not to charge
Lender or a purchaser from Lender for storage thereof for a period of at least
90 days). Upon the occurrence of an Event of Default, Lender, without further
demand, at any time or times, may sell and deliver any or all of the Collateral
at public or private sale, for cash, upon credit or otherwise, at such prices
and upon such terms as Lender deems advisable, at its sole discretion.  Any requirement under the Commercial Code or
other applicable law of reasonable notice will be met if such notice is mailed
to Borrower at its address set forth in the opening paragraph of this Agreement
at least ten (10) days before the date of sale.  Lender may be the purchaser at any such sale, if it is
public.  The proceeds of sale will be
applied first to all expenses of retaking, holding, preparing for sale, selling
and the like, including attorneys’ fees and legal expenses (whether or not suit
is commenced) including, without limitation, reasonable attorneys’ fees and
legal expenses incurred in connection with any appeal of a lower court’s order
or judgment and second to the payment (in whatever order Lender elects) of all
other obligations chargeable to Borrower’s loan account hereunder.  Subject to the provisions of the Commercial
Code, Lender will return any excess to Borrower and Borrower shall remain
liable to Lender for any deficiency. 
Borrower agrees to give Lender immediate notice of the existence of any
Default or Event of Default.

             21.        Conditions
Precedent to Closing Date.  The
occurrence of the Closing Date and the obligation of Lender to make the initial
Advance or any Term Loan is subject to the condition precedent that Lender
shall have received on or before the Closing Date or the date of the initial
Advance or any Term Loan copies of all of the following, unless waived by
Lender:

             (a)         A
favorable opinion of counsel to Borrower in form and substance satisfactory to
Lender;

             (b)        UCC-1
Financing Statements in a form acceptable to Lender appropriately completed and
duly executed by Borrower;

             (c)         Recent
UCC searches from the filing offices in all states required by Lender which
reflect that no other Person holds a Security Interest in any Collateral of
Borrower, except for Security Interests permitted by Paragraph 18(d);

             (d)        The
Notes, in form and substance satisfactory to Lender, appropriately completed
and duly executed by the Borrower;

             (e)         A
certified copy of all documents evidencing any necessary consent or
governmental approvals (if any) with respect to the Loan Documents or any other
documents provided for in this Agreement;

             (f)         A
certificate by the Secretary or any Assistant Secretary of Borrower certifying
as to: (i) attached resolutions of Borrower’s Board of Directors authorizing or
ratifying the execution, delivery and performance of the Loan Documents to
which Borrower is a party and any other documents provided for by this Agreement,
(ii) the names of the officers of Borrower authorized to sign the Loan
Documents together with a sample of the true signature of such officers, and
(iii) attached bylaws of Borrower;

             (g)        A
copy of Borrower’s articles of incorporation certified by the Secretary of
State;

             (h)        Certificates
of Good Standing for Borrower issued by its state of incorporation and by those
states requested by Lender;

             (i)          Evidence
of insurance for all insurance required by the Loan Documents;

             (j)          An
officer certificate, in form and substance satisfactory to Lender, executed by
the President of Borrower;

             (k)         A
Restricted Access Lockbox; Collateral Account and Disbursement Account
Agreement, substantially in the form provided by the Lender, appropriately
completed and duly executed by Borrower and the bank party thereto;

             (l)          Such
landlord lien waivers and mortgage consents as Lender, in its sole discretion,
may require, in form and substance satisfactory to Lender in its sole
discretion, appropriately completed and duly executed;

             (m)       
An Acknowledgment and Agreement in the form provided by the Lender
appropriately completed and duly executed by Key Officer who has executed and
delivered a Support Agreement;

             (n)        An
Acknowledgment and Agreement in the form provided by the Lender appropriately
completed and duly executed by each holder of Subordinated Debt including,
without limitation,  MBLP and Stearns
Bank National Association;

             (o)        An
Acknowledgment and Agreement in the form provided by the Lender appropriately
completed and duly executed by Stearns Bank National Association, as the party
to an  Intercreditor Agreement dated as
of the date of the Original Agreement;

             (p)        An
origination fee of $50,000.00  in
immediately available funds; and

(q)        Such other approvals, opinions or documents
as Lender may require.

             22.        Conditions
Precedent to All Advances; Etc.  The
occurrence of the Closing Date and the obligation of Lender to make any Advance
(including the initial Advance) or to disburse any proceeds of any Term Loan
shall be subject to the satisfaction of each of the following conditions,
unless waived in writing by Lender:

             (a)         the
representations and warranties of Borrower set forth in this Agreement are true
and correct on the date of such credit extension (and after giving effect to
these then being made); and

             (b)       
No Default, no Event of Default and no Material Adverse Occurrence shall then
have occurred and be continuing on the date of such credit extension or result
therefrom.

             22B.      Additional Conditions Precedent to Term Loan A.  The obligation of Lender to disburse any
proceeds of the Term Loan A is subject to the condition precedent that Lender
shall have received on or before the date of initial disbursement of the Term
Loan A, copies of all of the following, unless waived by Lender:

             (a)         The
Approved Project Budget;

             (b)        The
Project Letter of Credit but only if, after giving effect to the disbursement
of proceeds of Term Loan A, the aggregate principal amount of all such
disbursements would exceed the Term Loan A Commitment excluding the amount
thereof attributable to the Project Letter of Credit;

             (c)         Copies
of all building permits required to complete construction of the Project or
evidence satisfactory to Lender  that
such permits will be obtained;

             (d)        The
Lender shall have obtained a participant 
in the Term Loan A  for not less
than $2,000,000.00 but only if, after giving effect to the disbursement of
proceeds of Term Loan A, the aggregate principal amount of all such
disbursements would exceed the Term Loan A Commitment excluding the amount
thereof attributable to the Project Letter of Credit; and

(e)         Such other approvals, opinions or
documents as Lender may require.

             23.        Termination.  Subject to automatic termination of
Borrower’s ability to obtain additional Advances or additional disbursements of
any Term Loan proceeds  under this
Agreement upon the occurrence of any Event of Default specified in Paragraphs
20(d), (e), (f), (g) or (h) and to Lender’s right to terminate Borrower’s
ability to obtain additional Advances or additional disbursement of any Term
Loan proceeds under this Agreement upon the occurrence of any other Event of
Default, this Agreement shall have a term ending on the Revolving Credit
Termination Date.  Lender’s rights with
respect to outstanding Obligations owing on or prior to the Revolving Credit
Termination Date will not be affected by termination and all of said rights
including (without limitation) Lender’s Security Interest in the Collateral
existing on such Revolving Credit Termination Date or acquired by Borrower
thereafter.

             24.        Grant
of License to Use Patents and Trademarks Collateral.  For the purpose of enabling Lender to
exercise rights and remedies under this Agreement, Borrower hereby grants to
Lender an irrevocable, non-exclusive license (exercisable without payment of
royalty or other compensation to Borrower) to use, license or sublicense any
patent or trademark now owned or hereafter acquired by Borrower and wherever
the same may be located, and including in such license reasonable access to all
media in which any of the licensed items may be recorded or stored and to all
computer and automatic machinery software and programs used for the compilation
or printout thereof.

25.        Miscellaneous.

             (a)         The
performance or observance of any affirmative or negative covenant or other
provision of this Agreement and any supplement hereto may be waived by Lender
in a writing signed by Lender but not otherwise.  No delay on the part of Lender in the exercise of any remedy,
power or right shall operate as a waiver thereof, nor shall any single or
partial exercise of any remedy, power or right preclude other or further
exercise thereof or the exercise of any other remedy, power or right.  Each of the rights and remedies of Lender
under this Agreement will be cumulative and not exclusive of any other right or
remedy which Lender may have hereunder or as allowed by law.

             (b)        Any
notice, demand or consent authorized by this Agreement to be given to Borrower
shall be deemed to be given when transmitted by telex or telecopier or
personally delivered, or three days after being deposited in the U.S. mail,
postage prepaid, or one day after delivery to Federal Express or other
overnight courier service, in each case addressed to Borrower at its address
shown in the opening paragraph of this Agreement, or at such other address as
Borrower may, by written notice received by Lender, designate as Borrower’s
address for purposes of notice hereunder. 
Any notice or request authorized by this Agreement to be given to Lender
shall be deemed to be given when transmitted by telex or telecopier or
personally delivered, or three days after being deposited in the U.S. mail,
postage prepaid, or one day after delivery to Federal Express or other
overnight courier, in each case addressed to Lender at its address shown in the
opening paragraph of this Agreement, or at such other address as Lender may, by
written notice received by Borrower, designate as Lender’s address for purposes
of notice hereunder; provided, however, that any notice to Lender
given pursuant to Paragraph 4A(b), 4B(b) or 4C(b)  shall not be deemed given until received.

             (c)         This
Agreement, including exhibits and schedules and other agreements referred to
herein, is the entire agreement between the parties supersedes and rescinds all
prior agreements relating to the subject matter herein, cannot be changed,
terminated or amended orally, and shall be deemed effective as of the date it
is accepted by Lender.

             (d)        Borrower
agrees to pay and will reimburse Lender on demand for all out-of-pocket
expenses incurred by Lender arising out of this transaction including without
limitation filing and recording fees and attorneys’ fees and legal expenses
(whether or not suit is commenced) incurred in the protection and perfection of
Lender’s security interest in the Collateral, in the enforcement of any of the
provisions of this Agreement or of Lender’s rights and remedies hereunder and
against the Collateral, in the defense of any claim or claims made or
threatened against Lender arising out of this transaction or otherwise,
including, without limitation, in each instance, all reasonable attorneys’ fees
and legal expenses incurred in connection with any appeal of a lower court’s
order or judgment.  Lender is authorized
to deduct any such expenses from any amount due Borrower and/or to add such
expenses to Borrower’s loan account hereunder.

             (e)         Borrower
hereby agrees to indemnify, exonerate and hold Lender and its officers,
directors, employees and agents (the “Indemnified Parties”) free and harmless
from and against any and all actions, causes of action, suits, losses,
liabilities and damages, and expenses in connection therewith including,
without limitation, reasonable attorneys’ fees and disbursements (the
‘Indemnified Liabilities”), incurred by the Indemnified Parties or any of them
as a result of, or arising out of, or relating to:

             (1)         any
transaction financed or to be financed in whole or in part directly or
indirectly with proceeds of any Credit extension hereunder, or

             (2)         the
execution, delivery, performance or enforcement of this Agreement or any
document executed pursuant hereto by any of the Indemnified Parties, except for
any such Indemnified Liabilities arising on account of any Indemnified Party’s
gross negligence or willful misconduct.

If
and to the extent that the foregoing undertaking may be unenforceable for any
reason, Borrower hereby agrees to make the maximum contribution to the payment
and satisfaction of each of the Indemnified Liabilities which is permissible
under applicable law.  The provisions of
this Paragraph shall survive termination of this Agreement.

             (f)         This
Agreement is made under and shall be governed by and interpreted in accordance
with the internal laws of the State of Minnesota, except to the extent that the
perfection of the Security Interest hereunder, or the enforcement of any
remedies hereunder with respect to any particular Collateral, shall be governed
by the laws of a jurisdiction other than the State of Minnesota.  Captions herein are for convenience only and
shall not be deemed part of this Agreement.

             (g)        This
Agreement shall be binding upon Borrower and Lender and their respective
successors, assigns, heirs, and personal representatives and shall inure to the
benefit of Borrower, Lender and the successors and assigns of Lender, except
that Borrower may not assign or transfer its rights hereunder without the prior
written consent of Lender, and any assignment or transfer in violation of this
provision shall be null and void.  In
connection with the actual or prospective sale by Lender of any interest or
participation in the obligations, Borrower authorizes Lender to furnish any
information in its possession, however acquired, concerning Borrower or any of
its Affiliates to any person or entity.

             (h)        Borrower
hereby irrevocably submits to the jurisdiction of any Minnesota state court or
federal court sitting  in Minneapolis or
St. Paul, Minnesota, over any action or proceeding arising out of or relating
to the Agreement, and Borrower hereby irrevocably agrees that all claims in
respect of such action or proceeding may be heard and determined in such
Minnesota State or Federal court. 
Borrower hereby irrevocably waives, to the fullest extent it may
effectively do so, the defense of an inconvenient forum to the maintenance of
such action or proceeding.  Borrower
irrevocably consents to the service of copies of the summons and complaint and
any other process which may be served in any such action or proceeding by the
mailing by United States certified mail, return receipt requested, of copies of
such process to Borrower’s address stated in the preamble hereto.  Borrower agrees that judgment final by
appeal, or expiration of time to appeal without an appeal being taken, in any
such action or proceeding shall be conclusive and may be enforced in any other
jurisdictions by suit on the judgment or in any other manner provided by
law.  Nothing in this Paragraph shall
affect the right of Lender to serve legal process in any other manner permitted
by law or affect the right of Lender to bring any action or proceeding against
Borrower or its property in the courts of any other jurisdiction.  Borrower agrees that, if it brings any
action or proceeding arising out of or relating to this Agreement, it shall
bring such action or proceeding in Hennepin County or Ramsey County, Minnesota.

             (i)          Limitation
of Liability.  Neither the Lender
nor any affiliate of the Lender shall have any liability with respect to, and
Borrower hereby waives, releases and agrees not to sue upon, any claim for any
special, indirect or consequential damages suffered by Borrower in connection
with, arising out of, or in any way related to, this Agreement, any Note or any
other Loan Document, or the transactions contemplated and the relationship
established hereby or thereby, or any act, omission or event occurring in
connection herewith or therewith.

             (j)          Effect
on Original Agreement. On the Closing Date, the Original Agreement shall be
completely amended and restated by this Agreement, and each reference to the
“Credit Agreement,” “Loan Agreement,”“therein,” “thereof,” “thereby,” or words
of like import referring to the Original Agreement in any Loan Document shall
mean and be a reference to the Original Agreement as amended and restated by
this Agreement and the $3,032,243.43 aggregate principal balance of the
“Advances” made thereunder which are outstanding on the Closing Date shall be
deemed to be Advances made hereunder.

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

             IN WITNESS WHEREOF, the parties
have executed this Agreement as of the date first above written.

	 	 
	 	LENDER:
	 	 
	 	BREMER BUSINESS FINANCE CORPORATION
	 	 
	 	By
	 	

	 	Its
	 	

	 	 
	 	 
	 	BORROWER:
	 	 
	 	MBC HOLDING COMPANY
	 	 
	 	By
	 	

	 	ItsPrepared by MerrillDirect

Exhibit 10.2

AMENDMENT NO. 1 TO AMENDED AND RESTATED 

GENERAL CREDIT AND SECURITY AGREEMENT

             THIS AMENDMENT NO. 1 TO AMENDED AND
RESTATED GENERAL CREDIT AND SECURITY AGREEMENT, dated as of May 22, 2001 (the
“Amendment”), by and between MBC Holding Company, a Minnesota
corporation (“Borrower”), and Bremer Business Finance Corporation, a
Minnesota corporation (the “Lender”).

WITNESSETH:

             WHEREAS, Borrower and Lender are
the parties to that certain Amended and Restated General Credit and Security
Agreement dated as of March 29, 2001 (the “Original Agreement”); and

             WHEREAS, Borrower and the Lender
desire to amend the Original Agreement.

             NOW, THEREFORE, in consideration of
the foregoing and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged by the parties hereto, it is agreed as
follows:

             1.          Defined
Terms.  All capitalized
terms used in this Amendment shall, except where the context otherwise
requires, have the meanings set forth in the Original Agreement, as amended
hereby.

             2.          Amendments.  The Original Agreement is hereby amended as
follows:

             (a)         The Original Agreement is generally
amended so that each reference to “Mark Anthony Brands, Inc.” shall be deemed
to be a reference to “Mark Anthony Brewing, Inc. (‘Mark Anthony’).”

             (b)        The definition of “Approved Project
Costs” appearing in Paragraph 2 of the Original Agreement is amended by
changing the reference to Paragraph 17(n) to a reference to Paragraph 17(p).”

             (c)
        Subpart (b)(ii) of the definition
of “Maturity Date” appearing in Paragraph 2 of the Original Agreement is
amended by extending the scheduled Maturity Date of Term Loan A from “April 1,
2006” to “May 1, 2006.”

             (d)        Subpart (b)(iii) of the definition of “Maturity
Date” appearing in Paragraph 2 of the Original Agreement is amended by
shortening the scheduled Maturity Date of Term Loan B from “April 1, 2006” to
“May 1, 2005.”

             (e)         Subparagraph (f) of the definition of “Eligible
Receivables” appearing in Paragraph 2 of the Original Agreement is amended
in its entirety to read as follows:

             “(f)
      it is a valid, legally enforceable
and unconditional obligation of the Account Debtor with respect thereto and is
not subject to setoff, counterclaim, credit or allowance (except any credit
(including without limitation, credits for returned kegs or pallets ) or
allowance which has been deducted in computing the net amount of the applicable
invoice as shown in the original schedule or Borrowing Base Certificate
furnished to Lender identifying or including such Receivable) or adjustment by
the Account Debtor with respect thereto, or to any claim by such Account Debtor
denying liability thereunder in whole or in part, and such Account Debtor has
not refused to accept any of the goods or services which are the subject of
such Receivable or offered or attempted to return any of such goods; provided,
however, that, so long as the Mark Anthony Indemnity Agreement remains
in force and effect, no MHL Receivable shall be an Eligible Receivable under
this subparagraph (f) unless Mark Anthony has accepted the invoice evidencing
such MHL Receivable pursuant to a written acceptance in form and substance
satisfactory to the Lender.”

             (f)         The definitions of “Loan Documents”
and “Measurement Period” appearing in Paragraph 2 of the Original
Agreement are respectively amended in their entireties to read as follows:

             “‘Loan
Document(s)’ shall mean individually or collectively, as the case may be,
this Agreement, the Notes, the Support Agreements, the Project Letter of
Credit, the Collateral Assignment  and
any and all other documents executed, delivered or referred to herein or
therein, as originally executed and as amended, modified or supplemented from
time to time.

             ‘Measurement
Period’ shall mean, at any 
Measurement Date, the Borrower’s four consecutive fiscal quarters ending
on such Measurement Date.”

             (g)        Paragraph 2 of the Original Agreement is
amended by adding the following new definitions in proper alphabetical order:

             “‘Collateral
Assignment’ shall mean the Collateral Assignment of lease dated as of even
with Amendment No. 1 to Amended and Restated General Credit and Security
Agreement dated as of May 22, 2001 between Borrower and Lender, as originally
executed and as it may be amended, modified, supplemented or restated from time
to time.”

             ‘Intercreditor
Agreement’ shall mean the Amended and Restated Intercreditor Agreement
dated as of May 22, 2001 among Lender, Mark Anthony and Stearns Bank National
Association, as originally executed and as it may be amended, modified,
supplemented or restated from time to time

             ‘Mark
Anthony Indemnity Agreement’ shall mean that certain Financial Assistance
and Indemnity Agreement dated as of  May
22, 2001 between Borrower and Mark Anthony, as amended, modified or
supplemented with any Lender consent required by Paragraph 18(r) hereof and
Section 23 of the Intercreditor Agreement.

             ‘Mark Anthony Supply
Agreement’ shall mean that certain Contract Manufacturing Supply Agreement
dated as of September 22, 1999, between Mark Anthony, as the assignee of Mark
Anthony International SRL, as amended by an Amendment to Contract Manufacturing
Supply Agreement dated as of May 22, 2001 (the ‘MA Supply Agreement
Amendment’), and as it may be further amended, modified or supplemented with
any Lender consent required by Paragraph 18(r) hereof and Section 23 of the
Intercreditor Agreement.”

             (h)        Paragraph 18 of the Original Agreement
is amended by adding the following new subparagraph (r):

             “(r)       Amend, modify, or supplement any
provision of, or waive any other party’s compliance with any of the terms of,
the Mark Anthony Supply Agreement or the Mark Anthony Indemnity Agreement in
any manner which: (a) requires Borrower to pay any additional consideration
under such agreement or otherwise imposes any financial obligation or burden on
the Borrower; (b) could reasonably be expected to result in an Material Adverse
Occurrence; or (c) impairs any of Bremer’s rights in the Collateral pursuant to
this Agreement, any other Loan Document or the Intercreditor Agreement or is otherwise
adverse to the rights and benefits of Lender under this Agreement, any other
Loan Document or the Intercreditor Agreement.

             (i)          Paragraph 20(p) of the Original
Agreement is amended in its entirety to read as follows:

             “(p)      Lender determines that the remaining
un-advanced balance of the Term Loan A Commitment  is insufficient to fully pay all of the then unpaid Project
Costs  and Borrower  fails to deposit with the Lender, within
five (5) Business Days after demand, sufficient funds to cover such deficiency;
or.”

             (j)          Paragraph 20 of the Original Agreement
is further amended by adding the following new subparagraph (r):

             “(r)       If the amount in default under the Mark
Anthony Indemnity Agreement is at least $100,000.00 and Borrower fails to cure
such defaults within 30 days after Mark Anthony notifies Bremer of the
occurrence thereof pursuant to Section 23 of the Intercreditor Agreement.”

             3.          Effective Date. This Amendment shall become effective as of the date hereof on the
date (the ‘Effective Date’) when, and only when, the Lender shall have received
counterparts of this Amendment executed by Borrower, and the Lender shall have
received all of the following in form and substance satisfactory to the Lender,
unless waived in writing by the Lender:

             (a)         A replacement Term Note A (the
“Replacement Term Note A”) in a form provided by the Lender appropriately
completed and duly executed by the Borrower;

             (b)        A replacement Term Note B (the
“Replacement Term Note B”) in a form provided by the Lender appropriately
completed and duly executed by the Borrower;

             (c)         A certified copy of the Mark Anthony
Supply Agreement and the Mark Anthony Indemnity Agreement;

             (d)        The Collateral Assignment appropriately
completed and duly executed by Borrower together with a  consent thereto appropriately completed and
duly executed by Gopher and Stearns Bank National Association;

             (e)         The Intercreditor Agreement
appropriately completed and duly executed by Mark Anthony and  Stearns Bank National Association; and

             (f)         Such other documents as the Lender may
reasonably require.

             4.          Representations and Warranties.  To induce the Lender to enter into this
Amendment, the Borrower represents and warrants to the Lender as follows:

             (a)         The execution, delivery and performance
by the Borrower of this Amendment, the Replacement Term Note A, the Replacement
Term Note B,  and any other documents to
which the Borrower is a party have been duly authorized by all necessary
corporate action, do not require any approval or consent of, or any registration,
qualification or filing with, any governmental agency or authority or any
approval or consent of any other Person (including, without limitation, any
stockholder or member), do not and will not conflict with, result in any
violation of or constitute any default under, any provision of the Borrower’s
articles of incorporation or by-laws, any agreement binding on or applicable to
the Borrower or any of its property, or any law or governmental regulation or
court decree or order, binding upon or applicable to the Borrower or of any of
its property and will not result in the creation or imposition of any Security
Interest or other lien or encumbrance in or on any of its property pursuant to
the provisions of any agreement applicable to Borrower or any of its property;

             (b)        The representations and warranties
contained in Paragraph 16 of the Original Agreement are true and correct as of
the date hereof as though made on that date after giving effect to the
Amendment;

             (c)         (i) No events have taken place and no
circumstances exist at the date hereof which would give Borrower the right to
assert a defense, offset or counterclaim to any claim by the Lender for payment
of the Obligations; and (ii) Borrower hereby releases and forever discharges
the Lender and its successors, assigns, directors, officers, agents, employees
and participants from any and all actions, causes of action, suits,
proceedings, debts, sums of money, covenants, contracts, controversies, claims
and demands, at law or in equity, which Borrower ever had or now has against
the Lender or its successors, assigns, directors, officers, agents, employees
or participants by virtue of their relationship to Borrower in connection with
the Loan Documents and the transactions related thereto;

             (d)        The Original Agreement as amended by
this Amendment, the Replacement Term Note A and the Replacement Term Note B are
the legal, valid and binding obligations of the Borrower and are enforceable in
accordance with their respective terms, subject only to bankruptcy, insolvency,
reorganization, moratorium or similar laws, rulings or decisions at the time in
effect affecting the enforceability of rights of creditors generally and to
general equitable principles which may limit the right to obtain equitable
remedies; and

             (e)         No Default or Event of Default and no
Material Adverse Occurrence has occurred and is continuing as of the date
hereof after giving effect to this Amendment.

             5.          Reference to and Effect on the Loan Documents.

             (a)         From and after the effective date of this
Amendment, each reference in:

             (i)          the Original Agreement to “this
Agreement,” “herein,” “hereof,” “hereby” or words of like import referring to
the Agreement and each reference in any other Loan Document to the “Credit
Agreement,” the “Loan Agreement,” “therein,” “thereof,” “thereby” or words of
like import referring to the Original Agreement shall mean and be a reference
to the Original Agreement as amended by this Amendment;

             (ii)         any Loan Document to the “Term Note A”,
“thereunder”, “thereof”, “therein” or words of like import referring to the
Term Note A shall mean and be a reference to the Replacement Term Note A
executed and delivered pursuant to this Amendment; and

             (iii)        any Loan Document to the “Term Note B”,
“thereunder”, “thereof”, “therein” or words of like import referring to the
Term Note B shall mean and be a reference to the Replacement Term Note B
executed and delivered pursuant to this Amendment

             (b)        Except as specifically set forth above,
the Original Agreement remains in full force and effect and is hereby ratified
and confirmed.

             (c)         The execution, delivery and
effectiveness of this Amendment shall not, except as expressly provided herein,
operate as a waiver of any right, power or remedy of Lender under the Original
Agreement or any other Loan Document, nor constitute a waiver of any provision
of the Original Agreement or any such Loan Document.

             6.          Costs and Expenses.  Borrower agrees to pay on demand all costs
and expenses of Lender in connection with the preparation, reproduction,
execution and delivery of this Amendment and the other documents to be
delivered hereunder or thereunder, including its reasonable attorneys’ fees and
legal expenses.

             7.          Governing Law.  This Amendment shall be governed by and
construed in accordance with the laws of the State of Minnesota.

             8.          Headings.  Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

             IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be executed by the respective officers
thereunto duly authorized as of the date first above written.

	 	 	MBC Holding Company
	 	 	 
	 	 	By:
	 	 	 	

	 	 	Its:	 
	 	 	 	

	Subscribed and sworn to before me this _____
  day of May, 2001.	 	 	 
	 	 	 	 
	 	 	 	 
	

	 	 	 
	Notary Public	 	 	 
	 	 	Bremer Business Finance Corporation
	 	 	 
	 	 	By: 	 
	 	 	

	 
	 	 	Its:	 
	 	 	

						

 

REPLACEMENT
TERM NOTE A 

	$4,400,000.00	St. Paul, MN
	 	May 22, 2001

             FOR VALUE RECEIVED, the
undersigned, MBC HOLDING COMPANY, a Minnesota corporation (the “Borrower”),
promises to pay to the order of BREMER BUSINESS FINANCE CORPORATION, a
Minnesota corporation (the “Lender”), 
the principal sum of Four 
Million Four Hundred Thousand and No/100ths Dollars ($4,400,000.00) or,
if less, the  aggregate unpaid principal
amount of the Term Loan A borrowed by the Borrower under the Credit Agreement
in:  (a) fifty-nine (59) consecutive,
equal monthly installments of $73,334.00 each, such installments shall be due
and payable on each Monthly Payment Date, commencing on June 1, 2001, and
continuing through, to and including April 1, 2006; and (b) a sixtieth (60th  and final installment equal to the entire
remaining principal balance hereof shall be due and payable on May 1, 2006.

             All disbursement of the Term Loan A
proceeds and all payments of principal shall be recorded by the Lender in its
records which records shall be conclusive evidence of the subject matter
thereof, absent manifest error.

             The Borrower further promises to
pay to the order of the Lender interest on the outstanding principal balance of
the Term Loan A  from time to time
outstanding from the date hereof until paid in full at a fluctuating annual
rate equal to the sum of the Reference Rate plus 2% per annum (the “Lender
Rate”); provided, however, that:

             (a)         if, and so long as, the Lender has sold
a participation in Term Loan A and the purchaser of such participation has
agreed to a rate which is lower  than
the Lender Rate on such participation (such lower rate being the “Participant
Rate”), then the Lender agrees that the rate of interest on the portion of the
Term Loan A subject to such participation shall be equal to the Participant
Rate; and/or

             (b)        notwithstanding anything to the contrary
contained herein, upon the occurrence and during the continuance of any Event
of Default, the rate of interest hereunder shall be the Default Rate.

Interest
accrued through a calendar month shall be due and payable on the first day of
the following calendar month, commencing on June 1, 2001, and at maturity.  Interest payable after maturity shall be
payable on demand.  Each change in the
fluctuating interest rate shall take effect simultaneously with the
corresponding change in the Reference Rate.

             The Borrower shall have the right,
by giving written notice to the Lender by not later than 2:00 p.m. (St. Paul
time) on the Business Day of such payment, to voluntarily prepay this Note  in whole or in part at any time without
premium or penalty; provided, however, that: (a) any  such voluntary prepayment which prepays this
Note in full shall be accompanied by accrued interest; and (b) any partial
prepayment shall be applied to installments due on this Note in the inverse
order of their maturities.

             All payments of principal and
interest under this Note shall be made in lawful money of the United States of
America in immediately available funds to the Lender at the Lender’s office at
445 Minnesota Street, St, Paul, MN 55101, or at such other place as may be
designated by the Lender to the Borrower in writing.

             This Note is the Term Note A
referred to in, and evidences indebtedness incurred under, an Amended and
Restated  General Credit and Security
Agreement dated as of March 29, 2001 (herein, as it may be amended, modified or
supplemented from time to time, called the “Credit Agreement;” capitalized
terms not otherwise defined herein being used herein as therein defined)
between the Borrower and the Lender, to which Credit Agreement reference is
made for a statement of the terms and provisions thereof, including those under
which the Borrower is permitted and required to make prepayments and repayments
of principal of such indebtedness and under which such indebtedness may be
declared to be immediately due and payable.

             All parties hereto, whether as
makers, endorsers or otherwise, severally waive presentment, demand, protest
and notice of dishonor in connection with this Note.

             This Note is made under and
governed by the internal laws of the State of Minnesota.

             This Note is being executed and
delivered in replacement of, but not in payment of, that certain Term Note A
dated March 29, 2001 made by the Borrower payable to the order of the Lender in
the original principal amount of $4,400,000.00; provided, however,
that interest accruing on the replaced note through the date hereof shall be
payable on June 1, 2001.

	 	MBC Holding Company	 	 
	 	 	 	 
	 	By	 	 
	 	

	 	 
	 	Its	 	 
	 	

	 	 
	Subscribed and sworn to before me this _____
  day of May, 2001.	 	 	 
	 	 	 	 
	 	 	 	 
	

	 	 	 
	Notary Public	 	 	 
					

 

REPLACEMENT
TERM NOTE B

	$600,000.00	St. Paul, MN
	 	May 22, 2001

             FOR VALUE RECEIVED, the
undersigned, MBC HOLDING COMPANY, a Minnesota corporation (the “Borrower”),
promises to pay to the order of BREMER BUSINESS FINANCE CORPORATION, a
Minnesota corporation (the “Lender”), 
the principal sum of Six Hundred Thousand  and No/100ths Dollars ($600,000.00) or, if less, the  aggregate unpaid principal amount of the
Term Loan B borrowed by the Borrower under the Credit Agreement in: (a) forty-seven(
47) consecutive, equal monthly installments of $12,500.00 each, such installments
shall be due and payable on each Monthly Payment Date, commencing on June 1,
2001, and continuing through, to and including April 1, 2005; and  (b) a forty-eighth (48th ) and
final installment equal to the entire remaining principal balance hereof shall
be due and payable on May 1, 2005.

             All disbursement of the Term Loan B
proceeds and all payments of principal shall be recorded by the Lender in its
records which records shall be conclusive evidence of the subject matter
thereof, absent manifest error.

             The Borrower further promises to
pay to the order of the Lender interest on the outstanding principal balance of
the Term Loan B  from time to time
outstanding from the date hereof until paid in full at a fluctuating annual
rate equal to the sum of the Reference Rate plus 2%  per annum (the “Lender Rate”); provided, however,
that notwithstanding anything to the contrary contained herein, upon the
occurrence and during the continuance of any Event of Default, the rate of
interest hereunder shall be the Default Rate. 
Interest accrued through a calendar month shall be due and payable on
the first day of the following calendar month, commencing on June 1, 2001, and
at maturity.  Interest payable after
maturity shall be payable on demand. 
Each change in the fluctuating interest rate shall take effect
simultaneously with the corresponding change in the Reference Rate.

             The Borrower shall have the right,
by giving written notice to the Lender by not later than 2:00 p.m. (St. Paul
time) on the Business Day of such payment, to voluntarily prepay this Note  in whole or in part at any time without
premium or penalty; provided, however, that: (a) any  such voluntary prepayment which prepays this
Note in full shall be accompanied by accrued interest; and (b) any partial
prepayment shall be applied to installments due on this Note in the inverse
order of their maturities.

             All payments of principal and
interest under this Note shall be made in lawful money of the United States of
America in immediately available funds to the Lender at the Lender’s office at
445 Minnesota Street, St, Paul, MN 55101, or at such other place as may be
designated by the Lender to the Borrower in writing.

             This Note is the Term Note B
referred to in, and evidences indebtedness incurred under, an Amended and
Restated  General Credit and Security
Agreement dated as of March 29, 2001 (herein, as it may be amended, modified or
supplemented from time to time, called the “Credit Agreement;” capitalized
terms not otherwise defined herein being used herein as therein defined)
between the Borrower and the Lender, to which Credit Agreement reference is
made for a statement of the terms and provisions thereof, including those under
which the Borrower is permitted and required to make prepayments and repayments
of principal of such indebtedness and under which such indebtedness may be
declared to be immediately due and payable.

             All parties hereto, whether as
makers, endorsers or otherwise, severally waive presentment, demand, protest
and notice of dishonor in connection with this Note.

             This Note is made under and
governed by the internal laws of the State of Minnesota.

             This Note is being executed and
delivered in replacement of, but not in payment of, that certain Term Note B
dated March 29, 2001 made by the Borrower payable to the order of the Lender in
the original principal amount of $600,000.00; provided, however,
that interest accruing on the replaced note through the date hereof shall be
payable on June 1, 2001.

	 	 	MBC Holding Company	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	By	 	 
	 	 	

	 
	 	 	Its	 	 
	 	 	

	 
	Subscribed and sworn to before me this _____
  day of May, 2001.	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	

	 	 	 	 
	Notary Public

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