REUTER MANUFACTURING INC
EXHIBIT 10.7
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<TYPE>EX-10.7
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<FILENAME>a2028444zex-10_7.htm
<DESCRIPTION>EXHIBIT 10.7
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit 10.7  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><B> <A NAME="ky3001_amended_and_restated_note"> </A>
      AMENDED AND RESTATED NOTE         </B></FONT></P>

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<TD WIDTH="49%"><FONT SIZE=2><B>$6,800,000</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="RIGHT"><FONT SIZE=2><B>October&nbsp;10, 2000<BR>
Minneapolis, Minnesota</B></FONT></TD>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;FOR
VALUE RECEIVED, REUTER MANUFACTURING,&nbsp;INC., a corporation organized under the laws of the State of Minnesota, hereby promises to pay to the order of U.S. BANK NATIONAL
ASSOCIATION (the "Lender") at its main office in Minneapolis, Minnesota, in lawful money of the United States of America in immediately available funds the principal amount of SIX MILLION EIGHT
HUNDRED THOUSAND DOLLARS AND NO CENTS ($6,800,000), and to pay interest (computed on the basis of actual days elapsed and a year of 360&nbsp;days) in like funds on the unpaid principal amount hereof
from time to time outstanding. </FONT></P>


<P><FONT SIZE=2>The
principal hereof and interest hereon is payable as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;interest
on the Advances (as such term and each other capitalized term used herein are defined in the Credit Agreement hereinafter referred to) at the rates and
times set forth in the Credit Agreement. The Advances are payable on the Revolving Maturity Date; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;on
Term Loan A in consecutive installments of $27,020 each, beginning on November&nbsp;1, 2000 and on the first day of each month thereafter through
September&nbsp;1, 2005 and one final payment on October&nbsp;1, 2005 in the amount of the entire remaining balance. Each such installment shall be applied first to interest and the balance to
principal. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;on
Term Loan B (i)&nbsp;in payments of accrued interest only payable in arrears on November&nbsp;1, 2000, December&nbsp;1, 2000 and on January&nbsp;1, 2001,
and (ii)&nbsp;principal and interest payments in consecutive installments of $36,500 each, beginning on February&nbsp;1, 2001 and on the first day of each month thereafter through
December&nbsp;1, 2003 and one final payment on January&nbsp;1, 2004 in the amount of the entire remaining balance. Each such installment shall be applied first to interest and the balance to
principal. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;Term
Loan C is payable on September&nbsp;30, 2003, provided however, that Term Loan C shall be forgiven in the event (i)&nbsp;the Advances, Term Loan A and Term
Loan B are all paid in full on or before September&nbsp;30, 2003, or (ii)&nbsp;on October&nbsp;1, 2003 if the Borrower has fully complied with the terms of the Credit Agreement and no Default or
Event of Default exists. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This
note is the Amended and Restated Note referred to in the Amended and Restated Credit Agreement dated as of October&nbsp;10, 2000 (as the same may be hereafter from time to time
amended, restated or modified, the "Credit Agreement") between the undersigned and the Lender. This note is secured, it is subject to certain permissive and mandatory prepayments and its maturity is
subject to acceleration, in each case upon the terms provided in said Credit Agreement. This note is issued in combination, substitute and replacement but not in payment of indebtedness owed to the
Lender by the Borrower under that Financing Agreement dated as of December&nbsp;3, 1997, a Term Note in the original principal amount of $2,400,000 dated as of December&nbsp;3, 1997 (as amended
from time to time) from the Borrower to the Lender a Term Note in the original principal amount of $270,000 dated as of December&nbsp;3, 1997 (as amended from time to time) from the Borrower to the
Lender. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In
the event of default hereunder, the undersigned agrees to pay all costs and expenses of collection, including reasonable attorneys' fees. The undersigned waives demand,
presentment, notice of nonpayment, protest, notice of protest and notice of dishonor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;THE
VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS NOTE SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA WITHOUT GIVING </FONT></P>

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<P><FONT SIZE=2>
EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS OF THE UNITED STATES APPLICABLE TO NATIONAL BANKS. </FONT></P>

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<TD WIDTH="50%" COLSPAN=2><FONT SIZE=2>REUTER MANUFACTURING,&nbsp;INC.</FONT></TD>
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<TD WIDTH="48%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;<BR></FONT> <FONT SIZE=2>By</FONT></TD>
<TD WIDTH="45%"><FONT SIZE=2>&nbsp;<BR>
/s/&nbsp;</FONT><FONT SIZE=2>MICHAEL J. TATE</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
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<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>Title</FONT></TD>
<TD WIDTH="45%"><FONT SIZE=2>President<BR></FONT>
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