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Exhibit 10.6  

  SECURITY AGREEMENT         

    THIS SECURITY AGREEMENT, dated as of October 10, 2000, is made and given by REUTER MANUFACTURING, INC., a corporation organized under the laws of
the State of Minnesota (the "Grantor"), to U.S. BANK NATIONAL ASSOCIATION, a national banking association (the "Secured Party"). 

  RECITALS         

    A.  The
Grantor and the Secured Party have entered into an Amended and Restated Credit Agreement dated as of the date of this Agreement (as the same may hereafter be
amended, supplemented, extended, restated, or otherwise modified from time to time, the "Credit Agreement") pursuant to which the Secured Party has agreed to extend to the Grantor certain credit
accommodations on the terms and conditions set forth in the Credit Agreement. 

    B.  It
is a condition precedent to the extension of any credit accommodations pursuant to the terms of the Credit Agreement that this Agreement be executed and
delivered by the Grantor. 

    C.  The
Grantor finds it advantageous, desirable and in its best interests to comply with the requirement that it execute and deliver this Security Agreement to the
Secured Party. 

    NOW,
THEREFORE, in consideration of the premises and in order to induce the Secured Party to enter into the Credit Agreement and to extend credit accommodations to the Grantor
thereunder, the Grantor hereby agrees with the Secured Party for the Secured Party's benefit as follows: 

    Section 1.  Defined Terms.  

   1(a) As
used in this Agreement, the following terms shall have the meanings indicated: 

    "Accounts" shall mean each and every right to payment of Grantor, whether such right to payment arises out of a sale or lease of goods
by Grantor, or other disposition of goods or other property of Grantor, out of a rendering of services by Grantor, out of a loan by Grantor, out of damage to or loss of goods in the possession of a
railroad or other carrier or any other bailee, out of overpayment of taxes or other liabilities of Grantor, or which otherwise arises under any contract or agreement, or from any other cause, whether
such right to payment now exists or hereafter arises and whether such right to payment is or is not yet earned by performance and howsoever such right to payment may be evidenced, together with all
other rights and interest (including all liens and security interests) which Grantor may at any time have by law or agreement against any account debtor (as defined in the Uniform Commercial Code in
effect in the State of Minnesota) or other obligor obligated to make any such payment or against any of the property of such account debtor or other obligor; specifically (but without limitation), the
term includes all present and future instruments, documents, chattel papers, accounts and contract rights of Grantor. 

    "Account Debtor" shall mean a Person who is obligated on or under any Account, Chattel Paper, Instrument or General Intangible. 

    "Chattel Paper" shall mean a writing or writings which evidence both a monetary obligation and a security interest in or lease of
specific goods; when a transaction is evidenced by both a security agreement or a lease and by an Instrument or a series of Instruments, the group of writings taken together constitutes Chattel Paper. 

    "Collateral" shall mean all property and rights in property now owned or hereafter at any time acquired by the Grantor in or upon which
a Security Interest is granted to the Secured Party by the Grantor under this Agreement. 

    "Document" shall mean any bill of lading, dock warrant, dock receipt, warehouse receipt or order for the delivery of goods, together
with any other document or receipt which in the regular course of 

business or financing is treated as adequately evidencing that the Person in possession of it is entitled to receive, hold and dispose of the document and the goods it covers. 

    "Equipment" shall mean all machinery, equipment, furniture, furnishings and fixtures, including all accessions, accessories and
attachments thereto, and any guaranties, warranties, indemnities and other agreements of manufacturers, vendors and others with respect to such Equipment. 

    "Event of Default" shall have the meaning given to such term in Section 20 hereof. 

    "Financing Statement" shall have the meaning given to such term in Section 4 hereof. 

    "General Intangibles" shall mean any personal property (other than goods, Accounts, Chattel Paper, Documents, Instruments and money)
including choses in action, causes of action, contract rights, corporate and other business records, inventions, designs, patents, patent applications, service marks, trademarks, trademark
applications, tradenames, trade secrets, engineering drawings, good will, registrations, copyrights, licenses, franchises, customer lists, tax refund claims, royalties, licensing and product rights,
rights to the retrieval from third parties of electronically processed and recorded data and all rights to payment resulting from an order of any court. 

    "Instrument" shall mean a draft, check, certificate of deposit, note, bill of exchange, security or any other writing which evidences a
right to the payment of money and is not itself a security agreement or lease and is of a type which is transferred in the ordinary course of business by delivery with any necessary endorsement or
assignment. 

    "Inventory" shall mean any and all of the Grantor's goods, including, without limitation, goods in transit, wherever located which are
or may at any time be leased by the Grantor to a lessee, held for sale or lease, furnished under any contract of service or held as raw materials, work in process, or supplies or materials used or
consumed in the Grantor's business, or which are held for use in connection with the manufacture, packing, shipping, advertising, selling or finishing of such goods, and all goods, the sale or other
disposition of which has given rise to a Receivable, which are returned to and/or repossessed and/or stopped in transit by the Grantor or the Secured Party, or at any time hereafter in the possession
or under the control of the Grantor or the Secured Party, or any agent or bailee of either thereof, and all documents of title or other documents representing the same. 

    "Lien" shall mean any security interest, mortgage, pledge, lien, charge, encumbrance, title retention agreement or analogous instrument
or device (including the interest of the lessors under capitalized leases), in, of or on any assets or properties of the Person referred to. 

    "Obligations" shall mean (a) all indebtedness, liabilities and obligations of the Grantor to the Secured Party of every kind,
nature or description under the Credit Agreement, including the Grantor's obligation on any promissory note or notes under the Credit Agreement and any note or notes hereafter issued in substitution
or replacement thereof, (b) all liabilities of the Grantor under this Agreement, and (c) any and all other liabilities and obligations of the Grantor to the Secured Party of every kind,
nature and description, whether direct or indirect or hereafter acquired by the Secured Party from any Person, absolute or contingent, regardless of how such liabilities arise or by what agreement or
instrument they may be evidenced, and in all of the foregoing cases whether due or to become due, and whether now existing or hereafter arising or incurred. 

    "Person" shall mean any individual, corporation, partnership, limited partnership, limited liability company, joint venture, firm,
association, trust, unincorporated organization, government or governmental agency or political subdivision or any other entity, whether acting in an individual, fiduciary or other capacity. 

    "Security Interest" shall have the meaning given such term in Section 2 hereof. 

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   1(b) All other terms used in this Agreement which are not specifically defined herein shall have the meaning assigned to such terms in the Uniform Commercial Code in
effect in the State of Minnesota as of the date of this Agreement to the extent such other terms are defined therein. 

   1(c) Unless
the context of this Agreement otherwise clearly requires, references to the plural include the singular, the singular, the plural and "or" has the inclusive
meaning represented by the phrase "and/or." The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The words "hereof," "herein,"
"hereunder," and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. References to Sections are references to Sections in this
Security Agreement unless otherwise provided. 

    Section 2.  Grant of Security Interest.  As security for the payment and performance of all of the
Obligations, the Grantor hereby grants to the Secured Party a security interest (the "Security Interest") in all of the Grantor's right, title, and interest in and to the following, whether now or
hereafter owned, existing, arising or acquired and wherever located: 

   2(a) All
Accounts. 

   2(b) All
Chattel Paper. 

   2(c) All
Documents. 

   2(d) All
Equipment. 

   2(e) All
General Intangibles. 

    2(f) All
Instruments. 

   2(g) All
Inventory. 

   2(h) To
the extent not otherwise included in the foregoing, (i) all other rights to the payment of money, including rents and other sums payable to the Grantor
under leases, rental agreements and other Chattel Paper and insurance proceeds; (ii) all books, correspondence, credit files, records, invoices, bills of lading, and other documents relating to
any of the foregoing, including, without limitation, all tapes, cards, disks, computer software, computer runs, and other papers and documents in the possession or control of the Grantor or any
computer bureau from time to time acting for the Grantor; (iii) all rights in, to and under all policies insuring the life of any officer, director, stockholder or employee of the Grantor, the
proceeds of which are payable to the Grantor; and (iv) all accessions and additions to, parts and appurtenances of, substitutions for and replacements of any of the foregoing. 

    2(i) To
the extent not otherwise included, all proceeds and products of any and all of the foregoing. 

    Section 3.  Grantor Remains Liable.  Anything herein to the contrary notwithstanding,
(a) the Grantor shall remain liable under the Accounts, Chattel Paper, General Intangibles and other items included in the Collateral to the extent set forth therein to perform all of its
duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the Secured Party of any of the rights hereunder shall not release the
Grantor from any of its duties or obligations under any items included in the Collateral, and (c) the Secured Party shall have no obligation or liability under Accounts, Chattel Paper, General
Intangibles and other items included in the Collateral by reason of this Agreement, nor shall the Secured Party be obligated to perform any of the obligations or duties of the Grantor thereunder or to
take any action to collect or enforce any claim for payment assigned hereunder. 

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    Section 4.  Title to Collateral.  The Grantor has (or will have at the time it acquires rights in
Collateral hereafter acquired or arising) and will maintain so long as the Security Interest may remain outstanding, title to each item of Collateral (including the proceeds and products thereof),
free and clear of all Liens except the Security Interest and except Liens permitted by the Credit Agreement. The Grantor will defend the Collateral against all claims or demands of all Persons (other
than the Secured Party) claiming the Collateral or any interest therein. As of the date of execution of this Security Agreement, no effective financing statement or other similar document used to
perfect and preserve a security interest under the laws of any jurisdiction (a "Financing Statement") covering all or any part of the Collateral is on file in any recording office, except such as may
have been filed (a) in favor of the Secured Party relating to this Agreement, or (b) to perfect Liens permitted by the Credit Agreement. 

    Section 5.  Lock Box, Collateral Account.  The Grantor will direct each of its Account Debtors or
other obligors to make payments due under any Collateral directly to a special lock box to be established and maintained by Secured Party (the "Lockbox"). The Grantor hereby authorizes and directs
Secured Party to deposit into a special collateral account to be established and maintained by Secured Party (the "Collateral Account") all checks, drafts and cash payments received in said Lockbox.
All deposits from the Lockbox to the Collateral Account shall constitute proceeds of Collateral and shall not constitute payment of any Obligation. The Grantor agrees that it will promptly deliver to
Secured Party, for deposit into said Collateral Account, all payments on Accounts and Chattel Paper received by it. All such payments shall be delivered to Secured Party in the form received (except
for the Grantor's endorsement where necessary). Until so delivered, all payments on Accounts and Chattel Paper received by the Grantor shall be held in trust by the Grantor for and as the property of
Secured Party and shall not be commingled with any funds or property of the Grantor. 

    Section 6.  Collection Rights of Secured Party.  Notwithstanding Secured Party's rights under
Section 5 with respect to any and all Instruments, Chattel Paper, Accounts and other rights to payment constituting Collateral (including proceeds), Secured Party may, at any time (both before
and after the occurrence of an Event of Default) notify any Account Debtor, or any other person obligated to pay any amount due, that such Chattel Paper, Account, or other right to payment has been
assigned or transferred to Secured Party for security and shall be paid directly to Secured Party. If Secured Party so requests at any time, the Grantor will so notify such Account Debtors and other
obligors in writing and will indicate on all invoices to such Account Debtors or other obligors that the amount due is payable directly to Secured Party. At any time after Secured Party or the Grantor
gives such notice to an account debtor or other obligor, Secured Party may (but need not), in its own name or in the Grantor's name, demand, sue for, collect or receive any money or property at any
time payable or receivable on account of, or securing, any such chattel paper, account, or other right to payment, or grant any extension to, make any compromise or settlement with or otherwise agree
to waive, notify, amend or change the obligations (including collateral obligations) of any such account debtor or other obligor. The Grantor hereby irrevocably makes, constitutes and appoints the
Secured Party or any person whom the Secured Party may designate, the Grantor's true and lawful attorney with power to receive, open and dispose of all mail addressed to the Grantor; to endorse the
Grantor's name on any notes, acceptances, checks, drafts, money orders or other means of payment that may come into the Secured Party's possession as payment of or upon Accounts, Chattel Paper or
other Collateral; to endorse the Grantor's name on any invoice, freight or express bill or bill of lading relating to any Collateral; to sign the Borrower's name to drafts against Account Debtors, to
assignments and verification of accounts and notices thereof to Account Debtors, and to documents of title covering any Collateral, and to do all other things necessary or proper to carry out the
intent of this Agreement. 

    Section 7.  Disposition of Collateral.  The Grantor will not sell, lease or otherwise dispose of,
or discount or factor with or without recourse, any Collateral, except sales of items of Inventory in the ordinary course of business. 

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    Section 8.  Names, Offices, Locations.  The Grantor does business solely under its own name and
the trade names and styles, if any, set forth on Schedule II hereto. Except as noted on said Schedule, no such trade names or styles and no trademarks or other similar marks owned by the
Grantor are registered with any governmental unit. The chief place of business and chief executive office and the office where it keeps its books and records concerning the Accounts and General
Intangibles and the originals of all Chattel Paper, Documents and Instruments are located at its address set forth on the signature page hereof. All items of Equipment and Inventory existing on the
date of this Agreement are located at the places specified on Schedule I hereto. The Grantor will immediately notify the Secured Party of any additional state in which any item of Inventory or
Equipment is hereafter located. The Grantor will from time to time at the request of the Secured Party provide the Secured Party with current lists as to
the locations of the Equipment and Inventory. The Grantor will not permit any Inventory, Equipment, Chattel Paper or Documents or any records pertaining to Accounts and General Intangibles to be
located in any state or area in which, in the event of such location, a financing statement covering such Collateral would be required to be, but has not in fact been, filed in order to perfect the
Security Interest. The Grantor will not change its name or the location of its chief place of business and chief executive office unless the Secured Party has been given at least 30 days' prior
written notice thereof and the Grantor has executed and delivered to the Secured Party such Financing Statements and other instruments required or appropriate to continue the perfection of the
Security Interest. 

    Section 9.  Rights to Payment.  Except as the Grantor may otherwise advise the Secured Party in
writing, each Account, Chattel Paper, Document, General Intangible and Instrument constituting or evidencing Collateral is (or, in the case of all future Collateral, will be when arising or issued)
the valid, genuine and legally enforceable obligation of the Account Debtor or other obligor named therein or in the Grantor's records pertaining thereto as being obligated to pay or perform such
obligation. The Grantor will perform and comply in all material respects with all its obligations under any items included in the Collateral and exercise promptly and diligently its rights thereunder. 

    Section 10.  Further Assurances.  

  10(a) The
Grantor agrees that from time to time, at its expense, it will promptly execute and deliver all further instruments and documents, and take all further
action, that may be necessary or that the Secured Party may reasonably request, in order to perfect and protect the Security Interest granted or purported to be granted hereby or to enable the Secured
Party to exercise and enforce its rights and remedies hereunder with respect to any Collateral (but any failure to request or assure that the Grantor execute and deliver such instrument or documents
or to take such action shall not affect or impair the validity, sufficiency or enforceability of this Agreement and the Security Interest, regardless of whether any such item was or was not executed
and delivered or action taken in a similar context or on a prior occasion). Without limiting the generality of the foregoing, the Grantor will, promptly and from time to time at the request of the
Secured Party: (i) mark, or permit the Secured Party to mark, conspicuously its books, records, and accounts showing or dealing with the Collateral, and each item of Chattel Paper included in
the Collateral, with a legend, in form and substance satisfactory to the Secured Party, indicating that each such item of Collateral and each such item of Chattel Paper is subject to the Security
Interest granted hereby; (ii) deliver and pledge to the Secured Party, all Instruments and Documents, duly indorsed or accompanied by duly executed instruments of transfer or assignment, with
full recourse to the Grantor, all in form and substance satisfactory to the Secured Party; (iii) execute and file such Financing Statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments or notices (including fixture filings with any necessary legal descriptions as to any goods included in the Collateral which the Secured Party determines
might be deemed to be fixtures, and instruments and notices with respect to vehicle titles), as may be necessary or desirable, or as the Secured Party may request, in order to perfect, preserve, and
enhance the Security Interest granted or purported to be granted hereby; and (iv) obtain waivers, 

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in form satisfactory to the Secured Party, of any claim to any Collateral from any landlords or mortgagees of any property where any Inventory or Equipment is located. 

  10(b) The
Grantor hereby authorizes the Secured Party to file one or more Financing Statements or continuation statements in respect thereof, and amendments thereto,
relating to all or any part of the Collateral without the signature of the Grantor where permitted by law. A photocopy or other reproduction of this Agreement or any Financing Statement covering the
Collateral or any part thereof shall be sufficient as a Financing Statement where permitted by law. 

  10(c) The
Grantor will furnish to the Secured Party from time to time statements and schedules further identifying and describing the Collateral and such other reports
in connection with the Collateral as the Secured Party may reasonably request, all in reasonable detail and in form and substance reasonably satisfactory to the Secured Party. 

    Section 11.  Taxes and Claims.  The Grantor will promptly pay all taxes and other governmental
charges levied or assessed upon or against any Collateral or upon or against the creation, perfection or continuance of the Security Interest, as well as all other claims of any kind (including claims
for labor, material and supplies) against or with respect to the Collateral, except to the extent (a) such taxes, charges or claims are being contested in good faith by appropriate proceedings,
(b) such proceedings do not involve any material danger of the sale, forfeiture or loss of any of the Collateral or any interest therein and (c) such taxes, charges or claims are
adequately reserved against on the Grantor's books in accordance with generally accepted accounting principles. 

    Section 12.  Books and Records.  The Grantor will keep and maintain at its own cost and expense
satisfactory and complete records of the Collateral, including a record of all payments received and credits granted with respect to all Accounts, Chattel Paper and other items included in the
Collateral. 

    Section 13.  Inspection, Reports, Verifications.  The Grantor will at all reasonable times permit
the Secured Party or its representatives to examine or inspect any Collateral, any evidence of Collateral and the Grantor's books and records concerning the Collateral, wherever located. The Grantor
will from time to time when requested by the Secured Party furnish to the Secured Party a report on its Accounts, Chattel Paper, General Intangibles and Instruments, naming the Account Debtors or
other obligors thereon, the amount due and the aging thereof. The Secured Party or its designee is authorized to
contact Account Debtors and other Persons obligated on any such Collateral from time to time to verify the existence, amount and/or terms of such Collateral. 

    Section 14.  Notice of Loss.  The Grantor will promptly notify the Secured Party of any loss of or
material damage to any material item of Collateral or of any substantial adverse change, known to Grantor, in any material item of Collateral or the prospect of payment or performance thereof. 

    Section 15.  Insurance.  The Grantor will keep the Equipment and Inventory insured against "all
risks" for the full replacement cost thereof subject to a deductible in an amount, and with an insurance company or companies, satisfactory to the Secured Party, the policies to protect the Secured
Party as its interests may appear with Lender to be named as Lender Loss Payee ("Accord 27"), with such policies or certificates with respect thereto to be delivered to the Secured Party at its
request. Each such policy or the certificate with respect thereto shall provide that such policy shall not be cancelled or allowed to lapse unless at least 30 days prior written notice is given
to the Secured Party. 

    Section 16.  Lawful Use; Fair Labor Standards Act.  The Grantor will use and keep the Collateral,
and will require that others use and keep the Collateral, only for lawful purposes, without violation of any federal, state or local law, statute or ordinance. All Inventory of the Grantor as of the
date of this Agreement that was produced by the Grantor or with respect to which the Grantor performed any manufacturing or assembly process was produced by the Grantor (or such manufacturing or
assembly process was conducted) in compliance in all material respects with all requirements of the Fair Labor 

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Standards Act, and all Inventory produced, manufactured or assembled by the Grantor after the date of this Agreement will be so produced, manufactured or assembled, as the case may be. 

    Section 17.  Action by the Secured Party.  If the Grantor at any time fails to perform or observe
any of the foregoing agreements, the Secured Party shall have (and the Grantor hereby grants to the Secured Party) the right, power and authority (but not the duty) to perform or observe such
agreement on behalf and in the name, place and stead of the Grantor (or, at the Secured Party's option, in the Secured Party's name) and to take any and all other actions which the Secured Party may
reasonably deem necessary to cure or correct such failure (including, without limitation, the payment of taxes, the satisfaction of Liens, the procurement and maintenance of insurance, the execution
of assignments, security agreements and Financing Statements, and the indorsement of Instruments); and the Grantor shall thereupon pay to the Secured Party on demand the amount of all monies expended
and all costs and expenses (including reasonable attorneys' fees and legal expenses) incurred by the Secured Party in connection with or as a result of the performance or observance of such agreements
or the taking of
such action by the Secured Party, together with interest thereon from the date expended or incurred at the highest lawful rate then applicable to any of the Obligations, and all such monies expended,
costs and expenses and interest thereon shall be part of the Obligations secured by the Security Interest. 

    Section 18.  Insurance Claims.  As additional security for the payment and performance of the
Obligations, the Grantor hereby assigns to the Secured Party any and all monies (including proceeds of insurance and refunds of unearned premiums) due or to become due under, and all other rights of
the Grantor with respect to, any and all policies of insurance now or at any time hereafter covering the Collateral or any evidence thereof or any business records or valuable papers pertaining
thereto. At any time, whether before or after the occurrence of any Event of Default, the Secured Party may (but need not), in the Secured Party's name or in Grantor's name, execute and deliver proofs
of claim, receive all such monies, indorse checks and other instruments representing payment of such monies, and adjust, litigate, compromise or release any claim against the issuer of any such
policy. Notwithstanding any of the foregoing, so long as no Event of Default exists the Grantor shall be entitled to all insurance proceeds with respect to Equipment or Inventory provided that such
proceeds are applied to the cost of replacement Equipment or Inventory. 

    Section 19.  The Secured Party's Duties.  The powers conferred on the Secured Party hereunder are
solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. The Secured Party shall be deemed to have exercised reasonable care in the
safekeeping of any Collateral in its possession if such Collateral is accorded treatment substantially equal to the safekeeping which the Secured Party accords its own property of like kind. Except
for the safekeeping of any Collateral in its possession and the accounting for monies and for other properties actually received by it hereunder, the Secured Party shall have no duty, as to any
Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not the Secured Party has or
is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any Persons or any other rights pertaining to any Collateral. The Secured Party will
take action in the nature of exchanges, conversions, redemptions, tenders and the like requested in writing by the Grantor with respect to the Collateral in the Secured Party's possession if the
Secured Party in its reasonable judgment determines that such action will not impair the Security Interest or the value of the Collateral, but a failure of the Secured Party to comply with any such
request shall not of itself be deemed a failure to exercise reasonable care. 

    Section 20.  Events of Default.  The occurrence of any one or more of the following events shall
constitute an Event of Default under this Agreement: 

  20(a) The
Grantor shall fail to make payment when due, whether upon demand, or at a scheduled due date, or otherwise, any principal of or interest on its obligations
under the Credit Agreement or any other obligations of the Grantor to the Secured Party. 

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  20(b) Any
representation or warranty made by or on behalf of the Grantor in this Agreement or the Credit Agreement or by or on behalf of the Grantor in any certificate,
statement, report or document herewith or hereafter furnished to the Secured Party pursuant to this Agreement or the Credit Agreement shall prove to have been false or misleading in any material
respect on the date as of which the facts set forth are stated or certified. 

  20(c) The
Grantor shall fail to perform any agreement of Grantor contained herein. 

  20(d) Any
Event of Default shall occur under the Credit Agreement. 

  20(e) Any
default or event of default (however denominated or defined) shall occur with respect to any indebtedness of the Grantor (other than the Obligations)
permitted under the Credit Agreement. 

    Section 21.  Remedies on Default.  Upon the occurrence of an Event of Default and at any time
thereafter: 

  21(a) The
Secured Party may exercise and enforce any and all rights and remedies available upon default to a secured party under the Uniform Commercial Code. 

  21(b) The
Secured Party shall have the right to enter upon and into and take possession of all or such part or parts of the properties of the Grantor, including lands,
plants, buildings, Equipment, Inventory and other property as may be necessary or appropriate in the judgment of the Secured Party to permit or enable the Secured Party to manufacture, produce,
process, store or sell or complete the manufacture, production, processing, storing or sale of all or any part of the Collateral, as the Secured Party may elect, and to use and operate said properties
for said purposes and for such length of time as the Secured Party may deem necessary or appropriate for said purposes without the payment of any compensation to Grantor therefor. The Secured Party
may require the Grantor to, and the Grantor hereby agrees that it will, at its expense and upon request of the Secured Party forthwith, assemble all or part of the Collateral as directed by the
Secured Party and make it available to the Secured Party at a place or places to be designated by the Secured Party. 

  21(c) Any
sale of Collateral may be in one or more parcels at public or private sale, at any of the Secured Party's offices or elsewhere, for cash, on credit, or for
future delivery, and upon such other terms as the Secured Party may reasonably believe are commercially reasonable. The Secured Party shall not be obligated to make any sale of Collateral regardless
of notice of sale having been given, and the Secured Party may adjourn any public or private sale from time to time by announcement made at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so adjourned. 

  21(d) The
Secured Party is hereby granted a license or other right to use, without charge, all of the Grantor's property, including, without limitation, all of the
Grantor's labels, trademarks, copyrights, patents and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale and
selling any Collateral, and the Grantor's rights under all licenses and all franchise agreements shall inure to the Secured Party's benefit until the Obligations are paid in full. 

  21(e) If
notice to the Grantor of any intended disposition of Collateral or any other intended action is required by law in a particular instance, such notice shall be
deemed commercially reasonable if given in the manner specified for the giving of notice in Section 25 hereof at least ten calendar days prior to the date of intended disposition or other
action, and the Secured Party may exercise or enforce any and all other rights or remedies available by law or agreement against the Collateral, against the Grantor, or against any other Person or
property. 

    Section 22.  Application of Proceeds.  All cash proceeds received by the Secured Party in respect
of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the discretion 

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of the Secured Party, be held by the Secured Party as collateral for, or then or at any time thereafter be applied in whole or in part by the Secured Party against, all or any part of the Obligations
(including, without limitation, any expenses of the Secured Party payable pursuant to Section 23 hereof). 

    Section 23.  Costs and Expenses; Indemnity.  The Grantor will pay or reimburse the Secured Party
on demand for all out-of-pocket expenses (including in each case all filing and recording fees and taxes and all reasonable fees and expenses of counsel and of any experts and
agents) incurred by the Secured Party in connection with the creation, perfection, protection, satisfaction, foreclosure or enforcement of the Security Interest and the preparation, administration,
continuance, amendment or enforcement of
this Agreement, and all such costs and expenses shall be part of the Obligations secured by the Security Interest. The Grantor shall indemnify and hold the Secured Party harmless from and against any
and all claims, losses and liabilities (including reasonable attorneys' fees) growing out of or resulting from this Agreement and the Security Interest hereby created (including enforcement of this
Agreement) or the Secured Party's actions pursuant hereto, except claims, losses or liabilities resulting from the Secured Party's gross negligence or willful misconduct as determined by a final
judgment of a court of competent jurisdiction. Any liability of the Grantor to indemnify and hold the Secured Party harmless pursuant to the preceding sentence shall be part of the Obligations secured
by the Security Interest. The obligations of the Grantor under this Section shall survive any termination of this Agreement. 

    Section 24.  Waivers; Remedies; Marshalling.  This Agreement can be waived, modified, amended,
terminated or discharged, and the Security Interest can be released, only explicitly in a writing signed by the Secured Party. A waiver so signed shall be effective only in the specific instance and
for the specific purpose given. Mere delay or failure to act shall not preclude the exercise or enforcement of any rights and remedies available to the Secured Party. All rights and remedies of the
Secured Party shall be cumulative and may be exercised singly in any order or sequence, or concurrently, at the Secured Party's option, and the exercise or enforcement of any such right or remedy
shall neither be a condition to nor bar the exercise or enforcement of any other. The Grantor hereby waives all requirements of law, if any, relating to the marshalling of assets which would be
applicable in connection with the enforcement by the Secured Party of its remedies hereunder, absent this waiver. 

    Section 25.  Notices.  Any notice or other communication to any party in connection with this
Agreement shall be in writing and shall be sent by manual delivery, telegram, telex, facsimile transmission, overnight courier or United States mail (postage prepaid) addressed to such party at the
address specified on the signature page hereof, or at such other address as such party shall have specified to the other party hereto in writing. All periods of notice shall be measured from the date
of delivery thereof if manually delivered, from the date of sending thereof if sent by telegram, telex or facsimile transmission, from the first business day after the date of sending if sent by
overnight courier, or from four days after the date of mailing if mailed. 

    Section 26.  Grantor Acknowledgements.  The Grantor hereby acknowledges that (a) it has
been advised by (or has had full opportunity to avail itself of the advice of) counsel in the negotiation, execution and delivery of this Agreement, (b) the Secured Party has no fiduciary
relationship to the Grantor, the relationship being solely that of debtor and creditor, and (c) no joint venture exists between the Grantor and the Secured Party. 

    Section 27.  Continuing Security Interest; Assignments under Credit Agreement.  This Agreement
shall (a) create a continuing security interest in the Collateral and shall remain in full force and effect until payment in full of the Obligations, (b) be binding upon the Grantor, its
successors and assigns, and
(c) inure to the benefit of, and be enforceable by, the Secured Party and its successors, transferees, and assigns. Without limiting the generality of the foregoing clause (c), the
Secured Party may assign or otherwise transfer all or any portion of its rights and obligations under the Credit Agreement to any other Persons to the extent and in the manner provided in the Credit
Agreement and may similarly transfer all or any portion of its rights under this Security Agreement to such Persons. 

9

    Section 28.  Termination of Security Interest.  Upon payment in full of the Obligations, the
Security Interest granted hereby shall terminate. Upon any such termination, the Secured Party will return to the Grantor such of the Collateral then in the possession of the Secured Party as shall
not have been sold or otherwise applied pursuant to the terms hereof and execute and deliver to the Grantor such documents as the Grantor shall reasonably request to evidence such termination. Any
reversion or return of Collateral upon termination of this Agreement and any instruments of transfer or termination shall be at the expense of the Grantor and shall be without warranty by, or recourse
on, the Secured Party. As used in this Section, "Grantor" includes any assigns of Grantor, any Person holding a subordinate security interest in any of the Collateral or whoever else may be lawfully
entitled to any part of the Collateral. 

    Section 29.  Governing Law and Construction.  THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF
THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE
SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE MANDATORILY GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF MINNESOTA. Whenever possible,
each provision of this Agreement and any other statement, instrument or transaction contemplated hereby or relating hereto shall be interpreted in such manner as to be effective and valid under such
applicable law, but, if any provision of this Agreement or any other statement, instrument or transaction contemplated hereby or relating hereto shall be held to be prohibited or invalid under such
applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this
Agreement or any other statement, instrument or transaction contemplated hereby or relating hereto. 

    Section 30.  Consent to
Jurisdiction.  AT THE OPTION OF THE SECURED PARTY, THIS AGREEMENT MAY BE ENFORCED IN ANY FEDERAL COURT OR MINNESOTA STATE COURT SITTING
IN HENNEPIN COUNTY; AND THE GRANTOR CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT THE GRANTOR COMMENCES ANY
ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY
OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT, THE SECURED PARTY AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR
IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT PREJUDICE.

    Section 31.  Waiver of Notice and
Hearing.  THE GRANTOR HEREBY WAIVES ALL RIGHTS TO A JUDICIAL HEARING OF ANY KIND PRIOR TO THE EXERCISE BY THE SECURED PARTY OF ITS RIGHTS
TO POSSESSION OF THE COLLATERAL WITHOUT JUDICIAL PROCESS OR OF ITS RIGHTS TO REPLEVY, ATTACH, OR LEVY UPON THE COLLATERAL WITHOUT PRIOR NOTICE OR HEARING. THE GRANTOR ACKNOWLEDGES THAT IT HAS BEEN
ADVISED BY COUNSEL OF ITS CHOICE WITH RESPECT TO THIS PROVISION AND THIS AGREEMENT.

    Section 32.  Waiver of Jury
Trial.  EACH OF THE GRANTOR AND THE SECURED PARTY, BY ITS ACCEPTANCE OF THIS AGREEMENT, IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

    Section 33.  Counterparts.  This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. 

    Section 34.  General.  All representations and warranties contained in this Agreement or in any
other agreement between the Grantor and the Secured Party shall survive the execution, delivery and performance of this Agreement and the creation and payment of the Obligations. The Grantor waives
notice of the acceptance of this Agreement by the Secured Party. Captions in this Agreement are for reference and convenience only and shall not affect the interpretation or meaning of any provision
of this Agreement. 

10

    IN WITNESS WHEREOF, the Grantor has caused this Security Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written. 

	 	 	REUTER MANUFACTURING, INC.
	 

 	 
 	 

By	 

/s/ MICHAEL J. TATE   
 Title President

Address
for Grantor:

410 11th Avenue South

Hopkins, MN 55343 

Grantor's
Tax ID #41-0780999 

Address
for Secured Party: 

U.S.
Bank National Association

U.S. Bank Place

601 Second Avenue South

Minneapolis, MN 55402

Fax: (612) 973-2851 

11

SCHEDULE I

TO

SECURITY AGREEMENT  

Locations of Equipment and Inventory

as of Date of Security Agreement 

410
11th Avenue South

Hopkins, MN 55343 

12

SCHEDULE II

TO

SECURITY AGREEMENT  

Trade Names and Trade Styles 

Envi-ro-fuge
2000® 

Reuter® 

13

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SECURITY AGREEMENT

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Exhibit 10.7  

  
      AMENDED AND RESTATED NOTE         

	$6,800,000	 	October 10, 2000

Minneapolis, Minnesota

    FOR
VALUE RECEIVED, REUTER MANUFACTURING, 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 days) in like funds on the unpaid principal amount hereof
from time to time outstanding. 

The
principal hereof and interest hereon is payable as follows: 

    (A) 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; 

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

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

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

    This
note is the Amended and Restated Note referred to in the Amended and Restated Credit Agreement dated as of October 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 3, 1997, a Term Note in the original principal amount of $2,400,000 dated as of December 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 3, 1997 (as amended from time to time) from the Borrower to the
Lender. 

    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. 

    THE
VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS NOTE SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA WITHOUT GIVING 

EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS OF THE UNITED STATES APPLICABLE TO NATIONAL BANKS. 

	 	 	REUTER MANUFACTURING, INC.
	 

 	 
 	 
 By	 

/s/ MICHAEL J. TATE   

	 	 	Title	President

2

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AMENDED AND RESTATED NOTE

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